HomeMy WebLinkAbout1992 City Council Minutes
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City of Seward, Alaska
January 13, 1992
City Council Minutes
Volume 27, Page 141
1.
CALL TO ORDER
The January 13, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A, Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4.
APPROVAL OF MINUTES
Crane moved to approve the November 25 and 26, and the December 2, 9, 16,23
and 27, 1991, meeting minutes as presented; the motion was seconded by Krasnansky
and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Crane.
Krasnansky moved to meet in Executive Session immediately following the close
of regular business to discuss the Exxon Valdez Oil Spill litigation; the motion was
seconded by Swartz and carried unanimously.
The question was called, and the agenda was approved as presented without
objection.
6. BOROUGH ASSEMBLY REPORT
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Kenai Peninsula Borough Assembly Member Jonathan Sewall arrived later in the
meeting and gave his report immediately following "Citizens' Comments on Agenda
Items Not Scheduled for Public Hearing."
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
LOUIE MARCH, Mile 5.5, Seward, read a statement objecting to the passage of
Resolution No. 92-001. He stated that if approved by the Council, he would file a
referendum petition to stay action on the resolution.
TOM STAUDENMAIER, Eagle River, also spoke in opposition to Resolution No.
92-001. He also alleged that the City had no valid right of way across the March
property at this time.
BOROUGH ASSEMBLY REPORT (Taken out of order)
Sewall reported that the school budget committee had begun meeting in Soldotna
last week. He also reported that a reapportionment work session would be conducted
on January 14th in Soldotna to begin the process of fine tuning assembly district
boundaries in an effort to avoid an election on this issue. In response to a question from
Bencardino regarding the maintenance of Lowell Point Road and a question from
Schaefermeyer regarding the Solid Waste Transfer Facility Access Road, Sewall requested
a memo from the city setting forth the pertinent facts so that he could address these
issues with the borough administration.
8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by Dunham.
Dunham asked if the administration had investigated any of the out of town
groups who were seeking permits for games of chance and skill in Seward (Agenda Item
8F). Murphy stated that she believed that each of them had received permits to operate
in the city in 1991 and added that she would check this information prior to the next
meeting.
Cripps noted several amendments to the Kenai Caucus statement of legislative
positions (attachment to Resolution No. 92-003).
Crane asked for clarification of the source of transferred funds for the legal budget
amendments. Schaefermeyer explained that when the Council approved the legal budget
last June, a portion of the funds within the budget were not allocated to any particular
project or litigation. This "unallocated" line item was the source of the transferred funds.
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The question was called, and the Consent Calendar was approved as presented
by unanimous vote of the Council. The following actions were taken:
A. November 1991, invoice from Perkins Coie for legal services totalling
$18,211.08, was approved for payment, and Council authorized requested revisions to the
legal fund budgets for the Harbor Lights Condominium case and the Seward Ship's
Chandlery litigation;
B. Resolution No. 92-003, ratifying the Kenai Peninsula Caucus 1992 Statement
of Legislative Positions, was approved;
e. Resolution No. 92-004, approving a use agreement with the Seward Senior
Citizens, Inc., and the Resurrection Bay Historical Society regarding occupancy and
operation of the Senior/Community Center facility, was approved;
D. Resolution No. 92-005, approving the final task order to close out the
Dryden & Larue contract for engineering and design of the Transmission Line, was
approved (C90-391);
E. ABCB applications to renew liquor licenses as filed by PEKING RESTAU-
RANT and SEWARD TRADING COMPANY were noted and the clerk was instructed to
issue letters of nonobjection to their renewal; and
F, Applications for games of chance and skill permits as filed by SACRED
HEART PARISH; SEWARD SENIORS, INC,; ALASKA INDEPENDENT BLINDj ALASKA
INFORMATION RADIO READING & EDUCATION SERVICE; and DISABLED
AMERICAN VETERANS were noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Matthew D. Jamin, attorney representing the city in the Exxon Valdez Oil
Spill litigation, gave a brief overview of the litigation thus far.
B. Heather McCarty, Prince William Sound Aquaculture, asked for formal
support from the city for PWSAC and its programs. (See Resolution No. 92-002, Agenda
Item No. 11 (C)(2).
e. Don Sutherland, representing the Seward Polar Bear Jump Off Festival,
briefly related the history of the festival and encouraged local participation.
D. Louie R. March, Jr., Mile 5.5 Seward Highway, stated that he supported a
special election to allow the voters to choose whether they wanted to sell the electric
utility. He stated that Chugach Electric Association (CEA) wished to purchase the Seward
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January 13, 1992
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Volume 27, Page 144
utility. He also stated that CEA had promised Tom Staudenmaier that it would retain
the standby generators in Seward to provide emergency power. March noted that
Staudenmaier had agreed to pay the cost of a special election to determine the fate of the
utility by submitting to the city a check in the amount of $1500.
RECESS:
The meeting was recessed at 8:30 p.m. and reconvened at 8:40 p.m,
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending the sales tax code to provide an exemp-
tion for licensed clinical social workers.
Crane moved to introduce proposed Ordinance No. 92-01; the motion was
seconded by Dunham and carried by unanimous vote of the Council. Public hearing
was scheduled for Monday, January 27, 1992.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending the Land Use Plan maps of the city.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened.
ELSIE WHITMORE, 306 First Avenue, stated that the Council was being unfair
to those living south of the Lagoon. She stated that if the Council allowed construction
of apartments and other multi-family units throughout this area, no one would want to
build or buy a single family home there. She added that people living in single family
homes did not want an apartment house next door to them. She accused the Council
of creating an inner city ghetto without benefit of the inner city.
CHARLOTTE JONES, Eagle Lane, stated that she and her husband owned a four-
plex located at Sixth and Jefferson and operated Seward Investors Rentals. She stated
that when they purchased the 4-plex, the property was zoned Auto Commercial (AC),
and she contended that changing the Land Use Plan to Urban Residential (UR) would
devalue the property and cause them problems in the future. She asked the Council to
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make an exception for their property just as the administration was now recommending
that they do for the Wileys.
BRENT WHITMORE, 306 Fifth Avenue, stated that it was not fair to impose the
UR zone on those properties south of the Lagoon and not on subdivisions to the north.
He suggested that the City Council re-examine this particular ordinance, rewriting it to
allow some Rl areas to the south.
No one else appeared in order to be heard, and the public hearing was closed.
Murphy noted that there was a motion on the floor to enact the ordinance.
Krasnansky asked if a work session would be in order to clear up some of the
issues raised during public testimony. Schaefermeyer stated that the administration
would like a chance to explain the ordinance to the Council. He noted that this
ordinance came to the Council from the Planning Commission with the Commission's
recommendation for enactment. He further noted that the ordinance would change only
the Land Use Plan, not the zoning of any of the property in question.
Community Development Director Kerry Martin, referring to a city map, explained
the changes the administration and the Planning Commission proposed to make in the
city's Land Use Plan. He noted that the plan would place higher density residential areas
around the central business district core. Since financial institutions had balked at
providing loans on single family residences in areas where the land use plan called for
multi-family development, the administration proposed that the city do away with Rl,
R2 and R3 districts in the downtown area and redesignate this property as Urban
Residential.
In response to a question from Schaefermeyer, Martin stated that the Jones
property could continue current usage under the UR zone.
Dunham asked if this ordinance would allow construction on 30-foot lots. Martin
stated that this was a separate issue. Dunham stated that she felt this was an important
point and stated that the city should once again allow people to build on the 30-foot lots
to allow the maximum use of the downtown area. Martin stated that the Commission
would be addressing this issue once the Land Use Plan changes were in place.
Schaefermeyer stated that when Martin first brought this problem regarding
difficulty in getting financing for home construction in the downtown area to him, he
instructed Martin to also investigate the feasibility of changing the Code to allow
construction on the 30-foot lots. Schaefermeyer also stated that he empathized with the
concerns expressed by the public; however, this proposed ordinance was intended to
help preserve the residential flavor of this section of the community, not to destroy it.
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In response to a question from Krasnansky, Martin noted that a corrected version
of the ordinance had been distributed just prior to the meeting.
Whitmore objected to the city's failure to notify her by letter that this change was
coming before Council. Dunham agreed that affected property owners should have been
notified, Schaefermeyer stated that the city followed the relevant Code provisions with
respect to notification and noted that when making large wholesale changes, the city was
required only to post the notice in designated places and to publish the notice in the local
newspaper. He added that sending out individual letters would have required notifying
75% of the city's property owners.
Martin explained that the city was not attempting to change the zoning of the
affected properties. He noted once again that this ordinance would change the Land Use
Plan only.
The question was called, and the ordinance was enacted by unanimous vote of
the Council.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving an acquisition plan for easements and
property for construction of Phase 1A of the city of Seward
Lawing to Ft. Raymond 115 kv Transmission Line.
Murphy noted that there was a motion on the floor to approve Resolution No.
92-001 (formerly Resolution No. 91-156).
In response to a question from White, Schaefermeyer stated that all property
owners affected by Phase lA were mailed appraisal information on Tuesday of last week.
In addition, identical packets were provided at City Hall for pick up. He stated that if
any property owner had failed to receive a packet, either his/her property was not
affected or his/her mail had not been received.
Swartz noted that this resolution approved a plan for acquisition and did not
approve the taking of anyone's property.
Arvidson suggested changing the dates on the plan from January 14th and 27th
to January 27th and February 9th respectively.
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Krasnansky moved to amend Attachment A to the resolution as suggested by
Arvidson; the motion was seconded by Dunham and carried by unanimous vote of the
Council.
Schaefermeyer noted that Jack Anderson of Dryden & Larue was present and
prepared to review the design with the Council if the members so desired. He also
noted that Jay Sullivan of Land Field Services would be available on Thursday afternoon
at 1:30 p.m. in the Council Chambers to meet with any groups of individuals who had
questions.
Anderson reviewed the transmission line design. He noted that, for the most part,
the upgraded line would follow the existing alignment.
The question was called, and the resolution was approved as amended by
unanimous vote.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, supporting the Prince William Sound Aquaculture
Corporation.
Crane moved to approve Resolution No. 92-002; the motion was seconded by
Krasnansky and was approved by unanimous vote of the Council.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract to Dames & Moore to update
the Environmental Assessment Report for the Transmission
Line.
Bencardino moved to approve Resolution No. 92-006; the motion was seconded
by Krasnansky and was approved unanimously.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving an arbitration withdrawal agreement
regarding the Seward Ship's Chandlery arbitration.
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Krasnansky moved to approve Resolution No. 92-007; the motion was seconded
by Swartz.
Krasnansky stated that the ship lift user fee was approved by the Council in order
to recover what it cost the city each year to run the syncrolift. He noted that nothing in
this resolution addressed the outstanding sums of money due the city by Pruitt for
unpaid user fees. He also stated that the city attorney was sent a mixed message
regarding what the Council expected him to do. He added that given the fact that the
Council had chosen not to seek proposals from other attorneys, it should not now
disregard his advice. Krasnansky stated that he could not support this resolution.
Crane stated that the resolution was more confusing than he had anticipated. He
stated that there were many problem areas which should be addressed before a new
lease could be approved. He also stated that this process was moving faster than it
should. Crane noted that recently the Council agreed to go forward with the Pruitt
arbitration, and now there was a desire on the part of some to put the arbitration aside.
Crane reminded the Council that Garrett Schnell was also looking to the city for answers,
and he noted that many concerns had been expressed by the community. He concluded
that he could not vote in favor of this resolution without benefit of another work session
to address these issues.
Krasnansky also noted that Seward Aluminum Fabrication (Garrett Schnell) had
also expressed an interest in leasing some of this property.
Dunham reminded everyone that the SMIC was Seward's Performing Arts Center.
She noted that it was given to the city by the state, and it was incumbent upon the city
to make as much as possible from it. However, since it was not purchased with tax
payer money, there was nothing which would require that the city be reimbursed for the
cost of the facility.
White stated that he understood that, under the terms of this resolution, the
arbitration would be at a standstill, not withdrawn. Arvidson stated that the intent of the
resolution was to postpone any action on the arbitration until at least February 10th, not
to totally withdraw from it.
Bencardino moved to amend the resolution by substituting for Exhibit A an
agreement to postpone the arbitration until 02110/92 if agreeable to both parties; the
motion was seconded by Dunham and carried unanimously.
The question was called, and the resolution was approved as amended with
Bencardino, Cripps, Dunham and Swartz voting YES and Crane, Krasnansky and White
voting NO.
RECESS:
The meeting was recessed at 10:00 p.m. and reconvened at 10:15 p.m.
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12.
UNFINISHED BUSINESS
A. Proposed city agenda for upcoming lease negotiations with Jim Pruitt, dba
Seward Ship's Chandlery. Cripps noted that at a recent work session it was decided that
a couple of members of Council should meet informally with Pruitt and his representa-
tives to address the city's concerns with respect to the proposed lease. He stated that he
and Bencardino had met with Pruitt and had arrived at substantial agreement on all but
six or eight items which would require further discussion.
Cripps asked Port Marketing Director Gates to report on the meeting in question.
Gates noted that he had met with Pruitt, Whitman, Bencardino and Cripps for about one
hour on the previous Sunday. He stated that the participants were unable to come to
agreement on several items which he briefly reviewed with the Council,
Cripps stated that one item which must be addressed was whether to charge fair
market value for the leased land since this would cost Seward Ship's approximately
$400,000 per year in lease payments alone and would, in his opinion, "kill the deal." He
noted that SSC had proposed capital improvements to the site including water, fire
protection, security lighting, fencing, and buildings, all of which would become fixed
assets and city property at the end of the lease term. He added that these improvements
represented a capital investment of 6.8 million dollars over 15 years.
White stated that he would not object to a reduction in rent in return for capital
investment as long as Pruitt actually performed. However, Pruitt was recently given two-
years' free lease in exchange for a building which he never constructed. White stated
that the city must assure compliance with whatever lease provisions were approved.
Krasnansky noted Martin's memorandum regarding appraisals and stated that the
city should expect to receive fair market value for its leased property. Schaefermeyer
noted that the only appraisal performed so far was on the 1.7 acre portion of leased
property (current Pruitt lease). In response to Krasnansky's question, Schaefermeyer
stated that the Code required that all leases be at fair market value unless this provision
was specifically waived by the Council with a finding that leasing at less than FMV was
in the best interest of the public. If such a waiver were given, the Council could set any
rate it desired.
Cripps stated that it appeared that this lease agreement might require a vote of the
people. Arvidson noted the Charter provision which stated that land used for a public
utility (the definition of public utility specifically included docks) could only be disposed
of following a vote of the electorate. He noted that the city had followed this procedure
with the VECO Dock License Agreement.
Crane stated that he would agree to adjust lease payments in exchange for certain
capital improvements. Cripps noted that this leased property, along with its improve-
ments, would go on the tax rolls.
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Swartz stated that many people would agree that the city currently had a working
entity at SMIC, and it would behoove the city to do everything it could to work out a
good, viable agreement with Pruitt.
White asked if Pruitt would pay property taxes on the syncrolift as well as the
land. Schaefermeyer stated that this would have to be answered by the borough
assessor.
Cripps asked if there were any substantive questions which remained. Arvidson
stated that he had the same question for Council. He stated that the tax question needed
to be answered right away. In addition, the city must follow up on the EDA grant issue
and legal issues regarding the need for a vote of the electorate. Finally, the city must
address the issue of ownership of the tidelands.
Crane stated that he felt more comfortable about this process at this point. He
stated that the city seemed to be headed in the right direction.
Arvidson stated that he wished to look at the public meetings process before the
Council involved itself in any further meetings with Pruitt.
13. NEW BUSINESS
A. Request for authorization to schedule a public hearing regarding a
proposed land trade with Turls Mindenbergs. Dunham moved to authorize the
scheduling of a public hearing as requested; the motion was seconded by Crane and
carried unanimously.
14. CITY MANAGER REPORTS
Schaefermeyer asked the Council to schedule a work session prior to Thursday
evening regarding Ordinance No. 658. The Clerk was instructed to advertise a work
session to begin at 7:00 p.m., Wednesday, January 15th, to discuss the hospital
ordinance and to reschedule the Port Committee meeting until the following
Wednesday.
Schaefermeyer also noted that Council had been provided with the final fixed
assets study performed by Peat Marwick. He stated that a representative of Peat
Marwick would be available in February to give a presentation to the Council.
Chris Gates - Nash Road Harbor Update. Gates gave a brief report on the Nash
Road Harbor project. Swartz and Dunham requested that the Corps of Engineers be
asked to make a presentation to the Council. Diener suggested waiting until comments
were received from the Division before inviting Smith (COE) to speak to the Council.
He added that Smith had committed to making a personal presentation to the Council
when the final report was ready.
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Gates noted that he and Councilmember White had attended a me~ting of the
MatSu & Anchorage Port Commissions last week.
15. COUNCIL DISCUSSION
KRASNANSKY suggested that the city cut a boat launch ramp somewhere south
of the small boat harbor to relieve congestion in the harbor.
BENCARDINO stated that the city should go "full bore" with respect to getting
a deed to the SMIC tidelands.
WHITE asked for a report on the repair of the generators. Schaefermeyer stated
that completion was anticipated by the end of the week. He also noted that the city's
insurance carrier and a metallurgist would be coming to Seward this week to analyze
why the generator failed.
WHITE noted that he had talked to Smith (Corps of Engineers) at the Port
Commission meeting. Smith had stated that it would take 8-10 years to build a harbor
utilizing COE funds if everything went well. White also noted the memorandum to the
Council regarding paid parking lots in the Small Boat Harbor and paying for use of the
boat ramp. He stated that Seward should not become a place where people are charged
for every little thing they do. Finally, White noted the letter from SV AC requesting that
they be included in the city's capital request and offered his support for this.
CRANE reminded everyone of the public meeting on Thursday regarding
Ordinance No, 658. He invited the public to attend or to participate via the televised
phone-in option.
CRIPPS stated that he had received a request from a citizen looking for a safe
place for children to go sledding. Schaefermeyer stated that the Parks & Recreation
Department would look into this. He noted that a sledding area had been created at the
elementary school for young children, and although it was not very long or steep, it did
provide a safe area for younger children.
BENCARDINO thanked the Fire Department for flooding the ball field to provide
a skating rink for the community. Schaefermeyer noted that the Parks and Recreation
Department was responsible for this project and added that Duane LeVan was the
volunteer who always took care of this for the city.
SWARTZ noted that Yanez had done some good work on the memorandum
regarding paid parking. She stated that she had long been a proponent of paid parking
in the boat harbor. She stated that one must pay for parking in Anchorage and still walk
blocks. She added that people cannot expect a free ride when using public services and
facilities.
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KRASNANSKY concurred with Swartz. He noted that Yanez was responding to
something that came up at budget time last year when the Council perceived a need to
generate monies to maintain the improvements in the Small Boat Harbor.
16. CITIZENS' DISCUSSION
LOUIE R. MARCH, JR., Mile 5.5, Seward Highway, stated that he still did not
have a list of names and addresses of the property owners affected by the transmission
line upgrade. Schaefermeyer stated that the city had only received the names, not the
addresses, from its contractor, Land Field Services. He stated that this list would be
made available to March on the following day.
TOM STAUDENMAIER, Eagle River, asked about the status of the 9th circuit
court ruling on the Irby lawsuit (regarding the city's prequalification of bidders for the
transmission line upgrade construction). He also asked about the authority of the city
to condemn property outside the city limits.
BRUCE SIEMINSKI, Jesse Lee Heights, asked if Council and the administration
had turned in lists of what they wanted from Pruitt during negotiations. Cripps stated
that this was the list referred to earlier in the meeting. Arvidson stated that he had an
extra copy and would provide it to Sieminski.
BLAINE BARDARSON, 612 Second Avenue, stated that Seward Ship's Chandlery
had a large effect on the rest of the city's business community. He noted that Seward
Ship's spent money at local businesses and had a large payroll which was spent in town.
BRENT WHITMORE, 306 First Avenue, thanked Council for allowing the
interchange on the Land Use Plan maps. He suggested that the city must better inform
citizens as to changes that will affect 75% of the town's property owners.
RON LONG, Camelot Subdivision, asked that the city consider having a permit-
only parking area for local residents who work in the Small Boat Harbor.
JIM PRUITT, Maple Street, stated that he had just returned from Juneau where
he had met with representatives of the State Marine Highway. He reported that the
Tustumena would be in Seward for 43 days beginning January 22nd. He stated that the
repairs he was making to the vessel would employ many trades from plumbers to
seamstresses. Pruitt noted that generally the Tustumena and other state vessels were
overhauled at facilities which provided many amenities not available at SMIe.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SCHAEFERMEYER stated that Cablevision had satellite television service to the
prison and suggested that it might be able to provide services to the boat repair facility.
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BENCARDINO agreed with Long that those renting slips in the harbor should be
able to purchase parking permits.
CRANE agreed that fisheqnen should be allowed to purchase parking permits.
He stated that the Downtown Metthants Association would address some of the concerns
expressed by Pruitt.
KRASNANSKY thanked Whitmore for his comments and compliments.
ARVIDSON, referring to Staudenmaier's question about the Irby case, stated that
oral arguments were heard last week in San Francisco; however, he did not know when
a decision would be issued. Arvidson also answered Staudenmaier's question about the
authority of a municipality to condemn property outside of its corporate limits, stating
that this was provided for in Alaska Statutes.
DUNHAM asked if the City had received any communications from Chugach
Electric Association regarding the purchase of the city's electric utility. Schaefermeyer
stated that the city had not received any such communication.
CRANE stated that one of the goals of the Council was to be sensitive to the
needs and feelings of the community. He stated that the city tried to get information to
the public in the best way possible and stated that the city would welcome any
suggestions which would improve this process.
DUNHAM suggested using simpler language in legal advertisements as well as
utilizing street addresses and more familiar names of locations rather than legal addresses
(lot and block).
WHITE suggested posting notices at the local grocery stores.
18. ADJOURNMENT
The meeting was adjourned at 11:45 p.m., and following a brief recess, the Council
reconvened in Executive Session to discuss the Exxon Valdez Oil Spill litigation.
C~.. ///Gs
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Donald W, Cripps
Mayor
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1. CALL TO ORDER
The January 17, 1992, special meeting of the Seward City Council was called to
order at 12:05 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Dale White
Dave Crane
James Krasnansky
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Chris Gates, Port Marketing Director
Foster Singleton, Harbormaster
Linda S. Murphy, City Clerk
ABSENT was:
Karen A. Swartz (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Crane and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
None
6. SPECIAL ITEMS
A. Request for Executive Session to discuss the Pruitt Lease Negotiations.
White moved to meet in Executive Session immediately following the close of regular
business to discuss the Pruitt lease negotiations; the motion was seconded by Crane
and carried by unanimous vote.
1
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7.
CITY MANAGER REPORTS
Schaefermeyer noted that Afognak had recently filed motions to reinstate both the
city manager (Schaefermeyer) and the engineering and utilities manager (Diener) as
individually named defendants in its suit against the city. He also noted that a short in
the battery of the fire equipment vehicle had caused a small fire in the Fire Station on
the previous evening resulting in extensive damage to the vehicle and some smoke
damage to the building. He stated that two prior administrations had denied Fire
Department requests to install a smoke alarm system in the building because of the cost
of such a system; however, this event had pointed out the danger in not having such a
system. Schaefermeyer stated that he would make installation of an alarm system in the
Fire Hall a priority.
Finally, Schaefermeyer reported that the Fourth Avenue Dock had sustained
extensive damage on Wednesday, January 15th, when the crew of the Tustumena failed
to move the vessel prior to the onset of a storm.
8. COUNCIL DISCUSSION None
9, CITIZENS' DISCUSSION None
10.
COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 12:10 p.m., and the Council reconvened
immediately in an Executive Session to discuss the Pruitt lease negotiations.
/ -
L. iLl;; ~
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Donald W. Cripps
Mayor
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( CSE155011 )
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City of Seward, Alaska
January 20, 1992
City Council Minutes
Volume 27, Page 156
1. CALL TO ORDER
The January 20, 1992, special meeting of the Seward City Council was called to
order at 7:07 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember White led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham presiding, and
Louis Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Annie Martin, Secretary
ABSENT was:
Donald W. Cripps (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Crane and carried by unanimous vote.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
DON WHITMAN, 111 Barwell Street, thanked the Council for its efforts to "make
SMIC work." He stated that he realized that the purpose of the upcoming Executive
Session was to plan the city's strategy for negotiations with Seward Ship's Chandlery.
He added that, to him, strategy meant the $60,000 payroll which went through the
company last week, not 12 years and 3 international RFP's with no results. He urged the
Council to give a local company with 20 years invested in the community a chance to
develop SMIC.
DAVE WILLIAMS, 1124 Fourth Avenue, stated that he had been an employee of
Jim Pruitt's for the past 3 years and had been active in the company's participation in
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trade shows, He stated that the shiplift was helping the town, and Seward Ship's now
needed help from the city.
6. SPECIAL ITEMS
A. Request for Executive Session to formulate strate~ for the Pruitt lease
negotiations. Krasnansky moved to meet in Executive Session immediately following
the close of regular business in order to formulate the city's strategy for the Pruitt lease
negotiations; the motion was seconded by White and carried by unanimous vote of the
Council.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
WHITE stated that there seemed to be some public misconceptions about the
shiplift. He stated that he was very much in favor of operating the ship lift if both the
operator and the city benefitted; however, he could not favor an operation that was
detrimental to the city, nor would he favor an agreement which made it impossible for
the operator to succeed. He added that both parties should be able to find some
common ground which would allow both entities to be successful. White also stated that
he would like to assure the public that he was not involved in any negotiations involving
the development of a Nash Road Boat Harbor. He added that he did favor a harbor at
Nash Road because, in his opinion, it was needed by the city.
CRANE thanked those who had attended the meeting. He stated that the Council
wanted to reach an agreement with Seward Ship's Chandlery. He added that making
SMIC a success had been a 12 year problem, and he hoped to put that problem behind
the city very soon,
9. CITIZENS' DISCUSSION
D. J. WHITMAN, 111 Barwell, reported that the M!V Tustumena would be in
town on Friday to commence its 42-day stay in Seward for repairs and maintenance at
Seward Ship's Chandlery.
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SWARTZ asked Whitman how many SSC employees lived in cities other than
Seward. Whitman stated that the only employees who did not reside in the area were
those with specialized skills which were not available in Seward.
BENCARDINO, responding to a question from Brad Snowden about the amount
of leasable space at SMIC, stated that it was the city's intent to leave enough open space
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Volume 27, Page 158
at SMIC to accommodate another operator if one should appear at a later date. He
added that the city's goal was to "make things work" for both Pruitt and the city.
WHITE noted that the biggest difference of opinion between Pruitt and the city
was the question of who would operate the syncrolift.
DUNHAM noted that Seward and SMIC would be on trial while the Tustumena
was in for repairs. She stated that the Marine Highway System employees had always
contended that Seward could never compete with shipyards outside, and this was the
town's chance to prove that SMIC can compete.
11. ADJOURNMENT
The meeting was adjourned at 7:55 p.m., and after a short recess, the Council
reconvened in Executive Session to discuss strategies for the Pruitt lease negotiations.
L/ " 1,
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Oonald W. Cripps
Mayor
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JunUltry 27,1992
City Council Minutes
Volume 27, Page 158
1. CALL TO ORDER
The January 27, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
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January 27, 1992
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There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4. APPROVAL OF MINUTES (Not Available)
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by White and carried without objection.
6.
BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the January 21, 1992, assembly meeting,
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CALENDAR
Schaefermeyer asked to withdraw Item E from the Consent Calendar.
Crane moved to approve the Consent Calendar as amended; the motion was
seconded by Dunham and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-009, accepting a Fire Service Training Grant (G92-075)
from the state of Alaska and appropriating funds, was approved;
B. Resolution No. 92-010, approving Change Order No.1 to the Marathon Fuel
contract (C91-282), was approved;
t CSE155015 1
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January 27, 1992
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Volume 27, Page 160
e. Resolution No. 92-011, waiving competitive bidding and awarding a contract
(C92-460) to Alaska Correctional Industries for fabrication of replacement window stops
for the SCCC, was approved;
D. Resolution No. 92-012, authorizing application for funding assistance for an
outdoor recreation project to the state liaison officer as provided by the Land and Water
Conservation Fund, was approved;
E. Resolution No. 92-013, approving a water rate contract with Seward
Fisheries, was deleted from the agenda;
F. Resolution No. 92-014, awarding a contract (C92-461) to CH2M Hill to
design a storm water drainage system at the SCCC, was approved;
G. Invoice for legal services totalling $39.00 as submitted by Jamin, Ebell, Bolger
& Gentry was approved for payment;
H. Change Order No.1 to the Homeland Enterprise contract (C91-448),
increasing the contract amount by $2,386.95, was noted for information;
1. ABCB notification of application for renewal of liquor license as submitted
by DREAMLAND BOWL was noted and the Clerk was instructed to issue a letter of non-
objection to the renewal;
J. Applications for games of chance and skill permits as submitted by:
SEWARD IDITAROD TRAIL BLAZERS, INe.
REPUBLICAN PARTY OF ALASKA, DISTRICT 6
SEWARD CHAMBER OF COMMERCE
were noted for information;
K. 01/15/92 memorandum from Diener regarding city policy for maintenance
of Lowell Point Road was noted for information;
1. 01/20/92 memorandum from Diener regarding acquisition of transmission
line easements was noted for information;
M. Purchase Order Report covering the period 11/15/91 - 01/09/92 for purchases
totalling between $5,000 and $10,000 was noted for information;
N. Parks & Rec telephone survey report was noted for information; and
0, Capital projects priorities list for review was noted for information.
9. PUBLIC HEARINGS
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A. Notice of public hearing regarding the proposed negotiated disposal of city-
owned Lots 11-13, Block 8, Cliff Addition, to Juris Mindenbergs in exchange for a 20-ft.
parcel of land situated on the west side of Cliff Addition Replat No.1, 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 dosed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. LEE POLESKE, Seward Senior Citizens, Inc. - Senior/Community Center
Use Agreement. Poleske stated that both the Senior Center Director and the Board were
irritated with the city because they felt the city had not been responsive to the needs of
the users of the facility. He cited numerous problems with the furnace to illustrate his
point. Poleske also noted that in August of last year he had reviewed the use agreement
and had discovered that it had expired on June 30th, yet the city had not contacted
anyone regarding expiration. Poleske also claimed that the city had failed to involve
either representatives of the Senior Citizens or the Historical Society in the preparation
of the new use agreement and had even failed to ask these two groups if there were any
changes which might be needed. He stated that, for this reason, the Seniors and the
Resurrection Bay Historical Society had agreed not to sign the use agreement until some
of these problems were addressed. Poleske then complained that the city gave no
priority to clearing snow from the Senior Center parking lot to the rear of the building.
He noted that those who use the facility during the winter months are often elderly and
unable to cope with the snow and ice,
Crane stated that he had made a trip to the Senior Center in early January to ask
if the agreement met the needs of the facility. In response to his inquiry, Senior Director
Judy Martin had stated that everything was fine, and no mention was made of problems.
Schaefermeyer stated that there was an implication that the city was unresponsive
to requests made by the Seniors; however, the city had been working with Judy Martin
throughout the process of developing the use agreement. He added that at no time had
Poleske or Martin communicated any problems to his office. He stated that the city had
responded promptly to complaints about the furnace and had taken care of the problem.
Dunham asked if the city had in place a schedule of plowing priorities. Diener
stated that the first priority was to clear emergency routes to the hospital, followed by
clearing of school routes and then the business streets downtown. He stated that the
city's last priority was the clearing of alleys and parking lots. Diener admitted that the
Senior Center lot was not plowed as quickly as he would have liked, but the department
was hampered in its efforts because of the inordinate amount of snow received in
December.
Cripps noted the need for better communication between the agency and the city
and assured Poleske that this would happen,
t C Sf 155D17 )
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January 27, 1992
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11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 15.10.140, Definitions, and ~
15.10.225, Land Uses Allowed, regarding storage facilities.
Crane moved to introduce Ordinance No. 92-02; the motion was seconded by
Swartz.
Cripps noted that this ordinance had been reviewed by the Planning Commission
and recommended for Council action.
Crane stated that he had received a call from a resident of Vista Avenue who
stated that he would have trouble complying with the ordinance within the time frame
for responding to the new regulations. He suggested that the Council extend the
deadline for compliance until some time after the end of the building season.
Bencardino suggested that the city give those affected one year to comply.
Krasnansky stated that he shared the concerns expressed by Crane and Bencardino
and believed the time frame was unrealistic. Schaefermeyer stated that, practically
speaking, any unit not modified or moved by the first of November would not be
completed until next spring.
Crane stated that he would like to extend the compliance date through the next
two construction seasons.
Krasnansky move to extend compliance with the ordinance to 09/01/93; the
motion was seconded by Bencardino and carried by unanimous vote.
The question was called, and Ordinance No, 92-02 was introduced as amended
by unanimous vote.
RECESS:
The meeting was recessed at 8:17 p.m. and reconvened at 8:25 p.m.
B.
Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
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An Ordinance of the City Council of the City of Seward,
Alaska, creating a hospital department and amending
portions of SCC Chapter 2.30 dealing with the Community
Hospital Board.
Murphy noted that a motion to enact Ordinance No. 658 was on the floor, having
been postponed from the October 28, 1991, meeting.
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.
The question was called, and Ordinance No. 658 was enacted with Cripps,
Dunham, Krasnansky and Swartz voting YES and Bencardino, Crane and White voting
NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 5.18.200 by creating a Sales Tax
exemption for licensed clinical social workers.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened.
JONATHAN SEWALL, Dimond Boulevard, stated that this was a housekeeping
ordinance to conform to a recent borough ordinance change.
No one else appeared in order to be heard, and the public hearing was closed.
Crane moved to enact proposed Ordinance No. 92-01; the motion was seconded
by Dunham. The question was called, and Ordinance No. 92-01 was enacted by
unanimous vote of the Council.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the negotiated disposal of Lots 11-13,
Block 8, Cliff Addition, to Juris Mindenbergs in return for
a certain right of way easement within Cliff Addition Replat
No.1.
(CSE155019 )
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City of Seward, Alaska
January 27, 1992
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White moved to approve Resolution No. 92-008; the motion was seconded by
Dunham. The question was called, and Resolution No. 92-008 was approved by
unanimous vote.
12. UNFINISHED BUSINESS
A. Sewage Lagoon claim submitted by Paul Paquette. Schaefermeyer stated
that he had provided the Council with a copy of his report based on the city's evaluation
of the information provided by Paquette. He recommended that he be allowed to
negotiate a settlement with Paquette for a total sum not to exceed $5,000.
White moved to authorize the City Manager to settle the Paquette claim for an
amount not to exceed $5,000, provided that there was no admission of guilt on the part
of the city; the motion was seconded by Krasnansky and carried unanimously.
13. NEW BUSINESS
A. Claims for damages alleging damage caused by power surges as submitted
~
1. Robert M. Atkinson. Dunham moved to pay the damage claim as
submitted; the motion was seconded by Crane and failed with Bencardino voting YES
and all other councilmembers voting NO.
2. James W. Bruno. Krasnansky moved to pay claim as submitted; the
motion was seconded by Dunham and failed with Bencardino voting YES and all other
councilmembers voting NO.
3. Peggy Pipkin. Crane moved to pay the claim as submitted; the
motion was seconded by White and failed with Bencardino voting YES and all other
Councilmembers voting NO.
4. Jacqueline N, Sewell. White moved to pay the claim as submitted;
the motion was seconded by Crane and failed with Bencardino voting YES and all other
councilmembers voting NO.
B. Claim for damages as submitted by Garry LeFlore. Crane moved to
approve the claim for damages as submitted; the motion was seconded by White.
White moved to postpone action on this claim until February 10, 1992; the motion
was seconded by Swartz and carried by unanimous vote.
e. Existing Seward Ship's Chandlery lease appraisal. Krasnansky moved to
accept the administration's recommendation to consider the existing lease as separate
from the new lease being negotiated, to set the lease rate for the existing lease at
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$31,500 annually, and to move the issue of the lease rate to arbitration if the city and
Pruitt do not come to a mutually agreed upon lease rate; the motion was seconded by
Dunham.
White moved to postpone action on this item until the last regular meeting in
March (March 23, 1992); the motion was seconded by Bencardino.
White asked why the appraisal numbers were so far off. Schaefermeyer stated
that, in his opinion, this was due to a variance in the instructions given to the two
appraisers.
The question was called on the motion to postpone, and it was approved by
unanimous vote.
14. CITY MANAGER REPORTS
Schaefermeyer announced that Perkins Coie would conduct an informational
seminar on the Americans with Disabilities Act (ADA) in Seward beginning at 7:00 p.m.,
Tuesday, February 4, 1992. He encouraged members of the business community to
attend this free seminar.
Schaefermeyer noted that a memorandum was provided to the Council regarding
the need to adopt the city's legislative priorities at the February 10th meeting. He
suggested that the Council schedule a work session to discuss these priorities prior to the
February 10th meeting. He also reported that he would travel to Juneau with Mayor
Cripps on Tuesday to meet with the city's legislators and other key players to renew the
lobbying effort for the hospital and other issues.
Chris Gates, Port Marketing Director, stated that the waiver of city lease
procedures for the Pruitt negotiations would be placed on the next Consent Calendar.
Gates also reported that the city had received calls from the borough EDD and the
Federal EDA offering the city a grant if a project could be put together in an expedited
manner. He stated that he had met with EDA officials the previous week and had put
together a pre-application for a $1 Million grant to expand the North Dock 250 feet to the
west. Gates stated that this was the only project the city could come up with which met
federal EDA criteria. He noted that this grant would require a 39% match by the city.
There was no objection from the Council, and the administration was instructed to
proceed with the pre-application process.
Gates reported that there had been a lot of activity since the grain terminal bid
closing date (when no bids were received.) He recommended that the Council schedule
a work session or special meeting to talk about the grain terminal and its disposal.
( CSE155021 )
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City of Seward, Alaska
January 27, 1992
City Council Minutes
Volume 27, Page 166
The clerk was instructed to schedule a work session to begin at 7:00 p.m. on
February 6, 1992, in order to discuss the grain terminal disposal and the city's legislative
priorities.
15. COUNCIL DISCUSSION
BENCARDINO asked about the status of the Tidelands at the SMIC area.
Schaefermeyer stated that Kerry Martin had been in discussions with representatives of
the Department of Natural Resources over the past several days, and there were still a
number of issues which must be resolved with respect to this process. He also noted that
DNR had suggested that this process could take 5 to 6 months at best.
BENCARDINO also asked about the status of obtaining easements for the
transmission line and noted that he had received complaints that the information given
to property owners was not clear and that the city was only offering 75% of the
appraised value of the property. Schaefermeyer stated that Land Field Services was
offering 75% of appraised value because the city was only asking for an easement, not
a fee simple deed. Schaefermeyer suggested that if there were individuals who had
questions, they should contact the administration so that an explanation could be made.
In response to a question from WHITE, Gates stated that IECO International had
been given the contract for the Southcentral Port Study.
SWARTZ asked Diener for a status report on the generator repair and capacity.
Diener stated that the No.4 generator was back on line.
KRASNANSKY suggested that the administration encourage the Nurse Practice
committee at the hospital to address some goals to enhance the quality of care at the
facility. He also suggested that the city contract with a company which specialized in
credentialling rather than leaving this task to the Councilor the Medical Staff.
DUNHAM stated that she had received many phone calls and visits regarding the
hospital issue and had talked to former board members, nurses and others. She stated
that in nearly six years as a Councilmember, she had received complaints from only 3 city
employees; however, hospital employees were constantly complaining about conditions
at Seward General. Dunham said that she had voted in what she thought was the best
interest of the hospital and the community.
CRIPPS stated that he had arrived in Seward this afternoon after a whirlwind tour
of Japan as part of the borough trade mission. He stated that, during his visit, he had
discussed the shipment of gravel to Japan with the principals of a company interested
in this project and had entered into discussions regarding the export of fish to Japan. In
addition, an interest had been expressed in importing log home kits from the peninsula.
16.
CITIZENS' DISCUSSION
( CSf 155022 )
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WAYNE CARPENTER, 325 Fifth Avenue, representing the Seward Chamber of
Commerce, stated that the Chamber was supporting the establishment of a Legislative
Information Office (LIO) in Seward since this was one of the few places in Alaska of any
economic importance which did not have an LIO.
WILLARD DUNHAM, Alder & Dimond, Forest Acres, stated that he had received
word that the governor was interested in a full blown presentation regarding the SAAMS
project and had arranged a meeting in Anchorage with representatives of SAAMS and
Cambridge. In addition, he had received a telephone call from Senator Sturgulewski
stating that she was still very interested in this project and hoped to be a major player.
JONATHAN SEWALL, Dimond Boulevard, stated that the city's delegation in
Juneau had complained that they had not heard anything from the city and asked that
the city keep them better informed. He also promised to sponsor a resolution before the
borough assembly to get funding for an LIO in Seward,
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SWARTZ thanked Willard Dunham for his work on the SAAMS project.
WHITE also thanked Dunham for his work.
18.
ADJOURNMENT
The meeting was adjourned at 9:45 p.m.
L I .'
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Donald W. Cripps
Mayor
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City of Seward, Alaska
January 29, 1992
City Council Minutes
Volume 27, Page 168
1. CALL TO ORDER
The January 29, 1992, special meeting of the Seward City Council was called to
order at 5:00 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Dunham led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Crane and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
None.
6. SPECIAL ITEMS
A. Appointment of search committee for recruitment of physicians.
CRIPPS stated that he had called the meeting because of receipt of a letter of
resignation from Seward General Hospital by the three local practicing physicians. He
stated that he was concerned about the likelihood of a gap in health care services within
the community. He noted that the Council needed to appoint a committee to begin
recruitment efforts for new physicians.
KRASNANSKY stated that he would like to serve on the committee.
(CSE155024 1
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January 29, 1992
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WHITE stated that a referendum petition on Ordinance 658 was being circulated
in the community and he suggested that it would be wise to see if the petition was
certified within 10 days before beginning any research for physicians.
SWARTZ stated that time was spent in discussion at the regular meeting on
Monday night and although a public hearing was held, nobody came forward to testify.
She noted that she was not surprised to see a referendum petition being circulated.
CRIPPS replied that the referendum had potential for disrupting the provision of
health care at Seward General Hospital beginning on April 1 which was the date of
resignation given by the physicians. He stated that it was the Council's responsibility to
assure that adequate health care was provided to the community. He added that
although the referendum would throw a cloud over being able to provide specifics to
someone, this was something that could not wait.
WHITE suggested meeting with the current medical staff to work out a solution.
CRANE stated that there was a fair amount of public forum on this issue. He
stated that there was a lot of negative feedback from the community about the enactment
of Ordinance 658. He noted that the Council was elected to do what was best for the
community as a whole and he had been approached by citizens to put forth a
referendum petition to let the voters decide the fate of Ordinance 658. He added that
Robert's Rules of Order had been broken at the last meeting when the issue was "ram-
rodded" through which had left the physicians and the community with no choice in the
matter. He also stated that Council did not foresee the ramifications of the ordinance.
He noted that when three doctors were willing to resign and leave the community
because of the passage of one ordinance, it was time to step back and take a good look
at the issue. CRANE agreed that if the people of the community want the city to run
the hospital, he would support it, but the people should be the deciding factor.
DUNHAM stated that in the last five years, she has said many times that the
community needs a doctor not associated with Resurrection Bay Health Center. She
added that a physician should be recruited who would work independently of the clinic.
She noted that she was not speaking against the current physicians, but it was time to
back the Community Hospital Board and help them recruit a physician not connected
with the clinic. She stated that there is a community need for a fourth doctor. She
added that she did not understand why the pleas of the hospital employees had been
ignored for so long and it was time to listen to them.
SWARTZ stated that she had lived in the community a long time and the calls she
had been receiving lately were from citizens unhappy with the current situation at the
hospital. She stated that the resignation letter submitted by the doctors was not
instigated by the Council, but they had made the decision on their own,
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KRASNANSKY stated that he had compiled a list of physician who were
interested in locating to Seward if they could be divorced from the clinic. He suggested
utilizing a number of mid-level practitioners as do a lot of other communities.
WHITE replied that it was not a good idea to contact any physicians until the
ordinance takes effect.
CRANE agreed stating that the Council did not have administrative powers. He
noted that recruiting should be an administrative function.
CRIPPS replied that the Council would work in conjunction with the administra-
tion.
CRANE stated that the people should have a chance to vote on such an important
issue adding that one-half the required signatures had already been obtained on the
referendum petition.
CRIPPS stated that there had been a public hearing at the last regular meeting
prior to action on the ordinance and no public testimony was given at that time.
Dunham moved to establish an AdHoc Committee to recruit a physician in
conjunction with the administration; the motion was seconded by Swartz.
BENCARDINO voiced his concern about whether the Council could actually
recruit physicians or whether it was an administrative function.
DUNHAM replied that she assumed that Brim Healthcare and the Hospital Board
would be involved in recruiting efforts.
CRIPPS added that he envisioned the committee would provide input as to
parameters, collaborative relationships, autonomy, terms and conditions, scope of practice,
etc. He stated that professional input would be needed on salaries. He noted that hiring
was not the function of the committee but the parameters under which the hiring was
performed should be decided by the committee.
CRANE stated that he did not think the Council should so easily dismiss the
current practicing physicians,
DUNHAM replied that recruitment of another physician would not take anything
away from the current physicians.
BENCARDINO asked if the physician being recruited would work directly for the
hospital or set up an independent practice. He noted that he was concerned that
funding for a fourth doctor was not included in the hospital budget.
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CRIPPS replied that this was something that would need to be decided by the
Committee.
SWARTZ commented that the letter received from the doctors stated that they
would no longer refer patients to Seward General Hospital.
KRASNANSKY concurred stating that the letter was clear that, after April 1, the
physicians would not be admitting patients to the hospital. He stated that he felt it was
not in the best interest of the Council for Councilmember Crane to sponsor the
referendum petition, although he was perfectly within his right to do so.
CRANE replied that he had been asked to sponsor the petition by the citizens he
he was elected to represent. He stated that this was an important issue to the entire
community and they had a right to be represented. He stated for the record that
Krasnansky's comments to him about exercising his right and political judgment as a
Councilmember within the law on this issue were totally out of line, He stated that he
had not criticized Krasnansky's decision or views on the ordinance. He felt that criticism
of one Council member by another was not in the best interest of anyone.
CRIPPS, DUNHAM and KRASNANSKY agreed to serve on the AdHoc
Committee for physician recruitment.
WHITE stated that he was not in the medical field and did not have the expertise
to recruit a physician. He voiced his concern about a possible malpractice suit being filed
in the future and noted that he did not want to be responsible.
DUNHAM stated that the hospital was vulnerable to lawsuits because the city
owns the physical plant and the Council appoints the hospital board members, Also,
money is allocated to the hospital from the city. She added that if the Council should
back down, it would be admitting that the doctors run the hospital.
BENCARDINO asked the administrator to give his opinion of the situation. He
stated that there were many issues involved including the city taking over the hospital,
the doctors running the hospital or whether Brim is running the hospital. He noted that
he agreed with some issues but disagreed with others.
The question was called and the motion carried with six YES votes and WHITE
voting NO.
7. CITY MANAGER REPORTS
SCHAEFERMEYER notified the Council that the work session scheduled for
Thursday evening was in conflict with a meeting that was scheduled in the council
chambers by the Oil Trustees staff who would be conducting a public hearing that
evening. He suggested rescheduling the work session.
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The clerk was instructed to schedule the work session for February 6 at noon to
discuss the capital improvements legislative priority list and sale of the grain terminal
components.
8. COUNCIL DISCUSSION
SWARTZ commented that this was not going to be an easy time to get through.
DUNHAM stated that she would like to see this issue get resolved without a war.
She added that if it goes to a vote, some people will end up on different sides to the
detriment of the community.
BENCARDINO stated that he had received numerous calls and all but one were
against enactment of Ordinance 658. He added that he hoped what was happening
would not hurt the city.
WHITE stated that the ordinance had not taken effect yet and recruitment was still
a Hospital Board decision until that time.
CRANE stated that the people have a right to express their opinion regarding
changes in the system. He noted that something this important should go to the vote
of the people. He added that it was wrong to force something that could cost more
money on the community if they did not want it. He stated that the petition process was
set up for the public to have a right to override the Council's decision on a matter. He
noted that he was concerned with the possibility of lost jobs and lost health care because
of this issue, He added that one reason he ran for Council was to try to develop a good
trust between the Council, Administration and the people. He stated that it was in the
best interest of the community for everyone to work together on this. If the hospital was
added as a department of the city, ultimately, the taxpayers would bear the added cost.
CRIPPS stated that Ordinance 658 was introduced in October, 1991 and action was
taken in January, 1992.
9. CITIZEN'S DISCUSSION
E. G. SKINNER, 418 Second Avenue, noted that one reason for the lack of public
response during citizen's discussion was that many people do not like to speak publicly.
He stated that like Councilmember Dunham, he too had been involved in the past
history of the town. He noted that the direction this issue was taking was mystifying
because it had exploded so quickly. He spoke about a past incident in which four
councilmembers had been recalled because of secret meetings. He added that this had
split the town but not as much as an issue which had arisen involving the firing of a
school secretary and three teachers by the school administration. He stated that such a
situation was developing now. He talked to Mayor Cripps and Councilmembers
Dunham and Swartz but never heard them offer any solution to the criticism going on.
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He stated that if someone else could do the job better, that was fine as long as there was
information to back up the decision. He stated that the present hospital administration
had been on board for only five months. He requested a six month delay to give the
administration a chance to address existing problems but this was not done. He added
that he would like to see the referendum process given a chance to work and let the
public decide. He reported that the Community Hospital Board would be meeting at
7:30 tonight to discuss the issue and what was the best for the community. He stated
that the hospital had some personnel problems, and those employees who had been
employed the longest were resisting change. He stated that the present administration
was trying to run the hospital the way it should be run.
KEITH CAMPBELL, 1910 Forget Me Not Circle, stated that, based on his
experience in recruiting physicians to Seward for the past 20 years, the lead time for
physician recruitment was approximately 18 months for someone in private practice, If
a firm were hired to recruit, a finders fee of $18,000 per doctor would have to be paid in
advance, He stated that you could not just recruit one physician. It was easier to recruit
a minimum of two. Currently Seward has three doctors and one ER doctor. He stated
that the price for recruitment would be very high. He noted that there were several
disgruntled employees at the hospital, but there have been a lot of changes recently, He
stated that he was glad that the people would have a say on this issue, He added that
what was needed was some policy direction from the Council to the Administration.
DAVE SQUIRES, 2423 Maple Street, suggested that the AdHoc Committee should
consist of a broad cross section of the Seward area. He urged the Council to ask the
present physicians to reconsider their recent decision.
TIM POLLARD, 432 Second Avenue, stated that the letter submitted by the
physicians was not an idle threat or a bargaining chip. He noted that they did not think
they could provide quality medical care in a political turmoil at the hospital. He added
that if there was some way to resolve the issue quietly and eliminate the political turmoil,
they would reconsider their decision. He stated that it was important to realize that
those who were hurt most by this issue were the poor since they did not have access to
other health care. He added that it was extremely important that children and pregnant
women have access to adequate health care. He urged the Council to do what it takes
to ensure adequate health care.
GAIL SELA, Mile 6 1/2, Seward Highway, stated that she was disappointed with
the decision of the physicians to leave since this would be detrimental to the community.
She noted that she had been a nurse at Seward General Hospital for some time and she
feared that she could be out of a job if the physicians left, She stated that the nurses at
the hospital were nervous about this decision. She stated that the employees at the
hospital could benefit from Ordinance 658 which would give them better wages and
benefits. She added that the employees would have to trust the City Council, Hospital
Board and the Administration to do what is best. She stated to the Hospital Board that
a lot of the problems exist because the employees are not being heard and have not been
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heard. She disagreed with Mr. Skinner that the long term employees had been resistant
to change. She noted that the long term employees were responsible for bringing about
the biggest change which was hiring a management firm to run the hospital. She stated,
however, that it turned out that as a management firm, Brim has failed the hospital, the
community and the physicians. She noted, however, that she was not unhappy with the
current administrator or director of nurses. She stated that issues could have been
resolved if the board had agreed to meet with the employees to discuss their grievances,
but that did not happen, She explained that employee morale was way down at the
hospital but nobody seemed to care enough to do anything about it. In conclusion, she
stated that a lot of problems would be solved if Brim was not managing the hospital.
JIM LEWIS, Mile 6, stated that any physician who comes to Seward who does not
attempt to communicate and cooperate with the medical staff and facilities available is
either a maverick or a trouble maker. He noted that although his views and opinions
were different from the staff, there was a spirit of cooperation among the medical staff
that he had not seen in any other hospital. What he was also seeing was a legislative
branch of the government that had somewhat of a disregard for the law, and they were
not allowing one action to take full effect before legislating other action. He stated that
his main purpose for coming to Seward was to bring quality medical service to a town
that desperately needed it. He added that non-medical personnel should not want to tell
the medical staff what was necessary to maintain quality medical care. In closing, he
stated that the letter written did not contain any threats or vindictiveness, but could be
viewed as a last ditch desperate act for sane reasoning.
DR. BRUCE PACKARD, 506 First Avenue, thanked the Council for their efforts
towards recruiting an additional physician. He stated that the medical staff would work
with someone who was in their office or not in their office. He stated that he came to
the community to provide health care because rural communities are underserved by
physicians. He noted that during the three and one-half years that he had been in
Seward, the community had experienced four major crises, and he added that he could
take so much uncertainty for only so long. The four crises were: a threat that the clinic
was closing, introduction of Ordinance 611, the disaster last spring and passage of
Ordinance 658. He stated that it was reasonable to expect some stability in his profession
and it did not make sense when anyone could decide how the hospital was to be run
without consulting the medical staff. He noted that Ordinance 658 would not do
anything to assure adequate health care in Seward, but had forced the medical staff to
come to the decision they had rendered.
SUSAN MCLAIN, Questa Woods, stated that she had worked at Seward General
Hospital for the past four months. She noted that in the past two months Dub, the
Administrator, and Ruth, the Director had been very responsive to existing problems.
She added that she was extremely impressed with Brim and that the Council was making
a big mistake. She stated that she did not think all of the hospital employees were dis-
satisfied.
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10.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
DUNHAM stated that all departments have problems and most of those
employees calling wanted the Council to do something. She added that she felt the
Council had to do something in response to the complaints. In response to Mr. Skinner's
comment about not providing any answers, she stated that it was important for the
community to have access to an independent doctor. She felt that it was also important
to have an independent study conducted to find out why so many of the pregnant
women in Seward choose to have their babies in Anchorage.
KRASNANSKY stated that every citizen had been invited to provide testimony
to the Council, and Dr, Packard had ample opportunity to state his case. He added that
he appreciated the testimony the physicians had given tonight.
CRANE stated that there were lots of problems between the employees and
administration of the hospital but Ordinance 658 had not resolved anything, the
problems still existed. He encouraged the citizens to get out and vote or sign the petition
on this issue. He stated that he had started the referendum process so the people could
speak and decide what was best for the community. This was a way to open
communications between the hospital, the Hospital Board, the Council and the citizens
of Seward. CRANE added that he felt that the issue was too big for four people on
Council to decide on. He also stated that the Council was being lax in not dealing with
the physiciam after receipt of their letter of resignation. The community should have
adequate health care. He noted that he as a Councilmember did not have the expertise
to run a hospital, and he felt that the Council should not govern the hospital.
WHITE voiced his concern over whether Ordinance 658 was a good idea fiscally
since it would cost the taxpayers more money. He added that he would like to have
seen the employees vote on whether they wished to become a department of the City.
He reiterated that the Council should not be dealing with hospital issues for another nine
days.
BENCARDINO stated that the City should put the hospital up for sale.
SWARTZ stated that the doctors have said that they cannot work under the
current political atmosphere. She noted that the hospital problems always seemed to end
up at the Council level. With four new councilmembers and a new mayor, people are
trying to do the best for their community that they can. She stated that the Council was
trying to act tonight to ensure that adequate health care needs would be met. She added
that she had received more phone calls from people who wanted change than people
who did not.
CRIPPS stated that the meeting had been called to appoint a committee for
physician recruitment and that had been achieved.
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January 29, 1992
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11. ADJOURNMENT
The meeting was adjourned at 6:40 p.m.
Q~/ C;hc
Donald W. Cripps, Mayor
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1. CALL TO ORDER
The February 10, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m, by'Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Patricia Jones, Acting City Clerk
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PROCLAMATIONS:
A. Cripps read a proclamation to be presented to Duane LeVan showing the
city's appreciation for his volunteer work for the community by clearing the ice skating
rinks for the past eight years.
4. APPROVAL OF MINUTES
Krasnansky moved to approve the 01/13/92 and 01/27/92 regular meeting minutes
and the 01/17/92 and 01/20/92 special meeting minutes as presented; the motion was
seconded by Swartz and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Cripps moved to meet in Executive Session immediately following the regular
meeting to discuss pending litigation regarding Afognak Logging vs. City and a
personnel matter; the motion was seconded by Crane and carried by unanimous vote.
Krasnansky moved to approve the Regular Meeting Agenda as amended; the
motion was seconded by Crane.
The agenda was approved as amended without objection.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the February 4, 1992, assembly meeting. He discussed the school budget which was
prepared at $63,000 with a contingency budget prepared at $60,000. He noted that over
40 items had been cut from the budget. He reported that the Boat Tax Committee would
meet in SewGird on February 11. In answer to a question from Bencardino, Sewall
suggested adding road maintenance of Lowell Point Road to the legislative priorities list
to obtain State funding for the road to bring it up to the standards of the state road
system. Bencardino replied that since the road was outside the city, the Borough should
take the lead to obtain the funding. Cripps asked when the assembly would be reduced
from sixteen to nine members. Sewall stated that in October the election would be held
for a nine member assembly. He added that the seats would be two year seats.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
TOM STAUDENMAIER, Eagle River, asked what the decision was from the
Ninth Circuit Court of Appeals regarding the Irby litigation. He also asked how the city
could put out a contract for construction of the transmission line when a lawsuit is
pending in the court of appeals. He also stated that a referendum petition application
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had been filed with the Clerk's office on January 31 regarding Resolution 92-001 and
asked why it had not yet been certified.
TIM MOFFATT, Mile 1 Exit Glacier Rd., spoke in support of Resolution 92-017
which urged the Legislature to establish a Legislative Information Office in Seward.
LOU NAUMAN, 501 Ash, Nordic Ski Club, addressed the Council regarding
support for a ski resort clinic in the community. He stated that he was seeking city
support such as funding for postage and paper in order to distribute flyers. Bencardino
stated that it would benefit the community to get together with Anchorage and Kenai to
promote winter tourism and asked the Parks and Recreation Department to coordinate
with the Nordic Ski Club.
8. APPROVAL OF CONSENT CALENDAR
WHITE asked to move Items D and E to the regular agenda as Items 4 and 5
under Resolutions and Item L to Item C under New Business.
Acting City Clerk Jones noted that Resolution 92-018 Substitute would replace
Resolution 92-018.
Crane asked to moved Item J to New Business as Item D.
Krasnansky asked to move Item A to Item 6 under Resolutions.
Crane ~oved to approve the Consent Calendar as amended; the motion was
seconded by Bencardino and carried by unanimous vote. The following actions were
taken:
A. Resolution 92-015, approving budget reVISIons to the FYl992 hospital
enterprise fund, was moved to the regular meeting agenda as Item 6 under
Resolutions;
B. Resolution 92-016, authorizing departure from standard city lease proce-
dures, was approved;
e. Resolution 92-017, supporting the establishment of a legislative information
office in Seward, was approved;
D. Resolution 92-018 Substitute, awarding a contract for construction of Phase
I-A of the transmission line project to Norcon, Inc. (Contract No. 92-462) for
$1,465,822.67, was moved to the regular meeting agenda as Item 4 under
Resolutions;
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E.
Resolution 92-019, awarding a contract to CH2M Hill (Contract No. 92-463)
to provide design services and prepare construction documents to repair
and restore Lowell Point Lagoon for NTE $52,500, was moved to the
regular meeting agenda as Item 5 under Resolutions;
F. Resolution 92-020, approving Change Order No.1 to the Metco contract
(Contract No. 91-445) for snow removal and sanding services increasing the
imount by $10,000, was approved;
G. Resolution 92-021, approving a one year extension to the contract with
Jason Enterprises (Contract No. 90-360) for refuse service, was approved;
H. Resolution 92-022, authorizing the city manager to apply for a grant (Grant
No. 92-077) with the Environmental Development Administration to extend
the North Dock at the Seward Marine Industrial Center, was approved
I.
Resolution 92-023, approving purchase orders to City Electric $22.178.70,
Alcan Electric $7,009.42 and Newberry Alaska $76,437.84 (Contract No. 92-
~64) for restoration of electric power during the December power outage,
was approved;
J.
City Financial Report through 12/31/91, was moved to the regular meeting
agenda as Item D under New Business;
K. Hospital Financial Report through 12/31/91, was noted for information;
1. Perkins Coie invoice for legal services for December, 1991, totalling
$23,358.95, was moved to the regular meeting agenda as Item C under New
Business for consideration;
M. Resolution No. 92-028, approving Change Order No. 1 to the Metco
contract (Contract No. 91-450) for additional excavation work at Lot 6A,
]~olz Subdivision, was approved;
N. Parks & Recreation quarterly report for the 4th quarter, 1991, was noted for
information;
0,
ABCB notification of applications for renewal of liquor licenses as submitted
by BREEZE INN and AMERICAN LEGION POST #5 were noted and the
clerk was instructed to issue letters of nonobjection to their renewal. The
clerk was instructed to issue a letter requesting a 30 day extension on the
application for renewal of liquor license filed by THORN'S SHOWCASE
LOUNGE;
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P. Applications for games of chance and skill permits as submitted by the AK
FISH & WILDLIFE FEDERATION & OUTDOOR COUNCIL and the AK
FISH & WILDLIFE CONSERVATION FUND were noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Presentation by Wayne Carpenter, Chamber of Commerce regarding
funding was postponed until February 24, 1992.
11. ORDINANCES AND RESOLUTIONS
EMERGENCY ORDINANCE for introduction and enactment.
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, authorizing the early opening of the employee
campground at Seward Fisheries effective February I, 1992.
Swartz moved to introduce Ordinance No. 92-03; the motion was seconded by
Dunham and carried by unanimous vote.
CRIPPS stated that Seward Fisheries was in need of accommodations for the
transient workers who were currently working to process Pacific Cod.
Swartz. moved to enact Ordinance No. 92-03; the motion was seconded by
Dunham and carried by unanimous vote.
WHITE expressed his support in helping Seward Fisheries.
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 8.15.610, employee campgrounds.
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White moved to introduce proposed Ordinance No. 92-04; the motion was
seconded by Crane and carried by unanimous vote. Public Hearing was scheduled for
February 24, 1992.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 15.10.140 Definitions, and ~
:1.5.10.225, Land Uses Allowed Table, regarding storage
facilities.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened.
No one spoke in order to be heard and the public hearing was closed.
Crane moved to enact Ordinance No. 92-02; the motion was seconded by White
and carried by unanimous vote.
e. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, referring Ordinance No. 658 to the voters at a special
election to be held in the City of Seward, Alaska, on March
17, 1992.
Crane moved to approve Resolution No. 92-024; the motion was seconded by
Bencardino and carried by unanimous vote.
NOTE:
Resolution No. 92-025 was deleted from the agenda,
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the capital improvement projects priority
list for the 1992 state legislative session.
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Krasnansky moved to approve Resolution No. 92-026; the motion was seconded
by Swartz.
BENCARDINO asked for support for a Legislative Information Office in Seward.
Schaefermeyer replied that support for this project was done by resolution and contact
has been made in Juneau. Cripps noted the importance of an LIO and voiced his
support. Schaefermeyer suggested substituting the word "development" for "design" in
the last whereas clause on page one. There was no objection from the Council.
vote.
The question was called and Resolution No. 92-026was approved by unanimous
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the disposal of the grain terminal
components.
Crane moved to approve Resolution No. 92-027; the motion was seconded by
Swartz and carried by unanimous vote.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract for construction of Phase I-A of
the transmission line project to Norcon, Inc. (Contract No.
92-462) for not to exceed $$1,578,257.67.
White moved to approve Resolution No. 92-018 Substitute; the motion was
seconded by Dunham and carried by unanimous vote.
5, Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract to CH2M Hill (Contract No. 92-
463) to provide design services and prepare construction
documents to repair and restore Lowell Point Lagoon for
NTE $52,500.
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White moved to approve Resolution No. 92-019; the motion was seconded by
Krasnansky.
WHITE asked why the contract was being awarded for $52,500 instead of $17,370
which was the amount proposed for phase one of the project. Diener replied that the
overall project was being awarded at this time. He noted that once the first phase was
completed the City would need to go beyond that in a timely manner. He added that
the next phase would be negotiated and would be included in the overall cost of $52,500.
He stated that the contract was awarded to the proposer on the basis of qualification, not
necessarily the low bid.
The question was called and Resolution No. 92-019 was approved by unanimous
vote.
6. Copies having been made available to the public, Cripps noted by
title only a resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving budget revisions to the FY1992 hospital
enterprise fund.
Krasnansky moved to approve Resolution No. 92-015; the motion was seconded
by Dunham.
KRASNANSKY asked what the significant differences were between this budget
and the previously approved budget. Schaefermeyer deferred the question to hospital
administrator McElhannon.
MCELHANNON stated that the original budget was created prior to July 1, 1992.
The addition of a physician and a physical therapist at the hospital created an impact
on the budget. He noted that the hospital was just revising the budget to reflect the
changes in revenue and expenses to bring them more in line with what was really
happening.
The question was called and Resolution No. 92-015 was approved by unanimous
vote.
RECESS: The meeting was recessed 8:26 p.m. and reconvened at 8:36 p,m.
ARVIDSON stated that he would like to respond to Mr. Staudenmeier's questions
at this time. He stated that the person to contact regarding the Irby litigation was Helene
Antel, Attorney for IBEW and the City. He reported that no decision had been made by
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the Ninth CircUit Court of appeals to his knowledge. He also stated that the referendum
petition referring to Resolution No. 92-001 did not have a co-sponsor.
12. UNFINISHED BUSINESS
A. Appointment of AdHoc Committee for physician recruitment. Cripps stated
that the purpose for appointing an AdHoc Committee was to recruit physicians to
Seward. He noted that this had been decided in response to a letter of resignation
effective April 1 which was submitted by the physicians at Resurrection Bay Health
Clinic. He recommended the appointment of Councilmembers Krasnansky and Dunham
and Mayor Cripps.
Crane moved to form an AdHoc Committee for the recruitment of physicians; the
motion was se'conded by Dunham.
KRASNANSKY stated that citizens should be included on the committee. Cripps
replied that he was concerned with credentialling which could involve extensive
background investigation. He stated that he was not in favor of expanding the
committee beyond the three sworn members of Council. He agreed, however, that public
input was crucial in the selection process.
WHITE stated that he would like to see a board such as the Ambulance Corps or
the Fire Department involved in the recruitment process.
DUNHAM stated that regardless of how the election turns out, the hospital board
would continue to search for a physician independent of RBHe. She noted that the
current physicians had no objection to having an independent physician in town.
WHITE. asked if there was a code provision which specifically spelled out
recruitment. .
ARVIDSON replied that the code did not address recruitment. This was also not
addressed in the hospital board by-laws. He stated that in the past the board has
appropriately recruited physicians. He added that an AdHoc Committee of the Council
was allowed but not a standing committee.
WHITE stated that the committee should work closely with Dub McElhannon on
recruitment. He asked Crane if he was interested in serving on the AdHoc Committee
since he was the current hospital board representative.
CRANE stated that at the time, he did not think he was interested since there
were complicated issues to address. He stated that he would serve and noted that he
had the community's interest in mind.
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The question was called and Mayor Cripps and Councilmembers Crane, Dunham
and Krasnansky were appointed to the AdHoc Committee for physician recruitment.
B. Status Report - Nash Road Boat Harbor. Port Marketing Director Gates
stated that he was ready to schedule a presentation regarding the cost, advantages and
disadvantages of the proposal submitted by Al Schafer to construct the Nash Road Boat
Harbor. The Clerk was instructed to schedule a work session for February 26 at 7:00
p.m.
e. Claim for damages submitted by Garry LeFlore. Krasnansky moved to
approve the claim submitted by Garry Leflore for damage to his water system at Post-
A-Photo on Fourth Avenue; the motion was seconded by White.
WHITE suggested paying claim and recovering the cost from Summit Paving, the
contractor who caused the damage.
The question was called and the claim was approved for payment in the amount
of $157.82 by unanimous vote.
13. NEW BUSINESS
A. Appointment of Planning & Zoning Commissioners Cripps appointed
Bardarson, Kowalski and Shaw to the Planning Commission for terms to expire in
February, 1995. There was no objection from Council.
~
B. Claims for damages alleging damage caused by power surges as submitted
1. Paul Boas, Sr. Crane moved to pay the damage claim as
submitted; the motion was seconded by Dunham.
WHITE asked the administration to explore the possibility of making insurance
available to those who wished protection against power surges. Schaefermeyer stated that
he had looked at similar arrangements before but would explore the possibility.
BENCARDINO stated that this was a good idea since some folks could not afford
to replace equipment damaged due to power surges.
WHITE stated that he would like to see the city work with the utility customers.
KRASNANSKY stated that the Council had to uphold the Code which stated that
the city was not responsible for damages incurred by the recent storm.
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The question was called and the motion failed by unanimous vote.
2. Charles Forrest. White moved to pay the damage claim as
submitted; the motion was seconded by Dunham and failed by unanimous vote.
3. Michael S. Fulwider. White moved to pay the damage claim
as submitted; the motion was seconded by Dunham and failed by unanimous vote.
4. Julie Ann Harrison. Crane moved to pay the damage claim as
submitted; the motion was seconded by Dunham and failed by unanimous vote.
5. William Mierop. Cripps moved to pay the damage claim as
submitted; the motion was seconded by Dunham and failed by unanimous vote.
C. Perkins Coie invoice for legal services for December, 1991, totalling
$23,358.95.
Krasnansky moved to approve payment of the December, 1991, invoice submitted
by Perkins Coie for legal services; the motion was seconded by Crane. White moved
to postpone payment of the invoice until February 24, 1992; the motion was seconded
by Dunham.
WHITE asked if the invoice could be changed to reflect the rates in the new
contract which became effective January 1. Arvidson objected and stated that he had
written off about $12,000 already.
The question was called on the amendment to postpone payment and carried
with five YES votes and Cripps and Krasnansky voting NO.
D. City Financial Report through December 31, 1991.
CRANE asked for clarification of the report with the FY1993 budget sessions
coming up. He noted that there were added expenses due to the electrical storm damage
and asked for a detailed report showing what the expenses were.
SCHAEFERMEYER reported that the report did not reflect much of the cost of
damage incurred during the December storm. He stated that the administration had
been working on a report to council showing the total damages caused by the power
outage. He reported that the amount was in excess of a half million dollars to the electric
utility. He added that he would report on the impact to the electric fund budget and
cash reserves stating that the cash reserves were essentially depleted. He stated that the
city was still receiving invoices from material providers.
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WHITE noted that the Harbor was low on revenues. Schaefermeyer stated that
revisions were being worked on with the Harbor Department. He noted that he was
concerned that possibly not all harbor revenues were in and that revenues are down,
One reason was that the shiplift tariff has not gone into effect yet. The amounts
budgeted do not reflect the actual revenue received.
14. CITY MANAGER REPORTS
A. Request to schedule a work session to discuss the Fixed Asset Study,
A work session was scheduled for February 20, 1992 at 12:00 noon.
B. Project Update - Port Marketing Director. The Project Status Report
included in the packet was noted.
e. Comments on FYl993 Budget Preparation. Schaefermeyer asked the
Council to consider giving the administration guidelines for the upcoming FY1993 budget
preparation.
He stated that he had spent some time in Anchorage with Kerry Martin working
on tideland acquisitions with the Department of Natural Resources. He reported that on
behalf of S/~MS, he had scheduled a meeting with Governor Hickel, Senator
Sturgulewski and Commissioner Heinze in Anchorage to make a presentation on the Sea
Life Center, but they were stuck in Juneau and could not make it. He stated that Willard
Dunham had accompanied him to Anchorage to promote the Sea Life Center, and they
had a very pr;)ductive meeting with two associates from the Cambridge Seven Group and
a presentation was made to the executive director of Commonwealth North. He reported
that they also met with Kurt McVee, one of the federal trustees on the Oil Spill Trustees
Council, who would be deciding the fate of the Nine Hundred Million Dollar Exxon
settlement. A presentation was also made to the principals of Peratrovich, Nottingham
and Drage who expressed a strong interest in the project.
