HomeMy WebLinkAbout1988 City Council Minutes
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PAGE 11
REGULAR MEEI'ING - JANUARY 11, 1988
VOLUME 23
ney Arvidson, Administrative Assistant
Martin, Port Marketing Director Gates,
Police Chief Bencardino, Utilities
Engineer Anderson, Parks & Recreation
Director Andrijanoff, and City Clerk
Murphy
IV.
APPROVAL OF MINUTES:
HILTON MJVED TO APPROVE THE NOVEMBER 23 AND DECEMBER
14, 1987, MINUTES AS WRITTEN; THE MarION WAS SECONDED BY SIMUI'IS
AND CARRIED UNANJM.:>USLY.
V. APPROVAL OF CONSENT CALENDAR & REGUlAR MEETING AGENDA:
MEEHAN MJ\1ED TO MEEI' IN EXECUTIVE SESSION IMMEDIATELY
FOLLCWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS A
PERSONNEL MATTER AND A CONFIDENTIAL MEMJRANDUM WHICH HAD BEEN
RECEIVED FROM THE CITY ATTORNEY CONCERNING PCJl'ENTIAL LITIGATION;
THE IDI'ION WAS SECONDED BY NOLL AND CARRIED UNANIMJUSLY.
0' Brien requested that Consent Calendar Item No. 18
[rrerrorandum concerning possible consolidation of the Comnunity
Library into the city administrative structure] be placed on the
Regular Meeting Agenda as Item No. XI (A) . Schaeferrreyer with-
drew Regular Meeting Agenda Item No. IX (A) (2) [proposed
Ordinance No. 601, setting standards for vehicle windshields and
wipers] from the agenda. He stated that the administration
intended to present a resolution urging the state to adopt
cortparable legislation at the next nEeting.
MEEHAN MJ\1ED TO APPROVE THE REX;ULAR MEEI'ING AGENDA AND
THE CONSENT CALENDAR AS AMENDED; THE IDTION WAS SECONDED BY
SIMUTIS AND CARRIED UNANIM:USLY. The follooing actions were
taken:
11
1. Resolution No. 88-001, in recognition of the PERSONNEL/RESO:
outstanding contributions of Ronald A. Garzini to the city of
Seward, was approved and filed;
2. Resolution No. 88-002, authorizing the signatures
for the city bank account and rescinding all previous resolu-
tions in conflict herewith, was approved and filed;
3. Resolution No. 88-003, appointing Darryl Schaef-
errreyer as Interim City Manager and setting his salary, was
approved and filed;
FINANCE DEPT/RESO:
(Bank Account)
PERSONNEL/RESO:
(Appointments)
4. Resolution No. 88-004, authorizing the purchase PRISON/PURCHASING/
of two sentinel sarrpler systems without full utilization of city RESO:
bid procedures, was approved and filed;
( C5E154755 ]
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RB:;ULAR MEEI'ING - JANUARY 11, 1988
VOLUME 23
SBH (Tariff) /RESO: 5. Resolution No. 88-005, setting fees for the
Seward Municipal Small Boat Harbor and rescinding all prior
resolutions in conflict herewith, was approved and filed;
C.ATTY: 6. December 8, 1987, invoice from Wohlforth, Flint &
Gruening for legal services rendered in Noverrber 1987, totalling
$471.36, was approved for payrrent and filed;
C. ATTY: 7. Decenber 7, 1987, invoice fonn Wiley, Rein &
Fielding for legal services rendered in Noverrber 1987, totalling
$2.32, was approved for payrrent and filed;
C.ATTY:
CLAIM FOR DMGS:
(J. Peed)
PURCHASING/CON-
~: (Petrole-
um Products)
PRISON/CON- 213 :
(Fire Access
Rd.)
SMIC/CON- 21"l:
(Drainage dtch)
SBH(Boardwalk):
ABCB:
ABCB:
GAHES OF CHANCE
I & SKILL:
;.
8. December 30, 1987, invoice from HTGP&B for legal
services rendered in June 1987, totalling $11,364.73, was
approved for payrrent and filed;
9. Claim for damages filed by John Peed for alleged
damage to electrical appliances was denied;
10. January 4, 1988, rreIIOrandum from Utility Engineer
Jack Anderson recorrrrending award of a contract for diesel oil,
regular gasoline, unleaded gasoline, gear lubricant, cleaning
solvent and transmission fluid to Marathon Fuel Corporation, and
recorrrrending award of a contract for chassis grease, antifreeze,
hydraulic oil and transmission lubricant to Bay Fuels for a
I-year period with an option for a I-year renewal/extension, was
approved and filed;
11. December 21, 1987, rreIIOrandum from Engineering &
Utilities Manager E. Paul Diener recorrrrending award of a con-
tract to construct a fire access road at the Spring Creek
Correctional Center to D & L Construction for NTE $23,900, was
approved and filed;
12. December 21, 1987, rreIIOrandum from Engineering &
utilities Manager Diener recomrending award of a contract for
construction of a drainage ditch for the SMIC for NTE $10,890,
was approved and filed;
13. January 6, 1988, rreIIOrandum from Administrative
Assistant Kerry Martin recorrrrending approval of an assignrrent of
SBH Boardwalk Lease Site No. 5 from Michael M:::Kern to lee
Gordanier, was approved and filed;
14. ABCB notification of applications for renewal of
liquor licenses as filed by the YUKON J3..Z\R, HARBOR DINNER CLUB,
BREEZE INN, GATEWAY LIQUOR & FOOD MARl', and BPO ELKS #177 3, was
filed without objection;
15. ABCB notification of application for restaurant
designation as filed by BREEZE INN, was approved and filed;
16. Applications for Permits for Ganes of Chance and
Skill as filed by AMERICAN IEION POST #5, SEWARD CHAMBER OF
r CSE15475& )
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REGULAR MEEl'ING - JANUARY 11, 1988
VOllJME 23
COMMERCE, SEWARD LIFE ACI'ICN COUNCIL, and SEWARD BAND & CHOIR
BCOSTERS ASSOCIATION, were filed without objection;
1~
17. Change Order No. 2 (arrended) to the Underwater/ CON-::/5:
&'walling contract for ship transfer system civil work, extending
the completion date for electrical ~rk to February 13, 1988,
was noted for information and filed; and
18. M:NED TO RffiULAR MEEI'ING AGENDA.
VI. BOROUGH ASSEMBLY REPORI':
Kenai Peninsula Borough Assembly President Jonathan
Sewall was not present at this t:irre and his report was deferred
until later in the rreeting. [SEE PAGE 15.]
VII. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
by law relative to a proposed long teDll lease of city property
to Chugach Alaska Corporation for the construction and operation
of a forest products manufacturing and/or electric co-generation
facilities was noted and the public hearing was opened.
Port Marketing Director CHRIS GATES stated that this
project was the culmination of 5-6 !lOnths work with Chugach
Alaska Corporation (CAC) to construct a major sawnill in Seward.
He stated that the lease would be comprised of approximately 20
acres of land directly adjacent to the Marine Industrial Center
on what was the old "Wheelabrator-Frye" lease site. In
addition, CAC would have first right of refusal on two parcels
at either end of the lease site. He explained that eN:.
estimated that it would errploy 80 to 100 fullt:irre errployees
after rraking a $12-$16 Million investrrent in the construction of
the facility. Gates stated that the electric generation
facility would utilize waste (bark, etc.) which was too costly
to dispose of in any other way and would produce electricity and
stearn to operate the facility. Any excess power might be
purchased by the city. eN:. currently plans to manufacture
dirrensional lunber and chips. Gates stated that financing
should not be a problem, adding that the city's only involverrent
in the financing would be the sale of industrial developrrEnt
bonds such as those sold to assist Suneel and Seaways Express.
He added that this lease would provide a good anchor tenant for
the SMIC. In response to questions frClTI the Council, Gates
stated that the city would assist with easerrents necessary for
the construction, but that eN:. ~uld be responsible for all
environITenta1 and other penni tting. He further stated that the
lease agreerrent was very specific in that no subordination of
the lease would be allowed. He stated that the agreerrent
provided for lease credits based on capital investrrent and the
provision of jobs and noted that this type of incentive lease is
proper if the objective of the city is jobs and increased
economic activity for the corrmunity. Gates also noted that, if
PUBLIC HEARINGS:
(Chugach Alaska
lease/sawmill)
( CSE154757 1
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REX;ULAR MEEI'ING - JANUARY 11, 1988
VOllJME 23
approved by the Council, the CAC Board of Directors ~uld
consider approval of the agreeITent at its January 20, 1988,
rreeting.
PAUL 'IWEITEN, CAC Tinber Division Manager, stated that
CAC had been researching the possibility of developing a savJlllill
sorrewhere on the Gulf of Alaska since 1986 in an effort to
increase the economic viability of the corporation and to
provide enployment opportunities. He stated that CAC had
identified a 20-year supply of lumber for the proposed sa\\IDill.
He noted that, initially, CAC had considered other locations,
including Cordova, but Seward proved to be the economic choice.
He noted that current plans call for the mill to be operational
in 1989. In response to a question fran Sirmtis, Tweiten stated
that, follooing approval of the agreeITent by the CAC Board, CAC
~uld begin the pemitting and financing process.
No one else appeared in order to be heard and the
public hearing was closed.
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
None
IX. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by ti tIe only a proposed ordinance
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ADOPTING THE 1987 EDITION
OF THE NATIONAL ELECI'RICAL CODE.
HILTON MJVED TO INTRODUCE PROPOSED ORDINANCE NO. 600;
THE IDI'ION WAS SECONDED BY DUNHAM AND CARRIED UNANThUUSLY.
Public Hearing was scheduled for January 25, 1988.
2. Deleted
B. Ordinances for Public Hearing and Enactment:
RECORDS & RETENTION/ 1.
ORD: (Public ac- public, Gieseler
cess to Records) entitled:
Copies having been made available to the
noted by title only a proposed ordinance
AN ORDINANCE OF THE CITY COUNCIL OF WE CITY
OF SEWARD, ALASKA, AMENDING THE CITY CODE
RELATIVE TO ACCESS TO PUBLIC RECORDS.
( CSE 1~4758 )
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REGULAR MEEI'ING - JANUARY 11, 1988
VOLUME 23
Notice of public hearing as ]X)sted and published by
law was noted and the public hearing was opened; no one appeared
in order to be heard and the public hearing was closed.
SIMlJTIS M:NED TO ENACT PROPOSED ORDINANCE NO. 599; THE
IDI'ION WAS SECONDED BY NOLL.
Arvidson noted the follooing aITendrrents which had been
recoIlIlended by the Seward Trade and Comrrerce Advisory Board:
1. In Section 2-5 (j), change "port of Seward" to
"city of Seward"; and
2. In Section 2-5 (k), insert "or financial" folloo-
ing the word "technical";
O'Brien stated that he was concerned that the public
perception of such a long and specific ordinance ~uld be that
the city was trying to "hide sanething". SchaeferTIeyer
explained that the state has a very specific records disclosure
statute and the city has no choice but to folloo suit.
Hilton stated that charging the public for copies of
city docurrents gave incurrbent mayors and councilrrembers an
advantage during the election process since a mayor or council-
rrember could request copies of city docurrents at. no charge.
After serre discussion, it was a consensus of the Council that
the administration should treat all candidates for elective
office equally once they have filed for city office, charging
incumbents in the sane manner as others are charged for research
and copying of city docurrents.
Murphy noted that a section deleting Sections 2-1 and
2-2 of the City Code ~uld have to be added to the ordinance.
She also requested that the number "four" be inserted in the
blanks in Section 2-2. SIMUTIS and NOLL agreed to incorporate
the changes noted by Arvidson and Murphy into the !lOtion to
enact the ordinance.
THE QUESTION WAS CALLED AND ORDINANCE NO. 599 WAS
ENACTED BY UNANIMOUS VOTE OF THE caJNCIL.
NOTE: KPB Assembly President Sewall presented his report of the
January 5, 1988, rreeting of the Assembly.
RECESS: The rreeting was recessed at 8:50 p.m. and reconvened at
9:00 p.m.
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
( ;: SE 15475q )
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PAGE 16
REGUlAR MEETING - JANUARY 11, 1988
VOLUME 23
COMMUNITY DEVLPMT/RESO:
(Hyett-Palma contract
continued until 2/8/88)
PUBLIC HEARINGS:
(Hyett-Palma
contract for
Downtown en-
hancement)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FRCM
THE GENERAL FUND-FUND BALANCE TO THE COMMU-
NITY DEVELOPMENT Burx;ET FOR THE PURPOSE OF
IMPLEMENI'ING AND M:NITORING THE BUSINESS
ENHANCEMENT STRATEGY PLAN.
Gieseler noted that this issue had generated a great
deal of corrmunity discussion and concern, and he ~uld, there-
fore, pennit public hearing prior to Council discussion and
action. He noted that each person desiring to speak ~uld be
given three minutes. Public hearing was opened.
JOHN BURCKHARDT, Nash Ibad, spoke in favor of the
proposal to contract with Hyett-Palma to facilitate inplerrenta-
tion of the plan/report which had been prepared as a result of
the H-P initial contract with the city. He stated that the
conmunity was behind this project and that the $60,000 requested
was a small arrount to spend in lieu of making costly mistakes
"do.Nn the line" should the business cOIlIllWlity attenpt to imple-
rrent the plan without a professional facilitator. He stated
that the business =nmuni ty is on the verge of doing sarething
positive for the =nmunity and he encouraged the Council to
support the proposed resolution.
MARIE GAGE, 107 West Jefferson, presented a petition
to the Mayor (bearing 6 signatures) in opposition to the plan as
presented. She agreed that the plan was needed, but stated that
the facilitator should be hired from within the state of Alaska,
if possible, and added that the Council should not corrmit
$60,000 to this project unless the city was prepared to fund the
program through to completion.
JIM PARRISH, 227 Fourth Avenue, spoke in favor of the
proposed agreeITent with H-P. He admitted the need for a third
* * party to fi1tflli!tI:J and coordinate the acti vi ties of the corrmmi-
ty, but noted that the private sector was prepared to obtain and
fund a coordinator for the later stages of the project.
DARRYL R03ERS, 330 Second Avenue, stated that he had
seen a lot of negative attitudes in Seward and had been im-
pressed with the positive attitude of everyone involved in this
project. He stated that this positive approach from the cormu-
nity was worth !lOre than the $60,000 requested for the project.
NEIL CAMERON, 525 Third Avenue, stated that he had
been involved with the corrmittee from the beginning and ~uld
hate to see the city's lack of support result in a loss of
enthusiasm which the rrembers of the conrnittee =rently have.
He urged the Council to support the resolution.
DEBBIE PATAPOF, Mile 7, Seward Highway, stated that it
was inportant that the community receive guidance from a profes-
sional in order to "avoid pitfalls" and to "get the best results
** Should read "facilitate".
( CSE154760 )
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REGULAR MEETING - JANUARY 11, 1988
VOLUME 23
utilizing the resources we have in toon".
support of the resolution.
She also urged
No one else appeared in order to be heard and the
public hearing was closed.
HILTON MJVED TO APPRO\1E RESOLUTION NO. 88-006; THE
IDI'ION ~'lAS S:OCONDED BY SIMUI'IS.
Sinu.1tis stated that she was enthusiastic about the
project and added that if there was opposition from the carmu.mi-
ty, those people would have been present at the Council IlEeting
to speak against it. She stated that is was exciting to see
this many people working together in a positive vein. She added
that this was a small investrrent for potential large gains.
Meehan agreed that it was great to see so many people
coming together for one project. He stated that the city has
spent a lot of !lOney to develop other projects to provide jobs
for the COII1l1U11ity, adding that it was noo time to support the
doontoon business district.
Hilton concurred that it was time the city spent sane
!lOney "doontoon". He stated, hooever, that he ~uld like to see
sorrething in writing showing the corrmitrrent of the business
corrmunity to continue on with the project and suggested phasing
the funding. He also suggested an "escape clause" in the H-P
agreeITent which ~uld alloo the city out if H-P failed to rreet
expectations or if the business cormunity determined that it did
not need them (H-P) at SOIlE point in time.
O'Brien stated that he was disappointed in the docu-
rrent which had been prepared by H-P. He stated that, of the 30
pages contained in the report, 18 were a sales pitch for Phase
2. He also stated that at least 90% of the report was "boiler-
plate". He suggested that the city conduct a household survey
to determine the carmu.mi ty I S desires before spending any !lOre
public !lOney on this project. He also objected to hiring
outside the state. He stated that he was in favor of the
concept and the project but asked that action be deferred until
1) another public hearing could be scheduled; 2) a box-holder
survey could be conducted; 3) the Comnittee could analyze the
proposal in depth; 4) a resolution of the Council indicating a
therre for the developrrent could be drafted and approved; and 5)
the Council and corrmittee could ITeet in a work session to go
over and analyze the H- P report.
Dunham agreed that it did not appear that the city
~uld be getting much for the !lOney to be spent on H-P. She
stated that all of the work would be done by local people. She
also stated that she ~uld like to see another public hearing.
Noll stated that everyone had been inpressed with the
dynamics of what has been happening in the carmu.mi ty and added
( CSE154761 )
SMIC/LEASES/RESO:
(Lease w/Chugach
Alaska Corp)
PAGE 18
REGULAR MEETING - JANUARY 11, 1988
VOLUME 23
that !lOney was not the primary concern.
local hire should be a consideration.
~rth "taking a pause" to determine
Anchorage to facilitate the project.
He n....ted, hooever, that
He stated that it was
if talent exists in
~ehan stated that he had a lot of faith and belief in
tre managerrent ability within the city and did not think the
city was in danger of being "snookered" by H-P. He also stated
that H-P had created the "boilerplate" in its report and had
earned the $7,000 the city paid for Phase 1 of the project. He
stated that he strongly supported the project.
Simutis con=red, adding that the (citizens) group
needs direction and the $60,000 srould be considered "venture
capital" which will reap rewards into the future.
O'BRIEN M'J\1ED TO POSTPONE ACTION UNTIL THE FIRST
MEEI'ING IN FEBRUARY; THE IDI'ION WAS SECONDED BY NOLL AND CARRIED
WITH DUNHAM, HILTON, NOLL AND O'BRIEN VarING "YES" AND GIESELER,
MEEHAN AND SIMUI'IS VOTING "NO". The clerk was instructed to
schedule a public hearing for the February 8, 1988, ITeeting to
precede action on the resolution.
2.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A LEASE AGREE-
MENT WITH CHUGACH ALASKA CORPORATION, INC.
O'BRIEN M'J\1ED TO APPROVE RESOLUTION NO. 88-007; THE
IDI'ION WAS SEX:ONDED BY HILTON AND CARRIED UNANIM:lUSLY. (Noll
declared that, as Vice President of Suneel Alaska Corporation, a
company involved in negotiations with CAe regarding the possible
use of the Suneel terminal for the shiprrent of chips, he ~uld
abstain from voting; Mayor Gieseler ruled that an abstension was
not necessary and instructed Noll to cast a vote.)
X. UNFINISHED BUSINESS:
None
XI. NEW BUSINESS:
A. (M::Jved from Consent Calendar) January 6, 1988,
rreIIOrandum fran Finance Director Fobert Peirson concerning the
possible consolidation of the Seward Corrmunity Library into the
city administrative structure was noted.
O'Brien stated that he had asked that this item be
placed on the agenda for discussion. He stated that he was
surprised that this had "gotten this far" without Council
involverrent.
(CSE154702 1
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PAGE 19
REGUIAR MEETING - JANUARY 11, 1988
VOLUME 23
Schaeferrreyer stated that the city had gotten involved
by invitation of the Library Board in its efforts to provide a
retireITent plan for its three enployees. Under the direction of
forrrer city manager Garzini, the administration had presented
the Library Board with certain alternatives, one of which was
incorporation of the library into the city administrative
structure as a departrrent of the city. He noted that libraries
are normally operated as a part of the city, adding that it is
probable that the city will, at sorre point in the future have to
** absorb the hbir(ZS:itfa.1./ into the city structure, and suggested that
it is prudent to do this whi Ie the library is heal thy. He noted
that the Board would continue to exist as an advisory board to
make decisions concerning "shelf material".
O'BRIEN MJVED TO SCHEDULE A WORK SESSION WITH THE
LIBRARY BOARD TO DISCUSS THE PROPOSAL; THE IDI'ION WAS SECONDED
BY HIL'Irn AND CARRIED UNANThUUSLY. The ~rk session was
scheduled for 7:00 p.m., Tuesday, January 19, 1988. Hilton
asked that the Council be provided the information rrentioned in
Peirson's rrerrorandum.
XII. CITY MANAGER REPORI'S:
SCHAEFERMEYER stated that he v.Duld like to schedule a
special rreeting of the Council for Tuesday, January 12, 1988, at
1: 00 p.m. in order to approve the projects to be forwarded to
lobbyist Kent Dawson for consideration by the Governor for
inclusion in his Jobs Bill. The rreeting was so scheduled with
the clerk to prepare a written notice for dissemination the next
day.
XIII.
COUNCIL DISCUSSION:
SIMUTIS asked that the Public Works DepartIrent do
sorrething about the "ice breaks" between Third Avenue and
intersecting streets.
HILTON asked for a status report on I.owell Tunnel
repairs. utilities Engineer Jack Anderson stated that the
contractor is rrobilizing now and that work was scheduled to
start in 2-3 weeks with completion scheduled for early March.
MEEHAN asked if engine lubricants had been included in
the petroleum products bid (they had) and stated that the city
should make some handicap parking spaces available on Fourth
Avenue. Schaeferrreyer stated that spaces will not help unless
there is handicap access onto the sidewalks.
DUNHAM asked the newspaper to give adequate publicity
to the Hyett-palma public hearing scheduled for February 8.
GIESELER stated that he would be going to Seattle on
Friday, January 17, accompanying Chris Gates on courtesy calls
to prospective SMIC tenants, returning to Anchorage the evening
LIBRARY: (Work ses-
sion re possible
incorporation into
ci ty admin.)
(CSE154763 J
** Should read "library".
PAGE 20
REGULAR MEETING - JANUARY 11, 1988
VOLUME 23
of January 19. He stated that he ~uld .q.pear on "Anchorage
Live" on January 20 to plug the Polar Bear Plunge and would be
travelling to Cordova later that day to participate in the
Mayors' Conference. He stated that Governor Cowper is scheduled
to speak at that time. He also noted that Vice Mayor ~ehan
~uld be attending the Peninsula Mayors' rreeting in Soldotna on
January 18. He noted that he had participated in Anchorage
Mayor Fink's town rreeting on January 9. Gieseler also suggested
that he would like to see the city put a second story with a
slant roof on the Fire Hall. He also stated that he had re-
ceived nUlOOrous calls concerning recent pooer outages and damage
to appliances which had occurred. He stated that the City Code
does not alloo the city to reimburse individuals for such damage
but stated that the city administration would "look at the
problem" . Finally, he stated that Senator Stevens had suggested
that Chris Gates head the State Task Force to bring the Navy to
Alaska.
XIV. CITIZENS' DISCUSSION:
WILIARD DUNHAM, Alder Street, Forest Acres, stated
that a pooer outage which had occurred on December 20 had caused
quite a bit of damage to appliances at his residence. He also
cormented on the Navy's letter concerning the 100 mile limit
placed on corrmunist block vessels. He stated that this was a
State Departrrent regulation. (Gieseler not"d that Chris Gates
had promised to obtain a copy of the resolution for the city.)
Dunham also thanked the Council for the action taken on the CAC
lease.
XV. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-lENTS:
None
XVI. ADJOURNMENT:
The IlEeting was adjourned at 10: 35 p.m., and after a
short recess, the Council reconvened in Executive Session to
discuss a personnel matter and a confidential rreIIOrandum from
the Attorney concerning potential litigation.
(City Seal)
tfye~~4
Gieseler
Ma~" "!.v, "
,.l ,'.
" ' :t"fj..:.<.)
,. :.. " If' ,
'"" .~
:~' ~-
;\L
( CSE 154764
-...- .
,., OJ"" ....
'-'';;/k' 1."'.... *,,"
.r,>- . ...... ~".:l
4 1 t OF ,.,\.
q.q<:n-r.
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PAGE 21
SPECIAL MEETING - JANUARY 12, 1988
VOLUME 23
I. CArL TO ORDER:
The January 12, 1988, special rreeting of the Seward
City Council was called to order at 1: 07 p.m. by Vice Mayor
Michael J. M=ehan.
II. OPENING CEREMCNY:
Councilnernber Dunham led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Vice Mayor M=ehan and Councilnernbers
Dunham, Hilton, Meehan, O'Brien and
Sirrntis (Gieseler and Noll were absent
with Council consent.)
Present also: City Manager Schaeferrreyer, Port Mar-
keting Director Gates, Hospital Admin-
istrator Carrq:Dell and City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
HILTON MJVED TO APPRCJ\1E '!HE SPECIAL MEETING AGENDA AS
PRESENTED; THE IDI'ION WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMJUSLY.
V. NEW BUSINESS:
A. Schaeferrreyer stated that he had received a
telephone call from city lobbyist Kent Dawson conceming the
Covemor's Jobs Bill. Dawson indicated that the Covernor hoped
to present the Bill at the end of the week and he strongly urged
the Council to forward a list of city capital priorities which
wuld rreet the criteria set by the Govemor for inclusion in
this special bill. He had also suggested that the hospital
project remain number one on the city's list although the
project is well above the rraxirrurn cost which the Governor had
indicated for projects to be included in the Bill. Dawson noted
that the hospital Ireets all other criteria. Schaeferrreyer
stated that Dawson felt the Covernor might include the Seward
Grade School in the Jobs Bill and that it was possible that both
the school and the hospital ~uld be funded with adequate !lOnies
to start both proj ects with the intent to fund completion next
year.
0' BRIEN MJVED TO APPRCJ\1E THE FOLLCWING PRIORITY LIST
OF PROJECTS FOR INCWSION IN THE GOVERNOR'S JOBS BILL:
1.
2.
3.
4.
SEWARD GENERAL HOSPITAL
HANDICAP ACCESS/CITY HALL
POLICE DISPATCH RENO\lATION
EXTENSION OF UTILITIES 'ID SMIC FACILITIES
21
CIP: (Priority list
for Governor's
Jobs Bill)
( CSE154765 1
22
PAGE 22
SPECIAL MEETING - JANUARY 12, 1988
VOLUME 23
5. SERVICE DCCK - SMIC
THE IDI'ION WAS SECONDED BY SIMUI'IS AND CARRIED UNANThUUSLY.
In response to a question from ~han, Schaeferrreyer
stated that if Dawson felt it appropriate to include the Joint
Use (Ferry/IMS/City) dock in tre list, he ~uld include it in
his letter. All present concurred.
VI. CITY MANAGER REPORTS:
SCHAEFERMEYER stated that Fepresentative Cato had
introduced HB 349, increasing the Alaska Railroad Board from
five to seven rrembers, with one rrember to carre from Fairbanks
and another from Seward. He stated that Dawson suggested that
the city's first lobbying trip to Juneau coincide with the
hearings on the bill.
VII. COUNCIL DISCUSSION:
HILTON asked for a status report on the senior/com-
muni ty center. Schaeferrreyer stated that he had extended the
proposal date until February 15 at the request of the only
serious proposer on the project. He stated that the proposer
had indicated that all of his subcontract bids had COlI'E in well
over the budget which had been set by the city. Schaeferrreyer
also noted that a substantial completion certificate would be
issued to Sanwahn on January 13 which ~uld trigger the start of
the lease with the State.
O'BRIEN asked if the city profitted from the lease to
the State. Schaeferrreyer stated that tre lease payrrent was a
pass-through to Rainier Bank to cover bonding debt.
MEEHAN stated that he ~uld be attending the Borough
Mayors' Ireeting on M:mday, January 18, and ~uld remind the
other mayors wi thin the Borough that the Seward School must
remain the Borough's number one priority.
0' BRIEN asked if the dock to be constructed by Chugach
Alaska Corporation (CAe) would be open to the public. Gates
explained that, under IDB regulations, the dock ~uld be public,
with a published public tariff. However, CAe would have priori-
ty use of the dock and the tariff ~uld probably discourage
other users except on an eIlErgency basis. He noted that tariff
payrrents ~uld carre to the city.
VIII.
CITIZENS' DISCUSSION:
None
IX. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' COMMENrS:
None
leSE 154766 1
I
I
I
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PAGE 23
SPECIAL MEETING - JANUARY 12, 1988
VOLUME 23
x.
AIllOURNMENT :
The ITeeting was adjourned at 1: 58 p.m.
4
(City Seal) .. ,
-------------------------~--------------------------------------
PAGE 23
REX;ULAR MEErING - JANUARY 25, 1988
VOLUME 23
I. CALL TO ORDER:
The 'Tariuary 25, 1988, regular ITeeting of the Seward
City Council was cailed to order at 7:35 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Councilrrernber Si1m1tis led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilrrernbers Dun-
ham, Hilton, M:ehan, Noll and Si1m1tis
(O'Brien was absent with Council
consent)
Present also: City Manager Schaefe:rrreyer, Engineering
& Utili ties Manager Diener, Finance
Director Peirson, Parks & Recreation
Director Andrijanoff, Port Marketing
Director Gates, Deputy Fire Chief
Squires, Police Chief Bencardino and
City Clerk Murphy
IV. APPROVAL OF MINUTES:
Murphy noted that the word "hospital" on PageJ9, Line
10, should be changed to "library". Hilton noted that the word
"facility" on Page 16, should be changed to "facilitate".
MEEHAN MOJED TO APPROVE THE JANUARY 11, 1988, MINUTES
AS CORRECI'ED AND THE JANUARY 12, 1988, MINUTES AS PRESENTED; THE
MOI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANIM:USLY.
V. APPROVAL OF CONSENI' CALENDAR & RffiULAR MEETING AGENDA:
( CSElS4767 1
24
PARKS & REC/RESO:
(Swim Program)
HISTORIC DIST/RESO:
(Downtown Dist.)
HISTORIC DIST/RESO:
(Van Gil~er Hotel)
C.ATTY:
C.ATTY:
I C. A'l'TY :
ACCOUNTS PAYABLE:
CON-~I.O:
BOADWALK:
CLAIM FOR DAMAGES:
(H. Pillsbury)
PAGE 24
REGULAR MEEI'ING - JANUARY 25, 1988
VOLUME 23
Gieseler requested the addition of proposed Resolution
No. 88-013, endorsing the state Senate proposal to horreport U.
S. Navy vessels in Alaska, to the Consent Calendar as Item No.
15. He also noted that Regular Agenda Item No. VIII (A), presen-
tation by Peter Hansen, was being deleted at the request of Dr.
Hansen (He rescheduled for the February 8, 1988, rreeting); and
that Regular Meeting Agenda Item No. VIII (B), presentation by
John Burnett of Cablevision, was being added to the agenda.
MEEHAN MJVED TO APPRO\lE 'IRE REGULAR MEETING AGENDA AND
THE CONSENT CALENDAR AS AMENDED; THE IDI'ION WAS SOCONDED BY
HILTON AND CARRIED UNANThUUSLY. The follooing actions were
taken :
1. Resolution No. 88-010, accepting matching funds
for the corrmuni ty swim program and appropriating them to the FY
1988 Parks and Recreation Departrrent budget, was approved and
filed;
2. Resolution No. 88-011, redefining the Downtoon
Historic District, was approved and filed;
3. Resolution No. 88-012, designating the Van Gilder
Hotel as having a special historical significance, was approved
and filed;
4. January 19, 1988, invoice from Vbhlforth, Flint &
Gruening totalling $5,084, for professional services rendered in
connection with the city of Seward Series 1987 General Cbliga-
tion Bonds, was approved for payrrent and filed;
5. January 11, 1987, invoice from Vbhlforth, Flint &
Gruening for legal services totalling $891.31, was approved for
payrrent and filed;
6. Corrected June 1987 invoice from HTGP&B (approved
for payrrent on January 11, 1988) was noted for information and
filed (total should read $12,516.48, NOT $11,364.73);
7. January 11, 1988, Finance Departrrent list of
Accounts Payable totalling $727,263.56, was approved for payrrent
and filed;
8. Change Order No. 1 to the BrONn Construction
contract for the SMIC water distribution system extension,
deleting 9 fire hydrant assemblies and reducing the contract by
$6,897.33, was approved and filed;
9. Assignrrent of leasehold interest in SBH Boardwalk
Site No. 7 (Ray and Leslie Simutis) to First National Bank of
Anchorage for security purposes, was approved and filed;
10. Claim for damages totalling $670.40, as filed by
Harold W. Pillsbury, for damage to a television and cord organ
r CSE1547&8 )
I
I
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PAGE 25
REX;ULAR MEEI'ING - JANUARY 25, 1988
VOLUME 23
which occurred during a December 19, 1987, power outage, was
denied and filed;
11. Claim for damages for an unspecified amount, as
filed by Martin L. Goreson for water damage resulting fran a
broken water main, was denied and the claim was referred to the
city insurance adjusters;
25
CI./l..IM FOR DAMAGES:
(M.Goreson)
12. ABCB notification of application for renewal of a ABCB: (Peking)
liquor license as filed by the PEKING RESTAURANT, was filed
without objection;
13. Applications for permits for ganes of chance and
skill as filed by WES-GEN HOSPITAL AUXILIARY and MARATHON
Ha.1EMAKERS were filed without objection;
GAMES OF CHANCE &
SKILL:
14. Proclamation of the Mayor designating February PROCLAMATIONS:
1988 as E.M.S. Month in the city of Seward was noted for infor-
mation and filed; and
15. Resolution No. 88-013, endorsing the state Senate PORT DEV. / RESO:
proposal to horreport U. S. Navy vessels in the state of Alaska,
was approved and filed.
VI. BOROUGH ASSEMBLY REPORI':
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the Assembly rreeting of January
19, 1988.
VII. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
by law relative to a proposed cooperative management agreerrent
with the Alaska Division of Parks and Outdoor Recreation for the
use of a portion of lot 3, Deacon Subdivision No.2, for a
trailhead/parking lot to Caines Head State Recreation Area, was
noted and the public hearing was opened; no one appeared in
order to be heard and the public hearing was closed.
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
A. DELETED
B. JOHN BURNETT, representing Seward Cablevision,
stated that Cablevision was prepared to begin televising city
council ITeetings (live) beginning February 8, 1988. He stated
that this had been in the planning stages for some time and that
the camera and equiprrent for the project would be donated by
Cablevision. Burnett indicated that his office ~uld like to
eventually turn this project over to the high school and alloo
students the experience of filming the rreeting. He added that
Cablevision hoped to give the local high school access to one
PUBLIC HE/l..RINGS:
(Deacon Sub -
Caines Head pkg.
& trailhead)
CITI ZEr-;S' DI SC:
(J.Burnett -
CablevisioJ1)
(C5E154769 )
26
PAGE 26
REGULAR MEEI'ING - JANUARY 25, 1988
VOLUME 23
full channel for the Council ITeetings; school sports, concerts
and plays; and other locally generated programs.
In response to a question from Gieseler, Burnett
stated that there would be no cost to the city for airing the
ITeetings. However, if the ITeetings proved to be popular ,
Cablevision might ask for a donation from the city to help cover
the station's purchase of a rrodulator (total cost - $800) which
~uld be permanently !lOunted in Council Chambers. He stated
that Cablevision was a very snall operation and this purchase
had severely inpacted his limited operating budget.
In response to a question from Noll, Burnett stated
that Cablevision wants to get !lOve involved in the conmunity and
sees this interaction between the high school and the city as
one way to bring this about. He stated that, initially, Council
rreetings would be aired over Channel 11.
The Council voiced no objection to the broadcast of
the ITeetings.
IX. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed ordinance
BUILDING DEPT/ORD:
(1987 N.E.C. adopted)
AN ORDINANCE OF THE CITY COUNCIL OF '.mE CITY
OF SEWARD, ALASKA, ADOPTING THE 1987 EDITION
OF THE NATIONAL ELEX::TRICAL CODE.
Notice of public hearing as posted and published 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 IDVED TO ENACT ORDINANCE NO. 600; THE IDTION
WAS SOCONDED BY HILTON AND CARRIED UNANThUUSLY.
C. Resolutions:
DEACON SUB/RESO:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING A COOPERATIVE
MANAGEMENT AGREEMENT WITH THE ALASKA
( CSE154770 ]
I
I
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I
PAGE 27
REGULAR MEETING - JANUARY 25, 1988
VOLUME 23
DIVISION OF PARKS AND OUI'JXX)R RECREATION FOR
THE USE OF A PORI'ION OF LOr 3, DEACON
SUBDIVISION NO.2, FOR A TRAILHEAD/PARKING
LOr TO CAINES HEAD STATE RECREATION AREA.
HILTON MJVED TO APPROVE RESOLUTION NO. 88-008; THE
IDI'ION WAS SECONDED BY SIMUI'IS.
In responsed to a question from M3ehan, Diener stated
that the lease site was approximately 60' x 40'. Schaeferrreyer
stated that there were no other rent or lease-free parcels
available for this use. He noted that the agreeITent had an
escape clause in case the city should need the property in the
future.
THE QUESTION WAS CALLED AND THE IDI'ION CARRIED UNANI-
M:XJSLY.
2.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, URGING THE STATE OF
ALASKA TO RESUME FUNDING OF THE FISH REHA-
BILITATION, ENHANCEMENT AND DEVEU)PMENT
PRCX;RAM AT A LEVEL THAT WILL ENSURE THE
CONTINUATION AND EXPANSION OF THE FISH
BY-PRODUCTS REDUCTION INDUSTRY.
MEEHAN noted that, as manager of the local reduction
plant (Seward Fisheries), he would abstain from discussing and
voting on the resolution. GIESELER ruled that an abstention was
in order.
SIMUI'IS IDVED TO APPROVE RESOLUTION NO. 88-009; THE
IDI'ION WAS SECONDED BY NOLL AND CARRIED WITH FIVE "YES" VOI'ES
AND MEEHAN ABSTAINING.
X. UNFINISHED BUSINESS:
None
XI. NEW BUSINESS:
A. MEEHAN MJVED TO APPROVE THE REVERSAL OF THE
$56,090 IN CHARGES REMAINING ON SUNEEL' S DIESEL GENERATION
ACCOUNT; THE IDrION WAS SECONDED BY HILTON.
NOLL noted that, as Vice President of Suneel Alaska
Corporation, he ~uld abstain from discussing or voting on the
issue at hand. Gieseler ruled that an abstention was in order.
27
ELECTRIC DEPT:
(R3versal of Sun-
eel diesel gen.
charge)
( CSE154771 J
?8
~,
PAGE 28
REGULAR MEETING - JANUARY 25, 1988
VOIlJME 23
tlEehan stated that, given the excessive power
generation charges which have been levied against Suneel, the
$56,090 in question should be forgiven. He added that, even
with this reduction, Suneel would continue to pay the highest
rate of any electric utility customer.
THE QUESTION WAS CALLED AND THE IDI'ION CARRIED WITH
FIVE "YES" VOI'ES AND NOLL ABSTAINING.
SMIC (North Dock) / B. SIMUI'IS IDVED TO AUTHORIZE THE CITY MANAGER TO
CON-;l.SI/RESO: AWARD A CCNrRACT TO SWALLING CONSTRUcrION FOR AN AMOUNT Nor TO
(Sheetpile EXCEED $1,055,000.00 FOR THE PURCHASE OF SHEETPILE FOR THE SMIC
supply) NORTH DCCK; THE IDI'ION WAS SOCONDED BY NOLL.
Diener noted that, if the dock project proceeds on
schedule, the city will have a dock in place this surnrer. He
stated that the steel is scheduled to be delivered about May 11,
adding that a contract for construction will not be given the go
ahead to proceed until the steel is on site. In response to a
question frcrn Hilton, Diener stated that there ~uld be no cost
savings to the city in letting the construction contractor
supply the steel since a purchase of this size would warrant the
sarre price for any purchaser. In addition, it ~uld be IlOre
expensive to have the contractor purchase the materials since
the contractor would be obliged to "mark up" the price of the
materials to cover his cost of handling them.
Diener also noted that the council could expect sane
minor design changes which could eliminate up to 10% of the
steel which was bid. He also noted that the sewer system
extension bids had been opened and they were very favorable,
adding that sorre of the funds originally designated for the
sewer extension could be diverted to the North Dock project.
THE QUESTION WAS CALLED AND THE MJI'ION CARRIED UNANI-
MJUSLY.
XII. CITY MANAGER REPORI'S:
SCHAEFERMEYER stated that Michael Yanez, currently
enployed by the Anchorage Parks & Recreation Departrrent, had
been hired to replace Parks and Recreation Departrrent Director
Judi Andrijanoff. He stated that Yanez ~uld begin work on
February 3 and ~uld be introduced to the Council at the next
rreeting.
SCHAEFERMEYER also stated that he had received a
telephone call fran city lobbyist Kent Dawson concerning the
Alaska Railroad bill (increasing the size of the board from 5 to
7 nembers). The bill has been favorably reported out of Ibuse
Transportation and is noo before House Finance, scheduled for
hearings the first week of February. NOLL volunteered to
represent the city at the initial hearings before committee.
Schaeferrreyer noted that he and the Mayor and one other Coun-
( CSE 154772 1
I
I
I
29
PAGE 29
REGULAR MEETING - JANUARY 25, 1988
VOLUME 23
ci1rrember should attend the hearing before floor action on the
bill, tentatively scheduled for the third week in February.
SCHAEFERMEYER stated that the Hyett-Palrra proposal for
DcMntawn Enhancerrent had been scheduled for public hearing on
February 8. He suggested that the Council rreet with the local
citizens group in a VoDrk session prior to that tirre. The VoDrk
session was scheduled for MJnday, February 1, 1988, beginning at
7:00 p.m.
GATES reported that he had attended the Chugach Alaska
Corporation board rreeting in Seattle on Thursday. The CAe lease
of city property had been approved and the Board had given the
administration the go ahead to begin permitting and construction
as soon as possible. He noted that the Board did not approve
the co-generation facility concept at its last rreeting, which
could result in the sale of 2.5 row of I.XJwer to CAe when the
sawmill begins operation. DIENER stated that this VoDuld present
no problem to the city.
XIII.
COUNCIL DISCUSSION:
NOLL stated that he appreciated the chance to repre-
sent the city in Juneau to discuss the ARR bill. He noted that
the ARR is currently under review by Connonwealth Jlbrth to
determine if it should be sold to the private sector. Jlbll also
suggested that the city put together a Navy Task Force (similar
to the Prison Task Force) to focus on a conmunity-based effort
to horreI.XJrt sorre elerrent of the U. S. Navy in Seward. Finally,
Jlbll stated that he did not believe that Hyett-Palrra was the
only answer to Seward's DcMntawn Enhancerrent Plan, adding that
he VoDuld like to see an atterrpt at "local" hire.
MEEHAN thanked Judi Andrijanoff for her dedicated
service to the city as Parks and Recreation Director, stating
that she had perforrred the job well and VoDuld be missed by the
cc.mrnmi ty .
DUNHAM stated that she could not believe that a
qualified person could not be found in Seward to replace Andri-
janoff. She stated that at least one Seward resident was well
qualified and should have been considered for the position.
GIESELER reminded the Charter Review Carrmittee that it
was to report to Council in February. He also asked the Clerk
for a status report on the City Manager applications. Murphy
stated that approximately 40 applications had been received and
that only a few of the applicants were from Alaska. She added
that the application process VoDuld close on February 10.
Gieseler also noted that he had attended a rreeting of the Alaska
Conference of Mayors in Cordova which had been addressed by
Governor CaNper.
( CSE1S4773 )
30
PAGE 30
REGULAR MEETING - JANUARY 25, 1988
VOLUME 23
XIV. CITIZENS' DISCUSSION:
BRUCE SIEMINSKI, Benson Drive, thanked the Council for
"holding off" on Hyett-Palrra. He suggested that the Council
divert the rroney it was considering spending on H-P to conmmity
advertising or rebuilding inside the city.
BOB VALDA'ITA, 528 Fifth Avenue, stated that he sup-
ported the city and state's efforts to encourage the U. S. Navy
to horreport in Alaska, but suggested that the city give sorre
recognition to the U. S. Coast Guard already present in town.
JONATHAN SEWALL, 2403 Diarrond Blvd., stated that the
KPB Solid Waste Corrrnission VoDuld rreet in Seward on February 4
beginning at 7:30 p.m., in the Council Charrbers. He also noted
that the Borough Assembly is already on record supporting the
city's efforts to reorganize the Alaska Railroad Board to allow
Seward representation.
XV. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
Jlbne
XVI. ADJOURNMENT:
The rreeting was adjourned at 8:55 p.m.
n
Ci
. ~~~~;i~~~'\
v:-;f "(i'~,
:... -." .-
t!r"
& ~hU:1~'t.J
Harry . Giesefir
Mayo
lr -, '. ' .. t
S r~, -\ 1.
...~-
( C SE 154114 )
I
I
I
31
PAGE 31
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
I. CALL TO ORDER:
The regular rreeting of the Seward City Council was
called to order at 7:30 p.m. by Mayor Harry E. Gieseler.
II. OPENING CEREMJNY:
Counci1rrember Hilton led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, ~ehan, Jlbll, O'Brien and
SimJ.tis
Present also: City Manager Schaeferrreyer, City Attor-
ney Arvidson, Administrative Assistant
Martin, Port Marketing Director Gates,
Manager of Engineering & Utilities
Diener, Parks & Recreation Director
Andrijanoff, Police Chief Bencardino
and City Clerk Murphy
SPEr:IAL ITEMS:
Gieseler welcorred Cablevision, noting that Council
rreetings were now being broadcast "live" over Channel 11.
IV. APPROVAL OF MINUTES:
SIMlJI'IS IDVED TO APPROVE THE JANUARY 25, 1988, MINUTES
AS WRITTEN; THE MJI'ICN WAS SEr:ONDED BY DUNHAM AND CARRIED
UNANIMJUSLY.
V. APPROVAL OF CONSENT CALENDAR & REGULAR MEETING AGENDA:
Gieseler noted that Agenda Item JIb. IX (C) (2) [Hospital
Design Funding] was being deleted from the regular rreeting
agenda. He also requested that Consent Calendar Item JIb. 3
[Claim for damages as filed by Don Ennis] be rroved to the
regular rreeting agenda [Item JIb. XI (A)] and that Council approve
the addition of new Regular hJenda Item JIb. X(A) [Presentation
by Chris Gates] . -
~ehan requested the addition of the words "hatchery
produced" imrrediately preceding "silver salrron" in the second
"WHEREAS" clause in proposed Resolution JIb. 88-015.
HILTON MOIlED TO APPROVE THE RffiULAR MEETING AGENDA AND
THE OJNSENT CALENDAR AS AMENDED; THE MJTICN WAS SEr:CNDED BY
SIMUTIS AND CARRIED UNANIM:XJSLY. The following actions were
taken:
( CSE 154715 )
32
IND.DEV./RESO:
(Trail Lk Hatch)
C.ATTY:
ABCB:
ABCB:
ABCB:
GAMES OF CHANCE
SKILL:
SMIC/CON- 2 ~3:
(Sewer ext.
contract)
CON- 7.33 :
(Con. extension)
CON-2l8
(CO#3)
CON-228:
(CO#3)
PAGE 32
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
1. Resolution JIb. 88-015, urging full funding of the.
Trail Lakes Fish Hatchery, was approved and filed;
2. July 1987 invoice from HTGP&B for legal services
totalling $12,454.60 was approved for payrrent and filed;
3. MJved to Regular ~ting Agenda, Item JIb. XI (B) ;
4. ABCB notification of applications for renewal of
liquor licenses as filed by IATI'IUDE 60 and APOLLO RESTAURANT
was filed without objection;
5. ABCB notification of application for renewal of a
liquor license as filed by THE RED ROOSTER was noted and a
30-day extension for reply was requested from the ABCB;
6. ABCB applications for restaurant designation as
filed by APOLLO RESTAURANT and THE RED ROOSTER were approved and
filed;
& 7. Application for permit for garres of chance and
skill as filed by SEWARD JR/SR HIGH SCHOOL was approved and
filed;
8. February 1, 1988, rrerrorandum from E&U Manager
Diener recormending award of a contract for SMIC sewer extension
to Herndon & Herndon for an arrount NTE $156,860 was approved and
filed;
9. February 1, 1988, rrerrorandum from Diener recom-
mending extension of a contract with Corwin & Associates for
construction services relative to the SMIC sewer extension
project was approved and filed;
10. Change Order JIb. 3 to the Underwater/Swalling
contract for SMIC ship transfer facility civil v.Drk and util-
ities (JIb. 218), decreasing total contract by $8,200 was noted
for information and filed;
11. Change Order No. 3 to the U/S contract for SMIC
ship transfer facility civil work and utilities extension (No.
228), decreasing total contract by $17,183 was noted for
information and filed; and
12. February 1, 1988, rrerrorandum from Diener setting
forth construction and public works projects status information
was noted for information and filed.
VI. BOROUGH ASSEMBLY REPORl':
( CSEl5411b )
I
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PAGE 33
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
Kenai Peninsula Borough Asserrbly President Jonathan
sewall was not present and no report was presented.
VII. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
was noted and the public hearing was opened.
JIM PARRISH, 227 Fourth Avenue, stated that he had
been elected interim president of the seward Enhancerrent Asso-
ciation. He requested, on behalf of the Association, that the
Council postpone action on proposed Resolution No. 88-006 until
the May 9 rreeting to give the Association a chance to determine
the direction it wishes to take.
No one else appeared in order to be heard and the
public hearing was closed.
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
PETER o. HANSEN was not present at this tirre. He
appeared later in the rreeting and was allowed to speak following
introduction of ordinances. [SEE PAGE 34.]
IX. ORDINANCES AND RESOLUTlOOS:
A. Ordinances for Introduction:
Copies having been made available to the public,
Gieseler noted by title only a proposed ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, MASKA, AMENDING SECl'ION 21-38 OF
THE CITY CXIDE REGUIATING THE OPENING AND
CLOSING OF PUBLIC CAMPGROUNDS.
HILTON IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 601;
THE MJI'IOO WAS S~ED BY SIMUI'IS.
In response to a question from 0' Brien, Schaeferrreyer
stated that the city has been posting the public carrpgrounds
"closed" at the end of the campground managerrent contract season
each year; however, the City Code currently contains no statuto-
ry authority for winter closing. He explained that the public
carrpgrounds and beaches have no working sanitary facilities in
winter. In addition, litter control and trash collection are a
problem in the off-season when there is no one to manage the
grounds. Schaeferrreyer added that the city needs sorre rrechanism
to rid the carrpgrounds of those who attempt to set up a semi-
permanent residence in tents, buses, etc. on public property in
the winter. He also noted that a privately owned and operated
facility is available for winter carrpers.
33
PUBLIC HEARINGS:
Hyett/Palma con.
for downtown en-
hancement
(CSE154717 )
34
CIT.DISCUSSION:
(Peter Hansen)
PAGE 34
REr;ULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
Gieseler stated that he was concerned about the
liability to the city if canping is allowed on the waterfront in
the winter. Schaeferrreyer responded that the city has a public
health responsibility to provide public restrooms and litter
control if it opens the campgrounds.
In response to ~ehan' s concern regarding the dates
cited in the ordinance, Schaeferrreyer stated that these dates
coincided with those in the campground managerrent contract.
Hilton stated that, in the past, "squatters" have
rroved into the Forest Acres Campground. He noted that rrost of
these canpers reside in vehicles which are not self-contained
and create a sanitary problem in the campground.
~han stated that he could support the ordinance if
it exempted the beach front along Seventh Avenue. Dunham stated
that she VoDuld be willing to support the ordinance if it made
provisions for groups who visit Seward in winter to participate
in special events such as the Polar Bear Jurrp, the Kayaking
Syrrposium, etc.
Dunham suggested extending the campground managerrent
contract to cover year-round managerrent of the facilities.
Schaeferrreyer stated that there would not be sufficient revenue
in the off-season to make this feasible.
HILTON MJVED TO AMEND THE ORDINANCE BY MAKING THE
SEr:OND SENTENCE IN SECTICN (b) READ "EXCEPT FOR THOSE AREAS
OPENED FOR SPEr:IAL EVENTS BY RESOLUTICN OF COUNCIL, ALL PUBLIC
CAMPGROUNDS SHALL BE CLOSED TO CAMPING BEXiINNING OCTOBER 1,
THROUGH MAY 14, ANNUALLY"; THE MJTION WAS SECONDED BY SIMlJI'IS
AND CARRIED WITH SIX "YES" VarES AND O'BRIEN VarING "NO".
THE QUESTION WAS CALLED ON 'IRE MAIN MJTION AND PRO-
POSED ORDINANCE NO. 601 WAS INTRODUCED WITH FIVE "YES" VOI'ES AND
MEEHAN AND O'BRIEN VarING "NO".
**VIII.
CITIZENS' DISCUSSION: (With prior notice only)**
**TAKEN OUT OF ORDER. **
DR. PETER HANSEN, 418 Rogers Road, Kenai, addressed
the Council concerning his proposal to place a protective
grating over the entrance to Lowell Canyon Tunnel to prevent any
further loss of life there. (Dr. Hansen's son, Leif, was killed
when he was accidentally swept through the tunnel on July 4,
1986.) Hansen thanked the city for the various inprovements
which had been made to make the tunnel entrance area safer -
fencing, signs, policing the area, etc. - but stated that this
was not enough. He showed several slides depicting children
playing near the entrance of the tunnel and breaks in the
protective fence. He also displayed his design for a protective
grating which VoDuld allow smaller rocks and debris to pass
( CSE154778 )
I
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PAGE 35
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
through the tunnel but which v.Duld not allow a person or animal
to pass through the entrance. He stated that this v.Duld require
maintenance and periodic cleaning by the city, but v.Duld be
v.Drth the expense if even one life could be saved. Gieseler
stated that he v.Duld pass the plans for the grating along to the
administration for review by the Engineering Departrrent .
B. Ordinances for Public Hearing and Enactrrent:
None
C. Fesolutions:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by ti tIe only a proposed resolution
A RESOLUTION OF 'IRE CITY COUNCIL OF 'IRE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FRCM
THE GENERAL FUND FUND BALANCE TO THE COMMU-
NITY DEVELOPMENT Burx;ET FOR THE PURPOSE OF
IMPLEMENTING AND MJNlTORING THE BUSINESS
ENHANCEMENT STRATEGY PIAN.
Murphy stated that this item had been postponed from
the January 11, 1988, rreeting and a notion for approval was
already on the floor.
SIMUTIS J'IDVED TO POSTPONE ACTION eN PROPOSED RESOlli-
TION NO. 88-006 UNTIL MAY 9, 1988; THE MJI'ION WAS SECCNDED BY
HILTON AND CARRIED UNANIMJUSLY.
2. DELETED
x. UNFINISHED BUSINESS:
A. CHRIS GATES, Port Marketing Director, presented a
status report on current and proposed city projects as follows:
CHUGACH ALASKA CORPORATION LEASE: The project is
proceeding normally. He stated that the Corps of Engineers
permit applications were filed last week and the interagency
review produced no adverse corrments.
U. S. NAVY HCMEPORI'ING: Gates noted that the Trade
Board had appointed a Task Force headed by Counci1rrember Jlbll to
put Seward in the matrix for selection. He stated that he had
attended a teleconference at Noon on Thursday and noted that
Seward was the best represented corrmmity participating.
HARBOR ENTERPRISES: Gates stated that the city has
negotiated a lease with Harbor Enterprises for a bulk diesel
distribution plant adjacent to the new Jlbrth Dock.
35
COMMUNITY DEV/RESO
Hyett-palma con.
Action postponed
( CSE154119 )
36
PORT DEV.:
(Navy Home-
porting Task
Force Rept.)
PORT DEV/CON-
(Con w/Makers
for consultation
authorized)
CLAIMS FOR DAMGS:
(Don Ennis -
Denied)
PAGE 36
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
SMIC DEVELOPMENT: Gates stated that the city is still
trying to attract a ship repair facility and indicated that he
is currently involved in discussions with both Seward Ships
Chandlery (Jim Pruitt) and Foss. He stated that he v.Duld
evaluate both proposals and atterrpt to get the best deal for the
city.
Gieseler allowed JIM PRUITT, Maple Street, proprietor
of Seward Ships Chandlery, to address the Council. Pruitt
stated that he was ready to proceed with a lease of the 300'
station irmediately. He stated that it was imperative that he
have access to the 300' station because without it he v.Duld be
capable of servicing only smaller vessels. He suggested that
the 300' berth be open for joint use by the two proposers.
XI. NEW BUSINESS:
A. NOLL stated that he was heading a task force to
entice the U. S. Navy to horreport one or nore vessels in Seward.
He noted that the Navy has indicated that two Aegis-Class
cruisers are destined for Alaskan waters. In response to this,
the state has contracted with Retired Admiral KnaW to lead an
inquiry into the Navy's requirements for horreporting. He (Jlbll)
stated that Seward rreets nost, if not all, of the requirerrents.
As Chair of the Seward Task Force, Jlbll stated that he had
contacted Makers Engineering Carpany. Makers has been involved
in tv.D successful horreporting ventures in the past, both as an
agent of a port seeking Navy presence and as an agent of the U.
S. Navy investigating various ports before locating in one.
Jlbll stated that Makers is available to contract with the city
on an exclusive basis, and he recornrended that the city enter
into an initial contract with Makers to assess Seward and advise
the city on how best to attract the Navy. He indicated that the
cost of such a contract would be $2,000-$2,500.
SimJ.tis stated that the city's first step should be to
determine if the comrmmity wants to embark on this course. Jlbll
stated that these concerns have been reflected in conversations
and discussions already. In response to a question from Giese-
ler, Schaeferrreyer stated that funds are available for an
initial contract with Makers.
GIESELER, WITHOUT OBJECTION FROM THE COUNCIL, IN-
STRUCTED SCHAEFERMEYER TO ENTER INTO A CCNTRACT WITH MAKERS TO
AID IN THE CITY'S EFFORI'S TO ATTRACT THE U. S. NAVY TO SEWARD.
B. Prior to discussion and action by the Council,
Gieseler allowed DON ENNIS, 1019 Second Avenue, to address the
Council regarding his claim for damages. (Ennis had filed a
claim for alleged water damage to his basement totalling
$3536.88.)
Ennis stated that the damage to his basement was
caused when a city drainage ditch which was plugged with snow
overflowed following failure of a city water line. He stated
(CSE154180 ]
I
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I
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PAGE 37
REX;ULAR MEEI'ING - FEBRUARY 8, 1988
VOLUME 23
that this has been an ongoing problem on Second Avenue for as
long as he has lived there. He stated that he was asking for
damages and sorre assurance from the city that it will install a
storm drain frcm First Lake to the Lagoon or Bay to alleviate
the problem.
MEEHAN MJVED TO DENY THE CLAIM AS SUBMITTED BY MR.
ENNIS AND TO FO~ THE CLAIM TO THE CITY'S INSURANCE ADJUSTERS
FOR EVALUATleN AND '!HAT THE ENGINEER AND ADMINISTRATION IroK
INTO THE POSSIBILITY OF DEVEIDPING A TUNNEL TO AVOID FURTHER
PROBLEMS; THE MJTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MJUSLY.
XII. CITY MANAGER REPORrS:
SCHAEFERMEYER introduced newly appointed Parks and
Recreation Departrrent Director Mike Yanez.
SCHAEFERMEYER also noted that he had received word of
the final aITOunts included in the Governor's Jobs Bill for
Seward as follows:
$100,000 - SMIC utility expansion to new dock
150,000 - Handicap access to city hall
50,000 - Senior/Conmmity Center/MusewH
50,000 - Carrelot SUbdivision electrical project
150,000 - Caines Head State Park Recreation Area
$500,000 - 'lUI'AL
He stated that the Governor was not willing to include any
funding for the hospital in this bill but had promised to
include it in the capital bill later in the session.
SCHAEFERMEYER noted that HE 349 (ARR Board expansion)
was scheduled for action on the House floor Friday. He noted
that he v.Duld be accorrpanied by Gieseler and ~han on his trip
to Juneau to lobby the House for affirnative action on the bill.
XIII.
C<:XJNCIL DISCUSSION:
DUNHAM suggested that the Second Avenue flooding
problem could be the result of a change in the weather in the
last twenty years. She also inquired about city regulations
concerning the destruction of wild animals within the city
limits. Dunham stated that she had heard about a recent inci-
dent involving the attempted destruction of a land otter.
Schaefermeyer stated that the otter is a protected species and
added that the city has a regulation prohibiting the firing of a
firearm within the city. Gieseler added that Fish and Garre did
not allow destruction of wild animals such as otters, but v.Duld
nove them to another area if they becarre a nuisance.
