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HomeMy WebLinkAbout1994 City Council Minutes34 City of Seward, Alaska City Council Minutes January 10, 1994 Vo 30, P age 3 CALL TO ORDER The January 10, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling James Krasnansky Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Brad Meyen, City Attorney Linda S. Murphy, City Clerk ABSENT was: Councilmember Louis Bencardino (Excused) CITIZENS' COMMENTS A. Agenda items not scheduled for public hearing TOM TOUGAS, 1907 Dora Way, spoke in favor of the creation of a business assessment plan to address paid parking and other visitor fees. He stated that a plan devised by Linne Bardarson would generate additional revenues without resorting to paid parking or a bed or head tax. WENDY HECKT, Harbor Lights Apartments, spoke in favor of moving the youth center to a new location. She stated that the youth center provided a positive place for young people to spend time with their friends and other positive role models. She also stated that the new location would be more accessible to users and would foster interaction between teens and seniors and would benefit both groups. 35 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 35 ANNE HATCH, 608 Fifth Avenue, member of the Senior Citizens Board of Directors, noted that the senior program currently served 290 senior citizens. She stated that the elimination of the Arts and Crafts Room would adversely affect the center's main fund raising activity. JUDITH MARTIN, Woodland Hills Estates, director of the Senior Center since 1978, stated that the seniors had worked hard to obtain funding for the community center. She stated that the city's proposal would adversely affect grant funding for the senior programs. JOHN CHAPMAN, 309 Third Avenue, spoke on behalf of the proposal to relocate the youth center to the community center building. He stated that combining the two facilities would save money for the city, and he assured the city that the teens would fully cooperate with the seniors. STEWART SCHAFER, 506 Fourth Avenue, member of the Teen Council, stated that he would like to see the youth center moved to the senior /community center facility. He noted that the teens could be trusted to take care of the space provided. He urged the Council to provide local young people with a safe place to congregate. SANNA LEVAN, 429 Fourth Avenue, president of the Senior Citizens' Board of Directors, stated that the senior center provided many free services to the community. She presented a petition signed by 143 individuals who wished to preserve the existing agreement. DEANE NELSON, 308 Adams Street, noted her letter to the Council which urged the creation of a hotel/lodging place business assessment in lieu of the proposed bed tax. ALEX RULE, 700 Second Avenue, spoke in favor of establishing a shooting range at Japanese Creek. STEVE BERGMAN, Woodland Hills Estates, spoke in favor of establishing a shooting range. ARLENE WILEY, 550 Railway, representing the members of the Seward lodging community, stated that the bed tax unfairly discriminated against the visitor industry. She urged the Council to overturn this tax. B. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky/Darling) Approve the Agenda and Consent Agen- da as presented. 36 City of Seward, Alaska January 10, 1994 MOTION (Krasnansky/Darling) Motion Passed City Council Minutes Volume 30, Page 36 To meet in an executive session immedi- ately following the close of regular business to discuss personnel policies and practices and potential litigation. Unanimously Anderson asked to move Unfinished Business "D" to the regular meeting agenda. Crane added Parking Committee Chair Anne Castellina to Presentations with Prior Notice. Murphy noted that the administration had provided a substitute for Resolution No. 94 -007 She asked that the consent agenda be amended by inserting this substitute resolution and deleting Resolution No. 94 -009 O'Brien moved Resolution No. 94 -011 to the regular meeting agenda. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED. Motion Passed Unanimously The Clerk read the following approved consent agenda items: The December 13, 1994, minutes were approved as written; Ordinance No. 94 -02, creating a new § 3.15.061, Stand -by time compensation, was introduced and set for public hearing on January 24, 1994; Resolution No. 94 -002, setting rates and charges for copying and purchasing miscellaneous documents and services from the administrative service, was approved; Resolution No. 94 -003, authorizing the destruction of certain public documents in accordance with the city's records retention schedule, was approved; Resolution No. 94 -005, awarding a contract to Marathon Fuel Service for the provision of petroleum products to the city and authorizing the city manager to issue a purchase order for the purchase of these products, was approved; Resolution No. 94 -006, authorizing the city manager to issue a purchase order to White GMC of Alaska for the purchase of a sanding truck, was approved; 37 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 37 Resolution No. 94 -007 (substi I authorizing the execution of an equipment lease purchase agreement by and between the city and United States Leasing International, Inc., and providing for related matters, was approved; Resolution No. 94 -008, authorizing Seward General Hospital to purchase and install X -Ray equipment, was approved; Resolution No. 94 -010, approving change order No. 1 to the METCO contract for sewage lagoon clean -up, was approved; Resolution No. 94 -013, approving the Head Start use agreement for the 1993 -94 program year was approved; Resolution No. 94 -014, approving the 1994 Intertie Project Participants Agreement, was approved; An informational memorandum regarding the Chugach Electric Association rate increase was noted; January 3, 1994, Library Board report as filed by Library Director Nicolas was noted for information; and ABCB notification of application for renewal of a package store license as filed by Gateway Texaco Liquor and Foodmart was noted and the Clerk was instructed to issue a letter of nonobjection to the issuance of the license. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. SPECIAL ORDERS AND PUBLIC HEARINGS Proclamation designating_ 1994 as the Year of the Phoenix Crane presented the proclamation to Resurrection Bay Historical Society president Lee Poleske. Ordinance No. 94 -01, amending City Code § 3.30.055, Suspensions 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -01 38 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 38 Motion Passed. Unanimously Resolution No. 94 -001, authorizing the lease of certain lands within the Seward Marine Industrial Center to Inlet Fish Producers, Inc. 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. MOTION (Sieminski/Krasnansky) MOTION (Sieminski/Krasnansky) Approve Resolution No. 94 -001 To amend the lease agreement by re- quiring that the lessee fence Parcel B. Jones noted that this agreement had been negotiated by Chris Gates and Fred Arvidson. With respect to the fencing, Jones noted that Parcel B was intended to be used for staging and parking of vans and vehicles and a separate equipment storage area would be provided on another parcel. O'Brien stated that he was reluctant to require the fence and added that he did not wish to jeopardize the city's heretofore good relationship with Inlet Salmon over a $20,000 item. VOTE ON AMENDMENT Motion Failed YES: Sieminski NO: Anderson, Crane, garlipg, Kras- nansky, O'Brien VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed Unanimously PRESENTATIONS WITH PRIOR NOTICE ONLY Introduction of the 1994 Teen Council Shareen Adelmann, Teen Center Director, introduced members of the Teen Council to the Council and commended them for their hard work and dedication. Elaine Nelson, Executive Director of the Seward Chamber of Commerce - Marketing and Coordination of Visitor Services Nelson noted that the visitor industry was the fasted growing industry in the community and stated that it had brought growth and income along with congestion and stress on city services. She reported that last year the Chamber had spent more than $46,000, including the $20,000 grant from the city, 39 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 39 advertising and promoting the city. Nelson stated that Seward was on the verge of becoming a world -class visitor destination. She proposed the creation of a separate arm of the Chamber to formalize and expand visitors bureau services in the community and she invited all concerned groups, including the Council, to join with the Chamber in this effort. She suggested that any fees collected through special visitor taxes be dedicated to this effort. Robert Kesling - Location of a target12ractice area for Seward Kesling read an open letter to the Council requesting that the city establish a shooting range open to the general public. Anne Castellina - Parking Committee Update Castellina reported that the Parking Committee had reviewed the paid parking proposals submitted in response to the city's request for proposals and was prepared to recommend that the Council adopt a business assessment program rather than paid parking in the Small Boat Harbor area. Krasnansky requested that the committee submit a written report containing a synopsis of each proposal and its recommendations. ORDINANCES FOR INTRODUCTION [See Consent Agenda.] RECESS: The meeting was recessed at 9:00 p.m. and reconvened at 9:10 p.m. RESOLUTIONS Resolution No. 94 -004, authorizing Change Order No. 5 to the Dryden & LaRue contract for design of Phase II of the Transmission Line Project. MOTION (Anderson/Sieminski) Approve Resolution No. 94 -004 Engineering & Utilities Manager Dave Calvert noted that Phase I of the contract for transmission line design had been completed. He stated that the action before Council at this time was not really a change order, but, rather, was approval to go forward with the next anticipated and negotiated phase of the project. VOTE ON MOTION Motion Passed. Unanimously Resolution No. 94 -011, authorizing the acquisition of the reverter clause associated with the School Reserve located at Lots 1 -2 and Lots 17 -22, Block 5, Cliff Addition, and appropriating funds. MOTION (O'Brien/Krasnansky) Approve Resolution No. 94 -011 im City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 40 O'Brien asked if the funds requested were included in the FY 1994 budget and stated that he did not feel the city should be in the business of purchasing property with the intent of selling it. Jones noted that this was not a budgeted item. Krasnansky asked what the advantage was to paying for the reverter clause if this property served no public purpose. Jones noted that the property's assessed value was in excess of $60,000. He noted that, although the city owned the property, it could not be used for anything other than a school site until the reverter clause was removed, and it was, therefore, in the public interest to purchase the reverter clause for $10,800 in order to be able to release the property to private hands so that it could be placed on the tax rolls. In response to a question from Anderson, Community Planning Director Martin stated that all of the lots together were large enough for at least one house, and, if city water and sewer could be provided to the lots, two houses could be built there. O'Brien stated that he could support this resolution if the city intended to surplus the property immediately so that the funds could be recouped. Anderson stated that she felt purchase of the property was a good business decision. VOTE ON MOTION Motion passed. Unanimously Resolution No. 94 -012, authorizing the termination of the existing Senior/ Community Center joint management agreement and directing the administration to develop a new agreement to permit additional public use and availability of the Senior /Community Center. MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -012 Anderson asked if her status as a member of the Seward Senior Citizens, Inc., constituted a conflict of interest. The Mayor ruled that there was no conflict. O'Brien stated that he was concerned about the speed with which this had come to Council and asked when the concept had been developed. Jones stated that he had initially solicited comments from the staff this past fall. O'Brien stated that he objected to having to make decisions such as this one at the last minute, adding that he had not had sufficient time to make a decision. Jones stated that it was important to understand procedurally why this was before the Council at this time. He stated that the administration was merely seeking a policy determination from the Council to allow the city to reopen the agreement as provided in the existing contract. He stated that he was interested in consolidating existing activities into less space and in providing additional public access to a facility supported by general fund/tax revenues. Jones stated that the agreement required that the administration notify the Seniors by January 5th of its intent to terminate and renegotiate, and he was now asking the Council for specific direction to pursue negotiations with the 41 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Pag 41 parties. He noted that a new agreement would have to be approved by the Council at a later date. He also noted that, if this resolution failed, the agreement would automatically continue in its present form for the next year. Jones stated that the administration was fully supportive of the Seniors; however, the difficulty was that the city had a community center that was significantly under - utilized, and there was a real need to relocate the youth center to another area. He suggested that the Council could refine the parameters of the proposed negotiations if it wished. Darling stated that he had looked at both facilities and agreed with O'Brien that this came before the Council rather quickly. He stated that the teens could stay in their present location for another year, and he failed to see any emergency that would force the city to go forward with this proposal at this time. He noted that the required renovations would be costly and added that he would prefer to extend the agreement in its present form for another year. Anderson stated that she had also visited the Senior Center and objected to relocating the teen center to the first floor of the facility. She also objected to having to make a decision at this time without benefit of a cost analysis of the proposed changes. She stated that projects such as this one should be addressed during the budget planning process and suggested that the city exercise the option to extend the term of the agreement for one year to give sufficient time to address various options and proposals. Krasnansky stated that the Senior Center was locked by 5:00 p.m. each day. He also noted that the teen center was currently located in an industrial area next to a bar. He stated that incorporating the youth center into the Senior /Community Center would be a better utilization of public property and public funds. Jones stated that the request currently before the Council was to allow the administration to begin negotiations with the affected parties. He noted that he had contacted Councilmembers regarding his intent to reopen negotiations and the six he had spoken to had agreed that increased utilization of the facility was a good idea. Crane stated that $450,000 of bond monies from the general fund went to the purchase and remodeling of the community center. He stated that he had visited both facilities. He agreed that the administration might be trying to put too much in this one facility, but the Council owed it to the public to at least address the issue. He stated that the teen center was cold and damp and was not a good place for the city's youth to congregate, and it made sense to try to combine the facilities. Darling stated that he had no problem with putting the teens in the building; however, there was adequate time to plan over the next year, and there was no reason to terminate the Senior /Community Center agreement at this time. Crane differed and stated that planning could come after negotiations were completed. 42 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 42 Krasnansky concurred with Crane. He stated that this was an ideal time to negotiate this lease. NOTE: A clerical error was noted in the first "Whereas" clause of the resolution, and the Clerk was instructed to correct the error before final printing of the resolution. Anderson stated that the teen center needed its own building and should not be paired with the Senior Center. Crane stated that this resolution would address other community uses besides the teen center. VOTE ON MOTION Motion Failed. YES: Crane, Krasnansky, Sieminski UNFINISHED BUSINESS NO: Anderson, Darling, O'Brien Ordinance No. 93 -29, providing for a passenger transit fee for marine charter vessels and businesses. (Postponed from the last meeting.] MOTION (Anderson/Krasnansky) Motion Passed. To postpone action until January 24, 1994, in order to further explore the merits of the Bardarson and Tougas proposal with a view towards a combi- nation user fee, head tax and marine charter business assessment program to be implemented on a permanent basis within the context of this ordinance. Unanimously Ordinance No. 93 -30, providing for a hotel/motel room tax. [A motion to reconsider and enter on the minutes was made at the last meeting.] VOTE ON MOTION TO RECONSIDER Motion Failed. YES: Crane, Darling, O'Brien NO: Anderson, Krasnansky, Sieminski 43 City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 43 Resolution No. 93 -172, urging the Alaska State Legislature to place a constitutional amendment related to the Alaska Permanent Fund on the ballot for the next general election. [Postponed from the last meeting.] VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Unanimously ISTEA status report filed by Building Inspector Ferguson Anderson noted that she was opposed to constructing a dump station south of the Chamber of Commerce Information Cache and suggested that the Boat Harbor or beach area would be a more appropriate location. Krasnansky objected to this assessment. Jones stated that the Chamber of Commerce had proposed this location as a revenue - generater for the Chamber. He further stated that the harbor dump station would have to be relocated before the Days'Inn project could go forward. Anderson also noted the ferry terminal restoration project proposal and suggested that this would be an ideal place for the museum if the ferry was relocated to the B Street Dock or elsewhere. O'Brien asked for some enlightenment regarding ISTEA funding and asked if the city would lose its place on the funding priority list if the projects were changed. Jones stated that he would not make any changes that would jeopardize funding. Proposed Hospital Service Area Sieminski stated that the city needed to make a decision to go forward with a hospital service area. Krasnansky stated that he had always supported the idea of a service area for the hospital; however, it would be very difficult to convince those living outside the city to vote to be included in the service area. Crane noted that the Hospital Board had asked him to schedule a joint work session on January 17th. He suggested including this item for discussion at that work session. Anderson asked the attorney to investigate whether or not the city could continue to support the service area with the 1% sales tax. NEW BUSINESS None CITY MANAGER REPORTS JONES noted a memorandum regarding the FY 1995 budget which was distributed to Council earlier in the day. He proposed a budget work session on January M City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 44 26th. Jones also noted that the Council would receive the first quarter financial statements within the next week and would receive the second quarter reports by February 1. JONES noted that he had scheduled two meetings with the city employees on January 25th to invite suggestions, cooperative endeavors, etc. from the staff. JONES reported that the State Parks and Recreation Association's 1995 conference would be held in Seward and would attract approximately 100 Parks and Recreational professionals to the city. JONES noted that he had rescheduled the meeting with the Whittier City Council to February 2nd. He stated that they would meet in conjunction with the Port Board prior to a joint meeting with the Council. JONES stated that he hoped to have a Nash Road Small Boat Harbor agreement before the Council at its next regular meeting. JONES noted that the Hospital Board had invited the Council to participate in the Board's retreat the weekend of February 11th. COUNCIL DISCUSSION O'BRIEN stated that he would be unable to attend the hospital retreat. He asked for an audit status report and was told by Jones stated that the on -site work had been completed and the report was expected in the next couple of weeks. O'Brien stated that it was important to streamline this process so that the audit could be completed in a more timely manner. Jones stated that steps had been instituted to bring the reporting functions in the Finance Department to a current status which would allow timely reporting to the Council and completion of the annual audit within the Code - required time frames. He assured the Council that this was a very high priority for the administration. O'Brien suggested that the Council consider including funds in the FY 1995 budget to expand the Council Chambers to provide additional room for the public. O'BRIEN asked if the $103,000 rebate from Chugach Electric would be passed on to the utility customers as suggested by Krasnansky. He suggested that this would be a good topic for Council discussion. Jones stated that it would be his expectation to hold these funds in the electric utility fund to offset Chugach rate increases rather than as a rebate to the utility users. O'Brien asked if Council wished to address this as a policy issue. Krasnansky stated that he felt the monies belonged to the customers. Sieminski noted. that a few years ago, the city had pumped approximately $500,000 into the generators to keep power on during an extended outage at no additional cost to the consumers. He stated that he would prefer to put these monies into reserves for this type of use. Anderson stated that she would like to see the funds go back to the customers. Sieminski noted that the $500,000 in excess generation fees was never billed W City of Seward, Alaska City Council Minutes January 10, 1994 Volume 30, Page 45 to the customers. Darling stated that the users would get the benefit whether rebated or used to delay a rate increase. Crane stated that he would prefer to see this money go into the utility's fund balance and used to make the system more reliable. ANDERSON asked if the Council planned to give direction to the parking committee. She suggested that the committee continue to explore various parking revenue producing plans on city lands in the Small Boat Harbor and combine a user payment plan with an uplands business assessment plan to be implemented on a permanent basis so that the Council would not have to revisit this subject every year. She recommended that all information gathered by the committee be presented in writing to the Council by February 14th so that it could be used for development of an ordinance to be presented for introduction at the February 28th meeting. Anderson stated that she did not wish to see a voluntary assessment program, but a business assessment imposed by ordinance. Krasnansky suggested that the three strategies be placed before the Council at the next meeting along with the committee's recommenda- tion. At that time, the Council could give policy direction. Crane instructed the committee to provide a written report for the next Council meeting. ANDERSON noted a memo she had distributed regarding the status of the hospital, and she encouraged the Council to support the hospital in its endeavors. SIEMINSKI asked that the Aurora Charters concerns regarding the payment of moorage fees on a semi - annual basis, be placed on the next meeting agenda for discussion. He also asked that the city work with those wishing to establish a shooting range. Jones noted that this was the first time he had been asked to do anything about this matter and suggested that the onus should be on the requesting organization to provide the specifics such as site, etc. KRASNANSKY stated that he thought range issue had been resolved when the duck hunting issue was addressed. He stated that those requesting city help should form an organization and make some commitment to the shooting range. CRANE scheduled a budget work session for January 26, 1994, at 7 p.m. CRANE noted that he would schedule a work session with the Planning Commission at the February 14th meeting to allow any newly appointed Commissioners to attend. CRANE reminded the Council of Thursday's Policies and Procedures work session and the January 17th joint work session with the Community Hospital Board. CITIZENS' DISCUSSION None 46 City of Seward, Alaska January 10, 1994 City Council Minutes Volume 30, Page 46 COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 11:35 p.m., and, following a short recess, the Council reconvened in executive session to discuss personnel policies and potential litigation. OF ..tl City 4 IV A Le (s Dave W. Crane Mayor City of Seward, Alaska January 13, 1994 City Council Minutes Volume 30, Page 46 CALL TO ORDER The January 13, 1994, special meeting of the Seward City Council was called to order at 6:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councilmember Bencardino led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino Hugh Darling James Krasnansky Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk WA City of Seward, Alaska January 13, 1994 ABSENT was: Councilmember Patrick O'Brien (Excused) APPROVAL OF SPECIAL MEETING AGENDA MOTION (Krasnansky/Bencardino) Motion Passed. CITIZENS' COMMENTS City Council Minutes Volume 30, Page 47 Approve the Special Meeting Agenda. Unanimously Agenda items not scheduled for public hearing SANNA LEVAN, 429 Fourth Avenue, president of SSC Board of Directors, stated that the Senior Board had appointed a committee to look for ways to provide more community access to the community center in an attempt to prove that the Seniors could provide for the additional public use desired by the city. ANN HATCH, 608 Fifth Avenue, urged the Council to allow the Seniors to continue to run the facility. JUDITH MARTIN, Woodland Hills Estate, stated that compatible groups already met without charge at the center during the hours of regular operations. She stated that moving the youth programs into level one would not be economically feasible or desirable and would prevent the Seniors from renting level three to other civic groups. She stated that the Board of Directors was investigating ways to adjust the facility's hours to allow evening use of the building and was contemplating the addition of an evening meal program to supplement the lunch program currently offered. Martin noted several grants which were available to provide the funding needed for the meal program and additional staff to extend the facility's hours of operations. LORRAINE MCCAULEY, 1717 Phoenix Road, stated that, without the lobbying efforts of the Seniors, there would be no senior /community center. She stated that she was disturbed by the actions of the city and objected to the administrations handling of this situation. DICK BOYD, 219 Lowell Canyon Road, objected to the way the administration had approached this matter. He stated that the Seniors should have been notified in a more timely manner. He suggested continuing the current agreement until the city could conduct a feasibility study to determine the best solution to the issue. He also questioned whether locating city offices in the building would be allowed given the wording of the bond proposition which provided the funding for construction of the facility. 48 City of Seward, Alaska City Council Minutes January 13, 1994 Volume 30, Page 48 TONY ROLLO, Mile 1.5, Nash Road, asked why this had been brought back to the Council for reconsideration after the resolution had failed at the last meeting. LEE POLESKE, Apt. 2, Seward Trading Company, suggested that the Seniors and the Museum make annual reports to the Council regarding their activities. He stated that he objected to moving the youth center into the facility. In response to a question posed by Poleske, Jones stated that the resolution asked for negotiations with the parties and that the negotiations include discussion of those items on the attached memorandum; however, the resolution did not mandate that any one of the items listed in the memorandum be included in the new management agreement. Items other than those appearing on the agenda None RESOLUTIONS Resolution No. 94 -012, authorizing the termination of the existing senior /community center joint management agreement and directing the administration to develop a new agreement to permit additional public use and availability of the senior /community center. Crane noted that the resolution had failed to pass at the January 10, 1994, regular meeting; however, Councilmember Anderson had given the Clerk notice of reconsidera- tion prior to 5:00 p.m. on the day following the meeting. MOTION (Anderson/Krasnansky) Reconsider the motion to approve Reso- lution No. 94 -012 VOTE ON MOTION TO RECONSIDER Motion Passed. MOTION (Anderson/Krasnansky) Unanimously Amend the resolution by deleting the last "Whereas" clause and revising Sec- tion 2 to read "The City Manager is hereby instructed to develop a new community center management agree- ment with Seward Senior Citizens', Inc., and Resurrection Bay Historical Society, Inc., to permit additional public use and availability of the facility. In response to a question from Bencardino, Jones noted that any agreement negotiated would come back to the Council for approval. M City of Seward, Alaska City Council Minutes January 13, 1994 Volume 30, Page 49 Krasnansky and Crane noted their support for the resolution. Sieminski stated that the new contract should contain a clause that required the contractor to approach the city to renegotiate the agreement three to six months prior to the end of the contract term. VOTE ON AMENDMENT Motion Passed. Unanimously VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimously CITY MANAGER REPORTS None COUNCIL DISCUSSION SIEMINSKI requested to be excused from the next meeting. He urged the Council to give careful consideration to the issue of the payment of moorage fees on an installment basis. CRANE stated that the contract negotiations should be open to any option or contingency without limitation. ANDERSON suggested that the items outlined in the City Manager's January 3rd memorandum be the basis for negotiating the contract. CITIZENS' DISCUSSION None COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 7:05 p.m. s v' Dave W. Crane city CIA Mayor - City Seal) s $n R A i r W City of Seward, Alaska City Council Minutes January 17, 1994 Volume 30, Page 50 CALL TO ORDER The January 17, 1994, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councilmember Krasnansky led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk APPROVAL OF SPECIAL MEETING AGENDA MOTION (Krasnansky /Bencardino) Motion Passed. Louis Bencardino James Krasnansky Bruce Sieminski Approve the Special Meeting Agenda. Unanimously CITIZENS' COMMENTS Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None ORDINANCES FOR INTRODUCTION Ordinance No. 94 -05, authorizing the conveyance by the city of Seward of its interest in Lot 2A, Block 12, Seward Townsite Cliff Addition, and waiving the provisions of Chapter 7.05 of the Seward City Code. MOTION (Anderson/Sieminski) Introduce Ordinance No. 94 -05 and set for public hearing on January 24, 1994. 5 City of Seward, Alaska City Council Minutes January 17, 1994 Volume 30, Page 51 Motion Passed. Unanimously CITY MANAGER REPORTS None COUNCIL DISCUSSION SIEMINSKI asked if the attorney had reviewed the stand -by compensation ordinance. Murphy stated that she would provide him with letters from the attorney regarding the ordinance. CITIZENS' DISCUSSION None COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 7:47 p.m. of S 2rK City of Seward, Alaska January 24, 1994 City Council Minutes Volume 30, Page 51 CALL TO ORDER The January 24, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Walker led the pledge of allegiance to the flag. ROLL CALL & J& O Dave W. Crane Mayor There were present: 5 2 City of Seward, Alaska City Council Minutes January 24, 1994 Volume 30, Page 52 Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino James Krasnansky Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk ABSENT were: Hugh Darling (excused) Bruce Sieminski (excused) CITIZENS' COMMENTS Agenda items not scheduled for public hearing ARLENE WILEY, 550 Railway, representing the Seward Lodging Task Force, stated that the task force was unified in its desire that the city approve a fair and equitable way to generate revenues from the visitor industry. She stated that there was a recognized need for additional revenues and the lodging industry was willing to respond to and assist the city in meeting this need through a suggested $25.00 per room assessment levied against hotels, motels and bed and breakfast establishments in the city. Wiley claimed that such an assessment would generate more revenues than the newly enacted 5% bed tax, and she urged the Council to replace that tax with an industry assessment such as the one proposed. JOLENE KING, 900 Third Avenue, owner of Harborview Bed and Breakfast, stated that she supported the assessment proposed by Wiley since this approach would require a minimum amount of overhead expense to the city, would eliminate the negative image the bed tax could create, and would reduce the paperwork and record - keeping responsibilities a bed tax would create for the lodging industry. ELAINE NELSON, 209 Ravina, Director of the Chamber of Commerce, reported that representatives of the visitor industry had been working with the Chamber to create a visitor and convention bureau which would work as a partner with the Chamber of Commerce to enhance visitor services and promote the visitor industry in Seward. She also noted that this group was currently developing proposals to meet the city's need for additional revenues. She suggested that Council schedule a work session to meet with representatives of the parties that would be affected by paid parking and visitor taxes. AL LAMBERSON, Old Mill Subdivision, Mile 7, encouraged the Council to approve Resolution No. 94 -017 He noted that the Community Hospital Board had 53 City of Seward, Alaska City Council Minutes Ja nu a ry 24, 1994 Volume 30, Page 53 passed a similar resolution and viewed this amended agreement as a good solution to the hospital's current management problems. RANDY MCFARLAND, 232 Fifth Avenue, concurred with Nelson that a work session should be scheduled to discuss harbor issues. Items other than those appearing on the agenda MARILEE KOSZEWSKI, 437 Third Avenue, encouraged residents of Seward to take an interest in city government and to participate in the budget process. She also suggested that the city discontinue providing return envelopes in the utility bills since a large number of utility users hand carried their payments to city hall. In addition, she suggested that all city businesses participate in a parking assessment program rather than targeting the harbor businesses only. Koszewski complimented the members of the City Council for their diligent work on behalf of the community. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky/Bencardino) Approve the Agenda and Consent Agen- da. Krasnansky asked to delete Agenda Item 10B (Ordinance No. 94 -04). Anderson moved Agenda Items 10F (Ordinance No. 94-09) and 11C (Resolution No. 94 -018) to the regular meeting agenda and requested the deletion of Agenda Item 10D (Ordinance No. 94 -07). Crane objected to the deletion of Ordinance No. 94 -07. MOTION (Anderson/Krasnansky) Delete Ordinance No. 94-07 from the agenda. O'Brien stated that he would prefer to discuss this ordinance on the regular agenda rather than delete it entirely. Crane concurred. Bencardino stated that he would like to have a work session with the lodging industry representatives later in the week before acting on this ordinance, but did not object to either introducing it or postponing it at this time. Anderson stated that she would like to discuss this in a work session before bringing it up again. VOTE ON MOTION TO DELETE ORDINANCE NO. 94 -07 Motion Failed YES: Anderson, Bencardino NO: Crane, Krasnansky, O'Brien ' ,4' � is City of Seward, Alaska City Council Minutes January 24, 1994 V 30, Page 54 O'Brien moved Agenda Item 10D (Ordinance No. 94 -07) to the regular agenda. VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimously The Clerk read the following approved consent agenda items: The January 10, 13, and 17, 1994, minutes were approved as written; Ordinance No. 94-03, amending Title 6, Purchasing, contracts and professional services, Article 2, Competitive Sealed Bids, was introduced and set for public hearing on February 14, 1994; Ordinance No. 94 -04, amending § 2.30.225, Power and duties of the Planning and Zoning Commission, and establishing an Historic Preservation Commission, was deleted from the agenda; Ordinance No. 94 -06, amending Seward City Code § 3.10.035, Step Increases, to provide for a Step J, was introduced and set for public hearing on February 14, 1994; Ordinance No. 94 -08, amending Seward City Code § 2.10.032, to provide a 24 -hour notice of special meetings, was introduced and set for public hearing on February 14, 1994; Resolution No. 94 -016, approving change order no. 5 to the CH2M Hill contract for sewage lagoon design and construction services to complete the project, was approved; Resolution No. 94 -017, terminating the hospital management services agreement with Brim Healthcare, Inc., and entering into a contract with Brim Healthcare, Inc., for consulting services to Seward General Hospital, was approved; Application for renewal of a liquor license as submitted by Thom s Showcase Lounge was noted and the clerk was instructed to issue a letter of non - objection to the renewal; and Proclamation designating February 27 - March 27, 1994, as Earthquake Awareness Month was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the January 18, 1994, assembly meeting. City of Seward, Alaska City Council Minutes Jan uary 24, 1994 Volume 30, Page 55 SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -02, creating a new City Code § 3.15.061, stand -by time compensation. 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. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94 -02 O'Brien objected to allowing a supervisor to approve stand -by status without the prior approval of the city manager. Crane and Krasnansky disagreed and stated that department heads and other supervisors were hired to do a job and it was unreasonable to expect them to have to get permission from the city manager whenever they felt a need to place an employee on call. MOTION (O'Brien/Anderson) VOTE ON AMENDMENT Motion Failed. Amend the ordinance by adding "Such approval shall be approved by the city manager" to the end of Section (a). YES: Anderson, O'Brien QW631 Bencardino, Crane, Krasnansky VOTE ON MOTION TO ENACT ORDINANCE Motion Passed. Unanimously Ordinance No. 94 -05, authorizing the conveyance by the city of Seward of its interest in Lot 2A, Block 12, Chamberlain Road Replat, Seward Townsite Cliff Addition, and waiving the provisions of Chapter 7.05 of the Seward City Code with respect to such conveyance. 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. MOTION (Anderson/Bencardino) Enact Ordinance No. 94 -05 Motion Passed. Unanimously W City of Seward, Alaska January 24, 1994 City Council Minutes Volume 30, Page 56 Resolution No. 94 -015, authorizing the trade of Lot 7, Block 10, Federal Addition, to Michael J. and Mary Jean Meehan in return for dedication of the eastern most ten feet of Lot 5, Block 4, Oceanview Subdivision Addition No. 1, as an alley right of way. 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. MOTION (Krasnansky /O'Brien) Motion Passed. Approve Resolution No. 94 -015 Unanimously PRESENTATIONS WITH PRIOR NOTICE ONLY None ORDINANCES FOR INTRODUCTION Ordinance No. 94 -07, amending Seward City Code § 5.40.020, reducing the bed tax to three percent. MOTION (O'Brien/Krasnansky) MOTION (Krasnansky /Bencardino) Introduce Ordinance No. 94 -07, and set the ordinance for public hearing on February 14, 1994. Postpone until February 14, 1994. VOTE ON MOTION TO POSTPONE Motion Passed. Ordinance No. 94 -09, creating a new § 2.10.031 of the Seward City Code to require adjournment of any regular or special meeting no later than 11:30 p.m. MOTION (O'Brien/Bencardino) MOTION (Anderson/Krasnansky) Unanimously Introduce Ordinance No. 94 -09 Amend by changing the mandatory adjournment time to 11:00 p.m. VOTE ON AMENDMENT Motion Passed. YES: Anderson, Crane, Krasnansky, O'Brien NO: Bencardino City of Seward, Alaska City Council Minutes January 24, 1994 Volume 30, Page 57 VOTE ON INTRODUCTION OF ORDINANCE AS AMENDED Motion Passed. RESOLUTIONS Unanimously Resolution No. 94 -018, amending the campground budget MOTION (Krasnansky /Crane) Approve Resolution No. 94 -018 In response to a question from Anderson, Jones stated that the Parks and Recreation Department was part of the general fund. He noted that the increased revenues were needed to cover unanticipated expenditures caused by an increase in visitors and campground activity. Krasnansky stated that the excess funds were generated by the Parks and Recreation Department and should be put back into the department to cover its maintenance needs. O'Brien stated that he would like to see these maintenance costs covered within the existing budget rather than allocating the monies from excess revenues. He stated that it was inconceivable to him that a $429,000 budget could not absorb an additional $12,900 in expenses. Jones noted that the camping fee revenues were unanticipated revenues to the department, and the expenses corresponded to the increased revenues. VOTE ON MOTION Motion Failed. YES: Bencardino, Crane, Krasnansky NO: Anderson, O'Brien UNFINISHED BUSINESS Parking Committee report and recommendation Anderson suggested a work session to review the report from the parking committee and to begin developing an ordinance to institute paid parking. Krasnansky stated he was disappointed in the way this had been handled and claimed that the committees report did not give its reasons for the recommendation. O'Brien objected to this assessment and stated that it was now up to the Council to give policy direction to the committee. Crane and Anderson concurred with O'Brien. Jones noted that the report in the Council packet contained a review of each of the proposals and the reasons the committee had chosen its preferred option. Jones also expressed his appreciation for the committee and its hard work. Mrftl City of Seward, Alaska City Council Minutes January 24, 1994 Volume 30, Page 58 Crane scheduled a work session to begin at 5:30 p.m. on February 1, 1994, to discuss paid parking, the head tax and the bed tax. Ordinance No. 93 -29, providing for a passenger transit fee for marine charter vessels and businesses. Crane noted that the motion to enact this ordinance had been postponed from the January 10, 1994, meeting. MOTION (O'Brien/Anderson) Motion Passed. Postpone until February 14, 1994. Unanimously NEW BUSINESS Small Boat Harbor moorage fees In response to comments made by Krasnansky, Jones referred the Council to Harbormaster Singletons letter to Mr. Hughes which explained that harbor patrons actually received a reduction in the daily rate by paying annually rather than a penalty for paying more frequently. Jones also noted that this type of incentive was the industry standard for both commercial and personal/pleasure vessels. Krasnansky noted that a public relations effort should be undertaken to explain this to the boating public. O'Brien asked if the harbor invoices could show the daily rate and the discounts available for other payment options. Jones stated that the administration was working on a new billing system and would consider this idea. RECESS: The Council recessed at 9:05 p.m. and reconvened at 9:15 p.m. CITY MANAGER REPORTS JONES stated that he felt he must speak to the defeat of Resolution No. 94 -018, and he asked that either O'Brien or Anderson consider giving notice of reconsideration. He noted that the Parks and Recreation Department was expecting increased revenues in excess of $30,000 and was asking to spend $12,900 of the total for some critically needed maintenance. He stated that there could be very serious consequences for the city's failure to provide adequate trash receptacles and sanitary facilities and added that lack of adequate campground personnel this spring could result in a decrease in the collection of fees. COUNCIL DISCUSSION O'BRIEN stated that he appreciated the efforts of the department and felt that the department's memorandum had adequately justified the need for the requested MAVA City of Seward, Alaska City Council Minutes January 24, 1994 V 30, Page 59 improvements; however, he was concerned that the administration had been unable to find the $12,900 needed for the maintenance items within the exiting budget. O'BRIEN noted that, in the old days, there were graceful losers, and he would prefer to move on when a vote was lost rather than continually bringing issues back to the Council once a vote was taken. O'BRIEN requested a report on the status of the audit. Jones stated that he had no new information at this time but would inquire as to the status and report back to O'Brien directly. O'BRIEN noted a budget variance report for the first quarter and asked when the second quarter report could be expected. Jones replied that it would be available the first of February. BENCARDINO noted a recent television program regarding water quality and the potential dangers of chlorine. He suggested that the city warn consumers that the city's water contained EPA mandated levels of chlorine and advise them that water filters were available which could eliminate the potential harmful effects of the chemical. ANDERSON noted that by downsizing the contract with Brim and contracting with Richard Jones to serve as administrator of both the hospital and Wesley Rehab, the hospital had taken a step in the right direction. She suggested the creation of an oversight committee composed of Richard Jones and a representative of the hospital board, the Wesley Board, the City Council and the city administration to oversee the upcoming transition period. ANDERSON noted that she would like to discuss employee wage scales and classifications at the January 26th budget work session. ANDERSON stated that, if the Council capitulated to every special interest group that opposed new taxes or user fees, any further action would be a waste of time. She stated that she hoped to address this at the work session. She also suggested that, when a controversial issue was to appear on the agenda, the Council might consider meeting in a work session one hour prior to the regular meeting to try to work through some of the issues. ANDERSON stated that she had some concerns about the tug that sank in the Small Boat Harbor and she hoped Singleton could give the Council some positive recommendations about how to address both this sunken tug and other derelict boats. KRASNANSKY stated that he would like to see Resolution No. 94 -018 reconsid- ered. He stated that using parliamentary rules for reconsideration was a legitimate way to address an issue once again and was a benefit to the public. He added that he did not y s' { City of Seward, Alaska City Council Minutes January 24, 1994 Volume 30, Page 60 understand why the Parks and Recreation Department "took a hit" each time they had something on the agenda. CRANE stated that he would have a written report regarding his trip to Juneau in the next few days. He then proceeded to give a general overview of the meetings he and Jones had attended. CRANE stated that the Council worked for the public and had an obligation to follow the legislative process through to completion. He objected to O'Brien s characterization of reconsideration as the efforts of a poor loser and stated that there were times when an issue needed further discussion and review by the Council before it was put to rest. CITIZENS' DISCUSSION ELAINE NELSON, Chamber of Commerce Director, thanked the Council for committing the time to conduct a work session with the people affected by the proposed user fees. She stated that the local visitor industry community would have plans and other information for Council review at the February 1st work session. Nelson also commented that insufficient restrooms and trash containers were a problem, and she hoped that the new visitors association could assist in the city's future planning and budgeting efforts by supplying the information needed to avoid surprises like the one before the Council earlier in the evening. AL LAMBERSON, Old Mill Subdivision, Mile 7, Vice - Chairman of the Community Hospital Board, updated the Council on the continuing negotiations with Richard Jones. He stated that Jones was currently the temporary CEO of the hospital under the hospital's contract with Brim. He noted that, once the new Brim agreement went into effect on February 1st, Jones would begin working directly for the hospital board. Lamberson stated that the hospital board would meet on Wednesday, January 26th, at 5:00 p.m. to consider action on its employment agreement with Jones. He thanked city Finance Director Rick Gifford for his efforts with PERS and CALCO which had resulted in waivers allowing the hospital to exempt the CEO from retirement and health insurance coverage. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS BENCARDINO concurred with Nelson that additional restroom facilities were needed. He suggested using profits from campground operations to add one additional facility each year until this need was met. He noted that it was important to supply decent facilities for the cites visitors and added that the addition of these restroom facilities would eventually eliminate the need for renting and maintaining port -a- potties. KRASNANSKY thanked the hospital board for making a tough decision with regards to the Brim agreement. Z] City of Seward, Alaska January 24, 1994 City Council Minutes Volume 30, Page 61 ANDERSON stated that she hoped the new task force/visitors association would present proposals to the Council for improvement of the city's visitor industry. She stated that such improvement and enhancement requests should rightfully come from those in the industry. ADJOURNMENT The meeting was adjourned at 10:00 p.m. Dave W. Crane Mayor City Council Minutes February 14, 1994 V 30, P age 6 CALL TO ORDER The February 14, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino Hugh Darling James Krasnansky Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and City of Seward, Alaska City Council Minutes February 14, 1994 V olume 30, Page 62 Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Patricia J. Jones, Deputy City Clerk CITIZENS' COMMENTS A. Agenda items not scheduled for public hearing LESLIE SIMUTIS, 1105 Second Avenue, representing local visitor industry businesses, urged the Council to consider assessments to lodging and harbor businesses in lieu of the bed tax, head tax and parking fees. She stated that, at the February 1, 1994, Council work session, the visitor industry businesses had agreed with the majority of the Council to institute a city business license, establish a visitor lodging assessment based upon a rate per room and establish a harbor commercial district visitor impact assessment fee based upon city parking code requirements. She added that this plan was simple, was recommended by the Parking Committee, was visitor funded and visitor friendly, and used existing systems for identification of businesses and collection of assessments. B. Items other than those appearing on the agenda ARLENE WILEY, 550 Railway, representing the Seward Lodging Task Force, spoke in agreement with the recommendation made by Leslie Simutis. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Anderson) Approve the Agenda and Consent Agenda. Crane moved New Business Items C (Assessments related to head tax, bed tax and parking issues) and D (City Business Licensing) to be considered prior to Unfinished Business. Bencardino removed Resolution No. 94-019 and Ordinance No. 94 -12 from the Consent Agenda. VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed Unanimously The Clerk read the following approved consent agenda items: The January 24, 1994, minutes were approved as written; CO City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 63 Ordinance No. 94-04, amending § 2.30.225, Powers and duties of the Planning and Zoning Commission, and establishing an Historic Preservation Commission, was introduced and set for public hearing on February 28, 1994; Ordinance No. 94-10, amending Seward City Code § 15.10.220, development requirements, was introduced and set for public hearing on February 28, 1994; Ordinance No. 94 -11, amending Seward City Code § 15.10.225, Land Uses Allowed Table, was introduced and set for public hearing on February 28, 1994; Ordinance No. 94 -13, amending Seward City Code § 15.10.215, parking, providing for a parking assessment fee for businesses in the Harbor Commercial District, was introduced and set for public hearing on February 28, 1994; Resolution No. 94 -020, establishing capital project funds and budgets for FY 1994 State Capital Matching Grant Projects and appropriating funds, was approved; Resolution No. 94 -021, approving the purchase of a police vehicle from Peninsula Ford, Inc., was approved; Resolution No. 94 -024, approving the purchase of dumpsters for the small boat harbor, was approved; Applications for renewal of liquor licenses as submitted by The Wheelhouse, American Legion and Breeze Inn were approved and the clerk was instructed to issue letters of non - objection; and An update on appraisals of city lands was noted for information. BOROUGH ASSEMBLY REPORT Mayor Crane noted that Kenai Peninsula Borough Assembly Member Patrick Reilly had reported that he would not be present since he had nothing to report at this time. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94-03, amending Title 6, Purchasing, contracts and professional services, Article 2, Competitive sealed bids 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -03 M City of Seward, Alaska City Council Minutes February 14, 1994 V 30, Page 64 O'Brien asked if, in the future, any other responsibilities would be transferred from the clerk to the manager. Jones explained that he and the clerk had reviewed the bid process and he was in agreement that this amendment would expedite the process and take the clerk out of an administrative loop. He noted that he did not see any future transfers of responsibility at this time. VOTE ON MOTION Motion Passed Unanimously Ordinance No. 94 -06, amending Seward City Code § 3.10.035, Step Increas- es, to provide for a Step J 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. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94 -06 Anderson asked how much this addition to the wage scale would cost. Jones replied that it would cost $10,000 if each employee currently at step I received a merit increase over the next year. Motion Passed Unanimously Ordinance No. 94-08, amending Seward City Code § 2.10.032, to provide a 24 -hour notice of special meetings 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94-08 Motion Passed Unanimously Ordinance No. 94 -09, creating a new Section § 2.10.031 of the Seward City Code to require adjournment of any regular or special meeting no later than 11:00 p.m. 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. 