15. COUNCIL DISCUSSION
BENCARDINO stated that he and Councilmember White were appointed as
observers during lease negotiations between the City and Jim Pruitt. He asked the city
attorney if he had reviewed the draft lease proposal submitted by Pruitt.
ARVIpSON replied that he had briefly reviewed it just this afternoon but would
spend more time reviewing it tomorrow.
BENCARDINO stated that one of the ground rules established during the meeting
was that no attorneys would be involved until the document was well established. He
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felt that the city was acting in bad faith by breaking the ground rules. He added that the
entire process seemed to be at a standstill which was not beneficial to anyone.
WHITE stated that it was his understanding that the lawyers would not be present
at negotiations unless the lawyers for both parties were there. He stated that ground
rules were set at the last meeting and a date had been set to start negotiations on Friday.
He noted that it would take time to negotiate such a complicated lease. He added that
there would be no third party negotiations. He also stated that he had received a letter
from Seward Ship's Chandlery about the lease and it was his concern that negotiations
should be conducted with Schaefermeyer and Gates, not any Councilmember.
CRANE stated that both parties needed to compromise and work towards a goal.
He asked that negotiations be speeded up. CRANE encouraged the citizens of Seward
to vote at the upcoming special election.
SWARTZ also urged the people to get out and vote. She stated that the Seward
Ship's Chandlery lease negotiations had been dragging on for a long time. She added
that jobs of the citizens were at stake and the process should be completed.
KRASNANSKY encouraged everyone to obtain facts about the hospital issue. He
asked for verification on similar legislation being presented by the Council.
ARVIDSON replied that if a matter goes to referendum and the referendum
passes, the Council may not enact similar legislation for two years. If the Council should
repeal Ordinance 658 prior to the election, the election would be canceled and the
Council could not enact similar legislation for two years also.
KRASNANSKY asked if Council was prohibited from sending their concept of
what policy should be to the hospital board through a general agreement.
ARVIDSON replied that it would be similar to enacting the same type of
legislation and he advised against it.
KRASNANSKY stated that he was concerned with certain items which were not
addressed in the code such as how public policy is formed in relation to the hospital. He
mentioned four items which should be taken to the board; recruitment, credentialling,
quality assurance studies and physician review. He felt it was critical to remove the
current medical staff from the credentialling board. He also stated that it would be best
to contract out the quality assurance studies and physician review. He suggested
recruiting Dr. Bigelow, the ER physician, to practice full time in Seward.
DUNHAM asked if Summit Paving was going to repair the damage to the face of
the downtown buildings. Schaefermeyer replied that it would be done when the
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weather permitted, She asked the administration for an estimate on the cost of
"scrapping" the lift at SMIC and what the maintenance cost would be if it were shut
down. She also stated that she would like to see the payroll records of Seward Ship's
Chandlery for the past four to five years,
DUNIiAM stated that people needed to realize that the hospital belongs to the
city and then!~ is a long relationship between the Seward General Hospital Association,
the Community Hospital Board and the City, She asked how much it cost the hospital
in the past four years for physician recruitment. She also asked that the Corps of
Engineers be invited to discuss the Small Boat Harbor expansion and the proposed B
Street Dock. DUNHAM noted that when the airport apron project begins, a large
amount of gravel will be hauled over the landfill access road, and she thanked the
administration for doing what they could to protect children in the area. She expressed
the need to make an alternate road a priority.
CRIPPS commended Lou Nauman and the Nordic Ski Club for their efforts in
putting together winter activities to make wintertime tourism a real thing. He asked the
Parks and Rec Department to report back regarding a designated area in town for
sledding.
16.
CITIZENS' DISCUSSION
LOUIE MARCH, Mile 5.5, Seward, Highway stated that his mother's demands
remained the same regarding her property at Mile 5.5. He stated that his mother
requested Tom Staudenmeier's presence at any forthcoming negotiations. He stated that
he believed in his second amendment rights and reminded everyone that there were "No
Trespassing" signs on the property. March made the following statement for the record
regarding the referendum petition for Resolution 92-001, acquiring land for the
transmission line.
I find it ironic that our petitions are bogged down in the
City Clerk's and Mr. Fred Arvidson's office the past eleven days.
Yet Mr, Crane, petitions were issued and on the street in two days.
I feel there is definite favoritism shown to Mr, Dave Crane by City
Clerk Linda 5, Murphy, I really do. I would like to ask the City
Clerk, or Acting City Clerk Patsy Jones at this time, maybe she can
answer that whenever, I would like to ask her when our petitions
are going to be issued, Maybe you can answer that later,
He noted that he would be making a presentation to the KPB Assembly on
February 18 and that he was flying to Juneau to lobby against the transmission line and
Resolution No. 92-001. He stated that his family was also moving this issue into the
courts.
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TOM ST AUDENMAIER, Eagle River, stated he was speaking on behalf of Mrs.
March. He read the following into the record:
. Section 13,2, application for petition, If an initiative or
referendum is proposed by filing an application with the City Clerk
containing the ordinance or resolution to be initiated or which all
correspondence relating to the petition may be sent, An application
shall be signed by at least ten voters who will sponsor the petition,
He noted that the document he had did not mention a prime or co-sponsor. He
stated that 70 registered voters had sponsored the petition. He stated that he would be
bringing forth a number of referendum and recall petitions in the near future. He
discussed various issues concerning the construction of the transmission line including
the litigation with Irby pending in the Ninth Circuit Court of Appeals. He objected to
the city denying payment for damage claims by the customer. He stated that Chugach
Electric would not issue a letter to the city regarding sale of the electric utility but he was
told that they had been in touch with Schaefermeyer and Diener.
DON WHITMAN, 111 Barwell stated that 62 people at Seward Ship's Chandlery
had been working on the Tustumena, and currently 40 people were working on it. He
noted that the work on the vessel should be completed in about two weeks.
AL LAMBERSON, Old Mill Subdivision, spoke as a Community Hospital
Boardmembel". He stated that physician recruitment was done by a committee of various
people, physicians, boardmembers and citizens of Seward. He reported on physician
recruitment, credentialling and contracting with physicians as it relates to the Board.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
Acting' Clerk JONES stated that a letter had been sent to the sponsor of the
referendum petition on Resolution No. 92-001 notifying him of the need for an alternate
sponsor. She added that of the 70 sponsors on the petition, she was able to certify 15
signatures as valid and once a co-sponsor had signed the petition, she would certify it
if it was within the required time limit.
SCHAEFERMEYER stated that he and Diener had never had any discussions with
Chugach Electric Association regarding sale of the utility.
CRANE stated that he did not receive any special privilege but went by the rules
in filing a petition with the clerk's office. He stated that he did not appreciate the
accusations thrown at him or his wife. He noted that it was hard to be sensitive to Mr.
March's needs when March was not offering anything positive to the community. He
added that it would be a good idea for Mr. March and Mr. Staudenmaier to redirect their
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energy towards a positive goal. He informed Mr. Staudenmaier that if he would bring
someone down from CEA and present some facts, there would then be a basis to work
from. He stated that he was tired of having "potshots" thrown at the Council and the
City.
WHITE stated that it looked like Seward Ship's Chandlery was ahead of schedule
on work on the Tustumena.
SWARTZ stated that she was concerned about the recent fire in the fire
department. She suggested that the alarm system should ring through to the police or
outside as an extra precaution. SWARTZ commended the Planning and Zoning
Commission On doing a good job. She stated, however, that they had given Mr. Popcorn
approval to put his jumping toy in the small boat harbor. She stated that the harbor was
a highly congested, high traffic area and she was concerned with safety of the children.
KRASNANSKY stated that he had read that the hospital was going to seek
credentialling service at one time and he would like to see that process happen, He
urged that the quality assurance be done by an objective source as well.
18.
ADJOURNMENT
I
The meeting was adjourned at 10:19 p,m..
. .
~~
~ ~ /
. ,?ttttC~U-{/;~
Donald W. Cripps
Mayor
City Council Minutes
Volume 27, Page 191
1. CALL TO ORDER
The February 18, 1992, special meeting of the Seward City Council was called to
order at 12:10 p.m. by Mayor Donald W, Cripps.
I
2.
OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
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3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Patricia Jones, Acting City Clerk
ABSENT were:
Beverly Dunham (excused)
4. APPRQV AL OF SPECIAL MEETING AGENDA
Krasnaitsky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Swartz and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
6. RESOLUTIONS
A. Copies having been made available to the public, Cripps noted by title only
~ proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, encouraging passenger cruise ships to use the Port
of Seward.
Swartz moved to approve Resolution No. 92-029, the motion was seconded by
Krasnansky and carried by unanimous vote.
7. CITY MANAGER REPORTS
SCHAEFERMEYER stated that there was a meeting today at 2:00 with the Kenai
Peninsula Marketing Tourism Council and the topic concerning cruise ships would be
discussed,
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GATES reported that he had been watching the cruise ship industry closely since
Whittier had imposed a disembarkation tax of $3.00 each on cruise ship passengers. He
noted that the cruise ship industry was concerned about the tax setting a precedent in
Alaska which could price them out of commission. He added that a number of the cruise
ship lines had expressed that they would pass by Whittier and if Seward could bring
them to its port, the number of cruise ships visiting could double. He noted that the
Chamber of Commerce had played a key role in encouraging the cruise ships to stop in
Seward. Gates stated that increased visits by cruise ships and development of the
proposed Alaska Sea Life Center would bring a real boost to Seward.
CRIPPS stated that someone needed to put pressure on the railroad and the
longshoremen to clean up the mess on the railroad dock.
GATES replied that Dale Lindsey, Seward's representative to the ARR board, had
consistently requested that the railroad clean up, but that nothing had been done yet.
He noted that the community could possibly get together and landscape the area as a
community project.
SCHAEFERMEYER noted that he would be going to Juneau tomorrow.
GATES stated that he would like to begin negotiations between Seward Ship's
Chandlery and designated council observers.
8. COUNCIL DISCUSSION
BENCARDINO stated that he was happy to see the chamber and the city get
behind the cruise ship project.
WHITE noted that if more cruise ships called at the port of Seward, it would be
a real boost for the local economy. He added that some revenues could possibly be
earned for development of the B Street dock.
CRANE stated that this could be a good quality revenue enhancing project. He
added that the community could work together on this and possibly some jobs could be
generated.
SWARTZ stated that she was pleased with the possibility of increased tourism.
She noted that it would be nice to have some sort of facility at the dock for the
community and tourists alike.
KRASNANSKY encouraged the museum to open early and he noted that maybe
the Seward Marine Center could draw tourists into town. He reported briefly on the last
meeting of the Kenai Peninsula Borough Health Care Steering Committee.
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CRIPPS noted that Homer was receiving federal funds to build a Puffin Center.
He stated that he and Councilmember Bencardino had been looking at potential sled
trails and they may have found one. He added that he had been hearing rumors that
certain hospital employees were afraid to speak up and say anything concerning hospital
issues to a Councilmember for fear of retribution. He asked the administration if they
could find someone to investigate this rumor to see if it was true or false if there was no
objection from Council.
SWARTZ stated that nobody's right should be taken away as an employee if they
wanted to speak to the Council.
KRASNANSKY said he had also heard rumors that terminations were going on.
He felt this should be checked into.
WHITE stated that there was a sled hill behind the grade school for little children
and there was one at the high school which ended down by the track.
9. CITIZENS' DISCUSSION
JUOI ANDRIANOFF, 207 Bear Drive, gave the Council some insight on the cruise
ship industry. She stated that she had worked for the past two years as the liaison
between passengers, crew and ports, She stated that there was a definite need for more
phones on the dock. She noted that a lot of places had vendor booths set up near the
dock to show their wares and entice the tourists. She added that it would be beneficial
to cater to the crew and provide possibly bicycles. She said if you make the port fun for
the crew, you achieve free advertising by word of mouth.
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
The Council agreed that the above ideas were good ones. CRANE asked the
administration to check about the status of allowing vendors on the railroad dock or in
the industrial area.
GATES stated that the Alaska Railroad was a key player in the cruise ship
industry. He noted that the railroad viewed the area as a carload-traffic generator and
only allowed carload producing items. He noted that there would be a liability factor
involved and the railroad would not assume responsibility. He suggested creating a park
area not far from the dock where you could channel the visitors to.
SCHAEFERMEYER suggested that maybe the railroad would allow the vendors
to use a railroad car which could be rolled on and rolled off the tracks as needed.
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11.
ADJOURNMENT
The meeting was adjourned at 12:45 p.m.
/! : 1/ / C1
~~/dtiu , ,h
Donald W. Cripps
Mayor
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Patricia JOQ.e~O. ... .1:I''f
Acting CitY'~4)l'~.A
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(City Seal) a E' ~ 1T ': .
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City of Seward; fJf ~\.
February 24, 1992
City Council Minutes
Volume 27, Page 195
1. CALL TO ORDER
The February 24, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Patricia Jones, Acting City Clerk
4.
APPROVAL OF MINUTES
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February 24, 1992
City Council Minutes
Volume 27, Page 196
Page 170 of the 01/29/92 special meeting minutes was amended by inserting the
word "not" after "physician would" in the next to last paragraph; page 171 was amended
by adding "that the hospital was vulnerable to lawsuits because the city owns the
physical plant and the council appoints the hospital board members. Also, money is
allocated to the hospital from the city. She added" to the seventh paragraph.
Krasnansky moved to approve the 01/29/92 special meeting minutes as amended and
the 02/10/92 regular meeting minutes as presented; the motion was seconded by Swartz
and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Bencardino.
Cripps added to the agenda under New Business, Item B., Formal Directive from
the City Council for the City Administration to conduct a formal investigation into
personnel complaints at Seward General Hospital.
The question was calledt and the agenda was approved as amended.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the February 18, 1992, assembly meeting. He stated that he was optimistic that the
borough and City could work together on maintenance of the landfill site road. Under
the proposed agreement, he noted that the borough would maintain the road from Jap
Creek to the transfer site and the city would maintain the road from the Seward
Highway to Jap Creek.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
AL LAMBERSON, Mile 7, Old Mill Subdivision, stated that a bigger meeting room
was needed because six or seven people were standing out in the hall. He quoted from
Ordinance 552 which established the Community Hospital Board. He also cited Section
2.30.115 of the City Code regarding powers and duties of the Community Hospital Board.
He stated that the employee handbook contained a policy for resolving disputes. He
noted the grievance procedures outlined in the hospital employee handbook. He added
that he had mixed feelings about some other group investigating hospital policies. He
noted that it would be good if an investigation were conducted and no violations of
hospital policies were discovered. He stated that according to the code, the Hospital
Board was charged with the responsibility of taking care of any grievances and they
should be allowed to carry out that charge.
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DICK BOYD, 1125 Park Lane, spoke as Chairman of the Community Hospital
Board. He read a letter, which had been distributed to the City Council, objecting to to
the City Council directive to the administration to investigate hospital employee
complaints. Boyd explained that WAMI, (Washington, Alaska, Montana, Idaho) which
was mentioned in the letter, meant a program sponsored by the University of
Washington College of Medicine, encouraging students in medicine to locate in rural
areas. He noted that Dr. Pollard was a preceptor for this program which was a part of
continuing and ongoing recruitment efforts.
GENE SKINNER, 418 Second, spoke as a board member of the hospital. He
stated that in November and December both groups had agreed to meet in a session but
the meeting wa.s never held. He noted that perhaps the current situation might not have
happened if communication had been opened between the council and the board. He
stated that this was a situation which was becoming similar to a recall of four members
back when the school board hired a new administrator who was disciplinary. He stated
that three teachers had objected to his method and were fired. He noted that he had
received a call about hospital issues but the party would not give her name and hung up,
so if it was reported that he (Skinner) had received any complaints, he wanted it to be
clear that the person did not identify herself. He stated that he hoped the council and
the board could bury the hatchets and get on with the work they were appointed or
elected to do.
TOM HUMPHREY, P. O. Box 92543, Anchorage, President of Chugach Electric
Association Board of Directors, stated that he was not here in an official capacity, He
stated that he was letting the council know that the door was open to dialogue between
Seward and CEA if that was what was desired.
8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by Bencardino and carried by unanimous vote. The following actions
were taken:
A. Election Judges for the March 17, 1992, special election were appointed;
B. Taxable Sales Report, 4th Quarter, 1991, was noted for information;
e. Request to allow Major Marine Tours to construct an extension of E Float
in the Small Boat Harbor, was approved;
D.
ABCB notification of applications for renewal of liquor licenses as submitted
by NEW SEWARD HOTEUSALOON, PIONEER BAR, TONY'S BAR and
YUKON LIQUOR STORE were noted and the clerk was instructed to issue
letters of non-objection to their renewal. The Clerk was instructed to issue
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a letter requesting a 30 day extension on application for renewal of liquor
licenses filed by MARINA'S RESTAURANT and NiKO'S NIGHT CLUB; and
E. Application for games of chance and skill permit as submitted by the 1988
NEW BEGINNINGS CLUB, was noted for information.
9. PUBLIC HEARINGS
None.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Presentation of FY1991 Audit by KPMG Peat Marwick.
Finance Director Gifford gave an overview of the audit for fiscal year 1991. He
briefed the council on general fund revenues and expenditures by comparing FY 1990 &
FY 1991. He noted that the debt service had increased due to bonding for street and
sidewalk improvements. He added that the electric utility had increased its net retained
earnings, and the water and sewer revenues were the largest in residential areas. He
stated that the largest revenue for the harbor fund was moorage and the largest
expenditure was depreciation. Gifford introduced Mike Flaa and Vern Johnson from
KPMG Peat Marwick. Flaa explained the audit process to the council. He stated that in
order to detect whether or not any errors are present in the system, they perform a study
of internal controls to insure that the design is appropriate and that it is functioning as
designed. He noted that the financial statements of the City had been fairly presented
by the finance department. He added that the City had changed the method of
reporting for SMIC, that it was now done through the Harbor Enterprise Fund. He
reported that there were no significant audit adjustments and no disagreements with
management on any issues. He added that they were not aware that the administration
had consulted any other accounting finns. He commended the finance department for
being ready for the audit by September 16 which was record time for the City of Seward.
He stated that the compliance audit noted no issues of non-compliance, and no problems
were found with internal controls.
B. Presentation by Chamber of Commerce - Funding. Executive Director
Carpenter was out of town and no presentation was made. A written report was
contained in the council agenda packet.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
None.
B.
Ordinances for Public Hearing & Enactment
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1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 8.15.610, employee campgrounds.
Notice of public hearing as posted and published as required by law was noted
and the public hearing was opened. Noone spoke in order to be heard and the public
hearing was closed.
Crane moved to enact Ordinance 92-04; the motion was seconded by White and
carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, supporting the University of Alaska's budget request
to the State Legislature for items beneficial to IMS and the
city of Seward.
Swartz moved to approve Resolution No. 92-030; the motion was seconded by
Krasnansky.
SCHAEFERMEYER stated that the University of Alaska had requested one million
dollars this year for their project and development of the B Street Dock. He noted that
$320,000 of that money was for sailing days on board the Alpha Helix and about 50
percent of that money was for salaries which in turn get expended in the community.
He stated that they had put in a request to fund a full time marine advisory program
agent and a full time marine education specialist at the KM Ray Building, He stated that
this was a popular program in the summer months and well worth city support.
The question was called and the motion carried by unanimous vote.
The meeting was recessed at 8:30 p.m. and reconvened at 8:40 p.m.
12. UNFINISHED BUSINESS
A. Perkins Coie invoice for legal services for December, 1991, totalling
$23,358.95.
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Jones noted that there was a motion on the floor for approval of payment of the
invoice, action having been postponed from the February 10 meeting. The question was
called and the motion was approved by unanimous vote.
13. NEW BUSINESS
A.
Claims for damages alleging damage caused by power surges as submitted
~
1. Irvin Campbell. Crane moved to pay the damage claim as
submitted; the motion was seconded by Dunham and failed by unanimous vote.
2. George Kontra. White moved to pay the damage claim as
submitted; the motion was seconded by Bencardino and failed by unanimous vote.
3. Mavis Roberts. White moved to pay the damage claim as
submitted; the motion was seconded by Dunham and failed by unanimous vote.
4. Gloria Sears. Crane moved to pay the damage claim as
submitted; the motion was seconded by Swartz and failed by unanimous vote.
B.
Hospital.
Personnel Investigation into employee complaints at Seward General
Krasnansky moved to direct the City Administration to investigate personnel
complaints by employees of Seward General Hospital; the motion was seconded by
Dunham.
DUNHAM stated that a citizen had called and said she was a patient of a doctor
at Resurrection Bay Health Clinic. She noted that the patient told her that a doctor had
shown her the "hit list" of those hospital employees to be fired. She noted that this
person agreed to step forward and verify the existence of the "hit list." DUNHAM
reiterated that she felt that the community was being held hostage by the doctors, and
that there are employees at the hospital who will be fired if some people have their way.
She stated that a number of people have come forward in the past with their concerns
about hospital problems. She noted that Jonathan Sewall came forward, David Hilton
had that stated Brim had not done what they promised and Gail Sela had expressed her
views at a prior meeting, She suggested that the board and council meet in executive
session to iron out their differences if that was allowed. She apologized for a fellow
councilmember who had berated the council to the hospital board. She added that the
City Council had an obligation to show interest in what happens at the hospital.
KRASNANSKY stated that the Hospital Board was not sensitive to the needs of
the hospital employees. He noted that the long term employees were the ones who have
kept things running. He stated that he did not see why the employees should have to
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go through the grievance procedure. He added that the main problem was that the
employees could not get past the management to address the board. He reported that
a former nursing director had torn up an incident report. He stated that he had talked
to the attorney general about the investigation being done by an independent agency.
He asked the council to decide whether to conduct the investigation in-house or have an
independent agency do it.
CRANE spoke as hospital representative and liaison between the Hospital Board
and City Council. He stated that when he was appointed, he thought that the council
and board would work together, but that had not happened. He noted that he had been
the hospital representative for five to six months, and during that time he had asked for
directive frOIl) the council but never received any. He stated that he was left in a tough
situation when the council did not utilize him to communicate with the board. He noted
that council had, instead, decided to go around or over his head to address issues of
concern. He stated that council was elected to do the bidding of the people. He noted
that he went through the proper process in seeking a referendum on Ordinance 658, and
it was now up to the people to decide on the issue.
CRANE added that during the last meeting, proper procedures were not followed
and this had caused problems between the administration, council, hospital board and
the community. He cited several charter and city code provisions regarding the powers
and duties of the council and mayor, policy making powers, and composition of the
council. He stated that the council had disregarded the code and charter, and it had to
stop. He noted that the mayor has no directive power individually, and he should have
had four council votes before asking the administration to take action on an item. He
also mentioned that the Council was limited to legislative powers and should not perform
any adminisb'ative function. He stated that City of Seward employees have to follow the
grievance procedure and hospital employees should do the same. Any employee who
has a personnel problem should go through the proper grievance procedure and put the
grievance in writing, and if the proper procedure is not followed, the employee would
be subject to~ discipline. Therefore, the City Council should not make any judgment
decisions based on hearsay. He noted that there was no continuity between the hospital
board and council. He added that council should not have done anything regarding
personnel issues of hospital employees until after the election on March 17. He
informed the council that it was unethical to grant special treatment to one group of
employees, He encouraged the council to read the section on liability in the green
elected official's handbook. He stated that, in the future, he hoped everyone would act
in good faith and foliow proper procedures when conducting business. His recommen-
dation was that the city administration only take action on those items which are
properly directed by four votes of the City Councilor by passage of a resolution or ordi-
nance.
DUNHAM stated that the hospital had been treated differently in the past. She
said they have been told they were city employees when, in fact, they are not actually
city employees. She noted that when two employees of the hospital became council-
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members, they could not vote on hospital issues. She added that the hospital is a part
of the city and the members of the Community Hospital Board are appointed by the City
Council. She stated that an atmosphere of distrust had been created because hospital
employees could run for council. She noted that the council needed to rely on the advice
of the attorney to inform them whether their actions were legal or illegal.
KRASNANSKY spoke in rebuttal to a statement made by Crane, He noted that
Crane had said he would provide a written report on Hospital Board meetings but
he had not seen one yet. He also stated that city employees have to go through the
grievance procedure as outlined in Title 3 of the City Code Book because it is the law.
He added that the hospital has an employee handbook but it is not binding by law. He
did not see why hospital employees should trust people who do not trust them.
SWARTZ stated that hospital problems had come up before she ran for council.
She noted that the ongoing problems of the hospital did not warrant the issuance of a
letter to council containing sarcastic illusions. She added that council was being asked
to take the blame for ongoing hospital problems. Swartz stated that each councilmember
tries to do what is best for the community since they are all citizens.
WHITE asked if it was legal to have the administration conduct an investigation
into employee complaints at Seward General Hospital.
ARVIDSON replied that he had learned about the directive following the special
meeting of the 18th. He noted that council does discuss and direct during council
discussion. He stated that a notice was sent out to notify the public of an added agenda
item for the current meeting. The procedure problem was cured by putting the item on
the agenda for action by the council. He noted that there was no provision in the code
that addressed the issue of investigating hospital employees by the City Administration.
He added that the best result legally would be for the council and the hospital board to
jointly sponsor the investigation together. He noted that the last thing needed was
litigation abo';lt who has what power to do what.
WHITE stated that his personal recommendation was to vote no on this issue, but
he added that he would like to meet with the Hospital Board to go through proper
channels on this issue.
In answer to a question from DUNHAM, ARVIDSON stated that the Council and
Hospital Board could not meet in executive session to discuss this issue. It would be best
to meet in a work session on a positive note to resolve the issue. He added that it would
be a good idea for both bodies to bring in an objective third party to perform the
investiga tion.
KRASNANSKY suggested postponing action on the issue until more information
could be obtained from the attorney general.
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ARVIDSON replied that the attorney general usually did not get involved unless
criminal activity was present.
BENCARDINO suggested a joint session with the Hospital Board within the next
few days to settle the issue. He noted that the board and some Councilmembers feel
feeling that this could be a repeat of an incident in the past and he did not want to see
the town torn up.
CRIPPS reviewed the sequence of events leading up to the investigation. He
stated that he had a call from a hospital employee who made the allegation about feeling
constrained about speaking out on certain hospital issues, He noted that he had then
asked the administration, with consent of the council, if they could look into this to find
out what was going on and whether there was any truth to it.
CRANE agreed that the issue had come up during discussion, but he noted that
no action should have been taken at that time since it was not on the agenda, no formal
vote was taken and the majority of the council had not formally agreed to take any
action. He stated that the hospital board had asked council to meet with them but they
never received an answer. In answer to earlier remarks from Councilmember
Krasnansky, Crane stated that he had agreed to provide a written report to the council
about the hospital board. However, he had asked for direction from the council and
never received any, He also noted that Krasnansky had never asked him for a report
until after the referendum was started. He stated that he just wanted to see the council
and the hospital board work together towards a positive solution.
CRIPPS asked the Council to take care of the motion which was on the floor and
pursue discussion later in the meeting.
BENCARDINO asked for a 10 minute recess,
The meeting was recessed at 9:37 p.m. and reconvened at 9:47 p.m.
BENCARDINO moved to postpone action until February 26 at a special meeting
to be held at 7:00 p.m. between the City Council and the Hospital Board; the motion
was seconded by Dunham and carried by unanimous vote.
BENCARDINO moved to ask the city and hospital attorneys whether an
executive session could be held during the special meeting to discuss personnel
matters; the motion was seconded by Swartz; and carried by unanimous vote.
14. CITY MANAGER REPORTS
A.
Report on Small Boat Harbor Expansion and B Street Dock.
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SCHAEFERMEYER informed the council that he would like to schedule a work
session between the 15th and 30th of March with the Corps of Engineers to conduct a
reconnaissance study on the proposed project.
In answer to a request by DUNHAM, SCHAEFERMEYER gave a status report on
what it would cost the city to maintain the syncrolift at minimum cost if it were taken
out of service. He also stated that the administration had investigated the possibility of
providing some insurance protection to utility customers during power outages. He
noted that the finance director was currently discussing the issue with the city's insurance
carrier and a report would be forthcoming in the future. In answer to a request from
CRIPPS and BENCARDINO, SCHAEFERMEYER reported on the status of the proposed
sledding hill. He proposed looking further into the possibility of providing a sledding
hill and presenting bVdgetary costs for staffing, insurance, maintenance, etc. He stated
that he would bring this back to council at its meeting of March 9.
The clerk was instructed to reschedule the work session on the proposed Nash
Road Harbor for Monday, March 2, at 7:00 p.m.
SCHAEFERMEYER reported on his recent Juneau trip with Councilmember
Bencardino. He noted that he had met with Representative Kay Brown in regard to the
new ADA regulations for the handicapped and disabled, and he stated that there may
be funding available to meet the new regulations. He also met with Ted Mala, Health
& Social Services, who was circumspect and not committing about funding. He reported
that if HESS would communicate its priorities to the governor and his staff, there might
be a chance for hospital funding. He noted that Mala had suggested co-relocation of
Wesley Rehab Center and Seward General Hospital. He added that Mala had requested
that he or his staff be invited to a meeting between the two boards regarding the funding
issue. He reported that he had also met with Mr. Ayers, Alaska Marine Highway system,
and he encouraged Seward to make the most of the schedule for the Tustumena. Ayers
conveyed that the community should be thankful because Seward would be a primary
feed between Prince William Sound and the Kenai Peninsula. Ayers also suggested that
the community put together a tourism package to promote the Seward-Valdez run this
summer. In regard to the B Street Dock, Schaefermeyer stated that the project needed
to be worked on from the point of economics, and there would be a need to sell
Commissioner Turpin on that approach. He added that community support would help,
especially if some letters were written, regarding other legislative priorities including the
B St Dock.
15. COUNCIL DISCUSSION
SWARTZ commented on the ferry runs between Seward and Valdez. She noted
that it would be beneficial to promote Seward as a tourist destination. She thanked the
street department for a job well done on snowplowing this season noting that she had
received many positive calls.
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KRASNANSKY reported that he had attended a meeting of the Borough Health
Care Advisory Council and they had discussed a health insurance package for Borough
residents who were uninsured. He added that the Steering Committee had defined its
goals, structure and responsibilities, On the 20th, he attended a teleconference to hire
a secretary to take minutes of meetings and perform related clerical duties.
DUNHAM asked for mothballing figures on the syncrolift in case things don't
work out with, the current operator or another operator, and she figured it would cost
the city whether the lift was operating or not. She stated that business volume could
increase if the M/V Bartlett seeks repairs in Seward. .
BENCARDINO stated that something needed to be done about the sound system.
He asked for a new microphone for the city manager or whatever needs to be done to
ensure that everyone is heard. He noted that there was some renewed interest in the
possibility of building a federal prison in Seward. He stated that he and Schaefermeyer
had met with Frank Pruitt and they had talked to Don Young. He thanked council for
agreeing to work on the hospital issue together.
WHITE asked about the handicap access issue. Schaefermeyer stated he had
spoken to Repl'esentative Kay Brown about ADA funding, and if adopted and funded,
Seward could hope for some funding for improvements. WHITE asked if the figures on
the Harbor fund had been straightened out and if the power outage problem had been
worked on. Schaefermeyer replied that both of these issues were being worked on and
he should have a report to council at its next meeting. White stated that "Mothballing"
the syncrolift was an inappropriate thing to even think about since there was quite a bit
of interest in the industry.
CRANE apologized if he seemed like he was shouting during his earlier
discussion. He asked if Whittier had changed its mind concerning the disembarkation
tax for cruise ships. Gates replied that he had attended a meeting but did not know the
outcome. Crane asked about the status of the 4th Avenue Dock. Singleton replied that
it was being worked on, He stated that four sections had been stripped and two sections
on the west end were completed with one more to be done this week. He added that
there was some additional damage done to the dock from the high winds the night
before.
CRANE stated that he had received some comments from citizens that the City
was plowing the wrong way on the one way street at the Bear Mountain Apartments.
He noted that the city was doing a good job on the snow berms with all the heavy
snowfall lately. In answer to a question about the contract with the Senior Center,
Schaefermeyer stated that he would bring the amendments back to council at the next
meeting. CRANE thanked Seward Ship's Chandlery for a job well done on the
Tustumena. He thanked the finance department for the report by Peat Marwick and for
the monthly attorney reports. He stated that he was concerned about claims still coming
in for damages from the electric power outage in December.
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CRIPPS commented on a job well done on the 1991 audit. He asked about
insurance for damage caused by the electric outage. Schaefermeyer replied that he had
discussed the prospect of the availability of insurance with Corroon & Willis and that the
deductible was very large. He noted there had been discussion with other utilities as to
how they handle the damage claims, and he discovered that some do not pay for
weather related outages but if others had insurance, there was a high deductible and
they were self insured. CRIPPS asked how the Shaker III exercise was coming along and
Schaefermeyer replied that everything was set for March 10-12.
16. CITIZENS' DISCUSSION
JOHN BURCKHARDT, Woodland Hills, stated that the recent actions concerning
the hospital issue were counterproductive to the community. He noted that the hospital
employees handbook was modeled after the city personnel code. He stated that it seems
like people are really mad at the doctors and taking it out on the hospital and administra-
tion. He rep<;>rted that when he was chairman of the Hospital Board, the only
councilmember who sat down and was interested in the board was Ms. Dunham. He
stated that a thorough background check had been done on the previous hospital
administrator by Councilmember Simutis and she had been highly recommended. He
stated that the main purpose for putting the hospital under the city in 1985 was so the
employees would be eligible for PERS. He noted that now there were many problems
between the city and the hospital. He stated that the doctors work as a private business
and even if the city runs the hospital the doctors cannot be fired. He added that Brim
had relayed that they would not want to run the hospital any longer if the city was in
charge. He reported that Brim has a good track record of running rural hospitals. He
stated that it was a positive step forward for the Council and the Hospital Board to meet
in a joint session.
LOUIE MARCH, Mile 5.5 Seward Highway, spoke in objection to the high
attorney fees the city has paid to Mr. Arvidson over the past five years.
He compared {>.rvidson to the late "Jesse James."
CRANE called for a point of order and asked the Chairman to have Mr. March
refrain from making slanderous remarks about the attorney.
CRIPPS allowed March to continue but instructed him to refrain from using
personal references.
MARCH objected to the interruption stating that this was a violation of his first
amendment right to free speech. He stated that his family was being harassed by those
who were working on the transmission line project. He also stated the future meetings
should be conducted in bigger room such as A VTEC since there were people standing
in the hall.
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TOM ST AUDENMAIER, Eagle River, spoke representing Mrs. Helen March. He
stated that he would be issuing a recall petition for six councilmembers for extortion
concerning the electric utility, He also stated he would be submitting petitions to set
aside the March 17 vote on Ordinance 658 and to stop construction of the transmission
line. He stated that Mr. Humphrey from Chugach Electric Association, was in the
building. He added that there were over 550 utility customers outside the city who had
to pay high rates but were not represented since they lived outside the city.
BRUCE SIEMINSKI, thanked Crane for looking out for everyone's equal right to
vote. He stated that the one percent tax voted on years ago was meant for the hospital
and people were not complaining about the tax.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
DUNHAM stated to Burckhardt that her decision was based in part on some
hospital issues which they had discussed. She stated that any doctor who was recruited
should be independent of the clinic. DUNHAM also stated that the only person ever
recalled in the room was STAUOENMAIER from the electric utility.
KRASNANSKY responded to Burckhardt's comments. He stated that he had
moved to Seward in 1982 and sought a job at Seward General HospitaL He noted that
Seward was the ideal place for what he envisioned for his family. He stated that he was
a victim of sexual discrimination when he first applied at the hospital but he did not give
up because he wanted to stay in Seward and work at the hospital. He stated that after
six years at the hospital, things had gotten bad because the people who ran the hospital
took a different direction. He felt that he had an obligation to tell the people the way
it really was, .
CRANE stated that he respected March's rights to the first amendment, but
making slanderous remarks was not the way to do it. He told him that he respected
other people's rights and March should respect other people and their rights. He added
that the remarks made to the attorney, the administration and the clerk in the recent past
were slanderous.
18. ADJOURNMENT
The meeting was adjourned at 11:07 p.m.
/~~?/4{
~ ~ ;h-y?
Donald W. Cripps '-'
Mayor
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February 26, 1992
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Volume 27, Page 208
1. CALL TO ORDER
The February 26, 1992, special meeting of the Seward City Council was called to
order at 7:10 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
Richard O. Boyd
Al Lamberson
Ann Wright
Joan 1. Clemens
E. G. Skinner
comprising a quorum of the City Council and a quorum of the Community Hospital
Board; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Dub McElhannon, Hospital Administrator
Patricia Jones, Acting City Clerk
ABSENT were:
Debra Caldera (excused)
Jayne Noll (unexcused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Dunham and the agenda was approved without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
6. SPECIAL ITEMS
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A.
Formal investigation into personnel complaints by employees of Seward
General Hospital.
Cripps noted that there was a motion on the floor to direct the city administra-
tion to investigate personnel complaints of employees at Seward General Hospital.
WHITE stated that he would like the investigation to be done with the hospital
board taking a lead role. He noted that it was time to set aside hard feelings and
personal differences and bury the hatchet. He added that he looked forward to working
together and moving forward.
DUNHAM agreed and noted that someone independent, preferably from out of
town and not an attorney, should conduct an investigation. She stated that names of
employees should be kept confidential during the investigation.
SKINNER suggested contacting Providence Hospital to see if someone there could
perform the investigation since they would be familiar with the medical field.
DUNHAM suggested that possibly a former labor department retired employee
could devote more time to this task.
SWARTZ concurred with having the investigation done by an independent
person.
KRASNANSKY concurred and suggested that someone from the National Labor
Relations Board would be a good possibility. He noted that a budget would probably
need to be prepared with the cost to be split between the council and the board.
CRANE stated t.hat it should be clarified whether or not there was a need for the
investigation. He asked the council and board if they were going to forego the grievance
procedure, He was concerned that this could set a precedent that could create problems
and cost money in the future. CRANE asked MC ELHANNON if he had received any
formal written complaints about employee problems.
MC ELHANNON replied that no grievances had been presented, although the
director of nurses had received one complaint concerning nursing problems only.
BOYD stated that the board had not received any written complaint but he had received
one phone call personally.
CRANE noted that he did not want to set a precedent and forego the city code
when it was possible that hospital employees could become city employees in the future,
He stated that this would need serious consideration, and he asked Yanez what the
procedure was if a city employee went straight to council without following the grievance
procedure.
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YANEZ answered that, if an employee went over his/her supervisor's head, that
person would be subject to disciplinary measures.
LAMBERSON stated that no employee had talked to him about unfair labor
practices, and he agreed with the need for an independent investigation.
DUNHAM talked about the alleged hit list which was reported to be in the
possession of the doctors. She expressed the need to know whether or not there was one
and stated that the matter should be put to rest once it was resolved.
BOYD agreed, stating that the council and the hospital board should meet more
often, hopefully quarterly. He noted that, if the hospital board authorized the
investigation, it would take the onus off the city in case employees came under the city
later.
BENCARDINO stated that nothing could be done about the hit list if it came from
the doctors. He suggested that the investigator find out where the list came from.
KRASNANSKY stated that, according to the hospital bylaws, the medical staff has
significant power at the hospital. Discussion ensued about whether or not the doctors
could be investigated. KRASNANSKY noted that the hospital board was responsible for
directing physicians in their responsibilities as they relate to the hospital.
SKINNER stated that he had received a call about the hit list, and he requested
a copy of it but the caller informed him that a patient had it. He asked if the patient
would be willing to provide a list of the names and was told that it would be available
only if it should end up in court. He agreed that an independent person should
conduct the investigation.
DUNHAM replied that the person she spoke to was willing to come forward with
the hit list. She added that some complaints had also been received about the doctors'
treatment of hospital employees.
WHITE stated that the hit list had no bearing on the issue since hiring and firing
was done by the hospital administrator, not the doctors.
KRASNANSKY relayed the knowledge that one physician had threatened and
reported one nurse to the board in an effort to make that person's life difficult.
CRIPPS noted that an independent investigator would pursue those items relevant
to the issue and report on whether or not the rumored allegations were true or not.
CRANE agreed for the need to have an independent, third party perform the
investigation. He suggested contacting the state ombudsman.
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CRIPPS stated that the hospital board should make the recommendation with
council COnCill1'ence.
LAMBERSON agreed that someone from the labor department would be
appropriate since it was a labor decision. He asked if, since the motion was a council
motion, it could be taken care of so the board could make a motion.
SCHAEFERMEYER noted that he had talked to Duncan Fowler, the state
ombudsman. He stated that they generally do not perform special investigations, but
they had expressed interest in contracting with the city on an annual basis to provide
ombudsman services. He noted that they would be willing to investigate the matter and
that there would be a charge of approximately $3,000 for the service.
The question was called and the motion failed by unanimous vote.
Crane moved to recommend to the hospital board that they investigate alleged
personnel complaints by employees of Seward General Hospital, to share the cost of
the investigation between the city and the hospital and to hire a mutually agreeable
investigator; the motion was seconded by Dunham and carried by unanimous vote of
the council.
Lamberson moved that the hospital board authorize an investigation into
verifying or refuting numerous complaints received by councilmembers pertaining to
improper or questionable management/personnel practices that have been reported,
such complaints that may have included directives from management prohibiting
employee communications with city councilmembers and hospital boardmembers,
threats of retaliation against employees and the existence of a hit list of hospital
employees or other alleged actions by the hospital administration which were not in
accordance with personnel policies of the hospital or the Federal Fair Labor Standards
Act; the cost shall be shared by the council and the board for not to exceed $3,000,
initially, and a mutually agreed upon investigator shall be hired in a timely manner;
the motion was seconded by Skinner.
The council and board discussed using various individuals and agencies to perform
the investigation.
CRANE stated that it was a good idea to hire the state ombudsman because a
close record would be kept of the entire investigation.
The question was called and the motion carried by unanimous vote of the board.
7.
CITY MANAGER REPORTS
None
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8. COUNCIUBOARD DISCUSSION
LAMB~RSON stated that everyone agreed that someone with background on
labor and personnel issues should be contacted by the city administration.
SCHAI;FERMEYER suggested that Councilmember Crane and Chairman Boyd
meet with him and Yanez to locate an investigator, as some names had been recommend-
ed by Mr. Fowler. He added that it was appropriate to have one councilmember and one
hospital boardmember present to seek an investigator.
CRANE suggested selecting someone else since he was going to be gone for three
weeks. Councilmember Krasnansky and Chairman Boyd were chosen to work with the
administration and a meeting was set for 8:30 a.m. on February 27th.
WHITE stated that the council and hospital board should have a regularly
scheduled quarterly meeting.
The council and the hospital board agreed to meet the first Tuesday of each
quarter at 7:00 p.m.
KRASNANSKY stated that recently held meetings were poor and unproductive,
He apologized for any angry actions he had made recently at those meetings. He agreed
that decorum should be used and the council should adhere to the code.
CRANE stated that he wanted to be utilized as the council/hospitalliaison in the
future so problems would not come up so often.
SKINNER thanked the council for letting the board get on with its business.
SWARTZ noted that she was glad to see progress in a positive direction. She felt
that the council and board had opened up and had some. good dialogue.
BOYD stated that the board felt hurt and ignored when they were not consulted,
and they also thought that the council had no confidence in the board. He encouraged
the council to utilize ~e board when hospital issues surface.
DUNHAM asked Dwayne Atwood to publish an article pertaining to the
relationship between the hospital board, hospital association, city council and the city.
WRIGHT thanked the council for meeting with the board. She expressed her
appreciation to Mr. Crane for serving as liaison.
CRIPPS stated that the council had an internal discussion on policies and
procedures. He noted that the administration provided the work while council gave
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guidance. He added that an improvement had been made with everyone present
seeking to achieve the same goal.
9. CITIZENS' DISCUSSION
JAMES KNUDSON, 308 Adams, stated that local, unemployed residents should
be considered when choosing an investigator. He added that it was proper to see if there
was any truth to or proof of the rumors, then once the facts were obtained, the matter
should be submitted to the NLRB.
10. COUNCIl/BOARD AND ADMINISTRATION RESPONSE TO CITIZENS'
COMMENTS
11. ADJOURNMENT
The meeting was adjourned at 8:45 p.m.
C~ -,' -V: ,
d/c:)vlJ~t~~ _
t50nald W. Cripps
Mayor
{>~,.. .t"'--l ~ - ~~
Patricia J. Jones
Actin
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. ~EAL
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Richard O. Boy
Chairman
City of Seward, Alaska
March 9, 1992
City Council Minutes
Volume 27, Page 213
1. CALL TO ORDER
The March 9, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
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3. ROLL CALL
There were present:
qonald W. Cripps, presiding, and
L,ouis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4. APPROVAL OF MINUTES
Bencardino moved to approve the February 24,1992, regular meeting minutes and
the February 18 and 26, 1992, special meeting minutes as presented; the motion was
seconded by Crane and carried without objection.
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Bencardino.
Dunham requested the addition of the following two presentations under Item 10
(Presentations with Prior Notice):
SAAMS Update by Willard Dunham and Sharon Anderson, and
Polar Bear Jumpoff Festival Update by Donald Sutherland.
Schaefermeyer requested an Executive Session to discuss negotiating strategy
regarding the Seward Ships Chandlery long term lease at SMIe.
Dunhalri moved to meet in executive session immediately following the close of
regular business in order to discuss strategies for negotiating a long term SMIC lease
with Seward Ships Chandlery; the motion was seconded by Swartz and carried by
unanimous vote.
The question, was called, and the agenda was approved as amended by
unanimous vote of the Council.
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6.
BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the March 3,1992, assembly meeting.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
Sam Young, Mile 6.8, Seward Highway, spoke in support of the construction of
the Nash Road Small Boat Harbor.
Louie March, Mile 5.5, Seward Highway, objected to "excessive" attorney fees and
suggested that the Council consider hiring a staff attorney.
Don Whibnan, 111 Barwell Street, spoke in support of the Nash Road Small Boat
Harbor project.
Bruce Sieminski, Jesse Lee Heights Subdivision, spoke in support of the Nash
Road Small Boat Harbor project.
8. APPROV At OF CONSENT CALENDAR
Schaefermeyer requested the deletion of Item E (Perkins Coie invoice for legal
services). White requested that Item C (Resolution No. 92-033) be moved to the Regular
Meeting Agenda as Item 11-C-5.
Crane moved to approve the Consent Calendar as amended; the motion was
seconded by Dunham and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-031, amending the Senior/Community Center Use
Agreement, was approved;
B. Resolution No. 92-032, supporting SB 301 requiring fiscal notes for bills and
resolutions, was approved;
C. Resolution No. 92-033 was moved to the regular meeting agenda and
approved;
D. Jamin, Ebell, Bolger & Gentry invoice for legal services totalling $207.00 was
approved for payment;
E.
Perkins Coie invoice for legal services was deleted from the agenda;
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F. Applications for the renewal of liquor licenses as filed by:
MARINA'S RESTAURANT
NIKO'S NIGHT CLUB
GATEWAY TEXACO LIQUOR & FOODMART
HARBOR DINNER CLUB
YUKON LIQUOR STORE
were noted, and the Clerk was instructed to issue a letter of non-objection to the ABCB;
G. An informational report regarding power outage costs was noted for
information;
H. A revised Harbor Fund Quarterly Financial Statement was noted for
information;
I. Application for Games of Chance & Skill permit as submitted by Seward
Polar Bear Jurrtpoff Festival, Inc., was noted for information; and
J. An informational report on purchase orders totalling between $5,000 and
$10,000 issued through February 13,1992, was noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. WAYNE CARPENTER, Executive Director of the Seward Chamber of
Commerce, urged the Council to approve Resolution No. 92-035, authorizing a $30,000
contribution to the Chamber of Commerce advertising fund. He noted that all of the
monies requested represented a direct pass through of funds for the advertising effort
and would not be used for chamber operations or salaries.
Swartz questioned the $5,000 increase over the 1991 donation. Carpenter
responded that the extra funds would be used to reach additional markets.
In response to a question from White, Carpenter stated that the two large ticket
items which were funded last year and eliminated in this year's plan were one-time only
projects (printing of brochures and the Sea Grant Harbor interpretive project) which were
not needed this year.
Bencardino stated that he would prefer considering this donation when the
Council reviewed the upcoming budget. Carpenter stated that many of the publications
targeted for the city's advertising effort required advanced payment, and the money was
needed before the beginning of the tourist season.
Crane noted that this was a revenue enhancing project which would generate sales
tax and business revenues for the community. In response to his question regarding the
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source of the funds, Schaefermeyer stated that he was recommending a $30,000
appropriation from the General Fund-Fund Balance to the FY 1992 budget. He stated
that he would also recommend budgeting funds for this effort in the FY 1993 budget to
avoid the need for a budget amendment next year.
Dunham noted the upcoming 50th anniversary celebration for the Alaska Highway
and the 40th anniversary celebration for the Seward Highway and added that the influx
of increased numbers of tourists into the state this season could mean a very profitable
and busy year for local businesses.
B. SHARON ANDERSON and WILLARD DUNHAM, representing the
Seward Association for the Advancement of Marine Science, briefly reviewed the history
of the SAAMS organization and its efforts to establish the Alaska Sea Life Center in
Seward. They also presented a slide presentation prepared by design architects
Cambridge Seven. Anderson noted that the organization had raised in excess of $113,000
in cash contributions and over $2 Million in in-kind contributions.
C. DON SUTHERLAND, representing the Polar Bear Jumpoff Festival, gave
Council an overview of the 1992 festival and stated that the organizers were already busy
planning for next year's event. He asked the Council to consider making a $3,000 grant
to the organization for production of a presentation tape.
RECESS:
The meeting was recessed at 8:50 p.m. and reconvened at 9:00 p.m.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
A. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code Chapter 7.05, acquisi-
tion and disposal of real property.
Crane moved to introduce Ordinance No. 92-05; the motion was seconded by
Dunham and carried by unanimous vote. Public hearing was scheduled for March 23,
1992.
B. Ordinances for Public Hearing & Enactment None
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
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A . resolution of the City Council of the City of Seward,
Alaska, Cl.uthorizing an application for a loan from the
Alaska Clean Water Fund to plan, design and construct
sewers to serve Dairy Hill.
Krasnansky moved to approve Resolution No. 92-034; the motion was seconded
by Swartz and carried by unanimous vote of the Council.
White moved to authorize the City Clerk to schedule a public hearing on the
necessity of creating a Dairy Hill Sewer District; the motion was seconded by Crane
and carried by unanimous vote.
2.. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A resolution of the City Council of the City of Seward,
Alaska, authorizing a contribution to the Seward Chamber
of Commerce tourism advertising fund and appropriating
funds.
Krasnansky moved to approve Resolution No. 92-035; the motion was seconded
by Swartz.
Crane noted that, as the owner of a local gift shop which catered to the tourist
market, he might have a conflict of interest with regards to this resolution. Cripps ruled
that no conflict existed and instructed Crane to vote on the motion.
The question was called, and the resolution was approved by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A resolution of the City Council of the City of Seward,
Alaska, supporting the Nash Road Small Boat Harbor.
White moved to approve Resolution No. 92-036; the motion was seconded by
Bencardino.
Swartz stated that she did not feel the Council had enough discussion during the
March 2nd work session prior to the time that Schafer walked out of the meeting. She
asked if this resolution had been brought to the Council at Schafer's request.
White stated that he had sponsored this resolution because the Nash Road project
was important to the community. He noted that Schafer might decide to ignore a
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request to resume talks and to proceed with the project, but he wanted it to be clear that
the city supported this effort and had not been the party to walk away from this project.
Dunham stated that she had nothing against the project if it would not cost the
city anything. She noted that the city would soon be asked to fund its share of the new
hospital, and she did not know where the city could possible come up with $3.6 Million
to construct the utilities needed for the Nash Road Small Boat Harbor project. She also
suggested that it was time that Schafer spoke for himself rather than relying on Port
Marketing Director Gates to speak for him and his project.
Crane noted tl1at he had co-sponsored this resolution. He stated that he was
disappointed with the outcome of the March 2nd work session, and this resolution
expressed the city's desire to proceed with the project. Crane then read aloud portions
of a letter from Lorraine McCauley supporting the project. He stated that he supported
the project if it was at all feasible.
Swartz stated that the public would probably not be very enthusiastic about this
project if it were aware of everything Schafer expected the city to give.
Krasnansky stated that he had supported this project as it was first presented;
however, he could not support bonding to fund the city':;; share. He said that he was
disappointed that Schafer had walked out of the work session and had refused to answer
the questions asked. He added that he did not oppose the resolution, but Schafer must
realize that the project must be a wholly private enterprise.
Bencardino stated that this project was a good one. He stated that the city should
be eager to work with anyone willing to put $15 Million into the community and added
that, even if the city could get $15 Million for a project from Juneau, the governor would
insist that the city COr.le up with at least $5-6 Million for its share. He reminded Council
that the city had spent $400,000 to get $1 Million for the SMIC North Dock. Bencardino
noted that two of the four items Schafer requested from the city would not cost the city
anything, and the power extension to the site would be a minor cost initially. He added
that a $3 Million power upgrade to the proposed harbor would only become necessary
if and when the harbor was complete and Schafer was ready to begin uplands
development. Bencardino stated that private enterprise was not capable of funding a
project such as this one unless the city was willing to provide basic utilities.
Bencardino moved to amend the resolution by adding a new Section 2 to read:
Section 2. Be it further resolved to instruct the City Manager to
make a good faith effort to develop a plan to provide the following four
items requested by Afognak Logging:
1. City to obtain necessary permits;
2. City to transfer tidelands to Mognak at low or no cost;
3. City to grant Mognak access to city-owned quarries; and
4. City to extend electrical power to the project site.
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The motion was seconded by Dunham.
Krasnansky stated that it was not good for the city to offer money to someone
who had walked away from a project. He stated that he could not support the
amendment. Swartz concurred and added that she did not feel Schafer had dealt fairly
with the city.
Crane stated that anyone ready to invest $15 Million in the community deserved
. the city's support.
The question was called, and the amendment failed with Bencardino, Cripps and
White voting YES and Crane, Dunham, Krasnansky and Swartz voting NO.
White stated that he had lived in Seward since 1976, and since 1978 there had
been talk about constructing a new boat harbor at Nash Road. He stated that if the city
wished to remain a progressive community, projects such as Schafer's were a must.
White stated that the Council must begin to encourage private enterprise to spend money
in the community.
Dunham moved to add a new Section 2 to read as follows:
Section 2. If Afognak fails to participate in negotiations, the city
will publicly advertise a request for proposals for the private development
of the Nash Road Small Boat Harbor project.
The motion was seconded by Krasnansky.
Schaefermeyer stated that, given the fact that Schafer was the owner of the
property adjacent to the proposed development, he was probably the only one
reasonably capable of developing the project.
Dunham withdrew her motion; Krasnansky concurred.
The qitestion was called, and Resolution No. 92-036 was approved with
Bencardino, Crane, Cripps, Krasnansky and White voting YES and Dunham and Swartz
voting NO.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A resolution of the City Council of the City of Seward,
Alaska, amending the professional services contract with
Land Field Services by increasing the contract amount.
Crane moved to approve Resolution No. 92-037; the motion was seconded by
Krasnansky.
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Diener 'explained that the original estimate of $50,000 was not based on hard facts,
and although he had not anticipated that the contract would eventually cost $100,000, he
had expected the need for a change order. In response to a question from Swartz,
Diener stated that the completion of this project would allow the city to triple its output
without a significant increase in outages.
The question was called, and the resolution was approved by unanimous vote.
5. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A resolution of the City Council of the City of Seward,
Alaska, supporting continued federal funding of the pro-
posed Alaska Job Corps Center in Palmer, Alaska.
White moved to approve Resolution No. 92-033; the motion was seconded by
Dunham.
White asked if this facility would compete with A VTEC for students or funding.
Schaefermeyer stated that he had contacted John Lohse, A VTEC Director, and had been
assured that this was a complementary facility and would provide needed competition
in the field of adult education.
The question was called, and the resolution was approved by unanimous vote.
12. UNFINISHED BUSINESS None
13. NEW BUSINESS
A. Claim for damages totalling $315.00 as filed by Gerri Ann and Philip
Zimmerman. Crane moved to approve the claim for damages as submitted by Gerri
Ann and Philip Zimmerman; the motion was seconded by White and failed to carry
with all Councilmembers voting NO.
B. Claim for damages totalling $181.99 as filed by Robert H. Ferguson III.
White moved to approve the claim for damages as submitted by Robert H. Ferguson III;
the motion was seconded by Dunham and failed to carry with all Councilmembers
voting NO.
C. Claim for damages totalling $1603.57 as filed by William T. and Emma B.
Merritt. White moved to pay the claim for damages as submitted by William T. and
Emma B. Merritt; the motion was seconded by Crane and failed to carry with all
Councilmembers voting NO.
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D. Port Development Committee Appoinbnent. Cripps appointed Mark
Clemens to fill the vacant seat on the Port Development Committee. There was no
objection from the Council.
E. Proposed sledding hill. Cripps withdrew his suggestion that the
administration investigate the possibility of developing a sledding hill.
F. Application for renewal of ABCB license as filed by Thorn's Showcase
Lounge. White moved to issue a letter of objection to the renewal of the Thorn's
Showcase Lounge liquor license; the motion was seconded by Bencardino.
Murphy stated, that the Kenai Peninsula Borough had recently conducted a sales
tax audit of Thorn's Showcase Lounge and had assessed back taxes, penalties and interest
in the amount of $80,314.89. Since that time, Mr. Thorn had paid the principal amount
due, but was contesting penalties and interest totalling approximately $34,000. She noted
that penalties and interest on taxes due were considered "taxes" under the Code, and she
added that the Code required the Council to object to the renewal of the license if back
taxes were unpaid. Murphy noted that Thorn would be allowed to continue to operate
until the Alcoholic Beverage Control Board ruled on his protest.
The question was called, and the motion carried by unanimous vote.
14. CITY MANAGER REPORTS
A. Schaefermeyer stated that he had looked into Crane's concern regarding the
city's snow removal equipment plowing some of the one-way streets and alley ways
against the flow of traffic. He noted that it was necessary to run the plows in both
directions in order to remove the snow from both sides of the right of way; however, he
had instructed the Public Works Deparbnent to post a truck or warning device at the top
of any such street or alley when a plow was working opposite the flow of traffic.
B. Schaefe:rmeyer stated that he had signed an agreement with the State
Ombudsman's office to investigate the allegation that some hospital employees were
reluctant to come forward with complaints because of a fear of reprisal from the
administration. He noted that the contract amount would not exceed $3,000.00, with all
incidentals, out of pocket and support staff time to be borne by the state. Schaefermeyer
stated that Ron Hurlbert had been assigned to conduct the investigation, and hospital
employees had been given a memorandum containing Hurlbert's toll-free telephone
number for those who preferred to speak to him prior to his arrival in Seward.
C. Schaefermeyer noted the memorandum from Gifford regarding a suggestion
that the city obtain insurance to cover damage to consumer appliances and equipment
caused by power surges. He stated that insurance was not available for such damages
unless negligence on the part of the city could be proved. He noted that the city could
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set up a self insurance program; however, the city's insurance broker had warned about
setting a precedent of covering such damages.
D. Schaefermeyer asked the Council to schedule a work session to discuss
budget policy issues. The Council instructed the Clerk to call a work session to begin
at 7:30 p.m., Friday, March 13, 1992.
15. COUNCIL DISCUSSION
SWARTZ asked if hospital board member Caldera had moved from Seward as was
rumored and inquired if this would affect her qualifications to serve on the Community
Hospital Boar~. Murphy stated that Caldera had announced at the January meetinglhat
she would be moving soon and would submit her resignation prior to that time.
SWARTZ also complained about the road conditions on the Seward Highway and
asked the admi,nistration to urge the state to make necessary repairs before gravel trucks
began accessing the highway this spring and summer.
KRASNANSKY asked if it would be possible to hold Council meetings in a
location which would accommodate more people. Murphy explained that this would
take an amendment to the Code. Krasnansky asked that this issue be placed on the next
meeting agenda as an item for discussion.
DUNHAM stated that she hoped the construction of the new power line would
put an end to power outages and other problems. She also noted that Don Whitman
had provided a summary of Seward Ship's Chandlery's employment, wage and local
expenditures over the past three years.
BENCARDINO asked that the Clerk have the city manager's microphone repaired
so that the television audience could hear him.
WHITE thanked Rhonda Anderson-Hubbard for her past service on the Port
Committee, and he welcomed Mark Clemens to the Committee.
CRANE encouraged everyone to vote on March 17th. He also asked if the city
had any guide~ines for gangways from city docks to moored boats. Schaefermeyer stated
that there were no city regulations, but gangways were covered by OSHA regulations.
Crane thanked SAAMS for its presentation.
CRIPPS stated that he had visited Valdez on March 2nd to participate in exercises
with Alyeska Pipeline Services, Chevron and various regional agencies to assess oil spill
containment plans.
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16. CITIZENS' DISCUSSION
TIM MOFFATT, Mile 1, Exit Glacier Road, stated that he was disappointed with
the lack of unanimity among the Council with respect to the Nash Road resolution. He
stated that he was concerned that the city, for all of its pro-business talk, was developing
an image of being anti-business.
DON WHITMAN, 111 Barwell, stated that work on the Tustumena would be
completed on March 15th, and the Tusty would leave the port of Seward on March 18th.
BRUCE SIEMINSKI, Jesse Lee Heights Subdivision, suggested that, should
Council decide to move the Council Chambers to another location, all meetings and work
sessions should be conducted at the new location. '
JAMES KNUDSEN, 308 Adams Street, asked why a local unemployed investigator
was not used for the investigation at Seward General Hospital. He suggested that local
hospital employees would be more comfortable talking to someone they knew than with
an outsider, adding that the employees were concerned that the information which
would be passed on to the Council would have a political slant. Knudsen also objected
to the $500 fee which he had heard the city was paying for the state investigator and
noted that he was fully qualified and would have worked for only $30 per hour.
LOUIE MARCH, Mile 5.5, Seward Highway, once again complained about
extremely high attorney fees. He asked the Council to comment on the possibility of
hiring a staff attorney. March also suggested that Schaefermeyer make his presentations
from the podium rather than his desk.
WAYNE CARPENTER,325 Fifth Avenue, stated that the Chamber had organized
a farewell get together for the crew of the Tustumena to take place on Friday, March 13,
1992, beginning at 7:00 p.m. at the Legion Club. He also noted that Royal Caribbean
Lines had decided to move its Whittier traffic to Seward beginning this season.
Carpenter reported that the proposed 110 office for Seward had received almost
unanimous support from those he spoke to in Juneau, with only Representative Kubina
objecting. He stated that, if funded, the office would be open seasonally, and the city
would be expected to provide office space and furniture, with the state providing staff
salaries and equipment.
DALE HOOGLAND, Mile 3.5, Seward Highway, stated that Council should move
forward to acquire the permits necessary for the construction of a harbor at Nash Road.
He stated that once tourists had road access to Whittier, any chance to construct a new
harbor in Seward would be lost.
WILLARD DUNHAM, Alder & Dimond, stated that road crews should begin
street clearing earlier in the day to make it possible to get on the road to Anchorage in
time to meet early airline schedules and morning appointments. He also thanked the
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March 9,1992 '
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Council for funding Kent Dawson's contract for lobbyinls, He stated that Dawson was
amazingly well known and well connected in Juneau and was worth every penny spent
on his contract.
17. COUNCIL AND ADMINISTRA TIONRESPONSE TO CITIZENS' COMMENTS:
il
DUNHAM, responding to Knudsen's comments, stated that several of the
employees who had talked to her had indicated that they would not talk to anyone from
Seward and preferred an impartial out-of-town investigator. In response to Moffatt's
comments, she stated that she had supported all past projects, but these project sponsors
had been proposed by those willing to talk to the Council.
SWARTZ, replying to Knudsen, stated that the hospital investigation required the
services of a disinterested party from outside the community. In response to March's
concerns regarding a staff attorney, she stated that this had been a subject of discussion
several months ago, and at that time the Council had opted to attempt to make the
arrangement with the present attorney work. She also reminded March that comparing
Seward to other communities was not reasonable since those communities with the very
low attorney bills generally were communities which were not moving forward.
BENCARDINO stated that he agreed that it was time to make a change in the
city's legal representation and further agreed that it might be time to explore the
possibility of hiring a staff attorney.
CRIPPS, responding to Hoogland's concerns regarding permitting for the Nash
Road Small Boat Harbor project, stated that the city had done all that it could do until
the Corps of Engineers made its next move.
SCHAEFERMEYER stated that the rumor that the city was paying $500 per hour
for the services of the state ombudsman was wrong. Instead, the hourly rate was $125
which included all out of pocket, incidental and support services. He also objected to
comments that he was personally opposed to the Nash Road project. He stated that he
had been involved with this concept since 1976 and would like to see a harbor
constructed in the community. He added that he had purposely distanced himself from
the negotiations with Schafer to avoid any friction such a close relationship might cause,
and he suggested that the Council consider deeding the tidelands to Schafer at no cost
to give him an opportunity to "make this project a go". In response to Moffatt's
comments regarding an alleged "anti-business" attitude, he noted that Nelbro had walked
away from its planned project because of the company's financial problems and problems
throughout the fishing industry.
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City of Seward, Alaska
March 9, 1992
City Council Minutes
Volume 27, Page 226
18. ADJOURNMENT
The meeting adjourned at 11:22 p.m., and, after a short recess, the Council
reconvened in Executive Session to discuss lease negotiation strategy with regards to a
proposed long term lease of SMIC property to Seward Ship's Chandlery.
C. . t:;
~. ffl-tdd1::t.?-/.'/
Donald W. Cripps . Cl_t.---'"'"
Mayor '
, .
City Council Minutes
Volume 27, Page 226
1. CALL TO ORDER
The March 19, 1992, special meeting of the Seward City Council was called to
order at 12:00 Noon by Vice Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis Bencardino James Krasnansky
Karen A. Swartz Dale White
comprising a quorum of the Council; and
, Linda S. Murphy, City Clerk
ABSENT were:
Donald W. Cripps (excused) and Dave Crane (excused)
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4.
APPROVAL OF SPECIAL MEETING AGENDA
Swartz moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Krasnansky and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Canvass of 03/17/92 election. The Clerk noted that the city had conducted
a special election on Tuesday, March 17, 1992, referring Ordinance No. 658 to the voters.
Murphy noted that she had displayed the precinct registers, questioned voter and
absentee voter logs and the unofficial results of the election. She further noted that the
precinct boards had counted the ballots of 501 voters who were properly registered in
time for the election and whose names appeared on the precinct registers. Twenty-six
(26) voters had been required to cast questioned ballots because their names did not
appear on the precinct registers.
Murphy distributed a list bearing the names of the 41 voters who had requested
absentee ballots. She noted that all 41 ballots had been returned to the city in time to be
considered by the Canvass Board. Of these, she recommended that the Council reject
the ballot cast by MICHAEL TETREAU, who had failed to register 30 days prior to the
election as required by law. (Tetreau's date of original registration was February 28,
1992.)
Krasnansky moved to reject the ballot cast by Michael Tetreau; the motion was
seconded by Swartz and carried unanimously.
Murphy put the rejected ballot aside for safekeeping.
Murphy stated that the other 40 ballots were cast by qualified electors of the city
and were properly witnessed as required by law. She recommended that the Canvass
Board count the ballots cast by the following voters:
PRECINCT NO. 1
PRECINCT NO.2
ARNOLD, Virginia
BALD\^nN, Pauline 1.
BALDWIN, Charles F.
BJORK, Bernard
BOMSTEAD, Ruth O.
BREWSTER, Fred
BRITTAIN, Michael 1.
BROCKMAN, Peggy N.
CLEMENS, Kristi
DIENER, Everett P.
DIENER, Myrle E.
DUNHAM, Willard E.
HARP, Duane H.
HATCH, Arne A.
HATCH, Melody Spangler
KULIN, Eileen M.
( C SE 155083 )
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City of Seward, Alaska
March 19, 1992
City Council Minutes
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,CRANE, Dave W.
CRIPPS, Ann
CRIPPS, David B.
DARLING, Hugh W.
DARLING, Iris A.
DARLING, Virginia H.
LANDENBURGER, Dixie
LANDENBURGER, Eric
OLLESTAD, Gilbert
ORTH, Adam D.
ORTH,Nancy
PACKA,RD, BrUce D.
PACKARD, Lana M.
RULE, Alex S.
RULE, Helen M.
SHEA, James B.
THOMAS, Roger
TOLOFF, Caroline
WIKLUND, Aron M.
O'BRIEN, Brenda
SA DUSKY, Nancy Y.
SCHAEFERMEYER, Darryl
SQUIRES, David 1.
WILCOX, Stephen
Krasnansky moved to accept the Clerk's recommendation to count the forty (40)
absentee ballots; the motion was seconded by White and carried unanimously.
As Dunham read the names on the absentee ballot envelopes, White opened the
outer envelopes, removed the inner envelopes and set them aside to be opened later in
the meeting. '
Murphy distributed the list of persons casting questioned ballots on election day.
She stated that 26 questioned ballots had been cast by voters whose names did not
appear on the precinct registration lists. She recommended that the Canvass Board reject
3 of the questioned ballots as follows:
Precinct No.1
Peter W. Harris (Failed to register 30 days prior to election)
Precinct No. 2
N. 1. Ashford (No record of voter registration)
Louis W. Nauman IV (Purged from voter list - inactive status)
Krasnansky moved to accept the Clerk's recommendation to reject the three
ballots; the motion was seconded by Bencardino and carried unanimously.
Murphy put the rejected ballots aside for safekeeping.
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March 19, 1992
City Council Minutes
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Murphy stated that 23 of the questioned ballots had been cast by qualified voters
of the city, and she recommended that the board count the ballots cast by the following:
PRECINCT NO.1
The following voters were properly registered, but, due to state computer error,
their names failed to appear on the precinct registers:
BANIC, Tony
FAIGLE, Nancy 1.
FEELEY, Martin
HALL, Jeanette M.
STAMM, Kaarina
STIGALL, Russell F.
THOMPSON, John Steven
WILSON, William R.
ECKENBERG, William E.
FAIGLE, Stephen C.
FEELEY, Mary
HEFLIN, Kathryn J.
STAMM, John
STITH, William A.
VITARIS, Ray
The following voter was registered in Precinct No.2 and now lives in (and voted
in) Precinct No. 1. Since she was properly registered within the city in time to qualify
to vote in this election, her ballot should be counted.
WOOD, Shelley
PRECINCT NO.2
The following voters were properly registered in time to qualify to vote in this
election, but, because of state computer error, their names di.d not appear on the precinct
registers:
CAGLE, Jennifer Laurie
KAPP, D. R.
SHUM, Robert
TRITZ, Donna A.
JOHNSON, Vera
RUBY,Dawn
TRITZ, Michael J.
Krasnansky moved to accept the Clerk's recommendation to count the 23
questioned ballots; the motion was seconded by Dunham and carried by unanimous
vote.
As Dunham read the names on the questioned ballot envelopes, White opened the
outer envelopes, removed the inner envelopes and put them aside with the waiting
absentee envelopes. The inner envelopes were then shuffled and opened by Dunham
and White. The ballots were removed and read aloud by Dunham as White observed
and as city staff members Annie Martin and Kris Erchinger conducted the tally. Murphy
read fue results of the combined totals as follows:
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230
City of Seward, Alaska City Council Minutes
March 19, 1992 Volume 27, Page 230
Precinct 1 Precinct 2 AbslOuest. Total
PROPOSITION NO.1
Shall Ord. No. 658 be
repealed?
YES 212 174 56 442
NO 70 45 7 122
TOTAL VOTES CAST: 299 228 41/26 568
TOTAL VOTES COUNTED: 282 219 40/23 564
Murphy stated that any 10 qualified voters of the city could protest the election
by filing a written complaint with the City Clerk prior to 5:00 p.m., Monday, March 23,
1992. She added that if no such protest was filed, the City Council would certify the
election as valid and declare the results official at its regular meeting on March 23rd.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION None
9. CITIZENS'DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 12:30 p.m.
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City Cle
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Donald W. Cripps --?
Mayor
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City of Seward, Alaska
March 23, 1992
City Council Minutes
Volume 27, Page 231
1.
