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Home My WebLink About1991 City Council Minutes "if!'>, f;"W PAGE 80 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 I. CALL TO ORDER: The January 14, 1991, 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, Krasnansky, Meehan and Sieminski (Burgess was excused) Present also: city Manager Schaefermeyer, city Attorney Tans, Electrical Engineer Calvert, Port Market- ing Director Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Chaffin, Harbormaster Single- ton, Librarian Nicolas, Commu- nity Development Director Mar- tin, police Chief Bencardino and City Clerk Murphy SPECIAL ITEMS: A. The Mayor issued the following proclama- tions: 1. Noll presented Vicky White with a procla- mation designating January 14, 1991, as VICKY WHITE APPRECIATION DAY for her efforts to establish a low cost spay and neuter clinic and to provide low cost rabies vaccinations for area pets. Noll also recognized the efforts of Seward Animal Control Officer Dee Johnson. 2. Noll presented proclamations designating January 14-20, 1991, as JEREMIAH CAMPBELL and TULLA WRIGHT WEEK to the families of the two young men who are currently serving in the Persian Gulf. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE DECEMBER 10 AND 20, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: I I I 81 PAGE 81 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY KRAS- NANSKY. Schaefermeyer noted that Carpenter had asked that his presentation, along with Item C under New Business, be deleted. Schaefermeyer also asked that Resolution No. 91-005 be considered immediately following approval of the consent calendar so that representatives of Peat Marwick could return to Anchorage as soon as possible. Sieminski asked to have Items F and N removed from the Consent Calendar to New Business and Unfinished Business respectively. THE QUESTION WAS CALLED AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. 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: AL SCHAFER, Mile 2.5, Nash Road, (Afognak Logging) spoke in opposition to Resolution No. 91-009. He stated that his company had submitted a bid nearly $50,000 cheaper than the next low bid; however, the administration was recommending rejecting his bid in favor of the bid submitted by Construction & Rigging. VIII. APPROVAL OF CONSENT CALENDAR: KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIEMINSKI AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-003, awarding a contract to Marathon Fuel Service to provide petroleum products to the city on an as required basis, was approved; B. Resolution No. 91-004, setting rates and charges for copying and purchasing miscellaneous docu- ments and services from the administrative service, was approved; C. Resolution No. 91-006, approving an as- signment of interest in the Dryden-Larue contract to Y and A Group, Inc., was approved; 82' PAGE 82 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 D. Resolution No. 91-007, approving an amend- ed prison TORA in the amount of $36,000, was approved; E. Resolution No. 91-008, appropriating funds for certain hospital repairs, was approved; F. Request for authorization to proceed with negotiations with Inlet Salmon on a proposed lease amend- ment was moved to the regular meeting agenda; G. Request for authorization to set public hearing on a proposed acquisition by the city of the Odd Fellows cemetery was approved; H. Invoices for legal services from Perkins Coie as follows were approved for payment: city v. Seward Ships Chandlery - $857.50 October, 1990 Legal services - $15,400.45 November, 1990 Legal Services - $13,155.30 I. Invoice for legal services as performed by Riddel, Williams, Bullitt & Walkinshaw in the matter of Seaway Express Corp. Bankruptcy in the amount of $158.29 was approved for payment; J. Application for renewal of liquor license as filed by Gateway Liquor & Foodmart (Package Store) was noted, and the Clerk was instructed to issue a letter of non-objection to the renewal; K. Request by Howard Sweatt to vacate a portion of Dimond Boulevard was noted, and the Clerk was instructed to issue a letter to the Borough objecting to the vacation; L. December 14, 1990, memorandum from Chaffin regarding a recent article appearing in the Marketinq Recreational Classes October, 1990, edition featuring Seward Parks & Recreation Department activities was noted for information; M. Applications for permits for games of chance and skill as filed by the following were noted for information: city of Seward Teen Center Seward Senior citizens, Inc. Seward Life Action Council American Legion Post No. 5 N. Update on Ray Building improvements was moved to the regular meeting agenda; and O. Police Department statistical report for CY 1990 was noted for information. I I I 83 PAGE 83 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 ORDINANCES AND RESOLUTIONS: (Taken out of order) 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 A PROFESSIONAL SERVICES AGREE- MENT WITH KPMG PEAT MARWICK TO RE- VIEW THE CITY'S PROCUREMENT AND USE OF LEGAL SERVICES. HILTON MOVED TO APPROVE RESOLUTION NO. 91-005; THE MOTION WAS SECONDED BY SIEMINSKI. Schaefermeyer introduced Bob 0' Neil of Peat Marwick and noted that he would be the principal in charge of this engagement, if approved. Schaefermeyer indicated that a copy of the faxed proposal had been included in the Council's packets. He noted several minor changes to the proposal to increase the Council's role in the project. Schaefermeyer stated that he had provided O'Neil a copy of the Council's comments at the last meeting regarding how the review should be conducted and the information the Council hoped to receive. He stated that City Attorney Arvidson welcomed this type of review. Schaefermeyer recommended approval of the agreement. Meehan asked O'Neil to outline how he en- visioned carrying out the contract. O'Neil stated that he would review the city's need for legal services and its procurement process. He noted that any comparisons would be with municipalities with like enterprises and legal needs. Dunham stated that she hoped the study would be comprehensive enough to lay to rest complaints regarding the city's attorney bills. O'Neil stated that one of the first steps would be to discuss this issue with the Council to see what the Council's concerns were or what issues had been brought to the Council by local constitu- ents. Schaefermeyer stated that O'Neil and an associate would be in Seward part of next week, starting work on the depreciation study for the city. He suggest- ed that this would be an opportunity to set the scope and determine the issues on which Council wished to focus. 0' Neil stated that each member of Council would be contacted individually. He also invited members of the 84: PAGE 84 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 public who wished to express concerns to schedule a meeting with him. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. IX. PUBLIC HEARINGS: None X. PRESENTATIONS WITH PRIOR NOTICE: A. Wayne Carpenter. Executive Director of the Seward Chamber of Commerce - Railcar Maintenance. This item was deleted at the request of Mr. Carpenter. B. Donald A. Sutherland - Seward Polar Bear Jumpoff Festival. (225 sixth Avenue) Sutherland invited everyone to participate in the Polar Bear Jumpoff Festival. He noted the various activities scheduled for the weekend. Sutherland stated that proceeds from some events would go directly toward defraying expenses of a local teen stricken with cancer with other proceeds going to the American Cancer society. 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: 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. Notice of public hearing as posted and pUb- lished as required by law was noted, and the public hearing was opened. SHARON ANDERSON, 107 Ravina, spoke in support of both Ordinance No. 638 and No. 639. She noted the crowded conditions in the Boat Harbor as well as the problems the M/V Tustumena experienced at the Fourth Avenue Dock. In addition, she noted the need for a cruise ship dock in the downtown area. She stated that the profit margin for those in business was getting narrower, and she urged the Council to take steps to I I I 85 PAGE 85 REGULAR MEETING -JANUARY 14, 1991 VOLUME 26 enhance the marine industry in Seward by expanding the Boat Harbor. Anderson stated that boat harbor expansion would bring new dollars into the community. DAVID KURPJUWEIT, 1904 Phoenix, spoke in support of expansion of the Boat Harbor and approval of the two ordinances. WILLARD DUNHAM, Forest Acres, Chairman of the Trade Board, 'noted the Trade Board's endorsement of the two ordinances. He took exception to recent remarks that inadequate planning had been put into this plan. He stated that expansion of the current Small Boat Harbor to the south had been a goal of the city since the 1964 Earthquake destroyed the original harbor. He noted that the only reason Nash Road had been considered for expansion of the Harbor was that Fish and Game had, at one time, planned to use the lagoon as a stripping area to implant salmon frye and gather eggs of returning salmon each year. Such a use would have prohibited expansion of the harbor to the south. However, since this project had not materialized, there was no longer any reason to discount a southward expansion. He urged the Council to enact the two ordinances. JOHN BAIRD, Mile 7, Seward, invited those with concerns regarding Port issues to come to Port Develop- ment Committee meetings to express their opinions. He stated that he favored enactment of the ordinances. BRENT WHITMORE, 306 First Avenue, noted that he had written a letter to the Council endorsing the proposed expansion of the Small Boat Harbor and enactment of the ordinances. He stated that his concerns were on the economic front. He stated that if a negative signal were sent - that the city was not interested in even looking at improving its port facilities - the city might be hurt economically. He urged the Council to keep its options open by enacting the two ordinances (638 & 639). WALT SCZAWINSKI, 611 Monroe, noted that at the previous meeting many people had testified regarding the loss of city park lands. He stated that the city needed development, but park lands were needed too. He urged the Council to provide other areas for camping and parks if this property were lost to such use. WAYNE CARPENTER, 325 Fifth Avenue, Executive Director of the Chamber of Commerce, noted his letter regarding the Chamber's support for enactment of the ordinances. He stated that the topic was covered at length at the 12/27/90 Chamber Board meeting. He en- couraged the Council to preserve the city's options by enacting the ordinances. 86 PAGE 86 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 RECESS: The meeting was recessed at 8:35 p.m. and reconvened at 8:45 p.m. Noll noted that the meeting was no longer "on air" due to a technical problem. No one else appeared in order to be heard, and the public hearing was closed. MEEHAN MOVED TO ENACT ORDINANCE NO. 638 SUB- STITUTE; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that the proposed sub- stitute ordinanc'e provided some new "Whereas" clauses and provided a new "section 2" which stated that until the facility (harbor expansion or ferry dock) was construct- ed, the parcel would retain its use as a park area. He noted that the amendments were suggested by Dunham on December 10th and were prepared by city Attorney Tans. Tans stated that when drafting the amendments, he was unsure whether the property had ever been designated park land. He suggested amending Section 2 by adding as sentence one: THE REDESIGNATED PARCEL IS DEDICATED AS THE SITE FOR THE CONSTRUCTION OF THE FACILITY DESCRIBED ABOVE. DUNHAM MOVED TO AMEND AS RECOMMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITHOUT OBJEC- TION. Meehan noted that the Port Advisory Committee had discussed this proposal at length and had voted unanimously to support this rezone and any expansion of the Boat Harbor on this side of the Bay. He noted that the Trade Board had also voted to support the ordinances. Meehan added that no one wanted to lay waste to the beachfront; rather, he envisioned an enhancement of the area. Dunham stressed the need to keep the ferry in Seward. She stated that the 50 or so employees of the ferry residing in Seward had families, spent their money in Seward and had medical insurance which was an asset to the local hospital. She also stressed the importance of providing a space for a new vessel for the IMS as well as cruise ship dockage. She noted that all of these were non-polluting industries which would add to the city's economy. Sieminski concurred with Dunham. I I I 87 PAGE 87 REGULAR'MEETING - JANUARY 14, 1991 VOLUME 26 Krasnansky stated that the substitute ordinance appeared to be the best compromise which could be reached. He added his support. Hilton stated that he, too, supported moving forward with this project. Noll noted his continued support for the concept. ~e noted letters of support from the Trade Board, Brent Whitmore, Dr. A.J. Paul, the Chamber of Com- merce, and a resolution of support from the Planning Commission. He further noted that on January 5th, the first annual Mayors Luncheon was held, with former Mayors Gieseler, Skinner, McAnerney and Cripps attending. He stated that all present agreed that the expansion project was a good idea for Seward. He concurred with Meehan that the property should retain a park like atmosphere when developed. He encouraged the administration to keep in mind the need for a sport fishing place in the area. THE QUESTION WAS CALLED AND THE SUBSTITUTE ORDINANCE WAS ENACTED AS AMENDED 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, 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. 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. 639 SUB- STITUTE; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer noted that the substitute or- dinance amended the Whereas clauses and the ordaining clauses by incorporating the complete list of land uses allowed in this zone. Schaefermeyer noted that the ordinance would provide that docks, marinas, harbors and passenger terminals could be constructed in the Institu- tional Zone by conditional use permit. THE QUESTION WAS CALLED, AND THE SUBSTITUTE ORDINANCE WAS ENACTED BY UNANIMOUS CONSENT. QQ l_"_' PAGE 88 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 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. 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. 640; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED WITHOUT OBJECTION. 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. 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. 641; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJEC- TION. 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. Notice of public hearing as posted and pub- lished as required by law was noted, and the public hearing was opened. RON LONG, Camelot Subdivision, asked the Council to reject the ordinance. He referred to AS 09.12.120 which states that every person has the right to inspect a public writing or record in the state, includ- I I I 89 PAGE 89 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 ing public writings or records in the Recorder's Offices, except records of vital statistics and adoption proceed- ings, records pertaining to juveniles, medical and related public health records, and records required to be kept confidential by federal or state law. He further stated that the Attorney General had defined a public record as almost anything used to memorialize a communi- cation that is kept by an agency as a public record. He stated that the proposed ordinance went beyond state law to the point of withholding from the public any document not required to be disclosed. Long quoted from several court rulings to uphold his contention that the proposed ordinance was in conflict with state law. STEVE SCHAFER, 2501 Maple, read from a prepared statement objecting to the ordinance. He stated that enactment of this ordinance would send a signal to the citizens of Seward that the local government prefers to conduct its business in a covert and secretive manner. Schafer stated that the proposed ordinance was nothing more than an effort to keep the dealings of certain members of the administration from seeing the light of day. He urged the Council to reject the ordinance. DON WHITMAN, 211 Barwell Street, read from House Bill 405, which was enacted by the State Legisla- ture at the end of the last session. (This bill was the impetus behind creation of proposed Ordinance No. 642.) Whitman stated that he supported the basic concept that the public records code was in need of review. However, he stated that the proposed ordinance was too restric- tive, and he urged the Council to vote "No" on enactment of the ordinance. No one else appeared in order to be heard, and the public hearing was closed. KRASNANSKY MOVED TO POSTPONE ACTION INDEFINITE- LY; THE MOTION WAS SECONDED BY SIEMINSKI. THE CHAIR RULED THAT THE MOTION WAS OUT OF ORDER SINCE THERE WAS NO MAIN MOTION ON THE FLOOR WHICH COULD BE POSTPONED. HILTON MOVED TO ENACT ORDINANCE NO. 642; THE MOTION WAS SECONDED BY MEEHAN. Meehan and Dunham both stated that they were not prepared to vote on this ordinance at the present time. Dunham stated that, while the current code might need some revisions, she would prefer to wait until the new Anchorage records ordinance questions were settled before voting. 90 PAGE 90 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 MEEHAN MOVED TO POSTPONE ACTION UNTIL THE SECOND MEETING IN MARCH; THE MOTION WAS SECONDED BY HILTON. Meehan asked that the administration use this time to come back to Council with a proposal to have this ordinance evaluated by an independent party and to respond to some of the specifics brought forth in the public testimony. Noll suggested that the administration come back to the Council with a way to proceed and a budget for the review. Krasnansky objected to the ordinance and suggested that it be voted down and rewritten. Dunham stated that she would vote to postpone. Sieminski stated that he would suggest defeat- ing the ordinance as written. Noll suggested that the city contract with a constitutional lawyer to review the current code, the new state law and the proposed ordinance and make recommen- dations to the Council regarding the proposed changes. THE QUESTION WAS CALLED, AND THE MOTION TO POSTPONED CARRIED BY UNANIMOUS VOTE. RECESS: The meeting was recessed at 10:10 p.m. and reconvened at 10:30 p.m. 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 WATER TARIFF. HILTON MOVED TO APPROVE RESOLUTION NO. 91-001; THE MOTION WAS SECONDED BY KRASNANSKY. Meehan asked if he should abstain since he was employed by one of the city's largest water users. NOLL RULED THAT MEEHAN HAD A CONFLICT OF INTEREST AND DIRECTED HIM TO ABSTAIN FROM DISCUSSION AND VOTE ON THE MOTION. I I I 91 PAGE 91 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 In response to a question from Sieminski, Schaefermeyer stated that the rates were not being changed; however, the city was recommending a change in the way businesses with several meters were charged and addition of a provision that would allow the city to negotiate a special contract with large volume customers. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FOUR YES VOTES, MEEHAN ABSTAINING AND KRASNANSKY 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, ADJUST- ING RATES FOR GARBAGE AND REFUSE SERVICE IN AN AGREEMENT BETWEEN THE CITY AND JASON ENTERPRISES. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-002; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that Jason McDonald, refuse service contractor, had approached the city a few weeks ago stating that his business was suffering losses due to the recent increase in fuel prices. He requested a rate adjustment of approximately eight percent (8%) to compensate for this loss. schaefermeyer stated that this would increase the average residential customer's charge by 80 cents per month. Schaefermeyer added that, if fuel rates declined in an appreciable manner, the city would recommend adjusting the rates downward. Noll asked how the administration arrived at the 8% figure and how the city was going to account for continuing changes in price. Schaefermeyer stated that an 8% increase would compensate McDonald for his estimat- ed annual shortfall based on current fuel prices. Noll also asked if the city had considered a fuel adjustment surcharge as a way to compensate Mr. McDonald. Schaefer- meyer stated that he had looked at this approach but had determined that it would be costly on the accounting end and would be difficult to explain to the customer. Meehan stated that he could understand the need for such an increase. Many trucking companies raised prices by 8% in September or October because of fuel prices. Krasnansky concurred with concerning a fuel adjustment factor. Noll's comments He suggested that An ::i 1.\ PAGE 92 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 the Council investigate the possibility of taking this approach the next time an adjustment was needed. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITHOUT OBJECTION. 3. Resolution No. 91-005 was considered and approved earlier in the meeting. (See Page 83.) 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 A CONTRACT FOR REPLACING THE LOWELL CANYON CREEK BRIDGE. HILTON MOVED TO APPROVE RESOLUTION NO. 91-009; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that the city had adver- tised for proposals to design and build a bridge across the Lowell Tunnel outfall. In response to the RFP, the city received six proposals - five for a bridge design and one which proposed a culvert instead of a bridge. The proposals were reviewed by independent engineers who analyzed the proposals and designs. They recommended that the city reject the proposal for construction of a culvert system since it was thought that this design would not give adequate protection from flooding in the area. Therefore, the administration recommended award to the next low bidder, Construction & Rigging. Schaefer- meyer noted that monies for the project were available from the State Division of Emergency Services. Hilton stated that one of the concerns regard- ing the culvert was the danger of plugging and inability to remove debris from the culverts. Schaefermeyer noted that the bridge design would allow room underneath for a cat to clean out debris which might collect. AL SCHAFER, Afognak Logging, responding to Hilton, stated that the large culvert was 16 ft. wide x 11 ft. high. In addition, 8 ft. 'culverts would be provided for runoff. Meehan stated that he appreciated the culvert bid which Schafer had submitted, but in his experience, he did not trust the culvert design to handle the amount of water and debris which would flow through that area. Schafer stated that this culvert was designed to carry a water flow 50% greater than the 100 year flood I I I 93 PAGE 93 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 stage. He stated that, even if the culvert plugged, it could be repaired in a matter of a few hours. In response to a question from Noll, Schafer stated that the culvert system was designed by a local engineer. Schaefermeyer said that the city had a similar culvert installed at Spring Creek in 1981. The first high water took several of the culverts right down to the Bay. Sieminski stated that the city should monitor contractors to see that they hire locally, if possible. Noll stated that he thought the bridge was a stop gap measure in what was a greater plan which might include putting another flume through the mountain at a different location or, possibly, installing a flume to carry water over the roadway. In this case, the bridge would not be needed. Schaefermeyer agreed, but stated that either scenario put forth by the Mayor would probably not occur for some five to ten years. Hilton stated that he would like to save some money if possible, but not at the expense of causing a greater problem later. Dunham asked what would happen to the $70,000 in additional funds if it was not spent. Schaefermeyer stated that, unless the city could receive approval to use the funds for additional flood restoration work from the 1989 Flood, all excess monies would have to be returned to the state. Krasnansky stated that chances of a cuI vert failing appeared to be greater than the chance that a bridge would fail. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FIVE YES VOTES AND DUNHAM VOTING NO. 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 ALASKA NORTHWEST DEVELOP- MENT, INC., FOR MARKETING/INFORMA- TION RESEARCH SERVICES. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-010; THE MOTION WAS SECONDED BY KRASNANSKY. 94 PAGE 94 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 Gates recommended that Council approve the contract with Vern Chase. Gates stated that Chase was arguably the best port developer in the state. He added that this contract could probably reduce the funds required to produce a brochure and other marketing tools. Dunham asked why Chase was no longer working for Valdez. Gates stated that the Valdez City Council discontinued the contract because Chase did not live and work locally. Meehan stated that while attending the Fish Expo, he observed Chase promoting Seward, and he was impressed with the work he did there. Meehan stated that this contract would be money well spent. Noll asked if, with the aid of Vern Chase, the ci ty could begin to develop a plan to discredit the proposal to develop Fire Island, or find a way to join with the development to provide a link between the two points. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITHOUT OBJECTION. XII. UNFINISHED BUSINESS: A. Update on Ray Buildinq Improvements. Sieminski stated that he had asked that this be placed on the regular agenda so that he could hear if all repairs had been completed. Schaefermeyer stated that renovations had been completed and the offices had been greatly improved. In response to a question from Sieminski, Schaefermeyer stated that he had signed a four-year lease at the direction of the Council. Meehan stated that this lease agreement was approved by the Council prior to the renovation of the building. He added that the renovations had gone beyond what was required by the city, and more renovations were planned. He stated that to question the lease term at this point was out of line. XIII. NEW BUSINESS: A. Army-Air Force Recreation Camp Lease Proposal. DUNHAM MOVED TO DIRECT THE ADMINISTRATION TO SEND A LETTER TO THE CORPS OF ENGINEERS REJECTING THE PROPOSED ARMY-AIR FORCE LEASE PROPOSAL; THE MOTION WAS SECONDED BY KRASNANSKY. I I I 9~ ." .) PAGE 95 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 Schaefermeyer stated that the Army/Air Force had presented the city with a proposal to combine the two leases and extend them for 100 years with no adjustment in rent and no further requirements beyond the deal they currently had with the city. He stated that the adminis- tration found this request to be onerous and could find no real advantages to the city except the prospect to combine the facilities under one lease. Schaefermeyer stated that he was not suggesting that the city close the door to further discussions with the military; however, he did have some concerns with regards to whether a military recreation camp was the highest and best use of the property. He noted that there was virtually no way the Army or the Air Force could expand its operations at the current location. Schaefermeyer stated that the administration would be recommending that the Corps of Engineers consider constructing a new camp just north of the city limits on property owned by the Kenai Peninsula Borough. Dunham stated that the Army and Air Force had not lived up to any of the promises they had made in the past. She stated that she would like to get them off the property, and added that this matter should never have gotten to this point without getting Council's opinion. Sieminski recommended postponing action until the Council could meet with representatives of the Army and Air Force in a work session. He stated that former Mayor Gieseler had indicated that the military had $10 Million to spend on renovation of this property. Hilton concurred with Dunham. He stated that since he was elected in 1983, the Army and Air Force had been promising to renovate their properties. Hil ton suggested that the city let the leases expire and utilize this property for park land. Meehan concurred. Noll agreed that the letter should be sent. He asked Martin to continue a dialogue with the Army and Air Force to encourage them to relocate to property just outside of town. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITHOUT OBJECTION. B. Planninq Commission Appointments. Noll stated that it was a pleasure to receive the level of interest from the public that had come forth as a result of the Clerk's ad regarding these vacancies. NOLL RECOMMENDED APPOINTMENT OF KURT LINDSEY AND DON SUTHERLAND TO THREE-YEAR TERMS ON THE COMMISSION. THERE WAS NO OBJECTION FROM THE COUNCIL. I)~ '. . PAGE 96 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 C. Deleted at the Director Wayne Chamber of Commerce Railcar utilities. request of Chamber of Commerce Executive Carpenter. D. Inlet Salmon request. HILTON MOVED TO AUTHORIZE THE ADMINISTRATION TO PROCEED WITH NEGOTIATIONS WITH INLET SALMON REGARDING A PROPOSED LEASE AMENDMENT; THE MOTION WAS SECONDED BY SIEMINSKI. Gates explained that Vince Goddard of Inlet Salmon had requested the following revisions to Inlet's lease with the city: 1. Inlet would use the current dock building to creat a complete fish handling facility on the dock site. (This would not require the construction of additional buildings but would include the completion of the building currently on site, paving of the dock surface and installation of dressing and grading lines as necessary for the operation.) This would bring Inlet's investment in its facilities at SMIC to $1.8 Million.) 2. Inlet requested that completion of Item No. 1 qualify as the complete fulfillment of the con- struction requirements under the current lease. 3. Inlet would agree to dress or handle most of the fish unloaded at Seward at this facility so that Seward would be the beneficiary of the fish tax. In addition, the fish tax provision of the current agreement would remain in place so that Inlet would agree to compensate the city of Seward for a substantial portion of whatever fish taxes were not accrued to the benefit of the city. 4. Inlet would release back to the city its interest in the 4.5 acres of adjacent uplands so that this property would be available for lease and develop- ment by other concerns. 5. Inlet would withdraw its request for any additional lands north of the Inlet dock. 6. If Inlet should decide at some future date to install additional freezers at the dock plant facili- ty, a separate application for same would be made to the ci ty . THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FIVE YES VOTES AND MEEHAN ABSTAINING. (Meehan is employed with one of Inlet's chief competitors in Seward. ) I I I 97 PAGE 97 REGULAR MEETING - JANUARY 14, 1991 VOLUME 26 XIV. CITY MANAGER REPORTS: Schaefermeyer reported that the APU bond sale was concluded on December 31st, and the city had received its impact fee as well as a signed agreement regarding scholarships for local students. xv. COUNCIL ,DISCUSSION: NOLL stated that he thought Schaefermeyer was doing a great job and he appreciated his dedication to the city. XVI. CITIZENS' DISCUSSION: WILLARD DUNHAM, Forest Acres, asked the Council to provide a truck route behind Forest Acres to the landfill to divert this traffic from the residential area. He stated that the original road to the Landfill ran along Japp Creek, and he suggested that this road bed could be reconstructed to provide access for large trucks travelling back and forth to the Dump. Dunham noted that the recent changes in the traffic patterns in Forest Acres had added to the problems in the area. In addi- tion, the Borough was currently undertaking a container- ization process which included transporting the 30-foot cans throughout the night. He stated that this type of traffic should not be routed through a residential neighborhood. Dunham reminded the Council that the truck access road would provide needed flood control for Forest Acres. In addition, the construction of the new Elemen- tary School and its attendant influx of young children, coupled with the increased truck traffic to and from the Landfill and auto traffic to and from the school, had created a safety problem which should be addressed immediately. He suggested that the city demand that the Borough reconstruct the truck access route. Hilton concurred with Dunham's comments. AL SCHAFER, Mile 2.5, Nash Road, noted that Dimond Boulevard was only a 40-foot road. He suggested that the Borough construct the truck access route through property which he owned. He stated that he was eager to work with the Borough to make this possible. Schafer stated that construction of the access route would give the city flood control as well as a safer access for large trucks. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None 98 PAGE 98 REGULAR MEETING - JANUARY 14, 1991 XVII I . ADJOURNMENT: VOLUME 26 The meeting was adjourned at 12:25 a.m. Mayor -------------------------------------------------- VOLUME 26 REGULAR MEETING - JANUARY 28, 1991 I. CALL TO ORDER: The January 28, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor William C. Noll. II. OPENING CEREMONY: City Manager schaefermeyer led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Krasnansky, Meehan and Sieminski (Hilton was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Elec- trical Engineer Calvert, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Chaffin, Community Development Director Martin, Hospital Administrator Rabb, Chamber of Commerce Director Carpenter, Librarian Nicolas, Police Chief Bencardino and city Clerk Murphy I I I 99 PAGE 99 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 SPECIAL ITEM: A. Noll presented a proclamation designating January 28 - February 3, 1991, as ROBERT QUIROZ WEEK in Seward to Quiroz'S step father Jack Goodwill. IV. APPROVAL OF MINUTES: The January 14, 1991, minutes were not avail- able. V. APPROVAL OF REGULAR MEETING AGENDA: KRASNANSKY MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. Schaefermeyer noted that the Administration had presented to Council a substitute Ordinance No. 645. 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 VIII. APPROVAL OF CONSENT CALENDAR: KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Notification of applications for renewal of liquor licenses as filed by the following were noted and the Clerk was instructed to issue letters of non- objection: BREEZE INN THORN'S SHOWCASE LOUNGE NEW SEWARD SALOON HARBOR DINNER CLUB YUKON BAR APOLLO RESTAURANT B. Finance Department memorandum listing purchase orders totalling between $5,000 and $10,000 issued during the Second Quarter, FY 1991, was noted for information; C. Memorandum from Librarian Nicolas regard- ing a Carnegie Corporation grant to provide award winning children's videos was noted for information; and ""0,f'\, .. w W PAGE 100 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 D. Memorandum from Librarian Nicolas regard- ing services available at Seward Community Library was noted for information. IX. PUBLIC HEARINGS: PRESENTATIONS WITH PRIOR NOTICE: None X. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Noll noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING CHAPTER 8.20, VEHICLES FOR HIRE, REGARDING THE LICENSING OF CHAUF- FEURS. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 643; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that this ordinance was designed to do three basic things in order to address the concerns developed by the Council at earlier meetings. Amendments were made to the licensing procedure to conform to recent jUdicial rulings regarding obtaining and reviewing applications for licenses. Second, a provision was included to require that applicants sign a form giving consent to a criminal arrest and conviction review and fingerprint analysis by the FBI. The third change was the institution of a chauffeur's drug test in accordance with the program adopted by the National Institute of Drug Abuse, a widely accepted standard for providing drug screening. Schaefermeyer stated that the ordinance was an attempt to meet the desires and concerns of the city while protecting the individual privacy of the applicants. Meehan asked Arvidson to explain why he had included a provision that a license could not be issued to anyone who had been convicted of a felony within five years or any felony or misdemeanor at any time involving any sex offense, assault with a deadly weapon or use of or traffic in narcotics. Arvidson stated that this language came right from state statutes regarding the licensing of school bus drivers and was part of the current city Code. Meehan objected to holding a convic- tion against a licensee "for life". He stated that the city should not take such a hard line on this issue. Arvidson stated that the Council could soften the I I I 101 PAGE 101 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 language if it wished. Meehan asked that Arvidson draft an amendment prior to the next meeting. Krasnansky asked if current drivers could be grand fathered against drug testing. Arvidson stated that those holding licenses at the time of enactment would be tested once their current licenses expired, prior to issuance of a new license. THE QUESTION WAS CALLED, AND THE MOTION WAS INTRODUCED WITHOUT OBJECTION. Public Hearing was sched- uled for February 11, 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, APPROV- ING AN ALCOHOL AND DRUG POLICY FOR CITY EMPLOYEES. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 644; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that this ordinance was a revision of a policy presented to the Council in Novem- ber, 1989. He stated that Yanez could address any particular concerns or issues Council wished to explore. He noted that the policy had been presented to the employees and had received general acceptance by them. He stated that having a drug and alcohol policy in the Code was an absolute necessity in order to stay within today's personnel laws. He added that such a policy was mandated by federal statute if the city wished to be the recipient of $25,000 or more in federal funding. Schaefermeyer recommended introduction of the ordinance. Dunham stated that these policies were far more palatable than the one previously presented to Council. She asked if the administration had regular meetings with employees to address changes in personnel rules. Schaefermeyer stated that when something of importance, such as this policy, came up, employees were addressed in groups. Dunham stated that perhaps the employees should be warned that some over the counter drugs could impair driving, etc. Sieminski asked how the city and a corporation would differ as far as drug testing of employees. Arvidson stated that this ordinance did not deal with drug testing, but with a drug abuse policy for city employees. However, he stated that the law treated private and public employers differently as far as drug 102 PAGE 102 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 testing was concerned. He said that private employers had more flexibility with regards to drug testing than a public employee. Krasnansky asked if city insurance covered this type of treatment. Schaefermeyer stated that the city's health plan provided some assistance, and state law required a certain level of insurance coverage for alcohol and drug abuse treatment. Krasnansky stated that he felt the policy was a good one. THE QUESTION WAS CALLED, INTRODUCED BY UNANIMOUS CONSENT. scheduled for February 11, 1991. AND THE ORDINANCE WAS Public hearing was 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, AMENDING SECTION 9.15.350 OF THE CITY CODE, REGULATING ABOVE GROUND FUEL STORAGE TANKS. Schaefermeyer noted that the Council had been provided with a substitute ordinance for introduction. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 645 SUBSTITUTE; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this ordinance was being introduced to allow the use of above ground fuel dispensing tanks measuring 2,000 - 5,000 gallons within three zones of the city in response to the very restric- tive codes adopted for underground tanks. In addition, this ordinance would allow above ground bulk storage of fuel oil in the Industrial zone provided a permit was obtained from the Fire Chief. He noted that in 1975 the Council adopted a provision restricting above ground bulk storage tanks to the industrial area north of the Small Boat Harbor or south of the Lowell Creek tunnel outfall. He further noted that the new regulations for underground tanks made such installation cost prohibitive. Schaefer- meyer stated that these regulations would meet the needs of the community for storage of petroleum while protect- ing the environment. Meehan asked if this ordinance was a relaxation of regulations. Schaefermeyer stated that underground tanks would be required to follow federal regulations. However, if the city adopted this ordinance, above ground tanks could be installed with much less expense. Meehan asked why the limit on the size of the fuel dispensing I I I 103 PAGE 103 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 tanks. Schaefermeyer stated that the city wanted to avoid a proliferation of dispensing tanks in yards, etc. The ordinance hoped to address the needs of businesses requiring bulk storage of vehicle fuel for the operation of their businesses. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS INTRODUCED WITHOUT OBJECTION. Public Hearing was sched- uled for February 11, 1991. 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, APPROV- ING BUDGET REVISIONS TO THE FISCAL YEAR 1991 HOSPITAL ENTERPRISE FUND AND REQUESTING OPERATING AND CAPITAL EQUIPMENT LOANS. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 91-011; THE MOTION WAS SECONDED BY BURGESS. Noll ruled that Krasnansky would be required to abstain from discussion or voting on the resolution since he was an employee of the hospital. Schaefermeyer stated that this resolution would amend the FY 1991 budget for the hospital by revising revenue forecasts. In addition, an operating loan fund and a capital equipment loan fund would be established. Both loans would be repaid to the city over time, with interest to be charged to the hospital in the same manner as other enterprise funds of the city were charged. Schaefermeyer noted that this resolution was brought to the Council at the request of the Hospital Board. Meehan stated that since he had been the Council's representative to the Community Hospital Board, he had come to realize the amount of time and energy the Board and administration devoted to the hospital. He stated that the hospital had not realized the patient bed days that had been proj ected when the budget was put together last spring. He noted that "belt tightening" was taking place already, and he recommended approval of the resolution. 104: PAGE 104 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 In response to a question from Dunham, Schaef- ermeyer stated that the VECO loan had been repaid in full. Dunham then asked how this loan would affect the city's cash flow. Schaefermeyer stated that cash flow of the city had improved over the past few months, with the city's account showing a $891,000 cash balance as of December 31st. He noted that the city would still have two months cash reserves after making the loans to the hospital. Schaefermeyer stated that this (two months cash reserves) was the minimum the city could carry, and he noted that the city's auditors recommended a four to six month reserve. schaefermeyer stated that the hospital had prepared a forecast for the next three years. If it held, the hospital would be in a position to live within its revenues and sales tax contribution. He noted that, if the physician recruitment was success- ful, this could be the last loan the hospital would seek from the city to meet operating expenses. Schaefermeyer noted that it was also possible that the hospital would not need to borrow all that was requested in the operat- ing loan fund if revenues increased. He stated that he felt confident the hospital had the ability to repay the loan. Sieminski asked if there was any way funding could be forthcoming from Juneau to cover the $50,000 in repairs. Schaefermeyer stated that grant monies from Juneau could not be used to pay for these repairs. He added that the repairs were not "throwaway", since many of the upgrades could be transferred to the new hospital. In any event, the old hospital would be used for adminis- tration and clinic space, and the repairs would be necessary for these uses even if the new hospital were built. In response to a question from Noll, Rabb stated that just under 70 women had participated in the breast cancer screening program on Saturday, and she noted that the comments received were all positiye. She stated that the next scheduled screening was for choles- terol, followed by glaucoma. Rabb stated that the hospital hoped to provide 12 different monthly screenings throughout the year. She said that she hoped this would increase community awareness of the services available at the hospital. She noted that the emergency room physi- cian was being well accepted by the community. In response to another question from Noll, Rabb stated that Exxon owed the hospital approximately $72,000. Noll asked if the hospital board would object to applying the $72,000 to the loan from the city if it were received. There was no objection from Rabb or community Hospital Board Chairman Burckhardt. I I I 10.5 PAGE 105 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 NOLL ASKED THAT THE MINUTES REFLECT THE INTENT OF THE COUNCIL AND THE HOSPITAL BOARD THAT ANY MONIES RECEIVED FROM EXXON AGAINST ITS DEBT TO THE HOSPITAL WOULD BE APPLIED DIRECTLY TO THE HOSPITAL'S OPERATING LOAN FROM THE CITY. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH FIVE YES VOTES AND KRASNANSKY ABSTAINING. 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, REVISING THE POLICE DEPARTMENT BUDGET TO PROVIDE A FULL TIME ANIMAL CONTROL OFFICER. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 91-012; THE MOTION WAS SECONDED BY KRASNANSKY. Schaefermeyer noted that the Council's animal control program had been a great success. He stated that the animal control officer was being compensated for a 30-hour week; however, the employee was generally working a 40-hour week. He stated that the program had been very well received by the community and noted that complaints were less than they had been for a number of years. Schaefermeyer stated that the city would like to continue a successful program by increasing the level of service to a full time position. He noted that the increase in the budget would be partially funded by increased fees and revenues generated by the program. Dunham stated that what had really made the difference was having an employee who was enthused about the program. She commended Johnson for her visits to the schools and for her other innovative programs, such as taking animals to Wesleyan to visit with the patients. Krasnansky concurred. He stated that it was a real benefit to the public to have someone such as Johnson in the position. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: None XIV. CITY MANAGER REPORTS: 106 PAGE 106 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 Schaefermeyer noted that the deadline for purchasing dog licenses at a reduced rate was January 31st. He also reported that he would be going to Juneau on Tuesday evening to work with Kent Dawson in an effort to get hospital funding in the governor's capital re- quest. He stated that he would be working with the governor's budget people and key legislators and would return to the city on January 31st. xv. COUNCIL DISCUSSION: Krasnansky asked if it were true that there was to be a 5-10% COLA in the new budget for city employees. Schaefermeyer stated that the administration hoped to bring a recommended COLA increase to the Council for approval, but he did not yet know the size of the recommended increase. Sieminski asked if the campus plan had been started as yet. Schaefermeyer stated that Diener would begin work on the plan when he returned to work on Tuesday. Sieminski asked when the Parks and Recreation Department planned to complete work around the Railroad Depot. Schaefermeyer stated that funding had not yet been received from the Railroad to make the improvements. He added that work would begin in the spring. Sieminski asked the status of work camps now that Inlet Fish had given up its lease property at SMIC. Schaefermeyer stated that the only work camp in the city was the Seward Fisheries camp, which required an annual permit renewal. Noll noted that the Alaska Marine Mammal Center was taking another step forward. He stated that SAAMS had invited the cambridge Seven to visit in February to look over the site and begin development of a site plan and conceptual drawings. Noll stated that the Cambridge Seven team had designed the aquariums in Baltimore, chattanooga and Osaka. He added that he hoped their name would lend additional credibility to SAAMS in its fund raising efforts. XVI. CITIZENS' DISCUSSION: WAYNE CARPENTER, Executive Director of the Chamber of Commerce, 325 Fifth Avenue, stated that the Jumpoff was a success. He commended Marilyn Reynolds and the rest of the Committee for their efforts. He stated that it was the most successful jumpoff to date and noted that this festival was becoming a widely known and attended event. EDGAR BLATCHFORD, Commissioner of Community and Regional Affairs, 504 Fourth Avenue, noted that he had been a member of the Hickel Administration for the past I I I 107 PAGE 107 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 month or so. He stated that the governor had asked the commissioners to travel about the state to ascertain the concerns and desires of the people. He stated that the governor wished to involve local people and groups in the decision making process. Blatchford said that he would be more than happy to take the city's concerns to the governor. Meehan stated that the biggest concern in Seward was the fear of what could happen to the Port of Seward if Fire Island was developed. He stated that the city would like to see some security for its future as a port. Blatchford stated that all ports. in Southcentral Alaska were concerned and he would address this concern with the governor. , Krasnansky stated that he would like to see the container business take advantage of trains returning to Anchorage after bringing coal to Seward. Dunham concurred wi th Meehan's concerns regarding Fire Island. She also expressed concern over the governor's desire to close Prince William Sound to logging. Blatchford stated that he had spoken to Hickel about this prior to his taking office. He said that the governor planned to take into consideration the desires of those living in Prince william Sound before making any final decision. Noll stated that he was pleased that the governor had his eye on economic development. He stated that Seward had a significant senior population, and he hoped that programs existing for Seniors were not disrupted in any way. Noll said that he hoped the possible settlement with Exxon and environmental projects in the Prince william Sound area would spillover to the Alaska Marine Mammal Center project. In addition, he hoped to see support for hospital funding. Blatchford stated that the governor had encouraged the commissioners to speak directly to him. He added that contact with the commissioners would be a direct link to the governor's office. Blatchford noted that the governor hoped to see settlement of the Exxon case soon. He stated that this might be the opportune time to bring the AMMC to the governor's attention. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT: 1.08 PAGE 108 REGULAR MEETING - JANUARY 28, 1991 VOLUME 26 The meeting was adjourned at 8:52 p.m. , IJ&!~~~ Mayor , ------------------------------------------------------ -.... 108 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 CALL TO ORDER: ~ ". ......~ ~ . ~~ . ~o '" ',~,... .0.\." ...- ",,>- ',01: 1, 'Io~ " ,. >::~~~,?F'AL~c:,~ The February 11, 1991, regular meeting of the Seward city council was called to order at 7:34 p.m. by Mayor William C. Noll. II. OPENING CEREMONY: City Attorney Arvidson led the pledge of allegian~e to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Hilton, Krasnansky, Meehan and Sieminski (Burgess and Dunham were excused) 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 Chaffin, Harbormaster singleton, Librar- ian Nicolas, Police Lieutenant Earl, Administrative Assistant Martin and Acting City Clerk Jones SPECIAL ITEM: Noll presented a proclamation designating February 10 to 16, 1991 as FHA/Hero Week in the city of Seward to members of Seward's Future Homemakers of America. IV. APPROVAL OF MINUTES: I I I 109 PAGE 109 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 KRASNANSKY MOVED TO APPROVE THE JANUARY 14 AND JANUARY 28, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIEMINSKI 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 KRAS- NANSKY. NOLL REQUESTED THAT CONSENT CALENDAR ITEM I. BE MOVED TO NEW BUSINESS AS ITEM A. KRASNANSKY REQUESTED THAT ITEM J. BE MOVED TO UNFINISHED BUSINESS AS ITEM A. THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: JONATHAN SEWALL, Assemblymember, reported on the February 5, 1991, meeting of the assembly. A resolution was passed awarding a contract for the Seward quarry project behind the Seward landfill. Proposed Resolution No. 91-15, which would provide for wages for borough employees called to active duty to Operation Desert Storm in the Gulf, was introduced. No employees had been called to duty yet but there was a possiblity that two might be called. The recommendation was to make up the difference in their pay should they be called to active duty. There was strong opposition in the assembly to this proposal and it was postponed until the next meeting. A resolution was introduced for operation of the Seward transfer facility but this item was postponed to the next meeting. He noted that the Assembly would be introducing an ordinance to call for a two term limit for assembly and school board members. He also noted that Borough reapportionment would be forthcoming. Proper apportionment of the districts and the size of the assembly would be reviewed by a committee and Seward's tentative representative would be Margaret Branson. SIEMINSKI questioned what the wages would be for a borough employee at the landfill. Sewall stated that this issue had not been addressed as far as a wage. Sieminski stated that any employee hired should be paid the same as other cities. NOLL supported backing the people who offered to serve their country in the gulf war. He stated that if they are fighting for their country, they should be compensated for the difference in wages. Meehan con.. curred, stating that the standard of living should be maintained while they are doing their patriotic duty. Hilton concurred and suggested sending a resolution to the assembly stating the council's wishes. Krasnansky & Sieminski agreed. Noll requested the administration to write a letter of recommendation in favor. 110 PAGE 110 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None. VIII. APPROVAL OF CONSENT CALENDAR: KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIEMINSKI AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-013, authorizing the purchase of equipment for the electric department, was approved; B. Resolution No. 91-014, appropriating sales tax contributions to Seward General Hospital, was deleted from the agenda and action was postponed until a later date due to the lack of a quorum of voting councilmem- bers. (Hilton and Krasnansky abstained) C. Resolution No. 91-015, approving the ,:'1ase of equipment and supplies for the fire depart- ~~ support truck for SMIC, was approved; D. Resolution funding for construction of was approved; No. 91-016, urging state electrical intertie systems, E. Invoice for legal services from Perkins Coie as follows was approved for payment: City v. Seward Ship's Chandlery - $612.56 F. February 1, 1991, memorandum from Gifford regarding city investments was noted for information; G. Fiscal Year 1991 Second Quarter Financial report was noted for information; H. Fire Department Activity Report for Calendar Year 1990, was noted for information; I. February 7, 1991, memorandum from Diener regarding a proposal for development of a master plan for City Hall block was MOVED TO THE REGULAR MEETING AGENDA, NEW BUSINESS. J. February 7, 1991, memorandum from Diener regarding the status of repairs to the Lowell Creek Tunnel was MOVED TO THE REGULAR MEETING AGENDA, UNFIN- ISHED BUSINESS. I I I 111 PAGE 111 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 K. Change Order No.1 to the Woodrow Drilling and Construction contract for winter shutdown due to weather conditions was noted for information; L. Change Order No. 3 to the Metco, Inc. contract for removal of unsuitable material from Mustang and Olga streets to relocate a telephone box and allow for a drainage ditch on Mustang (+4,088.88), was noted for information; M. ABCB notification of applications for renewal of liquor licenses as filed by the following were noted and the Clerk was instructed to issue letters of non-Objection; AMERICAN LEGION CLUB POST #5 RAY'S WATERFRONT BAR AND GRILL YUKON LIQUOR STORE The application for renewal of a liquor license as filed by THE WHEELHOUSE was noted and the Clerk was instructed to issue a letter of objection because the penalties and interest on late taxes due the Kenai peninsula Borough remain unpaid. IX. PUBLIC HEARINGS: None. X. PRESENTATIONS WITH PRIOR NOTICE: None. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 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, REVISING CHAPTER 8.20, VEHICLES FOR HIRE, REGARDING THE LICENSING OF CHAUF- FEURS Notice of public hearing as posted and pUb- lished as required by law was noted, and the public hearing was opened. JAMES WEAVERLING, 1013 Bayside, spoke on behalf of Independent Cab Co. He stated that it would be expensive to pay for drug testing which could average approximately eighty dollars per driver. Most drivers barely make a living and could not afford to pay this J.12 PAGE 112 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 added cost. The cab companies could be financially harmed if required to pay for drug testing. He stated that Section 8.20.050(B), had been changed in that the cost of cab permits increased from $5.00 to $25.00. He objected to this increase of over four-hundred percent. He noted that Item 4, which addresses felony convictions, had been in the city code for a long time and the proposed changes suggested were much more restrictive than the current code. WARREN SMITH, CAMELOT SUBDIVISION. Block 11, Lot 13; stated that he had driven cab in Seward for a long time. He spoke of past drug offenders who had turned their lives around and he objected to someone being punished "forever" for a felony conviction from the distant past. He voiced his objection to the proposed changes in the code. RECESS: THE MEETING WAS RECESSED AT 8: 23 AND RECONVENED AT 8:31 P.M. No one else appeared in order to be heard, and the public hearing was closed. MEEHAN MOVED TO ENACT ORDINANCE NO. 643; THE MOTION WAS SECONDED BY KRASNANSKY; MEEHAN suggested postponing action until the first meeting of March. After speaking to James Weaver- ling and other concerned citizens, the attorney had suggested some changes to the ordinance. He agreed that the annual chauffeur's license fee increase and the necessity of drug testing costs are substantially higher. He suggested looking for other alternatives. SIEMINSKI asked why the cost of chauffeur's licenses had been increased to $25.00. SCHAEFERMEYER replied that the stated fee would cover the cost to the city to provide criminal background checks. SIEMINSKI suggested that the city might get a break if the drug testing were contracted out. SCHAEFERMEYER stated that currently samples are taken by the hospital and sent out to a lab. The City does not do any testing. He noted that the fee covers the cost for screening and charges for the lab work. Currently, the work done at the hospital averages $68.00 per test. He noted that it might be possible to have the testing done in Anchorage at a lesser cost. I I I 113 PAGE 113 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 HILTON asked if the cab companies perform any background checks of their drivers or if it was done by the police. Schaefermeyer replied that the police do the background checks which must be clean before a chauf- feur's permit is issued. Hilton stated that he under- stood that the cost of drug screening is a detriment financially. He suggested that if the chauffeur license conditions were violated, the person could then be tested at the time of the violation. KRASNANSKY concurred, stating drug testing should not be mandatory for the issuance of a chauffeur's license. He suggested testing after the fact to provide the drivers with a due process. NOLL stated that the suggestions from Hilton and Krasnansky were worthwhile to take into considera- tion. MEEHAN MOVED TO POSTPONE ACTION UNTIL THE FIRST MEETING OF MARCH; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. 2. Copies having been made available to the public, Noll noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AN ALCOHOL AND DRUG POLICY FOR CITY EMPLOYEES Notice of public hearing as posted and pUb- lished as required by law was noted, and the public hearing was opened. JAMES T. WEAVERLING, 1013 BAYSIDE, stated that the heavy equipment operators especially should submit to a drug policy for safety reasons. No one else appeared in order to be heard, and the public hearing was closed. HILTON MOVED TO ENACT ORDINANCE NO. 644; THE MOTION WAS SECONDED BY MEEHAN. SCHAEFERMEYER suggested an amendment to Section 3.70.035, concerning negligent hiring and pre-employment screening. ARVIDSON stated that the purpose of the amendment was to clarify what it means by the term "who is known to currently use illegal controlled substances." The first sentence would be changed to read "The City 114: PAGE 114 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 will not hire an individual whose previous employment has been adversely affected by use of illegal controlled substances or alcohol abuse." MEEHAN MOVED TO AMEND SECTION 3.70.035 BY STRIKING "WHO IS KNOWN TO CURRENTLY USE ILLEGAL CON- TROLLED SUBSTANCES OR FREQUENTLY ABUSES ALCOHOL" AND SUBSTITUTING "WHOSE PREVIOUS EMPLOYMENT HAS BEEN ADVERSE- LY AFFECTED BY USE OF ILLEGAL CONTROLLED SUBSTANCES OR ALCOHOL ABUSE"; THE MOTION WAS SECONDED BY HILTON AND CARRIED BY UNANIMOUS CONSENT. HILTON MOVED TO CHANGE "MAY" TO "WILL" IN SECTION 3.70.030; THE MOTION WAS SECONDED BY MEEHAN. ARVIDSON stated that in some cases if an employee reported to work unfit, it could be safer to leave an employee at the work site rather than move them off the job. The intent of the wording would provide flexibility and address the situation at the discretion of the supervisor. SCHAEFERMEYER stated that he preferred flexi- bility also. . HILTON stated that if someone was incapable of performing their job duties, they could be hazardous to others and should be removed from the workplace. Meehan concurred. ~ THE QUESTION WAS CALLED AND THE MOTION TO AMEND CARRIED UNANIMOUSLY. HILTON MOVED TO CHANGE "MAY" TO "WILL" IN SECTION 3.70.035; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS CONSENT. HILTON stated that according to Section 3.70.040, Off Duty Use Affecting Performance, the word "may" was once again used often. He questioned who would determine what is excessive alcohol use. , SCHAEFERMEYER replied that the immediate supervisor would determine if an individual were fit when reporting for work. If not fit and not fulfilling his job duty, then progressive discipline would be used. The first offense could result in a verbal reprimand but if continued, further stricter discipline would be imposed. He stated that the policy must be clearly stated in written language so the consequences are understood if an employee does report to work in an unfit manner. HILTON MOVED TO STRIKE THE FIRST "MAY", CHANGE "AFFECT" TO "AFFECTS", AND STRIKE THE PHRASE "OR MAY 1 . I I I 115 PAGE 115 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 INJURE THE EMPLOYER'S REPUTATION" IN SECTION 3.70.040; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS- LY. KRASNANSKY asked why no employees had come forth to speak on this issue. NOLL asked if employees should be legally involved in the process of this policy. ARVIDSON replied that Council set policy. YANEZ stated that he had meetings with three separate groups of employees in the city. Some were concerned with the off duty use of alcohol and the negligent hiring issue. He noted that the draft was proyided to all city employees but no response was forthcoming in the past week. All employees were aware that this issue was open to public hearing. HILTON asked if the heavy equipment operators would be required to submit to a drug test after the fact, the same as that proposed to the cab drivers. SCHAEFERMEYER stated that the administration was not actively pursuing an ordinance for drug testing at this time. He noted that if Council wishes, after reviewing provided information, the administration could look into the proposal. City employees are closely monitored and he noted that he saw no reason to impose a drug testing requirement at this time. KRASNANSKY stated that employees should have a fair chance and this issue could be better addressed under negotiations with employees under the public employees relations act. MEEHAN stated that employees were mostly concerned over how this would be enforced so no one would be discriminated against. He noted that he was comfort- able with this ordinance as amended. THE QUESTION WAS CALLED AND THE MAIN MOTION CARRIED BY UNANIMOUS CONSENT. 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, AMENDING SECTION 9.15.350 OF THE CITY CODE, REGULATING ABOVE GROUND FUEL STORAGE TANKS 116 PAGE 116 REGULAR M:EETING - FEBRUARY 11, 1991 VOLUME 26 N'" lished as hearing was \ of public hearing as posted and pub- .red by law was noted, and the public " ",ned. No one appeared in order to be heard, and the public hearing was closed. HILTON MOVED TO ENACT ORDINANCE NO. 645 SUB- STITUTE; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. C. Resolutions: 1, copies having been made available to the public, Noll noted by title only a resolution en- titled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPRO- PRIATING FY 91 SALES TAX REVENUES FOR THE PURPOSE OF MAKING A CONTRI- BUTION TO THE SEWARD CHAMBER OF COMMERCE IN SUPPORT OF VISITOR PRO- MOTIONS MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 91-017; THE MOTION WAS SECONDED BY HILTON. SCHAEFERMEYER stated that the administration supported this resolution to aid the Seward Chamber of Commerce in promoting Seward through a number of pro- jects. The city's contribution of $25,000 would match funds available to the Chamber by grants from the state and others. The promotion would consistly mainly of print media in various magazines and brochures about Alaska. A portion of the funds would be used to list services of an advertising agency which would assist in putting together promotional plans and events offered by Seward. There would be advertising in the Scenic Byway Brochure and the Alaska Sea Grant Brochure. He noted that a sign grant for a walking tour of the boat harbor aimed at commercial fishing was under consideration. The funds would also help in the distribution of a visitor information brochure to be distributed around the state and for the erection of a sign at the Mile 38 Y directing the visitor towards Seward. He noted that these projects were important because they cover Seward in the print media. MEEHAN concurred stating that this was a good investment in Seward's future. He noted that carpenter had made a good presentation to the city justifying the expenditures. I I I 1~_7 PAGE 117 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 HILTON agreed stating that this was an excel- lent use of extra sales tax money which could help bring more visitors to seward. KRASNANSKY asked Mr. carpenter to address the council on this issue. WAYNE CARPENTER, 325 Fifth Avenue, stated that the increased activity in Seward and the state of Alaska looks bright. People would not be travelling to Europe and the middle east with the Gulf War going on so they would be looking at travelling throughout the united states. The proposal before Council is a well rounded approach to advertise Seward. THE QUESTION WAS CALLED AND RESOLUTION NO. 91- 017 WAS APPROVED UNANIMOUSLY. XII. UNFINISHED BUSINESS: A. (Moved from Consent Calendar) Februarv 7. 1991. memorandum from Diener reqardinq the status of repairs to the Lowell Creek Tunnel. KRASNANSKY asked if there had been any change in the status of diverting the water with all the recent rain. SCHAEFERMEYER stated that he had spoken with Diener and he advised that the Corps of Engineers was able to contain the water and keep it out of the diver- sion structure so they could proceed with the repairs. XIII. NEW BUSINESS: A. (Moved from Consent Calendar) February 7. 1991. memorandum from Diener reqardinq a proposal for development of a master plan for the City Hall block. In answer to a question from Noll, Schaefer- meyer stated that City Hall block was the block where city hall is located and the block that the city owns. NOLL asked if the fire hall would be moved. SCHAEFERMEYER replied that since a significant number of citizens of Seward had moved north of the downtown area, in order to meet fire response times, it had been suggested in the fire plan to move the fire hall further north to shorten reponse time all around. The preference was for the fire hall to be located more centrally. He noted that there were no active plans at this time but location of the fire hall was identified in the fire master plan. 118 PAGE 118 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 NOLL asked who was on the master plan commit- tee. DIENER s'tated that the administration was responding to a request from Council to formulate a long range master plan for city hall block. He noted that there were other needs of the city - a future need for a teen/civic center, parks or greenbelt areas and a public safety building. He stated that he had met with Electri- cal Engineer Calvert, Community Development Director Mar tin, Police Chief Bencardino, Fire Chief Gage, Parks and Recreation Director Chaffin and Architect Patapoff to discuss and formulate a plan. criteria was developed from which Patapoff could build on. He noted that he wanted to start with this plan and encouraged suggestions from Council. He stated that the plan could always be revised further down the road. MEEHAN stated that he did not see any need to formulate a master plan at this time. Hilton concurred. DIENER noted that the master plan was needed very much and it should be done. He stated that the City administration could do some of it but an overall picture performed by a professional was needed. SCHAEFERMEYER agreed, stating that the need is not five years away. He noted that City office space is currently tight and the city should look at future growth. He reminded the Council that the jail is substandard and a plan needs to be implemented to replace the jail within three years. He noted that the state Courtroom upstairs was way beyond needing replacement and the city had been trying to encourage the court system to replace the Seward court facility. If replacement of the courtroom became possible along with the proposed public safety building, the State would need to be informed where the facility could be located. Therefore, planning documents were necessary to show where a facility could be put. He stated that the situation needed to be addressed now. DIENER added that another reason to formulate a master plan was to save the city from piece-mealing it's property. SIEMINSKI stated that two or three years was not far off. He agreed that the city should have a master plan to show where buildings would be located. HILTON asked why the cost of the proposal was revised downward. I I I lID PAGE 119 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 DIENER replied that he had been negotiating the fees on the proposal and some adjustments had been made at his request. Hilton stated for the record that he would vote no if this issue came up for a vote. NOLL stated that if confronted by a master plan on a home town "square", elected officials should be involved in the creation of a master plan. He noted that this area was an important part of town and asked who had requested the plan. SCHAEFERMEYER stated that the plan was ad- dressed during budget work sessions last spring and Sieminski had asked that it be developed. KRASNANSKY agreed with the administration that this needed to be done since the j ail was substandard and the court house needed to be redone. SIEMINSKI added that this was also brought forth during the discussions on requests for proposals for city office space. SCHAEFERMEYER offered to withdraw the offer stating that he would bring this to Council for action at a later date. He noted that he would not move forward until given direction from Council. NOLL suggested that more preparation and public input should be provided on this issue. XIV. CITY MANAGER REPORTS: Schaefermeyer reported that his trip to Juneau was a busy one with work primarily being done on the hospital project. He noted that Senators Kerttula, Menard and Zharoff were putting together a bill to fund the construction of hospitals in Seward, Kodiak and Ketchikan. He stated that he was optimistic on this project but work still needed to be done. He reported that he had received a memo from Diener on the Small Boat Harbor expansion project and per a recent teleconference, all work on boat harbor projects would be terminated. He stated that this affected the Nash Road Project but not the Fourth of July Creek flood control studies. He noted that he had contacted Senator Stevens and asked him to seek approval for the Corps of Engineers to complete at least reconnaissance work. He also made a request to turn around the President's request on section 107 studies in order for Seward to be able to finish the needed local studies. He stated that with budget pressures and deficits, the President did not want to see new projects created at this time. ~.20 PAGE 120 REGULAR MEETING - FEBRUARY 11, 1991 VOLUME 26 Monies which were included for the Lowell Creek flood study and the Fourth of July Creek project totalled $300,00 and $100,000 respectively. Schaefermeyer also stated that Finance Director Gifford had gone to Juneau for AML/JIA meetings and Port Marketing Director Gates would join willard Dunham and Chamber Director Carpenter in attending the state Chamber of Commerce meeting with the governor and commissioners. He noted that it was important for Seward to be repre- sented with such a new legislatuTe. xv. COUNCIL DISCUSSION: NOLL stated that he was leaving for Juneau to attend the Alaska Conference of Mayors meeting and the Alaska State ,Chamber meeting. He thanked Usibelli Coal Mine for its $1,000 contribution to SAAMS. He noted that the cambridge Seven Associates, an architectural firm, met with SAAMS and people from the Institute of Marine Science regarding marine mammal projects. XVI. CITIZENS' DISCUSSION: COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: XVII. XVIII. ADJOURNMENT: The m~eting was adjourned at 10:05 p.m. (- ' (~C~ Wl iam C. Noll Mayor - MARCH 11, 1991 VOLUME 26 I. CALL TO ORDER: The March 11, 1991, Seward City Council was called Acting Mayor David L. Hilton. regular meeting of the to order at 7:30 p.m. by II. OPENING CEREMONY: Councilmember Burgess led the pledge of allegiance to the flag. I I I 121 PAGE 121 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 III. ROLL CALL: Present were: Acting Mayor Hilton and Coun- cilmembers Burgess, Dunham, Krasnansky, Meehan and Sie- minski 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 Chaffin, Harbormaster Singleton, Police Chief Bencardino and City Clerk Murphy SPECIAL ITEMS: A. Formal acceptance of Noll's Resiqnation. DUNHAM MOVED TO ACCEPT THE RESIGNATION AS SUBMITTED BY MAYOR WILLIAM C. NOLL; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. B. Selection and seatinq of new Mayor. MEEHAN MOVED TO APPOINT HILTON TO THE VACANCY CREATED BY THE RESIGNATION OF NOLL; THE MOTION WAS SECONDED BY DUNHAM. Dunham stated that she hoped anyone who was selected as Mayor would not attempt to extend his powers beyond what was allowed by Charter. SIEMINSKI MOVED TO DECLARE MARCH 11TH AS THE OFFICIAL DATE OF NOLL'S RESIGNATION. THE MOTION WAS RULED OUT OF ORDER. Meehan stated that since the resignation was accepted on March 11th, that would be the date of resignation. On the other hand, he stated that it was appropriate to select the vice mayor as the new mayor and not put off the decision any longer. He noted that it was not good for the community to let this issue drag on. Dunham stated that the Council had allowed this situation to get out of control. She stated that she could not remember a time when appointing a Councilmember was so difficult. Krasnansky concurred with Sieminski and Burgess, but he agree that it was time to get on with the business of the city. "'''2 J.L, PAGE 122 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 Burgess stated that the one person who should be considered for Mayor was Dunham. Dunham stated that she had never considered being Mayor, but would take the job if approved by Council THE QUESTION WAS CALLED, AND HILTON WAS ELECTED MAYOR BY UNANIMOUS VOTE OF THE COUNCIL. Murphy adminis- tered the oath of office, and Hilton resumed the meeting as Mayor. Hilton stated that he appreciated the Council's concerns. He stated that he would do his best to be fair and to carry out the office as best he could. IV. APPROVAL OF MINUTES: KRASNANSKY MOVED TO APPROVE THE FEBRUARY 11, 1991, REGULAR MEETING 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 KRAS- NANSKY. Schaefermeyer requested an Executive Session to discuss current and pending litigation. DUNHAM MOVED TO MEET IN EXECUTIVE SESSION AS REQUESTED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. KRASNANSKY MOVED TO AMEND THE AGENDA BY ADDING A NEW ITEM B, NEW BUSINESS, SELECTION OF VICE MAYOR; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED, AND THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. 