MEEHAN thanked the Council for its support of Resolu-
tion No. 88-015, urging full funding of the Trail Lakes
( CSE1547Bl )
38
PAGE 38
REGULAR MEETING - FEBRUARY 8, 1988
VOLUME 23
Hatchery. He stated that, if taken out of state control, the
local sport fishery could be severely irrpacted.
NOLL cormended the v.Drk which is being done by city
lobbyist Kent Dawson in Juneau.
GIESELER asked the city administration to take a hard
look at the comrents made by Dr. Hansen earlier in the evening
concerning safety problems at lDwell Canyon 'I\1nnel. He also
thanked Judi Andrijanoff and comrended her for her progressive
leadership of the Parks and Recreation Departrrent. Gieseler
also thanked Cablevision for bringing the Council rreetings to
the public.
XIV. CITIZENS' DISCUSSION:
JIM PRUITT, Maple Street, asked the city to review the
electric tariff. He stated that he did not use enough electric-
ity to qualify for the "high user" rate and he felt he was
paying rrore than he should for electrical power.
JOHN GLASSER, 405 Fourth Avenue, stated that Ordinance
No. 601 was a "slap in the face" to those who carre to Seward
from Anchorage after the end of the sumrer season. He stated
that rrost new canping vehicles are "Alaskanized" and are self
contained, and these visitors should be allowed to carrp on the
waterfront.
XV. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS:
SCHAEFERMEYER stated that the city was in the process
of reviewing the tariff and anticipated bringing a resolution
arrending it to the Council at its next rreeting.
O'BRIEN noted that Ordinance No. 601 was rrerely
"introduced" and would be scheduled for public hearing at the
next rreeting.
GIESELER scheduled a work session 'fuesday, February
16, beginning at 7: 00 p.m., to discuss the proposed ethics
ordinance which was being prepared by the city's attorneys.
XVI. ADJOURNMENT:
The rreeting was adjourned at 9: 10 p.m.
t#7~
May
"",
( CSE 154182 )
I
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PAGE 39
REGULAR MEETING - FEBRUARY 22, 1988
VOIDME 23
1. CALL TO ORDER:
The February 22,
City Council was called to
Gieseler.
1988, regular rreeting of the Seward
order at 7:30 p.m. by Mayor Harry E.
II. OPENING CEREMJNY:
Counci1rrember Dunham led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, Jlbll, O'Brien and SimJ.tis
(Councilrrember ~han was excused.)
Present also: City Manager Schaeferrreyer, Finance Di-
rector Peirson, Engineering & Utili ties
Manager Diener, Administrative Assis-
tant Martin, Port Director Gates, Parks
& Recreation Director Yanez, Police
Chief Bencardino, Fire Chief Gage and
City Clerk Murphy
IV.
APPROVAL OF MINUTES:
Not available
V. APPROVAL OF CONSENT CALENDAR & RffiULAR MEETING AGENDA:
Gieseler requested the addition of the following items
to the regular rreeting agenda: 1) Item No. VIII (A) - Presenta-
tion by SCHARE representative John Burckhardt; and 2) Item No.
XI (B) - Appointrrent of city representative to the KPB/EDD.
HILTON MJVED TO APPROVE THE RffiULAR MEETING AGENDA AS
AMENDED AND THE CONSENT CALENDAR AS PRESENTED; THE MJI'ION WAS
SEr:ONDED BY SIMUrIS AND CARRIED UNANIM)USLY. 'l'he following
actions were taken:
1. Resolution No. 88-022, authorizing the applica-
tion for patent for the remainder of the publicly owned tide-
lands wi thin the corporate limits of the city, was approved and
filed;
2. Resolution JIb. 88-023, nominating certain parcels
of land for selection pursuant to the Municipal Land Entitlerrent
Act, was approved and filed;
39
LAND SELECTIONS/
RESO: (Tidelands
patents requested
LAND SELECTION/
RESO: (Murr. Land
Entltmt. Act)
3. February 10, 1988, invoice from Wohlfarth, Flint C. ATTY:
& Gruening for legal services rendered in January totalling
$934.23 was approved for payrrent and filed;
(CSE154783 )
40
C.ATTY:
ACCTS.PAYABLE:
ABCB:
NORTH HARBOR SUB:
(Sublease)
CIT.DISCUSSION:
(J.Burckhardt)
CAMPGROUNDS/ORD:
(Action post-
poned)
PAGE 40
REGULAR MEETING - FEBRUARY 22, 1988
VOLUME 23
4. January 1988 invoice from Baily & Mason for legal
services rendered in January totalling $3,064.42 was approved
for payrrent and filed;
5. February 11, 1988, Finance Departrrent's list of
accounts payable totalling $537,583.49 was approved for payrrent
and filed;
6. ABCB notification of application for renewal of
liquor licenses as follows was filed without objection:
NEW SEWARD HOTEL BAR & GRILL
THORN'S SHavcASE WUN3E
DREAMLAND rovI..; and
7. February 18, 1988, rrerrorandum from Administrative
Assistant Martin regarding sublease of RE-043 (Jlbrth Harbor
Sub.) from Jarres Pruitt to Harbor Gateway, Inc., was approved
and filed.
VI. BOROUGH ASSEMBLY REPORI':
Kenai peninsula Borough Assembly President Jonathan
Sewall was not present and no report was given.
VII. PUBLIC HEARINGS:
None
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
A. JOHN BURCKHARD!' read aloud a letter fran SCHARE
objecting to the Prison Task Force decision to contract catering
of the prison dedication reception with an Anchorage establish-
rrent rather than bidding and contracting locally. Dunham noted
that Mr. Burckhardt's information was incorrect, stating that
catering for this function would not be perforrred by an
Anchorage firm.
IX. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactrrent:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed ordinance
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AU\SKA, AMENDING SECTION 21-38 OF
( CSE 1.54184 1
I
I
I
41.
PAGE 41
REGUlAR MEETING - FEBRUARY 22, 1988
VOWME 23
THE CITY CODE REGUlATIN3 THE OPENING AND
CLOSING OF PUBLIC CAMPGROUNDS.
Notice of public hearing as posted and published by
law was noted and the public hearing was opened.
HERMAN LElRER, Dairy Hill, spoke in opposition to the
proposed ordinance. He stated that many people corre to Seward
in the Spring to ready their boats for the sumrer season and
live in their campers while here. He added that they should be
allowed to carrp in public campgrounds.
BRUCE SIEMINSKI, Jesse Lee & Benson, spoke in oppo-
sition to the proposed ordinance.
woo VAN DRIESCHE, Exit Glacier Road, spoke lI1 oppo-
sition to winter closing of public campgrounds.
JOHN GLASSER, 405 Fourth Avenue, stated that the city
had not taken into account the effect winter closure of
campgrounds v.Duld have on small downtown businesses. He urged
the Council to defeat the ordinance.
DARRYL ROGERS, 330 Second Avenue, spoke in opposition
to the proposed ordinance.
LOU NAMIN, Mile 1.5, Seward Highway, also spoke 111
opposition to the ordinance.
WILLARD DUNHAM, Diarrond & Alder Streets, Forest Acres,
was opposed to the ordinance. He stated that the fishing
industry relies on a "backpacking v.Drk force" which arrives in
town prior to the proposed opening of public campgrounds. He
stated that these people spend rroney in town and should be
encouraged to stay here.
CARL NORMAN, Bear Lake Road, was also opposed to the
proposed ordinance.
SIMUl'IS M)VED TO ENACT ORDINANCE NO. 601; THE MJTleN
WAS SEr:CNDED BY HILTON.
Schaeferrreyer suggested that Council arrend the ordi-
nance by replacing the phrase "special events" with the word
"canping", thus giving the Council the neans to open any specif-
ic area it wished during the off-season. He noted that Yanez
had developed a canping permit program for administration of
those areas opened by resolution of Council. He added that if
Council wished to arrend the ordinance in this manner, he v.Duld
carre back to the Council at the next rreeting with a resolution
designating such an area on the waterfront. He noted that, in
this way, the Council could satisfy the concerns of the public
while giving the administration the authority to effectively
manage the city's public canping facilities.
( CSf 154185 )
42
RISK MANAGEMENT/
RESO: (AML/ JIA
Agrmt. apprvd)
PAGE 42
REGULAR MEETING - FEBRUARY 22, 1988
VOIlJME 23
Gieseler stated that he was still concerned about the
liability to the city should campgrounds be open to the public
in the winter. SimJ.tis stated that Schaeferrreyer' s suggestion
was a good one and rec:orrrrended arrending the ordinance as re-
quested by the city manager. She added that the campground
managerrent contract dates should be extended when that contract
was next put out to bid. In response to a question from
Gieseler, Yanez stated that all Municipality of Anchorage public
campgrounds are closed for the winter rronths. Schaeferrreyer
stated that, should the Council decide to open the waterfront
area to CaIlping, a small fee VoDuld be charged canpers to defray
addi tional administrative and other costs.
O'Brien stated that the business conmmity did not
support the ordinance and the liability issue could be addressed
in sorre way other than closing the campgrounds. He stated that
the city is beginning to "legislate away small, basic Alrerican
rights". He added that he would vote against the ordinance.
SIMlJI'IS MJVED TO AMEND THE ORDINANCE BY SUBSTITUTING
THE WORD "CAMPING" FOR THE PHRASE "SPEr:IAL ElJENI'S"; THE mrreN
WAS SECONDED BY HILTON AND CARRIED WITH FIVE "YES" VarES AND
0' BRIEN VarING "NO".
NOLL MOVED TO POSTPONE ACI'ION eN THE PROPOSED ORDI-
NANCE UNTIL MARCH 14, 1988; THE MJI'ION WAS S~ED BY HILTON
AND CARRIED UNANIMJUSLY.
C. Resolutions:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOIDrION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE EXECUTION
OF A COOPERATIVE PARrICIPATION AGREEMENT
AMONG ALASKA MUNICIPALITIES AND SCHOOL
DISTRICTS CREATING THE ALASKA MUNICIPAL
LEAGUE JOINT INSURANCE ARRANGEMENT.
HILTON MJVED TO APPROVE RESOLUTION NO. 88-016; THE
MJI'ION WAS SEr:CNDED BY DUNHAM.
Hilton noted that the agreerrent states that the Board
may cancel coverage for a participating municipality but does
not allow for appeal of such a decision. Peirson stated that
the intent is to run the insurance trust as a business, with
authority to cancel coverage for a participant under certain
extraordinary situations. For instance, should a participating
municipality begin to experience significant losses, the JIA
VoDuld make certain recomrendations to reduce the risk to the
participant and the JIA. If these recamendations were ignored,
( CSE154786 )
I
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PAGE 43
RffiULAR MEETING - FEBRUARY 22, 1988
VOLUME 23
that municipality would be excluded from coverage in order to
prevent catastrophic losses to the group.
Peirson also explained that the cost to the city might
be rrore than conventional coverage the first year, but, in the
long run, the city should save a significant aITOunt of rroney
over a 7-10 year period. He stated that the city would receive
a premium quote by April 1, which would tie in nicely with the
city's budget process. Peirson added that the city would then
have 30 days to respond and would be required to make a 3-year
cornmitrrent to the program if it wishes to participate.
THE QUESTION WAS CALLED AND RESOLUTION NO. 88-016 WAS
APPRO\7ED BY UNANIMJUS VOTE OF THE COUOCIL.
2.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF 'IHE CITY
OF SEWARD, ALASKA, ACCEPTING DEFERRAL TO THE
CITY FOR SAFETY INSPECTIONS AND ENFORCEMENT
ACTIVITIES.
SIMlJI'IS IDVED TO APPROVE RESOLUTION NO. 88-017; THE
MJI'IeN WAS SEr:ONDED BY HILTON.
In resI.XJnse to a question from Hilton, Gage stated
that approval of this resolution VoDuld not result in the need
for additional Fire Department staff. Schaeferrreyer added that
the city VoDuld be assuming sarre liability, but a greater liabil-
ity issue could arise from failure to adhere to the city's own
rules requiring a commercial inspection program.
THE QUESTION WAS CALLED AND THE RESOLUTleN WAS AP-
PROVED WITH FIVE "YES" VOTES AND O'BRIEN VarING "NO".
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTleN OF THE CITY COUNCIL OF 'IHE CITY
OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE
OF 'IWO COMPAQ PERSONAL COMPUTERS AND WAIVING
FORMAL BID PROCEDURES.
O'BRIEN IDVED TO APPROVE RESOLUTION NO. 88-018; THE
MJI'ION WAS SEOJNDED BY SIMUTIS AND CARRIED UNANIM:XJSLY.
4.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
43
FIRE DF.PT/RESO:
(Inspection sere
deferred to city)
PURCHASING/CITY
EQUIPMT/RESO:
(Purchase of 2
computers)
( CSE 154187 ]
44
FIRE DEPT/RESO:
(Approp. funds
to replace Fire
Hall roof)
ELEC.DEPT/RESO:
(Tariff amdmt.
for small gen.
serv. users)
PAGE 44
REGULAR MEETING - FEBRUARY 22, 1988
VOLUME 23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING $31,900
FR(M THE GENERAL FUND FUND BALANCE TO THE
FIRE DEPARIMENT FUND FOR REPLACEMENT OF THE
SEWARD FIRE HALL ROOF.
HILTCN MJVED TO APPROVE RESOLUTleN NO. 88-019; THE
MJI'ION WAS SEr:ONDED BY SIMlJTIS.
In response to a question from O'Brien, Gage explained
that the Fire Hall roof was constructed in 1979 at a cost of
$40,000. Four and one half years ago, the city spent $2,500 -
$3,000 repairing the roof and spent an additional $3,000 just
two years ago. He added that the Fire Hall houses sorre
expensive equiprrent which could be damaged or ruined by leaks in
the roof. In addition, constant leaking VoDuld eventually cause
structural damage to the building. Gieseler asked about the
possibility of putting a second story on the Fire Hall to
accorrrrodate sarre city offices. Diener explained that the cost
of a second story would easily total $250,000, noting that a
public building would require an elevator, handicap access and
handicap toilet facilities. O'Brien stated that he would like
to see the city bid the new roof with a request for a 20-year
guarantee as opposed to a 10-year guarantee.
THE QUESTION WAS CALLED AND THE RESOLUTleN WAS AP-
PROVED UNANIM:XJSLY.
5.
public, Gieseler
entitled:
Copies having been made available to the
noted by ti tIe only a proposed resolution
A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ADOPTING AN OPTIONAL RATE
STRUCIURE FOR THE SMALL GENERAL SERVICE.
SIMUTIS MJVED TO APPROVE RESOLUTION NO. 88-020; THE
MJTleN WAS SECCNDED BY HILTON.
Diener explained that the city's current tariff allows
for flat rate energy billing only for small general service
custarrers. He stated that it could be advantageous for both the
custarrer and the city to allow a demand rate for small general
service users. He noted that, it VoDuld appear that the city
VoDuld lose sorre rroney with this approach, but the city VoDuld
actually benefit in its rate from Chugach Electric.
THE QUESTleN WAS CALLED AND THE RESOLUTleN WAS AP-
PROVED UNANIMXJSLY.
6.
public, Gieseler
entitled:
Copies having been made available to the
noted by ti tIe only a proposed resolution
( CSE154188 1
I
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PAGE 45
REGULAR MEETING - FEBRUARY 22, 1988
VOLUME 23
A RESOLUTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, COMMITTING TO SUPPORT' A
KENAI PENINSUIA AREA WIDE CUSTOMS PORI' OF
ENTRY OFFICE.
SIMUTIS MJVED TO APpR(NE RESOLUTION NO. 88-021; THE
MJI'ION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
RECESS: The rreeting was recessed at 9:10 p.m. & reconvened at
9:24 p.m.
x. UNFINISHED BUSINESS:
A. Murphy noted that action on this item had been
continued fran the October 26, 1987, rreeting. She stated that
the following notion was now on the floor for discussion and
action:
"HILTON IDVED TO AUTHORIZE THE ADMINISTRATION TO
PROCEED WITH LEASE NEXYI'IATIONS WITH THE HARBOR DINNER
CLUB FOR LEASE OF PROPERTY WITHIN THE MARINE INDUS-
TRIAL CENTER; THE MJI'ION WAS SECONDED BY NOLL.'
Schaeferrreyer stated that the administration's rec-
amendation remained unchanged. He stated that the city is
actively pursuing an agreerrent with the Navy for use of the
property requested by Mr. Norman, and approval of a lease with
him in this area could adversely affect the Navy negotiations.
In addition, a restaurant in this area would be in conflict with
the Land Use Plan approved by the City Council. O'Brien stated
that the city was taking an "obstructionist" view of this issue
and should work with Norman to find a spot in the area accept-
able to both. Schaeferrreyer responded that the city is prepared
to discuss alternate sites with Norman if he VoDuld cane forward
with a request for such a discussion. He added that the city's
economic developrrent strategies had been successful in the past
because the city had planned and had stuck with its planning
objectives. He stated that it VoDuld be short-sighted to nove
forward with this proposal at this tirre. Hilton agreed that the
spot chosen by Norman was not appropriate for a restaurant and
stated that it was premature to lease land in the industrial
area for restaurant construction. Dunham stated that a restau-
rant is needed "over there", but not necessarily in the indus-
trial area. Gieseler noted that the property requested by
Norman was prirre real estated located in the "middle of the
hub".
CARL NORMAN, Bear Lake Road, was allowed to address
the Council concerning his proposal. He stated that he was
interested in providing a service which was needed in the area,
adding that his proposed restaurant VoDuld be oriented towards
breakfast and lunch service. He stated that, if approved, he
planned to start construction as soon as financing could be
approved and weather permitted.
45
IND.DEV/RESO:
(In support of
Kenai Pen. area-
wide Customs Port
of Entry Office)
FOURTH OF JULY:
(C.Norman lease
proposal - city
instructed to
negotiate for
lease of an un-
specified parcel
of land in 4th
of July Creek
Industrial Area)
(CSE154789 )
46
PLANNING COMM:
(K.Lindsey &
D.Sutherland re-
appointed)
KPB/EDD: (Carole
--,Jaffa appointed)
PAGE 46
REGULAR MEETING - FEBRUARY 22, 1988
VOLUME 23
SimJ.tis asked if Jlbrman had attempted to obtain land
frcrn a private source. He replied that a privately-owned parcel
small enough to rreet his needs is not available. Norman also
stated that he did not plan to serve alcohol at this establish-
rrent.
Schaeferrreyer stated that, if the Council agreed that
the administration should negotiate a lease with Mr. Norman, the
notion should be arrended to reflect the correct site location.
He explained that the parcel in question was not a part of the
Marine Industrial Center, but a part of the Fourth of July Creek
Industrial Area.
HILTON AND NOLL AGREED TO ACCEPT SCHAEFERMEYER'S
REX:XlMMENDATION AS A FRIENDLY AMENDMENT, CHANGING THE SITE
r.a.:ATION TO FOORI'H OF JULY CREEK INDUSTRIAL AREA. THE QUESTION
WAS CALLED AND THE MJI'IeN TO INSTRUCT THE ADMINISTRATICN TO
PROCEED WITH LEASE NEGOl'IATIONS WITH THE HARBOR DINNER CLUB
CARRIED BY UNANIMJUS VOTE OF COUNCIL.
XI. NEW BUSINESS:
A. GIESELER, WITH CONSENT OF COUNCIL, REAPPOINTED
KURl' LINDSEY AND OONAID SUTHERLAND TO THE SEWARD ADVISORY
PlANNING AND ZONING COMMISSION FOR TERMS TO EXPIRE IN FEBRUARY,
1991.
B. GIESELER, WITH CONSENT OF COUNCIL, APPOINTED
CAROLE JAFFA AS THE CITY'S REPRESENTATIVE TO THE KENAI PENINSUIA
BOROUGH Er:ONOMIC DEVELOPMENT DISTRICT BOARD.
XII. CITY MANAGER REPORTS:
SCHAEFERMEYER stated that he had distributed a trip
report to Council concerning his recent trip to Juneau with
Gieseler and ~ehan to lobby for passage of the Railroad bill by
the House. He also noted that the Council had been provided a
rrerrorandum concerning the panel which would review the Senior /
Ccmnunity Center/Museum proposal. Schaeferrreyer also stated
that he had received from the attorney proposed agreerrents
between the city and Alliance Bank relative to Gateway Ventures.
Council agreed to rreet in a VoDrk session on March 7, 1988, in
order to review the documents.
XIII.
COUNCIL DISCUSSION:
NOLL stated that the Navy Task Force had rreet with
Navy representatives at Elrrendorf Air Force Base and had re-
ceived very neutral com:rents from Navy officials. He recormend-
ed that the Mayor send a letter to Vice 1\dmiral Hernandez urging
the Navy to seriously consider horreporting in Seward.
HILTON asked the Clerk to prepare an ordinance for
introduction at the next rreeting changing the agenda format by
making Agenda Item V "Approval of Regular ~ting Agenda";
Agenda Item VII "Citizens' Discussion of hJenda Items not
( CSE154190 )
I
I
I
47
PAGE 47
RffiULAR MEETING - FEBRUARY 22, 1988
VOllJME 23
Scheduled for Public Hearing"; and Agenda Item VIII "Approval of
Consent Calendar". In reSI.XJnse to a corment fran Gieseler,
Hilton stated that he did not object to setting a tirre limit for
Agenda Item No. "VII". Hilton also noted a letter from AVTEC to
the state requesting that all state-requested lands between Nash
Road and Bear Lake be designated "State Educational Forest".
Martin stated that he VoDuld write to the state reasserting the
city's desire to maintain a rail corridor through that
particular parcel of land.
0' BRIEN asked the administration to inform the Charrber
of Ccmrerce that the Council had conmitted $30,000 for the
Custans Port of Entry.
GIESELER stated that the Council needed to rreet in a
VoDrk session to review city manager applications. He instructed
the Clerk to schedule the March 7 work session to begin at 6:00
p.m. so that there VoDuld be sufficient tirre following the review
of the Gateway docurrents to conduct the review of applications.
He asked Counci1rrembers to be prepared to narre their top choices
for the position so that a "short list" could be prepared at the
VoDrk session.
XIV. CITIZENS' DISCUSSION:
BRUCE SIEMINSKI, Jesse Lee Heights Subdivision,
addressed the Council concerning various city planning needs and
questioned the Council's oojection to a liquor license for a
restaurant in the industrial area.
BOB VALDATTA, 528 Fifth Avenue, stated that the city
should develop a plan for the Marine Industrial Center. He also
stated that a restaurant was an appropriate use of property in
the industrial area.
XV. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS:
DUNHAM stated that she VoDuld object to the issuance of
a liquor license in the industrial area.
XVI. ADJOURNMENI':
The rreeting was adjourned at 10: 25 p.m.
~t:~~.~
ffar Giese er
Mayo
.' .
( CSE154791 )
48
PAGE 48
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
I. CALL TO ORDER:
The March 14, 1988, regular rreeting of the Seward City
Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Counci1rrember ~ehan led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmernbers Dun-
ham, Hilton, ~ehan, Jlbll, O'Brien and
Sirrutis
Present also: City Manager Schaeferrreyer, City Attor-
ney Arvidson, Engineering & Utilities
Manager Diener, Parks & Recreation
Director Yanez, Port Marketing Director
Gates, Administrative Assistant Martin
and City Clerk Murphy
IV. APproVAL OF MINUTES:
HILTON IDVED TO APPROVE THE FEBRUARY 8 AND FEBRUARY
22, 1988, MINUTES AS WRITTEN; THE MJI'IeN WAS SECClIDED BY SlMJTIS
AND CARRIED UNANIMJUSLY.
V. APPROVAL OF CONSENI' CALENDAR & REGULAR MEETING AGENDA:
A. MEEHAN IDVED TO SUSPEND THE RULES OF ORDER AND
PIACE PROPOSED RESOLUTleN NO. 88-006 eN THE REGULAR MEETING
AGENDA AS AGENDA ITEM NO. IX(C) (3) FOR OJNSIDERATleN AT THIS
MEETING; THE IDTION WAS SECONDED BY SIMUTIS AND CARRIED WITH SIX
"YES" VOTES AND O'BRIEN VarING "NO".
Schaeferrreyer requested the addition of a new Consent
Calendar Item JIb. 25 - Proposed sublease of Boardwalk Site JIb. 7
from Ray and Leslie SimJ.tis to Janaska Corp.
O'Brien requested the transfer of Consent Calendar
Items JIb. 1 and 10 from the Consent Calendar to the Regular
~ting Agenda as Items No. IX(C) (4) and XI (C) respectively.
Gieseler asked to be added as co-sponsor of proposed
Ordinance JIb. 602 (agenda format change). He also noted that he
VoDuld allow Real Estate Agents John Gillespie and DarIa 0' Connor
to address the Council irmediately following Mayor Gilman 's
presentation. (Agenda Item No. VI (A))
Murphy requested that the "City Manager's Recamenda-
tion" under Consent Calendar Item No. 24 be changed to read
(CSE154192 )
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PAGE 49
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
"Authorize the administration to proceed with negotiations for
the acquisition of the Old Post Office building for the Senior/
Corrmmi ty Center/Museum".
HILTON IDVED TO APPROVE THE REGULAR MEETING AGENDA AND
THE CONSENT CALENDAR AS AMENDED; THE MJI'IeN WAS SEr:ONDED BY
SIMUTIS AND CARRIED UNANIMJUSLY. The following actions were
taken :
1. MJved to Regular ~ting Agenda;
2. Resolution JIb. 88-025, approving receipt of a
state grant for construction of the Seward Marine Industrial
Center Utilities Extension, was approved and filed;
3. Resolution No. 88-026, approving the receipt of a
state grant for the Seward Senior/Conmunity Center/Museum, was
approved and filed;
4. Resolution No. 88-027, approving receipt of a
state grant for Carrelot Subdivision Electrification, was ap-
proved and filed;
5. Resolution JIb. 88-028, authorizing the purchase
of a pickup truck for the Harbor Departrrent without full uti-
lization of city bid procedures, was approved and filed;
6.
of two waste
and filed;
Resolution JIb. 88-029, authorizing the purchase
oil burners and appropriating funds, was approved
7. Resolution No. 88-032, authorizing the paving of
certain streets to be paid by the Local Service Roads & Trails
Fund, was approved and filed;
8. Resolution JIb. 88-033, awarding a contract for
repair of Water Well JIb. 1 without full utilization of city bid
procedures, was approved and filed;
9. Resolution No. 88-034, approving a Mutual Aid
Agreement between Seward Volunteer Ambulance Corps and Bear
Creek Fire Service Area, and accompanying FY 1988 cperations
Plan, was approved and filed;
10. MJved to Regular ~ting Agenda;
11. Invoice from HTGP&B for legal services rendered
in August 1987 totalling $24,298.55 was approved for payrrent and
filed;
12. March 8, 1988, Finance Departrrent' s list of
Accounts Payable totalling $628,051.62 was approved for payrrent
and filed;
49
GRANTS/SMIC UTIL/
RESO:
GRANTS/SENIOR CNTR
RESO:
GRANTS/ELEC DPT/
RESO:
PURCHASING/RESO:
PURCHASING/RESO:
STREETS/RESO:
WATER DEPT/RESO:
SVAC/RESO:
C.ATTY:
ACCTS. PAYABLE:
( CSE154193 )
50
C.COUNCIL:
MARINA SUB/RE-
Ou>'3:
LAND SELECTIONS:
PRISON: (Budget)
ABCB:
ABCB:
GAMES OF CHANCE
& SKILL:
cON-;1.07:
CON-:.z.~ \:
PAGE 50
REGUIAR MEETING - MARCH 14, 1988
VOLUME 23
13. March 10, 1988, rrerrorandum form Murphy reconrrend-
ing cancellation of the March 28, 1988, rreeting was approved and
filed;
14. March 9, 1988, rrerrorandum from Martin recatllTEIld-
ing approval of assignrrent of lease of the North 1/2 of lot 5,
Block 1, Marina Subdivision, from Gerald lorz to National Bank
of Alaska for security purposes only was approved and filed;
15. March 8, 1988, rrerrorandum from Martin recatllTEIld-
ing that the Council request that the South Fork Snow River
Selection Area be retained for natural resource managerrent
rather than the proposed use of corrmunity expansion was approved
and filed;
16. March 9, 1988, rrerrorandum from Diener reccmrend-
ing that Council approve the revised Spring Creek Correctional
Center Project budget was approved and filed;
17. March 10, 1988, letter fran Murphy requesting a
30-day extension for protesting renewal of the following liquor
licenses was noted and the clerk was instructed to issue a
letter of nonobjection to the renewals once sales taxes are
current:
PIONEER BAR
TONY'S BAR
TONY'S LIQUOR STORE
YUKON LIQUOR STORE;
18. ABCB notification of applications for renewal of
the following liquor licenses was noted and the clerk was
instructed to issue letters of nonobjection to renewal of sarre:
THE WHEELHOUSE
AMERICAN LEGION POST NO.5;
19. Application for permit for garres of chance and
skill as filed by SACRED HEARl' PARISH was filed without ob-
jection;
20. Change Order No. 6 to the Zubeck contract for
Spring Creek Correctional Center water utility construction to
provide all labor, equiprrent and materials to install fire
booster purrp in SCCC Building JIb. 5 warehouse and associated
water lines, valves, manholes, etc.; and to install an addition-
al 12" butterfly valve on the water utility's main 12" line and
a manhole with associated appurtenances for autanatic sampling
at the Wastewater Treatrrent Utility, for an increased cost of
$86,000, was noted for information and filed;
21. Change Order JIb. 1 to the SWalling contract for
supplying material for the SMIC Jlbrth Dock to incorporate sheet
( C S E 154794 ]
I
I
I
51
PAG? 51
RffiULAR MEETING - MARCH 14, 1988
VOlliME 23
pile the city has on hand, decreasing the contract arrount by
$43,112, was noted for information and filed;
22. March 9, 1988, rrerrorandum from Peirson concerning
1988 real property assessed values was noted for information and
filed;
23. March
attached report fran
Lowell Canyon Tunnel
information and filed;
3, 1988, rrerrorandum from Diener with
the Corps of Engineers concerning the
Rehabilitation Project was noted for
24. March 10, 1988, rrerrorandum from Diener concerning SENIOR CENTER:
the proposal to provide a new Senior Center/Museum was noted and
the administration was authorized to proceed with negotiations
for acquisition of the old Post Office building; and
25. March 14, 1988, rrerrorandum from Martin recorrmend- BOARDWALK/RE-(J(;,O
ing approval of the sublease of Boardwalk Site JIb. 7 fran Ray
and Leslie Sirrutis to Janaska Corporation was approved and
filed.
VI. BOROUGH ASSEMBLY REPORT:
A. Kenai Peninsula Borough President Jonathan Sewall
gave a short presentation concerning action which would be
considered at the next Borough Assembly rreeting.
DONAID E. GIIMAN, Mayor of the Kenai Peninsula Bor-
ough, introduced Borough Assessor Jack Kline. He also displayed
several prepared slides showing a corrparative view of the
changing economic climate throughout the Borough over the past
2-3 years. Gilman stated that both real and retail sales had
declined significantly on the western side of the Peninsula. In
addition, real property values have fallen 15-20% in Harrer,
Kenai and Soldotna over the past year or two. (Gilman noted
that both retail and real sales have been relatively stable in
the Seward area, adding that property values have not changed
significantly in the Eastern Borough.) This decline in assessed
values (following a recent re-assessrrent of western peninsula
properties) will rrean a corresponding decline in tax revenues to
the Borough. This decline in revenues, coupled with an in-
creased School District budget to accamodate the opening of tv.D
new schools and a negotiated salary adjustrrent for teachers,
will require a subsidy from the Borough's fund balance. Gilman
stated that he planned to use approximately $20 Million in
excess Borough funds (Fund Balance) to help balance the Borough
budget over the next couple of years. Once that has been
depleted (probably in 1990), the Borough will be forced to raise
property taxes in order to maintain a "status quo" budget and
level of services.
Kline stated that notices of assessrrent would be
mailed on March 31. A representative of the Borough Assessor's
(CSE154795 ]
52
CIT.DISCUSSION:
PAGE 52
REGULAR MEETING - MARQf 14, 1988
VOLUME 23
Office VoDuld be in Seward April 18-22 to answer any questions
residents might have concerning their assessments. He indicated
that any appeal of assessrrent rrust be filed (postmarked) with
the Borough by April 30.
In response to a question from Hilton, Gilman stated
that there had been sorre discussion serveral years ago concern-
ing raising or eliminating the cap on Borough sales tax; howev-
er, rrost of the testirrony taken had been against this concept.
JOHN GILLESPIE, 405 Fifth Avenue, stated that, while
Seward's future may seem bright, 1987 was not a very good year
for the real estate market in Seward. He noted the number of
foreclosures listed on the Borough-wide tax foreclosure list and
the HUD foreclosure of two four-plexes in Gateway Subdivision.
DARIA O'CONNOR, 521 Sixth Avenue, stated that she had
not seen a substantial decline in the single family market in
Seward. She added that the rrulti-family market had been over-
built in anticipation of the opening of the prison, but this
market should turn around once people begin moving into the
community to take the newly created jobs "across the Bay".
Gieseler stated that he felt the people of Seward were
being penalized and forced to pay a disproportionate share of
the cost of two new schools on the "other side" of the peninsu-
la. He stated that these schools were not needed now that
school populations in the Kenai/Soldotna area had declined, but
were being opened at the expense of the citizens of Seward who
desperately needed a new school but were unable to get one. He
thanked Gilman for taking the tirre to carre to Seward to address
the Borough's financial picture.
RECESS: The rreeting was recessed at 8:55 p.m. and reconvened at
9:00 p.m.
VII. PUBLIC HEARINGS:
A. Cancelled
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
A. DERENTY TABIOS, representing Jlbrth Pacific Rim
Housing Authority, introduced ARNE HATCH, Seward resident and
one of five Housing Authority Corrroissioners. He distributed
copies of a proI.XJsed resolution and cooperative agreerrent which
he asked the Council to consider prior to the end of March. He
noted that Seward is the only corrrnunity in the Borough without a
Mutual Help Harre ONnership Program. He stated that the Council
had approved a similar agreerrent in July, but the 1987 project
had not been funded. Tabios noted that this agreement, if
approved, VoDuld authorize an application for funding to con-
struct approximately 25-30 housing units, adding that NPRHA now
l CSf 154196 )
I
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53
PAGE 53
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
has about 40 applications from qualified residents of the area
seeking participation in this program.
In response to a question from Gieseler, Tabios stated
that five sites have been considered - three within the city and
tv.D outside the city limits. The areas inside the city include
the bluff overlooking the lagoon, Gateway Subdivision and
Chugach Natives Corporation property. ~han asked if existing
single family houses which are currently on the market could be
purchased under this program. Tabios responded that, while this
is possible, it is usually difficult to find an existing horre
which can be purchased and brought to BUD standards wi thin the
funds available. Tabios noted that total cost of each house,
including property, cannot exceed $120,000.
O'Brien questioned the need for additional housing
units in Seward, noting that there are currently 75-100 units
for sale in the corrmunity. Tabios stated that the target group
for this project were those who VoDuld not qualify for conven-
tional financing; thus, the project would not compete with the
private sector market.
Hatch stated that the 40+ applications on file show a
need for this type of housing in Seward.
Schaeferrreyer stated that he was not prepared to make
a recormendation to the Council at this tirre. He noted that
when this project was before the Council last surrmer, the
administration had revised the agreement to make it acceptable
to the city. He added that he was not convinced that the city
is ready for this project at this tirre. Hatch stated that, if
approved, NPRHA would be working under a 2-year tirre frarre
before actual occupancy VoDuld be possible. He added that the
housing market should be a "different story" in Seward in
another tv.D years.
Dunham stated that there was a need for a housing
project of this type, noting that for the last 15 years, Seward
has had the lowest per capita incarre in the state. She stated
that the opening of the prison in May VoDuld result in a boom in
the rental market since those noving from the Anchorage area
VoDuld probably own horres there that they could not sell.
Gieseler instructed the clerk to schedule a public
hearing prior to the end of March for consideration of the
resolution and cooperative agreement endorsed by NPRHA.
B. LARRY JOHNSON, 321 Second Avenue, stated that he CITI ZENS' DISC:
was appearing on behalf of Seward Enhancerrent Association at the
request of Jim Parrish. He stated that SEA had voted in favor
of asking the city to retain Hyett-Palrra. Johnson noted that
part of the scope of VoDrk proposed by Hyett-Palrra included
assistance in qualifying for grants from state and federal
agencies to help finance the enhancerrent project. He added that
( CSE154797 )
54
PAGE 54
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
nost of the noney to be spent if the project proceeded VoDuld
carre from private, state and federal sources. He urged the
Council to approve Resolution No. 88-006.
IX. ORDINANCES AND RESOLUTleNS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by ti tIe only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY CDUNCIL OF 'IRE CITY
OF SEWARD, ALASKA, AMENDING THE CITY COUNCIL
AGENDA FORMAT.
HILTON IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 602;
THE MJI'ICN WAS SEr:CNDED BY DUNHAM AND CARRIED UNANIM:XJSLY.
Public hearing was scheduled for April 11, 1988.
B. Ordinances for Public Hearing and Enactment:
CAMPGROUNDS/ORD:
1. Copies having been made available to the
public, Gieseler noted by ti tIe only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY CDUNCIL OF 'IRE CITY
OF SEWARD, ALASKA, AMENDING SEr:TION 21-38 OF
THE CITY CDDE REGUIATING THE OPENING AND
CLOSING OF PUBLIC CAMPGROUNDS.
Murphy noted that there was a notion on the floor to
approve the proposed ordinance as amended at the last rreeting.
THE QUESTleN WAS CALLED AND ORDINANCE NO. 601 WAS
ENACTED AS AMENDED BY UNANIMJUS VOI'E OF THE COUNCIL.
C. Resolutions:
CAMPGROUNDS / RESO : 1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY
OF SE.WARD, ALASKA, DESIGNATING WINTER
CAMPGROUND AREAS AND SETTING FEES.
HILTON' MJ\lED TO APPROVE RESOLUTleN NO. 88-030; THE
MJI'IeN WAS SEr:ONQED BY NOLL AND CARRIED UNANIMJUSLY.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
( C SE 154198 1
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PAGE 55
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
A RESOLUTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FOR
THE PURPOSE OF REFUNDING EPA GRANT FUNDS.
MEEHAN M)VED TO APPROVE RESOLUTleN NO. 88-031; THE
MJI'ION WAS SECCNDED BY DUNHAM.
In response to a question from O'Brien, Schaeferrreyer
stated that the state funds noted in the resolution VoDuld not be
released to the city until the conclusion of the EPA audit.
THE QUESTION WAS CALLED AND THE MJI'IeN CARRIED UNANI-
MJUSLY.
3.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FROM
THE GENERAL FUND FUND BAIANCE TO THE COMMU-
NITY DEVEIDPMENT BUDGET FOR THE PURPOSE OF
IMPLEMENTING AND MJNlTORING THE BUSINESS
ENHANCEMENI' STRATffiY PLAN.
Murphy noted that a notion to approve the resolution
was on the floor.
O'Brien stated that he has "had a problem" with this
issue since the beginning. He stated that he had asked the
clerk to send reference requests to the corrmunities which
Hyett-Palrra had listed as forrrer clients. He stated that he
could not vote in favor of the resolution until he has had a
chance to review references. He added that he had not seen any
"upswelling" support from the business corrmunity and asked if
the Chamber of Cornrerce had voted in support of the contract.
SimJ.tis stated that she had personally contacted
several references and the responses she had received, without
exception, had been very positive. She added that one recurring
thread through all of the contacts she had made was that Hyett-
Palrra had truly made a difference in the towns served. Sinutis
also stated that initially there had been a great deal of
corrmunity interest in this project; however, any organization
confronted with a continuing series of roadblocks will eventual-
ly lose interest. She added that she VoDuld vote in favor of the
resolution.
~ehan concurred with SimJ.tis, stating that the
project was badly needed and adding that this $60,000 VoDuld be
an excellent investrrent on the city's part.
Noll stated that he was one of the rrembers of Council
who had originally objected to approval of the resolution until
55
COMMUNITY DEV/
CON-).(,'5:/RESO:
( CSE15479Q )
56
PAGE 56
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
sarre background work was corrpleted, such as investigating local
resources. He added that SEA had done everything asked of them
and he was now ready to support the resolution.
Dunham stated that she intended to vote "yes", but
still had sorre reservations. She noted that Hyett-Palrra had
stated that SEA VoDuld need a local person to head up the local
effort; however, no one had addressed funding for this position.
She also expressed her concern that the public should be aware
that this $60,000 VoDuld not provide architectural services,
engineering or other services which VoDuld be required to suc-
cessfully corrplete the project.
In resI.XJnse to a question from Gieseler, Schaeferrreyer
stated that the contract provides that either party may termi-
nate the agreerrent with two weeks I notice and with payrrent to
Hyett-Palrra for all work actually perforrred.
THE QUESTION WAS CALLED AND RESOLUTION NO. 88-006 WAS
APPROIlED WITH SIX "YES" VOI'ES AND O'BRIEN varING "NO".
c. HALL/GRANTS/
RESO:
4.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING REr:EIPT OF A
STATE GRANT FOR PROIlIDING HANDICAP ACCESS TO
CITY HALL.
O'BRIEN M)VED TO APPROVE RESOllJTION NO. 88-024; THE
MJI'ION WAS SEr:CNDED BY MEEHAN.
In response to a question fran O'Brien, Schaeferrreyer
stated that he had been inforrred verbally that the aITOunt of
noney allocated for this project was $150,000; however, the bill
which was finally approved contained only $146,000.
THE QUESTION WAS CALLED AND THE MJI'ION CARRIED UNANI-
M:XJSLY.
x. UNFINISHED BUSINESS:
None
XI. NEW BUSINESS:
CLAIM FOR DAMAGES: A. MEEHAN M)VED TO APPRCJI1E THE CLAIM FOR DAMAGES
TOTALLING $909.43 FOR ALLEX3ED DAMAGE TO A PICKUP TRUCK AS FILED
BY ALAN M::HONE; THE MJTION WAS SECONDED BY HILTON.
In resI.XJnse to a question fran Gieseler concerning the
tirre which elapsed between the date of the alleged accident and
the filing date of the claim, Diener explained that H::Hone had
( CSE154800 )
I
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PAGE 57
REGULAR MEETING - MARCH 14, 1988
VOWME 23
originally approached City Shq:> personnel about the damage and
had been told that an estimate VoDuld have to be submitted with
the claim. After receiving the estimate, the claim was
officially filed with the Clerk's office.
THE QUESTICN WAS CALLED AND THE MJI'ICN FAILED WITH
SEVEN "NO" VOTES. The administration was instructed to refer
the claim to the city's insurance adjusters.
B. HILTON M:lVED TO PAY THE CLAIM IN THE AMJUNT OF CLAIM FOR DAMAGES:
$20,920 FOR ALLEl3ED WATER DAMA.GE AS FILED BY GEORGE WILLINGHAM;
THE MJI'ION WAS SEr:ONDED BY SIMlJI'IS AND FAILED WITH SEVEN "NO"
VOI'ES. The administration was instructed to refer the claim to
the city's insurance adjusters.
C. SIMUTIS IDVED TO PAY THE INVOICE TOTALLING $34.00 Co ATTY:
FOR LEGAL FEES AS SUBMITTED BY WULY & MASON; THE MJI'ICN WAS
SOCONDED BY NOLL.
O'Brien asked why the $3,000+ carried forward from the
previous nonth had not yet been paid. Schaeferrreyer stated that
the invoices were paid after approval by Council and he VoDuld
guess that the payrrent from the previous nonth had crossed this
invoice in the mail.
THE QUESTION WAS CALLED AND THE MJTION CARRIED UNANI-
MXJSLY.
XII.
CITY MANAGER REPORTS:
SCHAEFERMEYER stated that, on March 16, 1988, he VoDuld
be flying to Juneau with Mayor Gieseler and Finance Director
Peirson to attend a Railbelt Conference rreeting.
XIII.
COUNCIL DISCUSSION:
0' BRIEN asked about the status of the "1 O-year vs.
20-year" guarantee requirerrent for the Fire Hall roof. Diener
stated that the 20-year guarantee VoDuld be an added alternate in
the bid docurrents. O'Brien also inquired about the status of
Carl Jlbrman' s lease request. Schaeferrreyer stated that Martin
had sent a letter to Norman but has received no response as yet.
In response to another question, Schaeferrreyer stated that the
noney for the Caines Head project had been appropriated to the
Departrrent of Natural Resources.
NOLL reported on the status of the Navy Homeporting
Project. He stated that Admiral Jeremiah had encouraged con-
tinued expressions of interest from the Cormnmity.
GIESELER stated that he VoDuld like to see the city's
bid procedures followed except when it was absolutely necessary
to deviate from them. He noted that the city had not advertised
the bid for a new vehicle for the Harbor Department and the only
r CSE154801 )
58
PAGE 58
REGULAR MEETING - MARCH 14, 1988
VOLUME 23
local vehicle dealer had not been contacted and asked to submit
a bid. The local dealer had indicated that he could have beaten
any price quoted by other vendors. Gieseler also asked Diener
to "keep an eye" on water levels around town. He stated that he
was concerned about the potential for flooding this spring,
given the aITOunt of snow covering the nountains. Gieseler noted
that the Council would be narrowing the city manager applicants
to three on March 21.
XIV. CITIZENS' DISCUSSION:
BOB VAIDATTA, 528 Fifth Avenue, cormented that the
Jobs Bill looked nore like a "WPA Project".
xv. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS:
NOLL asked when the city could expect to see the
grant-funded projects "on the street". Schaeferrreyer stated
that the grant agreements were received by the city on Friday
and would be returned to the state on Tuesday with disburserrent
to the city in about 2 weeks. He added that the city VoDuld bid
the projects as soon as possible and begin the various jobs as
soon as weather permits.
GIESELER asked what can be accomplished to provide
handicap access to City Hall for $146,000. Diener replied that
the city hoped to provide a rarrp for access into the building
and an elevator for access to the second floor. In addition,
the restrooms VoDuld be revamped to provide handicap access,
tactile signs would be provided, and floor coverings VoDuld be
added to hallways to cure slippery surfaces.
XVI. ADJOORNMENT:
The rreeting was adjourned at 10: 30 p.m.
n S.
City Clerk
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May r
(CSE15~802 ]
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I
I
59
PAGE 59
SPECIAL MEETING - MARCH 21, 1988
VOllJME 23
I. CALL TO ORDER:
The March 21, 1988, special rreeting of the Seward City
Council was called to order at 7:00 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Counci1rrember Dunham led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, ~ehan, Jlbll and Simutis
(Counci1rrember 0' Brien was excused)
Present also: City Manager Schaeferrreyer and City
Clerk Murphy
IV. APPROVAL OF SPEr:IAL MEETING AGENDA:
Gieseler noted that a request to add consideration of
a transfer of liquor license ownership and location had been
properly noticed by the clerk's office and would be considered
as a "special item" imrediately following approval of the
agenda.
HILTON MJVED TO APPROVE THE SPECIAL MEETING AGENDA AS
AMENDED; THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANI-
MJUSLY.
SPEr:IAL ITEM:
A. GIESELER IDVED TO ISSUE A LETTER OF NONOBJEr:TION ABCB:
TO THE TRANSFER OF A LIQUOR LICENSE FR(M RAY AND LESLIE SIMUTIS
TO JANASKA CORPORATICN AND THE TRANSFER OF THE LCCATION OF THE
LICENSE TO 1316 FOURTH AVENUE; THE MJI'ION WAS SEr:CNDED BY HILTON
AND CARRIED WITH FIVE "YES" VOTES AND SIMUTIS "ABSTAINING".
V. RESOLUTIONS:
A. HILTON IDVED TO APPROVE RESOLUTICN NO. 88-035;
THE MJI'ION WAS SEr:CNDED BY SIMUTIS.
NPRHA/RESO:
Schaeferrreyer noted a March 21, 1988, rrerrorandum from
Administrative Assistant Kerry Martin reconrrending that Council
postpone action on the proI.XJsed resolution until the adminis-
tration had worked out a lTDJ.tally acceptable agreement regarding
a specific project and a specific location. He stated that the
administration has a number of concerns including i"larre confusion
as to the type of project proposed. He noted that Tabios had
indicated that NPRHA wished to sponsor a "lTDJ.tual help horre
ownership program"; however, the agreerrent attached to the
( CSE 154803 ]
60
PAGE 60
SPEr:IAL MEETING - MARCH 21, 1988
VOWME 23
proposed resolution addressed a rental program.. Schaeferrreyer
stated that the city attorney had discussed sare proposed
revisions to the agreerrent with a HUD attorney and had been
advised that HUD VoDuld probably not enter into an agreement
similar to the one the city had negotiated for the Bear MJuntain
Apartrrent project. Schaeferrreyer also stated that the Council
should take current market conditions into consideration before
acting on this proposal. He recanrrended that action be post-
poned until the city had had an opportunity to VoDrk out a
mutually acceptable agreerrent with NPRHA.
LARRY JOHNSON, 329 Second Avenue, stated that the
project VoDuld greatly affect the rental market in Seward. He
noted that there are already many subsidized rental units in
town.
DERENTY TABIOS, Executive Director of NPRHA, stated
that the program is a harre ownership program. He stated that
the program would affect only the rental market in Seward, not
the single family market. (In order to qualify for the project,
one must be unable to obtain conventional financing. ) In
response to a question fran Hilton, Tabios stated that the
property VoDuld be rerroved from the tax rolls and would, instead,
make PILT's (payrrent in Lieu of Taxes) which VoDuld aITOunt to
approximately 10% of regular taxes. In addition, the collection
of PILT's is not enforceable.
MARGE BLANKENSHIP, Bear MJuntain Apartrrents Manager,
stated that there are currently 40 applicants for the horre
ownership program and 8 applicants on the Bear MJuntain rental
"wait" list.
Dunham stated that the city had just "rescued" Gateway
for $90,000. Chugach Alaska Corporation was about to construct
a sawmill which VoDuld add to the tax base of the city. In
addition, many residents of the city currently live in substan-
dard housing. She stated that any inpact this project might
have on the rental market VoDuld not be a problem since prison
errployees VoDuld soon be noving to town and looking for living
accormodations.
~ehan stated that nore tirre was needed to study this
request. He asked if there were existing houses on the market
which would rreet the criteria set by HUD.
MEEHAN MJ\1ED TO POSTPONE ACTleN eN THE PROPOSED
RESOImION UNTIL NPRHA AND THE CITY CAN DEVEIDP A MUTUALLY
AO:EPTABLE AGREEMENT; THE MJI'IeN WAS S~ED BY HILTON.
In response to a question from Jlbll, Tabios stated
that the application deadline was April 1. Schaeferrreyer
suggested that, if there was an April 1 deadline, Tabios should
have carre to the city early enough to allow preparation of a
recon:rrendation for the Council. He stated that he was not at
( C Sf 154804 ]
I
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I
61
PAGE 61
SPEr:IAL MEETING - MARCH 21, 1988
VOIDME 23
all certain that a document could be drafted for approval by
April 1. SimJ.tis stated that the burden to pursue such an
agreerrent should be placed on NPRHA.
THE QUESTION WAS CALLED AND THE MJTION TO POSTPONE
ACl'IeN ON THE RESOLUTleN WAS APPROVED WITH FOUR "YES" VarES AND
DUI\'HAM AND NOLL VarING "NO".
VI. COUNCIL DISCUSSION:
DUNHAM stated that it was apparent that the city is
not interested in this project, adding that when the adminis-
tration wants sorrething to happen, it does; when it doesn't want
sarrething, it doesn't get done.
NOLL noted that the New York Tirres had
article about Seward in the March 20 edition.
stated that he VoDuld provide the Council with
article.
carried a nice
Schaeferrreyer
copies of the
GIESELER stated that he and Schaeferrreyer had testi-
fied in support of HB 349 (-Railroad Bill) before the Senate
State Affairs Comnittee (Abood). He asked for volunteers from
Council to participate in lobbying efforts regarding the bill in
the next couple of weeks. Noll stated that he was available
next week.
GIESELER also noted a letter from Departrrent of
Transportation concerning the Tusturrena. He suggested that the
city prepare a resolution honoring the "Tusty" and plan a
celebration during the nonth of May.
GIESELER stated that Schaeferrreyer had promised to
present a sumrrer parking plan for the Small Boat Harbor at the
April 11 rreeting.
VII. CITIZENS' DISCUSSION:
JOHN GILLESPIE, 606 Fifth Avenue, spoke in support of
Resolution No. 88-035. He stated that, as owner and broker of
Seward Real Estate Corrpany, he did not feel threatened by this
agreement. He stated that this proI.XJsal was designed to give
poor people an opportunity to live in affordable housing.
BOB VALDATI'A, 528 Fifth Avenue, stated that the
Tusturrena is a real asset to the corrmmity and the city should
present it with a plaque recognizing Seward as the vessel's
harreport .
WILLARD DUNHAM, Diarrond and Alder Streets, Forest
Acres, spoke in support of a searren' s center to aC=rm:::xJate the
Polish fleet and others visiting our I.XJrt. He noted that the
Polish fleet is now provisioning here and the crews need sorre
place to go when they are in I.XJrt. He also reminded Council
( CSEl5480S 1
62
PAGE 62
SPEr:IAL MEETING - MARCH 21, 1988
VOLUME 23
that the prison dedication was scheduled for Saturday, March 26.
Dunham stated that he had talked to Tan ~ars (Cook Inlet
Aquaculture Association) concerning the CIAA proposal to operate
Trail Lakes Hatchery for the state. He indicated that ~ars has
not corrrnitted to a continuation of enhancement activities for
the Resurrection Bay fishery . Finally, Dunham spoke in favor of
Resolution JIb. 88-035.
KEITH CAMPBELL, 1910 Forget-~-Not Circle, stated that
he was bothered by the way the HUD project had carre together.
He stated that he was uncanfortable with such a loosely worded
document. He stated that the city was "better off providing
jobs so that they can afford any type of housing".
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COMMENI'S:
NOLL stated that he and Suneel VoDuld do what they
could to support the establishIrent of a searren' s center in
Seward. Jlbll also stated that he would support the NPRHA
project and hoped that NPR and the city VoDuld get together and
carre to sorre sort of an agreement.
HILTON stated that he was syrrpathetic to those with
little noney looking for a place to live and added that he VoDuld
welcarre the project as long as the developer adhered to the
rules everyone else has to live by. He stated that the agree-
rrent should be one the city is comfortable with and should not
be approved just because the goals are worthy.
MEEHAN concurred with Hilton's staterrents.
GIESELER stated that he VoDuld rreet with the adminis-
tration and arrange for the purchase of a plaque for the ward-
roan or stateroan on the Tustumena. Gieseler also agreed that a
searren's center was needed. Finally, Gieseler stated that he
did not believe that the NPRHA project should becarre a political
issue. He stated that the Council has a responsibility to the
ccmnuni ty and must look at all sides of the issue.
IX. ADJOURNMENT:
The rreeting was adjourned at 8:07 p.m.
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Mayor
( CSE154806 )
I
I
I
PAGE 63
SPECIAL MEEI'ING - APRIL 4, 1988
VOIlJME 23
1. CALL TO ORDER:
The April 4, 1988, special meeting of the Seward City
Council was called to order at 4:05 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Counci1rrember Dunham led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, ~, Jlbll, O'Brien and
SimJ.tis
Present also: City Manager Schaeferrreyer, Administra-
tive Assistant Martin and City Clerk
Murphy
IV. APPROVAL OF SPEr:IAL MEETIN3 AGENDA:
MEEHAN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS
PRESENTED; THE MJI'ICN WAS SEr:CNDED BY SIMJTIS AND CARRIED
UNANIMJUSLY.
V. NEW BUSINESS:
A. MEEHAN M)VED TO OFFER THE CITY MANAGER POSITION
TO ROD3ER BENNETT; THE MJI'ICN WAS S~ED BY DUNHAM AND CARRIED
UNANIMJUSLY.
O'BRIEN MJVED TO OFFER BENNETT $66,000 ANNUAL SALARY
PillS A CAR ALLC:WANCE OF $200 PER JIn.lTH; THE MJI'ION WAS SEr:ONDED
BY HIL'Irn AND CARRIED WITH SIX "YES" VOTES AND NOIL VarING "NO".
Gieseler stated that he VoDuld telephone Mr. Bennett
following adjournrrent of the rreeting and present the offer to
him.
O'BRIEN stated that he had another appointrrent and was
excused from the remainder of the rreeting.
SIMJTIS MJVED TO OFFER 'lD MR. BENNETT A IDVING AIJ,(Ml-
ANCE OF TEN THOUSAND DOLLARS ($10,000); THE MJTleN WAS SECONDED
BY HIL'Irn AND CARRIED WITH FIVE "YES" VOTES AND NOLL VarING
"NO".
VI.
COUNCIL DISCUSSION:
Jlbne
63
C.MANAGER: (Ben-
nett to be of-
fered position)
r C SE 154807 1
64
PAGE 64
SPECIAL MEETING - APRIL 4, 1988
VOLUME 23
VII. CITIZENS' DISCUSSION:
None
VIII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS:
None
IX. ADJOURNMENT:
The rreeting was adjourned at 4: 55 p.m.
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I. CALL TO ORDER:
~C~
. Gieseler
Mayor
The April 7, 1988, special meeting of the Seward City
Council was called to order at 12:03 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMJNY:
the flag.
III. ROLL CALL:
Counci1rrember O'Brien led the pledge of allegiance to
Present were: Mayor Gieseler and Counci1rrembers Hil-
ton, ~ehan, O'Brien and Sirrutis (Coun-
ci1rrember Noll was excused and Council-
rrenber Dunham arrived at 12:05 p.m.)
Present also: City Manager Schaeferrreyer, Administra-
tive Secretary Martin and City Clerk
Murphy
IV. APPROVAL OF SPEr:IAL MEETING AGENDA:
MEEHAN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS
PRESENl'ED; THE MJI'IeN WAS SECONDED BY HILTCN AND CARRIED UNANI-
M:XJSLY.
Jlbte: Dunham arrived at this tirre.
( CSE 154608 1
I
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PAGE 65
SPEr:IAL MEEI'ING - APRIL 7, 1988
VOLUME 23
V. NEW BUSINESS:
A. Gieseler stated that he had offered Bennett the
corrpensation package approved by the Council at the April 4,
1988, rreeting. In response, Mr. Bennett had made a counter-
offer, asking for corrpensation totalling $72,000 annually plus
$300 per nonth car allowance and a performance evaluation at the
end of six nonths with a raise in salary at that tirre to $78,000
annually. He stated that he was willing to accept the $10,000
moving allowance offered by the Council.
~ehan stated that he could not SUpI.XJrt nore than
$66,000 in annual salary. He stated that Bennett still needed
to gain Alaskan experience and that this education should not be
at the expense of the city of Seward. He stated that Bennett
seems to have little sympathy for the Councilor an
understanding of the political realities in Seward.
Dunham stated that Bennett "has priced himself out of
the market" .
O'Brien stated that he VoDuld like to make another
offer to Bennett, noting that his "counter-offer" might be an
attempt to "squeeze" a little nore out of the city.
Hilton stated that he could support offering an
additional $2,000 annually.
SimJ.tis objected to criticizing Bennett because he
asked for a high salary. She agreed that the Council had to
make a final offer. She added that she still felt he was the
right man for the corrmunity.
HILTON IDVED TO OFFER TO ADD $2,000 PER YEAR TO THE
ORIGINAL OFFER TO BENNETT, WITH THE CAR AJ:LaVANCE TO REMAIN AT
$200 PER MJNTH AND A PERFORMANCE EVALUATION AT THE END OF mE
YEAR WITH NO GUARANTEED INCREASE IN SALARY; THE MJI'IeN WAS
SEr:ONDED BY SIMUTIS AND CARRIED WITH FIVE "YES" VOTES AND MEEHAN
varING "NO".
Recess: The rreeting was recessed at 12: 20 p.m. and reconvened
at 12:30 p.m.
Martin attempted to telephone Bennett at his office in
Casa Grande, Arizona, but was told that he was out of the
office.
Hilton stated that he VoDuld suggest that, if an
agreerrent is not reached with Bennett, the Council go back
through the applications on file, including those which had been
received after the deadline and not initially considered.