CALL TO ORDER
The March 23, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Dunham led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino Beverly Dunham
James Krasnansky Karen A. Swartz
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT was:
Dave Crane (excused)
4a. PROCLAMATIONS
A. Seward Life Action Council Day (04/12192). Cripps presented a Proclama-
tion designating April 12, 1992, as Seward Life Action Council Day to SLAC Clinical
Director Suzanne Price.
B. libraI)' Week (04/05 - 04/11/92\. Cripps presented a Proclamation
designating April 5-11, 1992, as Library Week to Librarian Catherine Nicolas.
4b. APPROVAL OF MINUTES
Krasnansky moved to approve the March 9, 1992, regular meeting minutes and
the March 19,1992, special meeting minutes as presented; the motion was seconded by
Bencardino and carried without objection.
5. APPROVAL OF REGULAR MEETING AGENDA
( (Sf 155087 1
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City of Seward, Alaska
March 2.3, 1992
City Council Minutes
Volume 27, Page 232
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Bencardino.
Schaefermeyer requested the addition of Resolution No. 92-042 to the regular
meeting agenda. Schaefermeyer also asked to add a new item to Unfinished Business,
a request to remove the city's protest of the Thorn's Showcase Lounge liquor license.
The agenda was approved as amended by unanimous consent.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
JEAN CRIPPS,426 Second Avenue, asked that her 2 minutes be deferred to Mike
Moore.
MICHAEL MOORE, 702 Third Avenue, stated that he was representing the
Seward Volunteer Ambulance Corps (SV AC). He spoke in opposition to the proposed
budget policy which would charge the Ambulance Corps for actual cost of ambulance
storage, maintenance and insurance. He stated that SV AC provides free services to the
city and also responds to Fire Department Stand-by. Moore stated that although SV AC
did not wish to consider a rate increase at this time, there would be no choice but to raise
rates if the city increased its charges to the Corps. Moore also reported that SV AC had
asked the state for a grant to provide storage space for local ambulances and he felt fairly
confident that funds would be forthcoming.
DON WHITMAN, 111 Barwell, stated that city and Seward Ship's Chandlery were
very close to having a lease to present to the community and asked that action on
Unfinished Business Item B. be deferred once again.
8. APPROVAL OF CONSENT CALENDAR
White moved to approve the Consent Calendar as presented; the motion was
seconded by Swartz and carried by unanimous vote. The following actions were taken:
A. Resolution No. 92-038. authorizing the purchase of two police vehicles,
waiving city bid procedures and appropriating funds, was approved;
B. Resolution No. 92-039. authorizing the purchase of a vehicle for the Electric
Department and waiving city bid procedures, was approved;
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March 2.3, 1992
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C. Resolution No. 92-041. approving Change Order No.1 to the Dryden &
Larue contract for transmission line design, was approved;
D. Games of chance & skill permit applications as filed by Seward BPW &
Seward Rotary were noted for information; and
E. BRIM National Trustee Conference trip report filed by Community Hospital
Board Member Al Lamberson was noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. TOM STAUDENMAIER - March 2. 1992. letter from Ci~ Manager
Schaefermeyer to CEA President Tom Humphrey. Staudenmaier claimed to be
representing Mrs. Helen March in his presentation. He stated that the CEA Board
members were all prepared to sign a letter in response to Schaefermeyer's earlier letter
to Tom Humphrey. He challenged Schaefermeyer to show any instance where he had
threatened city personnel or property in any way, and he asked the City Council to
instruct Murphy to give him a certified letter attesting that the tapes of the February 24th
Council meeting which he had received were true and correct copies of the city's tapes
of that meeting.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the city of Seward,
Alaska, amending SCC ~ 12.01.020, numbering of buildings.
White moved to introduce Ordinance No. 92-06; the motion was seconded by
Bencardino and carried by unanimous vote. Public hearing was scheduled for April 13,
1992.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the city of Seward,
Alaska, amending SCC ~ 2.10.075, decorum of persons
addressing the Council.
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City of Seward, Alaska
March 23, 1992
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Swartz moved to introduce Ordinance No. 92-07; the motion was seconded by
Dunham and carried by unanimous vote. Public hearing was scheduled for April 13,
1992.
B. Ordinances for Public Hearing & Enacbnent
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the city of Seward,
Alaska, amending SCC Chapter 7.05, acquisition and
disposal of real property.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
White moved to enact Ordinance No. 92-05; the motion was seconded by
Dunham. The question was called, and Ordinance No. 92-05 was enacted by
unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the FY 1993 budget policy.
Krasnansky moved to approve Resolution No. 92-040; the motion was seconded
by Dunham.
Krasnansky moved to amend the attached budget policy by deleting Item G,
Number 6, Page 64; the motion was seconded by White.
Schaefermeyer stated that this document would give guidance from the Council to the
administration for budget development. He asked if there Were any other issues the
Council wished the staff to consider. He noted rumors that some councilmembers
wished to remove certain city positions from next year's budget and stated that, if this
were true, he would like to know which programs and departments the Council wished
to cut before he began developing the budget.
Swartz stated that she was not of the opinion that this policy was to be cast in
bronze at this meeting. She thanked Moore for coming forward and bringing the plight
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City of Seward, Alaska
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of the Ambulance Corps to the Council's attention. She stated that she would support
the amendment proposed by Krasnansky.
Schaefermeyer stated that he did not mean to infer that there would be no
changes after tonight's meeting; however, he wished to get as much guidance from the
Council as possible ahead of time.
Krasnansky stated that he agreed with Schaefermeyer and did not want a repeat
of last year's budget process.
Dunham stated that she would like to see fees for parking in the Harbor, but did
not want to contract out this service.
Schaefermeyer stated that this document contained suggestions, some of which
might not ever be advanced to the Council. However, he requested guidance as to what
fees or cuts could be considered by the Administration.
Bencardino stated that without knowing if the budget could be balanced within
available revenues, it was impossible for Council know what to do or to give direction.
He stated that the Council could only make suggestions once the budget was presented
by the City Manager.
Krasnansky stated that Moore had made it dear that the service provided by the
volunteers on the Ambulance Corps was an expensive service to provide, and the public
was getting its money's worth.
The question was called, and the amendment was approved by unanimous vote.
The question was called, and Resolution No. 92-040 was approved, as amended,
by unanimous vote.
2. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, rescinding Resolution No. 92-014 and awarding a
contract to Wince-Corthell-Bryson Consulting Engineers to
design a storm water drainage system at the Spring Creek
Correctional Center.
White moved to approve Resolution No. 92-042; the motion was seconded by
Krasnansky. The question was called, and Resolution No. 92-042 was approved by
unanimous vote.
12. UNFINISHED BUSINESS
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City of Seward, Alaska
March 23, 1992
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A. Perkins Coie Invoice for JanuaIY 1992 legal services totalling $17.574.50.
Krasnansky moved to pay the invoice as presented; the motion was seconded by
Dunham and carried by unanimous vote of the Council.
B. Pruitt lease appraisals. [Continued from the January 27, 1992, meeting.] The
following motion was on the floor, having been postponed from the January 27th
meeting:
Krasnansky moved to accept the administration's recommendation to consider
the existing lease as separate from the new lease being negotiated, to set the
lease rate for the existing lease at $31,500 annually, and to move the issue of
the lease rate to arbitration if the city and Pruitt do not come to a mutually
agreJ!d upon lease rate; the motion was seconded by Dunham.
Dunham moved to postpone action on the motion until April 13, 1992; the
motion was seconded by Bencardino and carried by unanimous vote.
C. Garrett Schnell lease proposal. [Continued from the June 24, 1991, meeting.]
Murphy noted that on June 24, 1991, the Council had instructed the administration to go
forward with lease negotiations with Garrett Schnell.
'.
Cripps instructed the administration to proceed with the development of a lease
as requested by Schnell. There was no objection from the Council.
D. Thorn's Showcase Lounge application for renewal of a beverage
dispensaIY license. Schaefermeyer explained that the city had received a letter from the
Kenai Peninsula Borough stating that Thorn had paid in full his delinquent tax account,
and he recommended that the Council withdraw its protest of the renewal of this license.
White moved to remove the city's protest of the Thorn's Showcase Lounge
Liquor license; the motion was seconded by Swartz and carried by unanimous vote.
13. NEW BUSINESS
A. Claim for damages as filed by Elva E. Rappi. Krasnansky moved to refer
the claim filed by Elva E. Rappi to the city's insurance adjusters; the motion was
seconded by Dunham and carried unanimously.
B. Resignation of John Woodruff from the Trade Board. Cripps noted with
regret the resignation of John Woodruff from the Trade Board, such resignation to
become effective on June 1, 1992.
The Clerk was instructed to advertise the vacancy and to schedule appointment
for the April 13, 1992, meeting.
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March 23, 1992
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C. Resignation of Debra Caldera from the Community Hospital Board.
Cripps noted with regret the resignation of Debra Caldera from the Community Hospital
Board, such resignation to become effective immediately.
The Clerk was instructed to advertise the vacancy and to request that the
Community Hospital Board review all applications received prior to the April 13, 1992,
Council meeting when the appointment was scheduled to be made.
D. Certification of the March 17.1992. special election. Krasnansky moved
to certify the 03/17/92 special election as valid and to declare the results as valid; the
motion was seconded by Dunham and carried unanimously.
E. Alternative site for Council meetings. Krasnansky stated that he had asked
that this be put on the Agenda because of the frequent overcrowding during Council
meetings. Following discussion, Cripps instructed all City Department Heads attending
the meetings to retire to the City Manager's Office to make room for those members of
the public needing seats in Council Chambers.
14. CITY MANAGER REPORTS
Schaefermeyer stated that he had travelled to Juneau last week to assist in an
attempt to acquire funding for the Alaska Sea Life Center project. He stated that he was
accompanied by SAAMS Chairman Willard Dunham, Treasurer Sharon Anderson and
Institute of Marine Science Director Tom Smith. Schaefermeyer noted that city lobbyist
Kent Dawson had arranged meetings with the members of House Resources Committee,
and the reception they had received from the majority was very good. He stated that
the Committee was looking for a project of this type to support with a portion of the oil
spill criminal fine money which the legislature will appropriate. In addition, the group
met with Fish and Game Commissioner Rosier, the sixth and last of the oil spill trustees
to receive a presentation regarding the SAAMS project. Schaefermeyer noted that
Representative Davidson of Kodiak was sponsoring HB 411 which proposed to
appropriate $50 million in oil spill settlement funds. In response to pressure from
environmental groups, the bill proposed to use the bulk of these funds to purchase
private timber holdings. Schaefermeyer stated that there was a consensus among
legislators that there was little prospect that this bill would make it through the
legislature as drafted. He noted that the bill had passed out of the House Resources
Committee and was now in Finance. He added that, given the good reception the
SAAMS presentation had received, there was a good opportunity to have approximately
$2 million for the Alaska Sea Life Center included in the bill.
Schaefermeyer stated that on Wednesday, he and the SAAMS representatives had
met with Marty Rutherford, staff member to the oil spill trustees. In addition, they had
presented the project to Riley Snell, Alaska Industrial Development and Export Authority
(AIDEA) and a representative of the University of Alaska. He reported that Snell was
very interested in the project and requested that the city make a letter application to
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City of Seward, Alaska
March 23, 1992
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AIDEA for funds. Schaefermeyer stated that he also discussed the B Street Dock project,
and Snell expressed an interest in that as well.
Schaefermeyer stated that the city worked very hard to convince the governor to
include hospital funding in his capital budget; however, the Council should not be
discouraged that this funding was not included. He noted that, included in the
governor's capital budget was $375,000 to study ground fisheries return to the state. Also
included was $1.5 million of matching funds for Corps of Engineers programs, and it was
possible that the city could qualify for some of this funding to make up the city's share
of funding for C.O.E. projects. In addition, the budget contained $15,414,000 for
straightening and improving Mile 50 to Mile 65 of the Seward Highway, and another $18
million to remove the avalanche danger along the highway from Girdwood to Bird
Creek. Also included was $443,600 for the Exit Glacier Road Project, Mile 0 to 3.9, and
$4,098,000 for the Tustumena. Schaefermeyer noted that the governor had designated
$924,000 within the Water/Sewer Matching Funds Program to assist in reconstructing the
Lowell Point sewage treatment plant.
Schaefermeyer stated that the city had received the draft reconnaissance report
regarding harbor expansion from the Corps of Engineers. He noted that a representative
of the C.O.E. would be available in a couple of weeks to hold a town meeting to present
the report. The Council instructed the Clerk to schedule a work session with the Corps
of Engineers on Thursday, April 9, 1992, beginning at 7:00 p.m. to discuss the draft
reconnaissance study regarding boat harbor expansion.
SWARTZ stated that she was delighted to hear about the success of the SAAMS
presentations in Juneau. She stated that this project would bring more dollars into
Seward and the state than anyone could imagine.
Schaefermeyer reported that Lowell Point Road was closed due to an avalanche
and stated that it would not be cleared by city crews until the situation had stabilized
and the area was deemed safe for city crews and equipment. He stated that city Harbor
personnel had responded to a call for assistance earlier in the d~y and had brought a
child in by boat for medical attention. He added that the city would continue to respond
to emergency calls for assistance whenever the road was closed; however, the city would
not attempt to open the road if doing so represented a danger to the lives of city
personnel.
RECESS:
The meeting was recessed at 8:45 p.m. and reconvened at 8:55 p.m.
15. COUNCIL DISCUSSION
BENCARDINO thanked Seward Cablevision for the work on the sound system
and noted that the problems seemed to have been corrected. He also noted a citizen
complaint he had received regarding the J-Turn signs in the downtown area which had
been removed and had never been replaced. He asked that the signs be returned to their
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proper places. Bencardino expressed some concern that the Council had placed itself
in an awkward position by adopting the budget policy prior to presentation of the
budget to the Council. He stated that it was difficult to make a decision without
knowing what the Council had to work with. He noted that the public did not want
to raise taxes.
WHITE stated that he had received a lot of positive feedback from the public
regarding the SAAMS presentation at the last meeting. Regarding HB 411, White stated
that it was important that the state not tie-up available timber lands, especially when
Seward had an empty mill across the Bay. He asked if there ,was anything in the
governor's budget for the Nash Road junction. Schaefermeyer stated that funding for
this project was in the current budget and was slated for construction this season. White
noted the March 18th Port Advisory Committee meeting. He stated that the Committee
planned to begin addressing harbor parking, handicap access and access to the ramp to
floats. He stated that the Committee had also discussed the possibility of constructing
a new launch ramp near the grids to relieve some of the parking pressure in the Small
Boat Harbor. He noted that the day cruisers were running out of room in the harbor,
with another two spots needed this year and an additional five spots needed in the near
future.
DUNHAM stated that, in addition to the SAAMS presentations Schaefermeyer had
mentioned in his report, Tom Smith and Willard Dunham had made a presentation to
the State Chamber of Commerce in Anchorage last week. As a result, several Anchorage
hotels had expressed an interest in getting involved in the project. Dunham noted that
she had received a phone call from a mother at Lowell Point earlier in the day. She
asked if there was any chance that annexing this area would provide better road
maintenance. Schaefermeyer stated that the road would always be unsafe without the
expenditure of very large sums of money to improve it, and even then it could probably
never be made a guaranteed, year-round access road. Dunham asked the administration
to write a letter to the school district asking that students living in the Lowell Point area
be excused from school when the road was closed.
KRASNANSKY stated that the SAAMS project seemed ready to take off. He
asked if there was some way to fund winter activities in Seward. Schaefermeyer stated
that he had met with members of the Seward Nordic Ski Club and had told them that
he was not averse to putting grant funds for them in the budget so that they could work
on maintaining various trails which they have developed around town. He stated that
he would not propose that the city assume responsibility for staffing to maintain the
trails, but he would recommend the $10,000 grant they had requested.
SWARTZ warned the public to be aware of deep water standing on city streets,
especially in the boat harbor area. She also warned the public to beware of pot holes on
Third Avenue and elsewhere. She thanked the many people who had called her to
express various interests and concerns. She stated that the public was very concerned
about this year's budget and had indicated to her that they did not want a raise in taxes,
but would prefer a decrease in services.
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CRIPPS stated that he wished there was a solution to the Lowell Point Road
problem, and he encouraged the administration to continue to strive for a solution.
DUNHAM asked about the possibility that municipalities would be forced to
accept and maintain state roads as proposed by DOT/PF. Schaefermeyer stated that,
given the many miles of state roads in Anchorage, he did not think there was any
possibility that this would come to pass.
CRIPPS noted the sled dog race on Saturday. He stated that those in attendance
commented on the improvements to local trails. He also noted that the Kenai Peninsula
Caucus continued to work on economic development for the Peninsula and added that
he would keep the Council and public informed about the activities of the Caucus.
BENCARDINO stated that he was happy that the City Manager was trying to
assist local groups such as the Seward Nordic Ski Club. He stated that the city should
seek to inspire the public to work on projects themselves instead of adding new city
employees to do the work.
16. CITIZENS' DISCUSSION
DALE HOOGLAND, Mile 3.5, Seward Highway, spoke in support of the Nash
Road Small Boat Harbor project. He stated that the current harbor was being used
beyond its intended capacity and that local tour companies wished to expand, but could
not due to a lack of space. He added that there were other tour companies which would
like to relocate to Seward but could not because of overcrowdit;tg in the Boat Harbor.
Hoogland stated that the tour boat industry was important to the city's economy, and the
city should be doing what was necessary to assure that the industry's needs were met
He also stated that he wished to introduce a resolution to the Council which would direct
the administration to 1) apply for Corps of Engin~ers' permits and other necessary
permits for construction of the Nash Road project, 2) hire someone to oversee the
construction of the project, 3) transfer the necessary tidelands to Schafer, 4) determine
the Phase I electrical demand and provide power, and 5) provide armor rock for the
project. He asked the Council to support the introduction of such a resolution at its next
meeting. He also asked for a work session prior to the next meeting to educate the
Council regarding this project. Hoogland stated that timing was critically important to
the success of this project, and added that should the road to Whittier be paved prior to
construction of a new facility in Seward, the state would find the money to construct a
harbor in Whittier and the city would not only lose the ability to expand its present
facilities, but would probably lose boaters from the existing facility. Hoogland also stated
that his group had obtained 804 signatures on petitions in support of this project, and
he asked the Council to consider the will of the public when deciding this issue.
DEAN LUST, North Harbor Road, stated that his group had gotten letters of
support from many people living outside of Seward. He stated that, of the Anchorage
boat owners contacted, approximately one-half continued to use the port of Seward even
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though they had no slip here for their boats and had to transport them back and forth
to Seward. In addition, many of those contacted had expressed a desire to purchase
larger boats if they could get slips to accommodate them. He urged the Council to do
whatever it could to advance the Nash Road Boat Harbor project.
JUDI ANDRIANOFF, 'lJJ7 Bear Drive, spoke in support of the Nash Road Small
Boat Harbor Project. She stated that thc 804 signatures on the petition were saying ''Yes,
we want this project," and she asked the Council to move forward with the Schafer
request. She also stated that she hoped that this enthusiastic response from the public
would be met with an' equally enthusiastic response from the Council. She stated that
she had met with hundreds of people over the past week, and only two had opposed
the project.
LOUIE R. MARCH, JR., Mile 5.5, Seward Highway, spoke regarding the Clerk's
letter to Jack Ballock revoking the petition issued by Deputy Clerk Jones during Murphy's
absence from Seward in February. March claimed that Murphy's actions represented
deliberate acts on her part to stop the democratic process and he urged the Council
terminate her employment with the city immediately. Cripps warned March about the
prohibition against using personal and slanderous remarks during his presentations.
TOM ST AUDENMAIER, Mile 13.5, Glenn Highway, Eagle River, stated that he
had been accused of terrorist acts by City Manager Schaefermeyer in Schaefermeyer's
letter to CEA Board President Tom Humphrey. He demanded that Schaefermeyer either
substantiate the allegation or issue a public apology. Mayor Cripps warned Staudenmaier
about the use of foul language and against the use of personal and slanderous remarks.
STEVE RYAN, 8400 Medford Street, Anchorage, representing the Seward Yacht
Club, presented a letter from the Yacht Club supporting the Nash Road Small Boat
Harbor project. He stated that there was some validity in the statement made earlier that
if Whittier should ''beat Seward to the punch," many boaters would move to Whittier.
He noted that, although he loved boating in Seward, he would be forced to consider the
economics and convenience of housing his boat in an area one hour closer to Anchorage.
DA VE SHEELY, Harbor Condo #7, spoke in support of the Nash Road Small Boat
Harbor project. He stated that this new harbor was being offered to the city as a gift
which would not require bonding on the part of the city for its construction. He stated
that any time the city turned down a large private invesbnent, it (the city) should be
ready to offer the community something better. He also noted that the city had hired
Chris Gates to advise them regarding port development, and he thought the Council
should listen to the advice they were getting. Sheely conceded that the city might be
required to bond some funds for utility expansion; however, thc city had "bent over
backwards" to attract other projects such as the prison, and it would now be appropriate
to ''bend over backwards" to make this project work. He urged the Council to support
the Nash Road project.
DON WHITMAN, 111 Barwell, stated that the Nash Road Small Boat Harbor was
a good project and he still favored it even though he had been warned that his support
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of tl1is project could result in some Counci1members withdrawing their support for the
Seward Ship's Chandlery project.
LEO WAKEFIELD, 604 Fourth Street, real estate agent, stated that at least six
people had recently wanted to buy a home in Seward but did not do so because they
could not find a place for their boats.
WAYNE CARPENTER,325 Fifth Avenue, Chamber of Commerce Director, stated
that on March 13th, the Chamber had hosted a Tustumena appreciation party with
approximately 200 people in attendance.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
DUNHAM stated that the Council had voted at its last meeting to renew
negotiations with Schafer. She stated that it was Schafer who walked out on his talks
with the city because the Council was asking too many questions. She also questioned
how many of the 800 signers knew exactly what they were signing. She stated that she
especially objected to Schafer's requirement that all counci1members must be "enthusias-
tic" about the project. She noted that the project would require a $3.6 million investment
on the part of the city, and she questioned the city's ability to provide this much support
given other pressing needs such as meeting ADA requirements, purchasing new
generators for the Electric Department and providing matching funds for new hospital
construction. She stated that she was willing to give Schafer the tidelands for 5 years to
give him the opportunity to construct a harbor. She suggested that the four property
owners in the area who would benefit from the utility could finance the $3.6 Million for
utility expansion.
WHITE asked if Schaefermeyer had talked to Schafer since the Council's last
meeting, and Schaefermeyer replied that he had not. White stated that he viewed this
project as a revenue enhancement project, and he could not see turning the city's back
on a $15 Million private investment. He stated that the project would bring in both large
construction dollars and revenues and a large payroll upon completion.
CRIPPS asked Murphy if she could provide the certified tapes requested by
Staudenmaier. She stated that she could not certify a cassette tape since a tape could be
so easily altered. However, she could provide a transcript of that portion of the meeting
requested by Staudenmaier if Staudenmaier reimbursed the city for staff time required
to make the transcription.
KRASNANSKY stated that he did not feel comfortable certifying the copies of the
tapes or transcriptions. He suggested that Mr., Staudenmaier seek copies through the
courts.
SWARTZ stated that the City Council needed to revieW the C.O.E. report on
harbor expansion and tQ work on the draft Gates brought to Council before proceeding
further with the Nash Road ,project. She stated that her objection stemmed from her
desire to avoid putting the city in a precarious financial position. She stated that no one
wanted higher taxes; nowever, an invesbnent in tl1is project would require a tax increase
to fund tl1e city's share, and it was the citizens of Seward who would bear this tax
burden.
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WHITE stated that the Council could not exclude those living out of town in the
list of taxpayers. He noted that boat owners pay personal property taxes in Seward.
KRASNANSKY asked Foster what the city could expect if Shotgun Cove should
be developed. He asked if more fishing boats would relocate to Seward if the city lost
a good number of the pleasure boats. Singleton stated that this was a hard call to make.
In response to another question, Singleton stated that the projected cost of upgrading the
current harbor was $9.5 Million.
BENCARDINO asked how many Anchorage boaters rent slips in the Seward
Small Boat Harbor. Singleton replied that 65% of Seward slips were rented by Anchorage
residents.
SWARTZ stated that many people would not go to Whittier under any
circumstances. She stated that the National Park and other amenities located in Seward,
would assure that Seward did not "go down the drain."
18. ADJOURNMENT
The meeting was adjourned at 10:00 p.m.
I
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1. CALL TO ORDER
/ l.I'/~
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'Donald W. Cripps -
Mayor
City Council Minutes
Volume 27, Page 243
The April 2, 1992, special meeting of the Seward City Council was called to order
at 7:00 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Crane led the pledge of allegiance to the flag.
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3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino Dave Crane
Beverly Dunham James Krasnansky (arrived 7:08)
Karen A. Swartz Dale White
comprising a quorum of the Council; and
Darryl Schaefe.rmeyer, City Manager .
Michael Yanez, Assistant City Manager
Patricia Jones, Deputy City Clerk
4. APPROVAL OF SPECIAL MEETING AGENDA
Crane moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Bencardino and approved by unanimous consent.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
None
6. SPECIAL ITEMS
A. Discussion regarding the potential re-opening. of the Chugach Alaska
Corporation sawmill.
Swartz noted that since she was a shareholder in the Chugach Alaska Corporation
(CAC) she would abstain on this issue. There was no objection from the council.
SCHAEFERMEYER stated that he and Gates had met with representatives of CAC
and officials of the Idaho Timber Corporation (ITC) to discuss a possible joint venture
between the two companies and reach an agreement for re-opening of the sawmill in
Seward. He noted that lTC was the apparent successful proposer for the mill, and CAC
had informed him that they were negotiating exclusively with lTC Schaefermeyer added
that ITC had many plants located throughout the United States. . He explained that lTC
had built its business during the last 15 to 18 years by buying distressed sawmills and
turning them into profitable businesses. He stated that the company was privately
owned by three owners, one who was in Seward last week. He explained that in order
for lTC to go forward and arrange the business, four major issues must be addressed:
1) success in securing a guaranteed source of low cost logs for the life of plant; 2)
creation of a financing and repayment plan acceptable to Chugach creditors; 3)
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negotiation of a timber supply contract with CAC; and 4) mitigation of excess operating
costs with the City of Seward. He stated that ITC would assume operation of the sawmill
if it also received cost reductions on the city dock use fees, free leases for the three
current CAC lease parcels, wording changes in the existing CAC leases, assistance by the
city to obtain approval from the borough to dispose of hog fuel and possible construction
of an electrical line from the SMIC substation to the sawmill.
SCHAEFERMEYER then outlined the plan for lease negotiations between ITC and
the City before the sawmill could be reopened. The plan included revision of lease
procedures to renegotiate without requiring a lease deposit, various lease incentives,
reduction of dock fees for the use of the north dock, a guarantee that ITC would not
construct an additional dock before May, 1994, guarantee of 25,000 hours of employment
for local citizens, retention by ITC of the building at the end of the lease term and an
option to extend the lease for up to 40 years.
CRIPPS asked if projected revenue would cover expenses of the dock operation.
Schaefermeyer replied that expenses would be covered, and he noted that the city was
applying for an EDA grant from the federal government to help fund the extension of
the dock by 250 feet. He noted the need to replace the fender system to handle heavier
barges. He added that the city could eventually need other revenues to cover debt
service payments on the dock, but employment offered to the community would offset
any loss of revenue to the city.
In answer to a question from WHITE, SCHAEFERMEYER stated that three to five
barges would be utilizing the dock per week.
In answer to a question from BENCARDINO, SCHAEFERMEYER stated that hog
fuel could be utilized for fuel and for developing pellets to burn in boilers for heating.
He noted that power, which amounted to about $100,000 per month for fuel, was one
major cost of running the mill.
DUNHAM stated that she was in favor of the lease, but she would like to see the
building retained for future use.
Note: Dunham was excused at 7:20 p.m.
The council discussed various issues concerning hog fuel. SCHAEFERMEYER
relayed that the cost, about $85,000 per month, to provide lighting and electricity to the
plant would be discussed during negotiations.
WHITE stated that he would like to see a year-round operation rather than just
three months each year.
CRANE spoke in favor of the lease since no added debt to city would be incurred,
and the added jobs were needed in the community. He noted, however, that he would
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not want the city to bear the entire cost of power. He also noted that substantial
incentives were included in the lease provisions.
Bencardino moved to authorize the city administration to proceed with lease
negotiations with ITC for operation of the sawmill; the motion was seconded by White
and carried with five "YES" votes. Councilmember Swartz abstained since she is a
shareholder in CAC.
B. Direction to city administration regarding the FYl993 budget.
CRIPPS stated that now was the time to bring up any suggestions concerning the
budget. He noted that two people worked on contract to the city, the lobbyist and the
city attorney, at a cost to the city of about 1/4 million dollars per year. He asked the
council to consider what the city could continue to afford. He added that with
curtailment of funds coming from Juneau, the upcoming year looked stark for gaining
revenues from the state. He stated that there were a number of projected expenses
coming up including possible additional power costs at the sawmill, the proposed Nash
Road boat harbor expansion and various capital improvements. He recommended
reducing the legal budget by $75,000 for a total of $100,000 and cutting the lobbyist
budget in half from the current $75,000.
CRANE asked what services were provided by the lobbyist. SCHAEFERMEYER
replied that city lobbyist Dawson would consider reduction of his fee, but he would want
to renegotiate the agreement which would include a release. from lobbying strictly for
Seward as the only municipality on his account. SCHAEFERMEYER noted that the
agreement currently stipulated that Dawson would not work for other municipal clients.
He added that a reduction in the fee would also affect the amount of time devoted on
behalf of the city. In addition, the lobbyist could find himself in conflict at times
regarding items he would pursue on behalf of the city.
CRIPPS stated that the city should keep the lobbyist and that the city could not
afford not to keep him.
BENCARDINO suggested talking to Dawson to see what could be worked out
because it was time to cut back on the budget.
taxes.
CRIPPS stated that programs and services should. be cut back before raising any
SWARTZ asked what projects Dawson had helped Seward obtain.
SCHAEFERMEYER replied that Seward had received a grant totalling $9.5 million
for the Seward to Lawing transmission line project, and, last year, funds were received
to construct the bike trail along the waterfront. He noted that last year not many capital
dollars were distributed by the state, so Seward did not obtain much. He relayed that
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most projects are brought before the legislature for a number of years before funding is
received. He reported that Dawson was currently working on funding for the Alaska Sea
Life Center, the hospital, matching funding for restoration of the Lowell Point Sewage
Treatment Plant, funding for a bill regarding bonding and other water and sewer
proj ects.
BENCARDINO added that there were also times when Seward needed to lobby
against certain issues. WHITE concurred.
SCHAEFERMEYER stated that now was a crucial time to retain the services of the
lobbyist because with reapportionment, Seward would be represented in a new district
by freshmen legislators.
WHITE stated that he would not be against having the administration explore the
possibility of hiring an in-house attorney. CRIPPS concurred and asked if a study was
done recently.
SCHAEFERMEYER replied that a legal services study was done by Peat Marwick.
and that information gathered from other communities comparable to Seward was
included.
Cripps requested information on the legal services study.
CRANE agreed that attorney fees needed to be cut. He noted that the city could
look for a replacement contracted attorney as well as seeking an in-house attorney. This
process would provide a good comparison.
BENCARDINO stated that he preferred advertising requests for proposals.
KRASNANSKY concurred, stating that the subject had come up before.
In answer to a question from WHITE, SCHAEFERMEYER stated that the animal
control officer would be resigning and was proposing to leave the city. He noted that
when another person was rehired, the position could revert back to part time, 30 hours
per week, so a temporary person could be hired to care for the animals when the officer
was off or on vacation.
CRIPPS asked if the city would have enough revenue to cover expenses.
SCHAEFERMEYER replied that there would be enough revenue, but no projection could
be made on capital budget items costing more than $20,000.
KRASNANSKY asked about cross training of employees to fill in gaps and offer
added training to employees to enhance their jobs, especially in the finance department.
SCHAEFERMEYER answered that where it was practical and sensible, the city tried its
best to provide training.
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In answer to a question from BENCARDINO concerning the position vacancy of
the assistant finance director, SCHAEFERMEYER answered that interviews were
currently being conducted. BENCARDINO suggested a delay in filling the position.
SCHAEFERMEYER stated that he saw no need to make personnel cuts, but maybe
the answer was to reduce programs which were not cost effective and were not being
heavily utilized by the public.
CRANE asked what the policy was concerning depreciation. SCHAEFERMEYER
replied that the city had never funded depreciation and he did not think it was within
the capacity or fiscal tolerance of the public to set rates to recover the costs of
depreciation of utilities. He stated that, to his knowledge, no other community or
government funded depreciation. He noted that if the council wanted to begin
implementing recovery through depreciation, he would need some direction.
CRANE asked about the process of the motor pool fund. He stated that vehicles
in poor condition should be funded for replacement. He suggested taking a serious look
at reallocating funds from Parks and Recreation into Public Safety for vehicle
replacement.
SCHAEFERMEYER stated that the motor pool fund basically allocated funds to
purchase replacement vehicles. He noted that the goal was to budget for replacement
of three vehicles per year and this year's purchases included a 1 ton truck for the city
shop, a police vehicle and a 4x4 truck for the electric department. He added that each
of the departments utilizing the motor pool fund would pay an annual fee back into that
fund so that money was available to purchase future vehicles.
Note: Dunham returned at 8:25 p.m.
SCHAEFERMEYER stated that the parks and recreation department was
reviewing all programs and would be prioritizing which programs to keep and which
programs to cut according to usage in the past few years.
WHITE stated that something needed to be cut in order to acquire needed capital
projects. He asked what the impact would be on the finance department if the assistant
finance director were not hired. SCHAEFERMEYER replied that the principal duties of
the assistant were to manage all of the city's accounts. Headde~ that after many years
of being understaffed, the department was now properly staffed and operating smoother.
He stated that the finance director was responsible for financial planning, risk
management and administrative services to the, other city departments. He informed
White that if personnel cuts were made in the finance department, payment to vendors
could be slower, payroll could be changed to monthly and grant reporting would be
done in a less timely manner since, the assistant was responsible for grants.
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April 13, 1992
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1.
CALL TO ORDER
The April 13, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember White led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4a.
PROCLAMATIONS
Mayor Cripps presented the following Proclamations:
A. Designating April as Sexual Assault Awareness Month. Presented to
Rachel James, representing Seward Life Action CounciL
B. Designating April as Child Abuse Prevention Month. Presented to Rachel
James, representing Seward Life Action Council.
C. Designating April as Alcohol Awareness Month. Presented to Dean
Shoffner, representing Seward Life Action Council.
D. Designating Mayas Mental Health Month. Presented to Gabby Armstrong,
representing Seward Life Action CounciL
E. Designating April 12-18, 1992, as Medical Laboratory Week. Presented to
Jonathan Sewall, representing Seward General Hospital.
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April 13, 1992
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Volume 28, Page.z
4b. APPROVAL OF MINUTES
Krasnansky moved to approve the March 23, 1992, regular meeting minutes and
the April 2, 1992, special meeting minutes as presented; the motion was seconded by
Dunham and carried by unanimous vote. '
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Swartz.
Dunham moved to meet in an executive session immediately following the close
of business to discuss the ombudsman's draft report; the motion was seconded by
Krasnansky and carried by unanimous vote.
Cripps moved to meet in an executive session immediately following the close
of regular business to discuss the city manager's contract; the motion was seconded by
Bencardino.
Schaefermeyer waived the mandatory prior notice that he was to be the subject
of an ~xecutive session and stated that he had no objection to the Council's proposal to
discuss his contract in a closed meeting.
The question was called, and the motion carried by unanimous vote.
Dunham reminded Council that it was time to begin the annual evaluation of the
Manager, Clerk and Attorney and stated that it was unfortunate that the Manager's
evaluation was not completed prior to contract discussions.
Cripps moved to meet in an executive session immediately following the close
of regular business to discuss new Pruitt lease negotiations; the motion was seconded
by Dunham and carried by unanimous vote.
The question was called, and the regular meeting agenda was approved as
amended by unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the ~arch 17, 1992, and the April 7, 1992, assembly meetings.
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7.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
GERRI HANSCHEN, 201 Bear Drive, representing Seward Trailblazers, spoke in
opposition to the proposed annexation of property between Nash Road and Bear Lake.
She stated that city staff remarks made at the Planning Commission meeting showed a
lack of sensitivity to the wishes of those living outside the city and in the vicinity of the
property proposed for annexation.
BRIAN COLLIER, Nash Road, stated that development of the area proposed for
annexation would adversely affect tourism. He added that residential development
would also negatively impact recreational uses such as skiing and snowmachining.
pICK TROEGER, Kenai Peninsula Borough Planning Director, 272 Lupine Street,
Soldotna, stated that his comments regarding the proposed annexation represented the
opinions of Mayor Gilman and the borough administration. He added that this issue had
not yet been taken to the borough assembly and, therefore, his remarks should not be
construed to represent borough policy. He stated that the administration continued to
be supportive of annexation to meet the real needs of the city; however, if the annexation
had been proposed in order to control what the borough might do with the land in the
future, the administration might take a different position. He asked that the borough be
kept fully informed regarding future plans, noting that the borough had not been
notified prior to the public hearing held before the local Planning Commission. Troeger
also stated that the borough would like to be involved in the development of the city's
plans for the area. He also objected to the city administration's implication that the lands
in question had been selected primarily to meet the need for future growth of the city.
He stated that the borough had asked the city for advice on the lands it might need for
future expansion; however, these lands were not selected specifically for future city
development. Troeger stated that the borough was signatory to the management plan
for the Iditarod Trail and would continue to show its commitment to the plan. Finally,
Troeger stated that the administration was reserving judgement on the proposal at the
current time.
BRUCE SIEMINSKI, Jesse Lee Heights, complained about the cost of legal fees.
He stated that he blamed the Council, not the city attorney, for this situation and he
chastised the Council for not keeping campaign promises to cut legal costs. Sieminski
also voiced his opposition to placing the grain terminal sale proceeds into an acquisition
fund rather than a land fund. He added that if Kobuk (the city's partner in the grain
terminal sale) was delinquent in paying its share of storage costs, the company should
not get a share of the proceeds.
MARK WENGER, Woodland Hills Subdivision, recommended that the city
develop a management plan for {he area which it proposed to annex, taking into
consideration potential recreational, residential and commercial uses of the property. He
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suggested that this plan be developed in partnership with the borough, the U. S. Forest
Service, and other key agencies.
DIEDRE ST. LOUIS, Woodland Hills Subdivision, stated that she was opposed
to the proposed annexation at this time. She stated that adequate time had not been
devoted to planning the project, specifically to protection of the lditarod Trail. She
suggested that a l000-ft. corridor along the trail be maintained. She added that the
Council should not approve going forward with the annexation until the city had
developed a plan for zoning the property. St. Louis stated that she preferred to see state
or borough rather than city control of the land, adding that she was concerned that her
area might be annexed next.
CAROL BARDARSON, Mile 7, Old Mill Subdivision, stated that she was opposed
to the proposed annexation.
BONNIE PARADA, Bear Lake, stated that she wished to see some sort of plan for
future .zoning and development of the property. She stated that the primary issue was
one of quality of life and added that it was important to preserve this property in its
natural state.
MARK BEALS, 534 Second Avenue, spoke regarding the proposed annexation.
He stated that it was important for the city to take on primary planning for fire response
to the annexed area immediately rather than waiting until the area was developed. Beals
also filed a petition bearing over 200 signatures of those opposing the annexation.
JIM PRUITT, Forest Acres, addressed the Council regarding the Seward Ship's
Chandlery lease proposal. He suggested that Council schedule a work session to address
the lease rate and insurance issues.
RECESS:
The meeting was recessed at 8:30 p.m. and reconvened at 8:35 p.m.
DEBBY SMITH, Mile 23, stated that she was opposed to the proposed annexation.
DON WALLACE, Meridian Park, Bear Lake, stated that he agreed in concept with
the proposal to annex the property; however, he would like to see some sort of plan for
zoning and development prior to action by the Council.
8. APPROV At OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by Crane and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-043. authorizing a city application for certified local
government status, was approved;
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B. Resolution No. 92-048, increasing the contract amount for the purchase of
a vehicle for the Transmission Line, was approved;
C. February 1992 invoice for legal services from Perkins Coie totalling
$26,320.50 was approved for paymentj
D. Application for renewal of liquor license as filed by APOLLO RESTAURANT
was noted and the Clerk was instructed to issue a letter of non-objection to the renewal;
E. Request for Council authorization to proceed with the acquisition of Lots
3 & 4, Block 12, Cliff Addition, offered as a donation to the city by Ms. Shirley Neely was
approved;
F. Informational report listing purchase orders issued which total between
$5,000 and $10,000 was noted;
G. Applications for permits for games of chance and skill as submitted by SIFA
and KNIGHTS OF COLUMBUS were noted;
H. Informational report regarding electrical power outages was noted; and
I.
Resolution No. 92-049, amending the Harbor Fund Budget, was approved.
9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law to
determine if the proposed Dairy Hill Sewer Improvements were necessary and in the
public intere5t was noted, and the public hearing was opened.
PAT WILLIAMS, 604 Sixth Avenue, stated that she owned several lots in the Cliff
Addition and wished to add her support for the proposed sewer improvements.
RANDY KNOPIK, 1411 Chamberlain Road, stated that he could not make a
decision regarding the proposed improvement until the city answered several questions
including the projected cost of the line and its location. He noted that he had a DEC-
approved septic system which was approved in 1980 and asked if this system would still
be acceptable to lending institutions in another 10 years.
HERMAN LEIRER, 101 Dairy Road, stated that a lot of his land was included in
the proposed district even though the line would not be accessible to these lots. He
asked to have these lots excluded from the improvement district. He also asked to have
two lots in Cliff Addition excluded.
HAROLD FAUST, 1405 Vista Avenue, stated that he would favor the proposed
improvement, but stated that he would like to have more information before giving his
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approval. He questioned why more information was not made available to the residents
of the district and asked why they were not given a chance to vote on the improvement
as they were the last time it was proposed.
RON HENDERLONG, 103 Dairy Hill, stated that the residents of the proposed
improvement district did not have enough information to make a decision at this time.
Noone else appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY None
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC f 7.15.010, Camping, and providing
for penalties for violations of camping regulations.
Crane moved to introduce proposed Ordinance No. 92-08; the motion was
seconded by Dunham.
In response to a question from Crane, Parks and Recreation Director Chaffin stated
that it was discovered during the last camping season that the city had no enforcement
provisions in the Code for violations of camping regulations. She stated that this
amendment would allow the city to fine, evict or tow offenders from city campgrounds.
I<rasnansky asked for the number of violators and amount of lost revenue from
last summer to be provided before the public hearing.
Dunham stated that it was not fair to those who pay for camping if those who did
not pay went unpunished. She stated that the Parks and Recreation Deparbnent had
attempted to make the campground program self sufficient and deserved Council's
support.
The question was called, and the ordinance was introduced by unanimous vote.
Public hearing was scheduled for April 27, 1992.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
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An Ordinance of the City Council of the City of Seward,
Alaska, rescinding Resolution No. 85-106 and amending SCC
~ 2.30.225 to redefine the role of the Planning Commission
to include the duties of the Historic Preservation Commis-
sion.
Dunham moved to introduce proposed Ordinance No. 92-09i the motion was
seconded by Krasnansky.
Dunham stated that for all of the years she had lived in Seward, she had watched
the town allow things to be torn down which had historic value. She stated that she was
happy to see the establishment of the Historic Preservation Commission.
The question was called, and the ordinance was introduced by unanimous vote.
Public hearing was scheduled for April 27, 1992.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 12.01.020, numbe~g of buildings.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
White moved to enact Ordinance No. 92-06: the motion was seconded by
Bencardino.
Krasnansky moved to amend the ordinance by deleting Section Di the motion
was seconded by White. [Section D set height and other requirements for house
numbers.]
Krasnansky stated that the current code was adequate and if enforced, would be
sufficient to regulate house numbering.
Schaefermeyer stated that this change was being requested to improve the
visibility of addresses for those participating in emergency response; i.e., ambulance, fire
and police personnel. He noted that research on house numbering had found that
numbers must contrast with their background to make them visible from the street.
Schaefermeyer stated that this Code provision had been introduced for the homeowner's
benefit. He stated that the borough and city were going to an enhanced 911 system to
facilitate response in times of emergency, but to make this work, area homes must be
clearly numbered. )
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Krasnansky stated that Section C of the ordinance would take care of the visibility
issue. He stated that there was no need for dimensional requirements for the numbers.
Schaefermeyer stated that the city still needed some minimum standard to avoid
conflicts in the future. He recommended that the Council enact the ordinance as drafted.
Crane stated that this provision (Section D) was a good idea. He noted that many
homes were set back from the street making it difficult to read smaller numbers. Crane
added that compliance with this ordinance would be a minimal expense to provide better
response to citizens in times of emergency.
Swartz stated that if this ordinance was enforced, she would support it.
Bencardino stated that he agreed with the administration that this code change
was necessary. He, too, urged strict enforcement.
The question was called on the amendment, and the motion failed with Dunham
and Krasnansky voting YES and Bencardino, Crane, Cripps, Swartz and White voting
NO.
The question was called on the main motion, and the ordinance was approved
as amended with Bencardino, Crane, Cripps and Swartz voting YES and Dunham,
Krasnansky and White voting NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC i 2.10.075 B., Decorum of Persons
Addressing the Council.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened.
TIM MOFFAT, Mile 1, Exit Glacier Road, stated that the constitutional right of free
speech was not intended to protect only the rights of those who were polite and agreed
with the views of the governing body. He urged the Council not only to vote against
this ordinance but to repeal that section of the City Code dealing with the decorum of
those addressing the Council.
No one else appeared in order to be heard, and the public hearing was closed.
Dunham moved to enact Ordinance No. 92-07: the motion was seconded by
Swartz.
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",
Dunham stated that she believed that people should be allowed to address the
Council whenever they pleased; however, threatening, impertinent and personal remarks
had been made about city employees, and these employees should not have to put up
with harassment and continual threats and abuse. She stated that the Council owed city
employees as much loyalty as they had given the Council. She added that there were
some members of the public who would not speak out any more because of the
intimidation they felt as a result of tirades on the part of others.
Krasnansky stated that he had sat on both sides of the dais and agreed that, in the
past, dissent had been stifled from the chair. He stated that he had done everything he
could to make sure that people were given a chance to be heard; however, city
employees should not have to take the kind of abuse they had been receiving lately. He
stated that he intended to support the ordinance as written.
Swartz stated that television coverage of the meetings had provided a forum to
those who could not get an audience anywhere else.
White stated that the addition of the word threatening was a good one, adding
that a public forum was not a place to make threats.
Crane agreed that this ordinance was needed. He stated that he did not feel
employees should be called on to take the abuse they had been taking, adding that it was
in the public's best interest to stop what had been happening lately. He noted that he
wanted people to be heard, but limits were needed.
Cripps stated that he was as mindful of first amendment rights as anyone else.
He stated that he was mindful of civil liberties and the right of free expression, but there
were limits to the place where individual expression became more than expression of
individual ideas.
The question was called, and the ordinance was enacted by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the administration to proceed with a
petition for annexation of approximately 5,375 acres along
the Seward Meridian Valley between Nash Road and Bear
Lake.
Crane moved to approve Resolution No. 92-044; the motion was seconded by
Dunham.
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Dunham moved to amend the resolution to state that the Iditarod Trail ROW
would be guaranteed; to provide for a separate taxing level for this area until the city
could provide services equal to those in town; and to assure that the Bear Creek Fire
Department was not infringed upon; the motion was seconded by Swartz.
Arvidson stated that multiple service taxing areas could only be established by
ordinance. He suggested that the Council postpone action on her amendments until the
next meeting.
Dunham withdrew her motion under condition that the administration would
bring something back to the Council at the next meeting regarding her concerns; the
second concurred.
Bencardino stated that he would like to see the area proposed for annexation
reduced to that area south of Glacier Creek.
Schaefermeyer suggested that the Council postpone action on the resolution with
instructions to revise the boundaries if that was the wish of the Council.
Dunham stated that it was not her intention that withdrawal of her amendment
would result in delaying a vote on the resolution.
Krasnansky stated that it was in the city's best interest to annex at least a portion
of the area under consideration; however, the city probably did not need all of it. He
suggested remanding the issue back to the Planning Commission for additional planning
as requested by the residents of the area.
Dunham stated that this proposal did not come about because of any action
initiated by the Planning Commission, but because of comments she had made regarding
the Nash Road Small Boat Harbor. She stated that, if the Nash Road Boat Harbor should
be constructed, there would be development in the uplands area proposed for
annexation. She added that she wished to see the city grow in an orderly manner.
Krasnansky moved to remand the resolution back to the Planning Commission
for the development of a zoninglland use plan of the area proposed for annexation; the
motion was seconded by White.
White stated that he would like to see P&Z develop a Land Use Plan with the
involvement of land owners in the area, city residents and representatives of the Kenai
Peninsula Borough. Crane concurred.
Cripps stated that he had been attempting to get a hill set aside within the city for
kids to use for sledding and had been discouraged for numerous reasons, principally that
the liability to the city would be prohibitive, and now the Council was talking about
taking on the Iditarod Trail. He stated that this must be addressed before he could vote
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in favor of the resolution. He stated that he had no objection to annexing something
if there was a plan and if there was a clear need for it. He stated that he supported
remanding this back to the Planning Commission.
Dunham stated that the city was often accused of not planning far enough in
advance. She added that the Council had an obligation to try to plan for the city's
future, and this proposed annexation was a part of this planning process.
Krasnansky moved to remand the resolution to the Planning Commission with
instructions to develop a plan and to reduce the boundaries of the area proposed for
annexation; the motion was seconded by White and carried with six YES votes and
Dunham voting NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, determining to proceed with the special improve-
ment district called the Dairy Hill Sewer Assessment
District.
Crane moved to approve Resolution No. 92-045; the motion was seconded by
White.
Dunham suggested that the Council postpone action until some of the questions
raised by residents of the proposed assessment district could be answered. Bencardino
concurred, but stated that he did not know how the city could give enough information
to satisfy the residents at this time.
Schaefermeyer stated that this project had been on the state/federal loan fund list
for a number of years and had finally made its way to the top of the list. He stated that
the funds provided under this program would be loaned to the city at a reduced interest
rate. Schaefermeyer stated that this type of borrowing was generally considered a
revenue bond, and the City Charter provided that revenue bonds required a city-wide
vote. However, the Department of Environmental Conservation (the funding agency)
might consider lending the money if the funds were secured by an assessment district.
Schaefermeyer noted that the loan would be given to the city in two parts, with
the first totalling $45,000 to allow the city to design the system and get it ready for bid,
and the second totalling $500,000 for construction of the improvements. He stated that
the Council could override the objections of residents of the proposed district. He also
stated that this project was a bit of a gamble for the affected residents since he could not
at this time state with assurance the total cost of the project.
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Cripps stated that most of those testifying seemed to be in favor of the proposed
improvements, but were reluctant to support the project until they knew the approximate
cost. He asked if the Council could back out once the engineering was completed once
this resolution was approved. Schaefermeyer responded that the Council could decide
not to construct the improvements, but the affected property owners would then be
assessed the cost of the engineering and would, in effect, be paying for something that
they did not receive.
Schaefermeyer stated that the city was comfortable that the project could be
constructed within the $500,000 available from the loan fund. He stated that he was now
prepared to suggest that the Council reduce the size of the district by eliminating the lots
owned by Leirer which could not access the new sewer line. He noted that this
reduction in the size of the district would increase the per lot cost to those remaining in
the district.
Bencardino asked if there were any critical areas which should be addressed
immediately. He stated that several of the septic systems currently utilized did not
function properly and could create a health hazard.
Diener explained the proposed district, referring to a map displayed in the
Chambers. He noted areas where sewers were needed to cure problems with drainage.
Crane suggested that additional information be given to residents of the area prior
to Council action on this issue.
Bencardino stated that he favored proceeding with the district despite any
objections from the property owners. He noted that something must be done in this area
even if the people did not agree.
Krasnansky stated that the city should address nonconforming septic systems and
force the owners to bring them into compliance.
Schaefermeyer stated that he had talked to DEC about this area and had been told
that, generally, DEC responded only if they received a complaint or to inspect at the
request of the banking community when residences were sold. He noted that banks now
required certification that a septic system be DEC-engineered and approved before they
would lend on the property.
.Schaefermeyer suggested that Council amend the resolution at this time to reduce
the size of the district by eliminating Leirer's property. He also suggested that it was
possible to go forward with a vote of the people on this issue and thereby spread the cost
of the improvements throughout the entire sewer utility. He stated that he was now
more inclined to take this to a ballot. He recommended postponing action on the
resolution at this time. He warned, however, that the problem must be addressed during
this construction season.,
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White noted Scholl's letter showing the assessment district vote taken in 1984. He
noted that, at that time, affected property owners were told how much the improvements
would cost. Schaefermeyer stated that in 1984, the city had access to engineering data
as well as state grant money for the project, giving the city a fairly good idea of what the
costs would be. He noted that this was not true at this time.
Bencardino moved to postpone action on the resolution until April 27, 1992; the
motion was seconded by White.
Krasnansky stated that postponing action on the resolution was not going to
change anything because until the city could answer the questions raised by residents of
the area, a decision could not be made.
Schaefermeyer concurred. He suggested that the city consider financing the
improvements through the sale of sewer revenue bonds. He noted that this would
require all utility rate payers to pay the cost of the engineering if the project could not
go forward.
In response to a question from White, Schaefermeyer stated that all residents of
the improvement district would be required to hook into the new system.
The question was called, and the motion to postpone until April 27th was
approved by unanimous vote of the Council.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the payment of past due sales tax to the
Kenai Peninsula Borough.
White moved to approve Resolution No. 92-046; the motion was seconded by
Swartz. The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the City Manager to proceed with the
acquisition of Parcels 18, 19 and 20 to provide right of way
for the Seward Transmission Line and authorizing a right of
entry permit giving the city immediate access pending final
disposition of the property.
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Krasnansky moved to approve Resolution No. 92-047; the motion was seconded
by Swartz. The question was called, and the resolution was approved by unanimous
vote.
RECESS:
The meeting was recessed at 10:30 p.m. and reconvened at 10:40 p.m.
12. UNFINISHED BUSINESS
A. Seward Ship's Chandlery lease appraisals. This item was first postponed
from the January 27, 1992, meeting and then once again from the March 23, 1992,
meeting. The following motion was on the floor, having been made by Krasnansky on
January 27, 1992:
Krasnansky moved to accept the administration's recommendation to consider the
existing lease as separate from the new lease being negotiated, to set the lease rate
for the existing lease at $31,500 annually, and to move the issue of the lease rate
to arbitration if the city and Pruitt do not come to a mutually agreed upon lease
rate; the motion was seconded by Dunham.
Krasnansky moved to postpone action until April 27, 1992; the motion was
seconded by Swartz and carried unanimously.
13. NEW BUSINESS
A. Claims for damages as follows:
1. Toshua C. Lewis - $988.73. Crane moved to pay the claim for
damages totalling $988.73 as submitted by Joshua C. Lewis; the motion was seconded
by White and failed with seven NO votes. (Electrical power claim)
2. Greg Thrall- $5.853.00. White moved to pay the claim for damages
totalling $5,853.00 as submitted by Greg Thrall; the motion was seconded by Dunham
and failed with seven NO votes. (Electrical power claim)
3. Helmut Osten - $1.00- $1,000.00. White moved to pay the claim for
damages totalling between $1.00 and $1,000.00 as submitted by Helmut Osten; the
motion was seconded by Dunham and failed with seven NO votes. (Electrical power
claim)
4. David H. Lindquist - $224.00. White moved to pay the claim for
damages totalling $224.00 as submitted by David Lindquist; the motion was seconded
by Dunham and failed with seven NO votes. (Electrical power claim)
5. Victoria and Mitchell Tohnson - $561.00+. Crane moved to pay the
claim for damages totalling $561.00+ as submitted by Victoria and Mitchell Johnson;
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the motion was seconded by White and failed with seven NO votes. (Electrical power
claim)
6. Andy L. Christensen - $905.00. Swartz moved to pay the claim for
damages totalling $905.00 as submitted by Andy L. Christensen; the motion was
seconded by Crane and failed with seven NO votes. (Electrical power claim)
7. Henry T. Munson - $2,285.52. Dunham moved to pay the claim for
damages totalling $2,285.52 as submitted by Henry T. Munson; the motion was
seconded by Crane and failed with seven NO votes. (Electrical power claim)
8. Manuel N. Tadina - $855.00. White moved to tender the claim for
damages totalling $855.00 as submitted by Manuel N. Tadina to the city's insurance
carrier for a determination of liability; the motion was seconded by Dunham and
carried by unanimous vote. (Vehicle damage claim)
B. Community Hospital Board Appointment Crane moved to continue this
item until April 27, 1992, to afford the Community Hospital Board the opportunity to
recommend an applicant for appointment; the motion was seconded by White.
Krasnansky asked that the Mayor's nominee make a statement to the Council at
the next meeting.
The question was called, and the motion carried by unanimous vote.
C. Trade Board Appointment There being no objection from the Council,
Cripps appointed John Baird to the vacant seat on the Trade Board for a term to expire
in November 1992.
D. Nomination for a seat on the AdvisoI)" Board for the Oil Spill Recovery
Institute. There being no objection from the Council, Cripps appointed Dale White as
the city's nominee to serve on the Advisory Board for the Oil Spill Recovery Institute.
14. CITY MANAGER REPORTS
Schaefermeyer stated that on March 23rd, Dunham had requested that the
administration communicate with local schools regarding excused absences for students
unable to attend school because of snow slides on Lowell Point Road. He stated that
school officials had informed him that such absences had always been considered
excused.
Schaefermeyer noted that negotiations between Chugach Alaska Corporation
(CAC) and Idaho Timber Corporation (ITC) were continuing, and a proposal had been
submitted to the bankruptcy court for approval. He stated that the court would consider
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the ITC proposal and others on Thursday, April 16th. Schaefermeyer stated that he
would attend the hearing on behalf of the city.
Schaefermeyer stated that he and Diener would meet with Alaska Industrial
Development Authority (AIDA) officials in Anchorage on Tuesday to solicit AIDA
participation in the B Street Dock Project.
Schaefermeyer noted that Bruce Sieminski had raised questions concerning the
grain terminal. He stated that the city had an agreement with Kobuk Seed & Feed, and
it was his intention to recommend that the Council honor this agreement even though
certain payments had not been made. He stated that any back due payments to the city,
plus interest, would be taken from the proceeds of the sale of the grain terminal prior to
distribution of the profits to the two parties. Schaefermeyer further noted that there was
no city land fund at this time; however, he suggested that such a fund be created from
the proceeds of any future land sales.
Schaefermeyer reported that he and Mayor Cripps had discussed the strategic plan
for coal and the future of the coal business in the state of Alaska with some of the players
including former Seward City Manager and current Deputy Commissioner of Commerce
Ron Garzini. He stated that he had received a summary of the coal strategic plan which
was being advanced by the governor in the legislature and added that former Mayor Noll
had requested the city's support of this plan. Schaefermeyer stated that he had asked
city lobbyist Kent Dawson to meet with Garzini on Tuesday to discuss what the city
could possibly do to advance this effort. He stated that he would provide the Council
with a copy of the plan. Schaefermeyer stated that the coal project was at a critical bench
mark which might need considerable effort and support on the part of the city and state
to see it continue forward.
15. .cOUNCIL DISCUSSION
SWARTZ asked about an article in the Phoenix Log regarding Oscar Bailey's
proposal to establish an ore extraction business. Schaefermeyer stated that he did not
know to what degree Bailey had progressed in his permitting process. He noted,
however, that Bailey was a proposer when the city originally proposed to obtain the
grain terminal from the state.
DUNHAM stated that at its joint work session, the Hospital Board and the Council
had discussed what the city might be able to do to obtain the funds for the city's share
of hospital replacement costs. She asked Schaefermeyer to discuss this with the Bond
Bank to determine what the city could do as far as bonding for this project.
DUNHAM stated that it was unfortunate that there were so few people in the
audience when the Corps of Engineers represe:ntaQ,ve had addressed the Council
regarding harbor development in Seward. She stated that it would have been very good
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Volume 28, Page 17
for everyone in the community to have known what the Corps thought of the different
proposals for boat harbor expansion and development.
CRANE stated that he, too, was disappointed that the newspaper had not
attended the Corps of Engineers presentation. He also noted that the Council and the
Community Hospital Board had conducted its first quarterly work session. Crane
thanked those who had written to the Council and who had testified on various issues.
He also thanked those involved in the treatment of victims of sexual assault and child
abuse for the important. service they provided to the community.
WHITE stated that, with the borough considering a mil rate increase, he did not
want the city to raise taxes this year. He stated that he would prefer to see budget cuts
first.
BENCARDINO thanked Brian Collier for his presentation earlier in the meeting
regarding the effect annexation would have on him. He asked Schaefermeyer for a status
report on the boat harbor permit application. Schaefermeyer stated that the administra-
tion was attempting to get the application in the mail within the next week. Bencardino
also concurred with White that the public was expecting the city to make some cuts;
otherwise, there would be serious problems next year. He stated that there was no need
to raise taxes if the Council made the right moves this budget year.
CRIPPS stated that he appreciated Schaefermeyer's comments regarding coal
problems. He noted that current coal operations represented 100 jobs statewide. He
added that a decrease in the amount of coal exported would have implications for the
city of Seward, the state's economy and the balance of trade between Alaska and the
Pacific Rim. He stated that he hoped that through combined efforts the parties involved
could ameliorate conditions and enhance a solution to the problem.
16. .CITIZENS' DISCUSSION
BOB VALDATTA, 528 Fifth Avenue, spoke regarding the coal package Garzini
was putting together. He also addressed camper violators and suggested that rather than
towing or impounding violators that the city chain them to a barrel as was common in
Anchorage.
DICK SHEELY, Harbor Lights Condo No.7, stated that he was glad to hear that
the city was progressing with the boat harbor permit application process. He stated that
the public would have attended the work session if it had been better advertised. Sheely
stated that the community needed the Nash Road project.
W AL T SZYWINSKI, 611 Monroe, asked if the city was responsible for defending
the hospital and local doctors in the Taylor vs. Seward General Hospital lawsuit.
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City of Seward, Alaska
April 13, 1992
City Council Minutes
Volume 28, Page 18
W ALTER CHRISTO LEAR, Apt. No.2, Brown & Hawkins, stated that city
employees should take a 10% pay cut and that they should be required to take six weeks
of leave and be paid for only three. He also suggested that the Council cut the attorney's
budget by twenty-five percent (25%). Christolear then suggested that the Council sell the
shiplift to Jim Pruitt for $2.00 rather than enter into a use agreement with him. He asked
why the owners of Ray's Restaurant had been allowed to further expand their facility
over the water. Christolear also complained that the owners of Ray's had never
completed the boardwalk as was required by the lease of the property.
HERMAN LEIRER, 101 Dairy Road, spoke regarding the Iditarod Trail. He stated
that the original Iditarod Trail ended at Susitna Landing, adding that the trail was never
located on the site of the historic trail.
WAYNE CARPENTER, 325 Fifth Avenue, Director of the Seward Chamber of
Commerce, reminded everyone that Congressman Don Young would be in Seward on
Friday to speak at the Chamber luncheon at Noon and would be the Chamber's guest
at a reception in his honor at 6:00 p.m. that evening at the Frontier Restaurant.
Carpenter also asked the Council and the public to consider giving testimony to the
North Pacific Fisheries Management Council with regards to its decision to impose
individual fishing quotas on fishermen in Alaskan waters.
HERMAN LEIRER, 101 Dairy Road, stated that last week's newspaper had
contained a notice regarding an annuity plan which would allow those who wished to
put a portion of their permanent fund dividend in an annuity fund to provide future
retirement benefits. He urged those present to support this plan.
DWAYNE ATWOOD, 305 Third Avenue, editor of the Seward Phoenix Log,
invited the Council and the public to the Log's open house on Thursday at 7:00 p.m. in
the IMS Rae Building. Atwood also commented that he had received a copy of the
Corps of Engineers' draft report and would be preparing an article regarding the Corps'
position on future boat harbor expansion.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
DUNHAM stated that she was willing to sit down with Leirer and record his
reminiscences whenever he had the time to devote.
CITY ATTORNEY ARVIDSON stated that the city would not be entering an
appearance on behalf of the hospital or the local doctors in the Taylor litigation. He
noted that the legal fees earmarked for this litigation were being used to keep the city
from ending up in the middle of this suit.
SWARTZ stated that Atwood would not get everything he needed for his article
from the draft report. She suggested that he talk to some of those who were present at
the Corps' presentation.
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City of Seward, Alaska
April 13, 1992
I 18. ADJOURNMENT
. The meeting was adjourned at 11:35 p.m., and after a short recess, the Council
reconvened in Executive Session to discuss the Ombudsman's Draft Report, the City
Manager's contract and the Pruitt lease negotiatigns-;)
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c:- ,;;trrtLt~J.', ^ ''L-
'Donald W. Cripps
Mayor
City Council Minutes
Volume 28, Page 19
I
1. CALL TO ORDER
.The April 22, 1992, special meeting of the Seward City Council was called to order
at 6:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember White led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
I
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
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City Council Minutes
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4. APPROVAL OF SPECIAL MEETING AGENDA
The Special Meeting Agenda was approved without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Request for Executive Session. Krasnansky moved to meet in an Executive
Session immediately following the close of regular business in order to discuss the
legal position for the city with regards to the Chugach Alaska Corporation bankruptcy
hearing scheduled for 9:00 a.m. on Thursday, April 23, 1992; the motion was seconded
by Dunham and carried by unanimous vote. Swartz noted that as a share holder in
Chugach Alaska Corporation she would refrain from entering into this discussion.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION None
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 6:35 p.m., and the Council immediately reconvened
in an Executive Session to discuss the Chugach bankruptcy.
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Donald W. Cripps
Mayor
. .
SEAL
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City of Seward, Alaska
April 27, 1992
City Council Minutes
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1.
CALL TO ORDER
The April 27, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT was:
Beverly Dunham (excused)
4a. SPECIAL PRESENTATIONS
The Mayor presented a plaque to Brenda Morris, DMV Clerk, recognizing her
outstanding performance in March 1992. Cripps noted that the DMV office was
inundated with applicants for the state-mandated operator's license for drivers of large
trucks and equipment, including applicants from many of the surrounding communities.
During this time, Ms. Morris performed her job professionally and courteously and
managed to process more applications on a daily basis than some offices with three to
four times the staff.
4b. APPROVAL OF MINUTES
Krasnansky moved to approve the April 13, 1992, regular meeting minutes and
the April 22, 1992, special meeting minutes as presented; the motion was seconded by
Swartz and carried by unanimous vote.
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5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Krasnansky.
Schaefermeyer asked to add proposed Resolution No. 92-059, supporting state
funding for Puffin Broadcasting, to the regular meeting agenda. He noted that this
resolution had been requested by Representative Kubina. He further noted that, since
the legislature was scheduled to adjourn on May 12th, this resolution could not wait until
the next regular meeting of the Council.
The question was called, and the agenda was approved as amended by
unanimous vote of the Council.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the April 21, 1992, assembly meeting. He noted that the next regular meeting of the
Assembly would be held in Seward at the High School auditorium on May 5, 1992.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
ANNE CASTELLINA, 2508 Cedar Street, representing the Kenai Fjords National
Park, offered her support for Ordinance No. 92-09 (Substitute). She noted that enactment
of this ordinance would enable the city of Seward to qualify for a number of special
grants and programs. She further noted that the Kenai Fjords National Park would be
undertaking the first of a two-year Historic Resources Study of the park this summer, and
this was an opportune time for the city and the Park Service to work together to develop
a plan for historic preservation in the area.
8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by Crane.
Krasnansky asked the Mayor to rule on a possible conflict of interest he might
have with respect to Consent Calendar Item No. C, approving a contract award to
Homeland Enterprises. He stated that he had recently contracted with Homeland for
some construction work on this house. The Mayor ruled that, since Krasnansky had no
financial interest in the outcome of the vote on the subject resolution, there was no
conflict of interest.
The following actions were taken:
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A. Resolution No. 92-051. authorizing an application for a grant for historic
preservation, was approved;
B. Resolution No. 92-053, approving a contract for library roof repair, was
approved;
C. Resolution' No. 92-054, approving a contract for city hall basement door
installation and appropriating funds, was approved;
D. Resolution No. 92-055, appropriating funds for campground restroom
repairs, was approved;
E. Resolution No. 92-057, authorizing the City Manager to proceed with the
acquisition of Parcel No. 78 to provide right-of-way for the Seward Transmission Line
and authorizing a right of entry permit giving the city immediate access pending final
disposition of the property, was approved;
F. Resolution No. 92-058, authorizing the City Manager to proceed with the
acquisition of Parcel No. 79 to provide right-of-way for the Seward Transmission Line
and authorizing a right of entry permit giving the city immediate access pending final
disposition of the property, was approved;
G. Application for liquor license transfer of location as submitted by APOLLO
RESTAURANT was noted and the Clerk was instructed to issue a letter of non-objection
to the transfer;
H. Application for ABCB restaurant status as filed by APOLLO RESTAURANT
was noted and the Clerk was instructed to issue a letter of non-objection to the restaurant
de~gnationreque&ed;
I. Invoice for March 1992 legal services totalling $26.15 as submitted by Jamin,
Ebell, Bolger & Gentry was approved for payment; and
J. FY 1993 proposed Hospital Budget as approved by the Community Hospital
Board for presentation to the Council was noted for information.
9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law
regarding the proposed acquisition of Lots 5-7, McBride Subdivision, to provide right-of-
way for transmission line construction 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 storage and roof space at the Senior/Community Center
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April 27, 1992
City Council Minutes
Volume 28, Page 24
to South Central Radio, Inc., for installation and operation of a mobile telephone antenna
and transceiver unit was noted, and the public hearing was opened.
BRUCE SIEMINSKI, 1392 Jesse Lee Drive, spoke in opposition to this proposed
lease of a portion of the Senior Center building. He stated that South Central Radio
should rent space from a private property owner, and he added that it was unfair for the
city to compete with private citizens.
No one else appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Brad Snowden - Downtown parking. Snowden noted that he was
representing the Downtown Merchants Association. He presented the Council with a
proposal to help solve what he termed a critical downtown parking problem during the
summer months. He asked that the Council dedicate the proposed area for parking only
and that Council direct the administration to develop the area for parking by placing logs
around the perimeter, grading the area, adding a layer of D-l topcoating, and providing
proper signage. He stated that this plan had the unanimous support of the Downtown
Merchants Association.
B. Eric Wohlforth - City bonding - past. present and future. Wohlforth
introduced Bill Scott, Executive Director of the Alaska Industrial Development and Export
Authority (AIDEA), and Ken Vassar, a partner in the law firm of Wohlforth, Argetsinger,
et.aL Wohlforth briefly reviewed the city's background in tax-exempt financing and his
firm's participation in these issues as well as financing by other public entities. He stated
that the proposed B Street Dock was a perfect candidate for tax exempt financing in
association with AIDEA. Kent Vassar explained the various types of tax exempt bonding
open to the city. Scott explained how AIDEA could help with the financing of the
proposed B Street Dock.
RECESS:
The meeting was recessed at 8:30 p.m. and reconvened at 8:35 p.m.
SPECIAL ITEMS
The Mayor offered those applicants for a seat on the Community Hospital Board
an opportunity to make a presentation to the Council. He noted that this item would
not be decided until much later in the meeting.
BEVERLEY KARGES, 2511 Dimond Blvd., addressed the Council regarding her
desire to be appointed to the Hospital Board. She stated that her primary aim was to see
everyone on the Board working harmoniously together as well as with the city and the
local physicians.
11. ORDINANCES AND RESOLUTIONS
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A.
Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, deleting SCC i 15.10.310, Contract Zoning.
Krasnansky moved to introduce proposed Ordinance No. ,92-10; the motion was
seconded by Swartz.
Krasnansky asked the implications of this ordinance. Schaefermeyer stated that
the provision for contract zoning had been a part of the Kenai Peninsula Borough Zoning
Code which had applied to the city of Seward several years ago. He stated that when
the borough granted zoning powers to the city several years ago, the city had included
this provision in the city's Zoning Code. However, several years ago, the state of Alaska
had revised Title 29 and eliminated the authority granted to boroughs and cities for
contract zoning. Schaefermeyer stated that the city received its zoning authority from
the borough which was bound by state law. Therefore, since the city was no longer
empowered to offer the contract zoning option, it was recommended that this provision
be eliminated from the City Code.