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: DON WHITMAN, 111 Barwell, spoke regarding the RFP for development of ship repair facilities at SMIC. He expressed his deep concern that the Council would accept Gates' recommendation to set aside Pruitt's proposal without benefit of public hearing. I I I 122 PAGE 123 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 JIM PRUITT, Maple street, also spoke regarding the RFP for SMIC development. He noted that the city staff had recommended short listing and deleting Seward Ships chandlery from the list. He asked that Council extend SSC the opportunity to present its proposal before making a decision on the merits of the two presentations. VIII. APPROVAL OF CONSENT CALENDAR: Burgess asked to move Item "0" to New Business, Item C. MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM. Krasnansky asked if he and Hilton should abstain from a vote on the resolution appropriating sales tax revenues to the hospital since both were employees of SGH. Hilton relinquished the gavel to Meehan for a decision. MEEHAN RULED THAT HILTON AND KRASNANSKY SHOULD ABSTAIN FROM VOTING ON THIS HOSPITAL ISSUE. THE QUESTION WAS CALLED, AND THE CONSENT AGENDA WAS APPROVED BY UNANIMOUS VOTE, EXCEPT THAT HILTON AND KRASNANSKY ABSTAINED ON ITEM A. The following actions were taken: A. Resolution No. 91-014, appropriating sales tax contributions to Seward General Hospital, was approved; B. Resolution No. 91-018, authorizing emergency purchase of a sewage lift pump motor, was approved; C. Resolution No. 91-019, opposing Alyeska's plan for transition of oil spill response to the spiller within 72 hours of an oil spill in Prince William Sound, was approved; D. Resolution No. 91-020, amending water rates for laundries, was approved; E. Resolution No. 91-021, authorizing the City Manager to delay award of a contract for prOfession- al services to develop a sludge disposal plan until after July 1, 1991, was approved; sublease Inc., to F. Resolution No. 91-022, approving the of Boardwalk Lease site No. 3 by Trails North, Carl and Kim Hughes, was approved; 12t;': PAGE 124 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 G. Resolution No. 91-023, authorizing the purchase of two Evinrude outboard engines, was approved; H. Resolution No. 91-024, increasing the METCO, Inc., contract for snow removal, was approved; I. Request for renewal of liquor licenses as filed by the following were noted and the Clerk was instructed to issue letters of non-objection to their renewal: PIONEER BAR TONY'S LIQUOR STORE PEKING RESTAURANT TONY'S BAR DREAMLAND BOWL J. Applications for permits for Games of Skill and Chance as filed by the following were noted for information: SEWARD IDITAROD TRAIL BLAZERS, INC. DISABLED AMERICAN VETERANS (WASILLA) DISABLED AMERICAN VETERANS (NORTH POLE) DISABLED AMERICAN VETERANS (ANCHORAGE) K. Claim for damages totalling $5,300 as filed by Diane Rivers was DENIED; L. Notification of smoking ban in facilities owned and/or operated by the city of Seward was noted for information; M. Report on street and sidewalk improvements public hearing was noted for information; N. Request to reappoint Chris Gates as the city's representative to the Regional citizens Advisory Council was noted and the Council reappointed Gates as the Seward representative; O. Moved to the Regular Meeting Agenda; P. Copy of "Yard featuring the Port of Seward Fishinq Maqazine was noted for of the Month" as appeared in information; article Pacific Q. Status report on the Seward Small Boat Harbor Expansion project was noted for information; and R. Perkins coie invoice for legal services totalling $18,462.67 for the month of December, 1990, was approved for payment. IX. PUBLIC HEARINGS: None I I I 125 PAGE 125 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 X. PRESENTATIONS WITH PRIOR NOTICE: A. Sheila Gottehrer, Executive Director, Regional citizens Advisory Council, thanked the city for its support and representation on the RCAC. She stated that Gates had been an effective and hard working member of the Council. She noted that another Sewardite, Dr. A. J. Paul, served on the science advisory committee of the RCAC. She stated that the RCAC was formed shortly after the Exxon Valdez oil spill as a part of the Alyeska contingency plan. She noted that the Kenai peninsula Borough, Kodiak Island Borough, Cordova, Homer, Kodiak, Seldovia, Seward and Valdez all have representation on the council along with several organizations. Gottehrer then gave a brief overview of the RCAC's mission. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: 1. the public, Hilton ordinance entitled: Copies having been made available to noted by title only a proposed AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING CHAPTER 8.20, VEHICLES FOR HIRE, REGARDING THE LICENSING OF CHAUF- FEURS. Murphy noted that this ordinance was not scheduled for public hearing. Action on a motion to enact the ordinance was postponed from the February 11th meeting. Meehan noted that the packet contained answers to some of the questions Council had asked earlier. However, he stated that he favored postponing the ordinance for several months during which the cab company owners would be instructed to police themselves and demonstrate their ability to supervise their personnel. The ordinance could then be reconsidered at a later date. Schaefermeyer stated that he had no objection to tabling the drug testing portion of the ordinance, provided that Council would consider adoption of several of the less controversial portions of the ordinance. He recommended postponing until the administration could come back with a substitute ordinance which would improve the existing ordinance. 126 PAGE 126 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 Murphy suggested that the Council postpone action until the March 25th meeting. At that time, the Administration would present a substitute ordinance which eliminated the drug testing requirement. Following public hearing, the Council could decide which version it wished to enact. MEEHAN MOVED TO POSTPONE ACTION UNTIL THE NEXT REGULAR MEETING; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. TAKEN OUT OF ORDER Hilton introduced former mayor William C. Noll, and noted his terms of office as a Councilmember and Mayor. He presented Noll with his gavel and extended to him the thanks of the Council and the citizens of the city. Noll gave his formal farewell address, thanking all those who voted for him and for those who supported and counselled him over the past few years. He stated that he especially wanted to thank the city employees, including appointed officials Schaefermeyer, Arvidson and Murphy. C. Resolutions: 1. copies having been made available to the public, Hilton noted by title only a proposed resolu- tion entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, WAIVING BID REQUIREMENTS FOR THE PURCHASE OF MODULAR OFFICE FURNITURE. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 91-025; THE MOTION WAS SECONDED BY DUNHAM. Finance Director Gifford stated that the Finance Department had six employees in one room, utilizing furniture which was not built for computers. He stated that the room was crowded and inefficiently used. Gifford noted that he had been working with a designer, Lynn Barrett of Alaska Business Environments, to provide a redesigned office space. He noted that the design process had been on-going since last summer. Meehan noted that the city was not being asked to approve a budget or a purchase order, but merely to approve the concept of waiving bid procedures. In response to a question from Hilton, Gifford stated that I I I 127 PAGE 127 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 the work stations would provide some privacy, noise deadening and more efficient use of space. Dunham asked that he investigate prison industries constructed furniture. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED UNANIMOUSLY. 2. Copies having been made available to the public, Hilton 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 ANDREW PATAPOFF FOR DEVEL- OPMENT OF A MUNICIPAL CAMPUS MASTER PLAN. KRASNANSKY MOVED TO APPROVE PROPOSED RESOLUTION NO. 91-026; THE MOTION WAS SECONDED BY BURGESS. Dunham stated that for the long term such a master plan was needed, especially considering the need for a new public safety building and fire station in midtown. Krasnansky asked if the entire block was city property and was told that it was not. Meehan stated that this was discussed in detail at the last meeting. He added that the request was far ahead of its time, and he, therefore, could not support it. Sieminski stated that he would vote in favor of the resolution. He stated that planning was needed now, not later. Burgess concurred. Hilton asked if Patapoff had reduced his proposed fee from $9280 to $8,000. Schaefermeyer stated that the $9280 in the resolution should be a NTE amount since the negotiated fee at this time was around $8,000. KRASNANSKY MOVED TO AMEND SECTION ONE OF THE RESOLUTION TO INCLUDE "NTE" PRIOR TO $9280; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED, AS AMENDED, WITH FIVE YES VOTES AND MEEHAN VOTING NO. RECESS: The meeting was recessed at 8:48 p.m. and reconvened at 9:00 p.m. 128 PAGE 128 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 XII. UNFINISHED BUSINESS: XIII. NEW BUSINESS: A. Review of SMIC proposals and request for policy direction for future development. (Note: Propos- als for development of the remaining ship repair station were received from two proposers - Seward Ships Chandlery and Todd Shipyards Corporation, with Todd presenting a preferred and an alternative proposal. An additional proposal for use of the 250-ton boatlift was received from Seward Aluminum Fabrication and would be considered separately at some later time.) BURGESS MOVED ,TO CONDUCT A WORK SESSION WITH BOTH PARTIES (PRUITT & TODD) TO BE HELD AT THE EARLIEST CONVENIENT DATE; DUNHAM SECONDED THE MOTION. Meehan stated that Todd would have to be notified, adding that a work session was not really needed. He stated that the city could answer all its questions by sitting down with Todd to negotiate. He further stated that he was inclined to release proposals to the public and then begin negotiations with Todd Shipyards. Dunham stated that she had no obj ection to releasing the proposals to the public. She also stated that she could see no harm in having Todd representatives come to the city to talk with the Council prior to the Council making a decision. Sieminski stated that a work session was needed to see if both projects could be built. Burgess stated that a work session was needed to give the Council all of the details of both proposals. Hilton noted that the administration was only asking for a policy position - Does the Council want to continue with a sole operator or proceed with a multiple user concept? This decision would determine whether negotiations could go forward with Todd. Schaefermeyer stated that this was, indeed, the direction sought by the Administration. He stated that the two proposals were mutually exclusive, with one seeking a contract to acquire the remaining facility and operation of the syncrolift under one operator, and the other seeking to construct an additional repair facility. He stated that he was not suggesting that this request to proceed with negotiations with Todd was an indication that there was a contract which the Council was being asked to adopt tonight. He added that it was possible I I I 129 PAGE 129 REGULAR MEETING - MARCH 11, 1~91 VOLUME 26 that the city would be unable to come to an agreement with Todd. At that point the city would have the alter- native of proceeding with Pruitt or looking for other options/operators. Schaefermeyer stated that he did not agree that a work session was needed at this point since the city essentially had two mutually exclusive proposals before it. . Hilton stated that he, too, was uncertain as to what would be accomplished with-a work session at this point. He added that he would agree to one once the city had something more tangible to discuss. He stated that the Council seemed to be in favor of a multiple operator concept, while still accommodating Pruitt. He asked about the terms of Pruitt's lease in relationship to the Todd proposal. Arvidson pointed out on the plat the property currently under lease to Pruitt as well as the section upon which Pruitt has the option to "meet or beat" an offer of another entity. He stressed that this was not a right of first refusal, but only a limited protection to allow Pruitt the option to meet or exceed an offer accepted by the Council from another proposer. Schaefermeyer repeated that, in Pruitt's lease, the only right contained therein for the berth under discussion, was the right to meet or exceed other offers with which the City Council had elected to go forward. He noted that it did not give Pruitt anyon-going right to lease this property at any time he (Pruitt) deemed appropriate. Burgess stated that he did not favor a sole operator. However, the city currently had an operator and, therefore, had certain obligations under the lease. Hilton stated that Arvidson had already stated his opinion that Pruitt's lease did not give him any prefer- ence. Gates reviewed both proposals for the Council. Hilton asked if denying access to utilization of the facility by contracting with a single operator could cause the city problems with the state since so much public money went into the construction of the SMIC. Arvidson stated that this question was asked when the agreement with VECO was approved. The recommendation of the attorney at that time was that any agreement to give sole operation of the syncrolift, a public utility, would require a vote of the people and could only be approved by the affirmative vote of three-fifths of those voting. 130, PAGE 130 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 Hilton stated that he was concerned about the potential for problems JAMES PRUITT, Maple Street, stated that his lease gave him a right of first refusal to meet or exceed any proposal received by the city for the subject property. He noted that when he initiated design and construction of his facility and met with the state fire marshall, it was obvious that the need for variances (set backs) had not been considered when laying out the lease parcels. Pruitt stated that it was obvious from his experience that two different companies would be unable to construct repair facilities using the rails system and meet the Code-required clearances and set backs. He stated that, when this was discovered, he contacted the city and requested to lease the adjoining property on which he had right of first refusal. He quoted from an April 5th letter from Gates stating that he had forwarded Pruitt's request to lease the adjoining property to City Attorney Arvidson who was at that time working on a draft lease amendment. He then quoted from a May 21st letter from Gates once again promising to provide a draft lease for the adjacent Ship repair station. Pruitt stated that all of his plans had included extension of the transfer pit to the north and east, utilizing the adjacent property. Pruitt stated that Todd's proposed building in Proposal "A" would not fit on the subject property and would effectively eliminate access to the shiplift dock. Pruitt also contended that Todd's proposal "c" would utilize the property upon which he (Pruitt) contends to have first right of refusal as a transportation corridor only. Therefore, his (pruitt's) proposal far exceeded Todd's plans for development on the property. Krasnansky stated that Pruitt had speculated on what Todd Shipyards wants to do, and the Council should bear in mind that pruitt's comments were just that - speculation. He stated that the city should continue evaluation of the remaining proposals. Hil ton stated he was not opposed to a work session at the appropriate time. However, the council needed to give some direction to the city Manager at this time so that the administration knew the Council's intent. He stated that if the Council did not wish to endorse the multiple use concept, there was no need to go forward with a work session. Meehan noted that the Port Committee voted unanimously to endorse the multiple use concept. If the city was not interested in multiple use, the RFP should not have been issued. He stated that it was not wise to I I I 131 PAGE 131 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 put 40-plus million dollars in public investment in the hands of a sole operator. He stated that he favored negotiating with Todd and Pruitt to find a way to satisfy both proposers. Dunham stated that the Port Committee was not given this type of presentation showing the restrictions that might exist. She noted that in the early 1980's, the city endorsed the single operator concept and would not permit others to invest in that area. She added that she would like to see multiple users at SMIC, but she was not sure that Todd knew what it was getting into if these things had not been taken into account. Dunham said that she wanted to be fair to both parties. Meehan stated that the evaluation committee did not have an open public hearing, but evaluated the proposals as received. He noted that the VECO agreement to which Dunham referred was needed, at the time, to acquire the $40 Million to construct the facility. Hilton stated that the city's experience with VECO should alert the city to the danger of being involved with a single operator. Burgess stated that he favored a multiple user concept. However, he was still in a quandary on the status of Pruitt's "right of first refusal" property. Hilton suggested an amendment to Burgess' motion to indicate that Council wished to make it clear from a policy standpoint that it favored a multiple user concept at SMIC. Hilton added that the Council could still proceed with a work session with Todd and Pruitt to discuss the proposals. Sieminski stated that he would like to discuss the entire 35 acres at the work session. Schaefermeyer stated that some of the Council's questions could be answered tonight. He noted that a number of statements made by Pruitt were not correct. Schaefermeyer stated that the questions raised by Pruitt were not raised during the RFP proposal, but only after it became apparent that the city might look at a compet- ing proposer. He added that the city had been fair with Pruitt throughout the process. Krasnansky stated that the city had bent over backwards to deal wi th Prui tt and suggested that the Council accept the administration's recommendations. KRASNANSKY MOVED TO AMEND THE ORIGINAL MOTION TO ADD THAT THE CITY COUNCIL WISHES TO CHOOSE A MULTIPLE CONTRACTOR-BASED CONCEPT FOR THE SEWARD MARINE INDUSTRIAL CENTER, DECLARE THE SSC PROPOSAL AS NOT MEETING THAT "0'1' ...)L, PAGE 132 REGULAR MEETING - MARCH 11, 1~91 VOLUME 26 REQUIREMENT, AND SHORT-LISTING THE SYNCROLIFT RELATED PROPOSALS TO ONLY TODD SHIPYARDS CORPORATION; THE MOTION WAS SECONDED BY DUNHAM. MEEHAN MOVED TO AMEND KRASNANSKY'S MOTION BY DELETING EVERYTHING FOLLOWING "MARINE INDUSTRIAL CENTER"; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUS- LY. THE QUESTION WAS CALLED, AND THE MAIN MOTION CARRIED BY UNANIMOUS VOTE. B. Selection of Vice Mayor. Burgess sug- gested that the Vice ~ayor be appointed after selection of another Councilmember; the Council concurred. C. Reschedule second meetinq of March. Burgess stated that he had made other plans which would take him out of town on March 27th, the suggested date. He recommended going ahead with the scheduled meeting. Council concurred. XIV. CITY MANAGER REPORTS: None xv. COUNCIL DISCUSSION: KRASNANSKY stated that in 1989, the Bad Boys of Alaska (BOA) commissioned an inmate at Spring Creek Correctional Center to create some pieces for the city of Seward. He presented the finished tooled leather engravings to the city for display in a public place. DUNHAM thanked O'Brien, Simutis and Orth for attending the meeting. SIEMINSKI asked when the city would be present- ing the budget to Council. He also asked that the council be provided with a capital projects calendar. Schaefermeyer stated that the council could be provided with a capital projects status report periodically. Sieminski stated that he would like a calendar showing the planned beginning and completion date of each project. MEEHAN stated that he had visited Juneau with SGH administrator Rabb to lobby for hospital construction funding. He stated that they both testified before the Senate HESS Committee. He added that everyone was supportive of the issue, but few commitments were forth- coming. Meehan said he felt confident that the funding would be forthcoming. I I I 133 PAGE 13 3 REGULAR MEETING - MARCH 11, 1991 VOLUME 26 HILTON read letters from Robert Quiroz and Tulla Wright thanking the community for its support and the care packages sent to them in Saudi Arabia. XVI. CITIZENS' DISCUSSION: CHRIS GATES, Johnston Road, thanked the council for re-appointing him to the RCAC. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT: The meeting was adjourned at 10:40 p.m. ~o-ll~ David L. Hilton, Sr. Mayor - MARCH 25, 1991 VOLUME 26 ORDER: The March 25, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton. II. OPENING CEREMONY: councilmember Dunham led the pledge of alle- giance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Meehan and Sieminski 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, Librarian Nicolas, and City Clerk Murphy 11)4 ..0 PAGE 134 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 SPECIAL ITEMS: A. Mary Hart, representing Seward Cable- vision, noted that a major satellite change would affect Seward's programming. She stated that the satellite Aurora was failing. As a result, until a new satellite could be launched and on line, the Denver networks would not be available to Seward customers. She stated that the city would probably receive programming from Detroit until the new satellite was in orbit in July or August. B. Kenai Peninsula Borough Mayor Don Gilman presented his STATE OF THE BOROUGH report to the Council. Gilman noted that with reduction in state funding for schools, along with the decrease in property values the Peninsula had experienced in the past few years, a property tax hike was likely. RECESS: The meeting was recessed at 8:20 p.m. and reconvened at 8:30 p.m. C. City Council candidates Patrick O'Brien, Garrett Schnell and Leslie Simutis gave brief presenta- tions regarding their qualifications for the vacant position on Council and their reasons for seeking the appointment. O'Brien, 209 Ravina, stated that he had the qualifications to fill the position and noted his 4.5 years on Council and 3.5 years on the Planning Commis- sion. He stated that he owned and operated a small business and had 18 years experience as the manager of the local General Telephone office. O'Brien stated that he was a long time resident of Seward. He added that he had lost the last election by only one vote which would indicate that the people considered him the preferred candidate. Garrett Schnell, 414 Fifth Avenue, stated that he had never run for office before, but had worked for local government. He said that he had lived in Seward for 2 years and owned a local marine repair business. He stated that he had the time and energy to do a good job, and his local government experience would help in his understanding of the issues and process. Schnell added that he favored harbor expansion and tourism and was financially conservative. Leslie Simutis, 1105 Second Avenue, noted that this appointment was for only six months. Therefore, it was important that the appointee be qualified and experi- enced. She stated that it was commendable that the Council had a number of applicants interested in serving. However, the city was just about to embark on the I I I 135 PAGE 135 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 budgeting process, a complex issue, and the Council and city would be best served by someone with previous knowledge and experience on the Council. Simutis stated that she was a 20-year resident of Seward. She added that she owned a small business and was a mother of two children in Seward schools. She stated that she would be an asset to Council and would bring a positive, progres- sive attitude, tempered by fiscal realities. She noted that she would champion no particular cause, but would have the best interests of the entire community in mind. The Mayor opened the floor to nominations. MEEHAN NOMINATED 0' BR;rEN.' BURGESS NOMINATED SCHNELL. ' DUNHAM NOMINATED SIMUTIS~ The Mayor noted that, following discussion, the Clerk would take a roll call vote for-each nominee in the order that the nominations were made. As soon as one nominee received four affirmative votes, that individual would be declared a member of Council. Meehan stated that O'Brien had the necessary experience and had served well in the past. He further stated that, in the past, the Council had generally appointed the next high vote getter from the previous election, and while the Council was not bound by this tradition, it would seem to be appropriate in this case. Meehan suggested that the Code be standardized to require appointment of the next high vote getter. Meehan stated that Simutis was also an excellent Councilmember and would be a good appointee for the same reasons he had noted regarding O'Brien. However, Schnell had not had the experience of the other two. Dunham stated that from the beginning she had felt that O'Brien should be the appointee, and she could see no reason why he should not be appointed. She indicated that she had been lobbied by quite a few people, both pro and con 0' Brien's appointment. However, O'Brien had done a good job while on Council. She noted that his strong point was the budget, and with this issue coming before the council soon, an experienced person was needed. Burgess stated that Schnell would be a good Councilmember, noting that he had a good understanding of the process and would add a new dimension to the Council. Sieminski stated that Councilmembers should vote for the person each felt was best qualified, not on 1t)t) -,.') - PAGE 136 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 the ba~is of whether he or she was the next high vote getter in the last election. Hilton stated that this was a difficult task, and each must vote his own mind. THE QUESTION WAS CALLED ON THE NOMINATION OF O'BRIEN; AND THE MOTION FAILED WITH DUNHAM, MEEHAN AND HILTON VOTING "YES" AND BURGESS, KRASNANSKY AND SIEMINSKI VOTING "NO". THE QUESTION WAS CALLED ON THE NOMINATION OF SCHNELL; AND THE MOTION FAILED WITH BURGESS, KRASNANSKY AND SIEMINSKI VOTING "YES" AND DUNHAM, MEEHAN AND HILTON VOTING "NO". THE QUESTION WAS CALLED ON THE NOMINATION OF SIMUTIS; AND THE MOTION CARRIED WITH BURGESS, MEEHAN, SIEMINSKI AND HILTON VOTING "YES" AND DUNHAM AND KRASNAN- SKY VOTING "NO". simutis. pated in The clerk administered the oath of office to Simutis took her seat on the dais and partici- the remainder of the meeting. Hilton thanked all who had applied for the position and welcomed Simutis back to the Council. IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE MARCH 11, 1991, 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 KRAS- NANSKY Sieminski asked to move Items C, G, and H from the Consent Calendar to the Regular Meeting Agenda. THE QUESTION WAS CALLED, AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS VOTE OF THE COUNCIL. VI. BOROUGH ASSEMBLY REPORT: Sewall was not present at this time. His report was given later in the meeting. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: I I I 137 PAGE 137 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 RON LONG, Camelot Subdivision, spoke in opposition to proposed Ordinance No. 642. TIM MOFFATT, Mile 1, Exit Glacier Road, stated that he was concerned that the passage of Ordinance No. 642 would have a chilling effect on relationship of the government with the public it was supposed to serve. He stated that the proposed new ordinance would lead the city into litigation. He added that the present ordi- nance adequately protected the confidentiality of police and litigation records, and he urged Council to reject the Ordinance No. 642 as drafted. STEPHEN SCHAFER, 2501 Maple, spoke in opposi- tion to Ordinance No. 642. He noted the potential for broad abuse of power an~ urged the Council to reword the ordinance to put it more in line with spirit and letter of state law. DON WHITMAN, 111 Barwell Street, stated that after reviewing the minutes of the January 28th meeting, he did not see any effort on the part of the administra- tion to amend the ordinance as directed by the Council. He strongly urged the Council to provide direction to the administration to protect the majority that elected them. JIM PRUITT, Maple Street, spoke in opposition to Ordinance No. 642. VIII. APPROVAL OF CONSENT CALENDAR: KRASNANSKY MOVED TO CALENDAR AS AMENDED; THE MOTION AND CARRIED UNANIMOUSLY. The taken: APPROVE THE CONSENT WAS SECONDED BY BURGESS following actions were A. Resolution No. 91-027, authorizing the city manager to enter into a use agreement with Rural Alaska Community Action Program, Inc., to provide the Head Start Program during the 1990-91 program year, was approved; B. Resolution No. 91-028, urging state fund- ing for the development and implementation of an enhanced 911 emergency system for the Kenai Peninsula Borough, was approved; c. Resolution No. 91-029, approving a dock use agreement with Seward Fisheries, Inc., was moved to the Regular Meeting Agenda for action; D. Resolution No. 91-030, appropriating funds for the purchase of outboard engines for the Small Boat Harbor, was approved; 138 PAGE 138 REGULAR MEETING - MARCH 25, 1991' VOLUME 26 E. assignment of was approved; Resolution No. 91-031, approving the lease interest in Boardwalk Lease site #2, F. January 1991 invoice from Perkins Coie for legal services totalling $17,384.00, was approved for payment; G. Fourth Quarter CY 1990 Sales Tax Report was moved to the Regular Meeting Agenda for presentation; H. Fiscal Year 1992 Budget Calendar was moved to the Regular Meeting Agenda for presentation; and I. Applications for Games of Chance & Skill as filed by SEWARD BPW and REPUBLICAN PARTY OF ALASKA, DISTRICT. 6 were noted for information. IX. PUBLIC HEARINGS: X. PRESENTATIONS WITH PRIOR NOTICE: A. HEATHER MCCARTY, Public Relations Direc- tor, Prince william Sound Aquaculture, Cordova, spoke in support of Resolution No. 91-032. She gave a brief history of PWSAC and noted that they now had three hatcheries and were about to take over two more. She stated that a number of Seward-based fishermen benefitted from PWSAC programs and many of the fish caught were processed in Seward. HILTON RULED THAT MEEHAN, AN EMPLOYEE OF SEWARD FISHERIES, HAD NO CONFLICT OF INTEREST WITH REGARDS TO RESOLUTION NO. 91-032. B. DAVE HAMMOCK, Project Manager, Puffin Public Broadcasting, noted that Puffin was a membership based corporation located in Seward. He further noted that Puffin held an FCC license to operate a translator to rebroadcast public radio from Anchorage. He stated that the proposed construction project would allow the station to originate some programming locally. c. WILLARD DUNHAM, Forest Acres, representing the Seward Association for the Advancement of Marine Science (SAAMS) Board of Directors, urged the Council to authorize the disbursement of the remaining grant funds to SAAMS to help offset the cost of a contract with Cambridge Seven for conceptual planning of the Alaska Marine Mammal Center. BOROUGH ASSEMBLY REPORT: - TAKEN OUT OF ORDER. I I I 139 PAGE 13 9 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a brief report of recent Assembly business and a schedule of upcoming public meetings. RECESS: The meeting was recessed at 9:45 p.m. and reconvened at 9:55 p.m. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: 1. the public, Hilton ordinance entitled: Copies having been made available to noted by title only a proposed AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING CHAPTER 2.05, RECORDS, REGARDING PUBLIC ACCESS TO MUNICIPAL RECORDS. Murphy noted that this ordinance was not scheduled for public hearing and added that a motion to enact was on the floor. Dunham stated that she intended to vote against the ordinance, noting that she shared some of the concerns of the news media. She stated that having worked with and owned a newspaper, she was particularly aware of the dangers of restricting information and the need to keep things as free as possible. She added that the increased staff time required to respond to public requests for information should be considered at budget time when determining staffing levels of the Clerk's office. Dunham suggested a work session to discuss the ordinance. Meehan stated that he disagreed with Dunham's assessment and noted that he would vote in favor of the ordinance. He stated that some groups had claimed to have difficulty getting records or information from the city, but the city had a duty to protect the taxpayers of the community. Meehan indicated that the ordinance would open more records to the public, not further restrict them. Sieminski asked if research on the ordinance fell under regular municipal work. Arvidson stated that it did. Sieminski then stated that he would support a work session, however, if called to vote at this time, he would vote no. :.40 PAGE 140 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 simutis noted that the motivation which gener- ated the ordinance was the need to bring the city into compliance with state law. She stated that overall it was a good document and she would support its passage. Arvidson said that a work session might be in order. He stated that some of the concerns expressed probably resulted from a lack of familiarity with the current ordinance. Arvidson noted that the stumbling block seemed to be the Executive Privilege section and he suggested eliminating this particular section if the Council felt the ordinance went too far. Burgess stated that he had spent most of Saturday going through the documentation presented in the packet. He stated that he sympathized with staff; however, the issue of public access to information was critical to the public welfare, and he added that he did not want to see anything in the ordinance except what was required by state law. He also stated that he wanted to include a provision which would allow the Council to look into confidential records of the city upon request. Krasnansky stated that he concurred with much of what Burgess had said. He agreed that the Council should have access to confidential information. Meehan stated that the adoption of this or- dinance would correct some of the difficulties Burgess had experienced 8 or 9 years ago. He added that he had never been denied access to city records. Burgess stated that most of his earlier concerns had been addressed and corrected. DUNHAM MOVED TO POSTPONE ACTION ON THE ORDI- NANCE UNTIL APRIL 22, 1991; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. A WORK SESSION WAS SCHEDULED FOR APRIL 16, 1991, BEGINNING AT 7:00 P.M. 2. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING CHAPTER 8 . 20, VEHI CLES FOR HIRE, REGARDING THE LICENSING OF CHAUF- FEURS. Notice of public hearing as posted and pUb- lished as required by law was noted. Hilton further I I I 141 PAGE 141 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 noted that comment would be taken on both the original version of the proposed ordinance and a substitute ordinance provided to the public and Council. The public hearing was opened; no one appeared in order to be heard, and the public hearing was closed. Murphy noted that action on this ordinance had been postponed from the March 11th meeting, and a motion to enact was on the floor. She adged that an amendment would be required to consider the substitute ordinance. MEEHAN MOVED TO AMEND THE MAIN MOTION BY REPLACING THE ORIGINAL ORDINANCE WITH ORDINANCE NO. 643 (SUBSTITUTE); THE MOTION WAS SECONDED BY DUNHAM. Burgess asked why drug testing was eliminated. Schaefermeyer stated that this section was removed at the direction of Council fOllowing public hearing on the original ordinance. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS ENACTED AS AMENDED WITH SIX YES VOTES AND SIEMINSKI VOTING NO. C. Resolutions: 1. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORT- ING THE PRINCE WILLIAM SOUND AQUA- CULTURE CORPORATION. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-022; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. 2. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A DOCK USE AGREEMENT WITH SEWARD FISHERIES, INC. HILTON MOVED TO APPROVE RESOLUTION NO. 91-029; THE MOTION WAS SECONDED BY DUNHAM. Sieminski asked why there was no use agreement last year. Schaefermeyer stated that there had been no agreement for the last several years. Schaefermeyer 142 PAGE 142 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 stated that the city had installed a cathodic protection .system on the dock. Under this agreement, SFI would provide maintenance of the cathodic protection system as well as the dock itself. HILTON NOTED THAT MEEHAN WAS AN EMPLOYEE OF SFI; HOWEVER, SINCE HE DID NOT STAND TO GAIN FINANCIALLY, HE RULED THAT MEEHAN DID NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO THIS AGENDA ITEM. THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS VOTE. XII. UNFINISHED BUSINESS: A. Update on SMIC Shipyard proposals. schaefermeyer noted that at the last meeting, the Council adopted by motion direction to the administration to proceed with a multi use concept. In addition, the Council had, by motion, instructed the Administration to schedule a work session. Schaefermeyer stated that he wished to receive additional direction regarding the subject of the work session. He stated that he intended to proceed forward with negotiations with Todd, and proposed that the administration first identify the elements of a business deal with Todd and then schedule a work session with the Council to review and discuss these elements. Then, following conclusion of negoti- ations and drafting of a lease agreement, a public hearing would be scheduled. Dunham stated that she would like to see an analysis of Todd's financial condition prior to going forward. Schaefermeyer stated that the city would be asking for this documentation. COUNCIL CONCURRED THAT THE ADMINISTRATION SHOULD PROCEED WITH NEGOTIATIONS WITH TODD, WITH A WORK SESSION TO BE SCHEDULED ONCE THE BASIC ELEMENTS OF A DEAL WERE IDENTIFIED. XIII . NEW BUSINESS: A. SAAMS request to release the balance of the $10.000 qrant to partiallY fund conceptual planninq for the Alaska Marine Mammal Center. BURGESS MOVED TO APPROVE THE RELEASE OF THE BALANCE OF THE $10,000 GRANT TO SAAMS; THE MOTION WAS SECONDED BY SIMUTIS. Krasnansky asked if the city was going to be asked to contribute additional funds in the future. I I I 143 PAGE 143 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 Dunham stated that the SAAMS board had not been aware that an earlier $100,000 request was made to the ci ty. She stated that any other request from SAAMS would be for a much smaller amount. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH SIX YES. VOTES AND KRASNANSKY VOTING NO. B. Election of Vice Mayor. MEEHAN MOVED TO APPOINT DUNHAM AS VICE MAYOR; THE MOTION WAS SECONDED BY SIEMINSKI AND CARRIED UNANIMOUSLY. C. Fourth Ouarter CY 1990 Sales Tax Report. Finance Director Gifford reviewed the report for the public. D. Fiscal Year 1992 Budqet Calendar. Finance Director Gifford outlined the budget process and calen- dar. XIV. CITY MANAGER REPORTS: Schaefermeyer noted that he would be travelling to Juneau with Dianne Rabb to testify at a hearing on hospital funding before the House HESS Committee. Schaefermeyer noted that Gates had been elected president of the RCAC. Gates stated that the RCAC had received a mandate from the president of the U. S. declaring that the RCAC was the federally recognized oversight group for oil spill prevention in this area of Alaska. XV. COUNCIL DISCUSSION: KRASNANSKY encouraged members of the community to visit the new clinic offices. SIMUTIS thanked the Council for allowing her to join them for the next six months. BURGESS noted that he had attended a training mission on the new emergency response vessel. SIEMINSKI asked about the status of the Peat Marwick legal services study. Schaefermeyer stated that the draft report would be available at the end of the month. HILTON stated that he had awarded the first annual Mayor'S cup to the winner of the dog sled race on Saturday. 144: PAGE 144 REGULAR MEETING - MARCH 25, 1991 VOLUME 26 XVI. CITIZENS' DISCUSSION: RON LONG, Camelot, stated that he had attended the emergency vessel training mission. stated that the vessel was well equipped and the knowledgeable. also He crew JIM PRUITT, Maple Street, stated that he was puzzled about the work session coming up on the SMIC lease proposals. He stated that he thought the work session was to be held prior to the negotiations. Hilton stated that there was nothing to discuss at a work session until the administration could meet and talk with Todd. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT: The meeting was adjourned at 11:25 p.m. E Q~oed~ David L. Hilton, Sr. Mayor . Seal) --------------------------------- 144 REGULAR MEETING - APRIL 5, 1991 VOLUME 26 I. CALL TO ORDER: The April 8, 1991, regular meeting of the Seward city Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Krasnansky led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Meehan, 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 I I I 145 PAGE 145 REGULAR MEETING - APRIL 8, 1991 VOLUME 26 Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recre- ation Director Chaffin, Harbormaster Singleton, Librarian Nicolas, Police Chief Bencardino and candi Butts PROCLAMATIONS: A. Hilton presented proclamations designating April 14-20, 1991, as Library Week and recognizing the contributions of Library Board Members Lee McAnerney, Julia McCarthy and Elsie Whitmore. BOARD OF ADJUSTMENT HEARING: A. Appeal of special condition to a Condi- tional Use Permit as filed bY the Kenai Peninsula Borouqh. Arvidson explained the procedure Council was to follow in hearing the appeal. He noted that the council was to base its decision on the record of the Planning commission meeting, including all information and testimony available to the Commission at that time. He added that any new information could only be considered if the matter was remanded back to the Planning Commis- sion. Arvidson stated that, fOllowing the Board of Adjustment Hearing, the Council could elect to meet in Executive Session to prepare its findings and conclu- sions; however, the findings and conclusions could only be adopted in open session. Dunham noted that several residents of Exit Glacier Road had attended the meeting in order to discuss a letter circulated by the Borough suggesting that if required to construct an alternate access road to the present landfill facility, the Borough would probably relocate the solid waste transfer facility to Exit Glacier Road. She stated that she would like to allow them to speak. Krasnansky concurred. Arvidson stated that the Board of Adjustment process was a means to review a decision previously made, adding that if the Council wished to consider new evidence or testimony, the matter must, by Code, be remanded back to the Planning commission for additional public hearing. Hilton stated that Arvidson had outlined the proper procedure and this was not the time or place for any new evidence or testimony to be offered in this matter. Simutis stated that she agreed that the matter should be remanded back to the Planning commission; 146 PAGE 146 REGULAR MEETING -APRIL 8, 1991 VOLUME 26 however, the Council should remand back with specific directions. THOMAS BOEDEKER, KPB Attorney, spoke for the appellant Kenai peninsula Borough. Boedeker noted that the city had issued a conditional use permit last year for this project. This permit did not contain a condi- tion requiring construction of an alternate access road to the landfill. Because the original permit expired before the Borough requested an extension, the Borough was required to apply for a new permit. Boedeker stated the Seward city Code,allowed the city to impose special conditions if they have some bearing on traffic, use of the facility, etc. He stated that, in this case, there were no findings or evidence presented that the road was required because of an increase in traffic. He stated that the Board of Adjustment had the authority to remove the special condition given the fact that it was imposed without factual basis. Boedeker noted that, should the Borough elect to relocate the transfer facility to another site, the residents of the community would have an opportunity to address the Borough Assembly concerning the location prior to any action on the part of the Assembly. Schaefermeyer asked that the Council deal with the issue of Conflict of Interest prior to its delibera- tions. Hil ton noted that he and Dunham were both residents of Forest Acres and had a potential conflict. He turned the gavel over to Meehan for a rUling. MEEHAN RULED THAT NEITHER DUNHAM NOR HILTON STOOD TO GAIN FINANCIALLY AS A RESULT OF THE DECISION BEFORE THE COUNCIL, AND HE DECLARED THAT NO CONFLICT EXISTED. MEEHAN MOVED TO HOLD AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING "UNFINISHED BUSINESS" TO CONSIDER THE APPEAL; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. IV. APPROVAL OF MINUTES: KRASNANSKY MOVED TO APPROVE THE MARCH 25, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: KRASNANSKY MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN. I I I 147 PAGE 147 REGULAR MEETING - APRIL 8, 1991 VOLUME 26 Schaefermeyer noted that he was removing the Transmission Line Update report from the Consent Calen- dar. Dunham asked that the Council allow the Ferry Task Force to make a presentation under "Presentations with Prior Notice". THE QUESTION WAS CALLED, AND THE AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS VOTE. VI. BOROUGH ASSEMBLY REPORT: 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: Hilton noted that several people had signed up to speak regarding location of the landfill; however, since this was not an agenda item, those wishing to remain could speak under Item XVI - citizens' Discussion. VIII. APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-033, setting fees for chauffeurs' licenses, was approved; B. Seward General Hospital financial report for the quarter ending December 31, 1991, was noted for information; C. Parks and Recreation Department Quarterly Report was noted for information; D. Railbelt energy cost comparison as prepared by Engineering and utilities Manager Diener was noted for information; and E. Transmission Line Update was deleted from the Consent Calendar by the City Manager. IX. PUBLIC HEARINGS: X. PRESENTATIONS WITH PRIOR NOTICE: A. BOB CONFER. Vice President. Marketinq. Todd Shipyards Corporation - Update on Todd Proposal. Confer asked the Council's indulgence in allowing Todd 148 PAGE 148 REGULAR MEETING -APRIL 8, 1991 VOLUME 26 Shipyards to table its proposals for developing a shipyard at the SMIC. He stated that the principal reasons for the request were unresolved resource manage- ment questions and issues, such as imposition of quotas on an already over-capitalized fishing fleet and resource allocation between shores ide and afloat processors. He stated that these issues had challenged Todd's marketing forecast for the success of the Seward facility and had caused the Board of Directors to look at the least favorable projections for the success of such a facility. In addition, the recent credit crunch facing many businesses had played a part in this decision. The Board had decided that the limited operating funds available to Todd would have to go to sustain current operations and not to construction of new facilities. Confer stated that one issue which had impacted the financial side was the increase in the estimated cost of the facility, principally the requirement that the operator finance expansion of the transfer facility and the work stations. He stated that Todd viewed this as benefitting not only Todd Shipyards, but also potential future operators as well as the existing operator. Confer stated that one other major factor at play was the lack of "work afloat" facilities. He stated that much of their business was generated from vessels afloat. Meehan stated that many of the concerns expressed by Confer should have been apparent to Todd prior to submission of the two proposals. Confer responded that, during most of this time, Todd was operating in bankruptcy. Over one year ago, the Board of Directors gave management license to investigate the possibility of opening a Seward facility. Since that time, the Board had not met and the issue was not put before them since that time. unfortunately, the proposal was due five weeks prior to the next Board meeting. It was at this meeting that the Board elected to table the proposal. In response to a question from Meehan, Confer stated that he had been authorized by Todd's Chief Executive Officer to state that Todd would revisit the question of investing in Seward in the near future. B. WILLARD DUNHAM - Ferry Task Force Report. Dunham noted that the Trade Board had called a citizens meeting the prior week to organize a task force to answer the Department of Transportation's statement that it planned to remove the Tustumena from Seward in 1992. He stated that the task force would meet regularly. However, this body would not be an arm of the Trade Board or any other city board or commission. He stated that 40 individuals had attended the organizational meeting on Friday, representing every sector of the community, including families of the crew of the Tustumena. I I I 149 PAGE 149 REGULAR MEETING - APRIL 8, 1991 VOLUME 26 XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: None c. Resolutions: None VI. BOROUGH ASSEMBLY REPORT: (Taken out of Order) Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on the April 2nd Assembly meeting. He noted that the Mayor'S preliminary budget summary called for an 8 mill tax rate. He noted that to hold the mill rate at 5.75 mills would require a $12 Million budget cut, and this was not feasible given the numbers of state mandated programs which were only partially state~funded. XII. UNFINISHED BUSINESS: A. SMIC Shipyard Proposals Update. Schaefer- meyer noted that Confer's presentation pretty well covered the update. He added that the Council had preYiously acted to set the policy that the city seek multiple operators at the Marine Industrial Center. He stated that Todd's withdrawal would do nothing to change this policy. Simutis stated that she would like to have a work session to discuss the city's options and the future of the shipyard. Dunham suggested including the Trade Board, Port Committee and Chamber of Commerce in this work session. A WORK SESSION WAS SCHEDULED IN CONJUNCTION WITH THE PORT COMMITTEE MEETING, BEGINNING AT 7:00 P.M., WEDNESDAY, APRIL 17TH. RECESS: The meeting was recessed 8:26 p.m. FOllowing the Council's Executive Session, the meeting was reconvened at 9:30 p.m.. XIII. NEW BUSINESS: Hilton noted that the Council had instructed the attorney to prepare findings and conclusions regard- ing the borough's appeal, amending the Conditional Use Permit by mOdifying the special condition requiring an alternate access road. If acceptable to the borough, the findings and conclusions would be ratified by the Council at the next regular meeting. 150 PAGE 150 REGULAR MEETING -APRIL 8, 1991 VOLUME 26 XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that House special Committee on the Exxon Valdez oil Spill Claims Settlement would hold a public hearing in Seward on Friday, April 12, 1991, from 7:30 p.m. until 10:00 p.m. at the Seward Community Library. He urged the Council and the public to attend. DIENER updated the Council on the Lowell Canyon Creek and Fourth of July Creek flood control studies. He noted that the reconnaissance studies had been completed. He stated that the next major step was a feasibility study which was likely to take 18 months to 2 years to meet all federal requirements. This would be followed by submission to Congress for project approval. Since this approval was given on even years, the first opportunity for project approval would be in 1994. However, it was unlikely that it would be ready for submission to Congress prior to 1996. Diener stated that the city would be required to fund 50% of the cost of the feasi- bility study, and he estimated the city's share to be $200,000 for Fourth of July Creek and $439,500 for Lowell Canyon Creek. xv. COUNCIL DISCUSSION: SIMUTIS reported that she and Hilton had travelled to Juneau to testify before the Senate Finance Subcommittee for the Department of Health and Social Services with regards to funding for the hospital project. She stated that the response was positive. MEEHAN stated that he was pleased to see the city Public Works crews working on the city streets repairing winter damage. DUNHAM reported that the Ferry Task Force was divided into subcommittees. She stated that she was on the Committee for Ferry families to assess how many people would be directly affected by the loss of the Tustumena and to assess the dollar value of that loss, including the loss of health insurance benefits. She invited the families of Ferry employees and longshoremen to attend the next meeting at 10: 00 a. m. on Tuesday, April 9th. HILTON noted that Advisory Council would meet in 19th at the IMS Rae Building. attend. the Regional citize~s' Seward on April 18th and He urged the public to HILTON stated that he and simutis had also attended a hearing on HB 214, which provided for the I I 151 PAGE 151 REGULAR MEETING - APRIL 8, 1991 VOLUME 26 depoliticization of the funding process for the construc- tion of health care facilities around the state. XVI. CITIZENS' DISCUSSION: HERMAN LEIRER, 101 Leirer Drive, stated that there was no need to require the borough to construct an alternate access road to the landfill. He stated that with the construction of a transfer facility, there would be less truck traffic to the landfill since refuse north of the city (cooper Landing, Hope, Moose Pass and Crown Point) would be transported directly to Soldotna, not to Seward. He further contended that construction of the access road would create a flood hazard for Forest Acres. BOB WHITE, Exit Glacier Road, spoke in opposi- tion to location of the solid waste transfer facility on Exit Glacier Road. WILLARD DUNHAM, Forest Acres, stated that he had been asking that the Council do something to replace or rebuild the old Japp Creek Road for the last twenty years. He noted that up until this current scenario with the Borough requesting a conditional use permi t, the residents of Forest Acres had not had a wedge to open this issue to discussion. Dunham stated that the old road was maintained by the state or territory. He said that old Japp creek Road failed because a contractor was allowed to take gravel from the area between Resurrection Riyer and Japp Creek, changing the course of the river. Dunham stated that it was never his intention to "stick the Borough" with the cost of a new access road; however, the time had come for all of the parties to work together to find the means to construct the road. DUNHAM also reported that he testified on behalf of the city at the Exxon hearings on saturday. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: XVIII. ADJOURNMENT: The meeting was adjourned at 10:14 p.m. I ~:co-t:d~ David L. Hilton, Sr. Mayor 152 PAGE 152 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 r. CALL TO ORDER: The April 22, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Meehan led the pledge of al- legiance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Meehan, 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, Finance Director Gif- ford, Harbormaster Singleton, Librarian Nicolas, Community Development Director Martin, Hospital Administrator Rabb, Police Chief Bencardino and City Clerk Murphy PROCLAMATIONS: A. Hilton read aloud and presented to SLAC employee Gabrielle Armstrong a proclamation designating May 1991 as Mental Health Month in Seward. B. Hilton read aloud a proclamation designat- ing May 12-18, 1991, as Nursing Home Week in Seward. IV. APPROVAL OF MINUTES: S IMUTIS MOVED TO APPROVE THE APRIL 8, 1991 , MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS 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 the addition of Resolution No. 91-039 to Item XIII(C). I I I 153 PAGE 153 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 MEEHAN MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS THE IRBY LITIGATION; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED, AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS VOTE. VI. BOROUGH ASSE~BLY REPORT: Kenai Peninsula Borough Assembly Member Sewall was not present, and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: BLAINE BARDARSON, 612 Second Avenue, read from an earlier letter he had submitted to the city urging the paving of Dairy Hill and Government Hill Roads with the bond funds approved in 1989. DAVE CRANE, 210 Fourth Avenue, stated that he represented the Downtown Merchants Association comprised of some 40 business members. He stated that the Associa- tion's goal was to revitalize the downtown business district. Crane contended that the Downtown merchants were not getting their fair share from the ci ty of Seward. He noted that the businesses represented a substantial portion of the city's tax base. He added that anything that improved the appearance of Downtown and attracted business to the area would be good for the city of Seward. Crane stated that the Association was not looking for a handout, but only what was due to them. He asked that the Council include "Alternative B" (pedestrian poles/decorative lighting) in the contract with Summit paving in the same manner as Alternates E and F. PAT O'BRIEN, 209 Ravina, stated that he appreciated the efforts of the downtown merchants, but disagreed with some of their statements. He stated that the city had contributed a great deal to the downtown over the past several years. In addi tion, downtown sidewalks were scheduled to be redone and a public address system installed. O'Brien stated that he fayored the paving of Dairy Hill. He questioned the amount bid to construct sidewalks on Fourth Avenue to the Boat Harbor as well as the need for new streetlights along Fourth and Fifth Avenues. VIII. APPROVAL OF CONSENT CALENDAR: 15(: PAGE 154 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 Meehan requested that Item C be moved to Regular Meeting Agenda. Sieminski asked to move Items B and G to the Regular Meeting Agenda. SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-034, approving an amendment to the prison TORA, was approved; B. Resolution No. 91-035, ratifying the Coun- cil's decision on appeal filed by the Borough regarding a special condition to a CONDITIONAL USE PERMIT issued by the Planning Commission, was moved to the Regular Meeting Agenda; C. Resolution No. 91-036, approYing the purchase of a surgical table for Seward General Hospital, was moved to the Regular Meeting Agenda; D. Appointment of Leslie Simutis as the Coun- cil's representative to the Community Hospital Board was confirmed by the Council; E. Informational memorandum regarding the Army/Air Force Recreation Camp leases was noted for information; F. Applications for permits for games of chance and skill as filed by SIFA and AK INFORMATION RADIO READING EDUCATION SERVICE were noted for informa- tion; G. Fiscal Year 1992 budget calendar was noted for information and moyed to the Regular Meeting Agenda for discussion and approval; and H. April 1, 1991, memorandum from Diener regarding reliability of electrical power supply was noted for information. 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: I I I 155 PAGE 155 REGULAR MEETING '- APRIL 22, 1991 VOLUME 26 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CHAPTER 2.05, RECORDS, REGARDING PUBLIC ACCES~ TO MUNICIPAL RECORDS. Murphy noted that action on this ordinance had been postponed from the March 25th meeting. No public hearing was scheduled, and a motion to enact was on the floor. DUNHAM MOVED TO DELETE THE EXECUTIVE PRIVILEGE PORTION OF THE ORDINANCE; THE MOTION WAS SECONDED BY SIMUTIS. Sieminski stated that the city paid the attor- ney to write the ordinance which was based on state law and decisions of the court. Although seyeral people spoke in opposition to the ordinance at an earlier public hearing, only one person had attended the work session. Sieminski suggested that the Council adopt the ordinance in its original form at this time and review it quarterly for at least the first year to see how it worked. Dunham stated that she was still philosophical- ly opposed to the Executive Privilege section of the ordinance. She stated that she did not feel comfortable with it and didn't trust it. Krasnansky concurred with Sieminski in part. He added, however, that everyone who testified at the public hearings opposed it, and, therefore, he could not support it. Meehan stated that he felt it was in the public interest to leave this section intact because the city deserved the protection this chapter would afford. He noted that a great deal of work had gone into the ordinance, and he supported adoption in its original form. Burgess stated that the Executive Privilege section was the only one that bothered him, but he would go along with it if there was a check and balance which allowed Council to reyiew the Executive privilege file. Otherwise, there would be a possibility of abuse by the administration. Hilton stated that he could see no reason to remove this particular section. He agreed with Sieminski and noted that anything the Council could enact could 156 PAGE 156 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 also be changed. He suggested that Council enact the ordinance in its present form and closely monitor its implementation. THE QUESTION WAS CALLED ON THE AMENDMENT, AND IT FAILED WITH BURGESS, DUNHAM AND KRASNANSKY VOTING "YES" AND HILTON, MEEHAN, SIEMINSKI AND SIMUTIS VOTING "NO". Arvidson suggested that the Council instruct the Clerk to prepare a quarterly report as suggested by Sieminski. Dunham stated that unless the Clerk was given some assistance, the Council should not ask her to perform additional duties. Murphy responded that the reporting requirements as outlined could be accommodated by her office. Arvidson stated that the report should focus on executive privilege: how often it was used and for what purpose. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS ENACTED WITH HILTON, KRASNANSKY, MEEHAN, SIEMINSKI AND SIMUTIS VOTING "YES" AND BURGESS AND DUNHAM VOTING "NO". KRASNANSKY MOVED FOR RECONSIDERATION AT THE NEXT MEETING. (Note: The Clerk failed to note the need for a second to this motion. The motion will be voted on at the next meeting only if a second is forthcoming at that time.) C. Resolutions: 1. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT FOR STREET AND SIDEWALK IMPROVEMENTS. Schaefermeyer noted that a substitute resolu- tion had been distributed to the Council. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-037 (SUBSTITUTE); THE MOTION WAS SECONDED BY DUNHAM. Diener noted his memorandum recommending award of certain portions of the bid work. He complimented the Downtown Business group and stated that it was unfortu- nate that there were insufficient funds to complete all I I I 157 PAGE 157 REGULAR MEETING- APRIL 22, 1991 VOLUME 26 of the projects listed in the bid documents. He outlined the various schedules and noted that only the basic bid - Schedules A (Downtown sidewalk Improvements) , C (Downtown Public Address System), G (Fourth Avenue Sidewalk Improvements) and H (Fifth Avenue Sidewalk Improvements) would be awarded at this time. He further noted that the resolution provided that, in addition to the basic bid, the city Manager could n~gotiate contracts for overlaying Washington and Adams streets. Diener stated that the resolution also provided that paving of Government Hill and Dairy Hill Roads would be contingent upon the availability of funds and prior authorization of the city council. Burgess asked if Schedule B (Downtown Pedestri- an Poles) could proceed if the Downtown merchants provided the funds. Diener noted that the bid price for this schedule totalled $121,000 and might represent a more substantial investment than the business owners could make. Simutis asked if the city had looked into the possibility of not replacing some of the street lighting on Fourth and Fifth. Diener stated that if a pedestrian way was being constructed, the city should provide adequate light. Burgess asked if the city crews could install the 24 decorative lights if they were purchased by the downtown merchants. Diener stated that having city crews install them would not be cost effective. Meehan stated that he was very much in favor of the paving in Dairy Hill as well as the downtown light- ing. He stated that the council had supported and encouraged beautification of the downtown area. He agreed that street lighting would improve the business atmosphere in the downtown area and increase business. He encouraged the downtown businesses to do their part by beautifying their store fronts. Meehan asked what would be needed to complete Schedules B, E and F. Schaefermeyer replied that this would require approximately $240,000 in additional funds. Dunham stated that the Hyatt-Palma contract was not just for the benefit of the downtown businesses, but for the entire community. She asked if the Dairy Hill paving had been included in the bond proposition lan- guage. Schaefermeyer stated that the bond proposition was very general, and the ballot summary did not mention Dairy Hill, Government Hill or decorative street lights. 158 PAGE 158 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 RECESS: The meeting was recessed at 9: 10 p. m. and reconvened at 9:25 p.m. MEEHAN MOVED TO AMEND RESOLUTION NO. 91-037 (SUBSTITUTE) BY ADDING A NEW SECTION 5, TO INCLUDE STREET LIGHTING NTE $121,000 WITH THE SAME REQUIREMENTS AS SCHEDULES E & F IN SECTION 3; THE MOTION WAS SECONDED BY BURGESS. In response to a question from Schaefermeyer, Meehan stated that paving of Dairy Hill and Government Hill would get first priority, followed by decoratiye street lighting. Sieminski asked what happened to the interest on the unexpended funds. Schaefermeyer stated that the interest had been deposited into the general fund. Krasnansky stated that the roads required immediate attention, unlike some of the other issues which could wait until next year. Arvidson suggested the following new language to accomplish Meehan's objective in his motion to amend: section 5. The public interest would be served and the city manager is hereby autho- rized to execute a contract with Summit Paving and Construction for installation of downtown pedestrian poles (Schedule B), except that a Notice to Proceed shall be issued only if additional funds are available prior to com- pletion of work authorized by sections 3 and 4 above and provided further such Notice to Proceed receives prior approval of the city Council. THE QUESTION WAS CALLED, AND THE AMENDMENT WAS APPROVED WITH FIVE YES VOTES AND DUNHAM AND SIEMINSKI VOTING NO. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND THE RESOLUTION WAS APPROVED AS AMENDED BY UNANIMOUS VOTE. 2. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A PROFESSIONAL SERVICES CONTRACT TO MCCOOL-CARLSON-GREEN FOR SERVICES NECESSARY TO REPAIR PRISON WINDOW FRAMES. I I I 159 PAGE 159 REGULAR MEETING- APRIL 22, 1991 VOLUME 26 SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-038; THE MOTION WAS SECONDED BY MEEHAN. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. 3. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPRO- PRIATING FUNDS FOR STREET AND SIDE- WALK IMPROVEMENTS. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-039; THE MOTION WAS SECONDED BY SIMUTIS. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. 4. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING THE PURCHASE OF A SURGICAL TABLE FOR THE HOSPITAL. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-036; THE MOTION WAS SECONDED BY SIMUTIS. MEEHAN MOVED TO POSTPONE ACTION UNTIL THE NEXT REGULAR MEETING; THE MOTION WAS SECONDED BY SIMUTIS. Hilton asked the vice mayor to rule on whether he and Krasnansky had a conflict with respects to this resolution. DUNHAM RULED THAT THERE WAS NO CONFLICT. THE QUESTION WAS CALLED ON THE MOTION TO POSTPONE, AND THE MOTION CARRIED BY UNANIMOUS VOTE. 5. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RATIFY- ING THE DECISION OF THE BOARD OF ADJUSTMENT REGARDING THE BOROUGH'S APPEAL OF THE GRANTING OF A CONDI- TIONAL USE PERMIT BY THE SEWARD PLANNING AND ZONING COMMISSION. 160 PAGE 160 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 91- 035; THE MOTION WAS SECONDED BY DUNHAM. Arvidson reviewed the basic provisions of the decision which affirmed but modified the Planning Commis- sion's imposition of a special condition that the borough construct an alternative access road to the landfill site. He stated that the decision called for a reyiew of the permit sometime between January 1 and June 30, 1994. Prior to the review, the borough would conduct random and statistically meaningful traffic studies on Dimond Bouleyard to identify overall traffic load, the type of vehicles using the road and whether or not the vehicles were associated with the transfer site. In addition, the city and the borough would jointly explore the engineer- ing feasibility of construction of an alternative access road to the transfer site as well as the possibility of seeking and obtaining state and/or federal grant monies to construct the road. If the borough's traffic study should demonstrate that the traffic levels on Dimond Bouleyard attributable to the transfer site operations increased more than 20% from the established baseline, the permit would be subject to review and modification or revocation. However, the city would continue to work with the borough to develop a mutually acceptable long- range plan to accommodate the excess traffic. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. XII. UNFINISHED BUSINESS: None XIII . NEW BUSINESS: A. FY 1992 Budqet Calendar. SIEMINSKI MOVED TO APPROVE THE BUDGET CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM. Sieminski stated that budget work sessions should be held in the evenings rather than at Noon to make them more accessible to the public and to allow more time for discussion. Hilton noted that the public rarely attended budget work sessions no matter what time they were held. In addition, he noted that the General Fund discussion was scheduled for an evening work session to allow ample time to review it in depth. The Enterprise Funds and the Capital Budget would be discussed at the Noon meetings. THE QUESTION WAS CALLED, AND THE BUDGET CALENDAR WAS ADOPTED WITH SIX YES VOTES AND SIEMINSKI VOTING NO. I I I 161 PAGE 161 REGULAR MEETING- APRIL 22, 1991 VOLUME 26 XIV. CITY MANAGER REPORTS: Schaefermeyer noted that some funding had been identified in the governor's capital budget for the Department of Transportation which would be suitable for matching the city's portion of the feasibility studies for the two flood control projects. He stated that Dawson and Kerttula were attempting to add intent language to that particular appropriation bill. Schaefermeyer stated that he and Hilton would be travelling to Juneau in the next few days. Schaefermeyer also noted that $8 Million had been identified in the governor's budget which had been set aside for boat harbor repairs around the state. He stated that the city would attempt to obtain a portion of these funds for repairs in the Small Boat Harbor. XV. COUNCIL DISCUSSION: MEEHAN stated that he wanted the downtown business owners to know that there were ways to obtain their goals and that the amendment was not made just to appease them. Meehan also noted that it was very dark around the Teen Center and asked if the new lights would correct that situation. Diener stated that lighting for that corner should take care of the problem. He added that he would look into it. KRASNANSKY stated that he toured the drill rig last week and was quite impressed. SIEMINSKI asked for a SMIC status report. Schaefermeyer stated that the administration was working on a program for Council approyal which would provide areas for individuals to properly work on vessels taken out of the water with the 250 ton travel lift. He stated that the program would assure that the city was protected from toxic waste. Schaefermeyer said that the adminis- tration was also reviewing the fee schedule. BURGESS stated that was advertising that he owned especially since he (Pruitt) purchase. he was upset that Pruitt the 250-ton travel lift, had fought to stop its DUNHAM displayed fish line gathered on 7th Avenue and stated that the beach was littered with it. She suggested using prisoners from the Seward Jail to clean up the beach. Dunham also inquired about sanitary facilities for tent campers on the beach. Schaefermeyer stated that campgrounds did not officially open until May 15th. He stated that he would look into this situation. 2.62 PAGE 162 REGULAR MEETING - APRIL 22, 1991 VOLUME 26 HILTON encouraged everyone to watch for the advertised budget work session schedule and to attend and give input to the Council. He inquired about the Master Plan for city facilities. Diener stated that the contractor had been interviewing state office personnel and doing the groundwork for the study. XVI. CITIZENS' DISCUSSION: CHRIS GATES, Johnston Road, reminded Council that a Task Force was still working hard to saye the Tustumena. He asked those interested in helping to send messages through the Legislative Information Office to their legislators. Gates also noted that Commissioner Turpin would be visiting Seward in mid July. XVI I. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT: following Executive The meeting was adjourned at 10:30 p.m., and a brief recess, the Council reconvened in Session to discuss the Irby litigation. ~~/~ David L. Hilton, Sr. Mayor Seal) ------------------------------------------------------- PAGE 162 SPECIAL MEETING - MAY 6, 1991 VOLUME 26 1. CALL TO ORDER: The May 6, 1991, special meeting of the Seward City Council was called to order at 7:06 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Dunham led the pledge of al- legiance to the flag. III. ROLL CALL: I I I 163 PAGE 163 SPECIAL MEETING ~ MAY 6, 1991 VOLUME 26 Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Sieminski and Simutis (Meehan was excused) Present also: Ci ty Manager Schaefermeyer, Assistant City Manager Yanez, Enqineering & utilities Manager Diener, Finance Director Gif- ford, Assistant Finance Direc- tor Bagierek, Police Chief Ben- cardino 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: None VI. RESOLUTIONS: A. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING RESOLUTION NO. 90-097 IN ORDER TO RELEASE MATCHING FUNDS FOR MODEL TESTING OF A PERMEABLE WAVE BARRIER SUITABLE FOR THE SEWARD SMALL BOAT HARBOR. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-040; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that in August 1990, the Council approved a resolution appropriating $25,000 from the Harbor Fund as matching funds for a permeable wave barrier study which was to be financed in part by a grant from the Alaska Science and Technology Foundation. A condition of this prior resolution was that the funds could be released only after the city entered into an agreement with the Corps of Engineers for a feasibility study of the project which stated in part that these funds would be considered a part of the city's cash match for the study. Subsequently, Congress froze all funding to the Corps of Engineers. Since the Corps' reconnais- sance review had not been completed, it was impossible at this time to enter into the required feasibility study agreement. Schaefermeyer stated that the Alaska Science 164 PAGE 164 SPECIAL MEETING - MAY 6, 1991 VOLUME 26 and Technology Foundation had approved a grant for the wave barrier study, and the project Manager, Dennis Not- tingham, had committed time for laboratory space in Van- couver, BC. Nottingham had proposed that if the city came through with this contribution, the project mOdeled would be the one proposed for Resurrection Bay. Schaef- ermeyer noted that last week the city was informed that the Corps was now being allowed to proceed with its reconnaissance report, scheduled to be released in mid June. Dunham commented that the city should go forward with this funding, particularly in light of the move currently to take the Tustumena from Seward. She stated that this would indicate that the city was holding up its end of the bargain to provide better dock space in the Harbor. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. B. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING THE IMMEDIATE OPENING OF CITY CAMPGROUNDS. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-041; THE MOTION WAS SECONDED BY DUNHAM. Burgess asked if the Council could revise its ordinance so that this would not have to come before Council each year. Schaefermeyer stated that the city must play it (the opening date) by ear each year since the campgrounds could not be opened until water service could be turned on. He stated that the Council could amend the Code to allow the campgrounds to open on April 15th. Schaefermeyer requested an amendment to 'allow the opening of the campgrounds on May 7th. KRASNANSKY MOVED TO AMEND THE RESOLUTION TO ALLOW THE CAMPGROUNDS TO OPEN ON MAY 7TH; THE MOTION WAS SECONDED BY DUNHAM. THE QUESTION WAS CALLED, AND THE AMENDMENT WAS APPROVED BY UNANIMOUS VOTE. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND THE RESOLUTION WAS APPROVED, AS AMENDED, BY UNANIMOUS VOTE. I I I Iu5 PAGE 165 SPECIAL MEETING ~ MAY 6, 1991 VOLUME 26 C. Copies haYing been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT FOR SMIC DRAINAGE DITCH IMPROVEMENTS. KRASNANSKY MOVED TO APPROVE RESOLUTION NO. 91- 042; THE MOTION WAS SECONDED BY SIMUTIS. Burgess asked if he should abstain since it was possible that he would be working for MET CO on this proj ect. HILTON RULED THAT BURGESS HAD A CONFLICT OF INTEREST AND ORDERED HIM TO ABSTAIN FROM DISCUSSION OR VOTING ON THIS MOTION. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH FIVE YES VOTES AND BURGESS ABSTAINING. D. Copies haYing been made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT FOR STREET STRIPING. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-043; THE MOTION WAS SECONDED BY DUNHAM. Sieminski question why this job was not being performed in-house. Diener stated that the equipment needed to stripe the streets mechanically was very expensive, and the manual machine was too labor-intensive for the city's small crew. Dunham stated that she would like to see jobs like this remain in town so that the dollars were spent locally. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. VII. COUNCIL DISCUSSION: DUNHAM asked the administration to see if the State could get its streets on the Peninsula striped before september this year. VIII. CITIZENS' DISCUSSION: None IX. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None 166 PAGE 166 SPECIAL MEETING - MAY 6, 1991 VOLUME 26 x. ADJOURNMENT: The meeting was adjourned at 7:31 p.m. ~~~lxL. David L. Hilton, Sr. Mayor ------------------------------------------------------- PAGE 166 REGULAR MEETING - MAY 13, 1991 VOLUME 26 I. CALL TO ORDER: The May 13, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Sieminski led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Meehan, Sie- minski and Simutis (Krasnansky was excused) 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 Chaffin, Harbormaster Singleton, Fire Chief Gage, Community Develop- ment Director Martin, Police Chief Bencardino and City Clerk Murphy PROCLAMATIONS: A. Hilton read a proclamation welcoming the delegates of the Alaska Chapter, National Association of Postmasters, to Seward. I I I 167 PAGE 167 REGULAR MEETING - MAY 13, 1991 VOLUME 26 BOARD OF ADJUSTMENT HEARING: A. Inlet Fisheries Appeal of administrative decision reauirinq the installation of a sprinkler svstem in its buildinq located on its lease site at the Marine Industrial Center. Schaefermeyer noted that Inlet had requested postponement of this hearing until the first meeting in June. HILTON ORDER THIS MATTER SET ASIDE UNTIL THE JUNE 10, 1991, MEETING. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE APRIL 22 AND MAY 6, 1991, 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 BURGESS. DUNHAM MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS THE CHUGACH BANKRUPTCY AND ITS IMPACT ON CITY FINANCES; THE MOTION WAS SECONDED BY BURGESS AND CARRIED BY UNANIMOUS VOTE. Hilton noted a request to delete Resolution 91- 036 from the agenda. Sieminski asked to move Items F, G, I, Nand 0 from the Consent Calendar to New Business. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND THE AGENDA WAS APPROVED, AS AMENDED, BY UNANIMOUS VOTE. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: D.J.WHITMAN, 111 Barwell street, Seward, spoke in opposition to the Executive privilege portion of Ordinance No. 642. He urged Council to reconsider the ordinance. VIII. APPROVAL OF CONSENT CALENDAR: BURGESS MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. The following actions were taken: 168 PAGE 168 REGULAR MEETING - MAY 13, 1991 VOLUME 26 A. Resolution No. 91-044, supporting an amendment to pending legislation regarding regulation of fire arms, was approved; B. Resolution No. 91-045, supporting the construction of the Paint River FiSheries Enhancement Project and establishing the McNeil River Game Refuge, was approved; purchase agenda; C. of Resolution No. 91-046 office furniture) was (authorizing the deleted from the D. Resolution No. 91-047, authorizing Dryden & Larue to proceed with Task Order No. 2 of the contract to design the transmission line from Lawing to Ft. Raymond substation, was approved; E. Resolution No. 91-048, approving a revised prison construction budget and setting final completion project priorities, was approved; F. Perkins coie invoices totalling $32,943.55 and $28,927.81 forr legal services rendered in February and March, 1991, respectively were moved to the regular meeting agenda as New Business, Item A; G. Appointment of Pat O'Brien to the KPBjEDD was moved to the regular meeting agenda as New Business, Item E. H. Request to reschedule the second meeting in May to Tuesday, May 28, 1991, was approved; I. Change Order No. 2 to the CRW Engineering Group contract for design of downtown streets and side- walks for additional work not included in the contract (+$5,704) was moved to the regular meeting agenda as New Business, Item B; J. Change Order No.2 to the Woodrow Drilling & Construction contract for Water Well No.5, changing the completion date to May 14, 1991, was noted for information; K. Letter of commendation from DEC to the city water system operators for a model drinking water monitoring program was noted for information; L. May 7, 1991, memorandum from the Finance Department listing all purchase orders totalling between $5,000 and $10,000 which were issued by the city between January 18 and May 4, 1991, was noted for information; I I I 169 PAGE 169 REGULAR MEETING - MAY 13, 1991 VOLUME 26 M. Parks and Recreation Department Quarterly Report for the period ending February 28, 1991, was noted for information; N. City Quarterly Financial Report for the period ending March 31, 1991, was noted for information and moved to the regular meeting agenda as New Business, Item C, for explanation; O. City Investment Report was noted for information and was moved to the regular meeting agenda as New Business, Item D, for explanation; and P. SGH Financial Statement as of March 31, 1991, was noted for information. IX. PUBLIC HEARINGS: A. Fiscal Year 1992 operating and Capital Budqets. Gifford presented an overview of the operating and capital budgets. Schaefermeyer noted that the city could no longer rely on the state Legislature to meet the city's capi tal replacement needs. He stated that the motor pool and capital acquisition funds which he proposed to establish with an additional one percent sales tax and a one time property tax assessment on the drilling rig which had wintered in Resurrection Bay was not a new idea, but one which he had proposed last year. He added that last year's capital asset replacement study request- ed by the Council was available for pUblic inspection. Schaefermeyer encouraged Council and the public to review the capital replacement needs which had been identified in the study before rej ecting the proposed sales tax increase. Notice of public hearing as posted and pUb- lished as required by law was noted, and the public hearing was opened. BLAINE BARDARSON, 612 Second Avenue, noted that it cost more to do business in Seward than in Anchorage. He stated that local businesses had a responsibility to customers to provide goods and services at a fair price, and this was difficult with the current tax structure; however, the addition of another one percent sales tax would make this mission impossible. He stated that this proposal would encourage local businesses to move outside the city limits and, with coming improvements to the road to Anchorage, would increase the flow of shoppers to Anchorage. 170 PAGE 170 REGULAR MEETING - MAY 13, 1991 VOLUME 26 DOT BARDARSON, 1317 Fourth Avenue, questioned if the additional revenue gained from the one percent sales tax increase would make up for the revenue which would be lost if the tax were imposed. She stated that she worried about the cost of the city's legal services. ERIC OLSEN, 109 Lowell Canyon Road, spoke in opposition to the tax. He noted Schaefermeyer's refer- ence to "playing God" when making decisions regarding personnel cuts and added that this was something the private sector was often called on to do. NEIL CAMERON, 525 Third opposition to the sales tax. He proposal would further hinder the Seward" campaign efforts. KRIS ERCHINGER, 2015 Dora Way, spoke in favor of the sales tax increase. She stated that the city must take a long term look at meeting its capital needs since it can no longer depend on the state for sufficient funding. Erchinger stated that a sales tax was the most equitable form of taxation and would be borne by tourists and those living outside the city as well as city residents. She also noted that every dollar generated would be fed back into the economy. Erchinger reminded Council that the administration had not proposed taxes to fund extra general fund expenditures, but to help pay in advance for capital acquisitions. She stated that, had such a fund been formed several years ago, the local taxpayers would not have paid $175,000 in interest on general fund debts last year. She urged the Council to support the tax increase, stating that it was the only way to insure future financial security for the city. Avenue, spoke in stated that this merchants' "Shop DAVE CRANE, 429 Second Avenue, speaking on behalf of the Downtown Merchants Association, stated that the merchants understood the need to raise revenues and suggested that the Council explore other options rather than a sales tax increase. He added that he recognized the importance of eventually establishing motor pool and capital acquisition funds but felt that this idea might be ahead of its time. He encouraged the administration to reorganize the budget without additional taxation. Crane also stated that wage increases should not be considered when revenues were down. IRIS DARLING, 209 Fourth Avenue, stated that, as a downtown business person, she would like the Council to consider cutting expenditures rather than adding revenues. D. J. WHITMAN, 111 Barwell, stated that the city administration and Council should take a more I I I 171 PAGE 171 REGULAR MEETING - MAY 13, 1991 VOLUME 26 business-like approach to the way it does business, noting a need to cut the budget and operate more effi- ciently. WAYNE CARPENTER, 325 Fifth Avenue, Executive Director of the Chamber of Commerce, stated that the result of a poll of Chamber members showed strong opposi tion to the sales tax increase. He suggested exploring other avenues such as a mill levy increase, bed tax or a seasonal tax on certain commodities. No one else appeared in order to be heard, and the public hearing was closed. RECESS: The meeting was recessed at 8:30 p.m. and reconvened at 8:45 p.m. X. PRESENTATIONS WITH PRIOR NOTICE: (None) XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CHANGING THE OPENING DATE OF PUBLIC CAMP- GROUNDS. SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 646; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. Public hearing was scheduled for May 28, 1991. 2. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CHAPTER 11.50 OF THE CITY CODE TO ALLOW RECOVERY OF EMERGENCY RESPONSE COSTS ASSOCIATED WITH OFFENSES IN- VOLVING ALCOHOL AND DRUG ABUSE. DUNHAM MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 647; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE YES VOTES AND MEEHAN VOTING NO. Public hearing was scheduled for May 28, 1991. 172 PAGE 172 REGULAR MEETING - MAY 13, 1991 VOLUME 26 B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING CHAPTER 2.05, RECORDS, REGARDING PUBLIC ACCESS TO MUNICIPAL RECORDS. DUNHAM SECONDED THE MOTION TO RECONSIDER. BURGESS MOVED TO POSTPONE THE MOTION TO RECONSIDER UNTIL THE NEXT MEETING WHEN KRASNANSKY (MAKER OF THE MOTION TO RECONSIDER) WOULD BE PRESENT. THE CHAIR RULED THE MOTION OUT OF ORDER FOLLOWING A RULING FROM THE ATTORNEY THAT A MOTION TO RECONSIDER COULD NOT BE POSTPONED. Dunham stated that she did not mean to imply that the present administration and clerk were untrust- worthy. However, this was not true of past employees in city government. Therefore, she could not support the ordinance. Burgess stated that if the Executive Privilege Section were included, the Council should be allowed to review that particular file. Meehan stated that it was in the city's best interest to adopt this ordinance. THE QUESTION WAS CALLED, AND THE MOTION TO RECONSIDER FAILED WITH BURGESS AND DUNHAM VOTING YES AND HILTON, MEEHAN, SIEMINSKI AND SIMUTIS VOTING NO. C. Resolutions: 1. Resolution No. 91-036 Cauthorizinq the purchase of a surqical table for Seward General Hospital). Postponed from the April 22nd meeting and deleted from this agenda at the request of the hospital Chief Executive Officer. XII. UNFINISHED BUSINESS: (None) XIII. NEW BUSINESS: A. Perkins Coie Invoices for leqal services. SIEMINSKI MOVED TO APPROVE PAYMENT OF THE FEBRUARY AND MARCH INVOICES TOTALLING $32,943.55 AND $28,927.81 I I I 173 PAGE 173 REGULAR MEETING ~ MAY 13, 1991 VOLUME 26 RESPECTIVELY; THE MOTION WAS SECONDED BY SIMUTIS. Sieminski noted that the invoices totalled over $60,000. He also noted that the bills were late getting to the Council. In addition, he complained that the Council had not acted on its legal services procurement report prepared by Peat Marwick. simutis noted that a good portion of the invoices were reimbursable from insurance or other sources. Other items, such as the Chugach Alaska Corporation bankruptcy, were just a part of doing business. Dunham requested that the Council schedule a work session as soon as the budget process was complete to discuss the Peat Marwick report. Meehan pointed out that the February bill was received April lOth and was reviewed by the administra- tion prior to coming to Council. Burgess asked about the oil skimmer lease item on the invoice. Schaefermeyer noted that the city had offered lease of its oil skimmer for clean up in the Persian Gulf. Gates noted that in January, the city came close to earning approximately $600,000 for lease of the skimmer. He added that it was still possible that the city could lease the skimmer for several thousand dollars per day. Hilton stated that most of the items listed on the invoices were the result of outside forces and were not initiated by the ci ty . However, the city had incurred the debt and should pay the bills. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FIVE YES VOTES AND SIEMINSKI VOTING NO. B. CRW Change Order. SIEMINSKI MOVED TO APPROVE CHANGE ORDER NO. 2 TO THE CRW ENGINEERING CON- TRACT FOR DESIGN OF DOWNTOWN STREETS AND SIDEWALKS; THE MOTION WAS SECONDED BY BURGESS. Diener explained the projects which had been added to the original bid for a total additional cost of $5,704. THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS VOTE. C. Ouarterlv Financial Report. Gifford explained the financial report for the period ending March 31, 1991. 174 PAGE 174 REGULAR MEETING - MAY 13, 1991 VOLUME 26 D. Citv Investment Report. Gifford explained the Investment Report. E. Appointment of citv representative to the Kenai Peninsula Borouqh Economic Development District. SIEMINSKI MOVED TO APPOINT PAT O'BRIEN; DUNHAM SECONDED THE MOTION. Sieminski asked why this vacancy was not advertised. Hilton noted that openings had been adver- tised in the past; however, this appointment was to fill an unexpired term and it was in the city's interest to make an appointment quickly so as to assure continued representation of the city's business community. He stated that O'Brien would represent the city well. QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FIVE YES VOTES AND SIEMINSKI VOTING NO. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that there would be some kind of hospital funding package coming from Juneau, to include sufficient monies to commence project design and initial work on the Seward facility. In addition, some discretionary funding (approximately $8 Million each) would be available to each Senator, and the city of Seward would be allocated some portion of this for various projects. Schaefermeyer stated that a great deal of time and effort went into the budget process, wi th the administration attempting to tap all of the revenue sources allowed to the city by state constitution and state law. He noted that the city of Seward was ahead of most communities in revenues obtained from user fees. He further noted that a bed tax could not be implemented. In addition, since the city did not own and operate the berthing area where cruise ships dock, the city could not charge a head tax on passengers as Juneau and some other communities did. schaefermeyer stated that he was open to suggestions from the community and Council as to how to improve revenues. He noted that some communities have a fisheries business tax or a landing tax for fish and these were possible revenue sources for the city. However, taxable sales have steadily grown over the past ten years, and this was an indicator that the economy has grown. He complimented the Council on the foresight it had shown in developing past budgets. He added that many businesses in town would not exist if Council had not moved to diversify the city'S economy over the past few years. Finally, Schaefermeyer noted that Alaskans were last nationwide in the percentage paid for governmental services in relationship to what was received. I I I 175 PAGE 175 REGULAR MEETING - MAY 13, 1991 VOLUME 26 xv. COUNCIL DISCUSSION: SIMUTIS noted the upcoming work session on Wednesday at Noon and invited the public to attend and to give input to help solve the city's revenue problems. She concurred with Schaefermeyer's comments and stated that Council had been very responsive to looking ahead towards shrinking revenues. She further noted that the Council had a responsibility to the citizens of the community to maintain a certain level of services. She stated that while a mill rate increase was a possibility, this type of tax would affect only those residents of the city proper and would not equitably spread the cost among other users of city services. DUNHAM stated that one of the reasons the Council did not want to touch real property taxes was that the borough was going to raise its rate by 2 mills or more. She noted that the price of everything had gone up which would account for a portion of the increase in sales tax revenues. She suggested a summer sales tax. XVI. CITIZENS' DISCUSSION: CHRIS GATES, Johnston Road, reported that the RCAC would meet in Homer on May 23rd and 24th. He noted that the Board had extended an invitation to three members of Council to attend the Homer meeting at the expense of RCAC. He noted that the Alaska Railroad had started an in-house ports study, reflecting a new direc- tion from new President Bob Hatfield. He stated that Seward was the only community contacted by ARR so far. Finally, Gates noted that he was already negotiating with the Glomar Adriatic about wintering in the Bay again this season. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: (None) ADJOURNMENT: XVIII. The meeting was adjourned at 9:47 p.m., and after a short recess, the Council reconvened in Executive session to discuss the Chugach Alaska Corporation bankruptcy and its possible effect on city finances. [Ju~/ ~ ~, David L. Hilton, sr: Mayor 176 PAGE 176 REGULAR MEETING - MAY 28, 1991 VOLUME 26 I. CALL TO ORDER: The May 28, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Krasnansky led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Meehan, 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 Chaffin, Harbormaster Singleton, Librar- ian Nicolas, Police Chief Ben- cardino and City Clerk Murphy PROCLAMATIONS: A. Hilton presented a proclamation designat- ing Tuesday, May 28, 1991, as JOSIE HARMON APPRECIATION DAY to Ms. Harmon, recognizing her recent election to represent the state Business and Professional Women as the 1991 AlaSka Young Careerist. B. Hilton read a proclamation designating June 2, 1991, as ARCO JESSE OWENS GAMES DAY. C. Hilton read a proclamation designating the week of June 2, 1991, as SAFE BOATING WEEK. D. Hilton read a proclamation designating June 8, 1991, as DAY OF HOPE in Seward. IV. APPROVAL OF MINUTES: KRASNANSKY MOVED TO APPROVE THE MAY 13, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. v. APPROVAL OF REGULAR MEETING AGENDA: I I I 177 PAGE 177 REGULAR MEETING - MAY 28, 1991 VOLUME 26 Sieminski asked to move Consent Calendar Item A to the Regular Meeting Agenda as Item 12 under Resolu- tions. DUNHAM MOVED TO MEET IN EXECUTIVE SESSION FOLLOWING ADJOURNMENT TO DISCUSS A LEGAL MATTER; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: Schaefermeyer asked Council to delete Item J and to add a new Item K (Resolution No. 91-067). DUNHAM MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY, EXCEPT THAT SIMUTIS ABSTAINED ON ITEM E. The following actions were taken: A. Resolution No. 91-046, authorizing the purchase of office furniture, was moved to the Regular Meeting Agenda as item No. 12 under Resolutions; B. Resolution No. 91-049, approving the assignment of Boardwalk Lease site No. 5 from Lee Gordanier to Randy J. Becker, was approved; C. Resolution No. 91-050, approving the sublease of Boardwalk Lease Site No. 1 between Brad Snowden (Assignor) and Kenai Coastal Tours (Assignee) for the period May 1, 1991, through June 30, 1995, was approved; D. Resolution No. 91-051, setting fees for chauffeurs' licenses, was approved; E. Resolution No. 91-052, approving the assignment of lease interest in Boardwalk Site No. 7 from Ray and Leslie Simutis to First National Bank of Anchor- age for security purposes, was approved; 178 PAGE 178 REGULAR MEETING - MAY 28, 1991 VOLUME 26 F. Resolution No. 91-053, accepting a grant for the Summer Youth Employment Training Program and appropriating the funds, was approved; G. Resolution No. 91-066, approving an amendment to the state jail contract for the installation of a sprinkler system in the jail facility and appropri- ating the funds, was approved; H. change Order No. 1 to the McCool Carlson Green contract for architectural services for retro- fitting windows and refinishing exterior walls at the prison was approved; I. Claim for damages as filed by Seward Ships Chandlery in the amount of $5,604.94 was approved for payment; J. Update on Afognak Logging proposal to construct the Nash Road Boat Harbor was deleted; and K. Resolution No. 91-067, accepting a settlement offer and authorizing a contract for repair of smoke damage in the Senior Center without full utiliza- tion of city bid procedures, was approved. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed Fiscal Year 1992 operating and capital budgets was noted, and the public hearing was opened. BRAD SNOWDEN, 525 sixth Avenue, asked the Council to consider adjusting the fiscal year to begin at a less busy time. JIM PRUITT, Maple Street, addressed the syncrolift budget and the administration's claim that fixed costs totalled $344,000. He noted a similar lift in Oregon which had a maintenance program budgeted at $25,00 per month. pruitt suggested that the administra- tion's figures were inflated. DAVE CRANE, 429 Second Avenue, representing the Downtown Merchants Association, presented copies of a petition containing approximately 300 signatures address- ing concerns regarding the proposed budgets. He noted that the signers were opposed to additional sales or property taxes and requested a reduction in budgets rather than services, with cuts to come from the adminis- tration. He stated that there were still many questions which should be addressed, and he cautioned the Council I I I 179 PAGE 179 REGULAR MEETING ~ MAY 28, 1991 VOLUME 26 that approving a budget without fully understanding it was not good business practice. KIM SORIANO, Mile 7, Old Mill Subdivision, voiced her support for the Downtown Merchants Associa- tion's request to send the budget back to the administra- tion before voting to approve it. No one else 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: (None) B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CHANGING THE OPENING DATE OF PUBLIC CAMP- GROUNDS. 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. 646; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. 2. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CHAPTER 11. 50 TO ALLOW RECOVERY OF EMERGENCY RESPONSE COSTS ASSOCIATED WITH OFFENSES INVOLVING ALCOHOL AND DRUG ABUSE. Notice of public hearing as posted and pub- lished as required by law was noted, and the public hearing was opened. Hilton noted a letter from the SLAC ASAP Program Coordinator supporting the ordinance. 180 PAGE 180 REGULAR MEETING - MAY 28, 1991 VOLUME 26 Brad snowden, 525 Sixth Avenue, spoke in support of the ordinance. However, he expressed some concern regarding how the cost was determined. No one else appeared in order to be heard, and the pUblic hearing was closed. SIMUTIS MOVED TO ENACT ORDINANCE NO. 647; THE MOTION WAS SECONDED BY DUNHAM. Meehan stated that the letter writer's intent was well meaning. However, he was concerned about the number of drivers who were stopped by the pOlice for no reason, and he feared abuse of the system. He stated that if the police officer's followed the letter of the law and only stopped people for probable cause, he would have no problem with this ordinance. In response to a question from Hilton, Schaef- ermeyer stated that the intent of the ordinance was to cover the cost of arrest, court time, etc., if a person was convicted of a drug or alcohol offense. He added that under the ordinance the city could recover only up to a maximum of $1,000 per incident. Dunham stated that she hoped that the city did not intend this to be a big money maker, since many of the charges probably would not be collected. Schaefermeyer stated that the city of Fairbanks had been operating under a similar ordinance for about three years and had collected in excess of 50% of the charges billed. Schaefermeyer noted that there had been 63 DWI arrests in Seward during the period January through April, 1991, at a cost to the taxpayer of $150-200 per arrest. He noted that this figure did not include associated hospital costs or the cost of the arresting officer attending court in Kenai. Krasnansky stated that he was under the im- pression that the proceeds were going for emergency services such as SVAC. Schaefermeyer stated that SVAC could recover under this ordinance or under its own collections policy. Hilton noted that the city did incur some costs for operation of SVAC, including worker's compensation insurance, liability insurance, vehicle maintenance, etc., and it would not be unreasonable for the city to recoup some of these costs. Hilton stated that this ordinance made sense, and it was appropriate to place the cost of response on those responsible for the response. I I I 181 PAGE 181 REGULAR MEETING - MAY 28, 1991 VOLUME 26 THE QUESTION WAS CALLED, AND THE ORDINANCE WAS APPROVED WITH FIVE YES VOTES AND MEEHAN AND SIEMINSKI VOTING NO. RECESS: The meeting was recessed at 8: 30 p. m. and reconvened at 8:40 p.m. C. Resolutions: 1. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution 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, 1991. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-055; THE MOTION WAS SECONDED BY SIMUTIS. Hilton noted letter from Ewana Jackson, Little Treasures Gift Shop, opposing increased taxes. Sieminski asked the administration to address the COLA and step increase system included in the budget. Schaefermeyer stated that the budget proposed a 4.5% cost of living increase for all regular full and part time employees, noting that this would be the first COLA awarded in four years. In addition, he had proposed a 2.5% one time bonus for the ten or so employees who had reached the top of their ranges who did not receive a step increase within the last year. Schaefermeyer indicated that this would assure that each employee received a pay increase equalling the 7% increase in the cost of living for the Anchorage Metropolitan Index for the last year. Hilton noted that the budget was a spending plan and added that just because monies were budgeted, they would not necessarily be spent. He further noted that salaries for the city manager and city clerk would be decided by the Council in June. Sieminski asked about General Fund revenues. He stated that he would like to see all overtime canceled as well as the elimination of COLA and step increases. He stated that otherwise he would vote against the budget. In response to a request from Simutis, Schaef- ermeyer clarified that the proposed budget plan currently before the Council called for no increase in taxes and no reduction in services. However, he had eliminated the PAGE 182 REGULAR'MEETING - MAY 28, 1991 VOLUME 26 capital acquisition account and was proposing instead to purchase the to seven priorities on the capital request list and to fund only three vehicles in the motor pool fund. Dunham stated that she had received 23 phone calls on this budget, and the general feeling in the community seemed to be that the city needed to cut spending. She noted that the Finance Department now had eight employees and Parks & Recreation had a $500,000 budget. She stated that Little League served more children without using public funds. Dunham stated that other communities were cutting their budgets and it was time Seward did the same. She suggested a no new hire policy for the next year or two, thus reducing the size of government by attrition. She also suggested that the annual longevity bonus should be based on length of service, not on gross salary. Meehan stated that he was happy to see so many people interested in the budget this year. He noted that many of the items within the budget had been under discussion for the past year, including the one percent sales tax. He disagreed that budget had been passed each year without debate. He concurred with simutis that the budget was a guideline and a plan, adding that if revenues did not materialize, expenditures would be cut accordingly. Meehan stated that each year, the adminis- tration budgeted revenues conservatively and budgeted expenditures the other way to provide a cushion. Meehan stated that he would support the budget as presented at this meeting. Burgess stated that he had received several calls and agreed with Dunham that the city ought to look at a bare bones budget. He stated that there were a couple of things in the budget with which he was not comfortable. He stated that the Council had not ad- dressed each department in the budget, adding that the council was giving too much of an overview instead of looking at details. Simutis stated that she would be happy to discuss the budget and various departments. However, the first two work sessions covered each department and Councilmembers should have brought concerns or questions to those work sessions. She noted that overtime was down in the budget. She stated that the Finance Department may have been a staff of 4 a few years ago, but at that time, it was in a terrible state. Council could not get current financial statements, and that was no way to run a business. She stated that she was much more comfort- able with staffing at its current level. simutis stated that she honestly felt that this was as close to a bare I I I 183 PAGE 183 REGULAR MEETING - MAY 28, 1991 VOLUME 26 bones budget as she would be comfortable with. that in order to satisfy everyone's concerns, not object to another work session. She added she would Schaefermeyer noted that he had requested policy direction from the Council, but none had been forthcoming. He stated that with the proper policy direction, he could and would cut the budget. However, policy was the purview of the council, not the ad- ministration. He asked where changes were to be made. Dunham stated that it was probably too late to do anything about this budget. She agreed with the city manager that the Council had not given him any direction. She stated that it was time to begin thinking about changes to be made in next year's budget. Meehan stated that the Council did give in- structions regarding the one percent sales tax increase and the guidelines for choosing capital replacement items. Burgess noted that in his experience, if it was in the budget, it would be spent. He stated that the administration could always come back and ask for more money if it were needed. SIEMINSKI MOVED TO POSTPONE ACTION ON THE RESOLUTION UNTIL JUNE 10TH; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITH FIVE YES VOTES AND MEEHAN AND HILTON VOTING NO. Simutis stated that she would like to have seen the budget passed tonight; however, she challenged the Council and community to come forward with concrete specific examples of where cuts should be. Hil ton noted that the city manager had present- ed the Council with a budget which was reasonable and proper. Therefore, Council should have in mind recommen- dations to the manager as to where cuts could be made. Krasnansky suggested charging for parking in the Small Boat Harbor. Burgess recommended cutting the $4,000 SLAC grant and the port marketing budget. Dunham suggested reviewing the study regarding attorneys fees and stated that she would like a work session on that after the budget was approved. She also suggested that 2.5% increase for "maxed out" employees be cut. Meehan agreed with Dunham on the 2.5% for maxed out employees, but opposed the proposed wage and classification study. He suggested that the Council take a close look at contracted services, travel, advertising and training. 184 PAGE 184 REGULAR MEETING - MAY 28, 1991 VOLUME 26 Hilton also requested a deletion of the 2.5% increase for "maxed out" employees. He agreed with Meehan that travel should be reviewed. A BUDGET WORK SESSION WAS SCHEDULED FOR SATURDAY, JUNE 1, BEGINNING AT 1:00 P.M. 2 . Copies having been made available to the public, Hilton noted by title only a proposed resol- ution 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, 1991. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-056; THE MOTION WAS SECONDED BY DUNHAM. schaefermeyer noted that this budget did not include rate or tariff increases or increases in person- nel or programs as presented. Burgess stated that the port marketing budget should be looked at more closely. Sieminski asked if all budgets could be postponed until the next meeting. Simutis stated that she felt the title of the position (port marketing director) might be misleading. She noted that much of his job involved development. She asked who potential customers/lessees of the city would deal with if the Port Marketing Director was not there. She also asked if Burgess wanted to eliminate the position or make it part time. Burgess stated that he didn't know at this time; however, this particular department should be in the general fund, not the harbor budget. Meehan stated that this was one area - since he was involved in the Port Development Committee - in which he felt well versed. He noted that Gates was involved in many different projects, and if he was successful with one of ten of his proj ects, he was worth the department's cost to the city. He added that this was probably the easiest position in the city to justify. Dunham asked Gates to make more reports at Council meetings, including a report on Vern Chase and how that relationship was working. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH SIX YES VOTES AND BURGESS VOTING NO. I I I 185 PAGE 185 REGULAR MEETING '- MAY 28, 1991 VOLUME 26 3. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE SMIC SPECIAL REVENUE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. DUNHAM MOVED TO APPROVE RESOLUTION NO. 91-057; THE MOTION WAS SECONDED BY KRASNANSKY. Meehan stated that the Port Advisory Committee had reviewed this budget and recommended passage. Schaefermeyer noted that the SMIC budget included a recommended tariff increase, and without a revenue adjustment, expenses would not be met for another year. He stated that the fixed expenses would have to be covered by the city no matter what the tariff turned out to be. He proposed bringing the tariff increase to Council on June loth for public hearing and a vote on its approval. Dunham stated that the administration was still suggesting a huge increase in a short period of time, and she feared that the city would price the business out of the market. She stated that for this reason she would vote against the resolution. Hilton stated that either fees should be increased, utilization should be increased, taxes would be raised, or the facility closed down. Schaefermeyer noted that the proposed expenses included all fixed costs amount to be used to begin paying back the for past subsidies. $344,000 in plus a small general fund Meehan stated that it was asking too much to expect to continue to subsidize this facility out of the general fund. Dunham stated that the 250 ton lift had resulted in less business for the syncrolift. She stated that she wasn't sure we were paying off the 250 ton lift with the fees we were collecting from its operation. SIEMINSKI MOVED TO POSTPONE ACTION ON THE RESOLUTION UNTIL JUNE 10TH; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED WITH FOUR YES VOTES AND HILTON, MEEHAN AND SIMUTIS VOTING NO. 186 PAGE 186 REGULAR MEETING - MAY 28, 1991 VOLUME 26 The meeting was recessed at 10: 25 p. m. and reconvened at 10:35 p.m. 4. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: RECESS: 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, 1991. DUNHAM MOVED TO APPROVE RESOLUTION NO. 91-058; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUS- LY. 5. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution 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, 1991. DUNHAM MOVED TO APPROVE RESOLUTION NO. 91-059; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUS- LY. 6. copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE GRAIN TERMINAL ENTERPRISE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. DUNHAM MOVED TO APPROVE RESOLUTION NO. 91-060; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUS- LY. 7. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE MOTOR POOL INTERNAL SERVICE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. I I I 187 PAGE 187 REGULAR MEETING ~ MAY 28, 1991 VOLUME 26 MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-061; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH SIX YES VOTES AND KRASNANSKY VOTING NO. 8. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE D. A. R. E . SPECIAL REVENUE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-062; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUS- LY. 9. Copies having been made available to the pUblic, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE ANNUAL CAPITAL BUDGET PLAN FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-063; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUS- LY. 10. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE SEWARD GENERAL HOSPITAL ENTER- PRISE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. Hilton passed the gavel to Vice Mayor Dunham. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-064; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FIVE YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. (Hi! ton noted that he and Krasnansky were employees of Seward General Hospital.) 11. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: 188 PAGE 188 REGULAR MEETING - MAY 28, 1991 VOLUME 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DESIG- NATING $1,500,000 OF THE GENERAL FUND BALANCE FOR WORKING CAPITAL NEEDS. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-065; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS- LY. 12. Copies having been distributed to the Council and made available to the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING THE PURCHASE OF OFFICE FURNI- TURE. SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 91- 046; THE MOTION WAS SECONDED BY DUNHAM. Sieminski asked for an explanation of the revenue used to fund the purchase of the office furni- ture. Schaefermeyer stated that the bulk of the money would come from the Finance Department budget, with the balance from the Municipal Building Department and from Investment Income. Meehan stated that he would like to see the employees have a more relaxed and productive work environment. He recommended approval. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: None XIV. CITY MANAGER REPORTS: None XV. COUNCIL DISCUSSION: Krasnansky asked the administration to present future budgets to the Council sooner than this year. Dunham expressed concern over the use of a private driveway into Forest Acres which was being used by military personnel and students. Schaefermeyer stated that he was not sure he had legal authority to block the driveway. Hilton suggested that the city move the driveway for the property owner if he consented. Schaef- ermeyer stated he would investigate this possibility. XVI. CITIZENS' DISCUSSION: None 189 PAGE 189 REGULAR MEETING - MAY 28, 1991 VOLUME 26 I XVII . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT: The meeting was adjourned at 10:55 p.m., and after a short recess, the Council reconvened in Executive Session to discuss a legal matter. _,C" O~,.. '. ,~", '.~ v,:~ Ci.!;,~ C .~k ~ .,' Se~lsea'i1 k . ,I. . ~'!m> : { ....:'(,A..- ~~\."",,:,>- /,~ ,(' '. ,~-t.~,...::'."=:",,,,-------------------------------------------- ,~;fF-'A8f'~\:,:?/1 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 ..:>/'/?),';---rr...-n'l' I. CALL TO ORDER: Q~J)r ~~. David L. Hilton, Sr. Mayor I The June 10, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Meehan led the pledge of al- legiance to the flag. III. ROLL CALL: I Present were: Mayor Hilton and Councilmembers Burgess, Krasnansky, Meehan, Sieminski and Simutis (Dunham was excused) 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 Chaffin, Harbormaster Singleton, Librar- ian Nicolas, Community Develop- ment Director Martin, Building Inspector Ferguson, Police Chief Bencardino and City Clerk Murphy 190 PAGE 190 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 BOARD OF ADJUSTMENT HEARING: A. Inlet Salmon appeal of reauirement to provide a fire suppression svstem in its structure located on leased propertv at SMIC. Schaefermeyer noted that this matter was postponed in May at the request of Inlet Fisheries. Since that time, the city had received no further information from Inlet. Schaefer- meyer stated that Fire Chief Gage had talked to Inlet owner Vince Goddard this afternoon and had been told that Inlet still objected to the city's requirement that the sprinkler system be operable 365 days per year. Schaef- ermeyer stated that he recommended that Council hear the matter and uphold the Fire Chief's recommendation of April 30th. meeting. No representative from Inlet was present at Meehan asked if he should abstain since he was employed by Inlet's competitor, Seward Fisheries. HILTON RULED THAT THERE WAS NO CONFLICT OF INTEREST SINCE MEEHAN WOULD NOT BE AFFECTED FINANCIALLY BY A DECISION OF THE COUNCIL. SIMUTIS MOVED TO UPHOLD THE RECOMMENDATION OF CHIEF GAGE THAT INLET'S FIRE SPRINKLER SYSTEM BE OPERABLE FOR 365 DAYS PER YEAR; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS CONSENT. IV. APPROVAL OF MINUTES: KRASNANSKY MOVED TO APPROVE THE MAY 28, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: Hilton noted the administration's request to delete Resolution No. 91-054 and Items A and B under New Business. He stated that these items would be brought back to Council on June 24, 1991. Burgess noted a clerical error in Item G, Consent Calendar. Siealnski asked to move Resolution No. 91-072 (Consent Calendar, Item C) to the regular meeting agenda. MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: I I - 191 PAGE 191 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None APPROVAL OF CONSENT CALENDAR: VIII. KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-070, approving a TORA for wave barrier testing, was approved; B. Resolution No. 91-071, approving a pro- fessional services agreement with PN&D for modeling and testing of a permeable wave barrier, was approved; C. Resolution No. 91-072, approving a profes- sional services agreement with AMOS Computer Consultants, was moved to the Regular Meeting Agenda; D. Resolution No. 91-073, approving a contract amendment with Summit paving for overlaying Washington and Adams Streets and repairing the pavement at Fourth and Railway and appropriating funds, was approved; E. ABCB notification of request to transfer TONY'S BAR, TONY'S LIQUOR STORE and PIONEER BAR liquor licenses from IVAN BANIC to STIPAN SAM BANIC was noted, and the Clerk was instructed to issue a letter of non- objection; F. Chamber of Commerce Request for Fireworks Permit was approved; G. Summi t Paving Change Orders were approved as follows: No. 1 - Installation of stainless steel load centers (No Change in contract price) No. 2 - Revise drainage structure Sl (+$235) No. 3 - Relocate center line of 5th Avenue (+468.75) No. 4 - Substitute concrete transition for specified A.C. transition along Type C and B sidewalks (+$6,280, estimate) No. 5 Furnish and supply non-woven polypropolene fabric designed for overlay application (+$205) No.6 - Replace existing sidewalk and construct curb return (+NTE $5,000) 192 PAGE 192 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 H. Construction and Rigging Change Order No. 1 - Furnish and install 17 protective caps on bridge rail posts (+$2,837) - was approved; and 1. Application for permit for games of chance and skill as filed by ALASKA OUTDOOR COUNCIL, INC., was noted for information. IX. PUBLIC HEARINGS: A. Shiplift tariff amendments. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. DON WHITMAN, 111 Barwell street, representing Seward Ships Chandlery, objected to the administration's analogy comparing Seward Ship's Chandlery operations with those of a private boat yard. He stated that he did not feel this was the case since other public yards which leased to private entities had kept their tariffs under $10 per foot. Whitman stated that there was no reason that the Seward ship yard could not be operated as competitively as other public yards. No one else appeared in order to be heard, and the public hearing was closed. B. General terminal tariff amendments. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. C. PaYment aqreement with Chuqach Forest Products. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. BUCK MEHL, Anchorage, president of Chugach Forest Products, thanked the city for its cooperation before, during and since construction of the sawmill. He reviewed the history of the mill's development and said that it was rapidly moving toward profitability. Mehl stated that part of this march toward profitability included a close examination of operational costs. This examination had revealed that wharfage rates in Seward were 6 to 7 times higher than rates elsewhere in South- east and Washington State. Mehl stated that the proposal before Council tonight was a step in the right direction. No one else appeared in order to be heard, and the public hearing was closed. I I 193 PAGE 193 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 X. PRESENTATIONS WITH PRIOR NOTICE: None ORDINANCES AND RESOLUTIONS: XI. A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: None C. Resolutions: 1. Resolution No. 91-054, amending the shiplift tariff, was DELETED from the agenda. 2. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE GENERAL FUND OPERATING BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. Murphy noted that action had been postponed from the May 28th meeting, and a motion to approve Resolution No. 91-055 was on the floor. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH KRASNANSKY AND SIEMINSKI VOTING NO AND BURGESS, MEEHAN, SIMUTIS AND HILTON VOTING YES. 3. copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE SMIC SPECIAL REVENUE FUND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1991. Murphy noted that action had been postponed from the May 28th meeting, and a motion to approve Resolution No. 91-057 was on the floor. Hilton asked if it were appropriate to adopt this budget before adopting a new tariff. Schaefermeyer stated that the expenses would not change even if revenues did. He added that if revenues from operations did not meet expenses, the administration would be coming back to Council at a later date to ask for a fund transfer to make up the difference. 194. PAGE 194 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH KRASNANSKY AND SIEMINSKI VOTING NO AND BURGESS, HILTON, MEEHAN AND SIMUTIS VOTING YES. 4. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE GENERAL TERMINAL TARIFF. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-068; THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer noted that this item was covered in the memorandum accompanying Resolution No. 91-069. He stated that this tariff amendment would give the city the authority to enter into the payment agreement with Chugach Forest Products - the next item on the agenda. Meehan asked if the city would be recovering all costs associated with the North Dock under the new agreement. Schaefermeyer stated that he believed this agreement would allow the city to recover debt service and most of the maintenance costs, especially in light of the increased traffic anticipated by CFP. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. 5. copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A PAYMENT AGREEMENT WITH CHUGACH FOREST PRODUCTS. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 91-069; THE MOTION WAS SECONDED BY KRASNANSKY AND WAS APPROVED BY UNANIMOUS VOTE. 6. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AP- PROVING A PROFESSIONAL SERVICES AGREEMENT WITH AMOS COMPUTER CON- SULTANTS. I I 195 PAGE 195 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 91- 072; THE MOTION WAS SECONDED BY HILTON. Sieminski stated that he objected to a two year agreement. Schaefermeyer noted that this was a one year agreement which could be extended for two additional years with the approval of the Council. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. Request for Council authorization to proceed with lease neqotiations with Garrett Schnell. THIS ITEM WAS DELETED AT THE REQUEST OF THE ADMINISTRA- TION. B. Request for Council authorization to discontinue lease neqotiations with Robert Ferauson. THIS ITEM WAS DELETED AT THE REQUEST OF THE ADMINISTRA- TION. XIV. CITY MANAGER REPORTS: Schaefermeyer noted that the FY 1992 state operating and capital budgets were under review by the Governor's office. He stated that the city was continu- ing its contact with Governor's office regarding monies earmarked for Seward. Schaefermeyer noted the reapportionment announcement made last Friday in which the Board recom- mended including Seward in a district with Soldotna, Cooper Landing and Sterling. He stated that following the Governor's official announcement sometime this month, the public would have 90 days to comment. The comment period would be followed by a review by the U. S. Department of Justice. schaefermeyer noted the likeli- hood that the Governor's reapportionment plan would be challenged in court. He encouraged the public and the Council to review the plan when it was made available and to be prepared to comment on it. Schaefermeyer empha- sized the effect this new plan would have on Seward and the entire state since it would probably result in a great change or turnover in the legislature. Schaefermeyer extended his thanks to Mr. Mehl and Mr. Hendrickson for their courtesy and cooperation in negotiating the payment agreement approved earlier in the meeting. 196 PAGE 196 REGULAR' MEETING - JUNE 10, 1991 VOLUME 26 XV. COUNCIL DISCUSSION: SIMUTIS stated that it would be nice to receive Council packets earlier than late Friday so that Council and the public could have sufficient time to contact the appropriate people when they had questions about a particular agenda item. She stated that the Clerk had indicated that, if directed to do so, she could produce packets a day early. COUNCIL INSTRUCTED THE CITY CLERK TO HAVE COUNCIL PACKETS DELIVERED NO LATER THAN THURSDAY AFTERNOON PRIOR TO THE MONDAY MEETING. KRASNANSKY noted his suggestion at last week's work session that the city establish a police reserve. He asked the administration to study this possibility, reviewing overtime costs for the last five years as well as the cost for workers compensation and other insurance costs associated with a police reserve. He also request- ed a work session to discuss the Peat Marwick legal ser- vices study. THE WORK SESSION WAS SCHEDULED FOR THURS- DAY, JUNE 20, 1991, BEGINNING AT 7:00 P.M. BURGESS complimented the Parks and Recreation staff on its handling of a situation at the waterfront campground over the weekend. MEEHAN noted that the Chairman of the Board of Icicle Seafoods retired last week. Herman Leirer had attended and made the presentation of a Bardarson Print on behalf of the city. SIMUTIS reminded Council that annual evalua- tions for the Clerk and Manager were due so that meetings could be scheduled to present the evaluations to the Council's employees. XVI. CITIZENS' DISCUSSION: JIM WOERN, 413 Third Avenue, representing Seward Downtown Merchants Association, commended the Mayor and Council for holding the line on taxes and continuing services at last year's level. KURT WILLIAMS, Inlet Salmon, addressed the appeal heard earlier in the meeting. He stated that Inlet was continuing its negotiations with Chief Gage on the type of system and whether it was necessary for it to remain operable all year. He also noted that the building would be completed and the system would be installed following the close of the black cod season. In addition, Inlet would be paving the area around the building and complet- ing dock at that time. 187 PAGE 197 REGULAR MEETING - JUNE 10, 1991 VOLUME 26 I XVII . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None XVIII. ADJOURNMENT: The meeting was adjourned at 8:15 p.m. . D~p~j)r li1!tt:::, ~ ' David L. Hilton, Sr. Mayor "';l - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - REGULAR MEETING - JUNE 24, 1991 VOLUME 26 1. CALL TO ORDER: The June 24, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. I II. OPENING CEREMONY: Councilmember Simutis allegiance to the flag. led the pledge of III. ROLL CALL: Present were: Mayor Hil ton and Councilmembers Burgess, Dunham, Krasnansky, Sieminski and Simutis (Meehan was excused) I IV. Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Community Development Director Martin, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Chaffin, Harbormaster Single- ton, Librarian Nicolas, Police Chief Bencardino and City Clerk Murphy APPROVAL OF MINUTES: 198 PAGE 198 REGULAR'MEETING - JUNE 24, 1991 VOLUME 26 SIMUTIS MOVED TO APPROVE THE JUNE 10, 1991, 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 noted the addition of Resolution No. 91-080, concerning paving of Dairy Hill & Government Roads. THE QUESTION WAS CALLED, AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS VOTE. 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: PAUL BRINKE, addressed the Council regarding his claim for damages. (See New Business, Item B.) He noted that the ci ty was at fault for mismarking the electrical meters and filed supporting documentation and a prorated list of lost food items with the Mayor. JIM PRUITT, Maple Street, Forest Acres, presented a proposal to the Council to fund maintenance of the shiplift. He noted that his lease required him to cover the cost of operation of the shiplift, and he was willing to do this under his maintenance proposal. He stated that the Council should define operational costs before enacting a tariff. In response to a question from Burgess, Pruitt stated that if there were multiple users of the facility, all operators would share the cost of operation of the facility. pruitt asked the Council to table action on the tariff until a work session could be held. DON WHITMAN, representing Seward Ships Chandle- ry, objected to not having a public hearing on the proposed change to the tariff. He noted that he had performed a review of the cost of operation and had come up with an average cost of $11/foot (lift charge) to operate the shiplift. He noted that SSC's proposal had been delivered to the Council at the request of Chris I I I 199 PAGE 199 REGULAR MEETING - JUNE 24, 1991 VOLUME 26 Gates. He stated that his sole interest was in keeping the company going and people employed. VIII. APPROVAL OF CONSENT CALENDAR: Krasnansky asked to move Item D (Resolution No. 91-078) to the regular meeting agenda as Resolutions, Item No.4. Sieminski asked to move Item B (Resolution No. 91-075) to the regular meeting agenda as Resolutions, Item No.5. BURGESS MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 91-074, accepting an ALPAR grant and appropriating the funds for litter control, was approved; B. amendment to was moved to Resolution No. 91-075, approving an the Kent Dawson Company lobbying contract, the regular meeting agenda; C. Resolution No. 91-077, establishing a capital project fund to provide handicap access to the Seward community Library, was approved; D. Resolution No. 91-078, endorsing an application to the Alaska State Building Authority for a section 8 Housing Program in Seward, was moved to the regular meeting agenda; E. Resolution No. 91-079, approving Task Order No.3 to the Dryden & Larue, Inc., contract for design of the Lawing to Seward Transmission Line, was approved; F. Perkins Coie Invoice for legal services in the matter of city v. Seward Ships Chandlery requesting payment of the city's share of services totalling $1,879.73, was approved for payment; G. Perkins Coie Invoice for legal services rendered in April 1991 totalling $24,736.04, was approved for payment; H. as follows: Summit paving Change Orders were approved No. 8 - Relocating one light pole base (T&M Estimate +$500) 200 PAGE 200 REGULAR'MEETING - JUNE 24, 1991 VOLUME 26 No.9 - Alterations to east sidewalks between Jefferson and Madison (No change in price or com- pletion date); and 1. Change Order No.3 to the Woodrow Drilling contract for Water Well No.5, increasing the contract by $3,365.00, was approved. IX. PUBLIC HEARINGS: A. Ferrv Lease. Notice of public hearing as posted and published as required by law regarding the proposed disposal by lease of the "Old Depot" building and preferential use of the Fourth Avenue Dock by the Alaska Marine Highway system was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. x. PRESENTATIONS WITH PRIOR NOTICE: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE SEWARD CITY CODE, TITLE 15, PLANNING AND LAND USE REGULATIONS. SIMUTIS MOVED TO INTRODUCE ORDINANCE NO. 649; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUS- LY. 2. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE REGULAR MEETING DATE OF THE COMMUNITY HOSPITAL BOARD. DUNHAM MOVED TO INTRODUCE ORDINANCE NO. 650; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UN- ANIMOUSLY. 3. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: I I I 201 ~ ~ PAGE 201 REGULAR MEETING - JUNE 24, 1991 VOLUME 26 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DELETING SEWARD CITY CODE ~ 2.05.030 F., EXECUTIVE PRIVILEGE. . . ~ . ", KRASNANSKY MOVED TO INTRODUCE ORDINANCE NO. 651; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. 4. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CLARIFY- ING EXECUTIVE PRIVILEGE AND AMENDING ~ 2.05.030 F. OF THE SEWARD CITY CODE. . BURGESS MOVED TO INTRODUCE ORDINANCE NO. 652; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UN- ANIMOUSLY. " '~ 5. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: " AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVID- ING FOR COUNCIL REPRESENTATION ON THE COMMUNITY HOSPITAL BOARD. , SIEMINSKI MOVED TO INTRODUCE ORDINANCE NO. 653; THE MOTION WAS SECONDED BY BURGESS. ., .. BURGESS MOVED TO AMEND BY ADDING A PROVISION THAT ALL COUNCIL MEMBERS MAY ATTEND EXECUTIVE SESSIONS OF THE HOSPITAL BOARD EXCEPT COUNCIumMBERS EMPLOYED BY THE HOSPITAL, AND REQUIRING THAT THE BOARD FURNISH COUNCILME- MBERS ALL MINUTES OF EXECUTIVE SESSIONS; THE MOTION WAS SECONDED BY SIEMINSKI. . ~b' .... Burgess stated that since the Council was responsible for appointing the board, it (the Council) should be well informed about actions of the Board. Is simutis stated that she appreciated the senti- ment behind the proposed amendment, but the perception which the amendment would deliver was probably not what Burgess intended. She noted that the Council representa- tive to the Board was Obligated to keep Council informed. She added that the Board does not want to see, nor should it be put in the position to have, seven councilmembers sit in on Executive Sessions. r 202 , ~ ( ~ , I r; I r . i . ~' r t I. PAGE 202 REGULAR MEETING - JUNE 24, 1991 VOLUME 26 Burgess stated that he understood concerns, but as the ultimate deep pocket for Councilmembers should be able to attend sessions. Simutis's hospital, executive THE QUESTION WAS CALLED, AND THE AMENDMENT FAILED WITH BURGESS, DUNHAM AND SIEMINSKI VOTING YES; SIMUTIS VOTING NO; AND HILTON AND KRASNANSKY ABSTAINING. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND ORDINANCE NO. 653 WAS INTRODUCED WITH FOUR YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. B. Ordinances for Public Hearing & Enact- ment: None C. Resolutions: 1. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AMENDMENT NO. 2 TO THE SEWARD MARINE INDUSTRIAL CENTER SHIPLIFT SYSTEM TARIFF NO.1. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-054; THE MOTION WAS SECONDED BY DUNHAM. Burgess asked if there was any reason this could not be postponed. He asked if the Port Committee had reviewed the proposed changes. Burgess stated that he would be open to postponing the resolution unless there was a reason to do something right away. simutis stated that Trade Board also wanted a chance to review the revised tariff. Schaefermeyer stated that he would like to see the tariff dealt with tonight: however, if it was the wiSh of the council, adoption could be postponed until August. Simutis suggested a joint work session with Council, Trade Board and Port Committee. SIMUTIS MOVED TO POSTPONE ACTION ON THE RESOLUTION UNTIL JULY 22, 1991; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. A JOINT WORK SESSION WAS SCHEDULED FOR 07/11/91 AT 7 P.M. -... I I I 203 PAGE 203 REGULAR MEETING ~ JUNE 24, 1991 VOLUME 26 2. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution 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. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-076; THE MOTION WAS SECONDED BY KRASNANSKY. Sieminski asked why the city did not charge for freight going across the dock (wharfage) for item carried on the Tustumena. Schaefermeyer noted that this was an inducement to the ferry to continue to serve Seward. Dunham noted that the city also subsidized the prison, AVTEC, and other entities. She noted that with the recent move afoot to remove the ferry from seward, this was not the time to make any changes. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. 3. Copies having been made available to the public and distributed to the Council, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING IMPROVEMENTS TO GOVERNMENT ROAD AND DAIRY HILL AND APPROPRIAT- ING FUNDS. BURGESS MOVED TO APPROVE RESOWTION NO. 91-080; THE MOTION WAS SECONDED BY SIMUTIS; Schaefermeyer noted that the Council had previously included paving of Dairy Hill Road and Dairy Hill Lane as a part of the project, provided that funds were available. He stated that this resolution sought Council approval to go forward with the paving using funds from interest earned on the bond monies and some other project savings. He added that there was a possibility of receiving from the state some federally subsidized loan monies to complete the sewer system in Dairy Hill. Therefore, it made sense to leave a small section unpaved at this point until the sewer project could be completed. In lieu of paving this area current- ly not served by sewer service, he suggest that $25,000 204 PAGE 204 REGULAR'MEETING - JUNE 24, 1991 VOLUME 26 be set aside to complete this paving once the sewer was in place. THE QUESTION WAS CALLED, AND THE RESOLUTION CARRIED BY UNANIMOUS VOTE. 4. Copies having been made available for the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ENDORS- ING AN APPLICATION TO THE ALASKA STATE BUILDING AUTHORITY FOR A SEC- TION 8 HOUSING PROGRAM IN SEWARD. KRASNANSKY MOVED TO INTRODUCE RESOLUTION NO. 91-078; THE MOTION WAS SECONDED BY DUNHAM. Krasnansky asked O'Brien to explain why he favored this low income housing plan when he had opposed other low income housing projects in the past. PAT O'BRIEN, 209 Ravina, stated that the Seward Property Owners Association was opposed to large low income housing projects. However, this program would allow low income families to choose where they wished to live through a voucher system. Therefore, they would use existing housing units rather than add new subsidized units. He stated that this was a vehicle to help solve the problems of entry level prison employees and others in getting into an apartment or a house. O'Brien added that this was not designed to put money into landlords' pockets, but to put people in houses. Dunham stated that she had always favored low cost housing. She stated that this appeared to be better than other programs since it would put needy families throughout the community rather than in just one spot. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. 5. Copies having been made available to the public, Hilton 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 KENT DAWSON LOBBYING CONTRACT. SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 91- 075; THE MOTION WAS SECONDED BY SIMUTIS. - I I I 205 PAGE 205 REGULAR MEETING ~ JUNE 24, 1991 VOLUME 26 In response to a question from sieminski, Schaefermeyer noted that there would be no increase in lobbying fees. He stated that this amendment would merely extend Dawson's contract for one year. He noted that the city would have an even greater need for Dawson's services now that state money was so tight. Schaefermeyer stated that Dawson was working harder today than a few years ago because of the limited dollars, and added that it was very difficult to get large projects funded without the services and assistance of someone available at all times during the legislative session. Hilton concurred. He stated that, considering what the city was up against in Juneau, now was not the time to slack off on lobbying efforts. He said that Dawson had been very effective for the city in the past. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE. Recess: The meeting was recessed at 8: 40 p. m. and reconvened at 8:50 p.m. XII. UNFINISHED BUSINESS: None NEW BUSINESS: XIII. A. Resiqnation of Louis Nauman from Communitv Hospital Board. Hilton noted the resignation of Louis Nauman from the Community Hospital Board and passed the gavel to Vice Mayor Dunham for appointment of a new member of the Board. [HILTON AND KRASNANSKY, EMPLOYEES OF SEWARD GENERAL HOSPITAL, NOTED THEIR CONFLICTS OF INTEREST WITH REGARDS TO THIS AGENDA ITEM.) Dunham stated that it was with regret that the Council accepted Nauman's resignation. She noted two applications on file from last Fall, and stated that she did not feel comfortable filling the vacancy on her own. Burgess stated that he would like to make the Council representative a full member of the board with voting privileges. Arvidson stated that this would require a change to the ordinance. Dunham stated that she felt this was a good idea since it would give the Council representative more credence and more incentive to attend the meetings. Burgess asked if the Council representative could report on executive sessions of the community Hospital Board. Arvidson stated that since the Board was an arm of the council, this would be allowed. 