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HomeMy WebLinkAbout1992 City Council Minutes I I I 141 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 ( CSE154997 ] 142 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 142 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. ) ( C51: 154998 I I I 143 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 143 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 (CSE154999 1 -/1' "'. .- ~ -. ----., City of Seward, Alaska January 13, 1992 City Council Minutes 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 ( CSE 155000 1 I I I 145 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 145 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. ( CSE155001 1 146 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 146 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. ( C Sf 155002 ) I I I 147 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 147 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. ( CSE 155003 ) 7_4:8 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 148 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. l CSE1~5004 1 I I I 1~9 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 149 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. ( C SEl55005 1 150 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 150 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. ] ( CSE155006 I I I 151 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 151 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. ( CSEl55007 ) .', 1 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 152 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. t CSE1550Q8 1 I I I 153 City of Seward, Alaska January 13, 1992 City Council Minutes Volume 27, Page 153 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 ~&1-1- .t,o,;{b, )J. Donald W, Cripps Mayor . - 1I; ~,~ ~:1 ~ ..' ,\ L -- ( C SE 15500Q 1 154 City of Seward, Alaska January 17, 1992 City Council Minutes Volume 27, Page 154 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 ( CSE 155010 I I I 155 City of Seward, Alaska January 17, 1992 City Council Minutes Volume 27, Page 155 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;; ~ { i /P/f/[Li (... , Donald W. Cripps Mayor '" . WI' '''V + ""'"'. : __. '.C',+ ~'" .." u., "" f' 1, 1~.. ..' ,. 4,..~".... e:,'f.. '~. OF A\.fo.: ( CSE155011 ) 156 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 (CSE15501Z 1 I I I 157 City of Seward, Alaska January 20, 1992 City Council Minutes Volume 27, Page 157 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 { ("155013 J - -8 j.~) City of Seward, Alaska January 20, 1992 City Council Minutes 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, .,' J t -" tfhtAi:t{>, Us~ Oonald W. Cripps Mayor -... .... "v !t....,..... \r'''4~-'~,,~~'''~i-~ , titf)pf ~r:d, Alaska 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 t CSE155014 ) I I I 159 City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 159 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 -(0 City of Seward, Alaska January 27, 1992 City Council Minutes 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 ( CSE15501b 1 I I I 161 City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 161 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 ) - ~'"' (- / --'. ,,1;._ City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 162 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: t CSE15501B JI I I I 163 City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 163 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 ) ..... ~., i ,_. City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 164 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 ( CSE1550l0 ) I I I 165 City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 165 $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 ) ~.cc 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 ) I I I 167 City of Seward, Alaska January 27, 1992 City Council Minutes Volume 27, Page 167 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 .' 7 .. / ./ ;'AI ~ 1/~~p(~'~( Donald W. Cripps Mayor (City Se,~~c", c'.f Sf t1,t ..., ":". '1/;) " ^< .:" ...,.....-, ' A:::! :: ~, ,....,., : i~ <..,~ // \,.,.., +- ~ .....' -..'? " '~' QF p,.~,v~ ,...-....,..~ ( C SE 155023 1 ... ,,-...-. ,. \ , , 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 I I I ; , ... ~ ... City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 169 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, ( CSE155025 ) --0 _. I _ City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 170 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. (CSE1">">Ol6 1 I I I 171 City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 171 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. ( CSEl55027 J - -r. , , City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 172 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. e CSEl550Z8 ) I I I 173 City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 173 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 sr [51:155029 1 174 City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 174 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. ( CSE 155030 1 I I I 1'1;' City of Seward, A1o.ska January 29, 1992 City Council Minutes Volume 27, Page 175 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. (e,Et"on l ~""6 _'_ II City of Seward, Alaska January 29, 1992 City Council Minutes Volume 27, Page 176 11. ADJOURNMENT The meeting was adjourned at 6:40 p.m. Q~/ C;hc Donald W. Cripps, Mayor ~ r , CMC/AAE City Council Minutes Volume 27, Page 176 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 r CSE155G3l ) I I I 177 City of Seward, Alaska FelJruary 10, 1992 City Council Minutes Volume 27, Page 177 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 ( CSf1550B ) - r-- () . I () City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 178 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; ( CSE155034 1 I I I 17~ City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 179 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; ( C Sf 155035 ) -'r _.'