The question was called, and the ordinance was introduced by unanimous vote
of the Council. Public hearing was scheduled for May 11, 1992.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC i 7.15.010, Camping, and providing
for penalties for violations of camping regulations.
Notice of public hearing as posted and published as requircd by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was dosed.
Crane moved to enact Ordinance No. 92-08; the motion was seconded by
Krasnansky.
Krasnansky stated that, according to documentation provided by the Parks and
Recreation Department, the city had lost rcvenues in the amount of $5,000 last year due
to a lack of Code-provided enforcement procedures for camper violations. He stated that
it was in the public interest to provide for collection of these fees.
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City of Seward, Alaska
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The question was called, and the ordinance was enacted by unanimous vote of
the Council.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, rescinding Resolution No. 85-106 and amending SCC
f 2.30.225 to redefine the role of the Planning Commission
to include the duties of the Historic Preservation Commis-
sion.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened.
WAYNE CARPENTER, 325 Fifth Avenue, member of the Planning Commission,
encouraged the Council to enact the ordinance.
No one else appeared in order to be heard, and the public hearing was closed.
Swartz moved to enact Ordinance No. 92-09(Substitute); the motion was
seconded by Krasnansky and carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, determining to proceed with the special improve-
ment district called the Dairy Hill Sewer Assessment
District.
The Mayor noted that action on this resolution had been postponed from the April
13th meeting, and a motion to approve was on the floor.
In response to a question from White, Schaefermeyer recommended that the
Council defeat the resolution and approve instead Resolution No. 92-056 (Agenda Item
NO. 1l.C.4).
Krasnansky stated that it would be, nice to have sewers on Dairy Hill given the
problems with septic tanks in that subdivision. He agreed that the best way to deal with
this issue was to put all residents of the subdivision on the sewer system. He noted,
however, that the election would probably result in defeat of the proposition if additional
information regarding total cost and the burden on the rate payer was not made available
to the voters.
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Manager of Engineering and Utilities Paul Diener, using an overhead projector,
explained the proposed project and showed where the line would be placed and the
properties which would benefit from the improvements. He stated that estimates for the
total cost of the project had been based on a project planning report from 1983 which
had been adjusted for inflation. He noted that there had been no engineering or design
work done on this project at that time as previously indicated by one of the area
residents. He stated that the total estimated cost of the project was $350,000 for
improvements which would serve a maximum of 31 single family residences if the
subdivision were to be, Wlly developed.
Schaefermeyer stated that the debt service would be about $41,000 annually over
a 20 year pedod. He noted that this cost could either be distributed over the entire
utility and repaid by all rate payers of the utility or it could be shared with the utility
absorbing one-half the cost and the benefitted property owners assuming the remaining
burden. Schaefermeyer noted, however, that even with cost sharing, the assessments for
the improvements would represent a large expense to affected property owners. He
added that the city must consider the public health and safety concerns which would
continue if there was no attempt to do something to alleviate the sewer problems in this
subdivision. He stated that it was not very likely that grant monies would be available
in the near future.
White asked why the city was seeking $540,000 when the city estimated that only
$350,000 was actually needed. Schaefermeyer stated that the resolution was asking for
approval for up to $540,000, and that the city would borrow only what was needed.
Bencardino suggested that it might be cheaper for residents of the area to extend
the sewer pipe themselves. Diener stated that it would cost more per house to extend
the line privately; however, a private developer could extend the line without using
Davis Bacon labor and could do the overall project for less than the city could.
The question was called, and proposed Resolution No. 92-045 FAILED with all
present voting NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a lease of storage and roof space at the
Senior/Community Center to South Central Radio, Inc., for
installation and operation of a mobile telephone antenna
and transceiver unit.
White moved to approve Resolution No. 92-050: the motion was seconded by
Krasnansky.
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Crane noted that the agreement with South Central Radio was prepared in house
and without attorney involvement. He stated that he favored this lease since the lease
payment would go towards maintenance of the Senior Center, saving the taxpayer
money.
White stated that South Central Radio had looked at other sites, and the
Senior/Community Center was the best they had found.
In response to a question from Bencardino, Schaefermeyer stated that South
Central Radio could not bore holes into the roof and would be required to fix any leaks
they caused.
The question was called, and the resolution was approved by unanimous vote
of the Council.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the acquisition of Lots 5-7, McBride
Subdivision, to provide right-of-way for transmission line
construction.
Crane moved to approve Resolution No. 92-052; the motion was seconded by
Swartz.
Krasnansky asked if the city owned existing right-of-way over this parcel. Diener
stated that there was an existing right-of-way; however, the line was being re-aligned
through this area and the existing right-of-way was not adequate for this re-alignment.
The question was called, and the resolution was approved by unanimous vote
of the Council.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, providing for the submission to the qualified voters
of the city the question of the issuance of $540,000 of sewer
revenue bonds of the city to pay the costs of planning,
designing, construction and land acquisition for sewer
improvements in the Dairy Hill area at the election to be
held for that purpose in the city of Seward, Alaska.! on June
2, 1992.
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Krasnansky moved to approve Resolution No. 92-056; the motion was seconded
by Crane.
Schaefermeyer stated that approval of this resolution was an absolute necessity if
the city was to move "forward with a loan from the state. He noted that the state
required pledging revenues of the utility before money would be loaned for the project.
White asked how this would affect bonding for repair of the treatment lagoon.
Schaefermeyer stated that the sewer lagoon would require general obligation bonds and
would not be affected by borrowings against the utility.
White stated that if the project did go forward, he favored splitting the cost by
assessing the entire utility for one-half the cost of the improvement and asking benefitted
property owners to pay the other one-half.
Swartz stated that the public health concern must be addressed.
Bencardino stated that the one house that had concerned him no longer had a
sewer problem. He stated that he did not believe the voters would approve the
proposition, and he objected to spending the money for a special election.
Cripps stated that the people should decide this issue since it was the result of a
public health concern.
Krasnansky agreed that the city should approach this issue as one of a public
health concern, and he stated that the money for the election would be well spent.
In response to a question from White, Schaefermeyer stated that the annual cost
to the utility would be small enough that it would not cause a rate increase. However,
rate studies for the water/sewer and electric utilities were in order, and this study might
result in a rate increase.
Swartz stated that she would not be comfortable making a decision to go forward
with the project without voter approval.
Bencardino stated that he was under the impression that the water/sewer utility
was in serious financial trouble and asked how it could possibly handle this additional
debt. Schaefermeyer stated that there was one outstanding debt against the utility which
was due to be retired in 1996. He did agree, however, that it was time to look at the
overall cost of delivering water/sewer service to the customer.
Crane asked if the city could be held liable for environmental damage if the line
was not built. Schaefermeyer stated that the city could be involved if contamination
affected public lands or public water supplies.
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Crane stated that it would be in the public interest to go forward with the election,
and, if approved by the voters, the city go forward from there.
The question was called, and the resolution was approved with five YES votes
and Bencardino voting NO.
5. Copies having been made available to the public and distributed to the
Council prior to the start of the meeting, Cripps noted by title only a proposed resolution
entitled:
A Resolution of the City Council of the City of Seward,
Alaska, supporting state funding for Puffin Broadcasting.
Swartz moved to approve Resolution No. 92-059: the motion was seconded by
Krasn~nsky and carried by unanimous vote.
12. UNFINISHED BUSINESS
A. Pruitt Lease Appraisals. This item of business was postponed from the
April 13th meeting. The Mayor noted that there was a motion on the floor which read
as follows:
To accept the administration's recommendation to consider the existing lease as
separate from the new lease being negotiated, to set the lease rate for the existing
lease at $31,500 annually, and to move the issue of the lease rate to arbitration if
the city and Pruitt do not come to a mutually agreed upon lease rate.
The question was called, and the motion carried by unanimous vote of the
Council.
B. Community Hospital Board Appointment. This item was continued from
the April 13th meeting. The Mayor noted that there was no motion on the floor.
Cripps nominated George Tuthill to fill the vacant seat on the Community
Hospital Board for a term to expire in October 1992; the Council confirmed the
appointment without objection. (Cripps noted that Tuthill had been recommended for
appointment by the Community Hospital Board.)
13. NEW BUSINESS
A. Claim for damages totalling $326.00 as filed by Sam Daniel (Electrical
Claim). Crane moved to pay the claim as submitted by Sam Daniel; the motion was
seconded by Bencardino and FAILED with all present voting NO.
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B. Claim for damages totalling $209.00 as filed by Bill Wood (Damage to auto
- SBH parking lot). White moved to forward this claim to the city's insurance adjuster;
the motion was seconded by Swartz. The question was called, and the motion was
approved with five YES votes and Krasnansky voting NO.
14. CITY MANAGER REPORTS
Schaefermeyer noted a memorandum in the Council packet updating the Council
on the progress made to date on Phase I of the Transmission Line Project. He offered
to answer any questions the Council might have. Schaefermeyer asked Arvidson to
update the Council with regards to the Chugach Alaska Corporation bankruptcy
proceedings.
Arvidson thanked the Council for attending last week's special meeting on such
short notice. He stated that Gordon Tans, Schaefermeyer and Port Marketing Director
Gates had attended the bankruptcy hearing last Thursday. He stated that the Lambda
Corporation offer did not appear to be very viable at this point. He said that the
unsecured creditors had approached Travelers, the only secured creditor, in an effort to
"shake loose" some additional funds for the unsecured creditors; however, Travelers
refused. At this point, Tans let Travelers know that the city might not approve an
assignment of lease if it did not meet the criteria the city had set to assure that the mill
was operational and that jobs were created.
Schaefermeyer stated that he had signed the Corps of Engineers application for
the Nash Road project today and had a letter ready for the Mayor's signature.
Schaefermeyer commented on a letter to the editor in the last issue of the Phoenix
Log, noting that the letter had implied that the sewer lagoon failure was in some way
due to the condition of Lowell Point Road and the difficulty attendant with accessing the
facility. He stated that this was not true and that there was no connection between
maintenance of the road and upkeep of the Lagoon. Schaefermeyer stated that the
Department of Environmental Conservation and others had monitored the city's
compliance and had found the city in compliance in every instance.
Schaefermeyer stated that he had received a letter from American Capital
International, the recipient of the option to sale rights for the Grain Terminal, regarding
the status of the grain terminal sale.
15. COUNCIL DISCUSSION
BENCARDINO thanked the Chamber of Commerce and the Downtown
Merchants Association for the exceptional weekend activity. He noted that the first
annual Chili Cook-Off had been very successful. He added that he was happy to note
that some Spring Creek Correctional Center personnel had joined in the festivities.
( C Sf 155138 )
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City of Seward, Alaska
April 27, 1992
City Council Minutes
Volume 28, Page 32
BENCARDINO thanked Snowden for coming forward with a suggestion for
solving the downtown parking problem.
WHITE asked for an estimated cost to provide the requested parking improve-
ments. Schaefermeyer stated that if the Council wished to move forward with this
request, he would place it on the next agenda for action. He warned that utilizing the
area identified in Snowden's plan would have a substantial impact on city camping
activity and revenues since this was the most popular area for visiting RV campers. He
added that, while this represented only four percent of available camping space, it
accounted for $14,000 in camper revenues last season. Schaefermeyer also noted that he
was concerned that the city would be unable to enforce parking regulations in this
parking lot. He stated that campers wpuld continue to camp there unless the area was
patrolled. Schaefermeyer stated that he and his staff would review the plan and would
come back to the Council in two weeks with a recommendation. Schaefermeyer also
questioned whether there was actually a parking problem downtown. He noted that
there was a problem on certain summer days, but not overall. He stated that the real
need seemed to be for an area for employees of downtown businesses to park.
WHITE asked where the state would get the revenues to repay the statewide
bonds proposed to provide funding for education, health care facilities, etc.
Schaefermeyer stated that the bonds would be repaid from taxes. He noted, however,
that there were two programs under consideration. He stated that the school funding
bill would put into place a permanent program to take care of school construction within
the state. This, then, would relieve a great deal of burden from the rest of the state
budget and would give greater capacity for bonding for other projects.
WHITE thanked W ohlforth, Vassar and Scott for their presentations. He also
noted a letter from International Timber Corporation complimenting Schaefermeyer and
his staff for their creativity and willingness to work with industry.
CRANE asked if the area proposed for parking would impact future Alaska Sea
Life Center development. He agreed with Snowden that there was a parking problem
and stated that this was a good plan to start with. Crane thanked city crews for cleaning
the downtown streets. Schaefermeyer noted that the state was responsible for cleaning
the Third Avenue sidewalks. Crane stated that he would like to see a resolution showing
some support for Lowell Point Residents in their quest for federal or state funds to
improve the Lowell Point Road.
SWARTZ stated that she was distressed to see people driving on the bike path.
She stated that Waterfront Park was in need of some clean-up. She thanked all city
employees for their hard work, and noted a special thanks for Brenda Morris's work at
the DMV office over the past month.
KRASNANSKY stated that he was impressed with the parking plan presented by
Snowden and noted that it was a good place to start. He stated that it was obvious that
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the Downtown Merchants had put some money and thought into the plan and stated
that it deserved Council's consideration.
CRIPPS noted the recent Public Employee of the Year award which went to
Barbara Sumstad, a Spring Creek Correctional Center employee. He also noted letters
from Mayor Gilman and the governor commending the city's Shaker III exercise
participants. He stated that it was heartwarming to see the efforts of others recognized.
16. CITIZENS' DISCUSSION
LOUIS MARCH, Mile 5.5, Seward Highway, stated that he opposed any increase
in electric bills resulting from the December power outages. He suggested instead that
the city take $500,000 from attorney fees for this purpose.
CHRIS GATES, Johnstone Road, Seward, reported on activities of the Regional
Citizens Advisory Council. He stated that he would like to invite the head of the Near
Shore plan group to address the Council at the May 11th meeting.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
CRIPPS noted news reports that Alyeska had absolved itself from any liability in
the event of an oil spill. Gates agreed that Alyeska had taken this stance and stated that
this was being addressed by the RCAC.
18. ADJOURNMENT
The meeting was adjourned at 10:25 p.m.
( , ' ! )
~ ,jJ~I//"-
::. c<>t{o-'L-6-lt "-1?..-z
Donald W. Cripps
Mayor
( CSE155140 )
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City of Seward, Alaska
May 11, 1992
City Council Minutes
Volume 28, Page 34
1. CALL TO ORDER
The May 11, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4a. PROCLAMATIONS & PRESENTATIONS
A. May 10-16,1992 - Nursing Home Week. Cripps presented the proclamation
to Wesley Rehabilitation and Care Center Director Richard Jones.
B. May 10-16, 1992 - Historic Preservation Week. Cripps presented the
proclamation to Seward Historical Society President Lee Poleske.
C. May 15, 1992 - Police Memorial Day. Cripps presented the proclamation
to Police Lt. David Brossow.
D. May 16. 1992 - Super Saturday. Cripps presented the proclamation to
Assistant City Manager Mike Yanez.
E. Presentation of Plaque to Tohn Woodruff. Woodruff was not present;
however, the Mayor noted that the city was presenting him with a gold pan plaque
honoring and thanking him for his years of service on the Planning Commission and the
Trade Board.
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City of Seward, Alaska
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I 4b. APPROVAL OF MINUTES
Krasnansky moved to approve the April 27, 1992, regular meeting minutes as
amended to reflect correction of an error on Page 16; the motion was seconded by Crane
and carried by unanimous vote. [Murphy was asked to change the name "International
Timber Company" to "Idaho Timber Company".]
City Council Minutes
Volume 28, Page 35
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by White.
Cripps recommended an addition to Item 10, Presentations with Prior Notice, to
allow a representative of the RCAC to make a presentation to the Council. Schaefer-
meyer asked to add Resolution No. 92-076, supporting the governor's coal initiative, to
the Agenda under "Resolutions".
The question was called, and the agenda was approved as amended by
unanimous vote.
I
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
'BOB V ALDATTA, 528 Fifth Avenue, stated that he was working on an employee
buy-out of the Chugach Forest Products lumber mill in an effort to re-open the mill and
put its former employees back to work.
I
LANI LOCKWOOD, Mile 18, Primrose, spoke regarding the Sister CityJExchange
Program Budget. She stated that she was concerned that this item was no longer in the
Mayor/Council budget, but had been placed under "Contributions". She noted that this
was not, in fact, a contribution. Rather, it represented city funding of a city program.
Lockwood noted that SIFA had been formed at the request of the City Clerk to aide and
assist the city in selecting exchange students, planning and chaperoning activities for
visiting Japanese students, and arranging housing for visiting students. She added that
SIFA had never requested funding from the city and had raised funds on its own to help
defray the cost of this program to local students. She stated that the Council-approved
funds helped to offset the cost of entertaining and touring for the SIF A exchange
students during their stay in Seward. She asked that this program be funded at least to
past levels; otherwise, the program would be limited to those students whose parents
could afford their full participation.
( CSE155142 ]
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City of Seward, Alaska
May 11, 1992
City Council Minutes
Volume 28, Page 36
BRAD SNOWDEN, 525 Sixth Avenue, spoke regarding the Parking Committee
meeting held on May 8th. He noted the Downtown Merchants Association (DMA) letter
regarding the alternate location and stated that the DMA was willing to accept this
alternative if the city would institute a 3-hour parking limit on downtown streets and
would agree to leave the parking lot open 24 hours per day. He stated that he was
personally concerned about the location of the alternative parking lot, but thanked the
city administration for its help in developing a parking plan for the downtown area.
8. APPROVAL OF CONSENT CALENDAR
Krasnansky asked to place Items B, C, D & E on the regular agenda under
"Resolutions".
Schaefermeyer asked to delete Items H & I. He noted that there was sufficient
budget authority to handle the revisions to the CH2M Hill contract (Item H), and the city
had not yet received a proposal from America North (Item I). Schaefermeyer also asked
to reschedule the May 25th Meeting to May 27th rather than May 26th (Item L).
Mayor Cripps asked the Clerk to note and change an error on Item A, changing
the word "mud" to "rock".
White asked to move Item K to New Business.
Krasnansky moved to approve the. Consent Calendar as amended; the motion
was seconded by White an<f carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-063. addressing safety considerations regarding Lowell
Point Road, was approved;
B. Resolution No. 92-064, setting rates and charges for electric service, was
moved to the regular meeting agenda;
C. Resolution No. 92-065, setting rates and charges for water service, was
moved to the regular meeting agenda;
D. Resolution No. 92-066, setting rates and charges for sewer service, was
moved to the regular meeting agenda;
E. Resolution No. 92-067, setting rates and charges for garbage and refuse ser-
vice, was moved to the regular meeting agenda;
F. Resolution No. 92-068. accepting the Summer Youth Employment Grant,
was approved;
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G. Resolution No. 92-069. accepting the Land and Water Conservation Fund
Grant, was approved;
H. Resolution No. 92-070, approving an amendment to the CH2M Hill contract
to design the repairs to the Lowell Point Sewage Treatment Plant, was deleted from the
regular meeting agenda;
I. Resolution No. 92-071, approving an amendment to the America North
contract to perform additional studies required for disposal of sludge, was deleted from
the regular meeting agendaj
J. Resolution No. 92-074, appropriating funds for OSHA-mandated Hepatitis
B vaccinations for affected city employees, was approved;
K. March 1992 Perkins Coie invoice for legal services totalling $14,879.50 was
moved to the regular meeting agenda, New Business;
1. Request to reschedule the second meeting in May to Wednesday, May 27,
1992, was approved;
M. Informational memorandum regarding proposed park improvements and
grants received by the Parks and Recreation Deparbnent was noted for informationj
N. Application for games of chance & skill permit as submitted by the City of
Whittier was noted for information;
O. Proclamation designating April 28, 1992, as DREW HAYES DAY was noted
for information; and
P. Request for authorization to negotiate a new lease as requested by Joan
Clemens (The Fish House) was approved.
9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law
regarding the proposed donation of Lots 3-4, Block 12, Cliff Addition, from Shirley Y.
Neely was noted, and the public hearing was opened. No one appeared in order to be
heard, and the public hearing was dosed.
B. Notice of public hearing as posted and published as required by law
regarding the proposed acquisition of Parcel No. 79 (Tract H, Old Mill Subdivision) for
transmission line construction was noted, and the public hearing was opened. No one
appeared in order to be heard, and the public hearing was dosed.
( CSEl5514~ J
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C. Notice of public hearing as posted and published as required by law
regarding the proposed acquisition of Parcel No. 78 (All of those certain portions of the
W V2 of the W 1/2 of the SW V4 of the NE V4 and the SW V4 of the SW V4 of the NW
V4 of the NE V4, all in Section 12, TIN, RIW, Seward Meridian, situated westerly of the
Seward Highway right-of-way) for transmission line construction 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 Fiscal Year 1993 general fund and enterprise funds operating and
capital budgets was noted, and the public hearing was opened.
LOUIE MARCH, Mile 5.5, Seward Highway, stated that city legal fees were too
high. He urged the city to hire a staff attorney or cut legal fees by 75%. He stated that
this would help keep electric rates from rising.
No one else appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
CHRIS GATES introduced Regional Citizens Advisory Council representative
LINDA HEISS, Assistant City Manager of the city of Whittier. Heiss addressed the
Council regarding the Near Shore Response Plan which was to be presented for approval
by June 1st.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, deleting Seward City Code Section 15.10.310,
Contract 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.
Crane moved to enact Ordinance No. 92-10: the motion was seconded by Swartz.
The question was called, and the ordinance was enacted by unanimous vote of the
Council.
( CSf 155145 )
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City of Seward, Alaska
May 11, 1992
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c.
Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, accepting the donation of Lots 3-4, Block 12, Cliff
Addition, from Shirley Y. Neely.
Swartz moved to approve Resolution No. 92-060; the motion was seconded by
Crane. The question was called, and the resolution was approved by unanimous vote.
2. Copies haVing been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the acquisition of Tract No. 78 for
transmission line construction.
Krasnansky moved to approve Resolution No. 92-061; the motion was seconded
by Bencardino. The question was called, and the resolution was approved by
unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the acquisition of Tract No. 79 for
transmission line construction.
Krasnansky moved to approve Resolution No. 92-062; the motion was seconded
by White. The question was called, and the resolution was approved by unanimous
vote of the Council.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a water rate contract with Seward
Fisheries, Inc.
Krasnansky moved to approve Resolution No. 92-072; the motion was seconded
by Crane. '
( CSE155146 1
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City of Seward, Alaska
May 11, 1992
City Council Minutes
Volume 28, Page 40
White noted that he would be fishing for SFI this summer and asked if that
constituted a conflict of interest. The Mayor ruled that White had no direct financial
interest in the outcome of this vote and, therefore, had no conflict of interest with
regards to this item of business. '
The question was called, and the resolution was approved by unanimous vote.
5. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds for downtown parking improve-
ments.
White moved to approve Resolution No. 92-073; the motion was seconded by
Krasnansky.
Crane stated that, in the future, when Council instructed the administration to
meet with a group of local citizens, he would prefer that the initial meeting take place
before the city had developed a plan. He stated that the Council had intended for the
Downtown Merchants Association to have some say in developing the plan, and their
real participation in the planning process was preempted by the city. Crane added that
he would like to see a better working relationship between the administration and the
downtown merchants.
Dunham stated that the purpose of this resolution was not solely to cater to
tourists, as had been rumored, but to meet the needs of community members as well.
She also suggested that the city address the problems associated with tour buses parking
in the downtown area.
White asked Schaefermeyer to explain the enforcement problems noted in the staff
memorandum to the Council, and he asked if the Chamber could provide the personnel
to enforce the proposed 3-hour parking limit downtown. Schaefermeyer stated that there
would be additional dialogue regarding parking enforcement as the administration and
Council tackled the FY 1993 budget. He stated that, in order to make enforcement of
parking regulations hold up in court, enforcement personnel would require training and
must be qualified to issue citations.
Crane asked why the administration was recommending that the lot be closed
after 10:00 p.m. each evening. Schaefermeyer stated that the city wished to provide a
level of protection to the Teen Center from vandalism and burglary. He stated that the
city also wanted to eliminate vandalism to vehicles left in the area, In addition, the city
wished to discourage overnight parking in that lot since this would result in a loss of
income to the city's campgrounds. Crane stated that this parking lot would be useful to
house vehicles left downtown overnight by patrons of downtown bars and lounges. He
(CSE155147 )
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City of Seward, Alaska
May 11, 1992
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added that since this was just a short term solution, the city should leave the lot open
and see if enforcement became a problem.
Bencardino concurred. He asked where the funding ($5,000) was to come from.
Schaefermeyer stated that the amount would come from the city's fund balance, and
labor would be provided by force accounting.
Crane asked if the downtown merchants had been asked to provide manpower
for cleanup and grading. Yanez stated that this had not been addressed and added that
he would address this with the merchants.
Krasnansky stated that this proposal was a valid compromise.
The question was called, and the resolution was approved by unanimous vote.
Schaefermeyer asked for Council direction regarding the proposed 24-hour parking
lot and the proposed 3-hour parking restriction for downtown streets. It was the
consensus of the Council to try the 24-hour parking lot for the next six weeks.
6. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, urging reconsideration of the proposed closure of
the Wildwood Correctional Facility in Kenai.
Swartz moved to approve Resolution No. 92-075; the motion was seconded by
White. The question was called, and the resolution was approved by unanimous vote.
RECESS:
The meeting was recessed at 8:40 p.m. and reconvened at 8:50 p.m.
7. Copies having been distributed to the Council and made available
to the public, Cripps noted by title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, supporting the Governor's Coal Initiative.
Krasnansky moved to approve Resolution No. 92-076; the motion was seconded
by Swartz.
White declared a conflict of interest, noting that he was an employee of SunEel
Alaska Corporation, a direct beneficiary of the governor's plan. The Mayor ruled that
White should abstain from discussion or voting.
( CSE155148 1
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City of Seward, Alaska
May 11, 1992
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The question was called, and the resolution was approved with six YES votes
and White ABSTAINING.
8. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, setting rates and charges for electric service.
Crane moved to approve Resolution No. 92-064; the motion was seconded by
White.
Krasnansky stated that he had pulled the four utility resolutions from the Agenda
in order to announce that they were not instruments to set new rates, but to clarify the
various rates charged by the city.
The question was called, and the resolution was approved by unanimous vote
of the Council.
9. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, setting rates and charges for water service.
Crane moved to approve Resolution No. 92-065; the motion was seconded by
Dunham and carried by unanimous vote.
10. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, setting rates and charges for sewer service.
Krasnansky moved to approve Resolution No. 92-066; the motion was seconded
by Crane and carried unanimously.
11. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, sett4tg rates and charges for garbage and refuse
service.
( CSEl55149 1
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White moved to approve Resolution No. 92-067: the motion was seconded by
Crane and carried by unanimous vote.
12. UNFINISHED BUSINESS None
13. NEW BUSINESS
A. Claim for damages totalling $230.49 as submitted by Sheila Smiley. Crane
moved to approve the, claim for damages as filed by Sheila Smiley; the motion was
seconded by Swartz and failed with all present voting NO.
B. Proposed modification to Day Cruiser Moorage Policy. Krasnansky moved
to accept the administration's recommendation to prepare a modification to the Day
Cruiser Moorage Policy; the motion was seconded by White.,
White stated that he would like to see the moorage rate for day cruisers set at one
and one-half times the rate for other harbor users in exchange for preferential berthing.
Schaefermeyer noted that the Port Committee had met with the Day Cruise operators to
discuss the proposed revisions to the harbor tariff. The most significant change was to
be the adoption of a $2 per foot increase in moorage rates for all patrons in the harbor
to be used in a capital replacement fund for repairs to floats, ramps, etc., in the harbor.
Schaefermeyer stated that the administration was seeking direction from the
Council regarding how to proceed with a proposal to amend the small boat harbor tariff
to allow the transfer of a slip leased by a day cruiser when the vessel was sold. He noted
that there was a sale pending at this time which could only go forward if this change was
made.
Bencardino stated that he agreed that the day cruise companies had done well;
however, this did not mean that the city should try to take something away from a
business just because it had become profitable. He stated that the day cruisers were
doing a good job of bringing new people into the community:
Crane stated that White's suggestion had some merit. He noted that the increased
fees would be passed on to the consumer and would not be borne by the day cruise
operator. He noted that other coastal areas had charges similar to the one proposed.
Dunham concurred with Crane. She stated that she admired those who had
gambled on this type of business a few years ago and had since done well. She added,
however, that it did the city no good to get people to town if the city made no money
from the visit. She also suggested that allowing the cruise vessels to pass on a slip when
the boat was sold would cause hard feelings among private boat owners, and she
suggested that the city look closely at White's suggestion.
( CSE155150 )
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City of Seward, Alaska
May 11, 1992
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Schaefermeyer stated that the administration would be drafting an ordinance
which would be brought back to the Council for consideration.
The question was called, and the motion carried by unanimous vote of the
Council.
C. Complaint by James Pruitt resarding the Tustumena Electric Bill.
Schaefermeyer stated that he had received a request for relief from a portion of an
electric bill presented by the Harbor to Seward Ship's Chandlery for power used by the
Tustumena when it was in for repairs. Schaefermeyer stated that the Harbor had
installed a 4OO-amp service at the syncrolift dock at the request of Jim Pruitt. Under the
terms of the tariff, the Harbor purchases power from the electrical utility for approximate-
ly ten cents per kwh and resells it to harbor patrons for twenty cents per kwh. He noted
that the price differential was the only way the Harbor had to recoup the cost of
installing and maintaining electrical service for harbor users.
Schaefermeyer noted that, normally, the power purchased by a harbor patron is
of such a small quantity that the kwh charge was not an issue. However, the Tustumena
used a very large amount of power and generated an invoice of $37,228.00. Upon receipt
of the invoice, Pruitt had filed an objection and had asked that the city bill him for the
direct cost of the power to the Harbor. Schaefermeyer suggested that the only remedy
he could see was for the Council to amend the tariff, making the effective date of the
amendment retroactive to allow the city to bill Seward Ship's at the lower rate. He
warned, however, that the city would then be required to reimburse anyone else who
had purchased power from the harbor during that period of time.
White stated that he would consider a tariff amendment which would adjust the
rate after the first so many kilowatt hours.
Singleton stated that he had offered to sell the service to Pruitt for what the city
had paid to put it in. At that point, Pruitt could be billed for the electricity directly by
the electric utility and thus pay the lower rate.
RECESS:
The meeting recessed at 9:37 p.m. and reconvened at 9:45 p.m.
JAMES PRUITI, Seward Ship's Chandlery, stated that this issue had been brought
to the Council as a concern, not a complaint. He stated that when the bid for the
Tustumena was figured, he had planned on dry-docking the vessel and had not realized
that hooking up to the city's electrical service would cost twice the rate he had estimated.
He suggested that the city establish a set-up fee for users and adjust the kwh charge to
the level charged other customers of the utility.
Krasnansky moved to direct the administration to recover the cost of the 400-amp
service from Seward Ship's Chandlery; the motion was seconded by Crane. [Krasnansky
noted that the intent of this motion was that Pruitt was to purchase the 400-amp service from the
( CSEl55151 1
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City of Seward, Alaska
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city for the direct cost to the harbor of $36,666.74 and was then to purchase the power used
directly from the electric utility for $18,776.98, for a total cost of $55,443.72.]
Swartz asked what the cost of revising the tariff would be, including legal fees.
Schaefermeyer stated that he did not think he would have to involve the attorney;
however, the revisions would take some administrative staff time. He stated that there
seemed to be some desire on the part of the Council to come up with some sort of
staggered rate structure for this type of service.
, '
Krasnansky stated that the tariff was a published document, and it was not the
city's fault that Pruitt had not read it. He objected to further subsidizing a private
industry at the expense of the public.
The question was called, and the motion was approved with six YES votes and
Bencardino voting NO.
D. Perkins Coie invoice for March 1992 legal services totalling $14,879.50.
Krasnansky moved to pay the invoice as recommended by the city manager; the motion
was seconded by Crane.
White noted that there were some mistakes in the invoice and noted that travel
time should have been billed at $87.50/hour instead of $175/hour. He asked to have the
invoice modified to reflect the correct rate. He also noted that Arvidson had gone over
budget on the Pruitt lease negotiations and asked if this budget was to be addressed at
this meeting.
Schaefermeyer stated that Arvidson had presented a suggested revised budget for
the Pruitt lease negotiations for Council approval. In accordance with the revised figures
presented by Arvidson, Schaefermeyer stated that he recommended an adjustment in this
budget from $15,000 to $37,000, with the funds to be allocated from other line items
within the legal fund budget. Schaefermeyer noted that, without Council action on the
requested budget amendment, he would not have the authority to pay the excess fees
charged in March.
White stated that the city had agreed that Arvidson would come back to the
Council for budget adjustments prior to going over Council-approved budgeted amounts.
However, in this instance, Arvidson had exceeded the budget by approximately $10,000
without Council approval. White stated that the city should not have to pay any amount
over what was budgeted.
Bencardino and Crane agreed. Crane stated that this action did not show good
faith on the part of Mr. Arvidson.
Schaefermeyer suggested that before the Council took final action on this invoice
or the requested budget revision, Arvidson should be given a chance to address the
t CSEl55152 )
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Council. He noted, however, that if the Council failed to amend the budget, the attorney
would cease to work on this particular matter. He noted that the city was just about
ready to bring this matter to the Council, and completion of the lease, resolution and
ballot language would require the services of the attorney.
Swartz stated that she was appalled at the amount that Arvidson had spent over
budget. She stated that the Council had been clear in its direction to Arvidson. She
added that perhaps it was time to find an in-house attorney for the city.
White stated that he would agree to amend the budget to pay what Arvidson felt
would be needed from this point on, but he would not agree to pay the $9,000-$10,000
overage.
Schaefermeyer asked the Council to consider setting this aside until the Council
could discuss the matter with Arvidson.
Bencardino stated that this was just one more example of the continuing problems
the city had experienced over the years. He stated that it was time to do something
about this situation and suggested that the Council give the administration orders to start
advertising for another attorney.
Krasnansky stated that, while he was not defending Arvidson's failure to get prior
approval to exceed the budget, the Council should consider that it (the Council) had
instructed the administration and the attorney to come up with a lease with Seward
Ship's Chandlery. He agreed that the Council should have been informed prior to
spending the extra money; however the Council should assume some of the responsibili-
ty and should put this matter aside until the attorney could be present to discuss it.
Crane stated that he did not mind postponing action on the invoice.
Dunham stated that the Council should talk to Arvidson prior to taking action.
She also stated that the city was not going to cut legal fees as long as the Council
continued to change its mind as often as it did. She stated that even if the Council hired
another attorney, legal fees would probably remain the same, adding that the city would
get what it paid for. She said that ultimately it was the Council's responsibility to hold
legal fees down.
White moved to postpone action on this item until the next regular meeting; the
motion was seconded by Krasnansky and carried by unanimous vote.
14. CITY MANAGER REPORTS
Schaefermeyer stated that the governor's reapportionment plan had been struck
down by the Court, and the state had peen given one week to present an alternative plan
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for Court review. He noted that chances were very good that the effect of the judge's
decision would be that the city would remain in the donut district for a while longer.
Schaefermeyer stated that a special meeting had been scheduled for Monday, May
18th, to act on the Pruitt lease. In addition, he planned to ask the Council to consider
adding to the special election ballot a proposition seeking approval of general obligation
bonds for repair of the Lowell Point Sewage Treatment Lagoon. He stated that it
appeared that the city would get some funding from Juneau for the repair; however, the
city would most likely 1?~ required to fund more than one-half of the $1.8 Million project.
Schaefermeyer stated that he was working diligently to obtain DEC approval to remove
and dispose of the sludge in the Lagoon so that the project could move forward. He also
noted that the EP A would be providing the city with a compliance order that would set
the terms and conditions as well as the time line for having the system operational.
Schaefermeyer noted that the proposed city budgets had been presented to the
Council and the public on Friday, May 8th. He proposed scheduling two work sessions,
on May 19th and 20th, to discuss the budgets. The Clerk was instructed by the Council
to advertise budget work sessions to be conducted at 7:00 p.m. on May 19 and May 20,
1992.
15. COUNCIL DISCUSSION
SWARTZ commended the Downtown Merchants Associ.ation Parking Committee
for addressing a long-time parking problem in the downtown area.
KRASNANSKY reported that he had attended a Health Care Advisory
Commission meeting in Soldotna. He stated that the Commission had received an
explanation of the state of Hawaii's he,llth care system. He suggested that the Council
consider a resolution supporting a request to the federal government to amend certain
portions of ERISSA to allow local govt~rnments to exert more control over health care
issues.
DUNHAM noted the loss of three Roth family members. She expressed her
concern and sadness and stated that she hoped the city would send a letter of
condolence to the family. She noted that the father of the three missing men had
managed the Bank of Seward, and his son Jason had later managed the Seward Branch
of the First National Bank of Anchorage. Dunham stated that it would be appropriate
that the city establish a memorial of some sort to the family and suggested that the
library would be the logical recipient.
BENCARDINO stated that he would like to immediately advertise for a new
attorney.
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May 11, 1992
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WHITE asked how the sewer general obligation bonds would be repaid.
Schaefermeyer stated that the debt would be repaid by the sewer utility and would result
in a rate increase of approximately 20% to cover the debt service.
WHITE and CRANE stated that they wished to cosponsor an ordinance or
resolution revising the tariff to allow a declining electrical resale rate in the harbor.
WHITE also requested a resolution regarding borough taxesj CRANE agreed to
cosponsor the resolution. Schaefermeyer stated that he would provide the needed
information. He noted, however, that most of the borough budget went towards
education.
WHITE noted his concern regarding the administration's proposal to cut the SIFA
budget from $2,500 to $1,000. He stated that he would like to have this budget line item
restored to its prior year level.
WHITE noted a letter of commendation from a member of the community
regarding Police Officer Gary Gannon's performance. He thanked Gannon and other
city employees for their hard work and dedication.
CRANE thanked Valdatta for his efforts on behalf of the community. He also
asked that those who did not need to use the parking spaces set aside for the
handicapped to use other parking spaces.
CRANE encouraged the public to participate in the upcoming budget process.
CRANE reported on the last meeting of the hospital board. He stated that Dr.
Valentine would not be coming to Seward but would be relocating to Juneau, instead.
He also noted that the interim hospital CEO was just getting settled and was doing a
good job thus far.
CRANE expressed his concern for those with alarm systems and questioned the
administration's proposal to move this service to a provider in Anchorage. He asked the
administration to explain the proposal. He also asked if it were possible to retain the
service in the community. Yanez stated that one and one-half years ago, the administra-
tion was alerted to the fact that there was a great deal of congestion in the dispatch room
caused primarily by the large number of alarm monitors located there. The city had
considered purchasing a remote monitoring panel to allow the Police Department to
relocate the monitors to a site in the basement; however, it was determined that the cost
of instituting such a system was approximately $35,000. Yanez stated that this service
was handled by private enterprise in every other community in the state. Therefore, it
was the recommendation of the administration that those with alarm systems be
informed that the city would no longer provide the service, and the users would be
encouraged to use a service in Anchorage or elsewhere. Yanez also asked the Council
to consider the liability to the city if it continued to provide alarm monitoring services to
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the business community. CRANE stated that when an issue of such public concern
arose, it was incumbent upon the city to provide sufficient information to the public to
explain why the city was taking a particular action.
CRIPPS stated that he supported the plan to review electric resale rates in the
harbor. He stated that he was opposed to the borough tax resolution recommended by
White, adding that the borough was facing many of the same issues faced by the city of
Seward and should not be chastised for making hard decisions.
16. CITIZENS' DISCUSSION
BOB V ALDATTA, 528 Fifth Avenue, stated that he was opposed to the Council's
action regarding the price Pruitt was charged for electric power for the Tustumena.
LOUIE MARCH, Mile 5.5 Seward Highway, distributed a copy of an April 29,
1992, request for public records to the Council. He asked why his request for an
explanation of a journal entry for "unknown legal fees" had not been answered.
WAYNE CARPENTER, Executive Director of the Chamber of Commerce, noted
that May 16th was the Seward Yacht Club's opening day for the season.
JIM PRUITT, Maple Street, noted that he had installed an alarm system in his
business a couple of years ago to provide 24-hour protection. He stated that he did not
mind paying a fee for this service, but he was concerned about the extra time it would
take for local police to respond if the call went to Anchorage first.
PRUITT also asked the Council to explain its vote regarding what he was to pay
for electricity used in connection of his work on the Tustumena. Schaefermeyer stated
that the cost to make the harbor whole would be $55,443.77, and the Council agreed that
this was the intent of the motion and vote. Schaefermeyer noted that Pruitt also had the
option to pay the original bill of $O.20/kwh.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
MURPHY explained that March would get an explanation regarding the legal fees
when the information was made available to her by the Finance Department.
18. ADJOURNMENT
The meeting was adjourned at 11:15 p.m.
~ "i
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Donald W. Cripps
Mayor
( CSf1>51>6 J
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May 18, "1992
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Volume 28, Page 50
1. CALL TO ORDER
The May 18,1992, special meeting of the Seward City Council was called to order
at 5:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham (arrived 5:50 p.m.)
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Patricia Jones, Deputy City Clerk
4. APPROVAL OF SPECIAL MEETING AGENDA
Crane moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Bencardino and the agenda was approved without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
None
6. .PUBLIC HEARINGS
Cripps asked Arvidson to comment on the proposed lease between the City and
Seward Ship's Drydock, Inc. to inform the public and Council of the many issues of
concern. There was no objection from the Council or the public.
Arvidson stated that Jim Pruitt's personal guaranty, which was an essential term
of the lease, was received in the clerk's office at 2:30 p.m. on May 18th. Therefore, since
the document was not included in the lease materials filed with the Clerk on May 8th,
notice requirements were not met since, according to city code, essential terms and
(CSE155157 1
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conditions had to be available in the clerk's office ten days prior to public hearing. He
also stated that a memorandum had been presented to the Council by Gates outlining
major concerns and negotiation issues from the Council's standpoint and how those
issues had changed following negotiations. He reported that he had reviewed the final
version of the lease last Thursday. He explained his role concerning the lease and what
the lease document actually meant. He reviewed the basic issues concerning the lease
as follows:
Parties. The lease tenant was described in various ways throughout the
lease. He noted that it was unclear whether the lease was with the person,
James T. Pruitt, or with a corporation, Seward Ship's Drydock, Inc. He
added that, according to the State, Seward Ship Drydock did not yet exist
as a corporation.
Land. The leased land in question did not contain clear boundaries or
platted areas. He noted that the description of the area was not clearly
identified. He stated that there were a number of discrepancies concerning
title to the land. He did not think that the lease would be accepted by the
recording office since the legal description was not available and the land
had not been platted. He noted that no title report had been obtained and
it was unclear which tidelands were included in the leased land.
Rent. The rent was based on a minimum of $50,000 annually or two
percent of gross revenue, whichever was larger. He stated that it was
difficult to describe, interpret or enforce just what economic activity was
included within the term gross revenue.
Existing Arbitration/Dispute. He noted that the existing arbitration on the
current lease had resulted in no rent being paid as yet. He informed the
Council that rent on the old lease would not be recovered if the new lease
were approved. He stated that the City would also waive its right to the
following: recovery of additional revenues under the amended tariff, a
determination that the lessee was in default for failing to construct a
building, attorney fees incurred in the arbitration process, costs incurred in
negotiating and drafting the new lease agreement and potential recovery
for unknown defaults such as environmental damage.
Multi-user concept. He stated that Pruitt would have sole and exclusive
use of the bulk of the SMIC facilities which was the opposite of the multi-
user concept approved earlier by the Council.
Environmental issues. He stated that the financial solvency of the tenant
needed to be determined in case environmental problems should arise. He
expressed the need for the city to test the property to determine if the land
had been contaminated in the past. He suggested performing a base-line
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City of Seward, Alaska
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Volume 28, Page 52
environmental impact study on the land before moving forward with the
lease.
Contractual indemnifications. He noted that the tenant was releasing and
holding harmless the City from environmental and other issues. He
reported that the City might not be able to effectively transfer its obliga-
tions under current environmental statutes. He stated that the hold-
harmless clause would not apply to an environmental event which occurred
prior to the effective date of the lease.
Insurance. He reviewed the lease language concerning insurance coverage.
He noted that the City was the ultimate "deep pocket" and, therefore, had
a lot to lose and a lot to insure against. He added that a corporation had
no risk beyond the worth of the company.
Swartz asked for clarification on how long it would take to acquire title to the
land. She stated that more information would be needed before action could be taken
on this lease.
Arvidson stated that the tidelands needed to be acquired by the city.
Gates added that, because the personal guaranty was not available within the ten
days, public notice requirements had not been met and no action could be taken at this
time.
A. Notice of public hearing as posted and published as required by law
regarding the proposed lease to Seward Ship's Drydock, Inc., of approximately 20 acres
of real property located within the Seward Marine Industrial Center including the
syncrolift shiplift platform, the adjacent dock and associated rails and transfer system,
was noted by Cripps, and the public hearing was opened.
JIM PRUITT, Maple Street, stated that negotiations had been going on for a
considerable amount of time. He informed the Council that incorporation papers had
been filed with the State and Seward Ship's Drydock, Inc., (SSDI) should be intact by the
time the lease was signed. He covered insurance requirements including pollution and
accidental insurance and liability exposure. He noted that 20 acres would be leased and
language contained in the lease would determine the boundaries of the land through a
survey. Mr. Pruitt agreed that action on the lease would need to be re-advertised due
to the fact that he had not provided the personal guaranty 10 days prior to the meeting.
He stated that the income to the city generated from the lease would come from two
percent of gross revenues generated through SSDI operations. ,He noted that SSDI, a
separate corporation, would be utilizing services provided by Seward Ship's Chandlery.
He explained that expansion plans were on the drawing board and SSDI planned on
transporting and erecting a 300' long building which would be barged from Vancouver.
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He stated that he was present to answer any questions and hoped that the hearing
would be re-advertised soon.
BOB VALDATTA, 528 Fifth Avenue, stated that a survey of the property had
been requested 12 years ago. He objected to the possibility of forgiveness of rent already
due on the current lease with Seward Ship's Chandlery. He stated that the property
needed to be platted because it was not usable in its current condition. He also stated
that the Port Development Committee should have been involved in the process. He
stated that there should be a letter of intent filed with the city for its own protection.
D. J. WHITMAN, 111 Barwell, noted that he had been involved in negotiations
for the past three and one half months. He stated that the proposed lease had been
supplied to the city last December. He was amazed at the cost the City had paid so far
to have the lease drawn up. He stated that this was a good lease.
No one else appeared in order to be heard, and the public hearing was closed.
7. RESOLUTIONS
A. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward, Alaska,
approving an agreement with Seward Ship's Drydock, Inc., for the lease
of approximately 20 acres of real property located within the Seward
Marine Industrial Center including the syncrolift shiplift platform, the
adjacent dock and associated rails and transfer system.
Krasnansky moved to approve Resolution No. 92-077; the motion was seconded
by Bencardino.
Krasnansky asked if the Economic Development Administration (EDA) would
allow the lease to continue. Schaefermeyer stated that the EDA had already informed
the City that they could not approve the current lease without voiding the grant
agreement between the City and EDA. Gates replied that there could be a reversal on
the decision by EDA but he did not know for sure.
Krasnansky stated that the EDA issue should be cleared up before the lease moved
forward.
White stated that someone would have to pay back the $600,000 grant if the EDA
did not agree. He concurred that the EDA issue should be settled first. He added that
a baseline environmental study needed to be done, and the legal description and platting
of the property needed to be accomplished.
( CSE155160 )
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City of Seward, Alaska
May 18, 1992
City Council Minutes
Volume 28, Page 54
Dunham stated that she supported this lease because Seward Ship's Chandlery
had been here for quite some time and provided many jobs for the community. She
stated that if some of the items needed to be done, they should be done. She added that
jobs which were created contributed to the well being of the community. She asked Mr.
Pruitt to pay the current lease rate approved by Council in April on his two acre lease.
Swartz stated that it was time to get down to issues and take care of outstanding
items. She noted that the City should get something back for the land it was leasing.
She agreed that she wcmted to see employees keep their jobs.
Cripps stated that the EDA problem needed to be resolved amicably. He agreed
that when these issues were resolved, lease payments were paid and EDA was agreeable
to the lease, then the lease could work. He stated that he would favor the lease when
everything was completed.
White noted that back lease payments amounting to $31,500 annually needed to
be settled, a baseline environmental study needed to be done, platting needed to be
completed and the city needed to acquire title to the tidelands.
Crane stated that there were still some unanswered questions. He encouraged
the administration and Pruitt to produce a lease amenable to both parties. He noted that
too many questions had popped up at the last minute for anyone to feel comfortable.
He concurred with White on outstanding issues.
Krasnansky reminded everyone that the Council had directed the attorneys to
participate at a minimum level, and he thanked Arvidson for pointing out problems with
the lease.
Bencardino stated that Arvidson had been involved in the process since the
beginning. He also stated that the main problem was that the lease did not evolve as
intended. He noted that negotiations had been dragging on for five months with
negative attitudes from the beginning. He stated that the tidelands had not been
acquired yet when the city had known for over two years that tidelands would be
included in the lease. He noted his opposition to having the attorneys involved from the
beginning.
Gates stated that it would be to the city's benefit to deal with these issues one at
a time and complete the lease.
Schaefermeyer stated that the process was first initiated in November, and due to
the snow cover on the ground, it would not have been practical to survey the property
at that time. He stated that the property could not be platted until the City obtained the
land conveyances for the tidelands. He noted that this process was currently being
addressed. He noted that it had been very difficult to obtain information from various
state and federal agencies in order to be able to complete the process for acquisition of
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City of Seward, Alaska
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the tidelands. He stated that before the process had begun, the Council knew there were
limitations which would cause delays including securing title to the tidelands and platting
of the property. He added that the City had attempted to craft in language to take care
of these contingencies because they could not be dealt with any other way. He noted
that the City had tried to work on the lease within the language of the agreement, but
he stated that he could not recommend the document before the Council at this time.
He stated that the City could have had a better deal, but Mr. Pruitt was not prepared to
negotiate an agreement that was in the best interest of the City and the citizens of the
community. He informed the Council that the attorney had point~d out some faults with
the lease and it would take a considerable amount of time to cure the problems. He
stated that the intent was to take care of platting and the tidelands after the lease was
consummated. He noted that delays were caused because Mr. Pruitt had been absent
from the negotiating table for three months and when he had returned, a number of
negotiated items had been changed. He stated that the city attorney had not been at the
negotiating table, but problems might have been avoided if the both attorneys had been
at the table to craft some of the final language. He added that Arvidson's involvement
had been via the fax machine.
Dunham objected to holding the meeting at this time since a hospital board
meeting was scheduled at 7:00 p.m. She felt that the council should have had as much
time as needed to take care of the matters at hand.
The question was called and Resolution No. 92-077 failed with four NO votes
and Bencardino, Cripps and Swartz voting YES.
B. Cripps noted that there was no need to take action on Resolution No. 92-
078 at this time. The Resolution was withdrawn without objection. (The Resolution
provided for the submission to the qualified voters of the city the question of approval of a lease
agreement with Seward Ship's Drydock, Inc., at a special election to be held for that purpose in
the city of Seward, Alaska, on June 23, 1992).
C. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward, Alaska, providing
for the submission to the qualified voters of the city the question of the
issuance of $1,000,000 of general obligation bonds of the city to pay the
capital costs of reconstructing the Lowell Point Sewage Treatment Plant,
at the election to be held for that purpose in the city of Seward, Alaska,
on June 23, 1992
Schaefermeyer stated that the State Legislature had provided a disaster grant
totalling $929,000 for the sewage treatment plant repair on the basis of a fifty percent
match in funds from the City. He stated that approval of this resolution and approval
by the voters on June 23, would provide the necessary funds to match the grant. This
( C Sf 155162 1
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May 18, 1992
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would enable the city to begin reconstruction of the Lowell Point Sewage Treatment
Lagoon this season. He noted that the City had just received a compliance order from
the EP A setting forth mandated completion dates for the project.
Crane moved to approve Resolution No. 92-079; the motion was seconded by
Swartz and carried by unanimous vote.
D. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward, Alaska,
rescheduling the June 2, 1992, special election to coincide with the June
23, 1992, special election
Dunham moved to approve Resolution No. 92-080; the motion was seconded by
Crane and carried by unanimous vote.
8. CITY MANAGER REPORTS
None
9. COUNCIL DISCUSSION
White stated that the Pruitt lease could not be approved without approval from
the EDA.
Dunham stated that she would not be present for the general fund budget work
session. She stated that she would like to see the teen center remain open. She noted
that if funding cuts needed to be made, adult programs, not children's programs, should
be cut.
10. CITIZENS' DISCUSSION
BOB VALDATTA, 528 Fifth Avenue, objected to bonding for funding for repair
of the sewage treatment plant.
JIM PRUITT, Maple Street, stated that he would like to know the status of his
proposed lease and asked the Council for direction.
Gates responded that it should take three to four weeks to solve the problem with
EDA. It was the consensus of the Council to move forward and solve all of the issues
discussed earlier. Pruitt asked about specific items which needed to be ironed out and
was informed that back rents needed to be paid, the tidelands needed to be obtained,
platting needed to be accomplished and EDA requirements had to be met. Pruitt agreed
to pay the $31,500 annual rent on the current two acre lease with the city.
[ CsE155163 )
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11.
COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
White stated that he would contact Gates about his concerns with regards to the
Pruitt lease.
Krasnansky asked about the syncrolift user fee. Schaefermeyer replied that the
wording in the proposed lease would void any user fees due, and the City would not be
able to recover those fees. He stated that the City and Pruitt were currently in arbitration
over the matter, but if the new lease were approved, arbitration would end. Gates stated
that Seward Ship's Drydock, Inc. would pay the actual cost the City had spent to operate
the syncrolift instead of the $300,000 annual fee included in the shiplift tariff.
Arvidson stated that the City had agreed not to charge more than its cost
according to arbitration.
Krasnansky requested that the cost of arbitration to date and the cost to the City
of operation of the syncrolift be included in the lease language.
Dunham asked for figures on what Pruitt would be paying in real property tax.
Schaefermeyer replied that those figures would be hard to obtain because the borough
would need to figure the cost based on the lease once it was consummated. He stated
that the City had asked the borough but they could not reply.
12. ADJOURNMENT
The meeting was adjourned at 7:22 p.m.
~~~ ~.':J, ~~~
Patricia J. Jones
Deputy ~
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( C SE 155164 )
58
City of Seward, Alaska
May 27, 1992
City Council Minutes
Volume 28, Page 58
1. CALL TO ORDER
The May 27, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Councilj and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4. APPROVAL OF MINUTES
White requested that his comments on Page 10 of the packet be amended by
deleting "the requested ch~e to the tariff" and replacing it with "preferential berthing".
Dunham requested that the Clerk amend Page 14 by replacing the name "Ross" with
"Roth".
Crane moved to approve the May 11, 1992, regular meeting minutes as amendedj
the motion was seconded by White and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Swartz.
Bencardino moved to meet in executive session immediately following the close
of regular business to discuss pending arbitration with Seward Ship's Chandleryj the
motion was seconded by White and carried unanimously.
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Cripps asked to add a discussion of security alarms to New Business. Cripps also
requested the consent of the Council to take Senator Murkowski's presentation as the
agenda item following his arrival; there was no objection from the Council.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall arrived later in the
meeting and gave his report at that time.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
MICHELLE SWARTZ, Bear Mountain Apartments, urged the Council to vote no
on the city manager's new contract as presented in the packet. She objected to the car
allowance, 6-month notice provision and the proposed salary increase.
MARK CLEMENS, Lot 17, Block 14, Meridian Park, objected to going forward
with paid parking in the Small Boat Harbor without further study. He agreed that there
was a need for more parking as well as additional revenue to maintain harbor services,
but he suggested that paid parking should be tried only after other options, such as boat
launch fees, were tried.
8. APPROVAL OF CONSENT CALENDAR
Cripps noted that Resolution No. 92-081 had been amended by deleting from the
destruction schedule certain records as requested by attorneys for Afognak Logging.
Crane asked to move Item B to Resolutions.
Krasnansky moved to approve the Consent Calendar as amended; the motion
was seconded by Swartz and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-081. as amended, authorizing the destruction of public
records, was approved;
B. Resolution No. 92-084, approving the sublease of the Silver Salmon Derby
booth by the Chamber of Commerce to Tradewind Fishing Charters, Inc., for use as a
fishing charter ticket office, was moved to the regular meeting agenda; and
C. Parks and Recreation Department Quarterly Report for the First Quarter,
1992, was noted for information.
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9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law
regarding the proposed Fiscal Year 1993 Operating and Capital Budgets for the General
Fund and the Enterprise Funds of the city was noted, and the public hearing was
opened; no one appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A.
meeting.
U. S. SENATOR FRANK MURKOWSKI. Deferred until later in the
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of 'Seward,
Alaska, revising Chapter 3.45 of the Seward City Code,
Annual Leave.
White moved to introduce proposed Ordinance No. 92-11; the motion was
seconded by Dunham. The question was called"and the ordinance was introduced by
unanimous vote.
B. Ordinances for Public Hearing & Enactment
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a dock use agreement with Seward
Fisheries.
Krasnansky moved to approve Resolution No. 92-082; the motion was seconded
by Crane. The question was called, and the resolution was approved by unanimous
vote.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution el)titled:
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A Resolution of the City Council of the City of Seward,
Alaska, approving a contract with City Manager Darryl
Schaefermeyer.
Crane moved to approve Resolution No. 92-083; the motion was seconded by
White.
Dunham noted that this resolution had been amended by Schaefermeyer's
withdrawal of the 6-month notice requirement. Cripps stated that he objected to
contracts for appointed officials. He stated that Title 3 of the Code prescribed the
conditions of employment for everyonc except the three appointed officials. He added
that if the city wished to extend employment agreements to the appointed officials, the
code should first be changed to prescribe parameters of these contracts. He stated that
he could not support any employment agreement until that time.
Bencardino agreed with Cripps. He stated that he had received calls from the
public objecting to the contract and stated that he would stick with the Code.
Dunham stated that she would agree to a Code change. However, she objected
to any scenario which would allow the Council to dismiss the clerk or manager because
of pressure from the public. Dunham stated that sometimes the public based its opinions
on wrong or insufficient information. Dunham also noted that several Alaskan
communities were searching for city managers and were having a difficult time finding
qualified candidates for the job.
White asked Arvidson if employment agreements violated the Code or the Charter.
Arvidson stated that the Seward Codc and Charter were similar to other Codes and
Charters in other Alaskan communities, and the majority of other home rule cities had
employment agreements with their appointed employees. He added that the courts had
held that the Council could set the terms and conditions of employment by contract,
defining what "at the pleasure of the Council" meant. He stated that if the term of such
a contract was way beyond the term of the Council, it could cause problems. Arvidson
advised the Council not to set employment terms in the Code since this would guarantee
that any changes would take weeks to accomplish.
Swartz stated that she was unhappy with the 6-month notice provision; however,
this had been changed and was no longer an issue. She suggested that the contract be
put aside until Council could discuss the terms with the city manager in a private setting.
Cripps stated that his comments were not personal and were not directed towards
the city manager.
Dunham reminded everyone of a situation last fall when two councilmembers
wished to fire the city manager for two opposite reasons. She stated that the Council
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must avoid like situations and added that the city manager deserved some protection
from the whims of the Council. '
Schaefermeyer stated that he did not feel comfortable working outside an
agreement and the protections the contract offered. He stated that he was especially
concerned about the loss of the hold harmless and indemnification language in the
contract and was not willing to work without that protection. He noted that his existing
contract expired at the end of the month. Schaefermeyer stated that he had thought that
there was a willingness of the Council to approve an agreement similar to his prior
agreement, and the contract before Council was virtually identical to those used for every
city manager employed by the Council over the past 10 years. He stated that without
some protections as proposed, he was not willing to continue to work beyond the end
of the month.
In response to a question from Cripps, Schaefermeyer stated that he would
continue to work if he had a signed extension to his current contract.
Crane stated that he did not see the need to go over this agreement any further.
He stated that the problems had been addressed, and he favored going forward with the
contract as written.
Bencardino stated that the contract needed some additional changes. He
suggested postponing action until the Council could address its expectations of the city
manager.
White stated that it was now time to vote on the contract. He stated that the
Council had been discussing this issue since October and as recently as March had
instructed the city manager to bring back his former agreement for approval. He stated
that if the Council was ready to accept this contract at that time, he could not understand
a reluctance to accept it now.
Dunham stated that in this economy, Schaefermeyer was the kind of city manager
the city needed. She noted that the city of Seward had done very well in this past
legislative session, and she added that Schaefermeyer's experience was invaluable.
Dunham stated that she would vote in favor of the contract.
Krasnansky stated that the city manager was asked by Council to cut the budget,
and this had been done. However, he could not agree to a $2,000 raise for the city
manager when cuts were being made to other budgets. He also objected to the 9O-day
notice provisions, stating that regular city employees are given only 2 weeks notice and
no one should receive more than 30 days.
Bencardino stated that this was not the right time to discuss an employeei
however, he had some objections to approving a contract until certain issues were
resolved with the city manager. He noted that the tidelands had been an issue for two
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years and still had not been completed. In addition, an appraisal of city lease properties
had not been completed as they should have. He stated that nobody in the administra-
tion seemed to care about problems facing the city. He also noted that evaluations of the
appointed 0 fficials had not yet been done by the Council. He stated that he could not
vote in favor of this contract. He also stated that the city would not come to a screeching
halt if the city manager left, and the fact that Schaefermeyer's contract was about to
expire should not be an issue. Bencardino added that he could not agree to any more
than a 3D-day notice provision.
Swartz moved to continue the existing contract until the contract matter before
the Council was resolved and to postpone action on Resolution No. 92-083 until June
22, 1992i the motion was seconded by Bencardino.
Dunham stated that she hoped that the Council did not go into its meetings with
the city manager to air dirty linen. She stated that this would be destructive and would
not accomplish a thing.
The question was called, and the motion was approved with six YES votes and
Krasnansky voting NO.
TAKEN OUT OF ORDER (pRESENTATIONS WITH PRIOR NOTICE)
A. Presentation by U. S. Senator Frank Murkowski. Murkowski was
introduced to the Council by Sharon Anderson. The Senator touched on several issues
of interest to the citizens of Seward including the future of coal shipments to Korea.
RECESS:
The meeting was recessed at 8:45 p.m. and reconvened at 8:55 p.m.
TAKEN OUT OF ORDER (BOROUGH ASSEMBLY REPORT)
Kenai Peninsula Borough Assembly Representative Jonathan Sewall gave a verbal
report of the May 19, 1992, assembly meeting.
RESOLUTIONS (Continued)
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the sublease of the Silver Salmon Derby
booth by the Chamber of Commerce to Tradewind Fishing
Charters, Inc., for use as a fishing charter ticket office.
Crane moved to approve Resolution No. 92-085: the motion was seconded by
Dunham.
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Crane asked why the sublease had taken effect prior to Council consideration and
approval. He also questioned whether the $3,000 sublease figure was in line with other
leases in the Small Boat Harbor.
Martin stated that he had misplaced the letter originally sent by the chamber
director regarding the sublease, thus causing a delay in getting this issue to the Council.
He stated that the value of the sublease had been agreed to by the Chamber and
Tradewind and had not required city participation. Martin stated that city boardwalk
lease site rates were approximately $900 per year. He added that the city had the right
to object to a sublease by the Chamber to any entity other than a non-profit organization.
Schaefermeyer stated that even though the sublease had been signed by the two
parties, it could not take effect until the Council approved this resolution. Crane stated
that he objected to the use of the building by the new lessee prior to Council approval
of the sublease.
White stated that he, too, had objected to the sublease taking place prior to
Council approval. In addition, he objected to entering into this agreement without
allowing other businesses in the area a chance to bid for the space.
Swartz stated that, in her opinion, this space should have gone to another non-
profit organization. She stated that she was also concerned that there was no public bid
process.
Wayne Carpenter, Executive Director of the Seward Chamber of Commerce, stated
that Tradewind had been anxious to get into the building, but he took full responsibility
for not getting this agreement to Counc;:il sooner for approval. He stated that this was
a one-time sublease for this summer only, adding that the money from the sublease was
to go towards making needed upgrades to the building. He stated that next year, the
building would be used by the Chamber for the entire season. Carpenter said that
Tradewind was the only entity to approach the Chamber about subletting the building,
and he had seen no reason to open this to public bid.
In response to a question from Crane, Carpenter stated that it was not the
intention of the Chamber to let the building lie vacant for most of the season in coming
years. In response to a question from White, Carpenter stated thilt the money for the
sublease had been received and had been spent for the needed upgrades, including a
new floor, new windows, etc.
The question was called, and Resolution No. 92-084w~s approved with five YES
votes and Swartz and White voting NO.
12. UNFINISHED BUSINESS
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A. Approval of Perkins Coie invoice for March 1992 legal services totalling
$14.879,50. Murphy noted that a motion to approve payment .was on the floor, having
been postponed from the May 11th meeting.
Arvidson noted that the total showing on the invoice was incorrect and should
read $14,442.00. Arvidson stated that he had inadvertently billed for work in excess of
the Council-approved budget for the Pruitt lease, and he had deleted the amount of the
over charge from the invoice.
The question was called, and the motion was approved by unanimous vote.
13. NEW BUSINESS
A. Proposed Harbor Tariff Revisions. White stated that he had received a
copy of the Homer lift and launch fee schedule and noted that the Homer fees were
substantially higher than Seward's fees.
Schaefermeyer stated that this item would be brought before the Council as an
action item on June 8th. He requested input from the Council regarding the changes he
was proposing to make to the tariff.
Dunham stated that this was basically what the Council had requested at the
budget work session. Swartz agreed that the city needed to increase fees or fall woefully
behind.
There was a consensus of the Council to proceed with the tariff revisions as
recommended by the city manager.
B. Proposed contract with the Chamber of Commerce to provide for paid
parking within the Small Boat Harbor. Schaefermeyer noted that Chamber Executive
Director Carpenter had asked that any Council action with regards to the Chamber's
proposal be withdrawn at this time. However, the administration would request some
sense of the Council's views with regards to paid parking in the Small Boat Harbor,
either this season or in coming years. He stated that he felt it was too late to put this in
place this summer, but he would like to know if the Council would like the city to work
towards initiating paid parking in the 1993 season.
Bencardino stated that he agreed that the city should initiate paid parking in the
harbor. He stated that the Chamber contribution had been cut this year, and this
contract was a revenue stream the Chamber had hoped to use to recover the loss of city
funding. He stated that he would like to see the Chamber assist the city with the
program in exchange for a profit sharing agreement whereby the Chamber would receive
30% of profits.
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Swartz stated that the city needed a paid parking plan for the harbor. She stated
that revenues were needed to maintain harbor upland improvements. She noted that
Seward residents paid for parking in Anchorage, and Anchorage residents probably
would not object to paying in Seward.
Crane stated that this issue warranted further review. He suggested working on
the plan through the winter for implementation next season.
Dunham stated that she favored paid parking in the Small Boat Harbor. She
questioned the value of tourism if the city did not profit from it in some way.
White stated that he had been against paid parking initially. However, as he
continued to looked at it, he saw this as a user fee to recover the cost of maintenance of
the lots from those using them. He stated that he would like to go forward with plans
for paid parking.
Krasnansky stated that the city could not provide a service at public expense
without coming up with some way to pay for it.
Cripps concurred. He stated that he favored some form of paid parking in the
boat harbor.
C. Security Alarms. Cripps stated that he had received comments from many
members of the public who were concerned about the city's plan to discontinue alarm
monitoring.
Police Chief Tom Walker responded to questions from the Council. Walker stated
that the response time (from the time the call was made to Anchorage until dispatch was
notified) under a private system based in Anchorage would be, 3 minutes, maximum. He
noted that this was significantly longer than response time under the city's current
system; however, it was time for the city to follow suit with other police departments
around the state and get out of the alarm monitoring business.
Cripps asked about the possibility of a more sophisticated system housed
internally. Walker stated that he had requested informal proposals from alarm companies
and had received proposals ranging from $4,000 to $13,500. He noted that the larger
figure included a computer terminal and printer.
Walker stated that potential liability was the primary reason he wished to
relinquish this program to a private firm. In addition, he noted that, if the city decided
to continue to offer the service using an updated system, there would be a cost of $150
to $300 per individual to bring their systems on line with the new city equipment. He
stated that a private firm would provide better service to the subscriber while managing
the system. He further noted that billing and maintenance of a city-operated system
would become a manpower drain for someone within the city.
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Bencardino addressed the proposal the city had received from a local vender.
Walker stated that he would like to see a local vender involved in monitoring alarms
within the city since this would keep money in Seward while relieving the city of
liability.
White stated that he was concerned about the additional 2.5 minutes of response
time for fire calls.
Don Springer, Alaska General Alarm, stated that this delay would be present with
any upgraded system, including a city owned and operated one. He noted that the
computer would automatically prioritize alarms and would automatically dial police
dispatch, continuing to dial until there was a response. Walker added that the city
would rely on a dedicated phone line which would not be used for other purposes to
assure that the line was clear when an emergency call had to be routed to Seward
dispatch.
Krasnansky stated that it was time for the city to get out of the alarm monitoring
business as soon as possible and leave it to private enterprise.
White asked Springer if his company would be offering any special deals to
Seward customers as an incentive to use his service. Springer replied that there was
enough competition for this business in the private sector to assure competitive prices for
individual subscribers. He noted that this conversion would not require subscribers to
purchase new alarms.
Crane asked if the alarm companies would be coming to town to answer questions
for some of the current users. Walker stated that he would give each of the alarm
companies a list of the city's current clients so that they could be individually contacted.
Crane asked if the Police Department still planned to remove the current monitoring
system from Dispatch on August 1st. Walker stated that this date was subject to change.
Yanez stated that the city had originally thought that upgrading its existing system
would require the purchase of a $35,000 machine which had been recommended to the
city by the former police chief. However, the city had now found that the actual cost of
upgrading would be closer to $20,000. He noted that the city had opted to cut this
service in response to direction from the council to cut costs and services that could be
provided by private enterprise. He also questioned whether the city could provide the
service as cheaply as the private sector. Yanez stated that the Council must decide if the
citizens of Seward should purchase a $20,000 machine for the benefit of only 20 users?
Bencardino stated that the city would be reimbursed for the cost of purchasing the
equipment through the collection of user fees.
Cripps stated that he hoped the city would keep the community apprised of
developments in this area as they occurred.
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White stated that he was not opposed to allowing private enterprise to take over
a government service and his only concern was the 3 minute response time. He stated
that this area must be addressed.
Krasnansky concurred with White's statements. He noted that, now that private
enterprise was providing this service, it was time for the city to get out of the business
and stop competing with the private sector.
14. CITY MANAGER REPORTS
SCHAEFERMEYER thanked and complimented the downtown merchants for the
beautification projects that were recently completed. He noted that the downtown area
looked better than it had in years. Schaefermeyer noted that the planters and displays
had been provided by inmates at the prison.
SCHAEFERMEYER also noted that the downtown parking lot behind the Teen
Center was now open, and the city was awaiting delivery of the signs for the lot. He
thanked Diener and Ainsworth for their contributions to this effort.
ARVIDSON noted thathe had investigated the cost of hj.ring an in-house attorney
as requested by Council. He stated that he had made some assumptions when working
through the numbers, but he felt that they fairly accurately reflected the difference in
cost. Arvidson said that he had assumed that an in-house attorney would have the same
billing efficiency as a private firm and that the city could get the same level of expertise
with an in-house attorney as was available with his firm. He distributed the cost
breakdown sheet he had prepared and explained the numbers. He stated that it was his
opinion that an in-house attorney would actually cost more per hour than Perkins Coie
currently charged the city.
15. COUNCIL DISCUSSION
BENCARDINO stated that, over the past several weeks, the contractor working
on the airport project had tried to do a good job controlling the dust; however, in doing
so, he had created a mudhole and some discomfort for people in the area where he was
working. Bencardino stated that he would like for the city to consider constructing an
alternate road to the landfill. He noted that another contractor would be requesting
permission to haul through this area within the next year, an~ it was important to rid
Forest Acres of the truck traffic in order to save the roads from excess wear and tear. He
also noted that some damage had occurred ~t the cemetery and stated that the city
should address security and other problems.at this facility.