65 City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 65 MOTION (Anderson/Krasnansky) Enact Ordinance No. 94-09 Motion Passed Unanimously PRESENTATIONS WITH PRIOR NOTICE ONLY Planning and Zoning Commission Applicants ANNE D. CASTELLINA was not present. WALTER E. CORRIGAN, JR., 200 Benson Drive, stated that he had lived in Seward for the past 10 months and planned to stay. He noted that he was retired from the Navy. He added that he was interested in real estate but not sales. He stated that he had reviewed the City's comprehensive plan and land use plan and he would like to serve the City of Seward as a member of the Planning Commission. WILLIAM B. SHATTUCK, 525 Ballaine, noted that he had lived in Seward for 14 months and planned to stay. He stated that the Planning and Zoning Commission was a crucial part of community growth and he would like to participate as a Commissioner. SHANNON SKIBENESS, 2612 Birch Street, stated that she currently worked for the U. S. Forest Service in the area of forest management. She noted that she had worked as an intern for the City of Seward while working on her degree. During this time, she helped prepare the certified local government status for historic preservation purposes, worked on historic preservation projects, updated the city's community profile, attended Planning and Zoning Commission training and learned about the Commissions role in government. She added that she had also studied the comprehensive plan and the Seward City Code. She stated that she enjoyed the experience working for the City and felt that she had planning skills to contribute. DONALD A. SUTHERLAND, 225 Sixth Avenue, stated that he had served on the Planning Commission for 10 years and as Chairman for three years. He noted that he had worked on two comprehensive plans, and he was looking forward to continuing in the role of Planning Commissioner as a part of Seward's future. LEO M. WAKEFIELD, 439 Fifth Ave, stated that he was the owner/broker of Legacy Realty. He noted that he had been involved in the development of a small subdivision and he was raised around construction and real estate. He stated that Seward was growing and he would like to be involved in the planning process for the future. He added that he looked forward to helping solve problems associated with growth. ORDINANCES FOR INTRODUCTION City of Seward, Alaska February 14, 1994 City Council Minutes Volume 30, Page 66 Ordinance No. 94 -12, creating Seward City Code § 11.15.130, paid parking, to provide for the operation of paid parking. MOTION (Krasnansky /Anderson) Introduce Ordinance No. 94 -12 Anderson stated that she disagreed with Leslie Simutis comments that there was a clear consensus of the parking committee for parking assessments. She noted that the committee had presented several proposals and it was up to the Council to set the policy on parking. Bencardino agreed with Anderson and stated that he understood that local citizens did not want to pay for parking. He noted that almost every tourist destination required visitors to pay for parking and other taxes. He stated that many groups had made a good faith effort to resolve this issue but it was up to the Council to make the final decision. Bencardino voiced his support for assessments to the visitor industry business owners. Sieminski agreed with Anderson that there was not city -wide support for assessments. Krasnansky noted that Ordinance No. 94 -12 would put a mechanism in place to provide for paid parking in the future and give the Council the authority to set parking fees by resolution. He noted that this would enhance revenues. Crane stated that, since the last budget year, when the Council agreed to enhance revenues through the head tax, bed tax, and parking fees, many issues and options had been explored. He noted that the ordinance would provide for paid parking and the Council could set the fee by resolution at a later date. VOTE ON MOTION TO INTRODUCE Motion Failed YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien RESOLUTIONS Resolution No. 94 -019, setting rates and charges for copying and purchasing miscellaneous documents and services from the administrative service. MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -019 6`I City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 67 Bencardino stated that the city employees should pay the same rate as the public for copies. Deputy Clerk Jones replied that the cost to city employees reflected the cost the city paid for copies, and the cost to the public covered the cost of the copies plus staff time. Crane asked if there was an administrative policy for employee copies. City Manager Jones stated that there was and the employee was required to use the copier on his own time. O'Brien asked for a report on the volume of personal copying versus overall copying. Jones replied that he would provide a report to the City Council. VOTE ON MOTION TO APPROVE Motion Passed Unanimously Resolution No. 94 -022, approving the Nash Road Small Boat Harbor development agreement MOTION (Sieminski/Bencardino) Approve Resolution No. 94 -022 Darling declared a direct conflict of interest since he owned a portion of the land involved in the development project. Crane ruled that Darling had a conflict of interest and would abstain from voting on this issue. In answer to a question from Sieminski, Jones stated that the cost of the master plan would be split between the developer and the city, with the city committing up to $5,000. He noted that the plan would become a public document for anyone to review. Jones reviewed the development agreement with the Council. He noted that Mr. Schafer was responsible for developing the master plan with financial support from the city. He further noted that, once the master plan was completed, it would be brought back to Council for approval. He stated that the developer would then apply for a conditional use permit with the concurrence of Mr. Darling. Once the conditional use permit was obtained, the developer would seek Council approval to proceed with construction. He stated that Mr. Schafer and Mr. Darling would seek Council approval of a five year lease with an automatic one and one -half year extension if needed. He further noted that transfer of the uplands and tidelands would take place only upon • City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 68 completion of the project. Jones reported that there was strong support for this project. Anderson asked how much had been expended in legal fees and how long the Corps of Engineers permit was valid. Jones estimated that $5,000 had been spent to date. He replied that the Corps of Engineers permit was valid for three years and expired on March 1, 1996. Anderson stated that she would like to see a financial viability statement completed by a third party for this project. O'Brien asked for clarification on city funds to be spent. Jones replied that the city could spend up to $5,000 in matching funds for the master plan. O'Brien asked the city attorney to explain Section 1 of the resolution which authorized the administration to make changes to the development agreement without approaching the Council. Klinkner replied that this clause was not intended to allow any essential terms of the document to be changed. He noted that any major changes would need to go before Council. O'Brien stated that he did not object to housekeeping changes but would object to the expenditure of funds without Council approval. Klinkner noted that the essential agreement was before the Council and he did not foresee any major changes. He further noted that the administration was limited to changes that did not materially deviate from the structured agreement. MOTION (Anderson/O'Brien) Amend page 4 of the development agreement by adding section 2.1.H., The master plan shall describe plans for financing the project. Detail shall be provided in the form of a cost analysis and a finding of financial feasibility by the financing entity. VOTE ON AMENDMENT Motion Passed MOTION (Anderson/Sieminski) YES: Anderson, Bencardino, Crane, Krasnansky, O'Brien, Sieminski ABSTAIN: Darling Amend page 9 of the development agreement by adding section 3.3.H, In addition to the evidence of financing described in 33.13., Developer shall 69 City of Seward, Alaska February 14, 1994 VOTE ON AMENDMENT City Council Minutes Volume 30, Page 69 submit to the City a finding of the project's financial feasibility prepared by the financing entity or by an independent financial consultant acceptable to the City. The project feasibility analysis shall be submitted prior to initiation of project construction. Motion Passed YES: Anderson, Bencardino, Crane, Krasnansky, O'Brien, Sieminski ABSTAIN: Darling Anderson commented that the report on the water and sewer utilities completed by CH2M Hill was used for this study. She estimated that installation of water and sewer utilities would cost approximately $14 million. VOTE ON APPROVAL OF RESOLUTION NO. 94-022 AS AMENDED Motion Passed YES: Anderson, Bencardino, Crane, Krasnansky, O'Brien, Sieminski ABSTAIN: Darling Resolution No. 94 -023, approving a refund of CEA Capital Credits to electric utility customers MOTION (KrasnanskyBencardino) Approve Resolution No. 94 -023. Sieminski asked how much credit the average utility customer would receive. Jones replied that the refund would amount to a few dollars per customer. Sieminski suggested keeping the funds in reserve to be used towards the purchase of an emergency generator. Anderson stated that the funds should be used for an emergency generator or for costs associated with the oil spill cleanup at Ft. Raymond. Jones stated that all issues relating to the CEA Capital Credits were widely reviewed. He noted that each current utility customer would receive a credit totalling from $15 to $20. He stated that this refund to customers would alleviate any danger of the City being criticized for not making this benefit available to its customers. He added 70 City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 70 that a credit on each utility bill was easy to administer and the most equitable and efficient way to handle the refund. Crane stated that increases were included in the FY 1994 budget to take care of any utility problems. VOTE ON MOTION Motion Passed Unanimously RECESS: The Council recessed at 9:00 p.m. and reconvened at 9:10 p.m. The following New Business items were taken out of order: Assessments related to head tax, bed tax and parking issues Anderson requested introduction of an ordinance to provide an annual assessment fee for harbor merchants. Deputy Clerk Jones explained that this item was before Council because Councilmember Anderson had requested the preparation of an ordinance to provide for assessments for lodging, charter boats and parking. She noted that City Clerk Murphy had explained that, since these items would require considerable staff and attorney time, she would like a consensus from the majority of the Council before proceeding with the requested ordinances. City Manager Jones agreed stating that no consensus was arrived at during the last work session. MOTION (Anderson/O'Brien) Instruct the administration to prepare an ordinance to provide for a seat assessment for charter boats. Anderson provided statistics to the Council for consideration. She noted that the ordinance would provide a mechanism for assessments. She stated that the fee would be set each year by resolution. Crane objected to Anderson s proposal to charge only vessels with more than ten seats. He stated that the assessment should be equitable for all vessels. Krasnansky spoke in support of preparing an ordinance. He stated that, if some Councilmembers opposed the ordinance after it was written, they could always vote against it. Crane stated that, if the Council did not concur now, there was no reason to spend money on staff and attorney time to prepare an ordinance. 71 City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 71 O'Brien stated that he thought that the Council had reached a consensus on this issue at the work session. He asked for clarification. Jones stated that the memorandum included in the packet addressed the proposed assessments. He noted that the assessments that were proposed by the local visitor industry businesses was an outgrowth of community partnership seeking an equitable means of producing revenues. He stated that the proposal received from Leslie Simutis represented a compromise by all. He stated that the proposal would generate sufficient revenues for FY 1994. Jones recommended that the Council direct the administration to prepare ordinances to provide for seat assessments and city business licensing. He also recommended postponement of Ordinance No. 93 -29, defeat of Ordinance No. 94 -07, and postponement of the implementation of the five percent bed tax that was scheduled to become effective March 1st. In answer to a question from O'Brien, Anderson stated that her proposal would set up an assessment and/or a tax for charter boats. Discussion ensued related to the various proposals set forth for assessments. Anderson stated that the issue before Council was the need to increase revenues through assessments or taxes for Fiscal Year 1994. She noted that it was time to settle this issue since Council was now in the process of considering the FY 1995 budget. VOTE ON MOTION Motion Failed YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien Following a poll of the Council, Crane stated that it was the consensus of the majority of the City Council to instruct the administration to prepare an ordinance to provide for a visitor impact assessment in the harbor commercial district, to prepare an ordinance to provide for a visitor lodging assessment for all rooms within the city and to implement a city business license. YES: Bencardino, Crane, Darling, O'Brien NO: Anderson, Krasnansky, Sieminski City Business Licensing City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 72 Anderson withdrew her request to discuss city business licensing and suggested that the City Manager make a recommendation. UNFINISHED BUSINESS Ordinance No. 93 -29, providing for a passenger transit fee for marine charter vessels and businesses. Crane noted that this ordinance had been postponed from the last meeting. MOTION (Crane/Krasnansky) Postpone until March 14,1994. O'Brien stated that, since there was a compromise proposal (from the visitor industry) to be presented, Council should take action on this ordinance instead of postponing it again. He noted that, if the compromise proposal did not pass, a new ordinance could be re- introduced. Crane replied that it was best to postpone this ordinance so the Council still had an option if the compromise proposal failed. He noted that it would take more time to introduce another ordinance and hold another public hearing before the Council could take action. VOTE ON MOTION TO POSTPONE Motion Passed YES: Bencardino, Crane, Darling, O'Brien NO: Anderson, Krasnansky, Sieminski Ordinance No. 94-07, amending Seward City Code § 5.40.020, reducing the bed tax to three percent. Crane noted that there was a motion to introduce on the floor. VOTE ON MOTION TO INTRODUCE Motion Failed Unanimously NEW BUSINESS Appointments to two vacancies on the Planning and Zoning Commission The Deputy Clerk distributed ballots containing the names of six applicants for the two vacancies on the Planning and Zoning Commission. She collected the ballots and read the results for the record. She noted that Anne Castellina was the top vote - getter City of Seward, Alaska City Council Minutes February 14, 1 99 4 Volume 30, Page 73 with four votes and Walter E. Corrigan Jr. and Shannon Skibeness were tied with three votes each. Ballots were distributed for a tie breaker vote and Jones noted that Walter E. Corrigan Jr. received four votes and Skibeness received three votes. The Council appointed Anne Castellina and Walter E. Corrigan Jr. to the vacancies on the Planning and Zoning Commission. Crane scheduled a joint work session with the Planning and Zoning Commission for Wednesday, March 9, 1994, at 7:00 p.m. in the City Council Chambers. CITY MANAGER REPORTS Jones reported on the number of man hours worked in 1993 at the Seward Forest Products sawmill. He stated that there was a prospect of expansion at the sawmill. He reminded everyone of the town meeting on the FY 1995 budget policy scheduled for February 15th. He distributed a memorandum from Engineering and Utilities Manager Calvert about the effects of chlorination of the city s water supply. He stated that negotiations were ongoing with the state of Alaska regarding the Small Boat Harbor Management Agreement. He updated the Council on the status of the states Intermodal Transportation System. He noted that the state had received a grant to study the intermodal systems throughout the state and Seward hoped to receive funding for improvements to the rail system and for the B Street Dock project. Jones reported that the latest community survey was mailed out to recipients. He noted that the city's attorney had given the opinion that the city could dedicate funds for certain purposes. COUNCIL DISCUSSION ANDERSON asked why the city manager and finance department were left off of the survey. Jones replied that these departments had been added. In answer to a question on volunteerism, Jones stated that this was not included since the goal of the questionnaire was to find out about changes in trends of the city and volunteerism seemed to be stable. SIEMINSKI asked about the status of the leases at the Seward Marine Industrial Center. Jones stated that the Seward Forest Products lease was being reviewed by its attorneys. He added that the lease amendment with Seward Ship's Drydock was pending. He noted that the city and SSD were waiting for a third party review to determine the economic feasibility of including a firewall in the construction of the 300 foot building. SIEMINSKI asked if any response had been received on bringing a Superior Court judge to Seward. Jones replied that he would bring back a report on this issue. WAI City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 74 SIEMINSIG further added that Third Avenue was in bad shape again. He requested a report on whether or not the State would be repairing Third Avenue. He also stated that a "Welcome to Seward" sign was needed at the city limits. O'BRIEN stated that he would like a copy of the RFP to be issued on land appraisals of all City lands. He asked for a status report on the audit. He also expressed concern that an opinion had been given by the attorney regarding a citizens right to take a sales tax issue to referendum. He asked where the request originated. Jones stated that the clerk had requested clarification of the code in order to be better prepared to offer an opinion about whether or not certain issues were subject to referendum. O'BRIEN stated that anything should be subject to referendum and objected to the administration asking the attorney about this issue. Finance Director GIFFORD reported that the draft of the FY 1993 audit was completed and the auditors were working on the final reports. He stated that the final documents would be ready within two weeks. DARLING stated that the State should raise the manholes on Third Avenue when repairs were done. He asked to have a resolution amending the campground budget placed on the next agenda since he was not present to discuss and vote on it at the last meeting. BENCARDINO thanked Tex Ainsworth and Dave Calvert for the report on chlorination of the water. He noted that he was concerned about chlorine being a poison, and people should be informed of its harmful effects. He asked if Perkins Coie was still representing the city. Jones replied that Perkins Coie had been retained to work on the grain terminal sale and other matters deemed not feasible to transfer to Wohlforth, Argetsinger, Johnson and Brecht. Jones stated that the grain terminal would continue to be an issue as long as the parts were still stored in Seward. He noted that recent costs were related to a contract dispute between the buyers of the grain terminal and Northern Stevedoring. BENCARDINO suggested transferring all pending matters to Wohlforth, et. al. KRASNANSKY stated that he had discussed the sales tax referendum issue and taxation in general with the City Clerk. He noted that the clerk had researched the City Code and Title 29 and had asked the attorney for clarification on certain issues. He stated that, if anyone were to blame for utilizing attorney time on this issue, it was because of his request. He reported that he would be unable to attend the town meeting on the budget policy. ANDERSON reported on hospital issues. She stated that a very productive strategic planning session had been recently held. She noted that the hospital had distributed a community survey among Seward citizens. She reported that CEO Richard Jones was a hands -on administrator, and he was addressing health care needs of the community as a whole. She thanked Foster Singleton for the report on the tug Karen City of Seward, Alaska City Council Minutes February 14, 1994 Volume 30, Page 75 and other derelicts in the Small Boat Harbor. She expressed her opinion on the defeat of the ordinances she had sponsored. CRANE wished everyone a happy Valentine's Day. He reminded everyone of the town meeting on the FY 1995 budget. CITIZENS' DISCUSSION ARLENE WILEY, 550 Railway, representing the Kenai Peninsula Tourism Marketing Council, stated that she wanted to thank the tourism industry for making available photographic slides of the Seward area. She noted that a set had been sent to the archives in Juneau. She added that the filmstrips would be used to attract new visitor industry and marine technology to Seward. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 10:22 p.m. Patricia j. Jones, CMC Deputy City Clerk (City Seal) a i . City of Seward, Alaska F 28, 1994 - Mar 3, 194' ;; x Dave W. Crane Mayor City Council Minutes Volume 30, Page 75 CALL TO ORDER The February 28, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 76 Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino Hugh Darling James Krasnansky Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Brad Meyen, City Attorney Linda S. Murphy, City Clerk CITIZENS' COMMENTS Agenda items not scheduled for public hearing BOB FERGUSON, 4160 Wilma Avenue, urged the Council to authorize the administration to negotiate a lease in the Small Boat Harbor as requested. (See Agenda Item 13E.) JIM MCCRACKEN, Lowell Point, spoke in favor of development in the northeast quadrant of the Small Boat Harbor as requested by Ferguson. He stated that such development was long overdue and would relieve congestion in the current Small Boat Harbor. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky/Bencardino) Approve the Regular Meeting Agenda and the Consent Agenda. Sieminski asked to add discussion of the bed tax and paid parking under Unfinished Business so that he would have an opportunity to discuss these issues if his remarks were ruled out of order during discussion of Ordinance No. 94 -16 and No. 94 -17 Jones noted a typographical error in Resolution No. 94 -027, Section 2 (the amount should read $8.00 per night). Crane noted that Ordinance No. 94 -16 had been pulled and replaced with new Ordinance No. 94-16 and Ordinance No. 94 -17 He also asked that these two ordinances be considered for introduction on the regular agenda rather than the consent agenda. O'Brien moved Ordinance No. 94 -15 to the regular meeting agenda. �1'e City of Seward, Alaska February 28, 1994 - March 3, 1994 City Council Minutes Volume 30, Page 77 Anderson moved Resolution No. 94 -027 to the regular meeting agenda. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA Motion Passed Unanimously The Clerk read the following approved consent agenda items: The February 14, 1994, minutes were approved as written; Ordinance No. 94 -14, providing for self registration of campers, was introduced and set for public hearing on March 14, 1994; Resolution No. 94 -025, authorizing the city manager to amend the Land Field Services contract to include Phase II, Seward Transmission Line Project, was approved; Resolution No. 94 -026, authorizing the purchase and installation of two 100 -foot Highmast 6,000 watt lighting fixtures east of the North Dock, was approved; Finance Department report of purchase orders totalling between $5,000 and $10,000 which were issued October 27, 1993, through February 17, 1994, was noted for information; Request to refer a claim for damages totalling $1905.47 as filed by Portia Olander to the city's insurance adjuster was approved; Request for renewal of a liquor license as filed by Dreamland Bowl was approved and the clerk was instructed to issue a letter of non - objection to the ABCB; and The fourth quarter CY 1993 sales tax report was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. SPECIAL ORDERS AND PUBLIC HEARINGS Service award to Don Sutherland Crane presented a gold pan award to Donald Sutherland in recognition of his ten years of service on the Planning and Zoning Commission. City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 78 Ordinance No. 94-04, establishing an Historic Preservation Commission. 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. MOTION (Anderson/Bencardino) Motion Passed Enact Ordinance No. 94-04 Unanimously Ordinance No. 94 -10, amending Seward City Code § 15.10.220, develop- ment requirements. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. DOT BARDARSON, Nash Road, owner of Bardarson Studio in the Small Boat Harbor, urged the Council to enact this ordinance in order to allow zero lot line development in the Harbor Commercial District. She stated that it made economic sense to provide for maximum use of this valuable property. She also stated that joining the properties together would be more aesthetically pleasing and would keep people from walking and loitering between the buildings. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky/Bencardino) Enact Ordinance No. 94 -10 O'Brien requested that Paragraph C of Section 1 be amended to include all building height definitions and regulations in one section of the City Code rather than fragmenting them. Anderson stated that she had quite a few questions about this ordinance and was concerned that approval of zero lot line development would result in a solid block of 34- foot tall buildings from the Marina Restaurant to the Fish House. She stated that she was also concerned that there was no alley access for fire or rescue efforts. She requested that the Council postpone action on this ordinance until after the planned work session with the Planning Commission when she hoped to discuss overall harbor development. MOTION (Krasnansky /O'Brien) Postpone action on Ordinance No. 94-10 until March 14, 1994. Motion Passed Unanimously City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 79 Ordinance No. 94 -11, amending Seward City Code § 15.10.225, land uses allowed. 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. MOTION (Krasnansky/Bencardino) Enact Ordinance No. 94 -11 Motion Passed Unanimously Ordinance No. 94 -13, amending Seward City Code § 15.10.215,parking, to provide for annual parking assessments for harbor merchants. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. RANDY MCFARLAND, 232 Fifth Avenue, stated that Darling should abstain from voting on the size of the fee to be assessed. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Crane/Bencardino) Enact Ordinance No. 94 -13 Darling noted that he operated a business in the Small Boat Harbor and declared a possible conflict of interest. Crane ruled that Darling's interest in the outcome of a vote on this ordinance was not "substantial' and he could, therefore, participate in the discussion and vote. MOTION (Anderson/Krasnansky) Appeal the ruling of the chair. Murphy noted that the motion before the Council was "Shall the ruling of the Mayor be sustained ?" She further noted that only a majority of 'No" votes could overrule the Mayo's decision. VOTE ON MOTION TO SUSTAIN THE RULING OF THE CHAIR Motion Passed YES: Bencardino, Crane, Darling, O'Brien, Sieminski NO: Anderson, Krasnansky Sieminski made a lengthy presentation using visual aids to show the cost to the city of providing parking for merchants in the Small Boat Harbor. City of Seward, Alaska February 28, 1994 - March 3, 1994 City Council Minutes Volume 30, Page 80 Anderson objected to proposed Section 15.10.260 (in proposed Ordinance No. 94- 17) which would allow the administration to adopt regulations without Council approval. O'Brien concurred and stated that he would agree to the Clerk's recommendation that the Council vote down Ordinance No. 94 -13 and enact instead Ordinance No. 94 -17 VOTE ON MOTION Motion Failed Unanimously PRESENTATIONS WITH PRIOR NOTICE ONLY Army Corps of Engineers representatives - Lowell Creek Flood Control Tunnel, Small Boat Harbor expansion and Resurrection River flood control Steve Bredthauer, Project Manager, reviewed the Lowell Creek Flood Control Project. RECESS: The meeting recessed at 8:55 p.m. and reconvened at 9:05 p.m. ORDINANCES FOR INTRODUCTION Ordinance No. 94 -15, providing for a city business license. MOTION (O'Brien/Bencardino) Introduce Ordinance No. 94 -15 and set the ordinance for public hearing on March 14,1994. O'Brien stated that he had pulled this ordinance so that the public would be aware that it was coming before the Council. Crane agreed that it was important and thought that it was a good ordinance and long overdue. He stated that such a license would protect the community and assure that those coming into town to do business had the proper licenses and collected sales tax as required by the city and borough. Krasnansky asked if a business license owner would have to declare a conflict of interest. Crane stated that holding a business license would not constitute a conflict of interest as defined in the City Code. Anderson objected to determining the annual fee by resolution and questioned why the fee could not be a part of the ordinance. Jones noted that the establishment of fees - whether by resolution or ordinance - was being pursued by the attorney. M City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 81 Darling raised several questions including the cost to the city of administering the ordinance. O'Brien stated that the ordinance contained an appeal process; however, the Council was not included in the "loop ". O'Brien also expressed his concern regarding § 8.30.055, disclosure of licensed businesses. Jones responded that this information was already available from state business license listings and was not generally considered confidential or proprietary information. VOTE ON MOTION Motion Passed Unanimously Ordinance No. 94-16, establishing a visitor impact assessment fee for lodging establishments. Anderson asked why this ordinance had been split into two ordinances. Jones stated that the administration had anticipated conflicts on the part of certain council- members with regards to certain portions of the ordinance, and this was an attempt to simplify the process of voting on the issues separately. MOTION (Krasnansky/Bencardino) Introduce Ordinance No. 94 -16 and set the ordinance for public hearing on March 14, 1994. Crane noted that he would like Council concurrence to change the wording of the ordinance to reflect the opinion of the attorney with respects to whether fees would be set by resolution or ordinance. There was no objection from the Council. Sieminski made a lengthy presentation employing visual aids comparing tax rates of several Alaskan communities. Krasnansky stated that this was evidence that people go to communities where there were bed taxes in place and refuted the argument that visitors would stay away from Seward if a bed tax were enacted. Crane stated that the city had before it a group of merchants ready to pay assessments. He stated that acceptance of this compromise would show good faith on the part of the Council and the business community. Darling stated that this was not a question of how much the city could squeeze from the housing industry, but how little the city could take and still get by. He commended the administration for coming up with a budget that did not require additional revenues. MN City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 82 Sieminski stated that nearly every city charged a bed tax and so should the city of Seward. He noted that the city's visitors used city services and utilities and should pay their share. Anderson stated that she was trying to look at the big picture. She stated that it was short - sighted to cut the budget when the city's visitor industry was growing by leaps and bounds. She stated that there was the potential to raise a significant enough amount of money to really enhance the visitor industry. Anderson stated that she, too, used to think that government should be cut; however she had seen the inefficiencies which resulted when departments were understaffed. She stated that there was a need to adequately fund government to make it as efficient as it could be. She added that most people had no idea of the city- provided services they were using. In response to a concern raised by O'Brien, Jones stated that, if the business license ordinance was not enacted, Ordinance No. 94 -16 could be amended to provide another avenue of registering affected businesses. Anderson noted that the budget planning sessions had indicated that there were low city reserves and many community needs including resurfacing of streets, boat harbor repair and maintenance and hospital financial problems. She urged the Council to address these problems rather than insisting on a "hold the line" budget. Krasnansky stated that this was his biggest complaint. He noted that the Council constantly heard complaints about the sorry state of the city's infrastructure, decreases in revenue sharing, etc. He added that the city had to start taking care of itself, and this meant finding new tax dollars. Crane stated that the repeal of the sales tax told him that the community wanted the city to streamline the budget and live within its means. Krasnansky stated that the sales tax should not be compared to user fees or the bed tax. He stated that, if the general public could vote on special assessments, user fees or bed taxes, the general public would probably support them. Anderson asked Jones if his proposals would generate enough money to operate city government, and Jones responded that they would generate sufficient funds. VOTE ON MOTION Motion Passed YES: Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Anderson, Sieminski d3 a City of Seward, Alaska February 28, 1994 - March 3, 1994 City Council Minutes Volume 30, Page 83 Ordinance No. 94-17, establishing a parking assessment fee for harbor area businesses. MOTION (Darling/Bencardino) MOTION (Anderson/Krasnansky) Introduce Ordinance No. 94 -17 and set the ordinance for public hearing on March 14,1994. Amend the ordinance by eliminating the exception for the Central Business Dis- trict. Anderson stated that, if there was to be a parking assessment, it should not be restricted to the harbor area. Darling stated that this assessment was in lieu of paid parking in the harbor. He added that there was no city - provided parking lot in the downtown area. Crane agreed. He stated that the city was attempting to solve a parking problem in the boat harbor. VOTE ON AMENDMENT Motion Failed YES: Anderson, Sieminski NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien VOTE ON INTRODUCTION OF ORDINANCE Motion Passed YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski RESOLUTIONS Resolution No. 94 -027, increasing camper fees for recreational vehicles. MOTION (Sieminski/Bencardino) Approve Resolution No. 94 -027 as cor- rected to resolve a clerical error. Anderson stated that she did not understand charging the same fee for tents as for camping vehicles. She also asked if the occupants of the Waterfront Park were warned of the potential danger of earthquake or tidal wave. • City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 84 Jones stated that, although the tents occupied a smaller piece of real estate, tent campers created other impacts. He noted that they were more inclined to use the fire pits, picnic tables, restrooms, etc. He added that their need for services and maintenance in the campground was greater than that of self contained vehicles. Jones also noted that the city did distribute and post a brochure regarding the seismic instability of the waterfront area. In response to a question from Crane, Jones reported that the state charged the same rate for tents and RV's. O'Brien stated that the city had historically charged less for tents than RV's. He suggested that the city might be creating a lot of ill will for a few dollars of revenue. Jones stated that he was certain that some would protest the $8.00 rate; however, it was important for the city to set the standard. He noted that the services were costly to the city and the impacts on city time and services should be paid. MOTION (O'Brien/Anderson) Amend Section 2 by changing the rate to $6.00. Motion Passed YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski Anderson asked if thought had been given to using the increased revenues to provide more services such as full hook ups, etc. Jones responded that this was the city's plan. VOTE ON RESOLUTION AS AMENDED Motion Passed Unanimously Resolution No. 94 -028, amending the Parks and Recreation Department Campground budget. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -028 Darling stated that he had requested that this budget amendment be placed on the agenda once again since it had failed as a result of his absence from the last meeting. He stated that there was a direct correlation between the number of campers and the cost of operation of the campground and, therefore, this requested amendment was justified. Darling stated that Sturdy and her staff were doing a good job and deserved the support of the Council. 85 City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 85 Sieminski stated that he was unsure whether there were funds available within the Parks and Recreation Department budget to cover these costs. Jones stated that the resolution referred to depleted line items in the department. Anderson thanked Sturdy for her explanation and justification. She stated that her reason for objecting to the amendment at the last meeting was that there was no financial information regarding budget shortfalls included in the Council packets. She stated that she still could not see why this amendment could not be handled within the existing budget through line item changes. Bencardino stated that the city should set aside at least 25% of the campground revenues taken in to provide permanent facilities to replace the port -a- potties, adding one new restroom each year. O'Brien stated that the expenses were legitimate and well justified; however, the administration should be able to find $12,900 in a $400,000+ budget. Darling stated that the Council was penalizing the department for bringing in additional revenues and doing a good job. He stated that, if usage of the facility went up, expenses would go up proportionately. Krasnansky concurred with Darling and stated that he did not see why the Parks and Recreation Department was penalized for showing a profit. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed UNFINISHED BUSINESS [Deleted] NEW BUSINESS YES: Anderson, Bencardino, Crane, Darling, Krasnansky NO: O'Brien, Sieminski Bruce Sieminski proposal to lease property in the Small Boat Harbor MOTION (Krasnansky/Bencardino) Authorize the administration to negoti- ate a lease in the Small Boat Harbor with Bruce Sieminski as requested. Sieminski noted his conflict of interest. Crane ruled that a conflict did exist, and Sieminski should refrain from discussing or voting on the motion. Nfa R, City of Seward, Alaska February 28, 1994 - March 3, 1994 City Council Minutes Volume 30, Page 86 VOTE ON MOTION Motion Failed YES: Anderson, Bencardino NO: Crane, Darling, Krasnan- sky, O'Brien ABSTAIN: Sieminski Robert H. Ferguson III provosal to lease property in the Small Boat Harbor MOTION (Krasnansky/Bencardino) Negotiate a lease with Robert H. Ferguson as requested. Jones stated that Ferguson's idea was a good one, but the city had not yet developed a complete site plan or development plan and was a long way from getting to that point. He stated that, if the city wished to make this property available for lease and development once its site plan was completed, proposals should be solicited through the RFP process. Anderson stated that this philosophy seemed to be a departure from what the city had done in the past and she asked if this was standard procedure. Jones stated that this (using the RFP process to solicit proposals) was commonplace in waterfront properties in other communities, but not Seward. Sieminski stated that he could see no problem with this proposal and suggested that the city work around Ferguson's enterprise. Crane disagreed and noted problems created in the past when the Council had rushed into decisions without doing the proper planning. Jones stated that the federal funds for development of this area were just located last summer and, since that time, a development plan had been initiated for the ramp, utilities and parking. He stated that the city did not know how far the federal funds would go, and to have to work around another development during the city's development would be a mistake. Jones also noted that the city did not yet have clear title to the tidelands and it was premature to install a private party on the property before the issue of ownership and site development were finalized. Krasnansky stated that Ferguson had offered to pay fair market value, and the RFP process was one way to find out what fair market value was. VOTE ON MOTION 8, City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Vo 30, Page 87 Motion Passed YES: Anderson, Bencardino, O'Brien, Sieminski NO: Crane, Darling, Krasnansky NOTE: Crane noted that it was now 11:00 p.m. and, according to a newly adopted City Code regulation, the Council must move directly into CITIZENS' DISCUSSION and then to ADJOURNMENT. CITIZENS' DISCUSSION ERIC OLSON, 315 Second Avenue, commended the Council for making the hard decisions earlier in the evening. He compared the sales tax revenues over the past several years and stated that the visitors did pay for what they used in the community since they (the tourists) were responsible for a large share of the sales taxes collected. RANDY MCFARLAND, 232 Fifth Avenue, noted that although Jones claimed that there was adequate money to run the city, user fees on the waterfront park had been raised by the Council. He stated that he did not understand how the Council could raise user fees for campers, yet fail to raise fees in the harbor because the community was afraid that this would scare people away. ADJOURNMENT MOTION (Krasnansky /Anderson) Motion Passed Adjourn to Thursday at 7:00 p.m. YES: Anderson, Bencardino, Krasnan- sky, Sieminski NO: Crane, Darling, O'Brien The meeting was adjourned at 11:05 p.m. until Thursday, March 3rd, at 7:00 p.m. --� r /J hc"e 1-- ; Uy. 0"", a S. rphy, C C/AAE Dave W. Crane City Clerk Mayor (City Seale) IL City of Seward, Alaska City Council Minutes February 28, 1994 - March 3, 1994 Volume 30, Page 88 CALL TO ORDER The February 28, 1994, adjourned meeting of the Seward City Council was called to order at 7:05 p.m. on Thursday, March 3, 1994, by Vice Mayor James Krasnansky. ROLL CALL There were present: James A. Krasnansky, presiding, and Margaret Anderson Louis Bencardino Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Patricia J. Jones, Deputy City Clerk Absent were: Dave W. Crane (excused) Hugh Darling (excused) CITY MANAGER REPORTS Jones reported that the recent death of Mr. Burke while serving time in the Seward Correctional Center was regrettable, but Mr. Burke had died from natural causes and appropriate procedures were followed by the staff. Jones stated that a bank deposit was discovered missing when an employee reported that she had not received her canceled check from the bank. He reported that the matter was under investigation. Jones also reported that the tugboat Jim had sunk following an attempt by the harbor crew to keep it afloat at the Small Boat Harbor. He noted that it had been moved to the Seward Marine Industrial Center and the city was attempting to beach the vessel. Jones noted that the FY 1994 audit would be available for distribution during the next week. He also noted that the FY 1995 preliminary budget was being prepared but, pending the resolution of the various assessment fees, it was difficult to project revenues for a complete budget. He noted that Councilmember Anderson had filed with the Clerk a notice of intent to reconsider introduction of Ordinance No. 94 -17, and he encouraged the Council to take up the reconsideration at this meeting rather than wait until March 14th. He further urged the Council to defeat the reconsideration so that a public hearing and vote on enactment could take place March 14th in the interest of completing the preliminary budget by April 1st. A City of Seward, Alaska City Council Minutes Fe bruary 28, 1994 - March 3, 1994 Volume 30, Page 89 Jones asked the Councilmembers for their opinions on city representation at an upcoming conference on the 1989 oil spill titled "Five Years Later - What Have We Learned." Jones noted a number of memos distributed to Council concerning possible shift hours at the city shop, employee copying cost figures and the possibility of obtaining a Superior Court Judge in Seward. Jones gave a status report on the B Street Dock and the alternative Railroad Dock proposal. He also reported on his latest lobbying trip to Juneau to solicit funding for the B Street Dock Project and the University of Alaska's arctic research vessel. He noted that the Brady Bill was now in effect and the police department was implementing the requirements mandated in the bill. COUNCIL DISCUSSION O'BRIEN asked for clarification regarding the Exxon Oil Spill Forum. Jones replied that this forum would allow communities to provide an update of procedures that were followed during the oil spill and how to better respond in the future. O'BRIEN stated that the city should be represented as long as the cost was minimal. ANDERSON voiced her appreciation to everyone concerning the recent death of her brother. She encouraged all males to have a prostate cancer screening for early detection. BENCARDINO asked the manager for clarification on reconsideration of the introduction of Ordinance No. 94 -17 Jones replied that he wanted a clear signal from the Council on the assessment fees as soon as possible in order to complete the preliminary budget. MOTION (Bencardino /O'Brien) Reconsider introduction of Ordinance No. 94 -17 Sieminski objected to reconsideration at this time since Councilmember Anderson gave written notice of reconsideration on March 1st. Anderson stated that she was not prepared to reconsider the ordinance at this time. She noted that her intent was to separate the parking assessment and the charter boat assessment into two ordinances. O'Brien stated that the ordinance could be amended when a motion for enactment was on the floor. VOTE ON MOTION Motion Failed YES: Anderson NO: Bencardino, Krasnansky, O'Brien and Sieminski arr MOM of Seward, Alaska Lary 28, 1994 - March 3, 1994 City Council Minutes Volume 30, Page 90 SIEMINSKI discussed costs associated with the clearing work that was done on the Forest Acres Campground. He objected to the cost totalling approximately $17,000 for work done by Public Works and Parks and Recreation. He also requested reimbursement by the state for transportation costs when a police officer was required to attend Superior Court hearings in Soldotna or Anchorage. KRASNANSKY noted that Ordinance No. 94 -10 needed further review including the section on building heights. He asked if the borough planned to establish an ordinance identifying and regulating hazardous materials. Jones replied that he had attended a seminar on hazardous materials. He noted that one of the main goals was to provide public education, safety and awareness of hazardous materials. He further stated that, in conjunction with the borough, a part -time position would be created to handle this issue. O'BRIEN noted that he was concerned about receiving a budget by April 1st. Jones guaranteed that the Council would have a preliminary budget before them by April 1st. ADJOURNMENT The meeting was adjourned at 8:05 nm_ Patricia J. Jones, CMC Deputy City Clerk U] City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 91 CALL TO ORDER The March 14, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Michael Yanez, Deputy City Manager Carol Giles, City Attorney Representative Patricia J. Jones, Deputy City Clerk CITIZENS' COMMENTS Agenda items not scheduled for public hearing Louis Bencardino James Krasnansky Bruce Sieminski MARK CLEMENS, Meridian Park, spoke regarding the proposal by Ray and Leslie Simutis to lease property in the Small Boat Harbor. He stated that the city needed to focus on planned growth in the community. Items other than those appearing on the agenda JERRY KING, 900 Third Avenue, commented on the absence of an ordinance on the agenda to repeal the bed tax. He noted that he looked forward to repeal of the tax at the next meeting. MIKE WILEY, 550 Railway, spoke regarding the tourism industry as it related to the community. He noted that, each year, the citizens of Seward cleaned up the community for the benefit of all, including the visitors. He added that tourism was a growing industry that affected Seward on a year -round basis. ELAINE NELSON, 209 Ravina Way, Director of the Chamber of Commerce, reported that she had attended the Winter Cities Conference in Anchorage. She reported that Seward was 92 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 92 well represented and she thanked those who participated and gave their support. She stated that the focus of the conference was on economic development. She invited the Council to the next Chamber luncheon meeting to hear a presentation by a guest from the Alaska Visitors Association. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agen- da. Anderson moved Resolution No. 94 -032 and Resolution No. 94 -037 to the regular meeting agenda. O'Brien moved Ordinance No. 94 -18 and Resolution No. 94 -033 to the regular meeting agenda. Crane moved Presentations with Prior Notice to be considered after the Borough Assembly Report. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed Unanimously The Deputy Clerk read the following approved consent agenda items: The February 28, 1994, and March 3, 1994, minutes were approved as written; Ordinance No. 94 -19 amending the legal description of certain lots within the Gateway Subdivision Offsite Improvements Assessment Districts located within Jesse Lee Heights Subdivision Addition #3, was introduced and set for public hearing on March 29, 1994; Resolution No. 94 -029 approving a vendor permit to the Chamber of Commerce for the 1994 Spring Fling, was approved; Resolution No. 94 -030 supporting SB 327, establishing a different tax levy on residual fuel oil used in and on watercraft, was approved; Resolution No. 94 -031 approving City Council Rules of Procedure, was approved; Resolution No. 94 -034 authorizing the city manager to execute the Xerox class action claim form and accept the terms and conditions of the settlement as outlined in court documents, was approved; Resolution No. 94 -035 approving Change Order No. 6 to the Dryden and LaRue contract to cover surveying costs not anticipated in Change Order No. 5, was approved; 93 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 93 Resolution No. 94 -036 approving the purchase of a boat harbor accounting program from Arthur Micro - Systems; was approved; and Request to postpone the March 28, 1994, meeting to Tuesday, March 29th was approved; Informational memorandum noting that the city would begin enforcement of plumbing and mechanical inspection fees on April 1, 1994, was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the upcoming assembly meeting to be held in Ninilchik. PRESENTATIONS WITH PRIOR NOTICE High School Close -Up Pros!ram Roger Steinbrecher informed the City Council about the close -up program. He noted that high school students were given an opportunity to learn more about government by travelling to Washington D. C. each year. He stated that this year's students would be traveling in April and would present an aerial photo of Seward to United States Senator Ted Stevens. Each of the students talked about different fund raising events which helped to pay for airfare and travel expenses. Councilmember Bencardino stated that it was good to see Seward represented in Washington D. C. by such fine young citizens. He thanked Bob Valdatta and Debbie Bond for their contribution to the program. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -14 providing for self registration of campers in municipal campgrounds Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Mayor Crane noted that, in accordance with new Council Rules of Procedure, the city manager would provide a summary of each item scheduled for public hearing prior to opening the hearing to the public. Deputy City Manager Yanez stated that this ordinance formalized the self - registration payment system for city campgrounds. He stated that this gave the city the authority to enforce self registration of campers and to issue a violation if necessary. He noted that notices would be displayed on bulletin boards throughout the parks and campgrounds. W City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 94 No one appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -14 O'Brien asked if this provision would replace collection efforts by summer workers. Parks and Recreation Director Sturdy explained that, ultimately, this should diminish door to door collection efforts. VOTE ON MOTION Motion Passed Unanimously Ordinance No. 94 -15 providing for a city business license Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Yanez stated that the next three ordinances before the council provided for a city business license, an assessment to owners of the lodging industry and a parking assessment to harbor businesses in lieu of head and bed taxes. He noted that business owners had approached the city requesting the implementation of a city business license. LYNN STANTON, Bear Creek Mobile Home Park, asked why the ordinance contained so many requirements prior to issuance. She noted that she was not opposed to the business license but she was opposed to the requirements outlined in Step C of the ordinance. MARILYN REYNOLDS, 225 Sixth Avenue, spoke in support of the ordinance. She stated that this was a good way to track businesses and ensure that sales tax was collected. RON LONG, Camelot Subdivision, small business owner, spoke in support of the ordinance. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -15 Krasnansky voiced his support of the ordinance. Anderson noted that she supported the ordinance but she was disappointed with the way it was written. MOTION (Anderson/Krasnansky) Amend § 8.30.010, by inserting non-profit organization after "corporation ". 95 City of Seward, Alaska March 14, 1994 - March 15, 1994 City Council Minutes Volume 30, Page 95 Anderson stated that non -profit organizations that were in business should obtain a business license. VOTE ON AMENDMENT Motion Passed MOTION (Anderson/Krasnansky) YES: Anderson, Bencardino, Darling, O'Brien, Sieminski NO: Crane, Krasnansky Amend § 8.30.015 B., by deleting lan- guage and inserting: 'A separate business license is required for each type of busi- ness. Business locations must be listed on the business license with a copy of said license to be displayed at each location. " Anderson stated that this amendment would require businesses to post copies of the license at each location of the business. O'Brien stated that he was concerned about different interpretations of each type of business. Krasnansky spoke in opposition to the amendment. VOTE ON AMENDMENT Motion Failed MOTION (Anderson / Krasnansky) YES: Anderson, Bencardino, Sieminski NO: Crane, Darling, Krasnansky, O'Brien Amend § 8.30.020 A.3 by deleting lan- guage and inserting: "a non profit organi- zation engaged in casual and isolated sales by a seller who does not regularly engage in the business of selling goods or a service and the sales do not occur for more than 14 days in a calendar year. " Anderson stated that this amendment would cover those non - profit businesses engaged for a short period of time such as vendors selling goods on the 4th of July weekend. VOTE ON AMENDMENT Motion Passed YES: Anderson, Bencardino, Darling, O'Brien, Sieminski we City of Seward, Alaska March 14, 1994 - March 15, 1994 City Council Minutes Volume 30, Page 96 MOTION (Anderson/Krasnansky) NO: Crane, Krasnansky Amend § 8.30.025 A. by adding to the end of the section: "Not withstanding the preceding sentence, any business that will not be in operation in the city for more than 30 consecutive days shall obtain a business license prior to commencing oper- ation. " Anderson explained that this would require those vendors coming to town for a short period of time to obtain a license prior to the commencement of business. Darling spoke in support of a mandatory license to be acquired by transient operators prior to conducting business. O'Brien stated that this ordinance was cumbersome. He clarified that the amendment was targeted at businesses doing short term business in Seward. VOTE ON AMENDMENT Motion Passed YES: Anderson, Bencardino, O'Brien, Sieminski NO: Crane, Darling, Krasnansky MOTION (Anderson/Krasnansky) Amend § 8.30.025 C.1. to read as follows: C.1. an annual non - refundable fee. a. the annual fee shall be $25.00 per license Krasnansky voiced support for the amendment since the attorney's opinion was that fees and taxes should be set by ordinance. Yanez explained that this would create a system of regulation and a method of additional revenue. He stated that the rate could be modified annually during the budget process. VOTE ON AMENDMENT Motion Passed MOTION (Anderson / Krasnansky) Unanimously Amend § 8.30.025 E.5. to read as follows: 5. all locations of the business. 97 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 97 Darling asked the attorney for clarification regarding landlords. Giles stated that the land owner would need one business license and be required to display copies at each location of the business. Krasnansky voiced concern about businesses utilizing vehicles, such as ambulances, being required to post a business license in each vehicle. He noted that this issue was becoming complicated. O'Brien agreed. Yanez replied that the administration presented a request to the attorney's office to draft the ordinance. He noted that it was important to cover every issue that might arise. He agreed that this was a comprehensive ordinance. Giles added that, if a provision for revocation of the license was included, there was a need to provide an appeal process to protect the city from future litigation. She stated that this was also intended as a protection to the business owner. VOTE ON AMENDMENT Motion Failed MOTION (Anderson/Krasnansky) YES: Anderson, Bencardino, Sieminski NO: Crane, Darling, Krasnansky, O'Brien Amend § 8.30.035 as follows: Section A., add language after "finance department ", with the approval of the city manager; Section B, line 8, add language after "finance department ", with the approval of the city manager; Section B, line 9, substi- tute council for "manager "; Section C, line 1, add language after "finance depart- ment", with the approval of the city man- ager, Section C, lines 10 and 12, substi- tute city manager for "finance depart- ment"; line 12, substitute its for "his "; line 13, substitute council for "manager ". Anderson explained that the amendments would give the city manager, instead of the finance department, the authority to suspend or revoke a license. She stated that the Council would act as the final appeal body. Krasnansky asked for an opinion from the attorney. Giles stated that the original language did not intentionally cut the Council out of the loop. She noted that the ordinance was designed to give the city manager final authority and responsibility. She added that the MV City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 98 ordinance was structured to provide an appeal process that would bring an end to the final decision in a timely manner. Crane stated that it was the Council's job to set policy and he felt that this was an administrative function, not legislative. He noted that he would not support the amendment. Anderson disagreed and stated that the Council should be the final body to hear each issue so that the city might avoid possible litigation. O'Brien spoke in support stating that the Council was the final board of appeals on decisions. VOTE ON AMENDMENT Motion Passed YES: Anderson, Bencardino, O'Brien, Sieminski NO: Crane, Darling, Krasnansky MOTION (Anderson /O'Brien) Motion Passed Amend § 8.30.040 by substituting city manager for "finance department" and council for "city manager ". Unanimously Anderson asked for an interpretation of Sections 8.30.055 Disclosure of licensed business, and 8.30.060 Regulations. Giles explained that the disclosure was a notice to businesses that a list containing the name of the owner and the name and address of the business would be made available to the public but no financial information would be disclosed. Giles explained that the section on regulations gave the city manager the authority to adopt regulations without revising the intent of the ordinance. In answer to a question from O'Brien, Yanez stated that the manager would have the authority to adopt or change regulations related to the every day operation of implementing city business licensing. He added that, according to the Charter and City Code, the manager had no authority to change the nature of the guidelines set forth in the ordinance. O'Brien stated that he was opposed to creating more work for the bureaucracy. MOTION (O'Brien/Krasnansky) Amend § 8.30.040 E. by deleting "60" and inserting 30 (days). Motion Passed Unanimously. wM City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 volume 30, Page 99 Bencardino stated that the entire ordinance needed to be simplified. He added that it made no sense to create so much work for the administration. Krasnansky agreed. VOTE ON ORDINANCE NO. 94 -15 AS AMENDED. Motion Failed YES: Anderson NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski RECESS: The meeting was recessed at 9:15 p.m. and reconvened at 9:27 p.m. Ordinance No. 94-16 establishing a visitor impact assessment fee for lodging establishments Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Yanez explained that the city planned to establish an annual fee of $25.00 per room for hotel and bed and breakfast businesses. JOLENE KING, 900 Third Avenue, Harborview Bed and Breakfast, thanked everyone for the opportunity to speak on this issue. She read a prepared statement in support of the ordinance and the visitor industry. RONALD HEISTER, 235 Second Avenue, Village Vicar's Bed and Breakfast, stated that tourism was the fastest growing industry in Seward. He noted that this was indicated by an examination of the sales tax tables from 1982 to 1993 which indicated a rise in taxable sales from 9.5 million to over 48 million. He asked the Council to support repeal of the bed tax and enactment of the lodging assessment. DEANE NELSON, 308 Adams Street, Van Gilder Hotel, thanked the Council for providing an assessment ordinance. She stated that she favored an assessment rather than a bed tax. She asked the Council to repeal the bed tax. DON SUTHERLAND, 225 Sixth Avenue, member of the Seward Lodging Task Force, thanked the Council in advance for passage of the assessment and repeal of the bed tax. He stated that tourism was a positive impact, clean industry providing jobs for local citizens. ARLENE WILEY, 550 Railway, Seward Waterfront Bed and Breakfast, spoke in support of the visitor industry as a main economic and expanding base providing sales tax revenue. She stated that she supported repeal of the bed tax. 100 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 3 0, Page 100 CHARLOTTE FREEMAN - JONES, Third & Jefferson, Seward's Downtown Lodging, gave a presentation on advertising funds spent by the lodging businesses to entice visitors to Seward. She noted that a number of visitor businesses advertised in many tourism brochures that were distributed throughout the country. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94 -16 In answer to a question from O'Brien, Deputy Clerk Jones stated that an ordinance containing the same legislation as Ordinance No. 93 -30 could not be introduced by the Council for a period of two years following the filing of a referendum petition on the ordinance or repeal of the bed tax by the Council. Sieminski asked if the bed tax and the assessment could both be implemented. Jones replied that the Council could implement both the tax and the assessment. She added that repeal of the bed tax would not have an effect on the assessment ordinance. MOTION (O'Brien/Krasnansky) Amend § 5.40.010 C. by deleting the reference to the city business license and delete § 5.40.020 B. O'Brien stated that the intent was to delete any reference to the city business license since there was no provision to require a city business license. He noted that, if the city enacted an ordinance to require a business license at a later date, this section could be amended at that time. Krasnansky favored postponing the ordinance until after the business license issue was settled. Anderson agreed and stated that the purpose of creating a business license was to establish statistics on businesses operating in the city and to ensure that all businesses were collecting sales tax. She noted that both assessment ordinances were related to the business license ordinance. O'Brien questioned enacting an ordinance containing a provision that was not provided by the city. Giles recommended that deletion of the reference to the business license would take away from the original intent of determining statistics on businesses. She noted that the business license ordinance and the assessment ordinances were meant to be presented as a package. She recommended that the assessment ordinances would be unenforceable without references to the business license. Motion Failed YES: Bencardino, Darling, O'Brien NO: Anderson, Crane, Krasnansky, Sieminski 101 City of Seward, Alaska City Council Minutes March 1 4, 1994 - March 15, 1994 Volume 30, Page 101 Anderson asked if the Council was ready to set an assessment fee. Crane stated that the proposal was originally presented as a package deal and it was now incomplete with so many deletions and amendments. He noted that he could not support the assessments until everything was in place. He added that it was a good idea to institute a business license but too many complications existed when three ordinances were tied in together. MOTION (Krasnansky /Sieminski) Motion Passed Postpone action on Ordinance No. 94 -16 until March 29, 1994. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski Ordinance No. 94-17 establishing a parking assessment fee for harbor area businesses Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Yanez stated that this ordinance established a parking assessment fee for harbor businesses and marine charter businesses. He noted that parking code requirements would be used to assess each business $100 for each parking space not provided by the business. LYNN STANTON, Bear Lake, asked if the assessment would be implemented according to office space or the number of passengers on a vessel. DEAN KASISCHKE, Camelot Subdivision, spoke in support of the ordinance. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94-17 Anderson stated that the charter boats created traffic on the harbor float system as well as in the parking lots. She noted that the assessment should be based on the number of seats rather than the parking code. She also stated that the parking assessment should be instituted city -wide rather than just in the harbor. She noted that she could not support the ordinance as written. Sieminski stated that he could not support this ordinance. He noted that the assessment - fee should be based on fair market value of the property. He added that the $100 figure was only a suggestion from the business owners and not a true indication of the value of the property. 11W City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 102 Yanez clarified that the passenger transit fee (head tax) was based on the seating capacity of each marine vessel. He noted that, in lieu of the head tax, this ordinance would provide an assessment to marine charter businesses based on parking requirements. Darling stated that this ordinance should be postponed until the business license ordinance was resolved. MOTION (Darling / Krasnansky) Postpone action on Ordinance No. 94 -17 until March 29, 1994. Krasnansky asked the administration to determine the fair market value of a parking space in the small boat harbor. Yanez replied that a 10' x 20' space had an estimated value of $340.00. Kerry Martin explained that a number of factors were used in determining the fair market value and the noted figure represented an average. VOTE ON MOTION Motion Passed YES: Anderson, Bencardino, Crane, Darling, Krasnansky NO: O'Brien, Sieminski ORDINANCES FOR INTRODUCTION Ordinance No. 94-18 creating Seward City Code § 11.15.130, paid parking. MOTION (Krasnansky /Anderson) Introduce Ordinance No. 94 -18 and set the ordinance for public hearing on March 29, 1994. O'Brien stated that he had moved this to the regular meeting agenda because parking was an important issue and he felt the public should be apprised of the introduction of the ordinance. Krasnansky stated that the Council had earlier agreed to introduce ordinances on the consent agenda. He further noted that the agenda was published and the consent agenda was read into the record at each meeting. O'Brien replied that public perception was important and he felt that ordinances should be considered before the public. VOTE ON MOTION TO INTRODUCE Motion Passed YES: Anderson, Crane, Darling, Kras- nansky, Sieminski NO: Bencardino, O'Brien 103 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 103 RESOLUTIONS Resolution No. 94 -032 supporting Seward as the ideal location to develop a mariculture technical center and shellfish hatchery. Anderson stated that her fishing business would be financially impacted if a shellfish hatchery and mariculture center were developed in Seward and declared a conflict of interest. Mayor Crane ruled that a conflict of interest existed. MOTION (Krasnansky /Sieminski) Motion Passed Approve Resolution No. 94 -032 YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski ABSTAIN: Anderson Resolution No. 94 -033 authorizing the City Manager to increase the contract amount of the Metco, Inc., agreement for snow plowing and sanding services. MOTION (Krasnansky /Anderson) Approve Resolution No. 94 -033 O'Brien asked why this change order was necessary with so little snow this year. Yanez replied that snow plowing was estimated and budgeted low this year. Motion Passed YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sienu*mki Resolution No. 94 -037 finding that the amendment to lease as approved by Resolution No. 93 -159 is critical to the continuation of Seward Ship's Chandlery at the Seward Marine Industrial Center. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -037 Anderson asked how the third party determined the feasibility of the building project and how much it cost to perform the study. Yanez provided some background information. He stated that Pruitt wanted relief from building an expensive firewall in his building because of the financial impact to his business. - He noted that the Council agreed to lease additional land to Pruitt if a third party concluded that constructing a firewall was not economically feasible. He added that Kumin and Associates had been retained to determine the feasibility of the project and it was determined that construction i [111 1 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 3 0, P age 104 of a firewall would increase construction costs, delay financing and possibly make the entire project financially unfeasible. Anderson suggested postponing this resolution until the next meeting so that the administration could provide more information about the criteria used to arrive at the fmal recommendation and the cost of the study. MOTION (Anderson/Sieminski) Postpone action on Resolution No. 94 -037 until March 29, 1994. Anderson clarified that council had approved the initial lease amendment in November with the stipulation that a third party review would be conducted. O'Brien stated that the lease amendment was apF by a third party. He supported action on the ordinance. VOTE ON MOTION TO POSTPONE Motion Failed YES: NO: roved and the finding had been made Anderson, Sieminski Bencardino, Crane, Darling, Kras- nansky, O'Brien Anderson noted that the existing facts were incomplete and she requested more information. Giles explained that the resolution appeared to be in harmony with the arbitrator's decision. She noted that the lessee had approached the city to lease property under the identical terms of the arbitrator's settlement agreement. She stated that the independent finding determined that the additional leased land was critical to the continued operation of the business. She explained that the passage of Resolution No. 94 -037 would implement Resolution No. 93- 059 under the terms indicated by the arbitrator. VOTE ON MOTION TO APPROVE Motion Passed YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski NO: Anderson UNFINISHED BUSINESS Ordinance No. 93 -29, providing for a passenger transit fee for marine charter vessels and businesses. Crane noted that this item had been postponed from meeting to meeting since December 13, 1993, and there was a motion on the floor for enactment, 105 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 105 MOTION (Anderson/Sieminski) Motion Passed MOTION (Anderson/O'Brien) Amend § 5.45.020 A. by deleting "one dollar" and inserting "twenty-five cents ". YES: Anderson, Crane, O'Brien, Sie- minski NO: Bencardino, Darling, Krasnansky Amend § 5.45.020 B. by adding Section 4 to read as follows: Vessels with ten or less seats are exempt from collecting the fee. Krasnansky asked about the rationale for this amendment. Anderson stated that smaller charter vessels were different from the large day cruisers and the smaller operators should not be subject to collecting a fee but should be charged a seat assessment. Crane noted that this was discriminatory and he would not support the amendment. Motion Failed YES: Anderson NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski VOTE ON MOTION TO ENACT ORDINANCE NO. 93 -29 Motion Failed YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien Ordinance No. 94 -10, amending Seward City Code § 15.10.220, development requirements. Crane noted that this item had been postponed from the last meeting and there was a motion on the floor for enactment. MOTION (O'Brien/Bencardino) VOTE ON MOTION Remand Ordinance No. 94-10 to the Plan- ning and Zoning Commission for further review and recommendation. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski 106 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 106 NOTE Crane noted that it was now 11:00 p.m. and, according to City Code, the Council must move directly into CITIZENS' DISCUSSION and then to ADJOURNMENT. CITIZENS' DISCUSSION ELAINE NELSON, 209 Ravina, voiced her disappointment that the City Council could not put personal feelings aside and pass ordinances or resolutions which must be complied with by the public. She stated that people complied with ordinances enacted by previous City Councils but the long saga that had gone on for six months had become an issue of hilarity and sadness. She added that the Council could not seem to deal with important issues that were in the best interest of the community. JERRY KING, 900 Third Avenue, speaking on behalf of the lodging industry, suggested that an easy way to replace the business license would be to require an annual fire inspection safety certificate. He also took exception to the remarks made by councihnembers about special interest groups. MIKE WILEY, 550 Railway, was disappointed and offended that an ordinance introducing paid parking would be passed on the consent agenda. He thanked Councilmember O'Brien for moving it to the regular meeting agenda. He noted that the community was making an effort to work towards a partnership and ready itself for increased tourism but there were many issues to overcome. JOLENE KING, 900 Third Avenue, stated that most residents started out as visitors to Alaska. She noted that too many people seemed to forget that people visit Alaska for the beauty of the state. She added that she could not understand how so many residents could become money - grabbers instead of friendly people who were willing to share their state with visitors. "I M11,1405 00 MOTION (Krasnansky /Bencardino) Motion Passed The meeting was adjourned at 11:10 p.m. until Tuesday, March 15th, at 7:30 p.m. Patricia J. Jones, CMC'' Deputy City Clerk" g (City Seal) w. .. -zr OF Yt AR4 i q is n� Adjourn to Tuesday at 7:30 p.m. Without Objection &, V� C, Dave W. Crane Mayor 107 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 107 CALL TO ORDER The March 14, 1994, adjourned meeting of the Seward City Council was called to order at 7:30 p.m. on Tuesday, March 15, 1994, by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino Hugh Darling Patrick O'Brien Bruce Sieminski comprising a quorum of the Council; and Michael Yanez, Deputy City Manager Patricia Jones, Deputy City Clerk Absent was: James Krasnansky (excused) NEW BUSINESS Lease proposal as submitted by Ray and Leslie Simutis Yanez stated that Ray and Leslie Simutis had presented a letter proposing to lease property in the Small Boat Harbor. They planned to build a boardwalk over the tidelands east of the existing boardwalk between The Landing and Ray's Waterfront Restaurant and to construct a loading platform dock for use by marine vessels hauling day cruise passengers. MOTION (O'Brien/Sieminski) Authorize the administration to proceed with lease negotiations with Ray and Leslie Simutis for lease of property in the Small Boat Harbor. O'Brien stated that he would like more detail to review before considering this lease proposal. He noted that the public was concerned about obstructing the view of the harbor. I= City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 108 Darling stated that parking problems needed to be resolved prior to further development in the harbor. Bencardino agreed, noting that the Council had rejected earlier lease proposals. Anderson stated that she would also like to see more information on the proposed lease but she was opposed to further development in the area at this time. She added that the tidelands should remain open. She also noted that the current boardwalk leases were up for renewal soon and the buildings were not built in accordance with the code. Sieminski stated that the Council needed to make some decisions on the parking issue because some councihnembers felt that parking was a problem and others did not. He felt that the city should lease out any available property. Crane disagreed with Sieminski's comments. He stated that the Council had agreed that parking was a problem. He noted that proper planning was important and any lease requests should be put on hold pending update of the harbor management plan. Yanez informed the Council that the harbor management plan was scheduled for review by the Port & Commerce Advisory Board on March 16th and the Planning and Zoning Commission on April 6th. O'Brien asked for clarification on the previous lease proposals. Yanez stated that proposals were presented by three separate parties to lease tidelands east of the boardwalk located from The Landing south to the boat launch ramp. O'Brien clarified that the current proposal was the first for the property between The Landing and Ray's Waterfront Restaurant. He stated that development of the tidelands would create a larger tax base and enhanced facilities for tourism. He stated that he would like identification of any problems associated with any tidelands lease proposals. He added that the proposal to develop a loading dock for day cruise passengers was an excellent idea and would reduce traffic on the existing float system. He saw this as an advantage from a liability and maintenance standpoint. Bencardino stated that requests for proposals to lease harbor property should be advertised prior to acceptance of any unsolicited proposals and after update of the harbor management plan. VOTE ON MOTION Motion Failed YES: Sieminski NO: Anderson, Bencardino, Crane, Darling, O'Brien, Finance Department Policies and Procedures 109 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 109 Yanez stated that information was requested by Councilmember Sieminski regarding the missing deposit which resulted in a memorandum to the Council from the city manager. He noted that the memo outlined an update of Finance Department policies and procedures. He added that new procedures were implemented and others were under review. The City Council conducted a lengthy discussion about the Finance Department. Crane recommended that each councilmember sit down with the city manager to express individual concerns in the proper manner. Sieminski stated that the Council had a right to ask about policy. He asked for a work session on this issue. Anderson suggested that, upon receipt of the annual audit, it would be a good idea to involve the auditors in reviewing procedures. She agreed that a work session was in order to review the audit and financial procedures. O'Brien supported a work session but felt that the audit and finance department issues needed to be discussed separately. Crane scheduled a work session to receive a presentation by the auditors beginning at 1:00 p.m. on Tuesday, March 29, 1994. He stated that the presentation would be followed by a work session to discuss issues related to the finance department. The Council requested the presence of the attorney, finance director and city manager. CITY MANAGER REPORTS Community Finance Department comparisons Yanez reviewed the memorandum contained in the agenda packet. Superior court in Seward Yanez noted the memorandum included in the agenda packet. Yanez updated the Council on the Tug Jim and noted that the vessel was resting at the bottom of Resurrection Bay. He stated that the community survey analysis was completed and distributed to the Council, Chamber of Commerce and the news media. He added that public copies were available at the clerk's office. He reported that the recent basketball tournaments brought over 500 visitors to Seward. He asked for clarification on how to proceed with a new ordinance to implement a city business license. COUNCIL DISCUSSION 110 City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 110 SIEIVIINSKI stated that he would like to introduce a business license ordinance containing Anderson's amendments. He also requested a draft application form. He asked if the Finance Department comparison resulted in the department being equal to other communities. Yanez replied that two employees were devoted to utility billing and collection. He also stated that centralized purchasing, health claim processing, risk management and other items were not handled in other communities. He added that the judgment of equality rested in the mind of the evaluator. SIENUNSKI stated that he was opposed to a recommended cut of the youth center in the FY 1995 Parks and Recreation budget. ANDERSON referred to a memorandum from the city clerk to the city manager regarding attorney bills. She agreed that there should be no charge for minimal attorney response to the Council and appointed officials. She asked if the attorney had been contacted about this. Yanez replied that the manager had not yet seen the bill and there was no comment at this time. She noted that she would like to discuss flood control issues in the future. She thanked Pat Rowe for her written comments on the upcoming budget. She suggested that the Council conduct scheduled work sessions prior to regular meetings to avoid extensive debate at the meetings. She suggested that the mayor review the agenda with the clerk prior to publication and determine if a work session would be beneficial. She noted that there was a general erosion of confidence in the government by the public and the Council should work together to resolve issues. O'BRIEN recommended that Council direct the city clerk to debate charges with the city attorney. CRANE stated that the city manager would take care of the bill after his review. O'BRIEN stated that it was appropriate for the city manager to advise and seek approval from the Council prior to travelling out of state. He noted that, upon review of the Finance Department comparison memo, he was surprised to see that the custodian supervised an assis- tant. Yanez stated that the on -call custodian worked under the regular custodian. DARLING agreed that a work session prior to meetings would be beneficial. He suggested the introduction of a simplified business license ordinance. BENCARDINO stated that it was unnecessary for the building maintenance custodians to be under the direction of the Finance Department. He reported that an effort was underway to enhance the return of silver salmon to Resurrection Bay. He noted that this had been neglected in the past. He stated that the prison had expressed an interest in setting up a hatchery and the city should support the project. He agreed with the idea to conduct work sessions prior to meetings. CRANE reminded the Council that evaluations of appointed officers were due this week. He stated that he planned to schedule a time to review the evaluations with the clerk and manager during the day rather than in executive session after a meeting. He noted that the attorney evaluation would be scheduled for after a meeting. - III City of Seward, Alaska City Council Minutes March 14, 1994 - March 15, 1994 Volume 30, Page 111 CRANE stated that, when councilmembers had substantial input or amendments to bring forth, he hoped the information would be distributed to the Council sooner than at the meetings He noted that a work session prior to each meeting might resolve the problem. He also expressed concern about the direction Council had taken lately in not being able to resolve issues together. He stated that it was time to work with the administration as a team. The Council directed the administration to prepare a simpler business license ordinance to be introduced at the next meeting. CRANE invited the public to meet with him at the Resurrect Art and Coffee House on March 21st and 28th from noon to 2:00 p.m. and from 5:00 to 7:00 p.m. to discuss the upcoming budget process. Crane opened the floor for citizens' comments. There was no objection from the Council. MARK CLEMENS, Meridian Park, voiced his concern that there were still unresolved issues relating to the FY 1994 budget. Clemens asked if the assessment would be effective retroactive to the prior fiscal year. CRANE stated that this concern would be addressed at the next meeting. ADJOURNMENT The meeting was adjourned at 9:10 p.m. Patricia Jones, CMC Dave W. Crane Deputy City Clerk Mayor (City Se k'1 µry �y� > OF �+ 112 City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 112 CALL TO ORDER The March 29, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski A. Agenda items not scheduled for public hearing ELAINE NELSON, 209 Ravina, Director of the Chamber of Commerce, asked several technical questions regarding the business license ordinance and suggested some changes to assure consistency in the issuance of licenses. She also suggested waiving the fee for a license for nonprofit groups. JERRY KING, 900 Third Avenue, stated that the bed tax was premised on the assumption that visitors had a negative impact on the city of Seward, and he claimed that this had not been established as fact by the city. King stated that fees and taxes would kill tourism, and he urged the Council to repeal the bed tax. ARLENE WILEY, 550 Railway, also urged the Council to repeal the bed tax. B. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA City of Seward, Alaska March 29, 1994 City Council Minutes Volume 30, Page 113 MOTION (Krasnansky /Bencardino) MOTION (Sieminski/Anderson) Motion failed. Approve the Agenda and Consent Agenda as presented. Delete the introduction of Ordinance No. 94 -22 from the agenda. YES: Anderson, Sieminski, Krasnansky NO: Bencardino, Crane, Darling, O'Brien Sieminski requested that Ordinance No. 94 -22 be moved to the regular meeting agenda. Anderson requested that Ordinance No. 94-20 and Resolution No. 94-038 be moved to the regular meeting agenda. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed Unanimously The Clerk read the following approved consent agenda items: The March 14 -15, 1994, minutes were approved as written; Ordinance No. 94 -21 revising the city personnel code to conform to standards established in the state and federal Family and Medical Leave Acts, was introduced and set for public hearing on April 11, 1994; Resolution No. 94 -039 correcting property descriptions associated with Gateway Subdivision offshe improvement districts established by Resolution No. 86 -22 -S, No. 86 -23 -S, No. 86 -24 -S, and No. 86 -25 -S, was approved; Resolution No. 94 -040 authorizing the purchase of an anesthesia machine and appropriating funds, was approved; Resolution No. 94 -041 amending city lease procedures, was approved; Requests for liquor license renewals as filed by Yukon Liquor Store, Niko's Nightclub, Ray's Waterfront Restaurant, and Marina's Restaurant were approved and the Clerk was instructed to issue a letter of non - objection to the Alcohol Beverage Control Board; Community Library activities report was noted for information; Informational memorandum regarding the availability of economic diversity grant monies from the U. S. Department of Agriculture and the U. S. Forest Service was noted; and City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 114 Memorandum of appreciation for Parks and Recreation staff work associated with various city tournaments was noted. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present and no report was given. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94-18 creating Seward City Code Section 11.15.130, paid parking. 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94-18 Motion Passed YES: Anderson, Crane, Darling, Kras- nansky, Sieminski NO: Bencardino, O'Brien Ordinance No. 94-19 correcting property descriptions associated with Gateway Subdivision offsite improvement districts established by Ordinances 558, 559, 560 and 561. 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. MOTION (Anderson/Bencardino) Motion Passed. Enact Ordinance No. 94 -19 Unanimously PRESENTATIONS WITH PRIOR NOTICE ONLY Larry Kincheloe - Spring Creek Correctional Center Kincheloe briefly reviewed statistical information regarding numbers of prisoners, prison employees and the number of employees residing in Seward or the surrounding area. He also addressed concerns which had arisen as a result of the recent escape and outlined the steps the Department of Corrections was taking to lessen the possibility that this would occur again. Kincheloe reviewed the upcoming — 115 City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 115 corrections budget and noted that, if approved at the proposed level of funding, staff and programs would be cut. Mayor Crane suggested the creation of a citizens advisory board and noted that Commissioner Prewitt had indicated his willingness to visit the community to help initiate the board. Krasnansky stated that he was impressed with the response of the troopers during the recent escape. In response to a question from Anderson, Kincheloe stated that there were no plans to expand the prison in the foreseeable future. Jim Pruitt - Port and Commerce Advisory Board quarterly report Pruitt gave an in depth overview of the Board's actions since July 1994. He also noted that he and the Mayor had addressed attendance problems with the members of the Board. RECESS: The meeting recessed at 8:48 p.m. and reconvened at 9:00 p.m. ORDINANCES FOR INTRODUCTION Ordinance No. 94 -20 providing for a city business license. MOTION (Sieminski/Anderson) Introduce Ordinance No. 94 -20 and set for public hearing on April 11, 1994. In response to a question from Anderson, Deputy City Manager Yanez explained the differences between this ordinance and the one defeated at the last meeting. Krasnansky noted that there were some private nonprofits such as the Seward Volunteer Ambulance Corps that engaged in not for profit business and should be excluded from this ordinance. Yanez concurred and stated that SVAC and many others would be excluded as the ordinance was currently written. Anderson asked about the exclusion for fishing. Yanez stated that this provision would exclude commercial fishermen; however, fishing charters and day cruisers would have to apply for and obtain a license. VOTE ON MOTION Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski NO: O'Brien 116 City of Seward, Alaska March 29, 1994 City Council Minutes Volume 30, Page 116 Ordinance No. 94-22 repealing the bed tax. MOTION (Crane / Bencardino) Introduce Ordinance No. 94-22 and set for public hearing on April 11, 1994. Anderson stated that she was opposed to repealing the bed tax and stated that she would like to see this issue settled by the voters. Krasnansky asked if a bed tax could be initiated by the voters if this ordinance was repealed by the Council. Klinkner promised to have an answer by April 11th. VOTE ON MOTION Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien RESOLUTIONS NO: Anderson, Sieminski Resolution No. 94 -038 approving a sublease of Boardwalk Lease Site No. 2 from Linda Worabel to Phillips Cruises for operation of a day cruise ticket office. MOTION (Anderson/Bencardino) Motion Passed. Approve Resolution No. 94 -038 YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski NO: Anderson UNFINISHED BUSINESS Ordinance No. 94 -16 establishing a visitor impact assessment fee for lodging establishments. O'Brien objected to passing this ordinance without prior passage of the business license ordinance since the business license was to be used as a means of assessing the lodging industry. MOTION (Krasnansky /Darling) Postpone action on the ordinance until April 11, 1994. Motion Passed. YES: Anderson, Darling, Krasnansky, O'Brien 117 City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 117 NO: Bencardino, Crane, Sieminski Ordinance No. 94 -17 establishing a parking assessment fee for harbor area businesses. MOTION (Darling /Krasnansky) Motion Passed. NEW BUSINESS Postpone action on the ordinance until April 11, 1994.. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Siemimki Collective b argaining - Placed on aeenda at the reauest of Councihnember Krasnansky Krasnansky recommended that the Council amend Title 3 (Personnel Code) to reflect a declaration of policy, legislative findings, rights of employees and other pertinent amendments to provide for specific steps in initiating collective bargaining by all non- confidential, non - supervisory, non - exempt city employees. It was the consensus of the Council not to move forward with Krasnansky's recommendations at this time. CITY MANAGER REPORTS JONES noted that the March edition of the Port and Harbor Quarterly had been distributed. He reported that the Alaska Railroad had assured the city and the cruise ship industry that its plans to dredge the railroad dock in the coming year would be accomplished in a manner that would not interfere with cruise ship docldngs. JONES noted that Ron Larson has begun circulating bills to reappropriate funds for the Sea Life Center, city street lights, etc., because some individuals in Seward had expressed an interest in the Midrex development. He warned the Council that this type of hard ball politics could be expected when individuals lobbied to take projects away from other areas of the state. JONES noted that he had responded to a letter requesting that the city become a mail drop for the RV crowd by indicating that this service could be better provided by the private sector. JONES noted that Seward Partnership would be meeting on April 5th at the high school auditorium. JONES asked Council to schedule a joint work session with the Port Board. 118 City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 118 JONES, responding to criticism made at the last meeting regarding his absence, stated that he had attempted to contact each councilmember but had failed to reach O'Brien prior to his departure to attend a port marketing seminar. He stated that he was under no obligation to notify Councilmembers or receive their permission prior to travelling on behalf of the city. JONES also responded to O'Brien's comments regarding the Clerk's memorandum questioning certain charges on the most recent attorney bill. He noted that the established procedure for review of the bills was that they were to be first reviewed by the finance department and then the manager prior to being brought to Council. He stated that the Clerk had failed to follow procedures in copying the Council with this memorandum. COUNCIL DISCUSSION ANDERSON stated that she had found out that Jones was to be away only by accident, and she suggested that the manager submit a memorandum to the Council prior to any absence. SEE IINSKI stated that the Clerk was right to copy the Council with her memorandum regarding the attorney bills. O'BRIEN noted a letter addressed to the Harbormaster from Jerome George regarding a possible solution to the shortage of boat slips (free haul out and storage for slip owners) and suggested that the Harbormaster consider this approach. O'Brien stated that he took exception to the manner in which the Manager had defended his out of state travel and suggested that Council consider amending his contract to assure that all members were notified of the Manager's travel schedule. KRASNANSKY stated that the Council must understand that policy making and administration were two different things and he objected to the criticism leveled against the city manager regarding his travel schedule. CRANE stated that he, too, was concerned about the critical comments from the Council. He suggested that the Council deal with this issue during the evaluation. Crane stated that the attorney's evaluation would be reviewed following the Council meeting. He scheduled manager and clerk evaluations beginning at 7:30 p.m. on Wednesday, March 30th. Crane scheduled a joint work session with the Port Board to begin at 7:00 p.m. on April 12, 1994, and instructed the Clerk to invite the Planning Commission to attend and participate. JONES noted that the city's lobbyist had suggested that he and the mayor travel to Juneau on April 6th to address ferry routes and schedules and the repair of ferry vessels. CITIZENS' DISCUSSION RON LONG, Camelot Subdivision, objected to the Council's public criticism of the city manager. 119 City of Seward, Alaska City Council Minutes March 29, 1994 Volume 30, Page 119 ELAINE NELSON, 209 Ravina, asked if the audit report would be made available to the public. JOHN BURCKHARDT, 1800 Niagara, stated that the business license would obviously not raise significant revenues, and he implored the Council and the lodging industry to take another look at this issue. He stated that taxes did not chase people away and added that the proposed assessments made no sense. LEE POLESKE, Seward Trading Apartment No. 2, asked for clarification of the business license requirement in regards to the museum. Yanez stated that the museum would be required to obtain a business license. ARLENE WILEY, 550 Railway, thanked the Council for helping her during the past few months. She stated that she had appreciated the opportunity to discuss things with the mayor, and she thanked the Clerk for her help and professionalism during the petition process. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS ANDERSON provided the Council with a schedule of upcoming hospital board meetings and work sessions. She took exception to Elaine Nelson's remarks at the last Council meeting and suggested that Ms. Nelson shifted her position on any given issue depending on whether she was representing the Chamber or the Visitors Association. She stated that it was often difficult for the Council to reach a consensus on controversial issues, but each member of Council cared deeply about the community and was voting in what he or she thought was in the best interest of the community. Anderson stated that she was disappointed that Nelson felt as she did. ANDERSON noted that she would like to be supportive of the administration, but said she would not sacrifice her responsibilities to do that. ADJOURNMENT The meeting was adjourned at 10:30 p.m., and, following a short recess, the Council reconvened to review the city attorney's performance evaluation with him. /J gL eda' S . N�Yurphy, CM.V City Clerk k } (City Seal) �� ��` ` ;' 7 H n f ° s o , Dave W. Crane Mayor 120 City of Seward, Alaska April 11, 1994 City Council Minutes Volume 30, Page 120 CALL TO ORDER The April 11, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski A. Agenda items not scheduled for public hearing DEAN LUST, Third and North Harbor Road, noted that the lease action before the Council (Resolution No. 94 -044 was a housekeeping measure to comply with the terms of his lease. He stated that his business would continue to operate as it had in the past. B. Items other than those appearing on the agenda BRAD SNOWDEN, 525 Sixth Avenue, invited the Council to meet gubernatorial candidate Jim Campbell at a reception in his honor on Tuesday evening. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Anderson) Approve the Agenda and Consent Agenda as presented. Anderson asked to move Resolution No. 94 -044 New Business Item B (Charter Review) and the city manager's trip report to the regular meeting agenda. 121 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 121 Jones requested an executive session to discuss strategy for the city's negotiations regarding the lease of the Small Boat Harbor from the state. MOTION (Krasnansky /Bencardino) Motion Passed. To meet in an executive session immedi- ately following the close of regular busi- ness to discuss negotiating strategy with regards to the city's lease of the Small Boat Harbor from the state of Alaska. Unanimously VOTE ON AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimously The Clerk read the following approved consent agenda items: The March 29, 1994, minutes were approved as written; Resolution No. 94 -042 authorizing the Chamber of Commerce to issue vendor permits for the solicitation of funds or sales of city property during the Fourth of July Independence Day celebration, was approved; Resolution No. 94 -043 establishing the FY 1994 budget for the DARE Special Revenue Fund, was approved; Resolution No. 94 -045 encouraging the state legislature and governor to refrain from making any further reductions to the state revenue sharing and municipal assistance programs, was approved; Resolution No. 94 -046 authorizing a request for bids for confined space entry equipment and appropriating funds, was approved; Resolution No. 94 -047 authorizing the purchase of high mast electrical poles and lights from EDI, was approved; Requests for renewal of liquor licenses as filed by Apollo Restaurant, BPO Elks #1773, Peking Chinese Restaurant, Tony's Bar, Pioneer Bar and Tony's Liquor Store, were noted and the Clerk was instructed to issue a letter of non - objection to the renewals; 122 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 122 BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meetings. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94-20 providing for a city business license. 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. MOTION (Krasnansky /Anderson) Enact Ordinance No. 94 -20 O'Brien stated that he had voted in opposition to the introduction of this ordinance. He stated that, although he agreed with the concept, he did not feel that this was a cost effective way to manage the system. He noted that, as proposed, the business license would not generate revenues but would produce more work for the administration. He also noted a letter of objection to the ordinance which the Council had received from the Downtown Business Association. Anderson spoke in favor of the ordinance. She stated that the business license was not intended to raise money but to regulate businesses. She noted that the Clerk's Department would be issuing the licenses and did not anticipate the need for additional staff to do this. MOTION (Anderson/Krasnansky) Amend § 8.20.025 C.I. by changing the license fee to $30 per business type per year. Motion Passed. MOTION (O'Brien/Krasnansky) Motion Passed. YES: Anderson, Bencardino, Crane, Krasnansky, Sieminski NO: Darling, O'Brien Amend § 8.30.015 A. to read "No person may engage in a business in the city with- out obtaining an annual business license as provided in § 8.30.025 of this Chapter. Unanimously VOTE ON ORDINANCE AS AMENDED 123 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 123 Motion Passed. YES: Anderson, Bencardino, Darling, Krasnansky, Sieminski NO: Crane, O'Brien Ordinance No. 94-21 revising the city personnel code to conform to standards established in the state and federal Family Medical Leave Acts. 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. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94-21 Motion Passed. Unanimously Ordinance No. 94 -22 repealing the bed tax. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. BRAD SNOWDEN, 525 Sixth Avenue, stated that the bed tax, sales tax and property taxes resulted in "triple dipping" for those in the visitor industry. He added that, in his opinion, the bed tax was a good way to raise revenue, but he did not believe the revenue should go into the general fund. He stated that he could support the tax if one -half of the proceeds were dedicated to enhancement of visitor services such as construction of a recreation facility or a visitors center. CHRIS SWANSON, 550 Railway Avenue, stated that he still opposed the bed tax. He thanked those Councilmembers who had worked with the lodging industry to reach a compromise. He added that he could not support any more taxes or user fees until the budget was "lean and mean ". No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Darling) Enact Ordinance No. 94-22 Anderson reminded the Council that, if repealed, the ordinance could not be revisited by the Council for two years. She stated that she would prefer to let the people decide the question now. In response to a question from Anderson, Klinkner stated that he had been asked if a bed tax could be initiated by the voters if this tax were repealed by ordinance. He stated that it was 124 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 12 his opinion that the people could initiate another bed tax through the petition process before the two years banning Council action had expired. VOTE ON MOTION Motion Passed. YES: Bencardino, Darling, Krasnansky, O'Brien NO: Anderson, Crane, Sieminski Letter to Chief Walker from Crane Crane read a letter he had written to the Police Chief commending his staff for their actions following the recent prison escape. PRESENTATIONS WITH PRIOR NOTICE ONLY Stan Stanley, Regional Citizens' Advisory Council - Progress Report Dennis Lodge, city representative on the Prince William Sound Regional Citizens Advisory Council, warned Council of the devastating effect another oil spill could have on the community of Seward and noted the importance of maintaining citizen oversight of the oil industry to assure that oil companies did not cut corners and that they observed all safety rules. Captain Stan Stanley, executive director of the RCAC, gave an overview of the Council's activities during the past year and the potential for a future oil spill. He commended Lodge for his work on the Council. ORDINANCES FOR INTRODUCTION None RESOLUTIONS Resolution No. 94 -044 authorizing the assignment, partial assignment and sublet of Lease No. RE84 -037, Lot 7, Block 1, Marina Subdivision, from Dean Lust to the Lust Trust, Sam and Sandra Stillion, and Sailing, Inc., respectively. MOTION (Darling / Bencardino) Approve Resolution No. 94 -044 Anderson stated that she had no personal problem with Mr. Lust, but she did object to the way that all lease assignments and other lease changes came before the Council. She noted that all lease rates in the harbor were far lower than their true value. She also objected to the city providing its services to prepare lease amendments without compensation from the lessee requesting the service. She stated that she intended to oppose any lease assignments until a policy was in place that addressed the inequities in fees and lease rates. Anderson stated that the city must stop subsidizing the businesses in the boat harbor at the expense of other taxpayers of the city. O'Brien stated that the city should at least recover its costs in putting together the lease assignments. 125 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 125 Jones noted that Anderson, Klinkner and he had discussed her concerns prior to the meeting. He concurred with Anderson and O'Brien regarding both concerns and stated that the administration would take aggressive action to define property values in the harbor including a plan to seek proposals for the use of certain property in the harbor. Crane noted that he had discussed this issue with the Clerk this afternoon and would pursue changes in procedures to recoup the city's costs in actions of this type. VOTE ON MOTION Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski NO: Anderson RECESS: The meeting was recessed at 8:55 p.m. and reconvened at 9:05 p.m. Resolution No. 94 -048 authorizing lease amendment No. 2 with James T. Pruitt, dba Seward Ship's Chandlery, extending the lease term, and authorizing an assignment of lease from James T. Pruitt, dba Seward Ship's Chandlery, to Seward Ship's Drydock, Inc. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -048S In response to a question from O'Brien, Jones noted that the substitute resolution was intended to clarify both the time extension and the reappraisal cycle as well as to clarify that the name change was actually an assignment from Pruitt to his corporation. In addition, the substitute resolution required a personal guarantee from Pruitt assuring that the corporation would meet its obligations under the lease. Klinkner explained the attached documents and noted that Meyen had revised the lease documents to assure compliance with the arbitrator's decision. Klinkner noted that the Council was under no obligation to approve the amendments and stated that the city should consider the fact that the bank had not given a loan commitment nor had AIDEA assured funding. In response to a question from Sieminski, Klinkner stated that he first saw the requested amendments several days ago. Sieminski asked for a report on the required fencing by the lessee. O'Brien noted that this lease amendment was presented to facilitate financing for the lessee. Klinkner noted that the assignment from Pruitt to the corporation was independent of the financing. 126 City of Seward, Alaska April 11, 1994 City Council Minutes Volume 30, Page 126 MOTION (O'Brien/Krasnansky) Motion Passed. Amend the resolution to make the exten- sion of the lease term contingent upon the lessee obtaining the financing for con- struction of the building by amending § 4 of the resolution to read "Sections 2 and 3 shall take effect upon passage and ap- proval. Section 1 of this resolution shall take effect on the later of (i) 30 days after passage and posting and (H) the furnishing by lessee to the city of proof it has ob- tained a commitment for financing of the building required under the lease, includ- ing AIDEA participation ". Unanimously In response to a question from Siemins1d, Jones stated that he had no current accounting of what these lease amendments had cost the city. VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimously UNFINISHED BUSINESS Ordinance No. 94 -16 establishing a visitor impact assessment fee for lodging establishments. MOTION (Crane /Krasnansky) Motion Passed. Amend § 5.45.015 to read "There is esta- blished an annual visitor assessment fee initially in the amount of $25.00 and hereafter to be determined annually by ordinance for each room available for occupancy to be paid by all lodging estab- lishments. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien NO: Anderson, Sieminski VOTE ON ORDINANCE AS AMENDED Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien 127 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 127 NO: Anderson, Sieminski Ordinance No. 94 -17 establishing a parking assessment fee for harbor area businesses. O'Brien asked if the exception of the Central Business District would result in the creation of a discriminatory fee. Klinkner noted that, since the CBD was exempt from providing parking under the Code, this ordinance would be legally defensible. Anderson stated that she continued to object to the ordinance because of the inclusion of marine charter businesses. She stated that the large day cruisers created their own special burden on the boat harbor including use of the ramps, garbage dumpsters, public restrooms, etc., by their passengers. She suggested a special per seat fee for the day cruisers rather than a parking assessment. MOTION (Sieminski/Krasnansky) Motion Failed. MOTION (Crane /O'Brien) Motion Passed. Amend by setting the rate initially at $300.00 per space and to be set annually thereafter by ordinance. YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien Amend by setting the rate initially at $125.00 per parking space and to be set annually thereafter by ordinance. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien NO: Anderson, Sieminski Anderson reminded the Council that property in the boat harbor belonged to the entire community, not just the harbor merchants. In response to a question from O'Brien, Jones stated that fees would be reviewed at budget preparation time each year. MOTION (Crane /O'Brien) Amend Section 3 of the Ordinance by changing the effective date to January 1, 1995. 128 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 128 Darling stated that this ordinance had been under discussion for a long time and everyone should know that this action was coming. Motion Failed. All voted NO. VOTE ON ORDINANCE AS AMENDED Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, O'Brien NO: Anderson, Sieminski NEW BUSINESS Proposed charter review by clerk and attorney Anderson asked if these amendments would include references to the procedure for setting lease rates. Murphy replied that the manner used to determine lease rates was not addressed in the Charter. Murphy and Klinkner briefly reviewed the problem areas in the Charter that deserved attention. Klinkner noted the importance of keeping the Charter current. O'Brien stated that he supported the concept of looking at the Charter. He requested that the attorney and clerk make a short list of areas that needed attention and that Council then decide which they wished to address. Council concurred. Inlet Salmon lease proposal MOTION (O'Brien/Bencardino) Find it in the public interest to consider a lease of the subject property and remand the request to the Planning Commission for review and comment. Motion Passed. Unanimously Proposed prison citizen advisory board Crane stated that he would meet with SCCC Superintendent Kincheloe and the city manager to discuss how this board could be put together without direct city involvement. Street repair and maintenance Sieminski stated that the streets were badly in need of repair. He suggested that the Council give direction to the administration to proceed with a request for proposals for the needed work immediately so that work could proceed the first of June. 129 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 129 Jones stated that the city had $100,000 in the FY 94 budget for street repair and hoped to overlay Fifth Avenue, Madison Street and B Street this year. He stated that, if Council provided capital funds in the FY 1995 budget, these contracts would be extended to complete as much work as possible using both fiscal year capital budgets. Bencardino and O'Brien questioned the need for a contractor to prepare the bid documents for the overlay of city streets. Engineering and Utilities Manager Calvert noted that the contractor, CRW, did the paving design work in 1991, and the company's expertise was needed. He stated that the condition of the streets in question was such that some sections could be overlaid and others needed to be taken up and repaved. In response to a question from Anderson, Calvert stated that he would be talking to the contractor who paved two years ago about correcting the deficiencies in his last job with the city. CITY MANAGER REPORTS Trip Report JONES noted the trip report included in the council packet. JONES noted a letter from Robert Kessling proposing a shooting range in the city of Seward and stated that Chief Walker had responded to Kessling in writing indicating the city's support for a shooting range if there was to be no direct city involvement. JONES stated that the requested presentation on the community survey would be made at the next meeting. JONES asked the Council to schedule work sessions for the FY 1995 budgets. JONES reported that he and Mayor Crane had travelled to Juneau to work on Marine Highway transportation and funding issues and had attended several meetings relative to the sawmill layoff announcement. In addition, they had asked the legislature and Governor Hickel to revisit the interest rate on Seward's electric utility loan from the state. JONES noted that he had received a letter from SLAC asking to begin negotiations with the city to locate its new facility on city property adjacent to the hospital and Wesley Rehab. 130 City of Seward, Alaska City Council Minutes April 11, 1994 Volume 30, Page 130 COUNCIL DISCUSSION O'BRIEN noted that several grant reports had not been filed in a timely manner and added that he hoped grant compliance would be at the top of the finance department's priority list shortly. Jones assured the Council that this was being addressed. DARLING stated that he concurred with Walker's response to Kessling's letter regarding the shooting range. He stated that he would favor amending the Code to allow a range inside the city limits in certain specific locations. BENCARDINO stated that the Council was to have received a list of houses to be condemned. Jones stated that the city had an extensive list of zoning enforcement opportunities, and the administration would soon be making a presentation to the Council for direction. ANDERSON reported that the hospital had several strategic planning meetings scheduled and had just recently received the survey results. She also related that she had discussed the hospital service area concept with Kenai Peninsula Mayor Don Gilman and would have a written report for the Council at the next meeting. She also urged other Councilmembers to attend the Seward Partnership Planning meetings. Finally, Anderson noted that the Prince William Sound herring fishery was canceled for the second straight year. KRASNANSKY asked the Clerk to prepare paperwork for an initiative for the bed tax. CRANE noted that he would instruct the Clerk to advertise a vacancy on the Cook Inlet Aquaculture Association Board to replace the city's representative, Margaret Branson, who had resigned. Crane canceled the work session scheduled for April 12th and stated that he would reschedule the session at a later time. CRANE scheduled the general fund budget work session to begin at Noon, Friday, April 15th, with the second budget work session to be held beginning at Noon, Thursday, April 21st. CITIZENS' DISCUSSION ELAINE NELSON, Director of the Chamber of Commerce, 209 Ravina, stated that one of the cruise ship lines had expressed concern that its ships would not be allowed to dock at the Alaska Railroad Dock on several occasions this season because of the priority given to transient vessels over those who made Seward a destination or stopping place. She stated that two lines might discontinue their trips to Seward in 1996 if this situation could not be rectified. NELSON noted that the Chamber had represented the city at the Great Alaska Sportsman's Show in Anchorage. She also reported that the Chamber was in the process of changing its name to the Seward Chamber of Commerce and Visitors Bureau. 131 City of Seward, Alaska City Council Minutes April 1 1994 Volume 30, Page 131 ERIC OLSON, 315 Second Avenue, thanked the Council for its input on the user fee /assessment issues. He stated that he would like to see some figures relating what the visitors actually cost the city as opposed to the amount of revenue generated by the visitors. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 11:10 p.m., and, after a short recess, the Council reconvened in an executive session to discuss strategies for negotiating the harbor lease agreement with the state. City Clerk (City Seal) 0 � S EAL City of Seward, April 25, 1994 CALL TO ORDER L & OA.� Dave W. Crane Mayor City Council Minutes Volume 30, Page 131 The April 25, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor James Krasnansky. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: James A. Krasnansky, presiding, and Margaret Anderson Louis Bencardino Hugh Darling Bruce Sieminski 132 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 132 comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Patricia Jones, Deputy City Clerk ABSENT were: Dave W. Crane (excused) Patrick D. O'Brien (absent) CITIZENS' COMMENTS Agenda items not scheduled for public hearing None. Items other than those appearing on the agenda None. APPROVAL OF AGENDA AND CONSENT AGENDA City Manager Jones requested the addition of Resolution No. 94 -051 to the Regular Meeting Agenda. Krasnansky moved New Business Item B (Vendor Permit Policies) to be considered prior to Resolutions. MOTION (Anderson/Bencardino) Approve the Agenda and Consent Agenda as amended. Motion Passed. Unanimously The Deputy Clerk read the following approved consent agenda items: The April 11, 1994, regular meeting minutes were approved as written; Resolution No. 94 -049 accepting library construction grant funds and setting the budget for ADA renovations to the library, was approved; Request to designate funds authorized for the purchase of a police vehicle for acquisition of an animal control vehicle, subject to Council approval of a proposal submitted under the city's standard bid procedures, was approved; and Request for renewal of a liquor license as filed by the New Seward Saloon was noted and the Clerk was instructed to issue a letter of non - objection to the renewal, 133 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 133 BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present. Krasnansky noted that the Kenai Peninsula Borough Assembly would hold its next meeting on May 3rd in the City Council Chambers, Seward. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -10 amending § 15.10.135, Conflicts between Codes, and § 15.10.220, Development Requirements 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. MOTION (Krasnansky /Bencardino) Motion Passed. Amend by replacing with Ordinance No. 94 -10 Substitute Unanimously Community Development Director Martin reviewed the changes outlined in the memorandum included in the agenda packet. MOTION (Anderson/Sieminski) Amend Page 4, Footnote 9, by deleting the current language and inserting "in the Harbor Commercial area, all building height is limited to 26 feet." Anderson explained that this amendment would restrict the building height to 26 feet, or two stories, in a larger area of the harbor. Darling stated that the density and best use of property in the harbor would be limited; therefore he was not in support of the amendment. Bencardino agreed that shore-side property should be limited but he did not see why other land should be restricted. Anderson stated that, with congestion in the harbor, construction of three story buildings detracted from the view. VOTE ON AMENDMENT Motion Failed. YES: Anderson, Sieminski NO: Bencardino, Darling, Krasnansky 134 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 134 VOTE ON SUBSTITUTE ORDINANCE Motion Failed. YES: Bencardino, Darling, Krasnansky NO: Anderson, Sieminski PRESENTATIONS WITH PRIOR NOTICE ONLY Presentations by applicants for the Historic Preservation Commission DOUG CAPRA, 212 Resurrection Boulevard, noted that he had been writing about Seward's history for 20 years. He stated that he liked research and was familiar with old documents. He noted that he had written grants and was trained in archaeology. He added that historic preservation was important for many reasons including tourism. He stated that he was pleased to offer his services. WALTER E. CORRIGAN, JR. was not present. VIRGINIA H. DARLING, 209 Fourth Avenue, stated that she would like to offer her services and her first hand knowledge as a pioneer of Seward. She added that she knew a lot about the history and the buildings in the community. JEANNE GALVANO, 423 Second, stated that she was interested in historic preservation and had worked on grants and historic projects. She noted that she was interested in a "sense of place," where people and events fit into history in the past, currently and in the future. DONNA L. KOWALSKI, was not present. KELLY ROSE MARTIN, was not present. Krasnansky noted a letter that was presented to the Council outlining her interests. DAN SEAVEY, was not present. SHANNON R. SKIBENESS, 2612 Birch Street, expressed her interest in historic preservation. She noted that she had a graduate degree in public administration. She stated that she had served an internship with the city of Seward. During that time, she had done research, prepared a grant application and completed the paperwork necessary to designate Seward as a certified local government. She noted that she worked for the U.S. Forest Service. She stated her desire to be a part of the historic preservation process which started during her internship. She added that she had a good working relationship with the State Historic Preservation Officer. MICHAEL G. WILEY, 550 Railway, stated that he had lived in the Seward area since 1981. He noted that he held a bachelor's degree in historical geography and had done graduate work in archaeology. He noted that he had a personal interest in history since he owned a building that was listed on the historic register. 135 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 135 1994 Community Survey Jones and Yanez made a presentation outlining the results of the 1994 community survey. Zoning Enforcement Martin reviewed the plan for enforcement and clean -up of problem areas in Seward. He stated that the city had depended on voluntary compliance in the past unless an area was considered a threat to public safety. He noted that most public nuisances were taken care of when a complaint was received from a citizen. Jones stated that the administration would bring a recommendation to the Council at a later date. RECESS: The meeting was recessed at 8:42 p.m. and reconvened at 8:52 p.m. MOTION (Anderson/Krasnansky) Reconsider and enter on the minutes Ordinance No. 94-10 Substitute. ORDINANCES FOR INTRODUCTION None. NEW BUSINESS Vendor Permit Policies (Taken out of order). Jones stated that the administration had reviewed last year's discussion on vendors. He stated that, currently, each vendor must obtain Council approval prior to commencement of business. Anderson suggested a work session on this issue prior to the next council meeting. A work session was scheduled for Monday, May 9, 1994, at 12:00 noon. Jones encouraged the Council to look closely at established ordinances during its review rather than anticipating different needs of vendors. RESOLUTIONS Resolution No. 94 -050 approving a vendor permit for Dennis and Candy Perry to sell confectioneries in downtown Seward MOTION (Sieminski/Bencardino) Approve Resolution No. 94 -050 Anderson stated that the Council needed to consider the details involved, (location, transient or permanent, seasonal or year - round), before deciding on whether or not to change the vendor policy. She stated that she would prefer to postpone action until after the work session. MOTION (Anderson/Sieminski) Postpone action on Resolution No. 94 -050 Motion Passed. Unanimously 136 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 136 Resolution No. 94 -051 accepting the rural community fire protection grant and appropriating the grant funds. MOTION (Bencardino /Sieminski) Approve Resolution No. 94 -051 Jones stated that he requested the addition of this item because the deadline to apply for the grant was May 1, 1994. Motion Passed. Unanimously UNFINISHED BUSINESS None. NEW BUSINESS Appointment of historic preservation commission. Ballots containing the names of the nine applicants were distributed to the Council. The Deputy Clerk read the results as follows: Doug Capra - 5 votes Walter E. Corrigan, Jr. - 3 votes Virginia H. Darling - 5 votes Jeanne Galvano - 5 votes Donna L. Kowalski - 2 votes Kelly Rose Martin - 1 vote Dan Seavey - 4 votes Shannon R. Skibeness - 5 votes Michael G. Wiley - 5 votes Shannon Skibeness and Michael Wiley volunteered to serve two -year terms. Doug Capra, Virginia Darling and Jeanne Galvano were appointed to three -year terms; Shannon Skibeness and Michael G. Wiley were appointed to two-year terms; and Walter Corrigan Jr. and Dan Seavey were appointed to one -year terms. MOTION (Bencardino /Anderson) Motion Passed. Confirm the appointments as noted above. Unanimously CITY MANAGER REPORTS JONES reported that Ernie Blatchford had passed away and he expressed the city's condolences. He noted that Super Saturday cleanup would be held on May 7th. Jones stated 137 City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 137 that the state regulations requiring the 24 -hour use of headlights on the Seward Highway extended from Mile 3 to Mile 114. He reported that, as authorized by the Coast Guard, the derelict vessel Karen would be removed from the bottom of the harbor over the weekend. JONES stated that the first public hearing on the FY 1995 budget was scheduled for May 9th and he encouraged the public to speak on this issue. He reminded everyone that the third budget work session was scheduled for Thursday, April 28th, to review the harbor enterprise fund budget. JONES reported that the campgrounds would open on April 27th. He noted that an informational flyer on visitor related user fees was available at city hall or the chamber of commerce. He stated that the library was recruiting volunteers to paint the outside of the library. JONES reported that the Midrix Corporation was interested in developing an iron -ore production plant in Alaska and had asked for community profiles from Seward, Kenai- Nikiski and the Matsu area. He noted that the administration was preparing a packet that reflected Seward's industrial prospects. Jones also reported on the future status of the sawmill. JONES stated that a negotiation session was held with DOT /PF on the Small Boat Harbor Management Plan. He reported that the State had located $700,000 in possible funding with $450,000 targeted for a new X float at the east side of the harbor and a new platform for a new fuel float and $250,000 for electrical upgrade to the float system. COUNCIL DISCUSSION ANDERSON reported that, on May 5th, Peter House would present the Seward General Hospital community survey at a hospital board work session at the hospital. In addition, the hospital board would meet in a work session on May 10th at the Main Street Cafe to work on strategic planning, goals and objectives, and future plans of the hospital. She reported that the hospital budget was complete and would be presented to Council early in May. She noted that the hospitals capital projects totalled $93,000. She reported that the medical clinic was doing well and handling a record number of patients. She requested that the SCCC Citizens Advisory Board should be kept alive. Jones stated that the administration shared her concern. He stated that he was receptive to ideas for composition of the board, interest in community representation and guidance from Council and the public. ANDERSON noted her desire for community leaders to serve on the board. ANDERSON asked about the status of the Lowell Creek Tunnel. Jones stated that he had received a letter from the Division of Emergency Services to follow up with the Corps of Engineers office on a proposed flood control study that would determine the future of the tunnel. He noted that the study would cost about $900,000. He stated that the city would continue to protect the mouth of the tunnel from blockage, which was the best and lowest cost alternative that was in the city's best interest at this time. He suggested that the cost of 50 percent of the City of Seward, Alaska City Council Minutes April 25, 1994 Volume 30, Page 138 study for the SMIC breakwater be discussed during budget time. In answer to a question on the B Street Dock, Jones stated that no funding was available from the legislature this year. BENCARDINO noted that he would be in Juneau during the work session next Thursday. He stated that he would be working with a statewide EDD group in its efforts to help the timber industry. In answer to a question from ANDERSON, BENCARDINO noted that proposed harvest of spruce beetle infested timber was being addressed and hearings were being held by the U.S. Forest Service. The Council requested a slide presentation at the next meeting. SIETOTSKI asked about the proposed fuel float. JONES replied that the entire float would be replaced. SIEIVIINSKI asked if grant funds designated for development of the B Street Dock could be utilized to extend the Corps of Engineers permit for development of the area around B Street beyond the original three years. JONES answered that the funds could be used for a number of items including development of land, negotiations on the Alaska Railroad Dock and other alternatives. He stated that the city was trying to retain the remaining $300,000 of the grant through the legislature's re- appropriation process. KRASNANSKY thanked the 14 volunteers who helped with the recent EMT II training course. T. JONES noted that the next partnership planning meeting would be held on May 10th from 6:30 p.m. to 9:30 p.m. at the high school cafeteria. CITIZENS' DISCUSSION HERMAN LEIRER, Dairy Lane, spoke about Seward's history of flooding and the relationship between the Lowell Creek Tunnel and future flood problems. He discussed the flood of 1941 when Old Nash Road was under seven feet of water and the airport area was completely flooded. He encouraged the Council to lobby Senator Stevens for flood control funding. He added that one flood could wipe out the roads, airport and access to Anchorage and the prison. MICHAEL WILEY, 550 Railway, thanked the Council for their vote of confidence in appointing him to the historic preservation commission. He also thanked the councihnembers for the community service work each member provided to the community. He noted that the school budget was approved at the last Kenai Peninsula Borough Assembly meeting. He stated that the south peninsula and central peninsula hospitals were considering combining service areas and he urged the Council to involve the east peninsula. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS ANDERSON voiced her appreciation of Leirer's comments on flood control, especially in the area of Resurrection River. 139 City of Seward, Alaska April 25, 1994 City Council Minutes Volume 30, Page 139 ADJOURNMENT The meeting was adjourned at 10:09 p.m. Patricia J. Jones, CMC Deputy City Clerk (City Seal) r»� f w�q5 3 «t City of May 9, 19 City Council Minutes Volume 30, Page 139 CALL TO ORDER The May 9, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and LA . C &Q�� Dave W. Crane Mayor Louis Bencardino James Krasnansky Bruce Sieminski Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk 140 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 14 CITIZENS' COMMENTS Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Anderson) Approve the Agenda and Consent Agenda as presented. Jones asked for an executive session to discuss pending litigation between the city and Exxon. MOTION (Krasnansky /Bencardino) To meet in executive session immediately following the close of regular business to discuss the Exxon litigation. Motion Passed. Unanimously Anderson moved Resolution No. 94 -054 from the Consent Agenda to the Regular Meeting Agenda. Mayor Crane noted that the presentation by Hospital Board applicant Jean Cripps would be heard immediately following approval of the agenda so that she could return to her class at AVTEC. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimously The Clerk read the following approved consent agenda items: The April 25, 1994, minutes were approved as written; Resolution No. 94 -053 authorizing the city manager to enter into a contract with METCO, Inc., to construct the new Small Boat Harbor boat launch ramp, was approved; Resolution No. 94 -055 authorizing the execution of an agreement to terminate consent agreement related to the coal terminal, was approved; Applications for renewal of liquor licenses as filed by HARBOR,bINNER CLUB and YUKON BAR were noted and the clerk was instructed to issue a letter of ndn- objection to the renewal of the licenses; and April 1994 library director's report was noted for information. 141 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 141 PRESENTATIONS WITH PRIOR NOTICE (Taken out of order.) Jean Cripps - Hospital Board Applicant Cripps noted that she had been affiliated with the hospital since moving to Seward in 1979. She outlined her history in the health care industry and she urged the Council to give favorable consideration to her application. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the May 3, 1994, assembly meeting. SPECIAL ORDERS AND PUBLIC HEARINGS Proclamation designating May 8 -14. 1994. as Nursing Home Week Crane presented proclamations to Seward General Hospital/Wesley Nursing Home Administrator Richard Jones designating May 8 -14, 1994, as Hospital and Nursing Home Week in Seward. Resolution No. 94 -052 accepting Alaska State Tidelands Patent No. 362 conveying Alaska Tidelands Survey 1222 to the city of Seward. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -052 Unanimously Fiscal Year 1995 budgets 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. ORDINANCES FOR INTRODUCTION None RESOLUTIONS Resolution No. 94 -054 endorsing Seward Ship's Drydock building financing by AIDEA. MOTION (Anderson/Darling) Approve Resolution No. 94 -054 Anderson stated that she had questions regarding the staff memorandum which stated that the Council had approved a lease amendment which would extend the Seward Ship's Drydock 142 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 142 lease term to 2024. She stated that it was her understanding that the extension of the lease term was contingent upon the receipt of financing which would require the longer term. Minkner noted that Anderson was correct and that the staff memorandum was misleading. He stated that the resolution currently before the Council would have no effect on the term of the existing lease. VOTE ON MOTION Motion Passed. Unanunously UNFINISHED BUSINESS Ordinance No. 94 -10S amending Seward City Code Section 15.10.220, development requirements. Murphy noted that the motion to enact this ordinance had failed at the last meeting. However, prior to adjournment, a motion was made and seconded to reconsider and enter on the minutes the vote on the motion. Therefore, the motion before the Council at this time was the motion to reconsider which, under the special rules for reconsideration contained in the City Code, would require five affirmative votes for approval. Anderson stated that she intended to vote for passage of the ordinance so that it would not be further delayed. She added that she would sponsor another ordinance later to address height restrictions and other harbor issues. VOTE ON MOTION TO RECONSIDER Motion Passed. Motion (Sieminski/Anderson) Unanimously Amend the ordinance by deleting "Fourth" from Footnote No. 9 and insert- ing the word "Third ", extending the boun- daries of the area of height restriction. VOTE ON AMENDMENT Motion Failed. YES: Anderson, Sieminski NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien VOTE ON MOTION TO ENACT THE ORDINANCE. Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien 143 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 243 NO: Sieminski Resolution No. 94 -050 approving a vendor permit for Dennis and Candy Perry to sell confectioneries in downtown Seward. Murphy noted that the vote on this motion had been postponed from the last meeting. MOTION (Anderson/Sieminski) To amend the permit by allowing the applicant to locate on the sidewalk in front of the City Hall parking lot on 4th Avenue across from First National Bank and just north of World Express Travel. Bencardino and Darling objected to allowing vendors on city sidewalks. Crane stated that those going into business should lease city property or operate on private property. O'Brien objected to leasing property for vendor operations. Krasnansky agreed with O'Brien. Darling disagreed and stated that a simple lease could be drafted to cover vendor operations. Crane stated that it was not in the community's best interest to put businesses on the sidewalk. VOTE ON AMENDMENT Motion Failed YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien MOTION (O'Brien/Krasnansky) Motion Failed. MOTION (Sieminski/Krasnansky) Motion Passed. To amend the permit by approving the requestor's first choice location pro- vided that the applicant could satisfy the Fire Chief with regards to the fire exit on the Apollo Restaurant building; otherwise, the requestor's second choice would be approved for the vendor location. YES: O'Brien, Krasnansky NO: Anderson, Bencardino, Crane, Darling, Sieminski To allow the vendor to locate on the side- walk fronting City Hall. YES: Anderson, Krasnansky, O'Brien, Sieminski 144 City of Seward, Alaska May 9, 1994 MOTION (Anderson/Bencardino) Motion Failed. City Council Minutes Volume 30, Page 144 NO: Bencardino, Crane, Darling Postpone action until 05/23/94. YES: Anderson, Bencardino NO: Crane, Darling, Krasnansky, O'Brien, Sieminski VOTE ON RESOLUTION AS AMENDED Motion Failed. YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien RECESS: The meeting was recessed at 8:55 p.m. and reconvened at 9:05 p.m. UNFINISHED BUSINESS (Continued) Seward community abatement and clean -up plan Community Development Director Kerry Martin gave an overview of the administration's recommendations regarding upcoming abatement of public nuisances and city clean-up. Martin asked for Council concurrence that the administration enforce current codes and begin an abatement and clean-up process. O'Brien stated that the city should pick one or two items and tackle them rather than attempting to address all of the items at this time. He stated that he would support strict enforcement of vehicle removal. Anderson stated that the city's first priority should be public nuisances including vehicles, businesses and animals. She added that the city should look at city property first before citing private property owners. Council instructed the administration to proceed with the planned abatement program. Anderson suggested that the city send a flyer to city businesses and residences regarding the program before issuing citations. NEW BUSINESS Appointment of Community Hospital Board member Jean Cripps was appointed to the Hospital Board for a term to expire October 1995 by unanimous consent. 145 City of Seward, Alaska City Council Minutes May 9, 1994 [volume 30, Page 145 Small Boat Harbor float proposals by Kenai Fjords Tours and Phillips' Cruises and Tours MOTION (Krasnansky /Anderson) To approve the proposal by Kenai Fjords Tours to build a seventy -five foot float finger on "E" float for public use to re- solve past preferential assignment in the harbor. Motion Passed. MOTION (Krasnansky /Anderson) Motion Failed. MOTION (Krasnansky /Darling) Motion Passed. CITY MANAGER REPORTS Unanimously To approve the extension of "H" float and use of the airplane float for loading as originally proposed by Phillips' Cruises and Tours. All voted NO. To approve the permanent assignment of "F" float for Phillips' Cruises and Tours in exchange for the construction of four float fingers on "H" float for public use. Unanimously JONES stated that the city had just been informed that the police vehicle budgeted in FY 1994 was now available and would be shipped soon. Therefore, the animal control vehicle would be purchased in the FY 95 budget. He noted that two employee meetings would be held soon during which he would circulate a questionnaire to all city employees asking for recommendations regarding containment of health care costs. In response to a request by Anderson, Jones reported that the Senior Citizens' group had done a good job of marketing the Community Center and providing community use of the facility. Also, in response to a question from Anderson, Jones reported that all businesses in the harbor, including the new restaurant, would be subject to the harbor assessment. COUNCIL DISCUSSION DARLING, welcomed Obihiro resident Mr. Wada who was visiting Seward for the next two months. ANDERSON identified the following budget items needing consensus; Streets (over and above approved capital budget expenditures); 146 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 1 46 SMIC Road needs ; Resurfacing North Dock (identify cost figure); Fourth Avenue Dock as possible alternative to cruise ship landings (north/southwest approach with catwalks); Upgrade Community Development personnel addition to full time; Salary upgrades for Parks and Recreation and Police; Chamber of Commerce donation; Specific capital projects in the boat harbor, including another ramp similar to the one on D Float; Camper hook -ups (water and electricity), a dump station and further beautification in the Waterfront Park; Management /Personnel Study and Cost allocation study; and Creation of a citizen audit committee. ANDERSON also asked if the next highest vote recipient could be appointed to the Planning Commission rather than calling for applicants for this position. Murphy explained that the Council's approved Rules of Procedure required advertising the position, and the ad had already been placed in the local newspaper. ANDERSON also reported on her efforts to create a borough -wide hospital service area. SIENIINSKI suggested that the city manager's secretary position be eliminated and that the assistant city manager be moved to her office. He stated that this would free office space and eliminate an administrative position. He also suggested that the employees in the leased facility across the street be moved to city -owned facilities. Sieminski also stated that all travel and subsistence should be placed in a separate fund that would require Council approval of all travel individually before it happened. In addition, he asked to amend the Mayor /Council budget by increasing the travel line item to $21,000, giving each Councilmember, including the Mayor, a $3,000 travel budget to use as he or she saw fit as long as the Councilmember accounted for the expenditures as they were made. Sieminski suggested hiring a full time assistant in the Community Development Department and transferring Planning Commission support from the Clerk's Department to Community Development once that position was filled. KRASNANSKY suggested that the Council amend the Code by disallowing vendor permits altogether. CRANE noted the budget work session scheduled for Thursday at Noon. He welcomed Jean Cripps to the hospital board and welcomed Phillips' Cruises and Tours to Seward. CITIZENS' DISCUSSION ELAINE NELSON, 209 Ravina, noted the positive things happening in Seward including improved communication between the business community and the Council. DONNA MAREK, 1810 Phoenix Road, stated that she had received a Conditional Use Permit from the Planning Commission in February to operate a food wagon on the Alaska Treks 147 City of Seward, Alaska City Council Minutes May 9, 1994 Volume 30, Page 147 N Voyages lease site in the Small Boat Harbor. She stated that the only thing preventing her from operating her business was a requirement that Alaska Treks N Voyages bring all its accounts with the city current before her sublease could be considered by the Council. She asked the Council to either overlook the charges due by Alaska Treks N Voyages or to issue a vendors permit to her which would allow her to operate directly in front of the lease property. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS BENCARDINO asked if there was some way to take care of Marek's problem. Jones noted that Alaska Treks N Voyages was not current with taxes and lease fees. Jones added that Alaska Treks N Voyages would be contacted once again and promised that either the sublease or an alternative plan would be before the Council on May 23rd. DARLING asked why this was coming to Council since Martin had stated earlier that the city did not get involved in sublets of a portion of property. O'BRIEN asked if the sublet agreement could be structured so that the sublease fees could go to the city and the lessee so that the monies could be used to reduce the monies owed to the city. Jones stated that this would be pursued along with a variety of other alternatives. ANDERSON stated that she could not agree to any subleases of city property since the city did not profit in any way from them. She stated that this was an ideal situation for a vendor permit. ADJOURNMENT The meeting was adjourned at 10:35 p.m. and, after a short recess, the Council reconvened in an executive session to discuss the pending Exxon litigation. City Clerk , t"��� u r uq �0 (Cit F 01F a a ©o � q ' ,Y ... :. co �4►e�, a a I IKO Dave W. Crane Mayor City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 148 CALL TO ORDER The May 23, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY O'Brien led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski Agenda items not scheduled for public hearing BILL JONES, 11437 Echo Street, Eagle River, suggested that a portion of the city's campgrounds be open to day parking to help alleviate parking problems in the Boat Harbor. He also suggested that the space across from the boat launch ramp be limited to 12 hour parking to discourage boaters from blocking the area with boat trailers. Items other than those appearing on the agenda ALLEN KESLING, Sixth Street, stated that he was seeking a rifle range in the city so that he would have a place to learn to shoot his rifle. WALTER SCZAWINSKI, Woodland Hills, stated that he was concerned that volunteerism was not being fully utilized for city improvements and asked the city to consider using older citizens for some projects. ARLENE WILEY, 515 Railway, thanked Creekside Bed and Breakfast for the flowers put in at the base of the Benny Benson Memorial. UM City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 149 BRAD SNOWDEN, 525 Sixth Avenue, suggested that the city implement an assessment against AVTEC and other local businesses in the same manner that the visitor industry was being assessed. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Sieminski) Approve the Agenda and Consent Agenda as presented. Krasnansky moved Ordinance No. 94 -24 to the regular meeting agenda. Anderson asked to place Presentations prior to Special Orders and Public Hearings. She also moved Ordinance No. 94 -23 and Resolution No. 94 -068 to the regular meeting agenda. Jones requested an executive session to meet with the attorneys representing the city in the Exxon litigation. MOTION (Krasnansky /Bencardino) To meet in an executive session immediately following the close of regular business to discuss the Exxon litigation with the city's attorneys. Motion Passed. Unanimously Crane moved Resolution No. 94 -072 from the regular meeting agenda to the consent agenda. Anderson asked to consider Resolution No. 94 -065 prior to Resolution No. 94 -064 VOTE ON AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimously The Clerk read the following approved consent agenda items: Resolution No. 94 -066 authorizing the Chamber of Commerce to issue vendor permits for the solicitation of funds or sales on city property during the "Destination Seward" campaign on June 11, 1994, was approved; Resolution No. 94 -067 awarding a contract to Summit Paving for city street repair and appropriating funds, was approved; Resolution No. 94 -069 accepting the ALPAR and KPB grants and appropriating funds, was approved; Resolution No. 94 -070 amending the City Clerk's employment agreement, was approved; 150 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 150 Resolution No. 94 -071 awarding a contract to Eastern Electric Company to perform specific substation maintenance, was approved; Resolution No. 94 -072 accepting a tree planting grant and appropriating funds, was approved; First Quarter CY 1994 taxable sales report was noted for information; Quarterly revenue /expense budget reports were noted for information; and ABCB notice of Pioneer Bar request for restaurant designation was noted and the City Clerk was instructed to write a letter of nonobjection to the Board. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. PRESENTATIONS WITH PRIOR NOTICE Planning Commission Applicants WILLIAM B. SHATTUCK stated that this was the second time he had asked to be appointed to the Planning Commission and noted that he wished to take part in planning for the city's growth. Note: Shannon Skibeness was not present. U. S. Forest Service Presentation - Moose Pass Beetle Kill Duane Harp, District Ranger, reviewed the 15 -year history of the bark beetle epidemic on the Kenai Peninsula and reviewed the options being considered to address this problem. SPECIAL ORDERS AND PUBLIC HEARINGS Resolution No. 94 -056 adopting the FY 1995 city operating budget. Finance Director Gifford briefly reviewed the First Quarter CY 1994 sales tax report and the latest quarterly revenue /expense report. City Manager Jones reviewed the budget before the Council and noted that the various budgets contained revised revenues and expenditures which were the result of the Council's recent budget work sessions. 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, MOTION (Krasnansky /Anderson) Approve Resolution No. 94 -056 151 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 151 Krasnansky stated that this had been the least stressful budget process he had participated in over the past four years. MOTION (Sieminski/Bencardino) To amend the budget by eliminating the city manager's secretary position and moving the assistant city manager to that office. In response to a question from Anderson, Jones stated that this would result in use of both the city manager's and the assistant city manager's time doing routine clerical work. He strongly suggested rejection of this proposal. Anderson noted that Sieminski's intent was for the Reception Department to take over clerical duties for the city manager; however, the receptionist position was being eliminated in the budget before the Council. Krasnansky stated that approving this amendment would be crossing the line between policy making and administration. VOTE ON AMENDMENT Motion Failed. YES: Bencardino, Sieminski, O'Brien NO: Anderson, Crane, Darling, Kras- nansky In response to a question from Anderson, Jones noted that the budget before the Council estimated a 25% reduction in revenue sharing rather than the 10% recently approved by the legislature. He stated that, since the governor had not yet signed the funding legislation, the city could not be sure which level of funding would be forthcoming, and he preferred to budget conservatively. Anderson asked if the sawmill assessment re- evaluation had been taken into consideration in this budget. Jones stated that it had not since this was a developing and changing game and the city could not yet guess how city revenues would be affected. VOTE ON MOTION Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski 152 City of Seward, Alaska City Council Minutes May 23, 1994 Vol 30, Page 152 Resolution No. 94 -057 adopting the harbor enterprise fund budget for the fiscal year beginning July 1, 1994. 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. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -057 Motion Passed. Unanimously Resolution No. 94 -058 adopting the electric enterprise fund budget for the fiscal year beginning July 1, 1994. 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. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -058 Unanimously Resolution No. 94 -059 adopting the water and sewer enterprise fund budget for the fiscal year beginning July 1, 1994. 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. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -059 Unanimously Resolution No. 94 -060 adopting the motor pool internal service fund budget for the fiscal year beginning July 1, 1994. Notice of public hearing as posted and published as required by law was noted, and the public hearing was noted. No one appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -060 Unanimously 153 City of Seward, Alaska May 23, 1994 City Council Minutes Volume 30, Page 153 Resolution No. 94 -061 adopting the Seward General Hospital enterprise fund budget for the fiscal year beginning July 1, 1994. 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. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -061 Unanimously Resolution No. 94 -062 adopting the capital budget plan for the three fiscal years beginning July 1, 1994. 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. MOTION (Krasnansky /Bencardino) MOTION (Anderson/O'Brien) Approve Resolution No. 94 -062 To delete the $6.5 Million community recreation center and the $1 Million re- modelling of the fire station. O'Brien stated that these items were on the list just in case grant funds should become available to the city. Krasnansky added that the fire hall had some serious structural deficiencies and should definitely remain on the list. Jones noted that the purpose of the plan was to have a variety of items on the list to take advantage of any funding which became available. He stated that all items on the list remained a need, but were not a funded need at the present time. Anderson deleted the fire station remodel from her motion to amend; O'Brien agreed to the change. VOTE ON AMENDMENT Motion failed. MOTION (Crane /Anderson) YES: Anderson, Bencardino NO: Crane, Darling, Krasnansky, O'Brien, Sieminski To amend Section 3 of the resolution by increasing the amount of the appropria- tion by an additional $187,306 for addi- tional street improvements. 154 City of Seward, Alaska May 23, 1994 City Council Minutes Volume 30, Page 154 O'Brien objected to including Railway Avenue in the improvements since the impending development of the SeaLife Center would require realignment of this street. Crane stated that he would like to appropriate the funds at this time and change the amounts later if discussions with SAAMS indicated that delaying this portion of the project was a good idea. VOTE ON AMENDMENT Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski NO: O'Brien VOTE ON RESOLUTION AS AMENDED Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski NO: O'Brien Resolution No. 94 -063 adopting the DARE special revenue fund budget for the fiscal year beginning July 1, 1994. 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. MOTION (Bencardino /Krasnansky) Approve Resolution No. 94 -063 Motion Passed. Unanimously RECESS: The meeting was recessed at 9:10 p.m. and reconvened at 9:20 p.m. Resolution No. 94 -065 accepting the Corps of Engineers Consent Agreement allowing the city certain rights associated with the tidelands within the Seward Small Boat Harbor. 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. MOTION (Krasnansky /Bencardino) Motion Passed. Approve Resolution No. 94 -065 Unanimously 155 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 155 Resolution No. 94 -064 approving a 20 -year lease of city -owned property located on the east side of the Small Boat Harbor to Robert H. Ferguson III. 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. MOTION (Sieminski/Krasnausky) Approve Resolution No. 94 -064 Darling stated that he was concerned about the lack of planning in this area. MOTION (Darling /Crane) To refer this proposal to the Planning Commission for comment and develop- ment of a master plan for this area. Jones stated that P &Z had reviewed this proposal and had recommended that the Council not proceed until a master plan was developed. Crane stated that the lack of planning in the area was his concern. He agreed that the proposed business was a necessary and needed one in the area, but he objected to approving any leases until a plan was in place. Sieminski stated that the Council should not try to restrict this development project. Krasnansky noted that the Planning Commission had already made a recommendation and Ferguson deserved a decision tonight. Community Development Director Martin noted that this project had been discussed by the Planning Commission and the Port Committee. He reported that the Port Committee had stated that it did not want any development in the tidelands area, and the Planning Commission had stated that it did not object to development of the tidelands but felt that planning was needed first. Krasnansky stated that this should have been remanded to the Planning Commission two meetings ago if that was the Council's intent. Crane stated that he had never agreed with this proposal and felt that the Council should consider the public's best interest over the interests of the proposer. Anderson stated that the property problem would not have been addressed if Ferguson had not come forward. She added that Ferguson's plan was a good one and she support it. O'Brien asked why this should be sent back if the Planning Commission had already reviewed the proposal and had made a recommendation to the Council. 156 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 156 VOTE ON MOTION TO REFER Motion to Failed. YES: Darling NO: Anderson, Bencardino, Crane, Krasnansky, O'Brien, Sieminski Anderson stated that she objected to the lease language and noted the need for wording which stated that subleases and assignments must come before Council, that the city must verify that all taxes and fees were current before bringing these to the Council and that, with subleases, the value of the sublease be provided to the city. In addition, she stated that the city should have the right to then adjust the lease amount to reflect the value placed on the sublease. Anderson also noted that the administration should provide for a fee to recoup administrative and legal fees for preparing the documents associated with assignments and subleases. Finally, Anderson asked how the city had arrived at the $1.50 per square foot for the lease rate. Jones stated that the administration supported the need to provide for prepayment of taxes and fees before approval of and lease action. He also supported the recommendation that sublease values be forwarded to the city, but objected to an adjustment of lease rates prior to scheduled reappraisal times. In response to Anderson's question regarding the $1.50 per square foot lease rate, Jones noted that this was an arbitrary number which would be adjusted once an appraisal was forthcoming, MOTION (Anderson/Sieminski) To amend by changing the lease rate to $2.00 per square foot. Motion Failed. MOTION (Anderson/Sieminski) YES: Anderson, Sieminski NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien To amend the lease to require that, before a sublease or assignment is presented to the Council for consideration, the city must verify that the lessee is current in the payment of sales tax, property tax and lease fees to the city and the city must be notified in writing of the value of such sublease or assignment received by the lessee, that lease fees to the city not be immediately adjusted to reflect any in- crease in value, and that the city be reim- bursed for any administrative or legal fees incurred as a result of the requested assignment or sublease. 157 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 157 Motion Failed. VOTE ON RESOLUTION Motion Passed. ORDINANCES FOR INTRODUCTION YES: Anderson, Krasnansky, Sieminski NO: Bencardino, Crane, Darling, O'Brien YES: Anderson, Bencardino, O'Brien, Sieminski NO: Crane, Darling, Krasnansky Ordinance No. 94-23 amending Seward City Code Chapter 5.40, Visitor Assessment Fee, by increasing the amount of the assessment and providing for the dedication of assessment fees collected to the Chamber of Commerce. MOTION (Anderson/Krasnansky) Introduce Ordinance No. 94-23 Anderson explained that she had sponsored this ordinance to provide the funding requested by the Chamber of Commerce. She stated that she would not expect this increase to take effect until January 1, 1995. VOTE ON MOTION Motion Failed. YES: Anderson NO: Bencardino, Crane, Darling, Kras- nansky, O'Brien, Sieminski Ordinance No. 94-24 amending Seward City Code § 8.10.015, prohibiting sales and solicitation of funds by vendors on city property except for special holiday events. MOTION (Krasnansky /Bencardino) MOTION (Krasnansky /Sieminski) Introduce Ordinance No. 94-24 To amend to read: "Except during special holiday events receiving prior approval from the city council and sponsored by a local nonprofit organization, solicitation of funds or sales on property owned or controlled by the city is prohibited." i : City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 158 Motion Passed. YES: Anderson, Bencardino, Krasnan- sky, O'Brien, Sieminski NO: Crane, Darling Anderson spoke against introduction of the ordinance and suggested referring this issue to the Planning Commission with a request that the Commission recommend areas suitable for vendors. VOTE ON ORDINANCE AS AMENDED Motion Failed. YES: Krasnansky RESOLUTIONS Resolution No. 94 -068 consenting to the sublet of a portion of Alaska Treks N Voyages lease site to Donna Marek, dba Nibbles & Chips. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -068 Sieminski objected and stated that this assignment would place a vendor in a parking lot, and this seemed contrary to other recent actions of the Council. VOTE ON MOTION Motion Passed. UNFINISHED BUSINESS NEW BUSINESS NO: Anderson, Bencardino, Crane, Darling, O'Brien, Sieminski YES: Bencardino, Darling, Krasnansky, O'Brien NO: Anderson, Crane, Sieminski Appointment of Planning Commissioner The Mayor noted that two applications had been received for the vacant Planning Commission seat. Each Councilmember wrote the name of one applicant on a piece of paper which was then signed and passed to the City Clerk. Murphy read the votes aloud as follows: William Shattuck Bencardino, Krasnansky, Sieminski Shannon Skibeness Anderson, Crane, Darling, O'Brien 159 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 1 59 MOTION (Krasnansky /Bencardino) Motion Passed. Confirm the appointment of Shannon Skibeness to a seat on the Planning Com- mission for a term to expire in February 1995. Unanimously Claim for damages totalling $21,034.82 as filed by Louis E. Thorn (Thorn's Showcase Lounge) MOTION (Sieminski/Anderson) Motion Failed. MOTION (Krasnansky/Darling) To refer this claim to the insurance com- pany for adjustment. YES: Anderson, Crane, Sieminski NO: Bencardino, Darling, Krasnansky, O'Brien To pay the damage claim as filed. Gene Thorn, 208 Fourth Avenue, claimant, reviewed the events leading to his claim. Roland Peterson, employee of Thorn's Showcase Lounge, stated that he had assisted the plumber with his snaking operation and was positive that the blockage was on the city's side of the line. City Engineering and Utilities Manager Calvert reviewed the city's position with respect to the claim and read a letter from local plumber Steve Lemme who had responded to the problem which stated that it was impossible for him to determine where the blockage had occurred. Lemme's letter went on to state that he had always found the city crews to be fair and honest in their dealings with the public and had no reason to doubt the statements made by Public Works Superintendent Ainsworth who had also responded to the can from Mr. Thorn and had ascertained through dye tests that the problem was on Thorn's side of the line. VOTE ON MOTION Motion Failed. All voted NO. Inlet Fish Producers. Inc.'s lease request (SMIC) MOTION (O'Brien/Darling) To instruct the administration to negotiate a lease with Inlet Fish Producers as rec- ommended by the Planning Commission. 160 City of Seward, Alaska City Council Minutes May 23, 1994 Volume 30, Page 160 Anderson noted that Inlet had already taken possession of the lease property and she objected to a potential lessee occupying city lease property prior to approval of the lease by the City Council. Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski CITY MANAGER REPORTS JONES presented a legislative session update. COUNCIL DISCUSSION CITIZENS' DISCUSSION WALTER SCZAWINSKI, Woodland Hills, stated that the city should have requested bids for the Ferguson lease site. ELAINE NELSON, Director, Chamber of Commerce, 209 Ravina, stated that, when the public hearing was opened for comments on the general fund, she had not understood that this was to be the Chamber's only time to respond to questions posed by the Council at its last budget work session. She requested time on the next agenda for a presentation. In response to her question regarding apartment rentals by the day, Murphy responded that the owners of the apartments would be required to obtain a city business license and would be required to pay the lodging assessment fee. Nelson suggested that the impounded vehicles, pipe and bone yard located at the city shop be transferred and stored at the back of the SMIC industrial area in a fenced location. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS ADJOURNMENT The meeting was adjourned at 11:05 p.m. and, after a short recess, the Council reconvened in Executive Session to discuss the Exxon litigation. hy, CM / Dave W. Crane �9� �•, Mayor s ® � ►5'a o A A • � e °• v - �;aQtw®eg ►�® 161 City of Seward, Alaska June 13, 1994 City Council Minutes Volume 30, Page 161 CALL TO ORDER The June 13, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Minkner, City Attorney Linda S. Murphy, City Clerk ABSENT was: Patrick O'Brien (excused) CITIZENS' COMMENTS Louis Bencardino James Krasnansky Agenda items not scheduled for public hearing None Items other than those appearing on the agenda ELAINE NELSON, 209 Ravina, Chairman of the Chamber, thanked the city for its help during the "Destination Seward" celebration. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agenda as presented. 162 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 162 Anderson added Resolution No. 94 -084 endorsing a new borough sales tax ordinance, to the regular meeting agenda. Anderson also moved Resolution No. 94 -077 and No. 94 -079 from the consent agenda to the regular meeting agenda. Darling and Murphy both noted technical changes to the minutes, and Murphy assured the Council that the changes would be made prior to printing in the minute books. Sieminski added a discussion of Nash Road Small Boat Harbor to "Unfinished Business ". Sieminski also asked for an executive session to review the status of the missing city funds investigation. Jones noted a substitute Resolution No. 94 -075 setting the correct new ranges for Police Department reclassifications. Jones also requested an executive session to discuss the pending Exxon Valdez litigation. MOTION (Krasnansky /Bencardino) To meet in executive session immediately following the close of regular business to discuss the pending Exxon Valdez litiga- tion. Motion Passed. Unanimously VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimously The Clerk read the following approved consent agenda items: The May 9 and 13, 1994, minutes were approved as corrected; Ordinance No. 94 -25 revising Seward City Code § 15.10.225, Land Uses Allowed Table (Seward Zoning Code), was introduced and set for public hearing on June 27, 1994; Ordinance No. 94 -26 revising Seward City Code § 15.20.140, Definitions (Seward Zoning Code), was introduced and set for public hearing on June 27, 1994; Ordinance No. 94 -27 amending the official Seward Zoning Map to rezone to Urban Residential all 2- family and multi - family lands located south of the Small Boat Harbor and which are designated Urban Residential in the Land Use Plan, was introduced and set for public hearing on June 27, 1994; Resolution No. 94 -073 urging the Kenai Peninsula Borough to provide a site in the old Seward Landfill for a public shooting range, was approved; 163 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 163 Resolution No. 94 -074 reclassifying the parks and recreation program coordinator position, was approved; Resolution No. 94 -075 (Substitute) reclassifying certain police department positions, was approved; Resolution No. 94 -076 approving an agreement with the Alaska Municipal League Joint Insurance Association to provide the city's additional insurance coverage needs, was approved; Resolution No. 94 -078 consenting to the assignment of lease interest of Leases RE67 -038 and RE75 -010 from Juris Mindenbergs to National Bank of Alaska for security purposes, was approved; Resolution No. 94 -080 extending the contract with Dane Amos, dba AMOS Computer Consultants, for an additional one -year period expiring on June 30, 1995, was approved; Resolution No. 94 -081 authorizing the purchase of a vehicle for the Fire Department without full utilization of city bid procedures, was approved; and Resolution No. 94 -083 accepting the Summer Youth Employment Training Program grant and appropriating funds, was approved. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. Reilly noted that he had reviewed the resolution requesting the borough to designate a site for a shooting range and suggested that oversight of the shooting range might more appropriately fall under the purview of the city rather than the borough. Anderson, Bencardino and Darling objected and stated that they would prefer for the borough to deal directly with the citizen group seeking a place to conduct target practice. SPECIAL ORDERS AND PUBLIC HEARINGS Proclamation - Sean Gifford Recognition Day The mayor presented a proclamation designating June 20, 1994, as Sean Gifford Recognition Day to commemorate Sean's achievements as an Eagle Scout. PRESENTATIONS WITH PRIOR NOTICE ONLY Elaine Nelson, Executive Director of the Chamber of Commerce - Chamber Work Plan Update Nelson and John Cutter, Chamber Treasurer, requested Council consideration of a funding agreement between the city and the Chamber. In response to a question from Sieminski, Nelson stated that the Chamber was requesting a portion of both the increased camper fees and the newly enacted visitor assessments. Sieminski noted that these revenues were all accounted for in the approved FY 1995 budget. Anderson complimented the Chamber on its 164 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 164 new brochure and the funding agreement. She added, however, that she shared Sieminski's concerns regarding the source of the funding. In response to a question from Anderson, Jones stated that he had no specific recommendations regarding a source of funding at this time. He noted that any additional funds appropriated to the Chamber would be a direct hit to the general fund and not to any one area of the budget. Sieminski suggested placing a tax initiative on the regular election ballot to cover the cost of the requested increased Chamber donation. Anderson stated that she liked the funding agreement concept; however, the Chamber had failed to support the sales tax increase and had failed to take a position on user fees. She suggested that the Chamber identify a new funding source to cover its request for city support. The administration was instructed to work with the Chamber to develop a plan for funding and to bring this plan back to the Council for consideration. IRIS DARLING, President of the Chamber of Commerce, stated that the Chamber was not asking for a handout but for assistance in meeting the needs of the city's visitors. She stated that, without the services provided by the Chamber, the city would need increased staff and other resources, and, without the visitors, there would be no sales tax revenues for city operations. Richard Jones, Wesley /Seward General Hospital Administrator - Community Hospital Survey Report and Strategic Plan Jones gave an overview of the hospital's community survey which had been conducted in January by the University of Washington Medical School. He noted that previous surveys were conducted in 1986 and 1990, and the results of this survey were compared with 50 other similar communities. After citing the statistics gleaned from the report, Jones noted the problems identified by the survey and stated that it was now up to the hospital to accept the criticisms and to develop action plans to address these problem areas. Jones also briefly reviewed the strategic planning process and goals. Crane invited the public to attend the hospital board/council work session on June 21st. Sieminski asked the hospital to provide a copy of the survey to the library for public review. ORDINANCES FOR INTRODUCTION RESOLUTIONS Resolution No. 94- 077 establishing liability insurance policy limits for leases, permits, contracts and encroachments. MOTION (Anderson/Bencardino) Approve Resolution No. 94 -077 Anderson stated that she was concerned that the $1 Million minimum liability insurance appeared to be excessive. Jones stated that the information he had received was that the cost for the increment between $500,000 and $1 Million was not substantial. Finance Director Rick 165 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 165 Gifford stated that the industry trend was to require $1 Million of coverage since legal fees alone for most trials were in the neighborhood of $250,000, leaving only $750,000 for settlement. He noted that, occasionally, the city would recommend an exception to this rule when the use warranted less coverage because of a reduced risk to the city; however, generally, $1 Million should be required. Crane noted that he had initially had the same concern as Anderson; however, upon reflection, he supported the resolution. VOTE ON MOTION Motion Passed. Unanimously RECESS: The meeting was recessed at 8:48 p.m. and reconvened at 9:00 p.m. Resolution No. 94 -079 amending the city's lease procedures by establishing city lease administration policies. MOTION (Anderson/Krasnansky) Approve Resolution No. 94 -079 Anderson stated that the city was on the right track, but she still had some concerns about the recommended policies. MOTION (Anderson/Krasnansky) To amend the policies to provide that any third party assignment of a lease involving original leased property should be brought back to the Council for approval, incor- porating the provisions of Section B.6. which required that the assignment and lease amounts be provided to the city for consideration during fair market value determinations. Jones stated that this amendment would complicate matters, and the aim of the resolution was to simplify the lease management process. Anderson stated that she wanted the information regarding assignments and subleases and the values placed on the leases by the original lessees brought forward in a public forum. Krasnansky stated that he wanted this information provided to the Council on the consent agenda, but did not see a need for Council approval. 166 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 166 VOTE ON AMENDMENT Motion Failed. MOTION (Krasnansky/Darling) YES: Anderson, Bencardino, Darling NO: Crane, Krasnansky, Sieminski To add a provision to Section 6 requiring that lease assignment information be presented to the City Council for infor- mation. Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, Siemmski NO: Anderson In response to a question from Anderson, Jones stated that the administration took an aggressive stance in determining fair market value for the purposes of estimating the deposit required of potential lessees. Darling asked how the fees mentioned in item "A" were to be determined. Jones stated that this amount would vary depending on whether legal assistance was required or other complications arose. Sieminski asked what city properties were available for leasing. Jones stated that an inventory was being developed and the administration would be making recommendations to the Council regarding property available for leasing and property recommended for sale prior to the end of the summer. VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimously Resolution No. 94 -082 amending the FY 1995 capital budget to cover increased costs of construction of Waterfront Park public restrooms and awarding a contract to Swenson Construction Company. MOTION (Krasnansky /Anderson) Approve Resolution No. 94 -082 Following lengthy discussion regarding the failure of the city to accurately estimate the cost of this project before requesting grant funds, Bencardino suggested that all grant requests for capital improvements be reviewed by the City Engineer and that the Engineer concur with estimated construction costs prior to filing the grant request. Jones stated that this would become part of the administrative process, 167 City of Seward, Alaska June 13, 1994 VOTE ON MOTION Motion Passed. City Council Minutes Volume 30, Page 167 Unanimously Resolution No. 94 -084 endorsing Kenai Peninsula Borough Ordinance No. 94-27. MOTION (Anderson/Krasnansky) Approve Resolution No. 94 -084 Jones stated that the Borough was considering enactment of an ordinance amending the KPB sales tax code. He stated that, since this action would take place prior to the next council meeting, he was forced to place this before the Council as an agenda addition. Jones stated that the new ordinance defined the place of sale for recreational sales as the site where the activity took place, thus assuring that charter boat operators and others whose offices were outside the city limits would be required to collect and pay city sales taxes. VOTE ON MOTION Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Sieminski NO: Krasnansky UNFINISHED BUSINESS Nash Road Small Boat Harbor Sieminski stated that he wished to discuss the two letters recently copied to the Council (Al Schafer's letter to City Manager Jones and Councilmember Darling's subsequent letter to the Manager and Council). Sieminski stated that the city did not appear to be getting anywhere with this project. Jones stated that the approved schedule required Schafer to present a development plan to the city by June 15th, and Schafer had indicated that he intended to do this. Jones stated that, once that plan was received, it would be reviewed by the administration and presented to the Council. If Council then approved the plan, it would be up to Schafer and the Darling family to decide jointly how and/or if they were going to proceed with the permitting process. NEW BUSINESS Appointment of a city representative to the Cook Inlet Aquaculture Association Wayne Carpenter was appointed to represent the city of Seward on the Cook Inlet Aquaculture Association Board of Directors by unanimous consent. Claim for damages totalling $837.40 as filed by representatives of the F/V "Walter N" . _•• City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 168 MOTION (Krasnansky /Bencardino) Motion Passed. Pay the claim for damages totalling $837.40 for damages sustained by the F/V "Walter N ". YES: Anderson, Bencardino, Crane, Darling, Krasnansky NO: Sieminski Seward General Hospital Presentation - Councilmember Anderson, Hospital Board Liaison Anderson noted her written report which she read for the benefit of the public. The report outlined the progress that had been made by the hospital and the financial difficulties it was currently experiencing. She stated that these issues would be addressed more fully at the upcoming joint work session and that a request for additional hospital funding would come before the Council for action at the next meeting. Crane thanked Anderson for the report. CITY MANAGER REPORTS JONES reported that Annie Martin was retiring at the end of the week after ten years of city service. He wished her well in her retirement. JONES stated that he had begun collecting press releases regarding the two recent spills in Valdez and would make the reports available to any Councilmember or others interested in reading them. JONES noted that the Rotary Club would be cleaning up the Benny Benson memorial in response to concerns raised by Walt Sczawinski. JONES commended Library Director Nicolas and the volunteers who participated in painting the exterior of the library. JONES stated that he would prepare a report regarding the missing deposit incident after all disciplinary arbitration processes had been completed. JONES stated that the administration would be recommending re- channelling Resurrection River into its original channel to take care of local flooding problems. JONES stated that the Seward Forest Products leases had finally been signed by the lessees and returned to the city. He stated that he was having an on -going dialogue with SFP's management and he hoped to have something to the Council for consideration by the next meeting. JONES noted the scheduled June 30th work session with SHAMS and the Planning Commission. He stated that he would distribute preliminary design and budget information to the Council prior to the work session. 