. :,,1 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 180 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. ( C51:155036 ) I I I 181 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 181 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. ( (Sf 155031 1 "1' ()~) . (".L.1 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 182 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. ( C SE 155038 1 I I I Iv'. au City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 183 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 ( CSE155039 1 "184,: City of Seward, AZlzska February 10, 1992 City Council Minutes Volume 27, Page 184 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. ( CSE1550'tO 1 I I I 185 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 185 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. r CSE155041 ) 186 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 186 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. ( CSEl'i504l 1 I I I 187 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 187 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 ( CSE 155043 ) J88 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 188 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 (CSE155044 1 I I I 189 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 189 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. (CSE155045 1 190 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 190 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 ( CSE155046 ] 191 City of Seward, Alaska February 10, 1992 City Council Minutes Volume 27, Page 191 I 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. ( CSE155047 1 192 City of Seward, Alaska February 18, 1992 City Council Minutes Volume 27, Page 192 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, ( CSE 155048 1 I I I 193 City of Seward, Alaska February 18, 1992 City Council Minutes Volume 27, Page 193 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. ( CSE155049 1 194 City of Seward, Alaska February 18, 1992 City Council Minutes Volume 27, Page 194 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. ( C SE 155050 ) I I I 195 City of Seward, Alaska February 18, 1992 City Council Minutes Volume 27, Page 195 11. ADJOURNMENT The meeting was adjourned at 12:45 p.m. /! : 1/ / C1 ~~/dtiu , ,h Donald W. Cripps Mayor -P Patricia JOQ.e~O. ... .1:I''f Acting CitY'~4)l'~.A '.; .,~-- ~.~ ~ ~.~~ ", (City Seal) a E' ~ 1T ': . , ;:. v l:lj,~ : " ~ ." ". ~c" ~"/ ..f'J- ...~~ 10 ~~.., i-'" . ~""-r ..... "c:i 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 ( CSE155051 ) :06 City of Seward, Alaska 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. ( CSE15505l 1 I I I 197 City of Seward, Alaska February lA, 1992 City Council Minutes Volume 27, Page 197 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 r SSE155053 1 198 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 198 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 ( CSE 155054 1 I I I 199 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 199 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. ( CSE155055 ) 200 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 200 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 (CSE1550Sb 1 I I I 201 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 201 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- ( CSE1S5057 1 202 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 202 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. ( CSElS5058 1 I I I 203 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 203 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. ( CSE155059 1 204 City of Seward, Alaska February 24, 1992. City Council Minutes Volume 27, Page 204 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. ( CSE155060 1 I I I 205 City of Seward, Ala,9ka February 24, 1992 City Council Minutes Volume 27, Page 205 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. ( CSE 15 5061 ) 206 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 206 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. ( C Sf 155062 ) I I I 207 City of Seward, Alaska February 24, 1992 City Council Minutes Volume 27, Page 207 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 ( CSE15S063 1 ?08 City of Seward, Alaska February 26, 1992 City Council/Hospital Board Minutes 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 ( (Sf 155064 1 I I I 209 City of Seward, Alaska February 26, 1992 City Council/Hospital Board Minutes Volume 27, Page 209 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. r C SE 1550&5 ) 210 City of Seward, Alaska February 26, 1992 City Council/Hospital Board Minutes Volume 27, Page 210 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. ( CSE:l5506b ) I I I 211 City of Seward, AL'lska February 26, 1992 City Council/Hospital Board Minutes Volume 27, Page 211 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 ( (Sf 155067 ) , ('111 n .~U, City of Seward, Alaska February 26, 1992 'City Council/Hospital Board Minutes Volume 27, Page 212 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 ( C SE 155068 1 I I I 213 City of Seward, Alaska February 26, 1992 City Council/Hospital Board Minutes Volume 27, Page 213 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 ~~WJi;~t1'P CJ .., "....:.a :~ - ..... ~ ,..-. . ~EAL ~t2~ 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. ( CSEl')5069 ) 214 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 214 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. ( CSE 155070 ) I I I 215 City of Seward, AlMka March 9, 1992 City Council Minutes Volume 27, Page 215 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; r CSE15501l ) ,..,.., ,... .:; I.i') City of Seward, AlaSka March 9, 1992 City Council Minutes Volume 27, Page 216 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 ( CSEl55072 ) I I I 217 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 217 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: (CSEl55073 ) 218 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 218 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 ( C SE 155074 1 I I I 219 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 219 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. ( CSEl55075 1 220 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 220 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. ( CSE 155076 1 I I I 221 City of Seward, A!J1Ska March 9, 1992 City Council Minutes Volume 27, Page 221 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. ( CSE155077 ) 222 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 222 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 ( CSEl55078 1 I I I 223 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 223 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. ( CSf 1550 79 ) .?24 City of Seward, Alaska March 9, 1992 City Council Minutes Volume 27, Page 224 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 r CSE155080 ) I I I 225 City of Seward, A.laska March 9,1992 ' City Council Minutes Volume 27, Page 225 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. ( CSE 155081 J 226 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) ( CSE155082 1 I I I 227 City of Seward, Alaska March 19, 1992 City Council Minutes Volume 27, Page 227 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 ) 0?8 ~.. - ...