WHITE thanked the administration for completing the downtown parking lot, but
suggested that the no trespassing ~nd no parking signs be removed.
CRANE concurred. Crane also thanked everyone who had worked on the budget.
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DUNHAM stated that the old Forest Acres road (Dimond) next to the Sweatt
house was being used by the military as if it had never been closed. She asked the city
administration to address this issue. She also asked if the Forest Acres road had been
assessed before the airport contractor began work. Schaefermeyer stated that an
assessment had been performed. Dunham suggested that the Teen Center youth
volunteer to clean windows downtown in exchange for city funding to keep the center
open through the summer. Dunham also noted a letter from the prison superintendent
to Mayor Cripps which set forth prison employee activity within the community. She
stated that these employees were working with every organization in town, and the
majority lived in Seward, Moose Pass or Cooper Landing.
KRASNANSKY asked for a report on the status of the upcoming IBEW
negotiations. Schaefermeyer noted that letters of intent to negotiate a new agreement
and a request to extend the current contract until a new agreement could be negotiated
had been sent and received. He stated that IBEW had expressed some interest in such
an extension, and he noted that he anticipated further dialogue on this subject.
Schaefermeycr assured the Council that all negotiating positions would be communicated
to the Council and direction would be sought from the Council prior to signing off on
any changes at the table. Murphy noted that she would be attending the bargaining
sessions and would supply the Council with confidential minutes of each session.
SWARTZ reported that she had recently visited the Palmer cemetery, and she
noted that many improvements had been made to this facility. She stated that the city
of Palmer had spent $6,000 of its Exxon money to fence the cemetery, and she suggested
that if Palmer could make such improvements, so could the city of Seward. Swartz stated
that the city cemetery was a disgrace, and its repair and maintenance should be a
priority. Swartz, too, thanked the city administration for the time spent on the budget.
CRIPPS stated that the prison employees had agreed to adopt a portion of Nash
Road to keep clean on a year round basis. He challenged the citizens of Seward to take
over the City side of the road in a like fashion. Cripps also noted the downtown
beautification projects.
16. CITIZENS' DISCUSSION
VIC STOLTZ, 613 Fourth Avenue, addressed coal export issues. He stated that
the coal industry needed Council support as well as state and federal support. He noted
that the Sun eel contract with KEPCO was about to be lost, and he asked the Council to
approve resolutions supporting the coal industry, requesting that the four entities
(Suneel, Usibelli, Alaska Railroad and State of Alaska) engage in immediate negotiations
to resolve contract issues, and requesting that the governor call a special session of the
legislature to address this issue immediately. He noted that since the coal industry came
to Alaska, approximately $170 Million had been invested in the state by Korea.
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JIM PRUITT, Maple Street, updated the Council with regards to the status of his
proposed lease.
JONA THAN SEWALL, 2403 Dimond, continued his borough assembly report.
(He had been called away from the meeting during his earlier presentation.)
JOE COX, 2501 Spruce, questioned the increased response time for the proposed
new alarm system. He suggested that the city stay in the alarm business, and he asked
that the users be given some explanation of any proposed changes.
W AL T SCZA WINSKI, 611 Monroe, asked why the city was involved in the Taylor
vs. Seward General Hospital lawsuit.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
CRIPPS stated that he shared Stoltz's concern regarding the coal industry. He
stated that there were some factors over which the Council had no control; however, he
assured Stoltz that the city would work towards resolution of those issues which it could
influence.
WHITE stated that Suneel employees were beginning a letter writing campaign
to the governor and would appreciate anyone who would join in this campaign to show
the governor the urgency of this issue.
ARVIDSON explained that the recent charge for attorney time with regards to the
Taylor suit had been research relative to an insurance company's liability for excess
coverage.
SCHAEFERMEYER stated that the Council received detail invoices outlining the
attorney's services. He noted that a lot of the work done by the attorney on the Taylor
suit was necessary to keep the city from being named in the suit and ready to answer the
suit if that became necessary. He noted that the city owned the hospital and would be
the "deep pocket" if there was a judgment.
18. ADJOURNMENT
The meeting was adjourned at 11:05 p.m., and after a short recess, the Council
reconvened in Executive Session to discuss the Pruitt arbitration.
:, ~ .~...
:;
~ ,-,' 'C:'
/ ' ./
;~~iw< ~:"_~
Donald W. Cripps
Mayor
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1.
CALL TO ORDER
The June 8, 1992, regular meeting of the Seward City Council was called to order
at 7:35 p.m. by Vice Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis A. Bencardino
Karen A. Swartz
Dave Crane
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
James Krasnansky (excused)
Mayor Donald W. Cripps arrived later in the meeting.
4a. PROCLAMATIONS
A. Safe Boating Week. Dunham presented a proclamation to USCG ET-l Jim
Sanders declaring the week of June 7, 1992, to be Safe Boating Week.
4b. APPROVAL OF MINUTES
Crane moved to approve the May 18 and 27, 1992, minutes as presented; the
motion was seconded by White and carried without objection.
5. APPROVAL OF REGULAR MEETING AGENDA
White moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Swartz.
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Dunham noted tl:tat Lynda Collier, et ai, would not be making a presentation to
the Council. She also requested the addition of a Trade Board presentation by Doug
Lechner to "Presentations with Prior Notice". Schaefermeyer requested the deletion of
Items 11 and 12 under "Resolutions" (tariff revisions) and stated that these would be
brought back to Council at the next regular meeting. Arvidson requested an Executive
Session to discuss the potential Richard litigation.
White moved to meet in Executive Session immediately following the close of
regular business in ord,er to discuss potential Larry Richard litigation; the motion was
seconded by Bencardino carried by unanimous vote. .
The question was called on the;'motion to approve the agenda, and the agenda
was approved as amended by unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CALENDAR
Crane moved to approve the Consent Calendar as presented; the motion was
seconded by White.
Bencardino asked to move Items C, D, & I to the regular meeting agenda.
The question was called, and the Consent Calendar was approved as amended
by unanimous vote. The following actions were taken:
A. Resolution No. 92-097. consenting to the assignment of lease interest in
Boardwalk Lease Site No.7 from Ray and Leslie Simutis to First National Bank of
Anchorage for security purposes, was approved;
B. Resolution No. 92-098, accepting ALPAR and Borough grants for litter
patrol, was approved;
C. Resolution No. 92-099. approving a change order to the Land Field Services
contract, was moved to the regular meeting agenda;
D. Resolution No. 92-100, approving a change order to the America North
contract, was moved to the regul~r meeting agenda;
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E. Resolution No. 92-101, establishing a bail sched~le for parking violations
within the city, was approved;
F. Resolution No. 92-102, supporting the coal industry, was approved;
G. Resolution No. 92-103. authorizing an application for a loan from the Alaska
Clean Water Fund to plan, design and reconstruct the Lowell Point Sewage Treatment
Lagoon, was approved;
H. Election Boards for 06/23 special election were appointed as recommended
by the Clerk;
I. Request for Legal budget amendments as recommended by the City
Attorney was moved to the regular meeting agenda (Unfinished Business);
J. Status report from Kerry Martin regarding the cemetery project was noted
for information;
K. SGH financial report for the period ending March 31,1992, was noted for
information; and
L. Report of purchase orders totalling between $5,000 and $10,000 issued in
April and May 1992 was noted for information.
9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law
regarding the proposed FY 1993 operating and capital budgets of the city was noted, and
the public hearing was opened.
BOB VALDATTA, 528 Fifth Avenue, stated that the city should compensate
community members who travelled to promote the community. He suggested an initial
budget of $25,000 to fund such a program.
BRUCE SIEMINSKI, 213 Jesse Lee Drive, asked if the city intended to sell
property at SMIC and the Small Boat Harbor. He also asked if the Port Marketing
Director's position would be eliminated if these properties were sold. Sieminski asked
if a new position was being added to the city budget. Finally he urged the Council to
hire a third party to settle the Pruitt/SMIC lease negotiation problems.
WILLARD DUNHAM, Alder & Dimond, Forest Acres, urged the Council to retain
full funding for the city lobbyist Kent Dawson. He stated that Dawson was considered
one of the best lobbyists in Juneau at the present time and was responsible for many of
the projects and dollars that had come to the city from Juneau in recent years. Dunham
reminded the Council of Dawson's importance in helping Council and administration
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work within the legislative process. Dunham stated that it would be to the city's
detriment to reduce Dawson's contract by $7,000, thus allowing him to take on other
municipal clients.
MAYOR CRIPPS ARRIVED AT 7:57 P.M.
RECESS:
The meeting was recessed at 7:57 p.m. and reconvened at 8:02 p.m.
Dunham handed the gavel to Mayor Cripps, and Cripps reopened the public
hearing.
No one else appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. LYNDA COLLIER. BRYAN COLLIER & SHAWNA SNOWDEN - Teen
Center. Deleted
B. SAM YOUNG, Seward Trails Council- Outdoor Recreation. Young stated
that he was glad to hear the concerns the community had for recreation. He stressed the
need for recreation for all ages and noted that local groups had asked the Council for
funds to groom ski trails in the area next winter. Young stated that members of several
different citizen groups and clubs had recently formed the Seward Trails Council to lobby
for outdoor recreation projects. He asked the Council to appoint a city representative to
the Trails Council.
C. ANDY PATAPOFF - Teen Center. Patapoff thanked the Council for
funding the Teen Center for the . summer. He stated that he would like to establish a
non-profit corporation similar to SAAMS to seek grant funding for a new teen center.
D. WILLARD DUNHAM - Trade Board Report. Dunham, Chairman of the
Trade Board, (substituting for Doug Lechner) noted that Spring Creek Correctional
Center Superintendent Kincheloe had addressed the Trade ~oard last week and had
suggested that the Board tackle another prison issue: expanding SCCC to house a limited
number of minimum security prisoners to assist in the operation of the prison and to
perform certain projects in the area. Dunham stated that this project could save
approximately 10 jobs which would otherwise be lost with the transfer of Wildwood
Corrections personnel to Seward. He urged the Council to take this suggestion under
advisement and to work with the Trade Board and Corrections to bring this about.
Dunham stated that expanding the prison to include some minimum security prisoners
would be of mutual benefit to the. community and the prison. Bencardino concurred
with Dunham's comments and stated that this could potentially j:reate additional jobs in
the future. White also expressed .his support for this concept and stated that the city
should do what it could to keep Spring Creek personnel employed. Schaefermeyer
stated that he had met with Kincheloe and Franklin regarding this matter and had been
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informed that the state was seeking space for approximately 400 inmates. The
Commissioner had indicated that he did not believe any new prisons would be
constructed in Alaska, thereby virtuallyptandating the expansion of existing institutions.
The state, therefore, would probably be interested in expanding SCCC because of
additional capacity at the site. Schaefermeyer stated that there was a real potential for
long term growth at this facility. Swartz noted that one of the goals of the original prison
committee was the rehabilitation of those serving time. She noted that housing minimum
security prisoners at the site would offer a window of opportunity to meet that goal.
Cripps stated that the clty would have to ask the public its opinion of expanding the
prison to serve anything other than maximum security prisoners.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC ~ 8.10.015, solicitation of sales or
funds on public property.
Crane moved to introduce Ordinance No. 92-12; the motion was seconded by
White. The question was called, and Ordinance No. 92-12 was introduced by
unanimous consent. Public hearing was scheduled for June 22, 1992.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC Chapter 4.10, absentee voting.
White moved to introduce Ordinance No. 92-13; the motion was seconded by
Swartz. The question was called, and Ordinance No. 92-13 was introduced by
unanimous consent Public hearing was scheduled for June 22, 1992.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, revising SCC Chapter 3.45, annual leave.
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Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
White moved to enact Ordinance No. 92-11: the motion was seconded by Crane.
The question was called, and Ordinance No. 92-11 was enacted by unanimous vote.
C. Resolutions
.
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitleq:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the city operating budget for the Fiscal
Year beginning July 1, 1992.
White moved to approve Resolution No. 92-085: the motion was seconded by
Crane.
White moved to amend the Clerk's budget by adding $4,415 to the personnel line
item in order to reinstate the summer office aide position; the moti.on was seconded by
Dunham.
Crane recommended approval of the amendment. He ,stated that he had toured
the city records vault and had been shown the amount of work needed to be completed
by the Deputy Clerk this season. He noted that without the summer office aide,
important projects such as this could not be completed.
Bencardino stated that positions such as this one were good for the city. He
suggested that any position cuts should be in full-time, not part-time help.
The question was called, and the amendment was approved by unanimous vote.
Bencardino stated that there were still several budget areas which required further
discussion by the Council, adding that he did not think the Council could vote on the
budget at this meeting. He stated that the administration had made very few real cuts
and had failed to budget for needed equipment and building maintenance. He stated
that if the city failed to eliminate some positions this year, even more drastic steps would
be required next year to balance the budget. Bencardino stated that he was surprised
that the Council did not have another work session before this meeting to iron out
budget details. He also objected to cutting only part-time help from the Parks and
Recreation Department rather than eliminating one of the full-time positions. He added
that the Council must address the concerns of the public and make additional cuts in the
budget.
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Swartz stated that she could not agree to hiring another position in the
Community Development Department. She stated that she did not dispute the fact that
the part-time employee had done a lot of work and had proved to be a valuable
employee; however, the city could not take on another full time position.
Dunham stated that just one year ago, she was saying what Bencardino had said,
that more cuts were needed in the budget. However, she now was ready to admit that
she had been wrong. Dunham stated that this year, holding the line was, in effect,
cutting back. She also'stated that Seward City Councils had argued about Parks and
Recreation for many years, and although s-re had always felt tttat the city should hire a
director locally if there was a qualified person available, she did not feel that it was right
to punish the incumbent in the job just to achieve this objective. Dunham said that she
agreed with Bencardino and Swartz about the proposed new position in the Community
Development Department. She suggested that the Planning Commission and community
volunteers could help with many of th\~ projects which needed to be accomplished.
White asked what cuts were currcntly proposed for the Teen Center. Yanez stated
that the city had reinstated funds to operate the Teen Center for 25-30 hours per week
during the summer. He stated that the department's budget cuts would require the
elimination of some of the fund raising cfforts of the Teen Center since this required staff
overtime to accomplish. In addition, the city had cut the Summer Ice Cream Theater
program. Yanez also noted that many of the free children's programs would be dropped
this year due to department cuts. He noted, however, that the department would
attempt to find corporate sponsors for some of these events.
Bencardino stated that he did not object to the Teen Center funding, noting that
this was a good program.
Swartz moved to amend the budget by deleting the new contract position in the
Community Development Department budget; the motion was seconded by White.
Schaefermeyer stated that this was a contract employee, not a new city position.
He added that, since this position would be on line for only two years, it would not
affect the overall employment level of the city work force. In addition, the position could
be terminated on very short notice.
Bencardino stated that the administration's recommendation sounded good on the
surface; however, a position should be cut from Finance or Parks and Recreation if this
position were to be added. He recommended a cut from the Finance Department since
it could more easily spread excess duties among the remaining seven staff members.
Swartz stated that some of the pcnding projects on the Community Development
Department's list had been on hold for several years. She suggested that the city
consider hiring a part-time employee without a degree to assist Martin.
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Crane stated that it might be a good time to postpone voting on this amendment.
He stated that he would like to know the ramifications of not funding positions such as
this one. He suggested that the city contract the top four or five projects rather than
committing to a two-year contract. Crane noted that the Council could have had more
budget work sessions if any two Councilmembers had requested it; however, since this
was not the case, the administration should not be chastised for failure to schedule
additional sessions. He also objected to Bencardino's suggestion that the city eliminate
full-time positions and replace them with part-time ones. He stated that it was good
business to keep the full-time employees who gave you "the best bang for your buck".
Bencardino objected to making any decision on the budget until the Council met
in another work session. He also suggested that the Assistant City Manager assist Martin
if he was behind in his work.
Dunham stated that she would agree to another work session on the budget if the
rest of the Council felt it was needed. She reminded the Council of successful volunteer
projects of the past.
Swartz stated that a work session should be scheduled as soon as possible so that
the Council could move forward with the budget.
Schaefermeyer stated that there had been two work sessions on the budget. Since
that time, not one of the Councilmembers had requested another work session. He
stated that, in addition, there had been three public hearings with very little citizen input.
He noted that the borough required that the city establish its mil levy by June 15th. He
stated that he was hopeful that the city could conclude t:l\e budget process at this
meeting. He added that he did not believe there would be a consensus of Council even
after another work session. He repeated that he had presented a balanced budget with
no tax increases, and added that Seward had the lowest tax rate of any community in the
state of Alaska. Schaefermeyer also stated that eliminating two full-time positions would
not provide for the capital needs of the community.
Bencardino moved to postpone action on Resolution No. 92-085 and its pending
amendment until the special meeting to be held on Wednesday, June 10th at 7:00 p.m.;
the motion was seconded by Swartz.
Dunham stated that she would agree to eliminate the new position in the
Community Development Department, but saw nothing wrong with the rest of the
budget as recommended by the city manager. She stated that Seward was better off than
most other communities in the state. She added that the public had not come to Council
and asked for cuts.
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White stated that the public had told him not to raise taxes; however, he had not
received calls asking for cuts. He stated that he was prepared to vote on the budget as
presented by the City Manager.
Crane stated that he, too, was ready to vote on the budget. He stated that if
Councilmembers had major concerns, another meeting should have been requested prior
to this meeting. He agreed that the Community Development Department's new
position should be eliminated.
In a response to a concern expressed by Schaefermeyer, Cripps asked the
audience to refrain from talking among themselves. .
Schaefermeyer stated that he would withdraw the request for the contract
position.
The question was called, and the motion to postpone was approved with four
YES votes and Crane and Dunham voting NO.
White moved to reconsider the previous question; the motion was seconded by
Crane and failed to carry with Crane, Dunham and White voting YES and Bencardino,
Cripps and Swartz voting NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the Harbor Enterprise Fund budget for the
Fiscal Year beginning July I, 1992.
Dunham moved to approve Resolution No. 92-086, Budget Alternative II; the
motion was seconded by Swartz and a.pproved by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the Electric Enterprise Fund budget for the
Fiscal Year beginning July 1,1992.
Crane moved to approve Resolution No. 92-087: the motion was seconded by
Dunham and approved by unanimous vote.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
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A Resolution of the City Council of the City of Seward,
Alaska, adopting the Water and Sewer Enterprise Fund
budget for the Fiscal Year beginning July I, 1992.
Crane moved to approve Resolution No. 92-088: the motion was seconded by
Dunham and approved by unanimous vote.
5. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the Grain Terminal Enterprise Fund budget
for the Fiscal Year beginning July 1,1992.
White moved to approve Resolution No. 92-089: the motion was seconded by
Bencardino and approved by unanimous vote.
6. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, ~dopting the Motor Pool Internal Service Fund
budget for the Fiscal Year beginning July 1, 1992.
Swartz moved to approve Resolution No. 92-090: the motion was seconded by
Bencardino and approved by unanimous vote.
7. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City CouncU of the City of Seward,
Alaska, adopting the D.A.R.E. Special Revenue Fund budget
for the Fiscal Year beginning July 1,1992.
Bencardino moved to approve Resolution No. 92-091: the motion was seconded
by White and approved by unanimous vote.
8. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the Seward General Hospital Enterprise
Fund budget for the Fiscal Year beginning July 1, 1992.
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Crane moved to approve Resolution No. 92-092; the motion was seconded by
White and approved by unanimous vote.
9. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council' of the City of Seward,
Alaska, adopting the Capital Budget Plan for the 3 Fiscal
Years beginning July 1, 1992.
White moved to approve Resolution No. 92-093; the motion was seconded by
Dunham. "
White asked if the capital budget plan was binding for the next three years.
Schaefermeyer stated that this was merely a plan and was not binding on the Council.
Bencardino stated that he did not see how any of the equipment on the plan could be
purchased without money from the state or city budget cuts.
vote.
The question was called, and Resolution No. 92-093 was. approved by unanimous
10. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the Capital Acquisition Fund budget for
the Fiscal Year beginning July 1, 1992.
White moved to approve Resolution No. 92-094; the motion was seconded by
Crane and carried by unanimous vote.
11. Proposed Resolution No. 92-095 was DELETED from the agenda at
the request of the City Manager.
12. Proposed Resolution No. 92-096 was DELETED from the agenda at
the request of the City Manager.
13. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled: .
A Resolution of the City Council of the City of Seward,
Alaska, approving a change order to the Land Field Services
contract to acquire easements for transmission line construc-
tion.
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Dunham moved to approve Resolution No. 92-099; the motion was
seconded by Crane.
Bencardino stated that every time the city entered into a contract, there were cost
overruns. He asked Diener to explain the need for this change order.
Diener stated that the city's overrun ratio over the past 5 or 6 years had been very
good. He stated that there had been changes to various contracts, but very few overruns.
He noted that this particular change order was the result of a mistake he had made in
totalling invoices prior to bringing the last change order to the Council. He explained
that when this contract was awarded, it was impossible to estimate how much it would
cost the city to obtain all of the variou~; easements necessary for the construction of the
transmission line. Diener noted that if all of the easements had been easy to obtain, the
contract could have been completed without change orders. However, in many cases,
the property owners had not been cooperative and negotiations had taken some time to
complete. Diener stated that he believed this to be the final change order to this contract;
however, there was the possibility that the city would require one additional increase to
allow the contractor to work on acquiring the permit to place the line on 12-Mile Hill.
The question was called, and Resolution No. 92-099 was approved by unanimous
vote.
14. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a chilnge order to the America North!
EMCON, Inc., contract for development of a plan to dispose
of sludge.
Crane moved to approve Resolution No. 92-100; the motion was seconded by
White.
In response to a question from Bencardino, Diener stated that under the original
contract, America North was to provide a plan to dispose of sludge from the sewage
treatment lagoon. However, just after award of the contract, the lagoon failed and a test
of the sludge revealed that it contained sufficient quantities of petroleum products to be
classified as a hazardous substance. This finding necessitated a change in the scope of
the plan design since the Department of Environmental Conservation had then required
two plans, one for contamination assessment and another for disposal.
The question was ~alled, and Resolution No. 92-100was approved by unanimous
vote.
RECESS:
The meeting was recessed at 9:42 p.m. and reconvened at 9:55 p.m.
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12.
UNFINISHED BUSINESS
A. LEGAL BUDGET AMENDMENTS. White moved to approve the
requested revisions to the legal budge~ the motion was seconded by Crane.
White asked for an explanation of the proposed revisions. Schaefermeyer stated
that he recommended increasing the Pruitt-SMIC lease allocation to $26,800 and the
unallocated legal line item by $13,082.' He stated that this would be accomplished by
deleting monies from other line items within the legal budget and would not result in
an increase in the total legal budget of the city.
The question was called, and the legal budget amendments were approved as
requested by unanimous vote.
13. NEW BUSINESS None
14. CITY MANAGER REPORTS
Schaefermeyer reminded Council that absentee voting for the June 23rd special
election had started today in the Clerk's Office.
Schaefermeyer urged the Council to lobby its constituents for the approval of the
bond proposition to repair the Sewage Treatment Lagoon. He noted that approval of the
proposition would allow the city to accept a matching grant from the state and to access
a low interest loan from the state, resulting in an increase of approximately $4.25 per
month in residential sewer charges. He stated that, if the proposition failed, the city
would lose the matching grant and would be unable to access the low interest loan, and
since the city was under a federal mandate to place the treatment plant back in operation
by November 1992, this would result ill a residential sewer charge increase double that
noted earlier.
Arvidson noted that the court decision in the Irby case upheld the city in every
instance. He added that, even if this case was taken to the U.S. Supreme Court, the city
would have had power on line for at least one year by the tlnle case was heard.
Schaefermeyer reminded the Council that its joint work session with the Planning
Commission was scheduled for June 15th at 7:00 p.m.
15. COUNCIL DISCUSSION
BENCARDINO stated that the city should get behind Kincheloe and try to
accomplish his goal to house some minimum security prisoners at Spring Creek. He also
noted the importance of the coal facility and the coal industry to the city and the state.
He encouraged the city to work with Suneel, the Alaska Railroad and Usibelli, as well as
the state, to resolve the existing problems.
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WHITE noted that the Port Development Committee had met on May 21st and
had discussed parking in the Small Boat Harbor, day cruisers and proposed changes to
the harbor tariffs. He noted that the proposed search and rescue fee was of particular
concern for fear that some stranded boaters might not call for help because of the
response fee that would be assessed by the city. White reported that the audience at the
meeting had been adamant that the harbor capital projects fund be used for Small Boat
Harbor capital improvements only. He stated that everyone realized that the funds could
not be dedicated, but those who were paying the extra moorage would like some
assurance that this was the intent. Also discussed at the meeting were safety concerns
with regards to loading and off loading at the dock. White noted that the Committee
also broached the subject of licensing charter boats.
CRANE asked who would be putting together the Manager and Clerk employee
evaluations. Cripps instructed the Councilmembers to deliver their completed forms to
him and he would compile the evaluations to be presented to the Council's appointed
employees.
DUNHAM encouraged Council to sell the sewer bond issue whenever and
wherever possible.
SWARTZ thanked the City Clerk for the exceptional job she has continued to do
for the city. She stated that Murphy was hard working and repref?ented the city well.
Swartz also commended all city employees for working so well under the stress of the
past several days. She complimented the city for creating the new parking lot behind the
Teen Center and noted that it seemed to be working well.
CRIPPS stated that he had attended a meeting with the Commissioner of
Corrections and the Commissioner of the Department of Transportation and Public
Facilities regarding the downsizing of Wildwood Correctional Facility. He noted that the
deletion of a number of positions at Wildwood would impact Seward in a negative way.
He stated that he hoped Kincheloe's proposal could salvage some of the jobs that would
otherwise be lost.
BENCARDINO stated that a lot of downtown business people and their
employees continued to park in front of their businesses on Fourth Avenue. He stated
that if the owners did not park off-street, the city would continue to have a parking
problem downtown. He suggested that the city establish and enforce downtown parking
rules.
DUNHAM noted that the murals provided by Spring Creek C(}ITectional Facility
inmates for the vacant buil!iings downto:wn had made all.the difference in the world to
the look of the downtown areCl. She complimented the. Downtown Merchants
Association for their work on this project. .
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In response to a question from Dunham, Schaefermeyer stated that the contractor
had paid individual property owners for the damage done to theit buildings during the
installation of the sidewalks, and it waIl now up to them to make the needed repairs.
\~~
16. CITIZENS' DISCUSSION
VICTOR STOLTZ, 613 Fourth Avenue, thanked the Council for the resolution
supporting the coal industry.
"
SHELLY KNOPIK, 1411 Chamlierlain Road, employee of Suneel, thanked the
administration, namely Schaefermeyer and Gates, for their continued support of the coal
industry.
WILLARD DUNHAM, Alder & Dimond, Forest Acres, reported on the progress
of the SAAMS project. He noted that the Sea Life Center had been included in the state
capital budget with the funds to come from the criminal oil spill settlement. He stated
that the bill would arrive at the Governor's desk shortly, and he encouraged the Council
and the public to write to the Governor's office and urge him to leave this funding intact.
Dunham also reported that a proposal f,)r $45 Million had been submitted to the Oil Spill
Trustees, requesting that funding be spread out over four years. He stated that the
SAAMS Board would be making a presentation to the Trustees at some future date.
Dunham asked that the Engineering Department address flood control for Japp Creek
as a capital project of the city. He noted that since gravel had been taken for the airport
project, the creek looked worse than before.
LEO WAKEFIELD, Legacy Realty, asked the Council to consider the sale of some
property in the SMIC Dock area to a couple who were interested in processing scrap
plastic. Wakefield played a video showcasing the proposed business and stated that he
would be making a formal proposal to the Council once funding was in place. He noted
that the business would employ approximately 50 people and would be paying a base
wage of $12.50 per hour plus benefits. He stated that this was a very clean industry.
Swartz asked if there was enough waste product in Alaska to make this a feasible
operation. Wakefield stated that the owners would be bringing scrap plastic in from
Washington, Oregon and Canada as well as using Alaska waste.
JACK TAYLOR, Mile 36, Seward Highway, noted that there would be a new
representative for this area in next year's legislature and he believed he would be that
one. He stated that Seward was considered to be a leader statewide and would serve as
a good example to the state.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
BENCARDINO asked Gates if the city was pursuing the proposal made by
Wakefield. Gates stated that he had met with the principals of the company but had not
received anything in writing. He stated that today was the first time he had heard that
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they were interested in purchasing rather than leasing. He added that he was committed
to trying to bring this company in if they were committed to locating here.
WHITE stated that this project should be looked into and added that it would be
a big plus for the community. He thanked Dunham for the SAAMS presentation. White
noted that he and Victor Stoltz would be attending the Railroad Board's meeting in
Anchorage on Tuesday, and following that meeting, he and Stoltz would meet with Sam
Dunaway at the Department of Mining. White stated that the employees of Suneel had
done a lot to raise the concern of those around the state with regards to the coal
industry. He urged anyone who had not done so to write a letter to the governor about
this important issue.
CRIPPS noted that the coal issue was far beyond Seward and affected much of
the state.
DUNHAM thanked Wakefield for being interested enough to be involved in the
plastic recycling project.
SWARTZ added her thanks to Wakefield for his presentation.
18. ADJOURNMENT
.
The meeting was adjourned at 10:50 p.m. and, after !l short recess, the Council
reconvened in Executive Session to discuss the Larty Richard potential litigation..
/
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Donald W. Cripps
Mayor
City Council Minutes
Volume 28, Page 86
1. CALL TO ORDER
The June 10, 1992, special meeting of the Seward City Council was called to order
at 7:05 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Crane led the pledge of allegiance to the flag.
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3.
ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White (arrived at 7:10 p.m.)
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Swartz and carried without objection.
5.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, adopting the General Fund operating budget for the
Fiscal Year beginning July 1, 1992.
Cripps noted that this resolution and a pending amendment had been continued
from the June 8,1992, regular meeting. The motion before Council read as follows:
To amend the budget by deleting the new contract employee position from the
Community Development Department budget.
Krasnansky stated that his understanding was that when the Community
Development Department was created, it was not the intent of the Council to create
another position within the department.
Bencardino stated that he was concerned that priority projects would fail to be
accomplished if this position was not funded. He suggested taking the funds from
another department to fund the position if it were really needed. He also suggested that
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the administration shift other personnel to Martin's department or shift some of his
duties to someone else within the city.
Swartz stated that when this position was created as a part-time one last year, she
was assured that this was to be a temporary solution. She stated that she would agree
to providing assistance for Martin through the remainder of the summer, but not beyond
that time.
WHITE arrived at 7:10 p.m.
Bencardino stated that he understood Swartz's concerns. . In response to a question
from Bencardino, Schaefermeyer stated that Martin's budget had increased primarily
because of contracted services which were necessary to perform the lease management
function of his job.
Krasnansky stated that, rather than increasing this budget, the administration
should delegate some of Martin's tasks to others within the system.
Dunham stated that she did not want to give the impression that her vote on this
amendment was any reflection on Martin. She added that she could not support adding
another position anywhere within the city.
In response to a question from Bencardino, Schaefermeyer stated .that Skibeness
was no longer available to the city for the summer months; however, she would be
available to work 10 hours per week during the coming school year.
Swartz stated that she had never intended the cemetery project to become such
a major project for the city. She suggested that the city use volunteer help to accomplish
the work which needed to be done.
Bencardino stated that he realized the cemetery had been an issue for 10 years or
more. He complained that nothing was ever completed because Martin is continually
asked to take on additional projects. He stated that either the Council must make this
a priority for the administration, hire someone to do it, or resign itself to not ever having
the project completed.
Krasnansky stated that the Council was assured that this work would be done
within the existing budget. He stated that it was not critical that most of these projects
be completed immediately and suggested that the real problem seemed to be a failure to
prioritize existing projects.
Schaefermeyer stated that the Community Development Department did exist and
Martin had been an ~mployee for 11 years. H~ noted that the department was created
some time back in responl'e to criticism from the Council. He stated that the position
requested was for a contract employee to accomplish tasks which the Council had
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indicated it wanted to see completed. He stated that the Council had no understanding
of the amount of work Martin did for the community.
White noted that there were a lot of projects the Council requested and suggested
that the Council hire Skibeness for the winter on a part-time basis to complete a limited
number of the projects.
Krasnansky stated that the projects listed were not essential to the operation of the
city and could be deferred. ~
The question was called; and thE~ amendment was approved by unanimous vote.
Cripps stated that the legal budg>;?t for this year totalled $303,500, and this was too
much money to spend for legal services for a town of some 2,000 people. He stated that
the Council must do something about the way the city spent money for legal services.
He noted that he was not sure what the number should be, but he was sure that this
number was too high. Cripps stated that, in his opinion, it was time for an in-house
attorney. H added that he was willing to go along with the present arrangement this
year, but only if the city could start working toward another system.
Bencardino stated that he had no problem leaving the money in tact within the
Legal Services Department; however, he felt the city sh(mld immediately begin
advertising for an in-house attorney.
Dunham stated that the city should probably have had someone other than the
attorney put together the report on legal costs for an in-house attorney as opposed to
contracted services; however, the numbers he gave the Council were probably accurate.
She noted that any firm hired by the city would cost roughly what was currently spent
for the services of Perkins Coie. She stated that the public had expressed concerns about
the size of the legal budget, but they must understand that the city had "a ton of law
suits out there" and continued to do business with litigious people. She stated that there
was no reason to think that legal bills would go down just because the city switched legal
firms or hired an in-house attorney. She added that, since the public was convinced that
too much was being spent for legal services, she was willing to try the in-house attorney
approach; however, she felt this would prove to be a mistake. Dunham stated that the
one advantage to having an attorney on staff would be hiWher easy accessibility. She
stated that she did not feel comfortable calling Arvidson when she had concerns because
she was always concerned about the cost of the call to the city. She added, however, that
this easy accessibility would also be a detriment since it would be all too easy for
Councilmembers and townspeople to drop in on the attorney for any or no reason, thus
diverting his time from legal issues.
Crane suggested that the Council address what it intended to do with the Dawson
contract. He stated that prior to this legislative session, he had questioned the value of
this expense. However, after seeing what Dawson was able to do for the city in the final
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hours of the legislative session and in the special session, he felt that a ten percent
reduction in the contract would not benefit the city enough to warrant allowing Dawson
to take on other municipal clients. .
Cripps and White concurred. Cripps stated that Dawson had done yeoman's
services for the community over the past several years. Schaefermeyer stated that he had
included enough in the budget to cover the original agreement and would be bringing
an amendment to the Council on June 22nd to extend the contract for an additional year
at the current rate.
Crane stated that, with the well drying up in Juneau, it was critical that the city
have a good lobbyist on its team.
Dunham stated that she had begun to think of Dawson's position as an advertising
budget. She stated that just as commercial enterprises needed advertising when business
was poor more so than when it was good, the city needed the services of its lobbyist
more when money in Juneau was tight. She noted that Seward continued to constantly
fight to retain what it now had, and Dawson was crucial to that fight.
Swartz agreed that there were less dollars in Juneau; however, Dawson seemed
to get Seward a good share of whatever was available.
Bencardino stated that his problem with the budget as a whole was that the city
was not protecting facilities or property that it owned. He stated that by protecting staff
positions, other needs were being ignored. He complained that there was nothing in the
budget for maintenance, repairs or replacement of ,equipment or facilities.
Swartz stated that she would like to see all excess revenues in the general fund
budget placed in the capital acquisition fund.
The question was called, and Resolution No. 92-085 was approved as amended
by unanimous vote.
B. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the acquisition of certain critical
easements for transmission line construction for greater than
fair market value.
Crane moved to approve Resolution No. 92-104; the ~otion. was seconded by
Swartz.
Crane asked how the city had arrived at the negotiated settlement figures.
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Diener stated that the right-of-way contractor had been making appraisals on the
properties required for transmission line construction based on all available data, and, for
the most part, his appraisals were probably accurate. He stated that the majority of those
the city dealt with were willing to work within the budget established for acquiring their
properties. However, the last few easements in any project were always the most
difficult to obtain. He stated that the owners of the last few parcels knew that this was
an opportunity to make a dollar.
Diener stated that the price agreed to on the Gillespie property was not
reasonable, but he refused to sell the easement for less. He stated that since this
easement was critical to the construction of the line, the city had no choice but to meet
his price.
In reference to negotiations with the Resurrection Bay Baptist Church, Diener
stated that the pole to be located on that property must be located off the highway for
safety reasons. He stated that although the church pastor had been very cooperative, the
congregation thought the property was worth more than the city's assessment. However,
since the contractor would be using a portion of the church property as a staging area,
there was some justification for paying more than fair market value. He added that he
would rather the city pay the $5,000 than litigate this matter.
Diener stated that the Anderson easement was the largest the city had to acquire.
He noted that this was a realignment of the transmission line, and the city had no prior
easements across the property. He stated that the city had considered a number of
different routings and alignments; however, even with the increased price, this remained
the most desirable option.
Diener stated that the price set by Murawsky for the easement across her property
was much more than the property was worth, but the city had been unable to negotiate
a lower price, and it would cost considerably more than she was asking to have Arvidson
litigate the issue.
Diener noted that, while condemnation was an option, it would be considerably
more costly than the prices asked for the easements and would take several months to
complete.
Crane thanked Diener for his explanation.
In response to a question from Bencardino, Diener stated that acquisition of these
easements represented the last of the properties needed for this phase of the transmission
line construction.
The question was called, and Resolution No. 92-104 was approved by unanimous
vote.
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7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
CRANE stated that it was nice to see that the transmission line easement
acquisitions had been completed as smoothly as they had.
WHITE concurred. He stated that the city had shown itself to be a good neighbor
in the way the easements were approached. White stated that, through the efforts of the
Suneel employees, awareness of coal industry issues had been raised around the state.
He stated that all of the parties involved would be sitting down at the table next week
to begin working things out.
BENCARDINO asked when the city was to begin advertising for an in-house
attorney.
CRIPPS instructed the Clerk to make this an agenda item for the next regular
meeting.
SWARTZ stated that she was pleased to see the end of the city's electric problems
in sight with the completion of the transmission line this year.
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 8:02 p.m.
, . . / . )
( . / ....... ,fJ e:;
';;{/( j.U(c-tlut u', . ..iYt
Donald W. Cripps
Mayor
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1.
CALL TO ORDER
The June 22, 1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4.
APPROVAL OF MINUTES
Krasnansky moved to approve the June 8 and June 10, 1992, meeting minutes as
presented; the motion was seconded by White and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Schaefermeyer asked the Mayor to allow Michael Brown, president of Chugach
Alaska Corporation, to address the Council under Item to, Presentations with Prior
Notice. Cripps noted that Jim Pruitt had also asked to address the Council. Murphy
noted that Sheila Gottehrer had asked to have her presentation deleted from the agenda.
Krasnansky moved to approve the Regular Meeting Agenda as amended; the
motion was seconded by White and carried by unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the June 19, 1992, assembly meeting and discussed the recently adopted borough
budget.
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7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CA:LENDAR
.,
~!
Crane moved to approve the qmsent Calendar as presented; the motion was
seconded by Dunham.
Krasnansky asked to move Item F to Resolutions.
Schaefermeyerrequested that proposed Resolution No. 92-110 be replaced with
a substitute resolution which added a 15% contingency to the shipping and pile driving
contracts. There was no objection from the Council.
The question was called, and the Consent Calendar was approved as amended
by unanimous vote. The following actions were taken:
A. Resolution No. 92-107. approving a one-year extension to the Kent Dawson
contract to provide lobbying services for the city, was approved;
B. Resolution No. 92-108. approving the FY 1993 jail contract (C92-478), was
approved;
C. Resolution No. 92-109. accepting a grant for public ramp access system
improvements in the Small Boat Harbor, approving the proposed project and assuming
ownership of the pedestrian ramp upon completion, was approved;
D. Resolution No. 92-110 (Substitute), awarding a contract (C92-479) for public
ramp access system improvements in the Small Boat Harbor and waiving city bid
procedures, was approved;
E. Resolution No. 92-111, authorizing the purchase of power poles (C92-480)
without full utilization of city bid procedures, was approved;
F. Resolution No. 92-112. authorizing a contract extension for professional
computer support services provided by Amos Computer Consultants, was moved to the
regular meeting agenda;
G. April 1992 invoice from Perkins Coie for legal services totalling $21,588.50
was approved for payment;
H. Proposed legal budget amendments were approved;
I. Chamber of Commerc~ request for. fireworks permit for Fourth of July cele-
bration was approved; and
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J. Notice of June 24,1992, canvass of the June 23rd special election was noted
for information.
9. PUBLIC HEARINGS
A. Notice of public hearing as posted and published as required by law
regarding the proposed renewal of long term leases to Mark A. Clemens and Joan L.
Clemens of Lots 1 and 2, Block 1, Marina Subdivision, (1301 and 1303 Fourth Avenue)
was noted, and the public hearing was opened. No one appeared in order to be heard,
and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. SHEILA GOTTEHRER RCAC Update. Ms. Gottehrer was unable to attend
the meeting and asked that her presentation be rescheduled to a later date.
B. MICHAEL BROWN. Chugach Alaska COIF oration President Brown
addressed the possibility of finding a new operator for the sawmill, and he suggested that
the state, city and Chugach work together as a team to put the sawmill back into
operation. He introduced Tyler Jones who had been hired by Chugach to put together
a business plan towards this end. Jones reviewed the plan for the Council and noted
that copies of it had been made available to the city.
C. TIM PRUITT - Seward Ship's Chandlery. Pruitt noted that the Council had
before it a draft of his proposal to purchase the Shiplift and adjacent property at SMIC.
He stated that his offer represented the amount of money it would take to make the
harbor fund whole, plus monies to repay EDA for the rails and cradles grant. He
reviewed the figures he had presented in his proposal and stated that he needed an
answer from the city as soon as possible.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC fi 8.10.015, solicitation of sales or
. funds on public property.
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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.
Crane moved to enact Ordinance No. 92-12; the motion was seconded by Swartz
and carried by unanimous vote.
1. Copies having been made available to th~ public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC Chapter 4.10, absentee voting.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
Swartz moved to enact Ordinance No. 92-13; the motion was seconded by
Krasnansky and carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entiUed:
A Resolution of the City Council of the City of Seward,
Alaska, approving an employment agJ:'eement with the city
manager. .
Cripps noted that action on thiIJ resolution had been postponed from the May
27, 1992, meeting, and a motion for adoption was on the floor.
Bencardino stated that he thought there would be an executive session with the
city manager prior to voting on this resolution. White stated that he had understood that
each councilmember was to individually talk to Schaefermeyer about his contract prior
to this meeting. Bencardino asked if the evaluations of appointed officials had been
completed. Cripps stated that the evaluations had been turned in to him, but they had
not been discussed with anyone as yet. Cripps added that the evaluations had nothing
to do with the employment agreement and was a separate issue altogether.
Crane moved to call the question on the previous motion; the motion was
seconded by Bencardino and carried with Crane, Cripps, Dunham, Swartz and White
voting YES and Bencardino and Krasnansky voting NO.
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The question was called, and Resolution No. 92-083 was approved with Crane,
Cripps, Dunham, Swartz and White voting YES and Bencardino and Krasnansky voting
NO.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving revisions to the Small Boat Harbor Tariff.
Crane moved to approve Resolution No. 92-095: the motion was seconded by
White and carried by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving revisions to the General Terminal Tariff.
Krasnansky moved to approve Resolution No. 92-096: the motion was seconded
by Swartz and carried by unanimous vote.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the continuation of a long term lease of
Lot 2, Block 1, Marina Subdivision, to Mark A. Clemens and
Joan L. Clemens (Lease No. RE-O(8).
White moved to approve Resolution No. 92-105: the motion was seconded by
Dunham and carried by unanimous vote.
5. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City .of Seward,
Alaska, authorizing the continuation of a long term lease of
Lot 1, Block 1, Marina Subdivision, to Mark A. Clemens and
Joan L. Oemens (Lease No. RE-O(9).
Crane moved to approve Resolution No. 92-106: the motion was seconded by
Dunham and carried by unanimous vote.
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6. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving revisions to the Water and Sewer Tariffs.
Krasnansky moved to approve Resolution No. 92-113; the motion was seconded
by Dunham and carried with six YES votes and Krasnansky voting NO.
7. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
,."
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the Chamber of Commerce to issue
vendor permits for the solicitation of funds or sales on city
property during the Independence Day celebration.
Krasnansky moved to approve Resolution No. 92-114; the motion was seconded
by Crane and carried by unanimous vote.
8. Copies having been made available to the public, Cripps noted by title only
a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing a contract extension for professional
computer support services provided by Amos Computer
Consultants.
Krasnansky moved to approve Resolution No. 92-112; the motion was seconded
by Swartz.
Krasnansky asked if the city had issued a request for proposals for computer
services. He noted that when the contract was originally awarded two years ago, the
Council had expressed some concern that it was sole-sourced without going to bid.
Finance Director Gifford stated that the city had bid this contract last year and was
now asking for an extension.
The question was called, and Resolution No. 92-112 was approved by unanimous
vote.
12. UNFINISHED BUSINESS
A. Attorney Services. Cripps moved to instruct the administration to
advertise for an in-house attorney; the motion was seconded by Bencardino.
[ CSEi55205 1
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Krasnansky moved to amend the motion to not limit the solicitation to in-house
attorneys; the motion was seconded by Dunham.
Cripps stated that his recommendation for an in-house attorney rather than a
contract attorney was based on the number of long distance phone calls for which the
city was currently billed.
Bencardino stated that he would like to stipulate that if a firm wanted to do
business with the city, it would be required to set up an office in ,seward.
Krasnansky stated that his second did not include a requirement for a local office,
and his purpose for going out to bid was not necessarily to change firms, but to see if the
city was paying a competitive price for legal services.
Dunham stated that there had been many councilmembers in the past who spent
entirely too much time in city hall and tried to get more involved in daily operations
than a city councilmember or mayor should be. She noted that this could result in one
or two people occupying so much of the attorney's time that he could not get his job
done. She stated that, for this reason, she would not insist that any attorney have a local
office. She noted that, if an attorney did establish an office in Seward, the Council must
set rules about council and others monopolizing his time.
Swartz stated that she did not feel it was unreasonable for a firm to have an
attorney located in Seward. She stated that she felt that the city should work towards
having an in-house attorney, adding that, in her opinion, this would result in a cost
savings to the city. However, she stated that she would not rule out any firm who
would be willing to put an attorney on site.
Crane concurred with Krasnansky and stated that the city should not put limits
on who could bid for the work. He stated that his main concern was that the city have
an understanding for a transition period while the search was under way.
White stated that he viewed this solicitation as "testing tIle water" to see if the city
was paying the right price for attorney services.
Krasnansky stated that the city might find that it already had the best deal
available.
Bencardino stated that it was time to try something different to save money.
The question was called, and the amendment was approved by unanimous vote.
Schaefermeyer asked for clarification from Council regarding the solicitation and
asked the Council to set some parameters regarding salary and benefits. Murphy also
asked the Council if it wished to require that all applicants have municipal experience.
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Dunham stated the city should definitely require municipal experience and should
include a city benefits package for a staff attorney.
Bencardino stated that the salary should be placed at $60,000 to $75,000 per year.
Krasnansky stated that he would be leery of any attorney who would work for a
salary that low. In response to Bencardino's claim that this was what Kenai paid for legal
services, Krasnansky stated that one could not compare what was happening in Seward
with any other community in Alaska. He added that the job was worth much more than
that range.
Cripps stated that he would like .to see the salary advertised as "DOE" rather than
setting a limit. Swartz concurred.
Cripps stated that his motivation in bringing this matter forward was not personal
but reflected budget concerns and concerns expressed by the public.
Crane asked if the RFP process was a normal procedure. Schaefermeyer stated
that neither he nor Murphy had any experience in soliciting legal services; however, they
could avail themselves of RFP's and recruitment ads available through the ICMA or lIMe.
Murphy stated that she would not publish any advertisement for legal services
without first giving each of the councilmembers an opportunity to review it and suggest
changes.
The question was called, and the motion to instruct the city clerk to solicit bids
for qualified firms and individuals to provide legal services to the city was approved
by unanimous vote.
13. NEW BUSINESS
A. Dog kennels in residential areas. Dunham stated that she could
understand why people wanted kennels and disliked restrictions; however, in this
instance, the Planning Commission should be asked to reconsider its position. She stated
that kennels made poor neighbors.
Swartz, referring to the letter from Steve Wilcox, stated that this many dogs in a
neighboring yard was just too much. She, too, suggested sending the ordinance back to
the Planning Commission for another look.
Bencardino stated that this many dogs should be housed in a building to avoid the
problems Wilcox referred to in his letter.
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Volume 28, Page 101
Schaefermeyer asked Council to direct the Planning Commission to draft an
ordinance which it could recommend to the Council. He added that, technically, this
ordinance did not have to go to P&Z prior to Council action.
Schaefermeyer, responding to Krasnansky, stated that an ordinance had been
drafted which addressed all domestic animals.
Swartz stated that there definitely should be a limit on the number of animals
which could be housed..within the city. .
White stated that some thought should be given to lot size in addressing numbers
of animals.
Krasnansky stated that he would introduce the ordinance at the Council level
rather than sending it to P&Z if he could find a second.
Cripps instructed the clerk to put this ordinance on the July 13th agenda for
introduction.
14. CITY MANAGER REPORTS
SCHAEFERMEYER stated that the city received a large delegation of Korean
Economic Council representatives over the weekend. In attendance was Loren
Lounsbury, Alaska Railroad Board Member, who informed Schaefermeyer that the 1992
coal contract problems between Suned and Usibelli had been resolved. However, it
would require action on the part of the legislature and the governor for a resolution of
problems beyond 1993.
SCHAEFERMEYER noted that Princess Cruise Ship Lines had made Seward its
turn around point for all southcentral operations. He stated that the city would be
working with Princess to develop activities to see that some of the additional 700,000
tourists who would be passing through spent some time in Seward. He added that
Princess might be making some substantial investments in this immediate area in the next
few years.
SCHAEFERMEYER noted that WGN was currently not on the air. He stated that
the local cable company was experiencing problems with its video modulator and other
equipment and was hoping to complete repairs within the next 10 days.
SCHAEFERMEYER stated that the city had received a letter from a local realtor
regarding the proposed plastic recycling company. He stated that the letter contained
a request to purchase a tract of land just east of the sawmill property. He noted that this
request would require the Council to make some important policy decisions with respect
to the disposition of real property owned by the city. Schaefermeyer stated that he
would be coming to the Council at the next meeting for some direction.
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City of Seward, Alaska
June 22, 1992
City Council Minutes
Volume 28, Page 102
SCHAEFERMEYER thanked the Council for its vote of confidence in approving
his contract.
SCHAEFERMEYER reminded the Council and the public of tomorrow's special
election.
MURPHY reminded the Council that the canvass of the election was scheduled
for 4:00 p.m. on Wednesday, June 24th. She also asked the Council to note the itinerary
for the visiting Obihiro delegation which had been distributed prior to the meeting.
15. COUNCIL DISCUSSION
SWARTZ stated that the Princess Cruise Lines plan to move to Seward was good
news.
KRASNANSKY requested an excused absence for the month of July.
DUNHAM stated that the decision by Princess to locate its turn around operations
in Seward would give the city the ammunition to move forward with the B Street Dock
construction. Schaefermeyer noted that last week, Willard Dunham had travelled to
Juneau to meet with budget director Stastny regarding funding for the Alaska Sea Life
Center, the B Street Dock and the Oyster Spat facility. Dunham had returned to Seward
very much encouraged and had noted that Stastny ha4 stated that Seward had provided
the most detailed and best information of any community with respect to support for its
capital projects.
CRANE urged everyone to vote on Tuesd(lY.
WHITE, too, urged citizens to vote. He congratulated Carpenter and Gates for
their role in convincing Princess Lines to move to Seward.
BENCARDINO asked if the Council would be meeting in a work session
regarding the Pruitt proposal. Schaefermeyer stated that the city had just received a
proposal earlier in the day and would like an opportunity to prepare an overview and
recommendation for the Council.
CRIPPS instructed the clerk to schedule a work session for June 29th at 7:00 p.m.
BENCARDINO stated that ti)e downtown parking situation was confusing, adding
that the city should place a sign at the end of.Fourth Avenue directing motorists to the
parking lot. Engineering and Utilities Manager Diener stated that the city had signs on
Third, Fourth and Fifth Avenues directing traffic to ti)e lot. Schaefermeyer stated that
the city would look into placing a large sign at the bottom of Fourth Avenue as requested
by Bencardino.
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BENCARDINO asked about the possibility of creating a parking lot next to the
State Highway Department's property on Seventh Avenue. Schaefermeyer stated that
this had been considered last year, but there was quite a bit of concern expressed by the
public about the potential loss of young spruce trees on the lot. Bcncardino stated that
parking was needed there for the Boat Harbor area and suggested that the trees be
planted around the perimeter of the parking lot. Schaefermeyer suggested proposing this
to the Planning Commission for a recommendation.
SWARTZ stated that Bencardino had a valid point regarding parking lot signage
on Fourth Avenue. She suggested a large sign to c;atch the attention of passing motorists.
KRASNANSKY stated that duting initial discussions, the original plan for the
downtown parking lot was to provide a place for employees of downtown businesses to
park in order to free Fourth Avenue for customers and tourists. He suggested that the
Downtown Merchants Association get the word out to their employees.
CRANE stated that this had been addressed by the merchants. He noted that he
had received complaints from tourists abop.t the signage. He also noted that the signs
at the bottom of Fourth Avenue state "do not enter", and at the other end of the lot are
signs regarding liability, no camping, etc., which confuse the motorists and lead some
people to believe that public parking was not allowed in the lot.
CRIPPS stated that he looked forward to greeting the delegations from Obihiro
and Akita.
CRIPPS noted that Princess Lines would be bringing many crew members as well
as passengers into town and suggested that the city and the Chamber address ways the
city could serve these visitors.
16. CITIZENS' DISCUSSION
JONATHAN SEWALL, 2403 Dimond Blvd., stated that Princess Tours currently
had 55 employees at the Princess Lodge in Cooper Landing. He also noted that Princess
had participated in improving the access road to its lodge in Cooper Landing which
might indicate a willingness on the company's part to participate in the B Street Dock
construction. Sewall also objected to the resurrection of the animal control ordinance.
He stated that while he sympathized with Wilcox, he did not think it was necessary to
enact a new law because of one complaint which could probably be addressed under
existing law.
BOB VALDATTA, 520 Fifth Avenue, thanked Bencardino and Gates for putting
everyone together to get the sawmill on line.
JIM PRUITT, Maple Street, objected to the city's award of a contract to purchase
an aluminum gangway from a firm in Washington without going to public bid.
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City of Seward, Alaska
June 22, 1992
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Volume 28, Page 104
CHRIS GATES, Johnstone Road, stated that without the help of certain Suneel
employees, the Alaska Railroad would not have taken a leadership role to solve the coal
contract problems for this year.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
18. ADJOURNMENT
The meeting was adjourned at 9:40 p.m.
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Donald W. Cripps /-
Mayor
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City Council Minutes
Volume 28, Page 104
1. CALL TO ORDER
The June 24, 1992, special meeting of the Seward City Council was called to order
at 4:00 p.m. by Vice Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3, ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis Bencardino Karen A. Swartz
Dale White
comprising a quorum of the Council; and
Linda S. Murphy, City Clerk
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City of Seward, Alaska
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ABSENT were:
Donald W. Cripps (excused)
Dave Crane (excused)
James Krasnansky (unexcused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Swartz moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Bencardino and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Canvass of 06123/92 election. The Clerk noted that the city had conducted
a special election on Tuesday, June 23, 1992, to seek voter approval of the issuance of
revenue bonds to fund sewer improvements in Dairy Hill and general obligation bonds
to fund the city's share of the repair of the Lowell Point Sewage Treatment Lagoon.
Murphy noted that she had displayed the precinct registers, questioned voter and
absentee voter logs and the unofficial results of the election. She further noted that the
precinct boards had counted the ballotr, of 249 voters who were properly registered in
time for the election and whose names appeared on the precinct registers. Five voters
had been required to cast questioned ballots because their names did not appear on the
precinct registers.
Murphy distributed a list bearing the names of the ten voters who had requested
absentee ballots. She noted that nine ballots had been returned to the city in time to be
considered by the Canvass Board. Of lhese, she recommended that the Council reject
the ballot cast by EARL G. SKINNER, who had failed to properly execute the oath on
the back of his absentee ballot envelope as required by law.
White moved to reject the ballot cast by Earl G. Skinner; the motion was
seconded by Swartz and carried unanimously.
Murphy put the rejected ballot aside for safekeeping.
Murphy stated that the other eight ballots were cast by qualified electors of the
city and were properly witnessed as required by law. She recommended that the
Canvass Board count the ballots cast by the following voters:
PRECINCT NO.1
PRECINCT NO.2
Ruth o. Bomstead
John C. Anderson III
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City of Seward, Alaska
June 24, 1992
City Council Minutes
Volume 28, Page 106
Fred Brewster
Betty L. Casey
Larry M. Martilla
Christy Audette
Willard Dunham
Kerry T. Martin
'I
White moved to accept the ClerK's recommendation to count the eight absentee
ballots; the motion was seconded by Bencardino and carried unanimously.
As Dunham read the names on the absentee ballot envelopes, Swartz opened the
outer envelopes, removed the inner envelopes and set them aside to be opened later in
the meeting.
Murphy distributed the list of persons casting questioned ballots on election day.
She stated that five questioned ballots had been cast by voters whose names did not
appear on the precinct registration lists. She recommended that the Canvass Board reject
three of the questioned ballots as follows:
Precinct No.2
Brian A. Dorsett
Jennifer Knight
Carl E. Warner
Resided in and was registered in Bear Creek
Registered in Bear Creek
Registered in Kotzebue
Swartz moved to accept the Clerk's recommendation to reject the three ballots;
the motion was seconded by Bencardino and carried unanimously.
Murphy put the rejected ballots aside for safekeeping. .
Murphy stated that two of the questioned ballots had been cast by qualified voters
of the city, and she recommended that the board count the ballots cast by the following:
PRECINCT NO.2
Kelly Cinereski
C. Locke McCann
Registered in Precinct No. 1
Was actually on list - Election Board error
White moved to accept the Clerk's recommendation to count the two questioned
ballots; the motion was seconded by Bencardino and carried by unanimous vote.
As Dunham read the names on the questioned ballot envelopes, Swartz opened
the outer envelopes, removed the inner envelopes and put them aside with the waiting
absentee envelopes. The inner envelopes were then shuffled and opened by Dunham.
The ballots were removed and read aloud by Dunham as Swartz observed and as city
staff members Annie Martin and Patsy Jones conducted the tally. Murphy read the
results of the combined totals as follows:
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June 24, 1992
107
City Council Minutes
Volume 28, Page 107
Precinct 1 Precinct 2 Abs/Ouest. Total
PROPOSITION NO.1'
Dairy Hill Sewer
Revenue bonds (NTE $540,(0)
YES
NO
PROPOSITION NO.2
Sewage Treatment Plant
G.O. Bonds (NTE $1 Million)
YES
NO
TOTAL VOTES CAST:
TOTAL VOTES COUNTED:
81
53
165
93
79
35
5
5
103
32
6
4
197
62
88
26
141
139
123
120
10/5
8/2
264
259
Murphy stated that any 10 qualified voters of the city could protest the election
by filing a written complaint with the City Clerk prior to 5:00 p.m., Monday, June 29,
1992. She added that if no such protest was filed, the City Council would certify the
election as valid and declare the results official at a special meeting called for that
purpose on June 29th.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION None
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 4:15 p.m.
(City S-eair . ~
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City of Seward, Alaska
June 29, 1992
City Council Minutes
Volume 28, Page 108
1. CALL TO ORDER
The June 29, 1992, special meeting of the Seward City Council was called to order
at 7:26 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Crane led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis Bencardino
Karen A. Swartz
Dave Crane
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Linda S. Murphy, City Clerk
ABSENT were:
Beverly Dunham (excused)
James Krasnansky (excused)
Dale White (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Crane moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Swartz and carried by unanimous consent.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Certification of Election. Crane moved to certify the June 23, 1992, special
election as valid and to declare the results as official; the motion was seconded by
Bencardino and carried by unanimous vote of the Council.
The following results were declared the official results of the election:
( C ,H"a' )
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City of Seward, Alaska
June 29, 1992
City Council Minutes
Volume 28, Page 109
I PROPOSITION NO.1: Dairy Hill Sewer Bonds
YES 165
NO 93
PROPOSITION NO.2: Sewage Treab]1ent Plant Bonds
YES 197
NO 62
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
Bencardino asked Schaefermeyer to place a trash dumpster at the waterfall to help
alleviate the litter problem there.
9. CITIZENS' DISCUSSION None
I
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 7:30 p.m.
~ . / ~
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Donald W. Cripps
Mayor
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( CSE155216 ]
110
City of Seward, Alaska
July 13, 1992
City Council Minutes
Volume 28, Page 110
1. CALL TO ORDER
The July 13,1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
James Krasnansky (excused)
Dale White (excused)
4. APPROVAL OF MINUTES
Swartz moved to approve the June 22, 24, and 29, 1991, meeting minutes as
presented; the motion was seconded by Crane and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda ~s presented; the motion
was seconded by Bencardino.
Cripps moved to meet in executive session to discuss performance evaluations
and IBEW contract negotiations strategy; the motion was seconded by Bencardino and
carried by unanimous vote.
The question was called, and the agenda was approved as amended by
unanimous vote..
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City of Seward, Alaska
July 13, 1992
City Council Minutes
Volume 28, Page 111
6.
BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report wa~ given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CALENDAR
Swartz moved to approve the Consent Calendar as presented; the motion was
seconded by Bencardino.
Schaefermeyer noted that the administration had provided copies of Resolution
No. 92-117 which contained contractor names and bid/contract amounts for the
stockpiling of hog fuel from Chugach Forest Products Mill.
The question was called, and the Consent Calendar was approved as presented
by unanimous vote. The following actions were taken:
A. Resolution No. 92-115, approving signatures for the city's bank accounts,
was approved;
B. Resolution No. 92-116, approving an agreement with the state of Alaska for
Land and Water Conservation Fund Act grant monies for Waterfront Park improvements
and establishing a project budget, was approved;
C. Resolution No. 92-117, approving a contract to load, haul and stockpile
wood-waste product from the Chugach Timber Products Mill, was approved;
D. Resolution No. 92-120. appropriating sales tax revenues to Seward General
Hospital, was approved;
.
E. May 1992 invoice from Perkins Coie for legal services totalling $18,439 was
approved for payment;
F. Notification from the Alaska State Chamber of Commerce regarding a raffle
which is to be conducted in Seward July 10 - October 6, 1992, was noted for information;
and
G. Report of purchase orders totalling between $5,000 and $10,000 which were
issued in May 1992 was noted for information.
9. PUBLIC HEARINGS
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City of Seward, Alaska
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Volume 28, Page 112
A. Proposed disposal of shiplift and adjacent property to Tames Pruitt. Cripps
noted the notice of public hearing which had been published and posted as required by
law regarding a proposed disposal by sale of the shiplift and adjacent property at the
Seward Marir:te Industrial Center to James T. Pruitt, dba Seward Ship's Chandlery.
BOB VALDATTA, 528 Fifth Avenue, asked if there was a legal buyer/seller
agreement signed and on file. He also asked if all bills owed by Pruitt were current. In
addition, Valdatta asked the following questions: 1) Would there be a worker's
agreement or a shipyard scale? How much business would be lost as a result of this
agreement? How would the travelift and shiplift be maintained? Had the city
considered establishing a Port Authority? Valdatta objected to the sale and suggested
that things remain as they currently were or that a new lease be negotiated.
WILLARD DUNHAM, Forest Acres, stated that there was no assurance that this
issue would go away if this proposition was rejected by the voters on August 18th. He
stated that if this issue was put to a public ballot, there should be some assurance that
the election would settle the question once and for all.
JIM PRUITT, Maple Street, responding to questions from Valdatta, stated that he
was current with his electric bill. He recommended that two propositions be put on the
special election ballot - one to sell the facility and one to lease it. He added that this was
a controversial issue, and the voters should have the option to consider the lease package
as well as the proposed sale of the fa~ility.
GARRETT SCHNELL, 414 Fifth Avenue, stated that he still favored public use of
the facility. He noted that he had been trying to negotiate a lease with the city for
several months and had always been told that the lease rate .was $10,000 per acre per
year. He questioned this valuation given the terms set forth in the resolution before the
Council.
CITY ATTORNEY ARVIDSON noted that he had met with Pruitt's attorney
earlier in the day and would like to clarify for the public and the Council the terms of
the sales agreement prior to closing public hearing. He noted that the following issues
had been resolved at this meeting: 1) "Best efforts to conclude acquisition of the
tidelands" would include payment by the city of any costs to fast track the acquisition of
title to the tidelands and would assure that closing not be postponed pending receipt of
said title; 2) If the local planning and platting authority imposed unreasonable
restriction or conditions on the platting process or development of the property, either
party could decide not to go forward; 3) Pruitt agreed to continue to pay the $25,000 per
month user fee for use of the syncrolift until such time as EDA requirements have been
satisfied; 4) Both parties agreed th(it the city could do nothing about taxe~ since that was
a borough responsibilityi and 5) In the event Pruitt was unable to close with EDA, the
city would attempt to work out a loan guarantee or some other type of guarantee that
would satisfy the city.
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RONALD BAIRD, attorney for SSC, stated that since payment of the new tariff
was in arbitration, Pruitt would agree to pay the $25,000 per month user fee without
prejudice to either party's position as to fairness or correctness of this tariff and so as not
to affect the outcome of the arbitration should it go forward at a later date. He stated
that this commitment on the part of Mr. Pruitt was for July and August only and was not
intended to go beyond that date if closing did not occur prior to the end of August.
Arvidson disagreed and stated that he had never indicated that payment was for only
July and August. On the contrary, this monthly payment was an incentive to Pruitt to
dose the deal as soon as possible. Baird stated that Pruitt was. not prepared to agree to
pay $25,000 per month if closing was put off for a number of months, especially if closing
was postponed for reasons not of Pruitt's making. Arvidson stated that the Council
should consider this issue when it voted on the resolution. Arvidson also indicated that
the form of the agreement before the Council was very simple and could become a real
estate sales contract by striking the last sentence which had been inserted by Pruitt.
Recommend that the agreement be accepted with the deletion of this sentence.
No one else appeared in order to be heard, and the public hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. WILLARD DUNHAM - Trade Board Annual Report Dunham reported
on the activities and successes of the Trade Board over the past 12 months.
Cripps thanked the Trade Board members for their service to the community.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the Cil:y Council of the City of Seward,
Alaska, amending SCC ~ 15.10.140, Definitions, and ~
15.20.070, Land Uses Allowed, regarding kennels.
Swartz moved to introduce proposed Ordinance No. 92-14; the motion was
seconded by Crane. The question was called, and Ordinance No. 92-14 was introduced
and set for public hearing on July 27, 1992, by unanimous vote.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
( CSE155220 J
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City of Seward, Alaska
July 13, 1992
City Council Minutes
Volume 28, Page 114
An Ordinance of the City Council of the City of Seward,
Alaska, amending the city of Seward Zoning Maps to
conform to the Land Use Plan.
Crane moved to introduce proposed Ordinance No. 92-15: the motion was
seconded by Dunham. The question was called, and Ordinance No. 92-15 was
introduced and set for public hearing on July 27,1992, by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Chapter 15.05 of the Seward City Code,
Land Use Planning, to provide for city park facilities
development.
Swartz moved to introduce proposed Ordinance No. 92-16: the motion was
seconded by Dunham. The question was called, and Ordinance No. 92-16 was
introduced and set for public hearing on July 27, 1992, by unanimous vote of the
Council.
B. Ordinances for PubJic Hearing & Enactment None
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, declaring that the annexation of approximately 5,375
acres within the Seward Meridian Valley is in ~e, public
interest and directing the city administration to file an
annexation petition with the Local Boundary Commission.
Cripps noted that there was a motion to approve on the floor, this resolution
having been remanded to the Planning Commission on April 13, 1992.
DUNHAM stated that vall~y behind the proposed harbor at Nash Road was
important to future city growth. She noted that there were no residents living in the
area, and the property was predominantly government-owned. She also noted that the
Council had a responsibility to the citizens of Seward to provide space for the city to
grow. Dunham stated that opposition to this proposal had. come from those living
outside the city limits, but not in the area to be annexed. She added that she could
understand the desire to preserve recreational areas since this was a city recreation area,
too. She noted, however, that borough residents enjoyed facilities and services provided
(CSE155ll1 )
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City of Seward, Alaska
July 13, 1992
City Council Minutes
Volume 28, Page 115
by the tax payers of the city, and the city needed a larger tax base to continue to provide
these facilities and services. She stated that she wished there was a way to separate out
how much the city had spent on each project within the city such as keeping the
Tustumena, acquiring the prison, etc., since these projects had benefitted those outside
the city as well as those living within the city limits.
SWARTZ stated that Seward must look to the future. She added that since almost
everyone in the area, both inside and outside the city limits, depended on the strength
of Seward's economy, itwas reasonable to assume that those things which were good for
the city were also good fOr those living outside the city limits.
The question was called, and Re'sCllution No. 92-044was approved by unanimous
vote.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the disposal by sale of the shiplift and
adjacent property located within the Seward Marine Indus-
trial Center to James T. Pruitt, dba Seward Ship's Chandlery,
contingent upon the approval of three-fifths of the electors
of the city voting at a special election called for t!tat purpose
on August 18, 1992.
Crane moved to approve Resolution No. 92-118; the motion was seconded by
Swartz.
Cripps moved to amend to include the word "lease" in the ballot proposition; the
motion was seconded by Bencardino.
Murphy and Arvidson noted that this was not possible until public hearing was
advertised regarding lease and until terms and conditions of the lease were available in
the office of the Clerk as required by the Code.
CRIPPS stated that he had asked repeatedly that the city conduct good faith
negotiations with Seward Ship's Chandlery with a view towards preserving jobs at SMlC.
He stated that he had no interest of a personal nature in the outcome of this issue except
to preserve these jobs for the community. He stated that his purpose in making the
motion was to put an end to the negotiations and to move forward with the deal.
Cripps withdrew his motion.
Arvidson suggested that the agreement be amended to reflect 22.647 acres of
property now that an exact figure was Jr.nown. He also suggested the deletion of the last
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sentence in the attachment and recommended addressing the $25,000 payment by
amending the agreement to reflect the Council's wishes.
DUNHAM stated that she, too, was frustrated. She stated that the Council had
been talking about this issue for the entire 6 ye(lrs she had been on Council, and she
feared that the $25,000 per month payment would continue forever. She added that she
had been opposed to the $300,000 annual user fee last year and this year and could not
vote to approve payment of the fee for an indefinite period of time. She stated that she
would like to see this issue settled since the alternative was to "shut the thing down".
She added that if the city was going to keep the f~cility in any kind of working order at
all, it must maintain the facility even if it was not being used. Finally, Dunham said that
this important issue would not be settled by the August 18th vote.
Crane asked if it would be possible to get both propositions on the August 18th
ballot if the lease were advertised for public hearing and approved at the next Council
meeting. Murphy stated that she could still meet her advertising deadlines; however, it
might be difficult to have ballots printed in sufficient time to meet absentee voting
requirements. She suggested that the Council authorize her to order two sets of ballots
immediately - one with a proposition authorizing the sale of the facility and one with two
propositions, one for the sale of the facility and one for the lease of same. Then, she
could discard one of the ballots once the Council made its decision as to the lease on July
27th. She also advised the Council that in order for the lease to be considered on July
27th, a signed agreement must be on file in the Clerk's office by Friday, July 17th.
Pruitt suggested that the Council go forward with the option which received the
most votes at the election.
Swartz stated that this was the most miserable thing she had been through during
her various terms in office. She stated that she absolutely refused to see 40 jobs lost
because of this issue.
Bencardino stated that negotiations on the lease could be completed and signed
by Friday if the Council instructed the City Manager and the Attorney to get the job
done. He added that he did not believe the administration had wanted to deal with
Pruitt from the beginning. Bencardino stated that the city knew that Pruitt could not
possibly come up with enough money for the public to seriously consider approving the
purchase.
Arvidson stated that he was sorry that ~e Charter and Code did not allow the
Council to do what it wanted to do tonight. He objected to allegations that he had
somehow not done his job. He stated that he had done exactly what the Council had
instructed him to do, and he reminded everyone that the Council had decided that this
(the sale) was the approach it wanted to take. He stated that if the Council now wished
to do a lease, that was fine; however, he would like clear instructions as to what the
Council wanted to see in the lease.