Murphy was instructed to contact Dave palrrer (Craig, Alaska) if
Bennett did not accept the city's offer to ascertain if he was
still interested in the position.
t.h
C. MANAGER: (Ben-
nett's salary
offer increased)
( CSE 15'i809 )
66
PAGE 66
SPEr:IAL MEETING - APRIL 7, 1988
VOLUME 23
VI. COUNCIL DISCUSSION:
GIESELER asked Schaeferrreyer to explain the situation
which was developing in the Small Boat Harbor. Schaeferrreyer
stated that there appeared to be a cloud to the title on the
property recently leased to Gerry Lorz and Dot Bardarson (Lot 5,
Block 1, Marina Subdivision). The lot was included on a deed of
trust between Marilyn Plymire and Juris Mindenbergs and on
another deed of trust between Mindenbergs and Russ Pace. (The
deed of trust covered several lots, including the ones occupied
by the Breeze Inn MJtel and the Breeze Inn Restaurant.) Follow-
ing default of his lease with the city by Russ Pace, the city
had terminated the lease of Lot 5 and had recorded the termina-
tion docurrent with the Recorder's Office. However, the title
carpany refuses to release the lot from the two deeds of trust
without a quit claim deed (or a like instrument) frcm both
Plymire and Mindenbergs. The city's position is that, since the
lot is bare (no inprovements) and the leasehold interest has
been terminated, there is no valid lien against the property.
Schaeferrreyer stated that Administrative Assistant Kerry Martin
was conferring with the city attorney today to look for a
resolution of the matter.
In addition to the clouded title issue, National Bank
of Alaska has raised sorre questions about the lease form used by
the city for property in the Small Boat Harbor. These concerns
were passed on by the bank to SBA officials who now say that
they are uncomfortable with sorre of the provisions in the city's
lease form. Schaeferrreyer stated that he and the attorneys will
be addressing this issue.
VII. CITIZENS' DISCUSSION:
Jlbne
VIII.
COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS:
Jlbne
IX. ADJOURNMENT:
The rreeting was adjourned at 1:02 p.m.
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Mayo
(CSE154810 ]
I
I
I
PAGE 67
REGULAR MEETING - APRIL 11, 1988
VOLUME 23
I. CALL TO ORDER:
The April 11, 1988, regular rreeting of the Seward City
Council was called to order at 7: 30 p. m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMJNY:
flag.
Counci1rrember Noll led the pledge of allegiance to the
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rre:mbers Dun-
ham, Hilton, ~ehan, Jlbll, O'Brien and
Sirrutis
Present also: City Manager Schaeferrreyer, City Attor-
ney Arvidson, Port Director Gates,
Manager of Engineering & Utilities
Diener, Administrative Assistant
Martin, Parks and Recreation Director
Yanez, Police Chief Bencardino and City
Clerk Murphy
IV. APPROVAL OF MINUTES:
MEEHAN IDVED TO APPROVE THE MARCH 14,
4, AND APRIL 7, 1988, MINUTES AS PRESENTED;
SEr:ONDED BY SIMUTIS AND CARRIED UNANIMJUSLY.
MARCH 21, APRIL
THE MJI'ICN WAS
V. APPROVAL OF CONSENT CALENDAR & RffiULAR MEETING AGENDA:
Schaeferrreyer requested the addition of new Consent
Calendar Item JIb. 14, proposed Resolution JIb. 88-040, relating
to Municipal Assistance and Revenue Sharing.
MEEHAN M:J\1ED TO APPROVE THE RffiULAR MEETING AGENDA AS
PRESENTED AND THE CONSENT CALENDAR AS AMENDED; THE MJTICN WAS
SEr:CNDED BY 0' BRIEN AND CARRIED UNANIMJUSLY. The following
actions were taken:
67
1. Resolution No. 88-036, in support of SB 303, an PARKS & REC/RESO:
act relating to state marine parks, was approved and filed;
2. Resolution No. 88-037, in support of the Resur- PARKS & REC/RESO:
rection River Trail project, was approved and filed;
3. Resolution No. 88-038, authorizing a professional
services agreerrent with Arnett Testing Laboratory for substation
maintenance testing, was approved and filed;
4. Resolution No. 88-039, supporting the construc-
tion of a toll road to Cordova, was approved and filed;
ELEC.DEPT/CON-2~/
RESO:
STREETS/RESO:
leSE 154811 ]
68
PAGE 68
REGULAR MEETING - APRIL 11, 1988
VOllJME 23
C.ATTY: 5. March 10, 1988, invoice from w:>hlforth, Flint &
Gruening for legal services totalling $1,024.08 was approved for
payrrent and filed;
ACCTS.PAYABLE: 6. April 5, 1988, Finance Department list of ac-
counts payable totalling $1,242,544.02 was approved for payrrent
and filed;
SMALL BOAT HRBR: 7. April 5, 1988, rrerrorandum from Harbormaster
Foster Singleton requesting that Council allow the Harbor to
maintain the 21' Boston Whaler as Harbor inventory was approved
and filed;
BOARDWALK/RE-
RESO:
/ 8. April 7, 1988, neIlOrandum from Administrative
Assistant Kerry Martin requesting approval of an assignrrent of
lease from Kenai Fjords Tours, Inc., to Donald J. Oldow, Parrela
F. Oldow, Jack Scoby and Sheila Scoby, dba "The Landing" (SBH
Boardwalk Site JIb. 8), was approved and filed;
9. ABCB notification of application for renewal of a
liquor license as filed by FAIRWEATHER CAFE was filed without
objection;
ABCB:
ABCB:
10. ABCB notification of
designation as filed by FAIRWEATHER
BAR & GRILL was approved and filed;
request for restaurant
CAFE and RAY'S WATERFRONT
ABCB:
11. April 6, 1988, letter from the city to ABCB
lifting the city's protest of the renewal of liquor licenses for
PIONEER BAR, TONY'S BAR, TONY'S LIQUOR STORE, and YUKON LIQUOR
STORE was noted for information and filed;
RE-rDI:
12. March 24, 1988, annual report of dock maintenance
and activity as filed by Seward Fisheries as required under the
terms of the SFI preferential dock use agreerrent was noted for
information and filed;
CON- \5'\ :
13. March 15, 1988, rrerrorandum from Engineering &
Utilities Manager Diener concerning change orders to the Sarrwhan
contract for prison construction as follows was noted for
information and filed:
#72 - Providing all labor, equiprent and materials to
add additional structural steel at guard tower per submit-
tal STA-095-2 (+$7,305);
#100 - Providing electrical power for food service
equipment items #9 and #114 in the APS kitchen (+$1,350);
#107 - Providing all labor, equiprent and materials to
install 5' snawguards on roofs of APS Buildings 2, 3, and
4, verifying that snowguards will not alter roof warranties
and supplying 20 each 5' snowguards as spares (+$39,112);
( CSE15481l ]
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REGULAR MEEl'ING - APRIL 11, 1988
VOLUME 23
#111 - Providing for additional painting on the APS
kitchen as required by DEI:: (+$9,974);
#113 - MJdifying the "EE" type lighting fixture in
Building #4 control room to eliminate a blind spot (+$877);
#114 - Reducing contract to corrply with letter from
Departrrent of Labor regarding Alyeska Electric, Inc.
(-$199,204);
#116 - Providing all labor, equipment and materials to
install seals on chase doors, 160 each (+$714);
#117 - Installing drip rail for door 2/3-230 per
Detail No. A-903 (+$518);
#118 - Installing one relay box and hookup to connect
nonitor (+$213);
#119 - payrrent of excess fuel oil in the tank - 4,498
gallons @ $0.70 per gallon, plus 1.5% for bond guarantee
(+$3,195);
#120 - Installing additional gypsum wall system to fix
door JIb. l-233B and enclose column and wall comers in Foam
No. 1-222 APS Building (+$2,000);
#121 - Providing a credit for the unfinished portion
of work on Gates 0-1 and 0-7 (-$952);
#122 - Deleting partition, steel doors and frarres, and
paint work for CMU partition; installation of vinyl tile;
extension of cerrent plaster ceiling; soffit ceiling in grid
"C"; and patching fireproofing for steel frarre and rretal
deck in order to install ceiling suspension system
(+$1,860) ;
#123 - Additional security nonitoring requirerrents per
final scope of work letter (+$11 ,049) ; .
#125 - Backflush 6" watermain to building JIb. 5
(warehouse) (+$1,636);
#126 - Installing insulation and damp proofing to
warehouse and notorpool foundation masonry wall (+$18,000);
#127 - Performing flON testing on fire hydrant system
over and above testing called out in the basic contract
(+$769);
#128 - Adding power circuitry in Building No. 4 server
for food well unit (+$1,573);
(CSE154B13 )
70
REV SHARING/RESO:
CIT.DISCUSSION:
PAGE 70
REGULAR MEETING - APRIL 11, 1988
VOLUME 23
#129 - Installing 45 linear foot 24" culvert at
Stati~ 3+ 25 on the service road to improve site drainage
(+$3,900);
#130 - Providing a credit for deleting glass beads
frcm striping paint applied to main parking lot (-$336);
#104 - Mounting door frarre 1-306 on Roam 1-305
(+$4,000) ;
#105 - Relocating electrical raceways and adding a 24"
square access door in Roam 1-135 (+$3,500);
#115 - Revising the head heights for vehicle sallYI.XJrt
gates (+$6,949);
#131 - Relocating electronic security equiprrent in the
warehouse (+1,566);
#132 - Providing I.XJwer circuits for the TV nonitors on
control panels 1 and 2 (+$2,449); and
14. Resolution No. 88-040, regarding Municipal
Assistance and Revenue Sharing, was approved and filed.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly Representative
Jonathan Sewall was not present and no report was given.
VII. PUBLIC HEARINGS:
None
VIII.
CITIZENS' DISCUSSION: (With prior notice only)
A. DOYLE HYETT, representing Hyett- Palrra, stated
that he appreciated the vote of confidence given H-P by the
Council, adding that he and Delores Palrra had been VoDrking in
Seward since Friday and VoDuld be rreeting with the Seward En-
hancement Association throughout the week to develop the 13-
month plan. He encouraged the Council to offer suggestions for
the enhancerrent plan.
IX. ORDINANCES AND RESOLUTICNS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ESTABLISHING A LIBRARY
leSE 154814 1
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RffiULAR MEETING - APRIL 11, 1988
VOLUME 23
DEPARI'MENI' AND PROVIDING FOR THE OPERATION
OF PUBLIC LIBRARY FACILITIES.
NOLL M:NED TO INTRODUCE PROPOSED ORDINANCE NO. 603;
THE MJTICN WAS SEr:ONDED BY SIMUI'IS AND CARRIED UNANIMJUSLY.
Public hearing was scheduled for April 25, 1988.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING SECTION 14-85.1
OF THE SEWARD CITY CODE REGUIATING PARKING
WITHIN THE SEWARD MUNICIPAL BOAT HARBOR.
SIMUTIS IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 604;
THE MJI'ION WAS SEr:CNDED BY HILTON.
In response to a question from O'Brien, Schaeferrreyer
stated that the parking plan had been presented to the Planning
Corrrnission at its April 6, 1988, rreeting; however, no public
hearing had been conducted at that tirre. SimJ.tis asked if any
Alaska Railroad property was included in the northernrrost area
designated for long term parking. Schaeferrreyer stated that a
portion of that area did belong to the Railroad, but the city
was party to a use agreerrent for the property.
THE QUESTION WAS CALLED AND THE MJTION TO INTRODUCE
THE PROPOSED ORDINANCE CARRIED UNANIM:XJSLY. Public hearing was
scheduled for April 25, 1988.
B. Ordinances for Public Hearing and Enactrrent:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled :
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING THE CITY COUNCIL
AGENDA FORMAT.
Notice of public hearing as I.XJsted and published 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 M:NED TO ENACT ORDINANCE NO. 602; THE MJTION
WAS SECONDED BY HILTON AND CARRIED UNANIMJUSLY.
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
71
C. COUNCIL/ORD:
(Agenda format
amended)
r CSE154815 )
72
PAGE 72
REGULAR MEETING - APRIL 11, 1988
VOLUME 23
PUBLIC HEARINGS/NPRHA/
RESO: (Action postponed)
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, TO ENTER INTO A COOPERA-
TlOO AGREEMENI' WITH THE NORTH PACIFIC RIM
HOUSING AUTHORITY.
Murphy noted that this item had been I.XJstponed from
the March 21, 1988, rreeting, and a notion for approval of the
resolution was on the floor. Gieseler stated that, given the
aITOunt of interest expressed in this proposed housing develop-
rrent, he VoDuld open the floor for corments from the public
following a short presentation by the administration.
Arvidson reviewed the changes made to the oooperation
agreerrent following discussions with attomeys for NPRHA. He
stated that nost of the agreed upon changes had been included in
the oooperation agreerrent which had been distributed to the
Council prior to the rreeting; however, several unsubstantial
changes had not yet been incorporated but VoDuld be inserted
following action by the Council.
Schaeferrreyer stated that he could recc:mrend approval
of an agreerrent in the form which was now before Council, but
the larger policy issue of whether this type of subsidized
housing was currently needed was one the Council ITU.lst make. He
stated that this was a federal program with the federal govern-
rrent dictating the rules. He added that he was hesitant to
recomrend approval of a proj ect with so many unanswered ques-
tions such as location, size, architectural style, etc. He
reminded the Council that once the agreement is approved, no
further overview by Council or the Planning CaIroission VoDuld
occur if NPRHA opted for single family developrent. He also
cautioned that construction of houses such as the ones NPRHA had
put in other conmunities could adversely affect property values
in some neighborhoods, and residents of those neighborhoods
VoDuld have no recourse if they objected to the developrent (once
this agreerrent is approved).
Gieseler opened the floor for public corment.
DAN PETERSON, representing NPRHA, stated that this
developrrent VoDuld rreet any standards set by the conmunity. In
resI.XJnse to a question from ~ehan, he stated that a buyer
making the minimum payrrent of $115 per nonth would not build
equity in the house and therefore VoDuld not receive any
remuneration should he decide to assign the loan to another
qualified buyer. Hilton stated that, by his calculations, the
maximJ.m that any buyer would pay for a $120,000 housing unit
VoDuld be $36,000 (over the life of the loan). Peterson
confirrred that the nonies paid by a participant in the program
represented an administrative fee to NPRHA; the house itself was
constructed through a grant from HUD. Peterson also confirrred
that, even if a participant made a larger than minimum payrrent
and paid off his property early, the house and land would remain
off the tax rolls as long as a project loan was in effect, or 25
years.
t C SE 154816 1
I
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PAGE 73
REGUIAR MEETING - APRIL 11, 1988
VOIDME 23
Hilton estimated the loss of real property tax revenue to the
city over the life of the project to be $225,000 (based on the 3
mil rate currently paid by city property owners). Peterson
noted that NPRHA would be making payrrents in lieu of taxes
(PILT' s) to the city. Hilton pointed out that NPRHA' s Bear
MJuntain Apartrrents had paid no PILT's last year and the col-
lection of PILT' s under the agreerrent before the Council was not
enfdrceable. Noll asked if NPRHA would be required to carre back
to the Council if it intended to arrend the program by going from
a "very low incarre" plan to a "low incorre" plan. Peterson
stated that such an amendrrent could be made without Council
consent. In response to a question from SimJ.tis, Peterson
stated that HUD provides fire and liability insurance; the buyer
VoDuld be responsible for insuring his personal property.
Peterson closed by stating that there is a documented need for
subsidized housing in Seward and urged the Council to approve
the resolution.
HEATHER MAHAN, Soldotna, stated that she was in the
process of moving to Seward and had been house-hunting for a
couple of nonths. She stated that she did not know how low
incorre families could afford to buy a house in Seward. Mahan
added that this project was needed and asked the Council to
approve the resolution.
MARGE BLANKENSHIP, resident manager of Bear MJuntain
Apartrrents, also spoke in favor of the resolution and agreerrent.
She noted that the horre buyer would be given an allowance for
utili ties by HUD, but would pay any balance himself. In
addition, she stated that HUD requires annual inspections of the
properties and annual certification of incorre, with payrrents
adjusted accordingly. She stated that the housing would be a
credit to Seward.
MARILYN REYNOLDS, 225 Sixth Avenue, representing the
Lowell Canyon Townhorre Association, SI.XJke in opposition to the
developrrent. She stated that she has had a house on the market
for one year and has advertised it in the newspaper for six
months. She noted that sorre townhouses had been on the market
for 2 years. She stated that with 35-40 horres on the market,
there was no need to add nore single family units. Reynolds
noted that correctional officers coming to town fran Anchorage
VoDuld not qualify for this new project. She also d>jected to
adding nore units of housing to the corrmunity which VoDuld not be
on the tax rolls. She stated that those in the =nmuni ty who
paid property taxes VoDuld have to subsidize this project.
Reynolds added that, before building any new units, existing
single family horres should be utilized. She also stated that
other loan programs are available and urged the Council to vote
in opposition to this resolution.
DAN PETERSON stated that the clients who would qualify
under the NPRHA project were those with credit problems and
probably VoDuld not qualify for any other type of financing.
l CSE154817 1
74
PAGE 74
REGULAR MEETING - APRIL 11, 1988
VOLUME 23
WILIARD DUNHAM, Forest Acres Subdivision, stated that
alrrost all of the projects constructed in Seward since 1950 had
been subsidized in sorre way. He stated that the city should
help those in need of assistance and approve the resolution.
No one else appeared in order to be heard and the
public hearing was closed.
Hilton stated that he had no problem with providing
people with decent, quality harres in which to live, provided
that the dwelling was not in a subsidized ownership program. He
stated that the "Arrerican Dream" was not available to everyone
living in this country. Hilton added that he saw a real I.XJten-
tial for abuse under this program. In addition, the city stands
to lose property taxes and sales taxes. He stated that he could
not support this project at this tirre.
SimJ.tis objected to the concept of a subsidized
ownership program, stating that it was not everyone's inalien-
able right to own a horre. She added that she VoDuld vote in
opposition to the resolution.
Noll asked Arvidson if it was possible to amend the
cooperation agreerrent in a way that the fears expressed by
Counci1rrembers could be allayed, in particular the question of a
25-year tax subsidy on a harre that was "paid off". Arvidson
stated that the issue of putting a particular horre on the tax
rolls while exempting others VoDuld probably be a difficult one
to get through. He stated that he could address this with NPRHA
and HUD attorneys.
O'Brien stated that the project before the Council was
a very thinly disguised low rent project. He stated that he was
concerned about the loss of property taxes and the loss of sales
tax revenue. He noted that, as a property owner, he had paid
approximately $22,000 in property and sales taxes over the past
2 years while Bear MJuntain Apartrrents had paid $2,200. O'Brien
added that if the need for this housing did exist, the private
sector VoDuld provide it. He also noted Subsections (b) and (c)
under Paragraph 4 (Page 3 of the Agreement), stating that he did
not feel that the city should make such premises (vacating
streets and alleys and relinquishing the city's interests in
sarre to NPRHA, and deviating fran the Building Code). O'Brien
stated that he was concerned that the city was "signing up for
all kinds of things we I re not aware of".
Dunham stated that there was no place for a young
nother with children to own a harre without this project.
~ehan stated that he had supported HUD projects over
the past 7 years, noting that at other tirres it was very clear
what the Council was SUPI.XJrting, and the Council had been given
adequate tirre to review earlier proposals. He stated that the
Council's duty was to protect the best interests of the
( CSE 154818 )
I
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PAGE 75
REGULAR MEETING - APRIL 11, 1988
VOLUME 23
cannunity, and thus the Council llUlst know exactly what the
project VoDuld cost the city before entering into an agreerrent.
~han stated that he did not want to sign a blank check based
on errotion only. He added that he could not support the project
as presented.
NOLL MJVED TO POSTPCNE ACI'ICN m 'IRE PROPOSED RESOLU-
TIm UNTIL THE APRIL 25, 1988, MEETING; THE ~Im WAS SEr:ONDED
BY MEEHAN AND CARRIED WITH SIX "YES" VarES AND 0' BRIEN varING
"NO" .
X. UNFINISHED BUSINESS:
None
XI. NEW BUSINESS:
A. Gieseler appointed Bill Walker to fill the vacant
seat on the Seward Trade and Cormerce Advisory Board for a term
to expire in Noverrber 1988. There was no objection from the
Council.
XII. CITY MANAGER REPORI'S:
Schaeferrreyer stated that he had proposed a I.XJssible
land exchange between the city and the borough and had received
positive support from the borough administration. His proI.XJsal
entailed exchanging the city-owned property designated as a site
for the proposed new elerrentary school for the remainder of the
borough-owned property within the city limits. Schaeferrreyer
stated that, if there was no objection from the Council, he
VoDuld proceed with the public hearing process to effect such a
trade.
Administrative Assistant Kerry Martin outlined the
proposed Harbor Parking Plan. He stated that enforcerrent would
be accomplished by a fulltirre traffic officer during the surrrrer
rronths.
Port Marketing Director Christopher Gates distributed
copies of his rrost recent rronthly status report which had been
given to the Trade Board on April 5. He and Diener answered
several questions fran the Council concerning the status of
various projects.
XIII.
COUNCIL DISCUSSION:
O'BRIEN asked about the status of the budget process.
Schaeferrreyer stated that budget packets were going out to
department heads this week, with planned distribution of the
proposed FY 1989 budget to the Council at the April 25 rreeting.
In response to a question from 0' Brien concerning the FY 1987
audit, Schaeferrreyer stated that the audit is essentially
complete and would be presented to the Council on April 25.
75
TRADE BOARD: (B.
Walker apptd.)
( CSE154819 1
76
PAGE 76
REGULAR MEETING - APRIL 11, 1988
VOI1JME 23
DUNHAM reminded everyone that Seward Expo was sched-
uled for the coming weekend. She stated that the city should
have participated in COM FISH in Kodiak this year and should
plan to participate in the future. She also requested that the
city urge operators of the shiplift to advertise their services
statewide and outside the state.
MEEHAN stated that he hoped to see a connunity-wide
cleanup effort in the city. He also asked if the rrethod of
disposal of stray animals had been changed since the recent
newspaper article. Schaeferrreyer stated that the city is now
using carbon nonoxide gas to dispose of these animals.
HILTON asked if the city could begin abaterrent of the
derrolished buildings behind the Body SHop.
NOLL thanked Willard Dunham for putting together the
prison dedication/opening cererronies. He also endorsed Dunham's
idea for a Searren' s Center and offered his and Suneel' shelp.
Noll asked the administration if it would be possible to
eliminate the sales tax on food i terns. Schaeferrreyer stated
that the city's tax is tied to the borough's and the city VoDuld
be unable to deviate from the borough I s system. Arvidson stated
that he would research this.
GIESELER stated that he was VoDrking on a trip to
Seward, Nebraska, for the Fall. He also stated that he had
written a letter to LCDR Kitty Charrberlain inviting two frigates
to Seward this sumrrer during the third or fourth week in June.
In response to a question concerning the status of the Senior
Center, Diener stated that he had talked to Werner earlier in
the day. Werner had indicated that he was in the process of
finalizing design drawings with another architect. He stated
that he hoped to schedule a public hearing on the acquisition of
the Werner property on May 9, with opening of the center sched-
uled for this Fall.
XIV. CITIZENS' DISCUSSION:
BRAD SNaIDEN, 525 Sixth Avenue, stated that the M/V
Tusturrena had recently been forced to spend 9 hours anchored in
the Bay with passengers because the Polish fleet VoDuld not nove
to let them in. He also asked the Council to consider replacing
the downtown street lights with antique-style lamps. Sna,..tien
then explained his idea for a one-car passenger train linking
the Small Boat Harbor with DcMntown. He stated that he VoDuld
rely on donations to get the rails, construction of the railway,
and an antique rail car. Maintenance and upkeep VoDuld becorre
the responsibility of the city or a nonprofit private corpo-
ration.
JOHN GLASSER, 405 Fourth Avenue, suggested that the
city construct a paved shoulder down the length of Fourth Avenue
( CSE154820 1
___ .._,~.._,.__."~._.___'_"'_"___' __'--""_' _.h_ ..___....____.
77
PAGE 77
RffiULAR MEETING - APRIL 11, 1988
VOLUME 23
I
to create a pedestrian walkway between the Small Boat Harbor and
DcMntown.
XV. COUNCIL & ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
HILTON asked if it might be possible to rebate sales
taxes on food to those who could deJIDnstrate need. He also
asked if the Navy Task Force had surveyed the corrrrnmity to see
if the majority of the residents of Seward were interested in
harreporting aU. S. Navy vessel here.
NOLL stated that it was a bit premature for a public
hearing on the harreporting issue.
;;'lJJ.L'~.
vl-'v- O~ Sl::~ '.
,'~ ..\.,,,,,,, -1
,;;1,,'\ ',''iAf4rOf!;,A')" .'1-')
.:)' C,' " (J" '. ,",' '-'
:j -':'~ "'1,;;
:; : --.; -.;".'.
~ :
~ . .
~ "
% .'.......t,; "S1 Murphy,
~~ -, '--.:ltl't C;;1~ qe-rk
."- v/" . ~ "'il, " ~
~'" ,~. ',- ' \>-"';
;',--Cf Cf(cf1t.y, Seal)
',. - ...,.......
ADJOURNMENT:
The rreeting was adjourned at 9:59 p.m.
s
~C-~'-4
: . Giese er
I
----------------------------------------------------------------
PAGE 77
RffiULAR MEETING - APRIL 25, 1988
VOLUME 23
I. CALL TO ORDER:
The April 25, 1988, regular rreeting of the Seward City
Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMJNY:
the flag.
Councilm2mber Hilton led the pledge of allegiance to
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, Jlbll and O'Brien (SimJ.tis
arrived at 7:36 p.m., and ~ehan was
excused)
I
Present also: City Manager Schaeferrreyer, City Attor-
ney Arvidson, Engineering & Utili ties
Manager Diener, Port Marketing Director
Gates, Administrative Assistant Martin,
Parks & Recreation Director Yanez,
Police Chief Bencardino and City Clerk
Murphy
( CSE154621 )
78
PAGE 78
REGULAR MEETING - APRIL 25, 1988
VOWME 23
IV. APPROVAL OF MINUTES:
HILTON IDVED TO APPROVE THE APRIL 11, 1988, MINUTES AS
WRI'ITEN; THE MJI'ION WAS S~ED BY NOLL AND CARRIED UNANIMJUS-
LY.
V. APprovAL OF REGULAR MEETING AGENDA:
GIESELER MJ\lED TO MEET IN EXEr:UTIVE SESSleN IMMEDIATE-
LY FOLLCWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISaJSS
MATTERS UNDER LITIGATION; THE MarION WAS SEr:ONDED BY O'BRIEN AND
CARRIED UNANIMJUSLY.
Schaeferrreyer stated that he VoDuld be asking the
Council to postpone action on proposed Ordinance No. 603 (Agenda
Item JIb. XI (B) (1) and proposed Resolution JIb. 88-041 (Agenda
Item No. XI (C) (2). However, public hearings on these items
VoDuld go forward as scheduled.
HILTON MJVED TO APPROVE THE REGULAR MEETING AGENDA;
THE MJI'ION WAS S~ED BY NOLL AND CARRIED lJNANIM)USLY.
VI. BOROUGH ASSEM3LY REPORI':
Kenai Peninsula Borough Assembly Representative
Jonathan Sewall gave a verbal report of the April 12, 1988,
special rreeting of the Assembly.
NOI'E: SimJ.tis arrived and participated in the remainder of the
meeting.
VII. CITIZENS I C<M1ENI'S eN AGENDA ITEMS NOr SCHEDULED FOR
PUBLIC HEARING:
CITIZENS' DISCUSSION: DON SUTHERLAND, 225 Sixth Avenue, spoke in opposition
(Don Sutherland/ to proposed Resolution No. 88-035 (North Pacific Rim Housing
Opposed to R88- Authority Cooperation Agreerrent for a Mutual Help Harre ONnership
035) program). He stated that there are currently within the city 55
housing units under a NPRHA subsidized rent program, with a real
property value of $1.5 Million. He noted that this existing
housing has been rerroved from the property tax roles, adding
that, had it been in private ownership, property taxes totalling
$12,000 would have been paid in 1987. In contrast, NPRHA had
paid no taxes and no payrrents in lieu of taxes. SUtherland
stated that it was not fair that property tax payers should have
to subsidize any additional low incorre housing developrrents.
CITIZENS' DISCUSS:
(Kei th Campbell/
Opposed to R88-
035)
KEITH CAMPBELL, 1910 Forget Me Not Circle, spoke in
opposition to proposed Resolution JIb. 88-035. He stated that
any private builder or developer pays substantial building
permit fees to finance the city's building inspection program.
He questioned allowing HUD or NPRHA an exemption from the
building codes and building inspections. Carrpbell stated that
r CSE1'>4811 ]
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REGULAR MEETING - APRIL 25, 1988
VOllJME 23
just because this was a federally sponsored project did not
guarantee that it would be a quality project.
MIKE WILEY, 550 Railway Avenue, spoke in favor of
proposed Resolution No. 88-035. He stated that the future will
bring growth to the community, adding that many of those rroving
to Seward will fall into the "low incorre" group. He also asked
that any councilnember having a possible conflict of interest
abstain from voting.
VIII.
APPROVAL OF CONSENT CALENDAR:
GIESELER requested the addition of proposed Resolution
No. 88-047 (requesting business mail delivery and installation
of mail drop boxes in Seward) as Consent Calendar Item No.8.
AMENDED;
MXlSLY.
SIMUTIS MJIlED TO APPROVE THE CONSENT CALENDAR AS
THE MJTleN WAS SECONDED BY DUNHAM AND CARRIED UNANI-
The following actions were taken:
1. Resolution No. 88-045, recognizing city errployees
for their extraordinary efforts during April snowstorms, was
approved and filed;
2. Resolution JIb. 88-046, approving a contract by
and between the city and the Kenai Peninsula Borough for "911"
EIrergency Telephone Corrmunication System Services, was approved
and filed;
3. April 11, 1988, invoice from Vbhlforth, Flint &
Gruening for legal services through March 31, 1988, totalling
$2315.50, was approved for payrrent and filed;
4. October 1987 invoice from HTGP&B for legal
services totalling $15,533.60, was approved for payrrent and
filed;
5. Application for permit for garres of chance and
skill as filed by SEWARD EMBLEM CLUB #250 was filed without
objection;
6. April 19, 1988, rrerrorandum from Administrative
Assistant Kerry Martin concerning DOT/PF plans for Exit Glacier
Road was noted for information and filed;
7. April 18, 1988, rrerrorandum frcm Engineering &
Utilities Manager E. Paul Diener concerning change orders to the
Sarrwhan contract for prison construction as follows was noted
for information and filed:
#133 - Providing for the reV1Slon of the ceiling
height in Building #4 Control Room and Corridor (+$3828);
#134 - Providing for a deletion of pistol lockers
(-$525);
7q
CITIZENS' DISCUSS:
(Mike Wiley/ In
support of R88-
035)
PERSONNEL/RESO:
COMMUNICATION/RESO
CON- 142-: ("911"
Service)
C.ATTY:
C.ATTY:
GAMES OF CH & SKL:
CON- IS"
( CSE154823 1
80
USPO/RESO:
PUBLIC HEARINGS:
(Library Trans.)
"
PAGE 80
REGULAR MEETING - APRIL 25, 1988
VOWME 23
#135 - Providing for change in floor covering from
vinyl tile to type C-l carpet (+$975);
#136 - Providing for installation of J type fluores-
cent light fixture in Rocm 1-120 (+1530);
#138 - Providing all labor, equipment and materials to
rerrove dowels installed for relocating wall and install
dowels at original plan location (+$2624);
#139 - Relocating two closed-circuit TV carreras to
monitor doors (+$2325);
#143 - Providing survey notes and computations to show
COIIpaI"ison to Entry/Service road prior to and after road
was utilized for flood repairs (+$680);
#144 - Providing tenporary rreasures to prevent flood-
ing of Building No. 3 during the winter of 86/87 (+3750);
#145 - Installing 10" schedule 40 pipe at Service Road
to serve-- as a culvert and constructing additional swales
(+$4260);
#146 - Providing for additional electrical work per
proposal #71 (+$7100);
#147 - Providing equir;ment, materials and labor for
TIOVing manhole and pipe frcrn service road area (+$1549);
#148 - Providing for better drainage than original
plan provided (+$6500); and
#149 - Extending rental on additional office space
frcrn January 17 to February 17 (+$2555);
and
8. Resolution No. 88-047, urging the U. S. Post
Office to initiate business mail delivery and the installation
of mail drop boxes in the city of Seward, was approved and
filed.
IX. PUBLIC HEARINGS:
A. Notice of public hearing, as posted and published
by law, concerning the proposed transfer of library assets and
obligations from the Seward Corrmunity Library to the city was
noted and the public hearing was opened. Gieseler noted that
the real property to be transfer consisted of the Library Site
(Lots 38, 39 and 40, Block 8, ars). In addition, the agreement
called for the transfer of the Library's beneficiary interest in
the SWetman property (Deed of Trust Note on the South one-half
of Lot 6 and all of Lots 7 and 8, Block 16, OTS).
KEVIN O'CCNNOR, 521 Sixth Avenue, and DOUG CAPRA, 212
Resurrection Boulevard, both representing the Corrmunity Library
Board, gave the Council sorre historical background concerning
the Library. O'Connor stated that the Library has been in
existence for over 50 years and has been in its present location
since 1964. The Board had approached the city as part of its
long range plan. O'Connor stated that the Corrmunity Library
needs to grow with the community, and placing the Library under
the city administration VoDuld assure its future. O'Connor and
Capra asked that the Council rerrove any reference to the Swetman
( CSE154824 1
I
I
I
PAGE 81
VOWME 23
RffiULAR MEETING - APRIL 25, 1988
property from the Transfer Agreerrent. Capra stated that the
proceeds fran this Deed of Trust Note VoDuld help the Library
Association continue to finance a scholarship. In addition,
noney was needed to continue with supplemental historical
projects and as seed noney for fund raising projects. He stated
that it was in the city's best interest to have an active
Library Association and suggested that the incarre from the Jlbte
VoDuld assure its continued success as an organization.
JIb one else appeared in order to be heard and the
public hearing was closed.
B. Notice of public hearing, as posted and published
by law, concerning the proposed acquisition of Lot 1, USS 3294;
and Alaska State Land Survey #76-69 (Seward Plat #77-8),
excepting therefrom Fourth of July Creek Tracts A-E (Seward Plat
#84-6) and Spring Creek Co=ectional Facility Site, Parcel A
(Seward Plat #84-12) from the Kenai Peninsula Borough was noted
and the public hearing was opened; no one appeared in order to
be heard and the public hearing was closed.
C. Notice of public hearing, as I.XJsted and published
by law, concerning the proposed disposition of a proposed school
site (Lot 8A, Fort Rayrrond Subdivision, Replat #1; and Lot 1,
Jesse Lee Heights Subdivision Addition #2) to the Kenai
Peninsula Borough was noted and the public hearing was opened;
no one appeared in order to be heard and the public hearing was
closed.
D.
amendrrents to
and published
opened.
Notice of public hearing concerning the proI.XJsed
the Chugach Alaska Corporation lease, as posted
by law, was noted and the public hearing was
CHRIS GATES, Director of Marine Marketing for the city
of Seward, stated that the addendum before Council represented
nonths of I.XJst lease negotiations with Chugach Alaska Corpo-
ration. He noted that both the lease and the addendum had been
signed by CAeI. Gates reviewed for the Council the substantive
changes which the addendum VoDuld make to the lease: 1) The bank
financing the developrent VoDuld be allowed to operate the
facility under the terms of the lease if CAeI should default; 2)
CAeI could withdraw from the lease if, after June 1, 1989, it
has not received all essential permits; and 3) sorre definitions
of insurance coverage VoDuld be altered. Gates noted that the
city's insurance adjuster felt that the insurance language
changes were actually advantageous to the city. In response to
a question fran O'Brien, Gates stated that the addendum VoDuld
not allow the subordination of the city's rights to the proper-
ty.
MIKE CHITTICK, President of Chugach Alaska Corpo-
ration, thanked the Mayor and Council, the City Manager and
Chris Gates for their cooperation in negotiating the lease and
81
PUBLIC HEARINGS:
(City/Borough
Land exchange)
PUBLIC HEARINGS:
(City/Borough
Land exchange)
PUBLIC HEARINGS:
(CACI Lease
Amendments)
( C SEl54825 )
22,
PARKING/SBH/ORD:
(SBH Parking
Regulations)
PAGE 82
REX3ULAR MEETING - APRIL 25, 1988
VOLUME 23
getting to "where we are today". He stated that CAeI had
corrmitted to this project in January, and since that tirre, CAeI
had finalized its financing for the $13 Million project and was
noving aggressively in all other aspects of the project. He
stated that, weather permitting, CAeI planned to break ground
mid to late May, with a planned "start up" early next surrmer
(1989) .
GIESELER thanked Chittick for his comrrents and stated
that the city is excited about the project and ready to work
with CACI to make ita success.
JIb one else appeared in order to be heard and the
public hearing was closed.
X. PRESENTATIONS WITH PRIOR NaI'ICE ONLY:
None
XI. ORDINANCES AND RESOlllTleNS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactrrent:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled :
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ESTABLISHING A LIBRARY
DEPARI'MENT AND PRCJI1IDING FOR THE OPERATION
OF PUBLIC LIBRARY FACILITIES.
Notice of public hearing as I.XJsted and published 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 KJ\1ED TO POSTPCNE ACTleN ON PROPOSED ORDINANCE
NO. 603 UNTIL MAY 9, 1988; THE MJTleN WAS SEr:ONDED BY NOLL AND
CARRIED UNANIM:XJSLY.
2. Copies having been made available to the
public, Gieseler noted by ti tIe only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AMENDING SECTION 14-85.1
OF THE SEWARD CITY CODE REGUIATING PARKING
WITHIN THE SEWARD MUNICIPAL BOAT HARBOR.
( CSE 1')4826 )
I
I
I
83
PAGE 83
REGULAR MEETING - APRIL 25, 1988
VOIDME 23
Notice of public hearing as posted and published by
law was noted and the public hearing was opened.
PETE AIJI'HIER, Diarrond Boulevard, stated that he was
disappointed that the Council had not held a public hearing at a
tirre when those rrost affected could be present to testify.
MIKE BRITTAIN, Small Boat Harbor, stated that the
Council should be interested in serving the local people first
rather than serving one day tourists. He stated that the
proposed parking plan VoDuld penalize boat owners and those who
VoDrk in the Harbor. He added that he was not sure the proI.XJsed
plan was enforceable.
ANNA YOUNG, Small Boat Harbor, asked if the city had
considered a permit program for parking in the Harbor.
CLEM M:CANN, 503 Second Avenue, stated that he felt
the city was getting away from the original purpose to be served
by a municipal boat harbor. He stated that Kerry Martin and the
Council have VoDrked very hard at solving the parking problem in
the Boat Harbor, but he felt that this proposal was not the so-
lution.
GIESELER noted a letter from Arlene Dauven, Anchorage,
and read into the record the following paragraph:
In conclusion, I hope that the city
fathers do not create such an adverse affect
(sic) which will be the catalyst to bring
the boat owners together to stand for their
rights. In doing so one of the rrethods they
VoDuld use would be to lobby Juneau to limit
spending or to put a IlUlch tighter control on
how rronies can be spent for the Harbor.
Gieseler also noted letters from Jarres and Donna Rexroat (op-
posed to parking plan) and Pam Oldow (noting that Kenai ,Fjords
Tours, Inc., would make parking adjacent to the A-Frarre avail-
able for its custorrers).
No one else appeared in order to be heard and the
public hearing was closed.
HILTON IDVED TO ENACT ORDINANCE NO. 604; THE MJI'ION
WAS SEOJNDED BY SIMIJTIS.
In response to a question from O'Brien, Schaeferrreyer
stated that the administration had been working on finding a
solution to the Harbor's parking problems for a number of
rronths. He added that there had been extensive involvement with
the Planning Corrrnission, including a public hearing last winter
on the Harbor Master Plan which included a parking plan similar
to the one the administration proposed to iIrplement. He stated
( CSE 154821 1
84
PAGE 84
REGULAR MEETING - APRIL 25, 1988
VOLUME 23
that the plan as presented by the administration was the best it
could provide with the resources at its disposal. 1\dministra-
tive Assistant Martin stated that a total of seven handicap
parking spaces VoDuld be provided throughout the Harbor area. In
addition, the restriping in the parking lot would provide for
angle parking. He noted that, following the reorganization of
the parking plan in the Harbor, over 500 parking spaces would be
available.
Simltis stated that the idea of initiating a permit-
ting system for those living in the Srrall Boat Harbor was
attractive, but left too IlUlch room for abuse. She stated that
she VoDuld like to see action postponed in order to provide for
rrore public input.
Dunham stated that providing reserved parking for
certain individuals VoDuld cause as many problems as the proposed
plan. She stated that there was no way to please everyone, and
the City had to atterrpt to serve as many uses as I.XJssible in the
Harbor.
Gieseler stated that he had asked the administration
to address the parking problem in the Srrall Boat Harbor. He
stated that the plan proI.XJsed by the administration was fair and
equitable, and he noted that, if it did not VoDrk, it could
always be changed at a later date. He took exception to sorre of
the testirrony given by the public, stating that when one decides
to live on a boat in the Harbor, one gets only the rights and
privileges that go with payrrent of the slip rental. He noted
that when Seward residents go to Anchorage to shop, not only
IlUst they fight for a parking space, but (in most cases) they
IlUlSt pay for the right to park. In contrast, parking in the
Srrall Boat Harbor has always been free. Gieseler stated that he
wants to see people carre to Seward and enjoy themselves, but he
urged the visitors to work with the city, not against it. He
objected to SimJ.tis I suggestion that action be postponed.
O'Brien stated that he was a bit concerned about
irrplerrenting a plan to solve a seasonal problem. Schaeferrreyer
stated that the plan VoDuld be "year-round", but the city VoDuld
have .no regular parking enforcerrent personnel on the payroll
during the winter rronths. In response to a question frcro Jlbll,
Schaeferrreyer stated that an RFP for the striping of the parking
lots was out now, but the key factor involving tirre was ordering
the signs.
Hilton stated that the plan was a good one, and no one
VoDuld be outrageously inconvenienced by it. He added that he
VoDuld prefer a seasonal plan, but could see no point in I.XJstpon-
ing action on the ordinance.
SIMlJI'IS MJVED TO POSTPONE ACTION eN THE ORDINANCE
UNTIL MAY 9, 1988; THE MJI'ION WAS SECCNDED BY DUNHAM AND FAILED
(CSE1548lB )
I
I
I
PAGE 85
REGUIAR MEETING - APRIL 25, 1988
VOIlJME 23
TO CARRY WITH DUNHAM AND SIMUTIS VarING "YES" AND GIESELER,
HILTCJI'il, NOLL AND O'BRIEN VOTING "NO".
THE QUESTION WAS CALLED eN THE MAIN MJI'ION AND ORDI-
NANCE NO. 604 WAS ENACTED BY UNANIMJUS VarE OF THE COUNCIL.
(Note: Enactrrent of the ordinance gave the administration the
authority to designate certain areas in the Boat Harbor as
"Short term", "Interrrediate term", "Long term", or "Loading
Zone", and gave the authority to inpound vehicles parked in
violation of the code. Initiation of the parking plan, however,
is an administrative function and does not require the approval
of Council.)
RECESS: The rreeting was recessed at 8:55 p.m. and reconvened at
9:00 p.m.
C. Resolutions:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTleN OF THE CITY CDUNCIL OF THE CITY
OF SEWARD, ALASKA, TO ENTER INTO A COOP-
ERATION AGREEMENI' WITH THE NORI'H PACIFIC RIM
HOUSING AUTHORITY.
Murphy noted that a notion for approval of proposed Resolution
JIb. 88-035 was on the floor, postponed fran the April 11, 1988,
rreeting. Gieseler noted an April 22, 1988, letter from NPRHA
asking that Council postpone action once again until May 9.
Hilton stated that he could not believe that any new
information could be forthcoming that VoDuld make him change his
mind about this proposed agreerrent. He stated that he could be
in favor of a subsidized rental program, but not an ownership
program.
In response to a question from Jlbll, Schaeferrreyer
stated that North Pacific Rim Housing Authority had not acknowl-
edged the city attorney's April 14, 1988, letter (hand
delivered) setting forth the concerns expressed by the Council
and the public at the April 11 rreeting. Noll stated that he was
a "quasi-supporter" of this type of project but agreed with sorre
of the criticisms from the public and the Council. He stated
that he could not support the agreerrent in its present form.
SimJ.tis stated that she continued to object philoso-
phically to the project.
Dunham stated that she supported subsidized housing
projects and was in favor of this one. She asked Mr. Chittick
85
NPRHA/RESO:
(88-035 FAILED)
( (S1:154829 1
86
EQUIPMENT/FINANCE/
CON- '-1'\ /RESO:
(Lease/Purchase
agrmt w/ Rainier
Bank Alaska -
Hasp. Computer
& Utile Truck)
FOURTH OF JULY CRK/
LEASE/RESO:
(Amdmts to CACI
Lease apprvd)
PAGE 86
REGUI..Z\R MEETING - APRIL 25, 1988
VOllJME 23
to ask NPRHA to VoDrk on devising an agreerrent that would rreet
with Council approval.
0' Brien asked the chair to rule on any conflict of
interest which might arise out of his interest in rental prop-
erties in town. Gieseler ruled that no oonflict existed.
THE QUESTleN WAS CALLED AND THE MJI'ION TO APPROVE
RESOLurION NO. 88-035 FAILED WITH DUNHAM VOTING "YES" AND ALL
OTHER COUNClIMEMBERS VOTING "NO".
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOWTleN OF THE CITY OJUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING THE TRANSFER OF
LIBRARY ASSEI'S AND OBLIGATIONS TO THE CITY.
DUNHAM MJ\1ED TO POSTPONE ACTleN ON PROPOSED RESOLUrION
NO. 88-041 UNTIL MAY 9, 1988; THE MJTleN WAS S~ED BY SIMlJI'IS
AND CARRIED UNANIMJUSLY.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING THE EXECUTION
OF AN mUIPMENT LEASE/PURCHASE AGREEMENT BY
AND BEIWEEN THE CITY AND RAINIER BANK
AIASKA, N.A.; AND PROVIDING FOR RELATED
MA'ITERS .
SIMUTIS IDVED TO APPROVE RESOLUTION NO. 88-042; THE
MJI'ION WAS S~ED BY NOLL.
Hilton noted that the corrputer equifXlEIlt to be fi-
nanced was being purchased for the Hospital and asked if his
position as the Hospital's Assistant Administrator represented a
conflict of interest. Gieseler ruled that no conflict existed.
THE QUESTION WAS CALLED AND THE RESOWTleN WAS M?-
PROVED BY UNANIMJUS VOTE OF THE COUNCIL.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOWTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING AMENDMENTS TO A
LEASE OF CITY-avNEQ REAL PROPERTY BY AND
BETWEEN THE CITY AND CHUGACH ALASKA CORPO-
RATION.
( CSE154830 1
I
I
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PAGE 87
REGULAR MEETING - APRIL 25, 1988
VOLUME 23
O'BRIEN MJVID TO APPROVE RESOLUTleN NO. 88-043; THE
IDTIeN WAS SEr:ONDED BY SIMUTIS.
Noll asked the chair for a ruling on a possible
conflict of interest on his part. He stated that Suneel Alaska
may handle wood chips from the sawmill on its conveyor. (Noll
is Vice President of Suneel.) Gieseler ruled that no conflict
existed.
THE QUESTION WAS CALLED AND THE IDTION CARRIED BY
UNANIMJUS VOTE OF THE COUNCIL.
5. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZIN3 AN EXCHANGE
OF CITY AND BOROUGH IANDS.
SIMUTIS IDVED TO APPROVE RESOLUTIeN NO. 88-044; THE
MJI'IeN WAS SEr:ONDED BY HILTCN AND CARRIED UNANIM:XJSLY.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. HILTON MJVED TO APPROVE CHANGE ORDER NO.1, FOR
AN AMOUNT NOI' TO EXCEED $350,000, TO THE DEPAR'IMENT OF TRANSPOR-
TATION AND PUBLIC FACILITIES crnSTRUCTION MANAGEMENT CCNI'RACT;
THE MOI'ION WAS SEr:CNDED BY NOLL AND CARRIED UNANIM:XJSLY.
B. GIESELER APPOINTED MARGARET BRANSON TO BE THE
CITY'S PRIMARY REPRESENTATIVE AND BETH POKORNY THE CITY'S
ALTERNATE REPRESENTATIVE TO THE COOK INLET AQUACULTURE AS80-
CIATIeN BOARD OF DlREX:TORS. Council concurred.
C. GIESELER APPOINTED COUNCII1>1EMBER SIMlJI'IS TO BE
THE COUNCIL I S REPRESENTATIVE TO THE SEWARD ENHANCEMENT ASSO-
CIATION BOARD OF DlREX:TORS.
XIV. CITY MANAGER REPORI'S:
SCHAEFERMEYER distributed a budget calendar to the
Council and scheduled a work session for Tuesday, May 3, 1988,
beginning at 7:00 p.m., in order to present the FY 1987 audit
for Council review and to discuss the proposed FY 1989 city
budget.
GIESELER appointed SimJ.tis to chair the Evaluation
Corrmittee to review the performance of the manager, clerk and
attorney.
87
DEEDS & EASEMENTS/
RESO: (City/Bar.
Land Exchange
Apprvd. )
CON- ~ (Change
Order No. 1 to
DOT / PF ConstructioJ
Mngmt Cant. aprvd)
ClAA: (Branson &
Pokorny apptd to
Board)
SEWARD ENHANCEMENT
ASSOC: (Simutis
apptd to Board)
(CSE154831 )
88
PAGE 88
REGULAR MEETING - APRIL 25, 1988
VOllJME 23
XV. COUNCIL DISCUSSION:
0' BRIEN suggested that the city imrrediately post the
Harbor parking lots indicating when new regulations will be
enforced. He also objected to the delay in receiving the
budget. He stated that he VoDuld not countenance another delay.
NOLL noted a letter from Adjutant General Schaefer
regarding an upcoming visit from the Navy to review the eleven
or so ports in the running for Navy Horreporting status.
GIESELER thanked Noll for his part in spearheading the
Navy Horreporting effort. He also noted that several employees
of the Seward Police Departrrent had graduated from an Etrergency
Trauma Training class. Gieseler then explained that his oppo-
sition to Resolution JIb. 88-035 (NPRHA project) was based on a
State Attorney General's opinion that agreerrents exempting such
housing from taxation were not legal in the state of Alaska. He
added that, once the Legislature enacts legislation allowing
such agreements, he VoDuld be happy to change his vote. Finally,
Gieseler noted that the bill expanding the Alaska Railroad Board
of Directors VoDuld probably not make it through the legislature,
but he assured everyone that this was not a dead issue with him.
He publicly thanked Senator Kerttula and Representative Cato for
their efforts in the bill's behalf and noted a letter from
Senator Kelly urging the Governor to appoint a Seward resident
to the Board when a seat becorres available this fall.
XVI. CITIZENS' DISCUSSION:
KEITH CAMPBELL, Seward General Hospital administrator,
urged the Council to instruct the City Manager to write a letter
or telegram in support of SB 461. This bill would put back into
place each party's (hospital and physician) liability in rredical
malpractice suits as they existed prior to the Court's recent
ruling. Gieseler instructed Schaeferrreyer to write such a
letter.
BOB VAIDATTA, 528 Fifth Avenue, questioned the place-
rrent of city-impounded vehicles outside the city limits.
KEVIN 0 I CCNNOR, President of the Chamber of Comrerce,
corrrrented on the success of the 1988 Seward Expo in Anchorage.
He stated that one recurring =rplaint from visitors to Seward
was the state of the public restrooms on the Greenbelt and asked
if they could receive nore attention this season.
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' cn-1MENI'S:
SIMUTIS asked if Harbor office hours were to be
extended this surrrrer. Schaeferrreyer stated that the proposed
Harbor renovation VoDuld provide 24-hour access to the restroans
and showers; however, the bids for the renovation had just been
opened and the low bid was approximately twice the engineer's
estimate for the project. Schaeferrreyer stated that, in any
( CSE154832 ]
I
I
I
89
PAGE 89
REGULAR MEETING - APRIL 25, 1988
VOLUME 23
case, the city did not intend to hire a SUIllller attendant this
year for the evening hours.
GIESELER apologized to Counci1rrember Dunham for not
recognizing and thanking her for her contributions to this
year's Expo. In response to a question concerning the proposed
ARR lease to the Yacht Club, Schaeferrreyer stated that ARR has
published a notice concerning the lease and the Planning Cornnis-
sian has approved a conditional use permit.
XVIII .
ADJOURNMENT:
The rreeting was adjourned at 9:45 p.m. and, following
a brief recess, the Council reconvened in Executive Session to
discuss pending litigation.
~~-&Ud~
Har . Gieseler
Mayor
-.-
,: .
" EAL
~
: .
"
......... .
?. '.., ..'" :
~ ",.~~". ~"fJ",,",.
\U'r ,..:"..~~..., ~*-
-c';~~{:-1"f OF ~\.~
~/~ J..
- )'1';">7;"
----------------------------------------------------------------
PAGE 89
REGULAR MEETING - MAY 9, 1988
VOLUME 23
I. CALL TO ORDER:
The May 9, 1988, regular rreeting of the Seward City
Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM:lNY:
Councilrrember ~han led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and CouncilIlembers Hil-
ton, ~ehan, O'Brien and Simutis
(Dunham and Noll were excused)
( CSE154833 1
90
CITIZENS DISC:
PAGE 90
REGULAR MEEI'ING - MAY 9, 1988
VOLUME 23
Present also: Interim City Manager Schaefermayer,
City Attorney Arvidson, Manager of
Engineering and Utilities Diener, Parks
and Recreation Director Yanez, Port
Marketing Director Gates, Administra-
tive Assistant Martin, Finance Director
Peirson, Police Chief Bencardino and
City Clerk Murphy
IV. APPROVAL OF MINUTES:
O'Brien noted a correction to Page 88 of the minutes
and requested that the phrase "that the lots will be closed for
striping" be substituted for the phrase "when new regulations
will be enforced".
SIMUTIS M)VED TO APPROVE THE APRIL 25, 1988, MINUTES
AS AMENDED; THE MJI'IeN WAS SECCNDED BY HILTON AND CARRIED
UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
HILTON MJVED TO MEEI' IN EXECUTIVE SESSION IMMEDIATELY
FOLlDWING THE MEEI'ING IN ORDER TO DISCUSS PENDING LITIGATION;
THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
Schaeferrreyer requested the addition of two resolu-
tions under Agenda Item XI (C): 3) Proposed Resolution No.
88-055, authorizing the purchase of hot water boilers for the
Spring Creek Correctional Center without full utilization of
city bid procedures; and 4) Proposed Resolution JIb. 88-056,
reallocating remaining Federal Revenue Sharing Funds; and the
addition of a "New Business" item [No. XIII (B)] Proposed
striping contract for city streets and parking lots.
MEEHAN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MJI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANI-
MJUSLY.
VI. BOROUGH ASSEMBLY REPORI':
Kenai Peninsula Borough Assembly Representative
Jonathan Sewall was not present and no report was given.
SPECIAL ITEM:
Gieseler introduced Spring Creek Correctional Center
SUperintendent Dick Schoeffel and welcorred him to town.
VII.
CITIZENS' Ca1MENTS eN AGENDA ITEMS NOr SCHEDULED FOR
PUBLIC HEARING:
BRAD SN(w)EN, 525 Sixth Avenue, spoke in support of
Don Holland's request to allow liquor establishrrents to open at
8:00 a.m. on Sunday, July 3, 1988. ()
_ CSE154834 .
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RffiULAR MEETING - MAY 9, 1988
VOLUME 23
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUTIS MJIJED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED; THE IDI'IeN WAS SECONDED BY HILTON AND CARRIED UNANI-
MJUSLY. The following actions were taken:
1. Resolution No. 88-048, authorizing participation
in the Fiscal Year 1989 Day Care Assistance Program, was ap-
proved and filed;
2. Resolution JIb. 88-049, in support of the Alaska/
Siberian connection and proposed Friendship Flights between
Alaska and the Soviet Union, was approved and filed;
3. Resolution JIb. 88-051, awarding a contract for
gravel removal and maintenance at Fourth of July Creek, was
approved and filed;
4. Resolution No. 88-052, approving a short term
lease of city-owned property to AKCON, Inc., was approved and
filed;
5. Resolution No. 88-054, awarding a contract for
Harbormaster Building irrprovements, was approved and filed;
6. May 5, 1988, rrerrorandum from Administrative
Assistant Kerry Martin requesting approval of an assignrrent of
lease for security purposes (Boardwalk Site No.8), as requested
by Don and Pam Oldow and Jack and Sheila Scoby, was approved and
filed;
7. May 5, 1988, rrerrorandum from Administrative
Assistant Kerry Martin requesting authorization for the Seward
Enhancerrent Association to erect welcoming banners in the Small
Boat Harbor and the DcMntown Business District was approved and
filed;
8. April 25, 1988, rrerrorandum from Administrative
Assistant Martin requesting Council consent to establish a cash
clearing account to accept and distribute contributions to the
Seward Enhancement Association was approved and filed;
9. Proclamation welcoming the Ravenwood Elementary
School Fifth Grade Class to Seward May 19-20, 1988, was noted
for information and filed;
10. Proclamation designating May 15-21, 1988, as
CLEAN UP AWARENESS WEEK and May 21, 1988, as SUPER SATURDAY was
noted for information and filed; and
11. May 2, 1988, rrerrorandum from Manager of Engineer-
ing and Utili ties Diener noting the following change orders to
the Sanwhan contract for prison construction was noted for
information and filed:
91
DAY CARE/GRANTS/
RESO:
AK/SIBERIAN CONI
RESO:
FLOOD CONTROL/RESC
RE-
/RESO:
HARBOR/CON-2~g /
RESO:
BOARDWALK LEASE:
SIGNS/SEWARD EN-
HNCMNT ASSOC:
SEWARD ENHANCEMNT
ASSOC:
PROCLAMATION:
PROCLAMATION:
CON - I 5'1:
(CSE154835 )
92
PAGE 92
REGULAR MEETING - MAY 9, 1988
VOUJME 23
#124 - Providing for rrodification of the grading
to interface curb and drainage at the APS building
(+$4,800) ;
#140 - Providing for installation of two roof
drain sand cast iron drain leaders at the southern
lower roof of the APS building (+$11,816);
#141 - Installing lateral structural bracing at
Building No.4 clerestory (+$25,236);
#142 - Providing for compensation for inpact and
increased material costs due to stop VoDrk order issued
on June 30, 1987 (+28,500);
#150 - Providing for a credit to restock lavatory
sink fixtures (-$6,685);
#153 - Providing a credit to delete vinyl shower
pan liners at 42 shower locations (-$5,763);
#154 - Providing for over excavation along west
side of the APS building, repair electrical fixtures
in oor/PF office, and over excavation at light I.XJle
base & installing approved fill to rreet conpaction
requirerrents (+$4,599);
#155 - Providing for installation of Z Purlins
for ridge line on Buildings 2, 3, and 4 (+$8,687);
#156 Providing for revisions of concrete
sidewalks, installing concrete stairs and handrails at
parking lots (+$5,500);
#157 - Providing power circuitry and nonitoring
for the day tanks (+$6,142);
#158 - Providing 120 V power circuit from panel
6N (+$699);
#159 - Providing for additional electrical VoDrk
(+$3,985);
#160 Installing one explosion proof smoke
detector in Room 5-001 (+$6,655);
#162 - Providing for additional striping of red
accent paint trim to the APS building and Buildings 2,
3, and 4 (+$10,000);
#163 - Providing for excavation of embankment
material from cul-de-sac area with specified backfill
material to be utilized (+$9,109);
( CSE154836 )
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REGULAR MEEI'ING - MAY 9, 1988
VOLUME 23
#164 - Providing for a watertight toggle switch
for dishwasher and additional control wires (+$1,085);
#165 - Providing for replacerrent of electrical
circuit breakers (+$832);
#8 - Providing all equipnent, materials and labor
for over excavation of silty sand material (+$67,122);
#68 - Providing for revised architectural draw-
ings (+$12,632);
#94 - Providing all labor, equiprrent and mate-
rials~ accorrplish RFP #15, RFP #27 and RFP #17
(+$13,967) ;
#106 - Providing for all electrical VoDrk per
DCVR's #599, 474, 685, 623, 615, 643, 168 and 346
(+$16,200); and
#137 - Providing for installation of steel column
enclosures (+$14,900).
IX. PUBLIC HEARINGS:
A. Public hearing on proposed Chugach Alaska lease
was cancelled.