169 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 16 JONES reported on the progress made thus far with regards to street paving and added that he hoped to see this project completed this season. JONES noted that the police department had received a mobile video system from the AML/JIA for use in city police vehicles as a tool for collecting information regarding criminal proceedings and monitoring the behavior of the police force. JONES noted that the city had received notices of the operating schedule for the Youth Center which was due to reopen on July Ist. JONES noted that the city had issued 108 business licenses and had received an additional 160 applications which were being held in abeyance until additional documentation was received. JONES noted that he hoped to conclude the Small Boat Harbor Management Agreement negotiations soon. COUNCIL DISCUSSION DARLING commended the library and the community volunteers for their work on the library painting project. He also noted that the "Destination Seward" celebration had been enjoyable. BENCARDINO noted that the U.S. Forest Service had made a presentation and had given options for addressing the beetle kill problem. He requested a resolution for the next agenda recommending Option No. 7. BENCARDINO noted that there was still work to be done at the Forest Acres Park area and suggested that the administration direct the Parks and Recreation Department and the Street Department to complete the job. He also suggested that those required to perform community service be used to help with this project. BENCARDINO noted the need to clear additional trees and brush around the lagoon and at Nash Road. ANDERSON stated that she would like to see an executive session at the next meeting to receive an update on the missing deposit issue. Anderson also asked for figures on lodging assessment applications. Jones noted that 15 applications had been received; however, he did not know the total number of lodging establishments in town. SIENIINSKI asked who was responsible for policing the harbor parking lots to make sure no one camped there at night. Jones replied that the Police Department took care of this. SIEIVIINSKI concurred that the executive session regarding the missing funds should be held at the next meeting. 170 City of Seward, Alaska City Council Minutes June 13, 1994 Volum 30, Page 170 KRASNANSKY recognized the Harbor Staff and the Police Department for their response to a recent incident at the harbor. ANDERSON noted that she had received complaints about campers in the north harbor parking lot. She stated that some campers had set up barbecues and parked in this lot for several days. ANDERSON asked how much state revenue sharing the city would be receiving. Finance Director Gifford stated that the legislature had approved revenue sharing at 10% below the level received in FY 1994. However, the governor could still line item veto this appropriation. ANDERSON asked for a report on the fish tax. Gifford stated that he had preliminary numbers, but nothing final. He estimated that the city would receive approximately $128,000 of the $175,000 budgeted. Anderson asked to be kept informed regarding both the fish tax and revenue sharing. ANDERSON reminded Council that the FY 1995 budget reflected a $30 bed assessment requiring an ordinance to amend the rate. ANDERSON stated that she would like to see a prison task force put together to address prison concerns. ANDERSON stated that she had some concerns regarding the lease arrangements between the city and the Army and Air Force. She stated that she did not feel this was the highest and best use of this property. ANDERSON stated that the auditors had suggested an audit committee of local citizens and she endorsed this idea. She stated that this committee could address other areas of concern such as streamlining the administration, the advisability of a management/personnel study, and ways to get the most from the city's tax dollars. ANDERSON stated that the masonic building was for sale and she asked for a report of the manager's inspection of the building and its suitability for use as a teen center. Jones stated that he had toured the building with Parks and Recreation Director Sturdy, Building Inspector Ferguson and local realtor Leo Wakefield. He stated that the asking price was $175,000 and added that the building, with some minor modifications, could be made functional as a Youth Center. He noted that the city did not have $175,000 to invest in real estate; however, there were currently some discussions under way between the Teen Council, SAAMS and others to define a campaign to relocate the Youth Center. ANDERSON stated that she had been receiving complaints regarding vendors on private property. She suggested having the Planning Commission address this issue and identify a place where vendors could operate on public property. 171 City of Seward, Alaska City Council Minutes June 13, 1994 Volume 30, Page 171 ANDERSON suggested a regular work session prior to the regular council meetings to informally discuss agenda items with the administration and the attorney. It was the consensus of the Council to meet at 6:00 p.m. prior to the first Council meeting each month in a work session to discuss agenda items. CRANE stated that he had met with Yanez and certain U.S. Army personnel about one month ago regarding the military's plans to upgrade the recreation camp. He stated that the Army's $9 Million was on hold until the Air Force appropriated its $3 Million share of the project. He added that the Army planned to replace the building on the roadway and to replace the quonset huts with individual cabins. CITIZENS' DISCUSSION None COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 10:10 p.m. and, after a short recess, the Council reconvened in executive session to discuss pending Exxon Valdez litigation. City of Seward, Alaska June 27, 1994 L� 0� adi Dave W. Crane Mayor City Council Minutes Volume 30, Page 171 CALL TO ORDER The June 27, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Chief Walker led the pledge of allegiance to the flag. 172 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 172 ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski Agenda items not scheduled for public hearing ERIC OLSON, 315 Second Avenue, representing Seward Chamber of Commerce, presented the Chamber's budget and funding request. He stated that the Chamber now had a balanced operating budget and had redefined its mission to focus on providing support to visitors rather than directing its efforts towards increasing the numbers of visitors. He stated that the Chamber Board was concerned about the Chamber's long term debt including the balance owed on the trolley and the debt to the Fish Restoration Fund. Olson stated that the Chamber was, therefore, requesting that the city write off its $14,000 loan and leave in place the $10,000 grant currently budgeted. JOHN CUTTER, 2003 Dora Way, answered questions regarding the $14,000 Chamber debt. Items other than those appearing on the agenda BOB FERGUSON, Exit Glacier Road, stated that he would like a full opportunity to respond to any action regarding his lease and objected to the addition of any agenda item at this meeting which would affect his lease. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agenda as presented. The following items were moved from the consent agenda to the regular meeting agenda at the request of the Council: 173 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 173 Resolution No. 94 -089 (Reclassification of parking enforcement officer position) Rotary agreement to maintain the Lagoon Boardwalk and Park and the Benny Benson Memorial MOTION (Anderson/O'Brien) To meet in an executive session immedi- ately following the close of regular busi- ness to discuss personnel issues and poten- tial litigation with regards to the city's lease of property to Bob Ferguson. VOTE ON MOTION FOR EXECUTIVE SESSION Motion Passed. Unanimous Anderson asked that both Ferguson and City Manager Jones be allowed to attend the executive session. Sieminski added a discussion of the Ferguson lease to Unfinished Business. Jones requested the addition of Resolution No. 94 -095 rescinding the Ferguson lease, to the regular meeting agenda. He stated that he had received a question from a local citizen regarding the possible conflict of interest which might exist if an employee of the city were allowed to lease city property and he had asked the City Attorney to investigate and render a written opinion. Jones noted that the attorney had recommended that the Council rescind the lease and request proposals if the Council found it desirable to lease the property in question. Jones stated that Ferguson was notified of the administration's concerns approximately two weeks after the original Council action. Krasnansky objected to adding the resolution to the agenda. MOTION (Crane /Bencardino) Add Resolution No. 94095 to the regular meeting agenda. O'Brien objected to rescinding a prior Council action without prior notice. Krasnansky concurred. VOTE ON MOTION TO ADD RESOLUTION NO. 94-095 Motion Failed. All voted NO. Anderson stated that she would like to discuss the recent water account adjustment which had caused so much public discussion. Jones stated that he would be providing a detailed report. Anderson asked to add this discussion to New Business. 174 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 174 VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS AMENDED. Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The June 13, 1994, minutes were approved as written; Ordinance No. 94 -28 amending Seward City Code § 2.30.112, changing the time of the regular community hospital board meeting, was introduced and set for public hearing on July 11, 1994; Resolution No. 94 -088 approving an extension of the jail contract through October 31, 1994, was approved; Resolution No. 94 -091 approving the purchase of materials for B Float renovations, was approved; and Resolution No. 94 -092 recommending Forest Service Alternative No. 7 as the preferred solution to the spruce bark beetle epidemic on the Kenai Peninsula, was approved. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present and no report was given. SPECIAL ORDERS AND PUBLIC HEARINGS Certificates of recognition for Jacob Dotamain. Dana Tuck and Donny Wallace The Mayor presented certificates of appreciation to the above listed special olympians. Ordinance No. 94 -25 amending Seward City Code § 15.10.225, Land Uses Allowed (Zoning Code). 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94-25 VOTE ON MOTION TO ENACT ORDINANCE Motion Passed. Unanimous 175 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 175 Ordinance No. 94 -26 amending Seward City Code § 15.10.140, Definitions (Zoning Code). 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. MOTION (Krasnansky /Anderson) Enact Ordinance No. 94 -26 VOTE ON MOTION TO ENACT ORDINANCE Motion Passed. Unanimous Ordinance No. 94-27 amending the Seward Zoning Maps by rezoning to Urban Residential all R2 and R3 Zoning Districts within the Urban Residential Land Use Plan areas, 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. MOTION (Krasnansky /Bencardmo) Enact Ordinance No. 94-27 VOTE ON MOTION TO ENACT ORDINANCE Motion Passed. Unanimous Resolution No. 94 -085 approving a five -year lease extension to the United States Government for continued Air Force Recreation Camp trailer housing. 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. MOTION (Sieminski/Darling) Approve Resolution No. 94 -085 Bencardino objected to extending this lease since the Army and Air Force had failed to make the promised improvements to the leased property. Jones noted that the Army had received partial funding and some improvements would be made; however, Congress had failed to make funding available for all of the promised improvements. Krasnansky stated that the Army had assured the city two years ago that substantial improvements, including removal of the quonset huts, would be made. 176 City of Seward, Alaska City Council Minutes .Lune 27, 1994 Volume 30, Page 176 Anderson spoke in opposition to the resolution. She stated that the city was under no obligation to extend this use for another five years. She also objected to the low lease rate and questioned the method used by the administration to determine this rate. Community Planning Director Kerry Martin briefly reviewed the recreation camp lease rate history. He explained that this particular lease covered a narrow strip of property adjacent to the main lease site. He added that, if the Council rejected the lease extension, the city would then insist that the Air Force move the trailers from this lease site to the primary lease site. O'Brien recommended that the Council reject the lease and send a message to the military that the city would no longer renew its leases without seeing promised improvements to the campground site. Anderson concurred. Sieminski objected to denying the lease and stated that the city had no foreseeable use for this property during the five year term of the lease. Crane stated that he would like to postpone this issue in order to give the Air Force a chance to make a presentation at the next meeting. MOTION (Anderson/Bencardino) Postpone until July 11, 1994. VOTE ON MOTION TO POSTPONE Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Sieminski NO: Krasnansky, O'Brien Resolution No. 94 -086 approving a lease of property at the Seward Marine Industrial Center to Inlet Fish Producers, Inc. 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. MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -086 Anderson asked how this lease fee compared to other lease rates at SMIC. Harbormaster Foster Singleton replied that the city had an arbitrated rate of $0.16 per square foot with Seward Ship's Drydock. He added that Inlet's primary lease site rate was $0.40 per square foot. He noted that this proposed new lease property was not a very desirable site and would be used primarily for storage. In response to a question from Anderson, he noted that the city had requested that Inlet move certain material it had stored adjacent to the North Dock onto the City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 177 proposed lease site, and he assured the Council that Inlet would pay storage fees for use of the property up until the effective date of the lease. Anderson asked if this property was subject to subleasing. Jones stated that any sublet of this property would come back to the Council and would not be approved by the administra- tion alone. In response to a question from Bencardino, Singleton stated that Inlet would fill the property and install a fence. He also noted that the $0.20 per square foot lease rate would be adjusted in July 1995 based on a fair market appraisal of the property. Bencardino stated that the city needed some system of leasing property and setting lease rates. He stated that he could not approve a lease rate less than $0.50 per square foot. Jones stated that the administration had negotiated the lease rate for this piece of property and the primary lease site concurrently, and the relative value of this property as compared to the primary lease site was reasonable. Sieminski objected to any long term lease of property for storage space. MOTION (Anderson/Sieminski) Amend the lease by deleting Section 2.4 (option to extend). VOTE ON MOTION TO AMEND Motion Passed. YES: Anderson, Bencardino, O'Brien, Sieminski NO: Crane, Darling, Krasnansky VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimous Resolution No. 94 -087 approving a lease of property in the Marina Subdivision to Tanya Sandefur. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. TANYA SANDEFUR, Small Boat Harbor, noted that the Council packet contained copies of a petition signed by 313 members of the boating public supporting her request for a lease. She asked the Council to disregard the city administration's recommendation. Sandefur stated that she was not responsible for the city's failure to negotiate the lease in a timely manner. City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 178 She stated that she had received her copy of the lease some 13 months after Council instructed the administration to negotiate the lease. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /O'Brien) Approve Resolution No. 94 -087 MOTION (Krasnansky/Darling) Amend the lease by increasing the lease rate from $0.42 to $0.84 (Section 3.1 of the lease). Krasnansky stated that this property was much more valuable than the $0.42 per square foot rate set forth in the lease. Anderson concurred and noted that the administration had recommended a lease rate of $1.50 on the Ferguson lease on the east side of the harbor. She added that this property was worth at least as much as the Ferguson site. MOTION (Anderson/Sieminski) Amend the proposed amendment by strik- ing $0.84 and inserting $1.50. O'Brien stated that no one on Council had any experience in evaluating real estate. He stated that he merely wanted the city to get a fair price for the property and he objected to attempting to get the highest price possible whenever a prospective lessee approached the city. Anderson stated that it was the administration's responsibility to follow through with appraisals of these properties and the Council should force the issue. In response to a question from Crane, Community Development Director Martin stated that he was putting together a set of appraisal standards and an RFP for the appraisal of all city properties. He estimated that he had completed 60% of this project. O'Brien agreed that all city properties should be appraised, but he stated that there was no need to provide a set of standards for the appraisers. Crane concurred with O'Brien and stated that completion of these appraisals should be a top priority of the administration. He added that he could not support either amendment. Anderson stated that $1.50 per square foot was a rate set by the administration on a piece of property near this particular site. Krasnansky stated that the only way to determine fair market lease value was to test the market to see what the market would bear. Bencardino concurred with Anderson and recommended that the Council stick with the $1,50 rate set for the Ferguson lease. City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 179 O'Brien stated that the Ferguson lease indicated that the lease rate would be adjusted based on a future appraisal. He repeated his recommendation that the city ask for a fee market appraisal on a set list of properties and that the administration forget about developing a set of appraisal standards. VOTE ON SECONDARY AMENDMENT Motion Failed. YES: Anderson, Bencardino NO: Crane, Darling, Krasnansky, O'Brien, Sieminski VOTE ON PRIMARY AMENDMENT Motion Failed. YES: Anderson, Bencardino, Krasnan- sky NO: Crane, Darling, O'Brien, Siemin- ski Anderson objected to extending the lease and stated that this was not the highest and best use for this property. In response to a question from Anderson, Jones stated that the lessee had assumed full environmental responsibility by failing to do a baseline study under the original lease. In response to a question from Sieminski, Singleton stated that this was a simple uplands lease and there was no equipment tied to it. He added that the city was not mandated to run the travelift as a part of the lease agreement. In response to a question from Anderson, Singleton stated that there were currently a couple of subleases of the property from Sandefur to others. Darling stated that there were so many things happening in this area at the present time that he could not support this lease extension. VOTE ON MOTION TO APPROVE RESOLUTION Motion Failed. YES: O'Brien NO: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski RECESS The meeting was recessed at 9:35 p.m, and reconvened at 9:45 p.m. City of Seward, Alaska City Council Minutes .June 27, 1994 Volume 30, Page 180 RESOLUTIONS Resolution No. 94 -089 reclassifying the Police Department Parking Enforcement Officer position. MOTION (Anderson/Bencardino) Approve Resolution No. 94 -089 Anderson asked how much money was involved in the increase from Range 11 to Range 14 and why this was not included in a prior request to reclassify Police Department positions. Chief Walker stated that the reclassification would increase the hourly rate of pay from $11.97 to $13.88. He stated that he had inadvertently failed to include this position on the list of prior reclassifications. In response to questions from the Council, Walker stated that these parking enforcement officers needed no special training and were not certificated officers. He stated that he wished to bring them to a level consistent with corrections officers and dispatchers. Yanez stated that, when the reclassifications were presented to the Council during the budget work sessions, it was explained that the upgraded salaries were the result of a survey of other communities. He noted that parking enforcement officers could write tickets and assess penalties for violators and had considerable authority in these areas. Anderson stated that she would vote against the resolution. She stated that she felt casual employees such as these should be at the lower end of the pay scale. RECESS: At the request of the City Manager, the meeting was recessed at 9:55 p.m. and reconvened at 9:57 p.m. Jones stated that, during the budget process, the Council had approved an increase to Range 12.5, not Range 14. He asked for an amendment to change Range 14 to Range 12.5. MOTION (Crane /Krasnansky) Amend by striking "14" and inserting "12.5 ". VOTE ON MOTION TO AMEND Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Sieminski NO: Krasnansky, O'Brien VOTE ON MOTION TO APPROVE RESOLUTION AS AMENDED 181 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 181 Motion Failed. YES: Bencardino, Crane, Sieminski NO: Anderson, Darling, Krasnansky, O'Brien Resolution No. 94 -090 adopting the recommended plan for Forest Acres Campground and Park and appropriating $15,110 to the Parks and Recreation Department budget to remove existing damaged and fallen trees and branches from the Park. MOTION (Krasnansky /Anderson) Approve Resolution No. 94 -090 Krasnansky stated that he was happy to see this resolution before the Council and added that this project should have been handled in this manner from the beginning. Anderson state that she supported the resolution but wished that it had been brought forward during the budget process. Sieminski stated that he supported the resolution, but objected to taking funds from the General Fund Reserves. Bencardino stated that the city was only spending half of what was on paper unless the street department budget was being increased by this amount. He stated that this area was one of the first people saw when they entered Seward and it was an awful looking sight. Bencardino also objected to the proposed lagoon and suggested that the city continue to use the ditch line already present for drainage. O'Brien stated that he appreciated the plan and the effort to clean this area up; however, he was not interested in approving a $96,000 project and an additional $75,000 to $200,000 playing field. Jones stated that the initial reason for addressing this area was to improve the appearance of this high visibility area. He reminded council that any additional phases of the project would come back to the Council for approval prior to implementation. In response to a question from Crane, Jones stated that the city did not yet know what level of funding it would receive under Municipal Assistance and Revenue Sharing. Crane stated that he could not support this project until he knew how much money was being received from these state programs. MOTION (Anderson/Bencardino) Postpone until July 11, 1994. VOTE ON MOTION TO POSTPONE 182 City of Seward, Alaska City Council Minutes June 27, 1994 Volume 30, Page 182 Motion Failed. YES: Anderson, Bencardino, Crane NO: Darling, Krasnansky, O'Brien, Sieminski VOTE ON MOTION TO APPROVE RESOLUTION Motion Failed. YES: Anderson, Bencardino NO: Crane, Darling, Krasnansky, O'Brien, Sieminski Resolution No. 94 -093 approving a line of credit for Seward General Hospital and appropriating funds for hospital renovations. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -093 Richard Jones, hospital administrator, explained the hospital's funding request. In response to a question from O'Brien, Jones explained that the $36,000 for renovations included in the funding for the new x -ray equipment was to install lead lined housing for the equipment itself. He stated that this additional $50,000 was for those hospital areas affected by moving the x -ray equipment, particularly the changes in the emergency services section of the facility. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski NO: O'Brien Resolution No. 94 -094 amending the FY 1995 General Fund Budget and appropriating additional funds for the Chamber of Commerce. Since the resolution was not available for the public, Jones read the entire resolution aloud. MOTION (Anderson/Bencardino) Approve Resolution No. 94 -094 Krasnansky stated that this resolution should be made available for public comment and he suggested that action be postponed. MOTION (O'Brien/Krasnansky) Postpone until July 11, 1994. 183 City of Seward, Alaska June 27, 1994 City Council Minutes Volume 30, Page 183 VOTE ON MOTION TO POSTPONE Motion Failed. YES: Krasnansky, O'Brien NO: Anderson, Bencardino, Crane, Darling, Sieminski MOTION (Sieminski/Anderson) Amend by striking phrases in the fourth "Whereas" and in Section 2 regarding payback (writing off) of the original loan. VOTE ON MOTION TO AMEND RESOLUTION Motion Passed. YES: Anderson, Crane, O'Brien, Sieminski NO: Bencardino, Darling, Krasnansky Krasnansky objected to an interest free loan to any organization. Sieminsld disagreed and stated that it was appropriate to lend money to the Chamber. He noted that the Chamber performed a valuable service for the city. O'Brien objected to acting on this resolution at this time. MOTION (Darling / Krasnansky) VOTE ON MOTION TO RECONSIDER Motion Passed. Reconsider the motion to postpone. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski VOTE ON MOTION TO POSTPONE UNTIL 07/11/94 Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski NOTE It being 10:58 p.m., the Mayor moved directly to Citizens' Comments in accordance with SCC § 2.10.031 (mandatory adjournment by 11:00 p.m.). CITIZENS' DISCUSSION None City of Seward, Alaska June 27, 1994 City Council Minutes Volume 30, Page 184 ADJOURNMENT The meeting was adjourned at 11:00 p.m, and, after a short recess, the Council reconvened in executive session to discuss personnel issues and potential litigation with regards to the Ferguson lease. Ferguson was asked to be present for the executive session. a ye ( �Q. �ALt-r� Dave W. Crane Mayor • s : n s 3 City Council Minutes Volume 30, Page 184 CALL TO ORDER The July 11, 1994 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Bruce Sieminski comprising a quorum of the Council; and Louis Bencardino Patrick D. O'Brien Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk 185 City of Seward, Alaska City Council Minutes .July 11, 1994 Volume 30, Page 185 ABSENT James Krasnansky (excused) CITIZENS' COMMENTS None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Sieminski/Anderson) Approve the Agenda and Consent Agenda as presented. Crane deleted Resolution No. 94 -101 from the agenda and moved New Business Items A, B, and C (liquor license transfers) from the regular meeting agenda to the consent agenda. Sieminski added the following to Unfinished Business: 1. Nash Road Small Boat Harbor Update 2. Discussion of Finance Department missing deposit VOTE ON MOTION TO APPROVE AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The June 27, 1994, minutes were approved as written; Resolution No. 94 -095 reaffirming Resolution No. 94 -064 (Ferguson Lease), was approved; Resolution No. 94 -096 approving a one -year contract extension with Kent Dawson Company, Inc., for legislative lobbying services, was approved; Resolution No. 94 -097 authorizing the city manager to submit applications for U. S. Forest Service Mini Grants, was approved; Resolution No. 94 -098 approving a vendor permit for Qutekcak Native Tribe for activities during the Second Annual Native Sobriety Pow Wow, was approved; Resolution No. 94 -099 awarding a contract to R & M Consultants, Inc., for transmission line construction staking without full utilization of city bid procedures, was approved; Resolution No. 94 -100 approving additional audit and accounting assistance fees related to the FY 1993 city audit, was approved; no City of Seward, Alaska City Council Minutes July 11, 1994 Volume 30, Page 186 Application for transfer of liquor license from Niko's Nightclub to Christo's Palace was approved; Application for Restaurant Designation as filed by Christo's Palace was approved; and Application for transfer of liquor license from Joe Kim to Argyrios Danakos (Marina Restaurant) was approved. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present and no report was given. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94-28 amending Seward City Code Section 2.30.112, changing the time of the regular community hospital board 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. MOTION (O'Brien/Bencardino) Enact Ordinance No. 94-28 Motion Passed. Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Port & Commerce Advisory Board Annual Report Jim Pruitt, Chairman of the Port and Commerce Advisory Board, gave a brief overview of the Board's activities during the last fiscal year. He noted that the Board planned to begin conducting one evening meeting each month in Council Chambers and one luncheon meeting each month at the Harbor Dinner Club. Pruitt stated that the only requests for funding would be for port development and maintenance projects and not for activities directly related to the Board. Pruitt recommended that the Council vote to continue the Port and Commerce Advisory Board through Fiscal Year 1995. ,fames T Pruitt - Seward Ship's Drydock building update Pruitt asked the Council for a time extension for Seward Ship's Drydock's obligation to build a 300 foot covered work area on its lease site at SMIC. He stated that the building's supplier could no longer deliver as originally anticipated in June, forcing him to delay construction until next spring. He stated that both AIDEA and Key Bank had extended his loan agreements. Pruitt provided copies of documents supporting his request and the reasons behind it. 187 City of Seward, Alaska City Council Minutes .Duly 11, 1994 Volume 30, Page 187 In response to a question from Anderson, City Attorney Klinkner stated that the Council could modify the lease by granting additional time beyond the deadline set by the arbitrators for completion of building construction. O'Brien stated that he appreciated the predicament Pruitt was now in and asked if Pruitt could give the Council any assurance that he would actually complete the building if the Council agreed to the extension. Pruitt stated that he had already put approximately $300,000 into design of the building and had hired a contractor to erect the building once delivered. Dick Ruckman, representing Superstructures, Inc., confirmed Pruitt's reported problems with delivery of the building. He assured the Council that the building would be delivered in time to allow construction to begin in the spring. Leon Dazey, representing Varco - Pruden Buildings, also assured the Council that the building would be shipped as now promised so that construction could begin in the spring. He explained the delays occasioned by the need for an ICBO review. The Clerk was instructed to schedule a public hearing and provide for preparation of a lease amendment for consideration at the July 25th meeting. U. S. Air Force - Lease Update Jim Ward and Colonel Pat Coullahan, Elmendorf Air Force Base, updated the Council on the Air Force's long term plans for improvements at the Seward Recreation Camp. They stated that they had tentative approval to spend $1.4 Million for improvements to include replacement of the trailers with modular units and additional RV camper sites; however, if these funds were not appropriated, the Air Force intended to begin making improvements next year with non - appropriated funds. Anderson stated that this was not the highest and best use for this property and suggested that the Army and the Air Force move the recreation camp to property owned by the federal government. Coullahan replied that the U.S. Government had a large investment in infrastructure at this site and would be reluctant to lose that investment and incur the additional expense of putting in utilities, etc. at a new site. O'Brien suggested a 2 -year lease extension with a provision to extend for another 3 years if certain performance standards were met. There was no objection from the Air Force representatives. Darling stated that he would prefer to see this lease expire at the same time the lease on the main parcel expires. Sieminski stated that he saw no problem with the 5 -year extension and noted that the military had been good neighbors, had kept its property clean and had brought people to town. He recommended approving the extension as written. • City of Seward, Alaska City Council Minutes July 11, 1994 Volume 30, Page 188 UNFINISHED BUSINESS Items postponed from June 27, 1994, regular meeting Resolution No. 94 -085 approving a 5 -year lease extension to the U. S Government for continued Air Force Recreation Camp trailer housing. MOTION (Anderson/O'Brien) Amend Section 1, changing 5 years to 3 years, to expire September 30, 1997. VOTE ON AMENDMENT Motion Passed. Unanimous VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimous RECESS The meeting recessed at 8:55 p.m. and reconvened at 9:05 p.m. Resolution No. 94 -094 amending the FY 1995 general fund budget and appropriating funds in the amount of $14,000 for the Seward Chamber of Commerce. MOTION (Crane /Darling) Amend by deleting "which will be return- ed to the city" from the fourth "whereas" clause, deleting Sections 2 and 3 and renumbering Section 4 to Section 2, and changing the effective date from "July 1, 1994" to "immediately upon adoption ". VOTE ON AMENDMENT Motion Passed. YES: Anderson, Bencardino, Crane, Darling, O'Brien NO: Sieminski VOTE ON MOTION Motion Passed. YES: Anderson, Bencardino, Crane, Darling, O'Brien City of Seward, Alaska City Council Minutes July 11, 1994 Volume 30, Page 189 NO: Sieminski Items not completed from June 27 1994 regular meeting. City Charter Review The Clerk was instructed to schedule a work session to begin at 5:30 p.m. on July 25th, and the attorney and Clerk were instructed to prepare resolutions placing the recommended propositions on the October ballot. Aereement with the Seward Rotary Club for maintenance of the Lagoon Park, the Lagoon Boardwalk and the Benny Benson Memorial Sieminski stated that he wanted the public to know that the Rotary Club had taken on this project. Water Bill Adjustment Report Jones provided a history of the events leading to the water bill adjustment. Engineering and Utilities Manager Dave Calvert stated that he had made the decision to reduce Jim Pruitt's water bill by seventy -five percent because he saw this as a less costly solution to the dispute than extended litigation. O'Brien stated that Council should receive notification of billing problems or disputes in excess of $1,000. Anderson agreed that the administration should have the authority to correct billing errors no matter how large; however, negotiating a reduction in a bill should be brought to the Council for review and action. Bencardino stated that he did not want to do anything that would hamper negotiations of billing disputes, but agreed that the Council should be notified when the disputed amount was of significant size. The administration was instructed to develop procedures for the use of portable water meters and for handling negotiated settlements of utility bills and to bring the recommended procedures back to Council for review at the first meeting in September. Nash Road Small Boat Harbor In response to a question from Sieminski, Jones reported that Schafer had submitted his master plan on June 15th and the city had 90 days from that date to review and respond. He stated that the master plan would be presented to the City Council prior to September 15th for action. Once the plan was approved by the Council, Schafer could apply for a conditional use permit from the Planning Commission. Missing Deposit Jones reviewed the report contained in his June 23rd City Manager's Report regarding the missing deposit. NEW BUSINESS Continuation of Port and Commerce Advisory Board MOTION (O'Brien/Bencardino) To continue the Port and Commerce Advisory Board through June 30, 1995. Motion Passed. Unanimous 190 City of Seward, Alaska City Council Minutes July 11, 1994 Volume 30, Page 190 CITY MANAGER REPORTS JONES noted the schedule for completion of the FY 1994 audit which had been included in the Council packet. He also noted that he would be distributing a memorandum to the Council regarding levels of revenue sharing and fish tax which would be received by the city this year. Jones stated that the City Manager's Report prepared and distributed to the Council at the last meeting was available to the public upon request. Jones stated that the draft harbor management plan between the city and the state would be introduced at the next meeting and would be scheduled for approval on August 8th. COUNCIL DISCUSSION O'BRIEN asked if the lost oil skimmer had been found. Jones stated that the Coast Guard had given permission to another group to remove the skimmer without getting permission from the city. He added that the skimmer had now been returned to the city. O'BRIEN noted that Finance Director Gifford's term on the AMIJJIA Board was coming to an end and he asked that he not be allowed to continue participation on the Board. Anderson stated that Gifford's participation in this insurance group was very important given the insurance issues before the Council. She stated that she would agree with O'Brien if the city Finance Department was in the same shape as it was one year ago; however, improvements had been made in the department since that time. Crane asked that this be put on the next agenda for discussion. O'BRIEN stated that, in retrospect, he thought the city had made a mistake when it created the city business license. He suggested that the Council repeal the ordinance and return the money to all those who paid. He stated that he would like to make this an agenda item at a future Council meeting. BENCARDINO asked if the city was having trouble with the 50 -ton travelift. Harbormaster Singleton stated that there had been a problem with flat tires, but there had been no mechanical problems. He explained that there was a difference in net tonnage and displacement weight which sometimes led to misunderstandings. ANDERSON asked for a report at the next meeting regarding the status of business licenses and the two visitor assessments. ANDERSON stated that she disagreed with O'Brien with respect to the city business license; however she did not approve of enforcement as a criminal offense. ANDERSON noted that Council had approved a list of reclassifications for various positions in the police department which should have taken effect July 1, 1994. She asked for an explanation of the administration's decision not to fund the raises for employees of the Corrections Department. She stated that, during the budget work sessions, the Council was told 191 City of Seward, Alaska City Council Minutes July 11, 1994 Volwne 30, Page 191 that salaries in Corrections were being increased to retain qualified people and to be competitive with other communities. She stated that the city should fund all reclassifications or none of them. JONES stated that it was not the administration's intention to deprive any employee's reclassification which was requested or approved; however, the city had not received an increase in the State Jail Contract as anticipated. He claimed that the Council had been told from the beginning that these reclassifications were contingent upon an increased state contract. [NOTE: The resolution approving the reclassifications mentioned no such contingency and granted the reclassifications outright effective July 1, 1994.1 ANDERSON reported that the sawmill had been successful in obtaining reductions in the amount of property taxes owed for 1992 and 1993. She also stated that she would be meeting with the Borough Mayor, Borough Attorney and a member of the Central Peninsula Hospital Service Area Board regarding the possibility of including Seward General Hospital in a borough service area. Finally, Anderson stated that she was happy to see the additional parking spaces created in the harbor's north lot. SBMIINSKI commended the Volunteer Fire Department and other city volunteers and departments for their efforts over the 4th of July holiday weekend. CRANE stated that he objected to receiving agenda additions at the meeting and would, in the future, question any additions from either the administration or members of the City Council. CITIZENS' DISCUSSION ELAINE NELSON, Director of the Chamber of Commerce, thanked the Council for its approval of Resolution No. 94 -094 She reported that the 4th of July had been a success with a record number of runners and visitors. She thanked all who participated in any way. FLOYD AINSWORTH, 1705 Iron Drive, noted that ships' water was sold to the Alaska Railroad, not to individual the ships. He also stated that the city no longer used the portable meter discussed earlier in the meeting and all water meters currently in use were owned by the city and hooked up by city personnel. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS O'BRIEN thanked Ainsworth for his comments. CRANE also thanked everyone who helped make the Fourth of July a success this year. ADJOURNMENT 192 City of Seward, Alaska City Council Minutes July 11, 1994 Volume 30, Page 192 The meeting was adjourned at 10:50 p.m. I )p � IQ D W. Crane Mayor h w e 1ty�S �t`� . cD �Ta A,� G.. ivy.'& • 4 °i • vr/ 4 (ltty f y Sgv�d, Alaska July 25, 1994 CALL TO ORDER City Council Minutes Volume 30, Page 192 The July 25, 1994, regular meeting of the Seward City Council was called to order at 7:35 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Minkner, City Attorney Linda S. Murphy, City Clerk CITIZENS CONIMENTS Louis Bencardino James Krasnansky Bruce Sieminski Agenda stems not scheduled for public hearing 193 City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 193 MARILYN REYNOLDS, 225 Sixth Avenue, objected to the City Clerk's recommenda- tion that the Council exempt rentals of a single family residence from the requirement for a city business license. She stated that the requirement for a business license would give the city greater control of businesses in Seward and would increase sales tax revenues. BLAINE BARDARSON, 813 Government Road, voiced support for paving Dairy Hill Road. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agenda as presented. Anderson moved Resolution No. 94 -102 Resolution No. 94 -125 and Resolution No. 94- 131 to the regular meeting agenda. Krasnansky moved Resolution No. 94 -122 to the regular meeting agenda. O'Brien moved Resolution No. 94 -123 to the regular meeting agenda. Anderson moved Unfinished Business Item A (business license report) to the regular meeting agenda. VOTE ON MOTION TO APPROVE AGENDA AS AMENDED Motion Passed Unanimous The Clerk read the following approved consent agenda items: The July 11, 1994, minutes were approved as written; Ordinance No. 94 -29 amending the Seward Zoning Maps by rezoning Lot IA, Ennis Addition to Federal Addition; Lot 2, Block 2, Federal Addition; and Lots 1A -14, Block 3, Laubner Addition; from Rl to UR; and Lot 4, Jesse Lee heights Subdivision Addition No. 2, from AC to R3, to bring designated properties into conformance with the Land Use Plan, was introduced and set for public hearing on August 8, 1994; Resolution No. 94 -107 providing for the submission to the qualified voters of the City of Seward the question of amending § 1.5(g) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; 194 City of Seward, Alaska City Council Minutes July 25, 1994 Vo lume 30, Page 194 Resolution No. 94 -108 providing for the submission to the qualified voters of the City of Seward the question of amending § 1.9 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -109 providing for the submission to the qualified voters of the City of Seward the question of repealing § 1.10 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -110 providing for the submission to the qualified voters of the City of Seward the question of amending § 2.2(a) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -111 providing for the submission to the qualified voters of the City of Seward the question of repealing § 2.4 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -112 providing for the submission to the qualified voters of the City of Seward the question of amending § 2.9(a)(9) and 2.13(a) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -113 providing for the submission to the qualified voters of the City of Seward the question of amending § 3.1 and 3.2 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -114 providing for the submission to the qualified voters of the City of Seward the question of repealing § 3.4(a) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -115 providing for the submission to the qualified voters of the City of Seward the question of amending § 3.5(a) and 3.5(b) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -116 providing for the submission to the qualified voters of the City of Seward the question of amending § 3.6(c) and enacting Chapter 16 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -117 providing for the submission to the qualified voters of the City of Seward the question of repealing § 3.7(b) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -118 providing for the submission to the qualified voters of the City of Seward the question of repealing § 4.1(d) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; 195 City of Seward, Alaska City Council ]Minutes July 25, 1994 Volume 30, Page 195 Resolution No. 94 -119 providing for the submission to the qualified voters of the City of Seward the question of repealing § 4.4 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -120 providing for the submission to the qualified voters of the City of Seward the question of amending § 4.6 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -121 providing for the submission to the qualified voters of the City of Seward the question of amending § 5.3(e) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -124 providing for the submission to the qualified voters of the City of Seward the question of amending § 6.4(a) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -126 providing for the submission to the qualified voters of the City of Seward the question of amending § 8.7 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -127 providing for the submission to the qualified voters of the City of Seward the question of repealing § 9.3, 9.4 and 9.5 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -128 providing for the submission to the qualified voters of the City of Seward the question of amending § 10.2 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -129 providing for the submission to the qualified voters of the City of Seward the question of amending § 11.1(a)(2) and repealing § 15.1 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -130 providing for the submission to the qualified voters of the City of Seward the question of amending § 12.1(b) and 12.2 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -132 providing for the submission to the qualified voters of the City of Seward the question of amending the Charter of the City of Seward to replace the term "Councilman" with the term "Councilmember" at an election in and for the City of Seward on October 4, 1994, was approved; Resolution No. 94 -133 appropriating additional sales tax revenues to Seward General Hospital, was approved; 196 City of Seward, Alaska City Council Minutes Julv 25. 1994 Volume 30, P age 196 Resolution No. 94 -134 authorizing a contract to Swenson Construction Company for handicap access renovations to the Seward Public Library, was approved; Resolution No. 94 -135 authorizing a contract with Homeland Enterprises to paint the exterior of City Hall and appropriating funds, was approved; Resolution No. 94 -136 extending the professional services agreement with Integrity Surveys and appropriating funds to complete subdivision work in the Fourth of July Creek area, was approved; The administration was authorized to proceed with lease negotiations with Mactel Cellular Systems for the use of land adjacent to Nash Road; A request for restaurant designated as filed by Marina Restaurant was approved; and A report of purchase orders totalling between $5,000 and $10,000 issued from March 1, 1994, through June 30, 1994, was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. SPECIAL ORDERS AND PUBLIC HEARINGS Introduction of Exchange Students Seward Exchange Student Brian Wilcox introduced the 1994 Sister City Exchange Students: Nita Hollingsworth, Karla Roadifer and Tracy Squires, all of Seward, and Naoe Nakamori, Kayoko Nakagawa, Sadanori Hinokawa and Shizuka Sakai, all of Obihiro, Japan. The four students from Obihiro, Japan, made brief presentations to the Council. Mayor Crane welcomed the students to Seward. Resolution No. 94 -103 authorizing a third amendment to Lease Agreement with Seward Ship's Drydock, Inc., extending the time for constructing a 300 - foot building as required under the lease until September 1, 1995. Notice of public hearing as published and posted 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. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -103 MOTION (Krasnansky /Anderson) Postpone until 08 /08/94. 197 City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 197 Krasnansky asked if a work session could be scheduled for 5:30 p.m. on August 8th. Darling stated that this might not allow sufficient time to discuss all of the issues. Klinkner suggested that discussion of how this amendment would affect the arbitrator's decision, as well as the consequences of not approving the resolution, should first be addressed in executive session. Crane suggested setting the work session at the next Council meeting and conducting the executive session following the August 8th meeting. VOTE ON MOTION TO POSTPONE Motion Passed. Unanimous Resolution No. 94 -104 approving Lease Agreement No. 1 with Seward Forest Products. 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. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -104 Jones noted that the three resolutions before the Council were negotiated in December 1992. Since then, the city had changed legal firms. The new leases were drafted and forwarded to Seward Forest Products where they were held for several months before they were signed and returned to the city for public hearing and consideration by the Council. Jones stated that the new leases contained essentially the same terms set by the Council in 1992. In response to a question from O'Brien, Klinkner stated that he believed the Council would have the authority to impose rents or change other lease conditions as a condition of allowing the lessee to assign the lease at some future date. Jones noted that there would be no rent due from Seward Forest Products under the terms of the new leases as negotiated by the Council in 1992. He stated that approval of these leases would also discharge Seward Forest Products from any obligation to pay past due rents under the existing Chugach Forest Products leases. Bencardino recommended approval of the leases. In response to a question from Darling, Jones stated that Chugach had removed themselves from the Seward Forest Products partnership, but there remained a commitment on the part of Seward Forest Products to re-open the mill. Jones stated that by approving the leases tonight, the Council would give a clear signal that the city remained committed to the terms set in 1992 and was more interested in reviving the industry than in collecting back due rents. City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 19 O'Brien stated that he was concerned about approving leases at this time. He asked if the property would revert to the city if Seward Forest Products failed to operate the mill. Jones noted that there were conditions which the lessee must meet for the lease to continue; however, meeting the employment criteria could be done with a caretaker crew. In addition, the lease required Seward Forest Products to take care of certain environmental concerns such as disposal of the hog fuel. O'Brien stated that he would like to see a performance standard requiring that the mill be re- opened by a certain date. Bencardino stated that it would cost $80,000 per month to mothball the mill, and this was a real incentive to begin operations as soon as possible. Anderson asked if Young & Morgan had provided the city with manhour statistics to show that the mill had met its obligations. Jones stated that the report indicated that Seward Forest Products had exceeded the requirement. In response to a question from Anderson, Jones stated that fees for the use of the North Dock had been paid. In response to a question from Sieminski, Klinkner stated that the Council could condition the approval of the new leases on repayment of the $140,000 owed in back rent. Anderson noted that the Council had agreed to waive the rents in 1992. Jones added that there was never any interest on the part of Seward Forest Products to assume the Chugach lease, and if these leases were not approved, Seward Forest Products might claim that it had never agreed to pay rents as evidenced by representations made by the Council in 1992. Krasnansky stated that he supported the leases but had some real reservations. He noted that the forest products industry was not doing well anywhere. He noted that the Council should remember that the city was not really losing anything by waiving rents since, without these leases or the mill, the property would be sitting vacant. In response to a question from Anderson, Jones stated that Seward Forest Products had plans to dispose of the hog fuel by a variety of means. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Unanimous Resolution No. 94 -105 approving Lease Agreement No. 2 with Seward Forest Products. 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. MOTION (Anderson/Bencardino) Approve Resolution No. 94 -105 199 City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 199 VOTE ON MOTION Motion Passed. Unanimous Resolution No. 94 -106 approving Lease Agreement No. 3 with Seward Forest Products. 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. MOTION (Krasnansky /Bencardino) VOTE ON MOTION Motion Passed. Approve Resolution No. 94 -106 Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Port and Commerce Advisory Board Applicants PATRICK A. BROWN, was not present. DEAN KASISCHKE, Camelot Subdivision, stated that his experiences in various ports around the state, as well as his experience as a local port patron, would be valuable to the board. JAMES T. PRUITT, stated that he had participated in the harbor for many years and currently chaired the Port and Commerce Advisory Board. KEVIN WALKER, Bear Lake Road, stated that he had lived in Seward for five years, had a degree in Industrial Engineering and currently worked as a tour /fishing boat charter captain. He stated that he had followed the board's activities and other city activities for some time. ORDINANCES FOR INTRODUCTION RESOLUTIONS Resolution No. 94 -101 amending city lease policies and procedures to provide a policy for nominating public property for disposal. MOTION (Anderson/Krasnansky) Approve Resolution No. 94 -101 200 City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 200 Jones stated that this document would replace the current lease policies by adding to them a way to nominate lands for disposal without divulging an interested party's ideas before the Council had decided if it wished to seek proposals, go forward with negotiations, or not lease at all. O'Brien suggested a work session. Darling concurred. Crane stated that he liked the new procedures as presented in the packet. Anderson stated that she had been critical of the city's lease policies and procedures, and felt that this resolution was a step in the right direction. She stated that the city's lease policies were critical and, unless ground rules were set by the Council, the city would continue to have problems in this area. She stated that she would welcome a work session. The Mayor scheduled a work session to be conducted on Friday, July 29th, beginning at 7:00 p.m. He asked that the Planning Commission be invited to attend. MOTION (Krasnansky /Sieminski) Postpone until August 8, 1994. VOTE ON MOTION TO POSTPONE Motion Passed. Unanimous RECESS: The meeting was recessed at 9 p.m. and reconvened at 9:30 p.m. Resolution No. 94 -102 urging the Kenai Peninsula Borough to explore all options for inclusion of Seward General Hospital in a hospital service area. MOTION (Sieminski/Darling) Approve Resolution No. 94 -102 MOTION (Crane /Krasnansky) Refer to the Community Hospital Board for discussion and recommendation. Sieminski objected. He stated that this issue had been before the Hospital Board several times, and the board always failed to take action. Anderson stated that she had brought this up to the hospital board a couple of months ago and got no response. She stated that, if it were placed on the board's agenda, it would force a vote from the members. She stated that it was critical that the city look for other avenues of support for the hospital including the possibility of a different ownership or operational entity. Anderson stated that the joint management of the hospital and Wesley by CEO Richard Jones was working well, but this had been intended to be a temporary measure. Crane stated that he would like to see this placed on the Hospital Board's agenda to force a vote of the board on this issue. He stated that he shared Anderson's concerns. 