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Bencardino stated that $25,000 had already been spent negotiating a lease and he
suggested that the city use the one which had been before Council previously. He
suggested leaving the details to the Manager, Clerk and Attorney.
Dunham admitted that the Council had made the decisions as noted by Arvidson,
but she noted that those decisions had been made at the suggestion of others.
"
Crane asked how Pruitt's suggestion that he pay the $25,000 per month user fee
for July and August only would affect the Harbor Budget. Schaefermeyer stated that if
the city went back to the former tariff :rather than sticking with the $25,000 per month
until closing, there would be insufficient revenues to cover maintenance and operating
expenses.
Crane moved to amend the Sales Agreement to include a provision that the
$25,000 per month user fee was to be paid by Pruitt until the time of closing; the
motion was seconded by Cripps and carried unanimously.
Cripps moved to delete the last sentence of the sales agreement; the motion was
seconded by Swartz and carried by unanimous vote.
The question was called, and R~solution No. 92-118 was approved as amended
by unanimous vote.
RECESS:
The meeting was recessed at 8:50 p.m. and reconvened at 9:00 p.m.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, amending the general terminal tariff to provide a
wharfage rate for the shipment of bulk gravel.
Crane moved to approve Resolution No. 92-119: the motion was seconded by
Swartz. The question was called, and Resolution No. 92-119 was approved by
unanimous vote.
12. UNFINISHED BUSINESS None
13. NEW BUSINESS
A. Continuation of the Trade Board through Fiscal Year 1993. Swartz moved
to continue the Trade Board through Fiscal Year 1993; the motion was seconded by
Crane and carried by unanimous vote of the Council.
14. CITY MANAGER REPORTS
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SCHAEFERMEYER reported that the plastic recycling company which had
approached the city regarding a possible plant at the Marine Industrial Center had
selected a site in Kenai for purchase. He noted that the 8O-acre, privately owned parcel
had access to natural gas and a year-round commercial airport, making the site preferable
to the one in Seward.
SCHAEFERMEYER also noted recent discussions with Department of Corrections
officials concerning the possibility of locating some minimum security bed space within
the Spring Creek compound. He stated that a facilities planner would be in town on
Wednesday to explore the proposal in more detail. He noted that, initially, the
Department planned to place mobile home units on site to house the inmates.
Schaefermeyer stated that he had been discussing the possibility of having some funds
transferred to the city under a TORA which would allow the city to procure the trailer
units for Corrections while the Department of Transportation would be responsible for
site work. Schaefermeyer noted that this project would result in reinstating some of the
positions lost due to the downsizing of Wildwood. He also noted that this project might
require some zoning code revisions, and he suggested that the Council might wish to
receive public comment after this idea was more fully developed.
SCHAEFERMEYER noted that campground fee coll~ctions were about $20,000
ahead of last year's collections at this time.
SCHAEFERMEYER stated that WGN service had been restored with the use of
a new satellite. He thanked Cablevision for its assistance in restoring this service.
15. COUNCIL DISCUSSION
DUNHAM stated that this Fourth of July had been the biggest yet. She asked if
the city had ever considered marketing summer boat storage across the Bay and noted
how frustrating it must be to haul boats back and forth from Anchorage all season. She
added that some might find this option preferable to renting a boat slip.
SWARTZ stated that the city had held the door open to the plastics industry
representatives and continued to be receptive to those wanting to add jobs to the city.
She also noted the two parking enforcement officers working in the Harbor this season
and added that it would behoove the city to get into the car parking business directly
rather than contracting this to someone else.
CRANE thanked Fishing Company of Alaska for sponsoring the fireworks display
on the Fourth of July. He also thanked the volunteers as well as members of the Police
and Fire Departments for their work on the Fourth.
BENCARDINOaddressed the parking problem on Seventh Avenue. He
complimented the administration for its parking enforcement in the Small Boat Harbor,
but suggested that the city follow up with a paid parking system which utilized an auto-
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collection system. He stated that if the city properly signed the parking lots and installed
drop boxes, the city would make money and there wowd be less unhappy people.
Bencardino asked the Clerk to schedule discussion and action on a proposed parking lot
on Seventh Avenue for the July 27th meeting. Bencardino also thanked the City
Manager for responding to his request to place "patron parking only" signs along the
Library.
SWARTZ stated that she would like for the Fire Department to bum off the
Seventh Avenue parking area to remove the stubble prior to the camping season each
year in order to avoid the likelihood of fires.
CRIPPS stated that if any member of council was interested in serving on the
AML Board, applications were available. He also noted that .the League had recently
hired a new executive director.
CRIPPS noted that his own schedule for the city was overfull for the coming week
and he needed someone to represent the city on Thursday morning at 8;30 a.m. in
Soldotna for the Akita delegation protocol meeting. He suggested that Willard Dunham
be asked to fill in for him.
CRIPPS asked that Alarm System Monitoring be placed on the July 27th agenda
and noted that he would be recommending that all members of Council be allowed to
discuss and vote on this issue.
16. CITIZENS' DISCUSSION
BOB VALDATTA, 528 Fifth Avenue, suggested that the Council move forward
with a local Port Authority as authorized under HB 352. He also suggested that the city
pursue with the A VTEC Forestry Program the possibility of conducting studies in the area
to be annexed north of town.
EARL SHAW, 1122 Fourth, addressed the alarm system at the Spring Creek
Correctional Center. He stated that SCCC was built with t11e understanding that an
alarm would be installed at the Seward Police Department to monitor the fire alarm
system at the prison. He also stated that the prison administration considered the
building to be the property of the city of Seward under lease to the state. He, therefore,
requested that the Police Department continue to monitor the SCCC alarm.
W AL T SZYWINSKI, 611 Monroe, stated that the trash situation over the Fourth
of July was terrible. He suggested that trash bins contain plastic liners to be emptied
throughout the day by area youth, and he volunteered to coordinate this effort.
MIKE CYNERESKI, 1907 Dora Way, stated that he was concerned about the traffic
on Dora Way. He presented a petition from area residents requesting that a tot lot be
constructed in the area to keep the local children off the streets. Cynereski also
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expressed some concern regarding the downtown trolley stops. He noted that there was
a handicap parking spot as well as a fire plug at the trolley stop located in front of
Gordon's In Home Video. He suggested moving the handicap space to provide a safer
and less congested spot for the trolley. In addition, Cynereski suggested that the city
provide an additional dump station for campers to cut down on the congestion in the
Boat Harbor just south of the Train Depot. Finally, he complained that the long campers
which parked on Fourth Avenue in the angled parking spots were a traffic hazard, and
he asked the city to address this problem.
JIM PRUITT, Maple Street, asked for clarification regarding the lease negotiations.
He asked that the Council direct the City Attorney to meet with his attorney to address
the issues contained in the memo to the Council of two meetings ago. He stated that
several issues in the memorandum had not yet. been addressed. He also stated that
Arvidson had not been making calls to or receiving calls from his attorney, Mr. Baird.
He asked for specific direction from the Council to the attorney to move forward with
this lease. Pruitt stated that another problem which caused frustrations in the
negotiations was that information received from the city was often not accurate. He
further accused Schaefermeyer of instructing Chris Gates to recommend that the Council
not approve the lease submitted to it in June.
SCHAEFERMEYER commellted that at no time did he instruct Gates to take a
position not to recommend the lease. . He stated that this was Gates' decision based on
his opinion that it (the lease) put too much risk in the lap of the city. He also noted that
the city had proceeded with due diligence to locate a contractor qualified to perform a
baseline survey of the property, and the initial report had been received.
JOE COX, 2501 Spruce, stated that he had called a councilmember regarding the
alarm system monitoring and was told that this would be an agenda item. However,
when he called the Chief of Police last week in response to a letter he had received
stating that the city would no longer monitor private alarms, the ~hief had stated that
the Council had not acted to prohibit the administration from taking this action. He
asked if the Council would be addressing this issue prior to the city's threatened action
to discontinue this service.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
CRIPPS stated that the alarm system monitoring would be an agenda item at the
next meeting.
BENCARDINO concurr~d with Szywinski regardillg the trash on. the Fourth of
July. Schaefermeyer stated that Jason McDonald had worked over the holiday weekend,
but it was difficult to access the receptacles on ,Fourth Avenue during the celebration.
He stated that the city had already addressed this for next year and was working with
the Chamber to resolve this situation.
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18.
ADJOURNMENT
The meeting was adjourned at 9:45 p.m., and after a short recess, the Council
reconvened in Executive Session to discuss IBEW contract negotiation strategy and
personnel evaluations.
( . / /~ / r;;;
& &4 ~-c;ee;t <. . ,P-t
Donald W. Cripps
Mayor
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'-"'..........
4...' ~ _
1. CALL TO ORDER
The July 27,1992, regular meeting of the Seward City Council was called to order
at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
Dave Crane
Karen A. Swartz
James Krasnansky (excused)
Dale White (excused)
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4. APPROVAL OF MINUTES
Crane moved to approve the July 13,1992, regular meeting minutes as presented;
the motion was seconded by Bencar~o and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to ~pprove the Regular Meeting Agenda as presented; the motion
was seconded by Swartz. .
Swartz moved to meet in executive session immediately following the close of
regular business to discuss the Larry Richard case; the motion was seconded by
Dunham and carried by unanimous vote.
Schaefermeyer requested the deletion of "Security Alarm Monitoring" from
Unfinished Business. He stated that this item would be placed on the August 10th
agenda when a full Council was expected to be present. Schaefermeyer asked that those
citizens who had come to the meeting to address this issue be allowed to speak as
requested. Cripps noted that two of the five members of Council present had a potential
Conflict of Interest, and this could preclude action on the Alarm Monitoring issue.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the July 21, 1992, assembly meeting.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
DOT BARDARSON, Nash Road, read a prepared statement objecting to the newly
increased parking fines for violations in the Boat Harbor.
LINNE BARDARSON, Nash Road, read a prepared statement objecting to the
newly increased parking fines for violations in the Boat Harbor.
DON HOLLAND, 320 Sixth Avenue, spoke in opposition to the newly increased
parking fines for violations in the Boat Harbor. He objected to any fines until a solution
was developed. He also suggested be~er signage for Harbor parking lots.
8. APPROVAL OF CONSENT CALENDAR
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SWARTZ moved to approve the Consent Calendar as presented; the motion was
seconded by Dunham and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-122, authorizing the destruction of certain public records,
was approved;
B. Resolution No. 92-125, approving a change order to the Homeland
Enterprises contract for electrical work, was approved;
C. Resolution No. 92-126, approving an accounting software maintenance
contract, was approved;
D. July 1992 invoice from Riddell, Williams, et.al, for legal services totalling
$49.95, was approved for payment;
E. Invoice for legal services from Jamin, Ebell, et.al. - City vs. Exxon Companies
- was approved for payment;
F. Legal Services Expenditures Report, FY 1992, was noted for information;
G.
Legal Services Budget Amendments, FY 1993, were approved as requested;
H. Prison budget revisions were approved as requested;
1. Request for preliminary approval to proceed with public land platting in the
Cliff Addition was approved;
J. Bradley Lake energy production informational memorandum was noted for
information; and
K. Proclamation designating August 3-8, 1992, as Obihiro-Ko, Wings of the
World, Friendship Exchange, was noted for information.
9. PUBLIC HEARINGS
A. Proposed lease of SMIC propertr, syncrolift. dock and other improvements
to Seward Ship's Drydock. 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.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. LANI LOCKWOOD - Introduction of Exchange Students. Lockwood
introduced the four Japanese Exchange students Fumiko Nodero, Emi Hasegawa, Shin-ya
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Sugamura and Shuichi Watanabe. Each student gave a brief presentation to the Council.
Lockwood also outlined the history of the Student Exchange program with Obihiro and
noted that 1993 would be the 25th anniversary of the sister city program and the 20th
anniversary of the student exchange program.
B. LARRY JOHNSON. Downtown Merchants Association - Fourth Avenue
Parking. Johnson asked Council for a three-hour parking limit in the downtown parking
area. He stated that now that a public parking lot had been constructed adjacent to the
Teen Center, there was no reason not to limit street-side parking. Dunham stated that
any downtown parking problem was, caused in part by owners of businesses and
employees who parked on the street rather than in available off-street parking. She
stated that it would be nice if the business owners could police themselves and thus
avoid the need for formal parking restrictions. Martin agreed, but stated that limiting the
parking on the street would assure that this did not continue. Martin stated that the
Downtown Merchants Association would be working with prison officials to develop
some positive, welcoming signs for the downtown parking lot in an attempt to promote
its use by visitors to the community.
The Council concurred that parking issues in the Boat Harbor and downtown
needed to be addressed. The City Manager was instructed to order and install street
signs in the downtown core and in the Boat Harbor which would limit street-side
parking to two hours.
C. LARRY KINCHELOE, Spring Creek Correctional Center Superintendent-
Minimum Security Facility Addition. Kincheloe stated that the proposed minimum
security component at the prison would help pl'ovide continued maintenance for the
correctional facility and prison vehicles. He noted that in winter these inmates would
provide a work force to remove snow from parking lots and other prison areas, and
during the rest of the year, they would provide grounds-keeping for the facility. He
stated that the addition of this component would provide more jobs for the prison.
Kincheloe noted that initially the program would house 20 minimum custody inmates
and would provide approximately 4 full time jobs. He stated that construction would be
normative (not concrete and steel), but would be fenced. Kincheloe stressed that these
inmates could increase the life of the facility and help protect the investment made by
the city and the state.
Cripps noted that during the public hearings prior to the construction of Spring
Creek Correctional Center, there was a recurring sentiment expressed by the citizens of
Seward that they were opposed to any prison except a plaximum security one. Swartz
stated that she would be concerned if the "normative" consl!uction was such that it
would be easy for one of the inmates to walk away from the prison. Kincheloe stated
that, to this point, Spring Creek had not had any "walk aways" or escapes, but there was
no way he could guarantee that this would not occur at some time in the future. In
response to a question from Bencarclin.o, Kincheloe stated that his next step was to take
the feelings of the community back to the department. Dunham stated that she had
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testified strongly in favor of a maximum prison from the beginning. She added that, as
long as this addition did not cause over-crowding at the prison, she would favor it.
The Clerk was instructed to schedule a public hearing regarding this issue on
August 10, 1992.
RECESS:
The meeting was recessed at 8:45 p.m. and reconvened at 8:55 p.m.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introductio.n
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the city of Seward,
Alaska, amending ~ 2.10.055 regarding the submission of
agenda materials to the City Clerk.
Crane moved to introduce proposed Ordinance No. 92-17 and set it for public
hearing on August 10, 1992; the motion was seconded by Dunham and carried by
unanimous vote.
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code ~ 15.10.140,Definitions,
and Table 15.20.070,Land Uses Allowed, Regarding Kennels.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
Swartz moved to enact Ordinance No. 92-14; the motion was seconded by
Bencardino and carried by unanimous vote.
2. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending the Seward Zoning Maps.
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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.
Dunham moved to enact Ordinance No. 92-15: the motion was seconded by
Bencardino and carried by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code Chapter 15.05, Land
Use Planning.
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.
Crane moved to enact Ordinance No. 92-16: the motion was seconded by Swartz
and carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution eJ;ltitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving an agreement with Seward Ship's
Drydock, Inc., for the lease of 22.647 acres of real property
located within the Seward Ma.rine Industrial Center,
including the syncrolift platform, the adjacent dock and
associated rails and transfer system and calling a special
election to seek voter approval of the disposal of the shiplift
facility.
Crane moved to approve Resolution No. 92-121: the motion was seconded by
Swartz.
Arvidson noted a. minor wording change to the language in the lease and stated
that he and Baird (Pruitt's attorney) had agreed to the wording change. Arvidson
thanked Baird for his efforts in drafting this lease in time to meet the city's advertising
deadlines.
The question was called, and Resolution No. 92-121 was approved with four YES
votes and Crane voting NO.
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2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a change order to the Land Field Services
contract for acquisition of easements for transmission line
project Phase lB.
Crane moved to ,approve Resolution No. 92-123; the motion was seconded by
Dunham and carried by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving payment to Chugach Electric Association
for emergency work performed under a mutual assistance
agreement to repair the transmission line during power
outages.
Swartz moved to approve Resolution No. 92-124; the motion was seconded by
Crane and carried by unanimous vote.
4. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving an aml?nded professional services agree-
ment with CH2M hill for Lowell Point Lagoon restoration.
Crane moved to approve Resolution No. 92-127; the motion was seconded by
Dunham and carried by unanimous vote.
5. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, rejecting all bids submitted and authorizing the
administration to negotiate with Cal Worthington Ford for
the purchase of a 2-Door, 4-Wheel Drive Vehicle for the
Electric Department
Crane moved to approve Resolution No. 92-128; the motion was seconded by
Swartz and carried by unanimous vote. Cripps noted that this action on the part of the
city would result in less cost to the city.
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6. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing a new contract with America North for
the Lowell Point Lagoon project.
Swartz moved to approve Resolution No. 92-129: the motion was seconded by
Crane and carried by unanimous vote.
12. UNFINISHED BUSINESS
A. Security Alarm Monitoring. DELETED from the agenda. This item will
appear on the August to, 1992, agenda.
JIM PRUITT, Maple Street, recommended that the Police continue to monitor the
alarms. He stated that he did not mind paying for the service, but would like to have
the money and the service itself remain in Seward.
13. NEW BUSINESS
A. Proposed Seventh Avenue Parking Lot. Schaefermeyer noted that the
administration had prepared a staff memorandum including a recommendation that the
lot proposed for parking by Be,ncardino be retained for public open space. Cripps and
Crane concurred with the recommendation of the administration. Dunham stated that
she also felt the administration should explore other parking options in the Boat Harbor.
Bencardino stated that the administration's contention that it would cost $30,000
to create a parking lot was nothing more than a smoke screen. He stated that Public
Works Superintendent Ainsworth could complete this project in 2 days. He noted that
the parking lot could be made attractive by planting trees around its perimeter. He
stated that providing visitor parking was a serious problem that no one seemed willing
to face.
Schaefermeyer stated that this administration had done more to improve parking
in the boat harbor than any other administration. He stated that he had personally
worked very hard to free state bond money to allow the city to improve the parking lots,
including paving and striping them, to maximize the space available in the harbor. He
noted that boat storage had also been improved. He also noted that the city was
attempting to remove all boat storage from the Small Boat Harbor, but warned that this
was not an easy task since those remaining boats were mostly derelict, seized or
abandoned vessels, and acquiring the right to dispose of them was .a time consuming
affair. Schaefermeyer stated that the city wall a,ttempting to move these vessels to a
storage yard across Ute bay where they would crea~e less problems.
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Schaefermeyer further noted that he had been pursuing federal and state funding
for a new boat launch ramp but had not yet been successful. In addition, the city was
planning to seek authority to relocate overhead power lines on Port Road to provide
access to private property with the boat lift in an attempt to encourage privatization of
the boat storage business.
The Clerk was instructed to schedule a work session on Tuesday, August 4, 1992,
to discuss parking issues city-wide.
:."
14. CITY MANAGER REPORTS
SCHAEFERMEYER stated that iince the last meeting, the city staff had met with
representatives of Young & Morgan and Chugach Alaska Corporation regarding their
efforts to put together a business arrangement and acquire financing to begin operating
the Chugach Forest Products Mill once again. '
SCHAEFERMEYER stated that last week the city had heard positive statements
from the Alaska Railroad Board and management regarding renewal of the coal
agreements between Alaska principals and Korea. Unfortunately, things did not look
very promising at this time. He stated that KEPCO had advised Suneel that it must
receive a $4 per ton decrease in the price of coal in order to enter into a new contract.
In addition, KEPCO contended that they could only increase the amount of coal it
purchased if it received an additional $1.73 per ton reduction in price. Schaefermeyer
stated that the parties had not yet solved the price problem.
15. COUNCIL DISCUSSION
DUNHAM commented on a recent newspaper report regarding a threat by certain
charter boat companies to boycott the Silver Salmon Derby because of parking issues in
the Small Boat Harbor. She stated that while the city must address the parking problem,
she would not listen to those making threats.
CRANE recommended that ttle administration write to the Department of
Transportation with a request that the state repave the Seward Highway from Mile 0 to
Mile 3. He thanked those who had voiced concerns about problems in the community
and stated that he hoped everyone would continue to work on the parking problems and
other issues before the community.
BENCARDINO agreed with Crane that something must be done about parking
and that it should be a top priority of the city.
I SWARTZ asked for a status report on the search for an attorney. Murphy stated
that the ads would be published within the next week with a deadline for submission of
proposals and/or resumes set for September 15th.
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CRIPPS stated that it was significant that the four Seward students going to Japan
had raised in excess of $4,000 to fund their trip to Japan rather than asking the city for
a handout. He commended the students and the Exchange Program.
16. CITIZENS' DISCUSSION
JUDI ANDRIANOFF, 207 Bear Drive, stated that the parking problem was a
wonderful problem to have. She stated that signage for the downtown parking lot was
not adequate and suggested a large banner welcoming visitors to town and directing
them to the parking lot. She also stated that she was not comfortable with the idea of
giving up the ballfield for parking. She stated that she objected to giving up something
that belonged to the community in order tp relieve a parking problem. She added that
she was not convinced that softball could not be revived in Seward.
PAUL DIENER, 211 Benson, stated that there was only one place along the
waterfront with green grass, spruce trees and flowers, and this made an ideal place for
a city park. He reminded the Council that there was no place for local citizens to enjoy
the beach and he recommended that the Council give this real thought before destroying
this green area which had been recommended as a parking lot. Diener stated that as
long as the city continued to s~crifice park lands for parking, no one in the private sector
would come forward to provide priyate paid parking. He stated that the city must draw
the line somewhere and make the private sector provide for the parking problem they
had created.
CHRIS GARDNER, Salmon Creek Road, stated that he had spent 8-1/2 years
working at the Small Boat Harbor and had worked n~erous Salmon Derbies. He stated
that the boat launch ramp was the mos~ congested area in the Harbor and if the city put
parking for boat trailers too far from the boat launch ramp, there would be even more
congestion in this area.
W AL T SZYWINSKI, 611 Monroe, stated that the state compound for gravel and
trucks would make a good parking area.
17. COUNCIL & ADMINISTRATION RES;PONSE TO CITIZENS' COMMENTS
SCHAEFERMEYER stated that he had discussed repaving the Seward Highway
with Kit Duke in April and had been informed that, at that time, it was included in the
state plan for 1993. He added, however, that he did not know if that was still the case,
and he stated that he would initiate a dialogue wjtP. the ne'Y director of the department.
With respect to Szywinski's comments, he stated that he had asked the state to consider
relocating this facility some years ago so that this property could be used for some other
public purpose, and the state did intend to proceed with the relocation when funds were
available.
18.
ADJOURNMENT
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The meeting was adjourned at 10:10 p.m., and after a short recess, the Council
reconvened in executive session to discuss the Richard Case.
~~~!' C~L-
Donald W. Cripps
Mayor
(Cit13~1A L :. ~
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August 10, 1992
City Council Minutes
Volume 28, Page 131
1. CALL TO ORDER
I
The August 10, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Donald W. Cripps.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Donald W. Cripps, presiding, and
Louis A. Bencardino
Beverly Dunham
Karen A. Swartz
Dave Crane
James Krasnansky
Dale White
comprising a quorum of the Councilj and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Patricia Jones, Deputy City Clerk
I
4a.
APPROVAL OF MINUTES
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Swartz moved, to . apprQv~, the July 27, 1992; regular '. meeting minutes as
presented; the motion was seconded by Bencard4to and carried by unanimous vote.
4b. SPECIAL PRESENTATIONS
A. Certificate of Appreciation - Lani Lockwood. Mayor Cripps presented Lani
Lockwood with a certificate of appreciation and a plaque for her volunteer work with the
Student Exchange Program and the Wings of the World Program with Seward's Sister
City, Obihiro, Japan. Lockwood thanked Cripps and the city for the opportunity to work
with the Sister City Programs. She stated that she had enjoyed every minute during the
past week when she participated in the Wings of the World Program. She noted that
Obihiro had sent 30 children and seven 'chaperones to Seward for a friendship exchange
with various home-stay families as part of the Wings of the World Program in celebration
of the l10th anniversary of the founding of Obihiro.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda; the motion was
seconded by White.
Krasnansky moved to meet in e"ecutive sessiQn immediately following the close
of regular business to discuss the Richard litigation; the motion was seconded by White
and carried by unanimous vote.
The question was called, and the Regular Meeting Agenda was approved as
amended by unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall gave a verbal report
of the August 4, 1992, assembly meeting.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
MICHAEL MEEHAN, 708 Fifth Avenue, asked the Council to consider his request
for an incentive lease to operate the Meehan By-Products fish meal plant. He noted that
he had spent over $100 per week to correct the odor generated by the plant. He stated
that, in the near future, he planned to install a refrigeration system. He thanked Icicle
Seafoods for the opportunity to move forward with his business.
Bencardino asked when the odor would be taken care of. Meehan stated that the
company was currently working to control the problem. He stated that the airflow
through the plant had been doubled since last saturday.
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8.
APPROVAL OF CONSENT CALENDAR
Crane moved to approve the Consent Calendar as presented; the motion was
seconded by Krasnansky and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-130, accepting a $300,000 grant for B Street Dock design
and engineering, was approved;
B. Resolution No. 92-134, approving the purchase of a pick-up truck for the
Harbor Department, was approved;
C. Resolution No. 92-135, awarding a contract to METCO, Inc., to provide
winter street sand, was approved;
D. Election boards for the 08/18/92 special election were appointed; and
E. Seward General Hospital's financial report for the quarter ending June 30,
1992 was approved.
9. PUBLIC HEARINGS
A. FY 92-93 agreement with the Marine Highway System for preferential use
of the Fourth Avenue Dock and lease of the Railroad Depot building. 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.
B. Proposed minimum security component addition to Spring Creek
Correctional Center (SCCC). Notice of public hearing as posted and published as
required by law was noted, and the public hearing was opened.
BOB VALDATTA, 528 Fifth Avenue, spoke in favor of the minimum security
addition to SCCc.
COLLEEN EWERT, Superintendent of SCCC, 1104 Harbor Lights Apartments,
stated Kincheloe had been unable to attend this meeting because of a prior commitment.
She reported that the State Department of Corrections was exploring the feasibility of
adding a minimum security component at SCCc. She stated that there was a need to
allow minimum security inmates to maintain the grounds, vehicles, buildings and
equipment at SCCC in an effort to keep up with the preventive maintenance program
which would, in turn, protect the state's and city's investments in SCCc. She added that
this program would also provide pre-release training to help develop work skills of the
inmates. She stated that the state lacked suffident bed space, and development of this
facility would help mitigate against early release of prisoners.
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JAMES PRUITT, Maple Street, spoke in support of the minimum security facility
at SCCc. He added that this seemed to be a worthy pilot program as long as it was
under a strictly controlled system. He stated that this was a good opportunity for
reinstatement of some local workers who were recently laid off.
BRUCE SIEMINSKI, 213 Benson, spoke in favor of the facility. He stated that the
Downtown Merchants Association also favored the addition of the facility.
No one else appeared in order to be heard, and the public hearing was closed.
10. PRESENT A nONS WITH PRIOR NOTICE ONLY
A. Kenneth D. Jensen, representing Alcan Electrical and Engineering
Company - Presentation regarding Alcan's qualifications as a bidder on the Lawing to
Ft. Raymond Transmission Line project. Canceled at the request of Kenneth D. Jensen.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code Title 3, Personnel,
creating a definitions section and defining term employees.
White moved to introduc~ proposed Ordinance No. 92-18 and set it for public
hearing on August 24, 1992; the motion was seconded by Swartz.
Krasnansky asked how this code provision would affect hiring, such as the
recently proposed position in the Community Development Department.
Schaefermeyer replied that the administration was authorized to hire personnel
within authorized levels and funds provided in the budget. He stated that he had the
authority, as stated in the existing code, to hire temporary help if funds were budgeted.
He noted that term employees had been used in the past for the SMIC development
project.
The question was called, and Ordinance No. 92-18 was introduced by unanimous
vote.
B. Ordinances for J.>ublic Hearing & Enactment
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1. Copies having been made available to the public, Cripps noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code fi 2.10.055 regarding the
submission of agenda materials to the city clerk.
Notice of public hearings 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.
Krasnansky moved to enact Ordinance 92-17; the motion was seconded by Crane
and carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving the lease of the Railroad Depot Building
and preferential use of the Fourth Avenue Dock by the state
of Alaska Marine Highway System.
Crane moved to approve Resolution No. 92-131; the motion was seconded by
Dunham and carried by unanimous vQte.
2. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a loan agreement for the Lowell Point
Sewage Lagoon.
Swartz moved to approve Resolution No. 92-132; the motion was seconded by
Dunham and carried by unanimous vote.
3. Copies having been made available to the public, Cripps noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a contract with Hart-Crowser, Inc., for the
removal and disposal of underground storage tanks located
in the city public works yard.
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Krasnansky moved to approve Resolution No. 92-133: the motion was seconded
by Swartz and carried by unanimous vote.
12. UNFINISHED BUSINESS
A. Security Alarm Monitoring. White moved to direct the administration to
cease operation of the alarm system monitoring provided by the Police Department
dispatchers as of September 1, 1992; the motion was seconded by Krasnansky.
Councilmembers Bencardino and Crane declared conflicts of interest since their
businesses would be required to pay for the service if it were turned over to private
business.
Mayor Cripps ruled that Bencardino and Crane could participate in the
discussion since this service was provided by the city at no charge. He stated that no
financial benefit was derived by either person from this service. Dunham agreed
stating that this was no different than any other utility provided by the city. Swartz
also agreed with the ruling of the Chair.
Cripps stated that there were approximately 25 businesses with security alarms
being monitored by the Police Department. He noted that the proposal of the city was
to contract the business out to a private concern.
White expressed his concern regarding increased response time if a private firm
assumed alarm monitoring. He stated that an additional three minutes of response time
could be critical in a fire.
Swartz stated that it was important to have a system in place that could give
warning in case of fire.
Bencardino stated that, as the former police chief, he was not so concerned with
liability, but his main concern was that dispatch had become crowded with various units
since the users were not required to usesysten)s that were compatible with the city
system. He also stated that he had not been concerned over .the $35,000 cost to purchase
a new system. He agreed that it was important to provide a quick response. He voiced
his support of local privatization of the alarm system monitoring business. Cripps
concurred.
Krasnansky stated that the alarm system monitoring should be handled by private
enterprise. He noted that, since Chief Walker made a r~ommendatioJl to remove the
security alarms from the police department, he would abide by that decision. He added
that he was concerned with the liability of setting up custom-made equipment without
any warranty. He noted that it was mQre cost effective to privatize the business.
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Crane stated that he had talked to Chief Walker who stated that his main concern
was liability. Crane stated that liability would still be an issue whether or not the city
continued to provide this service. Crane stated that his main concern was the cost of
bringing the equipment on line. He noted that the cost should be paid by users of the
alarms, not the entire community. He .discussed the need for the public to know how
the fee system would be set up to coll~::t for the service.
The question was called and the motion failed with five NO votes and White
and Krasnansky voting"yes.
13. NEW BUSINESS
A. Request by Meehan By-Products, Inc.. for the ci\y to grant an incentive
lease for the eastern half of Lot 3. Block 2. Marina Subdivision. for continued operation
of the meal plant.
Crane moved to authorize the city to negotiate an incentive lease with Meehan
By-Products, Inc.; the motion was seconded by Dunham.
Crane asked how much income was generated annually from the city's current
lease with Icicle Seafoods.
Schaefermeyer replied that the income from the portion of the lease currently
under discussion was about $20,216 per year. He noted that about $15,000 had been paid
in 1992.
White stated that, if the city kept leasing land at no cost, no income would be
generated. However, jobs were created by increasing industry in the community. He
noted that he would favor a partial forgiveness of lease payments rather than complete
forgiveness.
Krasnansky stated that the city was not in a position to grant incentive leases at
this time. He reminded the Council that this issue was discussed at budget time and a
decision had been made to eliminate further lease incentives at this time.
Schaefermeyer stated that, in the past, when an incentive lease was given, certain
requirements such as a certain level of employment, investment in the property and
improvements to the property had to be met by the lessee in return for forgiveness of
rents for a period of time. He noted that, in this case, the property had already been
developed but building improvements and odor reduction and control were being
planned by Meehan By-Products. He stated that Meehan intended to build up the
business and employ additional help, expand production and invest additional capital
into the business.
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Bencardino asked if Meehan was given the option to purchase the property.
Schaefermeyer replied that this had not been discussed. He noted that, during the
budget work sessions, sale of land to a number of local businesses was discussed. He
stated that there were advantages and disadvantages to disposing of city-owned
commercial property by sale.
Bencardino stated that he was in favor of selling the land, which could, in turn,
increase the tax base in the community. He noted that he was also concerned with
liability and environmental issues concerning the land.
Swartz stated that this issue needed to be discussed more thoroughly before
reaching a decision. Dunham and Crane concurred.
Schaefermeyer replied that it seemed to be Council's wish to pursue discussions
on leases in general in the harbor area. He asked for direction on how to proceed with
this issue.
Cripps stated that he preferred dealing with the current issue at hand at this time.
White suggested granting a graduated lease incentive where the company would
pay a larger percentage each year it was in operation until the full lease rate was being
paid.
Crane suggested giving Meehan an incentive for three years instead of five.
Schaefermeyer reminded the council that, once a lease agreement was reached, it
would come before the council in the form of a resolution and would also be scheduled
for public hearing. He noted that the decision tonight was to authorize negotiations for
a lease.
Bencardino moved to amend to include possible sale of the property to Meehan
By-Products, Inc; the motion was seconded by Dunham and carried by unanimous vote.
Crane stated that it would be in the community's b.est interest to direct the
administration to present cases and facts on the differences between incentive leases,
normal leases and sales of property in different areas of the community. He noted that
this would enable the council to mak,e a knowledgeable determination in the future
concerning these issues. He added that he would also like to know what the disadvan-
tages and advantages were in leasing property versus selling property.
Krasnansky moved to postpone action until the August 24, 1992 meeting; the
motion was seconded by Crane and carried with six YES votes and Cripps voting NO.
14. CITY MANAGER REPORTS
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SCHAEFERMEYER stated that he had received a notice from the State
Department of Revenue regarding the state's intention to purchase Spring Creek
Correctional Center. He noted that the intent was to effectuate the transfer by September
28th, and a considerable amount of work needed to be completed on the part of both the
city and the state prior to that date. He noted that the state planned to sell additional
obligations to raise the capital to retirc the debt with Ford Corporation which would
result in the state's ownership of the facility. He stated that the first goal of the city was
to condude all pending construction items: window replacement, drainage studies, grease
traps and other small items. He also planned to develop a budget.in order to assure the
public that no public money had gone into the development of SCCc. He added that
council action would be needed at a later date.
SCHAEFERMEYER reminded cveryone of the special election to be held on
August 18th and encouraged the public to participate.
15. COUNCIL DISCUSSION
BENCARDINO stated that the boardwalk was being overgrown by alders and
they needed to be cut back so the public could enjoy a view of the lagoon. He noted
that there was a large hole on Seventh Avenue that needed to be fixed.
WHITE stated that he had noticed a new boat ramp in the harbor since his return
from fishing. He asked about the status of the environmental baseline study at SMlC.
Schaefermeyer replied that the study had been completed. WHITE also reminded
everyone to vote on August 18th.
CRANE thanked Mayor Cripps, Lani Lockwood and Patsy Jones for their
involvement in the Wings of the World Program. He asked whether or not Third
Avenue would be improved this year. Schaefermeyer stated that, this fall, approximately
two miles of the road would be overlaid with asphalt beginning at Bay City Motors and
continuing north.
DUNHAM stated that parking during the Salmon Derby seemed to work out well.
She noted that it was important that the details concerning the transfer of the SCCC
facility be understood by the city and state.
KRASNANSKY also noted that he had not heard of any more problems with
parking.
SWARTZ wished good fishing to all of the Salmon Derby participants. She
thanked everyone for coming to Seward. She stated that she had received compliments
on the condition of the parks in Seward. She suggested cutting the alders along the road
to SMlC to afford the public a view of Seward from across the bay.
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In answer to a question from BENCARDINO, Diener stated that the damaged
concrete sidewalks downtown would be repaired by August 17th. BENCARDINO noted
that he had received considerable public comment to retain the gravel ballfield and not
turn it into a permanent parking lot.
CRIPPS stated that he had received inquiries from a number of people about the
rifle range outside of SCCc. He noted that he would like to see the range upgraded and
made available to more people. SCHAEFERMEYER stated that the range was on
property currently leased by the State and the public was not granted access to use the
range.
16. CITIZENS' DISCUSSION
JIM PRUITT, Maple Street, updated the Council on the status of work at Seward
Ship's Chandlery, noting that business was picking up. He reported that the company
had received the contract on the M/V Bartlett. He added that he would be lobbying to
perform work on the other ferries. He stated that Seward Ship's was excluded from
bidding last year because the vessels would be required to cross the gulf in the winter.
He asked the Council to help in his effort in bidding on these projects. He also stated
that he was happy to see the fish reduction plant back in service and added employment
of Seward citizens. He noted that it was important for the town to support local
businesses.
MICHAEL YANEZ, 1901 Dora Way, spoke about accusations made against him
by a councilmember earlier in the meeting and about how that councilmember had
accused him and the city administration of incorporating lies into a memo submitted to
the council on alarm system monitoring. He stated that a member of the Council should
not be allowed to downgrade the professional reputations .of the administration in a
public meeting. He explained that his recollection of events from the previous two years
were different from that of the councilmember on the alarm monitoring issue. He added
that the City Administration did not resort to lies in conducting business of the city. He
noted that the administration offered the Council every opportunity to work together in
an honest, straightforward manner. Yanez expressed anger and resentment of the public
accusation that he had personally and professionally lied to the Council. He stated that
the city deserved a higher level of statesmanship.
17. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SWARTZ asked about the .Ketchikan shipyard and its work on ferry vessels.
Pruitt answered that it was possible to bid on the project and perform the work at the
Ketchikan facility.
18. ADJOURNMENT
The meeting was adjourned at 9:10 p.m. and the Council convened in executive
session shortly thereafter todiscus.s the possible Richard litigation.
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<--. .u/ / cO
..' ~ a L->-/-""t
Donald W. Cripps
Mayor
City Council Minutes
Volume 28, Page 141
1. CALL TO ORDER
The August 19, 1992, special meeting of the Seward City Council was called to
order at 4:00 p.m. by Vice Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Swartz led the pledge of allegiance to the flag.
3.
ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis Bencardino Dave Crane
James Krasnansky Karen A. Swartz
Dale White
comprising a quorum of the Council; and
Linda S. Murphy, City Clerk
ABSENT was:
Donald W. Cripps (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Swartz and carried without objectidn.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
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6. SPECIAL ITEMS
A. Resolution No. 92-136. Copies having been made available to the public,
Dunham noted by title only a propose\! resolution entitled:
1
A Resolution of the CitY Council of the City of Seward,
Alaska, approving a franchise for garbage and refuse
collection and disposal subject to approval of the voters at
the October 6, 1992, regular city election.
Krasnansky moved to approve Resolution No. 92-136; the motion was seconded
by Swartz.
Murphy recommended that the Council postpone action on this resolution. She
stated that the attorney's office had been closed as a result of the eruption of Mt. Spurr
and the city had been unable to get a final draft of the franchise agreement for review
by the Council.
Krasnansky moved to postpone action on the resolution until the August 24,
1992, meeting of the Council; the motion was seconded by Swartz and carried by
unanimous vote.
A. Canvass of 08/18/92 election. The Clerk noted that the city had conducted
a special election on Tuesday, August 18, 1992, to seek voter approval of two proposi-
tions: one to sell the shiplift and adjacent property to James T. Pruitt and the other to
lease the shiplift and adjacent property to Seward Ship's Drydock, Inc. Murphy noted
that she had displayed the precinct registers, questioned voter and absentee voter logs
and the unofficial results of the election. She further noted that the precinct boards had
counted the ballots of 459 voters who were properly registered in time for the election
and whose names appeared on the precinct registers. Thirteen voters had been required
to cast questioned ballots because their names did not appear on the precinct registers.
Murphy distributed a list bearing the names of the twenty-two voters who had
requested absentee ballots. She noted that all 22 ballots had been returned to the city in
time to be considered by the Canvass Board. Murphy r~commended that the Board
count the 22 ballots, all of which were cast by qualified electors of the city and were
properly witnessed as required by law. She recommended that the Canvass Board count
the ballots cast by the following voters:
PRECINCT NO.1
PRECINCT NO.2
Bernard Bjork
Ruth O. Bomstead
Perry N. Buchanan
Hugh W. Darling
Duane H. Harp
Dorene Lorenz .
Herman Nelsen
Richard F. Seigel
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Iris A. Darling
Virginia H. Darling
Donna Duby
William E. Eckenberg
Alta Inez Gieseking
Amy E. Hitt
Christine E. Hopkins
Arlita S. Hribernick
Dale Lindsey
Catherine McMillan
William J. Romberg
Arlene D. Wiley
D. E. Wood
Victoria J. Seigel
Crane moved to accept the Clerk's recommendation to count the 22 absentee
ballots; the motion was seconded by Krasnansky and carried unanimously.
As Dunham read the names on the absentee ballot envelopes, Krasnansky opened
the outer envelopes, removed the inner envelopes and set them aside to be opened later
in the meeting.
Murphy distributed the list of persons casting questioned ballots on election day.
She stated that 13 questioned ballots had been cast by voters whose names did not
appear on the precinct registration lists. She recommended that the Canvass Board reject
8 of the questioned ballots as follows:
PRECINCT NO.1
Jamie Atherton
Primo Batik
Cindy Deshner
Sheila Lanier
James J. Stenzel
Registered 07/3V92 - Not in time for this election
Registered 08/07/92 - Not in time for this election
Registered in Bear Creek
Registered 07/21/92 - Not in time for this election
No voter history for this name or social security number;
however, Stenzel gave a voter number which is actually
assigned to a Moose Pass voter named Patrick Jones
Registered 07/20/92 - Not in time for this election
Registered in Kotzebue
Registered in Bear Creek
Vernon L. Tolson
Carl Warner
David E. Williams
Krasnansky moved to accept the Clerk's recommendation to reject the
eightballots; the motion was seconded by Bencardino and carried unanimously.
Murphy put the rejected ballots aside for safekeeping.
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Murphy stated that 5 of the questioned ballots had been cast by qualified voters
of the city, and she recommended that the board count the ballots cast by the following:
PRECINCT NO.1
M. Ivory VanHorn Voted in Precinct Ii lives in and is registered in Precinct 2
PRECINCT NO.2
Sherry Cruse Registered in Precinct 1
Peter A. Ronne Registered in Precinct 1
Kelly Seely Properly registered; left off precinct register because of
computer error
Raymond VanZint Properly registered; left off precinct register because of
computer error
Krasnansky moved to accept the Clerk's recommendation to count the five
questioned ballots; the motion was seconded by Bencardino and carried by unanimous
vote.
As Dunham read the nam~s on the questioned ballot envelopes, Krasnansky
opened the outer envelopes, removed the inner envelopes and put them aside with the
waiting absentee envelopes. The inner envelopes were then shuffled and opened by
Dunham. The ballots were removed and read aloud by Dunham as Krasnansky observed
and as city staff members Annie Martin and Patricia Jones conducted the tally. Murphy
read the results of the combined totals as follows:
Precinct 1 Precinct 2 Abs/Ouest. Total
PROPOSITION NO.1
Sale of Shiplift
YES
NO
88
175
61
131
12
15
161
321
PROPOSITION NO.2
Lease of Shiplift
YES
NO
104
153
71
122
14
13
189
288
TOTAL VOTES CAST:
TOTAL VOTES COUNTED:
274
265
198
194
22/13
22/5
494
486
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Murphy stated that any 10 qualified voters of the city could protest the election
by filing a written complaint with the City Clerk prior to 5:00 p.m., Monday, August 24,
1992. She added that if no such protest was filed, the City Council would certify the
election as valid and declare the results official at the August 24, 1992, regular Council
meeting.
NOTE:
White arrived at 4:14 p.m.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
DUNHAM read aloud a letter of resignation submitted by Mayor Cripps.
BENCARDINO stated that he regretted the action taken by Cripps and that he
wished Cripps had discussed his plans to resign prior to taking such a drastic step.
CRANE stated that he, too, regretted this action and wished things could have
worked out differently.
WHITE stated that he was disappointed that Cripps had chosen to resign, adding
that those whose views Cripps represented may no longer have a voice on Council.
SWARTZ stated that this resignation was a real loss to the community and added
that this loss would be realized more fully as time passed. She stated that Cripps had
brought dignity to the office of Mayor and would be missed.
KRASNANSKY stated that he could understand the Mayor's reasons for resigning;
however, he regretted that he had made this decision.
DUNHAM stated that she sympathized with Cripps and would be glad to see an
end to her term on the Council. She stated that many of the Council's problems could
be attributed to the Open Meetings act which required that all public business, including
the "airing of dirty linen" be done in the public eye. Dunham stated that the public
would be better served if the Council could caucus in private to work out differences.
9. CITIZENS' DISCUSSION
BOB V ALDATIA, 528 Fifth Avenue, stated that the problems at SMIC could have
been avoided if the Council had required an RFP before going to the voters.
JIM PRUITT, Maple Street, stated that he was sorry to see Cripps resign from the
Council. He also stated that he was very disappointed by the results of the election. He
stated that his business needed to expand beyond its current site. He added that he
could not continue to compete for business under the city's shiplift tariff, stating that it
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was more cost effective for the MV Bartlett to pay the running time to Seattle for repairs
and maintenance than to pay the lift and lay charges in Seward. Pruitt also stated that
he hoped that he and the city could avoid returning to arbitration to settle differences
regarding the current lease.
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
BENCARDINO concurred with both Dunham and Pruitt. He stated that one-on-
one meetings between Councilmembers and Pruitt could have solved many of the
problems before the Council. Instead, the city was paying attorneys to do what the
Council should have done. Bencardino stated that he had lobbied for the funds to
construct the Marine Industrial Center, and he. would like to see it developed into
something more than a statewide facility. He added that he hoped the public would
demand that the Council do something to get the shiplift project on line.
SWARTZ stated that she appreciated the remarks from the public. She noted that
it would be wonderful if everything could be solved as simply as Valdatta thought it
could; however, this was not the case. She also objected to Pruitt's remarks and stated
that the decision had been made by the voters, not the Council. Swartz added that the
city could not continue to foot the bill at SMIC. She stated that she hoped something
could be worked out to preserve the jobs at Seward Ship's Chandlery.
DUNHAM stated that she hoped the Council would be fair in its dealings with
both Pruitt and Schafer. She noted that a petition was being circulated around town
favoring the construction of the Nash Road Boat Harbor. Dunham stated that the city
could not do business by petition and stated that Schafer should come forward with a
proposal if he wished to continue with a harbor at Nash Road.
11. ADJOURNMENT
The meeting was adjourned at 4:50 p.m.
,
::;
~~~~
Vice Mayor
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1.
CALL TO ORDER
The August 24, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Vice Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis A. Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT was:
Mayor Donald W. Cripps (See New Business, Item B)
4. APPROVAL OF MINUTES
Krasnansky moved to approve the August 10, 1992, regular meeting minutes and
the August 19, 1992, special meeting minutes as presented; the motion was seconded
by Bencardino and carried by unanimous vote.
4b. SPECIAL PRESENTATIONS
A. SUE CLIFTON introduced the city's Summer Youth Employment and
Training students and briefly explained the program. She stated that the program had
been very successful once again this year, and the students had provided valuable and
much needed assistance to the city while gaining the experience they would need to
more successfully compete in the job market
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5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Crane.
White asked to add a New Business Item (D) to discuss the MV Bartlett and
Seward Ship's Chandlery's efforts to obtain a contract for its annual maintenance.
Swartz moved to meet in executive session to discuss the Taylor litigation and
the Richard threatened litigation; the motion was seconded by Krasnansky and carried
by unanimous vote.
Schaefermeyer asked to add Resolution No. 92-145, revising the legal budget, as
Item No.8 under Resolutions.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given at this time.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CALENDAR
Crane moved to approve the Consent Calendar as presented; the motion was
seconded by Krasnansky and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-140. appropriating funds for OSHA mandated Hepatitis
B vaccinations, was approved;
B. Resolution No. 92-144, accepting revenue sharing funds for health care
facilities and appropriating the funds, was approved;
C. June 1992 invoice from Perkins Coie for legal services totalling $31,473.65
was approved for payment;
D. 08/03/92 invoice from Jamin, Ebell, et.al., regarding Exxon litigation in the
amount of $556.55 was approved for payment;
E. FY92 & FY93 legal budget reallocations were approved;
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F. Change Order No.2 to the International Steel Erectors contract for window
repair at the prison, increasing the contract by $23,813.00, for impact, delay and other
costs caused by the non-receipt and/or running out of window stops, was approved;
G. Change Order No.1 to the Alaska Correctional Industries contract for
fabrication of window stops for prison window repair, increasing the contract by
$6,074.10, to provide additional window stops, was approved;
H. Finance Department's report on purchase orders totalling between $5,000
and $10,000 was noted for information;
I. Parks & Recreation Department Spring 1992 quarterly report was noted for
information;
J. 08/17/92 memorandum from Deputy City Manager Yanez regarding a
proposed downtown park was noted for information; and
K. Base Line Environmental Survey of the Seward Marine Industrial Center
was noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Sheila Gottehrer, RCAC Executive Director - RCAC projects and activities.
Gottehrer stated that the Council should be proud of the community and the support
forthcoming from the city to the RCAC via the city's representative Chris Gates.
Gottehrer made a video presentation entitled "A Voice for Prince William Sound" and
answered questions from the Council regarding RCAC.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Dunham noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code Title 3, Personnel,
creating a definitions section and defining term employees.
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Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
White moved to enact Ordinance No. 92-18; the motion was seconded by
Krasnansky.
Krasnansky confirmed that term employees could not be hired unless funding for
the position was included in the budget. Schaefermeyer stated that in past years, when
term employees were used, they were generally employed for specific projects, such as
construction of the Marine Industrial Center. He stated that this was the type of
employment envisioned with the ordinance, and Council budget action would be
required prior to employment of any term employees.
The question was called, and the ordinance was approved by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a franchise for the collection and disposal
of garbage and refuse subject to approval of the voters at the
10/06/92 regular city election.
Murphy noted that this item had been continued from the August 19th special
meeting and there was a motion on the floor to adopt Resolution No. 92-136.
White moved to amend the garbage contract by adding a new Section 16 (e) to
read as follows:
(e) The minimum amounts and types of insurance provided by the
Contractor shall be subject to revision at City's request in order to provide
continuously throughout the term of this Agreement and any extensions
hereof a level of protection consonant with good business practke and
accepted standards of the industry. Such factors as increases in the cost of
living, inflationary pressures, new risk, and other conditions shall be utilized
in assessing whether the minimum insurance requirements should be increased
or changed from the types and amounts noted above.
The motion was seconded by Krasnansky.
Schaefermeyer noted that the contractor, Jason Enterprises, had agreed to the
recommended change.
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The question was called, and the amendment was approved by unanimous vote
of the Council.
The question was called on the main motion, and Resolution No. 92-136 was
approved as amended by unanimous vote.
2. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a professional services contract to Kumin
& Associates for city hall elevator design.
Crane moved to approve Resolution No. 92-137; the motion was seconded by
Swartz.
Schaefermeyer stated that the city had been in negotiations for a number of
months with the Alaska Court System, the State Department of Administration and the
Human Rights Commission regarding the construction of an elevator in City Hall. He
stated that $145,000 in legislative grant;, plus $60,000 from the Court System, had been
received to fund this project. Schaefermeyer noted that the city would construct the
elevator which would then be operated as part of the City Hall facility with the state of
Alaska picking up 40% of maintenance in accordance with its lease with the city. He
added that the state was in the process of transferring the construction funds to the
Department of Transportation so that DOT could transfer the funds to the city.
Schaefermeyer stated that the city proposed to award the design contract to Kumin, the
firm which did the initial design work on the project one and one-half years ago. He
further added that this contract was contingent upon receipt of grant funds from the
state. He noted that construction was slated for spring of 1993.
In response to a question from White, Schaefermeyer stated that the $205,000
available was believed to be sufficient to design and construct the elevator, but this was
contingent upon bids received for the construction phase. He stated that any excess costs
would be the responsibility of the state.
In response to a question from Krasnansky, Schaefermeyer stated that there might
be additional minor changes required within City facilities from time to time because of
changes in state and federal law regarding access to public buildings, but this was the big
ticket item needed for compliance.
Crane stated that it would be good to see this project completed.
The question was called, and the resolution was approved by unanimous vote.
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3. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing Task Order No.6 to the Dryden &
LaRue contract for design of the transmission line project.
Krasnansky moved to approve Resolution No. 92-138; the motion was seconded
by Crane.
Crane asked about the overrun on this phase of the transmission line project and
asked how much could be attributed to redesign of Mile 19 to Mile 24. Utility Engineer
Calvert stated that he could not give an exact dollar amount; however, the city had
redesigned the line around the avalanche area which required the development of a
computer program to deal with sag, stress on the line, etc. In addition, he stated that
permitting had caused many design changes which had added to the costs to Dryden &
LaRue.
The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the ~ity Council of the . City of Seward,
Alaska, amending the Water Fund Budget and authorizing
the construction of water wells at Ft. Raymond and at SMIC.
Swartz moved to approve Resolution No. 92-139; the motion was seconded by
Krasnansky.
Krasnansky asked what percentage of city water was ground water. Schaefer-
meyer stated that about 50% of the city's water came from ground water at times, with
the rest coming from wells. He added that the city relied upon wells for a steady,
dependable supply of water, particularly to meet industrial demands placed by the
fisheries and the coal facility and to provide adequate fire suppression capability. He
further noted that the wells that were being replaced were quite old and had reached
their effective life.
The question was called, and the resolution was approved by unanimous vote.
5. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
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A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract for clearing between Miles 8
and 18 of the Transmission Line Project.
Crane moved to approve Resolution No. 92-141; the motion was seconded by
Krasnansky. The question was called, and the resolution was approved by unanimous
vote.
6. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract for removal and disposal of
sludge from the Lowell Point Sewage Lagoon.
Krasnansky moved to approve Resolution No. 92-142; the motion was seconded
by Crane. The question was called, and the resolution was approved by unanimous
vote.
7. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds for the removal of alders along
the Lagoon Boardwalk and other Park Projects. .
Swartz moved to approve Resolution No. 92-143; the motion was seconded by
Crane.
There was considerable discussion about the possibility of using volunteer labor
or assistance from various community organizations to accomplish the clearing and other
projects. Schaefermeyer stated that the administration would be taking care of Section
One, filling of the foundation located on Ballaine Avenue, within existing resources, and
he recommended deletion of this section of the resolution.
The question was called, and tl\e resolution failed with all present voting NO.
TAKEN OUT OF ORDER - Borough Assembly Report.
Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on
the August 18th meeting of the Assembly.
RECESS:
The meeting was recessed at 9:15 p.m. and reconvened at 9:25 p.m.
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8. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, amending the Legal Fund Budget.
Krasnansky moved to approve Resolution No. 92-145: the motion was seconded
by White.
In response to a question from Bencardino, Schaefermeyer stated that this budget
had been based upon the original budget established last year for the Seward Ship's
Chandlery arbitration less what had been expended thus far.
White stated that the lease rate should be included in the arbitration.
Bencardino asked Arvidson his opinion of the city's chances of winning the
arbitration. Arvidson stated that he was confident that the city had a good case.
The question was called, and the resolution was approved by unanimous vote.
12. UNFINISHED BUSINESS
A. Meehan By-Products. Inc.. lease proposal. Murphy read the motions from
the August 10th meeting and stated that a motion to authorize an incentive lease or sale
of the property to Meehan By-Products was on the floor.
In response to a question from Dunham, Schaefermeyer stated that Meehan had
requested that this item be postponed until the first meeting in September. He stated
that Meehan had requested an incentive lease rather than purchase of the property since
he did not have the financial capilbility to PlJIchase the property at this time.
Schaefermeyer recommended postponement as requested to allow Meehan to be in
attendance when the Council discussed this matter.
White moved to postpone action until September 14, 1992; the motion was
seconded by Swartz.
Krasnansky stated that it was imperative that the city develop a policy regarding
incentive leases in order to have a cons~stent approach when responding to requests for
such leases.
Bencardino stated that his understanding of this request was that Meehan had
asked for an incentive lease to enable him to elimirtate the unpleasant odors from the
meal plant. Schaefermeyer sta.ted. that Meehan would be purchasing additional
refrigeration units for storage of fish prior to processing and noted that he had already
invested in excess of $100,000 in odor control. He noted that Meehan was requesting
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relief in rents in order to improve his business plan and to allow him to be more firmly
established as a business. In addition, Schaefermeyer stated that Meehan had indicated
that he would be willing to accept less than the five year incentive lease requested.
Crane asked if Meehan had given any time frame for going forward with this
lease. Schaefermeyer noted that the next quarterly lease payment was due October 20th,
and Meehan had indicated that he would like to have this concluded so that he would
know whether or not that lease payment had to be made. Crane stated that he was
concerned about losing-the $20,000 per year in lease payments which had been budgeted
as revenues and noted that he did not want to cover this loss from the city's Fund
Balance. He stated that before an incentive lease could be approved, the Council must
discuss where the city could cut to mak~ up the deficit. He agreed with Krasnansky that
this would continue to be a problem until the city adopted a policy regarding leasing.
Bencardino stated that the public was more concerned about the unpleasant odor
from the meal plant than the loss of rental revenues.
Dunham agreed with Bencardino. She stated that it was difficult to bring in cruise
ships when the passengers were transported through that terrible odor. She stated that
if the city truly wanted to promote tourism, something must be done about the smell.
Krasnansky stated that he would prefer to discuss generalities rather than this
particular request. He stated that the Council should not be negotiating a lease with
Meehan By-Products.
Schaefermeyer suggested that he be allowed to sit down with his staff and Meehan
and put together something that would be acceptable to Meehan and that he would be
comfortable recommending to the Council.
Crane stated that Schaefermeyer's recommendation was a good idea.
The question was called, and the motion to postpone was approved by
unanimous vote.
13. NEW BUSINESS
A. Certification of the 08/18/92 special election. Krasnansky moved to certify
the August 18, 1992, special election and to declare the results valid; the motion was
seconded by Bencardino and carried by unanimous vote.
B. Resignation of Mayor Cripps. Bencardino moved to accept the resignation
submitted by Mayor Cripps; the motion was seconded by White.
Swartz stated that the city had lost a good man and added that she hated to see
this (the resignation) happen.
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Krasnansky stated the Council had been through four different mayors in the two
years he had served as a councilmember.
Dunham stated that she was very proud of Cripps when he testified in
Washington, D. C. on a transportation issue and noted that he was always very "Mayoral"
in the way he conducted himself. She wished him good luck in the future.
The question was called, and the motion was approved by unanimous vote.
C. Appointment of Mayor to serve until certification of the 10/06/92 regular
election. Krasnansky moved to appoint Beverly Dunham to serve as Mayor until
certification of the October election; the motion. was seconded by Swartz and carried
by unanimous vote.
D. M!V Bartlett White noted that Pruitt had contended that the state had
responded to his bid to perform maintenance on the M/V Bartlett by complaining that
the city's electric and moorage rates were too high, and this was affecting his ability to
compete for state ferry repair and maintenance. White stated that the city must address
this issue.
Schaefermeyer stated that Pruitt was requesting that the city amend its published
tariffs with respect to syncrolift operations, Le., moorage at the syncrolift dock and the
rate set for energy sold by the harbor utility to Seward Ship's Chandlery at the syncrolift
dock. He stated that any changes in the tariff must be uniform and must apply to all
users. Schaefermeyer also noted that it was within Seward Ship's Chandlery's purview
to quote any rate it wished to its customers regardless of what SSC paid under the tariff.
He stated that before the city considered any amendments to its. tariff, it must first
ascertain how this would affect Pruitt's profit margin, adding that it was possible that
Pruitt could cut his bids in other areas to make up for what he claimed were high
moorage charges. Schaefermeyer reminded the Council that the city's tariffs must, by
charter, cover the utility's operating expenses. He noted that it might be appropriate to
look at a different overall tariff that would affect all customers who use the city-supplied
electricity and dock services at the syncrolift and that it might also make sense to
consider a declining rate for power consumption at the syncrolift dock. He noted that
the tariff already provided a 50% reduction in moorage for those tied to the dock for
purposes of repair. Schaefermeyer stated that Harbormaster Singletc;m had reviewed rates
charged throughout the state, and Seward's rates were not excessive, but were
comparable to rates charged in other Alaskan ports. He said that the issued actually
boiled down to what Pruitt was willing to forego in profit in order to attract a bid for
maintenance of the Bartlett.
Bencardino asked if the figure the city u~e4 fo.. electrical rates was created by the
city or through a survey of other shipyards in Alaska. Schaefermeyer stated that the
Harbor was charged the rate set forth in the c.ity's electric tariff, and in order for the
harbor to recover both its investnlent in installing the service as well as the purchase
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price of the electricity itself, the administration had elected to charge $0.20 per kwh.
Schaefermeyer suggested that the city consider a deClining rate for large users at the
syncrolift dock. He promised to review the rates with his staff and develop a
recommendation for revisions to the tariff to be presented to the Council soon.
Schaefermeyer noted, however, that he could not recommend a change in the
moorage rate since the city's rates were comparable to what other docks in the state were
charging. He agreed that the city had an obligation to be responsive to Pruitt, but Pruitt
must understand that the city was also obligated to cover its costs of operating its
utilities.
,
Dunham stated that she would like to see a meeting between Council, the Trade
Board and the Port Committee to discuss these issues.
14. CITY MANAGER REPORTS
SCHAEFERMEYER noted a memorandum to the Council from Yanez regarding
the electrical service installation at the SMIC boat storage area. He stated that the city
hoped to have power installed within the next day or so.
SCHAEFERMEYER also stated that he felt obliged to respond to recent press
coverage of Seward which was aired by KTVU-TV on Sunday evening. He stated that
he was dismayed at the particular focus and bent of the story and added that a great
disservice was done to the community by a television station which had a long history
with the city. He stated that the station owed the city an apology. Schaefermeyer noted
that the story was prompted by the press the city received as a result of the August 18th
election. He stated that he had spent approximately 45 minutes before the camera in
what he had thought was a very positive and comprehensive interview regarding the
endeavors this community had embarked upon since the Seventies. He noted that the
economy of this town was much better today than it was in 1977, and he had conveyed
this message to KTVU and had stated that there was nothing wrong with investing the
state's oil revenues in the development of other Alaskan resources. Schaefermeyer noted
that, unfortunately, the story was edited down to an absolute disservice to the city of
Seward and the story that was eventually aired was an insult to the town. He stated that
he intended to demand an apology and a follow-up story.
SCHAEFERMEYER stated that he was particularly distressed at the reporter's
reference to the Sea Life Center and his implication that this was another city project
seeking to bilk the state and private donors of money. He stated that the reporter knew
this was not true but misstated the facts to support a preconceived conclusion.
15. COUNCIL DISCUSSION
BENCARDINO stated that he had received compliments from the public with
respect to the recent clean-up of the cemetery. He thanked Yanez and Singleton for
dealing with the power problem at the SMlC boat storage area.
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WHITE stated that the Port Committee had met last Wednesday and had
discussed SMIC and boat harbor parking. He noted that the Harbor was attempting to
obtain a grant for another launch ramp at the tidal grid to help relieve seasonal traffic
congestion. White also asked if there was anything specifically that the Council would
like the committee to address. He stated that the committee members were willing to
work wherever they were needed. He concurred with Dunham that the Council should
meet with the Port Committee on a regular basis. White also commented on the KTVU
report. He stated that one had only to look at old photographs of the community to see
how much it had changed and progressed over the past decade or so.
CRANE asked for an update on the sidewalk repair. He also thanked Cripps for
the time and effort he had put into the community and he wished him well in his future
endeavors.
SCHAEFERMEYER noted that the majority of sidewalk repairs had been
completed by the contractor. He stated that the city had agreed to forego some of the
projects until next spring. Schaefermeyer also noted that T. I. Kim was in Seward
recently to thank the city for its efforts in the coal price negotiations and had asked him
to convey his (Kim's) appreciation for the resolutions of the Council and the individual
Council efforts of Bencardinq and White on behalf of Suneel. .
SWARTZ stated that a lot of good work was being done around town. She stated
that she had been following the park project south of the lagQOn ~nd noted that it would
be a nice addition to the community. She also suggested that a fence be constructed
around the cemetery.
KRASNANSKY stated that part of the Anchorage story could be attributed to the
fact that half of the state'.s population got a disproportionate share of the state's
resources. He noted that he, too, was very distressed by the story.
DUNHAM stated that she had reviewed the plans for .a small city park north of
the Kawabe store and felt that it would be wiser to obtain the lot housing the old Mini
Mall to create a park which could be tied into the tot lot. Dunham also discussed the
poor news coverage from KTVU. She stated that the recent Daily News article had been
fair; however, KTVU had given misinformation on almpst every point.
16. CITIZENS' DISCUSSION
CHRIS GATES, Johnstone Road, stated that the new federal law regarding the
shipment of oil was being interpreted very broadly to cover refined oil as well as crude.
He stated that RCAC had lobbied very hard to get a law that would cover crude oil only.
He agreed that the ~rrent interpr~tation would be very co~tly to resid~nts.of the villages
in remote areas.
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DON WHITMAN, 535 Sixth Avenue, addressed the tariff situation at the syncrolift
dock. He stated that this was not a matter of Pruitt being abl~ to cover the cost of
moorage in his bid. He noted that state and federal contracts required the bidder to
quote all city rates.
W AL T SCZA WINSKI, 611 Monroe, addressed several items of concern from the
agenda including the cost of Hepatitis l3 vaccinations and hand-held radios, the cost of
litigation and attorney fees, and the fact that agenda materials were not available until
just prior to the meeting.
JIM PRUITT, Maple Street, stated that recommendations made by the Port
Committee had not always been forwarded to Council. He stated that the former Harbor
Commission had been a sounding board for problems from the boating community. He
also stated that city staff should not sit on the Port Advisory Board as direct participants.
He stated that Council should give real thought to reinstating the Harbor Commission.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
KRASNANSKY responded that the Hepatitis B shots were very expensive and the
radios noted in the agenda packet actually did cost about $1,000 each.
DUNHAM stated that the money spent on the Taylor case was well spent since
it might keep the city out of the suit.
SCHAEFERMEYER,respondingto Pruitt's comments, stated that the original tariff
adopted by the city was drafted based on anticipated activity which did not materialize.
He stated that the 250-ton travel lift raised vessels which would not have come to Seward
had the travel lift not been available.
DON ENNIS, 1904 Forget Me Not Circle, stated that right now Petro Marine had
a tug and a barge at SMIC which had been lifted by the travel lift. He noted that the
barge would have been raised by the syncrolift had the 250-ton lift not been there. Ennis
also stated that he had talked to an insurance company earlier in the day that had
previously hired a law firm for $1.3 million a year. However, this company now had
three in-house attorneys and had saved about $800,000 annually. He suggested that the
Council give real consideration of the in-house attorney option.
18. ADJOURNMENT
The meeting was adjourned at 11:10 p.m., and after a short recess, the Council
. reconvened in executive session to discuss the Taylor litigation and the Richard
~~r~(f itigation.
. .....1-9.
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Heverly Dunha
Mayor
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1. CALL TO ORDER
The September 14, 1992, regular meeting of the Seward City Council was called
to order at 7:30 p.m. by Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Crane led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis A. Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4. APPROVAL OF MINUTES
Crane moved to approve the August 24, 1992, regular meeting minutes as
presented; the motion was seconded by Krasnansky and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Crane.
Schaefermeyer requested the deletion of proposed Resolution No. 92-153
(awarding a contract for design and construction of water wells) and the addition of
proposed Resolution No. 92-154 (approval of a short term lease with McTar Petroleum,
Inc., to store salt at SMlC).
Dunham requested that several parents wishing to address the Council regarding
day care and head start be allowed to appear under "Presentations with Prior Notice".
The question was called, and the agenda was approved as amended by
unanimous vote.
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White moved to meet in executive session to discuss IBEW contract negotiations;
the motion was seconded by Bencardino and carried by unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
DON WHITMAN, 535 Fifth Avenue, commented on proposed Ordinance No. 92-
20 and asked if the city intended that the waiver of fees for electric line extensions was
to be for single phase extensions only. He stated that he hoped this provision would
apply to three phase construction as well. In regards to proposed Resolution No. 92-151,
Whitman stated that it was commendable that the city was moving ahead to make
electric rates more palatable to the users, but suggested that the meter at the dock should
belong to the Electric Department, not the Harbor, and should be billed on a demand
basis by the Electric Department.
8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by White.
Murphy asked to delete Item A, proposed Resolution No. 92-146.
Bencardino asked to move proposed Resolution No. 92-149 to the Regular Meeting
Agenda as Item No.4 under Resolutions.
The question was called, and the Consent Calendar was approved as amended
by unanimous vote. The following actions were taken:
A. Resolution No. 92-146, quitclaiming city interest in L14, S35, TIN, RIW, to
the Alaska Department of Transportation and Public Facilities, was deleted from the
agendaj
B. Resolution No. 92-147. accepting additional SYETP grant monies and
amending the program budget, was approved;
C. Resolution No. 92-148, authorizing the City Manager to negotiate a contract
with Summit Paving to overlay three city streets and to make bike path improvements,
was approved;
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D. Resolution No. 92-149, establishing the B Street Dock capital project fund,
was moved to the regular meeting agenda (See Page 22);
E. Resolution No. 92-150, accepting a grant from the Kenai Peninsula Borough
School District and appropriating funds for the Community Schools Program, was
approved;
F. July 1992 invoice from Perkins Coie for legal services totalling $17,703.00 was
approved for payment; .
G. Invoice from Jamin, Ebell, et.al., for legal services in connection with the
Exxon litigation totalling $1,721.81 was :approved for payment;
H. FY 1993 legal budget report was noted for information;
I. ABCB notification of request to transfer a beverage dispensary license from
Harbor Gateway, Inc., to D. Diane Carlson, Gateway Texaco Liquor & Foodmart was
noted for information;
J. Revised Spring Creek Correctional Center construction budget was
approved;
K. Accounts Receivable Write-Offs were noted for information;
L. Second Quarter, CY 1992, taxable sales report was noted for information;
M. Seward Marine Industrial Center soils sample baseline study was noted for
information;
N. Games of Chance & Skill application for raffle permit as filed by Alaska
State Hospital & Nursing Home Association was noted for information;
o. Norcon, Inc., transmission line construction contract change orders were
noted for information as follows:
1. Lost time due to 12 kv outage (+$735.00)
2. Crew time lost setting pole #129+09 (+$980.00)
3. Anchor changes @ 236+28,227+55,233+66 (+$1,483.31)
4. Rock holes @ 227+55,224+71,34+08 (+$11,207.37)
5. Anchor change (+$2,986.80)
6. Stub & down-guys @ 131 +34 (-0-)
7. Anchor change @ 131 +34, 30+24 (-$795.42)
8. Additional anchor tests (+$9,322.92)
9. Fiberglass link @ 219+29 (+$169.48)
10. Rock hole @ 161 +40 (+$6,737.29)
11. Fiberglass links @ 203+89, 167+50, 104+34 (+$508.44)
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12.
13.
14.
15.
16.
17.
Loaned men to help w/69kv switching (+$980)
Work not required @ T244 (-$509.11)
Delete second span guy for Dist. (-$324.42)
Delete Transfer of guy (-$180.28)
Add fiberglass links @ 229+39 (+$338.96)
Unplanned outages caused by contractor error (-$2,000.00)
P. Request for authorization to proceed with replat of L3, B2, Marina
Subdivision was approved;
Q. Request for authorization to proceed with replat of all city lands south of
the city limits on the east side of Resurrection Bay was approved;
R. Capital and Special Projects status report was noted for information; and
S. Boardwalk Development Proposal was noted for information.
9. PUBLIC HEARINGS None
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Dale Hoogland - Trade Board Report. Hoogland stated that the Trade
Board would be making monthly reports to the Council, with.the members alternating
this task. He stated that one important item discussed at the last meeting was the electric
rate charged by the Harbor to those using its meter at the shiplift dock. He stated that
it was not good business to charge double the rate the harbor paid for the power. He
noted that the Board had voted unanimously to send a letter of support for the Nash
Road Harbor to the Corps of Engineers. He reported that the Board had discussed the
grain terminal sale and had suggested that the cost of shipping the components could
adversely affect the city's ability to sell.