B. Notice of public hearing as posted and published
by law regarding the proposed Fiscal Year 1989 city operating
and enterprise fund budgets was noted and the public hearing was
opened; no one appeared in order to be heard and the public
hearing was closed.
x. PRESENTATleNS WITH PRIOR NOTICE ONLY:
A. DON HOLLAND, 320 Sixth Avenue, Elks Club Manager,
asked Council to waive the city code provision which prohibited
opening of liquor establishrrents between the hours of 5:00 a.m.
and Noon on Sundays for one day only - Sunday, July 3, 1988 - so
that local bars could open at 8:00 a.m. every day of the holiday
weekend.
Arvidson stated that, since the ordinance specifically
provides for the hours of opening and does not allow liquor to
be served between 5:00 a.m. and Noon on Sundays, the only way to
grant Holland's request VoDuld be through an ordinance change.
He suggested that the Council consider arrending the Code to
allow the Council, by resolution, to waive the Noon opening on
special occasions. He stated that he would draft such an
ordinance for introduction at the next rreeting.
B. SUSAN FERGUSCN, representing Hendrix and Esslin-
ger, reviewed the Fiscal Year 1987 city audit. Following her
93
PUBLIC HEARING/
BUDGET:
CITIZENS DISC:
CITIZENS DISC/
AUDIT:
(CSE154631 )
94
PAGE 94
REGULAR MEETING - MAY 9, 1988
VOLUME 23
presentation, O'Brien asked what the Council could do to provide
a nore tirrely presentation of future audits. Schaeferrreyer
stated that Council has acted towards this goal by providing
more assistance to the Finance Director through establishment of
an Assistant Finance Director position. In response to a
question from Hilton concerning the definition of "tirrely",
Ferguson stated that an October 15 presentation was a good
target date.
XI. ORDINANCES AND RESOLUTleNS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactrrent:
LIBRARY/ORD:
1. Copies having been made available to the
public, Gieseler noted by title only a proI.XJsed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ESTABLISHING A LIBRARY
DEPAR'IMENT AND PROVIDING FOR THE OPERATION
OF PUBLIC LIBRARY FACILITIES.
Gieseler noted that public hearing on the proposed
ordinance had been conducted at the May 9 rreeting and requested
a notion from the Council.
HILTON MJVED TO ENACT ORDINANCE NO. 603; THE MJTION
WAS SEr:CNDED BY MEEHAN AND CARRIED UNANIMJUSLY.
C. Resolutions:
LIBRARY/RESO:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING THE TRANSFER OF
LIBRARY ASSETS AND OBLIGATIONS TO THE CITY.
MEEHAN MJVED TO APPROVE RESOLUTleN NO. 88-041; THE
MJI'IeN WAS SECCNDED BY SIMUTIS AND CARRIED UNANIMJUSLY.
U. S. NAVY (Homeportinq) / 2. Copies having been made available to the
RESO: public, Gieseler noted b1 title only a proposed resolution
entitled:
A RESOLUTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FROM
THE HARBOR RESERVE ACCOUNT FOR NAVY HCME-
PORI'ING ATTRACTIeN EFFORI'S.
l (Sf 154838 1
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PAGE 95
REGULAR MEETING - MAY 9, 1988
VOLUME 23
MEEHAN MJVED TO APPROVE RESOLUTleN NO. 88-053; THE
MJI'IeN WAS SECCNDED BY SIMUTIS.
Gates noted his May 9, 1988, rrerrorandum recorrmending
approval of a $10,000 appropriation for the Navy attraction
effort. He introduced Gerald Hansmire, a Makers, Inc., partner,
under contract to the city of Seward to provide technical
assistance in the attraction effort. In response to a question
fran O'Brien, Gates stated that the $2500 original contract with
Makers had resulted in an outline of the presentation document,
including cover design and layout. Hansmire stated that there
are currently 8 to 10 cities "in the running". He said that,
while he could not guarantee that Seward VoDuld be chosen to
harreport Navy vessels, he could make sure that Seward puts its
best foot forward.
THE QUESTION WAS CALLED AND THE MJTION TO APPROVE
RESowrION NO. 88-053 CARRIED UNANIMOUSLY.
3.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTleN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE
OF HOT WATER BOILERS FOR THE SPRING CREEK
CORRECTIONAL CENTER WITHOUT FULL UTILIZATION
OF CITY BID PROCEDURES.
O'BRIEN IDVED TO APPROVE RESOUlTION NO. 88-055; THE
MJI'IeN WAS S~ED BY MEEHAN.
Diener stated that it had recently been discovered
that the prison boiler system provided insufficient hot water
for the anticipated 200 prisoners due to arrive in June. He
said that city/state research into a solution for this problem
had resulted in this request for the purchase and installation
of an additional boiler in each building, with funds to carre
from the prison reserve account. Dick Schoeffel, SCCC Superin-
tendent, stated that the prison VoDuld be opening with a limited,
inexperienced staff. He said that the lack of sufficient hot
water VoDuld cause disciplinary problems.
Diener requested an arrendnent to the ordinance which
VoDuld set up a contingency account in the aITOunt of $8,400 for
this project.
0' BRIEN AND MEEHAN AGREED TO AMEND '!HE ORIGINAL mrION
BY ADDING A NEW SECTleN 4 TO THE RESOLUTION TO READ "THE CITY
MANAGER IS AUTHORIZED TO ESTABLISH A OJNTINGENCY ACCOUNT NOT TO
EXCEED $8,400" AND TO RENUMBER EXISTING SECTION 4 TO SECTION 5.
THE QUESTION WAS CALLED AND THE mrION 'It) APPROVE
RESOUlTION NO. 88-055, AS AMENDED, CARRIED UNANIM:XJSLY.
95
PRISON/CON- 300 /
RESO:
( CSEl54839 1
96
PAGE 96
REGULAR MEETING - MAY 9, 1988
VOLUME 23
FED.REV.SHRG/RESO: 4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOWTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, REALLCX:ATING REMAINING
FEDERAL REVENUE SHARING FUNDS.
HILTCN MJ\1ED TO APPROVE RESOWTION NO. 88-056; THE
MJI'IeN WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIMJUSLY.
RECESS: The rreeting was recessed at 8:45 p.m. and reconvened at
9:45 p.m.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
CLAIMS FOR DAMAGES: A. 0' BRIEN MJ\1ED TO APPROVE A CLAIM FOR DAMAGES
(Nelson-Denied) TOTALLING $600 AS FILED BY G. O. NELSON; THE MJI'ION WAS SECONDED
BY SIMUTIS AND FAILED TO CARRY WITH ALL PRESENT VOTING "NO".
STREETS/HARBOR/CON- B. SIMUTIS MJ\1ED TO AUTHORIZE THE CITY MANAGER TO
~ : AWARD A CCNI'RACI' TO ANCHORAGE LOr STRIPING FOR AN Af.DUNT NOT TO
EXCEED $17,102, AND A PROJECT CONTINGENCY OF $1,700, FOR A TOTAL
PROJEr:T AIDUNT OF $18,802; THE MJTleN WAS SEr:CNDED BY HILTON AND
CARRIED UNANIM:XJSLY.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER introduced newly appointed Assistant
Finance Director Rick Gifford.
He stated that he would be spending sorre tirre with
Arvidson to go over a proposal the city had received to develop
a number of Gateway Subdivision lots, and if successful in
negotiationS with the proposer, he VoDuld schedule the disposal
of property for public hearing on May 23. Schaeferrreyer noted
that the agreerrent with Alliance Bank has been finalized, the
Deed in Lieu of Foreclosure signed, by Gateway Ventures, and the
city is now in a position to aggressively market the property.
SCHAEFERMEYER asked the Council to schedule a VoDrk
session on the Enterprise budgets at sarre tirre prior to the May
23, 1988, meeting.
He also noted that the Grade School project is still a
possibility. He stated that the city expects to receive sane
funds from the State, but the project would require sorre addi-
tional noney from the Borough. Schaeferrreyer stated that Mayor
Gilman had indicated that he VoDuld request appropriation of sorre
(CSE154840 1
I
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97
PAGE 97
RffiULAR MEETING - MAY 9, 1988
VOLUME 23
additional revenue sharing noney to the school project and would
ask the Assembly to place on the October ballot a proposition to
appropriate approximately $4 Million in unexpended funds from
other school projects to the Seward school.
XV. COUNCIL DISCUSSION:
SIMUTIS stated that the banners approved under Consent
Calendar Item JIb. 7 represented just one of the projects the
Seward Enhancerrent Association planned for the surnrrer. She
stated that SEA is a very active and productive group.
HILTON asked about the status of the Senior /Corrrmmity
Center/Museum project. Diener stated that the revised architec-
tural drawings had been received on Friday. He stated that he
intended to present the proposed acquisition of the old post
office property for public hearing on May 23.
O'BRIEN requested that the Administration actively
pursue abaterrent of public nuisances around town. Schaeferrreyer
stated that the city has begun a survey and intended to pursue
this irnrediately.
GIESELER asked the clerk to schedule a budget VoDrk
session for MJnday, May 16, 1988, beginning at 7:30 p.m. He
also noted that the Trade Board would be rreeting in a VoDrk
session on May 10 beginning at 7:00 a.m. at Ray's Waterfront
Restaurant and invited Council to attend. Gieseler stated that
he had called a 9:00 a.m., May 11, rreeting of those interested
in putting together the festivities for the two visiting U. S.
Navy frigates. He also asked Schaeferrreyer to order the num-
bered building permits recomrended by Ferguson in the audit
report. Finally, Gieseler stated that ARRC personnel VoDuld be
in Seward on May 10 to finish the site preparation for the new
passenger train depot.
XVI. CITIZENS' DISCUSSION:
JOHN GlASSER, 405 Fourth Avenue, complained about the
lack of street signs throughout the conmunity and asked that the
city make this a priority.
BOB VAIDATTA, 528 Fifth Avenue, spoke regarding Navy
harreporting and asked to be included on any bidder lists the
city might have.
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS:
O'BRIEN asked for an explanation of the lack of street
signs. Schaeferrreyer stated that the weather had not been
conducive to installing the signs during the winter. Ho.vever,
he assured the Council that the signs VoDuld be ordered and
installed prior to July 1.
l CSE154841 ]
qo
vO
PAGE 98
REGULAR MEETING - MAY 9, 1988
VOLUME 23
GIESELER inforrred Mr. Valdatta that the city has no
bidder list but advertises public bids in the local newspaper.
XVIII.
ADJOORNMENT :
The rreeting was adjourned at 9: 18 p.m. and, after a
short recess, the Council reconvened in Executive Session to
discuss matters under litigation.
/ /
}' j / ,
.---/I;~J J tv/c;t'Lr
Linda S. rinphy, J
City~~~,.
A~~ ~~~: :~~;~~. .
'1" ~ I ";","'/'\
..'1"C\" '.. .fi......v
" - ".' '1;)',
J :, -~- \
" . ;', E :\ L : 0
8
'--.-1 ,_._.tt
,., ft_ .
'" "~" fi!J......
."?- .s .~~~(' 1 '\:......L"
CC:".). '.., \.. '?~
'" -'~"1 rf OF' p.\.i'--
~.e ,&<...4.-
Har . Gieseler
May
PAGE 98
SPEr:IAL MEETING - MAY 16, 1988
VOLUME 23
I. CALL TO ORDER:
The May 16, 1988, special rreeting of the Seward City
Council was called to order at 6: 37 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Counci1rrember O'Brien led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Hil-
ton, ~ehan, Jlbll and O'Brien (Dunham
and SimJ.tis were excused)
Present also: Interim City Manager Schaeferrreyer,
City Attorneys Arvidson and Seedorf,
and City Clerk Murphy
IV. APPROVAL OF AGENDA:
MEEHAN MJVED TO APPROVE THE SPEr:IAL MEETING AGENDA AS
PRESENTED; THE MJI'IeN WAS SEr:ONDED BY HILTCN AND CARRIED UNANI-
MJUSLY.
( CSE154842 ]
I
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C)o
,- ~
PAGE 99
SPEr:IAL MEETING - MAY 16, 1988
VOLUME 23
V. NEW BUSINESS:
A. NOLL IDVED TO MEET IN EXECUTIVE SESSION IMMEDI-
ATELy FOuruING THE CLOSE OF RffiULAR BUSINESS IN ORDER TO
DISCUSS THE SAM'lliAN OJNSTRUCTION CLAIM; THE r'OI'ION WAS SEr:CNDED
BY HILTON AND CARRIED UNANIM:XJSLY.
VI. CITIZENS' DISCUSSION:
None
VII. COUNCIL & ADMIN. RESPa'lSE TO CITIZENS' CCM1ENTS:
None
VIII.
ADJOURNMENT:
The rreeting was adjourned at 6:40 p.m., and after a
short recess, the Council reconvened in executive session in
order to discuss the Sanwhan construction claim.
~/: 4<:~d..
Har . Gieseler
Mayr
SE AL
PAGE 99
RffiULAR MEETING - MAY 23, 1988
VOIlJME 23
I. CALL TO ORDER:
The May 23, 1988, regular rreeting of the Seward City
Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM::NY:
flag.
Counci1rrember Jlbll led the pledge of allegiance to the
III.
ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
r :: Sf: 154843 )
100
CITIZENS' DISC.:
(K.Campbell)
PAGE 100
RmJLAR MEETING - MAY 23, 1988
VOLUME 23
ham, Hilton, ~ehan, Noll, O'Brien and
SimJ.tis
Present also: Interim City Manager Schaeferrreyer, Ci-
ty Attorney Arvidson, Parks and Recre-
ation Director Yanez, Port Marketing
Director Gates, Administrative Assis-
tant Martin, Finance Director Peirson,
Harbormaster Singleton , Administrative
Secretary Martin and Acting City Clerk
Jones
IV. APPROVAL OF MINUTES:
HILTON MJVED TO APPROVE THE MAY 9 AND MAY 16, 1988,
MINUTES AS WRITTEN; THE MJI'IeN WAS S~ED BY MEEHAN AND
CARRIED UNANIMJUSLY.
V. APPROVAL OF RmJLAR MEETING AGENDA:
Schaeferrreyer requested the addition of Agenda Item
XI (C) (12) - prOI.XJsed Resolution JIb. 88-070, authorizing the
purchase of a crane for the Harbor Departrrent and appropriating
funds.
HILTCN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MJTION WAS SEr:CNDED BY DUNHAM AND CARRIED UNANI-
MJUSLY.
VI. BOROUGH ASSEMBLY REPORl':
Kenai Peninsula Borough Assembly Representative
Jonathan Sewall was not present; he arrived later in the rreeting
and gave his report at that tirre. [SEE PAGE 104.]
VII. CITIZENS' COMMENTS ON AGENDA ITEMS Nor SCHEDULED FOR
PUBLIC HEARING:
KEITH CAMPBELL, 1910 Forget-~-Jlbt Circle, spoke
regarding legislative action on hospital liability and funding
for the Seward Elerrentary School. He was opposed to local
funding of the school and stated that it is the responsibility
of the Kenai Peninsula Borough and the School Board to carre up
with a funding plan.
VIII.
APPROVAL OF CONSENT CALENDAR:
Schaeferrreyer requested the addition of tv.D items to
the consent calendar as follows: #11 - May 23, 1988, rrerrorandum
requesting approval of assignrrent of lease for security purposes
to National Bank of Alaska (Lorz Lease - Lot 5, Block 1, Marina
SUbdivision); and #12 - May 23, 1988, rrerrorandum requesting
approval of a sublease of a portion of Lot 2, Block 1, Marina
Subdivision (Dale Clemens to Ludwig Pfleger).
( CSE 154844 1
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PAGE 101
REGULAR MEETING - MAY 23, 1988
VOLUME 23
AMENDED;
MJUSLY.
SIMJTIS MJIJED TO APPROVE THE CONSENT CALENDAR AS
THE MJTlOO WAS SECONDED BY MEEHAN AND CARRIED UNANI-
The following actions were taken:
1. Resolution JIb. 88-058, authorizing the purchase
of a brake lathe for the City Shop without full utilization of
city bid procedures, was approved and filed;
2. Resolution JIb. 88-063, authorizing signatures for
the city bank account and rescinding all previous resolutions in
conflict herewith, was approved and filed;
3. Resolution No. 88-064, in honor of the twenty-
fifth anniversary of the State Marine Highway System with
special recognition of the M/V Tusturrena, was approved and
filed;
101
PURCHASING/RESO:
FINANCE/RESO:
ALASKA, STATE OFf
RESO: (Ferry)
4. May 10, 1988, invoice from Vbhlforth, Flint & C. ATTY:
Gruening for legal services totalling $573.00 was approved for
payrrent and filed;
5. Invoices from HTGP&B for legal servlces as C. ATTY:
follows were approved for payrrent and filed:
November 1987 - $11,524.34
December 1987 - $23,027.37
January 1988 - $14,953.37
February 1988 - $27,553.09
March 1988 - $34,817.28
6. May 5, 1988, Finance Departrrent's list of ac-
counts payable totalling $444,699.93, was approved for payrrent
and filed;
7. Defense Agreerrent between the city and the state
of Alaska relating to construction claims seeking recovery for
alleged claims involved in the construction of the Spring Creek
Correctional Facility was approved and filed;
8. May 11, 1988, rrerrorandum from Manager of Engi-
neering & utilities E. Paul Diener concerning continued mainte-
nance of the fence gates and signing at the Lowell Tunnel
entrance was approved and filed;
9. May 16, 1988, rrerrorandum from Finance Director
Robert Peirson requesting approval of AIrendirent JIb. 1 to the
Seward Carrpground Managerrent Contract, eliminating the Fourth of
July campground frcrn the list of designated carrpgrounds, was
approved and filed;
ACCOUNTS PAYABLE:
LITIGATION/CON-
ILl"!
FLOOD CONTROL:
(Lowell Tunnel)
CON- -z:z.3:
10. Proclamation designating June 16, 1988, as PROCLAMATION:
"U.S.S. ALASKA DAY" was noted for information and filed;
( CSE 1",,, J
~,C2
RE-~;~3:
RE- ~XfS
PUBLIC HEARING:
(Budget)
PUBLIC HEARING:
(CACI Lease)
PUBLIC HEARING:
(Com. Center
Purchase)
PUBLIC HEARING:
(Cablevision
lease)
PUBLIC HEARING:
(Gateway Sub.)
PAGE 102
RffiULAR MEETING - MAY 23, 1988
VOLUME 23
11. May 23, 1988, rrerrorandum frcrn Administrative
Assistant Kerry Martin requesting approval of assignment of
lease for security purposes to National Bank of Alaska (Lorz
Lease - Lot 5, BLock 1, Marina Subdivision), was approved and
filed; and
12. May 23, 1988, rrerrorandum from Martin requesting
approval to sublease a portion of Lot 2, Block 1, Marina Subdi-
vision, (Dale Clemens to Ludwig Pfleger) was approved and filed.
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding the proposed Fiscal Year 1989 city
general fund and enterprise operating budgets was noted and the
public hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
B. Notice of public hearing as posted and published
as required by law regarding proposed lease of approximately 5.0
acres directly adjacent to the east of Chugach Alaska
Corporation's current leased lands wi thin the Industrial Zone at
Mile 4.75, Nash Road, to Chugach Alaska Corporation was noted
and the public hearing was opened; no one appeared in order to
be heard and the public hearing was closed.
C. Notice of public hearing as posted and published
as required by law regarding the proposed acquisition of real
property frcrn Esther Werner for the purposes of housing the
proposed Senior/Cormnmity Center/Museum, the real property being
nore particularly described as the Jlbrth 20 feet of Lot 36 and
all of Lots 37, 38 and 39, Block 15, Original 'lbwnsite of Seward
(336 Third Avenue), was noted and the public hearing was opened;
no one appeared in order to be heard and the public hearing was
closed.
D. Jlbtice of public hearing as posted and published
as required by law regarding the proposed lease of a :t1, 500
square foot parcel of unsurveyed land in the Seward Marine
Industrial Center at Mile 5.1, Nash Road, to Seward Cablevision
for the installation of a satellite receiving dish to receive
and distribute cable television to the Spring Creek Correctional
Center was noted and the public hearing was opened; no one
appeared in order to be heard and the public hearing was closed.
E. Notice of public hearing as posted and published
as required by law regarding the proposed sale of Lots 4-5,
7-13, 15-22, and 24-26, Block 1; Lots 1-4, 7-16, and 19, Block
2; and Lots 5 and 6, Block 6, Gateway Subdivision, to Clint
Hall, dba Hall Quality Builders, was noted and the public
hearing was opened.
CLINT D. HALL, dba Hall Quality Builders, Kenai,
Alaska, addressed the Council and displayed photographs of horres
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REGULAR MEETING - MAY 23, 1988
VOLUME 23
he has constructed in the past. He proposed building horres in
Gateway Subdivision which would give a look of uniformity to the
neighborhood. The average price of a horre VoDuld be
approximately $80,000, with an average living area of 1,100-
1,200 square feet. He stated that nost of the horres VoDuld be
3-bedroom, I-bath, with an attached garage and paved driveway.
Hall noted that he had been designated "Builder of the Year" on
the Kenai Peninsula and in the state of Alaska in 1986 and 1987.
He stated that the horres VoDuld qualify for FHA financing. He
added that he would warrant his harres against any defect caused
by negligence of the builder.
JOHN GILLESPIE, 604 Fifth Avenue, Seward, SI.XJke in
opposition to the way this agreerrent had carre about. He briefly
outlined the history of develor;rrent of the subdivision, includ-
ing his role as a principal in Gateway Ventures, developers of
the subdivision. He stated that he had been led to believe that
the local contractors and citizens VoDuld have an opportunity to
bid on this property. He objected to sole-sourcing the property
at $0.50 on the dollar to Hall.
No one else appeared in order to be heard and the
public hearing was closed.
F. Notice of public hearing as posted and published
as required by law regarding proposed lease of a one-acre parcel
located 100 feet to the east of the city substation property
line wi thin the Industrial Zone wi thin the Fourth of July Creek
Industrial Area (USS 4828) to Shoreside Petroleum was noted and
the public hearing was opened; no one appeared in order to be
heard and the public hearing was closed.
GIESELER NCYI'ED THAT, DUE TO AN ERROR IN THE PUBLISHED
LEGAL DESCRIPTION, AN ADDITIONAL PUBLIC HEARING mULD BE CON-
DUCTED AT THE JUNE 13, 1988, MEETING.
X. PRESENTATIONS WITH PRIOR NanCE ONLY:
A. JURIS MENDENBERGS, Breeze Inn MJtel, and FRANK CITIZENS' DISC.:
DIECKGRAEFF, 219 Marathon Drive, presented a proposal to pur-
chase certain lots wi thin the Gateway Subdivision from the city
of Seward. Mindenbergs read the proposal aloud and distributed
a copy to each Councilmember.
In response to a question from Hilton, Mindenbergs
stated that the developed properties VoDuld be listed both
locally and with a multiple listing service. He further stated
that the offer was being made at this tirre because of the
proposal before Council for action at this rreeting; however, no
tirre limit had been placed on this proposal. He stated that the
houses constructed under this proposal VoDuld be priced at
$80,000 to $100,000.
( CSEl54841 1
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Gieseler stated that both firms (MINDENBERGS/DIEX::K-
GRAEFF and HALL QUALITY BUILDERS) were well qualified and
suggested that the city negotiate with both.
NOl'E: Gieseler called for a short recess at the request of
Acting City Clerk Jones so that she could attend to a family
errergency. The rreeting was REr:ESSED at 8:08 p.m. and RECawENED
at 8: 18 p.m. with Administrative Secretary Annie Martin sitting
in for Jones.
In resI.XJnse to a concern expressed by Sinutis that the
the city's best interest VoDuld be served by irrrrediate develop-
rrent of the property, Dieckgraeff assured the Council that their
intention was to cormence construction as soon as I.XJssible.
VI. BOROUGH ASSEMBLY REPORT: [TAKEN OUT OF ORDER]
Kenai Peninsula Borough Asserrbly Representative Sewall
a=ived at this tirre and presented his report.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, REGARDING THE SALE OF
ALCOHOLIC BEVERAGES, AMENDING SEX:TICN 3-8 OF
THE SEWARD CITY CODE.
HILTON MJVED TO INTRODUCE ORDINANCE NO. 605; THE
MJI'ICN WAS SEr:CNDED BY SIMUTIS AND CARRIED WITH SIX "YES" VOTES
AND GIESELER VOTING "NO".
B. Ordinances for Public Hearing and Enactrrent:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A LEASE AGREE-
MENT WITH CHUGACH ALASKA CORPORATION, INC.
I
MEEHAN MJ\lED TO APPROVE RESOLUTICN NO. 88-050; THE
MJI'ICN WAS SECCNDED BY DUNHAM AND CARRIED UNANIMJUSLY.
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VOWME 23
2.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AMENDING ELECI'RIC RATES
BY REDUCING THE CUS'KMER CHARGE FOR ALL
LEVElS OF SERVICE.
O'BRIEN IDVED TO APPROVE RESOLUTICN NO. 88-057; THE
MJI'ICN WAS SEOJNDED BY MEEHAN.
~ehan and 0' Brien spoke in SUpI.XJrt of the reduction
in custorrer charges. ~ehan suggested cutting back on other
expenditures to offset the small decrease in revenue aITOunting
to less than one percent (1%) of the budget.
Gieseler stated that the utility had experienced
extraordinary other costs this fiscal year including approxi-
mately $115,000 required to settle the Lakey arbitration. In
addition, he stated that cutting custorrer charges VoDuld send the
wrong rressage to the state when the city requests funding for
upgrading the transmission line.
~han stated that the projected I.XJWer consurrption
increase of nine percent (9%) over the next few years VoDuld
offset this reduction.
In response to a question from Gieseler, Schaeferrreyer
stated that he did not foresee the city purchasing power from
the Chugach Alaska co-generation plant or CAe purchasing I.XJWer
fran the city. He added that the utility will need to make
major irtprovements and updates in the next five years. In
response to further questions from Gieseler, Schaeferrreyer
stated that it will becorre increasingly difficult for Seward to
tap any rroney fran the state, including the Railbelt Energy
Fund. He noted that future rronies received will probably be in
the form of a low interest loan rather than a grant and may
result in an increase of electric rates of $0.05 - $0.06 per kw.
In addition, Chugach Electric is currently considering a rate
increase to offset rising gas rates.
Simutis objected to the decrease, stating that rates
VoDuld likely increase again in the near future as expenses to
the utility rise.
In resp:mse to a question from Jlbll, Gates stated that
CAe planned to have its co-generation plant on line as soon as
possible and, in the rreantirre, would depend on diesel generation
to rreet its power needs. Gates stated that all permits for the
plant except the Coastal Zone Consistency Permit have been
obtained. Noll spoke in support of the proposed resolution.
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ELEC.DEPT/RESO:
(Rate reduction)
(CSE154849 1
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IND.AREA/RE-D07/
RESO:
OTS/RE- /
COM.CENTER/RESO:
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REGUlAR MEETING - MAY 23, 1988
VOLUME 23
THE QUESTICN WAS CALLED AND THE MJI'ICN CARRIED WITH
FIVE "YES" VarES AND GIESELER AND SIMUTIS VOTING "NO".
3.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A LEASE OF
CITY-cmNED PROPERTY TO SEWARD CABLEVISION.
HILTON MJ\1ED TO APPROVE RESOLUTICN NO. 88-059; THE
IDTICN WAS SECONDED BY NOLL AND CARRIED UNANIMJUSLY.
4.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOWTICN OF THE CITY COUNCIL OF 'IRE CITY
OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE
OF PROPERTY FOR LOCATICN OF A SENIOR/CCM-
MUNITY CENTER/MUSEUM.
Gieseler allowed BFA DAVIS, 505 Third Avenue, to
comrent. She stated that the Seniors did not want the IlUlseum
combined with the Senior center. Gieseler responded by noting
that the project was bonded as a combined project. Schaefer-
rreyer stated that the entire process had been discussed with the
Senior Citizens Board and the Museum Board from the beginning,
including VoDrk on the design. During the planning phase, no one
had spoken against including the IlUlseum in the facility.
HILTON IDVED TO APPROVE RESOLUTICN NO. 88-060; THE
MJI'ION WAS SEr:CNDED BY DUNHAM.
Ms. Davis stated that the Seniors did not want a
combined facility, but no one had listened to their conplaints.
Dunham noted that there had been plenty of opportunity to
corment, including a public hearing earlier in this rreeting at
which no one had carre forward to speak.
In response to a question from Jlbll concerning funding
sources for the project, Schaeferrreyer listed the various grants
and bonds available for the project.
JUDY MARrIN, Executive Director of the Senior Center,
stated that she had acted as a consultant throughout the process
and had reported to the Senior Citizens' Board of Directors on a
rronthly basis. She stated that only a feN individuals had
expressed opposition to the IlUlseum being housed with the COIm1l1-
ni ty center. She noted sorre questions as to handicap
accessibility to the Third Floor and a tripling of liability
insurance costs; however, the majority of the Seniors favor the
proposal before Council at this tirre. ,
(CSE154850 ]
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REGULAR MEETING - MAY 23, 1988
VOLUME 23
THE QUESTION WAS CALLED AND THE MJTION TO APPROVE
RESOLUTICN NO. 88-060 CARRIED UNANIMXJSLY.
5. Copies having been made available to the GATEWAY SUB/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE SALE OF
CERI'AIN GATEWAY SUBDIVISION wrs TO CLINT D.
HALL.
SIMUTIS IDVED TO APPROVE RESOLUTICN NO. 88-061; THE
MJI'ICN WAS SEr:CNDED BY HILTON.
Gieseler stated that he VoDuld like to see the city
VoDrk with both developers (Hall and METCO/MINDENBERGS, JV) and
asked the Administration if it would be possible for the two to
negotiate a VoDrkable solution. Schaeferrreyer stated that this
might be possible. In response to earlier allegations that the
city had violated the Code or Charter in its handling of the
proposed agreerrent with Hall, Schaeferrreyer stated that the
proposal frau Hall was unsolicited by the city and had been
developed since that tirre on the part of the city strictly in
accordance with standard city procedures.
NaI'E: Jones returned and resurred her I.XJsition as Acting City
Clerk.
In response to a question from Gieseler, Hilton
reported on past rreetings of the city with Alliance Bank and
Gateway Ventures. He stated that the city had worked to retain
an interest in the subdivision following default by Gateway
Ventures. He added that the city's goal had been to find a
buyer to purchase and develop the entire subdivision in order to
bring rrore horre-buyers into the city limits. In addition, the
sooner the property was purchased by a private developer, the
sconer the city VoDuld be relieved of the obligation of making
interest payrrents to Alliance Bank. Hilton stated that dispos-
ing of the property through a formal RFP process would be fair,
but VoDuld take tirre.
SimJ.tis suggested that the city "get out of the real
estate business" and VoDrk out sorrething with both proposers.
Dunham expressed concern about the undeveloped lots which would
not be sold to either developer. 0' Brien stated that the entire
subdivision should be sold and the bank paid off.
~han stated that the Hall proposal was an excellent
one. He suggested postponement until the next rreeting with a
VoDrk session to further study both proposals. Jlbll concurred.
( CSE154851 1
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IND. AREA/ RE-,;
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REGULAR MEETING - MAY 23, 1988
VOWME 23
GIESELER MOVED TO POSTPONE ACTICN ON RESOWI'ICN NO.
88-061 FOR THREE DAYS; THE IDI'ION WAS SEr:ONDED BY SIMlJI'IS AND
CARRIED UNANIM:XJSLY.
Gieseler instructed the Acting Clerk to schedule a
special rreeting for Thursday, May 26, 1988, beginning at 7: 30
p.m., to discuss further Gateway Subdivision negotiations and to
consider action on proposed Resolution JIb. 88...,061.
6. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOWI'ION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE LEASE OF
CITY-~ PROPERrY TO SHORES IDE PETROLEUM,
INC.
HILTON MJVED TO APPROVE RESOLUTICN NO. 88-062 SUBJEX::T
TO POSSIBLE RECONSIDERATION AT THE JUNE 13, 1988, REGULAR
MEETING FO:LI.aVING PUBLICATION OF A CORRFrI'ED PUBLIC HEARING
NarlCE BEARING THE PROPER LEX;AL DESCRIPTICN AND CClIDUCT OF A
PUBLIC HEARING; THE MJTION WAS SECCNDED BY SIMUI'IS AND CARRIED
UNANIM:XJSLY.
Gieseler thanked Ms. Martin for sitting in for Jones
during her absence from the rreeting.
7. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOWI'ICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ADOPTING THE CITY OPERAT-
ING BUDGET FOR THE FISCAL YEAR BEX;INNING
JULY 1, 1988.
MEEHAN MJVED TO APPROVE RESOWI'ICN NO. 88-065; THE
MJI'ICN WAS SECCNDED BY SIMUTIS.
0' BRIEN MJVED TO AMEND THE GENERAL FUND EXPENSE BUDGET
BY $62,000, SETTING THE MIL RATE AT 2.5 MILS; THE MJI'ION WAS
SEr:ONDED BY MEEHAN.
Dunham, Gieseler and Hilton spoke in opposition to the
arrendrrent.
THE QUESTION WAS CALLED ON THE AMENDMENT AND THE
MOrION FAILED WITH SIX "NO" VOTES AND O'BRIEN VarING "YES".
'!HE QUESTION WAS CALLED ON THE MAIN IDI'ICN AND THE
MJI'ICN CARRIED BY UNANIMOUS VOI'E OF COUNCIL.
(CSE154852 )
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REGUIAR MEETING - MAY 23, 1988
VOLUME 23
8. Copies having been made available to the BUDGET / RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF WE CITY
OF SEWARD, AIASKA, ADOPTING THE HARBOR
ENTERPRISE Bmx;ET FOR THE FISCAL YEAR
BffiINNING JULY 1, 1988.
SIMUTIS MJVED TO APPROVE RESOLUTICN NO. 88-066; THE
MJI'ION WAS SEr:CNDED BY NOLL AND CARRIED UNANIM:XJSLY.
9. Copies having been made available to the BUDGET/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ADOPTING THE ELEX:TRIC
ENTERPRISE BUDGET FOR THE FISCAL YEAR
BffiINNING JULY 1, 1988.
MEEHAN IDVED TO APPROVE RESOLUTICN NO. 88-067; THE
MJI'ION WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIM)USLY.
10. Copies having been made available to the BUDGET/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ADOPTING THE WATER AND
SEWER FUND ENTERPRISE BUDGET FOR THE FISCAL
YEAR BffiINNING JULY 1, 1988.
NOLL MJVED TO APPROVE RESOLUTICN NO. 88-068; THE
MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIM:XJSLY.
11. Copies having been made available to the BUDGET/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ADOPTING THE FISCAL YEAR
1989 Bmx;ET FOR SEWARD GENERAL HOSPITAL AND
APPROPRIATING $250,000 OF LOCAL SUPPORT.
MEEHAN MJVED TO APPROVE RESOLUTICN NO. 88-069; THE
MJI'ION WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIMOUSLY. (Giese-
ler ruled that Hilton's I.XJsition as an enployee of SGH did not
constitute a conflict of interest.)
12. Copies having been made available to the
public, Gieseler noted by ti tIe only a proposed resolution
entitled:
( CSE154853 )
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REGULAR MEETING - MAY 23, 1988
VOWME 23
PURCHASING/RESO:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE PUROfASE
OF A CRANE FOR THE HARBOR DEPARl'MENI' AND
APPROPRIATING FUNDS.
SIMUTIS IDVED TO APPROVE RESOLUTICN NO. 88-070; THE
MJI'ION WAS SEr:CNDED BY HILTON AND CARRIED UNANIM:XJSLY.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
CLAIMS FOR DM".AGES: A. GIESELER MJVED TO APPROVE A CLAIM FOR DAMAGES
(Keegan claim TOTALLING $108 AS FILED BY CHERYL KEEGAN; THE MJI'ICN WAS SECOND-
DENIED) ED BY SIMUTIS AND FAILED TO CARRY WITH ALL PRESENT VOTING "NO".
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER thanked the Council and staff for their
support during his term as interim city manager. He stated that
the transition had VoDrked well and that Rodger L. Bennett was
due to begin work on June 6.
SCHAEFERMEYER also corrrrented that the city's goal
remains to achieve construction of a new elerrentary school. He
noted that, if a proposition regarding a new school for Seward
is to appear on the October ballot, the measure ITUst be in-
troduced before the Assembly prior to June 21. Schaeferrreyer
stated that legislative remedies have now been exhausted, and an
all out effort will be needed to nove forward. He warned that
success VoDuld depend on lobbying by the Council, the Parent
Advisory Corrmittee, school administrators and area parents to
convince the school board, borough assembly and voters of the
need for the school.
XV. COUNCIL DISCUSSION:
NOLL stated that the Legislature had passed the
Governor' s bill regarding the Alaska Science and Technology
Foundation, with $6 Million appropriated to begin the Founda-
tion. He stated that the noney VoDuld be distributed in the form
of grants by an appointed Board of Directors. He urged anyone
with good ideas to apply for a grant through the Foundation.
HILTON inquired about the status of the l.cMell Tunnel
repair. Schaeferrreyer responded that the patching was crnplete
and an information rrerrorandum would be forthcoming from Diener.
MEEHAN complirrented Schaeferrreyer on the great job he
had done as Interim City Manager. He complimented departrrent
heads and enployees on keeping costs down with the new budget.
( CSE154854 1
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REGULAR MEETING - MAY 23, 1988
VOLUME 23
DUNHAM agreed that a great deal of effort needed to be
put forth to secure funding for a new school. She suggested
that local parents and others in the corrmunity put together a
task force.
GIESELER thanked Schaeferrreyer for the excellent and
professional job he had done and corrrrended him on being a
stabilizing factor during the transition. He also stated that
the Spring clean-up effort was a success and suggested abatement
of desolate buildings and vehicles to further the clean-up
effort. He noted that the U. S. Navy would be in town June 1-3,
and he invited the conmmity to a cocktail party and presenta-
tion to the Naval officers scheduled for June 1. Gieseler
stated that he had spoken to Mr. Bennett and had been told that
he VoDuld be leaving for Seward shortly. Gieseler also endorsed
a concentrated effort to acquire funding for the new school.
XVI. CITIZENS I DISCUSSION:
WILLARD DUNHAM, Diarrond and Alder, stated that the
accusations leveled at the administration earlier in the evening
were unfounded. He personally comrrended Schaeferrreyer for his
outstanding performance and achievement, stating that he always
VoDrked in the best interest of the city. He stated that the
city was extrerrely fortunate to have such a dedicated person on
staff.
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
NOLL noted that Bob Valdatta was absent from the
rreeting and asked that he be inforrred about the Science and
Technology Foundation.
XVIII.
ADJOURNMENT:
The rreeting was adjourned at 10: 10 p.m.
Q~~.~~
Patricia J. Jones
Acting City Clerk
~~~
ry, Gieseler
Mayor
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CITIENS' DISC:
(J. Gillespie -
Gateway Sub)
CITIZENS' DISC:
(Clint Hall -
Gateway Sub)
PAGE 112
SPEr:IAL MEETING - MAY 26, 1988
VOWME 23
I. CALL TO ORDER:
The May 26, 1988, special meeting of the Seward City
Council was called to order at 7: 32 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMJNY:
the flag.
Counci1rrember SimJ.tis led the pledge of allegiance to
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, ~, O'Brien, Jlbll and
SimJ.tis
Present also: Interim City Manager Schaeferrreyer, Ad-
ministrative Assistant Martin and
Administrative Secretary Martin
IV. APPROVAL OF AGENDA:
Gieseler requested that the agenda be arrended by
including "Citizens' Corments on Agenda Items Jlbt Scheduled for
Public Hearing".
SIMUTIS IDVED TO APPROVE THE AGENDA AS AMENDED; THE
MJI'ICN WAS SECCNDED BY DUNHAM AND CARRIED UNANn-DUSLY.
V. CITIZENS' CCMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
JOHN GILLESPIE, 604 Fifth Avenue, Seward, restated his
feelings concerning the Gateway Subdivision disposal. He stated
that his objection was to the way the sale was being accom-
plished. Gillespie noted that "our goals are the sarre - afford-
able housing". He cbjected to selling the lots at less than
appraised value and accused the city of "dabbling in free
enterprise" . Gillespie further objected to accepting a "no-
down" offer for the property, stating that a cash buyer VoDuld
not speculate on the property. He also expressed his concern
that subsidized housing VoDuld severely inpact the real estate
market. He suggested that the city have one lot appraised to
determine the value of the subdivision.
CLINT D. HALL, Kenai, stated that the lots are not
currently worth $30,000. He stated that Gateway went into
default because the lots were over valued. He said that it was
unfortunate that the smaller lots were located at the front of
the subdivision, and he noted that whoever builds there will
need to be creative to keep from adversely affecting the value
of the subdivision. He stated that the Council would have an
( CSE154856 1
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SPEr:IAL MEETING - MAY 26, 1988
VOLUME 23
opportunity to view the houses as they are constructed and can
stop the developrrent if not satisfied.
VI. ORDINANCES AND RESOLUTIONS:
A. Resolutions: SEE UNFINISHED BUSINESS:
VII. UNFINISHED BUSINESS:
A. Gieseler stated that there was a notion on the GATEWAY SUB/RESO:
floor to approve Resolution JIb. 88-061 and opened the floor for
discussion.
Schaeferrreyer stated that the administration had !lEt
with both proposers and had negotiated agreements with the tv.D
which would give Hall an option on all lots in Block 2 east of
Dora Avenue (23 lots) and Mindenbergs/Dieckgraeff an option on
lots located west of Dora Avenue (22 lots). The agreerrents
VoDuld contain the sarre terms and conditions. He stated that the
Mindenbergs/Dieckgraeff agreement VoDuld be scheduled for public
hearing and action on June 13. He noted that the agreement
before Council at this tirre had been arrended to include only
those lots included for public hearing on May 23 and to elimi-
nate the second optional extension period because of the reduced
number of lots, allowing Hall to complete developrrent by March
31, 1989. He added that the six lots not covered in the May 23
public hearing VoDuld be the subject of public hearing on June
13, followed by a lease addendum for action by the Council.
Schaeferrreyer recomrended approval of the arrended agreement
before the Council.
MEEHAN MJVED TO AMEND THE RESOLUTION TO REFLECI' 17
rms AS NOI'ED BY SCHAEFERMEYER; THE MJI'ION WAS SEr:ONDED BY
DUNHAM AND CARRIED UNANIMJUSLY.
In response to a question from SimJ.tis, Schaeferrreyer
stated that there was no need for a default clause since the
Council has been given the option of terminating the agreerrent
for any reason. In addition, if the houses do not sell, the
city could sue for specific performance and carpel the builder
to "cash out" city for the lots on which horres have been built.
Schaeferrreyer stated that the city VoDuld be filing a
"Jlbtice of Jlbnresponsibility" to prohibit the builder from
filing any liens against the property. He noted the specific
clause in the agreerrent disallowing subordination of the proper-
ty. He added that liens could be filed against the property
only if the builder "cashed out" the city and a<XjUired title to
it (the property). In response to Hilton's concern that local
suppliers and construction VoDrkers VoDuld have no recourse as
long as the title to the property rested with the city, Schaef-
errreyer stated that the city could require the contractor to
post a performance and payrrent bond, but the cost of that bond
could put the entire project out of the realm of possibility.
( CSE154857 )
~ ~ t,
CITY MANAGER:
(Priorities for
New Manager)
PAGE 114
SPEr:IAL MEETING - MAY 26, 1988
VOLUME 23
Hilton responded that this would be preferable to seeing half a
dozen Seward residents "on the hook" for materials or labor with
no way to collect their noney. Hall stated that he VoDuld object
to a requirerrent that he provide a full performance and payrrent
bond. He stated that the bank has conducted a full credit
search as VoDuld any supplier who advanced materials on credit.
He added that he objected to the Council trying to regulate free
enterprise. Hilton resI.XJnded that the city had an obligation to
try to protect the citizens of the carmunity. In response to a
question from Gieseler, Schaeferrreyer stated that such a bond
had not been required of Chugach Alaska Corporation.
In answer to a question from Hilton about the effect
of selling lots bela.v market value on the tax base of the
cornmmity, Schaeferrreyer stated that the addition of new horres
on the tax roles VoDuld nore than offset any tax assessment
adjustrrents.
~han, Dunham and O'Brien agreed that Hall's proposal
was a good one and expressed their support for VoDrking with both
developers. 0' Brien objected, however, to selling publicly-
owned property at below market. Jlbll stated that he shared sorre
of the sarre concerns as O'Brien and Gillespie.
Gieseler stated that the lots were over valued at
$30,000, and in actuality, the city was not selling that much
below actual value. He added that the city has leased property
in the past at rates substantially below market value in order
to encourage business developrent. He stated that he favored
giving both developers an opportunity to build in Gateway
Subdivision.
THE QUESTION WAS CALLED AND THE MJTION TO APPROVE
RESOLUTION NO. 88-061 CARRIED WITH FIVE "YES" VOI'ES AND HILTON
AND 0' BRIEN VOTING "NO".
VIII.
NEW BUSINESS:
A. Schaeferrreyer stated that METCO/TREND, JV (Min-
denbergs and Dieckgraeff) were agreeable to the sarre terms and
conditions as those Council had approved for Hall. Dieckgraeff
stated that he would like to option the ten larger lots as well,
with a stipulation that, should an individual wish to purchase
one, he VoDuld relinquish his option on that particular lot so
that it would be available to that person.
B. COUNCIL PRIORITIES/DIRECrICN FOR NEW CITY MANAGER
O'BRIEN stated that he VoDuld like to see the city
change its orientation SOffiE!\<\1hat and consolidate its position
rather than continuing expansion efforts.
DUNHAM stated that she VoDuld like the city to direct
its energies toward expansion of SMIC, including developrrent of
( CSE154858 1
,
I
I
::--:c;
'. "
PAGE 115
SPEr:IAL MEETING - MAY 26, 1988
VOLUME 23
support industries and cradles. She also stated that she would
like to hold the line on growth of the city government by
streamlining and holding the line on errployees. She also stated
that she VoDuld like the new city manager to work with IMS and
Jlbll to encourage growth in the scientific conmunity.
MEEHAN stated that the new manager should beccme
familiar with the city's legislative priority list and should
develop creative ideas for financing the new school, hospital
and IMS/Ferry Dock. He also stated that downtown enhancement
was irrportant.
HILTON stated that the new manager should assess where
we are and what we have "in the VoDrks" and give sarre direction
to Council on what should be aggressively pursued. He added
that the manager should "ride herd" on the Finance Departrrent.
SIMUTIS stated that the manager should determine what
the city can do to VoDrk with the Enhancerrent Program to accom-
plish goals set forth through the Hyett-Palrra study. She stated
that paying attention to already established businesses is
critical. She also stressed a need to pursue upgrade of the
power line and quality of life issues.
NOLL stated that the manager should do what he can to
ensure completion of the new timber mil1 and should give Schaef-
errreyer a vacation.
GIESELER stated that he had five priorities: 1)
planned growth; 2) comprehensive planning; 3) port develop-
ment; 4) pro-business develoJ:XlEnt; and 5) preservation of
quality neighborhcods.
IX. CITIZENS' DISCUSSION:
JOHN GILLESPIE, 604 Fifth Avenue, Seward, stated that
the public did not get a fair chance to bid on or purchase
property in Gateway Subdivision. He further stated that the
city tries to run itself as a business and should, therefore,
accept the highest cash bid for the property rather than a low
bid based on a promise to pay after a house has sold.
X. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
SIMUTIS stated that she shared sarre of Gillespie's
concerns; however, since the property had been overvalued to
start with, the city was not receiving only $0.50 on the dollar.
She stated that the city was responsible for the subdivision and
she preferred a planned developrrent rather than auctioning
individual lots. She added that she felt the agreements with
Hall and ME'Iro/TREND were the best way currently for the city to
get out of the real estate business.
( CSE 154859 1
~ -: r-.
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t~.u, c,<.:' ,_
t:{0't1 Jt Sf VI'4 '
.. .' "' "^
" ,,,""",,0 'r^
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..: ~...... :
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-.- ~
c. "" " S:" .:
~,,' "~I\'.r 1 '\.~/*'~
."!)- ,.",..~., ~
Y~lOF ,,\.~
PAGE 116
SPEr:IAL MEETING - MAY 26, 1988
VOLUME 23
DUNHAM concurred. She stated that other businesses
had received sarre public opposition when they first moved to
Seward, including Seward Fisheries. However, Seward Fisheries
was a prirre exanple of a corrpany which had done a lot of good
for the corrmunity. She added that the city gave away a lot to
lure AvrEX: to the corrmunity and, in the long run, this had been
a good business decision.
GIESELER stated that he had been afraid the city VoDuld
lose all its options on the Gateway Subdivision property. He
stated that, with this decision, the city would still be able to
direct what is best for the comnunity.
XI. ADJOURNMENT:
The rreeting was adjourned at 9: 18 p.m.
~e.~
Har . Gieseler
Mayor
SPEr:IAL MEETING - JUNE 9, 1988
VOLUME 23
I. CALL TO ORDER:
The June 9, 1988, special rreeting of the Seward City
Council was called to order at 12:20 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM:>NY:
Counci1rrember SimJ.tis led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, Jlbll, O'Brien and SimJ.tis
(~ehan was excused.)
Present also: Interim City Manager Schaeferrreyer, Ci-
ty Attorney Arvidson and City Clerk
Murphy
IV. APPROVAL OF SPEr:IAL MEETING AGENDA:
HIL'roN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS
PRESENTED; THE MJI'ICN WAS SEr:ONDED BY SIMUTIS AND CARRIED
UNANIMJUSLY.
( CSE1548bO
1
117
PAGE 11 7
SPEr:IAL MEETING - JUNE 9, 1988
VOLUME 23
I
V. NEW BUSINESS:
A. Gieseler inforrred the Council that he had learned
that Fodger Bennett had not yet formally resigned his position
as City Manager of Casa Grande, Arizona. He briefly outlined
the events leading to his discovery, including several telephone
calls to and from Mayor Kerr of Casa Grande and telephone
conversations with Mr. Bennett.
CITY MANAGER:
Arvidson distributed a rrerrorandum outlining the
chronology of events beginning with the city's offer of
errployment to Bennett until today' s special rreeting. He stated
that he was concerned that the city may have an errployrrent
agreement in force with Bennett even though that agreement is
unsigned. He noted that part of the original agreerrent with
Bennett had been an understanding that he VoDuld begin VoDrk on
June 6; however, prior to that date, Bennett had asked for and
received an extension until June 27. Arvidson reminded Council
that the agreerrent with Bennett required 90 days' notice of
termination; however, the Council might contend that the city
had been misled by Bennett and his failure to give notice to his
errployer in Casa Grande might be viewed as evidence of his bad
faith dealings with the city of Seward.
I
SIMUTIS IDVED TO DIREr:T THE CITY ATTORNEY TO DRAFT A
LETTER TO TERMINATE THE ANTICIPATED EMPLOYMENT AGREEMENI' WITH
BENNETT FOR THE POSITION OF CITY MANAGER; THE MJTION WAS SECOND-
ED BY NOLL AND CARRIED UNANIM:XJSLY.
B. O'BRIEN MJVED TO AUTHORIZE THE CITY CLERK TO CITY MANAGER:
READVERI'ISE THE CITY MANAGER POSITION; THE MJI'ICN WAS SEr:ONDED
BY HILTON AND CARRIED UNANIMJUSLY. Mu:rphy was instructed to
close applications on July 15.
VI. CITIZENS' DISCUSSION: Jlbne
VII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
SCHAEFERMEYER stated that he had learned that the
Chamber of Corrmerce VoDuld not fund a fireworks display this July
4. Skip Rierson had offered to generate local contributions for
one-half the $4200 needed for the display if Council VoDuld fund
the other one-half. It was a consensus of the Council not to
fund the fireworks display with public funds.
VIII.
ADJOURNMENT:
The rreeting was adjourned at 1:09 p.m.
I
~D a
c_- k~~.,.4
Harry Gieseler
Mayo
-"'.,..
r CSE154861 1
":~#j(,; '€ '~,
. ~', '.. ~ -. " .
~.. 8
__ .t. ~
PAGE 118
REGULAR MEETING - JUNE 13, 1988
VOLUME 23
I. CALL TO ORDER:
The June 13, 1988, regular rreeting of the Seward City
Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM:lNY:
Counci1rrember Hilton led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Counci1rrembers Dun-
ham, Hilton, ~ehan, Jlbll and SimJ.tis
(0' Brien was excused.)
Present also: Interim City Manager Schaeferrreyer, Ci-
ty Attorney Arvidson , Administrative
Assistant Martin, Engineering & Util-
i ties Manager Diener, Port Marketing
Director Gates, Parks and Recreation
Director Yanez, Assistant Finance
Director Gifford, Harbormaster Single-
ton and City Clerk Murphy
IV. APPROVAL OF MINUTES:
Jlbt available
V. APPROVAL OF REGULAR MEETING AGENDA:
MEEHAN IDVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY
FO:L:LaVING THE CLOSE OF REX:3ULAR BUSINESS IN ORDER TO CONDUCT
APPOINTED EMPLOYEE EVALUATIONS AND TO REVIEW CITY MANAGER
PROPOSAL REX:EIVED BY THE MAYOR; THE MJI'ION WAS SEr:CNDED BY NOLL
AND CARRIED UNANIMJUSLY.
MEEHAN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS
PRESENTED; THE MJI'ICN WAS S~ED BY NOLL AND CARRIED UNANI-
MJUSLY.
VI. BOROUGH ASSEM3LY REPORI':
Kenai Peninsula Borough Assembly Representative Sewall
was not present and no report was given.
VII. CITIZENS' CCM1ENTS CN AGENDA ITEMS NCYI' SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
l CSE154862 1
I
I
I
PAGE 119
REGULAR MEETING - JUNE 13, 1988
VOLUME 23
Schaeferrreyer stated that the Clerk had distributed a
substitute rrerrorandum for Consent Calendar Item JIb. 8.
AMENDED;
M:XJSLY.
HILTON MJVED TO APPROVE THE CONSENT CALENDAR AS
THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANI-
The following actions were taken:
1. Resolution No. 88-071, authorizing an arrendment
to the participation agreerrent of the city to include employees
of the Seward Ccmnunity Library in the Public Ehployees' Retire-
ment System, was approved and filed;
2. Resolution JIb. 88-072, authorizing the city
manager to grant a step increase to each classified employee of
the city, was approved and filed;
3. Resolution JIb. 88-077, authorizing signatures for
the city bank account and rescinding all previous resolutions in
conflict herewith, was approved and filed;
4. Resolution JIb. 88-078, designating Interim City
Manager Darryl Schaeferrreyer as the authorized representative
relative to the purchase of equiprrent through the Alaska Surplus
Property Service, was approved and filed;
, ~ f",
.~ + ,....,
PERSONNEL/RESO:
(PERS for Library
employees)
PERSONNEL/RESO:
(Salary increase)
FINANCE DEPT.
PURCHASING/RESO:
5. June 8, 1988, invoice from Wohlfarth, Flint & C. ATTY:
Gruening for legal services totalling $744.17, was approved for
payrrent and filed;
6. June 7, 1988, rrerrorandum from Engineering &
Utilities Manager E. Paul Diener recormending award of a con-
tract to Seward Construction Services in an aITOunt NTE $13,445,
with a contingency of $1344.50, for a total project award of
$14,789.50, to construct Purtp Station JIb. 3 Equiprrent Building,
was approved and filed;
7. May 31, 1988, rrerrorandum from Diener requesting
Council affirmation of an earlier poll authorizing the city
manager to award a contract to Warning Lites of Alaska in the
aITOunt of $17,393.75, for traffic control signs was approved and
filed;
8. June 7, 1988, rrerrorandum from Diener recamending
award of a contract to Stefanski Brothers in an aITOunt NTE
$14,760, and authorizing a change order reserve of $1,500, for a
total project aITOunt of $16,610, was approved and filed;
9. June 7, 1988, rrerrorandum from Assistant Finance
Director Rick Gifford recommending award of a Profe~sional
Services contract to Price Waterhouse to provide audit services
for the years ending June 30, 1988, 1989, and 1990, was approved
and filed;
WATER & SEWER/CON-
2'13/RESO:
TRAFFIC (Parkinq)/
RESO:
PUBLIC WORKS/CON-
~ (Clearing)
FINANCE DEPT./CON-
~: (Audit)
( CSE154863 )
"
'"'';(1
PAGE 120
REGULAR MEETING - JUNE 13, 1988
VOLUME 23
RE- Old 10. June 8, 1988, rrerrorandum fran Administrative
Assistant Kerry Martin recorrrrending Council consent to assign-
ment of lease interest held by Dot Bardarson to National Bank of
Alaska (South ~ of Lot 5, Block 1, Marina Subdivision) was
approved and filed;
RE-{l{pb 11. June 8, 1988, rrerrorandum from Martin recorrrrending
Council consent to the assignrrent of lease interest held by Ray
and Leslie SimJ.tis to First National Bank of Anchorage (SBH
Boardwalk Site JIb. 7) was approved and filed;
GAMES OF CHANCE & 12. Applications for permits for garres of chance and
SKILL: skill as filed by the following were filed without objection:
RESURRECTION BAY LION & LIONESS CLUBS
PIONEERS OF ALASKA IGLOO NO.9
PIONEERS OF ALASKA AUXILIARY NO.9;
ELECTRIC DEPT:
(Camelot Elec.)
13. June 6, 1988, rrerrorandum fran City Clerk Murphy
concerning proposed Carrelot Subdivision Electrification project
was noted for information and filed;
COK'-2l.i1
14. June 1, 1988, rrerrorandum from Diener noting the
following change orders to the Titan Construction, Inc., con-
tract for SCCC Maintenance Shop Expansion was noted for informa-
tion and filed:
#1 - Retrofit existing srroke detector installations in
Buildings 2, 3, and 4 (+$59,884);
#2 - Raise head height of two gates accessing recre-
ational yard 10'6" to 14'0" (+$6,661);
#3 - Add four additional isolation valves on the APS
hydronic system (+$1,622);
# 4 - Chip away the existing concrete in order to
facilitate the bonding of new concrete (+$346); and
#5 - Installation of concrete collars with rebar using
a corrugated rretal pipe (+$1,218);
CON- IS"
15. May 25, 1988, rrerrorandum from Diener noting the
following change orders to the Sarrwhan contract for SCCC con-
struction was noted for information and filed:
#151 - Providing for installation of Vitrocem flooring
to cover walls 4" in 42 shower rooms (+$25,260);
#152 - Extending sewer line to the Southeast across
the service road (+$40,750);
#161 - MJving 24" CMP to Entry Road, staking new
location light pole, undercutting and backfilling APS
foundation with NFS material, miscellaneous undercutting
and backfilling, , staking and layout for sewer line
extension (+19,250);
#166 - Furnishing and installing additional rretal
railing at the third floor level (+$1,430);
t C Sf 154864 1
I
I
I
PAGE 121
REGUlAR MEETING - JUNE 13, 1988
VOLUME 23
#167 - Installing 2 each, 4" x 12'0" pieces of angle
iron J:n the concrete floor slab at the overhead door
entrance (+$622);
#168 - MJdifying interior hatches in control rooms in
Buildings JIb. 2, 3, and 4 (+$5,076);
#169 - CUtting swales around Building #3 for flood
control on December 9-10, 1987 (+$1,449);
#170 - Providing a credit for deletion of fire sprin-
kler guards within housing units, Buildings 2, 3, and 4
(-$3,873) ;
# 171 - Rerroving stunps on the Jlbrth side of the APS
Building on June 3, 6, 17, and 18, 1987 (+$1,900);
# 172 - Installing reinforcerrent on the top of the
standby generator radiator wall in the warehouse (+$3,707);
#173 - Providing all equiprrent, materials and labor to
accomplish work per DC/VR 772 (+$2,260);
#174 - Revising the relay settings on the 2,000 KVA
transforrrer to the generator bus (+$749);
#175 - Providing electrical VoDrk for power to the
warehouse freezers (+$18,627);
#176 - Providing all equiprrent, materials and labor to
bypass the CM:S System for lighting coordination with CP-3
security system (+$6,500);
#177 - Extending circuit P/34 or P/36 from the junc-
tion box in the ceiling of Roam 1-305 and circuit from grid
D3.4 to E.3 (+$700);
# 17 8 - Installing conduit and conductors for the
circuits as shown (+$8,300);
#179 - Raising light pole standard base as per Re-
vision #4 (+$2,255);
#180 - Rerroving stunps and providing non-frost suscep-
tible material backfill (+$13,174);
#181 - Providing structural revisions described in
Revision #3, Sections 3A, 4A, 9A and 9B (+2,375);
#182 - Applying two coats above grade exterior dam-
proofing of the APS Building frcxn B-6 to B-12 (+$6,090);
and
#183 - Costs incurred as a result of the issuance and
rescinding of Revision #8 (+$5,771).