-.... City of Seward, Alaska March 19, 1992 City Council Minutes Volume 27, Page 228 ,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. ( CSE 155084 1 I I I 229 City of Seward, Alaska March 19, 1992 City Council Minutes Volume 27, Page 229 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: ( CSE155085 ] / 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. --< In as. City Cle (~~:;;;~" :/"< ,,,,.. ....Al'...,...\ f" ".'(' ,...v ';". C.l.'<l' . to - ('<it ~ .J~ :, . . ~ . : . . .. -.--- . ....~~ ,\~,:"r..,:J' p .,~ ....~.~~,.i>.C:>""-# . 4rt Of ",\.,,<, (:i '. ~~!C;~ Donald W. Cripps --? Mayor ( C SEl5508& ) I I I 231 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 1 032 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; ( CSE155088 ) I I I 233 City of Seward, Alaska March 2.3, 1992 City Council Minutes Volume 27, Page 2.33 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. ( CSE155os9 ] 234 City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 234 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 ( CSE 155090 1 I I I ,,- '/ .z I" /-.J.VV City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 235 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 (CSE155091 ) 236 City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 236 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. ( C Sf 155092 ) I I I :-~ -:)} 1 City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 237 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 ( CSEI.55093 ) ') -../ \, "...: t_..lt City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 238 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 ( CSE155094 ) ,I I I 'Itl '. >, .:) City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 239 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. (CSEl55095 ) 0.10 ,,~-:.c City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 240 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 ( CSE 155096 ) I I I 241 City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 2Al 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 ( CSE 155097 ) 242 City of Seward, Alaska March 23, 1992 City Council Minutes Volume 27, Page 242 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. ( C SE 155098 ) City of Seward, Alaska March 23, 1992 I 243 City Council Minutes Volume 27, Page 243 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 . ' 1. CALL TO ORDER / l.I'/~ LL&'1t~'ft;:V '.6 ~ '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. I ( CSE155099 1 ?,44 City of Seward, Alaska April 2, 1992 City Council Minutes Volume 27, Page 244 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) ( CSE155100 1 I I I 245 City of Seward, Alaska April 2, 1992 City Council Minutes Volume 27, Page 245 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 ( "'15510' J 246 City of Seward, Alaska April 2, 1992 City Council Minutes Volume 27, Page 246 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 ( CSE1')5102 1 I I I 24'7 City of Seward, Alaska April 2, 1992 City Council Minutes Volume 27, Page 2A7 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. ( (Sf 155103 J 248 City of Seward, Alaska April 2, 1992 City Council Minutes Volume 27, Page 248 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. r C Sf 155104 ) I I - 1 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 1 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. ( C SEl55108 1 2 City of Seward, Alaska April 13, 1992 City Council Minutes 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. ( C SE 155109 1 I I I 3 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 3 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 ( :: SE 155110 1 4 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 4 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; ( C5E 155111 ] I I I 5 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 5 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 ( CSE15511l ] 6 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 6 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: r CSE155113 ) I I I 7 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 7 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. ) (CSE155114 _ 8 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 8 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. ( CSE 155115 1 I I I 9 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 9 ", 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. (CSEl55116 ) 10 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 10 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 t CSE 155117 ) I I I 11 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 11 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. ( CSEl55118 ) 12 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 12 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., (CSEl5,)1l9 ) I I I 13 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 13 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. ( (Sf 155120 ) 14 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 14 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; ( CSE1551l1 ) I I I 15 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 15 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 ( : Sf 155122 ) 16 City of Seward, Alaska April 13, 1992 City Council Minutes Volume 28, Page 16 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 ( CSE1551l3 1 I I I 17 City of Seward, Alaska April 13, 1992 City Council Minutes 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. ( CSE1SS124 1 18 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. (CSE1551l5 ) 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-;) /' ,/ City Council Minutes Volume 28, Page 19 / ..'> (/ I / '--'" 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 ( C SE 155126 1 19 20 City of Seward, Alaska April 22, 1992 City Council Minutes Volume 28, Page 20 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. -. -..... : , ~ ". '" ~~ ... " "'~4't' 1, .........-+-'t' ,J'".. ............ G,) "~'!"f Of ,,\.,....~.. ,."