201 City of Seward, Alaska July 25, 1994 City Council Minutes Volume 30. Pape 201 Krasnansky strongly urged that any Councilmember with concerns about the hospital bring those concerns to the Council first. VOTE ON MOTION TO REFER Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky, O'Brien NO: Sieminski Resolution No. 94 -122 providing for the submission to the qualified voters of the City of Seward the question of amending Section 5.3(b), 5.4(c), 5.4(f) and 5.5(g) and enacting Section 5.5(h) of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -122 Krasnansky asked if appointive administrative officers worked at the pleasure of the city manager. Klinkner stated that this was the way the charter was currently worded. MOTION (Krasnansky /Anderson) VOTE ON AMENDMENT Motion Passed. VOTE ON RESOLUTION AS AMENDED Motion Passed. Amend Sec. 5.3(b) by deleting "and serves at his pleasure ". Unanimous Unanimous Resolution No. 94 -123 providing for the submission to the qualified voters of the City of Seward the question of amending Section 6.1 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994. MOTION (O'Brien/Darling) Approve Resolution No. 94 -123 O'Brien stated that changing the fiscal year of the city was a major step that should not be taken lightly and should require more than a simple vote of the Council. Krasnansky concurred. VOTE ON MOTION 202 City of Seward, Alaska July 25, 1994 City Council Minutes Volume 30, Pag 202 Motion Failed. YES: Bencardino, Crane NO: Anderson, Darling, Krasnansky, O'Brien, Sieminski Resolution No. 94 -125 providing for the submission to the qualified voters of the City of Seward the question of amending Section 6.6 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994. MOTION (Anderson/O'Brien) Approve Resolution No. 94 -125 MOTION (Anderson/Krasnansky) Amend Sec. 6.6 to read: An independent audit shall be made of all accounts of the city at least annually, and more frequently if deemed necessary by the council. The annual audit shall be made by certified public accountants employed by the council and shall be completed within ninety days following the close of the fiscal year. The comprehensive annual financial report shall be presented to the council at a public meeting within 30 days q fter completion of the audit. VOTE ON AMENDMENT Motion Passed. Unanimous VOTE ON RESOLUTION AS AMENDED Motion Passed. Resolution No. 94 -131 providing for the submission to the qualified voters of the City of Seward the question of amending Section 14.7 of the Charter of the City of Seward at an election in and for the City of Seward on October 4, 1994. MOTION (Krasnansky /Bencardino) MOTION (Anderson/Krasnansky) Unanimous Approve Resolution No. 94 -131 Amend Section 14.7 to read: Each amendment ratified by the electors of the city shall be filed in the manner required by law, and shall thereupon become a part of the organic law of the city, unless a later effective date is prescribed by the council 203 City of Seward, Alaska July 25, 1994 City Council Minutes Volume 30, Page 203 VOTE ON AMENDMENT Motion Passed. VOTE ON RESOLUTION AS AMENDED Motion Passed. prior to the election on its ratification. 77terecflter, the courts shall take ,judicial notice of the city Charter as amended. Unanimous Unanimous Resolution No. 94-137 approving Change Order No. 1 to the Summit Paving contract. MOTION (Bencardino /Krasnansky) Approve Resolution No. 94 -137 Jones and Engineering and Utilities Manager Calvert reviewed the changes in the scope of work under this proposed change order. Calvert noted that after award of the contract it became apparent that it would be far less expensive in the long run to recondition the streets rather than patch and overlay, and this option would greatly extend the life of the streets. As a result of this change in scope, he requested that the contract be amended to reflect an additional cost of $72,082. He noted that funds were available in the street improvements budget to cover this change order. VOTE ON MOTION Motion Passed. Unanimous Resolution No. 94 -138 approving Change Order No. 2 to the Summit Paving Contract to pave Dairy Hill Road. MOTION (Krasnansky/Darling) Approve Resolution No. 94 -138 Jones notes that the correct name of the street in question was Chamberlain Road. VOTE ON MOTION Motion Passed. Unanimous Resolution No. 94 -139 appropriating funds to the Seward Correctional Center FY 1995 budget for salary upgrades for correctional officers. R, , City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 204 MOTION (Krasnansky /Darling) Approve Resolution No. 94139 Krasnansky clarified that the reclassification would be retroactive and employees would receive pay retroactive to July 1st. VOTE ON MOTION Motion Passed. Unanimous UNFINISHED BUSINESS Business license status reeort Anderson asked if enforcement of the business license ordinance would be criminal or civil. Jones noted that the choice was the city's. He stated that the city was currently notifying businesses of the consequences of failure to comply, but no action had been taken. Bencardino stated that his biggest complaint was using the police for enforcement. Jones stated that the administration shared the concerns expressed by Bencardino; however, the department had done a terrific job of conveying the appropriate information and the city was now seeing a positive response in the numbers of those now complying. O'Brien also objected to using the police to enforce the business license ordinance. Crane disagreed. He stated that council had, in the past, stated that it wanted the city to begin enforcing its ordinances and it was only fair to the public which was complying with the new law to see that others complied as well. He stated that the police had done a good job thus far. In response to a question from Anderson, Murphy stated that it was her recommendation that the business license ordinance be amended to exempt from compliance individuals who owned and rented only one single family residence and added that she would prepare an ordinance authorizing such an exemption for introduction at the next meeting. She also requested a work session to discuss and define the term "doing business in Seward." NEW BUSINESS Appointment of Port and Commerce Advisory Board Positions The Clerk distributed ballots to the Council and instructed them to vote for not more than three of the applicants listed and to sign their names to the ballots. She then read the ballots aloud as follows: PATRICK BROWN - 2 votes (Anderson, Krasnansky) DEAN KASISCHKE - 6 votes ( Bencardino, Crane, Darling, Krasnansky, O'Brien, Sieminski 205 City of Seward, Alaska City Council Minutes July 25, 1994 Volume 30, Page 205 JAMES PRUITT - 6 votes KEVIN WALKER - 7 votes MOTION (Krasnansky /Bencardino) VOTE ON MOTION Motion Passed. (Anderson, Bencardino, Crane, Darling, O'Brien, Siemiuski) (Unanimous) Confirm the appointment of Dean Kasischke, James Pruitt and Kevin Walk- er to three -year terms on the Port and Commerce Advisory Board to expire in July 1997. Unanimous AML /JIA Board participation and representation by Rick Gifford O'Brien stated that he had asked that this item be placed on the agenda. He objected to Gifford remaining on the board and stated that the Finance Director was needed in his office to manage his department. Jones stated that he had discussed this with Gifford at length, and it was his opinion that having a representative on this board reflected positively on the city and saved the city a lot of money in insurance premiums and increased coverage. Jones added that this was the sort of interaction between the Council and the administration that should take place privately and was not appropriate direction to be given to the city manager. Anderson stated that there were definite advantages to the city as a result of the finance director's participation on this board. She added that this was an administrative call, not one that Council should make. Bencardino, Crane and Krasnansky agreed that this was an administrative call. O'Brien stated that he had nothing against the finance director; however, given the recent problems within the department, key staff were needed on site to manage the staff. CITY MANAGER REPORTS JONES echoed O'Brien's concerns regarding the Finance Department. He also congratulated the Council for struggling through an amazing number of charter amendments. Jones noted that an 8 -member dock committee had been formed to discuss the B Street dock and/or other dock locations. Jones distributed a memorandum regarding street paving alternatives which could be completed with the balance of the paving project funds and stated that he would be requesting a short special meeting later in the week for discussion and approval. COUNCIL DISCUSSION None CITIZENS' DISCUSSION None 206 City of Seward, Alaska July 25, 1994 City Council Minutes Volume 30, Page 206 COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 10:55 p.m. Dave W. Crane Mayor OMits; *4 City of Seward, Alaska City Council Minutes July 27, 1994 Volume 30, Page 20 CALL TO ORDER The July 27, 1994, special meeting of the Seward City Council was called to order at 5:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councilmember Bencardino led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino James Krasnansky Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk 207 City of Seward, Alaska City Council Minutes July 27, 1994 Volume 30, Page 207 ABSENT were: Hugh Darling (Excused) Patrick O'Brien (Excused) APPROVAL OF SPECIAL MEETING AGENDA MOTION (Krasnansky /Anderson) Approve the Special Meeting Agenda as presented. VOTE ON MOTION: Motion Passed. Unanimous CITIZENS' COMMENTS Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None RESOLUTIONS Resolution No. 94 -140 approving Change Order No. 3 to the Summit Paving contract. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -140 Engineering and Utilities Manager Dave Calvert noted that the street paving account had a remaining balance of $113,519, $15,000 of which had been designated for striping of repaved streets. He recommended that the Council approve Change Order No. 3 to the Summit Paving contract which would authorize the paving of Sixth Avenue from Railway to A Street and the paving of Van Buren from Second to Fourth Avenue at a cost of $95,777. Anderson commended the administration for its decision to recondition the streets rather than patch and overlay and stated that this was a more cost - effective plan in the long run. She stated that she would like to see a portion of the balance used to accomplish some paving projects at Seward General Hospital. Anderson stated that the most critical need was the rear of the physical therapy building (old clinic site) since it was difficult for patients in wheelchairs to negotiate the gravel parking lot. She listed several other paving projects at the hospital which needed attention. Sieminski stated that he was opposed to doing any additional paving this season and recommended that the remaining funds be held in reserve until next year when the city could budget sufficient FY 1996 funds to complete the needed projects. M % City of Seward, Alaska July 27, 1994 City Council Minutes Volume 30, Page 208 MOTION (Anderson/Bencardino) Amend the change order to authorize the paving of Hospital Lot 1 at the rear of the physical therapy building at a cost of $5,270, Hospital Lot 3 (emergency room entrance) at a cost of $12,425, Van Buren Street at a cost of $7,540, with the bal- ance of the funds to be used to pave as much of Sixth Avenue as possible. Crane stated that he did not support any paving at Seward General Hospital at this time. He stated that, if these were critical needs, the hospital administration should have requested this paving during the budget process. VOTE ON AMENDMENT Motion Failed. MOTION (Crane /Krasnansky) YES: Anderson, Bencardino NO: Crane, Krasnansky, Sieminski Amend the change order to include paving Van Buren Street from Second to Fourth Avenue. VOTE ON AMENDMENT Motion Passed. YES: Anderson, Bencardino, Crane, Krasnansky NO: Sieminski VOTE ON RESOLUTION AS AMENDED Motion Passed. YES: Anderson, Bencardino, Crane, Krasnansky NO: Sieminski CITY MANAGER REPORTS None COUNCIL DISCUSSION KRASNANSKY apologized for his comments questioning the motives of another Councilmember which were made at the last meeting. 209 City of Seward, Alaska City Council Minutes July 27, 1994 Volume 30, Page 209 BENCARDINO noted that representatives of Crown Pacific had toured the sawmill earlier in the day and were now on their way to Juneau to meet with Chris Gates and the State Forester to discuss related timber issues. He stated that he was hopeful that Crown Pacific would become a partner in the operation of the mill. CRANE asked the administration to prepare an update on the city's compliance with ADA for the next meeting. He also asked the Police Department to look into problems presented by skateboarders riding behind vehicles in the downtown and boat harbor areas. ANDERSON asked that the Council schedule a work session with the City Manager to discuss his relationship with the Council. Jones agreed that this would be beneficial. CITIZENS' DISCUSSION None COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 6:15 p.m. r „14 by/, CMC /. lark o a ",• mo o ® c ity August 8, 1994 CALL TO ORDER ,�,, 0, e ”, Dave . Crane Mayor City Council Minutes Volume 30, Page 209 The August 8, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. 210 City of Seward, Alaska City Council Minutes August 8, 1994 V olume 30, Page 210 ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Minkner, City Attorney Linda S. Murphy, City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski agenda items not scheduled for public hearing STU CLARK, 1129 Park Place, spoke in support of the development of the Alaska SeaLife Center. He stated that he and his wife had participated in the public hearing before the Planning Commission regarding the SAAMS request for a conditional use permit and a variance. He urged the Council to review the record of the Planning Commission's meeting carefully. He noted that separating Tracts 5 and 6 from the rest of the site would allow a separate lease agreement for the area to be designated for paid parking. LOUIE MARCH, JR., Mile 5.5 Seward Highway, stated that he was not opposed to including Seward General Hospital in a service area, but he was opposed to raising borough property taxes to support the hospital. He stated that a sales tax was a fairer form of taxation. MARILYN REYNOLDS, 225 Sixth Avenue, objected to the introduction of Ordinance No. 94 -30 which would exempt single family home rentals from the requirement to purchase a business license. RANDY MCFARLAND, 232 Fifth Avenue, stated that proceeds from any paid parking at the Alaska SeaLife Center should go back to the city of Seward. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (KrasnanskyBencardino) Approve the Agenda and Consent Agenda as presented. 211 X City of Seward Alaska City Council Minutes Aug 8, 1994 Volume 30, Page 211 MOTION (Krasnansky /Sieminski) Meet in executive session immediately following the close of regular business to discuss the proposed amendment to the Seward Ship's Drydock Lease. VOTE ON MOTION FOR EXECUTIVE SESSION Motion Passed. Unanimous O'Brien moved Ordinance No. 94 -32 to the regular agenda. Anderson moved Ordinance No. 94 -30 to the regular agenda. Crane deleted Resolution No. 94 -141 and No. 94 -142 from the agenda. VOTE ON MOTION TO APPROVE AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The July 25, 1994, regular meeting minutes were approved as written; The July 27, 1994, special meeting minutes were approved as written; Ordinance No. 94 -31 amending SCC § 5.20.075 to provide that the penalty for improvement district assessments be set by resolution, was introduced and set for public hearing on August 22, 1994; Resolution No. 94 -143 accepting the Kenai Peninsula Borough Community Schools grant and appropriating funds, was approved; Resolution No. 94 -144 designating the FY 1993 law enforcement liability pool credit received from the AML /JIA for the Law Enforcement Liability Pool Reserve Account, was approved; Resolution No. 94 -145 authorizing the city manager to increase the audit fees for Seward General Hospital and appropriating funds, was approved; Resolution No. 94 -146 approving Change Order No. 2 -2 to the Land Field Services contract to complete right -of -way and permit acquisition tasks for Phase II of the transmission line project, was approved; Resolution No. 94 -147, approving the purchase of a new animal control vehicle, was approved; 212 City of Seward, Alaska City Council Minutes August 8, 1994 Volume 30, P age 212 Resolution No. 94 -148 approving payment to Halkin Services, Inc., for inspection of the syncrolift cables, was approved; Resolution No. 94 -149 approving Change Order No. 4 to the Summit Paving Contract to pave the access road and staging area for the new harbor boat launch ramp, was approved; Resolution No. 94 -150 authorizing the extension of a special services contract with the Alaska Department of Public Safety to provided dispatch and clerical support for Alaska State Troopers in Seward, was approved; Resolution No. 94 -151 authorizing the extension of the jail contract between the city and the Alaska Department of Public Safety, was approved; Claim for damages totalling $282.75 as filed by Boyd- Murphy, Ltd., was noted for information (The claim had been forwarded to the paving contractor by the administration); and Claim for damages totalling $5,430.95 as filed by Four Seasons Boat Services was referred to the city's insurance adjuster. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the most recent assembly meeting. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -29 amending the Seward Zoning Maps by rezoning Lot 1A, Ennis Addition to Federal Addition; Lot 2, Block 2, Federal Addition; and Lots 1A -14, Block 3, Laubner Addition; from R1 to UR; and Lot 4, Jesse Lee Heights Subdivision Addition No. 2, from AC to R3, to bring designated properties into conformance with the Land Use Plan 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. MOTION (Krasnansky/Darling) Enact Ordinance No. 94 -29 VOTE ON MOTION Motion Passed. Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY 213 City of Seward, Alaska August 8, 1994 City Council Minutes Volume 30, Page 213 ORDINANCES FOR INTRODUCTION Ordinance No. 94 -30, amending Seward City Code Chapter 8.30 to exempt the rental of one single family residence from the requirement for a business license. MOTION (Krasnansky /Sieminski) Introduce Ordinance No. 94 -30 Anderson stated that she opposed the ordinance since it would open the door to further exemptions. Sieminski concurred. NOTE: As the roll call vote began, O'Brien attempted to abstain. The Mayor ruled that O'Brien had no substantial financial interest in the outcome of this vote and, therefore, could not abstain. O'Brien refused to cast a YES or NO vote and left the Chambers. He did not return to participate in the remainder of the meeting. MOTION (Krasnansky/Darling) Appeal the ruling of the Chair. [The motion to be voted on was "Shall the ruling of the Chair be upheld ?) Motion Passed. YES: Bencardino, Crane, Darling, Kras- nansky, Sieminski NO: Anderson RECESS: The meeting recessed for 10 minutes while the Clerk and Attorney researched rules governing voting and the rights of the Council to discipline its members. MOTION (KrasnanskyBencardino) Table introduction of Ordinance No. 94 -30 Motion Passed. Unanimous Ordinance No. 94 -32, providing for civil penalties and injunctive relief for violations of the City Code and coordinating such provisions with provisions of the Code related to business licenses and assessment fees. MOTION (KrasnanskyBencardino) Introduce Ordinance No. 94 -32 Motion Passed. Unanimous 214 City of Seward, Alaska City Council Mututes August 8, 1994 Volume 30, Page 214 UNFINISHED BUSINESS Resolutions postponed from the July 25. 1994. meeting Resolution No. 94 -101 approving a policy for nominating public property for disposal. MOTION (Darling/Sieminski) Postpone until 08/22/94 Darling stated that he would like to include the Planning Commission in a work session to discuss the proposed resolution prior to Council action. In response to a question from Anderson, Meyen stated that, unless a lease agreement specifically prohibited the release of information such as the amount received by the lessee for a sublet or assignment, there was no reason this information could not be made public. VOTE ON MOTION TO POSTPONE Motion Failed. MOTION (Anderson / Sieminski) YES: Darling, Sieminski NO: Anderson, Bencardino, Crane, Krasnansky Amend by deleting ", through the City Manager and the P &Z Commission," from Section A and adding "if requested by the City Council," to Section B. Krasnansky objected to the amendment. Anderson stated that the council should be involved up front to see if there was an interest on the part of the Council to proceed before expending valuable staff and commission time. Krasnansky stated that it would be better to make a list of those properties absolutely not available for lease or disposal. Darling also objected to the amendment. MOTION (Bencardino/Krasnansky) Motion Passed. Move the previous question. Unanimous VOTE ON ANDERSON AMENDMENT Motion Passed. YES: Anderson, Bencardino, Crane, Sieminski NO: Darling, Krasnansky 215 City of Seward AlasW August 8, 1994 City Council Minutes Volume 30, Page 215 VOTE ON MOTION TO APPROVE THE RESOLUTION AS AMENDED Motion Passed. YES: Anderson, Bencardino, Crane, Krasnansky, Sieminski NO: Darling Resolution No. 94 -102 urging the Kenai Peninsula Borough to explore all options for inclusion of Seward General Hospital in a hospital service area. MOTION (Krasnansky/Bencardino) Postpone indefinitely. Anderson stated that she would like to keep the issue of the hospital before the Council, but would like to withdraw this resolution at this time. She noted the financial information she had distributed to the Council. She commended the hospital board and administration for the cuts made thus far but noted that the hospital was still faced with a significant loss and she was not optimistic about its future given the way the hospital was currently managed. Anderson stated that she had hoped to look to the borough to address the capital needs of all borough hospitals. She stated that she hoped to continue the positive dialogue currently underway. Sieminski stated that he would like to move forward with the resolution at this time so that the city could find out what type of help was available. Crane stated that proper timing and gathering more information was the prudent course of action and added that he would support postponement at this time. VOTE ON MOTION TO POSTPONE INDEFINITELY Motion Passed. YES: Anderson, Bencardino, Crane, Darling, Krasnansky NO: Sieminski Resolution No. 94 -103, authorizing a third amendment to lease agreement with Seward Ship's Drydock, Inc., extending the time for constructing a 300 - foot building as required under the lease until September 1, 1995. MOTION (Crane/Darling) VOTE ON MOTION TO POSTPONE Motion Passed. Postpone until August 22, 1994. YES: Anderson, Bencardino, Crane, Darling, Krasnansky NO: Sieminski 216 City of Sewar4 Alaska August S, 1994 NEW BUSINESS City Council Minutes Volume 30, Page 216 Request for authorization to negotiate a long term lease of waterfront parcels with the Seward Association for the Advancement of Marine Science for location of the Alaska SeaLife Center MOTION (KrasnanskyBencardino) Authorize the administration to direct preparation of a lease of waterfront par- cels for the Alaska SeaLife Center spon- sored by the Seward Association of Ma- rine Science (SAAMS) and continue nego- tiations of unresolved issues in order that they can ultimately be contained in the same lease document, Motion Passed. CITY MANAGER REPORTS Unanimous Introduction of Small Boat Harbor Management Agreement between the city and the state Jones noted that he had distributed the draft harbor management agreement to the Council previously. He stated that the agreement would be open for public hearing at the August 22, 1994, regular Council meeting. Letter of appreciation from Mount Marathon Race Director Lori Draper Jones noted the letter in the Council packet. Regulations and enforcement related to bicycles rollerblades and skateboards Jones noted the summary and report contained in the packet. Electric interties grant administration agreement Jones noted the memorandum provided for information. Request for Council concurrence for a $1500 contribution to the Seward Chamber of Commerce for the purpose of Seward Trolley operation maintenance and debt service Jones stated that the Chamber's trolley had been a positive addition to the community, and the Chamber was now close to succeeding in raising the balance of the funds needed to cover the debt service on the trolley. He stated that, if there was no objection from the Council, he intended to redirect $1500 of city funds to the Chamber to cover the remaining trolley debt service. ADA compliance update Manager of Engineering & Utilities Dave Calvert provided an update. He stated that both City Hall and the Ray Building were in full compliance with ADA regulations. Crane stated that a list had been provided to the Council some months earlier which included areas of noncompliance such as access to the pavilions. He asked 217 City of Seward, Alaska City Council !Minutes Aug 8, 1994 Volume 30, Page 217 when these would be addressed. Calvert stated that he would investigate and report back to the Council. Jones reported that he felt confident that the audit would be completed by the October 31st deadline. Jones stated that he would be addressing the enterprise funds PILT and administra- tive charges in a work session with the Council this fall. Jones reported that the first meeting of the newly- formed dock committee was lightly attended. He stated that the goal of the committee was to discuss and define exactly what the city wants and to refine the community's goals. Jones reported on the action with regards to the Alaska SeaLife Center taken by the Planning Commission on August 3rd. Jones noted that the recent Exxon settlement included $50,000 for the city of Seward. He stated that he would make a recommendation to the Council on August 22nd regarding whether the city should remain in a sharing agreement with other plaintiffs. COUNCIL DISCUSSION DARLING stated that he supported city funding for the trolley. He complimented the Chamber on its efforts to raise the funds to keep the trolley in service. BENCARDINO asked if it was true that the meter reading contractor had failed to renew his contract. Jones stated that the contract had been terminated and the city was currently soliciting proposals through the RFP process. In response to a question from Bencardino, Jones stated that he was aware that there was an exit interview and he would provide a report to Council. BENCARDINO noted that there were 225 children participating in Little League along with 40 to 50 volunteers each year. Bencardino stated that the city should do whatever was necessary to find a place for children to continue to participate in this sport. He added that it was important for the city to support volunteer activities. He also objected to charging Little League a $400 fee to use the ballfield. ANDERSON commented that the east boat launch ramp was a great improvement and she complimented Harbormaster Singleton, the harbor staff, the administration, and the contractors for all of the positive improvements to the boat harbor. Anderson also pointed out the need for paid parking in the harbor and stated that the city was missing an opportunity to bring in significant revenues. She also asked the administration to investigation the many RV's parking and camping in the Third Avenue parking lot. Anderson urged people to file for the three available Council seats. 218 City of Seward Alaska Cary Council li mutes August 8, 1994 Volume 30, Page 218 ANDERSON asked the attorney to explore the possibility of setting up a nonprofit organization structured like the one under which Central Peninsula Hospital was managed. Council concurred. The Mayor asked Anderson to complete the form requesting attorney services so that the Council would have some idea of the amount of time and expense such a review would entail. ANDERSON proposed a work session to explore the relationship between the Council and the administration which was to include the city clerk. Crane stated that he would schedule this at the next Council meeting. ANDERSON concurred with the allocation to the trolley and she thanked Bencardino and other chamber members for their efforts to get the trolley on a paying basis. ANDERSON stated that she attended the Planning Commission meeting last week and felt that the Commission did an excellent job of addressing the serious items having to do with the Alaska SeaLife Center project. She stated that she hoped the Commission and others would not be criticized for raising questions about the project. SIEMINSKI asked the administration to send letter of appreciation to National Bank of Alaska and Lori Draper thanking them for their continued service to the community. SIEMINSKI stated that the city should go a little easier on young people with rollerblades. He noted that the city did not enforce many other laws and regulations and could look the other way with this one. SIEMINSKI objected to diverting $1500 to the Chamber and stated that these funds, if not needed for city operations, should go back to the general fund. SIEMINSKI stated that the administration had claimed earlier that there were insurance and liability problems with the trolley being repaired in the city shop, even if the repair was done by chamber members. He stated that, since the Chamber owned the trolley, the Chamber should maintain it. KRASNANSKY stated that city hall looked great. He asked that Code amendments setting forth some mechanism to enforce rulings of the chair be prepared and presented for introduction at the next meeting. In response to a question from Krasnansky, Jones stated that he had approached the Chamber and offered city assistance; the Chamber did not request the funds. Krasnansky stated that the Council had approved an earlier donation to the Chamber. He objected to giving the Chamber an additional $1500 which would be used to compete with local taxi services. CRANE concurred with Krasnansky that the Council needed a code amendment to address disciplining members of the Council and enforcing the Council's rules. 219 City of Seward Alaska City Council Minutes Aug 8, 1994 Volume 30, Pare 219 CRANE asked for a volunteer to tabulate the evaluations of the city's appointed officials. Anderson agreed to do this, and the Mayor instructed other Councilmembers to complete their forms and submit them to Anderson by September 1st. CRANE noted that he was working with Spring Creek Correctional Center Superintendent Kincheloe and Police Chief Walker to develop a community liaison committee to work with the prison. He stated that requests for letters of interest from citizens wishing to serve on the committee would be published some time after the Salmon Derby. CRANE concurred with Jones' proposal to donate $1500 to the Chamber for the trolley. He stated that the trolley was used by the general public and was an asset to the community. CRANE stated that the rollerblades issue was a life safety one and these regulations needed to be enforced. He stated that the police were handling this problem in an appropriate manner. CITIZENS' DISCUSSION JAMES PRUITT, Maple Street, asked when the work session regarding his requested lease amendment would take place. Crane stated that it would be scheduled at the executive session following the meeting and Pruitt would be notified of the date and time. RANDY MCFARLAND, 232 Fifth Avenue, noted that he had written a letter to the Council in the spring regarding his offer to share in the cost of a new aerial photograph for the city. McFarland stated that he would like to see one taken during the tourist season. MCFARLAND noted that parking assessment fees were due tomorrow. He requested that the Council set a meeting or work session to review these assessments to see if they had proven to be a success. DARRYL SCHAEFERMEYER, 214 Bluefield Drive, project administrator for SAAMS, expressed his appreciation to the Council for authorizing the negotiations for transfer of the Waterfront Tracts to SAAMS for the Alaska SeaLife Center. He stated that the SAAMS board would meet and comment on the Planning Commission's actions on August 17th. Schaefermeyer also stated that the board would like to discuss the possible transfer of the subject property by deed with a reverter clause rather than by lease. He noted that SAAMS still hoped to commence construction this winter or spring with completion of the facility by mid -1997. He noted that this was one of the largest projects the community had ever experienced and it would have a substantial long term benefit to Seward. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None 220 City of Seward, Alaska August 8, 1994 City Council Minutes Volume 30, Page 220 ADJOURNMENT The meeting was adjourned at 10 :22 p.m., and, after a short recess, the Council reconvened in executive session to discuss the proposed amendment to the Seward Ship's Drydock lease. " & - Dave W. Crane Mayor City of Seward, Alaska August 22, 1994 City Council Minutes Volume 30, Page 220 CALL TO ORDER The August 22, 1994, "regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino Hugh Darling James Krasnansky Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Patricia Jones, Deputy City Clerk 221 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 221 ABSENT was: Patrick D. O'Brien (Excused) CITIZENS' COMMENTS A. Agenda items not scheduled for public hearing None B. Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky/Bencardino) Approve the Agenda and Consent Agen- da as presented. Anderson moved the August 8th regular meeting minutes to the agenda. Crane added Item 8 E., SAAMS Appeal of Conditional Use Permit issued by the Planning and Zoning Commission on August 3rd, to the agenda. Crane added proposed Ordinance No. 94 -35, amending the Land Use Plan and rezoning the Waterfront Tracts site of the proposed Alaska Sea Life Center to Central Business District, to the agenda. Anderson moved Ordinance No. 94 -34 and Resolution No. 94 -159 to the agenda. Sieminski moved Resolution No. 94 -153 and Resolution No. 94 -161 to the agenda. City Manager Jones requested the deletion of proposed Ordinance No. 94 -33. amending SCC § 3.15.060, Overtime, to exclude exempt employees from overtime provisions. Crane added under Presentations with Prior Notice, SAAMS presentation on update of the Alaska Sea Life Center (ASLC). VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimous The Deputy Clerk read the following approved consent agenda items: Resolution No. 94 -154, accepting the rescue /emergency response vehicle matching grant from the Alaska Department of Administration, was approved; 222 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, P age 222 Resolution No. 94 -155, accepting Alaska State Library Grants and appropriating funds, was approved; Resolution No. 94 -156, accepting revenue sharing funds for health facilities within the city, appropriating funds and transferring the funds to Seward General Hospital, Wesley Rehabilitation and Care Center and Seward Life Action Council, was approved; Resolution No. 94 -157, approving Amendment No.1 to the Transfer of Responsibil- ities Agreement between the state and the city for construction of the City Hall Elevator to close out the project, was approved; Resolution No. 94 -158, authorizing the issuance of a purchase order to Digital Equipment Corporation for renewal of the service agreement for the Finance Department computer system, was approved; and Resolution No. 94 -160, approving the purchase of a motor grader for the Public Works Department from Pacific North Equipment Co. subject to approval of financing, was approved. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present and no report was given. APPROVAL OF MINUTES MOTION (Krasnansky/Bencardino) Approve the August 8, 1994, regular meeting minutes. MOTION (Anderson/Krasnansky) Amend page 213 to reflect Anderson's NO vote on the motion to "Appeal the Ruling of the Chair ". VOTE ON APPROVAL OF THE MINUTES AS AMENDED Motion Passed. Unanimous SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -30, amending SCC § 8.30.020 to exempt the rental of one single family residence from the requirement for a business license Deputy Clerk Jones noted that this ordinance had been tabled at the August 8th meeting. 223 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 223 MOTION (Krasnansky /Crane) Motion Passed. MOTION (Krasnansky /Sieminski) Motion Passed. Remove Ordinance No. 94 -30 from the table. Unanimous Postpone until September 12, 1994. Unanimous Ordinance No. 94 -31, amending Seward City Code § 5.20.075 to provide that the penalty for improvement district assessments be set by resolution 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. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -31 Motion Passed. Unanimous Ordinance No. 94 -32, providing for civil penalties and injunctive relief for violations of the City Code and coordinating such provisions with provi- sions of the Code related to business licenses and assessment fees 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. MOTION (Krasnansky /Bencardino) Enact Ordinance No. 94 -32 Motion Passed. Unanimous Small Boat Harbor management agreement between the City of Seward and DOT F. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. Jones gave an overview of the proposed 20 year agreement. He noted the areas of the harbor that were state owned and areas that were city owned. He stated that the City would be authorized to charge a 12 percent administrative overhead fee for harbor operations, and moorage revenues would be used for harbor repairs and replacement. 224 City of Seward, Alaska City Council Minutes August 22, 1994 V 30, Page 224 He noted that other revenue would be spent on harbor operations, improvements and maintenance. He added that the agreement required an annual report on the condition of the harbor and evaluation of needed repairs. He stated that rates could be changed and costs could be adjusted up or down as needed. MURPH O'BRIEN, DOT/PF, Chief of Leasing & Property Management, reported that the state was working on transfer of ownership of harbors to various cities throughout the state. He noted that, at this time, there were not enough funds available to transfer the harbor to the city so the state and city were working together on harbor problems and mutual management of the small boat harbor. He listed several goals including: the goal of the department to make all harbors as self sufficient as possible; to use the recent 25 percent increase in moorage fees for harbor improvements; addressing the concern by harbor users that the revenues generated in the harbor benefit the harbor and the users; define the roles of the state and city in management of the harbor; establish service levels; identify maintenance requirements; ensure clear communication between the state, the city and the harbor users; establish an on -going preventative maintenance and inspection program; and define appropriate uses of harbor revenue and the level of administrative fees. He clarified that the state owned the harbor floats excluding the Boat Lift Dock, Seward Fisheries Dock and the Seward Marine Industrial Center. He noted that $700,000 in grant funds had been targeted for the small boat harbor with $250,000 to be used for upgrade of the electric system on the floats and $450,00 for replacement of X Float. He stated that public comment would be accepted until September 6th, then the comments would be compiled and reviewed by the state and city and a final draft would be ready for approval at the September 26th Council meeting. JIM PRUITT, Maple Street, commented on the payment -in- lieu -of -taxes and administrative costs. He questioned what the 12 percent overhead fee was used for. He stated that it might be beneficial if the property would be taxed under a mil rate. He voiced his concern that there was not enough police and fire protection available in the basin. He suggested operating the harbor as a separate enterprise and charging a tax. MURPH O'BRIEN responded by stating that the burden of the costs to operate the harbor should not be a burden to the entire community. He stated that the 12 percent administrative fee was a generally acceptable rate. JONES responded stating that the 12 percent overhead fee compensated the city for providing necessary services to the harbor. WILLARD DUNHAM, Dimond and Alder, stated that the Port and Commerce Advisory Board had raised many questions, and he asked that the committee's comments be included in the final report. He noted that there was concern about the transfer of boat slips along with the transfer or sale of a business such as the large charter boats. 225 City of Seward, Alaska City Council Minutes Aug 22, 1994 Volume 30, Page 225 MURPH O'BRIEN addressed the stagnant waiting list. He stated that a clause in the agreement would provide that a boat owner must have 51 percent ownership to maintain the slip. He noted that other alternatives were being considered. He encouraged everyone to send written comments prior to September 6th. No one else appeared in order to be heard and the public hearing was closed. SAAMS appeal of Conditional Use Permit issued by the Planning and Zoning Commission on August 3 1994 MOTION (Crane/Krasnansky) Remand the Conditional Use Permit back to the Planning and Zoning Commission for further review and consideration. Crane noted that SAAMS had filed an appeal requesting that the City Council remand the Conditional Use Permit approved on August 3rd back to the Planning Commission. He noted that SAAMS was appealing the following conditions: 6. Provide public restrooms in the plaza area in addition to those inside the facility. 7. Provide a permanent planted community Christmas tree in the plaza area which is visible from 4th Avenue. 17. Locate and develop suitable off -site parking and return former Tracts 5 and 6 to the city of Seward within 10 years. Crane noted that an appeal would not allow for the presentation of new evidence so SAAMS was requesting remand in accordance with Section 15.10.415(D) of the City Code so new information about the funding could be presented. Anderson questioned whether or not Item 17 was actually an issue that came under the authority of the Planning Commission to determine as a condition. She stated that it was a land issue for council's decision. City Manager Jones explained that it was regrettable that not enough dialogue had ensued to allow the question of authority on item 17. He noted that it was added as a condition by a Planning Commissioner. He stated that, since that time, the city had received a letter from Jim Ayers, Exxon Valdez Trustee Council, stating that the entire project was in jeopardy of being funded if the scope of the project changed considerably. He noted that removal of the requirement to limit the ownership of Tracts 5 and 6 to ten years was critical to continuation of the project. He added that the Planning Commission had agreed that they wanted the project to move forward and, at the time, they were not aware how significant the impact of condition 17 was on the funding for the project. He recommended that the Council remand the above conditions to P & Z for further consideration. He stated that the project was still in the development stage and the city needed to involve itself in working with SAAMS for the benefit of the entire community. 226 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, P age 226 Crane stated that he wanted to see the project move forward and he hoped that the Planning Commission would be flexible and work this problem out. Sieminski asked about the proposed lease between the city and SAAMS that was related to this issue. Jones stated that, during lease negotiations, a number of items would be considered including the reverter clause, relocation of the youth center, termination of the lease with Northern Stevedoring and plans for relocation of the ferry from the 4th Avenue Dock. He stated that SAAMS and the city would need to research the above items to determine the costs and the best way to address each issue. Anderson stated that she supported the remand but was frustrated with the entire process concerning all of the land issues. She stated that the entire process could have been addressed at an earlier date enabling the Council to have sufficient time to consider all of the issues. She added that this was an important project that would have far reaching effects and she did not feel like it should be rushed through at the last minute. VOTE ON MOTION Motion Passed. Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Bob Heavilin Kenai Peninsula Borough Emergency Management Coordinator - East Zone Emergency Response Plan BOB HEAVILIN, Kenai Peninsula Borough Emergency Management Coordinator, spoke regarding emergency response on the Kenai Peninsula. He stated that develop- ment of the borough -wide emergency response plan started as a result of the problems associated with the oil spill. He stated that the first plan which was developed for the south zone was used as a model to develop the response plan for the other three zones. He noted that the east zone consisted of Seward, along the highway to the Y turn-off and north to Hope. He reviewed the history of responses to prior disasters. He noted that the ambiguity of authority, unplanned media relationships, poor use of specialized resources, convergence of volunteers and coordination of emergency staff were some of the major problems noted. He stated that the plan centered around a central manage- ment system that utilized an incident command system as mandated by state and federal regulations for hazardous materials response. He gave an overview of the entire plan which consisted of four volumes. He noted that the plan would be used for interjuris- dicational response to emergencies or disasters. He stated that training would be necessary in order to implement the plan, and the borough had budgeted funds to develop and implement training beginning October 20th for 2'/2 days. He thanked Seward for its help in developing the plan. 227 City of Seward, Alaska City Council Minutes Aug 22, 1994 Volume 30, Page 227 SAAMS Presentation of Alaska Sea Life Center (ASLC) Appeal on CUP issued by the Planning and Zoning Commission and effect on funding DARRYL SCHAEFERMEYER, 214 Bluefield Drive, thanked the Council for its support of the ASLC project. He stated that the developers of the project realized the need to be responsive and responsible to the community and the city during the planning and development of the project. He welcomed public input and comment throughout each phase of the project. He noted that the ASLC could be the cornerstone into the next century and an economic boon for the town. He requested that Council consider rezoning the property to Central Business District (CBD) as SAAMS had requested rather than to Institutional as recommended by the administration and the Planning and Zoning Commission. He stated that the CBD designation best suited the development of the ASLC which would accommodate visitors and provide gift shops and other revenue producing businesses. He added that this would also allow for greater flexibility within the project and would provide adequate protection to the city. He stated that the lease negotiations were complex and included replat, rezone, the conditional use permit, land use amendments and the process of freeing the property of current encumbrances. He noted that SAAMS had provided for the costs of engineering and replatting and it would absorb other costs within certain limitations including planning, further engineering and design. He noted that no funds were yet committed for construction. He stated that the allegations made by the news media regarding the ferry relocation were untrue and unfair to all concerned parties. He clarified that the ferry would need to move prior to completion of the project, but not next year as had been reported. He added that the ferry should be able to use the 4th Avenue Dock through the end of the term of its agreement which would expire in 1996. He thanked the Council for recognizing the problem associated with condition 17 of the Conditional Use Permit. RECESS: The meeting recessed at 9:00 p.m. and reconvened at 9:10 p.m. KIM SUNDBERG, Department of Fish and Game, Project Coordinator for the Exxon Valdez Trustee Council, stated that the trustees were interested in a facility for research of species injured during disasters. He gave an overview of the research that would be performed, revenue assumptions and the Environmental Impact Statement process. He noted that the final decision for capital funding for the project was scheduled for late October. He stated that the revenue assumptions were relative to the research component of the project He noted that the detailed cost estimate would go to the trustees in the middle of September. He added that the trustees were considering funding totalling up to 25 million dollars and the state had already issued a grant totalling 12.5 million dollars. He stated that the total cost of the project was dependent upon the funding decision by the trustees. He noted that the scheduled completion date for the project was June 1997. 228 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, P 228 LIEF SELKREGG, Project Manager, gave an update on the ASLC project. He stated that the developers hoped to begin building construction in June 1995. He stated that the overall project was estimated to cost 47.5 million dollars. DEBORAH HANKINSON, Livingstone Sloane Architects, explained the process for architectural development of the ASLC. She reviewed the latest architectural drawings of the building and the site. She presented the floor plan for the facility and explained the different aspects of the educational, research and visitor related areas. Anderson asked when the public could comment on design of the plans. SCHAEFERMEYER replied that public comment would be received when the Planning and Zoning Commission reviewed the design plans. He stated that he would like to meet with the Council monthly to provide an update on the status of the project. ORDINANCES FOR INTRODUCTION Ordinance No. 94 -34, amending the Land Use Plan and rezoning the Waterfront Tracts site of the proposed Alaska SeaLife Center to Institu- tional and consenting to the replat of the subject property MOTION (Krasnansky /Sieminski) MOTION (Crane/Krasnansky) Motion Passed. Introduce Ordinance No. 94 -34 Amend the title by deleting the last line which referred to replat. Unanimous Anderson asked how the designation of Institutional entered into the process. Jones replied that, during consideration of the facts, the designation of Institutional appeared to be a more appropriate use for the property as designated in the land use plan; therefore, the administration made the recommendation to the Planning Commission. He stated that SAAMS had originally asked for a rezone of the property to CBD. VOTE ON MOTION TO APPROVE Motion Failed. Unanimous Ordinance No. 94 -35, amending the Land Use Plan and rezoning the Waterfront Tracts site of the proposed Alaska SeaLife Center to Central Business District 229 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 229 MOTION (Sieminski/Bencardino) Motion Passed. RESOLUTIONS Introduce Ordinance No. 94 -34 Unanimous Resolution No. 94 -152, adopting the East Peninsula Emergency Response Plan to provide for cooperative disaster planning and response between the city of Seward and the Kenai Peninsula Borough and authorizing the city manager to implement the plan MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -152 Jones stated that the administration recommended this plan along with the borough. Motion Passed. Unanimous Resolution No. 94 -153, accepting the Gateway Subdivision land acquisi- tion/park construction matching grant from the Alaska Department of Administration MOTION (Krasnansky/Darling) Approve Resolution No. 94 -153 Yanez explained the background related to the proposed acquisition of property for development of a park in Gateway Subdivision. He stated that the city currently owned 75 acres of park land. Sieminski expressed concern about future maintenance of the park. Yanez explained that the Parks and Recreation Department would assume maintenance and the neighbors in the subdivision expressed a desire to help on a volunteer basis. Anderson suggesting adding a new softball field. Yanez stated that development of a playing field in close proximity to the park could be considered. Sieminski stated that the city should maintain an average amount of acreage for park development. Bencardino stated that grants should be acquired for upgrading existing parks rather than creating new parks. Jones stated that this project was included in the capital matching grant project program which was approved earlier by the Council and also approved for legislative funding by the Council. 230 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 230 Crane stated that this was also a public safety issue since the area lacked sidewalks. VOTE ON MOTION Motion Passed. Unanimous Resolution No. 94 -159, establishing administrative filing fees associated with land management, signs and zoning MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -159 Martin clarified that some of the fees included in the resolution were new and some were already established. He stated that he established the cost by including research time by the administration, mailings, copying and publication. He asked the Council to amend the resolution by deleting the fee for subdivision plats, since this was a borough fee. MOTION (Krasnansky /Bencardino) Amend by deleting the cost for subdivi- sion plats included in the attachment. Crane stipulated that a yes vote on the amendment would carry the main motion. VOTE ON RESOLUTION AS AMENDED Motion Passed. Unanimous Resolution No. 94 -161, approving the purchase of high -mast poles and lighting for the east side of the Small Boat Harbor without full utilization of city bid procedures MOTION (Krasnansky/Bencardino) Approve Resolution No. 94 -161 Sieminski objected to approving a purchase without utilizing bid procedures. Jones explained that this acquisition was recommended because there had been only one response to similar bids in the past. Engineering and Utilities Manager Calvert explained that notices for bids were published twice during the past year for the purchase of high -mast lights and there was only one response to each bid. He recommended that the city obtain quotes for this purchase, and Electrical Distributors, Inc. was the only bidder. 231 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 231 In response to a question from Sieminski, Deputy Clerk Jones explained the process and procedures for publishing requests for proposals or bids. She noted that the city generally published requests for proposals or bids in accordance with the Title 6 of the city code. VOTE ON MOTION Motion Passed. Unanimous UNFINISHED BUSINESS Resolution No. 94 -103, authorizing a third amendment to lease agreement with Seward Ship's Drydock, Inc., extending the time for constructing a 300 -foot building as required under the lease until September 1, 1995 Deputy Clerk Jones noted that Resolution No. 94 -103 was postponed from the August 8th meeting and there was a motion for approval on the floor. Anderson explained that it was time to revisit the lease arrangement with Seward Ship's Drydock. She suggested review of maintenance of the shiplift facility in January. VOTE ON MOTION Motion Failed. Unanimous NEW BUSINESS None CITY MANAGER REPORTS Jones reported on the recently formed deepwater dock committee that was comprised of Seward Downtown Business Association members and Port and Commerce Advisory Boardmembers. He listed the committee's goals and reported that a facility development plan would be recommended to the Council by January 1st. He stated that an in -house demand analysis would be completed by asking various dock users about their needs and their willingness to commit financially. He added that proposals for the Alaska Railroad dock extension, Adams Street Dock, B Street Dock, North Dock and the floating drydock and barge facility would be analyzed to obtain a standard for setting a cost comparison. He stated that a financial plan and schedule would then be established. Jones stated that the Alaska Marine Highway System had responded to inquiries about the continued availability of the 4th Avenue Dock. He noted that the department had characterized the City as terminating use of the dock but the City actually was working to explore alternatives for dock use by the ferry system once the construction of the Alaska Sea Life Center was started. He stated that he would continue to work on this issue. 232 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 232 Jones reported that the city had received the proposed schedule and budget for the Nash Road Small Boat Harbor from Al Schafer. He noted that the information would be compiled into a master plan which would be presented to the Council on September 12th. Jones stated that the RFP for the meter reading contract had been published and the deadline for responses was September 9th. Jones reported on the projects that were completed in compliance with ADA regulations including completion of the elevator at city hall, the harbor access ramp, certain hospital renovations, library basement access and the restrooms located in Waterfront Park. He added that those projects that were pending and in need of funding were restroom adjustments, the entrance to the fire department, harbor restrooms, hospital restrooms, parking lots at city parks, relocation of the youth center and the Parks and Recreation warehouse parking area. Jones reported on the status of the audit. He stated that the finance department would need some accounting assistance because of the complexities involved with the departure of the city comptroller. He stated that all of the funds were up to date with the exception of the general fund. Jones reported that inspection of the syncrolift would begin tomorrow and the inspection of the wire rope had been completed. Jones reported on the settlement with Exxon and the availability of funds for possible parks and recreation purchases. He stated that there might be an opportunity to secure funding for park projects through the State Department of Natural Resources since they were in receipt of 10 million dollars for the loss of recreation facilities as a result of the oil spill. Jones stated that a group of residents would meet on August 23rd with Borough Attorney Boedeker, Borough Mayor Don Gilman, other Borough representatives and City Attorney Carol Giles to explore alternatives and possible coordination of a transfer of hospital facilities. COUNCIL DISCUSSION CRANE announced that he would like to give direction to the administration to proceed with lease negotiations with Seward Ship's Drydock for a new lease. ANDERSON clarified that it was time to open dialogue regarding what would happen to the lease on January 1st and consider outlining a new lease proposal with Seward Ship's Drydock. 