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding Resolution No. 88-062 (approved May
23, 1988, subject to this public hearing), lease of a one-acre
parcel 100 feet to the east of the city substation property line
wi thin the Fourth of July Creek Industrial Area to Shores ide
Petroleum, Inc., was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
B. Notice of public hearing as I.XJsted and published
as required by law regarding the proposed sale of Lots 4-13 and
15-26, Block 1, Gateway Subdivision, to MEI'CO/TREND, JV, was
, ?',
.L "d
PUBLIC HEARING:
(Shoreside Pet.
lease)
PUBLIC HEARING:
(Gateway Sub.)
l CSEl54865 1
-(""It:"')
~_/'.~'
PUBLIC HEARING:
(Gateway Sub)
CITIZENS' DISC:
(Woodruff -
SFI Expansion)
ALCOHOL/ORD:
PAGE 122
RffiULAR MEETING - JUNE 13, 1988
VOLUME 23
noted and the public hearing was opened; no one appeared in
order to be heard and the public hearing was closed.
C. Notice of public hearing as posted and published
as required by law regarding the proposed sale of Lots 5, 6, 17,
19 and 21, Block 2, and Lot 4, Block 6, Gateway Subdivision, to
Clint Hall, dba Hall Quality Builders, 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 ONLY:
JOHN WJODRUFF, 613 First Avenue, Manager of Seward
Fisheries, Inc., outlined for Council SFI's plans for expansion
of its plant to accamodate two new canning lines. He stated
that the proposed expansion represented a $3.5 Million project
utilizing raw fish tax rebated to SFI through a new state
program. He stated that the area which VoDuld primarily be
affected by the expansion was the boatlift area, but added that
a solution providing access by the city had been VoDrked out.
W:xXlruff noted that the expansion VoDuld add in excess of $3
Million to the city's tax base, VoDuld add approximately $1
Million in additional annual payroll and VoDuld increase the raw
fish tax generated in the city by $50-60 Thousand. In addition,
he noted that more fisherrren and tenders VoDuld be calling on the
port of Seward.
In response to a question from Hilton, Schaeferrreyer
stated that the city's goal was to eventually move all boat
storage to the other side of the Bay. He stated that the
Harbormaster was looking into the financial feasibility of
noving the boatlift operation across the Bay.
The Council instructed the administration to do what
it could to expedite the replatting and lease amendrrent process
to allow for the proposed plant expansion.
XI. ORDINANCES AND RESOLUTICNS:
A. Ordinances for Introduction:
None
B.
Ordinances for Public Hearing and Enactrrent:
1.
public, Gieseler
entitled:
Copies having been made available to the
noted by title only a proposed ordinance
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, REGARDING THE SALE OF
ALCOHOLIC BEVERAGES, AMENDING SEr:TICN 3-8 OF
THE SEWARD CITY CODE.
( CSE 154866 1
I
I
I
PAGE 123
REGULAR MEETING - JUNE 13, 1988
VOLUME 23
Notice of public hearing as posted and published as
required by law was noted and the public hearing as opened.
CHARLES FULTZ, 520 Fourth Street, spoke in opposition
to the ordinance.
PEGGY BRcx:KMAN, 605 Sixth Avenue, Substance Abuse
Counselor for Seward Life Action Council, spoke in opposition to
the ordinance. She stated that IMI' s and other alcoholic-re-
lated arrests are up 31% this year.
BOB VALDATTA, 528 Fifth Avenue, spoke in favor of the
ordinance.
IDIS DAUBNEY, Mile 6>" Lake Drive, Seward Public
Health Nurse, stated that, by waiving the law regarding the
opening of liquor stores and bars for one day, the city was
sending a confusing rressage to young people. She noted that the
state of Alaska has a trerrendous alcohol problem and we do not
need to give youth the Iressage that holidays are an excuse to
start drinking even earlier than we do on other days.
DICK FISHER, 416 Seventh Avenue, Alcohol Counselor,
stated that there was no "rhyme or reason" for this ordinance,
and called the ordinance "enabling legislation", adding that
this ordinance, if enacted, VoDuld enable those with drinking
problems to begin feeding their problems a little earlier during
the day and VoDuld sanction this behavior.
JIb one else appeared in order to be heard and the
public hearing was closed.
THE ORDINANCE FAILED DUE TO A lACK OF A MJI'ICN TO
ENACT .
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOwrICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROPRIATING FUNDS FROM
THE GENERAL FUND-FUND BALANCE TO THE PARKS
AND RECREATION DEPARI'MENT BUDGET FOR THE
PURPOSE OF OPERATING A CCM1UNITY SCHOOLS
PRCXiRAM FOR THE 1988-89 SCHOOL YEAR.
MEEHAN MJVED TO APPROVE RESOwrION NO. 88-073; THE
MJI'ICN WAS S~ED BY HILTON AND CARRIED UNANIM:XJSLY.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
1'r)Cl
/. ".,
PARKS & REC/BUD-
GET/COM. SCHOOLS/
RESO:
( CSE154867 J
7?1.
_. <-I ..
PAGE 124
REGUIAR MEETING - JUNE 13, 1988
VOLUME 23
SMIC (North Dock)/
RESO:
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROPRIATING FUNDS FOR
THE SMIC NORTH DOCK.
HILTON MJVED TO APPROVE RESOLUTICN NO. 88-074; THE
MJI'ION WAS SEr:ONDED BY NOLL AND CARRIED UNANIM:XJSLY.
GATEWAY SUB/RESO: 3. Copies having been made available to the
public, Gieseler noted by ti tle only a proposed resolution
entitled :
A RESOLUTICN OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE SALE OF
CERI'AIN GATEWAY SUBDIVISION rms TO METCO/
TREND, JV.
SIMUTIS M:)VED TO APPROVE RESOLUTION NO. 88-075; THE
MJI'ICN WAS S~ED BY DUNHAM AND CARRIED UNANIM:XJSLY.
GATEWAY SUB/RESO: 4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTICN OF 'IHE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE SALE OF
ADDITICNAL GATEWAY SUBDIVISION rms AND
IDDIFlCATICN OF THE OPTICN AND PURCHASE
AGREEMENT WITH CLINT D. HALL, DBA HALL
QUALITY BUILDERS.
HIL'IOO MJVED TO APPROVE RESOLUTICN NO. 88-076; THE
MJI'ICN WAS SEr:CNDED BY DUNHAM AND CARRIED UNANIM:XJSLY.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
SMIC (North
CON - ~'l J..:
Dock) / A. SIMlJI'IS IDVED TO AUTHORIZE THE CITY MANAGER TO
AWARD A CCNrRACT TO OJNSTRUCTION & RIGGING, INC., FOR AN AMJUNT
Nor TO EXCEED $877,000, FOR THE NORTH SMIC DOCK CONSTRUCTION;
THE MorION WAS SECCNDED BY HIL'IOO AND CARRIED UNANIM:XJSLY.
SMIC (North
CON- 2't/ :
Dock) / B. HILTON IDVED TO APPROVE A CONTRACT WITH AFCGNAK
IffiGING FOR AN l\t'KJUNT Nor TO EXCEED $287,500, TO PROVIDE GRANU-
LAR FILL Nr THE SMIC NORTH DOCK; THE MJTION WAS SECONDED BY
MEEHAN .
In response to a question from ~ehan, Diener ex-
plained that funds totalling $182,500 are currently available
for this portion of the project. Ha.vever, if additional funds
should becarre available, the city VoDuld like to have the option
to purchase additional gravel fill for the favorable price
( CSE154868 1
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REGULAR MEETING - JUNE 13, 1988
VOLUME 23
quoted by the contractor. He assured ~ehan that, in the event
the fill exceeds 62,500 cubic yards, the Council will be
notified prior to purchasing additional fill material under the
contract.
THE QUESTION WAS CALLED AND THE MJTICN CARRIED BY
UNANIMJUS VOTE OF THE COONCIL.
XIV. CITY MANAGER REPORTS:
CHRIS GATES, Port Marketing Director, stated that he
planned to have several leases before Council for consideration
on June 27, including a proI.XJsed lease of SMIC property to Inlet
Salrron Conpany for a fish processing facility, a proposed lease
of SMIC property to Don Ennis for warehousing to supI.XJrt the
fishing industry, a proposed lease of SMIC property to Jim
Pruitt for a ship repair facility and a proposed lease of SMIC
property to Joel Steelman for a ship repair facility. He noted
that the Pruitt and Steelman proposals to the city are IlUltually
exclusive and the Council VoDuld be asked to choose one of the
two following public input.
Gates also reported that the 10-person Navy Horreport
Team to review the uplands were due to arrive in Seward on June
17 for a three day evaluation. He noted that the team had been
instructed not to socialize with the local I.XJpulation and to
avoid accepting gratuities of any kind.
XV. COUNCIL DISCUSSION:
DUNHAM stated that she had received carplaints con-
cerning sorre of the building going on in the Small Boat Harbor.
She stated that she hoped in the future the city allows only
what has been previously approved to be built in the Harbor.
Dunham also asked about the T-Shirt shop located in Mindenbergs I
building. Schaeferrreyer stated that Mindenbergs I lease allows
subletting with the concurrence of the Council and stated that
the Council had previously approved this sublease. Gieseler
asked the administration to have Mindenbergs prepare a staterrent
outlining his plans for his lease site for presentation to the
Council at the next rreeting.
NOLL stated that the parking plan in the Boat Harbor
appeared to be VoDrking well.
SIMUTIS stated that she did not feel the parking plan
was VoDrking very well as yet and asked when the parking signs
VoDuld be in place. Diener stated that the signs should begin
coming in next week and VoDuld be put up as they arrived.
GIESELER read a thank you letter he received from
Captain Schnurrpusch, Corrmander of the USS O'Callahan. He also
noted a recent article in the Phoenix Log concerning the Rail
( CSt 154869 )
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.. .:. f:\
PAGE 126
REGULAR MEETING - JUNE 13, 1988
VOLUME 23
Diesel Car Depot (ROC). He noted that the depot VoDuld be
dedicated on July 27 following an ARR Board rreeting in Seward.
XVI. CITIZENS' DISCUSSION:
BOB VALDATTA, 528 Fifth Avenue, stated that the city
needs to consider re-establishing the Port Camnission. He also
urged the Council to "free up" sorre land at SMIC for support
services such as restaurants, hardware suppliers, etc.
JOEL STEEIMAN, 526 First Avenue, stated that both he
and Pruitt are now in a financial position to make legitimate,
viable proI.XJsals for operation of ship repair facilities at
SMIC. He asked the Council to look for ways to accomrodate both
operators.
JIM PRUITT, Ma.ple Street, stated that he was asked
five nonths ago to show plans for a, significant capital invest-
ment to justify his proposal to lease a 300' berth. He stated
that he had provided an amended proposal and did not feel that
it was fair to be in another "eleventh hour" decision situation.
He stated that he had been trying to lease property at SMIC
since 1980, and he urged the Council to approve his lease
proI.XJsal when it carre before it on June 27.
XVII.
COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCMMENTS:
NOLL asked if there was any land set aside at SMIC to
accorrrrodate Valdatta' s concerns. Schaeferrreyer stated that
there was a great deal ofundesignated land, all zoned
"Industrial". He stated that the city has not actively sought
"support" use of the property. He noted that the Business
Cormnmity has been concerned about a separate cormercial
district being constructed across the Bay.
DUNHAM stated that, had Steelman been successful in
his plans to joint venture with Fishing Company of Alaska, he
(Steelman) would be operating at the 300' berth and Pruitt would
have been "shut out".
XVIII .
ADJOURNMENT:
The rreeting was adjourned at 9: 11 p.m. and, after a
short recess, the Council reconvened in Executive Session to
discuss a city manager proposal received by the Mayor and to
evaluate the performance of the apI.XJinted staff.
'~~"
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H E. Gieseler
Mayor
(CSE154610 )
I I
I
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"'" ,........''''"''
. I, I
PAGE 127
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
I. CAlL 'ill ORDER:
The Jtme 27, 1988, regular m:=eting of the Seward City
Cmmcil was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CERll1ONY:
Cotmci1mernber Dunham led the pledge of allegiance to
the flag.
III. ROll CAlL:
Present were: Mayor Gieseler and Cmmci1mernbers Dun-
ham, Hilton, Noll, O'Brien and Sinnltis
(Meehan was excused)
Present also: City Manager Schaeferrreyer, City Attor-
ney Arvidson, Administrative Assistant
Martin, Engineering & Utilities Manager
Diener, Harbormaster Singleton, Police
Chief Bencardino, Fire Chief Gage,
Deputy Fire Chief Squires and City
Clerk Murphy
IV. APPROVAL OF MINUTES:
SJMUTIS M:lVED 'ill APPROVE THE MAY 23, MAY 26, JUNE 9,
AND JUNE 13, 1988, MINUTES AS WRITTEN; THE MITION WAS SECONDED
BY HIL'illN AND CARRIED UNANIMJUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
Schaeferrreyer requested the addition of Agenda Item
XI(C)(6), proposed Resolution No. 88-089, appropriating funds
and awarding a contract for Fire Hall roof replacerrent.
Hilton requested that Consent Calendar Item No. 9
(application for Monte Carlo permit as filed by Anchorage
Chapter of Sweet Adelines) be placed on the regular m:=eting
agenda tmder New Business, Item No. "B".
SIMUTIS MOVED 'ill APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MYTION WAS SECONDED BY HIL'illN AND CARRIED UNANI-
M:lUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly Representative
Jonathan Sewall reported on the nost recent Assembly meeting.
VII.
CITIZENS' CCM1ENTS ON AGENDA 1'1>>18 NOT SCHEDULED FOR
PUBLIC HEARING:
None
( CSE154871 ]
11""1("')
.. _ ,~ ( 1
C.CLERK/RESO:
STREETS & RDS/
RESO:
PRISON/RESO:
PRISON/RESO:
ACCTS. PAYABLE:
FIREWORKS:
C. HALL/CON- .302:
ELEC.DEPT/CON-
2.'1 ~: (Meter
Reading Con.)
PAGE 128
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUrIS MlVED TO APPROVE THE CONSENT CALENDAR AS
THE MarrON WAS SECONDED BY DUNHAM AND CARRIED UNANI-
The following actions were taken:
AMENDED ;
MOUSLY.
1. Resolution No. 88-085, setting the salary for the
city clerk, was approved and filed;
2. Resolution No. 88-086, dedicating the Nash Road
Extension as a public right of way, was approved and filed;
3. Resolution No. 88-087, authorizing additional
purchase orders for SCCC hot water system IIDdifications, was
approved and filed;
4. Resolution No. 88-088, authorizing miscellaneous
prison emergency start-up corrq:>letion work, was approved and
filed;
5. June 10, 1988, Finance Department list of Ac-
counts Payable totalling $1,302,483.55, was approved for payment
and filed;
6. June 16, 1988, letter from the local Chanber of
Commerce requesting Council authorization to sponsor a fireworks
display within the city limits on Sunday, July 3, 1988, was
approved and filed;
7 . June 22 , 1988, meIIDrandum from Engineering &
Utilities Manager E. Paul Diener requesting authorization for
the city manager to negotiate and sign a PSA with Kurnin &
Associates in an aIIDunt N'IE $13,700, for design of handicap
improvements for City Hall, was approved and filed;
8. June 21, 1988, memorandum from Diener requesting
authorization to enter into a contract with S & G Enterprises
for electric meter reading services, was approved and filed;
9. MOVED TO REGULAR MEETING AGENDA;
10. June 14, 1988, memorandum from Administrative
Assistant Kerry Martin outlining city policy regarding Vendors
was noted for infonnation and filed;
11. June 21, 1988, memorandum from Diener regarding
bid opening for repair of the Fire Hall roof was noted for
infonnation and filed; and
12. June 21, 1988, memorandum from Martin regarding
the height and size of the Oldow building in the Small Boat
Harbor was noted for infonnation and filed.
IX.
PUBLIC HEARINGS:
( C5E154872 1
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PAGE 129
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
A. Notice of public hearing as posted and published
as required by law regarding the renewal of lease of a :f:1, 973
square-foot site within the Seward Lagoon Park (Block 1, Ocean-
view Subdivision) at 207 Dairy Hill Lane, to the Alaska Depart-
ment of Fish and Game for a salrmn management and research
facility was noted and the public hearing was opened; no one
appeared in order to be heard and the public hearing was closed.
B. Notice of public hearing as posted and published
as required by law regarding a proposed License Agreement for
use of a portion of the Municipal Boatlift Dock, a portion of
the City "T" Dock and the Wharf between these docks, all located
within the Seward Small Boat Harbor, to Seward Fisheries, a
division of Icicle Seafoods, Inc., was noted and the public
hearing was opened; no one appeared in order to be heard and the
public hearing was closed.
C. Notice of public hearing as posted and published
as required by law regarding the proposed lease of the "Old
Depot" building and preferential use of the Fourth Avenue Dock
to 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.
D. Notice of public hearing as posted and published
as required by law regarding the proposed long tenn lease of
land to Seward Fisheries, Inc., a division of Icicle Seafoods,
Inc., located at 601 Old Airport Road, the property being IIDre
particularly described as a portion of Lot 10, all of Lots
11-15, Seward Industrial Park, and a portion of the Public
Access to the Boatlift Dock, to accormndate an expansion of the
Seward Fisheries plant, was noted and the public hearing was
opened; no one appeared in order to be heard and the public
hearing was closed.
E.
cancelled.
Public hearing on the proposed Ennis lease was
F. Notice of public hearing as posted and published
as required by law regarding a proposed long tenn lease of a
~1.76 acre unsurveyed parcel within U.S.S. 4827, located within
the Seward Marine Industrial Center, to James Pruitt, dba Seward
Ships Chandlery, was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
G.
cancelled.
Public hearing on the proposed Steelman lease was
X.
PRESENTATIONS WITH PRIOR OOTICE ONLY:
None
XI.
ORDINANCES AND RESOLUTIONS:
---- 0t'
.;. Ll'~)
PUBLIC HEARINGS:
(AK Dept. of
Fish & Game -
Seward Lagoon
Park)
PUBLIC HEARINGS:
(SFI - Preferen-
tial Dock Use)
PUBLIC HEARINGS:
(Ferry Lease)
PUBLIC HEARINGS:
(SFI lease ex-
pansion)
PUBLIC HEARINGS:
(Pruitt Lease -
SMIC)
r CSE154873 1
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PAGE 130
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
"
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ESTABLISHING CHAPTER 18
OF THE SEWARD CITY CODE, PIANNING AND
ZONING .
SIMUrIS MlVED TO INl'RODUCE PROPOSED ORDINANCE 00. 606;
THE MarION WAS SECONDED BY HILTON.
O'Brien noted that the Administration had at one time
expressed some concerns regarding the assumption of these powers
from the Borough and asked if these issues had been resolved.
Schaefermeyer stated that the city originally had two concerns -
lack of adequate funding from the Borough and the Borough's
earlier refusal to delegate the power to effect land use plan
changes to the city. He noted that over the past five or six
years, the city had received no funding or administrative
support for planning and zoning functions from the Borough with
the exception of assistance with the latest Corrq:>rehensive Plan
update. He added that the Borough Administration has now agreed
to grant limited planning powers to the city so that the Council
would have the authority to approve changes to the Land Use Plan
locally. Schaefermeyer reminded Council that it had taken 14 to
15 rmnths to get the last zoning change approved and reccmrended
that the Council support this ordinance requesting delegation of
those powers to the city. He noted that the Borough would
continue to be responsible for Corrq:>rehensive Planning.
In response to a question from O'Brien, Arvidson
stated that the city would assUlle some additional liability if
the powers were accepted and then used irrationally. He noted
that the city has some liability exposure already. Arvidson
cautioned that the city IIllSt be careful that the delegation of
powers and the enactment of the city's zoning code coincide so
that there is no time of "no zoning" within the city.
Simutis inquired about the time frame and was informed
that this was a four step process begirming with the enactment
of this ordinance by the city, enactment of a borough ordinance
approving or consenting to the city's request, enactment of a
borough ordinance deleting the Seward Urban District Zoning
Code, and enactment of a city ordinance adopting the Zoning
Code.
Sewall stated that the borough has been encouraging
this action by the city for some time. He cautioned the city to
investigate the liability issue carefully.
THE QUESTION WAS CAlLED AND THE MOTION TO INTRODUCE
PROPOSED ORDINANCE 00. 606 CARRIED UNANIMOUSLY. Public hearing
was scheduled for July 11, 1988. ( )
. C5E154674 _
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REGULAR MEETING - JUNE 27, 1988
VOLUME 23
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING THE RENEWAL
OF A LEASE WITHIN THE SEWARD IAGOON PARK FOR
A SAlMON RESEARCH AND MANAGEMENT FACILITY TO
THE ALASKA DEPAR'IMENI' OF FISH AND GAME.
HILTON MlVED TO APPROVE RESOLUTION NO. 88-079; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, PROVIDING FOR THE PREFER-
ENTIAL USE OF A PORTION OF THE SEWARD
MUNICIPAL SMAlL BOAT HARBOR DOCK AND WHARF.
NOLL MlVED TO APPROVE RESOLUTION 00. 88-080; THE
MOTION WAS SECONDED BY HILTON.
Schaefermeyer recommended postponement of the resolu-
tion. Arvidson stated that the Federal Maritime Comnission,
during the past 6 - 12 rmnths, has taken a IIDre active role in
reviewing agreements in Alaska. He stated that the FMC would
probably be concerned about granting preferential use of a
public facility to a private entity. Noll suggested that
Council approve the agreement before it and let the attorney
work with the FMC to resolve any problems that might arise with
respect to the preferential use issue.
THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE
RESOLUTION NO. 88-080 CARRIED UNANIMlUSLY.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, PROVIDING FOR THE
DISPOSAL BY LEASE OF THE "OLD DEPOr' BUILD-
ING AND PREFERENTIAL USE OF THE FOURTH
AVENUE DOCK BY THE STATE OF ALASKA MARINE
HIGHWAY SYSTEM.
~ ':',....
OCEANVIEW SUB/RE-
/RESO: (ADF&G
lease - Seward
Lagoon Park)
SMALL BOAT HARBOR/
RE- /RESO: (SFI
preferential dock
use agreement)
WATERFRONT TRACTS/
RE- /RESO:
(Ferry lease)
( CSE154875 )
132
FIRE DEPT/CON-
-z.l:il/BUDGET/
RESO: (Fire
Hall roof re-
pair)
PAGE 132
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
HILTON MlVED TO APPROVE RESOLUTION NO. 88-081; THE
MarION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING A LONG TERM
LEASE OF CITY avNED PROPERTY WITHIN THE
SEWARD INDUSTRIAL PARK SUBDIVISION TO ICICLE
SEAFOODS, INC.
NOLL MlVED TO APPROVE RESOLUTION 00. 88-082; THE
MOTION WAS SECONDED BY SIMUrIS.
Schaefermeyer requested postponement of the resolu-
tion. He stated that he had not received official approval of
the lease from Icicle Seafoods, and Arvidson had not had time to
adequately review the lease.
0' BRIEN MlVED TO POSTPONE ACTION ON THE RESOLUTION
UNTIL JULY 11, 1988; THE MarION WAS SECONDED BY HILTON AND
CARRIED UNANll1OUSLY.
5. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING A LEASE AGREE-
MENT WITH JAMES PRUITT, DBA SEWARD SHIPS
CHANDLERY.
SIMUrrS M:lVED TO APPROVE RESOLUTION 00. 88-084; THE
MOTION WAS SECONDED BY HILTON.
Arvidson stated that the lease was not yet ready for
approval He noted that Pruitt's attorney had submitted several
proposed changes to the lease which he (Arvidson) had received
only this IIDrning. He recommended postponement until July 11.
HILTON MlVED TO POSTPONE ACTION ON RESOLUTION 00.
88-084 UNTIL JULY 11, 1988; THE MOTION WAS SECONDED BY ooLL AND
CARRIED UNANIMlUSLY.
6. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, REAPPROPRIATING FUNDS AND
AWARDING A CONI'RACT FOR FIRE HALL ROOF
REPIACEMENT .
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REGUlAR MEETING - JUNE 27, 1988
VOLUME 23
SIMUrIS MOVED TO APPROVE RESOLUTION NO. 88-089; THE
MarrON WAS SECONDED BY HILTON.
Diener stated that Peninsula Roofing submitted the
only bid for the project. This bid totalled $31,521, excluding
Item No. 3 (replacement of damaged insulation). He noted that
the Council had earlier approved an appropriation of $31,900 to
corrq:>lete the project. Diener stated that he had negotiated a
lump sum agreement with the contractor for $32,500 to complete
the entire project including insulation replacement. However,
this would require the city to perfonn parts of the proj ect
including assistance in stripping the roof, trash rermval and
rermving and replacing the siren. In response to a question
from Hilton, Diener stated that the extent of damage to the
insulation would not be known until the roof was rermved.
0' Brien asked who would determine if insulation should be
replaced. Diener responded that the city W'Ould make that
detennination.
Gieseler stated that this would be a golden opportuni-
ty to add a second story to the Fire Hall to accorrroodate storage
or extra office space. Diener stated that the decision to add
an extra floor was a policy one which the Council W'Ould have to
make, but he stated that it would cost considerably IIDre than
the $35,000 project budget he was requesting.
THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE
RESOLUTION 00. 88-089 CARRIED UNANIMOUSLY.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. Gieseler noted a request filed by Boardwalk
lessees to lower boardwalk lease rates.
NO ACTION WAS TAKEN DUE TO IACK OF A MJrION FRCM THE
COUNCIL.
B. TAKEN FRCM CONSENT CALENDAR.
HILTON MlVED TO APPROVE AN APPLICATION FOR A MONTE
CARLO PERMIT AS FILED BY THE ANCHORAGE CHAPTER OF SWEET ADE-
LINES; THE MarION WAS SECONDED BY DUNHAM.
133
GAMES OF CHANCE &
SKILL PERMITS:
(Monte Carlo
Permit for Anch.
Chapter of Sweet
Adelines DENIED)
Hilton stated that he was not in favor of encouraging
this type of activity in Seward, and he further objected to
approving an activity of this type for 17 hours per day for
three days. Simutis stated that she hated to see an orga-
nization from Anchorage taking business and rmney away from
local organizations and individuals who have put rmnths of
effort into the Fourth of July celebration. Hilton noted thatEthe purpose of the organization (to provide education for its
( CSE154877 )
J.34
PAGE 134
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
rrernbers) was not particularly charitable. Dunham stated that
she was leery of approving the application in light of recent
publicity regarding private operators receiving the bulk of the
profit for games run under the auspices of a charitable orga-
nization.
THE QUESTION WAS CAlLED AND THE MlTION FAILED TO CARRY
WITH AlL PRESENT VOTING "00".
XIV. CITY MANAGER REPORTS:
DIENER gave a brief status report on several city
projects as follows:
1. DOCUllents transferring the Senior Center property
to the city have been signed and final architectural drawings
should arrive soon.
2. The contract for clearing brush and trees was
reported to be essentially complete.
3. The city has begun putting up parking signs. in
the Small Boat Harbor and will continue this project as s~gns
are received. (Simutis asked why enforcement of the new parking
regulations did not begin with a warning. Schaefermeyer re-
sponded that he had instructed the Police Department to enforce
the parking regulations unifonnly as soon as signs were in
place. )
4. Chugach Alaska Corporation work is proceeding and
the lease area has been cleared.
5. North Dock steel is on its way to Seward.
6. The water and sewer extension at SMIC is com-
plete.
7. Prison start up projects are just about corrq:>lete.
8. The Ferry Dock Study has been received and is on
file in the Clerk's Office.
9. All parties involved in the upcoming Fourth of
July weekend festivities have met to coordinate efforts for the
Fourth and the cleanup afterwards.
X:V. COUNCIL DISCUSSION:
o I BRIEN stated that he would like the administration
to find a way to limit or reduce potential exposure should the
city assUlle zoning and limited planning powers.
DUNHAM asked if Mindenbergs' lease required tearing
dawn the T-Shirt shop on his leased property. Martin stated
that this was not a requirement of the lease, but noted that
t C SE 154878 )
I
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:::
~
"
"
;'i ~
'::i.
PAGE 135
REGULAR MEETING - JUNE 27, 1988
VOLUME 23
rermval of the building would be necessary when the restaurant
is expanded. ~ also stressed the importance of registering
people to vote to support the Seward school bond issue this
October.
HILTON asked that the Pruitt lease be distributed to
Council in time for review before the July 11 Meeting.
roLL asked if the Library employees are now "on board"
and was informed that the transfer will take place July 1. He
also noted that the Science and Technology Foundation director
is Dr. Henry Cole, Box AD, Juneau, 99811.
GIESELER read a letter he had received from Cormndore
Arndt thanking the city for the Navy's reception during its June
1-3 visit. Gieseler also predicted that Seward would make a
clean sweep of the Mt. Marathon race.
XVI. CITIZENS' DISCUSSION:
JIM PRUITI, Maple Street, asked if Seward Ships
Chandlery could receive preferential use of the SMIC dock
similar to the city's arrangement with Seward Fisheries.
Gieseler stated that he would have to work out the details of
his lease with the city administration. Pruitt also noted that
he had purchased Seward Steelworks from Joel Steelman. (In
response to a question from ~, Schaefermeyer stated that
Steelman currently owes the city approximately $56,000.)
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
GIESELER asked how the city was progressing with the
collection of past due debts. Schaefermeyer stated that the
city has a policy which is followed by the administration for
the collection of debts to the city. He noted that the policy
includes filing of small claims actions and attachment of
pennanent fund dividends.
MURPHY stated that her office would be conducting
voter registration on two separate weekends during July to give
those who were unable to come into her office during regular
business hours an opportunity to register in time for the August
Primary election.
XVIII.
ADJOURNMENl' :
The meeting was adjourned at 9:02 p.m.
" ~
':;,
-:'l,
r CSE154879
~ ~.
C! ~4~O~
Ha . Giese er
Mayor
. (CitY' -SeaJ.) ,.:
, -'/'1" ,~~,./ ,
..,1:'1'." ., ,.~" _ ..~"(-
" ,'" ;;' i~ \_:,,:~5~~
_~ , (,('II
1~5
]
136
PAGE 136
REGULAR MEETING - JULY 11, 1988
VOLUME 23
I. CAlL TO ORDER:
The July 11, 1988, regular meeting of the Seward City
Council was called to order at 7: 30 p. m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
the flag.
III. ROLL CAlL:
Councilrnernber O'Brien led the pledge of allegiance to
Present were: Mayor Gieseler and Councilrnernbers Mee-
han, Noll, O'Brien and SiIIlltis (Dunham
and Hilton were excused)
Present also: City Manager Schaefermeyer, City Attor-
ney Arvidson, Ackninistrative Assistant
Martin, Engineering & Utilities Manager
Diener, Police Chief Bencardino,
Finance Director Peirson, Parks and
Recreation Director Yanez and City
Clerk Murphy
IV. APPROVAL OF MINUTES:
SIMUrIS MlVED TO APPROVE THE JUNE 27, 1988, MINUTES AS
WRITIEN; THE MarION WAS SECONDED BY NOLL AND CARRIED UNANIMlUS-
LY.
V. APPROVAL OF REGULAR MEETING AGENDA:
Schaefermeyer recommended that Council postpone the
public hearings under agenda items IX(B) (Ennis) and IX(C)
(Pruitt) and that Council postpone action on proposed Resolution
No. 88-084 (Pruitt lease). He also noted that he would be
requesting the addition of two new items to the Consent Calen-
dar: 7) Continuation of the Trade Board; and 8) Arnendmmt No. 2
to the Campground Services contract.
SIMUrIS MlVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MOTION WAS SECONDED BY NOLL AND CARRIED UNANIMlUS-
LY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly Representative Sewall
was not present and no report was given.
VII. CITIZENS' C<M1ENI'S ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
( CSE154860 1
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PAGE 137
REGULAR MEETING - JULY 11, 1988
VOLUME 23
VIII. APPROVAL OF CONSENT CALENDAR:
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MarION WAS SECONDED BY SIMUrIS AND CARRIED UNANI-
MlUSLY. The following actions were taken:
1. Resolution No. 88-091, authorizing a purchase
order for prison roof modifications necessitated by the instal-
lation of new water heaters without full utilization of city bid
procedures, was approved and filed;
2. Resolution No. 88-092, designating beach access
and camping areas in the Fourth of July Creek area, was approved
and filed;
3. July 6, 1988, memorandum from Engineering and
Utilities Manager E. Paul Diener requesting Council approval of
the June 20, 1988, revisions to the Spring Creek Correctional
Center's project budget was approved and filed;
4. July 6, 1988, memorandum from Diener requesting
Council authorization to sell approximately 600 c.y. of under-
sized shot rock to Afognak Logging Company at a price of $5/c.y.
was approved and filed;
5. July 6, 1988, meIIDrandum from Diener requesting
Council authorization to approve Change Order No. 1 to the
clearing contract with Stefanski Brothers for a lump sum aIIDunt
of $3,000 was approved and filed;
6. June 7, 1988, memorandum from Diener noting the
following change orders to the Sarrwhan contract for prison
construction was noted for infonnation and filed:
#184 - Run circuits and connect cabinet heaters #41,
42 an<:ILi5 and change all unmarked conduit from lz" IMC to
3/4" (+$17,914);
#185 - Perform all architectural items per Revision 6B
(+$12-;031") ;
{/186 - Extend length of concrete slab in APS building
from IrLi" to 12'2" (+$2,000);
{/187 - Install a 6" concrete base for the steel
colurms under the tower in the APS building (+$1,000);
{/188 - Install U-type IIDlding at the glue-on acous-
tical tile ceilings (+$3,225);
#189 - Provide a credit for the transportation of one
DOC person for factory training (-$1,626);
137
PRISON/RESO:
CAMPGROUNDS/RESO:
PRISON: (Budget)
PROPERTY SALES:
(Gravel sale to
Afognak)
CON--z.~4 :
CON-1SQ:
( C5E 1548 81 )
138
TRADE BOARD:
(Continuation)
CON-''7/~
04......
PUBLIC HEARINGS:
(SFI Lease)
PAGE 138
REGULAR MEETING - JULY 11, 1988
VOLUME 23
#190 Dewater for RFP 11112 in front of building 113
(+$785);
11191 - Install roof drains and heater at the APS
building loading dock (+$14,358);
11192 - Install electrical connections to the freezer
door frCln heater in the APS building (+$746);
11193 - Install angle bracing at the clerestories of
Buildings 2 and 3, using detail A-403 (+$33,700);
11194 - Adjust the preformed metal roofing at the APS
clerestory hips (+$3,219);
#195 - Install stairs, decks, fuel system, rails and
shelving for the added Dar/PF office trailers (+$5,500);
11196 - Reposition the window frame 1118 (+$465);
11197 - Install patching due to water damage to the
fireproofing (+$4,738);
11198 - Install a vertical stainless steel filler to
prevent garbage from acctmlllating between the backsplash
and the window for food service (+$1,301);
11199 - Install drywell 27 feet north of the outside
wall ana a second drywell in front of Building 113
(+$10,347); and
11200 - Install type "A" fire stop at the top of <:MU
walls~Building #5 (+$21.043);
7. July 11, 1988, memorandum from Murphy reccmrend-
ing that the Council authorize continuation of the Trade and
Commerce Advisory Board through June 30, 1989, was approved and
filed; and
8. Amendment No. 2 to the Campground Management
Contract, adding the fee camping area designated in Resolution
No. 88-092 to the list of designated public camping areas, was
approved and filed.
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding the proposed long tenn lease of a
portion of Lot 10 and all of Lots 11-15, Seward Industrial Park
Subdivision, and a portion of the PUblic Access to the Boatlift
Dock, to Seward Fisheries, a division of Icicle Seafoods, was
noted and the public hearing was opened.
( CSE154882 1
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PAGE 139
REGULAR MEETING - JULY 11, 1988
VOLUME 23
JOHN WJODRUFF, 613 First Avenue, representing Icicle
Seafoods, stated that the lease agreement has now been signed by
the President of Icicle Seafoods. He stated that a design team
has been retained to design and oversee construction of the
expansion. Woodruff also stated that Icicle Seafoods fully
expects to have an additional one or two canning lines in
operation next season.
In response to a question from Gieseler, Schaefermeyer
stated that he and the attorney had reviewed the minor IIDdifica-
tions to the lease agreement suggested by Icicle Seafoods and
that the administration was ready to recommend approval of the
lease.
DARLENE LUST, Sailing, Inc., stated that she did not
object to the expansion of Seward Fisheries but was concerned
about access to the Boatlift Dock. She stated that she had
heard ruIOOrs that the city intended to IIDve the boatlift opera-
tion to "the other side of the Bay", adding that she would
object to such a IIDVe. Schaefermeyer noted that the adminis-
tration would not reccmrend IIDving the Travel lift across the
Bay, but was currently researching the feasibility of purchasing
a IIllch larger lift to use at the Industrial Center. He assured
Ms. Lust that the travel lift would remain in the Small Boat
Harbor. Administrative Assistant Martin pointed out the pro-
posed new access route on a map of the area and explained the
replat process.
No one else appeared in order to be heard and the
public hearing was closed.
B. POSTPONED
C. POSTPONED
X. PRESENTATIONS WITH PRIOR NOTICE ONLY:
LEE GORDANIER, representing the Small Boat Harbor
Boardwalk Lessees, asked that Council consider lowering the
rates charged for Boardwalk Lease Sites. He stated that other
sites in the Small Boat Harbor currently rent for $0.40 - $0.48
per square foot annually while Boardwalk sites rent for $1.64
per square foot. He stated that Boardwalk lessees do not mind
paying a premium for their choice location, but objected to
paying rates 300% above what others in the Harbor are paying.
Meehan stated that the $1500 flat lease fee for
Boardwalk sites had been established as a way of recovering the
costs to the city of developing the Boardwalk area. He noted
that administering these leases was costly.
o I Brien asked if there was an appeal process for
lessees who objected to the lease rates. Schaefermeyer stated
that IIDSt leases of city property contain such an appeal
1 ~~
CITIZENS DISC:
(Gordanier, Lee)
( (5\:154883 l
140
SBH(Boardwalk) :
(Admin. to neg.
lease rates w/
Boardwalk les-
sep.s)
PAGE 140
REGULAR MEETING - JULY 11, 1988
VOLUME 23
process, but the Boardwalk leases were for a shorter period of
time with only one lease rate throughout the life of the lease,
and no appeal process had been included.
In response to a question from Noll, Schaefermeyer
stated that Ray's Waterfront and The Landing were each paying
$0.40 per square foot. with a provision for reappraisal every
five years.
Simutis stated that she had no problem with adjusting
the Boardwalk lease rates to bring them in line with others in
the area. She stated that she objected to penalizing these
businesses because of their seasonal nature. SiI!lltis added that
the Boardwalk shops are a real benefit to the city.
In response to a question from Gieseler, Schaefermeyer
stated that appraisals of city property generally run about
$1,000 per lot; however, a letter of opinion from the appraiser
would probably be substantially less expensive.
Arvidson stated that the flat rate had been chosen
initially because any appraisal of the property would probably
cost IIDre than the rent to be realized from it. He noted that
the objective seemed to be to arrive at a fair market value for
the lease sites and he recommended that the city and the lessees
negotiate that rate.
O'Brien noted that the city needs to look seriously at
its lease posture in the Harbor and suggested that the adminis-
tration work toward a blanket time frame for appraisals every
five years.
GIESELER, WITH THE CONSENT OF COUNCIL, INSTRUcrED THE
AIl1INISTRATION TO NEGOI'IATE A LEASE RATE WITH THE BOARIWALK
LESSEES.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING SECTION 14-159
OF THE SEWARD CITY CODE REIATING TO CONVIC-
TIONS AND THEIR PENALTIES AND ADOPTING THE
STATE TRAFFIC BAIL FORFEITURE SCHEDULE.
SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 607;
THE MlTION WAS SECONDED BY 0' BRIEN AND CARRIED UNANIMlUSLY.
Public hearing was scheduled for July 25, 1988. (Noll asked
( CSE 154884 1
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PAGE 141
REGULAR MEETING - JULY 11, 1988
VOLUME 23
Arvidson to reword the last paragraph of Section 1 to make it
IIDre easily understood.)
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ESTABLISHING CHAPTER 18
OF THE SEWARD CITY CODE, PIANNING AND
ZONING .
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.
o I BRIEN MOVED TO ENACT ORDINANCE NO. 606; THE MOTION
WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING A LONG TERM
LEASE OF CITY CMNED PROPER'lY WITHIN THE
SEWARD INDUSTRIAL PARK SUBDIVISION TO ICICLE
SEAFOODS, INC.
Murphy noted that a IIDtion to approve was on the
floor. (Action on the resolution had been postponed from the
June 27, 1988, meeting.)
Meehan requested pennission from the chair to abstain
due to his position as an employee of Icicle Seafoods; the Mayor
noted that a financial conflict of interest did exist and
granted pennission to abstain.
THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE
RESOLUTION NO. 88-082 CARRIED WITH FOUR "YES" VOTES AND MEEHAN
ABSTAINING.
2. RESOLUTION NO. 88-084 POSTPONED UNTIL
07/25/88. (SEE APPROVAL OF REGULAR MEETING AGENDA.)
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
141
PLANNING & ZONING/
ORD: (Requesting
planning & limited
zoning powers from
KPB)
INDUSTRIAL PARK
SUB/RE- /RESO:
(Approving SFr
lease)
(CSE154885 1
142
TAXES: (Auth.
participation
in Fish Tax
Credit prog./
Seward r.1arine
Services)
CLAIMS FOR DMGS:
(Martensen, B./
DENIED)
PAGE 142
REGULAR MEETING - JULY 11, 1988
VOLUME 23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING CITY PARTICI-
PATION IN THE FISH TAX CREDIT PROGRAM ON
BEHALF OF SEWARD MARINE SERVICES.
SIMUTIS MlVED TO APPROVE RESOLUTION NO. 88-090; THE
MarION WAS SECONDED BY oolL.
Gieseler asked if the tax credit was to be used to
expand or create a local processing facility or to facilitate
off-loading of fish to be processed elsewhere. He stated that
it was his understanding that only fish processed in Seward
would generate raw fish tax for the city, and he was concerned
that fish off-loaded for processing in Kenai would mean a loss
of raw fish tax for Seward. Schaefermeyer stated that, in order
to benefit from this tax credit, the applicant would be required
to use the funds to expand or improve processing facilities
within the tax jurisdiction (Seward).
RHONDA ANDERSON, a principal in Seward Marine Ser-
vices, responded to several questions from the Council concern-
ing the proposed improvements. She stated that SMS intended to
tie into the city's water system, make repairs and improvements
to the Anderson Dock and purchase equipm=nt. Anderson stated
that, initially, fish received over the dock would be shipped
outside the city for processing, but her long range plan was to
expand her facility to allow local processing.
In response to a question from Noll, Schaefermeyer
stated that the improvements would add to the tax base and
result in IIDre real and personal property tax payments to the
city.
THE QUESTION WAS CAlLED AND RESOLUTION 00. 88-090 WAS
APPROVED WITH FOUR "YES" VOI'ES AND MEEHAN ABSTAINING. (Arvidson
advised Meehan that his status as an employee of Seward Marine
Services' only local competitor, Seward Fisheries, constituted a
conflict of interest.)
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. SIMUrIS MlVED TO APPROVE THE CIAIM FOR DAMAGES
TOI'ALLING $153.50 AS FILED BY BAHNE MARTENSEN; THE MOTION WAS
SECONDED BY MEEHAN AND FAILED WITH ALL PRESENT VarING "NO".
B. Gieseler stated that, through his efforts and the
support he had received from Senator Stevens, the U. S. Post
Office had agreed to install two mail drop boxes and coin-
operated starrq:> machines in the city. One of the boxes and
machines was to go in the covered area outside the
( CSE 154886 ]
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PAGE 143
REGULAR MEETING - JULY 11, 1988
VOLUME 23
Harbonnaster' s Building in the Small Boat Harbor. The other was
to be placed in the downtown area; however, the local Postmaster
had asked that Council designate the exact location. Gieseler
stated that an area in front of First National Bank might be a
good location. Diener stated that placing the box on the
sidewalk would probably present a problem. In addition, the
small park adjacent to the bank was private property and would
require permission from the Bank before it could be installed.
O'Brien suggested placing the mail box in front of City Hall.
FOUOWING FURTHER DISCUSSION, TIlE COUNCIL INSTRUCTED
THE ArMINISlRATION TO DESIGNATE A PIACE FOR THE MAILBOX AND
STAMP MACHINE.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER stated that Govemor Cowper had vetoed
$465 ,000 from the reappropriations budget which had been ear-
marked for an Anchorage Navy Homeporting study.
XV. COUNCIL DISCUSSION:
NOIL noted that the Alaska Railroad Board would meet
in Seward at the IMS Rae Building at 1:00 p.m., Wednesday, July
27. He urged all interested to attend. Noll also congratulated
the Fourth of July celebration organizers, stating that the
weekend was a great success. Noll commented that the recent
newspaper articles concerning comments made by the Korean
President concerning Alaskan barley were misleading. He stated
that Koreans were interested in co-sponsoring agricultural
proj ects, not in purchasing Alaskan barley.
MEEHAN stated that he had read the Clerk's meIIDrandum
concerning city lease procedures and supported her recommenda-
tion that the administration be instructed to follow the lease
procedures already in place. He stated that he agreed that a
signed lease should be on file in the Clerk's Office before any
advertisement of public hearing on the lease was approved.
Meehan noted that there would occasionally be exceptions to this
rule, but established procedures should be followed for IIDSt
leases. Schaefermeyer stated that the administration had no
problem with following the procedures, but is often instructed
by the Council to proceed with due diligence only to have the
lessee fail to follow through with equal speed. He noted the
Pruitt lease as a prime example. He added that he agreed that a
slower pace may be needed and stated that he had attempted to
set a policy that Council not be asked to act on a lease until a
signed lease is in place. Meehan noted that he was not implying
that the Administration was solely responsible for past problems
and stated that the Council had also been at fault.
O'BRIEN stated that he, too, was concemed with the
speed with which things are pushed through, noting that the
Clerk is often put in a difficult position when trying to get
14:3
u.s. P.o. (Dwntwn
Mail Box loca-
tion)
( CSf 154887 )
144
PAGE 144
REGULAR MEETING - JULY 11, 1988
VOLUME 23
agenda materials together in a timely rnarmer. He added that he
was tired of getting stacks of paper in front of the Council
just prior to the start of the meeting. He also stated that the
city needs to assure that the lessee pays his fair share of the
costs of developing a lease. O'Brien asked for a report on city
abatement of public nuisances. Diener stated that a report
would be prepared and presented to the Council at the July 25
meeting.
GIESELER asked for a status report on the steel for
the North Bulkhead Dock. Diener responded that it should arrive
in Seward on July 18. Gieseler also congratulated Diener, city
street crews and the Chamber of Commerce on the cleanup effort
following the Fourth of July celebration. Gieseler stated that
he wanted the Trade Board to know that it is appreciated by the
Council and noted that its members are a real asset to the city.
XVI. CITIZENS' DISCUSSION:
LEE GORDANIER, Mile 1.5, Exit Glacier Road, stated
that, on behalf of the people in the Harbor, he wanted to thank
the city for the mail drop box in the Harbor. He stated that
the one downtown should be located in the small park next to the
bank.
XVII.
COUNCIL AND ArMIN. RESPONSE TO CITIZENS' CCM1ENTS:
O'BRIEN stated that, since tour busses discharge and
pick up passengers at the City Hall intersection, IIDst of these
visitors would benefit from locating the mail box at City Hall.
XVIII .
ADJOURN1ENT :
The meeting was adjourned at 8:55 p.m.
~c ~~t~n4
Ha E. Giese er
Mayor
...V-~-?~~~
/0' -.I.. ~:...,...~'"1 '<':;..
i c>:..,'tJ"'if;;,4/'f>O \.
:; :'# ...- "". ~.
? n ~ SEAL :.~.
( C SE 154888 ]
I
I
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145
PAGE 145
REGULAR MEETING - JULY 25, 1988
VOLUME 23
I. CAlL TO ORDER:
The July 25, 1988, regular meeting of the Seward City
Council was called to order at 7: 30 p. m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMJNY:
Counci1rnernber Noll led the pledge of allegiance to the
flag.
III. ROIL CAlL:
Present were: Mayor Gieseler and Councilrnenhers Dun-
ham, Hilton, Meehan, Noll and Simutis
(O'Brien was excused.)
Present also: City Manager Schaefermeyer, Administra-
tive Assistant Martin, Port Marketing
Director Gates, Police Chief Bencar-
dino, Parks and Recreation Director
Yanez, Finance Director Peirson and
City Clerk Murphy
SPECIAL ITEMS:
A. Grace Scholl presented the Mayor with a flag
which she had received during Flag Day celebrations in Balti-
more, Maryland.
B. Seward International Friendship Association
President Jonathan Sewall introduced Japanese exchange students
Takahiro Arisawa, Toshiro Chikaoka, Takako Yamauchi and Kayoko
Oba and Seward students Russell Burnard and Beth Renwick. He
noted that Eric Jackson and Tanrny Treece ~uld also represent
Seward in this year's exchange program.
C. Gieseler introduced Yukie Takenaka and explained
that she had participated in the annual student exchange in 1985
and had returned to Seward two years later to attend high school
in Seward. He declared Ms. Takenaka to be an honorary citizen
of Seward and presented her with a plaque designating this
status.
IV. APPROVAL OF MINUTES:
MEEHAN MOVED TO APPROVE THE JULY 11, 1988, MINUTES AS
WRITTEN; THE MOTION WAS SECONDED BY NOlL AND CARRIED UNANlM)US-
LY.
V. APPROVAL OF REGULAR MEETING AGENDA:
SCHAEFERMEYER requested the addition of three items to
"CITY MANAGER REPORTS" as follows:
t CSE154689 1
146
SEW. INDUS. PARK/
RE- /RESO:
C.ATTY:
C.ATTY:
ACCTS.PAYABLE:
CON-ISq:
z.(p\
LOl
PAGE 146
REGULAR MEETING - JULY 25, 1988
VOLUME 23
A. Repair of Fourth of July Creek Sewage Treatment
Plant outfall;
B. Marine marketing update by Christopher Gates; and
C. Update on Harbor Parking Plan and Salmm Derby
preparations.
GIESELER requested the addition of NEW BUSINESS Item
No. "c" - Alaska Korea Business Council Trade Fair.
SIMUrIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Sewall gave
a verbal report of the July 19, 1988, Assembly meeting.
VII. CITIZENS' C<M1ENl'S ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
HILTON MlVED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED
UNANlMJUSLY. The following actions were taken:
1. Resolution No. 88-084, approving a lease agree-
ment with James Pruitt, dba Seward Ships Chandlery, was post-
poned until a signed lease agreement is on file in the city
clerk I s office;
2. Resolution No. 88-093 , approving a short tenn
lease of city property to B & R, Inc., dba B & R Envirorunental,
for storage of container vans, was approved and filed;
3. July 11, 1988, invoice from Wohlforth, Flint &
Gruening totalling $248.97 for legal services rendered through
June 30, 1988, was approved for payment and filed;
4. April 1988 invoice from lITGP&B for legal services
totalling $33,010.10 was approved for payment and filed;
5. July 19, 1988, Finance Department's list of
Accounts Payable totalling $590,387.38 was approved for payment
and filed;
6. July 20, 1988, memorandum from Engineering &
Utilities Manager Diener noting prison construction change
orders was noted for infonnation and filed. Noted in the
( CSE 154890 )
I
I
I
147
PAGE 147
REGULAR MEETING - JULY 25, 1988
VOLUME 23
rneIIDrandum were Change Orders No. 201 and 203 (S8!ThVhan con-
tract); No.6 and 7 (Titan Construction contract); and No.7, 8
and 9 (Zubeck, Inc., contract).
IX. PUBLIC HEARINGS:
A. Public hearing on the proposed lease of city
property to James Pruitt, dba Seward Ships Chandlery, was
cancelled.
X. PRESENTATIONS WITH PRIOR OOTICE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING SECTION 10-21(C)
OF THE CITY CODE, AUIHORIZED INVES'IMENI'S.
MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 608;
THE MlTION WAS SECONDED BY ooIL AND CARRIED UNANIMlUSLY. Public
hearing was scheduled for Augus t 8, 1988.
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the TRAFFIC/ORD:
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING SECTION 14-159
OF THE SEWARD CITY CODE REIATING TO CONVIC-
TIONS AND THEIR PENALTIES AND ADOPTING THE
STATE TRAFFIC BAIL FORFEITURE SCHEDULE.
Notice of public hearing as posted and published as
required by law was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
HILTON MOVED TO APPROVE ORDINANCE NO. 607; THE MOTION
WAS SECONDED BY NOIL.
SIMUrIS MOVED TO AHEND THE PROPOSED ORDINANCE BY
SUBSTITUTING THE FOILCMIt'G FOR THE IAST PARAGRAPH IN SECTION 1:
( CSE154891 1
148
LEASE PROPOSALS:
(Ci ty to negot.
,,",ISMS for
lease of tide-
lands)
,
I
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PAGE 148
REGULAR MEETING - JULY 25, 1988
VOLUME 23
UNLESS ANOmER PENALTY IS EXPRESSLY
PROVIDED BY TIllS CODE FOR ANY PARTICUIAR
PROVISION OR SECTION, THE PENALTY PROVIDED
HEREIN SHALL APPLY.
THE MlTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY.
THE QUESTION WAS CAlLED ON THE MAIN MarION AND ORDINANCE 00. 607
WAS APPROVED AS AMENDED BY UNANIMOUS VOTE OF COUNCIL.
C. Resolutions:
None
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. RHONDA ANDERSON, one of the family owners of
Seward Marine Services, explained SMS I s plans for expansion of
its facility. She explained that the proposed lease sight would
allow for development of a processing plant which would make it
possible for SMS to process fish locally rather than transport
them to Kenai. She stated that SMS had already applied for a
Corps of Engineers permit for dredging and planned to use the
dredged material as fill in the lease site. She added that, if
possible, she would like to start dredging this fall with
construction to begin in the Spring of 1989. In response to a
question from Hilton, she stated that there would be no ob-
jection to a perfonnance clause with a 1990 deadline for com-
pletion of construction.
Anderson stated that, if her proposal was approved by
the Council, she would be coming back to the city with a request
that Lowell Point Road be paved. In response to a question from
Hilton, she stated that she had discussed this with Engineering
& Utilities Manager Diener and hoped to see this project includ-
ed in the city's next paving project.
Hilton also inquired about the impact this development
';oIOuld have on the city's current water problem and the sewage
treatment plant. Schaefermeyer stated that this project would
increase SMS I S demand for water but would have no impact on the
sewer system's capacity.
GIESELER INSTRUCTED THE AIMINISTRATION TO PROCEED WITH
NEGOTIATIONS WITH SEWARD MARINE SERVICES FOR DEVELOPMENT OF A
LEASE OF CITY -a.JNED PROPERTY; THERE WAS 00 OBJEcrION FRCM THE
COUNCIL. (Meehan earlier stated his intention to abstain from
discussion or voting on this issue, noting his conflict of
l CSEl54692 1
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REGULAR MEETING - JULY 25, 1988
VOLUME 23
interest as a management employee of SMS's only local corrq:>eti-
tor. )
B. Schaefermeyer noted the July 19, 1988, memorandum
from Engineering & Utilities Manager Diener which had been
included in the Council packet and asked Diener to give the
Council some background on this item.
DIENER stated that the city had lost one of its water
wells at Ft. Rayrmnd and would have to replace it with another
in order to meet the city's current and projected water needs.
He noted that, since all of the city's water wells are located
in the North end of town, he would suggest locating the new well
in the Lowell Canyon area. He requested authorization to
proceed with the development of a test well in that area to
detennine if there is sufficient water to go forward with a
production well.
NOLL MOVED TO AUlliORIZE THE CITY MANAGER TO CONTRACT
FOR CONSTRUCTION OF A TEST WEIL IN LCMEU. CANYON OR SCl1E ornER
LIKELY IDCATION SOUlli OF THE IAGOON; THE MOTION WAS SECONDED BY
HILTON AND CARRIED WITHOUT OBJECTION.
C. Noll stated that the Alaska-Korea Business
Council was cosponsoring a trade fair in Seoul in December and
urged the city to participate. Meehan noted that the city had
participated in other delegations to Korea in the past and these
had been very productive. He agreed that it would be a good
idea for the city to send a delegation and sponsor a booth at
the fair. Schaefermeyer stated that, if the Council wished to
participate, it IIllst make a sufficient conrnitment of people and
resources to upgrade and properly theme the city display and to
man the booth once the fair begins.
NOLL MOVED TO DIRECT THE CITY ArMINISTRATION TO DO TIlE
PIANNING NECESSARY TO ATTEND THE TRADE FAIR SUCCESSFULLY IN
DECEMBER; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT
OBJECTION.
XIV. CITY MANAGER REPORTS:
DIENER stated that Fourth of July Creek sewage treat-
ment plant outfall had suffered erosion as a result of tidal
action and needed imnediate repair. He estimated the cost of
the project at $10-15 Thousand, with funding coming from the
prison construction account. He stated that he had requested
price quotes from METCO and Afognak and anticipated a response
on Monday or Tuesday (August 1-2). He asked that Council permit
him to award a contract to the low "bidder" imnediately upon
receipt of the two quotes, with ratification of the contract
award scheduled for the next regular meeting. THERE WAS NO
OBJECTION FRCl1 THE COUNCIL.
GATES presented a status report on current city
projects as follows:
149
WATER DEPT/CON-
013 :
COMMUNITY PROMO-
TION: (City to
participate in
KATFA 88)
PRISON: (Repair of
STP outfall)
l CSE154893 1
150
PAGE 150
REGULAR MEETING - JULY 25, 1988
VOLUME 23
Pruitt Lease - The administration is fairly close to a
negotiated lease with Seward Ships Chandlery.
Navy Homeffiorting - He has received Sale positive
infonnal cormtents at the city's presentation was well re-
ceived. Reviewers have indicated that the city of Seward is
armng the top three finalists.
Alaska Railroad Board Meetin~ - Scheduled for Wednes-
day, July 27, 1: 00 p.m., IMS Rae Building. He encouraged
everyone to attend.
Coal Dock Transfer - This issue may be raised at the
ARR Board meeting, but a resolution is not expected in the near
future.
Inlet SalIIDn - The company has tentatively agreed to
80% local processing as a condition of the lease.
Hotel - A major hotel is still interested in locating
in Seward.
,'j'
,
SCHAEFERMEYER stated that all street and traffic signs
have been put up. He noted that there have been a few public
awareness problems and the administration intends to order
additional signs for the boat launch ramp area. He also stated
that enforcement of parking regulations in the boat harbor would
contirroe. Schaefermeyer noted that increased traffic during
Salrmn Derby might necessitate the hiring of additional enforce-
ment personnel.
SCHAEFERMEYER stated that activity at SMIC has in-
creased with the arrival of the steel for the dock. He noted
that additional signs and controls have been installed to avoid
conflicts between private vehicles and trucks working in the
area.
x:J. COUNCIL DISCUSSION:
DUNHAM stated that she had attended the Prison Indus-
tries Board meeting on July 11. She noted that a proposal had
been made to IIDve the furniture plant at the Kenai facility to
Spring Creek Correctional Facility; however, this probably would
not occur for another year. Dunh8rn also encouraged those
present to attend the ARR Board meeting. She stated that there
was a need to call Frank Turpin to task for his sarcasm when
referring to Seward and Moose Pass and that he should be in-
structed to live up to his promises.
MEEHAN stated that there was still a traffic con-
gestion and parking problem in the boat harbor and suggested
that the city consider constructing another boat launch ramp
outside the Small Boat Harbor area. Schaefermeyer stated that
this had been considered a few years ago. At that time the city
( C 5E 154B94 1
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PAGE 151
REGULAR MEETING - JULY 25, 1988
VOLUME 23
had looked at two locations - one south of the breakwater and
one in the vicinity of the boat grid at the SFI meal plant.
However, the first was too close to the existing launch and the
other was in an industrial area. He noted that recent improve-
ments to the ramp itself and the approach to the ramp should
help ease congestion in the area. Schaefermeyer stated that
Council should consider whether the cost of an additional launch
ramp was justified by the inconvenience boaters experienced
during the 10 days of Salrmn DeIby each year.
ooLL noted that the KATFA 88 trip was open to anyone.