..,~'1'~ ''v '-.. .J '--t ,j;6.t'l . I ~ ~1' ~ Donald W. Cripps Mayor . . SEAL ( CSE:1551Z7 1 I I I 21 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 21 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. ( C SE 155128 ) '-2 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 22 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: ~ CSE1551ZQ :t - I - 23 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 23 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 ( CSE 155130 1 24 City of Seward, Alaska 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 ( CSE155131 1 - I - 25 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 25 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. (CSE1">5132 ) 2~ City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 26 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. ( CSE1551B 1 I I I 27 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 27 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. ( C Sf 155134 1 28 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 28 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. ( <'H"n. ) I I I 29 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 29 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. [ CSE155136 1 30 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 30 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. (CSE15S131 ) I I I 81 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 31 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 ) 32 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 ( CSE 155139 ) I I I 33 City of Seward, Alaska April 27, 1992 City Council Minutes Volume 28, Page 33 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 ) B4 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. l CSE155141 1 85 City of Seward, Alaska May 11, 1992 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 ] S6 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; r C SE 155143 ) I I I 37 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 37 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 SR City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 38 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 ) I I I 39 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 39 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 40 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 ) I I I 41 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 41 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 42 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 42 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 I I I 43 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 43 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 ) 44 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 44 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 II I I 45 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 45 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 ) 4R City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 46 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 t: CSE1SS1S3 :t II I I 47, City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 47 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. ( CSE155154 ) 48 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 48 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 r CSE155155 ) II I 49 City of Seward, Alaska May 11, 1992 City Council Minutes Volume 28, Page 49 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 - '/ / P7J{id:c ~ ~ Donald W. Cripps Mayor ( CSf1>51>6 J 50 City of Seward, Alaska May 18, "1992 City Council Minutes 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 II I I 51 City of Seward, Alaska May 18, 1992 City Council Minutes Volume 28, Page 51 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 ( : SEl55158 1 52 City of Seward, Alaska May 18, 1992 City Council Minutes 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. t: CSE1551S9 ~ II I I 53 City of Seward, Alaska May 18, 1992 City Council Minutes Volume 28, Page 53 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 ) 5~ 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 (0).,''1.1 1 II I I 55 City of Seward, Alaska May 18, 1992 City Council Minutes Volume 28, Page 55 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 56 City of Seward, Alaska May 18, 1992 City Council Minutes Volume 28, Page 56 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 ) u I I 57 City of Seward, Alaska May 18, 1992 City Council Minutes Volume 28, Page 57 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 ~ y> Of Sf/.st'~ (City,-Seal).,aftJol.-,:'..1.t\ '\, ::5. ~(P"'" 'r""f If;.. .;! 0 , v...,. ~" -... SEAt. ,I ~ " / /;U~ffi/ . / ' ",,y-t.-t &it- / Donald W. Cripps Mayor // ~/'~ . < . ~ ........ \ .... ,,~< ...'t. ,:' " ,v&. ......... '-..s> '..:--..1.............-, o,,;I'Ai1' ...",..' ~~ ./ ~. ( 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. ( C SEt S5165 1 I I I 59 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 59 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. ( CSE155166 ) 60 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 60 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: (CSE155167 ) m I I 61 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 61 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 ( CSElSS168 1 ~2 City of Seward, Alaska May 27,1992 City Council Minutes Volume 28, Page 62 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 (<sE"".. ) I I I 63 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 63 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. r CSE155170 ) 64 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 64 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 Il eSElSSl11 ]I I I I 65 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 65 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. ( C5<155172 J 6f; City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 66 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. ( C5E155113,l I I I 67 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 67 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. ( CSE155174 1 68, City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 68 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. t CSE155175 ] I I I 69 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 69 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. ( CSE155176 ) '70 City of Seward, Alaska May 27, 1992 City Council Minutes Volume 28, Page 70 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 t CSE155177 ] I I I . 71 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 71 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. C CSEl"17, J 72 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 72 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; (esn'''?