B. Eric Robson. ACI - Prospective Grain Terminal Purchase. Robson noted
that his option to purchase the grain terminal components had expired. He stated that
ACI had paid $20,000 to the city and had completed a tremendous amount of research
in its efforts to broker the grain terminal components. Robson noted that he had made
more than 1,000 contacts thus far and had narrowed his list of prospective buyers to 13
individual companies listed on a document he distributed to the Council. He stated that
each of the 13 had indicated that they would make a decision regarding the purchase
within the next 30 to 90 days. Robson asked the Council to allow ACI to utilize these
contacts to close the sale. He stated that he would guarantee that any sale would net the
city at least $450,000, with any profits above the hard costs to be shared by the city and
ACI.
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In response to a question from Swartz, Robson stated that ACI wanted a
nonexclusive agreement that would allow ACI to continue to negotiate with the prospects
they had already contacted.
White noted that the original agreement called for the city to receive $550,000, not
$450,000. Robson stated that the market was not there to realize the price ACI had at
first contemplated, and, in order to proceed, Act needed to recover its hard costs.
In response to a question from Crane, Schaefermeyer stated that storage costs for
the components averaged about $33,000 per year.
Chris Gates stated that, in the agreement signed in March, there was a 9O-day tail
which stated that the city could not deal with anyone contacted by ACI for at least 90
days following termination of the agreem.ent; therefore, going forward with an extension
of the agreement would not put the city in any worse position than it was already and
might result in closing the deal quickly. Gates stated that he would like any new
agreement to contain a provision requiring Robson to share all of his research and list of
contacts with the city.
Schaefermeyer stated that the agreement with Kobuk had expired; however, this
agreement had a two year tail which required that any sale proceeds would be split as
per the agreement. However, under the agreement, all fees due to the city by Kobuk
would be deducted from Kobuk's share of the profits from the sale.
Schaefermeyer noted that Robson had brought with him an agreement form that
would give ACI a nonexclusive option until December 1, 1992. Under the terms of the
agreement, if a deal was concluded by someone he brought to the table, the city would
pay 15% of the gross proceeds of the sale to ACI. If, after December 1st, the city sold the
components to an entity Robson brought into the picture, the city would pay ACI 7.5%
of the gross proceeds. Schaefermeyer noted that Arvidson had not yet reviewed the
agreement and some issues within it must be addressed pljor to Council action. He
added that this was not an item that could be acted upon at this meeting, but would
require a special meeting or action at the next regular meeting.
The Council instructed the Clerk to schedule a special meeting for Tuesday,
September 15, 1992, beginning at 5:00 p.m. in order to consider approval of a
nonexclusive option agreement with ACI for disposal of the grain terminal components.
C. NANCY ORTH, 207 Third Avenue, stated that her daughter had attended
the Parks & Recreation Department's children's program this summer. She stated that
prior to attending the city's day camp, her daughter had attended preschool at a local
day care; however, neither she nor her daughter was satisfied with the programs offered
by the private day care facility. She stated that the Parks and Recreation program was
not being offered anywhere else in Seward, and she would like to have access to this
program again.
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Schaefermeyer stated that the mle of thumb used by the city in its recreation
programming was whether a partiClllar program served an unmet need in the
community. He stated that there was a great deal of debate regarding this particular
program. He stated that the two licensed day care providers were very concerned about
this program and its conflict with their programs. Schaefermeyer noted that he had
taken the position that the city would not provide programs offered by the private sector;
therefore, the question to be answered was whether this program was being offered by
the private sector. He noted that this was a policy question for the Council to answer.
Dunham stated that she had a 1/3 interest in the building where one private sector
program was located, and her daughter had worked part time for the city-sponsored
program earlier in the year. Th~re was a consensus of the Council that this did not
constitute a conflict of interest on the part of the Mayor.
C. RHONDA SPUR, Nash Road, representing the Seward Headstart Program,
requested city assistance in obtaining a better location for this activity. She stated that
the city had been very supportive of the program and had provided space for it in the
basement of the Library. However, this space was inadequate and did not provide an
outdoor play area for the children. She noted that Headstart targeted low income and
special needs children, and these childr(~n needed and deserved a better environment for
their activities. She stated that she had exhausted all other possibilities and was now
seeking city assistance. She asked the Council to consider purchasing the old "Mini
Mall" building to house the Headstart program. She added that RURAL-CAP would be
willing to look into grants to renovate the building, however, funds were not available
under this program for purchase of a facility.
Krasnansky (referring to Orth's earlier comments) stated that there was a
significant amount of interest on the part of the public that the city offered a superior
program to that which could be obtained in the private sector. He stated that the people
should have a choice, and if they chose the city's program, this demonstrated that the
city had quality people and a quality program. He added that this should stimulate
competition from the private sector.
Swartz, speaking to Orth's concerns, stated that she had heard a lot of good things
about the city's program, adding that this program gave everyone an equal chance to
take part in the program or not as they chose. She stated that she would hate to think
that children at home who did not go to day care would be denied the enrichment the
city program offered. .
Crane, speaking to Orth's remarks, stated that only five or six parents had asked
for the city program, and this did not represent a majority of the parents. He stated that
he did not see much difference between the city and private sector programs except for
the times they were offered.
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Nancy Orth stated that it was not just five people who wanted the program, but
five who had approached Parks & Recreation. She asked how many other programs
received this type of response from the public.
RECESS:
The meeting was recessed at 8:55 p.m. and reconvened at 9:00 p.m.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available to the public, Dunham noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC f 13.01.025 B. to allow the use of salt
and calcium chloride to prevent freezing surface moisture on
city sidewalks.
Krasnansky moved to introduce Ordinance No. 92-19; the motion was seconded
by White.
Manager of Engineering & Utilities Paul Diener stated that when this section was
written last year, it was intended to be a permanent Code provision. He noted that salt
would damage fresh concrete more quickly than it would aged concrete. He stated that
the ordinance enacted last year was a good idea that did not work because of weather
conditions in Seward. He noted that the public had attempted to comply with the law
by scraping the ice off the sidewalks, and in the course of doing this had damaged the
sidewalks more than the salt would ha,ve.
The question was called, and the motion was approv~dby unanimous vote.
Public hearing was scheduled for September 28, 1992.
2. Copies having been made available to the public, Dunham noted by
title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC f 14.15.515, electrical line extension
construction for Large General Service and Small General
Service customers.
White moved to introduce Ordinance No. 92-20; the motion was seconded by
Crane.
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Schaefermeyer stated that there was a drafting error in this ordinance. He stated
that the Section proposed for amendment was f 14.15.515 A. 3, not A. 2. He noted that
the ordinance would be corrected prior to the public hearing.
The question was called, and the motion carried by unanimous vote. Public
hearing was scheduled for September 28, 1992.
B. Ordinances for Public Hearing & Enactment None
C. Resolutions
1. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, amending the General Terminal Tariff to establish
a Large General Electrical User and setting rates.
Krasnansky moved to approve Resolution No. 92-151; the motion was seconded
by Crane.
Bencardino asked why the electrical service at the shiplift dock was owned by the
Harbor rather than the Electric Department. Schaefermeyer stated that the service was
Harbor property which was installed by the Harbor at Harbor expense. Therefore, it was
billed by the Harbor rather than the Electric Department. He noted that most Harbor
services were operated in this manner. He further noted that this particular work
(installation of the service) was done by a private contractor for the Harbor and was not
constructed by the Electric Department.
Bencardino stated that if the Electric Department billed the customers of that
service directly, the rate charged could be a little bit higher than what was charged to
regular customers which would allow the utility to recoup its costs for installation of the
service while keeping the rates low enough to satisfy the customers.
Schaefermeyer stated that if the facility were privately owned, the private owner
would have been required to have a contractor install the service just as the Harbor did.
Then it would have been billed at the meter based on a demand charge. In this case, the
customer was the Harbor Department. He noted that over the past 20 months, the
Harbor would have netted only $6,000 under the new rate proposed.
Crane noted that, in order for the Electric Department to take over this meter, it
would have to purchase the improvements from the Harbor.
White stated that he liked the new rate structure.
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Calvert explained that, by law, the Electric Department could not work on
anything beyond the meter and, therefore, could not own the service located at the
Shiplift Dock.
Singleton stated that the $0.20 rate had been based on short term, high demand
users, not long term users like the Tustumena or the Bartlett.
The question was called, and the resolution was approved by unanimous vote.
2. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitleq:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract for Lowell Point Sewage Lagoon
Improvements.
Krasnansky moved to approve Resolution No. 92-152; the motion was seconded
by Swartz. The question was called, and the resolution was approved by unanimous
vote.
3. Resolution No. 92-153. a~~llding a contract for design and
construction of new water wells, was deleted from the agenda.
4. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitl~q:
A Resolution of the City Council of the City of Seward,
Alaska, approving a short term lease agreement with McTar
Petroleum, Inc., at the Seward Marine Industrial Center.
Krasnansky moved to approve Resolution No. 92-154; the motion was seconded
by Crane.
Schaefermeyer stated that a large barge had entered Resurrection Bay about 10
days prior to this meeting. He stated that the barge had been carrying the road salt
purchased by the state Highway System for its. 1992-93 season andwas scheduled to be
off-loaded in Anchorage. However, concerns about water depth adequacy and concerns
regarding potential labor problems and scheduling in Anchorage had led the owners of
the barge to proceed to Seward where permission was asked to off-load 16,500 tons of
salt for storage until it could be transported to its .final des.tinations. He noted that the
majority of the salt was trUcked to private property owned by Bill McDonald for storage
over the winter, and some was off-loaded to city property. Schaefermeyer noted that this
lease was for a short term to expire on October 3O.th and allowed McTar Petroleum, Inc.,
to occupy one acre of SMIC property for storage of the salt. He noted that payment had
already been received by the city and McTar had indemnified the city with a letter of
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credit through FNBA and had provided insurance coverage for the city in the amount
of $2 Million. Schaefermeyer also noted that McTar had indicated its desire to use the
Port of Seward for future shipments.
The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Dunham noted by
title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, establishing the, B Street Dock Capital Project
Account and appropriating funds.
Crane moved to approve proposed Resolution No. 92-149; the motion was
seconded by White.
Bencardino stated that he was concerned about spending these funds right off the
bat when the city was considering another option for the B Street Dock. Schaefermeyer
noted the project status report (Page 100 of the packet) which updated the Council on
this project. He noted that the city had contracted with an engineering firm with offices
in Portland and in Anchorage for the purpose of checking on the suitability and
condition of a couple of floating dry dock units at the Port of Astoria and the Port of
Portland which might lend themselves to utilization in this project. Schaefermeyer noted
that it was too early to say if this would be a viable option; however, it was possible that
the city would be able to save a large amount of money using these floating dry dock
units.
The question was called, and the resolution was approved by unanimous vote.
12. UNFINISHED BUSINESS
A. Meehan By-Products. Inc.. Lease Proposal. Murphy noted that there was
a motion on the floor to authorize an incentive lease or sale of a portion of the Seward
Fisheries (Icicle Seafoods) lease property to Meehan By-Products, Inc.
Schaefermeyer noted that the city was not any further along than the last meeting
in regards to its discussions with Meehan. He noted that Meehan had been out of town
most of that time. In addition, Icicle Seafoods had now requested that the city agree to
stipulate some specific language that they wished to see in the Meehan lease including
a restriction limiting operations on the lease property exclusively to the manufacture of
by products as well as a first option for Icicle if the property came back to the city.
Schaefermeyer stated that he had infonned Icicle that it must provide an environmental
baseline study prior to th~ city going forward with a lease with anyone else.
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Schaefermeyer noted that the motion before the Council was to authorize the city
to enter negotiations, and he asked that this vote be taken allowing him to proceed with
discussions with Meehan.
Krasnansky moved to postpone action indefinitely; the motion was seconded by
Swartz.
Schaefermeyer stated that the motion before the Council did not bind the Council
in any way, but merely gave the administration authorization to go forward with
negotiations.
Bencardino stated that the adm4listration should be allowed to go forward.
Krasnansky stated that he did not wish to see any discussion of incentive leases
until the City Council had adopted an incentive lease policy.
The question was called, and the motion to postpone indefinitely failed with
Crane, Dunham and Krasnansky voting YES and Bencardino, Swartz and White voting
NO.
Crane stated that it was not in the city's best interest to go forward with lease
negotiations when the principals had failed to come forward to discuss this with the city.
Bencardino stated that the ~ouncil was only being asked to give the administration
permission to negotiate with Meehan.
White asked if incentive leases had been granted in the Small Boat Harbor area,
and Schaefermeyer responded that they had.
Dunham stated that Schaefermeyer should express to Meehan that he must appear
at some meeting to speak to the Council about .this request. .
Schaefermeyer stated that he was hoping to schedl11e a work session with the
Council to discuss the components of a draft lease prior to going forward with a public
hearing.
In response to a question from Krasnansky. J;'egarding the public interest in an
incentive lease with Meehan, Schaefermeyer stated that the continued beneficial use of
a building on city property was one very important incentive as well as the continued
employment to those working at the facility. He further noted that Icicle had stated that
it did not wish to contQme a relationship with Meehan or continue management of this
business. Therefore, in the absence of a lease between the city and Meehan, the business
would probably close. He stated that Icicle had the option to sublet the property to
Meehan, and Council could take the position that this was its preferred alternative.
( CSEl55277 1
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Bencardino stated that more than 10 jobs would be lost with the closing of the
business, excluding those provided to trock the fish to the facility, supply fuel for the
operation of the facility, etc. He also noted that the employees of the meal plant bought
food, gas and other products in Seward. He suggested that the Council give the
administration a chance to come up with something to bring back to the Council.
Schaefermeyer stated that the city could require posting one-half year's rent to pay
the city's cost to negotiate the lease. H~ added that he did not anticipate involving the
city attorney to any great extent in the. drafting of this lease.
Dunham stated that Meehan had expressed a need for imm ediacy early on, and
if this were the case, he should have been present at this meeting or he should have had
a representative present to answer questions.
The question was called, and the motion to authorize the administration to
negotiate an incentive lease with Meehan By-Products was approved with Bencardino,
Dunham, Swartz and White voting YES and Crane and Krasnansky voting NO.
13. NEW BUSINESS
A. Resignation of Planning Commissioner Lindsey. Krasnansky moved to
accept the resignation of Kurt Lindsey from the Planning Commission; the motion was
seconded by Crane and carried by unanimous vote.
The Clerk was instructed to schedule appointment of a new Planning Commission-
er for the September 28th meeting and to invite the two applicants - Castellina and
Wakefield - to appear before the Council at that time to discuss their qualifications for
the position.
14. CITY MANAGER REPORTS
SCHAEFERMEYER noted that he had heard some criticism regarding the alder
clearing along the Boardwalk and across the street. He noted that the Boardwalk clearing
was done by an individual doing community service work. He stated that the
administration had managed to save somc of the trees once it was discovered that the
community service worker was a bit too ambitious in his clearing. Sch~efermeyer stated,
however, that the city had nothing to do with the clearing that was done across the street
from the Lagoon. He stated that the city had not requested that DOT clear this property
and, in fact, had asked the state not to do any more clearing.
A. Preliminary FY 1992 Year End Financial Report. Schaefermeyer noted the
statement in the Council packet and deferrcd formal statement unless Council had
questions.
( CSE155278 1
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B. Syncrolift Tariff. Schaefermeyer noted the memorandum in the Council
packet. He stated that when the Council was working on the sales agreement with
Seward Ship's Chandlery, a motion requiring a monthly tariff payment of $25,000 until
closing of the sale of the syncrolift was approved. He noted that, with the negative
outcome of the vote, this sale would never close, and, therefore, the question regarding
tariff payments remained. He further noted that the city and Seward Ship's Chandlery
were currently in arbitration. He stated that this would be an agenda item on September
28th, and Council would be asked to make a decision regarding tariff payments at that
time. Schaefermeyer reminded the Council that the adopted FY 1993 Harbor Budget was
approved on the basis of implementing the user availability charge, and he had deferred
seeking collection of the $25,000 per month charge until the Council could act once again
on this issue.
White, Krasnansky and Crane concurred with administration's recommended
course of action.
Schaefermeyer noted a letter he had drafted to the Director of the Department of
Transportation addressing the recent road closure north of Girdwood and the
department's failure to give notice to Seward and other communities on the Peninsula.
He noted that the state had also l~ a contract for next spring which would involve
significant road closures throughout n~t summer, in the vicinity of Mile 14. He stated
that he hoped to meet wiUl DOT officials to discuss these upcoming closures in an
attempt to mitigate the effect this might have on this community and others.
Schaefermeyer also noted his memorandum regar<;Ung U1e DOT 6-year Capital
Improvements Plan and changes that were forthcoming due to the Intermodal
Transportation Act of 1991. He stated that city staff had met with representatives of the
Department of Transportation on Friday evening to review the material.
Schaefermeyer stated that a meeting had been schedul~ at 4:00 p.m. tomorrow
with local day care providers and interested parents with respects to the city's program
offerings for youth. He stated that he hoped this would clear the air and clarify whether
what the city was attempting to do would compete with existing programs.
15. COUNCIL DISCUSSION
BENCARDINO stated that he had talked to Magistrate Peck this afternoon and
had found that there was a real problem with people who were given community service
as part of a sentence. He stated that SLAC was supposed to coordinate the community
service work; however, when the community service providers were sent to the City by
SLAC, no one knew who they were to see. He. suggested that the City Manager
designate someone in administration .to co.ordinate all. community service work for the
city. He also requested that the city plant some trees to beautify the area cleared by
DOT. In respoflse to Benc:ardinc;>) questic;>n about ~e deletion of the water well
resolution from the agenda, Schaefenneyer .stated thilt bids. l,tad come in at $45,000 over
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the available budget, and the city was currently investigating other alternatives and
would bring this back to the Council at the next meeting.
WHITE asked when the Nash Road intersection project was slated to begin.
Schaefermeyer stated that this had been scheduled for construction this year, but the
state was involved in a right-of-way problem with a private land owner in the area and
had, therefore, pushed the project into 1993.
CRANE thanked,Rhonda Spur for voicing her concerns regarding Headstart. He
stated that this was a worthwhile project and bore looking into to see what the city could
do to assist the program. He also thanked Nancy Orth for addressing the Council
regarding her problems and concerns.
SWARTZ stated that she had been watching the project on the Greenbelt where
the area for picnicking was being provided for disabled people. She stated that she was
proud of this community and what was being done for its citizens and visitors.
KRASNANSKY stated that he had attended a meeting of the Healthcare Advisory
Council last week, and a member of the Council would be addressing the Hospital Board
tomorrow night to ask for funding for an area-wide survey. He stated that the Council
had also discussed a proposal to develop a health maintenance organization. Krasnansky
recognized Murphy for scoring 96% on the National Association of Parliamentarians test.
DUNHAM thanked the City Manager for his letter to KTUU. She also recognized
Murphy and noted that she was now one of only 6 certified parliamentarians in the state
of Alaska. Dunham also complained that DOT had once again put off striping the
roadways until just before the snow was about to fly. She stated that this should be
done early in the season, not in the Fall. She asked the administration to contact the
insurance company about removing the abandoned truck on the bank near the boat
launch. Finally, Dunham stated that the city should show up whenever a legislative
candidate appeared in Seward since, if elected, they would remember who was there
before the election to support them.
16. CITIZENS' DISCUSSION
DON WHITMAN, 535 Sixth Avenue, stated that he was pleased to see that the
city was going to give people a break in rates for electrical service at the shiplift dock.
RICHARD ROSSE, A VTEC Dormitories, stated that the facility for headstart
children was not adequate. He noted that the city was required to contribute either cash
or in kind services for this federal program, and the money contributed by the city
should be put into improving the facility.
DAVE CALVERT, Utility Engineer, updated the Council on the status of the
transmission line project. He noted that the contractor was stringing new line and the
( CSE155280 1
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September 14, 1992
City Council Minutes
Volume 28, Page 174
city would be on generation during the day until this was completed. He noted that this
might cause a loss of power for short periods of time when switching to and from
generation.
WAYNE CARPENTER, Fifth Avenue, stated that he had just returned from the
International Cruise Ship Conference in Vancouver where he had talked to carriers about
their needs and expectations when they come to Seward. He stated that he would be
sending a written report of that meeting to the Council soon. He stated that on
September 22nd at 7 p.m. the Chamber would host its annual meet the candidates night
at the A VTEC Student Center Auditorium. He stated that the event would be televised.
Carpenter also noted that the Chamber and the Alaska Railroad were sponsoring a free
train ride to Moose Pass and back to participate in a picnic on the lake on September
26th. He asked those interested in attending to RSVP with the Chamber.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
WHITE asked if borough and city candidates would attend the same candidates
meeting. Carpenter stated all candidates - borough, city and state - would be invited to
attend and participate.
DUNHAM stated that the city needed a brochure to distribute on the train to
show visitors what was available in town.
BENCARDINO stated that the EDD Board had discussed day tour boats at its last
meeting. He stated that he was surprised to find that Seward had about 55,000 people
on tour boats this year. He noted that the tour boats ha,d done a good job of bringing
people to Seward and that one tour boat owner was one of the highest contributors of
sales tax in the borough.
, .
SWARTZ noted that the proposed road work at Mile 14 was needed; however,
she hoped the city manager could make the upcoming .road closures easier on the
travelling public.
18. ADJOURNMENT
The meeting was adjourned at 11:00 p.m., and, after a short recess, the Council
reconvened in Executive Session to discuss IBEW negotiations.
~A/~tr~
everly ham
Mayor
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1.
CALL TO ORDER
The September 15, 1992, special meeting of the Seward City Council was called to
order at 5:05 p.m. by Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Louis Bencardino
James Krasnansky
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4.
APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by White and carried by unanimous vote.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Copies having been made available to the public, Dunham noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a sales option agreement with American
Capital International, Inc., for sale of the grain terminal
components.
Krasnansky moved to approve proposed Resolution No. 92-155; the motion was
seconded by Swartz. The question was called, and the resolution was approved by
unanimous vote of the Council. (
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7. CITY MANAGER REPORTS
YANEZ briefly reviewed the results of his meeting with local day care providers
and concerned parents.
8. COUNCIL DISCUSSION None
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRA nON RESPONSE TO CITIZENS' COMMENTS
None
u. ADJOURNMENT
~~
Beverly Dunh
Mayor
City Council Minutes
Volume 28, Page 176
1. CALL TO ORDER
The September 28, 1992, special meeting of the Seward City Council was called to
order at 5:05 p.m. by Acting Mayor James Krasnansky.
2. OPENING CEREMONY
Adam Orth, Seward Phoenix Log editor, led the pledge of allegiance to the flag.
3. ROLL CALL There were present: .
James Krasnansky, presiding, and
Louis Bencardino
Dale White
Dave Crane
comprising a quorum of the Council; and
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City Council Minutes
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Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
Beverly Dunham (excused) and Karen Swartz (excused)
RECESS:
The meeting recessed at 5:09 p.m. & reconvened at 5:23 p.m.
4. APPROVAL OF SPECIAL MEETING AGENDA
White moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Crane and carried by unanimous vote.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Request for Executive Session.
Crane moved to meet in an executive session immediately following the close
of regular business in order to discuss a proposed settlement with Larry Richard; the
motion was seconded by White and carried by unanimous vote.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION None
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
11. ADJOURNMENT
The meeting was adjourned at 5:26 p.m., and, following a short recess, the Council
reconvened in Executive Session to discuss a proposed settlement with Larry Richard.
NOTE: Bencardino was excused from the Executive Session because of his direct
involvement in the Richar~>!~. vi
O~ S.~~'" ~ I~ !
, / lIlIIt....rt) ~$~~uVi( ...
. --.., - James ~~ilan "- --- ---~
SEA L Acting MaYo, (
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City of Seward, Alaska
September 28, 1992
City Council Minutes
Volume 28, Page 178
1. CALL TO ORDER
The September 28,1992, regular meeting of the Seward City Council was called
to order at 7:30 p.m. by Acting Mayor James Krasnansky.
2. OPENING CEREMONY
Port Marketing Director Gates led the pledge of allegiance to the flag.
3. ROLL CALL There were present:
James Krasnansky, presiding, and
Louis A. Bencardino
Dale White
Dave Crane
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
Beverly Dunham (excused) and Karen Swartz (excused)
4a. PROCLAMATIONS
A. National Disability Employment A wareness Month (October). Krasnansky
presented a proclamation designating October as Disability Employment Awareness
Month in Seward to Job Services Manager Gordon Wickstrom.
4b. APPROVAL OF MINUTES
Crane moved to approve the September 14 and 15, 1992, minutes as presented;
the motion was seconded by White and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
White moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Crane.
Schaefermeyer asked to withdraw Resolution No. 92-162 (approving a settlement
agreement with Larry Richard) from the Agenda since there were not enough qualified
Councilmembers present to vote on this resolution. NOTE: Bencardino could not vote
on this resolution because of his direct involvement in the Richard matter.
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The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present, and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
BOB VALDATTA, 528 Fifth Avenue, stated that he did not understand why the
city was paying $200,000 to settle the Richard matter rather than litigating. He urged the
Council not to settle.
8. APPROVAL OF CONSENT CALENDAR
Crane moved to approve the Consent Calendar; the motion was seconded by
White.
Bencardino asked to move Item E (Resolution No. 92-159) to the regular meeting
agenda. Crane asked to move Item H (Resolution No. 92-164) to the regular meeting
agenda. Krasnansky asked to move Item No. F (Resolution No. 92-160) to the regular
meeting agenda.
The question was called, and the Consent Calendar was approved as amended
by unanimous vote. The following actions were taken:
A. Resolution No. 92-153 SUBSTITUTE, awarding a contract [C92-501] for the
construction of new water wells, was approved;
B. Resolution No. 92-156, accepting state library grants and appropriating
funds, was approved;
C. Resolution No. 92-157. amending city lease proposal procedures, was
approved;
D. Resolution No. 92-158. awarding a contract [C92-502] for on-call snow
plowing and sanding services, was approved;
E. Resolution No. 92-159. approving Change Order No.2 to the CH2M Hill
contract [C92-463] to provide project management services during construction of the
Lowell Point Sewage Lagoon, was moved to the regular meeting agenda as Item No.
1l.C.5.; (
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September 28, 1992
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Volume 28, Page 180
F. Resolution No. 92-160. amending the city's PERS Participation Agreement
to allow Seward General Hospital to execute a separate participation agreement, was
moved to the regular meeting agenda as Item No. 1l.C.7.;
G. Resolution No. 92-161. amending the Police Department Budget to provide
full-time DMV Clerk services, was approved;
H. Resolution No. 92-164. appropriating funds for the purchase of new trash
receptacles for the downtown area, was moved to the regular meeting agenda as Item
No.ll.C.6.;
I. Jamin, Ebell, et.al., invoice for Exxon litigation legal services totalling $28.03
was approved for payment;
J. Request for authorization to waive standard lease procedures and require
that Meehan By-Products post a $2,000 security deposit prior to initiation of lease
negotiations was approved;
K. Application for games of chance and skill permit as filed by Ducks
Unlimited was noted for information;
1. Informational memorandum regarding APUC tax on regulated utilities was
noted; and
M. List of purchase orders totalling between $5,000 and $10,000 issued through
September 16, 1992, was noted for information.
9. PUBLIC HEARINGS
A. Proposed disposal of aiI:port property. Notice of public hearing as posted
and published as required by law regarding the proposed disposal by quitclaim of all city
interest in Lot 14, Section 35, Township 1 North, Range 1 West, Seward Meridian, to the
Alaska Department of Transportation and Public Facilities for airport uses was noted, and
the public hearing was opened. No one appeared in order to be heard, and the public
hearing was closed.
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Anne Castellina. Planning Commission Applicant. Castellina stated that
she had resided in Seward for four years and had 20 years' experience with the National
Park Service. She also stated that she had been a member of the Manatee County
Historic Commission and had been involved in planning within a number of the federal
parks and national historic districts. She stated that she felt it was important that the city
work closely with those controlling the public lands surrounding the corporate limits of
the city and added that she could provide this link.
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B. Leo Wakefield. Planning Commission Applicant. Wakefield stated that he
had resided in Seward for 2-1/2 years and had been in the business of selling real estate
for the past 20 years and had worked in construction prior to that. He stated that he was
interested in participating in the planning of future growth, particularly as that growth
related to the B Street Dock.
11. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending SCC f 13.01.025 to allow the use of salt
and calcium chloride compounds on city sidewalks.
Notice of public hearing as published and posted by law was noted, and the public
hearing was opened. No one appeared in order to be heard, and the public hearing was
closed.
Crane moved to enact Ordinance No. 92-19; the motion was seconded by White
and carried by unanimous vote.
2. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City. of Seward,
Alaska, amending SCC f 14.15.515, electrical line extension
construction for large general service and small general
service customers.
Notice of public hearing as published and posted by law was noted, and the public
hearing was opened. No one appeared in order to be heard, and the public hearing was
closed.
White moved to enact Ordinance No. 92-20; the motion was seconded by Crane
and carried by unanimous vote.
Co Resolutions
1. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
1
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Volume 28, Page 182
A Resolution of the City Council of the City of Seward,
Alaska, qUItclaiming all city interest in Lot 14, Section 35,
Township 1 North, Range 1 West, Seward Meridian, to the
Alaska Department of Transportation and Public Facilities.
Crane moved to approve Resolution No. 92-146; the motion was seconded by
White and carried by unanimous vote.
2. Resolution No. 92-162, approving a settlement agreement with Larry
Richard and appropriating funds, was DELETED from the agenda.
3. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving a temporary tariff for the SMIC syncrolift.
Crane moved to approve Resolution No. 92-165; the motion was seconded by
White.
Crane asked for clarification of the insurance requirement and asked if the city was
covered given the fact that Seward Ship's Chandlery had refused to sign the use
agreement. Schaefermeyer stated that the proper insurance was in place.
In response to a question from Bencardino, Schaefermeyer stated that the syncrolift
facility operated under a tariff filed with the Federal Maritime Commission, and the
Council was obliged under federal law to enforce its tariffs and was prohibited from
charging a user under a tariff that had been repealed. He stated that this resolution
would set the annual availability fee and would provide for monthly payments of the fee
rather than quarterly payments. He noted that, unless the Council adopted another
tariff, the city was legally obliged to collect under this tariff to conform to federal law.
Schaefermeyer further noted that, from a financial standpoint, the harbor budget was
adopted with revenues based on this tariff, and any change would require an
amendment to that budget since it would no longer receive anticipated revenues.
The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
A Resolution of the. City Council of the City of Seward,
Alaska, appropriating funds for the acquisition of a Hi-Cube
van, a used cab for a rescue vehicle and a 3,000 gallon water
tanker.
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Bencardino moved to approve Resolution No. 92-166 SUBSTITUTE; the motion
was seconded by Crane and carried by unanimous vote.
5. Copies having been made available to the puolic, Krasnansky noted
by title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving Change Order No.2 to the CH2M Hill
contract to provide project management services during
construction of the Lowell Point Sewage Lagoon.
White moved to approve Resolution No. 92-159; the motion was seconded by
Crane.
Bencardino asked why the city was paying the contractor to inspect its own work.
Schaefermeyer stated that the engineering agreement with CH2M Hill was for design
only, not project management. He explained that this change Oi'der would amend the
contract to allow CH2M Hill to perform project construction management and inspection
of the work to be done by Construction and Rigging.
Engineering and Utilities Manager Diener stated that the contract with CH2M Hill
contained very strong language holding the design firm responsible for any failure of the
Lagoon, and in order to preserve the city's rights under this clause of the design contract,
it was imperative that the designer perform the inspection and construction management.
He stated that any other arrangement could invalidate this provision in the contract since
the designer could then claim that failure resulted from construction errors, not design
errors.
The question was called, and the resolution was approved by unanimous vote.
6. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds for the purchase of new trash
receptacles for the downtown area.
Crane moved to approve Resolution No. 92-164; the motion was seconded by
White.
Crane moved to postpone action on the resolution until October 12, 1992; the
motion was seconded by Bencardino and carried by unanimous vote.
7. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
( C Sf 155290 )
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A Resolution of the City Council of the City of Seward,
Alaska, amending the city's PERS Participation Agreement
to allow Seward General Hospital to execute a separate
participation agreement.
White moved to approve Resolution No. 92-160; the motion was seconded by
Bencardino.
Krasnansky stated that he was concerned about a reference in the last Hospital
Board Packet to a letter from an officer of PERS and stated that he would like to see a
copy of the letter before acting on this resolution. He added that, in 1986, when the
hospital was included in PERS, monies were taken from the hospital's old retirement
fund to purchase prior service credit for its then current employees. He stated that he
would like a report on the status of the PERS pay back for hospital employees before
acting on the resolution.
Krasnansky moved to postpone action on the resolution until October 26, 1992,
at which time the requested documentation was to be made available to the Council;
the motion was seconded by White and carried by unanimous vote.
12. UNFINISHED BUSINESS None
13. NEW BUSINESS
A. Appointment of Planning Commissioner. Krasnansky asked for
concurrence of the Council to appoint Leo Wakefield to the Planning Commission.
Bencardino objected, stating that Castellina had been a member of the community longer
and was the better applicant.
Krasnansky appointed Anne Castellina to serve as a member of the Seward
Planning and Zoning Commission for a term to expire in February 1994. There was no
objection from the Council.
B. Claim for damages totalling $122.00 as filed by Eric L. Kranke on behalf
of Susan Richards.
Crane moved to forward the claim for damages totalling $122.00 as filed by Eric
L. Kranke on behalf of Susan Richards to the city's insurance adjuster; the motion was
seconded by White and carried by unanimous vote.
C. Claim for damages in an unspecified amount as filed by Fireman's Fund
Insurance Company on behalf of Teff and Tenny Austin.
White moved to pay damages to Austin as requested; the motion was seconded
by Crane and FAILED with all present voting NO.
1
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D. Claim for damages totalling $316.81 as filed by Ann Adkins on behalf of
her husband Kyle. O. Adkins.
White moved to forward the claim for damages totalling $316.81 as filed by Ann
Adkins on behalf of her husband Kyle O. Adkins to the city's insurance adjuster; the
motion was seconded by Crane and carried by unanimous vote.
14. CITY MANAGER REPORTS
SCHAEFERMEYER read a letter from the Department of Transportation and
Public Facilities regarding the removal of alders along Third Avenue and the Seward
Highway which stated that the decision to remove the alders had been made by the
state, not the city. He also noted that he had provided the Council a memorandum
regarding the SMIC environmental baseline survey, and he stated that this would be
forwarded to Seward Ship's Chandlery with instructions to comply. Schaefermeyer
reported that he had supplied the Council with an informational memorandum regarding
inspection of two drydock naval pontoons in Astoria, Oregon which revealed that initial
indications were that the pontoons appeared to be in reasonably good condition. He
stated that he anticipated receiving a complete report within the next 10 days and would
be coming forward with a recommendation at that time.
SCHAEFERMEYER stated that there were still some objections from either the
state or federal fish & wildlife agencies regar:ding the planned earth-filled embankment
at the B Street Dock. He noted that these agencies would rather see a pile supported
dock, but this would increase the cost of the project substantially. He added that this
was still subject to Corps of Engineers determination, and these objections would not
necessarily adversely affect the city's permit application.
SCHAEFERMEYER stated that he wished to make it clear that the timing of the
placement of Resolution No. 92-162 (Richard settlement agreement) on the agenda was
not an attempt by the administration to affect the political process. He read the letter the
city had received from Richard's attorney on Tuesday, September 22nd. He stated that
he was not free to comment on the substance of the issue, but it was appropriate that the
public hear the letter so that the public did not believe that he had placed this on the
agenda to affect the outcome of the election. He stressed that the timing of this agenda
item was determined solely by Richard and his attorney.
The Council instructed the Clerk to call a special meeting to begin at 5:00 p.m.
on Wednesday, September 30,1992, in order to consider action on Resolution No. 92-
162.
Schaefermeyer noted that the Regional Director of the Department of Transporta-
tion would be conducting a public meeting at 5:00 p.m., September 29th, in the Council
Chambers to discuss upcoming road closures. He urged the Council and public to
attend.
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City of Seward, Alaska
September 28, 1992
City Council Minutes
Volume 28, Page 186
15. COUNCIL DISqJSSION
BENCARDINO asked about the holes in the pavement on Third Avenue. Diener
stated that he had talked to the state Department of Transportation last week and had
been assured that the contractor would be fixing the holes shortly. He noted that the
contractor did not have proper rings to fix the holes when the paving was originally
done.
BENCARDINO stated that he was glad that Gates had brought up the possibility
of purchasing the dry docks from Astoria.
WHITE reminded everyone of the election on October 6th and encouraged
everyone to vote.
CRANE noted the petition regarding the fees charged nonresidents of the city to
participate in Parks and Recreation Department programs. Schaefermeyer stated that the
administration proposed to bring this matter to the Council at its next regular meeting
with a recommendation to rescind the fee differential. Crane thanked those who had
brought this to the Council's attention. He also thanked the Alaska Railroad and the
Seward Chamber of Commerce for the free train ride and picnic. He requested that a
letter of thanks be sent to the Railroad and the Chamber.
KRASNANSKY stated that he agreed that the city should not charge increased
fees to those residing outside the city limits. He also noted that the city had received a
letter from Princess Tours asking about the B Street Dock. Schaefermeyer stated that
preliminary information had been received from the engineers inspecting the Astoria
pontoons and he hoped that the city would be able to use them to save money on the
9.5 Million Dollar. project.
SCHAEFERMEYER noted a letter from Princess Tours regarding plans for the 1993
season and including a request that the city participate in the cost of constructing a
dolphin structure estimated to cost approximately $125,000 off the railroad pier to allow
Princess to safely berth its ships. Schaefermeyer stated that the Alaska Railroad would
pay a portion of the project; however, he would rather see the city put its money into
the B Street Dock. Schaefermeyer further noted that, although the city did not receive
any direct revenue from the operations of the Railroad Dock, other areas of the
community did benefit. In addition, Princess had dedicated three ships to call on Seward
beginning in 1993 with a total of 51 calls next season. He stated that virtually all of those
passengers coming into Seward would be disembarking here, and a number of arriving
passengers would be in town for several hours before embarking on the return voyage.
16. CITIZENS' DISCUSSION
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DON WHITMAN, 535 Sixth Avenue, stated that the Bartlett had docked in
Seward on Thursday and would be hauled out on September 29th. He stated that he
hoped the city and the community would make the crew feel welcomed. Whitman
further stated that Seward Ship's Chandlery had taken action on the preliminary
environmental baseline survey, adding that he hoped the city was also responding
diligently to spills on property under its control.
WALT SZCA WINSKI, 611 Monroe, commented on city legal fees and noted that
incumbent Councilmembers were unable to correctly answer his questions regarding the
Seward Ship's Chandlery arbitration at the recent "Meet the Candidates Night".
BOB VALDATTA, 528 Fifth Avenue, asked why he was not considered for a
recent temporary city job and asked how the city determined who was to be hired for
these positions.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SCHAEFERMEYER, responding to Valdatta, stated that Diener had approached
the city Personnel Clerk for a temporary employee to perform inspection work. He noted
that Valdatta did not have a current application on file with the city. The Personnel
Clerk went through those applications on file and recommended an applicant to Diener.
KRASNANSKY, responding to Szcawinski, stated that his answer to the
arbitration question had been based on what he had been told by the administration, and
he felt he had given a correct answer.
SCHAEFERMEYER, responding to Whitman, stated that the city was complying
with the Department of Environmental Conservation in removing spills on city property
whether the spills had been caused by the city or by others on city property.
18. ADJOURNMENT
The meeting was adjourned at 9:30 p.m.
James Kra:ma
Acting-Mayor
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City of Seward, Alaska
September 30, 1992
City Council Minutes
Volume 28, Page 188
1. CALL TO ORDER
The September 30, 1992, special meeting of the Seward City Council was called to
order at 5:07 p.m. by Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Krasnansky led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Beverly Dunham, presiding, and
Dave Crane James Krasnansky
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Lind.a S. Murphy, City Clerk
ABSENT were:
Louis Bencardino (excused) and Karen Swartz (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Crane.
Dunham moved to meet in Executive Session immediately following the close
of the special meeting to discuss litigation; the motion was seconded by Krasnansky
and carried by unanimous vote.
The question was called on the main motion, and the special meeting agenda
was approved by unanimous vote.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Copies having been made available to the public, Dunham noted by title
only a proposed resolution entitled: (
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A Resolution of the City Council of the City of Seward,
Alaska, approving a settlement agreement with Larry
Richard and appropriating funds.
Krasnansky moved to approve Resolution No. 92-162; the motion was seconded
by Crane.
Schaefermeyer noted that he and the city attorney recommended approval of the
resolution and both felt that this settlement was in the best interest of the city. He stated
that most of the Council' had previously had the benefit of a legal analysis of the claim
and the issues involved.
Dunham moved to amend the resolution by changing the word "would" in the
ninth Whereas Clause to "could" and changing the word "would" in the last Whereas
Clause to "might"; the motion was seconded by White.
Krasnansky stated that the Council should not toy with the wording. He stated
that the word "would" had a very specific meaning; otherwise, the city attorney would
have used a different word. He added that "would" was a stronger word and much
more definitive.
Dunham stated that she had serious problems with those two words because she
did not necessarily believe the phrases as written.
Schaefermeyer stated that Arvidson was the drafter of the resolution, but he
(Schaefermeyer) did not object to the suggested changes. He stated that he would prefer
the original language, but would not oppose the proposed changes.
Krasnansky stated that it was not good public policy to second guess legal advice.
The question was called, and the amendment FAILED with Crane, Dunham and
White voting YES and Krasnansky voting NO.
The question was called on the main motion, and the resolution was approved
by unanimous vote.
7. CITY MANAGER REPORTS
SCHAEFERMEYER noted that the Department of Transportation had conducted
a public meeting on Tuesday evening and it had been well attended. Discussed at the
meeting was DOT's six year plan and a discussion of federal funds coming to the state
and the Kenai Peninsula over the next few years.
8.
COUNCIL DISCUSSION
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September 30, 1992
City Council Minutes
Volume 28, Page 190
CRANE stated that elected officials had to deal with many difficult matters and
the decision to settle with Richard was one of the more difficult ones to come before the
Council in the past year. He stated that he took his position as a Councilmember
seriously and always endeavored to take actions that he thought would be in the best
interest of the community.
KRASNANSKY stated that employer/employee relationships were touchy enough
when all the rules were followed. He stated that it was important to have effective
administrative handling of employee complaints so that public employees could be
assured that they would be treated fairly and that they were protected by local, state and
federal laws. He stated that the Richard settlement was the end result of an extreme
situation that got out of hand and he hoped that it never happened again.
DUNHAM asked if, in response to new regulations, Seward gas prices were going
to go up like those in Anchorage and the Valley. Schaefermeyer stated that he did not
believe this would happen. Dunham asked the newspaper to investigate.
DUNHAM stated that she did not agree with a few of the words in the resolution
and had been reluctant to vote for a settlement, but the general public was not aware of
all of the information given to Council before making decisions such as this one. She
stated that she feared that the city was setting a precedent, but she could see no other
alternative at this point.
DUNHAM stated that she hoped the next term for the new Council would be a
good one and she hoped that Council and the administration could work well together.
She also stated that she did not think any Councilmember had ever done anything
except that which they thought at the time was the right thing to do.
9. CITIZENS' DISCUSSION None
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
u. ADJOURNMENT
The meeting was adjourned at 5:32 p.m., and after a short recess, the Council
reconvened in Executive Session to discuss litigation.
~ ~i)u~~
'Beverly Dunhtm
Mayor
( CSE 155297 1
(City Seal)
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City of Seward, Alaska
October 7, 1992
City Council Minutes
Volume 28, Page 191
1.
CALL TO ORDER
The October 7, 1992, special meeting of the Seward City Council was called to
order at 4:00 p.m. by Mayor Beverly Dunham.
2. OPENING CEREMONY
Councilmember Bencardino led the pledge of allegiance to the flag.
3. ROLL CALL There were present:
Beverly Dunham, presiding, and
Louis Bencardino Dave Crane
James Krasnansky Karen Swartz
comprising a quorum of the Council; and
Linda S. Murphy, City Clerk
Patricia Jones, Deputy City Clerk
ABSENT was:
Dale White (excused)
4.
APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by Swartz and carried by unanimous vote of the Council.
5. NEW BUSINESS
A. Canvass of October 6, 1992. Regular Municipal Election. The Clerk noted
that the city had conducted a regular municipal election on Tuesday, October 6, 1992, at
which 492 voters had cast city ballots. Murphy noted that she had displayed the precinct
registers, questioned voter and absentee voter logs and the unofficial results of the
election. She noted that the Counting Center had counted the ballots of 481 voters who
were properly registered in time for the election and whose names appeared on the
precinct registers. Eleven voters had been required to cast questioned ballots because
their names did not appear on the precinct registers.
Murphy distributed a list bearing the names of the 59 electors who had requested
absentee ballots. She noted that 55 of the requested ballots had been returned to the city
in time to be considered by the Canvass Board and all 55 were cast by qualified electors
of the city. She recommended that the Canvass Board count the ballots cast by the
following voters: (
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City of Seward, Alaska
October 7, 1992
City Council Minutes
Volume 28, Page 192
Precinct No.1
Precinct No.2
Dane R. Amos
Columbia Beans
Marilyn M. Bennett
Don R. Bertolette
Ruth O. Bomstead
Matthew R: Callahan
Wayne Carpenter
Jackie W. Dyer
Shirley A. Dyer
Bruce W. Faulkner
Jeanne Galvano
Harry E. Gieseler
Fanny S. Harley
Drew Hayes
Alton W. Hopkins, Sr.
Christine E. Hopkins
Mark Kansteiner
Serena Keith
Eric Landenburger
Patricia Linville
Robert G. Linville, III
Larry M. Marttila
Catherine McMillan
Doherty M. Miller
Robert L. Miller
William R. Moore
Carla S. Norman
Donald J. Oldow
Pamela F. Oldow
Joyce E. Pollard
Timothy J. Pollard
Marilyn A. Reynolds
Donald Stace
Karen A. Swartz
Robert D. Swartz
Elsie Whitmore
John C. Anderson III
Margaret Anderson
Sharon E. Anderson
Judi Andrijanoff
Nancy A. Blair
William G. Blair
Ethel C. Bottcher
C. Keith Campbell
Barbara J. Dieckgraeff
Frank Dieckgraeff
Shirley A. Hill
Duane Kapp
Eleanor A. McDonald
William S. McDonald
Troy C. Sanders, Jr.
Dennis M. Scholl
Karen F. Scholl
Shannon R. Skibness
Stephanie L. Wilson
Krasnansky moved to accept the Clerk's recommendation to count the 55
absentee ballots; the motion was seconded by Bencardino and carried by unanimous
vote of the Council.
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As Dunham read the names on the absentee ballot envelopes, Crane opened the
outer envelopes, removed the inner envelopes and set them aside to be opened later in
the meeting.
Murphy distributed a list of persons casting questioned ballots on election day.
She stated that eleven questioned ballots had been cast by voters whose names did not
appear on the precinct registration lists. She recommended that the Canvass Board reject
10 of the questioned ballots as follows:
Precinct No.1
Steven Barnes (Registered in Bear Creek)
Barbara Brinke (No record of voter registration)
SuAnn Fernandez (Registered in Bear Creek)
Raymond V. Moyes (Registered in Anchorage)
Donald D. Nelson (Purged/Inactive Status; most recently registered in Barrow)
David Werner (No record of voter registration)
PRECINCT NO.2
Debra A. Bond (No record of voter registration)
Gary G. Byrnes (No record of voter registration)
Thomas E. Rupe (Registered in Eielson)
Jon Zehrung (Registered in Beat Creek)
Swartz moved to accept the Clerk's recommendation to reject the ten ballots; the
motion was seconded by Krasnansky and carried by unanimous vote.
Murphy put the rejected ballots aside for safekeeping.
Murphy stated that one of the questioned ballots had been cast by qualified voters
of the city, and she recommended that the board count the ballot cast by the following:
Precinct No. 1
Jeanette M. Hall (Name was not in proper form on computer list)
Krasnansky moved to accept the Clerk's recommendation to count the one
questioned ballot; the motion was seconded by Swartz and carried by unanimous vote.
As Dunham read the names on the questioned ballot envelopes, Crane opened the
outer envelopes, removed the inner envelopes and put them aside with the waiting
absentee envelopes. The inner envelopes were then shuffled and opened by Crane. The
ballots were removed and read aloud by Dunham as Deputy Clerk Jones and City
( CSE 155300 1
Murphy stated that any defeated candidate or any 10 qualified voters could protest
the election by filing a written complaint with the City Clerk prior to 5:00 p.m., Monday,
October 12, 1992. She added that if no such protest was filed, the City Council would
certify the election as valid and declare the results official at its October 12, 1992, regular
meeting.
6. COUNCIL DISCUSSION None
7. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COMMENTS: None
8. ADJOURNMENT:
The meeting was adjourned at 4:40 p.m.
Id~B~
Beverly Dunnam
Mayor
1
(City Seal)
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City of Seward, Alaska
October 12, 1992
City Council Minutes
Volume 28, Page 195
1.
CALL TO ORDER
The October 12, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Acting Mayor James Krasnansky.
2. OPENING CEREMONY
Sandra Wassilie led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
James Krasnansky, presiding, and
Louis A. Bencardino
Karen A. Swartz
Dave Crane
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
ABSENT were:
Beverly Dunham (Excused)
4a. APPROVAL OF MINUTES
Crane moved to approve the September 28, 1992, regular meeting minutes and
the September 30 and October 7, 1992, special meeting minutes as presented; the motion
was seconded by Bencardino and carried by unanimous vote.
4b. SPECIAL ITEMS
A. Proclamation - Alzheimer's Disease Month (November 1992). Krasnansky
noted and read the proclamation.
B. Proclamation - Domestic Violence Awareness Month and Sexual Assault
Awareness Month (October 1992). Krasnansky presented the proclamations to Rachel
James, SLAC representative.
Co Proclamation - National Business Women's Week (October 18-24.1992).
Krasnansky presented the proclamation to BPW Vice President Sandy Wassilie.
. ( CSE155JOZ 1
City of Seward, Alaska
October 12, 1992
City Council Minutes
Volume 28, Page 196
D. Certification of the October 6. 1992, regular election. White moved to
certify the October 6, 1992, regular city election and to declare the results thereof valid;
the motion was seconded by Swartz and carried by unanimous vote.
E. Swearing in and seating of newly elected Councilmembers. The Clerk
administered the Oath of Office to re-elected Councilmembers Louis Bencardino and
James Krasnansky and newly elected Councilmember Bruce Sieminski. Sieminski took
his seat at the dais and participated in the remainder of the meeting.
F. Designation of Acting Mayor. Swartz moved to designate Krasnansky as
Acting Mayor until the full Council was seated; the motion was seconded by Sieminski
and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Swartz.
Schaefermeyer asked to move Consent Calendar Item H to New Business.
Krasnansky moved to meet in executive session to discuss a legal matter (the
open meetings act); the motion was seconded by Swartz and carried by unanimous vote.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Jonathan Sewall was not present and
no report was given.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
WALT SCZAWINSKI, 611 Monroe Street, asked for an explanation of attorney
fees totalling $19,000 in August for "Kodiak Lumber vs. city of Seward." He stated that
he had never heard of this particular matter and suggested that any matter requiring the
expenditure of legal funds in such a large amount should be communicated to the public.
Krasnansky stated that Kodiak Lumber was more commonly known in Seward as
"Afognak Logging". Arvidson noted that the lawsuit had been going on for three years
and was included in monthly reports to the Council. He added that the city was being
defended by insurance defense counsel; however, in August both Tans and Arvidson
were deposed by opposing counsel for a total of 7 days.
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8.
APPROVAL OF CONSENT CALENDAR
White asked to move Item E to Resolutions. Krasnansky asked to move Item K
to New Business.
Crane moved to approve the Consent Calendar as amended; the motion was
seconded by Swartz and carried by unanimous vote. The following actions were taken:
A. Resolution No. 92-167. appropriating funds and establishing a revenue fund
account for the Historic Preservation Plan, was approved;
B. Resolution No. 92-168, requesting Municipal Assistance funding from the
state of Alaska, was approved;
C. Resolution No. 92-169. authorizing the destruction of ballots from the
October 1991 regular election, was approved;
D. Resolution No. 92-170. transferring funds from the Street Department to the
Motor Pool Fund, was approved;
E. Resolution No. 92-171, accepting a state grant for Lowell Point Sewage
Lagoon sludge removal and disposal and lagoon repair, was moved to the regular
meeting agenda;
F. Resolution No. 92-172. approving a contract with Seward Aluminum
Fabrication for meter reading services, was approved;
G. August 1992 invoice for legal services totalling $32,732.50 as submitted by
Perkins Coie and attendant legal budget transfers was approved;
H. Request to reschedule November Council meetings was moved to the
regular meeting agenda;
1. Change Order No.3 to the International Steel Erectors contract for prison
window repair (No cost item) was approved;
J. Letter of commendation for Dispatcher Sheila Squires was noted for
information; and
K. Memorandum from Parks & Recreation Director regarding rescinding non-
resident fees was moved to the regular meeting agenda.
90
( C SE 155304 )
PUBLIC HEARINGS None
10.
PRESENTATIONS WITH PRIOR NOTICE ONLY
198
City of Seward, Alaska
October 12, 1992
City Council Minutes
Volume 28, Page 198
11. ORDINANCES 'AND RESOLUTIONS
A. Ordinances for Introduction
1. Copies having been made available,to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code ~. 3.45.075, Leave
Without Pay.
Swartz moved to introduce proposed Ordinance No. 92-21; the motion was
seconded by Bencardino. The question was called, and the ordinance was introduced
by unanimous vote. Public hearing was scheduled for October 26, 1992.
2. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code f 3.20.010, Recruitment
Policy.
White moved to introduce proposed Ordinance No. 92-22; the motion was
seconded by Crane. The question was called, and the ordinance was introduced by
unanimous vote. Public hearing was scheduled for October 26, 1992.
3. . Copies haviI)g been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code f 3.40.060, Discrimina-
tion and Reprisals.
Crane moved to introduce proposed Ordinance No. 92-23; the motion was
seconded by Swartz. The question was called, and the ordinance was introduced by
unanimous vote. Public hearing was scheduled for October 26, 1992.
B. Ordinances for Public Hearing & Enactment
C. Resolutions
1. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled: ()
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A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds for the purchase of new trash
containers for the downtown area.
Murphy noted that action on this resolution had been postponed from the last
meeting and there was a motion to adopt on the floor.
Crane moved to postpone action on Resolution No. 92-164 until December 14,
1992; the motion was seconded by Bencardino.
In response to a question from Swartz, Crane stated that some of the local groups
involved wished to have some involvement in selecting the types of trash cans
recommended.
Sieminski asked if the old trash cans were to be repaired before putting them in
the Small Boat Harbor. Schaefermeyer stated that the usable ones and those which could
be repaired would be placed in the Boat Harbor. He stated that all repair work would
be done in-house.
The question was called, and Resolution No. 92-164 was postponed until
December 14, 1992.
2. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, accepting a state grant for Lowell Point Sewage
Lagoon sludge removal and disposal and lagoon repair.
White moved to approve Resolution No. 92-171; the motion was seconded by
Bencardino.
White noted a grant condition on Page 39 of the packet which should have been
made a part of the resolution.
White moved to amend the resolution by adding a new Section 2 to read "The
City hereby accepts the responsibility to operate and maintain the sewer improvement
and agrees to the terms and conditions of this grant"; the motion was seconded by
Bencardino and carried by unanimous vote.
The question was called on the main motion, and the resolution was approved
as amended by unanimous vote.
12.
( CSE155306
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UNFINISHED BUSINESS
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October 12, 1992
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Volume 28, Page 200
13. NEW BUSINESS.
A. Claim for damages totalling $348.66 as filed by Corazon Hog. Swartz
moved to refer the claim filed by Corazon Hog to the city's insurance adjusters; the
motion was seconded by White and carried by unanimous vote.
B. Appointment of three Community Hospital Board Members. Krasnansky
appointed Hilmer Kiser to a three-year term on the Community Hospital Board; there
was no objection from the City Council.
Krasnansky appointed George Tuthill to a three-year term on the Community
Hospital Board; there was no objection from the City Council.
Krasnansky appointed Michael Moore to a three-year term on the Community
Hospital Board; there was no objection from the City Council.
C. Appointment of Council Representative to the Community Hospital Board.
Krasnansky noted that Crane had served in this position for the past year. Crane
suggested that this matter be deferred until there was a full Council.
The Clerk 'was instructed to schedule this appointment for the next regular
meeting of the Council.
D. Appointment of Councilmember. Sieminski nominated Hugh Darling to
serve on the City Council for a term to expire in October 1993; the motion was
seconded by Bencardino.
White stated that the public had supported Dickson at the last election, and by
appointing someone else, the Council was telling voters that they had wasted their votes.
Krasnansky stated that the public assumed that the next highest vote getter would
be appointed; however, this was not a requirement under the City Code.
The question was called, and Darling was appointed to the City Council with
Bencardino, Crane, Sieminski and Swartz voting YES and Krasnansky and White voting
NO.
E. Request to reschedule November Council meetings. Schaefermeyer stated
that there were many scheduling conflicts in November including the AML conference
the week of the 9th, the Seward Ship's Chandlery arbitration the week of the 16th, and
the planned trip to Japan beginning the week of the 23rd. He stated that the
administration had initially recommended rescheduling the 9th's meeting to November
16th. However, on the 16th, he and Arvidson would be in Anchorage participating in
the Pruitt arbitration. He recommended scheduling only one Council meeting in
November to be held on the 30th. When it was discovered that Crane, Darling and
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White would be in Japan on the 30th and Swartz would be out of town, Schaefermeyer
suggested canceling all regular meetings in November with the understanding that
special meetings would be scheduled as needed to transact the city's business. Swartz
stated that at least one meeting should be scheduled.
Bencardino moved to meet only once in November, on November 16, 1992; the
motion was seconded by Swartz and carried by.unanimous vote.
F. Parks and Recreation Department nonresident fee suspension. Krasnansky
noted that he had received several calls regarding the nonresident fees which had now
been rescinded. He stated that he had pulled this item from the Consent Calendar to let
the public know that the city was no longer charging nonresidents higher fees for
participation in Parks and Recreation Department programming.
14. CITY MANAGER REPORTS
SCHAEFERMEYER reported that the previously announced refunding of the
prison would not occur as planned. He stated that a review of the previous refinancing
documents had revealed a transfer of proceeds penalty which made refinancing less
desirable than it had been thought initially. Schaefermeyer also noted that the city had
recently commissioned a Canadian firm to compare the cost of shipping coal from Seward
with other ports in Alaska. He stated that the report found that, given current coal
export volume, the fixed cost of a new terminal at Pt. McKenzie would exceed any
savings in rail shipment fees making Seward the most cost effective port for moving coal
from Alaska. He added that the report indicated that it would take 7 million tons of
exported coal per year to make the development of Pt. McKenzie cost effective.
Schaefermeyer stated that this information had been made available to the state and had
been incorporated in the draft Southcentral Port Study.
Responding to question raised in the past couple of Council meetings regarding
the holes in the pavement on Third Avenue, Schaefermeyer stated that the paving
contractor had come to Seward last week, but was unprepared to accomplish the work
in a satisfactory manner. He stated that he had written to the director of maintenance
for the central region of the Department of Transportation bringing this matter to his
attention once again.
ARVIDSON presented a status report on the Pruitt arbitration and stated that the
city should receive a ruling from the arbitrator by Christmas.
15. COUNCIL DISCUSSION
BENCARDINO asked if the city had approached the Senior Center regarding
placement of the head start program in its facility. Yanez stated that the city was
awaiting information from the state office outlining the minimum requirements for the
program before proceeding. r)
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City of Seward, Alaska
October 12, 1992
City Council Minutes
Volume 28, Page 202
BENCARDINO stated that he had received inquiries regarding approximately
1,000 books which Seward had received from the Juneau library and which were now
being sent to the North Slope. He asked why these books were not being used locally
or given to Moose Pass for its library. Schaefermeyer stated that he would look into this.
. ,
BENCARDINO asked for a status report on the treatment plant repair and
construction. Arvidson stated that the contractor removing the sludge had run into
substantial problems, and construction could not start until the sludge was removed. He
stated that the city had been reluctant to start the job this close to winter, but the
Department of Environmental Conservation had been intent on beginning the repair this
Fall.
BENCARDINO asked for a status report on elevator construction at City Hall.
Schaefermeyer noted that monies had been appropriated by the Legislature to the Alaska
Court System and the Alaska Department of Administration for the elevator. He noted
that the funds would be transferred to the Department of Transportation (DOT), and
DOT would enter into a Transfer of Responsibilities Agreement (TORA) with the city so
that the city could construct the elevator. He added that he hoped to bring the TORA
to the Council for approval soon. In response to a question from Bencardino,
Schaefermeyer stated that the original grant had been used to make various improve-
ments throughout the building including handicap-accessible restrooms, construction of
ramps and accesses to the building, non-skid floor coverings (carpet) and an electronic
door at the west entrance.
SWARTZ stated that she was visited by a constituent who was concerned about
the name of the old cemetery in Camelot. She stated that the cemetery was originally
named Woodlawn; however the newspaper article regarding its renovation referred to
it as Railroad Cemetery. She stated that her constituent had wished to express thanks
to those volunteers who had worked on the clean-up and restoration, but she was
hopeful that the original name would not be lost. Swartz also bemoaned the condition
of Alaska's public roads.
CRANE welcomed Sieminski, Krasnansky, Bencardino and Darling to the Council.
WHITE welcomed the new hospital board members as well as newly elected
Councilmember Sieminski and appointed Councilmember Darling. He also thanked
Dunham for her six years of service on the Council.
KRASNANSKY stated that he was still concerned about incentive leasing and
asked that this issue be scheduled for the next Council meeting. He thanked everyone
who ran for office.
16.
CITIZENS' DISCUSSION
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BOB VALDAITA, 528 Fifth Avenue, stated that he had talked to Mike Meehan
the other day and he suggested that the Council take a look a~ what was happening at
the meal plant. He stated that Meehan was marketing his products as far away as the
East Coast.
17. COUNCIL -& ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
BENCARDINO concurred with Valdatta and stated that any local business trying
to enhance itself should be supported by the city and the Council. He stated that it was
tough to be in business for yourself and struggling and the city should make an effort
to help local businesses.
18. ADJOURN.MENT
The meeting was adjourned at 8:45 p.m., and, after a short recess the Council
reconvened in Executive Session to discuss the Open Meetings Act.
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City of Seward, Alaska
October 16, 1992
City Council Minutes
Volume 28, Page 203
1. CALL TO ORDER
The October 16, 1992, special meeting of the Seward City Council was called to
order at 12:02 p.m. by Acting Mayor James Krasnansky.
2. OPENING CEREMONY
Engineering & Utilities Manager Diener led the pledge of allegiance to the flag.
3. ROLL CALL There were present:
James Krasnansky, presiding, and
Louis Bencardino
Bruce Sieminski
Dale White
Dave Crane
Karen A. Swartz
( CSE155310 )
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City of Seward, Alaska
October 16, 1992
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Volume 28, Page 204
Darryl Schaefermeyer, City Manager
Michael Y~nez, Assistant City Manager
Linda S. Murphy, City Clerk
4. APPROVAL OF SPECIAL MEETING AGENDA
Swartz moved to approve the Special Meeting Agenda as presented; the motion
was seconded by Crane and carried by unanimous vote.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Copies having been made available to the public, Krasnansky noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, terminating for convenience the contract with Alaska
Boiler and Heating for Lowell Point Sewage Lagoon sludge
removal.
White moved to approve Resolution No. 92-173; the motion was seconded by
Crane. '
Schaefermeyer explained that the city had been working with the contractor for
several days regarding the problems he had experienced in performing the contract work.
He stated that the contractor had asked to be relieved of this job because he (the
contractor) felt that completion of the contract was not feasible. Schaefermeyer stated
that the city did not agree with this position, and, in fact, the second lowest bidder
(VRCA) was prepared to commence work on the job the following day.
Schaefermeyer stated that it was imperative that the sludge removal be completed
this season in order that the construction contractor could begin his work as soon as
possible to meet the EPA imposed October 1993 deadline for making the treatment plant
fully operational. In order to allow VRCA to proceed, it was, therefore, necessary to
terminate the contract with AB&H as quickly as possible.
Schaefermeyer noted that a termination of the contract for cause would involve
a lengthy and expensive legal battle and would delay the project for several months.
Therefore, the most cost effective method of proceeding was to terminate the contract for
convenience as requested by AB&H, paying to the contractor the amount he had earned
under the contract to this point. In response to a question from White, Diener indicated
that the termination cost was estimated to be approximately $199,000.
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I
In response to a question from Bencardino, Diener stated that it was standard
procedure for the city to ascertain that all local vendors and employees had been fully
paid before making final payment on a contract. He added that all contractors of the city
were also required to carry a payment bond to further assure that vendors and
employees were paid.
The question was called, and the resolution was approved by unanimous vote.
B. Copies having been made available to the public, Krasnansky noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract to VRCA for LQwell Point
Sewage Lagoon sludge removal.
Bencardino moved to approve Resolution No. 92-174; the motion was seconded
by Sieminski and. carried by unanimous vote.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
I
KRASNANSKY stated that when a councilmember wished to obtain public
records for any purpose other than the performance of his official duties as a council-
member, that councilmember should avail himself of the established public process.
9. CITIZENS' DISCUSSION
BOB VALDATTA, 528 Fifth Avenue, stated that he had attempted to get the city
to investigate an east coast company that specialized in the incineration of waste products
before constructing the sewage treatment lagoon.
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SCHAEFERMEYER responded that the city had investigated all possible
alternatives for the disposal of sewage before opting to construct the sewage treatment
lagoon. He noted that incineration had not been a viable option because of the
significantly higher costs involved in order to meet EP A guidelines.
11. ADJOURNMENT
The meeting was adjourned at 12:55 p.m.
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City of Seward, Alaska
October 26, 1992
City Council Minutes
Volume 28, Page 206
1. CALL TO ORDER
The October 26,1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor James Krasnansky.
2. OPENING CEREMONY
Jake Cinereski led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
James Krasnansky, presiding, and
Louis A. Bencardino
Bruce Sieminski
Dale White
Dave Crane
Karen A. Swartz
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Michael Yanez, Assistant City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Oerk
4a. APPROVAL OF MINUTES
Swartz moved to approve the October 12 and 15, 1992, meeting minutes as
presented; the motion was seconded by Bencardino and carried by unanimous vote.
4b. SPECIAL ITEMS AND PRESENT A nONS
A. Seating of New Councilmember. The Clerk administered the Oath of
Office to newly appointed Councilmember Hugh Darling. Darling took his seat at the
dais and participated in the remainder of the meeting.
B. Proclamation - Red Ribbon Week. Krasnansky presented to the Teen
Council a proclamation designating October 24 through November 1, 1992, as Red Ribbon
Week.
C. Proclamation - Oscar Watsjold Appreciation Day. Krasnansky presented
a proclamation to Oscar Watsjold designating October 26, 1992, as Oscar Watsjold
Appreciation Day.
5.
APPROVAL OF REGULAR MEETING AGENDA
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Crane moved to approve the Regular Meeting Agenda as presented; the motion
was seconded by Swartz.
White asked to add discussion of Section 2.10.050 of the City Code to New
Business, Item D.
Schaefermeyer requested an Executive Session to discuss IBEW contract
negotiations.
White moved to meet in executive session immediately following the close of
regular business to discuss the IBEW contract negotiations; the motion was seconded
by Bencardino and carried by unanimous vote.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Patrick Reilly introduced himself to
the Council and stated that the next meeting of the assembly would be his first official
meeting.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING
NANCY ORTH, 207 Third Avenue, thanked the administration for proposing the
parent/child play group. She encouraged the Council to allow the program to go
forward. She distributed a survey she had put together of similar programs in other
communities. She recommended that the Council appoint an ad hoc committee to
develop criteria for forming a parks and recreation advisory committee to review
proposed city programs. Orth also presented a petition containing fifty signatures of
those supporting city sponsored children's programs.
RUTH CINERESKI, Mile 5.5, Seward Highway, stated that she was a concerned
employee of Lit' Kritters Day Care. She stated that she had worked as a preschool
teacher in Seward for the past five years, and preschool choices were offered by Lil'
Kritters, Nana's Nuggets and Head Start. She stated that she would be one hundred
percent behind any program that was sponsored by parents; however, she could not
support a public program that charged less than similar programs offered by the private
sector. She stated that the planned city program would cause a loss of jobs in the local
private day care centers.
DIANA DAVIS, 2408 Elm Street, stated that she was concerned that local day care
centers would have to cut back on staff if their programs were undermined by public
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programs. She stated that the Parks and Recreation Department's purpose was to offer
programs unavailable in the community, not to compete with private business.
DAVID HILTON, 2404 Birch Street, asked the Council to respond to his concerns
regarding Resolution No. 92-160. He asked if the city would remain responsible for the
payment of fees for past service credit for those employees who were hired prior to
hospital participation in PERS if the hospital should ever become insolvent. He also
asked what protections long time employees had if the hospital later decided to opt out
of PERS in favor of some other retirement program.
8. APPROVAL OF CONSENT CALENDAR
Sieminski asked to move Item D to New Business as Item E. Bencardino asked
to move Item C to Resolutions as Item No.4.
Crane moved to approve the Consent Calendar as amended; the motion was
seconded by Sieminski and carried by unanimous vote. The following actions were
taken:
A. Resolution No. 92-176. approving an agreement with the Alaska Department
of Environmental Conservation for Alaska Clean Water Funds totalling $40,000 for the
Dairy Hill Plan and Design Project and appropriating the funds, was approved;
B. Resolution No. 92-177. approving a professional services agreement with
Integrity Surveys to plat a subdivision for the Fourth of July Creek area lands, was
approved;
C. Resolution No. 92-178, authorizing the city manager to contract with experts
for the Seward Ship's Chandlery arbitration and appropriating funds, was moved to the
regular meeting agenda;
D. Accounts receivable write-offs report was moved to the regular meeting
agenda; and
E. Resignation of Hugh Darling from the Trade Board was noted for
information.
9. PUBLIC HEARINGS
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Marsha Ambacher - Preschool. Marsha Ambacher, owner/operator of Lil'
Kritters Day Care Center stated that Nana's Nuggets and Lil' Kritters both offered several
preschool programs. She added that Head Start was offered for low income children and
the school system offered a program for special needs children. She stated that she did
( CSE 155315 1
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not object to all city-sponsored programs, particularly those that required parental
participation. She further stated that 65% of those enrolled in her preschool program
were children who were not enrolled in the regular day care program. She added that
while staff jobs were at stake, it was the children who could be harmed by the Council's
decision.
n. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending ~ 3.45.075, leave without pay.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
Swartz moved to enact Ordinance No. 92-21; the motion was seconded by Crane.
White stated that he could foresee some abuse to the system if insurance was
provided while an employee was on leave without pay. Schaefermeyer stated that
insurance coverage was required by the Family Leave Act. In addition, there were some
pretty strict guidelines for taking leave under the provisions of the state act.
The question was called, and the Ordinance was enacted by unanimous vote.
NOTE:
Later research revealed that the employer could require the employee to
pay all or a portion of the cost of the health insurance provided while on
leave without pay.
2. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending ~ 3.20.010, recruitment policy.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. Noone appeared in order to be heard, and the
public hearing was dosed. (
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White moved to enact Ordinance No. 92-22; the motion was seconded by Swartz
and carried by unanimous vote.
3. Copies having been made available to the public, Krasnansky noted
by title only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending ~ 3.40.060, discrimination and reprisals.
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 dosed.
Swartz moved to enact Ordinance No. 92-23; the motion was seconded by Crane
and carried by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
An Resolution of the City Council of the City of Seward,
Alaska, amending the city's PERS participation agreement to
allow Seward General Hospital to execute a separate
participation agreement.
Murphy noted that there was a motion to approve the resolution on the floor.
(The motion to approve was postponed from the September 28,1992, meeting.)
White moved to postpone action until the first meeting in December to give
Hilton a chance to have his questions answered by the hospital administration; the
motion was seconded by Swartz and carried by unanimous vote.
2. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
An Resolution of the City Council of the City of Seward,
Alaska, in support of the city's parent/child play group
program.
Crane moved to approve Resolution No. 92-175: the motion was seconded by
Swartz.
Krasnansky asked the City Manager to review the background which had led to
the placement of this item before the Council. Schaefermeyer stated that a group of
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parents had requested that the Parks and Recreation Department provide a program
similar to one offered this past summer for children ages 3 to 5 who were not enrolled
in kindergarten or preschool. He noted that, once the city decided to go forward with
such a program, local private day care providers had objected that this city-sponsored
play group would be in direct competition with the preschool programs they offered, and
they asked the city to eliminate this program from its schedule. In response to this
controversy, the administration arranged a meeting with the parents requesting the
program along with the two local licensed day care center operators. As a result of these
discussions, the administration had prepared and put before the Council a parent/child
group play program which would be limited to 10 participants and would coincide with
the adult aerobics program. He stated that one of the objectives of this program was to
provide supervised play for these children while their parents were engaged in aerobics
and to provide a program that the city thought was appropriate to be provided by the
department. He noted that P&R had provided similar programs in past years. He stated
that because of the amount of public controversy over the offering of the program, he
had elected to bring this to the Council as a policy matter, although, generally, these
decisions were made by the administration, and he did not want to see Council involve-
ment in every program offered by the city. Schaefermeyer stated that he recommended
the program and felt that it was an appropriate program for the city to offer. He added
that he did not agree with the sentiments of the licensed day care providers and did not
believe that this program would compete with the privately offered structured preschool
programs.
Bencardino asked what the problem was with continuing the program after it was
offered during the summer. He stated that bringing this matter to the Council had
added to the controversy. Schaefermeyer stated that this was made public from the
beginning when the licensed day care providers had objected to the program.
Sieminski stated that a few years ago, there had been no day care centers in
Seward, and the city had invested $10,000 for a day care facility. He stated that the city
also supported the program offered at the library (Head Start). He suggested that the
city should concentrate on maintaining existing programs rather than adding additional
ones.
Swartz stated that the city could not make everyone happy. She noted that the
city was often complimented for the "quality of life" offerings in Seward, and this
program was another enhancement program for the city's children and a choice for local
parents. She stated that parents needed affordable choices for their children. She added
that she would hate to see day care centers lose business, but felt that this program
would speak to the needs of parents not involved in private day care. She also stated
that this program could be very good for the entire community and she would offer it
her full support.
Darling asked if this program required parental involvement. Parks and
Recreation Department Director Chaffin stated that parents had asked to be involved and
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the planned program would require parental participation, although this participation
would not be required on a daily basis. She stated that the program would rotate the
parents in order to allow those parents participating in aerobics to continue that
participation. She noted that the program would be limited to ten children and added
that she did not feel that this was in direct competition with private day care. She stated
that she was also starting a support group of child care providers in Seward to discuss
program offerings throughout the community. In response to a question from Darling,
Chaffin stated that the size of the room and a desired student/teacher ratio limited the
size of the class to ten.
White asked if the city was at risk if it did not require certification for the program
leaders. Schaefermeyer stated that since parents would be involved, this would not be
a problem.
Schaefermeyer further stated that it was the city's policy for adult recreation
activities to pay for themselves, and any programs supported by city tax payer funds
would be children's and family programs.
Sieminski moved the previous question; the motion was seconded by Bencardino
and failed to carry with Bencardino and Sieminski voting YES and all other Council-
members voting NO.
Swartz asked if those who originally requested the program were still in support
of it. Chaffin stated that some were still in support of the program, but she did not
know if all were.
Crane stated that this matter should not have come before the Council but should
have been handled by the administration. He criticized the administration for pitting the
parents against the day care providers and he objected to the way this had been
presented. He stated that the Council should have been informed that this program was
about to go forward. He stated that he could not support this the way it had been
presented. He blamed the administration for the misunderstandings and controversy and
stated that the situation should have been handled in a different manner.
Krasnansky stated that he saw this program as a supervised play time while
parents were involved in another activity.
Schaefermeyer objected to the criticism that the Council had been uninvolved and
that this matter had been mishandled. He stated that the Council was involved very
early on when individuals approached the Council about the programming. Schaefer-
meyer noted that, after a great deal of time and effort on the administration's part to
arrive at some kind of compromise, he had found that this was not possible. He added
that he did not feel that it was in the public's interest to institute the program without
giving the policy making body - the Council - the opportunity to vote on the issue. He
repeated that this issue was brought to the administration; the administration did not
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engineer it. He also objected to criticism for asking the Council to make a tough policy
decision, adding that this was what the Council was paid to do.
The question was called, and the resolution failed with Krasnansky and Swartz
voting YES and all other Councilmembers voting NO.
3. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
An Resolution of the City Council of the City of Seward,
Alaska, appropriating $1,000 to establish a reward fund for
the arrest and conviction of individuals engaged in vandal-
ism of public property.
Crane moved to approve Resolution No. 92-179: the motion was seconded by
Swartz.
Chaffin stated that there had been a great deal of vandalism aimed at city parks
and vehicles as well as at Seward school buses. She stated that the vandalism included
slashed tires and brake cables and had moved beyond the defacement of public property
to destruction which could lead to serious accidents. She stated that she hoped to
establish a reward which would encourage other young people to turn in those who had
vandalized public property. In response to a question from Sieminski, Chief Walker
stated that Crimestoppers had ceased to exist about one year ago.
In response to a question from Crane, Chaffin stated that defacing of public
property started last summer, but actual damage such as tire slashing started just this
month.
Swartz stated that this problem had escalated because nothing had been done
about it as yet. She stated that she fully supported this program.
The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Krasnansky noted
by title only a proposed resolution entitled:
An Resolution of the City Council of the City of Seward,
Alaska, authorizing the City Manager to contract with
experts for the Seward Ship's Chandlery arbitration and
appropriating funds.
Bencardino moved to approve Resolution No. 92-178; the motion was seconded
by Sieminski. t
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Bencardino stated that the Council should have been told in the beginning that
the city would need to come up with this kind of money for expert witnesses.
Arvidson stated that the original legal fund appropriation last November (1991)
was based on the best estimate for attorneys fees at that time. He stated that expert
witnesses were needed to justify the city's cost figures for rent and maintenance of the
facility.
The question was called, and the resolution was approved with Bencardino
voting NO and all other Councilmembers voting YES.
RECESS:
The meeting was recessed at 9:15 p.m. and reconvened at 9:25 p.m.
12. UNFINISHED BUSINESS
A. Incentive leasing. Krasnansky stated that this item had come to the
Council at his request. He stated that he felt that a work session was in order. White
concurred that some guidelines were needed to determine when an incentive lease was
in order. The Clerk was instructed to make this an agenda item for the first meeting in
January so that the Council could schedule a work session to discuss incentive lease
procedures.
B. Attorney selection. Crane suggested scheduling this work session in
January. The Clerk was instructed to place this matter on the agenda for the first
meeting in January so that a work session could be scheduled to short list the preferred
candidates.
13. NEW BUSINESS
A. Election of Mayor to serve until October 1993. White nominated Crane to
serve as Mayor; the motion was seconded by Bencardino. Swartz nominated
Krasnansky to serve as Mayor; the motion was seconded by Sieminski. Swartz moved
to close nominations; the motion was seconded by Sieminski and carried by unanimous
vote.
The question was called on the nomination of Crane, and the motion was
approved with Swartz and Krasnansky voting NO and all other Councilmembers voting
YES. The nomination of Krasnansky was set aside once the vote on Crane's election as
Mayor was declared. Krasnansky then yielded the gavel to Crane, and Crane chaired the
meeting from that point forward.
B. Selection of Vice Mayor. Sieminski nominated Krasnansky to serve as
Vice Mayor for a one year term; the motion was seconded by Swartz and carried by
unanimous vote.
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C. Selection of Council representative to the Hospital Board. Crane
appointed Hugh Darling to serve as the Council representative to the Hospital Board
for the coming year.
D. Seward City Code Section 2.10.050. White stated that he wished to discuss
the manner in which Council appointments were made because of the uncomfortable
position council was put in whenever a vacancy occurred on Council between elections.
He stated that he would like to see an amendment to the Code setting procedures
governing such appointments.
At Council's request, Murphy explained the options open to the Council. She
stated that the Council probably would not wish to mandate that the next high vote
getter in any previous election be appointed since this person might not necessarily have
the support of even a small percentage of the electorate. She suggested that the Council
advertise for letters of interest from qualified voters of the city whenever a vacancy was
available and that those who submitted such a letter of interest be required to file a
conflict of interest statement with the letter and appear before the Council prior to
appointment to publicly state his or her reasons for wishing to serve on the Council.
E. Accounts Receivable Write-Offs. Schaefermeyer stated that it was
appropriate periodically, as provided in the City Code, for the Finance Director to submit
a list of-accounts receivable which were deemed to be uncollectible to be removed from
the NR books. He stated that this did not mean that the city would not continue to try
to collect the monies due; however, the auditors recommended that the city write off
these accounts on a periodic basis. He added that this report had been submitted to the
Council for information and did not require Council approval.
14. CITY MANAGER REPORTS
SCHAEFERMEYER noted that a severe snow storm in Cooper Landing was
causing many problems for Chugach Electric and was the cause of the fluctuations in
power earlier in the day.
SCHAEFERMEYER also stated that the president of Chugach Alaska Corporation
had indicated that discussions regarding a joint venture for operation of the sawmill had
been concluded except for one item - the acceptance of the agreement by Travellers
Insurance Company. He stated that if Travellers accepted the terms of the agreement,
the mill would resume operation in February. He added that work sessions and other
meetings of the Council might be called over the next few months to discuss this issue.
SCHAEFERMEYER stated that it was time for the Council to address the city's
legislative priorities for the next legislative session, adding that these priorities must be
adopted and developed for presentation to the state legislature in Juneau.
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SCHAEFERMEYER noted that the Council had received a communication from
Paul Diener regarding the B Street Dock project. He stated that the city was at a point
where decisions had to be made regarding the project. He noted that some question had
been raised about the B Street location as well as about the suitability of the floating dry
dock sections. He reported that the city had applied for a Corps of Engineers permit for
a particular design and location and he anticipated that this permit would be issued
within the next month. He stated that the city needed to address how it planned to go
forward from this point, and he asked that the Council carefully review Diener's
memorandum since the administration would be asking for a meeting or work session
soon to discuss this issue.
15. COUNCIL DISCUSSION
SIEMINSKI noted that the Council had received another letter from a city
employee, and he compared the accusations in the letter to the Larry Richard case. He
stated that the city should set guidelines regarding employee use of city equipment for
personal reasons. Schaefermeyer stated that there was a long standing city policy that
allowed employees to make personal copies with the city copier at a cost lower than that
charged to the public. He stated that the charge to the employee covered the cost of the
paper and the use of the machine. He noted that the rate charged for public copies
covered not only paper and copier costs but also recovered the cost of the employee's
time for retrieving and copying the document. Schaefermeyer stated that use of the
copier had not been abused by city employees.
SIEMINSKI also commented on the memorandum from Schaefermeyer and Yanez
regarding the Richard case. He stated that no Councilmember had interfered with
Schaefermeyer during the summer of 1991 as stated in the memorandum.
SWARTZ stated that she had discovered a small pot hole at Mile 1 on Third
Avenue. Schaefermeyer stated that he would point this out to the state.
SWARTZ stated that she was encouraged to hear Schaefermeyer talk about the
activity which was about to take place across the bay (sawmill). She stated that Alaska
was in a good position to export lumber to Florida and elsewhere to assist in rebuilding
after this season's hurricanes.
WHITE stated that the Family Leave Act provided that the employer could require
that the employee pay all or a part of the cost of health insurance while on unpaid leave.
He stated that the city might need to look at this provision if the leave without pay
system was abused by employees.
WHITE reported that the Port Advisory Committee had met and was currently
addressing the wharfage rate charged for unprocessed fish. He also noted that the
Committee intended to create a port brochure highlighting port services available in the
community. He stated that the Committee had reviewed the draft of the southcentral
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port study and would be scheduling a joint work session with the Trade Board to discuss
the B Street Dock.
WHITE noted a letter from Dot Bardarson requesting the purchase of her leased
land in the Boat Harbor. Schaefermeyer stated that he would like to address this when
the Council considered incentive leases at its work session in January.
DARLING stated that he did not feel that the private sector and Parks and
Recreation were that far apart in their goals. He added that he hoped the two groups
could continue to work together.
BENCARDINO asked if the fountain at the Iditarod Park was to be taken out.
Schaefermeyer stated that there was a community meeting a couple of weeks ago during
which there was discussion regarding what to do with that area. He stated that a
member of the public had suggested removing the fountain, but this was not being
seriously considered.
BENCARDINO asked if the city had found a community service coordinator.
Schaefermeyer stated that Yanez would be performing this function.
BENCARDINO asked if the city had trained score keepers through the Parks and
Recreation Department. Yanez stated that every season score keeper training was
offered, and scorekeepers were paid $7.00 per game for their services.
BENCARDINO stated that years ago, prior to construction of the prison, the
Department of Corrections had stated that prisoners with one year or less to serve would
be transferred to a minimum security prison elsewhere in the state, and the city was
promised that Spring Creek Correctional Center prisoners would not be released directly
into the community. He noted that the department was now releasing the prisoners in
Seward, and concern for this practice had been expressed by the senior community. He
asked the City Manager to request a clarification of the state's policy.
BENCARDINO asked when the city would consider the Adams Street site as an
alternative location for the proposed B Street Dock.
KRASNANSKY stated that he had enjoyed being mayor for a month.
CRANE stated that Krasnansky did an excellent job as mayor for a month and
thanked him for his service. He welcomed Hugh Darling to the Council and he stated
that he hoped the Council had a productive year and could get on with business.
,
CRANE stated that with the help of the Clerk's office and Krasnansky, he hoped
to establish a more productive meeting style. He urged the Council to read the City
Code sections regarding decorum of councilmembers. (
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October 26, 1992
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Volume 28, Page 218
16. CITIZENS' DISCUSSION
SCHAEFERMEYER noted that one member of Council had thrown out challenges
regarding a memorandum prepared by the city manager and deputy city manager. He
stated that the memorandum was factually correct to the best of his knowledge, and he
would stand by what was contained in therein.
CRANE urged councilmembers to address problems and concerns directly with
the administration.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SIEMINSKI stated that he stood by his earlier comments.
SWARTZ stated that there was already a site for the B Street Dock, and she did
not want to lose the momentum the city now had by changing locations mid-stream.
18. ADJOURNMENT
The meeting was adjourned at 10:50 p.m., and after a short recess, the Council met
in executive session to discuss the mEW contract negotiations.
~w.c~
Dave W. Crane
Mayor
City Council Minutes
Volume 28, Page 218
2. OPENING CEREMONY
Police Chief Walker led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
{ 'S055325 ]
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I
Dave W. Crane, presiding, and
Louis A. Bencardino
James Krasnansky
Karen A. Swartz
Hugh Darling
Bruce Sieminski
Dale White
comprising a quorum of the Council; and
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
4a. SPECIAL PRESENTATIONS
A. Presentation of plaque to Beverly Dunham. Crane presented a plaque to
retired Councilmember Beverly Dunham recognizing her past contributions to the city.
B. Proclamation designating 12101/92 as AIDS Awareness Day. Crane read
a proclamation designating 12/01/92 as AIDS Awareness Day in Seward.
C. Proclamation designating 11/16-22/92 as Book Week. Crane presented a
proclamation to Librarian Catherine Nicolas designating Book Week in Seward.
I 4b. APPROVAL OF MINUTES
Krasnansky moved to approve the October 26, 1992, regular meeting minutes as
presented; the motion was seconded by White and carried by unanimous vote.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Sieminski.
Murphy requested that the Council add presentations by applicants for the
Hospital Board and the Trade Board to Agenda Item No. 10.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of
the October 27th and November 5th assembly meetings.
I
7.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT
PUBLIC HEARING None
SCHEDULED FOR
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8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by White.
Sieminski asked to move Items A (Resolution No. 92-180) and C (Resolution No.
92-187) to the regular meeting agenda.
The question was called, and the consent calendar was approved as amended by
unanimous vote. The following actions were taken:
A. Resolution No. 92-180. approving a TORA between the city and the Alaska
DOTIPF for design and construction of an elevator in City Hall, was moved to the regular
meeting agenda;
B. Resolution No. 92-181, approving an advertising contract with Alaska News-
papers, Inc., was approved;
C. Resolution No. 92-187. appropriating funds and authorizing a line of credit
to the Seward Chamber of Commerce, was moved to the regular meeting agenda;
D. ABCB notification of application for renewal of liquor license as filed by
Seward Trading Company was noted and a letter of non objection to the renewal was
issued;
E. Applications for permits for games of chance and skill as filed by Seward
Polar Bear Jumpoff Festival, Inc.; Seward Elks Lodge #1773; and Seward Emblem Club
#250 were noted for information;
F. Seward General Hospital Quarterly Financial Statement for period ending
09/30/92 was noted for information;
G. Parks and Recreation 1992 Summer Quarterly Report was noted for
information; and
H. Report of purchase orders totalling between $5,000 and $10,000 for October,
1992 was noted for information.
9. PUBLIC HEARINGS
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. Donald Sutherland - Polar Bear Tumpoff Festival Update. Sutherland
noted that the Polar Bear Festival was entering its 8th year. He stated that this was an
all volunteer organization with a nine-member board. He stated that the festival drew
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participants from within and outside the state. Sutherland noted that several television
and film companies had contacted the board regarding providing coverage of the event.
B. Community Hospital Board Applicants.
1. David W. Butts. Not present.
2. Beverly Karges. Karges stated that she was interested in serving on
the hospital board because of her interest in keeping education and equipment updated.
She noted that she had been involved in the medical field for over twenty years and was
actively involved in the American Cancer Society. She stated that she would try her best
to benefit the board.
3. Albert T. Lamberson. Lamberson was not present at this time but
gave his presentation later in the meeting.
C. Trade Board Applicants.
1. Patrick Brown. Brown stated that he had asked to be appointed to
the Trade Board for several reasons, both personal and for the good of the community.
He stated that he had resided in Seward for two years and was employed at the sawmill.
He added that, although the mill had closed, he chose not to leave Seward. He stated
that his background was in light manufacturing industry. He indicated that he realized
Seward's potential and hoped to help in the city's efforts to attain its goals.
2. David Dieckgraeff. Not present.
3. William I. Fellows. Fellows stated that he was the terminal
supervisor for the Alaska Railroad in Seward and had lived in Seward for the past year.
He stated that he had been attending the Board meetings for about six months and was
impressed with the work the Board was doing. He added that Seward had a tremendous
amount of economic potential and hoped to help see that realized.
4. lack I. Goodwill. Not present.
5. Marianna C. Keil. Keil stated that she was a four-year resident of
Seward and was employed as the assistant project director for the Mt. Marathon Native
Association. Keil stated that she had owned and operated her own business in
Washington and hoped to open her own business in Seward within the next five years.
6. Leo M. Wakefield. Wakefield was not present at this time but gave
his presentation later in the meeting.
11. ORDINANCES AND RESOLUTIONS ( CSE155328 1
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November 16, 1992
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A. Ordinances for Introduction
1. Copies having been made available to the public, Crane noted by title
only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code f 3.01.025, Police
Standards Act.
Swartz moved to introduce Ordinance No. 92-24: the motion was seconded by
Bencardino. The question was called, and the ordinance was introduced by unanimous
vote. Public hearing was scheduled for December 14, 1992.
2. Copies having been made available to the public, Crane noted by title
only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code f 3.50.010, Recognized
City Holidays for library employees.
Krasnansky moved to introduce Ordinance No. 92-25; the motion was seconded
by Swartz. The question was called, and the ordinance was introduced by unanimous
vote. Public hearing was scheduled for December 14, 1992.
B. Ordinances for Public Hearing & Enactment
C. Resolutions
1. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving final payment of the contract with Dames
and Moore for environmental assessment of the drydock and
ship repair facility at SMIC.
Krasnansky moved to approve Resolution No. 92-182; the motion was seconded
by White. The question was called, and the resolution was approved by unanimous
vote.
2. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward, ( C S E 155329 1
Alaska, approving a change ord~r to the Land Field Services
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contract for acquisition of permits for transmission line
project phase IB.
White moved to approve Resolution No. 92-183; the motion was seconded by
Swartz.
In response to a question from White, Diener stated that the city had experienced
real problems with routing the line at Snow River which required the city to "re-permit"
several times. He stated that a verbal approval had been received from the Forest Service
and he hoped to have the actual permit in hand soon.
Bencardino questioned the removal of the permit by the Forest Service. Diener
explained that this was a very sensitive area environmentally. After receiving a permit
from the Corps of Engineers, the Forest Service asked to the city to reroute the proposed
line which meant going through the permitting process a second time.
Swartz stated that everyone realized the difficulty of working with state and
federal agencies.
The question was called, and the resolution was approved by unanimous vote.
3. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, approving an agreement with the United States of
America to conduct a navigational feasibility study for boat
harbor improvements.
Swartz moved to approve Resolution No. 92-184: the motion was seconded by
White.
Swartz stated that the city should move forward with this project:.
White concurred. He stated that it was hard to say what was going to happen
across the bay, but it was necessary to continue to move forward.
Sieminski asked if this feasibility study would include the possible eastward
expansion as well as the B Street Dock. Yanez stated that tl1e reconnaissance study had
indicated that the eastward expansion was the most desirable. This resolution would
request the Corps to complete a feasibility study of this eastward expansion. He noted
that this was a totally separate issue from the B Street Dock which would be discussed
later in the meeting. (
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In response to a question from Bencardino, Diener stated that the entire project
would cost approximately $13 Million, with the city and/or state responsible for
approximately $8 Million. He stated that this did not include the inner workings which
would bring the total city/state share to approximately $11-12 Million.
Diener also noted that this feasibility study could be stopped at any time. He
stated that, if the Nash Road project did go forward, this study could be stopped, and
the city would not have to commit to any further expense.
Yanez stated that, at this time, the city could not afford either this project or the
B Street Dock. However, the administration would be recommending placing these items
on the capital projects priority list in an attempt to secure some of the funding from the
state.
Crane stated that he supported the resolution since there was no guarantee that
the Nash Road Project would go forward and a new boat harbor was definitely needed.
The question was called, and the resolution was approved by unanimous vote.
4. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled: .
A Resolution of the City Council of the City of Seward,
Alaska, approving a contract with Dames & Moore to
provide a remediation plan and testing of soil at Fort
Raymond Substation.
Krasnansky moved to approve Resolution No. 92-185; the motion was seconded
by White.
Darling questioned the $5,000 contingency which equated to 65% of the total
contract. Diener stated that this was a large amount for contingency, but the city had no
idea how much the contract would cost since this would be determined by the level of
concentration of contaminants and the depth of excavation required by the state. He
noted that the additional $5,000 would only be expended if the city executed a change
order. In response to a question from White, Diener stated that this was a budgeted
item.
The question was called, and the resolution was approved by unanimous vote.
5. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled: (
CSE 155331
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A Resolution of the City Council of the City of Seward,
Alaska, amending the electric tariff to pass through to the
utility customer a regulatory cost charge imposed by the
Alaska Public Utilities Commission.
Krasnansky moved to approve Resolution No. 92-186; the motion was seconded
by Swartz.
Krasnansky stated that this charge was a pass through from Chugach Electric to
the city's customers at the behest of the Alaska Public Utilities Commission. Yanez stated
that the charge was minimal and would result in about $0.63 per 1,000 kwh.
The question was called, and the resolution was approved by unanimous vote.
6. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the City Manager to proceed with the
design and economic studies for the B Street Dock.
Swartz moved to approve Resolution No. 92-188; the motion was seconded by
Krasnansky.
Swartz and Krasnansky stated that they supported this resolution and the B Street
location.
Darling stated that the city manager had indicated that a work session would be
scheduled to discuss this. Sieminski agreed that a work session should be conducted
with representatives of the city, IMS and the state.
Swartz disagreed. She stated that a lot of work had already been done on this
project and she would like to be able to move ahead without discussing it "to death."
Darling stated that Schaefermeyer had indicated at the last meeting that a work
session would be scheduled. He stated that he did not have enough information to go
forward with the design at this time.
Krasnansky stated that the design concept was not fixed by the resolution. He
stated that the city had been talking about this for a long time and referred to the two
prior resolutions and the ordinance.
White asked if this resolution would bypass investigating the floating docks.
Yanez stated that this resolution would lock the city in with a fixed dock at B Street.
White stated that he would like to further explore the floating dock. (
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White moved to postpone action on the resolution until December 14, 1992; the
motion was seconded by Bencardino.
White stated that he would like to conduct a work session to further discuss this
issue. Bencardino concurred and stated that he would like to have Dennis Nottingham
present at the work session.
The question was called, and the motion to postpone was approved with six YES
votes and Swartz voting NO.
The meeting was recessed at 8:54 p.m. and reconvened at 9:05 p.m.
7. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
RECESS:
A Resolution of the City Council of the City of Seward,
Alaska, approving a TORA between the city and the Alaska
Department of Transportation and Public Facilities for
design and construction of an elevator in City Hall.
Sieminski moved to approve Resolution No. 92-180; the motion was seconded by
Swartz.
Sieminski asked why the city would be paying for the removal of the fuel tanks.
Yanez stated that there was an underground fuel storage tank at the location where the
elevator was to be located. The city wished to remove the fuel tank prior to construction
to avoid having to remove it at some future date when such removal would require
removing the elevator. Sieminski stated that he thought the state would be responsible
for 40% of the cost of removing the tank.
Diener stated that eventually the city would be required to remove all under-
ground tanks, and removing this tank at this time would be the most cost effective way
to proceed. He stated that, in discussions with the Court system, it had been determined
that the city would pick up the cost of removal of the tanks; however, if funds remained
in the state grant and court system funds which were being transferred to the city for
elevator construction, these excess funds would be applied to the removal and relocation
of the oil tank. Diener stated that his concern was that the tank might have leaked. He
added that there was no reason to believe that this had happened, but this was a
possibility.
Crane stated that it was nice to see this project going forward.
The question was called, and the resolution was approved by unanimous vote.
( CSE 155333 1
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8. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds and authorizing a line of credit
to the Seward Chamber of Commerce.
Sieminski moved to approve Resolution No. 92-187; the motion was seconded by
Bencardino.
In response to a question from Sieminski, Yanez stated that the Seward Chamber
of Commerce anticipated a $30,000 shortfall for this year due to a reduction in Salmon
Derby receipts under what was budgeted, a $10,000 legal bill and unexpected expenses
for pumping portable toilets located at the visitors center. This resolution would offer
assistance of up to $30,000 to the Chamber on an as needed basis to give the Chamber
Board another option other than selling a piece of property which many viewed as
community property. He noted that this would also buy the Chamber time to look at
other fund raising options.
Bencardino spoke in support of th(~ resolution. He noted that many cities made
regular donations to their chambers of commerce in recognition of the valuable contribu-
tions they made to their communities.
White stated that his only concern was that there was no provision requiring
repayment of the funds to the city. He stated that if this was a loan, the city should set
up a payment schedule, and if it was to be a grant, it should be called a grant.
Yanez stated that the spirit of the agreement was that it be treated as a loan. He
stated that, once a new Board was seated, the city representative to the Chamber would
initiate discussions with the board regarding repayment of the loan.
Swartz concurred with White. She stated that the city should consider an end of
the season repayment plan. Bencardino agreed.
Krasnansky moved to amend the resolution by adding a new Section 3 to read
"A repayment agreement shall be executed by the city and the Chamber of Commerce," and
renumbering the existing Section 3 to Section 4; the motion was seconded by White and
carried by unanimous vote.
The question was called on the main motion, and the resolution was approved
as amended by unanimous vote. (
. CSE 155334
12. UNFINISHED BUSINESS
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A. Community Hospital Board Appointment. Applicant Albert J. Lamberson
apologized for being late for the meeting and thanked the Council for allowing him to
make this presentation prior to its vote on the hospital board appointment. He thanked
the Council for reconsideration of the way appointments were to be made in the future.
He stated that the hospital board had tried to target various sections of the community
in an effort to assure that all aspects of the community received representation on the
board.
Murphy distributed ballots containing the names of all applicants for the board
seat to the Council and instructed them to vote for one individual and sign the ballot
where indicated. Murphy collected the voted ballots and read the results as follows:
David W. Butts - None
Beverly Karges - Krasnansky and Swartz
Albert J. Lamberson - Bencardino, Crane, Darling, Sieminski and White
Murphy announced that Lamberson had received the required number of votes
and was, therefore, appointed to the Community Hospital Board for a term to expire in
October 1995.
13. NEW BUSINESS
A. Trade Board Appointments. Applicant Leo Wakefield was allowed to make
his presentation to the Council prior to its vote on the trade board appointments.
Wakefield stated that he had lived in Seward for just over two years and had been in
business for himself for thirty years in three different states. He stated that he wanted
to be on the Trade Board to encourage the growth of business in Seward.
Murphy distributed ballots containing the names of all applicants for the trade
board seat to the Council and instructed them to vote for not more than two of the
named applicants and to sign the ballot where indicated. Murphy collected the ballots
and read the results as follows:
Patrick Brown - Krasnansky and White
David Dieckgraeff - None
William J. Fellows - Crane, Krasnansky, Swartz, White
Jack I. Goodwill - Bencardino, Crane, Darling, Sieminski and Swartz
Marianna C. Keil - Bencardino and Sieminski
Leo M. Wakefield - Darling
Murphy announced that Goodwill and Fellows had received the required
number of votes and were, therefore, appointed to the two three-year seats on the Trade
Board which would expire in November 1995, )
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Murphy distributed another set of ballots containing the names of trade board
applicants and instructed the Council to vote for one of the remaining applicants to fill
the two year vacancy. Murphy collected the ballots and read the results as follows:
Patrick Brown - Crane, Krasnansky, Swartz and White
David Dieckgraeff - None
Marianna C. Keil - Bencardi;.lO and Sieminski
Leo Wakefield - Darling
Murphy announced that Patrick Brown had received the required number of
votes and was, therefore, appointed to fill the 2-year seat on the Trade Board to expire
in November 1994.
B. Claim for damages totalling $405.83 as filed by the state of Alaska.
Krasnansky moved to approve the claim for damages totalling $405.83 as filed by the
state of Alaska for alleged damage to the state's five-ton hoist motor and hot water
heater at its Highway Maintenance Shop in Seward; the motion was seconded by
Swartz and carried by unanimous vote.
C. Claim for damages totalling $599.99 as filed by Sharon L. Treece. White
moved to pay the claim for damages totalling $599.99 as filed by Sharon L. Treece for
alleged damage to her microwave oven as a result of power surges; the motion was
seconded by Krasnansky and failed with all councilmembers voting NO.
D. Claim for damages totalling $1,500.00 as filed by Mary L. Brasie. Swartz
moved to refer the claim for damages tot illing $1,500 as filed by Mary L. Brasie to the
city's insurance carrier for adjustment; the motion was seconded by Krasnansky and
carried by unanimous vote.
E. Bike trail winter maintenance. Swartz moved to direct the administration
to follow Option No.2 (to provide maintenance of the bike trail to winter trail
standards); the motion was seconded by Bencardino.
Swartz stated that the bike trail had been enjoyed by everyone, and while monies
were not available to keep it completely cleared, it should be maintained for winter use
for school children and those who wished to use the trail for skiing or walking.
Bencardino concurred.
White asked if this work could be done by volunteer groups that had come to the
city asking for money. He suggested that the city contribute the funds for clearing to the
organizations performing the work. White stated that he would like to have the bike trail
maintained, but he would like to see the city explore the option of having nonprofit
groups perform the work.
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In response to a question from Sieminski, Yanez stated that this was a city trail;
however it was not designated a parks and recreation trail. He stated that the Public
Works Department would do the bulk of the snow removal, and the Parks and
Recreation Department would level and sand the trail.
The question was called, and the motion was approved by unanimous vote.
F. Small Boat Harbor lease proposals. Kerry Martin stated that a number of
parties had proposed to lease additional space in the Small Boat Harbor. He stated that
the only space available was on the water side of the boardwalk; however, before leasing
any more business space in the harbor, the city should first explore the amount of
parking available and the need for additional parking if other businesses were allowed
to develop in the area. Martin recommended that the Planning Commission, Port
Advisory Committee and others review the parking needs and the proposals to determine
how the city should proceed.
White agreed that the Planning Commission and Port Committee should be used
to review these proposals and the parking problems.
Bencardino stated that developing the tidelands could create problems in the
harbor. He stated that the city should issue a request for proposals to allow anyone
wishing to do business in the Small Boat Harbor to bid.
Krasnansky asked for the time frames involved in the review of the Uplands
Management Plan and the parking plans. Martin stated that the Port Committee would
review the plan on Wednesday and the Planning Commission would review it at its next
meeting. This would allow the administration to bring the plan back to the Council in
January for public hearing and adoption.
Krasnansky moved to hold all proposals for development in the Small Boat
Harbor in abeyance, to direct the Planning Commission to review the Small Boat
Harbor Uplands Management Plan, and to encourage all proposers to participate in
upcoming parking and land use work sessions; the motion was seconded by White.
White stated that development of the tidelands had not been discussed in depth
and deserved review before the city proceeded with these proposals. White also noted
that Ray's Restaurant had been constructed over the water, and he asked how long the
permitting process had taken. Martin stated that Simutis had received a Corps of
Engineers permit for construction in a fairly short period of time.
The question was called, and the motion was approved by unanimous vote.
14.
CITY MANAGER REPORTS
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A. Parks and Recreation Department Campground Report. Yanez noted the
1992 campground report prepared by the Parks and Recreation Department. He reported
that the city had experienced a record season with a 31.5% increase over 1991 and
revenues of $150,704, for an increase of 32.4% over last year. He added that the city's
1992 profit for campground collections was almost $90,000.
B. Army-Air Force Recreation Camp Rehabilitation work session. Yanez
noted a memorandum from Community Development Director Martin regarding
consolidation of the military recreation camp and planned improvements to the property.
He stated that the administration had tentatively scheduled a work session on December
9th at 12:00 Noon to hear a presentation from the Corps of Engineers. Council concurred
with the date of the work session.
Yanez noted that the Seward Ship's Chandlery arbitration was in progress and that
Schaefermeyer would be in Anchorage for the next two weeks to participate in the
hearings.
Yanez reminded property owners of the requirement to shovel sidewalks fronting
their property.
Yanez asked the Council to schedule a work session to discuss the B Street Dock.
The Council instructed the Clerk to advertise a work session on Tuesday, December 8,
1992, beginning at 7:00 p.m. and to invite all of the parties involved to be present.
Yanez noted a memorandum from Manager of Engineering & Utilities Diener
regarding the winter shut-down of the sludge removal operation. Diener explained that
about 200,000 gallons of sludge remained in the lagoon and that most of this was slush
and not sludge. Diener noted that pumping would resume in the spring.
15. COUNCIL DISCUSSION
DARLING noted that five of the members of Council had spent last week in
Juneau attending the Alaska Municipal League conference. He stated that the city could
expect 5-10% reductions in state funds from Juneau each year from now on; therefore,
the city could expect some belt tightening. Darling also noted that City Clerk Murphy
was named the AML municipal employee of the year and he congratulated her.
DARLING stated that he was concerned about engineering contracts since they
always seemed to be the source of problems. He stated that he would like to see
memoranda showing the entire scope of projects when contracts were let.
BENCARDINO stated that the situation regarding leasing in the Small Boat
Harbor was an important one, and the city must address the parking situation in the
harbor as soon as possible. He stated that, as new businesses moved into the area,
parking problems would increase, and he suggested that business people in the Boat
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Harbor be included on any parking and development committee. Bencardino also
congratulated Murphy and noted that she was nominated by another community, not
Seward. Finally, Bencardino stated that, after visiting with other city officials in Juneau,
it was apparent that Seward did not have nearly the numbers of problems that other
communities faced. He stated that, overall, Seward was in good shape.
WHITE asked if the $9.5 Million set aside for military recreation camp renovations
would be spent during the 1993 building season. Yanez stated that some of the projects
would begin this summer.
WHITE thanked all who applied for city boards and commissions. He stated that
the appointments were tough decisions to. make. White noted that he was in Anchorage
earlier in the day to attend a meeting of the Southcentral Port Study group. He stated
that only two projects were listed in the report as immediate necessities - the B Street
Dock in Seward and the access road to Whittier. He further noted that the report stated
that as long as the tonnage for coal stayed at 3 million tons or less, no one could compete
with the port of Seward. He stated that the basic result of the study was that lots more
studies were needed.
SIEMINSKI suggested that the Council consider renovating the Council Chambers
to make the audience more comfortable and to improve the sound system.
SWARTZ stated that she had a problem with the leases discussed earlier in the
meeting. She stated that good ideas would be taken from their originators by others if
the city did not move ahead. Swartz stated that city should express feelings of sympathy
to families of the National Guard who were lost in Juneau. She also thanked those who
were sponsoring the "Breakfast with Santa" program again this year.
KRASNANSKY congratulated Murphy. He also stated that the delegation in
Juneau had met with city lobbyist Kent Dawson, and he (Krasnansky) was glad that
Dawson was working for the city and not for someone else. Krasnansky also stated that
the Council was on the right track with the new appointment process and suggested that
they consider amending the code to require this method of selecting appointees.
CRANE, too, congratulated Murphy. He stated that the Alaska Municipal League
was a real benefit to the community, adding that it educated elected officials and taught
them to deal with the political process. Crane also stated that he was very impressed
with city lobbyist Kent Dawson. He noted that it would be difficult over the next few
years to get funds from Juneau and Seward was lucky to have someone of Dawson's
caliber working on the city's side. Crane thanked the Parks and Recreation Department
for doing a great job on campground management. He noted the Chamber's role in
attracting visitors to the city to use the public campgrounds and other facilities and stated
that the loan approved earlier in the evening was an appropriate way for the city to help
this organization. l
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CRANE noted that the Council would be addressing legislative priorities within
the next month. He stated that one of his priorities was dealing with the attorney
selection process early in 1993. He noted that the B Street Dock was important to the
community and was backed by the majority of the citizens of Seward. He added that the
hospital, the SAAMS project and the Boat Harbor Uplands Management Plan were
important issues. He noted that the Council would soon be updating the city manager's
scope of services and stated that it was important that the Council and administration
work together as a team. Crane encouraged the public to participate in the public
process.
CRANE stated that he would be working with the City Clerk to develop some
formal rules of procedure for the Council. He noted that the problems at the sawmill still
needed to be addressed as did on-going problems with the sewage lagoon. He stated
that both boat harbor issues were coming up and both deserved work.
CRANE noted that 31 people from Seward would visit Obihiro, Japan, for its l10th
anniversary celebration, adding that he would participate in the trip along with
Councilmembers White and Darling and Deputy City Clerk Patsy Jones. He recognized
Jones for her efforts in planning and organizing the trip. Crane stated that it was
possible that the city would be hosting .l delegation of 50 or so representatives from
Obihiro next summer, and he noted that this would require a city appropriation of at
least $5,000. In addition, Obihiro wanted to know how the city of Seward intended to
celebrate the 25th anniversary of the sister city relationship. He stated that he had
discussed with the Chamber the possibility of making this part of next year's Fourth of
July celebration. Crane noted that Obihiro intended to provide a monument for Seward
and Seward must, in return, supply one for Obihiro. He stated that Obihiro had asked
about the possibility of sending nine exchange students each year rather than four, and
this, too, would require a budget increase.
SIEMINSKI stated that the city should proceed with the delegation. SWARTZ
stated that further information was needed before the Council could act on any of these
proposals. DARLING concurred that the city should reciprocate. BENCARDINO and
WHITE agreed. KRASNANSKY stated that he was concerned with funding and would
like to know what the city was committing to do.
BENCARDINO noted a problem with the road in front of the dentist's office.
Diener stated that this portion of the road was very flat, and any ice buildup caused
water to pond. Diener added that he would look into this, but at this point did not
know what the city could do to correct i~.
16. CITIZENS' DISCUSSION
PAT REILLY, Woodland Hills Subdivision, noted that Lowell Point had not been
placed in the same House and Senate District as the rest of the Peninsula, and Lowell
Point residents felt that they might be better represented by Zharoff than by inclusion
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in the same district as Seward. He noted that residents of Tyonek also felt that they were
better represented by Georgianna Lincoln as part of the bush community.
BRAD SNOWDEN, 525 Sixth Avenue, stated that two of the proposals to which
Kerry Martin had referred were his ideas. He agreed with Swartz and Bencardino that
the one with an original idea should have some advantage when making a proposal.
Snowden filed another proposal with the Clerk and the Council.
WAYNE CARPENTER, 325 Fifth Avenue, Chamber of Commerce Director,
thanked the Council for granting the $30,000 loan to the Chamber. He stated that
Bencardino was correct about community support of chambers of commerce and noted
that a recent research project showed that most agencies providing visitor services
received up to 95% of their funding through grants and gifts. He further noted that
many of the visitors to Seward came to this area as a result of the Chamber's advertising
efforts. Carpenter reported that he had participated in the Kenai Peninsula Tourism
Marketing Council's annual meeting in Soldotna. He noted that four members of the
Seward community served on the 11-member board. Carpenter reported that Seward
had received the KPTMC Frontier award in recognition of outstanding support of the
Peninsula visitor industry.
17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
None
18. ADJOURNMENT
The meeting was adjourned at 11:20 p.m.
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Dave W. Crane
Mayor
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December 11, 1992
City Council Minutes
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1.
CALL TO ORDER
The December 11, 1992, special meeting of the Seward City Council was called to
order at 12:00 Noon by Mayor Dave W. Crane.
2. OPENING CEREMONY
Councilmember Darling led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Dave W. Crane, presiding, and
Hugh Darling
Bruce Sieminski
Dale White
James Krasnansky
Karen A. Swartz
comprising a quorum of the Council; and
Michael Yanez, Assistant City Manager
Linda S. Murphy, City Clerk
ABSENT was:
Louis Bencardino (excused)
4. APPROVAL OF SPECIAL MEETING AGENDA
Krasnansky moved to approve the Special Meeting Agenda as presented; the
motion was seconded by White and carried without objection.
5. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
6. SPECIAL ITEMS
A. Proposed offer of lease and tariff incentives to Young & Morgan for the
purpose of facilitating the reopening of the Seward Sawmill. Swartz declared her
conflict of interest with respects to any business dealings with Chugach Alaska
Corporation and noted that she was a share holder and could potentially benefit from
the proposal before Council. Crane ruled that a conflict did exist and instructed Swartz
to abstain from either discussion or a vote on the issue.
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Krasnansky moved to approve incentive and tariff changes, in concept, and to
direct the administration to make the appropriate changes to city leases and tariffs in
order to assist Young & Morgan Corporation to reopen the Chugach Sawmill; the
motion was seconded by White.
Gates noted that the administration was recommending the following incentives
to assist in Young & Morgan's project:
1. To incur and absorb approximately $10,000 in city legal and administrative
expenses to accomplish the tariff and lease changes necessary to accomplish the "deal".
2. To waive lease revenues for up to ten years from December 11, 1992, on the
main 30+ acre parcel of land occupied by the sawmill for each year that the sawmill
employs 25,000 man-hours of labor.
3. To forgive the $83,700 per year current rent payments on the two leases
adjacent to the main lease parcel for a period of 5 years.
4.
log dock.
To commit to work with Young & Morgan towards construction of a new
5. To receive a commitment from Young & Morgan to pay $6250/month in
advance for the use of the SMIC dock on a take-or-pay basis, provided that the lessee
agrees to make up any revenue shortfall on SMIC Dock debt service (approximately
$216,000 per year) at the end of 12 months, taking into account all other SMIC North
Dock revenues, it being understood that any make-up of debt service shortfall from the
joint venture stands as a "last resort" to the city of Seward based on actual dock
performance for the preceding 12 calendar months. At which time the parties will re-
evaluate future dock pricing.
6. To assist Young & Morgan in reducing its power generation costs using
existing provisions in the city's utility tariff.
7. To continue to work with Young & Morgan to resolve the hog-fuel problem.
8. To limit the city's recovery to one-half the full fair market value of all leases
if the sawmill fails to meet the employment obiigation provisions noted in Number 2,
above.
9. To agree to amend the lease to allow the building to be removed at the end
of the full lease term.
10. To allow Young & Morgan to extend its lease beyond the normal expiration
date of 02/15/2008 in five-year increments up to a total term of 40 years upon Council
approval. (
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Sieminski requested that Gates provide the Council with regular reports to the
Council concerning the status of the proposed new log dock and the amount of
attorney's fees expended on lease preparation.
The question was called, and the motion was approved with five YES votes and
Swartz ABSTAINING.
7. CITY MANAGER REPORTS None
8. COUNCIL DISCUSSION
KRASNANSKY noted that his electric bill had nearly doubled over the last month,
and he asked why this had occurred in light of the fact that the Chugach Electric rate
increase had not affected the Seward Utility. Diener noted that the increase could
probably be attributed to additional days between meter readings or the fact that recent
low temperatures had resulted in increased power usage. He stated that anyone
experiencing unusually high bills should request a meter check by the utility.
SIEMINSKI stated that he had heard several complaints about electric bills in the
last month and suggested that the administration be prepared to explain to the public
how to read utility invoices.
9. CITIZENS' DISCUSSION
MIKE ROGERS, Old Mill Subdivision, asked if Young & Morgan intended to burn
hog fuel to produce electric power for the sawmill. Young & Morgan representative JIM
HARRIS responded that there were no such plans at this time.
10. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
GATES noted that Young & Morgan had agreed to enter into an agreement
whereby the company would not compel the city to buy any excess power produced by
any future co-generation plant.
11. ADJOURNMENT
The meeting was adjourned at 12:40 p.m..
~ uS).
Dave W. Crane
Mayor
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December 14, 1992
City Council Minutes
Volume 28, Page 238
1. CALL TO ORDER
The December 14, 1992, regular meeting of the Seward City Council was called to
order at 7:30 p.m. by Mayor Dave W. Crane.
2. OPENING CEREMONY
Police Chief Walker led the pledge of allegiance to the flag.
3. ROLL CALL
There were present:
Dave W. Crane, presiding, and
Louis A. Bencardino
James Krasnansky
Karen A. Swartz
Hugh Darling
Bruce Sieminski
Dale White
comprising a quorum of the Council; and
Darryl Schaefermeyer, City Manager
Fred Arvidson, City Attorney
Linda S. Murphy, City Clerk
4a. SPECIAL PRESENTATIONS
A. Proclamation - Obihiro. Tapan Appreciation Day (12/14/92). Mayor Crane
read a proclamation designating December 14, 1992, as Obihiro, Japan Appreciation Day.
B. Governor's Commendation Award - Than Haddeland. Jean Cripps
presented the Governor's Commendation Award to Seward resident Jhan Haddeland for
his actions which resulted in saving the life of his friend.
4b. APPROVAL OF MINUTES
Krasnansky moved to approve the November 16, 1992, regular meeting minutes
as presented; the motion was seconded by Darling and carried without objection.
5. APPROVAL OF REGULAR MEETING AGENDA
Krasnansky moved to approve the Regular Meeting Agenda as presented; the
motion was seconded by Swartz.
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Krasnansky moved to meet in Executive Session immediately following the close
of regular business ill order to discuss the George Howard litigation and the Afognak
litigation; the motion was seconded by Darling and carried by unanimous vote.
Schaefermeyer asked to delete New Business Item B (Chugach Sawmill proposed
lease incentives) since this item had been discussed at a special meeting on Friday,
December 11th.
The question was called, and the agenda was approved as amended by
unanimous vote.
6. BOROUGH ASSEMBLY REPORT
Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of
the most recent meetings of the assembly.
7. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING None
8. APPROVAL OF CONSENT CALENDAR
Krasnansky moved to approve the Consent Calendar as presented; the motion
was seconded by Swartz.
Sieminski asked to move Items E (Resolution No. 92-193), F (Perkins Coie invoice
for legal services), G (legal services report), K (request for authorization to cancel the
December 28th Council meeting) and M (resignation of Lucy Chaffin) from the Consent
Calendar to the regular meeting agenda.
The question was called, and the Consent Calendar was approved as amended
by unanimous vote. The following actions were taken:
A. Resolution No. 92-189. authorizing an application for grant funds for Phase
II of the Historic Preservation Plan Project, was approved;
B. Resolution No. 92-190. authorizing application for grant funds for the
preservation of the Jesse Lee Home, was approved;
C. Resolution No. 92-191, appropriating funds for the construction of an
elevator in City Hall, was approved;
n Resolution No. 92-192. approving a contract with Marathon Fuel Service for
the purchase of petroleum products, was approved; ( )
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E. Resolution No. 92-193. awarding a contract for winter maintenance of
Lowell Point Road and appropriating funds, was moved to the regular meeting agenda;
F. Perkins Coie invoice for 09/92 legal services totalling $16,607.20 was moved
to the regular meeting agenda;
G. Legal Services Report was moved to the regular meeting agenda;
H. ABCB notice of request for waiver of 3O-day operating requirement as filed
by New Seward HoteVNew Seward Saloon was noted for information;
I. Applications for games of chance and skill permits as filed by:
American Legion Auxiliary, Unit No.5
Seward Senior Citizens, Inc.
Alaska State Elks Association
were noted for information;
J. CY 1992 third quarter taxable sales report was noted for information;
K. Request for authorization to cancel the 12/28/92 Council Meeting was moved
to the regular meeting agenda;
L. Harbor Master Plan Update was noted for information;
M. Resignation of Parks & Recreation Department Director Lucy Chaffin was
moved to the regular meeting agenda;
N. City Quarterly Financial Statement was noted for information; and
o. Prison construction budget amendment was approved.
9. PUBLIC HEARINGS
10. PRESENTATIONS WITH PRIOR NOTICE ONLY
A. EDWARD WARD. Kenai Coastal Tours, Inc. Ward stated that this time
had been requested to follow up on letters sent to the Council last week requesting
permission to continue to operate Kenai Coastal Tours' day cruise business from its
current location. He noted that his company had commissioned a new vessel which was
to go into service during the 1993 season. He stated that the location requested would
substantially reduce the distance his customers would be required to traverse, thus
reducing the potential for liability to the city and Kenai Coastal Tours. Ward stated that
Kenai Coastal Tours was prepared to pay for an extension to the dock to accommodate
the longer vesseL ()
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Ward stated that Harbormaster Singleton had indicated that an ordinance change
would be required to allow the city to give preferential berthing to day cruisers. He
noted that several operators had recently been given preferential berthing with little or
no trouble, and he requested that the same courtesy be extended to his company. Ward
noted that his was a locally owned and operated company.
ll. ORDINANCES AND RESOLUTIONS
A. Ordinances for Introduction None
B. Ordinances for Public Hearing & Enactment
1. Copies having been made available to the public, Crane noted by title
only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code ~ 3.01.025, Police
Standards Act.
Notice of public hearing as posted and published as required by law was noted,
and the public hearing was opened. No one appeared in order to be heard, and the
public hearing was closed.
Swartz moved to enact Ordinance No. 92-24; the motion was seconded by
Krasnansky.
Arvidson suggested an amendment to remove "as amended from time to time"
from the new language.
Krasnansky moved to amend the ordinance by removing the phrase "as amended
from time to timei" the motion was seconded by Swartz and carried by unanimous vote.
The question was called, and the Ordinance was enacted as amended by
unanimous vote.
2. Copies having been made available to the public, Crane noted by title
only a proposed ordinance entitled:
An Ordinance of the City Council of the City of Seward,
Alaska, amending Seward City Code ~ 3.50.010, recognized
city holidays.
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. (
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December 14, 1992
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Krasnansky moved to enact Ordinance No. 92-25; the motion was seconded by
Swartz. The question was called, and the Ordinance was enacted by unanimous vote.
C. Resolutions
1. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, amending the city's PERS participation agreement to
allow Seward General Hospital to execute a separate
participation agreement.
Crane noted that the item had been postponed from the September 28th and
November 16th meetings and a motion to approve was on the floor.
Swartz stated that the Council had not received the additional information it had
requested. MacKay replied that the hospital administration had conducted several
employee meetings as well as meetings with individuals, and to his knowledge all of the
employee questions had been answered.
Krasnansky stated that, in 1985, the Council had approved Ordinance No. 552 in
order to give the hospital employees a better retirement plan, PERS. He suggested that
this change would affect the Code and Charter established relationship between the city
and the hospital and the hospital employees' status as city employees.
Schaefermeyer stated that this agreement would not change the relationship
between the city and the hospital nor the status of hospital employees.
The question was called, and Resolution No. 92-160 was approved with
Bencardino, Crane, Darling and Sieminski voting YES and Krasnansky and Swartz
voting NO.
2. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, appropriating funds for the purchase of new trash
containers for the downtown area.
Crane noted that this item had been postponed from the September 28th meeting
and a motion to approve was on the floor.
In response to a question from Sieminski, Schaefermeyer stated that the particular
container had been selected by the city and had been reviewed by the Downtown
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Merchants Association. He also noted that the cost of the containers would increase if
ordered after December 31st.
Bencardino asked why the Downtown Merchants were not allowed to pick the
design they wanted. Crane stated that, at the last meeting, the Downtown Merchants
had voted approve with the containers ~;elected by the city and recommended adoption
of this resolution.
Darling asked if the existing trash containers were to be refurbished and used in
other areas. Schaefermeyer stated that, if they were usable, they would be repaired and
placed elsewhere in the community.
The question was called, and Resolution No. 92-164 was approved by unanimous
vote.
3. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled:
A Resolution of the City Council of the City of Seward,
Alaska, authorizing the city manager to proceed with design
and economic studies for the B Street Dock.
Crane noted that this item had been postponed from the November 16th meeting
and a motion to approve was on the floor.
Sieminski moved to amend Resolution No. 92-188 by replacing it with Resolution
No. 92-188 (Substitute) as follows:
A Resolution of the City Council of the City of Seward,
Alaska, awarding a professional services agreement to
Ogden Beeman & Associates to perform a cruise ship dock
feasibility study and authorizing the City Manager to solicit
proposals for bathymetric studies for proposed dock facility
sites.
The motion was seconded by Bencardino.
Darling stated that it was his understanding that there would be an Adams Street
Cruise Ship Dock if the feasibility study showed that the city could amortize the debt,
and the city would continue to work towards a dock at B Street for the Ferry and IMS.
Schaefermeyer stated that the Council had not acted on whether to have one or
two docks. He noted that this feasibility study was being requested to ascertain the
viability of a cruise ship dock at Adams Street or elsewhere along Ballaine Boulevard.
In addition, the resolution would give the city manager the authority to solicit proposals
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for a bathymetric survey of the waters in the Adams Street area which would be used to
determine location of the dock if the city decided to go forward with it. He noted that
this resolution would not commit the city to any particular course of action. Schaefer-
meyer stated that the cmise ship dock appeared to be the most feasible alternative for the
city at this time; however, the bathymetric survey work needed to be done to narrow
choices for location.
RECESS: The meeting recessed at 8:25 p.m. and reconvened at 8:30 p.m.
Sieminski stated that he would like to separate the two issues so that the city could
move ahead with the cmise ship dock in order to have it operational for the 1993 season.
Swartz stated that by agreeing to this study, the city would set back the B Street
Dock project. She stated that the university would come through with funding and she
was concerned about providing a new dock for the Ferry. She added that she was also
concerned about safety issues at the Adams Street location.
Krasnansky concurred with Swartz. He stated that this proposal was not
complementary to the B Street Dock; however, it would be good to have the information
regarding the Ballaine Point location for future use. He stated that, since the city had
been working for some time on the B Street Dock, he hated to see monies or effort
diluted by focusing on another project at this time.
Schaefermeyer stated that he had not presented the idea, as indicated in the
Phoenix Log of "sinking" B Street Dock. He stated that the cmise ship dock design
would fit at the B Street location, and could be considered the initial phase of the B Street
project; however, there was a segment of the community that wished to see the cmise
ship dock located closer to downtown. He stated that it was never his intent to shelve
the B Street project. Schaefermeyer added that the economic study was needed no
matter where the dock was constmcted.
Crane stated that this was a project the community needed, and the studies were
required no matter where the dock was located. He stated that this proposal showed
that the city was moving forward. He noted that neither the University nor DOT had
budgeted money for the B Street Dock and added that the city must look at all of its
options and move forward without waiting for the state to do something.
The question was called on the amendment, and the amendment was approved
by unanimous vote.
The question was called on the main motion, and the resolution was approved
as amended by unanimous vote.
4. Copies having been made available to the public, Crane noted by title
only a proposed resolution entitled: (
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A Resolution of the City Council of the City of Seward,
Alaska, awarding a contract for winter maintenance of
Lowell Point Road and appropriating funds.
Sieminski moved to approve Resolution No. 92-193; the motion was seconded by
Bencardino.
Sieminski stated that the city should be getting funds from the Kenai Peninsula
Borough to help pay for this road maintenance since a portion of the road traversed
borough rather than city property. He stated that it should not be up to the city to
shoulder the entire burden of maintenance. Sieminski also objected to hiring a contractor
rather than doing the project in-house.
Swartz stated that the city did have an obligation to keep the road to the Sewage
Treatment Lagoon open.
Schaefermeyer stated that he was recommending this resolution. He noted that
the city had inherited this responsibility as well as the liability for keeping Lowell Point
Road open. He also noted that a city employee was very nearly lost last year while
attempting to minimally maintain the road. In addition, the city had limited equipment
and staff to maintain the city's roads and could not hope to keep Lowell Point Road open
and maintained during heavy snows. Schaefermeyer stated that someone must show
responsibility for the road. He noted that the private contractor could provide better
service in a more timely manner than could the city.
Swartz stated that, although money was tight, she felt it important for the city to
provide this service.
Bencardino stated that the major problem, in his opinion, was that the residents
of Lowell Point did not pay city taxes, and the city taxpayers should not subsidize this
service. Schaefermeyer stated that he would be recommending that the city-hired
contractor maintain the road only to the city limits and that the city ask the Borough
Road Maintenance District to maintain the borough portion.
Bencardino stated that the borough continued to allow subdivisions to be
developed in the Lowell Point area without any thought as to the need to upgrade the
road to allow adequate and safe access for the residents of the area. He stated that the
city should do something to encourage the borough to cease and desist anymore
development in the Lowell Point area until a plan was developed to take care of the
road.
Crane voiced his support for the resolution. He stated that someone must take the
lead in addressing this safety issue. (
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Darling asked if the city manager wished to reduce the amount of the contract
since he was recommending that the city maintain only the city portion of the road.
Schaefermeyer requested that the not to exceed figure remain the same. He stated that
this sharing of the responsibility should spur the borough to maintain its portion for the
borough residents of Lowell Point.
Sieminski expressed his concern that the city always contracted small jobs such as
this one, and he recommended that this be addressed when new equipment was
purchased.
Krasnansky asked the difference in cost between city employees doing the job and
utilizing a private contractor. Schaefermeyer stated that it was possible that the city
could do the job cheaper if the city had all of the equipment a private contractor had
available to it. He stated that the city did not have equipment suitable for maintaining
that particular road.
The question was called, and the resolution was approved by unanimous vote.
12. UNFINISHED BUSINESS
A. Seward Aluminum Fabricators request for lease. Gates briefly reviewed
the background of Schnell's request to lease city property. He stated that he had two
issues on which he required direction. He recommended that the city not offer the
incentives requested and he asked for direction with regards to the location of the lease.
He asked that, if the Council allowed Schnell to lease the prime piece of property he had
requested, the lease contain language which would allow the city to move him from that
area if there was an opportunity to lease the entire large parcel to one developer or
proposer.
In response to a question from Sieminski, Gates stated that the city had been using
$10,000 per acre for its base lease rate at SMIC. Sieminski stated that he could not
approve an incentive lease without some assurance that the city was getting something
from Schnell in return.
Swartz stated that it would be difficult to move a business once it was up and
running. She recommended using the smaller lease space for this development.
Bencardino asked if a building was to be constructed on the lease site. Schnell
stated that the building he intended to put up would house an SO-ft. vessel under cover.
He added that no foundation was planned for the structure and it could easily be moved
to another location.
Schnell stated that, without legally dedicated access to the alternative site, it would
not be feasible for him to operate his business there. He noted the current inability to
access the alternative site with the 250-ton boatlift. (
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I WHITE ARRIVED AT 9:25 p.m.
Gates noted that this proposal had not been taken to the Port Committee or the
Trade Board for review. Schnell stated that he needed a commitment from the Council
to take advantage of an SBA loan and the availability of a building at a reasonable price.
He stated that he would like to have the building up and people employed by March.
Sieminski stated that he would like for this to go to the Planning Commission and
the Harbor Committee. He added that he would like to see Schnell located at a
permanent site rather than on the prime acreage he had requested.
Sieminski moved to refer this request to the Planning Commission and the Port
Committee for review and recommendation; the motion was seconded by Darling.
Darling asked if travel lift access could be provided to the alternate site without
going through the 12-acre parcel. Diener stated that it would be quite difficult to move
a travel lift to the northern site without going through the 12-acre site, and even this
would require a dedication of access route across the larger site.
I
The question was called, and the motion carried with six YES votes and
Krasnansky voting NO.
B. Grain terminal update. Gates reviewed the materials in the agenda packet
as well as the history of the grain terminal disposal plan. He recommended that ACI not
be given a commission for future sales and that the relationship between the city and ACI
be terminated at the end of the current agreement. He also asked that the Council
confirm that the Price Chen proposal was unacceptable.
Sieminski concurred with Gates' recommendations. Swartz stated that the city had
worked with ACI in good faith and had done more than its share to aid in the sale of the
grain terminal components. She stated that it was time to sever the ties.
In response to a question from Bencardino, Arvidson stated that the extension had
expired and, if the city contacted ACI and told it that the agreement had been
terminated, there should be no liability problems when the city brokered the grain
terminal itself.
Krasnansky stated that the city should stick to the agreement. Crane stated that
ACI knew the risk going into the agreement and the city should get out of the contract
and sell the components without the help of ACI.
I
Council concurred with both recommendations of the administrationo
RECESS:
The meeting recessed at 9:50 p.m. and ~econvened at 10:00 p.m.
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13. NEW BUSINESS
A. Use of Cif\}' Attorney. Sieminski stated that the city should start now to
adjust its use of the city attorney to save money on attorney bills. He stated that the city
did not need the attorney at every meeting and suggested using teleconference at times.
He also suggested having the Mayor decide when the attorney should attend a meeting.
Sieminski stated that only the city manager and the city clerk should be allowed to call
the attorney without prior approval of one of the appointed officials. He asked that
Arvidson see that the city received invoices for legal services by the 10th of the month
following the month of service. Sieminski further suggested that the attorney sit between
the Mayor and Vice Mayor to advise them during meetings and that the City Manager
sit on the opposite side of the Chambers. He stated that this would create more room
for the public.
Crane stated that Sieminski's points were well taken. He recommended that some
of these questions come up in the January work session when legal issues were
discussed.
Sieminski objected to waiting, stating that the city needed to make a first step
immediately to contain legal costs.
Bencardino stated that it was time to start short-listing attorneys for interviews.
He suggested conducting the work session during the first week of January.
Crane asked how Council would like to handle Sieminski's recommendations.
Bencardino stated that the Clerk could set up chambers as requested by Sieminski.
Swartz stated that the city should begin conserving as much as possible, and she
agreed that telephone calls should be carefully monitored.
White stated that it would be best to address these issues in the January work
session. Sieminski objected once again, stating that the city had a well trained staff and
did not need the attorney at every meeting.
Arvidson concurred with Sieminski. He suggested that he be required to attend
no more than one meeting each month, and he assured the Council that he could be
available via telephone to participate in other meetings.
Crane suggested that all of the concerns of the Council be passed on to the Clerk
for distribution to the Council in the next agenda packet.
Darling agreed with Sieminski that there was no time like the present to start
saving money, and he noted that Arvidson had addressed everything except telephone
access. Schaefermeyer stated that there were a limited number of department heads who
accessed the attorney for any reason. He stated that most communications went through
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his office; however, it was vital that he be able to delegate certain activities and
responsibilities which meant that, of necessity, some department heads had a real need
to contact the city attorney from time to time. He stated that it would be very cumber-
some if the city manager had to be involved in every conversation with the attorney.
Crane moved that all councilmembers compile a list of city attorney concerns and
that these concerns be given to the city clerk to be forwarded to the City Council; the
motion was seconded by White.
Krasnansky stated that excessive attorney bills were a result of poor policy
decisions on the part of the City Council.
Sieminski agreed with Krasnansky that the major portion of the attorney bills
could be attributed to lawsuits; however, a lot of money could be saved through
conservative use of the attorney's time by the Council and the administration.
The question was called, and the motion carried with Bencardino, Crane, Darling
and Sieminski voting YES and Krasnansky and White voting NO.
B. Chugach Sawmill proposed lease incentives. DELETED
C. Inlet Salmon lease amendments. Gates noted that, in the summer of 1990,
Vince Goddard had asked for lease amendments to eliminate the construction obligation
associated with upland parcels; to allow Inlet Salmon to return the upland parcels to the
city; to allow consolidation of Inlet's activities on the Inlet Dock at SMIC; and to enter
into other lease amendments as deemed important by the city. At that time, the Council
approved the lease change concepts and directed the city to commence negotiations to
effect the changes. Gates noted that, to date, these changes had not been drafted since
the amendments would consolidate all Inlet Salmon activities onto land the city did not
currently own (SMIC Tidelands).
Gates noted that, under the terms of the lease agreement, Inlet Salmon received
free rent for 20 years on these two lots in exchange for building a dock for the city. Once
the dock was constructed, it was turned over to the city for $1.00.
Gates recommended the following course of action;
1. That the Council reaffirm for the record that the concept of the lease
amendments was still acceptable to the City Council, thus allowing the Kenai Peninsula
Borough Assessors office to forego billing Inlet Salmon for 1993 property taxes; and
2. That the Council offer to finalize the package of lease amendments
requested by both Inlet and the city with the dear understanding that the city did not
now own the underlying tidelands that would constitute the entire new lease area for
Inlet Salmon. (
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Krasnansky moved to accept the recommendations of the administration; the
motion was seconded by Swartz and carried by unanimous vote.
D. Perkins Coie Invoice for legal services and legal services report. Sieminski
moved to pay the invoice for September legal services totalling $16,607.20; the motion
was seconded by White.
Sieminski stated that he wanted the public to know the amount of the invoice and
requested that the legal services report be explained to the public. Schaefermeyer
reviewed both the Perkins Coie invoice and the legal services report. Arvidson asked the
Council to conduct an evaluation of his performance. The Clerk was instructed to
provide evaluation forms for the Council, and Krasnansky volunteered to tabulate the
results.
The question was called, and the invoice was approved for payment by
unanimous vote.
E. Request to cancel 12/28/92 Council meeting. Sieminski moved to cancel
the December 28, 1992, meeting as requested by the administration; the motion was
seconded by Darling and failed with Crane, Krasnansky and Swartz voting YES and
Bencardino, Darling, Sieminski and White voting NO.
F. Resignation of Parks and Recreation Director Lu<;)' Chaffin. Sieminski
stated that now that this position was empty, the city should review the job description
and the possibility of reorganizing the department. Schaefermeyer stated that the
position had been advertised within the city work force, and three applications had been
received as a result of that process. He stated that he had made no determination on the
applications received. Schaefermeyer noted that the Code set forth the procedure to be
followed in filling vacancies, and that process had essentially started with the posting of
the position in-house.
Bencardino stated that he had received more complaints on this situation than on
any topic in a long time. After listening to some of the comments from those active in
Parks and Recreation activities, he felt that Council should direct the city manager to
reorganize the entire department. He suggested a work session to talk this over with the
city manager.
Krasnansky stated that this department had significantly increased its revenues
under Chaffin's leadership.
Swartz stated that Chaffin had done a great job, having worked for and received
grants for parks projects. However, she agreed that it would be in order to schedule a
work session to explore this issue. Swartz thanked Chaffin for her contributions to the
parks system and wished her luck in her new position. ( 1
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Darling concurred with Swartz and stated that the city owed Lucy its thanks for
what she had done during her tenure as Parks and Recreation Director. He added,
however, that there was a real need to decrease spending, and the Council should look
at its options while the position was vacant.
Crane noted that a work session would be scheduled under Council Discussion.
14. CITY MANAGER REPORTS
SCHAEFERMEYER stated that he would be taking 2-weeks of annual leave
commencing Monday and returning to work on the 4th of January.
15. COUNCIL DISCUSSION
DARLING stated that the Hospital Board had received its annual audit at the last
Board meeting. He stated that revenues were up and expenses were down.
BENCARDINO noted that the city had made headlines in a Greensboro
newspaper article regarding the television series, Northern Exposure. He stated that the
newspaper said that Seward had it all and had included a photograph of Seward on the
front page. Bencardino also noted that the local tour boat owners consistently advertised
in publications throughout the country, adding that the public often did not realize how
much private enterprise paid to promote the city.
BENCARDINO asked if the city would have to pay to get the Tidelands
transferred. Schaefermeyer responded that this had not yet been determined. He
indicated that the state did not have the staff to proceed with the Tidelands transfer at
the present time, and he noted that one other community had been required to pay the
cost of hiring a temporary staff person to shepherd its tidelands transfer through the state
office. Bencardino asked the city manager to give K. Martin a deadline of February 15th
to resolve this issue. Schaefermeyer noted that Martin would have to put all of his other
work aside to accomplish this.
BENCARDINO asked if the elevator in the Senior Center was working properly,
and he asked who was responsible for its maintenance and repair. Schaefermeyer stated
that the city, as owner of the building, was responsible. He further noted that the city
was attempting to resolve the elevator problems.
WHITE noted the recent trip to Obihiro, Japan, and he thanked Deputy Clerk
Patsy Jones for the work she had put into making it a successful trip. He noted that
some of the delegation also visited the city's Sister Port City, Kushiro. He thanked
Chaffin for her work as Parks & Recreation Director.
SIEMINSKI asked for a status report on permitting for the proposed Nash Road
Small Boat Harbor. Gates stated that, since July, the city had been working towards
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obtaining a Corps permit for the project. He noted that a draft permit was now in hand
and added that he heard just last week that the District Director of the Corps of
Engineers had fought a hard battle with 'Fish and Game and would be issuing the permit
as requested by the city. Sieminski stated that he would like to see the time frame for
development of the Nash Road Boat Harbor.
SWARTZ thanked Bencardino for bringing the newspaper article from Greensboro
to the city's attention. She commended the citizens of the city for their community spirit.
CRANE also noted the recent trip to Obihiro, Japan, and highlighted some aspects
of the trip. He stated that the delegatiort had visited the Osaka Aquarium. Crane
thanked Chaffin for her service to the city. He stated that he regretted missing the
dedication of the Rotary Boardwalk. Crane also stated that he had participated in the
graduation of prison GED students.
CRANE scheduled several work sessions as follows:
1. Short listing attorney applicants - OV07/93, 7 p.m.
2. Legislative priorities - 01/12/93, 7 p.m.
3. Joint work session with Hospital Board - OV05/93, 7 p.m.
4. Parks & Recreation department review - OVI4/93, Noon
5. Open Meetings Act with Boards & Commissions - To be announced.
16. CITIZENS' DISCUSSION
JACK SELFORS, Lot 1, Block 3, Lost Lake Subdivision, stated that he had
requested moorage at the Small Boat Harbor in 1978 and had been assigned Slip No. E5
three years ago. He noted that he had then purchased a Day Tour Boat and placed it
in E5. This boat was later leased to Kenai Coastal Tours, and this company had used his
slip for the three years ending in 1992. He stated that he had paid the stall rent every
year. Selfors further noted that he was still negotiating a lease agreement with Kenai
Coastal Tours and others.
BOB V ALDATTA, 528 Fifth Avenue, objected to leasing what he characterized as
prime mercantile property for boat repair. He asked when the city intended to develop
a master plan for the SMIC area.
ED WARD, 5750 Mego Drive, Anchorage, stated that Kenai Coast had commis-
sioned the new boat to obtain more passenger space. He stated that he was not asking
the city to take Selfors space, but to relocate him.
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I 17. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
SIEMINSKI stated that the Boat Harbor needed to work on supplying transient
dock space for passenger loading and unloading only. He suggested that the city could
charge a head tax for use of this dock.
18. ADJOURNMENT
The meeting was adjourned at 12:02 a.m., and after a short recess, the Council
reconvened in Executive Session to discuss the Howard litigation and the Afognak
litigation.
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