206 PAGE 206 REGULAR MEETING - JUNE 24, 1991 VOLUME 26 The Clerk was instructed to prepare a substi- tute ordinance (For Ordinance No. 653) for consideration at the next meeting and to schedule the appointment of a new Board member for next the meeting. B. Claim for damaqes as filed bv Paul Brinke. BURGESS MOVED TO APPROVE PAYMENT OF A CLAIM FOR DAMAGES AS FILED BY PAUL BRINKE; THE MOTION WAS SECONDED BY KRASNANSKY. Burgess stated that he would like to postpone action on this item until the next meeting to give the owner and Brinke a chance to work out an agreement. Burgess said that he was reluctant to vote on this matter until more information was available to the Council. Hilton concurred, stating he would like further clarifi- cation on this issue. Schaefermeyer stated that the administration was prepared to walk Council through the events leading to the city's actions at this time so that the matter could be resolved tonight. He stated that this event had occurred because of an error on the part of the landlord, and that was where responsibility lay. Sieminski asked for further explanation. Electrical Engineer Dave Calvert explained that the meters had been mismarked upon installation following the owner's instructions. He stated that Brinke rented Space B6 from Short stop Trailer Park. However, because of the mismarked meters, he was actually hooked to the meter for Space B7. Diane Rivers had rented Space No. B7 but was being billed for Space B8. When Rivers asked to have her power discontinued, the Lineman disconnected the meter marked "B7" which actually was hooked up to Brinke's trailer. Darlene Morgan, representing the trailer park's owner, stated that she had supplied a diagram for service to the city prior to this occurrence. She stated that the city was also aware of the location of Ms. Rivers' trailer and should have known which meter to disconnect. PAUL BRINKE stated that the city was correct about the mismarking. However, since a city employee mismarked the meters, the city should be held responsi- ble. Schaefermeyer stated that he did not know if the landlord would be willing to bear a portion of this claim. He suggested that the city pay one half of the claim and leave the other one-half for the landlord to pay. Hilton concurred. Morgan stated that owners would not object to paying one-half of the bill. I I I 207 PAGE 207 REGULAR MEETING ~ JUNE 24, 1991 VOLUME 26 HILTON MOVED AMEND THE MOTION TO STIPULATE THAT THE CITY WOULD PAY ONE-HALF THE AMOUNT CLAIMED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED, AND THE MAIN MOTION WAS APPROVED AS AMENDED BY UNANIMOUS VOTE. C. Reauest for Council authorization to proceed with lease neqotiations with Garrett Schnell. SIMUTIS MOVED TO INSTRUCT THE ADMINISTRATION TO PROCEED WITH LEASE NEGOTIATIONS WITH GARRETT SCHNELL; THE MOTION WAS SECONDED BY KRASNANSKY. Sieminski stated that he would like to see a requirement that the leased property be fenced, adding that this provision should be in every lease. Arvidson stated that this provision had been included in the last few lease documents prepared for the city. Burgess noted that he had talked with Schnell on the break. He suggested that city also discuss the possibility of including the west rail as a possible lease area. Hil ton stated that it was not the Council's place to negotiate a lease in a public forum. THE QUESTION WAS CALLED, AND MOTION CARRIED UN- ANIMOUSLY. D. Krasnansky request for preparation of an ordinance to place two propositions before the voters. Krasnansky stated that he had not expected this to show up on the agenda tonight. He stated that some of the electrical utility customers residing outside the city limits felt that they were not dealt with equitably and added that they should have some voice in how the utility was run. Hilton stated that the clerk had placed this item on the agenda because of her concern over incurring attorney's fees to research questions raised by Krasnan- sky' request. Hilton added that Chugach Electric Association had shown no interest in the past in paying book value for the city's utility. He also noted that if the city found itself under a voter mandate to sell utility, it would not be in the best possible bargaining position. Dunham stated that Seward was the only city in the area with auxiliary power to keep the lights on when Chugach was not on line. She noted that this would probably would not be provided by Chugach Electric if it 208 PAGE 208 REGULAR MEETING - JUNE 24, 1991 VOLUME 26 owned the utility. She stated that she was willing to 1 isten to arguments favoring disposal of the util i ty, but she was not enthused with the prospect of negotiating a sale with Chugach. Burgess concurred with Dunham. He stated that in 15 years, the longest he could remember being without power was 11 hours. H said that he would hate to lose control of the city's generator system. Dunham noted that during Johnny Johnson's administration, the city was able to back-feed power to Moose Pass during a particu- larly long outage. Krasnansky stated that he would like to schedule a public hearing after the holidays to ask customers if they were interested in forming a coopera- tive. Hilton stated that most people did not know what forming a cooperative would do for the consumer. Arvidson stated that his firm represented Puget Power and Light and 15 to 20 REA Coops. He stated that the ques- tion that needed to be ask was whether the city could in fact form a cooperative and at what cost. He added that the issue of involving those utility customers outside the city limits could be addressed by opening and expanding lines of communication and providing more information to the utility's customers. In response to a question from Sieminski, Arvidson stated that at one time coops saved consumers money, but he did not know if this was still true. Arvidson stated that he would research this issue and would check with the city manager if it appeared it would cost a great deal to complete the research project. XIV. CITY MANAGER REPORTS: schaefermeyer stated that Department of Commerce Commissioner Olds was scheduled to spend most of the day in the city on Tuesday. He noted that the public was invited to attend Tuesday's Rotary meeting to hear his presentation. Following the presentation, he and Gates planned to tour the city with Olds. Schaefermeyer noted that campground revenues were more than double what was collected last year. He attributed this to better campground management. Schaefermeyer noted that the Parks and Recre- ation Department's Day Camp program which usually attracted an average of 10 children each year was being I I I 209 PAGE 209 REGULAR MEETING ~ JUNE 24, 1991 VOLUME 26 attended by 25 youth per day. He stated that all visitor statistics for the department's programs were increasing, and Parks & Rec was now servicing in excess of 4,000 people per month. xv. COUNCIL DISCUSSION: SIMUTIS asked about the status of the city block campus plan. Schaefermeyer noted that city staff had reviewed the plan last week, and upon Diener's return, it would be submitted to Council for review. BURGESS stated that the city had adopted all of the recommendations of the legal services review. He added that he was disappointed that only two members of the public had attended the work session when it was reviewed and discussed. Burgess asked if the city was spending more for legal fees on city leases than it was recovering in income. He also asked if Council wished to set a legal budget for the City Attorney on the Schnell lease negotiations and preparation. Finally, Burgess asked what was happening with the old clinic building. Schaefermeyer noted that it was vacated about three months ago, and currently needed a fair amount of repairs if it was to be used for office or clinic space. He stated that the city had looked at the possibility of bringing it up to Code in order for the hospital to rent the facility or use it as clinic space. However, there was as yet no written estimate from Diener as to the cost of repairs. Burgess stated that he did not want to see the clinic remain vacant if some use could be found for it. Schaefermeyer noted that as a result of the work session the previous week and the direction given to him as city manager with regards to incurring legal costs, anything exceeding $2500 would require consent of Council. Therefore, any lease preparations which would exceed this cost would come to council for an established budget. DUNHAM agreed with Burgess regarding the clinic building. She stated that the building was not that old and should be used for as long as possible. She stated that this would give another doctor in town a location completely separate from the other clinic. HILTON asked how the ci ty Schaefermeyer noted that the governor on the capital bUdget. fared in Juneau. had not yet acted XVI. CITIZENS' DISCUSSION: 210 PAGE 210 REGULAR'MEETING - JUNE 24, 1991 VOLUME 26 JIM PRUITT, Maple street, Forest Acres, stated that it was getting close to the time that the state ferries would be hauled for repair work. He asked for the city's support of legislation which would require competitive bidding of ferry maintenance and repair. WILLARD DUNHAM, Alder and Dimond, Forest Acres, noted that he was glad to see a proposed land use amend- ment which Council had introduced tonight. He stated that with the high percentage of single person and couple dwellings on 30-ft. lots, it might be worthwhile to look at how to better utilize these single lots around town. He also suggested incentives to property owners to upgrade and clean up their property. XVII . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : Hilton asked if the contractor was on schedule for street and sidewalk improvements. Schaefermeyer stated that the project was actually a little bit ahead of schedule, and he hoped to get most of the downtown streets striped before the Fourth of July. Schaefermeyer reminded Council and the public that the USS Barbey would be in town from July 3-6. DUNHAM stated that the Downtown Merchants Association was responsible for one absentee owner's downtown building being painted. She complimented the association for taking this step. XVIII. ADJOURNMENT : The meeting was adjourned at 10:15 p.m. QJJ / dOk-, -4r ' David L. Hilton, Sr. Mayor """'- . "'~(b . ., . ~ . \ ".~. ~"I,... \ c~ . . . ~"'t< . ~llll ..' ... ," . ~.... . .l r . Ai'~. .......... ~~ f> ..:.t_~~ I I I 211 PAGE 211 REGULAR MEETING - JULY 8, 1991 VOLUME 26 1. CALL TO ORDER: The July 8, 1991, regular meeting of the Seward city council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Dunham led the pledge of al- legiance to the flag. III. ROLL CALL: Present were: Mayor Hilton and Councilmembers Burgess, Dunham, Krasnansky, Meehan, Sieminski and Simutis Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and utilities Manager Diener, Community Development Director Martin, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Chaffin, Harbormaster Single- ton, Librarian Nicolas, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: The June 24, 1991, minutes were not available. V. APPROVAL OF REGULAR MEETING AGENDA: MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS. Murphy noted that Dunham had requested post- ponement of his presentation until 07/22/91. THE QUESTION WAS CALLED, AND THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Member Jonathan Sewall reported on the last Assembly meeting. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: 212 PAGE 212 REGULAR MEETING - JULY 8, 1991 VOLUME 26 LOUIE MARCH, JR., 309 Third Avenue, Seward, stated that he was speaking regarding Item C, New Business. He stated that he was a resident of Seward, and the Administration's attempt to deny March's right to circulate petitions was a political ploy of the city manager, city clerk and city attorney to prevent him from bringing about needed changes in the city. March also presented the clerk with a letter from Terry Shockey stating that he would act as primary sponsor of all petitions filed by March. TOM STAUDENMAIER, Anchorage, addressed the right of the people of Seward to sell the Electrical Utility. He also stated that his strategy in October was to replace all members of the City Council. Staudenmaier noted a threatening letter received by Bob Valdatta and stated that March would be filing a complaint with the FBI. DON WHITMAN, III Barwell street, asked why the city administration was requesting permission to destroy city financial documents less than three years old. Murphy explained that the documents in question were merely work papers prepared by various departments during the preliminary budget process and were not invoices or other back up materials supporting actual expenditures as indicated by Mr. Whitman. WAYNE CARPENTER, 325 Fifth Avenue, reported on the Fourth of July Mount Marathon Race and celebration. He commended the street department, police department and engineering department. He also recognized Kristi Clemens (overall chairman) and Leslie Simutis and Lori Draper (Race Coordinators) for their contributions to the success of the event. carpenter noted that this year's parade was probably the best ever, and he complimented Anne Castellina for her efforts in coordinating it. ANNE CASTELINA, 2508 Cedar street, commented on oil spill related activities in Seward. She noted a recent diesel oil spill in the Seward Lagoon and stated that the Park Service had loaned a couple of zodiacs to the city to help with Skimming the oil. Castellina stated that at the time of the spill, the city had insufficient supplies of absorbent boom to accommodate clean up operations. She further stated that, although the spill was reported on Thursday, clean up was delayed until today (Monday). She questioned why something was not attempted sooner, and why the city did not have absorbent boom on hand to deal with this emergency. Schaefermeyer asked Singleton to respond to Castellina's comments regarding the Lagoon spill. Singleton stated that a report of what appeared to be an I I I 213 PAGE 213 REGULAR MEETING - JULY 8, 1991 VOLUME 26 oily sheen on the Lagoon was received from Chuck wilson on Wednesday afternoon. Deputy Fire Chief Squires responded to this report and found that there was definitely an oily sheen, but the source of the oil could not be found. The city monitored the situation all day Thursday and Friday. On saturday afternoon, the Fish House reported that there was oil around the ducks in the Lagoon. Once again, a search for the source of the oil was unproductive; however, city crews worked all day Sunday and Monday to contain the oil and to begin the clean up process. Singleton stated that the State Department of Environmental Conservation was notified on Monday morning. By that time, the city had contained the oil. Singleton stated that, while the city had very little of the smaller boom needed in this particular situation, it did have approximately 1100 feet of ocean boom on hand. He agreed that there was probably a need for more of the smaller boom. He added that the two local fuel companies regularly stock large quantities of absorbent pads. Singleton noted that the city was constructing a holding pen for the ducks to keep them out of the water until the clean up was completed. In response to a question from Hilton, Schaefe- rmeyer stated that in navigable waters, the U. S. Coast Guard was responsible for oil spill response and clean up, whereas the State DEC had this responsibility in other areas of the state. He noted that the spill appeared to originate from private property; however, this was for DEC to determine, and he did not wish to second guess the state. HILTON REQUESTED A REPORT AT THE NEXT MEETING REGARDING PLANS TO WAREHOUSE A QUANTITY OF SMALL BOOM IN SEWARD. VIII . 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. Resolution No. 91-081, authorizing the ci ty manager to issue a purchase order to repair the Fourth of July Creek levees damaged in the 1989 flood, was approved; B. Resolution No. 91-082, authorizing the destruction of certain public records, was approved; 214 PAGE 214 REGULAR MEETING - JULY 8, 1991 VOLUME 26 C. Resolution No. 91-083, appropriating funds to the Chamber of Commerce for maintenance and service of portable restroom facilities, was approved; and D. Resolution No. 91-084, extending the FY 1991 Jail Contract through september 30, 1991, was approved. IX. PUBLIC HEARINGS: None x. PRESENTATIONS WITH PRIOR NOTICE: Board, report A. WILLARD DUNHAM, Chairman of the Trade was not present, and the Trade Board's annual was postponed until July 22, 1991. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: None 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING TITLE 15, PLANNING AND LAND USE 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. 649; THE MOTION WAS SECONDED BY DUNHAM. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS APPROVED BY UNANIMOUS VOTE. 2. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE REGULAR MEETING DATE OF THE COMMUNITY HOSPITAL BOARD. HILTON NOTED THAT, AS EMPLOYEES OF THE HOSPI- TAL, HE AND KRASNANSKY WOULD ABSTAIN FROM DISCUSSION AND VOTING ON THIS ISSUE. HE PASSED THE GAVEL TO VICE MAYOR DUNHAM . I I I 215 PAGE 215 REGULAR MEETING' - JULY 8, 1991 VOLUME 26 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. 650; THE MOTION WAS SECONDED BY SIMUTIS. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS APPROVED WITH FIVE YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. 3. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DELETING SEWARD CITY CODE ~ 2.05.030 F., EXECUTIVE PRIVILEGE. Notice of public hearing as posted and pub- lished as required by law was noted, and the public hearing was opened. RON LONG, Camelot SUbdivision, spoke in support of the ordinance. No one else appeared in order to be heard, and the public hearing was closed. KRASNANSKY MOVED TO ENACT ORDINANCE NO. 651; THE MOTION WAS SECONDED BY DUNHAM. Dunham stated that she wished the ordinance (No. 642) had never been brought up; however, she was pleased to have an opportunity to remove the Executive Privilege section. Burgess concurred. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS APPROVED WITH FIVE YES VOTES AND MEEHAN AND HILTON VOTING NO. 4. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CLARIFY- ING EXECUTIVE PRIVILEGE AND AMENDING SEWARD CITY CODE ~ 2.05.030 F. Murphy noted that, with the enactment of Ordinance No. 651, this question was moot since there was no longer a S 2.05.030 F. to amend. 216 PAGE 216 REGULAR MEETING - JULY 8, 1991 VOLUME 26 5. copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVID- ING FOR COUNCIL REPRESENTATION ON THE COMMUNITY HOSPITAL BOARD. HILTON NOTED THAT, AS EMPLOYEES OF SEWARD GENERAL HOSPITAL, HE AND KRASNANSKY WOULD ABSTAIN FROM DISCUSSING AND VOTING ON THIS ORDINANCE. HE PASSED THE GAVEL TO DUNHAM. Notice of pUblic hearing as posted and pUb- lished as required by law was noted, and the public hearing was opened on both Ordinance No. 653 and No. 653 Substitute. No one appeared in order to be heard, and the public hearing was closed. MEEHAN MOVED TO ENACT ORDINANCE NO. 653 (SU- BSTITUTE); THE MOTION WAS SECONDED BY SIMUTIS. BURGESS MOVED TO POSTPONE ACTION ON THIS ORDINANCE UNTIL THE FIRST REGULAR MEETING IN AUGUST; THE MOTION WAS SECONDED BY KRASNANSKY. Burgess stated that there appeared to be a lack of communication between the Council and the Community Hospital Board. He suggested that the Council meet in a work session with the Hospital Board to discuss this issue and others. Meehan asked Simutis to comment. simutis stated that while she had no particular problem with postponing action, she could see no real reason not to act on the ordinance at this time. She added that as long as the postponement did not affect immediate functioning of the Board, she would not object. THE QUESTION WAS CALLED, AND THE MOTION TO POSTPONE WAS APPROVED WITH FIVE YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. C. Resolutions: None XII. UNFINISHED BUSINESS: A. Communitv Hospital Board Appointment. POSTPONED UNTIL THE FIRST MEETING IN AUGUST. XIII. NEW BUSINESS: I I I 217 PAGE 217 REGULAR MEETING' - JULY 8, 1991 VOLUME 26 A. Request for adiustment to mooraqe charqes for the F/V Medallion as filed bv L. Jovce Davis. SIMUTIS MOVED TO APPROVE THE ADJUSTMENT TO MOORAGE CHARGES AS FILED BY MS. DAVIS; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this vessel was moored at the synchrolift dock and the Inlet Fisheries dock during the dates noted on the complaint and was charged the daily rate set by the Terminal Tariff ap- propriate for the facilities in question. Therefore, the Harbor appropriately and properly charged moorage for the vessel. He agreed that better signage was needed and stated that he had instructed Harbormaster Singleton to see that the appropriate signs informing the public of moorage rates and other information be erected. He noted, however, that Ms. Davis had berthed her boat in Seward since 1988 and should have been aware that moorage would be charged for tying up to a city dock. Schaefer- meyer recommended that Council deny the request for refund of moorage charges. Krasnansky asked if it were correct that the tariff was not posted. Singleton stated that the three tariffs were approximately 100 pages in length. However, copies were available for the public to review, and information concerning tariffs was available upon request. THE QUESTION WAS CALLED, AND THE MOTION FAILED WITH SEVEN NO VOTES. B. Continuation of the Trade Board. BURGESS MOVED TO CONTINUE THE TRADE BOARD FOR ANOTHER FISCAL YEAR; THE MOTION WAS SECONDED BY MEEHAN. THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS VOTE. C . Administrative appeal of Louie March's voter aualifications for the pUrPose of sponsorinq a referendum petition in the city. SIMUTIS MOVED TO APPROVE THE CLERK'S RECOMMENDATION BY FINDING THAT LOUIE R. MARCH, JR., IS NOT A RESIDENT OF THE CITY OF SEWARD AND FAILS TO MEET THE QUALIFICATIONS TO SPONSOR A REFERENDUM PETITION WITHIN THE CITY ; MOTION WAS SECONDED BY DUNHAM. KRASNANSKY MOVED TO POSTPONE ACTION UNTIL JULY 22; THE MOTION WAS SECONDED BY SIMUTIS. THE QUESTION WAS CALLED, AND THE MOTION TO POSTPONE WAS APPROVED BY UNANIMOUS VOTE. XIV. CITY MANAGER REPORTS: 218 PAGE 218 REGULAR MEETING - JULY 8, 1991 VOLUME 26 SCHAEFERMEYER stated that the city had received a letter from Sven Ebbeson concerning problems with the Tot Lot located next to his property. He stated that the administration was looking into his claims of encroach- ment onto his property as well as claims of vandalism and theft. SCHAEFERMEYER also noted a letter from Don Grimes regarding his recent move from First Southwest Company to J. C. Bradford & Company. SCHAEFERMEYER noted that the city had lost all hospital funding to the Governor's veto pen. In addi- tion, the grant for construction of the pedestrian way and bike trail was reduced by $40,000. Dunham asked if the hospital would require a 20% local contribution if approved in the next session. Schaefermeyer stated that the governor would insist on a substantial local match. In addition, the legislature would probably also look for a local match. Schaefer- meyer suggested that the Council carefully assess the city's chance of receiving hospital funding next session. He stated that the Council might want to consider a reorganization of its legislative priorities. SCHAEFERMEYER stated that the city had inves- tigated the suitability of designating a truck route through Forest Acres along Juniper street and would proceed with a course of action to reroute heavy truck traffic away from the school route. He also stated that Diener was preparing a report to the community Hospital Board and the Council regarding the cost to mothball the clinic facility as compared to the cost of refurbishing the facility for use as clinic space. Schaefermeyer noted a press release from Rep. Gail Phillips regarding a public meeting to discuss reapportionment scheduled to be held on July 15, 1991, at the Soldotna City Council Chambers. He stated that the city would be represented at the meeting. He encouraged members of the Council and the public to attend. Schaefermeyer reminded the Council that SAAMS had scheduled a public meeting on July 15th at the Rae Building to allow Cambridge Seven to present its prelimi- nary plans regarding the proposed Alaska Marine Mammal Center. Schaefermeyer further noted that the Alaska Railroad Board would meet in Seward on July 17th and 18th. Finally, he noted that a Work Session would be conducted on July 11th to discuss the proposed amendments to the shiplift tariff. I I I 219 PAGE 219 REGULAR MEETING' - JULY 8, 1991 VOLUME 26 Schaefermeyer noted that campground revenues for the Fourth of July weekend exceeded $12,000. He thanked public works employees, electrical workers, the Parks and Recreation Department, and the police Depart- ment for their efforts over the holiday weekend. Schaefermeyer also recognized Yanez for his part in assisting the Chamber in putting on such a successful program. Burgess asked about tentative plans to spend the $160,000 for the sidewalk and bike path. Schaefer- meyer stated that first, the administration would evaluate the costs and would then bring this to council with a recommendation. He added that he hoped to accom- plish this work while the sidewalk contractors were in town. Schaefermeyer stated that the design work would be done in house. Burgess stated that he felt the city should concentrate its efforts from the schools to the Lagoon rather than diverting a portion of the funds to the bike trail along the waterfront. xv. COUNCIL DISCUSSION: KRASNANSKY asked if Arvidson had researched the possibility of establishing an REAA cooperative. Arvidson stated that he had just returned from vacation and had not yet completed this research. SIEMINSKI asked what was happening with Afognak Logging and its plans to proceed with a Nash Road Small Boat Harbor. Schaefermeyer stated that the city was preparing a memorandum to the Council asking for some policy decisions. He recommended that the Council conduct public hearings on this issue and seek recommen- dations from the Council's Boards and Commissions before making such policy decisions. DUNHAM stated that the city should seek the opinion of those living on Nash Road since the extra traffic would impact these property owners. Schaefer- meyer stated that the Borough should also be brought into these discussions. He stated that he didn't want to dampen what might be a very good prospect for a new harbor, but recommended that caution be observed. SIEMINSKI asked what was going on at SMIC. Schaefermeyer stated that the Council had given authority to negotiate with Schnell to develop some property at SMIC. He added that Gates was also pursuing prospects for a modular home manufacturing plant to be located at SMIC. In addition, the city continued to solicit possible other businesses to locate within SMIC and was continuing its dialogue with pruitt regarding some requests he had on the table. 220 PAGE 220 REGULAR MEETING - JULY 8, 1991 VOLUME 26 SIEMINSKI asked if the Ambulance Corps was still looking for a place to meet and house its equip- ment. Schaefermeyer stated that the Corps needed space for the new ambulance. Murphy noted that SVAC President Mike Moore had brought a request to the Hospital Board in Mayor June to lease the old clinic building. Because the Board was unwilling to commit to a long term lease, Mr. Moore stated that SVAC would not be interested in the building. SIEMINSKI asked Arvidson to explain who was actually responsible for the hospital - the Board or the Council. Arvidson stated that part of the intent on motion to postpone Ordinance No. 653 (Substitute) was to iron all of this out in a work session. He stated that he would like to give a full presentation at that time. DUNHAM stated that the Ferry Task Force con- tinued to meet. She noted that she and Lechner had met with Senator Kerttula who advised them that he would continue to work with the city to keep the Tustumena in Seward. DUNHAM complimented those who made the Fourth of July celebration so special. She also thanked Bencardino and Diener for working out a way to cut down on truck traffic in Forest Acres. She reported that cars continued to drive over the closed road at the Military Recreation Camp. She asked the administration to address this problem. HILTON suggested that the city require the Air Force to provide a guardrail as a part of its lease. Hilton also stated that he would prefer to continue the city's relationship with Don Grimes rather than stay with First Southwest. He complimented and congratulated everyone who worked to make the Fourth a successful holiday in Seward. HILTON noted that former Mayor cripps was in the audience, having returned to Seward after a two-year educational sabbatical. XVI. CITIZENS' DISCUSSION: DON CRIPPS, Second Avenue, noted that he could only hear only about half what was being said when watching the meeting at home. He asked the administra- tion to adjust its microphones so that the could be better heard. JIM PRUITT, Forest Acres, suggested that it might be appropriate to prepare a list of what equipment was located in town with different businesses and I I I 221 PAGE 221 REGULAR MEETING - JULY 8, 1991 VOLUME 26 agencies to aid the city in responding to an incident such as the recent spill in the Lagoon. Hilton stated that this should become a part of the city's response plan. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: SCHAEFERMEYER stated that Mr. Long referred to The Phoenix Loq request for documents in his comments regarding Ordinance No. 651; however, The Loq had not requested Executive Privilege documents, but personnel documents. He added that the city had never created any Executive Privilege documents, and, therefore, such records did not exist. XVIII. ADJOURNMENT: The meeting was adjourned at 9:30 p.m. 0\ liP///;/7 / ~L--/7- /~ / .h, David L. Hilton, Sr. Mayor (Ci ,>~ -l, <?~.. ~-~.'r..y /" ~ ..:o..fOIfAt}oi-fa / v..~v ~4... ~ ..~ ........ . : .' C E A. L '. , .. u ;'. -- '\ ....- "'(" ~",,,,,.,: \J' '..'I\f!, 1..,.....+-'t- "<~rf"O"F"~\.9'c:, . ."G- 222 PAGE 222 REGULAR MEETING - JULY 22. 1991 VOLUME 26 I. CALL TO ORDER: The July 22, 1991, Seward City Council was called Vice Mayor Beverly Dunham. regular meeting of the to order at 7:30 p.m. by II. OPENING CEREMONY: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Dunham and Council- members Burgess, Krasnansky, Meehan, Sieminski and Simutis (Hilton was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager I I I 223 PAGE 223 REGULAR MEETING - JULY 22, 1991 VOLUME 26 Diener, Port Marketing Director Gates, Community Development Direc- tor Martin, Finance Director Gif- ford, Parks and Recreation Director Chaffin, Harbormaster Singleton, police Chief Bencardino and Deputy City Clerk Jones SPECIAL ITEM: dents A. Introduction of 1991 Japanese Exchanqe Stu- DUNHAM introduced Kathy Condit and Steve Thompson who were selected to visit Japan as Seward exchange students. The four students from Japan, Hajime Mizuno, Kazunori Uemura, Ritsuko Fukui and Ayumi Nawa gave a brief speech to the Council. Dunham noted that the Seward International Friendship Association supported the exchange program, and she gave her thanks to the association for its volun- teer efforts. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE JUNE 24, 1991, AND JULY 8, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer noted the following changes: Presentations with Prior Notice: Item A., Chamber of Commerce Executive Director Wayne Carpenter's presentation on the proposed city bed tax, was deleted at the request of the Chamber Board of Directors. Item B., presentation by Skip Reierson, was moved to Item A. The Trade Board Annual Report by Chairman willard Dunham was added as Item B. Resolution 91-092, appropriating funds to cover a portion of the deficit of the SMIC Special Revenue Fund, was added as Item 5 under Resolutions. Krasnansky requested that Councilmember Simutis give a report on the last hospital board meeting. The 224 PAGE 224 REGULAR MEETING - JULY 22, 1991 VOLUME 26 report was added as Item A. under New Business, and the current items were moved to B. and C. KRASNANSKY MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. NOTE: The following item was taken out of order. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: WILLARD DUNHAM, 600 Alder Street, Chairman of the Trade Board, spoke in reference to Resolution No. 91- 054, amending the shiplift tariff. He stated that the board was opposed to the shiplift tariff amendments as presented. He asked the Council to consider deleting the resolution from the agenda. JIM PRUITT, Maple Street, asked the Council to postpone action on Resolution 91-054 until the Port Development Committee and Trade Board had taken time to consider if Seward Ship's Chandlery could assume mainte- nance of the syncrolift. DON WHITMAN, 111 Barwell, stated that the city needed to review what the intent was when the shiplift system was constructed. He stated that it was built for economic development and to create more jobs. Ne noted that the city needed to give lease incentives and tax breaks in order to acquire further development by private industries. VI. BOROUGH ASSEMBLY REPORT: Jonathan Sewall noted that the Chairman of the Board of Education of the City of Obihiro and his assistant had been in Seward with an interpreter to look at the different parks and camping areas. He stated that Obihiro would be bringing a delegation of 30 Obihiro students and five adults to Seward next summer as a celebration of the city'S 110th anniversary. Sewall reported on the last assembly meeting. He noted that upcoming items on the assembly agenda included a proposed ordinance allowing use of the fax machine for absentee voting. A hearing was also sched- uled on proposed Ordinance 91-27 which would provide for elections by mail. VIII. APPROVAL OF CONSENT CALENDAR: KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS I I I 225 PAGE 225 REGULAR MEETING - JULY 22, 1991 VOLUME 26 AND CARRIED UNANIMOUSLY. taken: The following actions were A. Resolution No. 91-085, authorizing the destruction of the ballots from the 1989 special elec- tion, was approved; B. Resolution No. 91-086, accepting a state grant for design and construction of a pedestrian walkway and bicycle trail, was approved; C. Resolution No. 91-090, approving a financial advisory agreement with J. C. Bradford & Co., was approved; and D. July 15, 1991, memorandum from Parks and Recreation Director Chaffin in support of the proposed Rotary Park Project was noted for information IX. PUBLIC HEARINGS: None. X. PRESENTATIONS WITH PRIOR NOTICE: A. Seward Rotarv Club Representative Skip Reierson - Pro~osed Rotary Park Pro;ect. REIERSON distributed packets to the Council outlining the proposed Rotary Park proj ect which would be built at the south end of the lagoon. He presented details of the project which included completion of the boardwalk to Second Avenue at the south end, construction of a gazebo, a theme park and landscaping with flowers, trees and shrubs. He added that a trail along Dairy Hill would be completed which would help to keep children walking to school off the highway. DUNHAM stated that this was a worthy project. B. Annual Trade Board Reoort. WILLARD DUNHAM, Chairman of the Trade Board, distributed the annual written report to the Council. He highlighted the successes of the board and discussed upcoming projects for the Seward area. Dunham read his written report and stressed that the Board would like to expand its duties and involvement in projects over the next year. SIEMINSKI asked Dunham to elaborate on the visit by the Cambridge Seven Group. 226 PAGE 226 REGULAR MEETING - JULY 22, 1991 VOLUME 26 WILLARD DUNHAM replied that the marine mammal center project would be the only world class facility which would entail marine mammal research, public viewing and rehabilitation in the same place. He stated that Seward was the ideal place to build the center because of its location in a sub-arctic region with a deep water port. The construction of the marine mammal center would enhance the state as well as Seward. He noted that the Cambridge Seven Group was internationally known for its design of aquariums and facilities around the world, and it was an honor to have them invol ved in the marine mammal center project. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Dunham noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING ~ 7.15.010, CAMPING, AUTHORIZING MONTHLY CAMPING PASSES FOR SENIOR CITIZENS AND DESIGNATING A WINTER CAMPING AREA KRASNANSKY MOVED TO INTRODUCE ORDINANCE NO. 654; THE MOTION WAS SECONDED BY MEEHAN. SCHAEFERMEYER noted the memorandum from Parks and Recreation Director Chaffin which explained the purpose of this ordinance. The ordinance would allow senior citizens aged 62 and older and disabled persons to remain in city campgrounds longer than fourteen days. He stated that those who qualified could obtain a special permit or pass which would enable them to remain in a campground spot for extended periods of time. He noted that this would make it more convenient for those citizens, many who are retired, to spend their summers in Seward. SCHAEFERMEYER added that the ordinance would also designate the area at the south end of Waterfront Park next to the ferry office as a winter campground area. He stated that this location was where most campers wished to locate in the winter. KRASNANSKY determined. asked how "disability" would be SCHAEFERMEYER answered that most people have handicap licenses on their vehicles. He stated that the I I I 227 PAGE 227 REGULAR MEETING - JULY 22, 1991 VOLUME 26 City would use the fact that a determination had previ ously been made by another agency regarding handicap status. THE QUESTION WAS CALLED, AND ORDINANCE NO. 654 WAS INTRODUCED BY UNANIMOUS CONSENT. B. Ordinances for Public Hearing & Enact- ment: None. C. Resolutions: 1. Copies having been made available to the public, Dunham noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AMENDMENT NO. 2 TO THE SEWARD MARINE INDUSTRIAL CENTER SHIPLIFT SYSTEM TARIFF NO. 1 VICE MAYOR DUNHAM NOTED THAT RESOLUTION NO. 91- 054 WAS POSTPONED FROM THE JUNE 24, 1991, MEETING, AND A MOTION TO APPROVE WAS ON THE FLOOR. SCHAEFERMEYER stated that there was a miscon- ception on the part of some individuals concerning the SMIC Special Revenue Fund deficit. He stated that the deficit came about because of the cost of SMIC operations from the the syncrolift and the 250 ton travelift. He added that debt service and recovery of city investments in the cost of construction of the SMIC facilities were not included in the deficit. He noted that there were several sources of revenue which the fund relied upon including lift charges, lay charges, moorage on the syncrolift dock, shore power revenues and storage revenues. He stated that all of these revenues were accounted for and listed separately in the SMIC Special Revenue Fund budget. Schaefermeyer claimed that it was not his intention that the City recover anything from the investment that was made at the Seward Marine Industrial Center. He added that the City was seeking sufficient funds to operate the facility without having to take a loss. SCHAEFERMEYER stated that the tariff was amended to better recover the cost of operations of the syncrolift and travelift. He suggested that a Permittee could pay an availability fee of $300,000 annually as opposed to a charge per foot on each lift. 228 PAGE 228 REGULAR MEETING - JULY 22, 1991 VOLUME 26 SCHAEFERMEYER stated that the administration's position regarding maintenance and operation of the syncrolift was that as a public facility, it should be maintained and operated by the City. He noted that as the owner, the City had a responsibility to maintain the lift so that multiple customers could have free and equal access to the facility. He added that the City was also responsible for the public lifting dock and it would be inappropriate to suggest any change which would relieve the City of this responsibility. In order to include the availability cost factor, Schaefermeyer suggested the following amendments to the tariff: Page 30(k)1. - the dollar amount was changed from $10.60 to $0.00 and in 1 ine 4, "the" was changed to "any". Page 31(d) - the dollar amount was changed from $3.00 to $0.00. Page 35(C) - the blank line follow- ing "the Availability Cost" was filled in with $300,000. BURGESS asked about leasing of the rails. SCHAEFERMEYER clarified that this tariff was for the lifting and operation of the syncrolift only. BURGESS stated that the Availability Cost charged would not seem to be fair if someone had leased a smaller portion of the rail system than another person. SCHAEFERMEYER replied that the terms would be taken care of in a lease agreement. He noted that the availability cost was a fixed cost which would be shared by all users of the lift. SIEMINSKI voiced concern that Seward Ship's Chandlery would be penalized for being the only one operating because they would have to pay the entire $300,000. SCHAEFERMEYER answered that the cost was a business expense. Seward Ship's Chandlery was paying for the use of the lift facility which was worth over twenty million dollars. He stated that they receive the benefit of the use of the lift in return. He noted that by Charter, the City must recover the cost of operations. SIMUTIS MOVED TO AMEND THE RESOLUTION BY INCORPORATING THE ABOVE RECOMMENDED REVISIONS TO REFLECT I I I 22.9 PAGE 229 REGULAR MEETING - JULY 22, 1991 VOLUME 26 A FLAT YEARLY RATE; THE MOTION WAS SECONDED BY KRASNAN- SKY. DUNHAM stated that she would like to postpone action until August 26 because she had not heard comments from the Port Development Committee and the Trade Board. KRASNANSKY stated that this should be acted upon now. MEEHAN noted that the Trade Board and Port Development Committee had met in a joint work session for four hours to discuss the tariff. He stated that the consensus was to see if the city could work out a lease agreement with Seward Ship's Chandlery to see if they could perform maintenance on the facility which could save the city money and reduce losses. He agreed that the situation should be dealt with now because it had been reviewed for the past five months. He stated that there was a strong consensus that the city should maintain control of the syncrolift and continue to handle the multiple user operation at SMIC. He also noted that if the City gave up maintenance and operation of the facility, it could legally lose control of the shiplift. He agreed that the city should recover its costs and noted that $300,000 was a fair amount to charge. BURGESS stated that he had reviewed the tariff extensively. He noted that he had been to the syncrolift and spoken with representatives from Lloyd's of London and Pearlson Shiplift, and he interpreted their message to mean that they were more comfortable with the City performing the maintenance. He agreed that the city must keep the syncrolift maintained. He stated that he was concerned that the syncrolift was not breaking even and noted that the City had been subsidizing the operation long enough. THE QUESTION WAS CALLED ON THE AMENDMENT, AND IT CARRIED WITH FOUR YES VOTES AND DUNHAM AND SIEMINSKI VOTING NO. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND IT CARRIED WITH FOUR YES VOTES AND DUNHAM AND SIEMINSKI VOTING NO. RECESS: THE MEETING WAS RECESSED AT 9:05 P.M. AND RECONVENED AT 9:18 P.M. 2. Copies having been made available to the public, Dunham noted by title only a proposed resol- ution entitled: 230 PAGE 230 REGULAR MEETING - JULY 22, 1991 VOLUME 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AN AMENDMENT TO THE SUMMIT PAV- ING CONTRACT FOR CONSTRUCTION OF A PEDESTRIAN WALKWAY AND BIKE TRAIL AND APPROPRIATING FUNDS KRASNANSKY MOVED TO APPROVE RESOLUTION NO. 91- 088 SUBSTITUTE; THE MOTION WAS SECONDED BY BURGESS. SCHAEFERMEYER stated that the proposal from Summit Paving for constructing the bike trails was a good one. He noted that the city had looked at lighting the pathway to the school. Utility Engineer Calvert recom- mended using wooden street light poles with overhead wiring at a cost of about $10,000 for that portion of the trail from the Seward Highway to the school. BURGESS STATED THAT HE HAD SUBMITTED A BID TO THE CITY FOR WORK ON THIS PROJECT AND WOULD ABSTAIN. HE WITHDREW HIS SECOND ON THE MOTION. SIMUTIS SECONDED THE MOTION TO APPROVE. DUNHAM RULED THAT A CONFLICT DID EXIST AND BURGESS WOULD ABSTAIN ON THIS ISSUE. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FIVE YES VOTES AND BURGESS ABSTAINING. 3. Copies having been made available to the public, Dunham noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT FOR REPAIR OF RUSTING WINDOWS AT SPRING CREEK CORRECTIONAL CENTER SCHAEFERMEYER stated that of the bids received for this project, the State Department of Transportation and Public Facilities recommended award of the contract to International Steel for repair of the faulty windows installed at Spring Creek Correctional Center. BURGESS MOVED TO APPROVE RESOLUTION NO. 91-089; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS- LY. 4. Copies having been made available to the public, Dunham noted by title only a proposed resolution entitled: I I I 231 PAGE 231 REGULAR MEETING - JULY 22, 1991 VOLUME 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A PROFESSIONAL SERVICES AGREE- MENT WITH GARZINI AND ASSOCIATES OF ALASKA REGARDING FUTURE EXPANSION OF THE SPRING CREEK CORRECTIONAL CEN- TER. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-091; THE MOTION WAS SECONDED BY SIMUTIS. SCHAEFERMEYER stated that the City needed to follow and monitor closely the activities of the Depart- ment of Corrections regarding future plans to expand existing prison facilities to add bed space. He noted that Spring Creek Correctional Center had been designed so that additional modules could be added. Ultimately the prison could accommodate 720 inmates. He added that at the present time the facility served about 400 prisoners. He stated that former City Manager Garzini had informed him that the state was looking at the facilities at Palmer, Seward and Wildwood for expansion. He stated that Ron Garzini had experience and a good deal of contact within the Hickel administration and the Department of Corrections. He noted the need to put together ideas to address the housing shortage in Seward, especially lower cost housing for SCCC employees. MEEHAN stated that this was a good idea, adding that Seward must assure the Hickel Administration and the State Department of Corrections that the city was interested in expansion of its prison facility. He suggested working with existing landowners to possibly alleviate the housing shortage problem. BURGESS added that Garzini was capable of providing the needed services. SIEMINSKI stated that this marketing plan was not needed. He noted that the city staff should be capable of marketing this idea. KRASNANSKY concurred stating there was no need to spend the funds at this time. SIMUTIS stated that the state would be the deciding factor in expansion of its facilities. She noted that the best way to help the city would be to find someone who knows who to talk to in order to benefit Seward. DUNHAM stated that she was on the prison task force board for over five years. She said that the task 232 PAGE 232 REGULAR MEETING - JULY 22, 1991 VOLUME 26 force had fought to oppose overcrowding at the prison and if expansion was in Seward's future, Garzini would be good at marketing Seward. THE QUESTION WAS CALLED AND THE MOTION WAS APPROVED WITH FOUR YES VOTES AND KRASNANSKY AND SIEMINSKI VOTING NO. 5. Copies having been made available to the public, Dunham noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPRO- PRIATING FUNDS TO COVER A PORTION OF THE DEFICIT OF THE SMIC SPECIAL REVENUE FUND SIMUTIS MOVED TO APPROVE RESOLUTION 91-092; THE MOTION WAS SECONDED BY KRASNANSKY. SCHAEFERMEYER reported that the SMIC Special Revenue Fund was created to account for revenues and expenses from operations of the syncrolift and travelift. He noted that since 1987, the SMIC Special Revenue Fund had experienced an increased deficit. He stated that Council had indicated that they would like to reduce the deficit in this fund. THE QUESTION WAS CALLED, AND RESOLUTION 91-092 WAS APPROVED BY UNANIMOUS CONSENT. XII. UNFINISHED BUSINESS: A. Administrative appeal of Louie March' 8 voter qualifications for the puroose of soonsoring a referendum oetition in the citv. ARVIDSON stated that Mr. March's voter qualifi- cation in the City of Seward had been questioned. He noted that the Council was acting as a canvass board in this situation. March had submitted a petition to the clerk's office as a primary sponsor, and on that petition he stated that he lived on Marathon Drive. On May 22, 1991, March had sworn under oath before a voter registrar in Anchorage that he did reside on Marathon Drive. Arvidson reported that the clerk's office had conducted a telephone survey of each household on Marathon Drive which revealed that Mr. March had not lived in any existing house on that street. He stated that the clerk then formally challenged his right to sponsor a petition in the city due to the fact that he was not qualified to vote in the city. He noted that this item had been I I I 233 PAGE 233 REGULAR MEETING - JULY 22, 1991 VOLUME 26 presented at the July 8 meeting, but Mr. March had requested that action be postponed until this meeting. Arvidson stated that the clerk was required under the City Code to give a written reason for her decision. He noted the memo in the packet containing the clerk's recommendation. SIMUTIS MOVED TO FIND THAT LOUIE R. MARCH, JR. WAS NOT A RESIDENT OF THE CITY OF SEWARD DURING THE TIME PERIOD CLAIMED WHEN HE ATTEMPTED TO SPONSOR PETITIONS IN THE CLERK'S OFFICE ON JUNE 24, 1991, AND THEREFORE, WAS NOT A QUALIFIED VOTER OF THE CITY FOR THE PURPOSE OF SPONSORING THE PETITIONS; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. XIII. NEW BUSINESS: A. Report on the Community Hospital Board bv Councilmember Simutis SIMUTIS reported on the j oint work session which was held by the City Council and the Hospital Board on July 15, 1991. She noted that the purpose of the work session was to clarify a unique and complex relationship between the Board and the Council and how they relate to each other. She stated that there were still some concerns which had not been addressed and the Council and Board would meet in another work session prior to the August 12, 1991, Council meeting. SIMUTIS highlighted the action taken at the July 15 regular meeting of the Community Hospital Board. She noted that Mr. Dub McElhannon had been interviewed by the board for the CEO position at Seward General Hospital and had been offered the job by Brim Healthcare, Inc. She stated that the temporary Director of Nursing had discussed training for the nurses. Scot t Campbell, Marketing/Planning Consultant, spoke about overall planning and scope of services for the hospital. Simutis noted that the board had no objection to the proposed lease of the clinic space by SVAC. She also noted that the building could be made into a usable facility for SVAC but was not suitable for a doctor's office. She stated there was still active recruitment for a physician and noted that Dr. Lewis was in town for the months of July and August to see if he would like to start a practice in town. MEEHAN asked about the appointment of hospital boardmembers. SIMUTIS replied that there was consider- able discussion about the process of appointing a boardmember. At a previous meeting the board had expressed that they had no problem with a councilmember sitting on the board, however, at the work session, some 234 PAGE 234 REGULAR MEETING - JULY 22, 1991 VOLUME 26 members voiced their opposition to a councilmember being a boardmember. MEEHAN stated that the Seward General Hospital Association had made excellent recommendations in the past and he was comfortable with that process. He noted that he would like to postpone any further appointments to the board until recommendations could be made. Burgess concurred. B. Reauest for Council authorization to begin neqotiations with the Seward Volunteer Ambulance Corps for lease of the old clinic building. SIMUTIS MOVED TO INSTRUCT THE CITY MANAGER TO BEGIN NEGOTIATIONS WITH THE SEWARD VOLUNTEER AMBULANCE CORPS FOR LEASE OF THE CLINIC BUILDING AND TO SCHEDULE A PUBLIC HEARING ON THE NEGOTIATED LEASE TO BE CONDUCTED NO LATER THAN AUGUST 26, 1991; THE MOTION WAS SECONDED BY SIEMINSKI. BURGESS stated that he would like to make sure all possibilities had been exhausted as to the proper use of the building before making an actual commitment to SVAC. He noted that it could be used as a clinic by another physician. SIMUTIS noted that if another doctor came in, availability of the building would not make a difference in whether he came to Seward or not. She stated that SVAC was seeking a facility for training and storage. KRASNANSKY stated that SVAC had made an offer to lease the vacant building. He noted that if the building remained vacant, it would be in greater disre- pair through the winter and subject to further vandalism. SCHAEFERMEYER stated that Diener and he had met with Mike Moore to discuss needed repairs to the build- ing. He noted that the roof would need repair or replacement. Moore informed him that SVAC volunteers would provide the labor and time if the city could fund the repairs. He stated that it was possible to work with SVAC to occupy the building on a yearly basis with the understanding that should the building be demolished or needed for something else, SVAC would vacate in a specified number of months. Schaefermeyer informed the council that he would be coming back to Council for funding at the last meeting of August. DUNHAM stated that she was offended that she was not included in the review of the building as she had requested. She stated that the building was not that old I I I 235 PAGE 235 REGULAR MEETING - JULY 22, 1991 VOLUME 26 and it should be used to attract a physician to Seward. MEEHAN stated that he would like to lease the building to SVAC with a stipulation that six months notice be given if the building were needed or was scheduled to be demolished. He agreed that the vacant building should be occupied. THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS CONSENT. B. Community Hospital Board Appointment. BURGESS MOVED TO POSTPONE ACTION ON THIS ITEM UNTIL THE MEETING OF AUGUST 12, 1991; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FIVE YES VOTES AND KRASNANSKY ABSTAINING. XIV. CITY MANAGER REPORTS: A. Ferrv service update and report on meet- inqs with Commissioner Turpin. Port Marketing Director GATES reported that when he had met with DOT/PF Commissioner Turpin, he was informed that the state was not considering completely pulling the Tustumena from Seward, but would maintain a winter schedule to include Seward. Gates stressed the importance of the economic impact the loss of the Tustumena would have on Seward. He noted that the state was looking at the possibility of a separate ferry service for the Seldovia-Homer run and use of the Tustumena to service more of Western Alaska. GATES commended the community and the Trade Board Task Force for their efforts in keeping the Tustumena in Seward. He stated that he felt positive about how far the town had come in working together on such a vital issue. SCHAEFERMEYER reported that he had received a letter from Sven Ebbeson regarding his property adjacent to the Tot Lot next to the Bear Mountain apartments. Ebbeson claimed that a number of windows had been broken and some homes had been vandalized in the area. Schaefer- meyer stated that the city was considering fencing the property at a cost of $2,500 to $5,000. He noted that the alternative was to remove the facility from the area since it was noisy for nearby residents. If the Tot Lot was removed, the city would relocate the equipment and dispose of the thirty foot lot. He stated that he would bring a formal recommendation to the next meeting on the Ebbeson claim and recommend what to do with the play 236 PAGE 236 REGULAR MEETING - JULY 22, 1991 VOLUME 26 ground. area. He commented that vandalism was a problem in the taking August duties SCHAEFERMEYER informed the Council that he was ten days of annual leave and would return on 1. Assistant City Manager Yanez would assume his in his absence. xv. COUNCIL DISCUSSION: KRASNANSKY asked Arvidson to report on the REAA Cooperative situation. Arvidson answered that under such a system, the city would give up payment in lieu of taxes which would result in the loss of a fair amount of revenue. He noted that the rates would probably not go down if a cooperative were formed because the electricity would still be bought from Chugach Electric Association. MEEHAN stated that the idea of forming a cooperative had been looked at before but there was no assurance of a cost savings to customers. KRASNANSKY asked Arvidson for copies of attorney communications on this issue. BURGESS thanked the Hospital Board for meeting with the Council. He also thanked the Port Development Committee and the Trade Board for their input at the work session on the shiplift tariff. He noted that he had been across the bay and viewed the syncrolift. He stated that there was a need to perform needed maintenance on the syncrolift in the near future. SIEMINSKI asked about the progress of the lease proposal by Garrett Schnell for a parcel at the Seward Marine Industrial Center. Gates stated that he had talked with Schnell and Schnell had asked the city to slow down while he investigated the possibility of leasing a small rail system and putting cradles in place. SIEMINSKI asked about the City Hall Block Master Campus plan which was designed by Patapoff. SCHAEFERMEYER replied that the Council had received a copy of the plan for information. He noted that Council could take any action it wished on the plan. He stated that he could present it formally to ac- knowledge receipt of the study if Council desired. Schaefermeyer asked for direction on how to proceed with the report. He noted that he would send a copy of the plan to the state since they were asking for a 15% reduc- tion in lease rates for office space at city hall. I I I 237 PAGE 237 REGULAR MEETING - JULY 22, 1991 VOLUME 26 MEEHAN asked for an update on the construction of the streets and sidewalks by Summit Paving. Diener reported that the downtown area and Fourth Avenue were substantially complete with some sealing and cleanup still needed. He noted that paving of Government Road and Dairy Hill would be completed by Wednesday, July 24. He stated the construction of the bike trails and the overlay of Washington and Adams had been added to the contract. Diener also stated that delivery of the light posts had been held up by the vendor but the posts would be delivered before winter. XVI. CITIZENS' DISCUSSION: CHRIS GATES, Johnstone Road, reported on the Regional Citizens Advisory Committee. He stated that the HB 567 was being finalized for oil spill prevention. He noted that the regulations were a summation of two years work by many concerned groups and citizens. Gates invited anyone interested in prevention to respond. GATES stated that the recent Alaska Railroad board meeting in Seward had been productive. He noted that there was a positive turn in attitude toward Seward. He encouraged people to look at the plans for the proposed marine mammal center. Gates also stated that the City Administration was committed to finding ways of reducing costs for operation of the shiplift. JIM PRUITT, Maple Street, asked for a clarific- ation on the tariff rate. SCHAEFERMEYER stated that the $100 per day charge noted in Subsection 210(d) of the shiplift tariff was for the 150 foot and 200 foot rails. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: DUNHAM spoke in support of the work being done by the Cambridge Seven Group on the marine mammal center. XVII 1. ADJOURNMENT : The meeting was adjourned at 10:48 p.m. ,t~~ ~ Beverly D nham Vice Mayor 238 PAGE 238 SPECIAL MEETING - JULY 3D, 1991 VOLUME 26 1. CALL TO ORDER: The July 3D, 1991, special meeting of the Seward City Council was called to order at 6:10 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hil ton and Councilmembers Burgess, Dunham, Krasnansky, Sieminski (Meehan and Simutis were excused) Present also: City Manager Schaefermeyer and City Clerk Murphy (City Attor- ney Arvidson participated tele- phonically. IV. APPROVAL OF SPECIAL MEETING AGENDA: KRASNANSKY MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. V. SPECIAL ITEMS: A. Reauest for Executive Session to discuss a personnel matter. BURGESS MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF BUSINESS TO DISCUSS A PERSONNEL MATTER; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. VI. COUNCIL DISCUSSION: None VII. CITIZENS' DISCUSSION: None VIII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None IX. ADJOURNMENT : , '- The meeting was adjourned at 6: 12 p.m., and a short recess, the Council reconvened in Session to discuss a personnel matter. . : \ ~~~/..h, David L. Hilton, Sr. Mayor I I I 239 PAGE 239 REGULAR MEETING - ' AUGUST 12, 1991 VOLUME 26 1. CALL TO ORDER: The August 12, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. II. OPENING CEREMONY: Councilmember Krasnansky led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hil ton and Councilmembers Burgess, Krasnansky, Meehan, Sieminski and Simutis (Dunham was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Assistant Finance Direc- tor Bageirek, Community Devel- opment Director Martin, Utility Engineer Calvert, Parks and Recreation Director Chaffin, Harbormaster Singleton, Hospi- tal CEO Bell, Librarian Nicolas, Police Chief Bencar- dino and City Clerk Murphy IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE JULY 22, AND JULY 30, 1991, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: A. Request for executive session to evaluate performance of Manaqer and Clerk. This item was deleted at the request of the Mayor. SIEMINSKI MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF REGULAR BUSINESS TO DISCUSS A PERSONNEL AND FINANCIAL MATTER; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. KRASNANSKY MOVED TO MEET IN EXECUTIVE SESSION TO DISCUSS LITIGATION AND A DEMAND FOR ARBITRATION FILED BY SEWARD SHIPS CHANDLERY; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. 240 PAGE 240 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 Hilton noted the addition of a presentation by Jim Pruitt as Item X B. Schaefermeyer noted an addition to New Business - Item D - entitled "Proposed Grain Terminal request for proposals". He further noted that Council had received a memorandum regarding Item C, regarding a request for authorization to rebate a portion of the lease deposit submitted by Robert Ferguson. In addition, the Council had been given a copy of proposed resolution No. 91-098, providing for the submission to the voters in October the question of bonding for future local improvements, whiCh was being introduced for information only. Schaefermeyer stated that this resolution would corne back to the Council for action on August 26th. In response to a question from Burgess, Schae- fermeyer stated that he would proceed with an RFP to repair the Clinic roof. BURGESS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY KRASNANSKY AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None VII. VIII. APPROVAL OF CONSENT CALENDAR: Sieminski asked to move Consent Calendar Item C to New Business, Item E. KRASNANSKY MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: A. sharing funds approved; Resolution No. 91-093, accepting revenue for health facilities within the city, was B. Resolution No. 91-096, approving an agreement with the Kenai Peninsula Borough for enhanced 911 services, was approved; C. Change Order No. 1 to the Stripes contract (No. 412) to complete extra street striping work not included in the original contract for an additional I I I 241' PAGE 241 REGULAR MEETING - ' AUGUST 12, 1991 VOLUME 26 contract price NTE $9,960.00, was moved to the regular meeting agenda (New Business, Item E}i D. Permit for games of chance and skill application as filed by DISABLED AMERICAN VETERANS was noted for informationi and E. Seward General Hospital financial report for the period ending June 30, 1991, was noted for information. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding a proposed lease renewal of a portion of Lots 3 and 6A, Fort Raymond Subdivision, to the U. S. Government for continued use as a portion of the Air Force Recreation Camp was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. x. PRESENTATIONS WITH PRIOR NOTICE: A. Rhonda Anderson-Hubbard, representing the Trade Board, spoke in support of Al Schafer's proposal to construct a small boat harbor at Nash Road. She noted that the Trade Board had not rule out a the option of a south expansion. However, the Board favored immediate support for the Nash Road plan which had been in the planning stages for the last decade and could possibly be constructed with private funds within the next three years. She stated that the Board felt that expansion to the south should continue to be explored since it was likely that even more slips would be needed by the time federal and state funding could be obtained for such a development. Anderson-Hubbard added that the Board did not view the Nash Road development as detrimental to downtown, but as something that will provide new net business. B. Jim Pruitt Seward Ship's Chandlery. Pruitt stated that on June 27, 1991, he submitted a proposal to the city to lease additional land at SMIC and requesting a status report on his earlier request for lease of property to house a waste oil facility at SMIC. He stated that although he had paid his lease deposit two years ago, there had been no progress on the lease agreement. Pruitt further noted that he had submitted a letter to city on July 16th requesting a lease extension. He had later met with Gates (07/22}i however, no action had been forthcoming on the additional land lease or the waste oil lease. Pruitt stated that on August 5, he had submitted a letter to Gates asking that his various requests be presented to the City Council, and he was 242 PAGE 242 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 surprised to find that his proposals were not on this agenda. He added that he had heard accidentally that the Council would be meeting in executive session this evening regarding these requests, thus prompting this presentation. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RELATING TO THE APPOINTMENT OF COMMUNITY HOSPITAL BOARD MEMBERS. MEEHAN MOVED TO INTRODUCE ORDINANCE NO. 655; THE MOTION WAS SECONDED BY SIMUTIS. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS INTRODUCED WITH FOUR YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. Public hearing was scheduled for August 26, 1991. B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SSC ~ 2.30.110 A. TO REQUIRE THAT ONE SEAT ON THE COMMUNITY HOSPITAL BOARD BE FILLED BY A COUNCILMEMBER. 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 CUR- RENTLY ON THE FLOOR. (This item was continued from the July 8, 1991, meeting.) Meehan stated that the Council had met with the Community Hospital Board earlier to discuss this ordi- nance and other subj ects . The consensus of both the Board and the Council was that this ordinance was no longer needed. I I I 243 PAGE 243 REGULAR MEETING - . AUGUST 12, 1991 VOLUME 26 THE QUESTION WAS CALLED, AND ORDINANCE NO. 653 (SUBSTITUTE) WAS DEFEATED WITH BURGESS VOTING YES; MEEHAN, SIEMINSKI AND SIMUTIS VOTING NO; AND HILTON AND KRASNANSKY ABSTAINING. 2. Copies having been made available to the public, Hilton noted by title only a proposed or- dinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SSC ~ 7.15.010, CAMPING, AUTHORIZING MONTHLY CAMPING PASSES SENIOR CITI- ZENS AND DESIGNATING A WINTER CAMP- ING AREA. 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. 654; THE MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED, AND ORDINANCE NO. 654 WAS ENACTED BY UNANIMOUS VOTE OF THE COUNCIL. C. Resolutions: 1. Proposed Resolution No. 91-094 was DELETED from the agenda. 2. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A NET BILLING AGREEMENT WITH CHUGACH ELECTRIC ASSOCIATION. MEEHAN MOVED TO APPROVE RESOLUTION NO. 91-095; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer noted that the Bradley Lake Hydro project would soon be ready to go on line. He stated that, as a one percent owner of the project, the city of Seward was responsible for one percent of the cost of operating the facility. In order to facilitate the city obtaining and using the power, the administration recommended approval of an agreement with Chugach Electric Association to manage this purchase of power through a net billing agreement. The city's first year cost for the one percent had been set at $13,500 per month. This would be paid directly to the Alaska Energy 244 PAGE 244 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 Authority and would then be credited back to the city by CEA. Schaefermeyer reported that the agreement was reviewed and approved by Julian Mason, the city's special council on energy matters. In response to a question from Krasnansky, Diener noted that the wholesale rate from CEA was set by CEA with approval of the Alaska Public Utilities Commis- sion. He added that this agreement would result in a small increase to the city's wholesale rate; however, the city did not anticipate passing this rate increase on to the rate payers at this time. He further noted that this additional cost would be passed on to the city by CEA with or without the net billing agreement; however, the agreement would allow the city some say in the management of the Bradley Lake power. THE QUESTION WAS CALLED, AND RESOLUTION NO. 91- 095 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. 3. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A LEASE RENEWAL OF AIR FORCE RECREATION CAMP ADDITION LEASE NO. RE-023 AT A FAIR MARKET RATE COMMEN- SURATE WITH THE PRIMARY AIR FORCE RECREATION CAMP LEASE. BURGESS MOVED TO APPROVE RESOLUTION NO. 91- 097 ; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUS- LY. 4. Copies having been made available to the public, Hilton noted by title only a proposed resol- ution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVID- ING FOR THE SUBMISSION TO THE QUALI- FIED VOTERS OF THE CITY THE QUESTION OF THE INCURRING OF INDEBTEDNESS AND THE ISSUANCE OF $5,600,000 OF GENER- AL OBLIGATION BONDS OF THE CITY TO PAY THE COST OF PLANNING, DESIGNING, CONSTRUCTING AND ACQUIRING LAND FOR ROAD, ELECTRICAL, WATER, SEWER, STREET AND SIDEWALK CAPITAL IMPROVE- MENTS IN LOCAL IMPROVEMENT DISTRICTS OR SERVICE AREAS HEREAFTER TO BE I I I 245 PAGE 245 REGULAR MEETING - ' AUGUST 12, 1991 VOLUME 26 CREATED IN THE CITY, AT THE ELECTION TO BE HELD FOR THAT PURPOSE IN THE CITY OF SEWARD, ALASKA, ON OCTOBER 1, 1991. Schaefermeyer stated that this resolution had been placed on the Council agenda for information only and would be brought back to the Council for action at the next meeting. Schaefermeyer noted that he was seeking voter approval to allow the sale of up to 5.6 Million Dollars in GO bonds to fund improvement projects within the city. He noted that there was a considerable amount of private property within the city which would lend itself to development if utilities could be constructed. These could be installed and repaid through a special assess- ment district, but funds would be required up front to pay for the projects. Schaefermeyer also noted the possibility of obtaining a federal loan to provide sewer service to Dairy Hill. If approved, this loan could be accepted under the blanket authorization provided in this ballot proposition. Schaefermeyer stated that any projects funded under this proposed program would result in the creation of special assessment districts rather than passing the repayment along to the taxpayers. However, the city would seek approval of GO bonds requiring a pledge of the full faith and credit of the city since these bonds carried a much lower interest rate than others. XII. UNFINISHED BUSINESS: A. Community Hospital Board Appointments. SIMUTIS MOVED TO POSTPONE ACTION ON THESE APPOINTMENTS UNTIL THE FIRST MEETING FOLLOWING RECEIPT OF A RECOMMEN- DATION FROM THE HOSPITAL BOARD; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FOUR YES VOTES AND HILTON AND KRASNANSKY ABSTAINING. XIII. NEW BUSINESS: A. Claim for damaqes as filed by Sven Ebbes- son. SIMUTIS MOVED TO ACCEPT AND APPROVE THE CLAIM SUBMITTED BY EBBESSON; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer noted that Ebbesson filed his claim with the city on July 2nd. Following receipt of the claim, the administration investigated Ebbesson's suggestion that a fence be constructed around the tot lot. However, the cost of such a fence would be approxi 246 PAGE 246 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 mately $2500 - $5000, depending on whether it was con- structed in-house by force account or contracted to a private firm. After discussions with the tenant commit- tee at Bear Mountain Apartments, a consensus was reached to either relocate the tot lot to another site or move the equipment to another tot lot. Schaefermeyer stated that this particular playground was not well used and had been subject to a great deal of vandalism. He added that he would come back to the Council at a later date with a resolution authorizing disposal of the lot by sealed bid. Schaefermeyer further recommended that Ebbesson's claim for replacement of windows and reimbursement for stolen fishing gear be denied by the Council. THE QUESTION WAS CALLED, AND THE MOTION FAILED WITH ALL VOTING NO. B. Claim for damaqes as filed by Jovce C. Emerson. SIMUTIS MOVED TO REFER THE CLAIM TO THE CITY'S INSURANCE CARRIER; THE MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED, AND THE MOTION WAS APPROVED BY UNANIMOUS VOTE. C. Reauest for authorization to rebate a portion of the lease deposit submitted by Robert Ferqu- son. MEEHAN MOVED TO FOLLOW THE RECOMMENDATION OF THE ADMINISTRATION TO RETURN ROBERT FERGUSON'S DEPOSIT LESS ANY ACTUAL COSTS INCURRED BY THE CITY; THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer noted that actual costs would be fairly insignificant and would consist of some advertis- ing costs and approximately one hour of Arvidson's time. Schaefermeyer stated that he would not seek the recovery of staff time. He added that this request for reimburse- ment was consistent with the lease policy adopted by the Council. BOB FERGUSON, 4160 Wilma Avenue, Seward, distributed written comments to the Council. He noted that he had received Gates' memorandum to Council just before the meeting this evening. He further stated that the main reason he requested a rebate of his deposit was that his original proposal was based on Inlet Salmon's original lease which required construction and operation of a fish processing facility at SMIC. Therefore, the city'S withdrawal from the Inlet lease negated the need for his project which was aimed at providing services for Inlet's employees and others. THE QUESTION WAS CALLED, AND THE MOTION CARRIED UNANIMOUSLY. I I I 247 PAGE 247 REGULAR. MEETING - ' AUGUST 12, 1991 VOLUME 26 D. Grain Terminal RFP. There was no objec- tion from Council to the administration's recommendation that the city seek proposals for disposal of the grain terminal components. E. Item C. Consent Calendar - Stripes Change Order. SIMUTIS MOVED TO APPROVE A CHANGE ORDER TO THE STRIPES CONTRACT TO PROVIDE STREET STRIPING WHICH WAS NOT COVERED IN THE ORIGINAL CONTRACT AT AN ADDITIONAL CONTRACT PRICE NOT TO EXCEED $9,960; THE MOTION WAS SECONDED BY KRASNANSKY. Sieminski asked why the city wished to spend $11,000 just before the onset of winter. He suggested that the city wait until next spring to have this striping completed. Schaefermeyer stated that the costs had already been incurred by the contractor, and he was now seeking authorization to release the funds. THE QUESTION WAS CALLED, AND THE MOTION CARRIED WITH FIVE YES VOTES AND SIEMINSKI VOTING NO. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that the fish waste barge was inaugurated in the harbor earlier in the day and appeared to be successful. If it remained so, another one would be suggested for the other side of the fish cleaning area. He noted that the bike trail was just about finished (except for a small portion near the school and installation of hand rails over the bridges) . He acknowledged Afognak Logging for providing base material for the trail; Trail Blazers for volunteer work; local citizens who volunteered time and donated funds; and city staff members Diener, Chaffin, Yanez, Martin and Singleton; as well as Governor Hickel and the Legislature for providing the funds. Schaefermeyer noted the power outage on Satur- day at Noon and stated that it appeared to have been caused by criminal activity. Utility Engineer Calvert gave a verbal report of the incident to the Council. Calvert stated that power was restored to most of the town by 3:00 p.m., with SMIC coming on line by 4:00 p.m. He noted that the outage had occurred between Mile 8 and Mile 18. A helicopter was hired by the city to view this section of line and to locate the problem areas. This fly-by had revealed that several insulators had been damaged by gunfire. Calvert reported that at one point during the flight, the helicopter was fired on. He noted that the direct cost of the outage to city would be between $20,000 and $25,000, not count counting the loss of business to local businessmen. Schaefermeyer 248 PAGE 248 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 stated that the city was exploring the possibility of posting a reward for information leading to the arrest and conviction of the individual or individuals involved, and he proposed that the reward be sufficiently large enough to induce someone with knowledge to corne forth to the proper authorities. xv. COUNCIL DISCUSSION: SIMUTIS asked when the administration would be corning to Council for direction regarding the Nash Road Harbor and asked what was needed from Council at this time. Schaefermeyer noted that he would be corning to Council for direction soon with information and a reconunendation. He reconunended that Council also solicit input from the Trade Board, Port Conunittee and P&Z. In addition, he reconunended soliciting public conunent to see what the issues were and where conununity stood on this proposal. Schaefermeyer stated that the Trade Board had discussed this issue at some length on Wednesday, and the Downtown Merchants Association had met on Friday to hear an overview of the proposed project from Gates and Al Schafer. KRASNANSKY asked about status of the permeable wave barrier testing. Diener stated that he had dis- cussed this with the Corps of Engineers last week, and he anticipated a written report within the next month. In addition, the Corps of Engineers had resumed work on the study of the proposed south expansion and had begun review of the economic evaluation. Diener stated that while the preliminary report looked favorable, the Corps still wished to look at earthquake danger and environmen- tal issues. SIEMINSKI asked what groups had addressed the Nash Road Harbor. Gates stated that he had addressed this with the Trade Board twice and had made a report to the Downtown Merchants Association on Friday. Sieminski suggested contacting Rotary and the Chamber of Conunerce and addressing this at Meet the Candidates Night. Schaefermeyer stated that he was being cautious not to get ahead of the Council in addressing this issue prior to getting some direction from the Council. Schaefer- meyer suggested that, if there were no objection from the Council, the administration would continue to meet with various local groups to explain the project and seek public opinion. Sieminski asked that the administration proceed inunediately with its opinion and information gathering and to complete this phase in the next six to eight weeks. MEEHAN stated that he attended the meeting on Friday morning. He noted that the Port Advisory Conunit I I 249 PAGE 249 REGULAR MEETING - AUGUST 12, 1991 VOLUME 26 tee had been formed a couple of years ago to evaluate this type of proposal and to look at avenues for expan- sion of the Harbor. He stated that Al Schafer understood that waiting another two months or so to get a report from the Corps of Engineers regarding the south expansion project was not unreasonable. HILTON concurred with Meehan that there was no need to rush helter skelter into anything. He added, however, that Schafer's proposal should be given full consideration by the city. Hilton stated that he participated in the beginning of the SOME Run on Saturday, and the spirit of the runners did not appear to be dampened by the rain. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None XVIII. ADJOURNMENT : The meeting was adjourned at 9:07 p.m., and following a short recess, the Council met in Executive session to discuss a personnel and financial matter and to discuss litigation and a demand for arbitration filed by Jim Pruitt. ~'f~1 .Jr. David L. Hilton, Sr. Mayor (C~.~ \l/~"~ <?~.. .~.~ ~.A ;- ,,' .:.:ft...PO....;;.~..p ! CJ:....v ~...C . . "'" <A. ..: .......... V' ". ~.\ SEAL }. \. -e_ . . - . '.-. !I. .. d'~ "'~f' S. \~~,,",. ~"F.;'::' ''';';'~''~'I '::I.... ..~~~/ I I I I City of Seward, Alaska August 20, 1991 City Council Minutes Volume 27, Page 1 1. CALL TO ORDER The August 20, 1991, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. 2. OPENING CEREMONY Councilmember Meehan led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David L. Hilton, Sr., presiding, and Raymond Burgess James Krasnansky Bruce Sieminski Beverly Dunham Michael J. Meehan Leslie Simutis comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Linda S. Murphy, City Clerk 4. APPROVAL OF SPECIAL MEETING AGENDA Burgess moved to approve the Special Meeting Agenda as presented; the motion was seconded by Sieminski and carried unanimously. 5. SPECIAL ITEM A. Request for executive session to discuss a personnel maUer. Burgess moved to meet in executive session to discuss a personnel matter; the motion was seconded by Krasnansky and carried unanimously. 6. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 7. CITY MANAGER REPORTS None 8. COUNCIL DISCUSSION None 9. CITIZENS' DISCUSSION None 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None City of Seward, Alaska August 20, 1991 City Council Minutes Volume 27, Page 2 11. ADJOURNMENT The meeting was adjourned at 7:35 p.m., and after a short recess, the Council reconvened in executive session to discuss a personnel matter. ~d~4, David L. Hilton, Sr. Mayor (City Seal)."(,, -- '\..... - .' "',r 1, \'iI~.., ,.. City of sewtif/,&l~~ '~(",,:>'+- August 22, 199'1'01:. City Council Minutes Volume 27, Page 2 1. CALL TO ORDER The August 22, 1991, special meeting of the Seward City Council was called to order at 7:35 p.m. by Mayor David 1. Hilton, Sr. 2. OPENING CEREMONY Councilmember Dunham led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David 1. Hilton, Sr., presiding, and Raymond Burgess James Krasnansky Bruce Sieminski Beverly Dunham Michael J. Meehan Leslie Simutis comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Linda S. Murphy, City Clerk 4. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Burgess and carried unanimously. I I I City of Seward, Alaska August 22, 1991 City Council Minutes Volume 27, Page 3 5. SPECIAL ITEM A. Request for executive session to discuss a personnel matter. Meehan moved to meet in executive session to discuss a personnel matter; the motion was seconded by Dunham and carried unanimously. 6. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 7. NEW BUSINESS A. Consideration of solicitation of competitive proposals from interested and qualified law firms to provide legal services to the city of Seward. [Requested by Councilmember Burgess.] Burgess moved to solicit competitive proposals from interested and qualified law firms to provide legal services to the city of Seward; the motion was seconded by Krasnansky. Meehan noted that the Council had met approximately 6 weeks prior to this meeting to review the Peat Marwick report on legal services and had complied with most of the recommendations set forth in the report. He further noted that at that time, the Council had agreed to once again review the attorney's performance in April or May before making a determination regarding the solicitation of bids for legal services. Meehan stated that the Council had expressed a desire at the referenced review to give sufficient time to see how newly instituted procedures worked, and the attorney had agreed to work with the city on establishing uniform billing codes and to make monthly reports of his activities to the Council. He added that he could not support the motion to go out for bids at this time. Krasnansky stated that requesting bids or proposals for legal services would not bind the Council to take action on the bids received. He noted that he was interested in seeing what services were available as well as a legal cost comparison. In response to a question from Dunham, Murphy stated that publication of an RFP would probably cost no more than a few hundred dollars; however, there would be considerable staff and Council time devoted to reviewing the submitted proposals. Dunham noted that any solicited proposals would arrive after the election; therefore, the new Council should be the ones to decide if an RFP were necessary or desirable at this time. She also stated that prior to advertising, the Council should first determine the type of services desired, i.e. staff (in-house) attorney or contracted services from a large firm. Dunham said this decision should be made by the new Council prior to the initiation of any RFP process. City of Seward, Alaska August 22, 1991 City Council Minutes Volume 27, Page 4 Burgess stated that he would like to "get this in motion now" so that the new Council could consider the proposals as soon as possible. Simutis stated that she agreed with Meehan and Dunham that this was not the proper time to issue an RFP. She noted that the reports the Council was now receiving from Arvidson were a step in the right direction to a better relationship with the attorney and his finn. Krasnansky stated that an RFP would not exclude any fonn of legal services and could be structured to request proposals from both potential in-house attorneys as well as those interested in providing contract services. Sieminski concurred. Hilton stated that one RFP could not be used to request both types of services, and he concurred with Dunham's statement that the first order of business should be to decide on the in-house versus contract attorney question. He reminded Council that at least two of its current members would step down in October, and there was the potential for four new members. He questioned the propriety of an outgoing Council deciding such a fundamental issue some six weeks prior to the regular election. Burgess stated that he felt strongly that the city should go forward with an RFP immediately. Krasnansky agreed. He stated that the Council had already assessed a need or interest in seeking proposals. He added that he did not feel the city of Seward would attract qualified applicants for a staff attorney position. He urged the Council to vote to proceed with the RFP process. Meehan disagreed. He stated that seeking proposals at this time would not be doing the new Council any favors. He suggested that the new Council should have an opportunity to work with Arvidson for a while before any decision regarding legal services was made. In response to a comment from Krasnansky that the city had no obligation to act on the proposals once received, Meehan stated that it was unfair to ask law finns to go to the time and expense of preparing a proposal if the city was only interested in assessing the market and had no desire to award a contract. Burgess stated that he failed to see how his proposal to advertise for legal services would bind a new Council. He noted that the city had spent a great deal of money on the Peat Marwick study and should now be willing to fully implement its findings and recommendations. Krasnansky stated that this issue had been before the Council for some time and it should not be postponed just because the election was near. Dunham agreed that something should have been done sooner, but she objected to advertising the RFP at this time. I I I City of Seward, Alaska August 22, 1991 City Council Minutes Volume 27, Page 5 Hilton stated that he had no desire to speculate on the wishes of a new Mayor and Council and added that waiting an additional 30 days would not make a significant difference. He added that the new Council might wish to have the opportunity to draft the RFP to reflect its ideas regarding city legal services. The question was called, and the motion failed with Burgess and Krasnansky voting Yes and Dunham, Hilton, Meehan, Sieminski and Simutis voting No. 8. CITY MANAGER REPORTS None 9. COUNCIL DISCUSSION None 10. CITIZENS' DISCUSSION None 11. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 12. ADJOURNMENT The meeting was adjourned at 7:02 p.m., and after a short recess, the Council reconvened in executive session to discuss a personnel matter. QCu-~.o-? ~ / ~. David 1. Hilton, Sr. Mayor -- , "" .. ' ,'(" OJ....... d,.~l' 1.1.: ,.,. +''"i '-h_" . ...~ / "c. Of p..V'," City- Of sewart Alaska August 26, 1991 City Council Minutes Volume 27, Page 5 1. CALL TO ORDER The August 26, 1991, special meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David 1. Hilton, Sr. Mayor Hilton noted that the employment agreement under consideration could not be placed on the regular meeting agenda because the agenda had closed prior to preparation of the agreement, thus necessitating a special meeting. 2. OPENING CEREMONY City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 6 Councilmember Meehan led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David 1. Hilton, Sr., presiding. and Raymond Burgess NUchaelJ. Meehan Leslie Simutis Beverly Dunham Bruce Sieminski comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk ABSENT was: James Krasnansky (excused) 4. APPROVAL OF SPECIAL MEETING AGENDA Meehan moved to approve the Special Meeting Agenda as presented; the motion was seconded by Burgess and carried unanimously. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING Don Whitman, 111 Barwell Street, stated that approving a new employment agreement with the city manager at a hastily called special meeting "smacked of back door politics". He asked what purpose a six month term served other than "political bed- feathering". He stated that he felt strongly about this issue, and he hoped the Council would vote no on approval of the resolution. Steven Schafer, 2501 Maple Street, spoke in opposition to the proposed city manager contract. He stated that the contract provided an exaggerated amount of severance pay and did not represent prudent management of public funds. Michelle Swartz, Brownell Street, Apartment No. Fl, stated that the proposed contract should have been considered as part of the regular meeting agenda. She alleged that the special meeting was not properly noticed and was probably illegal. I I I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 7 Stan Flugel, 2519 Dimond, spoke in opposition to the proposed employment agreement. He alleged that Schaefermeyer displayed a negative attitude in dealing with major employers in the community, and he objected to a term contract which guaranteed such a large severance package. Brad Snowden, 525 Sixth Avenue, stated that he was curious about what had prompted the proposed contract and the special meeting. He stated that he would reserve comment until the end of the meeting. Iris Darling, 207 Fourth Avenue, questioned the timing of the resolution and asked why it was necessary to call a special meeting for its consideration. She stated that the proposed contract appeared to be a "golden parachute". 6. RESOLUTIONS A. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving an employment agreement with City Manager Darryl Schaefermeyer. Simutis moved to approve Resolution No. 91-103; the motion was seconded by Dunham. Dunham stated that for various reasons, the Council had not conducted its performance review of the City Manager and the City Clerk when they were due prior to the end of the last fiscal year. She stated that she and three other Councilmembers had met one-on-one over the past three weeks to discuss the City Manager's performance and had decided among themselves that he should be dismissed. She stated that their reasons for wanting to terminate the manager's contract had been varied, and she had reconsidered her part in this effort and had so informed Burgess. She stated that she had told Burgess that any further discussions should involve the full Council in an executive session and suggested that one be called for the next meeting. However, Burgess had approached Schaefermeyer and had threatened that he had four votes to fire him if he did not agree to voluntarily resign. Dunham stated that Burgess had made these demands without her knowledge or consent, and she apologized to Schaefermeyer for the part she had played in bringing this about. Dunham added that the Council had at no time, as a body, met with Schaefermeyer to tell him that they were dissatisfied with the performance or to request that he make any changes in his performance. Dunham noted that, lacking this type of direction from the Council, Schaefermeyer was unaware that there was a problem which could result in his termination. Burgess denied making any demands on the city manager or anyone else. He stated that he had talked to the City Manager to warn him and to give him an City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 8 opportunity to "bow out gracefully". He noted that he had first learned of the investigation of the Police Deparbnent "on the street" and stated that the City Manager should have personally informed the Council that there had been a complaint and that he was asking the attorney to conduct an investigation. He objected to spending in excess of $10,000 in attorney fees to pay for an investigation which was not authorized by the Council. Burgess stated that the manager and attorney "seemed to have forgotten who they work for". Sieminski stated that the problem before the Council was the contract, not events which had occurred in the past. In response to a question from Sieminski, Arvidson stated that the contract was legal and in proper form, but he could not advise the Council on whether it should be approved or not. Sieminski stated that he could not support a term contract through next May, and he added that a 9O-day severance package seemed sufficient. Meehan admitted that the timing of this resolution was poor, but he stated that the Council had put the City Manager in a spot "where he could be ineffective". He noted that he would never agree to such a contract for a new city manager; however, Schaefermeyer had been a good and loyal employee of the city for the past fifteen years, and over that time the good he had done for the city far out-weighed the bad. Meehan noted that the city had employed four separate city managers over the past 10 years. Following Johnson's departure, it had taken some six months to find his replacement. When Garzini left, the city spent nine months finding his replacement. During these intervals, Schaefermeyer had run the city and had run it well. Meehan added that during Royle's term as city manager, it was actually Schaefermeyer who ran the city. He added that he was very comfortable with the proposed contract since it not only gave Schaefermeyer some needed job security, but it would allow the incoming Council time to work with him for a period of time before deciding what the Council wanted to do. Burgess noted that former Mayor Don Cripps had asked that he read his comments objecting to the proposed contract. Simutis stated that, had Burgess' plans come to fruition, the new Council would have been seated without a city manager on staff. She stated that she did not necessarily feel that a change in administration was not needed, but she did not agree with the manner in which Burgess had approached this issue. Simutis stated that she was offended by his actions and added that the Council was at fault for not letting the manager know of its dissatisfaction with his job performance. She stated that she would support the contract as proposed. Dunham stated that she and the other three Councilmembers who attempted to oust the city manager had acted improperly. She objected to public character assassinations and asked who would manage the city during the interim if Schaefermeyer were dismissed immediately. Dunham also stated that Schaefermeyer was being blamed for actions that began under Johnson and Garzini. She supported the proposed new I I I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 9 contract, stating that Schaefermeyer could not manage the city and its employees effectively if he were constantly worried about "when the plug would be pulled". Hilton stated that the issue before the Council was much more complex than the public thought. He stated that it frightened him to see how easily the community could be "whipped into a frenzy" without having the facts. He asked why the town was so negative and so ready to see each others faults rather than their positive traits. Hilton denied that the special meeting was called in order to act outside of the public eye. He noted that he had called the meeting for 7:00 p.m. just prior to the regular meeting in order to give as many citizens as possible the opportunity to attend and participate in the public process. He added that, judging from the turn-out, the public was very well informed about the time and subject of the meeting. Hilton stated that Schaefermeyer was not a perfect manager, but he had dedicated himself to the community for a number of years, he was an honest and competent man, and he had always acted with the best interests of the city of Seward in mind. He noted that it would not appear to be prudent to dismiss at the drop of a hat someone who had worked for the city for more than 15 years. The question was called, and Resolution No. 91-103 was approved with five yes votes and Sieminski voting no. Burgess moved to reconsider action at the second meeting in October; the motion was seconded by Sieminski. Arvidson noted a provision in Robert's Rules of Order which stated that the question of reconsideration was in order if the action being reconsidered was in order. Murphy added that the motion itself was improper. She stated that there first should be a motion and second to reconsider. This could then be followed by a motion to postpone the reconsideration to a time certain. The motion to postpone would require a vote immediately and, if approved, the vote to reconsider would be scheduled for the appropriate meeting. Arvidson disagreed with Murphy's interpretation of the rules. The question was called on the motion to reconsider, and the motion failed with Burgess and Sieminski voting yes and Dunham, Hilton, Meehan and Simutis voting no. 7. CITY MANAGER REPORTS None 8. COUNCIL DISCUSSION None 9. CITIZENS' DISCUSSION Don Whitman, 111 Barwell Street, disagreed with the action taken by the Council. City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 10 Michelle Swartz, Bear Mountain Apartments, No. F1, stated that she did not agree with the actions taken by the Council and would have preferred Schaefermeyer's old contract. Steven Schafer, 2501 Maple Street, stated that he disagreed with Arvidson's interpretation of Robert's Rules. Jim Hendrickson, 605 Sixth, asked Dunham to clarify a statement she had made concerning possible problems at Chugach Forest Products. Dunham apologized for the comments and stated that she was merely repeating a rumor she had heard. Stan Flugel, 2519 Dimond, asked when it would be proper to dismiss a city manager when it would not bind a future Council. Brad Snowden, 525 Sixth Avenue, stated that he was appalled at how quickly people were prepared to "lob heads" when there was a perceived problem. He stated that Schaefermeyer was a man with whom the community could work, and he did not deserve this kind of treatment. He chided the Council for conducting an evaluation of the manager's performance in a public session rather than in executive session and for failing to let Schaefermeyer know that there were concerns about his performance prior to this action. Willard Dunham, Alder and Dimond, stated that he had been an active participant in city affairs for 40 years, and he found it appalling that a man as dedicated and honest as Schaefermeyer would be publicly chastised as he was at this meeting. He noted that the public comments appeared to have been orchestrated and he wondered who was behind this display. He criticized the Council for airing its dirty linen in public and stated that he was delighted that the contract had been approved. Chris Gates, Johnston Road, noted that every action which came before the Council had constituencies for and against it. He stated that he had not heard any specific charges against the city manager which would warrant such anger from some members of the Council and he asked what the staff could do to avoid being the brunt of this anger in the future. Gene Skinner, 418 Second Avenue, stated that he had witnessed a similar display when a local teacher was publicly castigated. He stated that he was against those tactics both then and now. He suggested that the Council meet with the manager in an attempt to iron out the difficulties that appeared to exist. Ron Long, Camelot Subdivision, stated that it was difficult to believe that things had gone this far without some discussion between the manager and the Council regarding job performance problems. He objected to Hilton's remarks about some members of the public "coming with blood in their eyes". He noted that the best way to be informed was to attend meetings and participate in the public process. 1 I. I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 11 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Hilton agreed that Long's point was well taken and he commended those citizens who had attended the meeting to become better informed. Burgess stated that he was opposed to the action taken by the Council. He stated that he had approached Schaefermeyer privately and quietly and was not the one responsible for bringing this issue to the full body for a public discussion. Dunham stated that the responsibility for this meeting rested solely with the four Councilmembers who had attempted to fire Schaefermeyer and who put him in a position of feeling that he had to protect himself. 11. ADJOURNMENT The meeting was adjourned at 8:21 p.m. .' City Council Minutes Volume 27, Page 11 ~'J~d~ ~, / David 1. Hilton, Sr. Mayor 1. CALL TO ORDER The August 26, 1991, regular meeting of the Seward City Council was called to order at 8:30 p.m. by Mayor David 1. Hilton, Sr. 2. OPENING CEREMONY Councilmember Burgess led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David 1. Hilton, Sr., presiding, and Raymond Burgess Michael J. Meehan Leslie Simutis Beverly Dunham Bruce Sieminski City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 12 comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk ABSENT was: James A. Krasnansky (Excused) SPECIAL ITEMS Hilton presented proclamations to Troy Thompson, Tim Cabana, Jeff Cabana, Chris Dobty, and Light Brickley in recognition of their heroic actions in rescuing a family of four following a boating accident. 4. APPROVAL OF MINUTES Meehan moved to approve the August 12, 1991, regular meeting minutes as presented; the motion was seconded by Burgess and carried by unanimous vote. 5. APPROVAL OF REGULAR MEETING AGENDA Meehan moved to approve the Regular Meeting Agenda as presented; the motion was seconded by Simutis. Schaefermeyer requested the deletion of Resolution No. 91-101 and No. 91-094 from the regular meeting agenda. Dunham moved to meet in executive session immediately following the close of regular business in order to conduct the city clerk's employee evaluation; the motion was seconded by Simutis and carried unanimously. Simutis moved to meet in executive session immediately following the close of regular business in order to discuss a personnel matter. The question was called, and the agenda was approved as amended by unanimous consent. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report of the August 20, 1991, assembly meeting. I I I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 13 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 8. APPROVAL OF CONSENT CALENDAR Sieminski requested that Item D (attorney bill) be moved to the regular meeting agenda. Meehan moved to approve the Consent Calendar as amended; the motion was seconded by Simutis and carried by unanimous vote. The following actions were taken: A. Resolution No. 91-087, approving an agreement with the KPB School District (C91-428) and accepting a grant (G91-073) for the Community Schools Program, was approved; B. Resolution No. 91-099, awarding a contract (C91-429) to remove and dispose of sludge from Lowell Point Sewage Treatment Plant and appropriating funds, was approved; C. Resolution No. 91-100, authorizing the purchase of certain equipment (W. S. Darly - Air Compressor, and Amkus West - Rescue Equipment) for the Fire Department (C91-430), was approved; D. May 1991 invoice from Perkins Coie was moved to the regular meeting agenda; and E. August 20, 1991, memorandum from Schaefermeyer regarding handicap access was noted for information. 9. PUBLIC HEARINGS None 10. PRESENTATIONS WITH PRIOR NOTICE ONLY None 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, creating Seward City Code Section 9.05.150, prohibit- ing and penalizing cruelty to animals. City of Seward, Aloska August 26, 1991 City Council Minutes Volume 27, Page 14 Simutis moved to introduce Ordinance No. 656; the motion was seconded by Burgess and carried by unanimous vote. Public hearing was scheduled for September 9, 1991. B. Ordinances for Public Hearing & Enactment 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, relating to the appoinbnent of community hospital board members and providing for Council representation on the Community Hospital Board. HIL TON PASSED THE GAVEL TO DUNHAM AND DECLARED HIS CONFLICT OF INTEREST WITH REGARDS TO THIS AGENDA ITEM. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. Simutis moved to approve Ordinance No. 655 (Substitute); the motion was seconded by Meehan. Simutis noted that the Community Hospital Board had reviewed the two versions of the ordinance and had unanimously endorsed the substitute ordinance and had requested that the board be reduced to seven members rather than nine. Simutis moved to amend the ordinance by replacing the word "nine" with "seven"; the motion was seconded by Meehan and carried with Burgess, Dunham, Meehan, Sieminski and Simutis voting yes and Hilton abstaining. The question was called on the main motion, and Ordinance No. 655 (Substitute) was approved as amended with five yes votes and Hilton abstaining. C. Resolutions 1. Resolution No. 91-094 (approving Task Order No.2 to the Land Field Services Contract) was deleted from the agenda. Schaefenneyer explained that the resolution approving the original contract had given the administration the authority to approve this Task Order. 2. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: I I I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 15 A resolution of the City Council of the City of Seward, Alaska, providing for the submission to the qualified voters of the city the question of the incurring of indebtedness and the issuance of $5,600,000 of general obligation bonds of the city to pay the cost of planning, designing, constructing, and acquiring land for road, electrical, water, sewer, street and sidewalk capital improvements in local improvement districts or service areas hereafter to be created in the city, at the election to be held for that purpose in the city of Seward, Alaska, on October 1, 1991. Simutis moved to approve Resolution No. 91-098; the motion was seconded by Burgess. Simutis moved to table Resolution No. 91-098; the motion was seconded by Meehan and carried by unanimous vote. 3. Resolution No. 91-101 (awarding a contract for replacement of oil container tanks at the Ft. Raymond Substation)wis deleted from the agenda. 4. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, authorizing the city's participation in the state of Alaska's Public Employees' Retirement System Retirement Incentive Program. Sieminski moved to approve Resolution No. 91-102; the motion was seconded by Burgess. In response to a question from Meehan, Hilton ruled that, although both Meehan and Bencardino were both mayoral candidates, Meehan had no conflict of interest with regards to this question. Hilton asked why the resolution reflected a cost figure of $108,000 while the supporting memorandum referred to a potential cost to the city of $35,000. Schaefer- meyer stated that PERS required inclusion of the cost to the city if all eligible employees took advantage of the RIP program. However, Bencardino was the only one of the eligible employees who had filed the necessary paperwork and only the figures associated with his retirement were included in the memorandum. In response to a further question from Hilton, Gifford stated that the intent of the legislation authorizing the RIP program was to save public dollars by reducing personnel costs. He stated that this would be assured with a regular line employee who would City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 16 presumably retire at the top of his range and who would be replaced with an entry-level employee at the bottom of the pay range. However, with a key deparbnent head position like the Chief of Police, it was impossible to guess what the possible savings or costs to the city would be since this would be determined by the starting salary of Bencardino's replacement. In putting together the agreement with the state, the city was expected to supply its best guess of what this figure would be. Hilton stated that he did not believe it would be possible for the city to recruit a qualified Chief of Police for $51- 52,000. In response to a question from Dunham, Schaefermeyer stated that with shift differential and overtime, it would be possible that a new Chief of Police hired at the entry level for this position would make less than some of this staff. Burgess stated that approval of the resolution was necessary to allow Chief Bencardino to retire under the RIP program. Hilton noted that Bencardino was eligible to retire with or without the RIP; however, this program would increase his monthly retirement benefit. Responding to a question from Meehan, Schaefermeyer stated that based on what other chiefs were making in similar sized municipalities he believed the city would be starting a new chief of police at approximately $60,000 per year. If this were the case, the cost of the RIP program to the city would be $23-35,000. Simutis stated that when this issue first surfaced she was not aware of the potential cost to the city. She noted that a retirement bonus was one thing, but she did not think it was proper to approve the RIP under these circumstances. Schaefermeyer noted that the PERS/RIP program allowed the city the option to require that the retiring employee pay the city's share of the RIP. Dunham stated that Bencardino could not remain on the city payroll if he was elected Mayor, and she hated to see it cost him $35,000 to run for office. Burgess stated that it was his understanding that Bencardino had been told that he would be allowed to retire in this manner; however, things changed once he filed for office. Schaefermeyer stated that no deals were made and that he had indicated all along that the proposal would have to go before Council. Once Bencardino filed, however, he (Schaefermeyer) felt uncomfortable recommending approval of the agreement knowing that it might appear improper for the Council to spend taxpayers dollars which would increase the retirement benefit for a candidate for public office. Sieminski moved to postpone action on Resolution No. 91-102 until the September 9, 1991, meeting, with instructions to the administration to discuss the I I I City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 17 possibility of sharing the cost of the RIP with Bencardino; the motion was seconded by Burgess and carried unanimously. 12. UNFINISHED BUSINESS A. Old Clinic Building. Schaefermeyer noted that Council had asked that this item come back for discussion at this meeting; however, he was still unclear as to the direction Council wished to proceed. There was a consensus of the Council to: 1. Repair the roof immediately to forestall further damage to the building; and 2. Seek direction from the Community Hospital Board regarding future use of the building. 13. NEW BUSINESS A. May 1991 invoice from Perkins Coie for legal services totalling $11,645.48. Simutis moved to approve payment of the Perkins Coie May, 1991, invoice totalling $11,645.48; the motion was seconded by Dunham. Burgess asked the status of the pending charge for the Police Department investigation. Arvidson stated that he had just today received Schaefermeyer's letter and had not yet had time to review it. The question was called, and the motion was approved with five yes votes and Sieminski voting no. 14. CITY MANAGER REPORTS Schaefermeyer noted the memorandum regarding the status of a problem which was developing at the Sewage Treatment Lagoon at Lowell Point. He also noted that he was endeavoring to deal with the concerns raised about the placement of street lights on the newly installed sidewalks and was continuing discussions with the design engineer about possible solutions. Schaefermeyer also thanked the Council for its vote of confidence in approving his employment agreement. He also thanked Yanez and the department heads who had stood behind him during the past few weeks. 15. COUNCIL DISCUSSION Simutis thanked Bagierek for the Fiscal Year 1991 year end financial report. City of Seward, Alaska August 26, 1991 City Council Minutes Volume 27, Page 18 Sieminski asked for a status report on the paving of the bike path to the school. Schaefermeyer stated that the contractor was due back in town after Labor Day to complete this project. Sieminski also asked about the status of the security door to the administrative offices. Yanez stated that maintenance personnel were looking for a solution to this problem. Sieminski asked that it be taken care of during the coming week. 16. CITIZENS' DISCUSSION Willard Dunham, Forest Acres, stated that the Trade Board had met with Ron Garzini and would be working with him on the prison expansion project. He noted that the Board was spear-heading a Task Force of local citizens to address this issue and he invited everyone to attend its next meeting at Noon on Wednesday at the Harbor Dinner Club. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 18. ADJOURNMENT The meeting was adjourned at 10:10 p.m., and after a short recess, the Council reconvened in executive session to review the city clerk's performance evaluation and to discuss a personnel matter. ([J~or ~ d-t / David L. Hilton, Sr. Mayor -- . ...."~ ~'t,"" <.f'. ~t' 1, \~,"'....'" .' . ........ ... c:" OF p..\.r I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 19 1. CALL TO ORDER The September 9,1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David L. Hilton, Sr. 2. OPENING CEREMONY Councilmember Burgess led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David L. Hilton, Sr., presiding, and Raymond Burgess Bruce Sieminski James Krasnansky Leslie Simutis comprising a quorum of the Councili and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Patricia Jones, Deputy City Clerk ABSENT were: Beverly Dunham (excused). Michael Meehan (excused). 4. APPROVAL OF MINUTES (Not Available) 5. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the Regular Meeting Agenda; the motion was seconded by Burgess. The following items were added to the agenda at the request of City Manager Schaefermeyer. Resolutions 3. Proposed Resolution No. 91-110, supporting the construction of Exit Glacier Road with Public Lands Highway Program Funds 4. Proposed Resolution No. 91-111, appropriating funds and awarding a contract for the purchase of oil-fired boilers for Seward General Hospital without full utilization of the competitive procurement procedures City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 20 5. Proposed Resolution No. 91-112, appropriating funds to the water/sewer fund to meet current expenditures relevant to the failure of the Lowell Point Sewage Treatment Lagoon New Business D. Odor related to the Seward Fisheries Fish Meal Plant (requested by Councilmember Sieminski) E. Dimond Boulevard Relocation (requested by Councilmember Burgess) The question was called, and the agenda was approved as amended by unanimous vote. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present and no report was given. 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 8. APPROVAL OF CONSENT CALENDAR Hilton stated that Item A would be deleted from the agenda since the city clerk was at a training session in Juneau and could not be present. He noted that this item would be brought before the Council at the September 23, 1991, meeting. Krasnansky moved to approve the Consent Calendar as amended; the motion was seconded by Simutis and carried by unanimous vote. The following actions were taken: A. Resolution No. 91-105, approving an employment agreement with the city clerk, was deleted from the agendai B. Resolution No. 91-106, establishing a capital project fund for constructing a sprinkler system for the Seward Correctional Facility, was approved; C. Resolution No. 91-107, appropriating city funds for the operation of a community schools program for the 1990-91 school year, was approved; D. Resolution No. 91-108, awarding a contract (C91-432) with Metco for repair of 1989 flood damage to Lowell Point Road, was approved; I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 21 E. Resolution No. 91-109, awarding a contract (C91-433) with International Steel Erectors for prison roof repair, was approvedi F. June 1991 invoice from Perkins Coie for legal services totalling $17,185.96, was approved for payment; G. Change Order No. 11 to the Summit Paving contract No. 411 to replace 55 existing water service key boxes with oversized key boxes and to reduce the price of Item AlO on the cost proposal to overlay Adams and Washington Streets (Change Order No. 7), for a total contract credit of $13,873.60, was noted for informationi and H. August 21, 1991, projects status report as submitted by Port Marketing Director Gates was noted for information. 9. PUBLIC HEARINGS A. Notice of public hearing as posted and published as required by law regarding the proposed acquisition of Lots 6, 7, 8, and 9, Folz Subdivision, located within Section 27 TIN Rl W SM, on the west side of the Seward Highway at Mile 3.5, consisting of approximately 1.84 acres to be utilized for the construction of an electrical substation, was noted, and the public hearing was opened. No one spoke in order to be heard and the public hearing was closed. 10. PRESENTATIONS WITH PRIOR NOTICE ONLY None. 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction None. B. Ordinances for Public Hearing & Enactment 1. Copies having been made available to the public, Hilton noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, creating Seward City Code 19.05.150, prohibiting and penalizing cruelty to animals. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one spoke in order to be heard and the public hearing was closed. Simutis moved to enact Ordinance No. 656; the motion was seconded by Burgess and carried unanimously. City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 22 C. Resolutions 1. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, authorizing the city's participation in the State of Alaska's Public Employees' Retirement System Retirement Incentive Program. Hilton noted that a motion to approve the resolution was on the floor, having been postponed from the August 26th meeting. Burgess stated that other city employees had utilized this program in the past and that it was a good idea to allow other employees to retire in this manner. Schaefermeyer replied that several hospital and city employees had taken advantage of the early retirement. Krasnansky asked about the cost of hiring a new police chief. Schaefermeyer replied that under the city code, a new police chief could be hired for an amount not to exceed $54,267 annually. If a police chief could not be found at this rate, a higher salary option could be approved by the Council. Hilton asked if any applications had been received for the position. Schaefermeyer replied that the position was being offered city-wide first as required by code and he had received one application. Hilton stated that the city could recognize some savings by implementing this program if a police chief were hired at the salary stated. He noted that he felt comfortable with the provision of a salary limit. The question was called and Resolution No. 91-102was approved by unanimous vote. 2. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, authorizing the acquisition of private property located within the Folz Subdivision for construction of an electrical substation. Simutis moved to approve Resolution No. 91-104; the motion was seconded by Sieminski. I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 23 Sieminski asked if the buildings on the property would be utilized. Schaefermeyer replied that the buildings would not be used, however, the buildings were included in the purchase of the property. Sieminski stated that he would like to see the seller remove the buildings and perform a soils test on the property. He preferred that the city purchase a vacant parcel of land. Burgess asked what the city planned to do with the property. Utility Engineer Calvert stated that the city currently uses a 69kv transmission line which runs from Ft. Raymond Substation to Spring Creek. He noted that the original plan was to build a 115kv line to Ft. Raymond Substation and in order to do that a 69kv line was needed between Ft. Raymond and Nash Road to serve Spring Creek. The problem encountered was that two high voltage lines would be installed on one set of poles in an area close to the airport. He explained that the line would go directly over the top of the house on the subject property and because of that, the city would need to purchase that parcel. Calvert stated that the city would utilize the piece of land to build a substation, and the first phase of the line construction would begin at the property and end at Milepost 8. He noted that currently the city leases a pole yard for storage and part of this land could be utilized for storage of those poles. Burgess expressed concern about how wet the area becomes during the rainy season. Calvert stated that some fill would be necessary to alleviate this problem. He added that the possibility of soil contamination in the area was very low. Hilton asked if research on the history of the parcel had been completed. Schaefermeyer replied that the residence had been there a long time, since before the 64 earthquake. He noted that before the stables existed, a fish business existed for custom packed fish. He stated that the majority of the time the property had been used as a single family residence. Arvidson stated that the purchase agreement was the document before Council at this time. He noted that a number of issues would need to be resolved before the resolution approving the agreement became effective in thirty days. He informed the Council that the agreement could be approved subject to an environmental study before closing of the final documents. Sieminski suggested including the requirement for an environmental study in the agreement. Arvidson suggested amending the purchase agreement to cover the environmental assessment. City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 24 Krasnansky moved to amend the purchase agreement attached to Resolution No. 91-104 to include an environmental study of the soil to be paid by the city; the motion was seconded by Simutis. The question was called and the amendment was approved by unanimous vote. The question was called on the main motion and Resolution No. 91-104 was approved unanimously. 3. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, reaffirming support for the reconstruction of Exit Glacier Road and encouraging the Kenai Peninsula Borough to assume road maintenance responsibilities for the current mile 0 - 1.5 alignment Krasnansky moved to approve Resolution No. 91-110; the motion was seconded by Burgess. Hilton stated that he had met Borough Mayor Gilman in Soldotna. He noted that the Borough was interested in pursuing this project. He reported that Gilman would be seeking approval of the assembly to maintain one and one half miles of the existing road. The question was called and Resolution No. 91-110 was approved by unanimous vote. 4. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, appropriating funds and awarding a contract (C91- 435) to Seward Plumbing and Heating for the purchase oil- fired boilers for Seward General Hospital without full utilization of the competitive procurement procedures Hilton asked if the Council objected to the vote of Krasnansky and himself on this issue. There was no objection. Hilton ruled that no conflict existed since he and Krasnansky were not in a position of self enrichment. Simutis moved to approve Resolution No. 91-111; the motion was seconded by Burgess. Schaefermeyer stated that there was a total failure of both boiler units at the hospital. He noted that there were two recent instances where the hospital had no heat and no hot water, and it was a situation which needed to be remedied immediately. He noted that the hospital staff had worked with Seward Plumbing & Heating to remedy I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 25 the problem. The City requested a proposal on the cost of the boilers which would meet current codes and standards from Seward Plumbing and Heating. He stated that the City had priced the boilers elsewhere and found that the local price was in line and actually better than some of the other quotes received. Schaefermeyer asked the Council to approve the purchase to include a five percent contingency based on an emergency without utilizing the full bid procedure. He noted that these high efficiency units would be installed in a new room and there would be no need to remove the old boilers. Hilton added that the last estimate was that the boilers would reduce fuel oil consumption three fold. He stated that the hospital would realize a savings of the entire cost of the new boilers in three to four years. Burgess asked why the old units would not be removed. Schaefermeyer replied that with the possibility of construction of a new hospital in the future, there was no reason to spend the time and money to remove the old units. The question was called and Resolution No. 91-111 was approved by unanimous consent. 5. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A resolution of the City Council of the City of Seward, Alaska, appropriating funds to the water/sewer fund to meet current expenditures relevant to the failure of the Lowell Point Sewage Treatment Lagoon. Simutis moved to approve Resolution No. 91-112; the motion was seconded by Krasnansky. Schaefermeyer explained that the city had suffered complete failure of the plant two weeks ago. He noted that thousands of dollars in costs had been incurred in labor, special services, consumer goods and pump rentals. He stated that a capital project account had been set up to account for expenses. He added that since the water/sewer budget had no contingency to deal with the occurrence being experienced, there was a need to appropriate $50,000 to a special fund so that funds existed to meet expenditures. He stated that he would endeavor to keep expenses down and continue to adhere to the Code as to how the funds would be used. Schaefermeyer stated that there was 35 inches of effluent left in the sewage pond and the city crew was still pumping. He noted that once the lagoon was empty, it could be determined which repairs would be needed. He added that the funds would be utilized for drainage, to obtain an analysis of the sludge and to determine the extent of the damage and ascertain what repairs and solutions might be needed. He informed the City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 26 Council that there would be more costs involved at a later date which would exceed the initial $50,000 appropriation. Krasnansky asked if any state or federal funds were available for this project. Schaefermeyer replied that ultimately there might be some state or federal funds available to the city. After speaking to a representative of the State Division of Emergency Services, it was suggested that the city delay pursuing a declaration of disaster until a full assessment could be made of the situation and possibly the Governor could be convinced that Seward actually had a disaster. He noted that he was not encouraged by the past record in that the state had not responded to other communities who had experience similar disasters. Schaefermeyer stated that he was exploring insurance coverage for this problem. He noted that most likely there would be loan programs available to help repair the plant. He added that he had also requested the city's financial advisor to explore with the bond counsel the availability of disaster bonds should it be necessary. He stated that the City Charter empowers the Council to sell disaster bonds in order to meet a disaster of the type the city was facing. The question was called and Resolution No. 91-112 was approved unanimously. 12. UNFINISHED BUSINESS A. Perkins Coie Invoice totalling $10.469.77 for legal services regarding a Police Department Internal Investigation. [Item placed on agenda at reJ1uest of Councilmember Burgess] Burgess asked if the city manager and the city attorney had reviewed this invoice. Arvidson replied that he had discussed the invoice with the city manager and revisions on some specific items were being taken care of by the billing office. He noted that another question on the entire bill had arisen concerning the billing for the Chugach Alaska Corporation payment agreement and the Chugach Alaska Corporation bankruptcy case. He stated that these two items had been lumped together but at the request of the city manager, Arvidson had requested that the billing office split the charges. He noted that the corrected billing would be ready by the next meeting. In answer to a question from Sieminski, Arvidson stated that the hourly rates were different depending on who was doing the work. He noted that the city manager had requested that the research time on the investigation be written off and he had complied with that request. 13. NEW BUSINESS A. Claim for damages totalling $55.75. plus possible additional medical bills. as filed by Donna Odden. I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 27 Burgess moved to refer the Odden claim to the city's insurance carrier for investigation and disposition; the motion was seconded by Simutis and carried by unanimous vote. B. Claim for damages totalling $700.00 as filed by E. Z. Marchant. Burgess moved to refer the Marchant claim to the city's insurance carrier for investigation and disposition; the motion was seconded by Sieminski and carried by unanimous vote. C. Request by Milos Nikolic for extension of the lease term on Lot 6. Block L Marina Subdivision (Lease No. RE-040). Sieminski moved to authorize the administration to proceed with a lease extension as requested by Milos Nikolic; the motion was seconded by Burgess. Schaefermeyer stated that the bank had indicated that it would require a lease term of at least 15 years in order to amortize the mortgage. Sieminski asked when an appraisal of the property would be done. Schaefermeyer answered that the city was working towards putting aU of the leases on a 5 year cycle so that all appraisals would be done at the same time. He stated that he would work on trying to get this property included in that cycle. He stated that the administration was basically seeking direction to move forward with lease negotiations at this time. The question was called, and the motion carried by unanimous vote. D. Seward Fisheries meal plant odor. Sieminski stated that a number of people had complained to him that the odor at the fish meal plant needed to be taken care of since it was especially bad this year. Schaefermeyer stated that he had also received several complaints and that he had discussed the situation with John Woodruff and John Baird, managers at Seward Fisheries. He explained that the odor was emanating from a glut of pink salmon product which arrived at the plant in a decayed state. He noted that the plant had received more product than it could handle this year. He reported that Seward Fisheries had been grinding and discharging much of the extra product under a permit issued by the Environmental Protection Agency. He stated that when he requested that the plant control the odor when so much product arrived, he was informed by Seward Fisheries that there was no way to control the odor. Schaefermeyer stated that the fishery could be sited for obnoxious odors under the City's Code of Ordinances. He noted that imposing a fine would not take care of the problem of controlling the odor. He stated City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 28 that short of desisting operation of the meal plant, there was not a surefire way of controlling the odor at all times. Hilton stated that maybe the fisheries should not accept an excessive amount of the product if it could not handle it quickly. Schaefermeyer replied that he did not know how Seward Fisheries controlled the amount and quality of product it received. Hilton suggested that Seward Fisheries prepare a report and management plan for the fish meal plant. Sieminski asked the the city manager to write a letter stating the community sentiment regarding the odor. Krasnansky asked what procedure could be taken under the nuisance code to take care of the problem. Schaefermeyer replied that a summary action could be taken if public health and safety were endangered. Under this process, immediate enforcement could be taken without going through the normal noticing provisions. He noted that normally someone would be given so many weeks to respond in an appeal to the city council. He stated that there were about six pages of the City Code setting forth the process for abatement of nuisances. In answer to a request from the Council, Schaefermeyer stated that he would contact Seward Fisheries and ask it to remedy the situation. E. Dimond Blvd Relocation. Burgess stated that a new water line had been installed at the Borough landfill facility along the platted right of way where the road should exist. He noted that for years the actual road encroached onto private property owned by AI Schafer. He stated that Mr. Schafer had approached the city and offered to haul fill and spread it at no charge to relocate the road to its proper place. Burgess stated that he was concerned that this project be completed because an underground electric line was scheduled to be installed four feet underground, and if the fill were spread, the line would ultimately be buried much deeper than four feet. Burgess added that the fill should be spread prior to burial of the electrical line. Schaefermeyer stated that most of the communications had been between Schafer and the Borough Planning and Public Works departments. He stated that the Borough was concerned with the proposed alignment of the road and the construction costs. He also noted that the city was responsible for maintenance since it was a city road. He I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 29 further noted that the Borough, City and Mr. Schafer would be meeting to resolve this issue. Al Schafer, Nash Road, Afognak Logging, stated that he was the owner of the remainder of Forest Acres Subdivision. He stated that he had spoken with Tex Ainsworth who stated that the city desired to keep the road in its current location. Schafer stated that he would haul the gravel for relocation of the road at no charge if the city would spread it. When the city replied that it did not have the funds to spread the gravel, he offered to spread it also. He noted that Ken Brown from the Borough Public Works Dept. had called him and stated that he would like to work the situation out. He suggested that if the Borough wanted to keep the road at its present location, it could purchase or lease the lot. If not, the road should be located where it belonged. He stated that he was awaiting a reply from the Borough. The Council directed Schaefermeyer to set up a meeting between the Borough, City and Mr. Schafer on this issue. RECESS: The meeting was recessed at 9:05 p.m. and reconvened at 9:18 p.m. 14. CITY MANAGER REPORTS Utility Engineer Calvert reported on the sewage treatment plant failure. He stated that three feet of effluent had been lost out of the plant before it was discovered that there was a leak in the liner. He stated that DEC, EP A and the proper authorities had then been notified. The first concern was for the safety of the citizens at Lowell Point. He noted that the city had arranged for drinking water for the Lowell Point residents until it could be determined if their wells were safe to use. He stated that the city was still draining the remaining three feet of effluent out of the pond. He reported that DEC had recently lifted restrictions on the domestic wells with the exception of the Jones well and the Lowell Point Campground although daily testing showed no contamination of any wells in the area. He noted that there were breaks found in the pipe in cell number one and there were also several bubbles in the liner of the pond. He stated that there were also problems with the aeration system. He added that consultants would be assessing and testing the sludge. The city would then devise a plan, approved by the EPA, to repair the liner. He stated that the cost for repairs could range from $200,000 to a complete rebuild of the plant. Sieminski asked if temporary help would be hired to relieve city personnel. Calvert stated that once the pond was drained, city involvement would be minimal. He noted that repair of the liner and removal of the sludge would be contracted out. Burgess stated that he was disappointed that the city did not hire a specialist with the equipment to pump out the pond. He stated that he was concerned about the treatment of the Lowell Point residents by the city. He felt that the city should have been more responsive to the residents during this crisis. City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 30 Calvert replied that the city worked diligently to deal with the situation in the best way possible given what the city could obtain in equipment and labor. Schaefermeyer added that the city was responsive and one priority given was to obtain EP A approval of the release of the wells in the area. Calvert thanked Tex Ainsworth and the public works crew for working under unpleasant conditions. Chris Gates, Port Marketing Director, gave an update on the payment agreement with Chugach Forest Products which was in effect for 90 days. He noted that the agreement would continue if neither party asked for termination. He stated that Chugach had requested an adjustment to the payment agreement for this second 90 days. Gates reported that damage done to the dock by Chugach in 1989 had yet to be repaired. He stated that he had asked them to take the responsibility and repair the damage. Gates also mentioned that he had returned from Vancouver, British Columbia, where he had attended a cruise ship conference. He stated that Seward was the only port in the gulf of Alaska working with the cruise lines in Vancouver. He reported that the cruise ship industry was prospering and Alaska was now the third largest cruise ship destination in the world. Gates reported that he was monitoring the proposed Fire Island project. He stated that the Governor wanted to make Fire Island work. He added that Seward would continue to work to ensure that its port was utilized to its full potential. Gates asked the Council for its input on the current port marketing projects list for Seward. Burgess asked what the appraisal was on the Seward Ship's Chandlery lease at SMIC. Schaefermeyer replied that the appraisal was for $50,000 per year. He stated that Mr. Pruitt had a right under the lease to obtain his own appraisal and if it was not within ten percent of the city obtained appraisal, both parties would acquire a third appraisal. Burgess noted that Mr. Pruitt was supposed to have begun paying on his lease in October of 1990. Schaefermeyer stated that the appraisal was to have been done then but it was actually contracted for in the spring of 1991. Burgess asked why the city was one year behind. Schaefermeyer replied that the city had failed to properly notice and interpret the lease as to the time frame in obtaining the appraisal. Burgess asked what the city was going to do about collecting the back payments. Schaefermeyer stated that there was nothing that could be done. Schaefermeyer reported that the calendar year to date campground revenue totalled $110,000 which was 100% over the forecasted revenue. He commended Parks I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 31 and Recreation Director Chaffin and her staff for establishing a system which worked so well for collections of campground fees. Hilton added that he wanted to also commend Parks and Recreation on the management of the campgrounds and the cleanliness of the area this year. Schaefermey- er noted that all of the revenue obtained from operations of the campground and Parks and Recreation programs was put back into the Parks and Recreation budget for operation of the department. Schaefermeyer reported on the outcome of a civil case which the city's insurance appointed counsel had defended concerning the allegations of an inmate who was injured when he fell from the bunk in the city jail. He stated that the City prevailed on all aspects of the case. Sieminski asked when the piling work at the Fourth Avenue dock would be completed. Singleton replied that the work would be completed as soon as public works was finished with its work at the Sewage Lagoon. He noted that the work would be done in house. 15. COUNCIL DISCUSSION Krasnansky asked for clarification of Charter Provision 5.3A and how it related to the approval of the City Manager's contract. Arvidson read the provision which states "The city manager, the city clerk and the city attorney shall be appointed by the council. They shall hold office for indefinite terms at the pleasure of the council." Arvidson cited related Code Section 2.20.010. He stated that the contract which the Council had approved with the city manager provided a termination date of May 31,1992. He explained that the city manager had the right to resign upon giving notice at any time for any reason or no reason and the Council also had the right to terminate the contract for any reason or no stated reason. He noted that the contract was indefinite in terms of the ability to terminate. Krasnansky thanked Arvidson for the explanation. He stated that he had resigned from the hospital effective September 17. Simutis requested that the city pur.,ue an additional boat launch space at the harbor. Schaefermeyer replied that the city would speak to the State Department of Transportation about utilizing the grid area east of Seward Fisheries for a possible one lane ramp. He noted that dredging, permitting and other work would be needed to pursue the project. Simutis reported on the hospital board meeting held September 3. She stated that the contract with Dr. Lewis was approved for clinic space at the clinic with the hospital's participation. She noted that the Board position on use of the old clinic building was that City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 32 the building should be utilized with first priority being expansion of hospital space into the building. She added that Brim would be looking at space requirements at the hospital and review the specific needs of all of the departments. She noted that the board would meet the third Tuesday of each month in work sessions to reduce the number of committee meetings held each month. Simutis also noted that there were two vacancies upcoming on the hospital board and encouraged the citizens of the Seward area to become involved. Burgess asked about the status of the roof repair on the clinic. Schaefermeyer replied that no bids were received on the roof repair of the clinic or the library so the work would be re-bid. Burgess read a written statement into the record as follows: NOTE: The following is a verbatim transcript of the statement submitted by Burgess. No corrections have been made to spelling, grammar, punctuation or sentence structure. Gty clerk, the last sentence in Section 2.10.060, Section A, states "provided, however, that any council member may request that his remarks on any subject be recorded in the minutes verbatim as a matter of public record." I hereby so request. As per section 2.10.070, section C, "Every councilmember desiring to speak shall address the chair, and upon recognition by the presiding officier, shall confine himself to the question under debate, avoiding all improper language and references to personalities. and the first part of Section 2.10.070, section D states "A councilmember, once recognized, shall not be interruped in speaking unless it be to call him to order" I submit to the chair that my following remarks all pertain to the question under debate (council discussion) and that I not be interruped in speaking. I would like the citizens of Seward to please understand that I am not trying to be a hero or do any grandstanding, as councilmember Dunman stated at our last Special meeting, nor am I trying to tear this town apart, as I have been acussed of. I have spent over 15 years of my life in Seward, because I liked this town, its people and because it was my choice to live here. The last thing I would want to do is hurt this City and its fine people. My wish is that this town ounce again work as a unit and not be torn apart as I think it has been in the last few years by certain people. I have asked if what I have been doing is in the best interest of this town, and I stated that I hope that everything that I have done in four years on this council has been in the best interest of this town. Truth and knowledge of the issues before this council and the citizens of this town have always been important to me, and I also believe the citizens believe in truth and knowledge. No one, myself, or the citizens of Seward can make wise decisions if truth and knowledge are withheld and or twisted, if half truths are told as being all the truth., I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 33 the whole truth, and nothing but the truth. My purpose is to inform the citizens of Seward what I see as the truth and let you have some knowledge that I thing you must know, because you, the people that elected me to this position, are entitled to know, in my humble opinion. I have always believed that I work for you as a councilmember, and that this council sets the policy and direction to the city staff, thru the city manager, with the help and guindence of the city atty and city clerk. To state this in another simple way, we work for you, and they in turn work for us. Not only is this my understanding, but the City charter and code made this very clear. And their is no doubt in my mind that even our city atty will agree with me on that issue. So if the truth and knowledge hurts, so be it. In no way am I trying to promote any person running for council in the upcoming elections, but I hope they will be more aware of what is going on in city hall. But if there is dirty linen to be washed, I think it should be done by this council, not by a new council that will take a few months to get their feet wet and find out what is happening. By that time some of this will have been brushed under the rug and forgot. As one of my fellow council members said, If I have any complaints, spit it our, so here we are. I am prepared to let the people that elected me know, and I will take my lumps. As a lot of you know, I have been distrubed about the city council staff. After discussion with an outside atty I have decided to let the public know what I am unhappy about concering the city council staff, but it does not seem right that I have to consult an outside atty when we have one as a council staff member, but I think you will understand why I felt unconforarble discussing this with our city atty. There have been several reasons and I will tell you what those reasons are. But first, I will tell you what set me off, or to say it in my old country boy way, the straw that broke the camels back.. At an exective session, which may have been illguel in the first place because the person discussed was not informed that we were going to discuss him & he was not invited, (the city clerk said he was informed, but he said he was not informed) and I am sure that the intent and purpose of exective session was voliated. In response to a question to the city manager and the city atty as to why this council was not informed about the Bencoardo investagion, the city atty said that WE felt that WE could not trust the city council. I went in orbit! I said "who do you people think you are working for. You, you and you work for this council, this council does not work for you. You are telling me that you do not trust the people you work for. Then it was stated that they (the staff) felt there was a leak in the council. I can't repeat exactly what I said because I would be ruled out of order, but basicly I stated that that was not for them to decide, and I thought that was a cover up reason for the staff not informing this council of what was happening. The city atty's words was defended to be by the city managers as -quote- a poor choice of words-end of quote. I said bolaney, that man is trained how to use words, he knew exactly what he was saying. Also it was stated that the legal bill was dielieltry withheld form the council because we might pick up on what was happening. Now I would like my opinion clear. I do belive that any reasonable person would come to the same City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 34 conculsion that I did, that this is PURE HOG WASH. THAT THE COUNCIL ADM. STAFF HAS NOT ONLY FORGOT WHO THEY WORK FOR, THEY HA VE BEEN PLOTTING AGAINST THIS COUNCIL AND THE CITIZENS OF SEWARD. I would submit that these type of actions are not imcomtentance, they are outright fraud against this council and the citizens of Seward. When I first found out about the police chief being suspensed for 3 days without pay on the street, I went to the city manager and asked if this was true. He said "who told you", I said it did not matter who told me "you did not tell me. That I was one of seven people in this town who is supposed to know what is happening, why did I not hear it from him. He said it was not to supposed to go out of his office. Now if the chiefs supension was not suppose to get out and the legal bill was deliberty withheld, what underhanded means was going to be used to get the atty's bill by the council for poayment. How long and how many times has this type of management been going on with the city staff? In response to a question asked by fonner City Manager Max Royle when he was asked what he meant by his expression "mushrooms in the cellar" he stated - and I am quoteing - They (councilmembers) are kept in the dark. It is an expression to indicate that a way of operation that I really don't agree with. The context is that city council people are being treated like idiots, regarded as incompetents, city administration that supposedly knows the truth is to feed them only what is necessary in order for them to do the will of the administration - or that they grow with the administration, being they should grow as a mushroom. That concept I despise and I disagree with. End of quote. Max also stated that the city atty told him that the city manager dominates the council, and indicated to him the the city manager was more powerful than the mayor. When asked that wasn't the Seward City government set up such that the city manager was to follow the directive of the mayor and the council, and not visa versa?, Mr. Royle stated - and again I quote - That is the way I would assume it be be and was expectingit to be, but that isn't the way it was. I assure you I would have my legs cut off at the knees if I didn't toe the line down here and let the council be the chief player in the political arena. They would throw me out in a flash.