> 1 I I I 73 . City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 73 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 (CSE155180 1 74 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 74 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 ( CSE155181 ) I I I 75 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 75 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. ( :: SE 155182 ] 76 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 76 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 $4,415 to the personnel line item in order to reinstate the summer office aide position; the moti.on was seconded by Dunham. Crane recommended approval of the amendment. He ,stated that he had toured the city records vault and had been shown the amount of work needed to be completed by the Deputy Clerk this season. He noted that without the summer office aide, important projects such as this could not be completed. Bencardino stated that positions such as this one were good for the city. He suggested that any position cuts should be in full-time, not part-time help. The question was called, and the amendment was approved by unanimous vote. Bencardino stated that there were still several budget areas which required further discussion by the Council, adding that he did not think the Council could vote on the budget at this meeting. He stated that the administration had made very few real cuts and had failed to budget for needed equipment and building maintenance. He stated that if the city failed to eliminate some positions this year, even more drastic steps would be required next year to balance the budget. Bencardino stated that he was surprised that the Council did not have another work session before this meeting to iron out budget details. He also objected to cutting only part-time help from the Parks and Recreation Department rather than eliminating one of the full-time positions. He added that the Council must address the concerns of the public and make additional cuts in the budget. .( CSEl55183 1 I I I 77 City of Seward, Al4$ka June 8, 1992 City Council Minutes Volume 28, Page 77 j 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. ( CSE155184 ) '78 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 78 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. ( CSE155165 ) I I I 79 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 79 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: ( CSE155186 ) 80 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 80 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. ( eSE155187 ) I I I 81 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 81 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. l CSE155188 1 ~2 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 82 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. ( CSt 15518q ) I I I 83 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 83 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. ( CSE155190 ] 84 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 84 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. . (CSE155191 1 I I I 85 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 85 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 ( CSf 155192 ) S6 City of Seward, Alaska June 8, 1992 City Council Minutes Volume 28, Page 86 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.. / I . 7 /. /,)- L :2.' /t.- -t~zi' cf, Cr-z..- 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. .( CSE:155193 1 I I I 87 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 87 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 (CSE155194 J 88 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 88 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 ( CSE155195 ] I I I " 89 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 89 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 ( C S E 15 51 96 1 90 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 90 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. r CSE155197 1 I I I 91 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 91 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. ( CSEl55196 1 92 City of Seward, Alaska June 10, 1992 City Council Minutes Volume 28, Page 92 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 ( CSE1S5199 1 I I I 93 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 93 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. t C SE 155200 J 94 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 94 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 t CSE 155201 ) I I I 95: City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 95 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. ( CSE155202 ) 96 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 96 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. ( CSE155203 ) I I I 97 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 97 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. ( CSE155204 1 98 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 98 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 I I I 99 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 99 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. ( C SEl55206 ) 100 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 100 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. t CSE 155207 1 I I I f 10] City of Seward, Alaska June 22, 1992 City Council Minutes 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. t CSE 155208 1 102 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. ( "'fl',,". J I I I 108 City of Seward, Alaska June 22, 1992 City Council Minutes Volume 28, Page 103 . 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. ( CSEl55110 ] 104 City of Seward, Alaska June 22, 1992 City Council Minutes 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. ,( kf2~/ / < I-- (Yi--td '--- -~ -~ Donald W. Cripps /- Mayor -- . ... ,... "....... ~. . ~ . ...."Cf. ~~.... t oS' ....~.. ,,~......" .,(" ,": -'-.'r: ......... ..C;)/r ci';f2.&..Ofa ~tn~" Ju~ '2Z1Wrf-'- 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 ( CSE 155211 ) I I I 105 City of Seward, Alaska June 24, 1992 City Council Minutes Volume 28, Page 105 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 ( CSE155212 1 lOfi 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: t CSEl55l13 1 I I I City of Seward, Alaska 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 . ~ -.- . -. .......'" ~'\,:'~' oS' ""~" 1.~~..'..."/. /:'!~ ~::-fLL_ Vice Mayor t CSE 155214 1 108 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' ) 109 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. ~ . / ~ q;- ~t%~Cj ;?h Donald W. Cripps Mayor ", __ . f ". '" ",.: l oJ'.....