He also no~that he and Paul Diener had been attempting to get
a two-star admiral to attend the 1988 Rotary Banquet as guest
speaker.
SIMUrIS noted that the new signs in the Small Boat
Harbor were a step in the right direction but suggested that the
city consider issuing warning tickets initially. She said this
was a corrrron practice in other areas, such as Homer, and stated
that if the city's intent was to reorganize the parking plan in
the harbor area, rather than increase city revenues, this would
be a better approach. Schaefermeyer responded that citation was
the only effective was to initiate a new parking program. In
response to SiIIlltis' question concerning access to Fourth of
July Beach, Schaeferrneyer stated that access was in place, was
well "signed" and away from the construction zone. Simutis also
inquired about the Ennis lease. Gates responded that the ball
was now in the city's court. Finally, Simutis stated that she
had been attending the Seward Enhancement Association's meetings
as Council's representative. Currently SEA is putting together
a video about Se\Nard and a flyer listing sixty-one free things
to do in Seward.
GIESELER asked why the Charter Comnittee had not yet
reported to Council. Simutis stated that she had approached the
attorney concerning the Charter Comnittee, but he had not yet
passed any infonnation on to the conrnittee. Gieseler reported
that the post office boxes and stamp vending machines have
arrived. He also noted that he had written a letter to General
Telephone asking that pay phones be placed at the Railroad Dock
and the Ferry Dock. Gieseler stated that he is working with the
Postmaster to devise a commeIIDrative cancellation stamp for the
Salrmn Derby. Finally, Gieseler noted that the first community
news on cable television had been broadcast earlier that day.
He thanked John Burckhardt and Seward Cab levis ion for sponsoring
the program.
XVI. CITIZENS' DISCUSSION:
BRUCE TRYGSTAD, 319 Second Avenue, noted that anyone
wishing membership in the World Trade Conrnission could purchase
one for $250. He also stated that the city should get full
value for its leases and should retain control over its leased
properties.
( CSEl54895 ]
152
PAGE 152
REGULAR MEETING - JULY 25, 1988
VOLUME 23
JIM PRUITT, Maple Street, Forest Acres, stated that he
was still in negotiations with the city on his lease and hoped
to have a signed lease by August 8. He also urged the Council
to consider reinstating the Harbor Corrmission. Pruitt suggested
that the city actively engage in a bottanfish campaign.
XVII.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS I CCM1ENl'S:
NOIL stated that the World Trade Conmission had an
office in Anchorage and was part of a worldwide network.
XVIII.
ADJOURNMENl' :
The meeting was adjourned at 9:15 p.m.
C '~.
J':d~' Of ~~0~
" " ,.1>0
c>:~ r.~...
:~ .""".,.... ..
SE At
~E' ~;h-&
. Giese er
May
PAGE 152
REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
I. CAlL TO ORDER:
The August 8, 1988, regular meeting of the Seward City
Council was called to order at 7: 32 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnernber Hilton led the pledge of allegiance to
the flag.
III. ROIL CAlL:
Present were: Mayor Gieseler and Councilrnernbers Dun-
ham, Hilton, Meehan, Noll, O'Brien and
SiI!lltis
Present also: Interim City Manager Schaefermeyer, Ci-
( CSE 154696 ]
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REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
ty Attorney Arvidson, Harbonnaster
Singleton, Finance Director Peirson,
Engineering & Utilities Manager Diener,
Administrative Assistant Martin, Port
Marketing Director Gates, Police Chief
Bencardino, Parks & Recreation Director
Yanez and City Clerk Murphy
IV.
APPROVAL OF MINUTES:
HILTON mVED TO APPROVE THE JULY 25, 1988, MINUTES AS
vJRITIEN; THE MOTION WAS SECONDED BY NOlL AND CARRIED UNANIMlUS-
LY.
V. APPROVAL OF REGULAR MEETING AGENDA:
DUNHAM requested the addition of "Unfinished Business"
Item No. "A" - Discussion of the Battery Clean-up Shipment (B &
R Envirornnental lease).
GIESELER requested the addition of "New Business" Item
No. "A" - Trade Board Appointment.
SCHAEFERMEYER noted that he would be adding three
items to the Consent Calendar at the appropriate time.
MEEHAN MlVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MOTION WAS SECONDED BY oolL AND CARRIED UNANIMOUS-
LY.
GIESELER MlVED TO MEET IN EXECUTIVE SESSION :IM-1EDIATE-
LY FOI.J1MING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS
ON-GOING LITIGATION; THE MlTION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall was not present and no report was given.
VII. CITIZENS' CCM1ENl'S ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
SCHAEFERMEYER requested the addition of three items
(No. 11, 12 and 13) to the Consent Calendar, noting that Council
had been copied with meIIDranda supporting the items.
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MouSLy. The following actions were taken:
153
( C Sf 154897 )
5. Resolution No. 88-098, authorizing encroachment
into the public Right-of-Way by the New Seward Hotel, was
approved;
DAMAGES: 6. The city manager was authorized to negotiate a
settlement for an armunt not to exceed $250.00 with Robert E.
Habben for alleged damage to a 1982 Mazda Pickup Truck;
154
STREETS/CON- 3\3/
RESO:
PURCHASING/RESO:
SMIC/RESO:
TAXES/RESO:
ENCROACHMENTS/
RESO:
CLAIMS FOR
LAUBNER ADD:
PERSONNEL/LIT:
LOBBYIST/CON-II&' :
SMIC/CON- 305:
SMIC (UtU) /CON-
305:
CON- 2i1):
PRISON/CON-.3'O~
PAGE 154
REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
1. Resolution No. 88-094, authorizing the city
manager to sign a joint agency memorandum of understanding for
Exit Glacier Road, was approved;
2. Resolution No. 88-095 , authorizing the purchase
of corrq:>Uter equipment for the Ccmmmity Development Department
and waiving fonnal bid procedures, was approved;
3. Resolution No. 88-096, requiring that all major
facilities, property corners, utilities and roadways within the
Seward Marine Industrial Center be identified by city-designated
coordinates, was approved;
4. Resolution No. 88-097, amending a prior resolu-
tion of Council which authorized city participation in the fish
tax credit program on behalf of Seward Marine Services, was
approved;
7. The Council recommended Borough approval of a
proposed replat of Block 11, Laubner Addition, as requested by
Real Daigle;
8. The Council ratified the court-ordered back pay
settlement to Alvin Lakey;
9. Modification No. 6 to the Dawson and Associates
contract for lobbying services was approved;
10. Council confirmed the award of a contract to
Afognak for the repair of the Seward Marine Industrial Center
sewer outfall in an aIOOunt not to exceed $18,800 and authorized
payment of same;
11. The Council authorized a purchase order to Wince
Corthell Bryson in the aIIDlIDt of $5,712.00 to design installa-
tion of a sewer grinder for the SMIC Sewage Treatment Facility;
12. Change order No. 1 to the Construction & Rigging
contract in an aIIDunt not to exceed $14,437.50 to provide a
bumper for the Shiplift was approved; and
13. Council authorized a purchase order to Swede's
Painting in the aIIDunt of $12,350 for remedial painting at the
Spring Creek Correctional Center.
( CSE 154896 1
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REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
IX.
PUBLIC HEARINGS:
None
X. PRESENTATIONS WITH PRIOR OOTlCE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AlASKA, AMENDING SECTION 10-21(C)
OF THE CITY CODE, AUTHORIZED INVES'IMENTS.
Notice of public hearing as posted and published as
required by law was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
HILTON ~lOVED TO ENACT ORDINANCE 00. 608; THE MlTION
WAS SECONDED BY DUNHAM.
In response to a question from O'Brien, Peirson stated
that this ordinance would not affect the manner in which the
city is currently investing city funds.
THE QUESTION WAS CAlLED AND THE ORDINANCE WAS ENACTED
BY UNANIMOUS VOTE OF COUNCIL.
C. Resolutions:
None
XII. UNFINISHED BUSINESS:
A. DUNHAM stated that in the past two weeks several
people had come to her and asked that IIDre thought be given to
hazardous waste shipped through the city. She added that the
city should be getting its "fair share" from those shipping
hazardous waste and suggested that the tariff for such shipments
be set at a higher rate than other goods. In addition, Dunham
stated that the storage area for this material should be secured
and should be located, preferably, in the Marine Industrial
Center. Finally, Dunham stated that this lease should not have
1 SS
FINANCE/ORD:
RE-
( CSEl54899 ]
156
PAGE 156
REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
been approved on the Consent Calendar, but should have been
discussed as part of the regular agenda.
SCHAEFERMEYER stated that he had seriously studied
this proposal before responding to Alaska Cargo Transport and B
& R Environmental requests to ship the battery clean-up material
through the Port of Seward. He stated that this is an EPA
project funded through a federal clean-up program and inspected
every step of the way by the Feds. Schaefermeyer noted that ACT
had originally approached the Alaska Railroad about shipping
this cargo over the Railroad Dock, but had been denied use of
the Dock. ARR has prohibited shipment of hazardous waste over
the Seward Dock, not for any safety reasons, but because it is
IIDre profitable for the ARR to handle the waste through Whittier
where it is off-loaded onto the hydro train. Schaefermeyer
further noted that this is a short tenn (not to exceed four
rmnths) lease. He added that the material was primarily lead-
contaminated soil containing very little PCB contamination.
Schaefermeyer also read aloud a letter from ACT concerning the
materials and assuring the city that every precaution was being
taken to insure the safe transport of the materials through
Seward.
MEEHAN stated that he, too, had received calls from
local people concerned about this lease. He agreed that it
should have been presented as a regular agenda item and he
suggested that the city consider a special tariff for hazardous
substances. Schaefermeyer responded that ARR has made consider-
able effort to steer revenue away fraIl the Port of Seward and
suggested that the Council continue to encourage all fonns of
cargo, if it is safely handled, over the city's docks.
GIESELER stated that the city had acted prudently and
wisely in entering into this agreement with B & R Envirormmtal.
However, he agreed that this item should have appeared on the
regular meeting agenda so that the facts which had been present-
ed at tonight's meeting could have been set forth earlier.
O'BRIEN stated that he was opposed to the transport of
any hazardous substances through the city of Seward and stated
that he would vote against any such action to came before the
Council.
NOll. stated that although this item had appeared on
the Consent Calendar, he had asked questions about it at the
time and had been told in open meeting that this was an EPA
sponsored project. He corrmended the administration for the way
it had handled the agreement and the caustic criticism which had
been forthcoming. He cautioned against a special tariff for
hazardous materials in an attempt to get "IIDre of the pie".
XIII.
NEW BUSINESS:
r C SE 154900 )
I
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PAGE 157
REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
A. Gieseler noted that Bill Walker had submitted his TRADE BOARD (Appt) :
resignation from the Trade Board. He nominated Rhonda Anderson
to fill the remainder of his tenn on the Board.
THERE WAS NO OBJECTION FRCM THE COUNCIL, AND RHONDA
ANDERSON HAS APPOINTED TO SERVE ON THE TRADE BOARD UNTIL NOVEM-
BER 1988.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER reminded the Council that reservations
for the Trade Fair in Seoul must be made by September 1 and
stated that he would be asking the Council to indicate the size
of the Seward delegation at the next meeting (August 22).
SCHAEFERMEYER reminded the Council of the work session
scheduled for 12:00 Noon, Tuesday, August 9.
SGT. DAVE BROSSOW, briefly outlined the Drug Abuse
Resistance Education (DARE) program which the Seward Police
Department will be initiating this school year. The program
focuses on Fourth, Fifth and Sixth grades and has been rated the
IIDst effective program available by those cities and schools
which have taken advantage of it. Brossow showed a short video
about the program and asked for the Council's support. In
response to a question frail O'Brien, Bencardino stated that the
program would cost about $10,000 and that the funds were being
taken frail the Police Department budget. He added that he is
looking for grant funds to help offset the cost. O'Brien and
Meehan both expressed their support for the program, and Noll
asked that Cab levis ion play the video later in the week so that
those not watching the Council meeting might have a chance to
see it.
XV. COUNCIL DISCUSSION:
MEEHAN noted a letter which the Council had received
concerning the need for additional dredging in the Small Boat
Harbor. Singleton stated that he would look into this. Meehan
also asked about the abandoned boat near the grid. Singleton
stated that his crew is rermving the boat "piece by piece" as
time allows.
NOIL suggested that a sympathy card be sent to the
Holmstrom family and to former Governor Hamrond following the
accidental death of three rrernbers of the crew filming the
Hamrond television series. Gieseler stated that this had
already been accomplished.
GIESElER noted that the Council had interviewed one
city manager finalist earlier in the day and would interview a
second finalist next week. He stated that the Council hoped to
have a new manager "on board" by October 1.
( CSE 154901 ]
~_58
PAGE 158
REGULAR MEETING - AUGUST 8, 1988
VOLUME 23
XVI. CITIZENS' DISCUSSION:
TCM STAUDENMAIER, Eagle River, stated that he had
submitted an application for an initiative petition to the City
Clerk on July 25 and that the Clerk had denied the petition and
had refused to put the issue on the ballot. He stated that he
was prepared to proceed in court to give the people the right to
vote on this initiative. In addition, he stated that he intend-
ed to direct the political destruction of the three members of
Council nnming for re-election as well as the political de-
struction of the other four through the recall process. Staud-
erunaier also stated that he would see that the city clerk was
replaced by a clerk who would certify the petition. Finally, he
stated that he intended to petition the APUC to force those
residing north of the city limits to purchase power from Chugach
Electric, not the city of Seward.
DUNHAM stated that she did not like to be threatened
and encouraged Staudenmaier to "go for it" if he wished to have
her recalled. NOll. stated that he would be willing to debate
the merits of a specific sale, but was not willing to sell the
city's utility just because he (Stauderunaier) thought the city
should.
DON CRIPPS, 426 Second Avenue, stated that he appreci-
ated the Council and its efforts to do what is in the best
interest of the conmmity. He stated that it was hard for him
to understand why an Eagle River resident wants to become
involved in a city of Seward issue. He added that he had read
the Clerk's response to the Staudenmaier petition, and, while he
had "a few problems with it", he felt the Council was working
for the best interests of the city.
XVII.
COUNCIL AND AlliIN. RESPONSE TO CITIZENS' CCM-1ENl'S:
None
XVIII .
ADJOURNMENT :
The meeting was adjourned at 9:10 p.m., and, after a
short recess, the Council reconvened in Executive Session to
discuss on-going litigation.
~c te#'~
, Ma . Giese er
( CSE 154902 )
I
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PAGE 159
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
I. CAlL TO ORDER:
The August 22, 1988, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnernber Meehan led the pledge of allegiance to
the flag.
III. ROLL CAlL:
Present were: Mayor Gieseler and Councilrnernbers Dun-
ham, Meehan, Noll, O'Brien and Simutis
(Hilton arrived at 7:44 p.m.)
Present also: Interim City Manager Schaefermeyer, Ci-
ty Attorney Arvidson, Engineering and
Utilities Manager Diener, Administra-
tive Assistant Martin, Port Marketing
Director Gates, Finance Director
Peirson, Deputy Finance Director
Gifford, Parks and Recreation Director
Yanez, Fire Chief Gage, Hospital
Administrator Campbell, Police Chief
Bencardino and City Clerk Murphy
IV.
APPROVAL OF MINUTES:
SIMUrIS MlVED TO APPROVE THE AUGUST 8, 1988, MINlITES
AS WRITIEN; THE MOTION WAS SECONDED BY NOLL AND CARRIED UNANI-
MlUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
GIESELER MlVED TO MEET IN EXECUTIVE SESSION IMMEDIATE-
LY FOLLCMLNG THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS
CITY ATTORNEY AND CITY MANAGER AFFAIRS; THE MJrION WAS SECONDED
BY 0' BRIEN AND CARRIED UNANIMOUSLY.
Schaefermeyer noted that the following five items
would be addressed under "City Manager Reports":
1. Alaska Railroad Board vacancy;
2. Status of the Senior/Carmunity Center;
3. Status of current lease negotiations;
4. Sales Tax Report; and
5. School Funding Proposition.
MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS
PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED
UNANIMlUSLY.
r C$1:154903 1
160
C.ATTY:
C.ATTY:
C.ATTY:
CON- 2\ ~ :
PUBLIC HEARINGS:
(Pruitt lease)
PUBLIC HEARINGS:
(Daigle Land
Trade)
PAGE 160
REGULAR MEETING - AUGUST 22, 1988
VOIllME 23
VI. BOROUGH ASSEMBLY REPORT:
No report was given.
VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED: THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI-
MlUSLY. The following actions were taken:
1. August 1, 1988, invoice from Wohlforth, Flint &
Gruening for legal services totalling $76.75 was approved for
payment;
2. May 1988 invoice from HTGP&B for legal services
totalling $33,178.61 was approved for payment;
3. June 1988 invoice from HTGP&B for legal services
totalling $25,259.56 was approved for payment; and
4. Change Order No. 5 to the Underwater/Swalling
contract for shiplift civil work and utilities, increasing the
total contract aIIDunt by $23,522, was noted for infonnation.
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding the proposed long term lease of a
H.76 acre unsurveyed parcel within USS 4827, located within the
Seward Marine Industrial Center, to James Pruitt, dba Seward
Ships Chandlery, was noted and the public hearing was opened.
WIILARD DUNHAM, Forest Acres, spoke in favor of the
proposed lease.
No one else appeared in order to be heard and the
public hearing was closed.
B. Notice of public hearing as posted and published
as required by law regarding the proposed land trade between the
city and Real Daigle 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 OOTlCE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
1
( CSE154904
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PAGE 161
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
A.
Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING A LEASE AGREE-
MEN!' WITH JAMES PRUITT, DBA SEWARD SHIPS
CHANDLERY.
ooLL MOVED TO APPROVE RESOLUTION 00. 88-084; THE
MarION WAS SECONDED BY DUNHAM.
NOTE: Hilton arrived just following the IIDtion and participated
in the remainder of the meeting.
Gates briefly outlined the major lease provisions.
Meehan stated that he was uncomfortable with the lease cap,
noting that he was certain Pruitt would build a successful
business at SMIC, thus increasing the value of the property.
The lease cap would bar future Councils from getting fair market
value of the property.
In response to a question from O'Brien, Arvidson
stated that, should Pruitt fail to perform as required under the
lease, necessitating termination of the lease by the city, the
city could reIIDve any improvements at Pruitt's expense.
Noll thanked Pruitt and the administration for corning
to an agreement on the terms of the lease. He asked to be kept
informed of changes in the operating costs at the shiplift,
including justification for same.
In response to a question from Dunham, Gates stated
that charge for depreciation of the shiplift had not been
included in the lease.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to the public,
Gieseler noted by title only a proposed resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING TIlE TRADE OF
161
SMIC/RE- 0'/-.3 /
RESO: (Pruitt
Lease)
LAUBNER ADD/DEEDS
& ESMTS/RESO:
(Daigle Land
Trade)
( CSt 154905 )
162
DOCKS & HARBORS/
RESO: (Downtown
Conceptual Wtr-
frnt Plan)
PAGE 162
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
REAL PROPERTY WITIIIN BLOCK 11 , IAUBNER
ADDITION, BE'lWEEN THE CITY OF SEWARD AND MR.
REAL DAIGLE.
SIMUrIS MlVED TO APPROVE RESOLUTION NO. 88-099; THE
MarION WAS SECONDED BY DUNHAM.
Hilton requested an outline of the potential advan-
tages and disadvantages to the city should the land trade go
forward. Martin explained that he had been working with Daigle
for the past 18 rmnths to come to an agreement on a development
plan which \oIOuld be an asset to the canmmity and would not
conflict with the adjacent park area. He noted that the current
plan, which had already been granted a conditional use permit by
the Planning Canrnission, called for an 8-unit "Planned Unit
Development" consisting of two single-unit structures and three
2-unit structures. He noted that a condition of the land trade
before the Council was approval of a replat of the property by
the Borough Assembly. Martin also noted that the subdivision
agreement which Daigle would be required to execute with the
city would require bonding to assure development of the required
utilities.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMlUS VOTE OF THE COUNCIL.
3. Copies having been made available to the public,
Gieseler noted by title only a proposed resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ACCEPTING THE CONCEPlUAL
DEVELOPMENT PLAN FOR THE DOWNI'OtJN SEWARD
WATERFRONT FACILITIES.
MEEHAN MlVED TO APPROVE RESOLUTION 00. 88-100; THE
MOTION \.JAS SECONDED BY HILTON.
Diener stated that a study to detennine the downtown
waterfront development needs had been jointly corrmissioned by
the Alaska Marine Highway System (AMHS), the Institute of Marine
Sciences (IMS) and the city of Seward. The study was now
complete and the final report was on file in the Clerk's Office.
He noted that AMHS and IMS had asked that the City Council
review and recommend either acceptance or rejection of the
conceptual development plan as presented in the report.
In response to a question from O'Brien, Diener stated
that AMHS had some funding available (federal highway dollars),
IMS is pursuing funding, and the city would continue to pursue
funding for its portion.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMOUS VOTE OF COUNCIL.
( C SE 15490& )
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REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
XII. UNFINISHED BUSINESS:
A. CAPTIAL BUDGET: Gieseler stated that he had re-
quested placement of this item on the agenda. He noted that when
Council approved the city's operating budgets, the administra-
tion had stated that a capital budget -would be brought to the
Council at a later date. He asked for a status report.
Schaefermeyer stated that he and his department heads
were in the process at this time of collecting and reviewing
requests for capital improvements. He noted that this is a
particularly busy time of year for both the Finance and the
Engineering departments, and this had made it difficult to
devote large blocks of time to develop a capital budget.
Schaeferrneyer stated that he would present a five-year capital
budget plan to the Council on September 26.
XIII.
NEW BUSINESS:
A. SIMUrIS MlVED TO AUTHORIZE 1HE CITY MANAGER TO
SIGN AMENIl1ENT NO. 1 TO THE CONTRACTUAL AGREflvIENT TRANSFERRING
CONTROL OF 'IELEVISION TRANSIATOR STATION LICENSE K09DL; THE
MarION WAS SECONDED BY MEEHAN.
In response to a question from Noll, Peirson stated
that, under the terms of the agreement, the city pays KRXA for
those accounts actually collected, less a 12%% administrative
fee which is retained by the city. He noted that collections
have averaged $1,000 per rmnth. He added that the original
agreement had a 10-year tenn.
Simutis stated that the Council had been very clear in
its intention to cease billing and collecting television fees at
the end of the first year of the agreement, and KRXA had, from
the beginning, stated that it would make efforts toward estab-
lishing its own collection system. Peirson replied that KRXA
officials felt that the economics of an independent collection
system were marginal, at best. He noted that the rronth-end
closing procedure took approximately 15 minutes of city staff
time per rmnth.
Hilton stated that the city should receive 12%% of
What was actually billed, not collected. Peirson replied that
this would probably require a contract amendment. Hilton added
that he was opposed to the amendrrent to extend city collection
of television fees since it was understood from the begirming
that the city intended to get out of the collection business.
NOLL MlVED TO AMEND THE MAIN MOTION BY ADDING THE
FOILCWING TO THE CONTRACT AMENIl1ENT:
THIS AMENIl1ENT WIlL TERMINATE AUGUST 31, 1989,
AND MAY BE CONTINUED THEREAFTER ONLY BY MUTUAL
CONSENT AFTER PUBLIC HEARING;
lh~
CON- 28'0 :
( CSE154907 1
164
STREETS/SMIC:
(Paving bid
declared non-
responsive)
C.MANAGER: (Em-
plymt agrmt.
w/M.Royle to
be negotiated)
PAGE 164
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMOUSLY.
THE QUESTION WAS CAlLED ON THE MAIN MarION AND THE
MlTION CARRIED WITH SIX "YES" VOTES AND HILTON VOTING "NO".
B. SIMUTIS MOVED TO DECIARE THE BID SUBMITTED BY
WILDER CONSTRUCTION, INC., TO BE ooN-RESPONSlVE AND AUTHORIZE
THE CITY MANAGER TO NEGOTIATE A PAVING CONTRACT WITH THE FIRM
SELECTED FOR PAVING BY CHUGACH FOREST PRODUCTS, INC., TO PROVIDE
THE OVERLAY OF THE NASH ROAD EXTENSION; THE MarION WAS SECONDED
BY HILTON.
Diener explained that the city had requested bids to
pave the Nash Road Extension in the SMIC. The aIIDunt of paving
was so small that IIDbilization costs from Anchorage made it
unattractive to contractors unless they had other jobs which
could be performed in the same time frame in Seward. The only
responder to the RFP was Wilder Construction, Inc., and its bid
was contingent upon award of a Chugach Forest Products bid for
asphalt paving for the sawnill. Since Wilder did not receive
the Chugach contract, the Wilder bid for city paving was non-
responsive. Diener stated that once Chugach awards a contract
for paving, it would be in the best interest of the city to
negotiate with the paving contractor to perform those tasks in
the city's original RFP. He added that, once a contract is
negotiated, he would bring it back to the Council for ratifica-
tion.
THE QUESTION WAS CAlLED AND THE MJI'ION CARRIED BY
UNANIMOUS VCITE OF COUNCIL.
C. SIMUrIS MlVED TO AUTHORIZE THE MAYOR AND VICE
MAYOR TO NEGOTIATE AN EMPLOYMENT AGREfl1ENl' WITH MAX ROYLE; THE
MarrON WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. Gieseler
noted that Mr. Royle intended to report for work on October 1.
XIV. CITY MANAGER REPORTS:
AlASKA RAIlROAD BOARD: Schaefermeyer noted that the
Alaska Railroad Board seat held by Lewis Dickinson was up for
replacement on October 3. He stated that Dale Lindsey had
already submitted an application to the Govemor. However,
since the Mayor had repeatedly promised the Governor that the
city would submit IIDre than one name to him for consideration
for the Board seat, he (Schaefermeyer) suggested that the
Council instruct the Clerk to advertise a request for letters of
interest from IIEIIibers of the cOlIIlllUlity who had a desire to serve
on the Board. There was no objection from the CounciL
SENIOR/cnMUNITY CENTER UPDATE: Diener stated that
architectural plans are now available and have been submitted to
the State Fire Marshall for review and approval. Diener pre-
dicted that construction would start within the next two weeks
with corrq:>letion scheduled for January or February, 1989.
l CSE154908 ]
I
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PAGE 165
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
STATUS OF LEASE NEGOIIATIONS: Gates stated that he
hoped to have the Inlet Salrmn lease and an amendment to the
Shoreside Petroleum lease ready for public hearing on September
12. He stated that he is also in the midst of negotiations with
Resurrection Bay Storage Corrq:>any for a mini warehouse storage
facility at SMIC and with another corrq:>any wanting to lease an
area adjacent to the Shoreside Petroleum site for crab pot
storage. In addition, he noted that another seafood processor
had approached the city about a large investment at SMIC. Gates
praised Arvidson for his part in the Pruitt lease negotiations.
Gieseler stated that it was now time to IIDve away from incentive
leasing and begin getting fair market value for leased property
in the SMIC. He stated that he did not want to give new busi-
nesses an edge over existing businesses. Gates stated that,
when the Inlet Salrmn lease is "nailed down", the city should
IIDve towards IIDre traditional lease arrangements. Dunham noted
that Fourth Avenue is "hurting" and the city must preserve our
Downtown. She also stated that the city should encourage the
developrrEnt of a restaurant on the other side of the Bay to
accormndate the recent industrial development at SMIC.
TAXABLE SALES REPORT: Peirson noted that taxable
sales are up 8.170 for the second quarter of this year.
SCHOOL BOND ISSUE: Schaefermeyer distributed a fact
sheet on the school bond issue which would appear on the Borough
ballot in October. He stated that it would take a cOllIIlUIlity
wide effort to insure passage of the school bond, including
"getting out the vote" in Seward and lobbying other conmmities
in the Borough to vote in favor of the bond.
XV. COUNCIL DISCUSSION:
DUNHAM noted that Homer and Soldotna have gone on
record objecting to Nikiski' s plan to secede from the Borough
and asked if the city of Seward should consider taking a similar
stance. Schaefermeyer stated that the city's focus at this time
must be on selling our school.
NOll. asked for an update on the Borough's Sales Tax
Review Corrmittee. Peirson stated that the corrmittee had last
met some two months ago and had, at that time, assembled a list
of reccmrendations to be presented to the Borough Assembly after
final ratification by the corrmittee. He noted that the corrmit-
tee voted not to exempt necessities from sales tax, but noted
that, prior to approval of these reccmrendations by the Borough,
a public hearing would be conducted by the Assembly, and Noll or
others could express their concerns at that time.
NOll. also stated that he had been informed that the
city coulaexpect lots of pipe to come through the port of
Seward in the next few rmnths.
( C Sf 154909 )
166
PAGE 166
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
NOlL stated that he supported Willard Dunham's point
of view concerning the Grain Tenninal. He noted that it was too
early to walk 8Jilay from this investment considering the low cost
of "IIDthballing" it. He stated that the Alaska grain industry
is not dead and now is not the time to sell the grainery at ten
cents on the dollar.
NOlL stated that he had brought a Korean official to
Seward last week and had arranged for dirmer with the Mayor, the
Dunharns, Schaefermeyer, Gates and others. He noted that this
was a "semi-official" visit and there had been discussions about
LNG, coal and agriculture.
NOlL thanked those citizens who had contacted him
concerning Tom Staudenmeier. He said that "folks are not buying
his line", adding that the city has a reliable utility and is
not ready to part with it.
GIESElER noted that he had received a card from former
Governor Hamoond thanking the Council for its expressions of
sympathy following the loss of rrernbers of his filming crew. He
also stated that he had received a telephone call from Mark
Beals concerning the borough/ city rrutual aid agreement for
emergency medical services. Murphy noted that there is a
current agreement on file. Gieseler also noted that the state
primary is scheduled for August 23, with the polls open from
7:00 a.m. until 8:00 p.m. He urged everyone to vote. Finally,
Gieseler congratulated the Chamber of Conmerce on this year's
SalIIDn Derby.
XVI. CITIZENS I DISCUSSION:
WIlLARD DUNHAM, Alder and DiaIIDnd Streets, Forest
Acres, stated that he did not realize that one letter to Rod
Swopes made him "Seward Officials". He explained that his
letter had simply asked that the administration reconsider
surplussing the grain tenninal if the state was interested in
some sort of agreement or joint venture with the Koreans.
Dunham also stated that, currently, there are no laymen on the
Governor's Scientific Connrl.ttee. He stated that we need someone
from Seward on that Board in order to put fo:rward the expansion
needs of the Institute of Marine Science.
XVII.
COUNCIL AND ArMIN. RESPONSE TO CITIZENS' CCM1ENTS:
MEEHAN stated that for several years the Seward Grain
Terminal had been the highest priority of the Alaska Stock
Growers Association. He noted that IIDst of the state's farmers
reside on the Kenai Peninsula and need grain, lIDst of which is
now imported from outside, adding that failure of the Alaska
Barley Project had been a real blow to Peninsula farmers.
NOlL stated that the Koreans are not ready to become
involved in Alaskan agriculture at this time, but wish to
( CSE154910 1
I
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PAGE 167
REGULAR MEETING - AUGUST 22, 1988
VOLUME 23
develop policy and settle on some cormnn interests with the
Alaskan governrrent.
GIESELER stated that he would be travelling to Anchor-
age August 31 to attend a reception for the new Consul General
of Japan and would go from there to Kotzebue September 1-2 to
attend a meeting of the Alaska Conference of Mayors.
XVIII .
ADJOURNMENT :
The meeting was adjourned at 9:35 p.m. and, after a
short recess, the Council reconvened in Executive Session to
discuss city attorney and city manager matters.
h~~.
Ha . Gieseler
Mayor
_'i~
..: ~'IEi\L:~
. ' .
"~' ..t.'''~.... .-
~1. " '1f.'., .,,~ ....
% n. ' , "',;'." 'I \:~ .' .L '"
~\J'). '. oS "A .t _~ ..
'~~%!i 'o'i' '~~~;l#;
. . :><':rro:1'l:rrtrf. - , .
PAGE 167
REGULAR MEETING - SEPTEMBER 12, 1988
VOLUME 23
I. CAlL TO ORDER:
The September 12, 1988, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM:lNY:
Councilmernber Dunham led the pledge of allegiance to
the flag.
III. ROLL CAlL:
Present were: Mayor Gieseler and CouncilnErnbers Dun-
ham, Hilton, Meehan, Noll, O'Brien and
SiIIlltis
Present also: Interim City Manager Schaefermeyer, Ci-
( CSE154911 ]
168
GRANTS/RESO:
(Muni. Asstnc)
TAXES/RESO:
PURCHASING:
SEW. IND. PARK/
MARINA SUB:
PAGE 168
REGULAR MEETING - SEPl'EMBER 12, 1988
VOLUME 23
ty Attorney Arvidson, Deputy Finance
Director Gifford, Engineering & Util-
ities Manager Diener, Port Marketing
Director Gates, Parks and Recreation
Director Yanez, Administrative Assis-
tant Martin and City Clerk Murphy
IV. APPROVAL OF MINUTES:
HILTON MlVED TO APPROVE THE AUGUST 22, 1988, MINUTES
AS WRITIEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMlUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
Gieseler requested the addition of an item to "New
Business" - Advisory Survey.
SIMUrIS MlVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI-
MlUSLY.
VI. BOROUGH ASSF11BLY REPORT:
Kenai Peninsula Borough Assembly President Sewall was
not present and no report was given.
VII. CITIZENS' CCl1MENl'S ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUrIS MOVED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MOuSLy. The following actions were taken:
1. Resolution No. 88-104, requesting nnmicipal
assistance funding from the state of Alaska, was approved;
2. Resolution No. 88-105, supporting legislation
providing for a IIDre equitable distribution of the fisheries
business tax revenue refunded by the state to local governments,
was approved;
3. A purchase order to Aurora Industries Supply,
Inc., for an aIIDunt NTE $5,971.13, to furnish salt and calcium
chloride for winter street maintenance, was approved;
4. Request for authorization for administration to
finalize the preliminary plat of the Seward Industrial Park into
Block 2, Marina Subdivision, was approved;
( C Sf 154912 1
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REGULAR MEETING - SEPTEMBER 12, 1988
VOLUME 23
1 r.q
PROCLAMATION:
5. Proclamation of Mayor designating September 12,
1988, to be JUST SAY NO DAY in the city of Seward was noted for
infonnation;
6. Change Orders to the Sanwhan contract for prison CON- IS"l :
construction as follows were noted for infonnation:
#203 - To provide 3 additional replacement glycol
hand pumps, freight and labor (+$4,166);
11204 - Grout P.C. panel to concreted column,
revise ceiling drawing, delete doors 1-173 and 1-174,
and retain doors 1-70 and 1-106 as per original
drawings (+$6,872);
11205 - Install additional structural work for
snowloads and wind uplift for proper perfonnance of
the metal roofing (+$129,942);
11206 - Change the ceiling in room 1-009 from
acoustic tiles type 3 to acoustic tiles type 2
(+$5,001);
11207 - Modification of the handrail at door
4-209B (+$1300);
11208 - Revise drainage by adding swales along
service-road and in the corporation yard grade
(+$2,730);
11209 - Reduce the height of door and jamb at door
1-218A and 1-218B 2 inches to clear the structural
frame and fireproofing (+$2,372); and
#210 - Provide a credit for the deletion of the
fire sprinkler system boost pumps in. building 115
(-$64,924);
and
7. Request for Council authorization to proceed with
preparation of a tennination of lease agreement RE-013 (Harold
Jormson) and preparation of a new lease agreement for the
Oldow/Scoby partnership (A-Frame, corner of South Harbor and
Fourth Avenue) was approved.
IX. PUBLIC HEARINGS:
A. Public hearing regarding the proposed Inlet
Salmon lease was cancelled.
RE-(Xo;4'MARINA
SUB:
B. Notice of public hearing as posted and published PUBLIC HEARINGS:
as required by law regarding the proposed amendment to lease
with Shoreside Petroleum, Inc., to relocate the lease site and
site of first refusal was noted and the public hearing was
opened; no one appeared in order to be heard and the public
hearing was closed.
C. Public hearing regarding the proposed Gateway
property sale to Clint Hall was cancelled.
t CSE 154913 1
170
PAGE 170
REGULAR MEETING - SEPTEMBER 12, 1988
VOLill1E 23
X. PRESENTATIONS WITH PRIOR NarlCE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
RESO/SMIC/RE- Of/+- 1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING A LEASE
AMENfMENl' TO LEASE CONTRACT 00. RE-069 WITH
SHORESIDE PETROLEUM, INC., REGARDING LO-
CATION OF THE LEASE SITE.
MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-101; THE
MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY.
ARR BOARD/RESO:
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, AIASKA, REQUESTING THAT THE GOVERIDR
APPOINT A RESIDENI' OF THE CITY OF SEWARD TO THE
AlASKA RAILROAD BOARD.
O'BRIEN MlVED TO APPROVE RESOLUTION NO. 88-103; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
XII.
UNFINISHED BUSINESS:
NEW BUSINESS:
XIII.
MARINA SUB/RE-
TAXES:
/ A. September 7, 1988, memorandum from Martin regard-
ing delinquent property and sales taxes owed by Dale Clemens,
lessee of city Lots 1 and 2, Block 1, Marina Subdivision, was
noted. Schaefermeyer stated that Clemens has now brought
property taxes current; however, the borough is still showing a
substantial sales tax delinquency. He stated that if sales
taxes are not current by September 26, he will request Council
authorization to proceed with a declaration that the lease is in
default and begin proceedings to terminate the lease.
( CSE154914 1
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REGULAR MEETING - SEPTEMBER 12, 1988
VOLUME 23
Schaefermeyer noted that three Small Boat Harbor businesses -
Sailing, Inc.; Doc's Wharf; and The Landing - have not regis-
tered with the borough to collect sales tax. In addition, Quest
Charters' sales tax account is in arrears in the aIIDunt of
$4,411.00. He stated that, barring objection from Cotmcil, he
would infonn these businesses of their obligations regarding
collecting, reporting and paying sales tax and would issue the
city's first warning of possible default and tennination of
their leases with the city. THERE WAS 00 OBJECTION FRCM THE
COUNCIL.
B. August 31, 1988, meIIDrandum regarding the pro-
posed vacation of a portion of "D" street lying between Lot 6,
Block 16, and Lot 1, Block 22, Federal Addition, was noted.
Schaefermeyer stated that Don Ennis had requested vacation of
the property. The request had been reviewed by the Seward
Planning Ccmnission; however, the Ccmnission had voted on a 2-2
vote to deny this request. The Borough Planning Corrrnission had
overturned the local Ccmnission' s decision and had voted to
grant the request, contingent on review and possible action by
the City Council. He recommended Council approval and noted
that the vacation would proceed as requested unless the City
Council voted to deny it, adding that no action by the Council
within 30 days would be deemed "consent".
O'Brien stated that he was reluctant to vote against
an action of the local Planning Corrrnission and suggested that
the Council take no action on this request. In response to a
question from Hilton, Schaefermeyer stated that, following the
vacation, all of the property would accrue to Ennis (at no cost)
since he owned the property on either side of the subject right
of way.
No IIDtion was forthcoming from the Council.
C. MEEHAN M:lVED TO REQUEST THAT THE MAYOR SEND A
LETTER TO GOVERNOR COWPER URGING THAT THE STATE HOLD OFF ON ITS
EFFORTS TO SURPLUS THE SEWARD GRAIN TERMINAL FOR A PERIOD OF AT
LEAST ONE YEAR; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY. (September 8, 1988, memorandun from the Trade
Board recoornending this action was noted.)
D. GIESELER MOVED TO ASK THE VOTERS TO PARTICIPATE
IN AN ADVISORY SURVEY CONCERNING ALCOHOL-RElATED ISSUES DURING
THE OCTOBER 4, 1988, MUNICIPAL ELECTION; THE MarION WAS SECONDED
BY HILTON.
Gieseler read aloud the proposed survey fonn and
stated that he would like to find out how the voters feel about
some proposed changes to the city's alcohol ordinance. Meehan
stated that the proposed 2:00 a.m. closure of bars and liquor
stores was great but should be boroughwide. He added that
closing the bars in Seward earlier than those outside the city
limits would encourage intoxicated patrons to attempt to drive
17J
ROW VACATIONS/
FEDERAL ADDITION:
SMIC (Grain Term) :
ALCOHOL:
( CSE154915 1
172
PAGE 172
REGULAR MEETING - SEPTEMBER 12, 1988
VOLUME 23
out of town following the earlier closure. Gieseler agreed that
the closure should be boroughwide, but stated that someone had
to take the first step. He corrq:>ared this to the fireworks issue
and noted that the city had "led the charge" for the borough's
eventual banning of sale and possession of fireworks.
In response to a question from Noll, Arvidson stated
that there had been challenges to ordinances regulating adult
entertainrrent (Survey Question No.4); however, some had been
upheld by the courts.
Hilton stated that he supported making the advisory
survey available to local voters. He stated that 2:00 a.m. was
late enough for the bars to be open and that 11: 00 a.m. was soon
enough to open in the IIDrnings. He agreed with Gieseler that
Seward needed to take the first step toward a boroughwide
earlier closing.
O'Brien stated that he supported the survey, noting
that it was an opportunity to get a free look at what the
conmmity wants without paying $20,000 for an independent study.
Dunham agreed.
THE QUESTION WAS CAlLED AND THE MlTION CARRIED UNANI-
MlUSLY.
XIV. CITY MANAGER REPORTS:
GATES updated Council on the progress of the Inlet
Salrmn lease negotiations. He stated that some concerns had
arisen following signing of the lease, and these concerns had
led to cancellation of the public hearing. The new plan called
for Inlet SalIIDn to construct a fisheries dock at the bulkhead
in exchange for free rent of uplands.
VINCENI' GODDARD, representing Inlet Salrmn, residence
address 30650 Boulder Court, Soldotna, stated that the new plan
had many benefits. for the city of Seward. He stated that it
would allow the city to better corrq:>ete with other ports for a
delivery location for fishermen by adding sofre local corrq:>etition
and enhancing support for the fishing corrmunity.
GATES noted that the new lease would contain the Trade
Board inspired provision requiring local processing of at least
80% of the fish bought.
COUNCIL VOICED 00 OBJECTION TO PROCEEDING WITH LEASE
NEGarIATIONS.
GATES requested a work session to discuss the proposed
transfer of the Coal Dock to the city. The Session was sched-
uled for 7: 00 p. m., Tuesday, September 13, 1988.
( CSE154916 )
I
I
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PAGE 173
REGUlAR MEETING - SEPTEMBER 12, 1988
VOLUME 23
DIENER stated that the contractor had purchased a
building permit for the Senior Center remodel.
SCHAEFERMEYER stated that he intended to
improvements to his office prior to Royle's arrival.
NO OBJECTION FROM COUNCIL.
XV. COUNCIL DISCUSSION:
order some
THERE WAS
DUNHAM urged everyone to vote October 4.
ooLL stated that the former Minister of Trade and
Industry for South Korea had visited Seward the previous week-
end.
GIESELER urged voters to corrq:>lete the advisory survey
on October 4. He also stated that the Seward, Nebraska, trip
was scheduled to begin October 13 and urged anyone interested to
contact Willard or Beverly Thmharn.
GIESELER also noted that Max Royle would be "express
mailing" his signed employment agreement to the city and would
be starting to work October 3. He stated that the city would be
sponsoring a no host "Meet the City Manager" party that evening
at Ray's Restaurant.
XVI.
CITIZENS' DISCUSSION:
None
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
None
XVIII .
ADJOURNMENI' :
The meeting was adjourned at 8:50 p.m.
::$~c-~..~v
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174
PROCLAMATIONS:
PAGE 174
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
I. CAlL TO ORDER:
The September 26, 1988, regular meeting of the Seward
City Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnember O'Brien led the pledge of allegiance to
the flag.
III. ROLL CAlL:
Present were: Mayor Gieseler and Councilrnembers Dun-
ham, Hilton, Meehan, O'Brien and
Simutis (Noll was excused)
Present also: Interim City Manager Schaefermeyer, Ci-
ty Attorney Arvidson, Administrative
Assistant Martin, Port Marketing
Director Gates, Police Chief Bencar-
dino, PW Supervisor Ainsworth, Deputy
Fire Chief Squires, Engineering and
Utilities Manager Diener, Hospital
Administrator Campbell, Finance Direc-
tor Peirson and City Clerk Murphy
SPECIAL ITEM:
A. Gieseler presented Christopher Gardner with a
proclamation designating September 26, 1988, as Chris Gardner
Appreciation Day in recognition of his nomination and selection
as State Firefighter of the Year.
IV. APPROVAL OF MINUTES:
MEEHAN MlVED TO APPROVE THE SEPTEMBER 12, 1988,
MINUTES AS WRITIEN; THE MarION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY.
V. APPROVAL OF REGUlAR MEETING AGENDA:
SCHAEFERMEYER requested the addition of Agenda Item
No. XI(C) (2) - Proposed Resolution No. 88-108, appropriating
funds to the SMIC North Dock Project.
HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Sewall
reported on the September 20, 1988, Assembly meeting.
leSE 154918 1
I
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PAGE 175
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
VII.
CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENl' CALENDAR:
SCHAEFERMEYER requested the addition of two items to
the consent calendar (Items No. 6 and 7 - See below).
AMENDED ;
MlUSLY.
SIMlITIS MOVED TO APPROVE THE CONSENT CALENDAR AS
THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI-
The following actions were taken:
1. Septerrber 14, 1988, invoice from Wohlforth, Flint
& Gruening for legal services totalling $1,532.54, was approved
for payment;
2. September 11, 1988, Finance Department's list of
accounts payable totalling $2,213,434.47, was approved for
payment;
3. September 19 , 1988, memorandum from Diener
requesting authorization to award a contract to Seward Construc-
tion Services in the aIIDunt of $13,964, with a budgeted contin-
gency amount of $1,400, for a total project aIIDunt of $15,364,
for construction of a control building at the Seward Substation,
was approved;
4. September 13 , 1988, memorandum from Peirson
reccmrending approval of Change Order No. 1 to the Marathon Fuel
petroleum supply contract to include an "economic price adjust-
ment" clause allowing an increase or decrease in contractor's
price based on changes in purchase price from the refiner was
approved;
5. September 19 , 1988, memorandum from Martin
regarding SMIC support activity and noting his letter to Carl
Nonnan explaining the Conditional Use Penuit process necessary
to construct and operate a restaurant in the Industrial Zone was
noted for infonnation;
6. September 19 , 1988, memorandum from Diener
recommending Council authorization to issue a purchase order to
METCO, Inc., for 760 cu.yd. of winter sand at $11.40/cu.yd., for
a total aIIDunt N'IE $8,664, was approved; and
7. Resolution No. 88-107, confinuing the appointment
of B. Max Royle as City Manager, was approved.
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding the proposed CITY LEASE of a 1:2.5
17S
C.ATTY:
ACCTS. PAYABLE;
ELEC.DEPT/CON-
(Control Bldg. -
Substation)
CON- 2~7-:
PURCHASING:
(Winter Sand)
C.MANAGER/RESO:
(Apt. M.Royle)
176
CIT. DISCUSSION:
(K.Campbell -
Protective
Custody Costs)
PAGE 176
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
acre parcel located at the North end of the Alaska Railroad
Terminal Reserve in Seward from the Alaska Railroad Corporation
for use as a utility pole storage yard 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 ooTICE ONLY:
A. C. KEITH CAMPBElL, Seward General Hospital
Administrator, residence address Forget-Me-Not Circle, Seward,
addressed the Council concerning the state's protective custody
statutes and increased hospital costs and liability stenrning
from recent court decisions asserting that a municipality has an
affinnative duty to take into custody persons incapacitated by
alcohol in a public place and transport them to the nearest
treatment facility. Campbell stated that, following the Busby
decision, PC incarcerations in the local jail facility had
decreased; however, admissions to the hospital had risen dramat-
ically. He presented a cost analysis showing direct cost to the
hospital of $32,000 during CY 1987. Campbell noted that the
hospital bills individuals admitted under this new ruling, but
rarely receives payment. He asked the Council's support to
introduce a resolution to the Municipal League urging the state
to either reimburse municipalities for the cost of enforcing the
state statutes or allow municipalities to levy an excise tax on
alcohol to defray the cost of alcohol abuse in the community.
O'BRIEN asked if the hospital had any statistical
information showing the time of day IIDst pc's are brought into
the hospital, stating that earlier bar closings might help
alleviate this problem. Campbell stated that he would research
this and get back to the Council.
GIESELER stated that, since the cost of admitting PC's
was probably coming from the proceeds of the 1% sales tax which
is passed on to the hospital, it would appear that the PC's are
getting an unfair share of the benefit of the sales tax funds.
Campbell noted that the dollar aIIDunt lost over the past 18
rmnths as a direct result of PC admissions 'WOuld have covered
the cost of rnamrographic equipment which could serve 46% of the
community's population.
In response to a question from 0' BRIEN, Campbell
stated that Seward General Hospital was probably impacted to a
greater degree than hospitals in larger communities. He stated
that PC's in Kenai/Soldotna are taken to Wildwood Correctional
Facility where trained medics are on staff. Likewise, those in
Anchorage and Fairbanks are taken to state jail facilities. He
noted, however, that costs to these facilities had probably
risen substantially.
ARVIDSON noted that some communities had enacted
ordinances requiring payment from those detained under the AS
47.37; however, collecting that payment was another matter. He
( CSE 154920 )
I
I
I
177
PAGE 177
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
stated that it was possible to attach the detainee's pennanent
fund dividend, but cc:mmmities often find that they are ninth or
tenth in line behind other creditors.
GIESELER asked Campbell to work with the administra-
tion in corrq:>osing a resolution to forward to AML for consid-
eration in Noverroer.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF 'IHE CITY
OF SEWARD, AIASKA, AMENDING THE CITY PERSON-
NEL CODE BY RESTRUCTURING THE HOLIDAYS WITH
PAY SCHEDULE FOR LIBRARY EMPLOYEES.
SIMUrIS MlVED TO INTRODUCE PROPOSED ORDINANCE NO. 609;
THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for October 10, 1988.
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
1. Copies having been made available to the ARR TERM. RESERVE/
public, Gieseler noted by title only a proposed resolution RESO:
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTIIORIZING THE LEASE OF
lAND FRCM THE AIASKA RAILROAD CORPORATION
FOR UTILITY POLE STORAGE.
MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-106; THE
MOTION WAS SECONDED BY DUNlW1.
In response to a question from 0' BRIEN, Schaefermeyer
stated that the lease rate had been detennined by appraisal.
GIESELER asked if the administration had considered IIDving the
poles to another location, such as city-awned property at SMIC.
Diener noted that the cost of IIDving the poles at this time
was greater than the lease. He added, however, that the city
had agreed to a short-tenn (3-year) lease and would be seeking
other storage options between now and the end of the lease tenn.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMJUS VOTE OF COUNCIL.
(CSE154921 1
178
SMIC/BUDGETiRESO:
(Apprp. funds
to capital
construction
acct. )
PERSONNEL/WAlER-
SEWER DEPT:
(Auth. to add
one FT emp.)
PAGE 178
REGULAR MEETING - SEPTIMBER 26, 1988
VOLUME 23
2. Copies having been distributed
Council and made available to the public, Gieseler
title only a proposed resolution entitled:
to the
noted by
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROPRIATING FUNDS TO
THE SMIC ooRTH DOCK CAPITAL PROJECT.
Sll1UTIS MlVED TO APPROVE RESOLUTION NO. 88-108; THE
MOTION WAS SECONDED BY HILTON.
DIENER stated that the North Dock project had proceded
with a minimum of problems with the contractor and he did not
anticipate any claims as a result of the project. However,
because of higher than anticipated steel prices, the contract
work was awarded with little or no contingency. He stated that
the city had anticipated using Nl'E 62,500 cu.yds of rock; so far
77 ,000 cu. yd. had been used. In addition, the city had antic-
ipated using a substantial aroount of dredged material for fill.
However, the material being dredged was found to be a very fine
silt which was too unstable when wet to use as fill for this
project. (Diener noted that this material would be utilized as
fill in the uplands.) MEEHAN stated that the city should have
been aware of the types of dredged materials found throughout
that area, given the number of core samples taken during the
Chris Berg litigation. Diener noted that this particular area
was not in the samp Ie area.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIM:>US VOTE OF COUNCIL.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. GIESELER MlVED TO AUTHORIZE THE CITY MANAGER TO
ADD A FIJU.-TIME PERMANENT POSITION TO THE WATER/SEWER UTILITY;
THE MOTION WAS SECONDED BY SIMUrIS.
In response to a question from MEEHAN, Schaefermeyer
stated that he did not foresee any appreciable impact on either
this year's or next year's budget, adding that projected reve-
nues should offset the additional cost to the utility. In
response to a question from O'BRIEN, he stated that the utility
desperately needs another state-certified operator to act as
back-up to the two current employees. He noted that many of the
tasks perfonned by the W/S operators require the presence of two
employees for safety reasons, and given the size of the utility,
it was often impossible to corrq:>ly with this requirement. He
added that there was also no back-up available to cover for an
employee who was ill or on vacation. Schaefermeyer stated that
the new employee would be hired as a trainee and would not
( CSE154922 )
I
I
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PAGE 179
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
receive full entry-level pay until he had received his state
certification.
THE QUESTION WAS CAlLED AND THE MOTION CARRIED WITH
FIVE "YES" VOTES AND 0' BRIEN VarING "NO".
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER stated that the negotiations with Inlet
Salrmn have been concluded and the lease would be scheduled for
public hearing on October 10.
SCHAEFERMEYER noted that the Council had been provided
a copy of the draft 3-year capital budget and requested a work
session prior to the October 10 meeting, stating that he would
like to have public hearing on October 10 and adoption on
October 24. GIESELER SCHEDULED A PUBLIC HEARING TO BEGIN AT
7:00 P.K, TUESDAY, OCTOBER 4, 1988, IN THE DISTRICT COURT ROCM.
SCHAEFERMEYER stated that he would like a second work
session to review the city's options regarding the Gateway
Subdivision. Gieseler asked that this session be scheduled
following the October 10 meeting.
SCHAEFERMEYER stated that, if there was no objection
from the Council, the city was prepared to make an in-kind
donation to Seward Friends of Education to cover printing and
postage on a "postal patron" flyer endorsing the Seward School
Proposition the group hoped to mail to all voters in the Bor-
ough. He stated that total cost to the city should not exceed
$5,000. Schaefermeyer noted that Seward Friends of Education
had raised approximately $1700 through the local business
comnunity. THERE WAS NO OBJECTION FRCM THE COUNCIL REGARDING
THE IN-KIND DONATION.
SCHAEFERMEYER thanked the staff for its support during
his tenure as Interim City Manager. Gieseler, in turn, thanked
Schaefermeyer and stated that he had done an admirable job over
the past several months.
XV. COUNCIL DISCUSSION:
DUNHAM stated that the local dermcrats were sending
letters to all area dermcrats urging them to vote for the
school. She challenged the local republicans to do likewise.
She noted that Chappell's article in the Daily News was a good
one and corrq:>limented our local assembly representatives for
making it possible for Nikiski to get its school. Finally,
Dunham thanked Martin for his letter to Carl Nom concerning
construction of a restaurant at SMIC, adding that she hoped to
see one in operation by next year.
GIESELER congratulated
streets and alleys looked great.
go to the polls on October 4.
Ainsworth, stating that the
He also urged area voters to
( CSE 154923
179
)
180
PAGE 180
REGULAR MEETING - SEPTEMBER 26, 1988
VOLUME 23
XVI. CITIZENS' DISCUSSION:
None
XVII. COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENTS:
None
XVIII.
ADJOURN1ENT :
The meeting was adjourned at 8:55 p.m.
S. y, Q1C
City , '
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Harry E. Gieseler
Mayor
----------------------------------------------------------------
PAGE 180
SPECIAL MEETING - OCTOBER 4, 1988
VOLUME 23
I. CAlL TO ORDER:
The October 4, 1988, special meeting of the Seward
City Council was called to order at 6:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Counci1rnernber Meehan led the pledge of allegiance to
the flag.
III. ROIL CAlL:
Present were: Mayor Gieseler and Counci1rnernbers Hil-
ton, Meehan, O'Brien and Simutis
(Dunham and Noll were excused)
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, Finance Director Peir-
son, Fire Chief Gage, Harbonnaster
Singleton, Port Marketing Director
Gates, Public Works Supervisor
t CSE154924 )
I
I
I
PAGE 181
SPECIAL MEETING - OCTOBER 4, 1988
VOLUME 23
IV.
Ainsworth, Electrical Engineer Anderson
and City Clerk Murphy
APPROVAL OF AGENDA:
Gieseler noted that the Council had been copied with a
revised agenda.
SJMUTIS MlVED TO APPROVE THE REVISED AGENDA AS PRE-
SENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUS-
LY.
V. CITIZENS' CCM1ENl'S ON AGENDA ITEMS ooT SCHEDULED FOR
PUBLIC HEARING:
None
VI. RESOLUTIONS
A. Copies having been made available to the public,
Gieseler noted by title only a proposed resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING THE PURCHASE
OF SNOWGUARDS FOR THE SPRING CREEK CORREC-
TIONAL CENTER WITHOUT FUll. UTILIZATION OF
CITY BID PROCEDURES.
HILTON MOVED TO APPROVE RESOLUTION NO. 88-110; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
B. Copies having been made available to the public,
Gieseler noted by title only a proposed resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AWARDING A CONTRACT FOR
PAVING AND APPROPRIATING FUNDS.
SJMUTIS MlVED TO APPROVE RESOLUTION NO. 88-111; THE
MOTION WAS SECONDED BY HILTON.
Schaefermeyer stated that the city had originally
requested proposals for paving in accordance with city bid
procedures; however , only one bid was received and the bid was
found by the Council (on August 22, 1988) to be nonresponsive.
(The bidder had made his bid contingent upon being awarded the
Chugach Forest Products, Inc., contract for paving but had not
been successful in that bid effort.) The Council had instructed
the administration to negotiate a paving contract with the
contractor perfonning paving for Chugach. Schaefermeyer stated
that the proposal before the Council was the result of this
Council-directed negotiation.
181
PRISON/CON- 5Js/
RESO: (Purchase
of Snowguards)
STREETS/SMIC/SBH/
CON-3oCj /RESO:
(Paving Contract)
( CSE 154925 ]
182
PAGE 182
SPECIAL MEETING - OCTOBER 4, 1988
VOLUME 23
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMlUS VOTE OF COUNCIL.
VII. CITY MANAGER REPORTS:
SCHAEFERMEYER scheduled a work session to discuss the
city's options regarding Gateway Subdivision and the city's
agreement with Alliance Bank. Gieseler instructed the Clerk to
schedule the work session for 5: 00 p.m., Wednesday, October 5,
1988, immediately following the canvass of the election.
ROYLE thanked the Council for the reception on Monday
evening. He also informed Council that Finance Director Peirson
had submitted his resignation, effective December 2, 1988, and
added that recruitment would begin immediately.
VIII.
COUNCIL DISCUSSION:
MEEHAN stated that he was sorry to see Peirson leave
and wished him luck.
O'BRIEN asked if Rasco, Inc., was still intending to
leave its local plant in place over the winter. Schaefermeyer
stated that Rasco had not made a finn corrmitment as yet, but the
city had offered a spot at SMIC to store its equipment. Craig
Currier, representing Rasco, stated that the plant might be
IIDVed to Guam; however, he was hoping to keep it in Seward
through the winter to take advantage of local paving projects
next season.
GIESELER thanked SiIIlltis for allowing the city to host
Royle's reception at Ray's Waterfront. He also noted that Royle
had been presented a list of Council priorities for his review
and action.
IX. CITn~ENS' DISCUSSION:
None
X. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' C<M1ENTS:
None
XI.
ADJOURNMENT :
~~~,)...w ~. ...:~, ':..:,
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'~~. _e-
The meeting was adjourned at 6:50 p.m.
. "
Harry E. Gieseler
Mayor
( CSE15492b ]
I
I
I
PAGE 183
SPECIAL MEETING - OCTOBER 5, 1988
VOLUME 23
1. CAlL TO ORDER:
The October 5, 1988, special meeting of the Seward
City Council was called to order at 4:07 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnember Dunham led the pledge of allegiance to
the flag.