-end of quote I am also under the belief from what I have learned after several years as a councilmember, that the city atty in conjunction with the city manager, has, and would like to think that they dominate the city council. I have seen copies of documents that was sent from the city atty to the city adminstrion on a certain subject (the Geomax Report), where it was discussed as how to handle the council and the public, and then the document that was given to the council was worded in the way the city administration wanted it presented to the council, which was not all the information contained in the first document and reworded to suit the adm. point of view City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 35 I A question that was asked at the special meeting to approve the city managers revised contract was "why did a special meeting have to be called, why could it not have been put on the regular agenda". According to Section 2.10.055, section E " No matters other than those on the agenda shall be finally acted upon by the city council: provided, that matters that seem to be emergencies or of an urgent need by the mayor, or any council member, or the city manager, with an explanation of the emergency or urgency stated in open council, may with the consent of the council majority present, be considered and acted upon by the council. " My enterpation of this section is that the request to approve the city managers revised contract could have been on the regular agenda and did not have to be a special meeting. We are always revising the regular meeting agenda. Are we to believe that the Mayor, who called the special meeting because the regular agenda deadline had passed, who must have considered it an emergency or urgent- the city atty, who interppits the ciy code, the city manager who works by the city code, and the city clerk who sets up the agenda and has helped to revise the city code several times, did not know this section of the city code existed? Who is trying to fool who ? I At the last meeting I tried to consult with the city atty during the meeting about a motion to reconsider. According to a memo given to this council by the city clerk, she states that the city atty was incorrect in his assertion that my motion was in order. A few meetings ago, I think it was when we were debating Ord. 642, I tried to make a motion, but after the city clerk and the city atty consulated for about 5 to 10 minutes it was decided by them that my motion was not a correct motion, so I did not make the motion. About a week later, I recieved a letter from the city atty stating basicly, sorry charlie, but your proposed motion was proper. But my that time the purpose for making the motion was no longer valid because the reason hade already gone out the window. Now this makes twice I have tried to play by the rules and have been given wrong advice from the "council experts" on Parliamentity procdure. We pay these people to know these procedures but they don't seem to know the correct answers. Or does it depend on who makes motion and for what cause? Also in that same memo, the city atty asked that if this council was going to get into a debate using Roberts Rules of Order, please advise him so he could be prepared. Now I ask you, why should I ask when I may not get the right answer, and also to expose to the city admin. what I am planning that may not be what they agree with. Now I didn't fall off the turnip truck yesterday. I Approximantly two months ago I went to the city engineer to exprese some concerns that some citizens had talked to me about and some things that I had noticed concerning the street improvements. After getting answers that was intended to treat me like an idiot, I went to the city manager. I was told that he would look into the situation. That never happened, as usual. Not until I blew up in an exective session of this council was anything done. As the city manager City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 36 stated last meeting, some of the items are now being looked into. but we are running out of time and the fix may be costly. If my concerns had been addressed when I first approached city adm., some of the items would not have been as big of a problem as they are saying it now is. But why were some items engineered as they were, why were problems not discovered by the city engineer before the plans were approved, why did'nt the city engineer realize the problems when they were staked in the field, why wouldn't the city engineer even admit that there was a problem, and why has it been harder than pulling teeth out of a toothless hen to get any action. Another question I would like to ask is why are there three light poles going up on the corner by the old Seward Trading building? There is no doubt in my mind what kind of answer I would get. That is going to be the best lit corner in town. Another item, The road on Dairy Hill bears little resemblennce to what the plan shows, because it had to be changed to fit the conditions there. One item that I would like to point out about this project is that thank god we have a good contractor on this job, otherwise, the extra's would be unreal. As I have previously stated, If I am having problems at city hall and with the city engineer as a councilmember, there is no doubt in my mind how the citizens of this town have been treated at city hall by these same people. The people that are supposed to be working for us, not we for them! I am sorry that the city clerk could not be here. I was prepared to debate the resolution approving her employment agreement with the council but is was pulled fr01i'l the agenda but is scheduled to be on the agenda for the meeting of the 23 rd. According to a memo given to this council she - and I quote - Unfortunately, I will unable to attend Monday night's meeting. The borough is funding my trip to juneau next week for training regrarding programming a personal computer to count ballots. - end of quote. Now that is interesting. Nonnally that type of thing is scheduled for days or weeks ahead, but this must have been deceided sometime after noon on wedesday which is the agenda deadline and thursday afternoon when the packet was printed. But since councilmember Meehan was scheduled not to be here at this meeting, but is suppose to be here on the 23rd it would be better to approve or disapprove of her employment agreement on the 23rd when we have a full council. Also, according to the agenda, we could not approve the minutes of the three special and one regular meetings previously held. Appartently two weeks, is not enough time for the city clerk to get the minutes prepared for this council, one of her priminary duties as city clerk. Also, a question I would have asked her and I will at the next meeting is why the council recieves one Agenda Packet and the public another? The council packet for the last meeting in August was close to twice as thick as the packet furnished to public. One thing that I have discouvered is that the council packet contains a detailed breakdown of the city atty's bills, but it is not in the public packet. Could it be that the council staff does not want the public to know what monies is being spent by the city atty and on what? I I I City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 37 As a matter of record, according to the city clerk's memo to this council, when I went to the city clerk office to have Item A under Unfinished Business (resolution of the city atty's bill concerding the Bencarando investigation is what I requested) put on the agenda for this meeting, the council has recieved a 2 page memo from the city clerk acussing me of being "verbally abusive" towards Patsy Jones and causing "added stress an Incident such as this creates". I did not think I had been "verbally abusive" and I know I did not intend to be, but if I was I hereby publicitly apologize for any "verbally abusing" and causing "added stress" to the city clerks staff. That was not my intent or desire in any way. It is now made clear to me that when I talk to certain people in city hall from now on, I better have a tape recorder or a witness so what I said does not get twisted around as I have been acussed of doing twice now. The last few week I have talked to a lot of citizens in this town and based upon their statements and the experiences I have been having, it is a crime that any one who deals with city hall, either as a business person or private citizens, is afraid to say to much in opposition to city hall because they have very good reason to fear what the repurcussions might be. Russia is just now coming out of a fonn of government that was respressive to the citizens, where did not dare to speak against their fonn of government without worry of repercussions. We CAN NOT lay down, roll over and play dead, or we will have a similar sitution here in our city. The citizens have to reliaze what is happening and they can only do that if they are provided the truth so they can made up their own minds, not by being spoon feed just what information certain people want the public to know. Lack of information and truth is dangerous to the demartic fonn of government. Thank God that ord. no. 642 did not get approved. I was not aware of certain information when I fought this ord., but I was well aware of the potional abuse that it could be used for, as you know I fought hard to get is revised. At the time were discussing this ord, I said I was strongly opposed because of what a fanner city manager had attemped to do, but that I had no problem with the present city manager. I am here to say now, loud and clear, that based on what I have learned, I do not trust the present city adm. in any way, shape, or fonn. In parting please understand, this has not been easy for me, but I think the citizens must be made aware of what has been going, for the good of the citizens who elected me to this office, as I believe that is what you have elected me for. I would again like to state that these f:Jt.pe of actions are not imcomtentance, they are outright fraud against this council and the citizens of Seward. We do not nead another Russia or Watergate in Seward. Thank you for bearing with me. Schaefermeyer stated that he reserved the right, as well as City Attorney Arvidson and City Clerk Murphy, to respond in detail to the prepared statement by Burgess. He stated that he took seriously the trust placed in him in dealing with personnel matters that are the city manager's responsibility. He stated that he viewed sincerely the City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 38 personnel matter involving the police incident and Chief Bencardino. He noted that the investigation was appropriately and reasonably conducted. He added that it uncovered areas of impropriety, incompetence and failure to follow existing procedure within the department which led to a necessity for disciplinary action to remedy the problem. Schaefermeyer stated that the discipline was dealt with in his office in a confidential manner but the employee involved apparently violated the trust which existed by disclosing the reprimand and suspension. He noted that it was never his intention to withhold anything from the council in which the council was properly involved but this was a personnel matter. He added that the reason it was not brought to the council was because it was strictly a confidential personnel matter between him and his employee. He stated that when he was "tipped off' that this had become a public matter, he had notified the mayor of the situation and had briefly explained the circumstances. He added that once he had ascertained the extent of public disclosure of the situation the rest of the council was informed. Schaefermeyer replied to the allegation that he had withheld the attorney bill on the investigation from the Council. He stated that Mr. Burgess knew that the allegation was false because Burgess sat in his office and discussed the bill with him. He noted that the bill was included with the regular attorney bills and it had never been withheld. He added that in the past 15 years the Council had reviewed every attorney bill which was ever paid by the city. Schaefermeyer replied to the allegation that the city administration perpetrated a cover up of the Geomax report. He stated that the report had been gone over by two previous councils, and he added that the city did what was necessary at the time to protect the interest of the community. Schaefermeyer stated that the report, which was actually a product of the Kenai Peninsula Borough, was made available to the press. He noted that he had never tried to cover up anything that was rightfully important to the council but he took seriously any documents which could be "wrongly used" against the community and its residents. Schaefermeyer summed up his comments by stating that he would not sit back and have his integrity and honesty maligned. He noted that Burgess had spent more time in his office than any other councilmember in the past fifteen years and the door was always open. He stated that to be accused by Mr. Burgess of withholding information was absolutely incredible. 16. CITIZENS' DISCUSSION Louie March, Seward Highway, gave a brief update of his interest in the police incident investigation. He stated that he had requested the FBI and the Attorney General's Office to look into the matter. He noted that there were major discrepancies in witness statements and procedure violations in the report and in his opinion it was a "cover up" and an assault on the citizens of Seward. March submitted a letter he had I I I 39 City of Seward, Alaska September 9, 1991 City Council Minutes Volume 27, Page 39 received from the Department of Public Safety for the record. He asked the administra- tion why the Alaska State Troopers were not called in to investigate the matter and he also asked if the case was closed. Schaefermeyer replied that he would answer the questions in writing. Kris Erchinger, 2015 Dora Way, commented on a Letter to the Editor which appeared in the Phoenix Log. She stated that being on Council was a thankless job. She spoke in support of the outgoing council who were referred to as "lame duck" in the article and stated that they had done a wonderful job, the town would miss them and she wanted to thank them for a job well done. She commended those councilmembers and administrative staff who did not sacrifice their values and credibility by stooping to using "mud slinging" against others. She also encouraged the voters to get out and vote. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 18. ADJOURNMENT The meeting was adjourned at 10:48 p.m.. ~>>r Jfi3= /~, , David L. Hilton, Sr. Mayor ..... : ., ~ ... ~+t' 1. \~~ .,' ,.. ........ fI:I'" . OF ~\... 40 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 40 1. CALL TO ORDER The September 23, 1991, regular meeting of the Seward City Council was called to order at 7:30 by Mayor David L. Hilton, Sr. 2. OPENING CEREMONY Councilmember Dunham led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David L. Hilton, Sr., presiding, and Raymond Burgess James Krasnansky Bruce Sieminski Beverly Dunham 11ichaelJ.11eehan Leslie Simutis (arrived at 10:10 p.m.) comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk 4. APPROVAL OF MINUTES Meehan moved to approve the August 20, 22, and 26, 1991, special meeting minutes and the August 26, and September 9, 1991, regular meeting minutes as presented; the motion was seconded by Dunham. Burgess asked the Clerk to amend the August 26th special meeting minutes to reflect that the special meeting was necessary because the manager's employment agreement was not available until after the agenda deadline for the regular meeting. The question was called, and the minutes were approved as written, except that the noted amendment to the 08/26/91 special meeting minutes was approved. 5. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the Regular Meeting Agenda as presented; the motion was seconded by Dunham. Schaefermeyer noted the addition of New Business Item A (Approvir,g a contract for interconnecting the 22" Sewer Force Main to Lowell Point Deep Water Discharge I I I 41 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 41 Diffuser) and New Business Item B (Change Order to Summit Paving Contract for the purpose of completing the overlay of Railway Avenue between Third & Fourth Avenues). The question was called, and the agenda was approved as amended by unanimous vote of the Council. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report of the September 17th assembly meeting. 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING Garrett Schnell, 414 Fifth Avenue, spoke regarding Resolution No. 91-118. He stated that he was in support of having the Tustumena overhauled in Seward, but questioned the emergency which would mandate that the ferry be repaired on the shiplift platform. He also stated that it was in the city's best interest to make sure that all repairs took place on cradles. Schnell also spoke regarding Resolution No. 91-117. He asked that the Council waive that section of the meter reading contract which required that the city hold a one- month deposit as bond. He stated that this provision had been included to insure performance under the contract, and his record of performance during the first year of the agreement should warrant a waiver of the provision. Jim Pruitt, Maple Street, spoke regarding Resolution No. 91-118. He stated that the syncrolift platform was designed for blocking directly on the platform rather than on cradles. He referred to a May, 1990, letter from NEI Syncrolift stating that most of the lift operations it designed were currently operating without a transfer system. He agreed that some precautions should be taken when working on the platform. Pruitt asked that the Council amend the shiplift tariff resolution to allow blocking on the platform whenever the cradles were otherwise occupied or when it would make more economic sense to repair directly on the lift. 8. APPROVAL OF CONSENT CALENDAR Krasnansky asked to move Items A, Band C to their proper places on the Regular Meeting Agenda. Schaefermeyer asked to delete Item G. Meehan moved to approve the Consent Calendar as amended; the motion was seconded by Dunham and carried by unanimous vote. The following actions were taken: 42 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 42 A. Resolution No. 91-105, approving an employment agreement (Contract No. C91-437) with the city clerk, was moved to the Regular Meeting Agenda as Item No. 10 under Resolutions; B. Resolution No. 91-116, awarding a contract for the purchase of winter sand to METCO, Inc., (Contract No. C91-438) was moved to the Regular Meeting Agenda as Item No. 11 under Resolutions; C. Resolution No. 91-117, extending the meter reading contract with Seward Aluminum Fabrication (Contract No. C90-397) for one year, was moved to the Regular Meeting Agenda as Item No. 12 under Resolutionsi D. Resolution No. 91-120, awarding a contract to Swenson Construction (Contract No. C91-439) to reconstruct the sand shed roof, was approved; E. Resolution No. 91-122, approving the Head Start Use Agreement (Contract No. C91-440) for the 1991-92 Program Year, was approved; F. Change Order No.1 to the International Steel Erectors contract (No. C91- 425) for window repair at SCCC modifying Article 5.2 of the General Conditions waiving the requirement for a performance and payment bond throughout the winter and requiring that the bonding be reinstated prior to mobilizing on site on April 25, 1992, was approved; and G. Letter from Port Marketing Director Gates to Chugach Forest Products regarding the Chugach request for renegotiated wharfage was not available for Council review. 9. PUBLIC HEARINGS A. Notice of public hearing as posted and published as required by law regarding a proposed long term lease of public lands and tidelands adjacent to and within ATS 174 to Seward Marine Services was noted, and the public hearing was opened. Martin noted on an aerial photograph of Seward the location of the subject property. No one appeared in order to be heard, and the public hearing was closed. B. Notice of public hearing as posted and published as required by law regarding proposed Amendment No.1 to Lease No. RE-040, Lot 6, Block 1, Marina Subdivision (1321 Fourth Avenue), between the city and Milos Nikolic, extending the term of the lease, was noted, and the public hearing was opened. I I I 43 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 43 No one appeared in order to be heard, and the public hearing was closed. C. Notice of public hearing as posted and published as required by law regarding the proposed disposition by sealed bid of certain surplus real property of the city, specifically Lot 26A, Block 12, OTS; Lot 18, Jesse Lee Heights Subdivision; and Lots 2 and 3, Block 9, Cliff Addition; was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was dosed. 10. PRESENTATIONS WITH PRIOR NOTICE ONLY 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction B. Ordinances for Public Hearing & Enactment C. Resolutions 1. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, authorizing the long term lease of public lands within and adjacent to A TS 174 to Seward Marine Services. Sieminski moved to approve Resolution No. 91-113; the motion was seconded by Burgess. Meehan asked if he must declare a conflict of interest since he was employed by a competing company. HILTON RULED THAT THERE WAS NO CONFLICT SINCE MEEHAN DID NOT HA VB THE POTENTIAL TO BENEFIT FROM HIS VOTE ON THE RESOLUTION. Krasnansky asked for an explanation of the statement that there had been no survey, yet the property was referred to as a part of Alaska Tidelands Survey. Arvidson noted that the state had surveyed the tidelands, and this property was a portion of the parcel designated ATS 174. However, the city wished to require the lessee to obtain a survey of that particular portion of the property which would be leased. Krasnansky also asked if it was really in the public interest to waive the appraisal. Schaefermeyer stated that the lease value placed by the city was based on the last several appraisals of tidelands in the Waterfront Tracts. He added that it was the city's view that an appraisal of the tidelands would cost more than the city would recover through lease revenue. 44 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 44 Dunham asked if setting this rate would have any bearing on leasing tidelands to Schafer for the Nash Road Boat Harbor. Schaefermeyer stated that the city would probably require an appraisal of that particular tract (Nash Road Harbor) since it would be large enough to warrant the cost of a full appraisal. He cautioned, however, that the rate set under this lease might be used as a comparable by the appraiser in determining a lease value. The question was called, and the resolution was approved by unanimous vote of the Council. 2. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, authorizing Amendment No.1 to Lease No. RE-040, Lot 6, Block 1, Marina Subdivision. Burgess moved to approve Resolution No. 91-114; the motion was seconded by Krasnansky. Schaefermeyer stated that Nikolic was out of town for the next couple of months and had not been contacted for concurrence on a some of the proposed lease amend- ments. He suggested that the Council might wish to postpone action on the resolution until the lessee had reviewed and signed the amendment. Meehan moved to postpone action on Resolution No. 91-114 until October 14, 1991; the motion was seconded by Dunham. Sieminski questioned the need to postpone action on approval of an amendment requested by the lessee. Hilton explained that since receiving the request for an extension of the term of the lease, the city had made several other recommended changes. Schaefermeyer noted that under standard lease procedures, the administration did not seek approval of lease amendments or agreements until the lessee had signed the agreements to be approved. He also noted that should the lessee fail to sign this agreement and renegotiation was needed, another public hearing would be required prior to further action by the Council, and this would entail additional cost to the city. The question was called, and the resolution was postponed by unanimous vote of the Council. 3. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: I I I 45 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 45 A Resolution of the City Council of the city of Seward, Alaska, authorizing the initiation of the disposal process for certain city surplus real property. Sieminski moved to approve Resolution No. 91-115; the motion was seconded by Burgess. Dunham asked if anyone was interested in these properties or if there were any possible future city uses for these parcels. Martin stated that he had been preparing a draft plan for all city-owned properties over the past six months. He noted that one of the parcels recommended for disposal was the site of the old Bear Mountain Tot Lot. He stated that the size and location of the lot made it unsuitable for city use. He added that no one had expressed an interest in the Jesse Lee Heights Subdivision parcel. However, one individual had called to ask if the Cliff Addition property could be reserved as a public promontory or look out. Martin noted that since there was no road access to the parcel, or parking on Ravina Street if one wished to walk up to it, this was probably not a good use for the property. In response to a question from Hilton, Martin stated that the Code required selling public property for no less than fair market value. Rather than seek appraisals, he recommended setting the borough's assessed value of the parcels as the minimum bid for each. The question was called, and the resolution was approved by unanimous vote of the Council. 4. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, authorizing the lift and repair of the M!V Tustume- na under the emergency provisions of the syncrolift tariff. Krasnansky moved to approve Resolution No. 91-118; the motion was seconded by Burgess. Krasnansky asked why repair of the ship's stabilizers constituted an emergency. Schaefermeyer stated that the city administration did not feel there was a sufficient emergency to warrant a declaration of emergency by the harbormaster. Therefore, the Council was being asked to make this determination. He added that the only recourse left to the Marine Highway System was to take the ferry out of service for an extended time to repair the stabilizers in either Ketchikan or in Washington. Until repaired, the ferry would be unable to operate its stabilizers for the comfort and safety of its passengers, and this could affect ability of the ferry to operate. 46 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 46 Krasnansky asked why this work was not accomplished during its overhaul in Seattle. He asked if this work would affect any warranties covering the extensive work completed earlier in the year. Schaefermeyer stated that the city was not privy to that information. Krasnansky asked who authorized the work. Schaefermeyer stated that he did not know if there was any written authorization to do the work. He noted that the city was notified by Seward Ships Chandlery that it was contacted by the Marine Highway System, and the em had talked to the Marine Highway System director regarding insurance coverage required of the contractor. Schaefermeyer stated that the city did not normally involve itself between the owner of a vessel and the contractor performing the work. He stated that the only reason the city was involved at this time was because of sse s request for a waiver of the tariff provision prohibiting blocking of a vessel on the platform. Sieminski stated that he was in favor of lifting the Tustumena as requested. He stated that the work on the Tustumena should be done in Seward, the Tustumena's homeport. Dunham stated that she had ridden the Tustumena before the stabilizers were installed. She agreed that the stabilizers were necessary for any type of passenger comfort and concurred with Sieminski that if the city wanted the Ferry to remain in Seward, it should show that there are facilities here to take care of her. In response to a question from Burgess, Schaefermeyer stated that the state presently requires that any contractor repairing the Tustumena have in place ship repair legal liability coverage of $31,200,000.00 (the full value of the ship). He stated that he had met with two marine brokers with Lloyds of London who brokered both the city and the Ferry, and they recommended that the state give the city a waiver of subrogation of any liability over $10 Million since vessel was insured for its full value. Schaefermeyer stated that he had contacted the Marine Highway System and was told that this would require a policy decision by the system director who would be out of his office for the next few days. Therefore, the city was awaiting word from the state on the insurance question. Schaefermeyer noted that it would not be cost effective for the city to bind the coverage as currently required at a cost of about $10,000 in additional premiums since direct revenues to the city for this lift would be approximately $2800. He stated that either the state would have to waive these requirements, or the contractor would be required to obtain the additional insurance. Burgess stated that insurance was one of his major concerns since there had been problems in the past when lifting a vessel without a cradle. He stated that he would only agree to this because it was the Tustumena which needed repair; however, he wanted assurance that adequate insurance would be in place and that the city was fully covered. Meehan asked how long the ship would be up on the platform. Schaefermeyer stated that he anticipated that it would be up for only one or two days. I I I 47 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 47 Krasnansky asked how long Barge 210 was scheduled to be out of the water. D. J. Whitman of SSC stated that the Barge would be up anywhere from 10 to 25 days. Krasnansky stated that he was not convinced that this was a true emergency. He stated that he was afraid that by approving this resolution, the city was going to be locked into lifting ships onto the platform for repairs on a regular basis. He stated that he was not comfortable with this situation. Sieminski stated that the syncrolift could be used more than it was currently utilized. He stated that for small repairs, did not see the need to use cradles. He urged the Council to approve this resolution. He added that he was not ready to amend the tariff, but he did favor making this exception. Hilton stated that it was not the city's place to decide who should or should not be performing any particular work; rather the question was whether the city should allow the work to take place on the platform. He stated that in this instance, he saw nothing wrong with approving the requested waiver. He noted that he trusted Singleton's judgement that it was appropriate to do this repair directly on the platform in this one instance. Krasnansky stated that, in that case, the use agreement should include emergencies or any other jobs this body might find appropriate. However, the tariff stated that this provision could only be waived if there was an emergency, and he did not see an emergency in this instance. Hilton agreed that perhaps the wording in the tariff should be amended. Meehan stated that in the future, the Port Advisory Committee should be asked to review these requests and perhaps review this provision in the tariff. The Committee could then come forward with a recommendation to the Council. Schaefermeyer stated that the city had allowed some repair work to be done while a vessel was on the platformi however, the city had required in the past that the vessels be placed on cradles. He noted that the problem at this time was the question of blocking directly on the platform without using the cradles. He stated that the tariff prohibited blocking on the platform except in emergencies in order to prevent other operators from requesting use of the platform to block and repair vessels. He added that the administration viewed this as a one time only exception. The question was called, and the resolution was approved by unanimous vote. Recess: The meeting was recessed at 8:50 p.m. and reconvened at 9:00 p.m. 5. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: 48 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 48 A Resolution of the City Council of the city of Seward, Alaska, appropriating additional funds to meet expenditures relevant to the failure of the Lowell Point Sewage Treatment Plant Lagoon. Meehan moved to approve Resolution No. 91-119; the motion was seconded by Dunham. Schaefermeyer stated that the city had put together a preliminary budget for repairing the Sewage Treatment Lagoon. He noted that appropriations thus far totalled $75,000, and expenditures and encumbrances currently totalled $79,000. Schaefermeyer stated that this resolution would authorize the appropriation of an additional $150,000 towards this project. Burgess asked why the city was approving the funds now and not as they came in. Schaefermeyer stated that the city was asking for an appropriation so that funds were available to deal with expenses as they arose. He noted that he was merely asking the Council to approve a budget for expenditures and assured the Council that Code and Charter guidelines for the actual expenditure of the funds would be followed. In response to a question from Burgess, Gifford explained the city's projected administration figure set forth in the memorandum. He stated that the rate used in determining project administration had been determined by an independent rate study commissioned by the city several years ago and was consistent with that charged to other projects of the city to cover city overhead. He explained that this was an accounting mechanism to show the true costs of this project. Schaefermeyer noted that if these charges were reflected in the city's budget for responding to the emergency, they may be recoverable from borough, state and federal emergency funds at a later date. Schaefermeyer stated that the city anticipated incurring $40,000 in legal fees as a result of this emergency. Schaefermeyer once again noted that this was merely a budget, and the Council would still have to approve payment of legal fees and all contracts over $10,000. Dunham stated that this situation was a "Catch 22" for the city manager. She stated that this was similar to the Oil Spill emergency, and it was up to the Council to see that the funds were not overspent. Sieminski asked what would happen to the funds budgeted for legal if the Council did not approve payment of the attorney's bill. Arvidson stated that the administration was attempting to give the city its best guess regarding the cost of the project, including legal costs. He stated that legal fees could possibly run over $40,000; however, he believed the legal fees would probably be less than the amount budgeted. I I I 49 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 49 Krasnansky asked if the city had contacted its congressional delegation concerning this problem and asked for federal assistance. Schaefermeyer stated that they (Stevens, Murkowski and Young) would rely on federal and state agencies for information regarding the city's needs, and the city would attempt to avail itself of any available remedies. Meehan stated that this situation was similar to the Flood of 1986. He noted that the Council was being asked to approve a budget following normal accounting procedures. He noted that it was important that the city set up a paper trail and document all of its costs so that it would be possible to recover as much of these costs as possible. Dunham complimented the city employees who had worked so hard in such adverse conditions in responding to this emergency. She added that it was now time for the Council to approve a budget to deal with the problem. Krasnansky stated that he saw no problem with appropriating the money. However, he still wanted regular reports to the Council outlining how the money was spent. Schaefermeyer stated that he would be happy to make regular reports to the Council. He stated that he had outlined where the city stands and what he is doing. He promised to make a weekly expenditure and information report via memorandum to the Council. In addition, Arvidson promised to make periodic reports from a legal perspective. The question was called, and the resolution was approved with five yes votes and Sieminski voting no. 6. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, appropriating funds and awarding a contract for the relocation of Landfill Road. Meehan moved to approve Resolution No. 91-121; the motion was seconded by Dunham. Schaefermeyer noted that a short section of the existing Landfill Road currently crossed two privately owned lots. Following lengthy discussions with Kenai Peninsula Borough officials, the borough mayor had agreed to direct KPB design engineers to prepare an engineering plan and a construction estimate for relocating this section of the road back to the existing platted right of way. This design was presented to two local contractors, and the low proposal was submitted by METCO, Inc. The KPB had initially 50 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 50 agreed to provide the filter fabric to be placed under the fill material. However, after reviewing the design and location of the ROW, it was apparent that the majority of the road was located on property or rights of way not owned or dedicated to the city. Therefore, Schaefermeyer had informed Gilman and his staff that it was his recommenda- tion that the city not participate in the project or maintain that portion of the road not on city ROW. After further discussion with Gilman, a compromise was reached wherein the borough agreed to fund one-half the cost of construction and to provide funds to the city annually to maintain the road. Gilman had also agreed that the borough would provide the filter fabric lining as well as project management and inspection. Schaefermeyer recommended approval of Resolution No. 91-121. In response to a question from Meehan, Schaefermeyer stated that liability would probably be split by the borough and the city. He added that, if the road were maintained solely by the borough, the road could be used for access to the landfill only, and could not be used for access to the rifle range or the city's sand bunkers. Dunham noted that none of this would affect the problem of increased traffic down Dimond Blvd. Krasnansky asked for an explanation of the term dedicated city ROW. Schaefer- meyer stated that the section of the roadway in question had been located on University of Alaska property and was trespassing over private property. Other roads of the city were on city property or on rights of way dedicated to the city for a designated roadway. Burgess stated that he could not understand why this project went out to bid when Schafer had offered to relocate the road free of charge. Schaefermeyer stated that Schafer had only agreed to do a portion of the work at no cost. In addition, his proposal did not include engineering, and if the city was to maintain the road, it would have to be properly engineered. He added that Schafer had the opportunity to continue with his proposal to haul the gravel for free; however, he chose not to do so when asked to bid on the project. Hilton stated that Schafer's original proposal did not include a finished road. Meehan stated that he felt the administration had done a good job in putting this project together. He stated that the city was getting a lot of work accomplished for $5500, and this represented a good deal for the city. Dunham asked how many additional trucks per day would be required to export garbage to Soldotna. Schaefermeyer stated that the borough anticipated an additional one or two trucks per day to haul the material to the Soldotna landfill. Dunham stated that she agreed that the city manager had done a good job of putting the project together; however, neither the borough nor the city had addressed her concerns regarding traffic problems. I I I 51 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 51 The question was called, and the resolution was approved by unanimous vote of the Council. 7. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, approving a Memorandum of Understanding between the city and the U. S. Forest Service for preparation of a supplement to the 1984 Ebasco Environmental Assess- ment relevant to transmission line upgrade. Burgess moved to approve Resolution No. 91-123; the motion was seconded by Dunham. The question was called, and the resolution was approved by unanimous vote of the Council. 8. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, declaring a state of disaster relevant to the failure of the Lowell Point Sewage Treatment Lagoon and seeking borough, state and federal assistance. Krasnansky moved to approve Resolution No. 91-124; the motion was seconded by Dunham. The question was called, and the resolution was approved by unanimous vote. 9. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the city of Seward, Alaska, awarding a contract for repair of the Clinic roof. Krasnansky moved to approve Resolution No. 91-125; the motion was seconded by Burgess. Schaefermeyer stated that the city had advertised a request for bids to make repairs to the roof of the old doctor's clinic. Since there were no responses to the request for bids, the city contacted several contractors and asked for price quotes. Only Peninsula Roofing responded with a proposal. Schaefermeyer stated that time was now of the essence due to inclement weather. Schaefermeyer noted that the resolution did not include an appropriation of funds for the project, and he requested an amendment to appropriate the funds from fund balance. 52 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 52 Diener explained the repairs which would be made, adding that the repairs would be guaranteed by the contractor for five years. . Simutis arrived at 10:10 p.m. Burgess stated that he would vote in favor of the resolution, but added his regret that it had taken "so long to get to this point". Diener stated that the city administration had proceeded promptly with an RFP once instructed to do so by Council. However, the administration could not accept the responsibility for the delay caused by a lack of interest on the part of local and Anchorage-area contractors in bidding the project. Krasnansky asked why the administration had not moved forward on the Council's instructions to proceed with negotiations to lease the clinic building to the Ambulance Corps. Hilton stated that the Hospital Board had decided not to move forward with disposition of the building until it could determine whether the building was needed for hospital purposes. Simutis stated that the Council had made it obvious that it wanted to see the building used, and had asked the Hospital Board for its recommendations regarding the future of the building. She noted that at its last meeting, the Board had reached a consensus that the clinic building should be retained for hospital purposes. Hilton noted on Page 17, Volume 27, an excerpt from the August 26th meeting minutes which stated that there was a consensus of the Council to repair the roof of the building immediately and to seek direction from the Community Hospital Board regarding future use of the building. Dunham stated that her primary concern was the preservation of the building. She stated that if it remained vacant for the winter, it was subject to additional damage, and she asked that the Hospital Board make some decision regarding the building soon. Schaefermeyer noted Simutis' remarks at the September 9th meeting regarding the Hospital Board's recommendations concerning the future of the building as well as the administration's report as to the status of the RFP for roof repair. He added that the city administration had been as diligent as the Code allowed in an effort to get the needed repair work done. Simutis moved to amend the resolution by adding "appropriating funds and" to the title and by adding a new Section 2 to read "The sum of $14,980 is hereby appropriated from the General Fund Fund Balance to Hospital Expense Account No. 101-1180-5920"; the motion was seconded by Dunham. Hilton stipulated that a yes on the amendment would carry the main motion. The question was called, and the resolution was approved by unanimous vote. I I I 53 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 53 10. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving an employment agreement with the city clerk. Burgess moved to postpone action on any contracts involving personnel until the first regularly scheduled meeting in October. Hilton ruled that the motion was out of order and stated that the only action which could be considered at this time was approval or disapproval of Resolution No. 91-105. Simutis moved to approve Resolution No. 91-105; the motion was seconded by Dunham. Burgess moved to postpone until 10/14/91; the motion was seconded by Krasnansky. Dunham stated that Burgess' motion to postpone was a deliberate move to harm the City Clerk's position and said that this was wrong. She stated that Murphy did her job more efficiently than 90% of the people in town. Dunham stated that Murphy was sometimes abrupt and irritating, but was still one of the best city employees. Burgess stated that the new proposed employment agreement consisted of a 4.5% pay increase which the regular city employees received this year. He noted, however, that last year the Clerk received a $3,000 raise when others did not. Burgess also objected to increasing the notice/severance provision of the contract from 45 to 90 days. He stated that this was a deliberate attempt to provide a golden parachute for the Clerk. Meehan stated that the Council was derelict in its duties for not completing contract negotiations last May when due. He stated that delaying further did not do any good at all. Meehan noted that the contract was discussed at the Clerk's evaluation, and at that time there was a consensus of the Council that this contract would be approved. He stated that Murphy was an excellent employee and deserved the pay increase. He added that it was unfortunate that this was not dealt with in May and stated that had it been considered at that time, this would not have been an issue. Meehan also noted that the 9O-day notice provision was equal to what had traditionally been included in the Manager's contract and was not out of line. Dunham stated that she was responsible for some of the delays in getting the evaluations completed. She stated that Murphy's evaluation was a very good one, and that even with the 4.5% increase in this contract, she still would not be paid as much as the median for city clerks in the state. I, I. I) ..: City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 54 Hilton also noted that Murphy's salary was not in excess of the median for city clerks in the state, and stated that, in his opinion, she was one of the state's best clerks and deserved to be compensated at a rate comparable to other clerks and other city department heads. He noted that although Murphy had served in her position for ten years, she was compensated at a lesser rate than other department heads of the city. Krasnansky stated that he had no problem with the Clerk's performance. However, nonexempt employees had not gotten the pay increases they should have received over the past few years, and the city should take care of the line employees first. Dunham noted that if the Clerk were a man, she would have gotten the raise without question. The question was called on the motion to postpone, and the motion failed with Burgess and Sieminski voting Yes and five No votes. The question was called on the main motion, and the resolution approving Contract No. C91-437 was approved with five Yes votes and Burgess and Krasnansky voting No. 11. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, awarding a contract for the purchase of winter sand. Krasnansky moved to approve Resolution No. 91-116; the motion was seconded by Simutis. Krasnansky questioned whether the $12,500 budget for winter sand requested in this resolution was sufficient to take care of the city's needs this winter. Diener stated that whether this was enough to pay for sand and gravel would depend on the weather. The question was called, and the resolution approving a Contract No. C91-438 with METCO, Inc., was approved by unanimous vote of the Council. 12. Copies having been made available to the public, Hilton noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, extending the meter reading contract for one year. Krasnansky moved to approve Resolution No. 91-117; the motion was seconded by Simutis. I I I 55 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 55 Krasnansky asked why the city had not yet investigated a system of owner-reading of meters monthly with a check by the city on a quarterly basis in order to contain costs to the utility and the customer. Council instructed the administration to research this proposal and to report back. Schaefermeyer stated that he would bring this back to the Council on October 28th. The question was called, and the resolution amending the Seward Aluminum Fabrication Contract No. C90-397 was approved by unanimous vote of the Council. There was a consensus of the Council that the city should continue to hold a bond representing one month's payment for the term of the contract. 12. UNFINISHED BUSINESS None 13. NEW BUSINESS A. Force Main to Lowell Point Discharge Line. Hilton moved to authorize the city manager to issue a purchase order to Maskill-Robins, Inc., for materials, equipment and labor to interconnect the 22" force main to the Lowell Point discharge line; the motion was seconded by Simutis. The question was called, and the motion carried by unanimous vote. B. Change Order No. 12 - Summit Construction (Contract No. C91-411). Meehan moved to approve an amendment to the Summit Contract in the amount of $12,000 to overlay Railway Avenue; the motion was seconded by Simutis. The question was called, and the motion carried by unanimous vote of the Council. 14. CITY MANAGER REPORTS Schaefermeyer noted that Council was provided a memorandum regarding downtown street and sidewalk improvements. He recommended no action on placement of the streetlight bases at the present time. Hilton instructed the Clerk to schedule a work session on Tuesday, October 8, 1991, at 7:00 p.m. to discuss this issue. Schaefermeyer expressed the city's appreciation to residents of Lowell Point for their cooperation during the recent sewer plant failure. He stated that they had shown a good deal of patience and willingness to work with the city and were most cooperative. Schaefermeyer introduced newly appointed Assistant Finance Director Shelley Frick. He also thanked Katy Bagierek for good and faithful service to city as assistant finance director and wished her the best in her new home. Schaefermeyer stated that the Fiscal Year 1991 audit was essentially complete and would be given to Council much earlier this year than in the past. He stated that Bagierek deserved the majority of the credit for this. rG City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 56 The City Clerk read the following statement into the record in rebuttal to Mr. Burgess' statements at the September 9th meeting: I never thought that I would be standing before you in an attempt to justify either my abilities or my performance as City Clerk, nor did I think that my honesty and integrity would ever be questioned by those for whom I work. I have been your City Clerk for nearly ten years, and in that time I have worked with four city managers, five mayors and many different Councilmembers. Not once have I been accused of misleading the Councilor of telling half-truths. I have on occasion been accused of being brutally honest when a small social lie would have been the kind thing in a given situation, but never before have I been accused of lying. Apparently, this is no longer the case. I was deeply hurt and offended by Mr. Burgess' statement which he read into the record at the last meeting. Everyone in public seroice expects a certain amount of criticism from the general public. We can't please everyone all of the time and still do our jobs. I have made it a policy to publicly ignore written and verbal attacks on my character from those on the political and social fringe who would have you believe that I have not treated them well or that I have used my office to abridge their rights. However, I cannot ignore what happened in these chambers two weeks ago and so find myself in the very awkward position of denying allegations made by one who should be one of my prime supporters. To say that I resent the inference that I have not been doing my job and that I somehow gerrymandered a trip to Juneau to avoid consideration of my contract and that I can't be trusted by my employers is a gross understatement. I have devoted more evenings, weekends and holidays to this job than I care to admit, and because of this, I missed out on a good deal of my daughter's extracurricular school life and numerous evenings at home with my family. As a result, my husband is probably closer to Krystal than a lot of fathers are to their daughters, but that's because he raised her while I worked at City Hall. This isn't a complaint - it's a statement of fact. Mr. Burgess begins his list of complaints against the city with his recollection of an executive session when an individual was discussed by the Council. Mr. Burgess claims that the "city clerk said he (the person to be discussed) was informed" that he was to be the topic of the executive session. Actually, I am the one who asked the Council if he had been informed and was told that he was aware of the subject of the meeting. I take executive sessions very seriously, and I would be the first to let the Council know if they were in violation of the open meetings act. Later, Mr. Burgess quotes Section 2.10.055 E. of the City Code to prove his contention that the city manager's contract could have been placed on the regular meeting agenda rather than on a special meeting agenda just prior to the regular I I I 57 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 57 meeting. Actually, that particular section of the Code states just the opposite. Unless the Council made a finding that there was an urgent need to act on the contract at the regular meeting, this item could not be added to the agenda. This provision has been included in the Code to assure the public that it is properly noticed of all pending actions of the Council. The regular meeting agenda had already been published; therefore, the only proper way to bring this matter to the Council for action was at a properly noticed special meeting. As Mayor Hilton pointed out at that particular special meeting, judging from the size of the turnout for the meeting, the special meeting notice was both sufficient and timely. Mr. Burgess goes on to criticize both Mr. Arvidson and me for giving incorrect advice regarding parliamentary procedure on two separate occasions. He's correct - he was misinfonned by the attorney and the clerk regarding two motions he made at two different Council meetings. Once the errors were discovered, we admitted them and explained the proper procedure. I have studied parliamentary law, but I have never claimed to be an expert. I do have a fairly good understand- ing of Robert's Rules of Order, but anyone who has ever reviewed the nearly 700 pages of text in the latest version of Robert's will tell you that this is a highly complex subject and there are very few "experts". In fact, I doubt if there is a registered parliamentarian working for any local government in the state of Alaska. Next, Mr. Burgess suggested that I elected to go to Juneau on September 9th to avoid consideration of my employment agreement by less than a full Council. He stated that it seemed strange that my decision to make this trip occurred sometime between Wednesday Noon (when the agenda closed) and Thursday afternoon (when the packets were delivered to Council). Actually, I had been asked to travel to Juneau to take part in this training two weeks prior to the trip. I declined, stating that there were no funds available in my travel budget or in the election budget for the training. Just before 5:00 p.m. on Wednesday, September 4th, I received a call from the Borough Clerk stating that she had funds available in her election budget to fund my trip if I could get away from the office. She stated that in her opinion it was imperative that I receive this training since the city will be counting ballots electronically for the first time this year. She added that she could justify spending borough dollars on the trip since I would be counting borough ballots from Moose Pass, Bear Creek and Seward. I had heard that Mr. Burgess was going to object to my contract, and I asked the Mayor to pull it from the agenda so that I could be present to defend it when it came up for adoption. I was absolutely amazed that Mr. Burgess would question why minutes were unavailable for approval on September 9th. Here is a chronology of the events prior to that meeting. The Council met in special session on the night of Tuesday, August 20th and again on Thursday, August 22nd. The agenda closing for the August 26th meeting was Wednesday, August 21st. Needless to say, there was not sufficient time to prepare these minutes prior to the August 26th meeting. On -,... ;)::) City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 58 Sunday, August 25th, the Mayor called and asked that I schedule a special meeting for August 26th, just prior to the regular meeting. Therefore, when I went home at Midnight Monday evening (the 26th), I had attended three special and one regular meeting of the Council, all of which needed minutes. August 27th was spent doing follow-up from the 26th's meeting. In addition, there was a special meeting of the Hospital Board scheduled for that evening which I attended and for which I had to prepare minutes. On the 28th, I did the follow up to the Hospital Board meeting and prepared the minutes from that meeting so that they could be included in the packet for the Board's regular meeting the following week. On August 29th and 30th, I prepared packets for Hospital Board, Planning Commis- sion and Trade Board, all of which were meeting the next week. Monday, September 2nd, was a holiday and I did not work. Tuesday, September 3rd, there was a staff meeting in the morning and a Hospital Board meeting in the evening. The Council agenda closed on Wednesday, September 4th, at Noon, but for all practical purposes, I had to have my agenda in to the Log prior to that, because I had to attend the Trade Board meeting at 11:30 a.m. that day. That evening, the Planning Commission met, and I attended that meeting as well. Council packets must be delivered on Thursday evening, and I was in the office until 7:00 p.m. on that Thursday putting the packet together. I would like to delegate some of these tasks, but I have insufficient funds in my budget to pay for overtime for the staff - I save these overtime dollars for emergencies such as when I am out of town or for the election. Added to everything that was done during this two week period, you must remember that the two months prior to an election are the busiest time of the year for a Clerk's Office. In addition, we have just revamped our filing system and our legislative history system, and Patsy has been devoting most of her time to this so that these projects can be completed. And, of course, there are the requests for public records which we receive with increasing regularity and which must be responded to in a reasonable time. So, in answer to your question, Mr. Burgess - No, two weeks is sometimes not enough time to prepare minutes. Burgess also questioned why Council packets contain attorney bills while the public packet does not. Since the attorney's invoices contain detail regarding litigation and 'other matters, we have generally considered the back up to the invoices to be confidential records of the city. I do release the cover sheet to the bills when requested to do so. I have no intention of releasing the back up unless ordered to do so by the Council. Finally, I was pleased to see that Burgess apologized to Deputy Clerk Patsy Jones for his behavior in her office. However, I continue to have concerns about my working relationship with Mr. Burgess. For whatever reason, Mr. Burgess does not like me. I can accept that. I don't believe any of his problems with me have anything to do with job performance - if they do, he should have approached me as I would approach an employee of mine - in a private setting. I can only assume that Mr. Burgess has some sort of personal reason for attacking my character in so public a manner, and since I don't know what this reason is, I can do nothing to I I I 59 City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 59 correct the problem - if there is one - or to alleviate the situation. I can only ask that Mr. Burgess put aside his personal dislike and deal with me in the same professional manner that I have always dealt with him and the other members of the City Council. In closing, I would like to thank the Mayor and the remaining members of the City Council for their support. I was sorely tempted to resign over this incident. It sometimes seems that the only feedback city employees get is negative, and the general perception sometimes appears to be that we are all underworked and overpaid. I know this isn't the case, and I think the Council and the citizens of this community can take pride in having a dedicated and hardworking staff who have the city's best interests at heart. For the most part, everyone from Tex and the boys at the city shop to the accounting clerks in the Finance Department deseroe our thanks and our compliments, not our criticism. We don't mind the hard work. We don't object to the long hours. What we would like is just a little bit of respect and an occasional pat on the back for a job well done. Thank you. 15. COUNCIL DISCUSSION Dunham asked for a status report on the library roof. Schaefermeyer stated that this was another roof which the city had hoped to get repaired prior to winter. Dunham stated that she, too, realized how the public felt about government employees. She stated that the average government employee put up with a lot from the public without thanks, and she took this time to thank the city crews that worked on the Sewage Treatment Lagoon and all employees of the city of Seward for their service. Hilton reminded everyone about the Bike Path Ribbon Cutting scheduled for Saturday afternoon. He also encouraged everyone to vote on Tuesday. He stated that he had enjoyed the last 8 years on Council and regretted that he would be unable to attend the October 14th meeting. He stated that he appreciated the support he had received during his tenure and noted that the city was fortunate to have the current city crew. He added that it had been a privilege to represent the city of Seward. 16. CITIZENS' DISCUSSION Kris Erchinger, 2015 Dora Way, stated that her forthcoming comments were prompted by the speech made by Burgess at the last Council meeting. She stated that she was concerned about the political climate which was developing in the city and stated that the Council should not be used as a forum for individual councilmembers to promote their own personal agendas. She questioned the motives behind attacks on the city administration and criticized Burgess for many of his remarks on September 9th. She encouraged the Council and the community to turn its attention to the future of the community. co City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 60 James Knudson, 223 Fourth Avenue, addressed the Council regarding selection of a chief of police. He stated that it was vital that the new council confirm the new chief of police. He also encouraged the city to reconsider the current qualifications for the position, stating that under the current requirements, Bencardino could not have been hired as chief. James Pruitt, Maple Street, noted that the road to A VTEC via Airport Road had fallen into disrepair. He stated that no one was plowing or maintaining the road and asked if the city could provide the necessary maintenance to keep it open. Chris Gates, Johnston Road, thanked Hilton for all of his hard and dedicated work for the community. He also thanked the rest of the Council for their hard work over the past several years. Katy Bagierek, 209 Lowell Canyon Road, thanked the staff and Council for their support during her two years of employment. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Schaefermeyer, responding to Pruitt's comments, stated that the problem with the city assuming responsibility of the A VTEC Road revolved around the issue of railroad crossings. He stated that the city would be required to maintain the railroad crossings and would assume all of the liability and risk that these crossings would impose if the city maintained the road. Diener added that the road in question was not on a dedicated ROW, but was located on property owned by the state, Herman Leirer and others. He noted that currently, there was a railbelt-wide ongoing discussion between local communities and the ARR regarding who should maintain, pay for and assume liability for railroad crossings. Hilton, responding to Knudson's concerns, stated that Council would be involved in confirming the appointment of the Chief of Police. Schaefermeyer concurred. He stated that the administration was currently advertising the position in several statewide newspapers in Alaska. IN response to questions from Krasnansky, Schaefermeyer stated that the city had placed recruitment ads in the Log. the Daily News, and the Times. and had received about one dozen applications thus far. He stated that he would not recruit out of state unless it appeared that there were no qualified applicants within the state. Schaefer- meyer stated that he had been criticized before for advertising out of town and particularly for advertising out of state. He stated that his goal was to fill the position as soon as possible; however, this could take one or two months. ~- 1 : .. . City of Seward, Alaska September 23, 1991 City Council Minutes Volume 27, Page 61 I Sieminski stated that, in his opinion, "Bencardino did not get a fair shake". Schaefermeyer stated that this was the first time Mr. Sieminski had broached this subject with him. 18. ADJOURNMENT The meeting was adjourned at 11:30 p.m. ~d)/~~, David L. Hilton, Sr. Mayor City Council i'J ,.~.:J, Volume 27 r'l,.f 5:; 1. CALL TO ORDER The October 2, 1991, special meeting of the Seward City Council was catl/?' I.:; order at 4:00 p.m. by Mayor David L. Hilton, Sr. 2. OPENING CEREMONY tvfayor Hilton led the pledge of allegiance to the flag. 3. ROLL CALL There were present: David L. Hilton, Sr., presiding, and Raymond Burgess Michael J. Meehan Beverly Dunham comprising a quorum of the Council; and I Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk ~ '"' - , - ,. City of Seward, Alaska October 2, 1991 City Council Minutes Volume 27, Page 62 ABSENT were: Krasnansky, Sieminski and Simutis were absent. 4. APPROVAL OF SPECIAL MEETING AGENDA Burgess moved to approve the Special Meeting Agenda as presented; the motion was seconded by Dunham and carried by unanimous vote of the Council. 5. NEW BUSINESS A. Canvass of October 1. 1991. Regular Municipal Election. The Clerk noted that the city had conducted a regular municipal election on Tuesday, October 1, 1991, at which 699 voters had cast city ballots. Murphy noted that she had displayed the precinct registers, questioned voter and absentee voter logs and the unofficial results of the election. She noted that the Counting Center had counted the ballots of 677 voters who were properly registered in time for the election and whose names appeared on the precinct registers. Twenty-two (22) voters had been required to cast questioned ballots because their names did not appear on the precinct registers. Murphy distributed a list bearing the names of the 62 electors who had requested absentee ballots. She noted that 60 of the requested ballots had been returned to the city in time to be considered by the Canvass Board. Of these, she recommended that the Council reject the following three ballots for the reasons stated: Precinct No.1 Ann D. Landkammer (Registered in Bear Creek) Marjorie Kessling (No record of voter registration) Precinct No. 2 Louis R. March, Sr. (Registered in Bear Creek) Meehan moved to accept the Clerk's recommendation to reject the three absentee ballots; the motion was seconded by Dunham and carried by unanimous vote. Murphy put the rejected ballots aside for safekeeping. Murphy stated that the other 57 absentee ballots received in time to be considered by the Canvass Board were cast by qualified electors of the city and were properly witnessed as required by law. She recommended that the Canvass Board count the ballots cast by the following voters: I I I (,", City of Seward, Alaska October 2, 1991 City Council Minutes Volume 27, Page 63 Precinct No.1 Precinct No.2 V. C. Anderson Vesta J. Anderson Robyn Audette Kathleen Bagierek Ruth O. Bomstead Margaret Branson Fred T. Brewster Peggy Brewster Wayne Carpenter Ann S. Cripps David B. Cripps James D. Dixon Kambe Fletcher Christine Hopkins Iris A. Johnson Mark Kansteiner Eiko Kawabe Dale R. Lindsey Patricia Linville Robert G. Linville Catherine McMillan Heather Mahan Ron Newcome Donald J. Oldow Pamela F. Oldow William D. Rice, Jr. Florita Richardson Monty Richardson Richard B. Rossie Brad Snowden Raymond St. Amand Robert B. Wall G. H. Werner Jason c. Werner John Woodruff Janie Anderson Kevin Anderson Keith A. Bailey Ethel C. Bottcher David Calvert Denis Dewane Amy Dubose Peter Fitzmaurice Timothy Fleming Gary J. Gannon Robert M. Hayes Kathy Hettick Larry E. Johnson Eileen M. Kulin Darlene F. Lust Lloyd D. McCauley Lorraine McCauley Nancy Y. Sadusky Steven A. Schafer Richard F. Seigel Cordelia Sewall Leslie Simutis Dunham moved to accept the Clerk's recommendation to count the fifty-seven (57) absentee ballots; the motion was seconded by Hilton and carried by unanimous vote of the Council. As Hilton read the names on the absentee ballot envelopes, Burgess opened the outer envelopes, removed the inner envelopes and set them aside to be opened later in the meeting. I' l . City of Seward, Alaska October 2, 1991 City Council Minutes Volume 27, Page 64 - Murphy distributed a list of persons casting questioned ballots on election day. She stated that twenty-two (22) questioned ballots had been cast by voters whose names did not appear on the precinct registration lists. She recommended that the Canvass Board reject seventeen (17) of the questioned ballots as follows: Precinct No.1 Tony E. Almond (Registered in Juneau) James W. Barkley (Registered in Bear Creek) Maranda Barrier (Registered in Anchorage) James Bencardino (Purged from voter list - Inactive voter status) Hugh W. Darling (No record of state voter registration) Iris A. Darling (No record of state voter registration) Chris Jones (Registered in Moose Pass) James L. Knudson (Purged from voter list - Inactive voter status) Arthur L. Walters (Registered in Anchorage) Paul T. Whitaker (Purged from voter list - Inactive voter status) Precinct No.2 Josephine c. Boyd (Registered in Bear Creek) Richard O. Boyd (Registered in Bear Creek) Corazon A. Dog (No record of voter registration) Gary Sampson (No record of voter registration) Noreen Steinbrecher (Registered in Sand Point) Roger W. Steinbrecher (Registered in Sand Point) Henri Lynn Zehrung (Registered in Bear Creek) Burgess moved to accept the Clerk's recommendation to reject the seventeen (17) ballots; the motion was seconded by Dunham and carried by unanimous vote. Murphy put the rejected ballots aside for safekeeping. Murphy stated that five 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 Shirley M. Munro (Left off precinct register in error) Debra J. Smith (Precinct error - Name was on list, but precinct workers failed to note it) Precinct No.2) M. Arledge (Registered in Precinct No.1; voted in Precinct No.2) City of Seward, Alaska October 2, 1991 City Council Minutes Volume 27, Page 65 I Eleanor A. McDonald (Left off precinct register in error) William S. McDonald (Left off precinct register in error) Meehan moved to accept the Clerk's recommendation to count the five questioned ballots; the motion was seconded by Dunham and carried by unanimous vote. As Hilton read the names on the questioned ballot envelopes, Burgess opened the outer envelopes, removed the inner envelopes and put them aside with the waiting absentee envelopes. The inner envelopes were then shuffled and opened by Burgess. The ballots were removed and read aloud by Hilton as Deputy Clerk Jones and Administrative Secretary Martin conducted the tally. Murphy read the results of the combined totals as follows: Precinct 1 Precinct 2 AbslOuest. Total MAYOR OF COUNCIL (2-Year Term; 1 to be elected) I BENCARDINO, Louis A. 142 110 21 273 CRIPPS, Donald W. 171 106 27 304 MEEHAN, Michael J. 79 53 14 146 Write-Ins 4 3 -0- 7 COUNCILMEMBER (2-Year Term; 3 to be elected) AMOS, Dane 40 27 13 80 ANDERSON-HUBBARD, Rhonda 132 108 21 261 CRANE, Dave 216 159 29 404 REAGLE, Clif 81 91 11 183 SCHAFER, Steven A. 70 42 15 127 SCHNELL, Garrett R. 52 29 8 89 SIEMINSKI, Bruce C. 137 74 23 234 SWARTZ, Karen A. 167 114 30 311 WEAVERLING, James a.T.) 51 10 3 64 WHITE, Dale 149 128 12 289 Write-Ins 1 -0- -0- 1 TOTAL VOTES CAST: 401 276 62/22 761 I TOTAL VOTES COUNTED: 401 276 57/5 739 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, City of Seward, Alaska October 2, 1991 City Council Minutes Volume 27, Page 66 October 7, 1991. She added that if no such protest was filed, the City Council would certify the election as valid and declare the results official at a special meeting called for that purpose at 6:00 p.m. on October 7th. 6. COUNCIL DISCUSSION Hilton congratulated the newly elected mayor and councilmembers. 7. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COMMENTS: None 8. ADJOURNMENT: The meeting was adjourned at 4:45 p.m. ~A-}:f)~d~~ {~. David L. Hilton, Sr. Mayor ,~., :'. ;.:.~ "' : ~~. (:.tty of Seward, Alaska .~ .... ",~ OctoJJ!!'.~,)991 ~.n', ,', r -::0."1- ,..,.. "....~' .,'-', 4~', ,~<':l. ;>0,~.,~,~i~:':";' ALL TO ORDER City Council Minutes Volume 27, Page 66 The October 7, 1991, special meeting of the Seward City Council was called to order at 6:00 p.m. by Mayor David L. Hilton, Sr. 2. OPENING CEREMONY Councilmember Meehan led the pledge of aUegiance to the flag. 3. ROLL CALL There were present: David L. Hilton, Sr., presiding, and Raymond Burgess Beverly Dunham James Krasnansky Michael J. Meehan Bruce Sieminski comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Patricia J. Jones, Deputy City Clerk I I I cre () 1 City of Seward, Alaska October 7, 1991 City Council Minutes Volume 27, Page 67 ABSENT was: Leslie Simutis (unexcused) 4. APPROVAL OF MINUTES Meehan moved to approve the September 23, 1991, regular meeting minutes and the October 2, 1991, special meeting minutes as presented; the motion was seconded by Dunham and carried by unanimous vote. 5. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Sieminski and carried by unanimous vote. 6. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 7. NEW BUSINESS A. Certification of Election. Meehan moved to certify the October 1, 1991, election as valid and declare the results as official; the motion was seconded by Burgess and carried by unanimous vote. B. Swearing-in of newly-elected Mayor and Councilmembers. Deputy City Clerk Jones administered the oath of office to newly elected Mayor Donald W. Cripps and newly elected Councilmembers Dave W. Crane, Karen A. Swartz and Dallas R. White. Hilton, Meehan and Sieminski stepped down and Cripps, Crane, Swartz and White took their seats at the Council dais and participated in the remainder of the meeting. NOTE: The Following presentations were made at this time. Cripps presented David L. Hilton with a plaque recognizing his service to the city of Seward as Mayor in 1991 and Councilmember from 1983 to 1991. Hilton stated that it had been an honor and privilege to serve on the City Council. He noted that he looked forward to spending more time at home in the future. He added that he hoped to see the Council work together for the good of the community in the future. I ~ City of Seward, Alaska October 7, 1991 City Council Minutes Volume 27, Page 68 Cripps presented a gold pan to Michael J. Meehan in recognition of his service to the city of Seward as Councilmember from 1981 to 1991. Meehan thanked the community for the opportunity to work for them the past ten years. He stated that many good things had been accomplished and he felt that the future of Seward could be taken care of by the new Council. He congratulated the new Council on their election. Cripps presented a plaque to Bruce C. Sieminski for his service to the city for the past two years. Sieminski thanked everyone for the opportunity to serve on the Council. C. Election of Vice Mayor. White moved to appoint Dunham as Vice Mayor; the motion was seconded by Swartz and carried by unanimous vote. 8. CITY MANAGER REPORTS Schaefermeyer welcomed the council and congratulated them on a successful campaign. He stated that he and the administrative staff looked forward to working with them in the future. Schaefermeyer informed the Council that he would like to set up an orientation meeting between the administration and the Council to provide an opportunity to present the budget, capital improvement plan, Legislative priority package for the past year and to discuss the various missions and projects of each department. He noted that this would be a good time for the Council to become acquainted with the city staff. He suggested a noon work session on Saturday with lunch provided. Schaefermeyer stated that the first task before Council was to review the 1992 Legislative priority list for the city since Governor Hickel was in the process of developing the state budget at this time. He noted that in the past few years, replacement of the hospital had been the number one priority project. He stated that city lobbyist Kent Dawson could attend a work session with the council the week of October 14 to discuss legislative priorities and look at a possible scaled down version of the hospital replacement project. A work session was scheduled for Thursday, October 17, 1991, at 7:00 p.m. to discuss legislative priorities for the city of Seward with Kent Dawson. Schaefermeyer reminded the council that there was a work session on Tueday, October 9,1991, at 7:00 to discuss the streetlights in the downtown area. 9. COUNCIL DISCUSSION I I I 69 City of Seward, Alaska October 7, 1991 City Council Minutes Volume 27, Page 69 White stated that he looked forward to working with the Council. He encouraged the public to feel free to call him anytime with any input or concerns they may have. Crane stated that he was proud to have been elected to the Council. He added that he looked forward to moving ahead in the next two years. Swartz thanked the public for attending the meeting. She stated that she was glad to be back and would work hard to keep the promises she had made. Krasnansky stated that he looked forward to working with the Council. He hoped that upcoming events could be dealt with in a positive way. Dunham thanked the members of the outgoing Council for their service to the city. She stated that many good things had happened in the past. Cripps thanked the outgoing Council for its service to the city. He stated that he had recently attended Korean National Day at the Korean Consulate General's office in Anchorage where he had met with the governor, Ron Garzini and Special Assistant to the Governor, Jim Rockwell. Cripps asked the Council to consider that the compensation received by the Mayor and Council be put into a special education fund for the future. 16. CITIZENS' DISCUSSION Bruce Sieminski, 1302 Benson, asked about the scholarships which were made available through Alaska Pacific University in exchange for bonding last year. Schaefermeyer replied that there were four tuition scholarships available, one per year. He noted that no student had applied last year so two scholarships might be available to seniors this year. David L. Hilton, 2404 Birch Street, encouraged the Council to keep the hospital replacement project as the city's number one priority. He stated that this project was badly needed in the community. Hilton added that he had left an article regarding legal services for municipalities with Mayor Cripps and he encouraged the Council to review this article. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS In reply to a question from Swartz, Schaefermeyer explained that the school administered the scholarship fund available to students from Alaska Pacific University. 18. ADJOURNMENT ';-0 City of Seward, Alaslal October 7, 1991 City Council Minutes Volume 27, Page 70 I ..,lliJ.,{,J' uJ.-- --., 'Of SE:~ ~> · ,"" ~... ~..'l~ . ,o,"YVlfif~ . "a r, . ~ . _'~ cr~l Jones .::: -- eput%=ity Clerk SEAL .~t __ (City Se~l) '\.. . "'&+ \.~...... \" '. t' 1, . flifu if S d A'--ka "' ........ "-'._:; p ewar, "'" . t OF ~\..Oclober 14,1991 '~.".,...'r' The meeting was adjourned at 6:30 p.m. /-, ~~(~ Donald W. Cripps ,- Mayor City Council Minutes Volume 27, Page 70 1. CALL TO ORDER The October 14, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Beverly Dunham. 2. OPENING CEREMONY Councilmember Burgess led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Beverly Dunham, presiding, and Raymond Burgess James Krasnansky Dale White Dave Crane Karen Swartz comprising a quorum of the Council; and Darryl Schaefenneyer, City Manager Michael Yanez, Assistant City Manager Linda S. Murphy, City Clerk ABSENT was: Mayor Donald W. Cripps (excused) 4. SPECIAL PRESENTATIONS A. Acting Police Chief Dave Brossow accepted a gold pan award for retired Chief Bencardino from the Council in appreciation of Bencardino's 17 years of service to the city. -1- I I I 71 City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 71 B. Dunham noted the following proclamations: 10/91 - Domestic Violence Awareness Month 10/19-27 - Red Ribbon week 5. APPROVAL OF MINUTES Krasnansky moved to approve the October 7, 1991, regular meeting minutes as written; the motion was seconded by Crane and carried by unanimous vote. 6. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the Regular Meeting Agenda as presented; the motion was seconded by Crane. Burgess requested the deletion of the two New Business items until the 10/28 meeting when the Mayor would be present. Schaefermeyer noted a memorandum regarding the acquisition of Lots 6, 7, 8 & 9, Folz Subdivision, which would be discussed under City Manager Comments. The question was called, and the agenda was approved as amended by unanimous vote of the Council. 7. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. 8. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 9. APPROVAL OF CONSENT CALENDAR Swartz moved to approve the Consent Calendar; the motion was seconded by Krasnansky. Burgess asked to move Item F to New Business. The question was called, and the Consent Calendar was approved as amended by unanimous vote. The following actions were taken: A. Resolution No. 91-126, authorizing signatures for aU city bank accounts, was approved; -2- 7? . ...j City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 72 B. Resolution No. 91-127, requesting Municipal Assistance funding from the state of Alaska, was approved; C. Resolution No. 91-128, authorizing payment to Chugach Electric for emer- gency work performed under a mutual assistance agreement with the city, was approved; D. Resolution No. 91-129, awarding a contract to METCO, Inc., to perform on- call snow plowing and sanding services, was approved; E. Invoice from Preston Thorgrimson for legal services totalling $70.00, was approved for payment; F. Invoices from Perkins Coie for legal services were moved to the regular meeting agenda for consideration: G. Second Quarter 1991 Taxable Sales Report was noted for informationi and H. Application for Games of Chance & Skill filed by DUCKS UNLIMITED was noted for information. 10. PUBLIC HEARINGS None 11. PRESENTATIONS WITH PRIOR NOTICE ONLY None 12. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction 1. Copies having been made available to the public, Dunham noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, amending 1 2.30.112 of the City Code relating to meetings and quorum of the Community Hospital Board. Burgess moved to introduce proposed Ordinance No. 657; the motion was seconded by Crane and carried by unanimous vote. Public hearing WiiS scheduled for October 28, 1991. 2. Copies having been made available to the public, Dunham noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, creating a hospital department and amending -3- I I I 73 City of Se1)){1rd, Alcsh October 14, 1991 City Council Minutes Volume 27, Page 73 POltj.,w.r of Chaptei ?..30 dei'Ji1'e with the Comnlumty Hospiial Board. Krasnansky moved tc intro(fuce propaBed Ordinance No. 6St}; the motion was seconded by Whitp. ...nd c~rrleC'. by UTta.nimo~.g vote: of the Council. Public hearing was scheduled for October 28, 1991. B. Ordini',nces for Public Hearing & Enactment None C. RCf.oh,Ha..ls 1. Copies having been made available to tlle public, Dunham noted by title only a propo~eo resolution entitled: A Rpsc;;J,I.fion of the City CouncH of the City of Seward, AJi>slti'l, il.v!hori'ri.ne An.telldn~"'D: No.1 to Lea.se No. RE-040, Lot (;, m~h~k 1, M....1'h,~. S~;;,dj'."i<;il,};:'.. MllIplty Ii.(~l;~(r that ;-,clio!. on this resolution had been continued from the Septemhe:r ?3r& hlef';tlIl.S cUld. a motion to appi'Ove was on the floor. Krasnansky asked if anyone had contacted Nikolic since the last meeting regarding the proposed ch()r_13"P~. Schaefermeyer stated that Nikolic had retu.rr.eJ a signed copy of the amendmehls; however, he had failed to have his signature notarized. The signature page had, therefoiT, been returned to Nikolic for notarizatioIl. The administration recommended apPlOval of the resolution. The question was called, and Resolutjon No. 91-114 was approved by w\animous vote of the Council. 2. Copies having been made available to the public, Dunham noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, awarding a purchase order to Hutchings Chevrolet to purchase vehicles for the Police Department and the City Shop. White moved to approve Resolution No. 91-130; the motion was seconded by Swartz and carried by unanimous vote of the Council. 3. Copies having been made available to the public, Dunham noted by title only a proposed resolution entitled: -4- 74 City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 74 A Resolution of the City Council of the City of Seward, Alaska, awarding a contract to Corroon & Black to provide insurance and risk management services to the city. Crane moved to approve Resolution No. 91-131; the motion was seconded by Krasnansky. Schaefermeyer noted that the city of Seward had been engaged in a relationship with Corroon & Black for the past 8 years. For the past 3 years, the city had obtained most of its insurance through the AMI)JIA insurance pool. However, several policies were still obtained from other sources through Corroon & Black. During this time, the city had been a party to a brokering agreement similar to the one before the Council for approval. In addition, a provision was included in the new agreement to provide for review of the city's coverage under the AMl/JIA to assure that the city was properly covered in all areas. Also, this contract would provide for risk management services, and the broker would be required under the agreement to maintain proper coverage for the city in all areas; if Corroon & Black failed to do this, the broker would be liable for any losses suffered by the city. In response to a question from White, Schaefermeyer stated that this agreement would be retroactive to July 1, 1991. Schaefermeyer noted that the city had held off on an agreement with Corroon & Black until it was certain that the city was to remain with JIA throughout this fiscal year. He assured the Council that the city had been insured all along, but there had been no letter of agreement with C&B during this time. The question was called, and Resolution No. 91-131 was approved by unanimous vote. 4. Copies having been made available to the public, Dunham noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, awarding a contract to Homeland Enterprises to construct handicap access to Seward General Hospital and appropriating funds. Burgess moved to approve Resolution No. 91-132; the motion was seconded by Swartz. Schaefermeyer stated that Seward General Hospital was in need of a handicap accessible entrance in the front of the facility to accommodate both handicapped individuals and the ambulance corps. He stated that the city had requested bids from local contractors and had received two bids by the filing deadline. Of the two, Homeland Enterprises had submitted the low bid, and he recommended award of the -5- I I I 75 City of Seward, Alaska Ociobr.l' 14, 1991 City Council Minutes Volume 27, Page 75 __,".--_ . -,.. - _. ______ _ y_ .-_.__.. -_'L ____ contract to Homeland :;0 that con!ltrur.iion could be completed while the weather still permitted. Referring to Cl sketch on the Board, Diener noted. the location of the proposed handicap access ramp. He stated that he had considered the im,tallation of heating coils beneath the concrete ramp to keep it free of ice and snow. However, the cost of installing and mai.ntaining the coils would be quite high and could dp.lay construction of the project until next spring. He stated that, in his opinion, a mote desirable altemative was the construction of a canopy over the ramp to keep moi!lo.J.re from acr.umulating on the ramp and to protect those accessing the hospital by this means from the weather. Diener stated tllat COllstruction of the canopy would be bid in the Sprine for construction next season. The questioll was called, and Resolution No. 91-13Z WillS approved t.j Uh?nimOUS vote. 13. UN"HNIGEED BUGrNESG None 13. NEW BUSINESS A. ~!l)tments to the Communit):llos.}'it"l !3QPtQ. Dl?leted B. Deleted ~QjnfDl.~nLof Council ref!Le.~!lt<'Jjve tp tlleCO!IlI"!!Utu\y I IQ~!*.~I Board. C. Perkins Coie Invoices for legal s~_rvir.eG. 1f..r?.cllOlrwky mcverl t& "p)Jrove paYUledt of the invokes; the motion was seconti.ed by Crane. Burgess moved to postpone action on the invoices until the October 28th meeting; the motion was seconded by Swartz. Swartz stated that she would like to go over the invoices either in a work session or a meeting. White asked if the city would incur interest if payment was not made at this time. Schaefermeyer stated that the Perkins Coie had never assessed interest to the city in the past, and he did not feel this would present a problem at this time. Burgess stated that he would like to have a work session or an executive session on October 21st either with or without the attorney. Schaefermeyer stated that the Council should discuss the invoices with Arvidson since they were his bills, not the manager's. He stated that he could attempt to answer any questions the Council might have, but this could best be done by Arvidson. Dunham suggested that the Council follow Schaefermeyer's advice, adding that this approach would reinforce the fact that Arvidson was a Council employee. Krasnansky stated that Arvidson might want to decide if the discussion was to be private or public. Crane stated that he would recommend a work session with the Council next week so that the Council would be able to get public input and would have -6- '"'"r, City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 76 adequate time to get questions answered. This could then be followed by an executive session with Arvidson prior to the next meeting. The Clerk was instructed to schedule a work session to begin at 7:00 p.m., Monday, October 21, 1991, in order to discuss the cost of legal services. The Clerk was further instructed to schedule a special meeting on Monday, October 28, 1991, beginning at 5:00 p.m., in order to meet in executive session with the attorney to discuss legal costs. The question was called on the motion to postpone, and the motion carried by unanimous vote. 15. CITY MANAGER REPORTS Schaefermeyer noted his memorandum concerning the acquisition of Folz Subdivision property. He stated that he intended to go forward with the acquisition of the property on Tuesday as provided in Resolution No. 91-104 unless there was some objection from the Council. He stated that the site assessment study did not warrant additional expenditures for an environmental assessment. In response to a question from White, Schaefermeyer stated that the city would remove the structures on the property as well as any horse manure present. He also noted that any asbestos present in the existing house was not the type to cause concern. Crane stated that he had heard concerns expressed by others about locating a substation on the property; however, after personally inspecting the site, he had decided that removal of the present structures and construction of the substation would actually be an aesthetic improvement to the area. Burgess asked if the city could provide security for a substation outside the city limits. Schaefermeyer responded that the city currently owned a substation and a switching facility at Mile 24 and a substation at Daves Creek. He noted that neither of these facilities had been a security problem. Schaefermeyer reminded Council of the Thursday evening work session with Kent Dawson to address legislative priorities, including hospital replacement. Burgess asked if the work session could be postponed for one week so that the new Mayor could attend. Schaefermeyer stated that Dawson would be out of state for the next three weeks, and it was imperative that the Council come to some agreement regarding legislative priorities soon. In addition, the Borough had requested city priorities by October 25th so that they could be included in the Borough's packet to the legislature. 16. COUNCIL DISCUSSION -7- I I I City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 77 Crane noted that the Council hac{ been receiving quite a bit o~ correspondence. He stated that he wanted to comment on a recent lettel to Senator Stevens legarding the discontinuation of medivac service for Seward. He stated that he hoped the city would continue to work on this issue. He also commented on a letter from Art Osborn regarding the SIFA youth exchange program and asking for more Council/city involvement. He stated that he would gladly participate in such a worthwhile project and encouraged more participation from the city. Burgess stated that as a member of the Council, he was extremely embarrassed because the presentation made earlier in the meeting was not made at Bencardino's retirement party. He also stated that there was a tremendous amount of interest in the community regarding the hospital project and noted that this particular project deserved numerous work sessions and opportunities for the public to comment. Dunham noted former Councilmember Sieminski's presence and tllanked him for his continued participation in the public process. 17. CITIZENS' DISCUSSION JIM PRUITT, Maple Street, stated that he had attended the Alaska COMFISI r show at the Sullivan Arena. While there, he met with representatives of tr.~ HU"lana and Providence Medivac programs. He stated that he discussed mecliva(: facilitie!: will. them and asked about the possibility of locating a medivac team in Seward. alollB "with a first class trauma centel. Pruitt stated that sinre the problem with medlvac sel vices ~ecmerl to be getting into Seward rather than out, tlUs approat::h could be the idea~ solutioh. Pruitt also stated that heating coils should be installed. under the hOE:pital ramp. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS SWARTZ stated that Pruitt's comments regarding locating a medivac team in Seward should be looked into. In response to Pruitt's comments regarding the access ramp at Seward General Hospital, Diener stated that the under-slab heating coils were expensive to operate, expensive to install and unreliable. He said the preferred option was a canopy over the ramp to protect it from moisture, noting that this would be less expensive in the long run. Also, including heating coils in the project at this time would delay construction until next year, since it would require redesign as well as ordering the coils. Krasnansky asked if there was a possibility of installing equipment which would allow IFR at the Seward Airport. Schaefermeyer stated that the city had requested a grant several years ago to install a microwave landing system at the local airport. Valdez had installed a similar system, but later found that there was not enough passenger traffic to warrant using that system. The FAA had stated that IFR would not work in Seward. Schaefermeyer stated that former Representative Cato and former Police Chief -8- 78 City of Seward, Alaska October 14, 1991 City Council Minutes Volume 27, Page 78 Bencardino had at one time worked on placement of a navigational beacon in this vicinity. However, the nearest desirable location from an operational standpoint was in the vicinity of Rugged Island and would not help with a missed approach. In addition, liability and maintenance of such a facility would be the responsibility of the state and the city, and neither wished to enter into such an agreement. Schaefermeyer stated that this issue might warrant further investigation as technology improved. Burgess stated that he had spent a week at a navigation school in California last summer where they were now employing systems using GPS which might work in Seward. Crane thanked Schaefermeyer and City Department Heads for last Saturday's presentations regarding departmental operations and a partial tour of city facilities. Dunham stated that the hospital should be included in any discussion regarding staffing a medivac team if this ever came about. 19. ADJOURNMENT The meeting was adjourned at 8:45 p.m.. ~?/t~~ Vice Mayor -- : . . -... . . ..: .. '. "" ~": t, ...~"'~ 1 ~~.., -+-'t, .,,~ >.... '.> e.. v'4:i'of",.,~"/ -9- I I I "i ~"! City of Seward, Alaska Octobz1' 'lB, 1991 City Council Minutes Vlllume 27 Puge 79 1. CALL TO ORDER The October 28, 1991, special me<=>t!:i\g of the Seward City Couw:i1 wc,s called to order at 5:00 p.m. by Mayor Donald W. Cripps. 7,. OPENING CJiREMOhTY Councilmember Whi::e led the pledge of allegiance to the flaB. 3. ROLL CALL There were present: Donalrl W. Cripps, presidine, and Rayr:lond Burees~ Dave Crane Beverly DunhC:iiG Jame~ YJ'a~1l,m31~y Kat'!",. A. Swc,..;.:t, Daie Wl.i~e comprising a fJum.....~n of the Council; ancl. DatI y:. Sc'haefEuneyel', City JI.'lar,;:gc>. LiDC;" ~;, Murp\'y, City Ck.!.. 4. APPRGVi, i. f;i:liCiAL l\ti:"EETlNG AGFNOA I<".rasn:t.:t:.ol"y T..:c'leQ. ~G "'l'pi'(,~e the Spe(;ii'~. Meefu'b Agend.. as pJes,zJ1teo; h'te motion was seconft~(: by Swart:t and carried with.>ul 01: jectioJt. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. SPECIAL ITEMS A. Request for" Executive Session to discuss attorney services. Krasnansky moved to meet in Executive Session to discuss attorney services and fees; the motion was seconded by Burgess and carried by unanimous consent. 7. CITY MANAGER REPORTS None 8. COUNCIL DISCUSSION None 9. CITIZENS' DISCUSSION None 10. COUNCIL & ADM~NISTRA TION RESPONSE TO CITIZENS' COMMENTS None 0.,0 t ;. City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 80 11. ADJOURNMENT The meeting was adjourned at 5:05 p.m., and the Council immediately convened into Executive Session after excusing the City Manager and the City Clerk. , .,' /~ ' · /J/"f..t u/:.ett. q'L- Donald W. Cripps Mayor : . ~ . ':"'~r.~~:~i~~ ,db " i9~)..I' City Council Minutes Volume 27, Page 80 1. CALL TO ORDER The October 28, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Swartz led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Raymond Burgess Dave Crane Beverly Dunham James Krasnansky Karen A. Swartz Dale White comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Linda S. Murphy, City Clerk 4. APPROVAL OF MINUTES I I I 81 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 81 Swartz moved to approv~ the Octot..... 1i,!" 1991, r€eul;o,r meeting minutes as presented; the motion w<"s secor,ded by DunhitM and caliied by unanimous vote. 5. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the R~gular Meeting Agenda as presented; the motion was secor.ded by Dunham and carried by unanimous vote. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present at this time. His report was given later in the meeting. [See Pc;Be No. 86.] 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING -HM MOFFATT, Mile 1, Exit Glacier Road, addressed. the Council regarding appointments to the Hospital Board. He asked the Council to consider the recent actions of one of the applicants recommended for appointment by the Hospital Board when making its decision. Moffatt stated that this individual had circulated. a leti:ei to the local newspaper and throughout the city which contained (In ethni.c sll'r di;-ected at the Assistant City Manager. He urged the Council to deny him a seat on tlle Hospital Board. LOUIS NAUMAN, 1603 Seward Highway, spoke regarding Seward General Hospital. He stated that the hospital existed to seive peoplf: oi the commu.'.ity, not the physicians, hospital board, city administration, or the city council, and added, that the primary function of the hospital was to provide the community with some level of medical care. He stated that the hospital was a professional organization which must be administered in a professional and business-like manner. He noted that it was the management's responsibility to see that the cost of running the hospital did not exceed the ability of the community to pay. Nauman stated that the Board should not become a rubber stamp for the administration, the physicians or the hospital staff. Instead, it should set policy and keep itself fully informed regarding the operation and administration of the hospital facility. He stated that too much time had been devoted to the quest for a new hospital facility to the detriment of the overall operation of the existing hospital. He suggested that what was needed was a concentration on proper management and operation of the existing facility. Nauman made the following recommendations: 1) See that board has the collective wisdom and intestinal fortitude to properly supervise the operation of the hospital; 2) Require a monthly written report from the Council representative assigned to the Board; 3) See that a study of the use of space at the hospital is undertaken to include the clinic building and establish a firm completion date; 4) See to it that the 82 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page (J2 Scope of Services study is completed within the next 6 months; 5) Instruct the Board to implement a "Peer Review" system and assign a completion date; 6) Put the acquisition of a new hospital on the back burner; and 7) Establish a schedule for joint meetings with the Board separate from budget meetings. LOUIS R. MARCH, JR., Mile 5.5, Seward Highway, spoke regarding legal fees. He stated that the city had paid over $1.7 Million to City Attorney Arvidson over the past 5 years. March said that he supported hiring a staff attorney and the immediate termination of Arvidson. March also noted legal charges in September regarding recall petitions Arvidson had been asked to review. He stated that the recall process was a simple one and was the responsibility of the Clerk, not the Attorney, adding that if Murphy could not properly do her job, the Council should hire someone who could. BRUCE SIEMINSKI, 213 Benson, spoke regarding Resolution No. 91-136. He asked if the city had identified the site of the proposed park improvements. Cripps noted the list of proposed plans included in the Council packet and stated that the only restrictions on use of the grant funds would be a requirement that the city adhere to the plan originally submitted by the Parks and Recreation Department. Schaefermeyer stated that the money would be used for improvements to property currently zoned park land and designated as the Seward Greenbelt or Waterfront Park. RICHARD BOYD, 1125 Park Place, member of the Community Hospital Board, asked the Council to avoid doing anything in haste which could adversely affect the hospital. He noted that he had been a member of the Board for one year and was just now beginning to realize his role and responsibilities. Boyd stated that it would be a mistake to replace the hospital with an emergency care facility. He said that the community needed a place of birth as well as a place to die, and he noted several local citizens who had returned to Seward to die so that they could be near their families. Boyd stated that the hospital was just beginning to make progress. He reminded Council that the Board had been responsible for a third physician locating in Seward and was currently talking to a fourth physician who might relocate to Seward within the next year. He urged the Council to avoid any actions which would interrupt the smooth operation of the facility and asked that Council postpone any action on the proposed ordinance (No. 658) until after the Board's retreat in November. DUB MCELHANNON, 502 Fourth Avenue, administrator of Seward General Hospital, spoke regarding proposed Ordinance No. 658. He stated that there were three other city-owned hospitals in the state of Alaska. Only one, Cordova, was operated much like Seward General Hospital with a Council appointed Board. In Petersburg, six of the seven board members were elected and one was appointed by Council. Wrangell had looked at making its hospital a department of the city, but had opted not to do so. He stated that although he had only been in Seward for about two months, the Board appeared to be eager and willing to work hard. He also urged the Council to show a united front in Juneau regarding the need for a new hospital. Finally, he invited the I I I 8'1 i) City of Seward, Alaska October 28, 1991 City Council Minutes Volume '),7, Pnfrp. 83 -~~ . -....--. Council to meet with the Hospital Board at its November 9th retreat to discuss hospital issues before acting on the ordinance. 8. APPROVAL OF CONSENT CALENDAR Krasnansky moved to approve the Consent Calendal' as presented; the motion was seconded by White. White asked to move Items C, G, H, and N to the appropriate places on the regular meeting agenda. Crane asked to move Item J to the regular agenda. Schaefer- meyer requested the deletion of Item N. The question was called, and the Consent Calendar was approved as amended. The following actions were taken: A. Resolution No. 91-133, authorizing the destruction of the ballots from the 1990 regular election, was approved; B. Resolution No. 91-134, commending the Seward Seahawks Boys and Girls cross country teams for winning region and state championships, was approved; C. Resolution No. 91-136, authorizing an application for funding assistance for outdoor recreation projects from the Land and Water Conservation Fund, WaS moved to the regular meeting agenda; D. Resolution No. 91-138, authorizing the city jail contract, was approvecl; E. Resolution No. 91-139, supporting the University of Alaska's request for state funding for dock design and construction, was approved; F. Resolution No. 91-140, endorsing the candidacy of City Clerk Linda Murphy for a seat on the Board of Directors of the International Institute of Municipal Clerks, was approved; G. October 1, 1991, invoice for legal services related to the Exxon Valdez oil spill totalling $1063.67, was moved to the regular meeting agenda (New Business); H. Perkins Coie invoices for legal services as follows were moved to the regular meeting agenda (Unfinished Business): 05/91 - Chugach lease/prepayment agreement - $4725.00 05/91 - Chugach Alaska Bankruptcy - $4165.97 05/91 - Police Internal Investigation - $8390.77 07/91 - Legal services - $15,203.83 08/91 - Legal services - $16,382.92 09/91 - Legal services - $27,091.19 84 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 84 1. Request to cancel the November 11th Council meeting was approved; J. Request for authorization to begin lease negotiations with South Central Radio was moved to the regular meeting agenda; K. October 15, 1991, city investments report was noted for information; L. Report on self-reading of electric meters as requested by Krasnansky was noted for information; M. October 22,1991, status report on local oil spill response plan was noted for information; N. Seattle Fish Expo trip report as filed by Chris Gates was not available for distribution and was deleted from the agenda; and O. Proclamations as follows were noted for information: November 1991 - Alzheimer's Disease Month October 20-26, 1991 - National Business Women's Week 9. PUBLIC HEARINGS None 10. PRESENTATIONS WITH PRIOR NOTICE ONLY A. Tom Staudenmaier - Proposed Special Election to allow the voters to decide if they wish to sell the Seward Electric Utility to Chugach Electric. (Resident of Eagle River) Staudenmaier stated that he represented a substantial number of people dealing with the public utility issue. He asked the Council to order a special election to allow the citizens of Seward to decide if they wished to sell the electric utility to Chugach Electric at fair market book value. He stated that he had a commitment from the CEA Board that CEA would purchase the utility and bill local consumers at the same rate charged in Anchorage. In addition, he said that CEA would guarantee maintenance of standby generation units in Seward. Staudenmaier also claimed that he had contributors willing to pay one-half the cost of a special election which the City Clerk had estimated would cost approximately $1500. He warned that if the Council did not proceed with the election, his group could seek recalls and court challenges. 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction 1. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: I I I 85 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 85 An Ordinance of the City Council of the City of Seward, Alaska, establishing a community development departn.tent. Crane moved to introduce Ordinance No. 660; the motiGn waG seconded by Burgess. Swartz asked if this was to be a step up in Martin's scope of work. She also asked if creation of a new department would entail hiring a secretary or giving Martin a salary increase. Schaefermeyer stated that this would not increase the scope, size or number of activities, duties or responsibilities, nor would it result in more personnel. Instead, it reflected the duties actually performed by Martin for a number of years. White asked if another administrative assistant would be hired to take Martin's place. Schaefermeyer repeated that there would be no increase in personnel or personnel costs associated with this ordinance. The questiar. was called, and th~ ordinance was introdu.ced by unanimous vote of the Council. Public hearing was scheduled for November 25, 1991. 2. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alask..., amending SCC 1 13.01.025, Clearing Gidewallrs of Snow and. Ice. Swartz moved to introduce Ordinance No. 662; the motion was seconded by Dunham. White asked about the provision which would not allow property owners to plow the snow from private driveways into ditches along side the roadway. Schaefermeyer stated that if this action required the city to clear drainage ditches to prevent flooding when the snow thawed, the city would have the authority to bill the property owner who had placed the snow in the drainage ditch. However, this was dependent on whether the action of the property owner caused extra work and expense on the part of the city. Swartz asked if this would apply to those clearing a way into their homes before the roads were plowed. Diener stated that snow clearing had become a real problem in Seward and elsewhere around the state. He stated that the city was not really concerned about the private individual who cleared a residential driveway or sidewalk into the public right of way. However, the city had experienced problems in the past with commerdal business owners who plowed parking lots into the right of way, making extra work and cost for the city. 86 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 86 Crane asked if it was possible to have a copy of the ordinance hand delivered to local citizens who now have sidewalks for the first time. Diener noted that an announcement would be coming out in the next issue of the local newspaper. In addition, the city would also distribute the notice to all residences with an adjoining sidewalk and would post the notice around town. Diener noted that most people in town have kept their sidewalks clear, and those who did not had received a visit from a city employee asking them to take care of the problem. The question was called, and the ordinance was introduced by unanimous vote. Public hearing was scheduled for November 25,1991. 3. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, rezoning Lots 13, 14 and 15, Block 18, Original Townsite of Seward, to conform to the existing Land Use Plan. Crane moved to introduce Ordinance No. 663; the motion was seconded by Swartz and carried unanimously. 4. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, amending SCC 1 15.10.225, Land Uses Allowed, to permit single family residences in the Auto Commercial Zone. White moved to introduce Ordinance No. 664; the motion was seconded by Swartz and carried unanimously. . RECESS: The meeting was recessed at 8:34 p.m. and reconvened at 8:45 p.m. BOROUGH ASSEMBLY REPORT (Taken out of order) Kenai Peninsula Borough Assembly Representative Jonathan Sewall gave a verbal report of the October 8th meeting of the KPB Assembly. 11. ORDINANCES AND RESOLUTIONS (Continued) B. Ordinances for Public Hearing & Enactment I I I 817 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 87 1. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, amending SCC 1 2.30.112 relating to meetings and quorum of the Community Hospital Board. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. Swartz moved to enact Ordinance No. 657; the motion was seconded by White and carried by unanimous vote of the Council. 2. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, creating a hospital department and amendi!lg portions of Chapter 2.30 dealing with the Community Hospital BOC'.rd. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. AL LAMBERSON, Mile 7, Seward Highway, stated that he had been a member of the Community Hospital Board for seven years. He stat~d that running a hospital was a complicated operation requiring members of the board to take the time to be informed about hospital issues and responsibilities. He recommended that the Council leave the Board structure "as is". LOU BENCARDINO, 519 Fifth Avenue, stated that he agreed with most of those testifying earlier. He stated that the proposed ordinance would create problems for the community as a whole and stated that the hospital would be better administered by the Board than by the City Council. BRUCE SIEMINSKI, 213 Benson, recommended that the Council take some time to think about this ordinance prior to taking action. He suggested that action be postponed for six months while the Council sought legal advice concerning the proposal. JONATHAN SEWALL, Dimond Boulevard, stated that there was a role for the Hospital Board. However, it was the rank and file employees who made the organiza- tion, not the Board. He noted that a couple of years ago, the hospital employees had endorsed a similar proposal. He stated that many employees supported the ordinance but were shy about speaking in public. He concurred with Nauman that the administra- 88 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 88 tion had done a disservice to the hospital and the community by overemphasizing the problems and underemphasizing the good. He stated that there were many good employees at the hospital who were competent and dedicated to the care of the people of the community. He repeated that a majority of hospital employees supported the ordinance, and he urged the Council to take this into consideration. Dunham moved to enact Ordinance No. 658; the motion was seconded by Swartz. White stated that there had been too little time for him to make a decision regarding this issue. White moved to postpone action on the ordinance until the second meeting in January, 1992; the motion was seconded by Dunham. Dunham stated that she had received more calls on this issue than on any other and because of this she suggested that the ordinance needed additional in depth study. She recommended a series of meetings with the Board, physicians, hospital administra- tion and the public to determine what course of action was in the public's best interest. Swartz stated that she, too, had received more input on this ordinance than on any other issue. However, she felt that it was time to act. Burgess stated that this was an important decision, and he hoped that it would not be made immediately. He stated that the Council needed at least one, if not two, work sessions as well as an executive session between Council and Hospital Board. In addition, he suggested an executive session with local physicians. Burgess noted that he, too had received numerous telephone calls, more for the ordinance than against. However, there were several issues which should be addressed prior to action on the ordinance such as the Brim contract. He stated that for many this was an emotional issue, but it was important to keep emotions out of the decision making process. Krasnansky stated that he did not expect to see this ordinance enacted at this meeting. However, if it was postponed, the Council should make it clear to the Board that it was to complete the scope of services report prior to the end of January. Cripps stated that he, too, had been lobbied. He stated that the Hospital Board had been in place since 1985, and Brim had been on board for more than one year. He added that now was the time for action, not dialogue. He stated that the seven members of the Council had the accountability and the responsibility to assure the healthcare of the community and stated that it was in the best interest of the community for the Council to do something of a positive nature, not postpone the ordinance. Krasnansky stated that Council should address the fact that over $400,000 of taxpayer money was currently controlled by people with no accountability to the public. I I I 89 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 89 Swartz stated that the situation at the hospital had been going on for a long time. She stated that the city was now in the position of having to take full financial responsibility for the hospital. She added that she was ready to make a decision immediately. Crane stated that making a decision this quickly, especially with four new members of Council, would be an injustice to the people of the community. He stated that rushing into a decision was not good business for the city or the public. He stated that he recognized that there were ongoing problems at the hospital, but the Council should work together with the Board, hospital employees, and the administration to resolve these problems. Crane said that it was impossible to make a rational policy decision without first understanding the long term and short term costs of an action to the city and the hospital. He stated that he had also received a number of telephone calls, but none of those favoring enactment of the ordinance had been able to answer his questions concerning implementation. Crane stated that one year to change an entity like the hospital was not enough time, and he suggested that delaying a decision for three months would not hurt anything or anyone. Dunham stated that over the past five years she had warned the Council that the city must face the fact that there was a problem with the hospital. She stated that many of these problems could not be addressed in public, but would require an executive session. She noted that as far as liability was concemed, the city had been liable all along. Dunham stated that it was clear that some dialogue was needed, adding that the city had ignored this situation for too long a period of tinlC. She stated that she knew the Hospital Board members had a horrendous job to do; however, it was the responsibility of the Council to get to the bottom of the problems and do something about them. White stated that his reason for suggesting the postponement was to give the hospital employees a chance to vote on their preference. In addition, he suggested that the Council look into cost to the city of implementing the ordinance. He stated that the Council also needed time to work with the Board to understand the problems before a reasonable decision could be made. White stated that he was very much concerned to hear that many of the employees were afraid to speak out because of a fear of repercussions and added that he would like to discuss this with the Board. The question was called, and the motion to postpone Ordinance No. 658 until January 27, 1991, was approved with Burgess, Crane, Dunham and White voting YES and Cripps, Krasnansky and Swartz voting NO. C. Resolutions 1. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: 90 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 90 A Resolution of the City Council of the City of Seward, Alaska, appropriating $50,000 to SAAMS for printing brochures and promotional material to aid in fund raising activities. Krasnansky moved to approve Resolution No. 91-135; the motion was seconded by Dunham. Dunham stated that this appropriation had been suggested by Schaefermeyer to get SAAMS' fund raising effort underway. She noted that Cambridge Seven had designed the materials and was ready to print once payment was made. She stated that the brochures would go to oil companies, the legislature, the governor's office, etc. Dunham said that SAAMS could go no farther without this funding. She reminded the Council of the amount of local support the project had received and suggested that if the funds could not be repaid by SAAMS, she would be willing to give up her $200 per month Council salary to apply to the debt. Dunham stated that the Alaska Sealife Center would make Seward a destination point for tourists visiting the state. Swartz, representing the SAAMS Board, stated that the Board had agreed to repay the city as donations were received. The question was called, and Resolution No. 91-135 was approved by unanimous vote. 2. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, awarding a contract to METCO, Inc., for removal of structures and buildings and related work at Lots 6-9, Folz Subdivision. White moved to approve Resolution No. 91-137; the motion was seconded by Crane. The question was called, and Resolution No. 91-137 was approved by unanimous vote. 3. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, authorizing application for funding assistance for outdoor recreation projects from the Land and Water Conservation Fund. I I I 91 City of Seward, Alaska October 28, 1991 City Council Minutes Vnlume 27, Page 91 Swartz moved to approve Resolution No. 91-136; the motion was seconded by Crane. Crane asked if the provisions of Section 4 of the resolution would prohibit using the Waterfront Park uplands for parking, etc., if a ferry/cruise ship dock was constructed along the greenbelt. Schaefermeyer stated that the city had, by zoning, identified uplands property which could provide uplands support for ferry/university/cruise ship docking facilities, and this would not be affected by the subject grant funds. Burgess stated that he did not want to tie the land up in perpetuity. Schaeferme- yer stated that the future risk to the city if it wished to use the property for a different purpose was to repay the federal government the grant funds expended or to relocate the facility. Krasnansky asked if a work session might be warranted. Schaefermeyer stated that the city conld explain projects envisioned at this time. However, since the deadline fer submitting the grant application was Noveruber 15th, the resolution required action at this meeting. In response to a question from Dunham, Schaefermeyer stated that this resolution simply gave the city the authority to apply for the grant, and if awarded, acceptance of the grant funds would take specific action of the Council at a later date. Krasnansky stated that he had no problem with applying for the moneYi however, he would like for the administration to provide additional information about the proposed projects to the Council in the near future. Swartz stated that this grant proposal had been mentioned by Schaefermeyer before, and she was surprised that other Councilmembers were not aware that it was coming before them for action. The question was called, and Resolution No. 91-136was approved by unanimous vote of the Council. 12. UNFINISHED BUSINESS A. Community Hospital Board Appointments. Cripps nominated Joan Clemens and E. G. Skinner to the two vacant seats on the Community Hospital Board; the Council approved the appointments by unanimous consent. B. Appointment of Council Representative to Community Hospital Board. Cripps appointed Councilmember Crane to represent the Council on the Community Hospital Board; there was no objection from the Council. q2 L, City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 92 C. Perkins/Coie Invoices. Murphy noted that there was a motion on the floor to approve all of the Perkins Coie invoices except September. In response to a question from Burgess, she stated that the motion would reflect the revised balances since the original motion had been to approve as recommended by the administration. The question was called, and the Perkins Coie invoices for legal services were approved for payment as follows: 05/91 Chugach lease/prepayment agreement - $4725.00 05/91 Chugach Alaska Bankruptcy - $4165.97 05/91 Police Internal Investigation - $8390.77 07/91 Legal Services - $15,203.83 08/91 Legal Services - $27,091.19 Dunham moved to approve the September 1991 invoice from Perkins Coie; the motion was seconded by Crane. White moved to postpone action on payment of the invoice until November 25, 1991; the motion was seconded by Swartz and carried by unanimous vote. The Clerk was instructed to schedule a work session to discuss legal services policies and administration of legal services during the week of November 4th. 13. NEW BUSINESS A. Extension of Port Development Committee through October 31. 1992. Swartz moved to extend the Port Committee through October 31, 1992; the motion was seconded by Burgess and carried unanimously. B. Appointment of Council representative to the Port Development Committee. Cripps appointed Councilmember White to serve as the Council's representative on the Port Development Committee; there was no objection from the City Council. C. Claim for damages totalling $1561.05 as filed by Shad Wells. Krasnansky moved to refer this claim to the city's insurance carrier; the motion was seconded by Dunham and carried unanimously. D. Claim for damages (loss of business) totalling $22.925.00 as filed by Paul Paquette. dba Lowell Point Campground. Burgess moved to direct the city manager to continue with negotiations with Paquette to resolve the claim; the motion was seconded by Crane and carried unanimously. E. City Manager position consideration. Cripps stated that he had requested that this item be included on the agenda so that the Council could be prepared to discuss and act on this issue at the next meeting. He stated that the options before the Council I I I 93 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 93 were to extend Schaefermeyer's contract or advertise to fill the position once Schaefer- meyer's contract expires in May, 1992. Dunham stated that this issue was a "hang over" from the last CounciL She stated that the last Council did not function well and gave no direction to the City Manager, leaving Schaefermeyer the responsibility of running the city as he saw fit. She added that the City Manager must have a functioning Council which will try to solve problems as they arise. F. City Attorney position consideration. Cripps stated that the Council had been engaging in quite a bit of dialogue regarding the cost of legal services and the need for change. He stated that he would like the Council to be prepared to make a decision regarding attorney services at the next meeting. He asked the Council to begin thinking about its options, i.e. in-house attorney versus contract attorney. White suggested a work session with Arvidson to develop a new legal services policy as well as administration of the legal services and the legal budget. The Clerk was instructed to schedule a work session with Arvidson in attendance for the week of November 4th. G. Invoice for legal services/Exxon Valdez (See Consent Calendar). Dunham moved to pay the invoice for legal services submitted by Jamin, Ebell, Bolger & Gentry totalling $1063.67; the motion was seconded by Crane. Schaefermeyer stated that the city of Seward, along with several other communi- ties, had acquired the services of Matt Jamin on a contingent fee basis to represent the communities in any claims they might have against Exxon as a result of the oil spill. Krasnansky asked if the city had received a copy of the report noted on the invoice; Schaefermeyer stated that the report had not been filed with the city, but he would request a copy from Jamin. The question was called, and the motion was approved by unanimous vote. H. Lease Negotiations Request (See Consent Calendar). Burgess moved to authorize negotiations with Southcentral Radio for lease of a portion of the Senior Center; the motion was seconded by Swartz. Crane asked about the equipment envisioned to go into the Senior Center and asked if the city had been assured that all ventilation codes were being met. He also asked if the city would be liable for any damage caused by an antenna mounted on the Senior Center roof. Schaefermeyer stated that all of these issues would be reviewed as a part of the negotiation process. He noted that this lease would come back to the Council for public hearing and approval once negotiations were completed. 94 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 94 The question was called, and the motion was approved unanimously. 14. CITY MANAGER REPORTS Schaefermeyer noted the commemorative plaque which was to be placed on the bike path in the vicinity of the tripod. He stated that it would be installed when weather permitted. He also mentioned that he planned to attend the Alaska Managers Association meeting in Fairbanks on November 11-12, 1991, in conjunction with the AML conference; however, there was a possibility that he would have to cancel his attendance due to notice that the city might be commencing its civil trial involving the Harbor Lights case dating back to the 1986 flood. If the trial did go forward, Schaefermeyer stated he would forego the trip to Fairbanks. 15. COUNCIL DISCUSSION SWARTZ stated that she was concerned that the new ramp at Seward General Hospital would not contain heating coils beneath the surface to melt snow and ice. She asked how much more the heating elements would cost. Diener stated that following the discussion at the last meeting, the city had come up with a $2500 program funded by the hospital to heat the ramp. KRASNANSKY stated that he had a call a couple of weeks ago regarding recruitment of chief of police, and he asked Schaefermeyer for a status report. Schaefermeyer stated that there were 17 applications which were being reviewed, and he hoped to complete the review process in November. Krasnansky noted that Nauman made several good points in his presentation. DUNHAM stated that she, too, appreciated Nauman's remarks. She added that she hoped the Council would listen to all of the Board members, physicians and interested citizens who were concerned about the hospital issue. She also encouraged the Councilmembers to attend the Board retreat on the 9th. WHITE stated that he appreciated the three months given to get additional information regarding the hospital. He asked administration to put together the cost of making hospital employees city employees. He also encouraged anyone who was interested to call and voice his opinion. CRANE thanked the Council for postponing action on the hospital ordinance for three months. He also thanked everyone who had called and voiced an opinion as well as those who had attended the meeting. Crane also asked the City Manager to set up an appointment for a tour of the hospital and the shiplift. BURGESS stated that he, too, was glad that the city was waiting awhile before acting on the hospital issue. He also asked that the city or the attorney prepare a running total of all legal bills on items outside the "general government work" category. I I I 95 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 95 White stated that this topic should be included in the work session regarding policy for legal services. CRIPPS stated that Staudenmaier had come to him with his request regarding selling the electric utility. He stated that he was not totally dismissing him out of hand, but would consider his remarks at the proper time. Cripps also stated that his concern with the hospital issue was for the health care of the community. In response to a question from Dunham, Schaefermeyer stated that the electric utility consumers outside the city could form a group and elect a representative to approach the Council if they chose. He noted, however, that all utility consumers had access to the Council and had never been denied an opportunity to be heard by the Council. 16. CITIZENS' DISCUSSION TIM MOFFATT, Mile 1, Exit Glacier Road, stated that as one of the "disenfran- chised consumers" referred to by Staudenmaier, he urged the Council not to proceed with any special election until the Council perceived that there was a groundswell of expectation or concern from the people of the community. BRUCE SIEMINSKI, 213 Benson, stated that there was talk of bulldozing the clinic building when the new hospital was constructed. He objected to destroying the building after recently putting $15,000 of public funds into a new roof. JIM PRUITT, Maple Street, spoke on several issues. First, he asked if the Council was required to meet in Council Chambers. He noted that this room was overcrowded, and there were other facilities in town which could better accommodate the meetings. Second, he questioned why detailed legal bills were not available to the Council. Third, he stated that the hospital building should not be an issue in determining the fate of the hospital. And, fourth, he noted that the Seattle Fish Expo was a big success. CHRIS GATES, Johnston Road, speaking as the city's representative to the Regional Citizens Advisory Council, noted that he was recently elected president of this group. He gave the Council a brief update of RCAC activities. Gates thanked Pruitt and Seward Ship's Chandlery for participation in the Seattle Fish Expo. WILLARD DUNHAM, Alder & Dimond, Forest Acres, thanked the Council for appropriating the funds to SAAMS for production of brochures and promotional materials. He stated that the SAAMS Board was pleased and delighted that Schaefer- meyer brought this to the Board and supported this appropriation. Dunham also asked the Council to seriously look at rerouting the dump road to its original location and doing flood control work at the same time. 96 City of Seward, Alaska October 28, 1991 City Council Minutes Volume 27, Page 96 HERMAN LEIRER, Dairy Hill, stated that when the Small Boat Harbor was completed in 1966, he had warned the city that it should start working on another harbor right away. He suggested that the Council allow Afognak Logging to put in a harbor at Nash Road using private funds, since this was the quickest and cheapest way to provide more boat slip space in Seward. Leirer also warned that, with the closing of the Landfill, the city would begin to have increasing problems with hungry bears. BRUCE FILLINGIM, 517 Sixth Avenue, stated that the chief of police should be elected by the people, not appointed by the city manager. 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS SWARTZ stated that Dunham was right about the need for another access route to the dump. WHITE thanked Leirer for his remarks. CRANE agreed with Pruitt that the building was not the most important aspect of the hospital, but stated that a new facility was needed to attract new businesses and to make people more comfortable about the health care they were getting. He also agreed with Sieminski that he would like to see the Clinic building used, but if a choice had to be made, he would rather have a new hospital. KRASNANSKY agreed with Leirer about the bears and suggested that Fish and Game cull or transplant them someplace else. He also noted that the problem with the patient wing at the hospital had to do with wood framing that does not meet state fire codes for patient safety. MURPHY noted that the Council was required by City Code to conduct its regular meetings in the Council Chambers, and any deviation from this would require a Code amendment. CRIPPS stated that he was more lenient regarding time for public input than he would be in the future unless the public said otherwise. 18. ADJOURNMENT i.: l : \ ..... .,~ (CitY S~l) \ oS' .... ~yt' \, '\,cs .;" ~-9"f:~F~'r-l~( " . ~~tr;:. ,> I I I 97 City of Seward, Alaska November 5, 1991 City Council Minutes Volume 27, Page 97 1. CALL TO ORDER The November 5, 1991, special meeting of the Seward City Council was called to order at 7:03 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Crane led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Raymond Burgess James Krasnansky Dale White Dave Crane Karen A. Swartz comprising a quorum of the Councili and Darryl Schaefermeyer, City Manager Mich3.~l Yanez, Assistant City Manager Fled Arvidson, City Attorney Linda S. Murphy, City Clerk ABSENT was: Beverly Dunham (excused). 4. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Crane and carried without objection. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None 6. SPECIAL ITEMS: A. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving Task Order No.4 to the Dryden & Larue 98 City of Seward, Alaska November 5, 1991 City Council Minutes Volume 27, Page 98 contract to design the Lawing to Ft. Raymond Transmission Line. Krasnansky moved to approve Resolution No. 91-141; the motion was seconded by Swartz. Utility Engineer Dave Calvert gave a brief overview of the transmission line project to date. The question was called, and the resolution was approved by unanimous vote of the Council. 7. CITY MANAGER REPORTS None 8. COUNCIL DISCUSSION None 9. CITIZENS' DISCUSSION None 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 11. ADJOURNMENT The meeting was adjourned at 7:16 p.m. c~ !;L;/ {i: ~ - LI..t:-< , '?~ D6nald W. Cripps ' Mayor City Council Minutes Volume 27, Page 98 1. CALL TO ORDER The November 7, 1991, special meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Krasnansky led the pledge of allegiance to the flag. I I I 99 City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 99 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Raymond Burgess Beverly Dunham Karen A. Swartz Dave Crane James Krasnansky Dale White comprising a quorum of the Councili and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Linda S. Murphy, City Clerk 4. APPROVAL OF SPECIAL MEETING AGENDA Burgess moved to approve the Special Meeting Agenda as presented; the motion was seconded by Krasnansky and carried by unanimous vote. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING WILLARD DUNHAM, Alder and Dimond, stated that he was surprised that the Council was conducting a special meeting regarding this subject. He asked why the Council was considering action prior to receiving the Corps of Engineers Report regarding the proposed south expansion of the Boat Harbor and he questioned the effect this action would have on the proposal to construct the multi-purpose dock. He urged Council to carefully consider all of its options before making a decision and warned them of the dangers of rushing blindly into such a big project. HERMAN LEIRER, 101 Leirer Road, stated that the multi-purpose dock and the Nash Road Harbor were two separate issues and pursuing one did not rule out the other. He stated that the cruise ship/research vessel/ferry dock would of necessity be located on the west side of the bay. He stated that the city would be wise to allow a private contractor to construct the boat harbor using private funds and warned the Council of' the dangers of delaying construction of a harbor and noted that Whittier would eventually have road access and Valdez and Homer would be adding boat spaces and would be in a position to compete with the city for those boaters on the waiting list for slips. DON WHITMAN, 111 Barwell Street, stated that the Small Boat Harbor expansion had been under discussion for the past year. He stated that it was time the city got out of the harbor business and let private enterprise develop in this area. 100 City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 100 WAYNE CARPENTER, Executive Director of the Chamber of Commerce, shared the results of a Chamber poll of its members which showed that the respondents were in favor of the Nash Road proposal by a margin of five to one. RON LONG, Camelot, stated that some Councilmembers had expressed a concern that the Nash Road Harbor would divide the community; however, it was his opinion that this protectionist attitude was more divisive than the proposed harbor. He stated that by opposing this development, the city was sending the wrong message to businesses interested in locating in Seward. He added that the issue was not one of taking business from the downtown but one of adding new jobs, new business and new money to the community. 6. SPECIAL ITEMS A. Proposal for private development of a boat harbor at Nash Road. Burgess moved to direct the City Manager to have the Port Marketing Director work with Schafer to try to work up a Master Plan for the Nash Road Harbor area and to report back to the Council within 30 days; the motion was seconded by Krasnansky. Dunham moved to amend the main motion by striking 30 days and inserting 90 days; the motion was seconded by Crane. Burgess spoke in opposition to the amendment. He stated that 30 days should be sufficient time for Gates and Schafer to develop a master plan for Council to review and added that his motion did not commit the city to any further action; rather it would provide the information necessary to ascertain whether Schafer's proposal was feasible. Swartz disagreed, stating that she did not wish to rush any decision of the Council. Dunham stated that she was concerned that the administration had been lobbying for the Nash Road harbor to the detriment of the south expansion. She noted that the city had already spent $25,000 on a study of the permeable wave barrier for the south expansion, and this avenue should be more fully explored before agreeing to the development of a new harbor at Nash Road. Schaefermeyer stated that he had not called this meeting and had not been lobbying for either boat harbor site. Cripps stated that he had requested the meeting after meeting with Schafer to discuss his proposal. He added that the purpose of this meeting was not to make a decision but to air the issue and to seek additional information which would aid the Council in making a decision at some later date. I I I '01 ...'-1.... City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 101 Dunham apologized to Schaefermeyer. She slated that it was not the city's place to be "selling" this harbor concept; rather, it was the responsibility of the private developer to put together the plan and information for Council review. She noted several other private industry developments in which the city had participated and stated that many had led to real problems for the city. She cited dealings with VECO, Seaway Express, Chugach Forest Products and Joel Steelman. Krasnansky stated that he was under the impression that the purpose of this meeting was to authorize Gates to work with Schafer to develop a plan for review. He also noted that the multi-purpose dock was a separate issue and was not germane to a discussion regarding the Nash Road harbor proposal. He further noted that the projects cited by Dunham also involved active city participation whereas the Nash Road Harbor would be a completely private development. Swartz stated that the Council should review the Corps of Engineers' study in order to determine the feasibility of the south expansion. She added that waiting an additional two months for Gates' report to the Coundl was not asking too much. She objected to being pressured and pushed into something of this magnitude. White objected to Dunham's comments regarding private development in Seward. He stated that the city had worked closely with Suneel, and this had proven to be beneficial to the city. He also stated that the purpose of the motion before the Council was to secure information for the Council and did not commit the city to any course of action. Crane stated that he was happy to meet regarding this subject, but he thought Schafer was prepared to make a proposal to the city. He stated that he was disappointed that he had not received a written proposal or plan. Crane added that, with the holidays approaching, 30 days would probably be an insufficient amount of time to provide the needed information. Crane also stated that the number one issue before the Council was to provide additional boat harbor space, and he did not care where this development took place as long as it was in Seward. He added that this expansion or development would attract more people to the community, and it was up to private businesses to get those people to their establishments. In response to a question from Burgess, Murphy restated the motion. Burgess noted that the intent of his motion was not to insure that a decision was made at the end of a thirty day period, but only to give a deadline to Schafer and Gates to get the information to Council. Dunham stated that Schafer had had six months to present this information to the Council, but he had not done so. Krasnansky asked Gates if 30 days was a realistic time frame for preparing the requested report. Gates stated that he did not know if all of the issues could be resolved 102 City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 102 in 30 daysi however, any issues unresolved would be outlined for the Council within the report. Schafer agreed that 30 days was a sufficient amount of time from his perspective. Krasnansky then stated that it made no sense to put off for three months what could be accomplished in one. Swartz stated that she preferred the 90 day option to give the Council time to review any work that had taken place up to this point. Crane agreed that the Council had an obligation to the public to review the permeable wave barrier study prior to making any decisions. Burgess objected to waiting 90 days for Gates' report. He stated that he was not asking the city expend funds and he was not asking the Council to take action regarding the Schafer proposal. He added that Schafer had gone as far as he could go without input from the city. He also stated that this proposal would in no way conflict with any development which might result from the permeable wave barrier study, adding that these were two separate projects with different funding sources. Cripps noted that the purpose of this meeting was to "get the show on the road." The question was called on the amendment, and the motion passed with Crane, Cripps, Dunham and Swartz voting YES and Burgess, Krasnansky and White voting NO. Cripps instructed the administration to bring the report back to the Council prior to the end of the 90 day period if possible. The question was called on the main motion as amended, and the motion passed by unanimous vote of the Council. Cripps stated that the Council wished to have the following questions answered: 1. Is it feasible? 