~+.. 1, \.~~..:""P~ '''f ......... ~T" /' ,~~_ ~f~/... I ( 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.. ( CSE155217 ) I I I 111 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 ( CSE155218 ) 112 City of Seward, Alaska July 13, 1992 City Council Minutes 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. t CSE155219 1 I I I 119 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 113 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 11~ 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 ) I I I 115 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 ( CSE155212 1 116 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 116 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. ( CSE 155223 ) I I I 117 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 117 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 ( CSE155224 1 l1R City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 118 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- l CSEl55225 1 I I I 119 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 119 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 ( CSEl55226 ) 120 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 120 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. ( <Sf,,,>21 ) I I I 121 City of Seward, Alaska July 13, 1992 City Council Minutes Volume 28, Page 121 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 City Council Minutes Volume 28, Page 121 '-"'.......... 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) ( CSE155228 :J 122 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 122 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 (CSE1"'>' J I I I 123 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 123 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 ( C SE 155230 ) 124 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 124 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 t CSEl55231 1 I I I 125 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 125 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. ( C51:'155232 1 126 City of Seward, Alaslal July 27, 1992 City Council Minutes Volume 28, Page 126 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. ( C SE 155233 ) I I I 127 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 127 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. ( CSE155234 1 128 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 128 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. ( CSE155235 ) I I I 129 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 129 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. (::SE155236 1 1~n City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 130 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 ( (SE 155Z37 1 131 City of Seward, Alaska July 27, 1992 City Council Minutes Volume 28, Page 131 I 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 :. ~ ;,. __ : t ,.;'~\"(" ~", .... J ,,~ ....~.l' 1. \~....~~,( I'''''f.~.'~~!': .( ~m.cQJ'.,iir<t'l.Ttiska 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 ( CSE1S5238 ) 132 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 132 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. ( CSE155239 1 I I I 13g City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 133 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. ( CSE155240 ) 134 City of Seward, Alaska August 10, 1992 City Coul1cil Minutes Volume 28, Page 134 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 ( CSE155241 ) I I I 135 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 135 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. ( C SE 155242 ) 136 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 136 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. ( CSt 155243 1 I I I 137 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 137 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. (CsE15"" ) 138 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 138 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 (CSE155245 ) I I I 139 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 139 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. (eSE'55'" 1 140 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 140 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. ( CSE155247 1 I I I 141 City of Seward, Alaska August 10, 1992 City Council Minutes Volume 28, Page 141 <--. .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 ( CSE155248 1 142 City of Seward, Alaska August 19, 1992 City Council Minutes Volume 28, Page 142 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 ( CSE 155249 1 I I I 143 City of Seward, Alaska August 19, 1992 City Council Minutes Volume 28, Page 143 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. ( CSE155250 ) 144 City of Seward, Alaska August 19, 1992 City Council Minutes Volume 28, Page 144 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 ( C SEl55251 1 I I I 145 City of Seward, Alaska August 19, 1992 City Council Minutes Volume 28, Page 145 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 ( CSE155l52 1 14f1 City of Seward, Alaska August 19, 1992 City Council Minutes Volume 28, Page 146 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 ( CSE155253 1 I I I 147 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 147 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 ( CSf 15"5, ] 148 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 148 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; ( CSEl55255 ) I I I 149 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 149 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. ( CSE155256 ) 150 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 150 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. t C Sf 155257 ) I I I 151 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 151 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. ( CSEl55258 ) 152 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 152 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: ( CSEL55259 1 I I I 153 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 153 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. ( C Sf 155260 1 154 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 154 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 . ( CSEl55261 ) I I I 155 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 155 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. ( CSE155262 ) 156 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 156 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 ( C SE 155263 1 I I I 157 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 157 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. ( CSEl55264 1 1SR City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 158 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. ( CSEl55265 1 I I I . . ., 159 City of Seward, Alaska August 24, 1992 City Council Minutes Volume 28, Page 159 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. ~ ~,,~ ~~N~ Heverly Dunha Mayor ( C SE 155266 ) -' 160 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 160 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. ( CSE155267 1 I I I 161 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 161 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; ( CSEl55268 1 , A9. City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 162 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) I CSE155269 I I I I 163 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 163 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. ( CSE155270 ) 164 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 164 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. ( CSElS.5271 ) I I I 165 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 165 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. (CSEl5527Z ) , (j{i City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 166 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. ( CSE 155273 ] I I I 167 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 167 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. ( CSE 155274 1 168 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 168 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 (CSE1552.75 ) I I I 169 City of Seward. Alaska September 14, 1992 City Council Minutes Volume 28, Page 169 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. ( CSE155276 1 170 City of Seward, Alaska September 14. 1992 City Council Minutes Volume 28. Page 170 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 I I I 17] City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 171 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 1 172 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 172 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 ( CSEl55279 1 I I I 179 City of Seward, Alaska September 14, 1992 City Council Minutes Volume 28, Page 173 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 1 174 City of Seward, AlaskJl 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 (CSE155281 1 I I I 175 City of Seward, Alaska September 15, 1992 City Council Minutes Volume 28, Page 175 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. ( CSE155282. ) 176 City of Seward, Alaska September 15, 1992 City Council Minutes Volume 28, Page 176 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 ( CSEl55l83 1 I I I 177 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 177 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, ( C SEl552 84 ) ., 178 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. (CSEl55285 ] I I I City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 179 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.; ( CSE155l86 1 City of Seward, Alaska September 28, 1992 City Council Minutes 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. t C SE 1552 87 1 I I I 181 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 181 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 ( CSEl55l88 182 City of Seward, Alaska September 28, 1992 City Council Minutes 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. t CSE1552S9 ) I I I 183 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 183 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 ) 184 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 184 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 ( CSEl55291 I I I 185 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 185 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. ( CSE155292 1 '8~ 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 ( ::SE155293 ) I I I 187 City of Seward, Alaska September 28, 1992 City Council Minutes Volume 28, Page 187 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 ( CSE155294 1 188 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: ( _ CSE155295 ) I I I 189 City of Seward, Alaska September 30, 1992 City Council Minutes Volume 28, Page 189 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 ( CSE155296 1 190 City of Seward, Alaska 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) I I I 19] 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: ( CSE 155298 ) 192 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. ( ("155299 ) I I I 193 City of Seward, Alaska October 7, 1992 City Council Minutes Volume 28, Page 193 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) ( CSEl55301 I I I 195 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. ( CSEl55303 J I I I 197 City of Seward, Alaska October 12, 1992 City Council Minutes Volume 28, Page 197 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: () _ ::SE155305 . - I I 199 City of Seward, Alaska October 12, 1992 City Council Minutes Volume 28, Page 199 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 ) UNFINISHED BUSINESS 200 City of Seward, Alaska October 12, 1992 City Council Minutes 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 ( CSEl55307 ) I I I 201 City of Seward, Alaska October 12, 1992 City Council Minutes Volume 28, Page 201 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) CSE155308 ?n? , 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 (CSE155309 1 I I I City of Seward, Alaska October 12, 1992 City Council Minutes Volume 28, Page 203 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. I) jf . ($fA (City Seal) 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 ) comprising a quorum of the Council; and 203 r'!1.... rt ...\..... ' City of Seward, Alaska October 16, 1992 City Council Minutes 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. ( C Sf 155311 ) 205 City of Seward, Alaska October 16, 1992 City Council Minutes Volume 28, Page 205 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. I C-~0fH2, CSEl5531Z ] 20fi 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 ( CSE 155313 1 I I I 207 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 207 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 ( CSE155314 ) 208 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 2lJ8 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 I I I City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 209 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. ( CSEl55316 .' '.