III. ROlL CAlL:
Present were: Mayor Gieseler and Councilrnembers Dun-
ham, Hilton, Meehan, O'Brien and
Simutis (Noll was excused)
Present also: Administrative Secretary Jones and City
Clerk Murphy
IV. APPROVAL OF AGENDA:
HILTON MOVED TO APPROVE THE AGENDA AS PRESEN'IED; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMlUSLY.
V. NEW BUSINESS:
A. Murphy distributed a tally of the unofficial
resul ts of the October 4, 1988, regular election. She noted
that a total of five hundred and sixty (560) votes had been cast
at the polls. Of these, five hundred and fifty-three (553)
ballots had been counted by the election boards; the remaining
seven (7) ballots were questioned ballots to be considered by
the Canvass Board. Murphy also displayed the tally sheets and
the lists of those requesting and receiving absentee ballots
prior to the election.
Murphy distributed a list bearing the nam2S of the
forty-nine (49) electors who had requested absentee ballots.
She noted that four (4) ballots which had been mailed had not
been returned in time to be canvassed by the board. She noted
that all absentee ballots in her possession had been cast by
qualified voters of the city and she recommended that the board
count the forty-five (45) ballots cast by the below named
voters:
PRECINCT 00. 1
PRECINCT NO. 2
ALEXANDER, Donna
ALLEN, Walter
AMOS, Dane
ANDERSEN, Paul
AUDEITE, Christy
BREWSTER, Fred
ANDERSON, Margaret
CAPRA Cynthia A.
DIENER, Everett P.
DIENER, MJrle E.
DUNHAM, Willard E.
KARGES, Bever ley J.
183
ELECTIONS: (Can-
vass of 100488
Regular Election)
( CSE154927 )
184
PAGE 184
SPECIAL MEETING - OCTOBER 5, 1988
VOLUME 23
BUCHANAN, Perry N.
CASAVOIA, John M.
CAMPBELL-CRIPPS, Ann
CLEMENS, David
CLEMENS, Mary
CRIPPS, David B.
FLETCHER, W. E.
GERWER, Theodore J.
HATCH, Anne M.
HATCH, Ralph W.
HEADLEY, Lauren S.
KAISER, Mary
KANSTElNER, Mark
LINDSEY, Dale R.
ILOYD, Bob
MAl, Audra M.
MAl, Natalie J.
MCCABE, Maureen L.
PLUMB, Charles L.
REGIS, Parnala E.
RICHARD, Larry
WERNER, George H.
WIIl<ENS, Margaret C.
WOODRUFF, John P.
GIESELER MOVED TO ACCEPT THE CLERK'S RECCM1ENDATION TO
COUNT THE FORTY-FIVE (45) ABSENTEE BALLCYrS; THE MOTION WAS
SECONDED BY HILTON AND CARRIED UNANIMlUSLY.
KARGES, Charles E.
MCCAULEY, Lorraine
ooLL, Jayne A.
ooLL, William C.
RICE, Chrystine
SAWYER, George T., Jr.
SAWYER, Kathleen A.
SCHAEFERMEYER, Karla
SEWAlL, Fletcher F.
As Gieseler read the names on the absentee ballot
envelopes, Meehan opened the outer envelopes, reIIDved the plain
white irmer envelopes and set them aside to be opened later in
the meeting.
Murphy distributed a list of persons casting ques-
tioned ballots on election day. She stated that the seven (7)
questioned ballots had been cast by voters whose names did not
appear on the precinct registration lists. She stated that of
the questioned ballots cast, the following five (5) were recom-
mended for rejection as follows:
PRECINCT 00. 1
ARLEDGE, M. - No record of voter registration
PRECINCT 00. 2
CHASE, Matt T. - Registered in Bear Creek
FORREST, Patricia E. - Registered in Bear Creek
HIGffi'CMER, Montine J. - Registered in Moose Pass
ROSSIE, Richard B. - Registered in Anchorage
GIESELER MOVED TO ACCEPT THE CLERK'S REC<M1ENDATION TO
REJECT THE FIVE (5) QUESTIONED BALLOTS; THE MarION WAS SECONDED
t CSE154926 1
I
I
I
lRS
PAGE 185
SPECIAL MEETING - OCTOBER 5, 1988
VOLUME 23
BY SIMIITIS AND CARRIED UNANIMlUSLY.
rejected ballots from the others and
keeping .
Murphy removed the five
put them aside for safe-
Murphy recommended that the board count the remaining
two questioned ballots as cast by the following electors:
PRECINCT m. 1
THORN, Patricia A. - Corrq:>Uter error
PRECINCT NO. 2
DIETRICH, Marilyn - Name change only; registered as Marilyn
Olson
GIESELER MlVED TO ACCEPT THE CLERK'S RECCM1ENDATION TO
COUNI' THE 'lID QUESTIONED BALLOTS; THE MarION WAS SECONDED BY
SIMUrIS AND CARRIED UNANIMlUSLY.
The questioned ballots were reIIDved from their outer
envelopes by Meehan and shuffled with the absentee ballots which
had been set aside earlier. The forty-seven white envelopes
were opened by Meehan. The ballots were removed and read aloud
by Gieseler while Hilton and O'Brien tallied and Meehan and
DLmharn observed. The totals of the absentee and questioned
ballots counted were added to the totals of those ballots cast
and counted on election day. Murphy read the results of the
combined totals as follows:
PRECINCT PRECINCT ABSENTEE/
00. 1 00. 2 QUESTIONED TOTALS
COUNClIMEMBER
(2-Year Tenn -
Three to be
elected)
DUNHAM, Beverly 251 161 36 448
NOLL, Bill 253 154 32 439
SIMUrIS, Leslie 192 122 32 346
Write-Ins 93 20 9 122
TOTAL VOTES CAST 358 202 49/7 609
TOTAL VOTES COUNTED 356 197 45/2 600
Murphy stated that any defeated candidate or any 10
qualified voters could protest the election by filing a written
corrq:>laint with the City Clerk prior to 5: 00 p.m., Monday,
October 10, 1988. She added that if no such protest was filed,
the City Council, at its regular meeting of October 10, 1988,
would certify the election as valid and declare the results
official.
( CSE154929 )
186
PAGE 186
SPECIAL MEETING - OCTOBER 5, 1988
VOLUME 23
VI. ADJOURNMENI':
The meeting was adjourned at 4:35 p.m.
_e_
~ .. .
SEAL
~L~~~'e~
. Ha . Giese er
Mayor
PAGE 186
----------------------------------------------------------------
VOLUME 23
1. CAlL TO ORDER:
REGULAR MEETING - OCTOBER 10, 1988
The October 10, 1988, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnember Noll led the pledge of allegiance to the
flag.
III. ROIL CAlL:
Present were: Mayor Gieseler and Councilrnembers Dun-
ham, Hilton, Meehan, Noll, O'Brien and
SiIIlltis
Present also: City t1anager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Finance Director Peirson, Deputy
Finance Director Gifford, Port Market-
ing Director Gates, Engineering &
Utilities Manager Diener, Police Chief
Bencardino, Hospital Administrator
Campbell, Electrical Engineer Anderson,
Parks & Recreation Director Yanez,
Harbonnaster Singleton, Public Horks
Supervisor Ainsworth, and City Clerk
Murphy
( CSE154930 1
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187
PAGE 187
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
IV. APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE SEPTEMBER 26, OCTOBER 4,
AND OCTOBER 5, 1988, MINUTES AS WRI'ITEN; THE MOTION WAS SECONDED
BY SIMUrIS AND CARRIED UNANIMlUSLY.
SPECIAL ITEMS:
A. MEEHAN HOVED TO CERTIFY THE RESULTS OF THE ELECTION:
OCTOBER 4, 1988, ELEcrION AS OFFICIAL; THE MarION WAS SECONDED (Certified)
BY HILTON AND CARRIED UNANIMlUSLY.
B. Newly re-elected Councilrreni>ers Dunham, Noll and C. COUNCIL:
Simutis were sworn by Murphy.
V. APPROVAL OF REGUlAR MEETING AGENDA:
HILTON MlVED TO APPROVE THE REGULAR MEETING AGENDA AS
PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED
UNANIMOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall stated that there had been no Assembly meeting since his
last report to the Council. He noted that the Borough Planning
Carrrnission was currently in session at the Seward School Cafete-
ria and would be hearing testirmny on the Coastal Zone
Management Plan later in the evening. He invited Council to
attend the remainder of the Planning Carrrnission meeting if the
Council meeting adjourned at an early hour. He also introduced
Borough Assembly Representative Jim Skogstad and stated that the
two of them would be returning to the Planning Carrnission
meeting inmediately following his report.
VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANI-
MlUSLY. The following actions were taken:
1$' July 1988 invoice from HTGP&B for legal services C. A TTY :
totalling 17,964.05, was approved for payment;
2. August 1988 invoice from Brittain, Mersereau & C. ATTY:
Pent large for legal services totalling $953.95, was approved for
payment;
( CSE154931 )
188
ALCOHOL/RESO:
FINANCE DEPT/
RESO:
CON-218;
CON-159:
CON-261:
PROCLAMATIONS:
PAGE 188
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
3. Resolution No. 88-109, urging the Legislature to
provide funding to IIllnicipalities to offset the cost of comply-
ing with the provisions of AS 47.37, was approved;
4. Resolution No. 88-113, authorizing signatures for
the city bank account and rescinding all previous resolutions in
conflict therewith, was approved;
5. Change Order No. 6 to Contract No. CON-218 with
Underwater/Swalling, JV, to machine the transition rails from
the lift dock to the rails, for a contract increase totalling
$1,252, was noted for infonnation;
6. September 29, 1988, memorandum from Diener noting
the following change orders to the Sarrwhan contract for prison
construction was noted for infonnation:
11211 - Rerroval of stumps during earthwork operations
(+$7 ,~;
11212 - Repair or replace vent pipes at roof pene-
trations, decktight seals, repair water damage, and supply
and install 33 ice deflectors (+$29,914);
11213 - Install fire department pumper connections in
buildings 1, 2, 3, 4 and APS (+$47,588);
11214 - Rerrove and replace unsuitable material along
the sewer line under the service road (+$5,403);
11215 - Install threaded swing joints at the 20,000 and
30,00o:gallon fuel tanks (+$1,100);
11216 - Provide one lexgard for the light on the West
wall frame in 11307 and a credit for the installation of
light on West wall of 11305 (+$622);
11217 - Install 46 access hatch doors and paint doors
(+$19-;tIT) ;
11218 - Install metal studs on the APS building and
gypsum wall board and vapor barrier on Building 113
(+$9,398); and
The following change orders to the Titan Construction
contract for prison subcontract work were noted for infonnation:
118 - Install manual override switches, with cost to be
sharedby the state and Sarrwhan (+$2,725);
119 - Provide all equiprrent, materials and labor as
requested by DOC to construct a 6" metal stud/GWB wall and
IIDdify the window wall, and in the maintenance ship area,
add 6 sprinkler heads and a new 4" water flow indicator on
the main riser (+$14,108); and
7. Proclamations of the Mayor as follows were noted
for information:
October 1988 - National Disability Employment Aware-
ness Month;
October 1988 - Domestic Violence Awareness Month;
( CSE 1')4932 1
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PAGE 189
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
October 16-22, 1988 - National Business Women's Week;
October 23-30, 1988 - Red Ribbon Week and Drug Free
America \.Jeek.
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding the proposed lease of three unsur-
veyed parcels containing a total of ~4.5 acres within USS 4827,
located in the Seward Marine Industrial Center, to Inlet Fishe-
ries, Inc., for the purpose of constructing and operating a
fisheries dock and fish processing facility was noted and the
public hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
B. Notice of public hearing as posted and published
as required by law regarding the proposed lease of a ~20, 589
square foot parcel located within Block 8, Oceanview Subdivision
(1215 Fourth Avenue), to Kenai Fjords Tours, Inc., was noted and
the public hearing was opened; no one appeared in order to be
heard and the public hearing was closed.
C. Notice of public hearing as posted and distribut-
ed regarding the city's proposed 3-year capital budget was noted
and the public hearing was opened.
LARRY WERNER, 334 Sixth Avenue, president of Seward
Enhancement Association, stated that SEA had reviewed the
proposed 3-year plan before the Council and wished to add some
additional items for Council's consideration: 1) New street
lights for the downtown area, for an estimated total cost,
installed, of $175,000; 2) Paving of the Fourth Avenue extension
to Leirer Road, for an estimated cost of $62,000; and 3) Side-
walks for both sides of Fourth Avenue from downtown to the Small
Boat Harbor, for an estimated cost of $575,000.
ANDY PATAPOFF, Resurrection Road, representing the
Seward CharIDer of Commerce, stated that the CharIDer had conduct-
ed a telephone poll of its members and would like to offer for
Council consideration the Chamber's prioritized capital list
(for legislative funding): 1) Cruise ship/ferry/IMS joint use
dock; 2) New hospital; 3) Road improvements to include side-
walks; 4) Small Boat Harbor expansion and improvements; and 5)
Continued development and expansion of SMIC. In addition, he
presented the Chamber's prioritized list of possible city-funded
projects: 1) Beautification projects to include street lights,
parks, trees, benches and public campground improvements; 2)
Sidewalks and walking/bike paths; 3) City road improvements; 4)
Boat Harbor parking improvements; and 5) Public transportation
system.
KEITH CAMPBElL, 1910 Forget-Me-Not Circle, Seward
General Hospital Administrator, stated that the Commissioner of
189
PUBLIC HEARINGS:
(Inlet Fisheries
Lease)
PUBLIC HEARINGS:
(Kenai Fjords
Tours Lease)
PUBLIC HEARINGS:
(Capital Budget)
(CSEI5493J )
190
PERSONNEL/ORD:
(Holiday Sched.
for Library
employees re-
structured)
PAGE 190
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
Health had visited Seward on Septerrber 19 and was now convinced
of Seward's need for funding for a new hospitaL He urged the
Council to name the new hospital as the city's number one
priority for the coming year. He also suggested that three
pieces of equipment needed by the hospital be included in the
lease/purchase funding category for this fiscal year in an-
ticipation of repaying the debt with state grant funds should
funding for the hospital be forthcoming during the next legis-
lative session. The equipment requested included a mamrographic
machine, ultra sound equipment, and coronary equipment, for a
total estimated cost of $125,000.
BRAD SNOWDEN, 525 Sixth Avenue, suggested Council
consideration of the following items for inclusion in its
priority list: 1) Downtown parking; 2) Beautification of the
downtown waterfront; and 3) Antiqued street lights for the
downtown area. Snowden noted that he had ordered two antiqued
street lights for installation in the sidewalk fronting his
hotel and added that he would be coming to the Planning Corrmis-
sion soon for a variance to allow the planned installation.
Snowden further noted that the antique street light theme had
been approved by the Seward Enhancement Association.
Schaefermeyer stated that Council would be asked to
adopt a three-year plan at the next meeting and would be asked
to prioritize those items for which grant funds would be sought
at a later time.
No one else appeared in order to be heard and the
public hearing was closed.
X. PRESENTATIONS WITH PRIOR NarlCE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING THE CITY PERSON-
NEL CODE BY RESTRUCTURING THE HOLIDAYS WITH
PAY SCHEDULE FOR LIBRARY EMPLOYEES.
HEEI1AN MOVED TO ENACT ORDINANCE NO. 609; THE MJrION
WAS SECONDED BY DUNHAM AND CARRIED UNANIMlUSLY.
( CSE 154934 1
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PAGE 191
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, APPROVING A LEASE AGREE-
MENT WITH INLET FISHERIES, INC.
SIMUTIS mVED TO APPROVE RESOLUTION NO. 88-102; THE
MOTION WAS SECONDED BY HILTON.
MEEHAN noted that he would abstain from discussion or
voting on this resolution since he was employed by Seward
Fisheries, Inc., and would be a maj or corrq:>eti tor of Inlet
Fisheries.
In response to a question from O'BRIEN, Gates stated
that the city did not know to any true extent the financial
capabilities of Inlet Fisheries and had, therefore, requested a
signed guaranty by the owner Vince Goddard. In addition, there
was no financial risk to the city since the dock would be
constructed solely with Inlet Fisheries' funds. Following
construction of the dock, it would becOOY2 the property of the
city and Inlet would have no choice but to operate a fish
processing facility on the lease site if it hoped to recoup its
investment in the dock. In addition, if Inlet Fisheries failed
to meet the benchmark dates in the lease, the lease would self-
destruct. O'Brien asked if Goddard would object to a con-
struction "start" date as a part of the lease; Goddard stated
that he had no objection.
0' BRIEN MlVED TO INCLUDE IN THE LEASE DOCU1ENT A
PROVISION WHICH WOULD REQUIRE THAT CONSTRUCTION OF THE DOCK
C<M1ENCE NO IATER THAN JUNE 1, 1989; THE MOTION WAS SECONDED BY
HILTON AND CARRIED WITH SIX "YES" VOTES AND MEEHAN ABSTAINING.
0' BRIEN also asked if provisions had been made for
housing itinerant seasonal employees. Goddard stated that he
was currently looking into this and had considered the possibil-
ity of leasing additional land to provided trailer housing or
requesting that the city set aside some property for employee
camping.
In response to a question from HILTON, Gates explained
the Raw Fish Tax penalty provisions should less than eighty
percent (807.) of the fish purchased in Seward by the Lessee be
processed in Seward.
THE QUESTION WAS CAlLED ON 'IRE MAIN MOTION AND RESOLU-
TION NO. 88-102 AS APPROVED WITH SIX "YES" VOTES AND MEEHANeABSTAINING.
191
SMIC/RE-07q! /RESO:
(Inlet Fisheries
Lease)
t CSE l54935 1
192
OCEANVIEW SUB/
RE-D1J /RESO:
(Kenai Fjords
Tours Lease
of A-Frame
Lot)
PAGE 192
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING THE TERMINA-
TION OF CITY LEASE 00. RE-013 AND THE
IDNG- TERM LEASE OF THE SUBJECT PROPERTY TO
KENAI FJORDS TOURS, INC.
SIMUrIS MlVED TO APPROVE RESOLUTION NO. 88-112; THE
MarION WAS SECONDED BY HILTON.
In response to a question from DUNHAM, Jack Scoby (a
principal in Kenai Fjords Tours, Inc.) stated that the property
would be used to continue the Salm:m Bake business and to
provide parking for Kenai Fjords Tours customers. Dunham stated
that she wanted some assurance that any future leases in the
Boat Harbor \oJOuld be marine related. Scoby stated that the
lease required that the business be marine or tourist related.
O'BRIEN asked if the administration had fashioned the
appraisal schedule for this lease to confonn to some stan-
dardized appraisal schedule for all Boat Harbor properties. He
noted that the Council had asked some time ago that the adminis-
tration begin the process of having all appraisals due at the
same time to avoid the necessity of requesting several different
appraisals each year.
0' BRIEN MlVED TO AMEND THE LEASE BY ADJUSTING THE DATE
FOR THE FIRST RATE REVIEW TO JULY 1, 1990, WITH APPRAISALS DUE
IN FIVE-YEAR INCREMENTS 'illEREAFTER; THE MOTION WAS SECONDED BY
HILTON.
Scoby noted that the lease signed by Kenai Fj ords
called for the first rental adjustment in 1993, and he would
have to meet with his partners before he could agree to this
change.
AT THE SUGGESTION OF COUNCIil1EMBER ooLL, 0' BRIEN
CHANGED HIS AME:NI:W:NT TO READ "1995"; THE SECOND CONCURRED. THE
QUESTION WAS CAlLED ON THE AMENDMENT AND IT CARRIED BY UNANI-
MlUS VOTE OF THE COUNCIL.
DUNHAM MlVED TO AMEND THE LEASE BY REQUIRING THAT ANY
BUSINESS OPERATED ON THE PROPERTY BE MARINE OR TOURIST REIATED.
Schaefermeyer noted that several years ago the Council
had changed its Boat Harbor lease policy to allow any use
allowed outright or by conditional use permit in the Harbor
CotIIrercial Zone.
DUNHAM WITHDREW HER MOTION TO AMEND.
(CSE154936 )
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PAGE 193
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
THE QUESTION WAS CAlLED ON THE MAIN MarION AND RESOLU-
TION 00. 88-112 WAS APPROVED BY UNANIMOUS VOTE OF COUNCIL.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. SIMUTIS MOVED TO APPROVE 'mE CIAIM FOR DAMAGES
TOl'ALLING $3,194.83 AS FILED BY GREG THRALL; THE MarION WAS
SECONDED BY MEEHAN.
MEEHAN noted that the administration I s memorandum
indicated that the linemen had not followed instructions when
clearing trees in the Primrose area, and he asked for an expla-
nation from Diener. Diener stated that, while it was true the
linemen had failed to follow departmental policy, this should
not be a consideration of the Council when detennining the
validity of the claim. He added that the problem with the
linemen was being handled intemally. He noted that all trees
cut by the linemen were in Borough or State Right-of-Way and
could be cleared without Thrall's authorization. In addition,
the cleared area did not front Thrall's property, but the
adj acent lot. Diener further noted that, while Thrall had
discussed the possibility of putting in underground service at
some future date, he had not been forthcoming with a signed
agreement or a deposit for the work. MEEHAN stated that he
wanted some assurance that utility employees were not deliber-
ately antagonizing the public. Diener assured the Council that
he was treating the matter very seriously and had made a real
effort to avoid cutting trees which acted as a shield between
residences and the roadway. He stated that it was unfortunate
that the trees in the reference ROW had been reIIDved when there
was no need for clear-cutting; however, this did not, in his
opinion, warrant payment of Thrall's claim.
GREG THRAIL, Primrose Lane, stated that the under-
ground electrical project was something that he did intend to
see happen; however, he had wanted to wait another year until
Sam Young, owner of the lot directly North of his, was ready to
build so that they could put in the power as one project and
share the cost.
At the request of 0' BRIEN, Murphy distributed photo-
graphs of the cleared area which had been provided by Thrall.
HILTON asked how Thrall had arrived at the $3,194.83
figure. Thrall explained that this represented the cost to him
to install an underground electrical system. HILTON noted that
the trees cleared did not appear to be worth +$3,000. MEEHAN
concurred, stating that he could not support the claim.
193
CLAIM FOR DAMAGES:
(Thrall Claim
DENIED)
l CSE154937 1
194
C. COUNCIL:
(Vice Mayor)
C.COUNCIL/COM.
HOSPITAL BOARD:
PAGE 194
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
THE QUESTION WAS CAlLED AND THE IDI'ION FAILED WITII
FIVE "NO" VOTES AND GIESELER AND NOll VOTING "YES".
B. SIMUrIS MOVED TO NAME MEEHAN VICE MAYOR OF
COUNCIL FOR THE CCMING YEAR; THE MarION WAS SECONDED BY HILTON
AND CARRIED UNANIMlUSLY.
C. GIESELER APPOINTED 0' BRIEN TO SERVE AS THE
COUNCIL'S REPRESENTATIVE TO THE CXl1MlJNITY HOSPITAL BOARD.
XIV. CITY MANAGER REPORTS:
None
XV. COUNCIL DISCUSSION:
NOIL stated that he was sorry to see that Tom Stauden-
rneier and Louis March were "at it again". He noted that it
appeared to be time to talk about the electric utility publicly
once again and requested that the administration prepare some-
thing in writing to make available to the public and to schedule
a public hearing on the utility so that the public could be
better informed. Noll added that StaudeIl!IEier had no interest
in Seward's utility except as a means to advance his own am-
bitions.
HILTON stated that it was unfortunate that some
rrernbers of the cOlllI\llIlity thought that the Council arbitrarily
and recklessly set electric rates when the city had spent
significant aIIDunts of rmney for experts to advise the Council
on what rates should be. Hilton also thanked the city for the
new playground equipm=nt which had been installed in Forest
Acres.
In response to a question from HILTON, Schaefermeyer
stated that the city had included paving the new school road
from the highway to Diarmnd Boulevard in the 1989 capital
budget. He added that the Borough would fund paving that
portion of the road from DiaIIDnd to the school. He also noted
that the Arrrrj and Air Force had agreed to relinquish the
right-of-way for the road. Gieseler stated that the Air Force
intended to block the south entrance frOm the highway to Diarmnd
and convert that portion of the roadway from the highway to the
school road to a parking area for the camp.
DUNHAM stated that the handicap ramps on Fourth and
Jefferson were in need of repair. She also stated that she
concurred with Noll on the electrical situation. Dunham
reminded the audience that last year, residents of Girdwood were
without power for six consecutive days as a result of a snow
slide; however city residents were alIIDst imnediately put on
city generator power when that slide occurred. She stated that
this was one of the luxuries of having a locally-owned utility
which would be lost if the city's electricity was provided by
Chugach.
( CSE 154938
1
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195
PAGE 195
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
MEEHAN thanked the Council for its vote of confidence
in once again electing him Vice Hayor. He asked Diener if the
city had ever considered contract clearing for the utility.
Diener responded that contract clearing was his preference and
was utilized for IIDst clearing.
GIESELER stated that he had personally approached
those who had signed the applications for recall petitions;
eighty percent (80%) of those questioned had indicated that they
were told that by signing the applications, they would get lower
electric rates and did not realize they were signing applica-
tions for a recall petition. He noted that two signers had
already submitted written requests to the city to reIIDve their
names from the applications and several others had stated that
they would do likewise.
GIESELER noted that the Trade Board had requested
action on several items as follows:
1. Work session with the Council on Alaska Railroad
Dock transfer and other issues (Gates stated that this should
be set aside until after the Governor's appointment to the ARR
Board of Directors has been made. )
2. Work
capital priorities
11:30 a.m.)
Session with the Trade Board to discuss
(Scheduled for Thursday, October 20, at
3. Request for a letter from the Mayor urging that
Seward be included in the US Fish and Wildlife and Alaska
Department of Fish & Game "Fisheries Enhancement Plan Update"
(There was no objection from the CounciL)
4. Request for a resolution opposing IIDving the
TustUllena to Kodiak (Scheduled for action on October 24.)
5. Request for a resolution urging the upgrade of
the Seward Highway, Mile 50-65, and prohibiting tandem rigs on
the highway during the winter rmnths. Schaefermeyer cautioned
against the prohibition of tandem rigs in winter, noting that
this would make it impossible for barge corrq:>anies wanting to use
the Port of Seward to compete. O'Brien disagreed, stating that
the tandem rigs should be outlawed altogether. (Resolution
urging upgrade of the highway only was scheduled for action on
October 24.)
XVI. CITIZENS' DISCUSSION:
RHONDA ANDERSON-HUBBARD, 200 Marathon Drive, stated
that she concurred with 0 I Brien ' s concem about the financial
capabilities of city lessees. She encouraged the administration
to carefully monitor and enforce provisions of its leases.
(,50"". )
196
PAGE 196
REGULAR MEETING - OCTOBER 10, 1988
VOLUME 23
BOB VALDATIA, 528 Fifth Avenue, commended the electric
crew and stated that the trees they cleared were probably
"hazard" trees. He also suggested that the city decrease its
ferry lease fee so that the Tusturnena' s fares to Kodiak could be
brought in line with the fare from Homer to Kodiak. He stated
that this YJOuld encourage the majority of those travelling to
Kodiak to embark from Seward. Valdatta commented on the
advisory survey. He further noted that the city could be
providing all the power it needs with stearn produced from waste
products. He noted that the Railroad Dock needs upgrading.
Finally, Valdatta asked how the Council intended to fill any
vacancy which might occur as a result of a recall, given the
fact that the incumbents had run unopposed. Murphy explained
that there was no requirement that the Council appoint the "next
high vote-getter" when filling a vacancy on Council. Should
members of Council be recalled, the remaining rrernbers would
appoint qualified residents of the city to sit on Council until
the next regular election. Should the entire Council be re-
called, the Governor would appoint three rrernbers and these three
would appoint four additional rrernbers. Should the Mayor be
recalled, the Council would appoint a seventh Counci1mernber and
the Council would elect a Mayor from its rrernbers.
XVII.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENl'S:
NOll urged Valdatta to submit his idea for providing
primary power to Seward to the Alaska Science and Technology
Foundation in Anchorage.
GIESELER asked Murphy to copy Valdatta with Code and
Statutory provisions for filling Council vacancies.
XVIII .
ADJOl1l\R1ENT :
The meeting was adjourned at 9:55 p.m.
.
City Clerk
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( CSE1'>4940 1
I
I
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197
PAGE 197
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
I. CALL TO ORDER:
The October 24,
City Council was called to
Gieseler.
1988, regular meeting of the Seward
order at 7:30 p.m. by Hayor Harry E.
II. OPENING CEREMONY:
Councilrnernber Simutis led the pledge of allegiance to
the flag.
III. ROIL CALL:
Present were: Mayor Gieseler and Councilrnernbers Hil-
ton, Meehan, 0' Brien and Simutis
(Dunham and Noll were excused)
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Fire Chief Gage, Harbonnaster Single-
ton, Engineering & Utilities Manager
Diener, Port Marketing Director Gates,
Police Sgt. Brossow, Deputy Finance
Director Gifford, Parks & Recreation
Director Yanez, Hospital Administrator
Campbell, Administrative Assistant Mar-
tin, Teen Center Director Addleman and
City Clerk Murphy
IV. APPROVAL OF MINUTES:
o I Brien requested an amendrrent to Paragraph 3, Page
192, of the minutes. He noted that the standardized appraisal
schedule should apply to all "city lease" properties, not "Boat
Harbor" properties. -
HILTON MOVED TO APPROVE THE OCTOBER 24, 1988, MINUTES
AS AMENDED; THE MarrON WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMOUSLY.
SPECIAL ITEM:
A. Eric Barlow and Sean Glenn noted that the Hayor
had declared this week to be "Red Ribbon Week" in Seward in
recognition of "Drug Free America Week". They distributed red
ribbons to the Mayor, Council, Administration and others present
at the meeting.
V. APPROVAL OF REGUlAR MEETING AGENDA:
Royle deleted Resolution No. 88-119 from the regular
meeting agenda and asked the Council to schedule a special
meeting later in the week to consider approval of the resolution
following further negotiations with Alliance Bank, Hall and
METCO/Trend.
( C 5El54941 1
198
PAGE 198
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
GIESELER DIRECTED THE CLERK TO CAlL A SPECIAL MEETING
OF THE CITY COUNCIL AT NOON, THURSDAY, OCTOBER 27, 1988.
MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MlUSLY.
MEEHAN MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY
FOLLCMING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS THE
PRISON ARBITRATION AGREEMENl'; THE MarION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI. BOROUGH ASSFl1BLY REPORT:
Kenai Peninsula Borough Assembly President Sewall was
not present and no report was given.
VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
O'Brien asked that Consent Calendar Item No. 9 and 10
be placed on the regular meeting agenda under "New Business".
Schaefermeyer requested the deletion of Item No.8.
SIMUrIS MlVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY. The following actions were taken:
LITIGATION/ELECTION/ 1. Resolution No. 88-114, supporting state tort
RESO: refonn as set forth in state Ballot Measure No.2, was approved;
STREETS/RESO:
2. Resolution No. 88-115, urging the state Depart-
ment of Transportation and Public Facilities to designate the
repair and upgrade of the Seward Highway as its Number One
Priority, was approved;
SMIC/RESO:
3. Resolution No. 88-116, accepting the federally-
funded Seward Marine Industrial Center Rails and Cradles proj-
ect, was approved;
C.ATTY:
4. October 2, 1988, invoice from Wohlforth, Flint &
Gruening for legal services totalling $136.71 was approved for
payment;
C.ATTY:
5. August 1988 invoice from HTGP&B for legal ser-
vices totalling $16,941.21 was approved for payment;
6. October 11, 1988, memorandum from Schaefermeyer
requesting authorization to offer a one-year contract extension
to Herman Leirer, dba Seward Service, for the collection and
CON-OgJ :
( C Sf 154942 1
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199
PAGE 199
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
disposal of garbage and refuse within the city and to execute
the necessary contract amendment if Leirer accepts the exten-
sion, was approved;
7. October 14, 1988, memorandum from Murphy request- C. COUNCIL:
ing authorization to reschedule the first November Council
meeting to Noverrber 7, 1988, was approved;
8. DELETED;
9. MOVED TO REGUlAR MEETING AGENDA (I tem No.
XIII-D) ;
10. MlVED TO REGULAR MEETING AGENDA (Item No.
XIII-E) ;
11. October 19, 1988, memorandum from Murphy recom-
mending that the Mayor appoint Kerry Martin to be the city's
representative to the SEE team to study proposed improvements to
Exit Glacier road was approved and Martin was so appointed;
STREETS: (Exit
Glacier Road)
12. October 11, 1988, meIIDrandum from Martin concern-
ing the Dar/PF six-year plan was noted for infonnation;
13. October 17, 1988, contract corrq:>letion report as
filed by Diener was noted for infonnation;
14. October 19, 1988, memorandum from Diener concern-
ing the informal petition regarding the Senior/Conmmity Center/
Museum was noted for infonnation; and
15. October 14, 1988, memorandum from Diener noting
the following Prison Construction Change Orders was noted for
infonnation:
SAM<JHAN CON- 15't:
#219 - Install moisture and fire-resistant shims
at all anchorage points of window 11151 in Buildings 112
and #3 (+$2,132);
11220 - Reroute the waste and supply plurrbing
lines ----ror fixtures P-8 and P-21 in the guard tower
(+941);
#221 - Install clip angles for Building #4, third
floor~drails (+$865);
11222 - Revised hardware at doors 1-217, 1-218A
and 1=2l8B, and rework the doors and frames
(+$10,657);
TITAN CONSTRUCTION
CON-llo \:
1110 - Reroute the domestic hot and cold water --
lines in order to IIDunt the telephone cabinet per the
contract drawings (+$450).
IX. PUBLIC HEARINGS:
( C SE154943 )
200
CITIZENS' DISC:
(Knudson - Pro-
posed golf
course)
CITIZENS' DISC:
(Bardarson -
SBH Access
Problems)
PAGE 200
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
None
X. PRESENTATIONS WITH PRIOR NOTICE ONLY:
A. JAMES L. KNUDSON, 227 Fifth Avenue, Seward,
presented Council with his proposal to lease an 18-acre parcel
of city-owned property fronting the Seward Highway between
DiaIIDnd and Hemlock Streets in order to develop and operate a
recreational facility consisting of a 9-hole, par-3, golf
course; a covered rifle and pistol range; covered tennis court
and a mini-malL In response to a question from O'Brien, he
stated that he would invest $300,000 in the project through
June, 1990.
Simutis stated that the concept was exciting, but was
concerned that this might not be the highest and best use of the
property. Knudson noted that city administration officials had
informed him that the city had designated this property as the
future site of the city shop facility. In response to inquiries
from Hilton concerning other possible locations for the city
shop, Diener stated that a portion of the area adjacent to the
substation had been deeded to the borough for the school. In
addition, the property near the landfill was unsuitable because
water and sewer were not available and the property itself would
be difficult to develop.
Knudson stated that he had contacted various cruise
ship lines and they had expressed support for his plans.
Gieseler asked if Knudson had discussed this proposal
with Cary Marshall, another local prospective golf course
developer. Knudson stated that he had been unable to meet with
him prior to the meeting.
In response to a question from Gieseler, Gates stated
that, based on a conservative figure of $0.18 per square foot,
the property would lease for approximately $150,000 annually.
Schaefermeyer asked that the Council allow the administration
the opportunity to put together a memorandum setting forth the
advantages and disadvantages of the proposed developIrent before
the Council went on record with instructions to proceed with
lease negotiations. Gieseler stated that the Council would like
to see the administration meet with Knudson and attempt to ''work
something out" with him before corning back to the Council with a
recommendation.
B. LINNE BARDARSON and GERRY LORZ, representing
their Small Boat Harbor businesses (Bardarson' s Studio and House
of DiarrDnd Willow, respectively) asked Council's help in resolv-
ing an access problem they were having in the Boat Harbor.
Bardarson, speaking for both businesses, stated that he and Lorz
had each constructed businesses in the Boat Harbor this past
Spring. He stated that his wife had inquired about access to
the back of the lease site early on during negotiations and had
( C5E154944 1
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REGULAR HEETING - OCTOBER 24, 1988
VOLUME 23
been told by Administrative Assistant Martin that he would
pursue the matter of an access easement. However, it was later
detennined by Martin that an easement was not possible and he
suggested that Bardarson and Lorz pursue an agreement with the
owners of Quest Charters and Sailing, Inc., to access the back
of Lot 5 across their properties.
Bardarson distributed copies of correspondence and
photographs of the lease site. He stated that Quest Charters
has now installed posts to block access from the North. He
asked Council's help in obtaining the requested access.
In response to a question from O'Brien, Bardarson
stated that he had not inquired about "leasing" a right-of-way
corridor from Quest Charters or Sailing, Inc. Meehan suggested
the use of leverage with the lessees to the North since they
must utilize the Bardarson/Lorz lease site when bringing boats
into their lots.
Gieseler asked that the Council be kept informed of
the status of the Bardarson/Lorz attempts to gain access to
their properties.
C. LORI DRAPER and ANDY PATAPOFF, representing the
Seward Chamber of Commerce, asked Council support of the Cham-
ber's efforts to IIDve its offices and the Information Cache from
the downtown area to city-owned property located on Third Avenue
just north of Gateway Texaco. Draper stated that NBA would be
constructing a new facility this Spring and she had submitted a
proposal to the management conmittee that the bank donate the
currently-used IIDdular structure to the Chamber for use as
office space. Patapoff stated that a poll of Chanber m=rnbers
had indicated that IIDst m=rnbers favored IIDving the Infonnation
Cache, and of those voting to IIDve it, IIDst favored the request-
ed site. Draper noted that the present Infonnation Cache site
would probably be converted to a small park.
Schaefermeyer stated that he could not provide the
Chamber with a site until the Small Boat Harbor mapping was
corrq:>lete. He noted that the area in question was the site of
various underground utilities, adding that these must be taken
into account before detennining where either the offices or the
Cache could be located.
In response to a question from Hilton, Schaefermeyer
stated that the area under consideration is currently utilized
for boat storage, not parking. Responding to a question from
0' Brien, Patapoff stated that funds for IIDving the facilities
would come from grants, not the city.
O'Brien stated that he felt the Cache should remain in
its present location. He stated that the museum, scheduled to
IIDve to its new location directly across the street from the
Cache, would be an additional tourist draw which would bring
201
CITIZENS' DISC:
(Chamber of Com.
Reps. - Moving
Chamber offices)
(CSE154945 )
202
CIP/RESO:
PRISON/CON- 30Sj
RESO:
PAGE 202
REGULAR MEETING - ocroBER 24, 1988
VOLUME 23
people to that area. O'Brien added that he would like to see
several public hearings conducted before action was taken.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ADOPTING THE THREE-YEAR
CAPITAL BUDGET PLAN.
SIMUrIS MOVED TO APPROVE RESOLUTION NO. 88-117; THE
MarION WAS SECONDED BY HILTON.
Schaefermeyer noted that the work session revisions
had been incorporated. He stated that the administration would
come back to the Council for approval once a funding plan had
been developed.
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMOUS VO'IE OF THE COUNCIL.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING A PURCHASE
ORDER TO AIR TEK FOR EMERGENCY REl1EDIAL IDRK
AT THE PRISON.
HILTON MOVED TO APPROVE RESOLUTION NO. 88-118; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
3. DELETED
NOTE: The meeting was recessed at 9:40 p.m. and reconvened at
9:52 p.m.
XII. UNFINISHED BUSINESS:
None
( CSE 154946 1
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PAGE 203
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
XIII.
NEW BUSINESS:
A. SIMUrIS MOVED TO GRANT A CIAIM FOR DAMAGES
TOTALLING $320.51 AS FILED BY THCMAS M. BUCHANAN; THE MarION WAS
SECONDED BY 0' BRIEN.
Meehan noted that the Harbonnaster had reccmrended
that the Council deny the claim; however, he (Meehan) believed
that the city should assume responsibility for damage caused by
a city employee while IIDving private property. In response to a
question from Hilton, Singleton stated that Buchanan had not
been contacted prior to the time the boat was IIDved. Simutis
asked if this could be construed as "precedent-setting"; Royle
stated that, since each claim is considered on a case-by-case
basis, action in favor of the claimant would not set a prece-
dent.
THE QUESTION WAS CAlLED AND THE MlTION CARRIED BY
UNANIMlUS VOTE OF COUNCIL.
B. 0' BRIEN mVED TO AUTHORIZE THE CITY MANAGER TO
EXECU'IE THE PRISON ARBITRATION AGREEMENT WITH SAl-W-IAN AMERICA,
INC., AND THE STATE OF AIASKA; THE MOTION WAS SECONDED BY
SIMUrIS AND CARRIED UNANIMOUSLY.
C. GIESELER MOVED TO APPOINT IDRI DRAPER, ARNE HATCH
MID DAVID POPKEN TO THREE-YEAR TERMS ON THE CCM1UNITY HOSPITAL
BOARD; THE MOTION \.JAS SECONDED BY MEEHAN AND CARRIED UNANIMlUS-
LY.
D. 0' BRIEN MlVED TO ISSUE A lETTER OF NONOBJECTION
TO THE VACATION OF AIL EASF11ENTS AND PUBLIC ACCESSES AS SIrnN ON
THE SEWARD INDUSTRIAL PARK PIAT IN FAVOR OF NEW EASEMENTS AND
RIGHTS-OF -WAY IN THE MARINA SUBDIVISION, BIDCK 2, PIAT, WITH THE
VACATIONS TO BECCl1E EFFECTIVE UPON APPROVAL OF THE FINAL PLAT OF
BIDCK 2, MARINA SUBDIVISION; THE MarION HAS SECONDED BY HILTON.
In response to a question from O'Brien, Martin stated
that the final plat of Block 2, Marina Subdivision, was not yet
ready for presentation to Council. O'Brien objected to approv-
ing the vacation of easements and public accesses until Council
had a chance to review the new plat.
o I BRIEN MlVED TO POSTPONE ACTION ON THE PROPOSED
VACATIONS UNTIL NOVEMBER 7, 1988; THE MarION WAS SECONDED BY
SIMUrIS AND CARRIED UNANIMlUSLY.
E. 0' BRIEN MlVED TO ISSUE A lETTER OF ooNOBJECTION
TO THE VACATION OF A PORTION OF FIRST AVENUE BEn.JEEN BLOCKS 11
AND 12, AND A PORTION OF THE ALLEY AND EASEMENTS WITHIN BLOCK
11, IAUBNER ADDITION; THE MarION WAS SECONDED BY HILTON.
0' Brien asked if this had been before Council at an
earlier meeting. Martin stated that this had been reviewed by
20~
CLAIMS FOR DAMAGES:
(Buchanan Claim
APPROVED)
LITIGATION/PRISON:
(Prison Arbitra-
tion Agreement
Approved)
COMMUNITY HOSPITAL
BOARD: (Draper,
Hatch & Popken
Appointed)
ROW VACATIONS/
LAUBNER ADD:
(Daigle Vacations
Approved)
( CSE 154947 )
204
PAGE 204
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
the Planning Conmission and the Council previously, and noted
that there had been no changes since that review.
THE QUESTION WAS CAlLED AND THE MOTION CARRIED BY
UNANIMOUS VOTE OF COUNCIL.
XIV. CITY MANAGER REPORTS:
GATES stated that the Prison Industries Board had
voted to IIDve the Kenai Furniture Plant to the Spring Creek
Correctional Center. He then briefly updated the Council on the
status of major city projects.
XV. COUNCIL DISCUSSION:
O'BRIEN stated that he had received several complaints
about television reception (Channel 9 - Mt. Wolcott). Schaefer-
rneyer stated that KRXA! Radio now owns the translator and the
television license and is responsible for all maintenance of the
facility. 0' Brien asked the city manager to visit with the KRXA
Radio manager and suggest that something be done to improve the
signal.
0' BRIEN also asked Diener to explain some of the
infonnation contained in his "Contract Corrq:>letion Report"
(Consent Calendar Item No. 13). Diener stated that the Underwa-
ter/Swalling deleted work had been performed by Brown Con-
struction at a better price. O'Brien thanked Diener for the
report.
GIESELER thanked Yanez for his support in getting the
ROC Depot IIDnurnent built. He noted that the IIDnUllellt
commeIIDrated the transfer of the Alaska Railroad from the
federal govemnent to the state of Alaska.
GIESELER also asked about the status of the Kenai
Fjords Park sign which was to be placed at the "Y" . Martin
stated that the Park Service had ordered a sign some time ago,
but was required to request it through the federal prison
industries program. Park Service personnel had indicated that
they hoped to have the sign up by Spring.
GIESELER noted that ten to fifteen families of sawmill
employees would be IIDving into Seward next week.
In response to a question from Gieseler, Schaefermeyer
stated that the city is still working on acquiring funds to
extend the dock at SMIC.
XVI. CITIZENS' DISCUSSION:
GARY MARSHAlL, Woodland Hills Estates, Nash Road,
stated that he had talked to Knudson on Sunday concerning his
proposal to construct a golf course in Seward. He stated that
r C SE 154948 1
PAGE 205
REGULAR MEETING - OCTOBER 24, 1988
VOLUME 23
I
his research and conversations with golf course architects had
indicated that the bare minimum aIIDunt of property needed for a
9-hole course was thirty acres. He noted that the 18-acre site
would require fairways so narrow that IIDst golfers could not
keep the ball within the course. He also questioned the city's
liability if errant shots resulted in golf balls flying onto the
highway and into residential areas. Harshall stated that Seward
needs a golf course and expressed his desire to work with Mr.
Knudson in providing that course. He stated that he had asked
Knudson to work with him on his planned course adjacent to the
airport.
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCMMENTS:
None
XVIII.
ADJOURN1ENT :
The meeting was adjourned at 9:25 p.m., and, after a
short recess, the Council reconvened in executive session to
dt~;#s the prison arbitration agreement.
~.
1: ~h
. . Gies~/ ...4
Mayor
)
,
I" ,,\' ,
:0.', ~ S.
'''\ ' "f;;itY Cler~, ',". ,
:'c. . " '<~'r:~'~ .", .' '", j, .."
~~,\i), ~,,~'~~alf_.r:.
..... ,>> ..J- \., f,::::~/" r
PAGE 205
SPECIAL MEETING - OCTOBER 27, 1988
VOLUME 23
I. CALL TO ORDER:
The October 27, 1988, special meeting of the Seward
City Council was called to order at 12:12 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnember Sirnutis led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilrnembers Hil-
ton, Meehan and Simutis (Dunham and
Noll were absent; O'Brien was excused)
I
Present also: City Manager Royle, Deputy City Manager
205
( CSE154949 )
206
GATEWAY SUB/
CON- I /CON-
;2'1 ::>1 CON - ~tt
RESO:
(Approving
Agreements w/
Alliance Bank,
METCO/Trend JV,
& Hall Quality
Builders)
PAGE 206
SPECIAL MEETING - OCTOBER 27, 1988
VOLUME 23
Schaefermeyer, City Attorney Arvidson,
Administrative Assistant Martin, and
City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
:MEEHAN MlVED TO APPROVE THE SPECIAL MEETING AGENDA AS
PRESENl'ED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY.
V. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nor SCHEDULED FOR
PUBLIC HEARING:
None
VI. RESOLUTIONS:
A. Copies having been made available to the public,
Gieseler noted by title only a proposed resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, CONCERNING AGREEMENTS
WITH AlLIANCE BANK, METCO/TREND JV, AND HALL
QUALITY BUILDERS AS 'IHEY RElATE TO GATEWAY
SUBDIVISION.
HILTON MlVED TO APPROVE RESOLUTION NO. 88-119; THE
MOTION WAS SECONDED BY MEEHAN.
Arvidson noted that the city was reviewing final
docUllellts with Hall at this time and requested a short recess
until signed agreements were in hand.
RECESS: The meeting was recessed at 12:15 p.m. and reconvened
at 12:24 p.m.
Arvidson stated that signed agreements with both
METCO/Trend JV and Hall Quality Builders were on file. He
stated that the new agreements reflected the deletion of Lot 19,
Block 2, Gateway Subdivision, from the Hall agreement. In
addition, Hall intended to acquire the lots on which METCO/Trend
JV had not started construction.
Arvidson stated that the resolution included a pro-
vision to extend the Alliance Bank agreement through Decerrber
1988; however, if the city was able to close out all lots by
November 1, there would be no need to extend the Alliance Bank
agreement and the administration would not exercise the au-
thorized extension. However, if the lots could not close by
Novenber 1, the extension would be exercised. In response to a
question from Hilton, Arvidson stated that the agreement with
Alliance Bank would terminate on December 31, 1988, at the
latest, unless extended by vote of the CounciL
( CSE 154950 ]
'}.07
PAGE 207
SPECIAL MEETING - OCTOBER 27, 1988
VOLUME 23
I
THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP-
PROVED BY UNANIMlUS VOTE OF THE COUNCIL.
VII. COUNCIL DISCUSSION:
None
VIII.
CITIZENS' CCM1ENI'S:
None
IX.
COUNCIL AND ALMIN. RESPONSE TO CITIZENS' CCM1ENTS:
;~,-".i..<,' f
None
,<C ~.i: (.
}. x-. ., ..,1
:,.'~. .~':;,~.
ADJOURNMENT :
....1 "
J V,
1:' _ti-
, .' t,' .\L
\) . \. 'I~ ~:.-
.. ", "''.<f... ."
'~;"s,> <, ' , . ,:"'1 .. ,
'~"i'1'-,_ .
" ~~~. :?"J,.ty^'Clerk
III (City Seal)
The meeting was adjourned at 12:30 p.m.
~.
1: A ".4
Harry . GieS~
Mayor
----------------------------------------------------------------
PAGE 207
REGillAR MEETING - NOVEMBER 7, 1988
VOLUME 23
I. CAlL TO ORDER:
The Noverrber 7, 1988, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Hayor Harry E.
Gieseler.
II. OPENING CERFM)NY:
Councilrnember Meehan led the pledge of allegiance to
the flag.
III. ROIL CAlL:
Present were: Mayor Gieseler and Councilrnembers Dun-
ham, Meehan, Noll and SiIIlltis (Hilton
and 0' Brien were excused)
I
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Engineering & Utilities t1anager Diener,
Port Marketing Director Gates, Deputy
Finance Director Gifford, Administra-
tive Assistant Martin, Parks &
( C Sf 154951 )
208
PAGE 208
REGULAR MEETING - ooVEMBER 7, 1988
VOLUME 23
Recreation Director Yanez, Kenai
Peninsula Borough Assembly President
Sewall and City Clerk Murphy
IV. APPROVAL OF MINUTES:
SIMUrIS MlVED TO APPROVE THE OCTOBER 24 AND OCTOBER
27, 1988, MINUTES AS WRITTEN; THE MarrON WAS SECONDED BY MEEHAN
AND CARRIED UNANIMlUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
Noll requested the addition of proposed Resolution No.
88-122 to the regular meeting agenda.
MEEHAN MlVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MarION WAS SECONDED BY NOlL AND CARRIED UNANlMOUS-
LY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Sewall
reported on the November 1, 1988, Assenbl y meeting.
VII. CITIZENS' CCM1ENTS ON AGENDA ITINS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
Gieseler requested the addition of proposed Resolution
No. 88-121 to the Consent Calendar as Item No. 12.
SIMlITIS MOVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI-
MOusLy. The following actions were taken:
1. September 30, 1988, invoice from Baily and Mason
for legal services totalling $138.75 was approved for payment;
2. October 14, 1988, invoice from Wiley, Rein &
Fielding for legal services totalling $54.05 was approved for
payment;
C.ATTY:
C.ATTY:
ACCOUNTS PAYABLE:
Accounts
payment;
3. Novenber 1, 1988, Finance Department I s list of
Payable totalling $1,989,911.76 was approved for
CON- IL\:
4. One year extension of contract with the Seward
Phoenix Log for display advertising was approved;
(CSE15495Z 1
I
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PAGE 209
REGULAR MEETING - ooVEMBER 7, 1988
VOLUME 23
5. Resignation of Larry Johnson from the Seward
Advisory Planning and Zoning Comnission was accepted and the
Clerk was instructed to advertise the vacancy;
6. Revised Prison Project Budget was approved with
the exception that an additional aIIDunt of $50,000 to the
Project Management Reserve is contingent upon revision of the
Project Management Agreement between the city and Dar/PF;
7. Change Order No. 1 to the contract with Seward
Construction Services (Control House Addition for Substation) to
cover construction of a utiliduct beside the control house
addition, for an added contract aIIDunt of $2,240, was approved;
8. Change Order No. 7 to the Underwater/Swalling
Contract No. CON-2l8 (Ship Transfer System Civil Works & Util-
ities), providing a credit for various revisions in the elec-
trical power distribution system and lighting system necessitat-
ed to meet construction schedule and decreasing the contract by
$5 ,000, was noted for infonnation;
209
P&Z: (Resignation
of L. Johnson)
PRISON: (Revised
Budget Approved)
CON- 3og:
CON-218:
9. Change Order No. 4 to the Underwater/Swalling CON-228:
Contract No. CON-228 (Ship Transfer System Civil Work Expan-
sion), providing a credit for various revisions in the elec-
trical power distribution system and lighting system necessitat-
ed to meet construction schedule and decreasing the contract
aIIDunt by $15,000, was noted for infonnation;
10. October 28, 1988, contract corrq:>letion report as
submitted by Diener was noted for information;
11. Proclamation of the Mayor designating Noveni>er PROCLAMATION:
13-19, 1988, as AMERICAN EDUCATION WEEK was noted for informa-
tion; and
12. Resolution No. 88-121, urging the Governor to
appoint a resident of Seward to the Alaska Railroad Board, was
approved.
IX. PUBLIC HEARINGS:
None
X. PRESENTATIONS WITH PRIOR NOTICE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
ARR/RESO: (Urging
apptmt of Seward
resident to Brd)
( CSE154953 )
210
PUBLIC WORKS/
INSURANCE/RESO:
(Repair of Lift
Station No.3;
approval of
general re-
lease in ex-
change for
pymt of damages)
INT.PEACE CONF/
RESO:
PAGE 210
REGULAR MEETING - NOVEMBER 7, 1988
VOLUME 23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, ENACTING A REORGANIZED
CODIFICATION OF THE ORDINANCES OF THE CITY
OF SEWARD.
SIMUrIS MlVED TO INTRODUCE PROPOSED ORDINANCE 00. 610;
THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMlUSLY.
(Public hearing was scheduled for Novenber 28, 1988. Murphy
noted that Joanne Yerkes would be present at that meeting to
make a short presentation and answer any questions the Council
might have.)
B. Ordinances for Public Hearing and Enactment:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AlASKA, APPROPRIATING FUNDS FOR
REPAIR AND REPIACEMENT OF EQUIPMENT AT
SEWAGE LIFT STATION NO. 3 AND APPROVING A
GENERAL RELEASE TO AlASKA NATIONAL INSURANCE
COMPANY DISCHARGING AIL ClAIMS AGAINST
COASTAL, INC., IN CONNECTION WITH DAMAGE TO
SAID LIFT.
MEEHAN MlVED TO APPROVE RESOLUTION 00. 88-120; THE
MOTION WAS SECONDED BY SIMUrIS.
In response to a question from Meehan, Diener stated
that the $41, 807.98 Which would be received from the insurance
corrq:>any 'WOuld replace rruch of the equipment, repair other
damaged equipment and return the lift station to its former
condition; however, it would not allow the city to do everything
it would like. He added that all new equipment would be under
warranty and the facility should be in "good shape".
THE QUESTION WAS CAlLED AND THE MarION CARRIED BY
UNANIMlUS VOTE OF THE COUNCIL.
2. Copies having been made available to the
public and distributed to the Council prior to the start of the
regular meeting, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AlASKA, URGING THE STATE OF
AIASKA TO OFFER ITSELF AS THE SITE OF A
CONFERENCE FOR PEACE IN NORTHEAST ASIA.
( C Sf 154q54 )
I
I
I
PAGE 211
REGULAR MEETING - NOVEMBER 7, 1988
VOLUME 23
NOIL MOVED TO APPROVE RESOLUTION NO. 88-122; THE
MOTION WAS SECONDED BY SIMUrIS.
Noll stated that the Republic of Korea is still trying
to reach some sort of peaceful agreement with North Korea, and,
in an effort to further this cause, President Roh Tae Woo had
called for a conference for peace in Northeast Asia to include
representatives of both North and South Korea, Japan, the
People's Republic of China, the Union of Soviet Socialist
Republics and the United States. Noll said that, after hearing
of the proposed conference, he (Noll) had approached Alaska
Office of International Trade Director Bob Poe and suggested
that Alaska host the treaty session. Poe had passed this
suggestion on to the Governor, and Cowper had, on October 29,
1988, announced that the state of Alaska would propose to be the
site of the conference. Noll urged the Council to approve this
resolution in support of the conference.
THE QUESTION WAS CAlLED AND THE MlTION CARRIED UNANI-
MOUSLY.
XII. UNFINISHED BUSINESS:
A. Murphy noted that the following IIDtion was on the
floor (postponed from the October 24, 1988, meeting):
0' BRIEN MlVED TO ISSUE A LETTER OF
NOooBJECTION TO THE VACATION OF All. EASE-
MENTS AND PUBLIC ACCESSES AS SHOON ON THE
SEWARD INDUSTRIAL PARK PIAT IN FAVOR OF NEW
EASEMENI'S AND RIGHTS-OF -WAY IN THE MARINA
SUBDIVISION, BlDCK 2 PIAT, WITH THE VA-
CATIONS TO BECCNE EFFECTIVE UPON APPROVAL OF
THE FINAL PIAT OF BLOCK 2, MARINA SUBDIVI-
SION; THE MOTION WAS SECONDED BY HILTON.
Diener noted that all needed easements and rights-of-
way were now in place as shown on the copy of the plat which had
been distributed to the Council just prior to the meeting.
THE QUESTION WAS CAlLED AND THE MOTION CARRIED WITH
FOUR "YES" VOTES AND MEEHAN ABSTAINING. (Meehan is employed by
Seward Fisheries, Inc., lessee of the subj ect property.)
XIII.
NEW BUSINESS:
A. GIESEIER NCMINATED SHARON ANDERSON, RHONDA
ANDERSON-HUBBARD AND JAMIE ROSE TO FIIL THE THREE VACANT SEATS
ON THE TRADE AND CCM1ERCE ADVISORY BOARD; THEY WERE APPOINl'ED TO
THE THREE-YEAR TERMS WITHOUT OBJECTION FRCM THE COUNCIL.
B. SIMUrIS MOVED TO APPROVE THE COlLATERAL ASSIGN-
MENT OF JAMES PRUITT'S LEASE INTEREST IN CITY PROPERTY LOCATED
WITHIN TRACT A, ooRTH HARBOR SUBDIVISION, AND KNOON AS LEASE 00.
RE-043, TO KEY BANK; THE MarION WAS SECONDED BY NOIL.
?,'1
ROW VACATIONS/
SEWARD IND. PARK/
MARINA SUB:
TRADE BOARD:
(Appointments)
RE-043:
( CSE154955 1
212
PAGE 212
REGULAR MEETING - ooVEMBER 7, 1988
VOLUME 23
In response to a question from Gieseler, Schaefermeyer
stated that this property was the site of the Gateway Texaco
station. Arvidson noted that the city's IIDre recent lease
agreements contain a clause allowing the collateral assignment
of lease interest in order to secure financing; however, this
was an earlier lease and did not contain that provision.
Responding to a question from Noll, Arvidson stated that, should
the bank foreclose and acquire Pruitt's lease rights, the Bank
would be required to operate the existing facility as outlined
in the lease docurrent.
THE QUESTION WAS CAlLED AND THE MlTION CARRIED BY
UNANIMOUS VOTE OF THE COUNCIL.
XIV. CITY MANAGER REPORTS:
ROYlE invited the Council to tour the new Senior/Com-
nnity Center on Tuesday at 1:30 p.m.
ROYlE also asked the Council to schedule a YJOrk
session to discuss future city plans for the land on -which
Knudson has proposed to construct a golf course and to discuss
capital priorities for legislative funding. Gieseler instructed
the Clerk to schedule a work session for Thursday, November 10,
begirming at 7:00 p.m.
XV. COUNCIL DISCUSSION:
DUNHAM asked the administration to do something about
the litter problem along the Seward Highway caused by debris
blowing from the Foodrnart property. She stated that the mess
that had been created was a terrible eyesore, and urged the city
to force Foodrnart to clean it up.
MEEHAN corrq:>limented Diener for the contract corrq:>letion
report, noting the four proj ects -which had been corrq:>leted under
budget with no claims.
NOIL thanked the Clerk's Department for providing
in-home voting for those unable to come to the polls on Election
Day.