2. Is it possible? 3. What are the parameters? Swartz stated that she would like the report to contain the full lease value of the tidelands under discussion. Burgess asked Gates to provide the Council with weekly reports on his progress. Dunham stated that she would like a face to face meeting with representatives of the Corps of Engineers. She stated that she was not totally convinced that the city administration had not conveyed the wrong message to the Corps regarding the city's desire to expand to the south. I I I 103 City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 103 Burgess stated that he would like the city to stay out of private enterprise as much as possible. White concurred. He stated that while he would like to see the city support this project in concept, he would not agree to any financial support. Swartz asked for a report on the utilities necessary for the development and the ability of the city to provide them. White asked if there was a rock source available for the development. Crane asked that the report contain the top 10 issues for Council to address, including top dollar amounts and the most controversial issues. 7. CITY MANAGER REPORTS Schaefermeyer stated that the city administration had formed no opinion regarding the Nash Road project and was awaiting Council direction before going forward with it. 8. COUNCIL DISCUSSION In response to a question from Krasnansky, Schaefermeyer state that the Brim retreat was open to the public. 9. CITIZENS' DISCUSSION BOB V ALDATTA, 528 Fifth Avenue, stated that Nash Road had been under discussion since 1978, and the only real difference at this time was the change from public to private funding for the development. He stated that he did not understand Council's concern with the project. S'fAN FLUGEL, 2519 Dimond, stated that it was not the city administration that lobbied for this project. Rather, Schafer had approached the Chamber, Trade Board, etc., and asked for support. He added that it was the obligation of the Council to keep itself informed about community issues. RHONDA ANDERSON-HUBBARD, 1800 Jesse Lee Drive, stated that she was a member of both the Trade Board and the Port Committee. She stated that while it was true that the Council should be responsive to community concerns, it was the Council's responsibility to ascertain what those concerns were. Anderson-Hubbard said that everyone agreed that the city needed a harbor; however, some members of the Council did not want to see that harbor located at Nash Road. She added that she sympathized with those older members of the community who claimed to have laid the foundation for the town, but wished to remind them that her generation would have to live on that foundation and deserved a say in how the town developed. WAYNE CARPENTER, representing the Chamber of Commerce, stated that on November 15, 1991, the Kenai Peninsula Borough Tourism Marketing Council held its first meeting in Homer. :04 City of Seward, Alaska November 7, 1991 City Council Minutes Volume 27, Page 104 JIM PRUITT, Maple Street, asked the Council to support Schafer's plan to develop a harbor at Nash Road. RHONDA ANDERSON-HUBBARD, 1800 Jesse Lee Drive, stated that she had recently written to Representative Kubina and to the city manager regarding the state fish tax. She asked for Council support to revise state regulations to make this tax a "landing" rather than a "processing" tax so that Seward would get credit for all of the product coming over the city's docks. She also noted her objection to paying property taxes on commercial boats in addition to the moorage and storage fees paid by fishing boat owners. Finally, she suggested that the city and borough consider lifting or raising the $500 cap on sales tax. 10. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Crane took exception to Flugel's comments and stated that the Council did make an effort to be informedi however, four of the seven members were newly elected in October and had not had time to get and digest aU of the information which had been made available to the prior Council. Swartz stated that waiting an extra month or two before making a decision was not asking too much. She stated that the Council worked very hard and needed this additional time to read and digest all of the information which would be presented. White stated that he hoped the Gates report would examine the possible financial benefits of this development to the city. Swartz stated that if it were possible to annex the uplands and put them on the city tax rolls, she would view this development with more favor. 11. ADJOURNMENT The meeting was adjourned at 9:05 p.m. ~- { /JtZ/S' t~~-C&:V . ?"-... Donald W. Cripps Mayor " . : ~'\L.-\L -.-. . ". '" ~.... .: i "'~+t' 1, \,f:S., '+-~'" .r.... .,' .~ r ....". If' r "I1t Of "'\.".0 r' I I I 105 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 105 1. CALL TO ORDER The November 25, 1991, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Burgess led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Raymond Burgess Beverly Dunham Karen A. Swartz Dave Crane James Krasnansky Dale White comprising a quorum of the Councili and Darryl Schaefermeyer, City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk 4. APPROVAL OF MINUTES Krasnansky moved to approve the October 28, 1991, regular and special meeting minutes and the November 4 and November 7, 1991, special meeting minutes as presented; the motion was seconded by Crane and carried by unanimous vote. 5. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the Regular Meeting Agenda as presented; the motion was seconded by Swartz. The question was called, and the agenda was approved as presented by unanimous vote. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING 106 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 106 MIKE WILEY, 550 Railway Avenue, spoke in opposition to Ordinance No. 665, stating that those who would be affected by this ordinance had not been notified of the proposed Land Use Plan changes. He stated that he was particularly interested in the block from Railway to Jefferson which was proposed to be changed from Central Business District to Urban Residential. He stated that the area fronting on Jefferson and on Railway, as well as Adams, contained business properties and should not be included in the Urban Residential Zone. He agreed that a number of homes were located on Sixth Avenue, but the planned change would also affect quite a bit of business property. ARLENE WILEY, 550 Railway, stated that she, too, was concerned about the proposed changes to the LUP. She asked if the city would consider notifying those living in this area of the pending changes prior to enactment of the ordinance. 8. APPROVAL OF CONSENT CALENDAR Krasnansky moved to approve the Consent Calendar as presented; the motion was seconded by White and carried by unanimous vote. The following actions were taken: A. Resolution No. 91-142, extending a contract with Marathon Fuel [C91-282] to provide petroleum products to the city through 12/31/92, was approved; B. Resolution No. 91-143, authorizing the purchase of a vehicle [C91-451] for the Electric Department, was approved; C. Resolution No. 91-144, urging the NPFMC to study the potential impacts on local communities before establishing an IPQ system, was approved; D. Resolution No. 91-145, appropriating funds for winter bike trail mainte- nance, was approved; E. ABCB liquor license applications were noted as follows: Ray's Waterfront Bar & Grill [Renewal] New Seward HoteVSaloon [Waiver of 3O-day operating requirement], and the Clerk was instructed to write letters of non-objection to the ABCB; F. Change Order No.1 to the METCO, me., [C91-432] contract for Lowell Point Road Repair was noted for information; G. City Financial Report through 09/30/91 was noted for informationi H. Third Quarter 1991 Taxable Sales Report was noted for information; 1. Report of purchase orders totalling between $5,000 and $10,000 issued during the period 07/01/91 - 10/31/91 was noted for informationi I I I 107 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 107 J. SGH quarterly financial report for the period ending 09/30/91 was noted for information; K Application for games of chance & skill permit as filed by IAPES was noted for information; and L. Proclamation declaring 11/02/91 to be Oscar Watsjold Appreciation Day was noted for information. 9. PUBLIC HEARINGS None 10. PRESENTATIONS WITH PRIOR NOTICE ONLY None 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction 1. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, amending the Land Use Plan. Dunham moved to introduce Ordinance No. 665; the motion was seconded by Krasnansky. SWARTZ stated that she was also concerned about amending the LUP as proposed in the downtown area. She stated that she viewed Fourth Avenue as a linkage between downtown and the Boat Harbor and favored seeing small businesses located in this area. She stated that more public input was needed prior to enactment of the ordinance. The question was called, and the ordinance was introduced with six YES votes and Swartz voting NO. Public hearing was scheduled for December 9, 1991. 2. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, amending SCC 1 15.10.225, deleting the requirement for a Conditional Use Permit for Bed & Breakfast use within the Single Family Residential and the Rural Residential Zones. . 100 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 108 White moved to introduce Ordinance No. 666; the motion was seconded by Crane. The question was called, and the ordinance was introduced by unanimous vote.. Public hearing was scheduled for December 9, 1991. B. Ordinances for Public Hearing & Enactment 1. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, establishing a Community Development Depart- ment. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing closed. Krasnansky moved to enact Ordinance No. 660; the motion was seconded by Burgess. The question was called, and Ordinance No. 660 was enacted by unanimous vote of the Council. 2. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, amending SCC ~ 13.01.025, clearing sidewalks of snow and ice. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing closed. Crane moved to enact Ordinance No. 662; the motion was seconded by Burgess. SWARTZ stated that in reading over her packet she noted that the city had ordered calcium chloride for city streets. She asked if the prohibition against calcium chloride would make law breakers out of many innocent people as well as the city. CRIPPS stated that the city would be making law breakers of everyone along Third Avenue. WHITE stated that he was concerned about snow removal from private driveways. He noted that many residents plowed their driveways into the street alongside their homes or across the roadway. I I I 109 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 109 CRIPPS stated that he had read the existing Code regarding snow removal, and some of these areas of concern were already addressed. However, he did have concerns regarding some of the new provisions. KRASNANSKY stated that this ordinance was designed to protect the new city sidewalks so that they would last for as many years as possible. He stated that the people wanted sidewalks and now they must be responsible for caring for them properly. He asked for an explanation regarding city use of salt on sidewalks. Schaefermeyer stated that the street sand ordered by the city contained salt and this would be used only on the roadways, not on the sidewalks. Therefore, he saw no conflict. CRANE stated that public education was needed to insure compliance with the new provisions. He added that since the taxpayers of the city were paying for the sidewalks, it was the city's responsibility to take care of them in order to assure that they remained in service as long as possible. Crane also stated that this should be a cooperative effort between the city and the community. SWARTZ stated that a note of caution was needed, adding that the ordinance wording was too strong. SCHAEFERMEYER stated that part of the reason for incorporating the new language in the Code was that, if there was a significant offender, there was currently no mechanism to allow the city to enforce compliance. He stated that he was not talking about enforcement every day of the weeki however, there were occasionally individuals who plowed their snow right onto the roadway, creating a traffic hazard and extra expense to the city. He added that he did not suggest confrontations with residential owners who were plowing their driveways, but commercial businesses and apartment building owners and/or contractors who flagrantly violated the ordinance. He further noted that the city did not enforce this code provision on Third Avenue since this was a state highway right-of-way and operated under different rules. The question was called, and Ordinance No. 662 was enacted by unanimous vote of the Council. 3. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, rezoning Lots 13, 14, and 15; Block 18; Original Townsite of Seward. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing closed, 110 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 110 Burgess moved to enact Ordinance No. 663; the motion was seconded by Dunham. The question was called, and Ordinance No. 663 was enacted by unanimous vote of the Council. 4. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An ordinance of the City Council of the City of Seward, Alaska, amending SCC ~ 15.10.225, Land Uses Allowed, to Permit Single Family Residences in the Auto Commercial Zone. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard; and the public hearing closed. White moved to enact Ordinance No. 664; the motion was seconded by Krasnansky. The question was called, and Ordinance No. 664 was enacted by unanimous vote of the Council. C. Resolutions None 12. UNFINISHED BUSINESS A. September 1991 invoice from Perkins Coie for legal services totalling $27,091.19. Murphy noted that there was a motion on the floor for approval. CRANE asked if this invoice was to be adjusted and backdated. Schaefermeyer stated that these bills would not be backdated; however, beginning with the July invoice, the city would be providing reports on attorney fees so that the Council would know from month to month what had been billed for each particular project. The question was called, and the invoice was approved for payment as presented. B. Cif;y Attorney Contract. Cripps moved for adoption of the draft attorney agreement as presented in the packet. There was no second. WHITE stated that he would like to change the 30-day billing/interest provision and suggested amending this to read 60 daysi Arvidson concurred. White asked if the attorney would consider not billing for travel time. Arvidson stated that the best way to solve this problem was to better control when the attorney was to attend the meetings. He stated that there was nothing on this agenda which justified his appearance. He noted that in Homer, the attorney attended only about one-half the meetings. White stated that it would be a show of good faith to the city if this charge were eliminated. I I I 111 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 111 Arvidson stated that his travel time represented lost revenue to the firm if he did not bill for it. He suggested some sort of contract rate such as one-half his regular rate for travel time. White also asked if special services could be estimated for the city so that a budget could be prepared and, if exceeded without prior approval, the additional amount would not be paid. SWARTZ asked who had the authority to telephone Arvidson and who decided if the phone call was necessary. Schaefermeyer stated that there were very few staff people who communicated directly with the attorney. He noted that Gates probably had more contact with Arvidson than any other member of his staff. KRASNANSKY asked if codification was considered general government or special work. Arvidson stated that, until this year, codification services were included under general government work. DUNHAM stated that there was really no need to act on most items the first time they were presented to Council; therefore, those items needing input or advice from the attorney could be postponed for one meeting if Arvidson were not present, thus allowing him to attend only every other meeting. CRANE stated that he was pleased with the draft agreement and thought this was a step in the right direction. CRIPPS instructed the administration to present a resolution for approval of the contract at the next regular meeting. C. City Manager position consideration. CRIPPS stated that it was his feeling that the council should decide at this time whether to advertise the city manager's position. WHITE stated that he would prefer to extend Schaefermeyer's contract. CRANE suggested that the Council review the city manager's contract with Schaefermeyer and get his input before proceeding. SWARTZ stated that nothing would prevent Schaefermeyer from applying for the position if it were advertised. CRANE objected to this approach, stating that one should not have to apply for a position already held. He stated that by advertising the position, the Council was implying that it was not satisfied with Schaefermeyer's performance. Crane added that he did not favor looking for a new city manager. CRIPPS stated that the Council should remember that the city manager's contract was a negotiated agreement. 112 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 112 CRANE stated that he would like to see the city manager revert to his original agreement. KRASNANSKY objected to this approach and said that he could see no reason not to shop around. DUNHAM stated that for the past five years, the city manager had not been given direction by the Council, making his situation an impossible one. In addition, Schaefermeyer had followed two very aggressive city managers who were lucky enough to serve when there was lots of money to be had. She noted that during that time, Schaefermeyer was actually running the city. She added that Schaefermeyer should not be penalized for lacking an aggressive personality. Dunham further stated that, since the Council had not yet agreed what it was looking for in a manager, now was not the time to advertise. She suggested an executive session to discuss this issue. Cripps instructed the Clerk to schedule an Executive Session on Tuesday, November 26th, beginning at 7:00 p.m., to discuss the City Manager's position with Schaefermeyer. RECESS: The meeting was recessed at 8:23 p.m. and reconvened at 8:30 p.m. 13. NEW BUSINESS A. Trade Board Appointments. Cripps nominated Hugh Darling, Dale Hoogland and James Pruitt to serve three-year terms on the Trade Board; there was no objection from the Council. ..--.-". -, B. EDD Appointment. Cripps nominated Louis Bencardino to serve a three- year term on the Borough Economic Development District Board; there was no objection from the Council. C. Replat of Lots 6-9, Folz Subdivision. Krasnansky moved to consent to the replat of Lots 6-9, Folz Subdivision, as recommended; the motion was seconded by Crane. KRASNANSKY asked if the city would consider selling a portion of the property as requested by Snowden. Schaefermeyer stated that until the project was designed and constructed, the city would not know if the parcel was needed for other uses such as storing power poles, etc. BURGESS stated that since the Borough Code did not require replatting, he did not know why the city was spending the money to replat the property. Schaefermeyer stated that the city was doing this to remain consistent with city regulations for property within the city limits. He stated that most of the preliminary work had already been done as part of the survey work required for the construction project. I I I 113 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 113 BURGESS asked why this was not brought to the Council before starting on the project. Schaefermeyer responded that the requirement for Council approval was overlooked by the Community Development Department. In addition, the surveyor completed his work much more quickly than the city had anticipated. WHITE stated that the city should follow its own rules when dealing with public property. KRASNANSKY pointed out that this action was not required by the City Code since the property was located outside the city limits. CRANE stated that the city probably should not have gone ahead with this action since it was not requiredi however, since the city had already proceeded this far, it was wise to go forward. The question was called, and the motion was approved with five YES votes and Burgess and Krasnansky voting NO. D. Bid openings. Cripps opened bids submitted for Parcels 1 and 3 in accordance with City Code requirements for the disposal of city real property by public bid. Only one bid was received for each parcel as follows: PARCEL NO.1 Bid submitted by Sven Ebbesson for a total bid amount of $12,800.00 and including a bid deposit of $2,560.00. PARCEL NO.3 Bid submitted by Seward Marine Ventures, Inc., for a total bid amount of $32,101.00 and including a bid deposit of $6,425.00. Cripps noted that the resolutions approving the sale of these parcels of property would be considered by the Council at its next regular meeting. E. SMIC Considerations. Cripps noted that he had requested that this item appear on the agenda. He stated that he had been talking to various community members about a number of issues and had discussed SMIC with Pruitt. He further stated that he wished to create an environment in which people could conduct business in the best interest of both the city and the business or individual. Cripps said that Pruitt had indicated that he could enhance his business if more of the facilities at SMIC were available to him. On the other hand, the administration had been saying for some time that it would be most desirable to have at least two operators to provide the marine industry a choice. However, a second operator had not materialized, and Pruitt had been on site and had demonstrated over time his willingness to commit himself and his resources to this venture. Cripps noted that Pruitt was "a local guy" who employed a lot of people. He requested the indulgence of Council to hear what Pruitt has to say. He also suggested that the Council schedule a work session to decide what the city 114 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 114 should do with regards to Pruitt's request for additional property and more control over the facility. JIM PRUITT, Maple Street, updated the Council on what Seward Ship's Chandlery was doing and its impact on the community. He gave some background information regarding employment and operational figures. CRIPPS requested that the administration schedule a good faith work session with Pruitt. WHITE stated that a work session would be in order and asked that this session also include a discussion of the city's on-going arbitration with Pruitt. KRASNANSKY asked if the arbitration could be discussed in a public meeting. Arvidson stated that any discussion of the arbitration itself should be held in Executive Session. In response to another question from Krasnansky, Arvidson stated that both parties could agree to a standstill with respect to the arbitration and could then begin to work on a new agreement. CRANE suggested a work session to discuss the old agreement. suggested an executive session to discuss the arbitration. Once that accomplished, the Council could conduct a work session to hear Pruitt. Arvidson had been The Clerk was instructed to schedule a special meeting on Monday, December 2nd, beginning at 5:00 p.m., in order to conduct an Executive Session to discuss the Pruitt Arbitration. 14. CITY MANAGER REPORTS SCHAEFERMEYER noted that the Governor had declared the sewage lagoon failure a disaster for the purpose of receiving state assistance. He also noted that he had been appointed by Gilman to sit on a committee created by the Borough Assembly to look into personal property taxes on boats. Schaefermeyer stated that at the last Council meeting, Krasnansky had asked for a report on oil spill litigation. He added that Matt Jamin was preparing a report for the Council for presentation by the next regular meeting. He further noted that a report on park improvements had been made available to the Council in the last week or so. GATES asked if the approach he was taking regarding Nash Road was on track. There was no objection from the Council. 15. COUNCIL DISCUSSION SWARTZ thanked Gates for his report on the Nash Road project. She stated that she hoped the city would be conservative with both funds and staff time. KRASNANSKY noted that November 28th was the 100th anniversary of IBEW. I I I 115 City of Seward, Alaska November 25, 1991 City Council Minutes Volume 27, Page 115 DUNHAM stated that a couple of years ago, the former owners of the radio station had asked the city to pay to have its meetings broadcast. Seward Cablevision, however, was now broadcasting these meetings and providing a good public service at no charge to the taxpayers. Dunham also noted a Time Magazine article which stated that a new trend was to construct residential units on small lots and to add apartments over businesses. She added that she hoped the city would look at this as a possibility for developing downtown Seward. WHITE stated that on November 20th, the Port Committee had met and discussed creating a better relationship with both the Council and the Trade Board so that its efforts were not duplicated. He stated that he would be acting as liaison between the Council and the Port Committee and asked that the Trade Board keep him informed as well. White also suggested that the Chamber be included in the next Fish Expo to answer questions about the community. White reported that he had attended a DOT meeting regarding Pt. McKenzie. According to meeting participants, the MatSu Borough had targeted the Suneel coal facility as a means to get this project "off the ground" and had claimed that Suneel was planning to move to MatSu. White stated that there was no truth in this claim. He stated that the members of the committee planned to visit Seward this spring to look at the port. He suggested that the Mayor extend a formal invitation to the committee. CRANE reported that he had attended the Newly Elected Officials Seminar in conjunction with the Alaska Municipal League's annual conference in Fairbanks. He stated that he had learned a lot about municipalities, litigation, etc. in the various work shops and general sessions. In addition, he attended work sessions regarding port authorities, utilities, environmental management, cut back management, legal issues, working with staff, etc. He stated that the money to send Council and staff to these sessions was well spent and added that one important lesson he learned was the importance of keeping a well trained and informed staff and council. Crane thanked the city for the letter to Hickel regarding hospital replacement and noted that it was well written and covered all of the bases. Crane also noted that he would be making written reports to the Council regarding the hospital board. He asked for guidance from the Council as to what was expected of him as its liaison to the hospital board. SWARTZ thanked Crane for his report on AML. She stated that she had attended a work session regarding police protection. She stated that the people she met at AML were valuable contacts, and concurred with Crane's assessment that the city received its money's worth with this trip. CRIPPS stated that he appreciated the fact that Council was beginning to work together. 16. CITIZENS' DISCUSSION None 116 City of Seward, Alaska Navember 25, 1991 City Council Minutes Volume 27, Page 116 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Schaefenneyer noted that Representative Kubina had called on Friday to indicate that he would visit Seward on December 4th and would meet with the Trade Board during his stay. Schaefenneyer also noted that Kent Dawson was planning an effort in Juneau the week of the 12th regarding inclusion of hospital funding in the Governor's budget. The City Manager noted that the Planning Commission would be addressing 30- foot lots and better utilization of these properties. Finally, Schaefenneyer noted Martin's community profile project. 18. ADJOURNMENT The meeting was adjourned at 9:35 p.m. " ....-: ~ ~/:/. - 4'W?e!U:& , l ~ onald W. Cripps 4 v Mayor City Council Minutes Volume 27, Page 116 1. CALL TO ORDER The November 26, 1991, special meeting of the Seward City Council was called to order at 7:04 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Krasnansky led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Raymond Burgess Beverly Dunham Karen A. Swartz Dave Crane James Krasnansky Dale White 117 City of Seward, Alaska November 26, 1991 I comprising a quorum of the Council; and Darryl Schaefenneyer, City Manager Linda S. Murphy, City Clerk City Council Minutes Volume 27, Page 117 4. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Dunham and carried without objection. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. SPECIAL ITEMS A. Request for Executive Session to discuss the City Manager position with D. Schaefenneyer. Krasnansky moved to meet in Executive Session to discuss the City Manager position with Darryl Schaefermeyer; the motion was seconded by Dunham and carried by unanimous vote. 7. CITY MANAGER REPORTS None I 8. COUNCIL DISCUSSION None 9. CITIZENS'DISCUSSION None 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 11. ADJOURNMENT The meeting was adjourned at 7:06 p.m., and the Council immediately reconvened in Executive Session to discuss the City Manager position with Darryl Schaefenneyer. . ,a,..S' rph, CM q~:~r.,.r~~ / "\ .;.0,,-"/01t4;;71>.o " . (a~"tieal) ~.f, 'P . .-~' -.- . t- do' SEAL >r. :!, . , ':.j .......::- ~ ", '" ~.., .: l -.\. .r "'~~f' 1, \.~""i-'"~' ";"'rE:"OF"~\.t:~" ~..-ntl'. (1 /'!-tc.l'&,/4;' Donald W. Cripps Mayor I 118 City of Seward, Alaska December 2, 1991 City Council Minutes Volume 27, Page 118 1. CALL TO ORDER The December 2, 1991, special meeting of the Seward City Council was called to order at 5:12 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Dunham led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Dave Crane Beverly Dunham James Krasnansky Karen A. Swartz Dale White comprising a quorum of the Council; and Darryl Schaefenneyer, City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk ABSENT were: Raymond M. Burgess (Resignation submitted by Burgess 12/02/91) 4. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Dunham and carried without objection, 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. SPECIAL ITEMS A. Request for Executive Session to discuss the Pruitt Arbitration. Krasnansky moved to meet in Executive Session to discuss the Pruitt Arbitration; the motion was seconded by Swartz and carried by unanimous vote of the Council. 7. CITY MANAGER REPORTS City of Seward, Alaska December 2, 1991 I City Council Minutes Volume 27, Page 119 SCHAEFERMEYER noted that Representative Kubina would be in Seward on December 3rd and 4th and planned to meet with the Trade Board on the 4th. MURPHY noted that SAAMS had requested to meet in a joint work session with the Council and its boards and commissions on Monday, December 16th, in order to give those present an overview of the Alaska Sea Life Center project, Cripps instructed Murphy to give public notice of the meeting. GATES asked the Council to complete and return the questionnaires in their Nash Road Harbor packets so that he would have some indication of where to start in his negotiations with Schafer. 8. COUNCIL DISCUSSION None 9. CITIZENS' DISCUSSION None 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None I 11. ADJOURNMENT The meeting was adjourned at 5:29 p,m., and the Council immediately reconvened in Executive Session to discuss the Pruitt Arbitration. I ( .>' 1/1- 't;:-. "yL(t ,-l~'tLt./ G;J:j!-;:; Donald W. Cripps Mayor City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 120 1. CALL TO ORDER The December 9, 1991, regular meeting of the Seward City Council was called to order at 7:30 by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Crane led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Dave Crane James Krasnansky Karen A. Swartz Dale White comprising a quorum of the Council; and Darryl Schaefenneyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk ABSENT were: Raymond M. Burgess (Resigned 12/02/91) Beverly Dunham (Excused) 4. APPROVAL OF MINUTES [Unavailable] 5. APPROVAL OF REGULAR MEETING AGENDA Krasnansky moved to approve the Regular Meeting Agenda as presented; the motion was seconded by Crane. The question was called, and the agenda was approved as presented without objection.. 6. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and no report was given. 7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None I I I 121 City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 121 8. APPROVAL OF CONSENT CALENDAR Crane moved to approve the Consent Calendar as presented; the motion was seconded by Krasnansky and carried by unanimous vote. The following actions were taken: A. Resolution No. 91-146, approving the sale of Lot 28A, Block 12, OTS, to Sven Ebbesson, was approved; B. Resolution No. 91-147. approving the sale of Lots 2&3, Block 9, Cliff Addition, to Seward Marine Ventures, Inc" was approved; C. Resolution No. 91-148, approving a contract for legal advertising in the Phoenix Log, was approved; D. Resolution No. 91-149, appropriating funds for the purchase of software to codify city ordinances, was approved; E. Resolution No, 91-150, approving a banking services agreement with First National Bank of Anchorage, was approved; [Cripps denied White's request to abstain stating that the position held by White's wife at FNBA did not represent a substantial financial interest on the part of White in the outcome of the vote on this resolution.] F, Resolution No, 91-151, approving the purchase of a D3C Caterpillar Crawler Dozer, was approved; G. Resolution No, 91-154, endorsing the Kenai Peninsula Caucus 1992 policy statement, was appr8ved; c:/.dq-~ 13,/ 7"l<.< Ao~'s77CA7/~- H. The revised Spring Creek Correctional Center construction budget was approved; I. Request for authorization to cancel the 12/23/91 Council meeting was approved; J. Notice of Work Session with SAAMS on 12/16/91 at 7:00 p.m. was noted for information; K. Applications for renewal of liquor licenses as filed by THE WHEELHOUSE and ELKS LODGE #1773 were noted and the Clerk was instructed to write letters of non-objection to the renewals; 1. Applications for permits for games of skill and chance as filed by SEWARD JR/SR HIGH SCHOOL, AMERICAN LEGION AUXILIARY and AMERICAN LEGION POST NO.5 were noted for information; 122 City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 122 M, October 1991 invoice from Perkins Coie for legal services totalling $25,591.30 was approved for payment; and N. Information memorandum regarding the Sewage Lagoon clean-up budget was noted for information. 9. PUBLIC HEARINGS None 10. PRESENTATIONS WITH PRIOR NOTICE ONLY None 11. ORDINANCES AND RESOLUTIONS A. Ordinances for Introduction None B. Ordinances for Public Hearing & Enactment 1. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, amending the Land Use Plan maps of the city. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Schaefermeyer advised going forward with Public Hearing, but asked that Council postpone action on this ordinance until the first meeting in January to give the administration a chance to correct several typographical errors in the legal descriptions of properties proposed to be affected, No one appeared in order to be heard, and the public hearing was closed. Krasnansky moved to enact Ordinance No. 665; the motion was seconded by White. Swartz moved to postpone action until the first meeting in January; the motion was seconded by White and carried unanimously. 2. Copies having been made available to the public, Cripps noted by title only a proposed ordinance entitled: An Ordinance of the City Council of the City of Seward, Alaska, amending the Bed & Breakfast regulations by deleting the requirement for a Conditional Use Permit in the Single Family Residential and the Rural Residential Zones. I I I 12.3 City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 123 Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed, White moved to enact Ordinance No. 666; the motion was seconded by Swartz. White stated that the Conditional Use Permit had served as a means of notifying neighbors when a Bed & Breakfast was established, He added that neighbors should continue to be notified. Schaefermeyer stated that the city would make it a practice to notify adjoining property owners of applicants for a Bed & Breakfast permit. The question was called, and Ordinance No. 666 was approved with four YES votes and White voting NO. C. Resolutions 1. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving a revised budget for the Pruitt Arbitration and appropriating funds. Krasnansky moved to approve Resolution No. 91-153; the motion was seconded by White. The question was called, and Resolution No. 91-153 was approved by unanimous vote. 2. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving a contract for legal services. Crane moved to approve Resolution No. 91-155; the motion was seconded by White White moved to amend the agreement by substituting the word "discount" for the word "standard" in paragraph four and on the rates section and to change the attorney's discount rate from $185 to $175; the motion was seconded by Krasnansky and carried by unanimous vote. Crane moved to amend the agreement by substituting "shall" for "may" in the first paragraph on the second page of the agreement; the motion was seconded by Krasnansky and carried by unanimous vote. 124 City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 124 The question was called, and Resolution No. 91-155, approving a contract for legal services with Perkins Coie [C91-452], was approved as amended by unanimous vote. 12. UNFINISHED BUSINESS A. EDD Appointment. CRIPPS noted that the EDD had informed the city that this particular seat must be filled by either an elected official or an employee of the city of Seward. Therefore, his earlier appointment of Louis Bencardino had been withdrawn. Cripps deferred this appointment until the next special meeting of the Council. 13. NEW BUSINESS A. Resignation of Councilmember Burgess. Crane moved to accept the resignation of Raymond Burgess effective December 9, 1991; the motion was seconded by Swartz. Cripps thanked Burgess for his years of dedicated service to the city and the Council. He stated that he accepted this resignation with regret. The question was called, and the motion carried by unanimous vote. B, Appointment of a new Councilmember. Krasnansky moved to hold a special meeting to consider this appointment on 12/16/91 at 5:00 p.m.; the motion was seconded by White and carried unanimously. C. Confirmation of Police Chief appointee. Krasnansky moved to confirm the appointment of Tom Walker as chief of police; the motion was seconded by Swartz. ln response to a question from Krasnansky, Schaefermeyer stated that under the Code, all new hires must serve a 6-month probationary period. He recommended that Walker start at step C; after 6 months, if recommended for regular employment, Walker would advance to Step D and thereafter would be evaluated annually with subsequent raises to be based on performance. Schaefermeyer introduced Tom Walker and his wife Donna. The question was called, and the motion carried by unanimous vote. 14. CITY MANAGER REPORTS Schaefermeyer extended his appreciation to Lt. Brossow for excellent service as acting chief for the past two months. He noted that Walker would report for duty on December 30th. Schaefermeyer stated that he and Dawson would be meeting with the I I I City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 125 Governor's staff next week to discuss hospital and other capital funding. He added that he planned to bring his suggested legislative priority package to Council at its first meeting in January for formal approval. He stated that he might request a work session prior to that meeting to fully review the priority list. 15. COUNCIL DISCUSSION SWARTZ thanked Burgess for his years of service on the Council and thanked Brossow for doing such an excellent job as acting chief of police. KRASNANSKY bade a fond farewell to Burgess and welcomed Chief Walker to Seward. WHITE thanked Burgess for work he had done for the community and welcomed Walker, CRANE also thanked Burgess and welcomed Walker and his wife to Seward, In addition, he thanked Brossow for his service as acting chief. Finally, Crane thanked Yanez and the Harbor crew for the recent tour of the SMIC facilities. CRIPPS stated that on November 4th he had sent a letter to the hospital asking for certain information. He asked if it had been received. Schaefermeyer stated that a response had been received from the hospital, and the city administration was now drafting a report for the Council. He stated that this report would be available within the next week. Cripps reported that he would be in Girdwood to discuss wetlands with Senator Stevens on December 13th, Replying to Cripps' question regarding his recent letter to Commissioner Turpin regarding repairs to the Tustumena, Schaefermeyer stated that no response had been received. 16. CITIZENS' DISCUSSION DON WHITMAN, representing Seward Ship's Chandlery, stated that SSC had received a call from the Department of Transportation indicating the Department's desire to renegotiate a ferry maintenance contract with SSe. TOM STAUDENMEIER, Eagle River, stated that he had asked for a special election to allow people to vote on the sale of the electric utility. He asked for a public response from the Council. He stated that he was "prepared to shut down the transmission line or stop hospital funding" if the election were not allowed, 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS KRASNANSKY stated that Staudenmeier was a "one-issue guy", and he objected to his attempt to hold the town hostage over this one issue. He added that the only way City of Seward, Alaska December 9, 1991 City Council Minutes Volume 27, Page 126 to accomplish his goal was to bring people in to testify, He urged Staudenmeier to bring in the numerous supporters he claimed to have. WHITE stated that threatening the city with the loss of other projects was not the proper approach, adding that he strongly disagreed with Staudenmeier's tactics. CRIPPS stated that if there was an outcry of local sentiment, he would call an election; however, he did not care what residents of Eagle River want. SWARTZ stated that she found it odd that Staudenmeier should concern himself so much with Seward. 18. ADJOURNMENT The meeting was adjourned at 8:21 p.m. (t"~L#~/C;r,: Donald W. Cripps Mayor City Council Minutes Volume 27, Page 126 1. CALL TO ORDER The December 16, 1991, special meeting of the Seward City Council was called to order at 5:08 p.m. by Mayor Donald W. Cripps, 2. OPENING CEREMONY Councilmember Crane led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W, Cripps, presiding, and Dave Crane Beverly Dunham James Krasnansky Karen A, Swartz Dale White 127 City of Seward, Alaska December 16, 1991 I comprising a quorum of the Council; and Michael Yanez, Assistant City Manager Linda S. Murphy, City Clerk City Council Minutes Volume 27, Page 127 4. APPROVAL OF SPECIAL MEETING AGENDA Crane moved to approve the Special Meeting Agenda as presented; the motion was seconded by Dunham. The question was called, and the agenda was approved as presented by unanimous vote. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. SPECIAL ITEMS A. Appointment of Councilmember. Krasnansky moved to appoint Bruce Sieminski to the vacant Council seat; the motion was seconded by Dunham. I White moved to appoint Louis Bencardino to the vacant Council seat; the motion was seconded by Crane. White stated that he had spoken to Sieminski about the vacancy and had been told that he (Sieminski) supported Bencardino for this appointment. The question was called on the motion to appoint Sieminski, and the motion failed with Krasnansky voting YES and all other councilmembers voting NO. The question was called on the motion to appoint Bencardino, and the motion passed with Crane, Dunham, Swartz, White and Cripps voting YES and Krasnansky voting NO. The Clerk administered the oath of office to Bencardino. He took his seat on the dais and participated in the remainder of the meeting. B, EDD Appointment. Cripps stated that he had previously appointed Bencardino to this seat only to be informed that the seat must be filled by an elected official or a city employee. He noted that as a member of the City Council, Bencardino could now serve on the EDD Board. 7. CITY MANAGER REPORTS I Yanez reported on the recent avalanches which had closed the Seward Highway and the recent power outages, 1')8 _....J City of Seward, Alaska December 16, 1991 City Council Minutes Volume 27, Page 128 Gates reported that no bids were received in response to the city's RFP to sell the grain terminal components, 8. COUNCIL DISCUSSION SWARTZ stated that she had received numerous calls regarding power problems, She also noted a letter to the Council from Judi Martin regarding the lack of an agreement between the city and the Senior Center for management of the building, Yanez stated that this file had been on his desk for several weeks and he would make it a priority. DUNHAM stated that she and her husband had toured the Monterey Aquarium and other like facilities on a recent trip to California. She stated that everyone they talked to was very interested in the SAAMS project. BENCARDINO asked how much the city had spent on the grain terminal to date, Gates responded that no more than $55,000,00 in city funds had been expended thus far. WHITE welcomed Bencardino to the Council and thanked the city crews for their work during the power outages. CRANE also welcomed Bencardino. Crane also asked about the boiler damage to which Martin referred in her letter concerning the Senior Center agreement. Gifford stated that the problems seemed to stem from Senior Center staff or members who took it upon themselves to adjust the boilers between service calls. Crane also noted that the hospital had once again run out of fuel oil. He stated that it was imperative that the hospital be placed on a "keep full" contract to avoid this occurrence in the future. Cripps stated that he had attended a meeting with Senator Stevens regarding the wetlands issue. He noted that Stevens was interested in seeing that the federal government no longer had absolute control over wetlands located within incorporated areas of the state, Cripps also reported that he would attend a meeting in Anchorage regarding the proposed South Central Port Authority. He stated that he had received a good deal of information from Gates to prepare him for the meeting and would stress the need for self determination and some assurance that no new ports would be constructed until existing ports were fully utilized. Cripps noted that Kenai Peninsula Borough Mayor Donald Gilman had invited him to participate in an upcoming Trade Mission to Japan, Cripps stated that he would be coming back to the Council with more information and a request for authorization to represent the city as part of this delegation. 129 City of Seward, Alaska December 16, 1991 City Council Minutes Volume 27, Page 129 I Finally, Cripps welcomed Bencardino to the Council and thanked the city crews for an outstanding job in dealing with the last week's power problems. 9. CITIZENS' DISCUSSION Jim Pmitt, Maple Street, asked when the Council intended to schedule a work session to discuss SMIC operations. Cripps instructed the administration to schedule a work session during the week between Christmas and New Year's. 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 11. ADJOURNMENT :.; i \lal. 'l)y, MC/ J2~~ cn~rkS f Sz, "<:.~ ..c' ," '()'PPOJ:j",~ '*' !/ (C~ Seal) ..~.ta ~ ~; ......... v *. ~ ~.: SEAL :.: %" ......... :: "'\ '. ....t.! 1.... i \11';0. "'~l'. 1 1,,)~~""~ . ~~,.€'., ,...!.. .~~'+- . Cit~jl December 23, 1991 The meeting w,sadjourned ,t 5,55 p.m. C ~ i )l/~dhp~(~~ Donald W, Cripps Mayor City Council Minutes Volume 27, Page 129 1. CALL TO ORDER The December 23,1991, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Dunham led the pledge of allegiance to the flag. I 3. ROLL CALL There were present: 130 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 130 Donald W, Cripps, presiding, and Louis Bencardino Beverly Dunham Karen A. Swartz Dave Crane James Krasnansky Dale White comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Fred Arvidson, City Attorney Linda S. Murphy, City Clerk 4. APPROV At OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Dunham. The question was called, and the agenda was approved as presented without objection. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. PUBLIC HEARINGS A. Notice of public hearing as posted and published as required by law regarding the plan to acquire the necessary incidental easements and property for the construction of Phase lA of the city of Seward Lawing to Ft. Raymond 115 KV Transmission Line was noted and the public hearing was opened. JESS E. SWEA IT, Mile 6, Seward Highway, stated that everyone agreed that a new line was needed. However, affected property owners objected to Council's voting on this resolution tonight since plans for the power line had not yet been explained to them. In addition, the property owners had not been personally contacted by the city regarding the size of the proposed easements or the value the city had placed on them, Sweatt stated that he would like to know who had established the fair market values, the credentials of the appraisers and when the appraisals were done. He stated that he understood that power lines might be hazardous to health and might cause cancer. Sweatt also requested that a councilmember be present during any negotiations between property owners and city officials, stating that he did not think city officials were trustworthy and doubted that they would negotiate in good faith. BLAINE BARDARSON, 612 Second Avenue, requested that the resolution be postponed until the affected property owners were given more information. He stated that if the existing easements were enlarged, it could affect future development of his lumber yard. He requested more time to review the proposal prior to Council action. I I I 131 City of Seward, Aiaska December 23, 1991 City Council Minutes Volume 27, Page 131 LEN WEIMAR, Bear Creek Fire Service Chief, asked why only one lot in Bear Creek Fire Subdivision was included on the list. MELODY JORDAN, Mile 6.5, Seward Highway, stated that affected land owners should have received more information. MARY SAINDON, Mile 6, Seward Highway, asked how much of the affected property was to be cleared. LOUIS MARCH, Mile 5.5, Seward Highway, read the following letter on behalf of his mother: I am writing this letter to put each and every one of you on notice, I will be precise and to the point. I have lived in the Town of Seward since May 7, 1954, I have raised all of my children here at Mile 5,5, Seward Highway, I hold many sentimental memories in this home of mine, My understanding is that the City of Seward wishes to purchase some easement rights of my property and possible purchase of my house. As it stands right now, for me to let the City of Seward have these easement rights involving some of my property, this T-Line will be going directly over my home, For me to allow this to happen, the City of Seward will be forced to buy my home, because I will not live under a cancer causing high-voltage power line, My figure amount for the purchase of the easement rights is 1 million dollars including the house as well. Should you decide not to buy my home along with the easement rights of my property, the figure amount will still remain the same (1 million dollars), Aside from this I also want a special election to be held giving the Seward area voters the right to vote on whether they wish to sell the Seward Electric Utility to Chugach Electric Inc, for lower electrical rates, March then read the following letter of his own into the record: Should you not abide by my mother's demands in her letter to you dated December 17, 1991, I am prepared to institute proceedings of the gravest order to remove each and everyone who would be involved with the electrical T-Line crews who would be trying to place electrical poles and lines on her property. If the City of Seward T-Line crews force my hand to take drastic measures such as legal injunctions, legal suits, vehicle blockades, firearms, etc., to remove them from my mother's property at Mile 5.5, Seward Highway, so be it! I am sick and tired of the low down dirty sneakiness and non-communica- tion by Seward City Manager Darryl Schaefermeyer, Seward Electrical Manager Paul Diener and his associate Dave Calvert, Seward City Clerk Linda Murphy and Nancy Sullivan of Land Field Services that they tried to shove down my throat, only to find out I will not tolerate any such communist tactics! 1qIJ __~.<:.1 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 132 Seward City Manager Darryl Schaefenneyer didn't even have enough courtesy and decency to even as much as write my mother, Helen 1. March, a letter to let her know that an appraiser was to come from Anchorage hired by the City of Seward to do an appraisal on her home, The next thing, she was disturbed from her sleep at 6:00 a,m, and saw this man measuring her outside bedroom window. Her first thought was that a burglar was outside her home trying to get in. He later identified himself as Al Olson from Land Field Services in Anchorage. My mother ordered Al Olson off her property. Al Olson then stated, "I can do this appraisal from the highway, it makes no difference to me," If I would have been there, Al Olson could have been shot, Should any power poles be placed on my mother's property without her demands being met in regards to the easement rights and her home, they will be sawed down and made into firewood, Besides, should anyone of the City of Seward T-Line crews step foot on my mother's property without her demands first being met as outline in her letter dated December 17, 1991, to you, they will be entering at their own risk, because this is privately owned property and there are "no trespassing" signs posted. TOM ST AUDENMEIER, Eagle River, representing Helen March, stated that if the resolution before Council was passed, he would order a referendum to have it overturned. He once again asked that the question of selling the utility to Chugach Electric be put on the ballot. If this did not occur, he advised property owners to withhold easements for the Transmission Line, He noted that the city would soon get a letter from Chugach Electric Association stating what Chugach was willing to give the city in exchange for the city's electrical utility. DANIEL LIGHT, Metcalf Subdivision, asked that Resolution No, 91-156 be postponed. He stated that the city had given insufficient notice to affected property owners. In addition, he asked if all of the trees and brush was to be cut down from the front of his house. He asked that the city attempt to preserve this buffer he had from summer traffic. MARSHALL RONNE, Mile 7, Seward Highway, concurred with Sweatt's comments. He stated that the city acquired property in 1984 which was supposed to have been used for this power line project. He asked why the city now needed additional property for the line. MARTHA FRAZIER, Mile 6.7, Seward Highway, stated that she had lived in her home for 40 years and had recently placed her property on the market, She asked what effect this easement would have on the value of her property. No one else appeared in order to be heard, and the public hearing was closed, I I I 133 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 133 7. RESOLUTIONS A, Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, approving an acquisition plan for easements and property for construction of Phase 1A of the City of Seward Lawing to Ft. Raymond 115 KV Transmission Line. Krasnansky moved to approve Resolution No. 91-156; the motion was seconded by Dunham. Arvidson noted that the power line upgrade had been a subject of concern for the city for a number of years, and after years of lobbying for grant monies to construct the upgrade, state funding was received last year. He stated that the first phase of the project called for construction of the new line from the city to Mile 8 of the Seward Highway; however, ultimately, improvements would be made to Mile 25. Arvidson said that design had been completed this past fall. He added that the city had requested that the upgrade be designed along the route of the existing line in order to allow construction without acquisition of a great deal of additional rights of way. Arvidson reported that the city had retained Land Field Services to determine the location and owners of any additional easements or properties needed and to determine the value of the subject properties. He added that the final list was made available to the city only 10 days ago, and the question now before the Council was one of how to approach the issue of actually acquiring the needed property, Arvidson admitted that the city had not communicated with affected property owners; however, it was the administration's opinion that it was important to come to the Council first with a plan for acquisition. Then, if the plan was approved by the Council, Land Field Services would contact each property owner and would present that owner a copy of the appraisal, show where the line would go in relation to that particular parcel and attempt to come to terms with the land owner for acquisition of the property, Arvidson stated that only then, if agreement was not reached on any given piece of property, the administration would come back to Council and request approval to proceed with condemnation of the property. He stressed that prior to and action on the part of the Council to condemn a parcel, the property owner would be notified, public hearing on the condemnation would be held, and Council would be asked to take action. Arvidson also stressed that the plan currently before the Council did not authorize any legal action against any land owner. Finally, Arvidson stated that the project design was complete, the bid documents had been prepared, and prospective bidders were already requesting bid packets. He added that the administration would like to resolve the right of way problem as much 134 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 134 as possible prior to award of any contract for construction, and it was important that the contract be let in time to assure construction this season. Diener reviewed the site of the proposed new line. He explained that, for the most part, the new line would follow the path of the existing line. The design also called for additional poles (probably twice as many) to prevent the line from sagging and thus prevent cross connections between the two lines and the attendant power surges. He added that from Mile 8 to Mile 18, the line would cross Forest Service lands within 20 feet of the existing right of way. Diener noted that all outages experienced during the last two weeks had originated either at Mile 12 or somewhere between the city and Mile 8. He stated that once these two phases were constructed, the city would have much more reliable power. White asked if a route between the highway and the railroad had been considered as a possible alternative. Diener stated that the only practical alternative was to follow the existing line. He stated that the farther the line was located from the highway, the more money and time was required to restore services in an outage. In addition, constructing on the other side of the highway as suggested by White would require the construction of two new lines rather than one since the existing line would be needed to serve the customers located adjacent to it. In response to a question from Bencardino, Diener stated that there were a few places where easements were not acquired in 1984 and 1985 when the city first began to work on the power line upgrade. Also, with the addition of more poles came a requirement for some additional space for anchorage which would require a small bit of additional property. He stated that the only clearing which would be done would be removal of trees that might infringe on the line and brush which must be removed to install and anchor the new poles. Swartz asked about the size of the easements needed, Diener stated that each was an individual easement; however, they were all relatively small. White stated that it seemed that the city was getting the cart before the horse by not approaching affected property owners first. Schaefermeyer stated that he needed authority from Council before approaching property owners. Dunham stated that at least three times during the last 2 years, she had asked about the status of negotiations for easements, and each time she was assured that things were going well. She added that she was also concerned that this was brought to the Council at a special meeting rather than a regular meeting, She said that although she would have preferred to have ample time to review the acquisition plan before acting, it was imperative that the city construct a new powerline or the current power outage situation would continue forever. However, she stated that she would vote to delay action on the resolution. I I I 135 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 135 Krasnansky asked how long the Council could postpone action without risking loss of state funding for the line. Arvidson stated that there was no magic date; however, there were risks associated with postponing action for too great a period of time. He noted that a long delay could result in legislative reappropriation of the money to another project. Krasnansky moved to postpone action on the resolution until the next regular meeting of the Council; the motion was seconded by Crane and carried by unanimous vote. B. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, authorizing the expenditure of city funds for the Mayor's participation in a Borough Trade Mission to Japan. Crane moved to approve Resolution No. 91-157; the motion was seconded by Swartz. Cripps explained that the planned trip was a trade mission to Akita, Japan, orchestrated by Borough Mayor Don Gilman. He noted that the purpose of the mission was to develop a sister borough/prefecture relationship; to promote Kenai Peninsula as a tourist destination point for Japanese tourists; to develop a plan for the export of fresh fish to Akita; to develop a plan for direct flights from Alaska to Akita; and to provide for the export of round logs (beetle kill) for home construction in Japan. The qu.estion was called, and Resolution No. 91-157 was approved with six YES votes and Cripps ABSTAINING. 7. CITY MANAGER REPORTS SCHAEFERMEYER noted that he had provided Council a memorandum regarding the rash of recent power outages. He expressed his appreciation to the community for its patience and to city crews for performing a very difficult job under adverse conditions. 8. COUNCIL DISCUSSION CRANE addressed what appeared to be communication problems between the city and the community. He stated that the city needed to find a better way of getting information out to local citizens and he directed the administration to develop a better system. Murphy explained the procedure utilized for notifying the public of upcoming special meetings and public hearings, including posting and noticing the newspaper, "1)6 1.0' City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 136 cable television station and the radio. She added that she would appreciate suggestions which might allow her to reach more of the community. WHITE suggested that when the Council breaks occurred during its televised meetings, Cablevision could post the Council's monthly calendar, BENCARDINO concurred with Crane that communications were a problem, He suggested that the city make an effort once or twice each year to let people know where to go to get information about meetings and hearings. DUNHAM concurred, She noted that legal ads were probably the most boring pieces of literature to read, but people needed to know that they should be read if they wished to be informed. She also suggested that the local radio station schedule a certain time each day when it would broadcast vital public information. KRASNANSKY noted the time required to repair the line break at Mile 14 on Friday. He commended city crews for their efforts. SWARTZ stated that city crews would have probably gladly passed up the chore of repairing the line so many times over this past week, and she too commended them for their service. Swartz also stated that city hall and the post office had always been the place to post public notices, and she suggested that the public had a responsibility to keep itself informed. CRIPPS wished everyone a Merry Christmas and thanked city crews for their efforts to restore power. 9. CITIZENS' DISCUSSION JIM PRUITT, Maple Street, stated that the Council had agreed to conduct a work session with him and asked that a date be set. He also suggested that affected property owners should be sent notices of actions about to take place, Cripps instructed the Clerk to schedule a work session to begin at 7:00 p.m. on Monday, December 30th, in order to discuss SMIC operations with Pruitt. JOHN BAIRD, Nash Woods Subdivision, addressed electrical power surges. He displayed surge protectors valued between $10 and $150 which had been destroyed by two recent power surges, He stated that he could not continue to replace surge protectors and stated that the city should provide safe, dependable electricity to its customers. He added that while lightning striking a transformer might be legitimately called an "act of God", this expression could not be used to characterize sagging power lines which were allowed to touch because the line was engineered with too few power poles. Baird stated that he would be filing a claim with the city to pay for replacement of his burned out surge protectors. 137 City of Seward, Alaska December 23, 1991 City Council Minutes Volume 27, Page 137 I LOUIS MARCH, Mile 5.5, Seward Highway, asked for a concrete date and time when appraisal figures would be given to his mother, TOM ST AUDENMEIER, Eagle River, speaking on behalf of Helen March, asked if the city would give out a list of all affected property owners' names. Arvidson noted that Land Field Services had not provided the list of property owners to the city, JESS E. SWEATT, Mile 6, Seward Highway, stated that some of the properties along the route were not included on the list. Arvidson stated that if the property was not included on the list, it had either already been purchased by the city or it was not needed for this project. 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS CRANE stated that threats of using firearms were a real concern to him, He encouraged anyone who felt that he was not getting treated fairly to give Council a chance to help solve the problem, I SWARTZ asked if the Mayor had received any communication from Chugach Electric Association regarding the purchase of Seward's electric utility. Cripps stated that someone claiming to be a representative of CEA had called saying that CEA was interested, but there had been no follow up or written communication of any kind. Swartz stated that she was concerned that Staudenmeier was claiming to represent CEA She stated that it would be more appropriate to have communications directly from CEA rather than Staudenmeier, DUNHAM noted that the sole threat received by the city was from one family. She stated that she did not appreciate their way of dealing with things. She also noted that although Staudenmeier was constantly threatening to have the Council recalled, he was the only one in the room who had ever been recalled from an elected position. Dunham stated that, while she was perfectly willing to deal with local citizens, she did not wish to deal with Mr. Staudenmeier, BENCAROINO asked the administration to explain the claims procedure to Baird and others who wished to recover the cost of damaged items. Schaefermeyer stated that claim forms were available in the Clerk's office, 11. ADJOURNMENT ...,-....... .~. ',t Sf ""v .." ~t\voit~-i'~ting was adjourned at 9:15 p.m. r' . .0 4J-~..o, ~ .' -..: , ~... ~()'.' . ;Nt . ~" ~,,~ L) Donald w. CriPP?- t Mayor 138 City of Seward, Alaska December 2?; 1991 City Council Minutes Volume 27, Page 138 1. CALL TO ORDER The December 27,1991, special meeting of the Seward City Council was called to order at 11:15 a.m. by Mayor Donald W. Cripps. 2. OPENING CEREMONY Councilmember Crane led the pledge of allegiance to the flag. 3. ROLL CALL There were present: Donald W. Cripps, presiding, and Louis Bencardino Beverly Dunham Karen A. Swartz Dave Crane James Krasnansky Dale White comprising a quorum of the Council; and Darryl Schaefermeyer, City Manager Michael Yanez, Assistant City Manager Paul Diener, Manager of Engineering & Utilities Linda S. Murphy, City Clerk 4. APPROVAL OF SPECIAL MEETING AGENDA Krasnansky moved to approve the Special Meeting Agenda as presented; the motion was seconded by Crane and carried without objection. 5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING None 6. RESOLUTIONS A. Copies having been made available to the public, Cripps noted by title only a proposed resolution entitled: A Resolution of the City Council of the City of Seward, Alaska, authorizing the award of a contract to Pacific Rim to make emergency repairs to EMD Generator Unit No.4. Krasnansky moved to approve Resolution No. 91-158; the motion was seconded by Swartz. I I I 139 City of Seward, Alaska December 27, 1991 City Council Minutes Volume 27, Page 139 In response to a question from White, Schaefermeyer stated that the city anticipated insurance coverage for all costs except the $60,000 deductible. Public Works Superintendent Ainsworth stated that the contractor, Pacific Rim Diesel, had all parts in stock and could begin work immediately. Schaefermeyer stated that funding for the city's share of the repair would come from the electric fund; however, the administration might have to come back to the Council for a budget amendment once the weather emergency was over and all costs were fully assessed, Crane asked if the rebuilt generator would be under warranty, Diener stated that the industry standard for a rebuilt generator was a one-year warranty; however, since these generators were used only occasionally during the year, the city was attempting to negotiate a warranty covering operation of the generator for a given number of hours rather than a period of time. The question was called, and the resolution was approved by unanimous vote of the Council. 7. CITY MANAGER REPORTS SCHAEFERMEYER stated that Seward Ship's Chandlery had requested that the city provide Ghoreside power at the SMIC dock to accommodate the Tustumena when it was in for repairs. He reported that the city estimated that a 400 amp service could be extended to the dock for approximately $7500, and he hoped to recover the cost of installation from moorage and other fees. SCHAEFERMEYER also noted that the governor was due to arrive in Seward at 12:30 p.m. He stated that he and the Mayor would be conducting a tour of the community for Governor Hickel and Max Hodel and reminded Council of the reception scheduled for 6:30 p.m. at the IMS Rae Building, 8. COUNCIL DISCUSSION CRANE asked for an explanation of the impact the extensive use of diesel generators would have on consumer electric bills, Schaefermeyer stated that the "fuel surcharge" listed on local electric bills had nothing to do with local generation of power, but was a surcharge from Chugach Electric which was passed on to the customer. He stated that the city had no way at the present time to recoup the additional cost of generating power locally; however, he did not rule out the possibility of the need for a temporary amendment to the tariff to offset the extraordinary costs experienced by the utility if there were insufficient electric utility reserve funds to cover the operating loss, KRASNANSKY asked if appraisals had been delivered to those property owners from whom the city wished to obtain easements. Schaefermeyer stated that he did not 1--:0 ! L~. _.~ - . City of Seward, Alaska December 27, 1991 City Council Minutes Volume 27, Page 140 know whether the city's contractor had completed these deliveries, adding that Land Field Services was working closely with the city attorney on this project. WHITE asked for an estimate of the cost of generating power locally. Schaefer- meyer stated that power from local generators cost the city approximately $0.30/KWH as opposed to the $0.035/KWH the city paid CEA to deliver power to Seward. BENCARDINO stated that the city had known for years that the generators were aging and that the line was in bad shape; however, monies had not been appropriated to take care of any of these problems until there was no other alternative, He suggested that the Council seriously consider some means of eliminating these power problems in the next budget year. Bencardino also asked what it would cost to bring power to the North Dock for use by Fishing Company of Alaska and others. Diener stated that the cost would be similar to the cost of extending power to the Fourth Avenue Dock. He noted that this had been done at the request of the Marine Highway System, and since installation had been used only three times. SWARTZ stated that any temporary electrical rate increase should not be passed on to those residents outside the city who have been without power for extended periods of time, She also stated that the city had an obligation to address the problems of providing power in these outlying areas and to guarantee these consumers that they would receive reliable electrical power throughout the year, 9. CITIZENS' DISCUSSION None 10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 11. ADJOURNMENT The meeting was adjourned at 11:55 a.m. c "j: / /L- -t ,p'4ulML: CY22,. Donald W, Cripps L_ Mayor