< '.~ 209 1 21.0. City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 210 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 ( CSE155317 1 I I I 211 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 211 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 ( CSE155318 1 212 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 212 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 ( CSE155319 ) I I I 213 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 213 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 CSE155320 ) 214 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 214 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. ( CSE 155321 1 I I I 215 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 215 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. l CSE155311 1 216 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 216 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 ( CSE1553l3 1 I I I 217 City of Seward, Alaska October 26, 1992 City Council Minutes Volume 28, Page 217 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. ( CSE 155324 1 21R, City of Seward, Alaska October 26, 1992 City Council Minutes 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 ] "",~;""",,~'r-~~'" , v 219 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 219 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 ( C Sf 155326 1 220 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 220 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 t CSE155327 I I I 221 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 221 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 1 222, City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 222 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 I I I 223 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 223 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. ( CSE155330 1 224 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 224 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 ) I I I 225 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 225 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. ( :: SEl553 32 J 22~ City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 226 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 I I I City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 227 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 227 1 228 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 228 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, ) ( CSEl.'5'5335 I I I 229 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 229 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. ( CSE155336 1 230 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 230 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 ( CSE155337 1 I I I 231. City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 231 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 ( CSElS5338 1 " 232 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 232 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 CSE 155339 1 I I I 233 City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 233 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 ( C SE 155340 1 ~9l (,.). t City of Seward, Alaska November 16, 1992 City Council Minutes Volume 28, Page 2.34 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. '..-:j mda S. urp y, CMC/ City CleJ;', . "".. ..t;'';"........-'", .",.,.<,~ f,r"c;QY Sf I.'.. .:<:.~", (~lt?" ~ejl.k~l1-9.c\'~ .> . " ..<;';r:P 1'.,...:.0. ...,J . ~ "0..' ;'. : ~ SEAL ). J ~. '" ...'\0 ;Y' ~~..~.;~~~;.;.~~ r ....... ....... - ....,.t OF ft.'- ......l.~ '~~~;7I~~tr ~vJ C~ Dave W. Crane Mayor r CSE155341 1 I I I 235 City of Seward, Alaska December 11, 1992 City Council Minutes Volume 28, Page 235 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. r CSE 155342 1 2~f) City of Seward, Alaska December 11, 1992 City Council Minutes Volume 28, Page 236 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. ( CSE 155343 ) I I I City of Seward, Alaska December 11, 1992 City Council Minutes Volume 28, Page 237 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 c~~ ( C SE 155344 . .. ~ -....,. . t ....f' 1, 11'::-.... t ......... c..i-~..I p...../.. 237 1 2R~l City of Seward, Alaska 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. ( CSE155345 1 I I I - 239 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 239 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; ( ) . CSE155346 _ 240 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 240 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 () _ CSE155347 _ I I I City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 241 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. ( CSE155348 ) City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 242 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 ( CSEl55349 ) I I I 243 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 243 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 ( CSE155350 1 244 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 244 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: ( CSE155351 1 I I I 245 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 245 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. ( CSEl55352 ) 246 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 246 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. ( CSE155353 1 247 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 247 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. ( CSE 155354 1 24~ City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 248 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 ( CSE155355 1 I I I 249 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 249 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. ( C SEl55356 ) 2S0 City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 250 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 CSE155357 I I I City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 251 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 ( CSE155358 ) City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 252 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. ( CSU55359 ) City of Seward, Alaska December 14, 1992 City Council Minutes Volume 28, Page 253 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. ~cr~' C~ Mayor (City Seal) I '--'-~,. . -..:~.J! If,~~~, ,,'gr "'"""~'!p' '\ "" : 4f jIo':.~ '\' ........ .. : \. .: SEAt. :. ). ....... : . . .. WI.. ~ .. \,"';"'~" 1, it......" , ...",,1': .......... ..... ~!~~\... I ( CSf 155360 1