GIESELER concurred with Dunham that the highway was a
"mess" . He stated that the owner of the Tesoro station had
corrq:>lained to Foodrnart, Carr-Gottstein and the city, but nothing
had been done. He instructed Royle to write a letter to Food-
mart stating that the city will not tolerate littering and
adding that another warning would result in a citation for
littering.
GIESELER stated that, following the recent recall
effort, the Council had asked that the administration provide a
letter of explanation of utility charges to local consUllers
explaining each line item on the city's electric bills. He
( CSE15495b 1
I
I
I
213
PAGE 213
REGULAR MEETING - ooVEMBER 7, 1988
VOLUME 23
asked for a status report on that letter. Royle stated that he
had acquired a copy of a similar fonn from Chugach Electric
Association and had instructed Finance Director Peirson to
create one for the city. Gieseler asked that the letter be
mailed to each utility customer upon completion and that copies
of it be made available for the public at the city utility
window .
GIESELER displayed a sign which Kevin Towsley had
purchased at the recent Ducks Unlimited auction and had donated
to the city to be placed adjacent to the Benny Benson Me1mrial
at the Lagoon. He thanked Towsley for his donation. Gieseler
also noted that Bill Alloway had donated fifty pounds of feed
and Vice Mayor Meehan had donated one ton of feed for the ducks
and geese that make their home in the Lagoon year-round.
GIESELER noted that his annual letter to the citizens
of Seward had appeared in the IIDst recent issue of the Phoenix
rg. He reminded everyone to support the local hospital and
ocal businesses throughout the Winter.
Finally, GIESELER reminded everyone to vote on Tues-
day.
XVI. CITIZENS' DISCUSSION:
None
XVII.
COUNCIL AND ALMIN. RESPONSE TO CITIZENS I CCM1ENl'S:
None
XVIII.
ADJOURNMENI' :
The meeting was adj ourned at 8: 19 p. m.
~ .
tt. .4
rry . Gies;5jf... -'....
Mayor
(Ci~1~:t).. i'~~<" -
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r CSE154957 )
214
PERSONNEL: Plaque
presented to
Schaefermeyer
PAGE 214
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
I. CAlL TO ORDER:
The Novenber 28, 1988, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnernber Noll led the pledge of allegiance to the
flag.
III. ROLL CALL:
Present were: Mayor Gieseler and CouncilnErnbers Dun-
ham, Hilton, Meehan, Noll, O'Brien and
SiIIlltis
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
HTGP&B Legal Assistant Yerkes, Port
Marketing Director Gates, Engineering
and Utilities Manager Diener, Adminis-
trative Assistant Martin, Finance
Director Peirson, Deputy Finance
Director Gifford, Parks and Recreation
Director Yanez, Hospital Administrator
Campbell and City Clerk Murphy
SPECIAL ITEMS:
A. Gieseler welcc:xrv=d former Seward City Clerk
Yerkes, now Legal Assistant for HTGP&B.
B. Gieseler presented a plaque to Schaefermeyer in
recognition of his outstanding service to the city as Interim
City Manager from January 1 - September 30, 1988.
IV. APPROVAL OF MINUTES:
SIMUrIS MOVED TO APPROVE THE NOVEMBER 7, 1988, MINUTES
AS WRITIEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
O'Brien stated that the Hospital Board had requested
that New Business Item No. "H" (Request for work session) be
withdrawn at this time.
HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS
AMENDED; THE MarION \vAS SECONDED BY SIMUrIS AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
(CSE154956 1
I
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I
PAGE 215
REGUlAR MEETING - ooVEMBER 28, 1988
VOLUME 23
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the November 15, 1988, Assembly
meeting.
VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
Royle requested the addition of Consent Calendar Item
No. "8" (Request for administrative correction of lease error).
In response to a question from Dunham concerning Item
No. "6", Martin stated that the proposers did not plan to
construct a building on the proposed lease site. He added that
he was seeking permission to begin lease negotiations only and
noted that this would come back to Council for public hearing
and action at a later date.
AMENDED ;
MOUSLY.
MEEHAN MJVED TO APPROVE THE CONSENT CALENDAR AS
THE MarION \VAS SECONDED BY HILTON AND CARRIED UNANI-
The following actions were taken:
?1S
1. Resolution No. 88-123, adopting the results of CENSUS/RESO:
the 1987 Kenai Peninsula Borough Special Census and setting the
population of the city of Seward, was approved;
2. Resolution No. 88-124, authorizing the purchase
of sewage grinders for the Spring Creek Correctional Center
without full utilization of city bid procedures, was approved;
3. Resolution No. 88-125, concerning the construc-
tion and paving of Cottonwood Avenue, was approved;
4. November 1, 1988, invoice from Wohlforth, Flint &
Gruening for legal services totalling $477.13 was approved for
payment;
Accounts
payment;
5. Noverrber 16, 1988, Finance Department's list of
Payable totalling $1,387,885.16 was approved for
PRISON/PURCHASING/
RESO:
STREETS/RESO:
C.ATTY:
ACCTS. PAYABLE:
6. Novenber 21, 1988, memorandum from Martin re- MARINA SUB:
questing Council consent to proceed with lease negotiations with
Lee Gordanier and Tanya Sandefur, dba Four Seasons Boat Ser-
vices, for Lot 1, Block 2, Marina Subdivision, was approved;
7. Novenber 22, 1988, memorandum from Murphy recorn- C. COUNCIL:
mending cancellation of the December 26, 1988, Council meeting
was approved; and
[ CSE154959 1
216
RE-018:
PUBLIC HEARINGS:
(Gateway Sub.
disposal to
Alliance Bnk)
CITY CODE/ORD:
(Reorganization
of Code)
PAGE 216
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
8. November 21, 1988, rnenDrandum from Martin re-
questing authorization to proceed with an administrative correc-
tion to RE-018 (Alaska Marine Highway System lease of Ferry
Depot and Dock) by refunding $23,725 was approved.
IX. PUBLIC HEARINGS:
Notice of Public Hearing as posted and published as
required by law regarding the disposal of all city-awned lands
located within the Gateway Subdivision to Alliance Bank in
consideration of the termination of the city/Alliance Bank
Option Agreement dated May 5, 1988, 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 ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ENAcrING A REORGANIZED
CODIFICATION OF THE ORDINANCES OF THE CITY
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 was
closed.
HILTON MlVED TO ENAcr ORDINANCE NO. 610; THE MlTION
WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
C. Resolutions:
GATEWAY SUB/DEEDS/ 1. Copies having been made available to the
RESO: (Disposal public, Gieseler noted by title only a proposed resolution
to Alliance Bnk) entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING THE DISPOSAL
OF CITY -CMNED LAND WITHIN GATEWAY SUBDIVI-
sION TO ALLIANCE BANK IN CONSIDERATION OF
THE TERMINATION OF THE CITY/ALLIANCE BANK
OPTION AGREEMENT OF MAY 5, 1988.
r CSE154960 1
I
I
I
217
PAGE 217
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 88-126; THE
MOTION WAS SECONDED BY DUNHAM.
In response to a question from 0' Brien, Schaefermeyer
stated that approval of this resolution was the final step to
end the city's relationship with Alliance Bank.
Noll expressed an objection to a portion of the sixth
''Whereas'' clause in the resolution, stating that there was a
potential for long tenn benefit to the conm.mity. Schaefermeyer
stated that this clause referred to the city's inability to
recoup its investment in the short tenn and did not mean to
reflect longer range goals which would be achieved through the
develo~nt of the subdivision.
NOIL MOVED TO AMEND THE RESOLUTION BY DELETING THE
PHRASE "AND DOES Nar SEE ANY POTENrIAL FOR DIRECTLY RECOUPING
ITS PAST INVES'lMENr OVER THE NEAR TO MID TERM' FRCM THE SIXTH
"WHEREAS" CLAUSE; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANlliOUSLY.
THE QUESTION WAS CALLED ON TIlE MAIN MarION AND RESOLU-
TION NO. 88-126 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to the CIP/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, ADOPTING THE FISCAL YEAR
1989 CAPITAL IMPRO\TEl1ENT PROJECTS PRIORITY
LIST FOR THE 1989 LEGISIATIVE SESSION.
MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-127; THE
MarION WAS SECONDED BY NOIL AND CARRIED UNANIMOUSLY.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
CIP/RESO:
A RESOLUTION OF TIlE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING A F1JNDING
PLAN FOR THE CITY'S FISCAL YEAR 1989 CAPITAL
PROJECTS IDENTIFIED IN THE CITY' S THREE-YEAR
CAPITAL PLAN.
SIMUrIS MJVED TO APPROVE RESOLUTION NO. 88-128; THE
MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
t CSE154Q61 1
218
PAGE 218
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
CAMPGROUNDS/RESO:
(Auth. city mngmt.
of public camp-
grounds, setting
new fees, & ap-
propriating funds)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AUTHORIZING CITY MANAGE-
MENT OF PUBLIC CAMPGROUNDS, SITTING CAMPER
FEES, AND APPROPRIATING FUNDS FOR PREPARA-
TION FOR THE 1989 CAMPER SEASON.
HILTON MOVED TO APPROVE RESOLUTION NO. 88-129; THE
MarION WAS SECONDED BY SIMUrIS.
Gieseler asked why the administration was requesting a
$0.75 per night increase in camper fees when other carmmities
are lowering prices. Royle noted that raising the rates would
allow the city to make needed improvements in the city's
campgrounds. He stated that the public campgrounds were aIIDng
the city's most attractive recreational assets and could provide
revenues to enhance recreation throughout the city. Yanez
stated that the $5.00 fee included sales tax. In response to a
question from O'Brien, Royle stated that the city could not
legally dedicate these revenues to Parks and Recreation, but the
city had traditionally directed funds earned by that department
towards maintenance and expansion of the department's programs.
Meehan stated that Yanez had done a good job of
putting together his proposal to internally administer public
campgrounds. He noted, however, that when the city administered
this program in the past it was not very attractive. He ex-
pressed concern that the city was contemplating "taking over",
without benefit of public hearing, after the private sector had
made the program profitable.
Simutis stated that she appreciated Meehan's comments,
but disagreed with his conclusions. She stated that earlier
poor management by the city had resulted in turning over camper
park operation to a private contractor. However, that was no
reason to deny the current administration the opportunity to
operate the parks. She stated that public input was not needed
prior to .making a decision to manage a resource that is already
owned by the city.
Hilton concurred, stating that collection of
campground fees had passed from the private sector to the city
in the past without benefit of public hearing. He stated that
recent private sector management of the campgrounds had been an
experiment and had been undertaken before the city realized the
revenue potential of the program. He noted that the city had
invested public funds in the past few years in improving the
campgrounds and he felt it appropriate to return management of
the campgrounds to the city at this time.
Dunham stated that Yanez would be able to provide the
Chanber of Commerce with IIDre useful infonnation than was
supplied by the private contractor. She also commended Yanez on
his plans to market the campgrounds. She stated that she
favored city management of the campgrounds.
( CSEl5496l 1
I
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PAGE 219
REGULAR MEETING - NOVENBER 28, 1988
VOLUME 23
Hilton noted that the city was ultimately responsible
for the campgrounds no matter who managed their operation, and
with city management the administration and council vvould have
IIDre control.
Meehan stated that he was not opposed to city manage-
ment of the campgrounds, but felt a public hearing should be
held first.
THE QUESTION WAS CAlLED AND RESOLUTION NO. 88-129 WAS
APPROVED WIlli SIX "YES" VOTES AND MEEHAN VarING ''NO''.
Gieseler asked Yanez to provide him with the dates
that caravans would be arriving in Seward this camper season so
that he could personally welcome them to town.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
A. Gieseler noted that the Clerk had advertised a
vacancy on the Planning Comnission and had received only one
application. Shortly prior to the meeting, the Clerk had
received a memorandum from the Building Inspector stating that
the applicant, Lee Gordanier, was not a resident of the city,
but resided on Resurrection Road. Therefore, he would not be
eligible to serve on the Corrrnission. The Mayor instructed the
Clerk to readvertise the position. MUrphy requested permission
to advertise the vacancy in January when other seats created by
the expiration of terms would occur; the Council concurred.
B. SIMUrIS MOVED TO PAY THE CLAIM FOR DAMAGES
TOTALLING $567.74 AS FILED BY MARGARET DECK; THE MarION WAS
SECONDED BY HILTON AND CARRIED BY UNANIMOUS VOTE OF COUNCIL.
(Damage to Deck's appliances had been caused by negligence of
the city electric crew.)
C. 0' BRIEN MlVED TO AUTHORIZE THE CITY MANAGER TO
EXECUTE A SEITLEMENT AGREEMENT IN THE CAVANAUGH CASE; THE t<m'ION
WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
D. oou. MlVED TO AUTHORIZE THE CITY MANAGER TO AWARD
A CONTRACT TO SEWARD CONSTRUCTION SERVICES TO DESIGN AND BUILD
TWO 8' X 10' BUILDINGS FOR A PRICE Nar TO EXCEED $6,994.00, WIlli
A PROJECT CONTINGENCY OF $700.00, FOR A TOTAL PROJECT BUDGET OF
$7,694.00; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI-
MOUSLY.
E. MEEHAN MOVED TO AUTHORIZE 'mE CITY MANAGER TO
AWARD CONTRACTS Nar TO EXCEED $5,000.00 EACH TO MEI'CO, INC., AND
AFOGNAK LOGGING, TO PROVIDE SNCM REMOVAL AND SANDING SERVICES
?19
P& z : (Gordanier
application not
accepted - Clerk
to readvertise)
CLAIMS FOR DAMAGES:
(Deck claim PAID)
I
LITIGATIONS: I
(Cavanaugh sttlmt
agrmt approved)
PRSION/CON- 312-:
(Sewer utility
instrument shel-
ters)
STREETS/CON- 311
(Snow removal
contracts)
(CSE154963 )
220
DOCKS & HARBORS/
PERSONNEL:
(Approval of
Port Marketing
Director Pos.)
PAGE 220
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
FOR THE CITY; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMlUSLY.
F. SIMUrIS MOVED TO AUTHORIZE THE CITY MANAGER TO
HIRE CHRIS GATES AS THE PORT DIRECTOR FOR THE CITY OF SEWARD;
THE MOTION WAS SECONDED BY 0' BRIEN.
GIESELER MJVED TO AMEND THE MOTION BY CHANGING SALARY
TO $52,000 ANNUALLY; CHANGING THE JOB TITLE TO "PORT MARKETING
DIRECTOR"; CHANGING THE DATE FOR GATES' MOVE TO SEWARD TO JULY
1, 1988; AND DELETING SECTION FIVE IN THE MEMORANDUM (REFERENCES
TO BONUSES); THE MOTION WAS SECONDED BY MEEHAN.
Royle stated that $52,000 was the salary Gates was
currently paid and recommended that, in recognition of the fact
that he has been responsible for many important developments in
the city, a step up in pay was proper. He also stated that
Gates felt it important that his title put him on an equal
footing with other Port Directors on the West Coast. Royle
noted that, while Gates' main focus would be on marketing SMIC,
the title "Port Director" would lend him IIDre credence in his
dealings with those outside the city.
In response to a question from O'Brien, Royle stated
that a job description outlining Gates' duties would be prepared
after approval of the position was given by the Council.
O'Brien objected to acting on the position until the Council was
presented with a job description, stating that he wanted to be
certain that Gates' position would not conflict with the Harbor-
master's.
Dunham stated that she was annoyed once again that she
had to learn about a request for Council action from someone
other than the administration. She noted that the Council
should have received at least a rnerOC>randum concerning the
proposal before it became public knowledge. Gieseler stated
that he would assUlle some of the responsibility for Dunham's
corrq:>laint since he had been discussing this issue with the
administration for several rmnths and had informed several
CouncilIIEI1hers himself. He apologized to Dunham and any other
members of Council who were not kept informed.
In addition, Gieseler stated that he was pleased with
Gates' performance under his contract with the city; however, he
did not agree to a salary increase at this time.
Noll asked if Gates' would continue to receive up to
$500 per month for expenses during his stays in Seward until he
and his family have relocated. Royle stated that sufficient
funds had been budgeted to make this possible.
Dunham stated that, if Gates became a regular city
employee, he would receive certain benefits such as retirement
and health insurance which would, in itself, be a "raise".
( CSE154964 1
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PAGE 221
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
Schaefermeyer noted that Gates receives full benefits under the
terms of his existing contract. Noll stated that he would still
prefer to discuss increased salary at budget time, not before.
O'Brien asked if the position was really needed on a
fulltime basis. He stated that he had thought the position was
created to fill a special need at the time and was not envi-
sioned to be a pennanent position. SiI!lltis stated that the need
for Gates' services still existed, and would continue to exist
as the facility (SMIC) grows.
Hilton stated that he would like to know precisely
what Gates' job would be. He noted that the Council was very
IIRlCh aware of what Gates had done in the past, but Council
should be allowed to review a job description before being asked
to act on approving a new position. He stated that his concern
did not reflect on Gates or his perfonnance, but with the
process, adding that Council should not be asked to approve new
positions without a clear understanding of exactly what was
being approved. Hilton stated that the city had been criticized
in the past for "bureaucracy building", and actions such as this
one could engender like criticism from the public.
SiI!lltis stated that the memorandum from Gates listed
the details of the position and contained enough information for
Council to make a decision. Meehan concurred with Simutis.
Dunham stated that she agreed with Hilton and 0' Brien
that the Council should be approving a job description outlining
specific duties.
Noll stated that it was clear to him that Gates and
the Harbormaster would have completely separate responsibilities
and he was prepared to IIDve forward on this request for approval
at this time. He stated that Gates had made a vital contribu-
tion to the cOlIlIllIDity by increasing the city's tax base and
employment opportunities.
O'Brien asked if it was imperative that Council act
immediately. Royle noted that Gates' contract expired December
7. O'Brien stated that he could see no reason to rush into
anything and suggested that, if Gates had no objection, his
contract be extended until the Council had a chance to review
and approve his job description.
Gieseler stated that he had discussed this proposed
action with various members of the Council and could see no
reason why the Council could not act immediately on the request.
He objected to the Council attacking an individual, adding that
if the Council agreed that Gates has been doing a good job, the
Council should IIDve forward with the Manager's plan.
Hilton stated again that his objection did not consti-
tute a personal attack and noted that he was in favor of hiring
( CSE154965 1
222
PURCHASING/CITY
EQUIPMENT:
(C.Manager to
hire consul-
tant to assess
city's comput-
er needs)
PAGE 222
REGULAR MEETING - ooVEMBER 28, 1988
VOLUME 23
Gates. He reiterated that his problem was with the procedure
and he objected once again to approving the position without
first reviewing and approving the job description. He also
objected to setting a precedent for future actions.
0' BRIEN MOVED TO POSTPONE ACfION ON THE MarrON UNl'IL
THE DECEMBER 12, 1988, MEETING; THE MOTION WAS SECONDED BY
DUNHAM.
Gieseler asked for a ruling on which IIDtion had
precedence - the IIDtion to amend or the IIDtion to postpone.
Arvidson and Murphy asked for a short recess to research the
question.
RECESS: The meeting was recessed at 9:10 p.m. and reconvened at
9: 17 p.m.
Murphy stated that the IIDtion to postpone had prece-
dence and noted that, if the IIDtion to postpone was approved,
the Council would vote on the amendrrent at the next meeting.
THE QUESTION WAS CAlLED ON THE MarION TO POSTPONE AND
THE MlTION FAILED WITH FIVE "NO" V01ES AND DUNHAM AND 0' BRIEN
VarING "YES".
THE QUESTION WAS CAlLED ON THE AMENIMENT AND THE
MarION WAS APPROVED BY UNANIMlUS VOTE OF THE COUNCIL.
HILTON MlVED TO POSTPONE ACfION UNTIL THE FIRST
MEETING IN DECEMBER F'OILCMING REVIEW AND APPROVAL OF A JOB DE-
SCRIPTION FOR THE POSITION; THE M)TION WAS SECONDED BY DUNHAM
AND FAILED WITH FOUR "NO" VOTES AND DUNHAM, HILTON AND 0' BRIEN
VOTING "YES".
THE QUESTION WAS CAlLED ON THE MAIN MlTION AND THE
MarION CARRIED WITH SIX "YES" VOTES AND DUNHAM VarING "NO".
G. SIMUrIS MlVED TO FOLLCM THE RECCM1ENDATIONS OF
THE CITY MANAGER CONCERNING THE CITY'S COMPUTER NEEDS; THE
MarION WAS SECONDED BY oolL.
Hilton stated that he was concerned to learn that
after the lengthy process followed by Peirson that the city was
not closer to correcting the deficiencies in the financial
reporting system. In response to his (Hilton's) question
concerning new time lines, Royle stated that if Council followed
his recommendation, it would be six to nine rmnths before a new
system was in place.
Hilton inquired about the projected cost for an
assessment of the city's corrq:>Uter needs (as requested by Royle).
He also asked if the city's auditors \oKmld have a conflict in
recommending a system, expressing his concern that they (the
auditors) would select a system which would "dovetail" their
audit system and effectively lock the city into one auditor.
r C SE 154q66 )
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PAGE 223
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
Hilton stated that he felt Peirson had thoroughly researched
what was on the market and added that he did not feel Price
Waterhouse could do a better job.
Meehan stated that he, too, was aware of the aIIDunt of
work which Peirson had put into his search for a new corrq:>uter
system. Meehan stated that he had contacted some corrq:>uter
people employed by Icicle and had been told that Digital pro-
duced a great system. He also noted that Digital had agreed to
sign an agreement guaranteeing that the city's PC's would be
able to network within its system. Meehan stated that Depart-
ment Heads should have been contacted before a system was
selected, but he noted that the city manager could get the
necessary infonnation from the different departments without
contracting with someone like Price Waterhouse, and the RFP
could be prepared in-house.
Simutis stated that she was unable to comment on the
work Peirson had done since she did not receive it until just
prior to the meeting and had not finished reading it. She
suggested that the Council postpone action until the next
meeting.
O'Brien stated that he ordinarily did not favor
expensive studies, but this was one exception. He stated that
he was not willing to buy a computer system until an experienced
consultant reviewed the city's needs and made a recommendation.
O'Brien noted, however, that the consultant's review need not
extend the process for five or six IIDnths. He suggested that
several firms be contacted and that the City t1anager contract
with one of them to review the city's needs and get back to the
Council at the next meeting with a recommendation. Noll and
Dunham concurred.
Gieseler stated that his concern with Peirson's
recommendation was that he had looked at only the financial and
accounting needs of the city and not the city as a whole. He
stated that the system should meet the needs of all departments
of the city. However, he stated that he did not want to wait
six to nine rmnths to get a new system installed.
Schaefermeyer stated that the city had already made a
substantial investment in PC's for key city departments. He
noted that whatever system the city recommended would have the
capacity of networking with the city's existing PC's, but the
primary function of the minicorrq:>uter was to take care of the
city's financial and accounting needs.
Gieseler suggested that the city lease the new comput-
er rather than buy it.
t-DUSLY.
ment if
THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANI-
Royle was instructed to proceed with the needs assess-
it could be done within his $5,000 limit; otherwise, he
( CSE154967 1
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PAGE 224
REGULAR MEETING - NOVEMBER 28, 1988
VOLUME 23
was to come back to Council at the next meeting for an appro-
priation for the assessment.
H. Deleted
XIV. CITY MANAGER REPORTS:
ROYLE complimented Yanez on the Winter Recreation
Schedule which was just released. He also reported that he had
received nine applications as a result of his nationwide search
for a Finance Director. One applicant had withdrawn, and of the
remaining eight, three would be explored further.
XV. COUNCIL DISCUSSION:
O'BRIEN stated that the Community Hospital Board was
now taking a IIDre aggressive approach to its financial problems
and was in the middle of working on those problems at this time.
He added that he and the city manager were working on an ex-
pedited financial reporting process for the hospital.
DUNHAM stated that she did not want to be asked in the
future to vote on an issue for which she was not prepared and
had not been made a part of the decision making process. She
stated that she expected the administration, mayor and council
to work together to keep each other informed.
HILTON asked when Peirson would be leaving. Royle
stated that Peirson had agreed to stay until a replacement was
found or until he found other employment.
HILTON also concurred with Dunham, noting that it was
important that the entire Council be kept informed about what
the administration was doing.
GIESELER stated that the Downtown Block Party had been
a success. He noted that Kent Dawson would be in town on
December 3-4. Gieseler asked Royle to prepare a job description
for Gates and distribute it to Council prior to the next Council
meeting. Finally, Gieseler appointed Dunham as the Council's
Representative on an Ad Hoc Carrmittee to meet with the Superin-
tendent at Spring Creek Correctional Center to address any
concerns prison officials might have. He asked Dunham to
request a representative from the Landlord's Association and one
from the Chamber of Conmerce to serve with her.
XVI. CITIZENS' DISCUSSION:
None
XVII.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' COMMENTS:
None
( CSE154968 1
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;......
\.:
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-'- .j\.,
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PAGE 225
REGUIAR MEETING - ooVEMBER 28, 1988
VOLUME 23
XVIII .
ADJOURNMENI' :
The meeting was adjourned at 10:03 p.m.
.(
~L- ~~A64
Harry . Gieseler
Mayor
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-~~.---- - - - -- - - - - - -- - - - - - -- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - --
'. PAGE 225 SPECIAL MEETING - DECEMBER 5, 1988 VOLUME 23
I. CAIL TO ORDER:
The December 5, 1988, special meeting of the Seward
City Council was called to order at 12:12 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnernber Sirnutis led the pledge of allegiance to
the flag.
III. ROLL CAIL:
Present were: Mayor Gieseler and Councilrnernbers Hil-
ton, Meehan, Noll and Simutis (Dunham
was excused and O'Brien arrived at
12:18 p.m.)
Present also: City Manager Royle; Deputy City Manager
Schaefermeyer; City Attorneys Arvidson,
Hughes and Lucas; Administrative
Assistant Martin, Chief of Police
Bencardino and City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
SIMUrIS MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS
PRESENrED; THE MarION \.JAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY.
V. NEW BUSINESS:
A. Royle stated that Fred Arvidson was no longer
associated with the legal finn of Hughes, Thorsness, Gantz,
Powell and Brundin, but was now employed by the finn of Perkins
Coie. He noted Murphy's December 4, 1988, memorandum recommend-
ing that Council retain Fred Arvidson as the city's interim city
225
C.ATTY: City
legal services
transferred to
F. Arvidson &
Perkins Coie)
(CSE154969 1
PAGE 226
SPECIAL MEETING - DECEMBER 5, 1988
Vffi.UME 23
attorney in order to assure continuity of legal services for the
city. Royle stated that he would support Murphy's reccmnenda-
tion.
MARY HUGHES, representing Hughes, Thorsness, Gantz,
Powell and Brundin, stated that she had reviewed Murphy's
meIIDrandum and agreed that the Council should provide for
continuity of legal services, but felt that leaving the city's
files with HTGP&B, during the interim until Council decided on a
longer-tenn solution, would provide for a slIDOther transition.
Hughes also took exception to Murphy's statement that HTGP&B had
failed to provide a transition period. She stated that Arvid-
son's inmediate departure from the finn had been a IIlltual
decision; she added that the finn would not leave the city "in
the lurch", but would make every effort to see that nothing
"fell through the crack" during this interim period. Hughes
stated that the finn would offer her services to the city as its
primary contact, at least during the interim. Hughes warned
that, should the city terminate its relationship with HTGP&B,
the firm's ethical responsibilities to the city would terminate
at that time.
Gieseler stated that, if the city was considered by
HTGP&B to be a valued customer, one of the "major" partners
should have contacted the Mayor and Council when Arvidson
resigned. Hughes responded that all partners are on an equal
footing within the finn, and it had been decided that those
attorneys who had worked IIDSt closely with the city should be
the ones to contact the Council.
Noll asked for an explanation of "ethical consid-
erations" . Hughes stated that this meant simply that the finn
would have no further duty to serve the client (city) once the
files were rmved from the offices. In response to a further
question from Noll, Hughes stated that HTGP&B would not be at
liberty to represent clients in legal action against the city
since its prior knowledge of city business would constitute a
conflict. She noted that their professional code of ethics
would not allow this to happen.
Meehan stated that he wanted to make it clear to
HTGP&B that Arvidson had not been lobbying the Council. Howev-
er, when the Council learned that he had left the finn, the
Council had approached Arvidson with questions.
In response to a question from Gieseler, Arvidson
stated that he had discussed the transfer of city files to
Perkins Coie with the finn and he was confident that he could
provide a sIIDoth transition for the city. He stated that IIDving
the files would not be as complicated as Hughes had indicated,
adding that the physical transfer should take no IIDre than
one-half day.
( CSE154970 1
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PAGE 227
SPECIAL MEETING - DECl'MBER 5, 1988
VOLUME 23
Noll asked for a list of legal issues before the
City which would require action during the next thirty days.
Arvidson noted several issues including human rights suit
involving handicap access, upcoming IBEW negotiations, revision
of the city personnel code, continued ordinance revisions now
that the Code has been reorganized, a request for documents
filed under the Freedom of Information Act, final settlement of
the Cavanaugh case, a rrotion for change of venue in the Tipton/
Sassara case, the Hanson case, and possible financing of the
prison industries facility and a branch of the university using
the prison financing package as a rrodel.
In response to a question from O'Brien, Arvidson
stated that he spends approximately three-fourths of his time on
city of Seward work. O'Brien asked Hughes if HTGP&B had an
attorney available to provide this type and arrount of coverage
for the city. Hughes responded that her calendar has been
cleared for December and she would be available to devote full
time to the city.
O'Brien asked Arvidson if he had considered the
transfer of docurrents and information in HTGP&B' s computers.
Arvidson stated that this would not be a problem since hard
copies existed for all docurrents on camputer. In addition,
daily work on the computer could easily be downloaded to the
Perkins Coie computer system since the two firms use the same
computer sys tem.
0' Brien noted that he was concerned about Hughes'
response to Noll's question about the "ethical issue" since the
finn had taken on clients in opposition to the city even while
Seward was a client. He stated that this raised concerns in his
mind about the lack of conmmication within the finn. Hughes
stated that she was aware that the finn had agreed to represent
an insurance company in a case involving Joel Steelmm. She
noted, however, that a computer inquiry was made and Steelmm
had not been entered into the system as an "adverse party";
thus, the attorney representing the insurance company had not
been aware that the city was involved in a dispute with Steel-
mm.
In response to a question from Hilton, Hughes stated
that it would take some time to get "up to speed" on Seward's
legal issues, but she was aware of how the city does business
and she was confident that she would be able to prepare herself
adequately to represent the city at Council IIEetings. She
admitted that, given Arvidson's eight-year tenure as the city's
principal contact in the finn, she might never have the knowl-
edge about the city that he has at this time.
Hilton noted that HTGP&B has technically represented
the city, but in reality, Arvidson has been the city attorney.
He stated that he saw no reason to change that arrangement and
would be in favor of retaining Arvidson as the city's
( CSE154971 )
228
PAGE 228
SPECIAL MEETING - DECEMBER 5, 1988
VOLUME 23
representative for the interim. Hilton added that he would
favor requesting proposals for legal services in the next thirty
days or so.
In response to a question from Simutis, Royle stated
that a reasonable interim time franE would be about six weeks.
Simutis asked if Perkins Coie had discussed rates for city
representation. Arvidson responded that Perkins Coie was
willing to follow the SanE billing arrangement as the city
currently has with HTGP&B.
GIESELER M)VED TO TRANSFER TIlE CITY'S lEGAL SERVICES
TO FRED ARVIDSON AND PERKINS COIE WIlli TIlE SAME FINANCIAL
ARRANGEMENT AS TIlE CITY CURRENrLY HAS WIlli HI'GP&B; TIlE IDI'ION
WAS SECONDED BY SIMUTIS AND CARRIED UNANlM)USLY.
Gieseler stated that he would inmediately forward a
letter to HTGP&B requesting the transfer of the files.
VI. COUNCIL DISCUSSION:
GIESELER noted a copy of a letter from the Marine
Highway System to Senator Kerttula stating that the Tusturrena
would remain in Seward.
HILTON asked if a discussion of legal representation
for the city would appear on the next agenda. O'BRIEN suggested
that a work session would be a rrore appropriate setting for such
a discussion. GIESELER stated that he would schedule a work
session just after the first of the year. O'BRIEN suggested
that the administration put together a list of the things which
the Council should consider when discussing this issue.
O'BRIEN stated that he had had an opportunity to watch
the Anchorage Assembly in action recently, and the Seward City
Council is "doing fine".
mll. asked Hughes and Lucas to pass on the city's
thanks for HTGP&B's past representation. He also asked them to
let the finn know that the city was transferring the files
because the Council believes that this will provide a SIIDother
transition for the city.
GIESELER noted that he and Simutis had visited with
the Deputy Corrrnissioner of Corrections in Anchorage. He stated
that Sirrutis was preparing an in-depth report for the Council.
VII. CITIZENS' DISCUSSION:
None
VIII.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENTS:
None
( C SE 154972 1
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PAGE 229
SPECIAL MEETING - DECl'MBER 5, 1988
VOLUME 23
IX.
ADJOURNMENT :
The meeting was adjourned at 1:14 p.m.
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PAGE 229
REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
1. CAll. TO ORDER:
The December 12, 1988, regular IIEeting of the Seward
City Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREM)NY:
Councilmember Hilton led the pledge of allegiance to
the flag.
III. ROIL CALL:
Present were: Mayor Gieseler and Counci.1members Dun-
ham, Hilton, Meehan, Noll, O'Brien and
Simutis
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Finance Director Peirson, Deputy
Finance Director Gifford, Administra-
tive Assistant Martin, Engineering &
Utilities Manager Diener, Parks &
Recreation Director Yanez, Dispatch
Supervisor Pickett, Police Chief
Bencardino, and City Clerk Murphy
IV. APPROVAL OF MINUIES:
SIMUTIS M)VED TO APPROVE TIlE NOVEMBER 28 AND DECEMBER
5, 1988, MINUTES AS WRITTEN; TIlE MarION WAS SECONDED BY DUNHAM
AND CARRIED UNANlM)USLY.
( CSE154973 1
(lOO
L.'-'
PAGE 230
REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
V. APPROVAL OF REGULAR MEETING AGENDA:
Royle requested the deletion of the Audit Presentation
by Price Waterhouse Audit Manager Hippe. He noted that Hippe
had notified him that she would be unable to make the drive to
Seward because of adverse weather and road conditions. He also
noted that the city had provided a substitute resolution for
Agenda Item No. XI(C) (1) (Resolution No. 88-132).
Gieseler requested the addition of Unfinished Business
Item No. "A" - Discussion of Kerry Martin's merrorandum concern-
ing Small Boat Harbor lease rates. He also requested the
addition of New Business Item No. "B" - One percent for art for
the prison.
Murphy stated that she would like to change her
recOIl1Iendation on New Business Item No. "A". She noted that Mr.
Nonnan had paid past due taxes in full and the administration
was, therefore, rennving its objection to his application for an
ABCB restaurant designation.
NOll. MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
AMENDED; TIlE MarION HAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the Asserrbly's last IIEeting.
VII. CITIZENS' CCl1MENTS ON AGENDA ITEMS NOT SCHEDUlED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENI' CALENDAR:
Gieseler asked to anEnd the Consent Calendar by adding
a New Item No. 12 (Wohlforth, Flint & Gruening invoice for legal
services) .
Hilton asked that Resolution No. 88-134 (Item No.3)
be IOOVed to the Regular Meeting Agenda as Item No. XI(C)(4).
SIMUTIS M)VED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MOTION HAS SECONDED BY MEEHAN AND CARRIED UNANI-
MOUSLY. The following actions were taken:
RECORDS & RETENTION/ 1. Resolution No. 88-130, authorizing the destruc-
RESO: tion of certain public records, was approved;
REFUSE SERVICE/
RESO:
2. Resolution No. 88-131, aIrending the rates for
garbage and refuse rerroval services for the period cOIl1Iencing
January 15, 1989, was approved;
( CSE154974 )
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REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
3. Moved to Regular Meeting Agenda;
4. December 7, 1988, IIEIIDrandum from Martin request-
ing Council consent to the assignment of the leasehold interest
held by Kenai Fjords Tours, Inc., to the First National Bank of
Anchorage for that portion of the Oceanview Subdivision located
in the NE corner of Block 8, described in City Lease No. RE-On,
was approved;
5. ABCB notice of applications for renewal of liquor
licenses as filed by Apollo Restaurant and Yukon Bar were filed
without objection;
6. December 5, 1988, IIErrorandum from Diener recom-
mending Council authorization to issue a no cost change order to
Esther Herner to extend the completion date of the Senior
Center /Museum Building to March 15, 1988, was approved;
7 . Change Order No. 2 to the Seward Construction
Services contract (No. CON-308) for the control house addition
at the Electrical Substation, extending the contract by twelve
(12) calendar days, was noted for information;
8. Change orders as follows for certain prison
construction contracts were noted for information:
SAM-mAN :
11223 - Providing 64 tamperproof polycarbonate
covers for the inmate accessible thennostats (+$2,937);
11224 - Installing in the APS Building an angle
ledger and elastomeric coating wrapped up the vertical leg
per DCVR 673 (+$650);
#225 - S-Pro 193 and 194 credits for the deletion
of the israrur vent in Building No. 3 and substitution of
cold-rolled steel for copper tubing (-$5,000);
11226 (Revised) - Repairing the Sentrax security
system (+$1,074); and
TITAN CONSTRUCTION:
1111 - Modifying installation of the wall hydrant
at grid 4F (+$297);
9. Noverrber 15, 1988, IIEIIDrandum from Diener con-
cerning city snow removal priorities was noted for information;
10. Trip report as filed by Counci1member Simutis
concerning IIEeting with Deputy Corrmissioner of Corrections was
noted for infonnation;
11. Port Marketing Director position description was
noted for information; and
231
RE-072:
ABCB:
Rest.
Bar -
(Apollo
& Yukon
w/o obj)
CON-3cl/cOM. CNTR:
CON--30n:
CON-159:
CON-2lo(:
( C Sf 154975 )
232
C.ATTY:
FINANCE DEPT/
CON- Z'l.l / RESO:
(Banking Servo
Contract w/
FNBA approved)
PURCH/CITY EQUIP/
CON -314/RESO:
(P/W Contract
for city compo
needs assessmt
approved)
PAGE 232
REGULAR MEETING - DECEMBER 12, 1988
VOLUME 23
12. December 1, 1988, invoice from Wohlforth, Flint
and Gruening for legal services totalling $183.14 was approved
for paYIIEnt.
IX. PUBLIC HEARINGS:
None
X. PRESENTATIONS WIlli PRIOR N:lTICE ONLY:
A. ANN HIPPE, Audit Manager for Price Waterhouse,
was not present to present the city's FY 1988 audit report due
to adverse weather and road conditions.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and EnactIIEnt:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, ALASKA, AWARDING A CONl'RACT FOR
BANKING SERVICES.
Gieseler noted that the Clerk had distributed a
substitute metIDrandum and a substitute resolution for consid-
eration by the Council.
MEEHAN MOVED TO APPROVE RESOLUTION m. 88-132 (SUBSTI-
TUTE); TIlE MarION HAS SECONDED BY HILTON AND CARRIED UNANlM)US-
LY.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF lliE CITY COUNCIL OF TIlE CITY
OF SEWARD, ALASKA, APPROVING AN AGREEMENT
WIlli PRICE WATERHOUSE TO ASSESS THE CITY'S
CXl1PUTER NEEDS.
O'BRIEN M)VED TO APPROVE RESOLUTION NO. 88-133; TIlE
MOTION WAS SECONDED BY SIMUTIS.
( CSE15497b 1
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PAGE 233
REGULAR MEETING - DECEMBER 12, 1988
VOLUME 23
O'Brien stated that his only concern with the proposal
was the tinE fraIIE, adding that he could not accept the vendor's
assertion that this process could not be shortened.
Hilton stated that he was having a problem determining
if the city was going to get much in the way of service for its
rroney. He noted that Price Waterhouse would not be doing rrnlch
that Peirson had not already done. Royle stated that Price
Waterhouse would provide a non-vendor view of the programs the
city was considering. Gieseler added that P/W would also assess
the needs of all departments of the city. Hilton stated that he
was not impressed with the P/W proposal.
Meehan noted that the proposal presented by P/W was
dated November 22, 1988, and called for payment of $4,800 plus
incidental expenses. He stated that this was within the manag-
er's spending limit and asked why the contract had not been
awarded inmediately following the Noveni:>er 28 IIEeting. He
stated that this would have given the contractor another two
weeks to perfonn the research and prepare a report to the
Council and would have allowed the bulk of the work to be
completed before the holidays. Royle noted that the incidental
expenses would put the contract over his $5,000 limit, and he
would like the option of having the Anchorage team's work
reviewed by the Seattle Office, further adding to the cost of
the project.
O'Brien stated that he appreciated the fact that P/W
intended to interview Counci1members.
SIMUTIS M)VED TO AMEND THE RESOLUTION TO REQUIRE THAT
P /W PRESENT TIlE COMPlETED REPORT TO TIlE COUNCIL AT ITS JANUARY
9, 1989, MEETING; TIlE mTION WAS SECONDED BY O'BRIEN AND CARRIED
UNANIMOUSLY.
THE QUESTION WAS CALLED ON TIlE MAIN MarION AND RESOLU-
TION NO. 88-133, AS AMENDED, WAS APPROVED BY UNANIMOUS VCITE OF
TIlE COUNCIL.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, ALASKA, AU1HORIZING TIlE PURCHASE
OF A DISPATCH CONTROL CONSOlE AND RELATED
RADIO AND CCTV EQUIPMENT FOR THE SEWARD
POLICE DEPAR1MENT WIlliOUT FULL UTILIZATION
OF CITY BID PROCEDURES.
MEEHAN MOVED TO APPROVE RESOLUTION m. 88-135; THE
MarION WAS SECONDED BY NOll..
2~3
PURCHASING/CITY
EQUIP/POLICE OPT/
RESO: (Purchase
of dispatch ra-
dio equip. ap-
proved)
( CSE 154977 1
234
ELEC. DEFT/ CON-
"Z1!(/RESO:
(Letter Agrmt.
re Bradley Lk.
Agrmts. Apprvd)
PAGE 234
REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
Schaefermeyer noted that, if purchase of the unit was
approved by Council, it would be included in the RFP for lease
purchase financing which the city plarmed to advertise in
January. In response to a question from Gieseler, he noted that
renovation of the dispatch center would not be financeable;
therefore, the city could start on that phase of the project at
any time.
Dunham asked if the purchase of the new equipID2nt
would result in the need for new personnel. Schaefermeyer
stated that the new equipment should improve the city's dispatch
capabilities, make communication with other agencies easier to
accomplish, and allow for the efficient operation of the dis-
patch center by one employee.
In response to a question from Hilton concerning the
city's ability to obtain financing, Peirson stated that the city
would be issuing a traditional RFP for the financing package as
it had done for financing the hospital's computers. He stated
that he could not foresee the possibility of the city failing to
find financing for the package. Noll asked if Motorolla offered
a lease package. Peirson indicated that it did, but the city
could do better with a financial institution.
TIlE QUESTION WAS CAILED AND RESOLUTION m. 88-135
CARRIED BY UNANIMOUS VOTE OF TIlE COUNCIL.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, AU1HORIZING TIlE CITY
MANAGER TO SIGN A lETTER AGREEMENl' TO
RESOLVE CERTAIN CONTRACTUAL ISSUES PURSUANT
TO REA'S APPROVAL OF TIlE BRADLEY lAKE
HYDROELECTRIC PROJECT POWER SALES AGREEMENT
AND SERVICES AGREEMENT.
HILTON M)VED TO APPROVE RESOLUTION NO. 88-134; TIlE
MarION WAS SECONDED BY mu..
Hilton stated that he would like a brief synopsis of
what the Council was being asked to approve and the affect this
Letter Agreement would have on previously approved agreements.
Diener stated that the city had previously approved
and signed a Power Purchase Agreement and Services Agreement for
Bradley Lake Power. He noted that, while the city is not an REA
utility, several of the signers to the original agreements are
governed by REA, and these utilities carmot take action on the
Bradley Lake Agreements until REA has given its approval. The
Letter Agreement before the Council contained some word changes
which REA wanted to see in the agreements before giving its
( C SE154978 1
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PAGE 235
REGULAR MEETING - DECEMBER 12, 1988
VOLUME 23
approval. He assured Council that this Agreement would have no
effect on the city of Seward.
TIlE QUESTION \.JAS CALlED AND RESOLUTION m. 88-134 WAS
APPROVED BY UNANIMOUS VOTE OF TIlE COUNCIL.
XI1. UNFINISHED BUSINESS:
A. December 7, 1988, IIEIIDrandum from Kerry Martin
concerning lease rates in the Small Boat Harbor was noted.
Martin reminded Council that several of the Boardwalk Lessees
had appeared before the Council in September claiming that the
rates paid for the boardwalk lease sites was too high in compar-
ison to other lease rates in the Harbor. The Council had
instructed the administration to review the rates and report
back to the Council. Martin had then contracted with RESCO Real
Estate Services Corporation to have the boardwalk sites, Ray's
Waterfront Restaurant site, the Landing site, and several other
SBH lease sites appraised. (Martin explained that RESCO was
also perfonning an appraisal for waterfront lease sites in Homer
and would, therefore, have some background information which
would prove helpful in appraising the value of the city's SBH
property.)
Martin stated that Allen Bergstrom (appraiser for
RESCO) had found rrost lease rates in the Harbor to be fairly
accurate. He noted that Boardwalk Site No. 1 had a higher lease
value than the city was currently charging, while the other
sites, after his initial review, appeared to have a slightly
lesser value. However, since the city had had no problems
leasing the sites at the rate currently charged and since a
couple of the sites had changed hands since the sites had first
been developed, it would appear that the city and the lessees
had, in effect, set the market at the current price.
Bergstrom had also indicated that the property leased
to Alaska Treks & Voyages should lease for a lower square foot
rate; however, the city also owned the building located on the
land, and this would balance out the lease rate charged by the
city.
O'Brien stated that he was not prepared to act on the city's
recCJITIIEndation until he had a chance to review the full ap-
praisal which had been prepared by Bergstrom. Noll concurred
and stated that he would like to see this issue come back before
the Council for discussion.
GIESElER INSTRUCTED 1HE CLERK TO SCHEDUlE THIS ITEM
FOR DISCUSSION UNDER "UNFINISHED BUSINESS" ON JANUARY 9, 1989.
XII1.
NEW BUSINESS:
A. Murphy noted that the Borough delinquent accounts
clerk had indicated that she had received a check from Harbor
236
PRISON/COUNCIL:
(Simutis apptd.
City Rep/SCCC
Art Review Pnl)
. PAGE 236
REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
Dinner Chili owner Carl Nonnan covering all past due taxes;
therefore, both the borough and the city were withdrawing their
recomrendation that the city protest renewal of the restaurant
designation as requested by the applicant.
MEEHAN MOVED TO ISSUE A LETTER OF NONOBJECTION TO 'mE
RENEWAL OF TIlE ABCB RESTAURANT DESIGNATION AS REQUESTED BY 1HE
HARBOR DINNER CLUB; 1HE MOTION \.JAS SECONDED BY HILTON AND
CARRIED UNANlM)USLY.
B. Gieseler stated that he had received a letter
asking him to appoint a city representative to the panel which
would select the project to be funded under the One-Percent-
for-Art program for the prison. He stated that $150, 000,
representing one percent (1%) of the $15,000,000 in state funds
appropriated for the prison, had been set aside for this proj-
ect. Simutis volunteered for this position.
GIESELER APPOINrED SIMUTIS TO SERVE AS TIlE CITY'S
REPRESENTATIVE ON TIlE SCCC ART REVIEW PANEL.
XIV. CITY MANAGER REPORTS:
ROYLE stated that he had received a telephone call
from the Governor's Office of International Trade asking if the
city was still interested in taking part in the upcoming Trade
Fair in Seoul, Korea, March 3-11, 1989; and, if so, who would be
attending. He noted that those who had been scheduled to attend
in October (that trip was cancelled) were Meehan and Hilton,
representing the Council; Royle and Gates, representing the
administration; Willard Dunham, representing the Trade Board;
and Bill Noll, representing Suneel. Counci1member Dunham stated
that she would be attending, but would be covering her own
expenses. Gieseler asked that his naIIE be added to the list of
attendees.
ROYLE noted that Peirson's last day with the city
would be December 21, explaining that Peirson had accepted a
position in Santa Barbara, California. He stated that he had
interviewed one of the three top candidates for the Finance
Director position and had another interview scheduled for
Wednesday. Royle stated that he hoped to make a selection
before the end of the rronth.
ROYLE asked the Council to schedule a three-rronth
perfonnance review (executive session) in January so that he and
the Council could discuss his perfonnance thus far. Gieseler
stated that he would call an executive session following the
January 9 IIEeting.
ROYLE stated that the administration would have
recOIlllleIldations and options for continued legal services for the
Council to consider in January.
( CSE154QaO )
I
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237
PAGE 237
REGULAR MEETING - DECEl-1BER 12, 1988
VOLUME 23
O'BRIEN stated that he would like to have a work
session prior to the January 9 meeting to review the Audit.
GIESELER INSTRUCTED TIlE CLERK TO ADVERTISE A WORK
SESSION FUR NOON, JANUARY 9, 1989, IN ORDER TO REVIEi-J TIlE FY
1988 AUDIT AND TO DISCUSS CITY lEGAL SERVICES.
XV. COUNCIL DISCUSSION:
NOll. presented the administration with information he
had obtained from Japan concerning water-generated power.
SIMUTIS stated that the last issue of Alaska Journal
of COIIIrerce had featured an article about a meeting of port
directors and harbormasters. She stated that the article
contained numerous lengthy quotes attributed to Chris Gates. In
addition, that SanE issue had featured an article focusing on
Peratrovich, Nottingham & Drage with several stateIIEnts about
the city's North Dock.
O'BRIEN asked Royle to inform Price Waterhouse that
the city views the computer needs assessment project as crit-
ical. He also asked if the administration was working on his
suggestion that city leases be put on a standardized 5-year
appraisal plan. Royle stated that Martin is working on that
project at this time.
DUNHAM stated that she had invited both the new prison
superintendent and the city manager to her house for dinner
recently to discuss perceived problems. She stated that, as a
result of that meeting, she was convinced that there are rrore
prison personnel living and spending rroney in Seward than mmy
are aware. She noted that mmy of the prison employees have
homes in Anchorage which they are unable to sell at this tinE
and who would probably be relocating to Seward as soon as they
are able to find buyers for their homes.
MEEHAN complimented Simutis on her trip report and
Dunham on the work she has been doing with prison officials. He
stated that he was happy to hear that the Council has let
Department of Corrections know that the city is concerned about
various prison-related issues. He also corrmended Peirson for
the fine job he has done during his employment with the city.
GIESELER also complimented Peirson and wished him and
his family good luck in their new home. He thanked Sinutis for
participating in his meeting with the Deputy Corrrnissioner of
Corrections. Gieseler thanked Dunham for immediately addressing
the communication problem with local prison officials. Gieseler
noted that he would be giving his "State of the City" speech via
live television (Channel 11) same tinE before January 15, 1989.
Finally, he wished the conmmity a safe and happy holiday.
XVI. CITIZENS' DISCUSSION:
r CSE154981 )
238
PAGE 238
REGULAR MEETING - DECl'MBER 12, 1988
VOLUME 23
JONATHAN SEWAlL, Forest Acres, stated that he had
omitted a couple of items from his Borough Assembly Report which
he would like to address at this time. First, the Assembly had
approved Resolution No. 88-99 which provided that, beginning
January 1, 1989, a secured agreeIlEnt with the Borough for
paYIIEnt of delinquent sales taxes would not prevent the Borough
from protesting renewal of a liquor license. Sewall also noted
that the Assembly had been presented with the borough's Finan-
cial Report and Audit which showed a current Fund Balance of $23
Million. He noted, however, that $6 Million was needed as
undesignated reserve for cash flow purposes, $2.15 Million would
be appropriated for the Seward School, $6 Million had been
designated as an appropriation to keep next year's mil levy
down, and $5 Million would be appropriated the following year to
maintain the borough's current mil levy. He noted that this
would then bring the Fund Balance to the $6 Million dollar level
which was necessary for a cash flow reserve.
ROYlE noted that the city had begun labor negotiations
with IBEW and indicated that he would be coming to the Council
soon to present the administration's proposed agreement.
MURPHY stated that the Alaska Association of Municipal
Clerks and the Anchorage Convention and Visitors Bureau had put
in a bid for the 1994 International Institute of Municipal
Clerks' Conference and had won the bid. She noted that this
conference was scheduled for the week prior to Memorial Day in
1994 and would bring rrore than one thousand rmmicipal clerks
(and some spouses) from around the world into the state. She
urged local tourist-oriented business people to think about
putting together a post-conference tour to Seward.
XVI1.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS' COMMENTS:
None
XVII1.
ADJOURN1ENT :
The meeting was adjourned at 9:00 p.m.
Ci
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Mayor
( CSE 154982 )
I
I
I
PAGE 239
SPECIAL MEETING - DECl'MBER 15, 1988
VOLUME 23
1. CAll. TO ORDER:
The December 15, 1988, regular IIEeting of the Seward
City Council was called to order at 12:10 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember Meehan led the pledge of allegiance to
the flag.
IlL ROll. CAll.:
Present were: Mayor Gieseler and Counci1members Dun-
ham, Hilton, Meehan and O'Brien (Noll
and Simutis were excused)
Present also: City Manager Royle, Finance Director
Peirson, Deputy Finance Director
Gifford, Engineering & Utilities
Manager Diener and City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN M)VED TO APPROVE TIlE SPECIAL MEETING AGENDA AS
PRESENTED; TIlE MEETING WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
V. NEW BUSINESS:
A. Royle noted that Price Waterhouse was unable to
cornnit to completing a city computer needs assessment within the
time lines established by the Council. He further noted that
the city badly needed to improve its computer system and he
hoped to have a new system in place by mid-April so that it
could be "up and running" prior to the close of the fiscal year.
MEEHAN MOVED TO FOLIlM 1HE FINANCE DIRECTOR'S RECCM-
MENDATION AND PURCHASE DIGITAL EQUIPMENT AND Tll1ELlNE PROGRAMS;
TIlE MarION WAS SECONDED BY HILTON.
Peter Scioto, Senior Consultant for Price Waterhouse,
stated that if Council would extend completion date on the P/W
contract until January 23, 1989, it should be possible to have
computers installed by the middle of May, and this should allow
sufficient time to be "on line" by the end of the fiscal year.
He stated that Peirson had carefully evaluated the two proposals
and he was not inferring that what Peirson recOlIlllended was not
the best way for the city to go. He stated, however, that P /W
could offer the Council a "level of comfort" that the system
purchased would adequately meet the city's needs. Scioto stated
that he could not offer this assurance to the Council without
completing the needs assesSIIEnt.
( CSE 154983 1
239
CITY EQUIPMENT/
PURCHASING:
(Purchase of
Digital Computer
Hardware & Time-
Line Software)
240
PAGE 240
SPECIAL MEETING - DECl'MBER 15, 1988
VOLUME 23
In response to a question from Gieseler, Royle stated
that this would definitely change the time lines for issuing the
RFP for financing certain city capital acquisitions. Responding
to a question from Hilton, Scioto stated that he currently has
clients using the TiIreline program; however, they were not
IIllIDicipal govemnts. Peirson stated that while there are no
other IIllIDicipalities in the state of Alaska using Timeline,
there are other cities "outside" who use this software.
Meehan and Hilton both stated that they were comfort-
able with Peirson' s recorrnendation and favored going forward
with the purchase of the hardware and software at this time.
O'Brien stated that he was undecided and asked Peirson
what other IIllIDicipalities in the state were using. Peirson
noted that rrost are currently using 11M-based systems. He
stated that 11M hardware is of excellent quality and 11M's
service record on the hardware has been very good; however, 11M
does not develop its own software and does not provide service
for the software it sells.
O'Brien also asked if Timeline offered a utility
billing system. Peirson stated that TiIIEline had committed to
developing a system for the city; however, since that corrrnit-
IIEnt, Timeline had contracted with a IIllIDicipality "outside" and
would be developing a utility billing package for that IIllIDic-
ipality Which should be available for purchase by the city of
Seward. O'Brien asked if a Boat Harbor billing package was
available. Peirson stated that no one in the state has an
appropriate information managem2nt package to IIEet the Boat
Harbor's needs. He noted that a custom-designed package could
be developed for an estimated $8-12 Thousand.
Meehan noted that there were some advantages to being
a part of the plarming of a new system. Peirson agreed, stating
that the city would get exactly what it needed if a system was
custom-designed, and the contractor would offer a price advan-
tage as compensation for ''working out the bugs" during installa-
tion and initial use of the program.
Dtmham stated that she did not want to infer that
Peirson had not carefully assessed the city's needs or the
products offered by the vendors in question, but noted that he
would be leaving the city soon and would not be around to answer
for any problems which might occur. She indicated that P /W, on
the other hand, was under contract to the city to perfonn at
least one rrore audit and would, therefore, have their reputa-
tions "on the line" when a recorrnendation was made. Hilton
disagreed, stating that he felt Peirson had "done his homework"
and was satisfied with the recorrnendation he had made. In
addition, he noted that the hospital has purchased digital
equipment, and the purchase of similar equipID2nt by the city
could result in some efficiencies in the future since the two
systems could easily share information.
r CSE154984 1
I
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241
PAGE 241
SPECIAL MEETING - DECEMBER 15, 1988
VOLUME 23
O'Brien asked if the system reconmended by Peirson
would meet everyone's needs. Peirson stated that the digital
hardware could allow the PC's currently owned by the city to
network through the main digital equiprrent. He stated that the
Timeline software package was Finance Department oriented
because it was being purchased to IIEet the financial and ac-
counting needs of the city. The needs of other departments
could be adequately addressed through the purchase of PC soft-
ware. He added that the Digital system offered the city room to
grow and had the power to handle many future needs.
THE QUESTION WAS CALlED ON THE MarION TO PURCHASE TIlE
DIGITAL EQUIPMENT AND TIMELlNE SOFlWARE, AND TIlE MarION FAIlED
WITH 1HREE "YES" VOTES AND DUNHAM AND GIESELER VOTING "NO".
Gieseler noted that he had voted against the rrotion
because he felt it important to assess the needs of all depart-
ments of the city before purchasing a new computer system. He
stated that two department heads had told him that their needs
had not been considered when Peirson made his reccmnendation.
Murphy noted that she was one of the department heads who had
expressed concern to the Mayor but stated that she had since
found that her needs could be adequately IIEt with the addition
of another PC since she had been assured that the Digital
equipment would provide a networking system. Diener stated that
he was not sure the system proposed by Peirson would meet the
Utility Department's needs. He stated that he was particularly
concerned with an inventory system and a means of tracking
contract expenditures. Peirson noted that the new system would
provide the contract expense tracking inmediately, and would not
affect the possibility of purchasing a program for keeping track
of the Utility's inventory.
GIESELER M)VED TO RECONSIDER TIlE PREVIOUS QUESTION;
THE MarION \vAS SECONDED BY HILTON AND WAS APPROVED WITHOUT
OBJECTION.
THE QUESTION WAS CALlED ON TIlE MarION TO PURCHASE TIlE
EQUIPMENI' AND SOFlWARE AS RECCM1ENDED BY PEIRSON AND TIlE MOTION
CARRIED WITH FOUR "YES" VOTES AND DUNHAM VOTING ''NO''.
Gieseler instructed Royle to solicit a proposal from
Price Waterhouse to assess the accessory needs of other city
departments.
VI. COUNCIL DISCUSSION:
None
VI1.
CITIZENS' DISCUSSION:
None
VII1.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS:
( CSEl54985 )
242
PAGE 242
SPECIAL MEETING - DECl'MBER 15, 1988
VOLUME 23
None
IX. ADJOURNMENI':
The meeting was adjourned at 1:19 p.m.
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PAGE 242
REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
1. CAll. TO ORDER:
The January 9, 1989, regular IIEeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember Meehan led the pledge of allegiance to
the flag.
IlL ROLL CALL:
Present were: Mayor Gieseler and Councilmerrbers Hil-
ton, Meehan, Noll, O'Brien and Simutis
(Dunham was excused)
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Port Marketing Director Gates, Engi-
neering & Utilities Manager Diener,
Parks & Recreation Director Yanez,
Interim Finance Director Gifford,
Administrative Assistant Martin, Police
Chief Bencardino and City Clerk Murphy
IV. APPROVAL OF MINUIES:
HILTON MOVED TO APPROVE THE DECEMBER 12 AND 15, 1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND
CARRIED UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
( CSE 154986 ]