233 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 233 KRASNANSKY agreed and stated that the city manager and city attorney should be involved from the beginning of new lease negotiations. BENCARDINO and DARLING agreed. Anderson, Bencardino, Crane, Darling and Krasnansky concurred with directing the administration to negotiate a new lease with Seward Ship's Drydock. CRANE stated that he was personally accepting letters of interest from concerned citizens who desired to serve on a committee to oversee the relationship between the city and Spring Creek Correctional Center regarding community education of prison policies, practices and procedures and to share problems that could arise. He explained that this would be a citizen committee rather than a formal city committee. Crane scheduled the quarterly Community Hospital Board/City Council joint work session for September 6th at 7:30 p.m. DARLING complimented the Chamber of Commerce on a record - breaking Seward Silver Salmon Derby. He thanked the American Legion for cooking at the awards banquet. He reminded all voters of the primary election on August 23rd. BENCARDINO asked the administration to include the development of a ball field in the upcoming budget. KRASNANSKY disagreed with Bencardino's earlier statement regarding the city parks. He stated that the parks looked better each year and the existing parks were well maintained. BENCARDINO replied that, except for the Waterfront Park, other parks needed considerable work. He noted that, if more parks were added, there was less opportunity to maintain the parks. SIEMINSKI asked Jones to report on the sales tax. JONES reported that tax revenues were up. He agreed with Sieminski that the increased revenues were relative to the increased cost of living. ANDERSON commented on the city parks. She stated that the Forest Acres park and campground needed work and she added that this area could be better utilized to enhance city revenues. She commented that the Waterfront Park looked good. ANDERSON urged the public and the Council to comment on the draft Small Boat Harbor management agreement. She noted that the harbor had sustained various businesses including commercial fishing, seafood processing, tourism and the railroad. She noted that the vessels moored in the harbor comprised a significant tax base for the city. She thanked Dave Calvert and the administration for paving the area around the physical therapy building which provided handicap access to the entrance. She reported 234 City of Seward, Alaska City Council Minutes August 22, 1994 Volume 30, Page 234 that the hospital laboratory was relocated and a room was being prepared for installation of the new x -ray equipment. She stated that those citizens who had complaints about the returning odor from the meal plant should notify Meehan By- Products. She commented that only 31 percent of those businesses required to pay the parking assessment had responded and she wondered whether or not this program was successful. JONES replied that the program was not successful so far. He reported that letters were sent out by the finance department and he expected a significant response in the near future. CITIZENS' DISCUSSION JIM PRUITT, Maple Street, asked for clarification on the process regarding his lease. He stated that he had committed to financing with AIDEA and paid a non- refundable deposit. He noted that he had a dilemma on whether or not to order and erect the 300 foot building next spring. He stated that he needed clear direction from the Council since his commitment for financing was postponed at this time. He added that he had no objection to new lease agreement negotiations. He gave a background of the company's history and stated that it was possible that SSD could assume maintenance and operation of the syncrolift. He asked if the city intended to negotiate a new lease in return for setting aside the requirement for erecting the building. RANDY MCFARLAND, 232 Fifth Avenue, spoke about the lack of support for the parking assessment program. He noted that some tour boat operators were collecting a $1.00 per head harbor fee from each tourist. He asked when a final report on the parking assessment would be available. CRANE asked the administration to look into the fee being assessed by tour boat operators. WILLARD DUNHAM, Forest Acres, Alder & Dimond, thanked the Council for its action regarding the ASLC. He requested that minor changes be made to the council chambers to allow the public to be able to view visual aids when they were being used. He thanked the Council for the installation of the north launch ramp in the small boat harbor. He suggested that Mayor Crane consider an equal balance of citizens and representatives of government and businesses on the prison committee. He stated that it was important to involve more citizens than was being proposed. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 11:03 p.m. 235 City of Seward, Alaska August 22, 1994 City Council Minutes Volume 30, Page 235 r'inda(S. Yuxphy, AAE City Cle lc (Ci g no�'a�t OF Shy, e w SE i V d ,m City of ` � SAW .•- w City Council Minutes Volume 30, Page 235 CALL TO ORDER The September 12, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk Patricia J. Jones, Deputy City Clerk CITIZENS' COMMENTS Agenda items not scheduled for public hearing \ � J Dave W. Crane Mayor Louis Bencardino James Krasnansky Bruce Sieminski KEVIN WALKER, Bear Lake Road, spoke in favor of development of the Nash Road Small Boat Harbor. 236 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 236 STU CLARK, 1129 Park Place, spoke regarding Resolution 94 -173 indicating city support for the Alaska SeaLife Center project. He asked if the resolution supported actual city assistance for funding of the project. FRED GEORGES, Small Boat Harbor, Vice Commodore, Kenai Fjords Yacht Club, spoke in support of a new small boat harbor at Nash Road or Lowell Point. He stated that the city needed more boat slips and harbor space. Items other than those appearing on the agenda LOUIE MARCH, Mile 5.5 Seward Highway, encouraged support of Ballot Measure 3, moving the state capital to Wasilla. He highlighted several benefits to the community including; no need for a lobbyist since the Council could lobby, less expensive travel costs, savings of taxpayer money and easy access to the capital by all citizens. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agen- da. Anderson requested that the video presentation be shown after the City Manager's report. Anderson moved Resolution No. 94 -173 to the regular meeting agenda. Sieminski moved Resolution No. 94 -165 94 -169 and 94 -170 to the regular meeting agenda. VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The August 22, 1994, minutes were approved as written; Resolution No. 94 -164 approving a short term lease of property to Mactel Cellular Systems for a communication tower site at 707 Nash Road, was approved; Resolution No. 94 -166 authorizing the city manager to award a contract to Afognak Logging to provide winter street sand and salt and to issue a purchase order to Van Water & Rogers for the purchase of additional salt and calcium chloride, was approved; Resolution No. 94 -167 authorizing the execution of an equipment lease /purchase agreement by and between the city and National Bank of Alaska Leasing Corporation and providing for related matters, was approved; 237 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30. PaQe 237 Resolution No. 94 -168 authorizing the purchase of additional trash containers for the harbor without full utilization of city bid procedures and appropriating funds, was approved; Resolution No. 94 -171 reappropriating funds to complete repairs of substation reclosers and relays, was approved; Resolution No. 94 -172 reappropriating funds to complete the remediation project at the Ft. Raymond Substation, was approved; Resolution No. 94 -174 approving Amendment No. 4 confirming completion of the Spring Creek Correctional Center Project No. 57863, was approved; and Claim for damages totalling $972.50 as filed by Patricia Hoagland was forwarded to the city's insurance adjuster for settlement. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly gave a verbal report of the assembly meeting held on September 6th in Homer. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -35 amending the Land Use Plan and rezoning the Waterfront Tracts site of the Alaska SeaLife Center to Central Business District. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. STU CLARK, 1129 Park Place, stated that the Planning and Zoning Commission had recommended that the Waterfront Tracts be zoned to Institutional. He stated that the City Council had introduced an ordinance at its last meeting to change the zoning to Central Business District (CBD). He asked the Council to consider the Planning Commission's recommendation before approving the rezone. LEO WAKEFIELD, 439 Fifth Avenue, spoke in favor of zoning the Waterfront Tracts to CBD. He stated that the project, which was supported and needed by the community, should move forward at this time. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Sieminski) Enact Ordinance No. 94 -35 Motion Passed. Unanimous 238 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 2 Resolution No. 94 -162 confirming the special assessment roll of the Bear Lake Electrical Assessment District and providing for the levy, payment schedule and penalties of the special assessment district. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. JEANNE WALKER, Mile 1.2 Bear Lake Road, stated that she and her husband were owners of a lot in Bear Lake Subdivision. She thanked the City Administration and City Council for creating the assessment district and providing electricity to the site. She thanked the engineering department for a job well done. BONNIE PERATA, Bear Lake Road, stated that she provided her own electricity through wind generation. She stated that she was forced to pay the assessment, therefore she way paying for electrical power twice. She stated that there was debate at the last meeting when the improvement district was approved for construction and the final decision was to allow a deferment of the assessment on her two lots. She stated that, although her payment was deferred, the interest would still accumulate and she objected to paying the interest. She asked the Council to consider deleting her two lots from the assessment district and making up the difference by charging the other property owners who wanted power. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -162 Anderson asked for an explanation of the deferment issue. Finance Director Gifford stated that, when the Council originally authorized the city to proceed with the improvements, the Council agreed to deferring payment on the Perata's share of the cost of the improvements until their property was sold or they hooked up to city electrical power. He stated that the interest on the account would accumulate at about $140.00 per year. He added that the city was required to carry the account on its books even though the assessment was deferred. Bencardino asked if she was required to pay the assessment. He stated that there should be a two or three year delay in charging interest. Anderson stated that she supported the resolution as written. Krasnansky remembered that the Peratas had indicated that they would take care of the cost privately by contacting the other property owners to see if they would absorb the assessment. VOTE ON MOTION TO APPROVE RESOLUTION 239 City of Seward, Alaska City Council Minutes S ep t ember 12, 1994 Volume 30, Page 239 Motion Passed. RESOLUTIONS Unanimous Resolution No. 94 -163 approving the Nash Road Small Boat Harbor Master Plan MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -163 Darling declared a conflict of interest since he owned a major portion of the property surrounding the project and was a party to a proposed land agreement with the developer. Crane ruled that a conflict existed and Darling should refrain from discussion and voting. Crane stated that, at a work session held earlier, it was decided that the resolution would be considered for approval and the administration would meet with the developer:to come to a mutual understanding regarding the eight points included in the resolution. He stated that all eight requirements, including an agreement to be finalized by all affected property owners, would be resolved by the September 26th Council meeting. The Council concurred that the deadline included in the development agreement would be extended to September 26th, and Crane instructed the administration to prepare a resolution for consideration at the next meeting to amend the development agreement to extend the deadline from September 15th to September 26th. Anderson asked the city attorney to comment on extending the deadline on the agreement after the fact. Klinkner replied that the City Council could consider the matter and vote to extend the deadline of the development agreement on September 26th. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Unanimous Resolution No. 94 -165 authorizing the city manager to renew the annual software maintenance agreement with Timeline, Inc., for the period October 1, 1994, through September 30, 1995, and to issue a purchase order to Timeline, Inc., in the amount of $13,200 MOTION (Krasnansky /Sieminski) Approve Resolution No. 94 -165 Sieminski asked why the funds were being spent. Jones explained that the annual maintenance of the software was necessary to maintain, update and improve the finance department's computer system and was before the Council for approval because the amount exceeded his $10,000 approval limit. 240 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 240 VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Resolution No. 94 -169 amending the Community Schools budget to provide additional youth programs MOTION (Krasnansky /Sieminski) Unanimous Approve Resolution No. 94 -169 In response to a question from Sieminski, Jones explained that revenues generated from the programs would be deposited into the general fund and expenses of the program would be charged against those revenues. He stated that the programs were 100 percent user fee sponsored. In answer to a question from Sieminski, Parks and Recreation Director Sturdy explained that the cost of each program would be paid for by the users. She explained that, if there were not enough participants to cover the cost of each class, the class would be canceled. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Resolution No. 94 -170 reappropriating funds to complete highmast lighting at the North Dock MOTION (Krasnansky /Sieminski) Unanimous Approve Resolution No. 94 -170 Sieminski asked whether or not the funds being reappropriated were in addition to the amount originally approved. Calvert stated that the lights had been delivered and paid for from the Fiscal Year 1994 budget but the poles were not delivered until after the beginning of Fiscal Year 1995. He explained that this was a reappropriation of the original funds. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Unanimous Resolution No. 94 -173 indicating city support of the Institute of Marine Science required infrastructure improvement project MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -173 241 City of Seward, Alaska City Council Minutes S ep t ember 12, 1994 Volume 30, Page 241 Anderson stated that she had removed the resolution from the consent agenda in order to answer Mr. Clark's question about city funding of the project. Jones replied that the city was in support of funding for the project but would not actually provide any funds. MOTION (Anderson / Krasnansky) Amend Section 2 by inserting "assuring" after "to assist in ". Motion Passed. Unanimous VOTE ON MOTION TO APPROVE RESOLUTION AS AMENDED Motion Passed. Unanimous UNFINISHED BUSINESS Items postponed from the August 22, 1994 meeting Introduction of Ordinance No. 94 -30 amending SCC § 8.30.020 to exempt the rental of one single family residence from the requirement for a business license. Crane noted that introduction of this ordinance had been postponed at the last meeting. O'Brien declared a conflict of interest stating that he should not vote on an issue that was directly related to his primary business of apartment rentals. Crane ruled that no conflict existed since O'Brien did not have a substantial financial interest. MOTION (Anderson /Bencardino) Appeal the ruling of the Chair In answer to a question from O'Brien, City Clerk Murphy stated that he could participate in debate on the motion before the Council. Sieminski stated that O'Brien had voted on the original ordinance, which required a business license by all businesses, and he stated that O'Brien should vote on an amendment to the ordinance. O'Brien explained his reason for declaring a conflict of interest. He stated that the original ordinance affected every business in town while the ordinance before the Council was an amendment that affected only the rental industry. Krasnansky asked why this action was being done again (appealing the ruling of the chair). Murphy explained that the correct procedure for declaring a conflict had not been followed at the time of the original vote, and this was an attempt to correct the action taken October 8th. 242 City of Seward, Alaska September 12, 1994 City Council Minutes Volume 30, Page 242 Darling stated that nobody present had a substantial financial conflict on this issue. VOTE ON MOTION TO SUSTAIN THE RULING OF THE CHAIR The Chair's ruling was sustained. YES: Bencardino, Crane, Krasnansky, Sieminski NO: Anderson, Darling, O'Brien NO: Anderson, Crane, Darling, Kras- nansky O'Brien refused to vote. VOTE ON MOTION TO INTRODUCE ORDINANCE Motion Failed. YES: Bencardino, Sieminski NEW BUSINESS Initiative Ordinances No. 94 -1 and No. 94 -2 Murphy stated that she would follow the Council's direction with respect to the initiative ordinances; however, she felt strongly that this was an area which was not subject to Council review or action. She noted the letter she had received from former Fairbanks North Star Borough attorney Jim Nordale which had been distributed to the Council by Councilmember Anderson supporting this view. Murphy stated that, if the Council insisted on giving direction, that it be done by formal motion. Klinkner outlined the legal implications of the actions open to the Council and the Clerk. He stated that it was clear that the dedication of tax revenues was an invalid subject for an initiative petition and the Clerk would have been justified in denying the petitions as submitted. He questioned whether a court would uphold the ordinances as originally worded and stated that a court might find that the question of dedication was a fatal flaw and would result in overturning the entire ordinance even if approved by the voters. He also questioned the Clerk's authority to edit the ordinances by separating the question of the tax from the question of dedicating tax revenues. He stated that the best way to proceed was to reject the petitions and to start the process anew. Klinkner added that, since the Clerk had exceeded her authority by editing the ordinances to be placed before the voters, the Council was within its rights to take action with respect to the placement of the propositions on the October ballot. Crane agreed that the process should begin again. He noted that the Clerk's attempt to gain support for her actions from the petition signers had not been successful and had resulted in approximately 50% response to her mailed questionnaire. He stated that decertifying the petitions at this time would be the most cost effective approach for the city. Anderson objected, 243 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 243 stating that no one could predict the cost of allowing the vote to take place on October 4th since it was not certain that there would be a challenge of the election. Darling and Sieminski both agreed that this was a decision that should be left to the City Clerk. O'Brien objected to pursuing any action that would open the city to a legal challenge. Darling responded that either course of action was likely to result in a law suit. Bencardino stated that by allowing these propositions to go forward the Council was turning its back on the business community and the agreements made last year that there would be no bed tax or head tax. Murphy reminded Council that this action was being brought by the voters of the community and not the Council. In response to a question from Krasnansky, Murphy stated that she had never decertified a petition in the past. Crane asked if she had ever certified an illegal petition in the past, and Murphy responded that she did not characterize this as an illegal petition. Rather, the ordinance contained one phrase that was an impermissible subject for the initiative process. MOTION (Crane / Bencardino) Motion Failed. CITY MANAGER REPORTS To instruct the City Clerk to remove Propositions No. 26 through 29 from the October 4, 1994, ballot. YES: Bencardino, Crane, O'Brien NO: Anderson, Darling, Krasnansky, Sieminski Procedures for use of portable water meters Jones reported that the administration had made changes to the procedures regarding the reading of portable water meters. Procedures for handling negotiated settlements of utility bills Jones stated that a new policy had been implemented as recommended by Engineering and Utilities Manager Calvert to notify the Council of any adjustments to utility bills exceeding $100 and to seek Council approval for any adjustments totalling more than $1,000. Update on city shop maintenance and landscaping In response to a request by Councilmember Sieminski, Jones updated the Council on maintenance and landscaping of the city shop. He stated that it would cost about $25,000 to paint the building, remove the alders and upgrade and clean up the area surrounding the city shop. He stated that the construction of an unheated, unfinished shed to house the city equipment would cost approximately $100,000. Sieminski stated that the public was complaining about the site and he wanted to see it cleaned up as soon as possible. Jones stated that there were plans to clean up the area this fall. 244 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 244 Anderson spoke in favor of clean-up and painting. She stated that the funds for further work should be included in the budget planning process. Bencardino stated that he was not in favor of funding at this time but agreed with Anderson to include it in next year's budget discussion. Darling agreed. Jones continued with his report. He stated that he would be attending an ICMA Conference next week. He noted that he would meet with Ogden Beeman & Associates in Oregon on the trip down to discuss the syncrolift and a list of topics to be discussed regarding the lease negotiations with Seward Ships Drydock. He stated that his list included: insured integrity of the facility; the goal to have ongoing maintenance; integrated facility management; insurance requirements; an environmental plan that protects the city and tenant; marketing and customer satisfaction; adequate training for operation and maintenance of the facility to be secured by the tenant; a revenue stream from the facility and the ground around the facility; an overall development plan including a marketing plan; a multiple user tariff; ensure independent inspections to maintain the facility to class including interim third party inspections and city access for facility and site inspections; a longer term lease to secure financing or a shorter term lease with renewal options; subleases or assignments only with Council approval; detailed pre - appraisal of the property; and reimbursement of city expenses prior to the effective date. He stated that he would be bringing back additional topics from this meeting. Jones stated that, on the trip back, he would be stopping in Juneau to discuss the docking of the Tustumena with the Alaska Marine Highway System. Jones noted that DOUPF had published an invitation to bid on decorative street lights for Seward. He stated that the project was scheduled to be completed by June 1995. Jones reported on the KPMG Peat Marwick report regarding the finance department and the audit. He stated that staff morale was high, effective cross training was conducted and non- audit finance work was staying current. He added that further training would be given to finance staff in governmental accounting. He stated that the staff had worked overtime during the audit and a temporary hire had been employed to handle accounts payable. Jones reported that the new controller would be hired by October 1st. Jones reported that a total of $54,082.50 had been received from parking assessments. He stated that the city's portion of the Exxon Valdez Oil Spill litigation settlement was $50,000 and the city should receive $30,000 to $35,000 at this time. He added that there were still two phases of additional court action from which the city should receive additional funding. Jones thanked Michael Moore, Seward Volunteer Ambulance Corps, for sending a prompt letter regarding complaints from the public about ambulance noise. PRESENTATIONS WITH PRIOR NOTICE ONLY Crane presented a $150.00 donation to the youth center from Bill Ziegler a recipient of $2,500 in prize money from the Silver Salmon Derby. 245 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30. Pave 2.4.5 Video presentation - "Benefits of Parks & Recreation " A fifteen minute video was presented. COUNCIL DISCUSSION ANDERSON asked for an explanation of private activity bonds. Jones replied that these bonds could be used for a number of projects, from park development to a sewage treatment plant. KLINKNER discussed the differences between government purpose bonds, used by government for infrastructure projects and repaid by that governmental entity, and private activity bonds, used for individual private enterprise projects and repaid by a private entity. He explained that each state was authorized to issue a limited number of private activity bonds annually. He noted several projects that could be financed through the bonds including docks, airports, sewage treatment facilities and small manufacturing facilities. ANDERSON stated that she would like information on the Small Boat Harbor Management Agreement and she wanted to know if the attorney was involved in the negotiations. Jones replied that Klinkner had been involved and would be reviewing the final version of the agreement before it came to Council for approval at the next meeting. ANDERSON voiced appreciation to the city manager for advising of his travel plans. She stated that she was awaiting completed evaluation forms from Councilmembers O'Brien and Darling. She suggested that Council revise the evaluation form for the city attorney including the deletion of certain questions that only applied to a local employee. Klinkner stated that he would be happy to comment on the form. Anderson stated that a Healthy Communities Forum would be held at the high school on September 23rd. She commented that the work session with the hospital board was productive. She noted that she was still looking at options for the hospital including networking with other borough hospitals or the possible creation of a service area. BENCARDINO thanked Bob Valdatta for cutting the brush on the east side of the bay and noted his appreciation for all the volunteer work Valdatta performed for the community. He reported that he had recently conducted an informal survey of tourists riding a local tour bus and had discovered that they had spent an average of $20.00 each in the downtown area and were generally impressed with the quality of the gifts in the downtown shops. In response to Bencardino's suggestion that the city upgrade the ground in the SMIC area with chipped asphalt or gravel to enhance the area and entice new industry, Harbormaster Singleton reported that this approach would be cost prohibitive since the city did not have the equipment necessary to do the job. He added that the area around the North Dock and the Inlet Salmon Dock was being graded to allow for better drainage. KRASNANSKY complimented the city for holding the line on city budgets over the past few years. He asked why the ordinance he had requested regarding a Councihnember's refusal to vote (and casting that vote on the prevailing side) had not been prepared and presented to the 246 City of Seward, Alaska City Council Minutes September 12, 1994 Volume 30, Page 246 Council for consideration. Murphy apologized and stated that she would place this on the next meeting agenda. Krasnansky also noted that Richard Jones had been hired to fill the hospital administrator's position on a temporary basis, and he asked when a permanent replacement would be hired. CRANE asked for suggestions to speed up the evaluations of the manager, attorney and clerk. The clerk's evaluation was scheduled for September 19th following the Board of Adjustment Hearing. The attorney and manager's evaluations were scheduled for prior to the September 26th Council meeting. CITIZENS' DISCUSSION LINDA MURPHY, City Clerk, stated that absentee voting would begin on Monday, September 19th, and those voters unable to come to city hall could contact the clerk's office for delivery of a ballot. She reminded the Council of the Board of Adjustment Hearing on September 19th. Murphy apologized to Mayor Crane for comments made earlier in the meeting regarding the petitions. WILLARD DUNHAM, Forest Acres, thanked the City Council for its actions regarding the Alaska SeaLife Center project. He also stated that it was time to stripe the streets again with the onset of winter. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Crane stated that he appreciated the clerk's comments. He stated that sometimes issues surfaced that were emotionally charged and he hoped that nobody took any comments made personally. ADJOURNMENT The meeting was adjourned at 10:30 p.m. S. urph , C G City Clerk ®`eeb • 4 0 ,ae'4k (City q 'ARP • e rw L IE �tQ- Dave W. Crane Mayor 247 City of Seward, Alaska Septembe 19, 1994 City Council Minutes Volume 30. Pare 247 CALL TO ORDER The August 19, 1994, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councihnember Krasnansky led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Louis Bencardino James Krasnansky Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk Patricia J. Jones, Deputy City Clerk ABSENT was: Hugh Darling (excused) APPROVAL OF SPECIAL MEETING AGENDA MOTION (Krasnansky /Bencardino) Approve the Special Meeting Agenda. Motion Passed. SPECIAL ITEMS Unanimous Board of Adjustment Hearing on appeal of Conditions 6 and 7 of the Conditional Use Permit issued to SAAMS for operation of a marine research and public education facility on what is currently identified as Seward Waterfront Tracts 2 -6, the public dock and access road, and an associated off -site employee parking lot on Block 5A, Oceanview Subdivision- Addition No. 1. Yanez explained Conditions 6 and 7 of the CUP and gave a brief history of the Conditional Use Permit. He stated that the Planning Commission had decided that a public I V City of Seward, Alaska City Council Minutes September 19, 1994 V olum e 30, Page 248 restroom was needed outside the Alaska SeaLife Center in addition to a restroom inside the facility to accommodate visitors. He stated that the public had commented on the tradition of putting up the Christmas tree at the end of 4th Avenue each year. Darryl Schaefermeyer, Project Administrator, SAAMS, stated that the CUP application, as submitted to the City and the Planning and Zoning Commission, contained all the necessary requirements according to the Seward City Code. He noted that the Commission did not issue any findings of fact related to conditions 6 and 7. He stated that SAAMS would provide adequate restroom facilities for visitors to the ASLC. He added that SAAMS should not be required to provide restrooms outside the facility, and he asked that this requirement be considered during upcoming land transfer negotiations. He stated that SAAMS would plan to decorate during the Christmas holiday but he did not feel that SAAMS should be mandated to provide a permanent Christmas tree in the plaza area. Schaefermeyer requested that the Council be flexible in locating a place for the tree. Bencardino agreed with giving SAAMS flexibility in this area. Anderson suggested the development of a joint plan between SAAMS and the City to address the conditions. Schaefermeyer answered that SAAMS hoped to secure a lease or conveyance of the property from the City in the near future. He stated that the Environmental Impact Statement would be completed by November, and the Exxon Valdez Oil Spill Trustee Council would decide on the funding for the project at that time. He stated that active negotiations would continue through October and conclude in November, and he hoped that these issues could be addressed by then. Anderson asked about including the conditions in the lease. Schaefermeyer agreed that agreed that these conditions could be discussed during lease negotiations or included in a site agreement. MOTION (Krasnansky /Anderson) Uphold the appeal of CUP Condition No. 6, requiring SAAMS to provide public restrooms in the plaza area in addition to those inside the facility. Crane asked if there were any other public domain facilities that provided additional restrooms. Martin replied that the National Park Service, under the terms of its lease with the city, had been required to construct restrooms outside the facility. He noted that these restrooms were maintained by the city. VOTE ON MOTION TO UPHOLD THE APPEAL Motion Passed. Unanimous The Clerk was instructed to issue an amended permit. City of Seward, Alaska Septem 19, 199 City Council Minutes Volume 30, Page 249 MOTION (Anderson/Krasnansky) Motion Passed. CITIZENS' COMMENTS None Uphold the appeal of CUP Condition No. 7, requiring SAAMS to provide a perma- nent planted Christmas tree in the plaza area. Unanimous. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 8:03 p.m. Lines S. Mu} ® / City Cler - % � 4 �, j s 0 e (City Seals IZ .:..Y r11.1 , i^ Dave W. Crane Mayor W 1W City of Seward, Alaska September 26, 1 994 City Council Minutes Volume 31, Page 1 CALL TO ORDER The September 26, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk CITIZENS' COMMENTS Louis Bencardino James Krasnansky Bruce Sieminski Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Krasnansky /Bencardino) Approve the Agenda and Consent Agenda as presented. Anderson noted her abstention on Resolution No. 94 -179 due to a conflict of interest. Jones requested an executive session to discuss an issue, the immediately knowledge of which could adversely affect the finances of the city. N City of Seward, Alaska City Council Minutes September 26, 1994 Volume 31, Page 2 MOTION (Bencardino /O'Brien) Motion Passed. Meet in executive session to discuss an issue, the immediate knowledge of which could adversely affect the finances of the city. Unanimous Jones noted Ordinance No. 94 -38 Substitute replacing the ordinance contained in the Council packets. He explained that the substitute ordinance contained no substantive changes but had been reworded for clarity. Jones also requested that Resolution No. 94 -182 be moved to the regular meeting agenda. He stated that he would present a substitute resolution for Council consideration when that item came to the floor. Finally, Jones requested the deletion of Resolution No. 94 -178 from the agenda. Sieminski moved Resolution No. 94 -175 to the regular agenda. He also asked that a discussion of funding for Council attendance at the upcoming Alaska Municipal League conference be added to New Business. Sieminski also asked the city manager to report on dredging of the Alaska Railroad Dock. VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The September 12, 1994, regular meeting minutes and the September 19, 1994, special meeting minutes were approved as written; Ordinance No. 94 -33 amending Seward City Code § 3.15.040, regular part-time employ- ment, and § 3.15.060, overtime, was introduced and public hearing was set for October 10, 1994; Ordinance No. 94 -36 levying the assessments for the special improvement district de- scribed as the Bear Lake Electrical Assessment District, was introduced and public hearing was set for October 10, 1994; Ordinance No. 94 -37 amending Seward City Code § 5.20.050 to provide for the levying of assessments by resolution rather than ordinance, was introduced and public hearing was set for October 10, 1994; Ordinance No. 94 -38 Substitute amending Seward City Code § 3.55.010, Resignations, was introduced and public hearing was set for October 10, 1994; 4� City of Seward, Alaska City Council Minutes September 26, 1994 Volume 31, Page 3 Ordinance No. 94 -39 amending Seward City Code § 2.10.035 B. regarding Council voting procedures, was introduced and public hearing was set for October 10, 1994; Resolution No. 94 -176 authorizing a one -year extension of the banking services agreement with First National Bank of Anchorage, was approved; Resolution No. 94 -177 requesting Municipal Assistance Funding from the State of Alaska, was approved; Resolution No. 94 -179 supporting Seward as the site for development of a mariculture technical center and shellfish hatchery, was approved; Resolution No. 94 -180 authorizing the city manager to enter into a contract with Derrald J. Hilderbrand to provide meter reading services, was approved; Resolution No. 94 -181 authorizing the city manager to award a contract to Afognak Logging to perform on -call snow plowing and sanding services for Nash Road, the SMIC area and Lowell Point Road, was approved; Request for Council consent to submission of a preliminary plat of the Seward Waterfront Tracts, to combine Tracts 2 -6, the municipal dock and the vehicle access road as a single parcel, and leave the Hoben (Ladies) Park, the old railroad depot building site and Tract 1 as a separate parcel, to the Kenai Peninsula Borough for approval was approved; and Alaska SeaLife Center Environmental Impact Statement and National Historic Preservation Act Section 106 Memorandum of Agreement was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present. RESOLUTIONS Resolution No. 94 -175 accepting a grant from the Alaska Department of Fish and Game for construction of a sewer pumpout station in the Small Boat Harbor and appropriating funds. Sieminski asked why $7,000 was being appropriated from the general fund. Harbor- master Singleton replied that the fund transfer was an accounting function and did not represent real dollars. MOTION (Sieminski/Bencardino) Approve Resolution No. 94 -175 Motion Passed. Unanimous City of Seward, Alaska City Council Minutes September 26, 1994 Volume 31, P age 4 Resolution No. 94 -182 Substitute, amending the Nash Road Small Boat Harbor Development Agreement Jones explained that the substitute resolution included an extension of time to October 24th to allow Mr. Schafer sufficient time to finalize negotiations and obtain written consent to his project from adjacent property owners. MOTION (Krasnansky /Bencardino) Approve Resolution No. 94 -182 Substitute Jones distributed a supplement to the Nash Road Small Boat Harbor Master Plan which included satisfactory completion of seven of the eight issues outlined in Resolution No. 94 -163 He stated that Schafer was still negotiating with the Darling family over property issues. He noted that concerns of the Darlings were outlined in the September 26th letter from Al Schafer to the City. He stated that the planning phase would continue, and the developer would be applying for a Conditional Use Permit in the near future. Jones gave a detailed overview of the supplement to the master plan dated September 26, 1994. He included information on the planning, construction and operation phases of the project including location; zoning; covenants; the proposed budget; schedule for design, permitting and construction; agreements with individual property owners; utility expansion planning; and a financing and market study. He explained that the City would be responsible for providing utilities to the site. He added that the City planned to seek legislative support for funding of the project. He stated that steps had been taken to resolve the concerns of the adjacent property owners. Anderson asked if the City was obligating itself to provide utilities by approving the resolution. She also asked if Schafer would have recourse against the City if he committed personal funds to his project and the City then found that it could not provide the utilities. Klinkner replied that the City was under no obligation to actually provide utilities if it could show that it had used its best efforts to provide the utilities and had been unsuccessful in those efforts. VOTE ON MOTION TO APPROVE SUBSTITUTE RESOLUTION Motion Passed. YES Anderson, Bencardino, Crane, Krasnansky, O'Brien, Sieminski ABSTAIN Darling NEW BUSINESS Appropriation of funds for AML Conference In response to a question from Crane, Murphy provided budget information, stating that sufficient funds were available to allow four or five councilmembers to attend the AML Conference, City of Seward, Alaska City Council Minutes September 26, 1994 Volume 31, Page 5 The Council instructed the clerk to determine how many councilmembers would attend the AML Conference before proceeding with a budget amendment to cover the costs. CITY MANAGER REPORTS Jones reported on his recent trip. He stated that he had met with and reached an agreement with the Alaska Marine Highway System (AMHS) that the Tustumena would use the Fourth Avenue Dock through February 1995 until it was taken out of service for maintenance. He stated that a new agreement would provide for use of the Alaska Railroad (ARR) Dock and the use of the North Dock when cruise ships were berthed at the ARR Dock. Jones reported that dredging at the ARR Dock could possibly be done using remaining multi -user dock (B Street Dock) grant funds totalling $300,000. Sieminski stated that the Corps of Engineers should dredge the dock in addition to resolving the problem with Resurrection River drainage. Jones stated that he had inspected the Resurrection River drainage problem at the airport site and he noted that the City was working with various state and federal agencies to resolve this problem. Anderson suggested that the dredged material be used to create additional uplands in the harbor area. She commented that the City and the ARR should work together to address this issue. Crane agreed that all of the involved agencies needed to work together to solve the problem. He stated that the ARR had a dredging permit that expired at the end of the year. He added that no funding was available from the state but he hoped to acquire federal funding for the project. Jones continued with his report. He stated that the Alaska Department of Transportation and Public Facilities was responding to comments and compiling the final Small Boat Harbor Management Agreement for presentation to the Council on October 24th. Jones asked for Council input regarding a request by the Seward Volunteer Ambulance Corps for help in preparing the site for construction of its building by utilizing city equipment and staff on a volunteer basis. Jones reported that revenue received to date from parking assessments totalled $58,262.50 which was $11,000 short of projected revenues. Jones reported on his meeting with Ogden Beeman to discuss the syncrolift. He requested a work session to discuss key issues for use and maintenance of the syncrolift. He stated that it was time to consider legislative priority projects for the upcoming legislative session. Jones reported that Shoreside Petroleum would be conducting an oil spill exercise in Resurrection Bay in October. He noted that he would be going to Juneau to assist SAAMS in M City of Seward, Alaska City Council Minutes September 26, 1994 Volum 31, Page 6 generating agency support for the Alaska SeaLife Center project and he would travel to New Orleans with the SAAMS Board to attend an aquarium workshop. COUNCIL DISCUSSION ANDERSON thanked Vice Mayor Krasnansky for helping her analyze and compile the evaluations of the appointed officers. In response to Krasnansky's inquiry on September 12th, Anderson reported that the hospital board planned to continue with the current arrangement of utilizing the services of Hospital Administrator Richard Jones on a shared basis with Wesley Rehab and Care Center. The board had indicated that the arrangement was working to the satisfaction of everyone. She asked the Council to review the response from the attorney to her request for legal services regarding the hospital. She stated that the $10,000 estimate for legal services to research the possibility of privatizing the hospital was higher than she had anticipated, and she suggested that the Council consider authorizing a legal budget to initiate the project. O'BRIEN stated that, before authorizing legal research, the administration should look into the cost to the city of removing hospital employees from the PERS system. ANDERSON replied that one of the attorneys associated with Klinkner's firm was an expert on PERS issues. KLINKNER confumed that Rob Johnson was an expert in this field and noted that the $10,000 estimate quoted was based on a "worst case scenario." O'BRIEN reiterated that it would be best to solve problems in -house before authorizing additional legal fees. KRASNANSKY suggested direct Council control over the hospital and elimination of the hospital board. CRANE supported using the administration to do as much as possible before involving the attorneys. He suggested an initial budget of $2,500 to begin the process of finding a solution to the hospital's funding problems. JONES stated that Councilmember Anderson was working with the administration to try to solve the hospital problem. He stated that the Finance Department could develop an estimate with the help of the State PERS staff and create a report for review by the attorney. The Council concurred to an initial budget totalling $2,500 for legal services to research the possibility of privatizing or forming a not for profit corporation to manage the hospital. ANDERSON thanked Krasnansky for his years of service on the City Council and commended him for his willingness and dedication to the city and his knowledge of the city code. She voiced her appreciation to the candidates running for Council. City of Seward, Alaska City Council Minutes September 26, 1994 Volume 31, Page 7 The City Council had no objection to the use of city equipment and personnel to assist SVAC with its site preparation. BENCARDINO thanked the Street Department for repairing Third Avenue. He reported that the Economic Development District would hold a meeting at AVTEC on Thursday, September 29th, at 12:00 Noon, and he invited the community, Council and Administration to attend. KRASNANSKY thanked Anderson for her comments. He stated that his new job required most of his time and he was not running for office since he could not dedicate the time needed to serve on the Council. He thanked his wife and family for standing by him during his term of office. The Council scheduled a work session to discuss syncrolift issues for Friday, October 7th, at 12:00 Noon. future. CRANE thanked Krasnansky for his service to the city and wished him the best for the CITIZENS' DISCUSSION DONNA ESTES GILES, 430 Third Avenue, stated that she operated a kitchenette lodging facility. She noted her opposition to the proposed bed tax. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS CRANE replied that the issue would be addressed at the polls on election day. ADJOURNMENT The meeting was adjourned at 9:01 p.m. and, following a short recess, the Council reconvened in executive session to discuss a matter, the immediate knowledge of which could adversely affect the finances of the City. Q J A Lx-� I S. urphy, tM City Cler K �V - ✓ Dave W. Crane Mayor City of Seward, Alaska October 5, 1994 City Council Minutes Volume 31, Page 8 CALL TO ORDER The October 5, 1994, special meeting of the Seward City Council was called to order at 4:00 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councilmember Krasnansky led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Louis Bencardino Hugh Darling James Krasnansky comprising a quorum of the Council; and Linda S. Murphy, City Clerk Patricia J. Jones, Deputy City Clerk ABSENT Margaret Anderson Patrick O'Brien Bruce Sieminski CITIZENS' COMMENTS Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None APPROVAL OF AGENDA MOTION (Krasnansky/Bencardino) Motion Passed. Approve the Agenda as presented. Without objection NEW BUSINESS Canvass of 10/04/94 Election Murphy noted that the Counting Center had counted 527 of the 543 ballots cast at the polls on October 4, 1994. She recommended that the Council reject ten of the questioned ballots cast on election day because these City of Seward, Alaska October 5, 1994 City Council Minutes Volume 31, Pare 9 voters had not fully complied with local and state law. In addition, she noted that 83 voters had requested absentee ballots and 71 of these ballots had been returned in time for the canvass. She recommended that the Council count all 71 of these ballots along with 6 of the questioned ballots cast at the polls. MOTION (Krasnansky/Bencardino) Motion Passed. To reject the 10 questioned ballots as recommended by the City Clerk and to count all remaining absentee and ques- tioned ballots. Unanimously Murphy introduced Barbara Shea, Kathy Shipe, Mary Lechner, Carol Freeman, and Judy Christiansen, the Counting Board. Following the tallying of the questioned and absentee ballots, Murphy read the following totals into the record: City Council (2 -year term) Bencardino, Louis Deeter, Darrell King, Jerry Sieminski, Bruce Whitman, Don Wood, D. E. Write -Ins Proposition No. 1 [By -Law Definition] Yes No Proposition No. 2 [General Penalties] Yes No Proposition No. 3 [Claims Procedures] Yes No Proposition No. 4 [Candidate Eligibility] Yes No 276 338 292 308 128 216 14 407 132 366 179 377 162 J City of Seward, Alaska City Council Minutes October 5, 1994 Volume 31, Page 10 Proposition No. 5 Proposition No. 14 [Certificates of Election] [Audit Requirements] Yes 423 Yes 478 No 140 No 85 Proposition No. 6 Proposition No. 15 [Terms of Office] [Assessments] Yes 469 Yes 437 No 92 No 118 Proposition No. 7 Proposition No. 16 [Emergency Police Powers] [Gender Neutrality] Yes 345 Yes 417 No 215 No 157 Proposition No. 8 Proposition No. 17 [Standing Committees] [Borough Assembly Representative] Yes 310 Yes 419 No 240 No 107 Proposition No. 9 Proposition No. 18 [Codification of Ordinances] [Special Election Notice] Yes 380 Yes 454 No 161 No 80 Proposition No. 10 Proposition No. 19 [Prosecution Limitations] [Revenue Bond Regulations] Yes 388 Yes 291 No 150 No 229 Proposition No. 11 Proposition No. 20 [Initiative/Referendum] [Council Meeting Place] Yes 373 Yes 441 No 143 No 120 Proposition No. 12 Proposition No. 21 [Anti- discrimination] [Contracting Procedures] Yes 464 Yes 370 No 83 No 180 Proposition No. 13 Proposition No. 22 [Transfer of Appropriations] [Charter Amendment Notice] Yes 378 Yes 428 No 172 No 102 City of Seward, Alaska October 5, 1994 City Council Minutes Volume 31, Page 11 Proposition No. 23 [City Clerk Department] Yes 310 No 228 Proposition No. 24 [Hospital Board] Yes 348 No 197 Proposition No. 25 [Filling Council Vacancies] Yes 409 No 130 Proposition No. 28 [Passenger Transit Fee Initiative] Yes 282 No 284 Proposition No. 29 [Dedication of PTF Revenues] Yes 296 No 244 Murphy noted that any defeated candidate or any ten registered voters of the city could contest the election or request a recount if a protest was filed in the office of the City Clerk no later than 5:00 p.m. on Monday, October 10th. Otherwise, the Council would vote to certify the election at its October 10, 1994, regular meeting. ADJOURNMENT The meeting was adjourned at 5:45 p.m. Dave W. Crane Mayor (City Seal) City of Seward, Alaska October 10, 1994 City Council Minutes Volume 31 Page 12 CALL TO ORDER The October 10, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Councilmember Bencardino led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Patrick D. O'Brien comprising a quorum of the Council; and Michael Yanez, Deputy City Manager Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk SPECIAL ITEMS Approval of minutes MOTION (Krasnansky/Bencardino) Motion Passed. Louis Bencardino James Krasnansky Bruce Sieminski Approve the 09/26/94 regular meeting minutes and 10/05/94 special meeting minutes as presented. Unanimous Certification of the October 4, 1994, election MOTION (Krasnansky /Bencardino) Motion Passed. Certify the October 10, 1994, election and declare the results official. Unanimous City of Seward, Alaska City Council Minutes October 10, 199 Volume 31, Page 13 Before turning the floor over to the Clerk for the swearing -in ceremonies, Mayor Crane presented retiring Councilmember Bencardino and Vice Mayor Krasnansky with gold pans thanking them for their service to the community. Swearing -in and seating o f newly elected Councilmembers The clerk administered the oath of office to newly elected Councilmembers Darrell Deeter and Jerry F. King and re- elected Councilmember Bruce Sieminski. The newly elected Councilmembers assumed their seats at the dais and participated in the remainder of the meeting. RECESS: The meeting recessed at 7:36 p.m. and reconvened at 7:44 p.m. Crane welcomed Councilmember King and Councilmember Deeter. CITIZENS' COMMENTS Agenda items not scheduled for public hearing None Items other than those appearing on the agenda None APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (Anderson/Sieminski) Approve the Agenda and Consent Agen- da as presented. Murphy noted a substitute Ordinance No. 94 -40 for introduction and requested the deletion of Resolution No. 94 -190 Sieminski requested the addition of New Business Item D, attendance by Council- members at meetings and work sessions. VOTE ON MOTION TO APPROVE AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: Ordinance No. 9440, amending SCC Chapter 8.20, vehicles for hire, was introduced and public hearing was set for October 24, 1994; Resolution No. 94 -184, certifying that the City of Seward did suffer significant effects during the program base year from fisheries business activities that occurred within the Cook Inlet Fisheries Management Area and authorizing the city manager to apply for funds from the Shared Fisheries Business Tax Program, was approved; City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 14 Resolution No. 94 -185, approving Lease No. RE -087 Amendment No. 1 to correct the legal description of the land leased to Inlet Fish Producers, Inc., was approved; Resolution No. 94 -186, approving an agreement between the Kenai Peninsula Borough and the City of Seward for emergency management services, was approved; Resolution No. 94 -187, accepting the amended cooperative agreement with Alaska Department of Fish and Game to construct two floats for the Northeast boat ramp and adjacent restroom facilities and appropriating funds, was approved; Resolution No. 94 -188, rejecting all bids for the Phase II construction of the Seward transmission line, was approved; Resolution No. 94 -189, ratifying the decision of the City Council sitting as a Board of Adjustment in the matter of an appeal filed by the Seward Association for the Advancement of Marine Science, was approved; and Resolution No. 94 -191, revising the city's records retention schedule, was approved. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Patrick Reilly was not present and no report was given. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94 -33, amending SCC § 3.15.040 and § 3.15.060, overtime Yanez explained that the ordinance contained housekeeping language, clarifying that all exempt personnel were exempt from overtime, and reflected the actual practice of paying overtime to city personnel. 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. MOTION (Anderson/Sieminski) Enact Ordinance No. 94 -33 In answer to a question from O'Brien, Yanez explained that employees working shifts currently received shift differential pay. In answer to a question from King, Yanez explained that overtime was paid to employees working less than 40 hours per week but over eight hours per day. Yanez noted that the City was governed by the Federal Labor Standards Act rather than the State Wage and Hour Act. King stated that he could not support the ordinance as written since it appeared to grant overtime to part time City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 15 employees who worked any hours outside their regular shift even if they had worked less than 40 hours during the week. In answer to a question from Anderson, Yanez explained the shift work in the police department. Discussion ensued regarding payment of overtime to part time employees working less than forty hours per week but more than their standard part - time work week. Yanez explained that the current practice was to pay part -time employees overtime only for hours worked in excess of forty hours per week or eight hours per day. O'Brien asked for the inclusion of a definition of overtime and the deletion of language pertaining to overtime for part time employees. Yanez asked for postponement of the ordinance if changes were made so that he could present the amended language to the city employees for comment. MOTION (Anderson/Sieminski) Motion Failed. MOTION (O'Brien/Deeter) Move the Previous Question. YES: Anderson NO: Crane, Darling, Deeter, King, O'Brien, Sieminski Delete from Section 3.15.060 A., the fol- lowing language: "which is not in their standard work week, regardless of whet- her they have worked less than forty hours in the week." In answer to a question from Darling, Yanez stated that this amendment would significantly affect some city employees and he felt that the amended language should be presented to the employees for comments. VOTE ON MOTION TO AMEND Motion Passed. YES: Darling, Deeter, King, O'Brien NO: Anderson, Crane, Sieminski VOTE ON MOTION TO ENACT ORDINANCE NO. 94 -33 AS AMENDED Motion Passed. YES: Anderson, Crane, Darling, Deeter, O'Brien NO: King, Sieminski City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 16 Ordinance No. 94 -36, levying the assessments for the special improvement district described as the Bear Lake Electrical Assessment District Finance Director Gifford explained that the ordinance levied the assessment for the Bear Lake Electrical Assessment District. 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. MOTION (O'Brien/Darling) Motion Passed. Enact Ordinance No. 94 -36 Unanimous Ordinance No. 94 -37, amending SCC § 5.20.050 to provide for the levying of assessments by resolution rather than by ordinance Murphy stated that passage of this ordinance would allow for the levying of assessments by resolution, thereby shortening the approval process. 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. MOTION (Anderson/Darling) Enact Ordinance No. 94 -37 Motion Passed. YES: Anderson, Crane, Darling, Deeter, O'Brien, Sieminski NO: King Ordinance No. 94 -38, amending SCC § 3.55.010, resignations Yanez explained that the ordinance would clarify the language in the City Code regarding resignations. 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. MOTION (Darling/Sieminski) Enact Ordinance No. 94 -38 Motion Passed. Unanimous City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 17 Ordinance No. 94 -39, amending SCC § 2.10.035 B. regarding council voting procedures Murphy explained that this ordinance was prepared to clarify how a vote would be cast when a councilmember who was qualified to vote refused to vote or when a councilmember was present at the meeting or out of the room when a vote was taken. She explained that the vote would be cast on the side receiving the most number of votes. She stated that, in the event of a tie, the vote would be considered a "no" vote. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. JIM KRASNANSKY, 536 Second Avenue, stated that he had sponsored the ordinance to clarify how a vote would be cast when a member refused to vote. He spoke in support of the ordinance. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Darling/Sieminski) Enact Ordinance No. 94 -39 Motion Passed. Unanimous Resolution No. 94 -183, approving an agreement between the City of Seward and NSI Partnership for office space rental in the Ray Building Yanez stated that the City had requested proposals for the provision of office space for city offices. He noted that two proposals were received in response to the request and NSI Partnership presented the best cost proposal for continued use of the Ray 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. MOTION (Sieminski/Anderson) Approve Resolution No. 94 -183 Deeter asked if all ADA requirements were met and if the city was required to provide access in accordance with ADA regulations. Yanez explained that city employees could meet with disabled citizens in a designated common area of the building. He noted that the owner of the building was responsible for compliance with ADA requirements. V City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 18 Anderson asked about liability insurance. Yanez explained that the city's general liability insurance policy covered any incident for which the city was responsible. Gifford explained that the city would be held harmless with respect to any suit or complaint filed regarding noncompliance with codes or regulations pertaining to building, safety, handicap access, fire or other codes, in accordance with section 11A of the lease agreement. The Council discussed various sections of the lease agreement including renovations, rent and maintenance. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Port and Commerce Advisory Board Quarterly Report JAMES PRUITT, Chairman of Port and Commerce Advisory Board, highlighted board action from July through September 1994. Anderson asked if a meeting was proposed with harbor users to receive input after the summer season. Pruitt stated that this suggestion would be considered by the board. Community Hospital Board Applicants JOAN CLEMENS,1301 Fourth Avenue, stated that she had been on the board for the past four years. She stated that she could bring knowledge and 40 years of nursing experience to the board as a professional in the medical field. E. G. SKINNER, 418 Second Avenue, stated that health care was a complicated matter and he would like to continue research in the field and use his knowledge to continue serving on the board for the next three years. NEW BUSINESS Community Hospital Board Appointments The Clerk distributed paper ballots and asked the Council to vote for not more than two applicants. Murphy retrieved the signed ballots, tabulated the results and announced that Joan Clemens and E. G. Skinner each received seven votes. Clemens and Skinner were appointed to three -year terms on the Community Hospital Board by unanimous consent. Election of Vice Mayor Crane called for nominations for Vice Mayor. Anderson nominated Hugh Darling as Vice Mayor. There were no other nominations and Darling was elected Vice Mayor by unanimous consent. City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 19 Appointment of Council Representatives to Boards and Commissions Crane made the following appointments: Councilmember Anderson to serve as Council representative to the Community Hospital Board until October 1995; Councilmember King to serve as Council representative to the Planning and Zoning Commission until October 1995; and Councilmember Sieminski to serve as Council representative to the KPB Economic Development District Board until October 1995. _Council Meeting and Work Session schedules Sieminski asked for the distribution of work session materials in a more timely manner. Crane suggested that the Council make every effort to attend the scheduled work sessions. The council agreed to continue with its monthly work sessions. CITY MANAGER REPORTS Yanez reported that City Manager Jones was out of town on business related to the Alaska SeaLife Center. He congratulated Sieminski on his re- election and Council- members Deeter and King on their election to Council. He voiced the administration's appreciation for outgoing councilmembers Bencardino and Krasnansky. He commended Parks and Recreation Director Karin Sturdy for receiving the honor of Young Professional of the Year from the Alaska Recreation and Park Association. He stated that a public hearing would be held on October 24th on the Small Boat Harbor Management Agreement. COUNCIL DISCUSSION KING thanked the citizens of Seward for supporting his campaign and for electing him to a seat on the Council. He stated that he would like to see the administration meet with the managing firm of the new medical clinic operated by Dr. Davidhizar to discuss hospital issues. He stated that a representative of the firm had indicated that the company might be interested in management and/or ownership of the hospital and/or clinic. O'BRIEN welcomed the new councilmembers and returning Councilmember Sieminski. ANDERSON welcomed Deeter, King and Sieminski. She asked the administration to check to see if the 911 emergency system was working properly since she had a complaint about a call not being answered after 20 rings. She asked the clerk for the percentage of voter turnout at the polls. Murphy replied that almost 50 percent of the City of Seward, Alaska October 10, 1994 City Council Minutes Volume 3 Page 2 cit/s registered voters had voted. Anderson read into the record a prepared statement regarding hospital matters as follows: It was reported in the paper that I recommended Council authorize $10,000 in legal fees to study possible restructuring of the hospital. I did not recommend that $10,000 be authorized. The Council consensus was to expend no more than $2,500 and to study the matter in house. I take exception to Richard Jones' comments made at the Hospital Board Meeting on Monday, October 3rd. He was critical of the City Council and accused this body of creating an unhealthy political climate for doctors considering Seward as a location and in meddling in hospital matters. He mentioned comments made by individual councilmembers, and also commented on candidates comments at "Candidates Night" which were negative to the hospital. I have attempted to keep the Council informed of hospital happenings on a positive note, citing Mr. Jones' successes in administration of both Wesley and Seward General. 1 have reported on physician recruitment efforts. This body was supportive of the City acquiring Resurrection Bay Health Center (RBHC). We have addressed cash flow problems by providing the hospital with additional working capital. We have provided funding for remodeling to address more out- patient services such as x -ray, laboratory and emergency room. I have always been supportive of having a hospital in Seward, and it is true the hospital and staff have saved lives and are important to the community. However, it should not be viewed as a "sacred cow" that will be here forever at any cost. Health reform is a fact of life, and this community can't afford a "head in the sand" attitude about the hospital. The Hospital Board has been slow to institute change, even within the organization. After a year, we are still struggling with combining services with RBHC (Doctor's Clinic) and the hospital. It seems to me we should have 1) combined admitting department, 2) combined billing procedures, and 3) combined medical records. What departments can be combined with the hospital and clinic? The hospital organization must change or be restructured, and how do we -- as the governing body -- cope and address a changing health care system? We simply can't ignore: 1. Operating losses for the hospital and clinic have been $600,000 plus. 2. State funding for hospitals is shrinking. 3. Three opinion surveys conducted over the last year indicate a poor image of health care in Seward. Local area residents - - including city, state and even hospital employees -- are not using the services and the facility. Over 50 percent are going outside the community for health care. City of Seward, Alaska City Council Minutes October 10, 1994 Volume 31, Page 21 4. Liability and malpractice insurance. 1 see no opportunity to network with other hospitals or to seriously consider a restructure as long as we are a public 'fish bowl" entity. SIEMINSKI thanked the voters for their support. DARLING welcomed the new council and voiced appreciation for the outgoing councilmembers. CRANE welcomed the new councilmembers and thanked Mr. Darling for accepting the position of vice mayor. He thanked the other councilmembers for accepting their appointments. The Council scheduled Monday, October 17th, 12:00 noon, as an orientation session for the city council. A work session was scheduled for Tuesday, November 1st at 5:00 p.m. to discuss policies and procedures and the open meetings act. A joint work session with the community hospital board was scheduled for Friday, October 14th at 5:00 p.m. The October work session was scheduled for October 24, 1994, at 6:00 p.m. CITIZENS' DISCUSSION None COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS None ADJOURNMENT The meeting was adjourned at 9:24 p.m. L- i'ndal S. Mt�phy, CM(/ City Clerk (City Seak '> rc. L �,, V - 0�-a� Dave W. Crane Mayor f x Se " City of Seward, Alaska October 24, 1994 City Council Minutes V 31, Page 22 CALL TO ORDER The October 24, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Vice Mayor Darling led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Darrell Deeter Jerry King Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk CITIZENS' COMMENTS Agenda items not scheduled for public hearing ANNE CASTELLINA, 211 Bluefield, spoke regarding the conveyance of native selected lands located in the Kenai Fjords National Park. She gave an overview of the park as a visitor destination and cited statistics for the 1994 summer season and for the past ten years. She asked the Council to support the acquisition of the park land from the Exxon Valdez Oil Spill Settlement Fund. Items other than those appearing on the agenda FRANK IRICK, 1518 D Street, Anchorage, addressed the Council regarding a proposed small boat harbor to be located at Lowell Point. He asked the Council to support his request for funding from the Exxon Valdez Oil Spill Settlement Fund. APPROVAL OF AGENDA AND CONSENT AGENDA City of Seward, Alaska City Council Minutes October 24, 1994 Volume 31, Page 23 MOTION (Darling/Sieminski) Approve the Agenda and Consent Agen- da. King moved Resolution No. 94 -190 to the regular meeting agenda. Sieminski requested an executive session to update the new councilmembers on lease negotiations with Seward Ship's Drydock, to discuss an item of business that could adversely affect the finances of the city and to discuss pending litigation. MOTION (Sieminski/Anderson) Meet in executive session to update the new Councilmembers on lease negotia- tions with Seward Ship's Drydock, discuss an item of business that could adversely impact the finances of the city and discuss pending litigation. Motion Passed. Unanimous Crane added introduction of Ordinance No. 94-42 to the regular meeting agenda. Jones requested the deletion of Resolutions No. 94 -196 and 94 -197 VOTE ON MOTION TO APPROVE AGENDA AND CONSENT AGENDA AS AMENDED Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The October 10, 1994, minutes were approved as written; Ordinance No. 94-41, amending SCC § 15.10.415 D. regarding remands of appeals to the board of adjustment that allege new evidence, was introduced and public hearing was set for November 28, 1994; Resolution No. 94 -193, authorizing the destruction of ballots from the 1992 and 1993 elections, was approved; Resolution No. 94 -194, supporting the allocation of Exxon Valdez Oil Spill Civil Settlement Funds for the purchase of native selected lands within the boundaries of the Kenai Fjords National Park, was approved; Resolution No. 94 -195, authorizing the purchase of a new telephone system without full utilization of city bid procedures, was approved; n�, 3 City of Seward, Alaska City Council Minutes October 24, 1994 V 31, Page 24 Resolution No. 94 -196, extending the deadline for Nash Road Small Boat Harbor adjacent property owner agreements, was deleted; Resolution No. 94 -197, approving applications for FY 1996 capital projects matching grants from the state of Alaska, was deleted; The November 14, and December 26, 1994, regular Council meetings were canceled; and Report of purchase orders totalling between $5,000 and $10,000 issued from July 1, 1994, through September 30, 1994, was noted for information. BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Michael Wiley was not present. SPECIAL ORDERS AND PUBLIC HEARINGS Proclamation - Red Ribbon Week Mayor Crane presented a proclamation to the Seward Teen Council recognizing October 24 -30 as Red Ribbon Week. The Teen Council presented red ribbons to the City Council and City Administration. Ordinance No. 94-40, amending SCC Chapter 8.20, vehicles for hire City Clerk Murphy explained that the amendments would provide authority in the City Code for city required inspection of vehicles for hire. She added that insurance requirements would be deleted from the City Code and included on the application form. 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. MOTION (Darling/O'Brien) Enact Ordinance No. 9440 In response to a question from King, Klinkner said that the State provided local governments immunity from liability associated with the regulation of businesses such as vehicles for hire. VOTE ON MOTION TO ENACT ORDINANCE Motion Passed. Unanimous Resolution No. 94 -192, approving the Small Boat Harbor Management Agreement 4 City of Seward, Alaska City Council Minutes October 24, 1994 Volume 31, Page 25 Jones outlined the past year's history related to the small boat harbor management agreement. He noted that the term of the agreement was for 10 years and a portion of the moorage revenues would be used for renovations and maintenance of the harbor. Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. MURPH O'BRIEN, DOT/PF, Anchorage, stated that the agreement defined roles, set administrative overhead fees and established a fund for repair and replacement of harbor facilities. He stated that the agreement specified the State as owner and the City as operator of the harbor. He noted that amendments were made to the draft agreement in response to public comments. No one else appeared in order to be heard, and the public hearing was closed. MOTION (Anderson/Sieminski) Approve Resolution No. 94 -192 Anderson asked if a baseline environmental assessment of water quality had been made. O'Brien replied that an environmental study had not been done, but could be provided if there was a concern on the part of the City. It was noted that a baseline "harbor condition report" would be completed within one year. In answer to Anderson's concern, City Attorney Klinkner noted that he had reviewed the agreement and did not see any problems. MOTION (Anderson/Darling) Motion Passed. VOTE ON RESOLUTION AS AMENDED Motion Passed. ORDINANCES FOR INTRODUCTION Amend Section 14 of the agreement re- quiring annual financial reports to be made to the State 120 days (instead of 90) after the close of the fiscal year. Unanimous Unanimous Ordinance No. 94-42, amending Seward City Code Section 3.15.060, overtime MOTION (Darling/Deeter) Introduce Ordinance No. 94-42 and set public hearing for November 28, 1994. Jones stated that this ordinance would clarify overtime regulations that were amended by the Council by enactment of Ordinance No. 94 -33 He stated that the amendment would ensure that regular employees would receive overtime for hours City of Seward, Alaska City Council Minutes October 24, 1994 Volume 31, Pag 26 worked over 40 per week or 8 per day and temporary employees would receive overtime for hours worked over 40 per week. In response to a question from O'Brien, Klinkner stated that he had reviewed the ordinance at the request of the Administration. VOTE ON MOTION TO INTRODUCE ORDINANCE Motion Passed. Unanimous RESOLUTIONS Resolution No. 94 -190, appropriating funds for the purchase of business license software MOTION (Darling/Sieminski) Approve Resolution No. 94 -190 King stated that the revenue generated from business licenses was not sufficient to support the expenditure of funds for business license software. He preferred obtaining over -the- counter data base software to issue business licenses. In answer to a question from Deeter, Murphy stated that about 500 licenses were issued annually for revenues totalling $15,000. MOTION (O'Brien/Anderson) Amend Section 1 by changing the amount to $3,720.00. Crane supported the purchase noting that it would provide for more efficiency in the clerk's department. City Clerk Murphy noted that the vendor guaranteed satisfaction or a refund of the entire cost of the software. Anderson voiced her support of the business license concept and she noted that the city was now able to track and ensure payment of sales tax. VOTE ON MOTION TO APPROVE RESOLUTION Motion Passed. YES: Anderson, Crane, Darling, Deeter, O'Brien, Sieminski NO: King CITY MANAGER REPORTS JONES reported that the FY 1994 preliminary audit had been completed and would be distributed later in the week with the final report available 10 days later. City of Seward, Alaska City Council Minutes October 24, 1994 Volume 31, Page 27 JONES stated that the Midrex Corporation had selected Nikiski as the site for development of an industrial steel manufacturing plant. He stated that Seward was not selected mainly because of the unavailability of natural gas. JONES reported that the Oil Spill Trustee Council would make its final decision regarding Alaska SeaLife Center funding on November 2nd and that he was optimistic that SAAMS would receive full funding as requested. - JONES noted that the fire department would be conducting a training session on Saturday and would be burning a house on Exit Glacier Road. JONES stated that Seward Public Utilities had received a capital credit refund from Chugach Electric Association. He also noted that public comment was requested through November 25th on the Department of Natural Resources draft management plan for state marine parks. JONES reported on dredging of the Alaska Railroad Dock. He noted that no long term funding solution was available for removing the accumulation of sludge in the dock area. JONES noted that a Partnership Planning session to be held in his office was scheduled for 2:00 p.m. on Friday, October 28th. JONES reported that the resolution extending the deadline for negotiations with property owners for the Nash Road Small Boat Harbor had been deleted because Mr. Schafer had not requested an extension. COUNCIL DISCUSSION CRANE wished everyone a happy, safe Halloween. CITIZENS' DISCUSSION RANDY MCFARLAND, 232 Fifth Avenue, addressed the City Council regarding the parking situation in the small boat harbor and asked if a date was set for review. He suggested contacting the harbor merchants to obtain a response on the parking assessment. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS SIEMINSKI clarified that it was the community's desire to continue with the parking assessment rather than paid parking. ADJOURNMENT City of Seward, Alaska October 24, 1994 The meeting was adjourned at 8:39 p.m., and, after a short recess, the Council reconvened in executive session to review the status of lease negotiations with Seward Ship's Drydock, to discuss a matter which could adversely affect the finances of the city and to discuss pending litigation. k , � -, 0" Dave W. Crane Mayor City of Seward, Alaska November 28, 1994 CALL TO ORDER City Council Minutes Volume 31, Page 28 City Council Minutes Volume 31, Page 28 The November 28, 1994, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Hugh Darling. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Hugh Darling, presiding, and Darrell Deeter Jerry King Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Carol Giles, City Attorney Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk Gem Y t� r� �, City of Seward, Alaska City Council Minutes N o v ember 28, 1994 Volume 31, Page 29 ABSENT were: Margaret Anderson (excused) Dave W. Crane (excused) CITIZENS' COMMENTS Agenda items not scheduled for public hearing BOB VALDATTA, 528 Fifth Avenue, spoke in support of Resolution No. 94 -205 He asked the city to consider seeking approval from the Corps of Engineers to build a breakwater so that the Nash Road Harbor could be developed without impacting adjacent property. Items other than those appearing on the agenda None. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION (O'Brien/Sieminski) Approve the Agenda and Consent Agen- da. O'Brien requested that the following items be moved to the regular meeting agenda: Ord inance No. 94 -056. Resolutions No. 94-197,94-199 94 -200, 94 -201, 94 -202 and 94 -207 VOTE ON AGENDA AND CONSENT AGENDA AS AMENDED. Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The October 24, 1994, minutes were approved as written; Ordinance No. 94 -43, amending SCC §2.10.020, organization of Council, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -44. amending SCC §2.10.032, notice of meetings, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94-45, repealing SCC §2.10.085, Council as Canvass Board, and amending §4.05.115, canvass of election returns, was introduced and public hearing was set for December 12, 1994; Ordinance No. 9446, amending SCC §2.15.030 and §2.15.035, ordinances and resolutions, was introduced and public hearing was set for December 12, 1994; 0 () City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, P age 30 Ordinance No. 94-47, amending SCC 0.01.035, special elections, and §4.01.045, publication of notice of election, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -48, amending SCC Chapter 2.30, Article 100, Community Hospital Board, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94-49, amending the Seward City Code to provide for a City Clerk Department, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -50, amending SCC §2.01.010, injuries to persons and property, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -51, amending SCC §2.10.010 A., eligibility for elective office, §2.10.050 C. and D., vacancies in elective office, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -52, amending SCC §5.20.055, receipts from special assessments, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -53, repealing SCC Chapter 5.10, economic development bonds, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -54, repealing SCC §7.05.125, approval as to form by city attorney, was introduced and public hearing was set for December 12, 1994; Ordinance No. 94 -55, amending SCC §8.20.010, vehicles for hire, was introduced and public hearing was set for December 12, 1994; Resolution No. 94 -204, appropriating funds from retained earnings for construction of the Nash Road 12.5 KV Distribution Feeder, was approved; Resolution No. 94 -205, terminating the Nash Road Small Boat Harbor Development Agreement, was approved; Resolution No. 94 -206, approving the purchase of materials for construction of exterior floats for the northeast harbor launch ramp, was approved; and Resolution No. 94 -208, approving a settlement agreement between the city and J. W. T. Anderson, was approved. BOROUGH ASSEMBLY REPORT City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 31 Kenai Peninsula Borough Assembly Member Michael Wiley gave a verbal report of the last three assembly meetings. He noted that the assembly was considering sales tax exemptions for air taxi businesses, child care centers and long term leases. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 94-41, amending SCC §15.10.415.D regarding remands of appeals to the board of adjustment that allege new evidence Carol Giles explained that this would streamline the procedure on appeals by allowing administrative remand of a matter that included new evidence to the Planning and Zoning Commission rather than bringing it before Council as the Board of Adjustment. 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. MOTION (Sieminski/Deeter) Motion Passed. Enact Ordinance No. 9441 Unanimous Ordinance No. 9442, amending SCC §3.15.060, overtime Jones explained that the ordinance would amend previous action taken by-the City Council regarding payment of overtime over eight hours per day or 40 hours per week. He requested postponement in order to allow city employees to review the proposed ordinance. 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. MOTION (O'Brien/Sieminski) MOTION (O'Brien/King) Enact Ordinance No. 9442 Postpone until December 12, 1994. O'Brien asked for clarification and Jones replied that the definition of a regular work week was changed by the Council. He stated that employees who used annual leave during a regular work week would not receive overtime for hours worked over eight per day or hours worked, within 40, outside of the regular work week. He added that the language as written was not presented to employees, and the administration wished to receive input from employees. City of Seward, Alaska November 28, 1994 City Council Minutes Volume 31, Page 32 In answer to a question from Sieminski, Giles explained that, if an employee worked a forty hour week and was compensated for a holiday that was not worked, the entire time would be paid at straight time. O'Brien asked if an employee who worked a flex time schedule resulting in hours worked over eight per day was paid at straight time. Jones replied that the employee was paid straight time for the 40 hours worked under the flex time agreement. VOTE ON MOTION TO POSTPONE Motion Passed. Resolution No. 94 -198, approving a long term lease to MACteI Cellul4r Systems for a ±2,800 SF parcel of land and non - exclusive access easement within USS 4828 at 707 Nash Road Jones explained that this lease was for property at the Seward Marine Industrial Center for a telecommunications site, and the lessee would be required to fence the 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. MOTION (Deeter /Sieminski) Approve Resolution No. 94 -198 O'Brien asked if the lessee could be re- located if a higher and better use was proposed for the property. Jones replied that this clause was included in the proposed lease with McCaw Cellular, dba Cellular One, but was not included in the MACteI lease. O'Brien suggested the addition of this language in all future leases. Jones replied that he would discuss the matter with the lessees and report back to the Council. VOTE ON MOTION Motion Passed. Unanimous Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Tohn Torgerson, Senator - elect John Torgerson, Kasilof, Senator Elect, Seat D, stated that he would be traveling throughout the district to receive input on priorities for the upcoming legislative session. He stated that among his goals were reopening the City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 33 Seward Sawmill and creating a commission to oversee the Department of Corrections to provide some stability within the State's prison system. Gary Long - Snow River International Hostel Mr. Long was not present. Valarie Lemas - Request for city permit to allow Retriever Trials within the City limits in May 1995 Valarie Lemas, Mile 6.5 Seward Highway, asked the City-Council for a special use permit to conduct a two -day field trial on city property in the spring. She stated that the retriever club would like to conduct training of its retrievers for hunting purposes. She also requested a permit to discharge firearms within the city limits. O'Brien recommended that the group request a firearms discharge permit from the police department and have the department report to the Council. Jones explained that he would be glad to review a written proposal for use of city property and the discharge of firearms. ORDINANCES FOR INTRODUCTION Ordinance No. 94 -56, amending SCC Chapter 15.10, Zoning Code, to clarify and correct discrepancies MOTION (O'Brien/Sieminski) Introduce Ordinance No. 94 -56 and set for public hearing on December 12, 1994. O'Brien objected to allowing the installation of antennas, commercial satellite dishes and towers as an outright use in the Industrial Districts. Community Develop- ment Director Martin replied that towers exceeding a certain height would need approval by the Federal Aviation Administration. O'Brien stated that a conditional use permit should be required to allow for review of each proposal. MOTION (O'Brien/Sieminski) Motion Passed. RESOLUTIONS Remand to the Planning and Zoning Commission for further consideration. Unanimous Resolution No. 94 -197, approving applications for FY 1996 capital project matching grants from the state of Alaska MOTION (O'Brien/Sieminski) Approve Resolution No. 94 -197 C) li City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 34 O'Brien asked if consideration was given to the construction of public restrooms in the downtown area. Jones stated that further review of the impacts of the SeaLife Center and the restrooms it would provide was needed prior to identifying this item as a priority. Deeter asked about computer networking for public information purposes at a cost of $7,000 to the city. He noted that this figure seemed high and asked about personnel costs associated with this item. Jones replied that the city would be able to provide on -line budget information for internal access by employees, and the public would be able to access information through a local bulletin board. In answer to a question from King, Jones replied that a number of customers had requested the ability to access government information through a computer network. MOTION (King/Darling) Amend by changing the priorities of numbers 3 and 4. Motion Passed. Unanimous VOTE ON RESOLUTION AS AMENDED Motion Passed. Resolution No. 94 -199, authorizing the release of State Cruise Ship Dock grant funds for the purpose of dredging the Alaska Railroad Dock approach channel and east face MOTION (Sieminski/Deeter) Unanimous Approve Resolution No. 94 -199 In answer to several questions from O'Brien, Jones replied that the proposed agreement was an informal, no- interest loan agreement that would be binding whether or not any vessels used the railroad dock. Jones stated that the ARR strongly objected to repayment of the loan and had hoped that the city would grant the funds for the dredging project. Jones further stated that it was his intention to approve the loan agreement administratively. O'Brien objected to entering into an informal agreement and requested that a binding contract be brought to the Council for approval. MOTION (O'Brien/King) Amend Section 1 by adding "and further provided that the loan agreement is rati- fied by the City Council prior to the re- City of Seward, Alaska November 28, 1994 City Council Minutes Volume 31, Page 35 lease of the funds to the Alaska Rail- road. Motion Passed. VOTE ON RESOLUTION AS AMENDED Unanimous Motion Failed. YES: Darling, O'Brien, Sieminski NO: Deeter, King RECESS: The meeting recessed at 9:03 p.m. and reconvened at 9:13 p.m. Resolution No. 94 -200, authorizing application for funding assistance from the State Historic Preservation Office to complete the Seward Historic Preservation Plan MOTION (Sieminski/O'Brien) Approve Resolution No. 94 -200 O'Brien stated that a full time position had been added to the Community Development Department and he objected to hiring an independent contractor to complete the historic preservation plan. Jones stated that this grant was specialized and agency requirements specified that qualified professionals must complete the plan. Martin added that the federal government required background in history and archaeological fields in order to write the plan. He noted that this grant had been received and returned due to lack of staff at the time. He commented that, with the addition of a Historic Preservation Commission and added staff, the plan could be completed upon receipt of funds. VOTE ON MOTION Motion Failed. YES: Darling, Deeter, Sieminski NO: King, O'Brien Resolution No. 94 -201, authorizing the expenditure of legal funds related to the J. W. T. Anderson litigation MOTION (Sieminski/O'Brien) Approve Resolution No. 94 -201 City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 36 O'Brien stated that a settlement had been approved and he questioned the need for additional legal funds. Jones replied that the funds were anticipated as an expense to bring the case to trial and the $30,000 would cover legal expenses incurred in the case. VOTE ON MOTION Motion Passed. Resolution No. 94 -202, authorizing signatures for all city bank accounts and rescinding all previous resolutions in conflict herewith MOTION (Sieminski/Deeter) Unanimous Approve Resolution No. 94 -202 O'Brien questioned the procedure of giving one person the authority to invest city monies. Finance Director Gifford replied that checks and balances existed because two signatures were required for investments, transfers, etc. O'Brien requested two signatures for investments. Gifford replied that he would investigate this procedure with other financial institutions and report back to the Council. VOTE ON MOTION Motion Passed. Resolution No. 94 -207, determining that the annexation of approximately 5,455 acres along the Seward Meridian Valley is in the public interest and directing the City Administration to file a petition with the Local Boundary Commission MOTION (Sieminski/Deeter) Unanimous Approve Resolution No. 94 -207 O'Brien stated that the annexation of over 5,000 acres of land deserved some debate. Jones replied that the resolution reaffirmed Council's earlier intent to annex property along the Seward Meridian Valley. Martin provided an overview of the annexation process and the associated history. He stated that a change had been made since annexation was last approved. Discussion included provision of fire and police protection services to a future population, impacts to the city and responsibility of the city. In answer to a question from O'Brien, Martin stated that annexation would be possible through legislative review, and, during the process, numerous public hearings would be held to allow public comment. City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 37 King stated that the city was taking on considerable responsibility without receiving much in rewards since 95% of the land was public domain. In answer to a question from Darling, Martin stated that the annexed area could be given back if it became a financial burden to the city. Jones requested postponement until December 12th to further review and answer questions posed by the council. MOTION (Deeter / Sieminski) Postpone until December 12, 1994. Motion Failed. YES: Deeter, Sieminski NO: Darling, King, O'Brien VOTE ON RESOLUTION Motion Failed. YES: Deeter, Sieminski NO: Darling, King, O'Brien NEW BUSINESS Claim for damages filed by Allstate Insurance on behalf of C Locke McCann MOTION (Sieminski/O'Brien) Forward claim for damages filed by Allstate Insurance on behalf of C. Locke McCann to the City's insurance adjustor Motion Passed. Unanimous Submittal of preliminary plat of Seward Waterfront Tracts to the Kenai Peninsula Borough for approval MOTION (Sieminski/O'Brien) Submit the preliminary plat of the Sew- ard Waterfront Tracts to the Kenai Pen- insula Borough for approval. Motion Passed. Unanimous Proposed lease negotiations with McCaw Cellular Communications dba Cellular One, for a portion of proposed Lot 3 Block 8 SMIC 4th of July Creek Subdivision MOTION (Sieminski/O'Brien) Direct the city administration to proceed with negotiations with McCaw Cellular City of Seward, Alaska City Council Minutes November 28, 1994 Volu 3 1, Page 38 Motion Passed. CITY MANAGER REPORTS Communications Inc., dba Cellular One, for long term lease of a portion of pro- posed Lot 3, Block 8, SMIC Fourth of July Creek Subdivision, for a cellular telephone transmission site. Unanimous Jones reported on the 1994 Campground Report. He also noted that sales tax revenues for the third quarter were up as compared to the same quarter last year. He asked if the Council wished to schedule a work session to review the completed audit. Finally, he reported that the city had received a check in the amount of $146,237 from Chugach Electric Association for capital credits. COUNCIL DISCUSSION DEETER stated that the Alaska SeaLife Center project was a newsworthy item and he commended the SAAMS board and project administrator Schaefermeyer for their efforts in making the development a reality. KING reported on the November 2nd P & Z meeting and stated that the commission would be considering amendments to the zoning code related to lodging regulations and vendors and transient merchants. O'BRIEN commented on the campground report and the creation of the self registration system. Sturdy stated that close monitoring had resulted in a successful self registration program and the lower numbers in the report indicated a drop in attendance. The Council scheduled a work session for 12:00 noon on Monday, December 5th, to discuss legislative priorities. The Council noted that the audit would be reviewed at the Council's regular work session on Monday, December 12th, at 6:00 p.m. O'BRIEN stated that he favored a rebate of the CEA capital credits to the city's utility customers. He asked for inclusion of this item on the next agenda. SIEMINSKI reported on his trip to Juneau and asked the Council if they were interested in holding a work session with the other cities in the borough to discuss topics of mutual interest. He noted that Seward would host the first work session. The Councilmembers agreed that this was a good idea. ,,_)O City of Seward, Alaska City Council Minutes November 28, 1994 Volume 31, Page 39 DARLING commended the Parks and Recreation Department for a successful summer. He asked if the increased camper fees had an effect on the drop in attendance. He stated that continued improvements of the city's parks were needed. CITIZENS' DISCUSSION BOB VALDATTA, 528 Fifth Avenue, commented on the campground report. He stated that the U. S. Forest Service and the State Fish and Game Department should be contacted for input on the proposed annexation. He asked about the status of the Nash Road Small Boat Harbor development and what steps would be taken next since the agreement with Schafer had been terminated. LOUIE MARCH, Mile 5.5, spoke in support of distributing the CEA capital credits to the utility customers. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS JONES replied to Valdatta that the agreement with Al Schafer was concluded. He noted that the next step in developing the harbor was not known at this time. Jones commented that a harbor would be built, but he did not know how or when. He encouraged the submittal of proposals and concepts. MOTION (Deeter/Darling) Reconsider and enter on the minutes Resolution No. 94 -199 Murphy noted that the resolution would come back before the Council on December 12th for reconsideration. ADJOURNMENT The meeting was adjourned at 10:51 p.m. 1 rN City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 40 CALL TO ORDER The December 12, 1994, regular meeting of the Seward City Council was called to order at 7:38 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Darrell Deeter Patrick D. O'Brien comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Minkner, City Attorney Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk CITIZENS' COMMENTS Hugh Darling Jerry King Bruce Sieminski Agenda items not scheduled for public hearing CHARLES MCELDOWNEY, Resurrection Road, spoke on behalf of M.A.S.H. (Dog Mushers Association) in opposition to the annexation of any land currently used for recreational purposes including dog mushing and skiing ( Resolution No. 94 -207 STU CLARK, 1129 Park Place, spoke in opposition to funding the dredging of the Alaska Railroad Dock ( Resolution No. 94 -199 unless the City obtained control. He spoke in support of grant funding for historic preservation purposes ( Resolution No. 94 -200 and against the annexation of the Seward Meridian Valley ( Resolution No. 94 -207 DIEDRE ST. LOUIS, Woodland Hills, spoke in opposition to the proposed annexation ( Resolution No. 94 -207 She asked the Council to consider the opinions of those residents residing outside the city limits when reaching a decision on this proposal. MARSHALL RONNE SR., Mile 7, spoke in opposition to the proposed annexation ( Resolution No. 94 -207 City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 41 MARSHALL RONNE JR., Mile 7, spoke in opposition to Resolution No. 94 -20 7. He stated that there was no advantage to annexing the area around Bear Lake except to increase the city's tax base. He stated that this was a popular area for snow machining, and he asked if it would become illegal to snow machine, hunt and target shoot if the land became a part of the city. LOUIE MARCH, JR., Mile 5.5, Seward Highway, asked the Council to release all of the public records destined for destruction ( Resolution No. 94 -214 to him or the Community Library. He stated that he wanted six months to review the records prior to destruction. MARK LUTTRELL, Camelot, spoke in opposition to Resolution No. 94 -207 He stated that there should be a plan completed prior to annexation and he distributed an advisory petition signed by citizens opposing the annexation. He spoke in support of historic preservation funding ( Resolution No. 94 -200 RON LONG, Camelot, spoke in support of Resolution No. 94 -199 He noted that the Railroad and City would continue to do business and should cooperate on mutually beneficial projects. He stated that the dredging was necessary to continue support of the cruise ship industry. SHANNON SKIBENESS, 2612 Birch Street, spoke in favor of reconsideration and approval of the historic preservation grant funding ( Resolution No. 94 -200 and gave a brief overview of historic preservation projects in the city. LOUIE MARCH, JR., Mile 5.5, spoke in support of distributing CEA capital credits to utility customers. JEANNETTE KIMES, Lot 2, 3, Woodland Hills, spoke in opposition to Resolution No. 94 -207 (annexation). MIKE TETREAU, 211 Bluefield Drive, spoke in opposition to Resolution No. 94- 207 (annexation) and in support of Resolution No. 94 -200 (historic preservation funding). KYLER DOW, Woodland Hills Estates, spoke in opposition to the proposed annexation ( Resolution No. 94 -207) JEANNIE SHIRK, Woodland Hills Subdivision, spoke in opposition to Resolution No. 94 -207 Items other than those appearing on the agenda None. APPROVAL OF AGENDA AND CONSENT AGENDA Anderson made the following amendments to the agenda: A 17T City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 42 New Business Item C, Parking in the Small Boat Harbor, was added; and Resolution No. 94 -212 was moved to the regular meeting agenda. MOTION (Anderson/Sieminski) Approve the Agenda and Consent Agen- da as amended. Motion Passed. Unanimous The Clerk read the following approved consent agenda items: The November 28, 1994, minutes were approved as written; Resolution No. 94 -203, approving a contract with Alaska Newspapers, Inc., for display advertising in the Seward Phoenix Log, was approved; Resolution No. 94 -210, authorizing the Seward Polar Bear Jumpoff Festival, Inc., to utilize City Property during the Seward Polar Bear Jumpoff Festival, was approved; Resolution No. 94 -211, extending the Marathon Fuel contract to provide petroleum products through December 31, 1995, was approved; Resolution No. 94 -213, rescinding a bid award to Four Seasons Boat Services and awarding a bid for the purchase of floatation Billets to Seward Building Supply, was approved; and Resolution No. 94 -214, authorizing the destruction of certain public records in accordance with the records retention schedule, was approved; BOROUGH ASSEMBLY REPORT Kenai Peninsula Borough Assembly Member Michael Wiley was not present and no report was given. SPECIAL ORDERS AND PUBLIC HEARINGS Ordinance No. 9442, amending SCC §3.15.060, Overtime Jones stated that this ordinance was an attempt to resolve certain problems with the city's overtime provisions created when Council approved amendments to an earlier ordinance. He stated that the administration was also proposing an additional amendment to the ordinance to require the payment of overtime to employees who were requested to work hours which were not in their hours of regular employment unless agreed upon in advance by the supervisor and employee. City of Seward, Alaska City Council Minutes D ecember 12, 1994 Volume 31, Page 43 Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. CHARLES FORREST, 2604 Dimond Boulevard, asked the Council to reinstate the provision requiring overtime pay for over eight hours per day. DAN LEWIS, 214 Sixth Avenue, spoke in support of paying overtime to employees who worked over eight hours per day or 40 hours per week. MIKE MOORE, 702 Third Avenue, spoke in favor of the proposed overtime ordinance. He stated that employees should be paid for holidays and leave days in addition to overtime. FLOYD AINSWORTH, Iron Drive, spoke in support of the original Code language that provided for payment of overtime for hours worked over eight per day or over 40 per week. No one else appeared in order to be heard, and the public hearing was closed. Murphy noted that the ordinance had been postponed from the November 28, 1994, meeting and that there was a motion on the floor for enactment. MOTION (Darling/Deeter) Amend Ordinance No. 94-42, Section 3.15.060, Overtime, by creating a new Section A.3 to read "Unless otherwise agreed upon by the supervisor and the employee, full time employees who are not exempt from the overtime require- ments of the federal Fair Labbr Stan- dards Act who are requested to work hours which are not in their hours of regular employment shall be paid at time and one -half for such hours worked. ", and by renumbering the exist- ing Section 3.15.060 A.3. to 3.15.060 A.4. Jones explained the proposed amendments. Anderson clarified that the amended ordinance would be effective retroactive to October 20, 1994. In answer to a question from Deeter, Jones replied that the payment of overtime would be the same as it was before the enactment of Ordinance No. 94 -33 a City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, P age 44 In answer to a question from Sieminski, Jones stated that the amended language would pay overtime to employees for hours worked in excess of hours of regular employment including annual leave hours. Jones explained the effects of the amended language to the City Council. O'Brien stated that he could support paying overtime only for hours worked over eight or over 40. VOTE ON AMENDMENT Motion Passed. YES NO: VOTE ON ORDINANCE AS AMENDED Motion Passed. Anderson, Darling, Deeter, King, Sieminski Crane, O'Brien Unanimous Ordinance No. 94-43, amending SCC §2.10.020, organization of Council Murphy explained that the next several ordinances would bring the Code into conformance with the Charter amendments approved by the voters at the October 1994 election. 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. MOTION (Anderson/Sieminski) Motion Passed. Enact Ordinance No. 9443 Unanimous Ordinance No. 94 -44, amending SCC §2.10.032, notice of meetings 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. MOTION (Darling/Sieminski) Motion Passed. Enact Ordinance No. 94-44 Unanimous City of Seward, Alaska December 12, 1994 City Council Minutes Volume 31, Page 45 Ordinance No. 9445, repealing SCC §2.10.085, Council as Canvass Board, and amending §4.05.115, canvass of election returns 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. MOTION (Sieminski/Anderson) Motion Passed. Enact Ordinance No. 9445 Unanimous Ordinance No. 9446, amending SCC §2.15.030 and §2.15.035, ordinances and resolutions 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. MOTION (Deeter /Sieminski) Motion Passed. Enact Ordinance No. 94-46 Unanimous Ordinance No. 9447, amending SCC §4.01.035, special elections, and §4.01.045, publication of notice of election 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. MOTION (Sieminski/Darling) Motion Passed. Enact Ordinance No. 94-47 Unanimous Ordinance No. 9448, amending SCC Chapter 2.30, Article 100, Community Hospital Board Notice of public hearing as posted and published as required by law was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. MOTION (Sieminski/Deeter) Enact Ordinance No. 94-48 FWD City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 46 Motion Passed. Unanimous Ordinance No. 94 -49, amending the Seward City Code to provide for a City Clerk Department 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. MOTION (Anderson/Darling) Enact Ordinance No. 94-49 Deeter asked about the effect of repealing Section 2 which provided for the appointment of deputies by the clerk and ratification by the City Council. Murphy explained that the intent was not to repeal this section. She asked the City Council to postpone the ordinance until she could review it and propose a substitute. MOTION (O'Brien/Deeter) Motion Passed. Postpone until January 10, 1994. Unanimous Ordinance No. 94 -50, amending SCC §2.01.010, injuries to persons and 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. MOTION (Sieminski/Deeter) Motion Passed. Enact Ordinance No. 94 -50 Unanimous Ordinance No. 94 -51, amending SCC §2.10.010 A., eligibility for elective office, §2.10.050 C. and D., vacancies in elective office 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. MOTION (Sieminski/Darling) Motion Passed. Enact Ordinance No. 94 -51 Unanimous "A k City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 47 Ordinance No. 94 -52 amending SCC §5.20.055, receipts from special assessments 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. MOTION (Sieminski/Darling) Motion Passed. Enact Ordinance No. 94 -52 Unanimous Ordinance No. 94 -53. repealing SCC Chapter 5.10, economic development bonds 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. MOTION (Sieminski/Darling) Motion Passed. Enact Ordinance No. 94 -53 Unanimous Ordinance No. 94 -54, repealing SCC §7.05.125, approval as to form by city attorney 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. MOTION (Sieminski/Darling) Motion Passed. Enact Ordinance No. 94 -54 Unanimous Ordinance No. 94 -55, amending SCC §8.20.010, vehicles for hire 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. MOTION (Anderson/Sieminski) Enact Ordinance No. 94 -55 Motion Passed. Unanimous , City of Seward, Alaska December 12, 1994 City Council Minutes Volume 31, Page 48 Resolution No. 94 -209, approving a long term lease of a portion of Lot 3, Block 8, SMIC Fourth of July Creek Subdivision, to McCaw Cellular Communications, Inc., dba Cellular One 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. MOTION (Deeter/Darling) Approve Resolution No. 94 -209 Anderson asked how the $200 annual lease rate was determined. Martin replied that the rate was for a short term and the lease amount would be adjusted once the property was appraised. Sieminski asked how much the city could expect to receive per square foot for a long term lease at SMIC. Jones explained that the cost per parcel had varied in-the past He added that, since the property was not a high use area, the rate was sufficient until such time as the property was appraised. Sieminski replied that the cost to negotiate a lease was more than the revenue received from the lessee. Crane stated that he would support the lease at this time but stressed the importance of addressing a lease - appraisal policy in the future. Anderson agreed that it was time to develop a basic lease rate and she voiced frustration with the lack of a set rate for city property. Sieminski asked about the section regarding possible relocation by the lessee if a better and higher use were found for the property. Klinkner explained that the lease provided for the cost of a one -time move by the lessee at city expense. MOTION (Anderson/Sieminski) Amend Section 3.1 of the lease by chan- ging the rate from $0.20 per square foot to $0.50 per square foot. Anderson stated that the lease with Inlet Fisheries, operating in the same area, was .40 per square foot and this lease rate should be comparable. Crane and O'Brien voiced opposition to the amendment. Jones noted that lease appraisals would be completed before June 30, 1995, and the lease rates would be addressed at that time. VOTE ON AMENDMENT Motion Failed. YES: Anderson City of Seward, Alaska City Council Minutes D ecember 12, 1994 Volume 31, PaQe 49 NO: Crane, Darling, Deeter, King, O'Brien, Sieminski VOTE ON RESOLUTION Motion Passed. Unanimous PRESENTATIONS WITH PRIOR NOTICE ONLY Port and Commerce Advisory Board applicants TIMOTHY M. SCZAWINSKI expressed his desire to serve on the PACAB as a result of his involvement in the Partnership Planning process. He outlined his professional history and asked for a chance to serve as a boardmember. He stated that he wanted to ensure that the Harbor and Resurrection Bay remain environmentally safe. Note: Louis Bencardino and Tom Smith were out of town. Audit Presentation - KPMG Peat Marwick KPMG Peat Marwick representatives Vern Johnson and Mike Flaa reviewed the cit/s 1994 audit. Randy McFarland - Harbor Offsite Parking Proposal McFarland distributed a handout to the City Council and Administration regarding his proposal to provide an offsite parking service for Boat Harbor businesses. He stated that he planned to offer free parking to those harbor merchants and charter boat operators who were opposed to paying the city parking assessment. Following discussion by the Council, Anderson requested a report on parking assessment compliance. RESOLUTIONS Resolution No. 94 -212, adopting the Capital Improvement Projects priority list for the 1995 Legislative Session MOTION (Sieminski/Anderson) Approve Resolution No. 94 -212 Anderson was opposed to including the Nash Road Boat Harbor utilities plan and design in the priority list. She also suggested that the youth center be renamed the community /youth center. MOTION (Anderson/Sieminski) Add the term "community" to the refer- ence to "youth center" in the attachment to the resolution. Motion Failed. YES: Anderson City of Seward, Alaska December 12, 1994 City Council Minutes Volume 31, Page 50 NO: Crane, Darling, Deeter, King, O'Brien, Sieminski VOTE ON RESOLUTION Motion Passed. Unanimous UNFINISHED BUSINESS Items for Reconsideration Resolution No. 94 -199, authorizing the release of state cruise ship dock grant funds for the purpose of dredging the Alaska Railroad Dock approach channel and east face Murphy noted that a motion to "reconsider and enter on the minutes" had been made and seconded on November 28, 1994, and this motion was now on the floor. VOTE ON MOTION TO RECONSIDER Motion Passed. YES: Anderson, Crane, Darling, Deeter, King, Sieminski NO: O'Brien Anderson stated that the dredging was needed and the city needed to continue to promote the partnership with other agencies and businesses to the mutual benefit of all. O'Brien stated that he could not support the resolution since the railroad would not commit to repayment of the funds to the city. Jones stated that the railroad assured, but did not commit to, repayment. He urged the Council to continue with the partnership process and work with the railroad to solve its dredging problem. He stated that the railroad had agreed to transfer to the city all fees generated by the docking of the vessel "Universe" and the MN Tustumena until the sum was repaid. MOTION (Anderson/Deeter) Amend the 5th Whereas clause by add- ing "and the state ferry Tustumena," af- ter the word "Universe" and amend Section 1 to read: "...provided that the grant funds are fully repaid in accor- dance with the terms set forth in the City of Seward, Alaska City Council Minutes D ecembe r 1 2, 19 94 Volume 31, Page 51 attached December 6, 1994, letter from Alaska Railroad Corporation Chief Exec- utive Officer Robert Hatfield." O'Brien suggested a formal agreement signed by both parties. Klinkner stated that the resolution, including the letter as an attachment, were sufficient as an enforceable, non - recourse obligation to repay the loan. VOTE ON AMENDMENT Motion Passed. Unanimous VOTE ON RESOLUTION AS AMENDED Motion Passed. YES: Anderson, Crane, Darling, Deeter, King, Sieminski NO: O'Brien Resolution No. 94 -200 authorizing application for funding assistance from the State Historic Preservation Office to complete the Seward Historic Preservation Plan Murphy noted that notice of reconsideration had been given the day following the original vote on the resolution. MOTION (King/Sieminski) Reconsider Resolution No. 94 -200 Motion Passed. VOTE ON RESOLUTION YES: Anderson, Crane, Darling, Deeter, King, Sieminski NO: O'Brien Motion Passed. YES: Anderson, Crane, Darling, Deeter, King, Sieminski NO: O'Brien Resolution No. 94 -207, determining that the annexation of approximately 5,455 acres along the Seward Meridian Valley is in the public interest and City of Seward, Alaska December 12, 1994 City Council Minutes Volume 31, Page 52 directing the City Administration to file a petition with the Local Boundary Commission Murphy noted that notice of reconsideration had been given immediately following adjournment of the meeting at which the original motion had been considered. MOTION (Darling/Sieminski) Reconsider Resolution No. 94 -207 Motion Failed. NO: Deeter, King, O'Brien Note: The motion to reconsider requires a 2✓3 vote for approval. NEW BUSINESS Appointment of Port and Commerce Advisory Boardmembe Murphy distributed ballots to the City Council and asked the Council to vote for one applicant and to sign their individual ballots. Following the vote, Murphy noted the following results: Louis Bencardino - 4 votes (Crane, Darling, O'Brien, Sieminski) Timothy M. Sczawinski - 1 vote (Anderson) Tom Smith - 2 votes ( Deeter, King) MOTION (Sieminski/O'Brien) Motion Passed. YES: Anderson, Crane, Darling, Sie- minski Confirm the appointment of Louis Bencardino to the Port and Commerce Advisory Board, for a term to expire July 1997. Without objection Distribution of CEA rebate Jones distributed a memorandum regarding several possibilities for utilizing the rebate received from Chugach Electric Association and stated that it would take time to figure the rebate for different classes of utility customers. He suggested a work session in the future to discuss distribution of the funds. Darling stated that the money should be used to benefit the utility users. Crane agreed that a work session should be scheduled. Anderson concurred and noted her support for the purchase of equipment for the electric department. City of Seward, Alaska City Council Minutes December 12, 1994 Volume 31, Page 53 Discussion of parking plan Anderson stated that she was opposed to assessments and noted that paid parking should be addressed by the City Council once again. CITY MANAGER REPORTS Jones reported on flood problems and flood control issues raised in a recent letter from Al Schafer. He stated that the City had received a grant application for funding for an additional police officer under the crime bill. He corrected an earlier statement by noting that the youth center would need to relocate by June 1, 1995, rather than January 1, 1996. COUNCIL DISCUSSION ANDERSON reported that Hospital Boardmembers had met with the Homer Hospital Board and South Peninsula Service Area Board. She stated that Hospital CEO Richard Jones had given a 90 -day notice of resignation. She also reported on her recent trip to Juneau to attend the Alaska Municipal League conference. KING reported on the December Planning and Zoning Commission meeting and stated that the SAAMS design team had given a presentation and would be making monthly reports on the ASLC project at future P & Z meetings. He stated that the comriission was working on new regulations for lodging, bed and breakfast businesses, vendors and transient merchants. O'BRIEN and SIEMINSKI wished everyone a Merry Christmas and a happy holiday season. CRANE noted that a work session was scheduled for January 19th with other municipalities within the borough to discuss items of mutual interest. CITIZENS' DISCUSSION LOUIE MARCH, JR., Mile 5.5, Seward Highway, stated that he was disappointed that the Council had authorized the destruction of city public records. He asked for two months to review the records prior to destruction. BOB VALDATTA, 528 Fifth Avenue, stated that the Council should have approved the annexation of city property. He noted that the land could be tied up by other public agencies in the future. COUNCIL & ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS DARLING agreed that the vote on annexation was unfortunate since it was in the city's best interest. Anderson agreed. �A City of Seward, Alaska December 12, 1994 City Council Minutes Vo lume 31, Page 54 ADJOURNMENT The meeting was adjourned at 11:00 p.m. ". Vv. Q.-', 2 Dave W. Crane Mayor �J a S. urp'. :Cif Cler (LI `Seal) "pty 4- Seward, Alaska January 9, 1995 CALL TO ORDER City Council Minutes Volume 31, Page 54 The January 9, 1995, regular meeting of the Seward City Council was called to order at 7:35 p.m. by Mayor Dave W. Crane. OPENING CEREMONY Police Chief Walker led the pledge of allegiance to the flag. ROLL CALL There were present: Dave W. Crane, presiding, and Margaret Anderson Hugh Darling Darrell Deeter Jerry King Patrick D. O'Brien Bruce Sieminski comprising a quorum of the Council; and Tyler Jones, City Manager Michael Yanez, Deputy City Manager Thomas F. Klinkner, City Attorney Linda S. Murphy, City Clerk Patricia Jones, Deputy City Clerk