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HomeMy WebLinkAbout1981 City Council Minutes . ~ -~ \-' , ~ : ~ \ PAGE 318 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (Cont' d) D. Swartz commended the Street Department for getting out and correcting the icy conditions of the roads. E. Cripps stated that he had attended the December 22, 1981 Mayor's meeting in Soldotna and had been favorably impressed by Anchorage Mayor Tony Knowles. He noted that a report on the meeting had been drafted and would be distributed to Council by the Clerk's office. XIV. CITIZENS' DISCUSSION: SISTER CITY: A. Brent Whitmore appeared from the audience and read a letter from Mayor Tomoto of Obihiro, Japa~ which he had received along with several drawings and watercolors done by school children in Obihiro. He stated that he would be visiting the Seward schools with the paintings with the idea of displaying the Japanese art and encouraging local youth to submit some Alaskan art to send to Obihiro. xv. ADJOURNMENT: The meeting was adjourned at 9:35 p.m. and, after a short recess, the Council went into executive session to discuss a financial matter. l /(J(:" . Z CO L/t'/..../Ct t'Ll ;1,/)., Donald W. Cripps Mayor ---------------------------------------------------------------- PAGE 318 REGULAR MEETING - JANUARY 11, 1982 VOLUME 19 I. CALL TO.ORDER: The January 11, 1982, regular meeting of the Seward City Council was called to order at 7:31 p.m. by Mayor Cripps. II. OPENING CEREMONY: Councilmember Meehan led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Cripps; Councilmembers Campbell, Meehan, O'Brien, Soriano and Swartz (Absent, with Council consent, was Councilmember Burgess) Present also: City Manager Johnson, City Attorney Hughes, Assistant City Manager Schaefermeyer, City Clerk Shanley and Deputy City Clerk Murphy IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Meehan and unanimously carried by all those present to approve the regular meeting minutes of December 28, 1981, as written. 1(8 PAGE 168 SPECIAL MEETING - JANUARY 5, 1981 VOLUME 19 IV. APPROVAL OF CONSENT CALENDAR: (cont'd) ELECTRIC DEPT: 4. Contract payment to General Electric totaling $135,979.50 for a 69 KV electrical transformer, was approved and filed. ELECTRIC DEPT: 5. December 18, 1980, invoice from K & W Trucking in the amount of $9,595.36 for shipping 3 electrical transformers, was approved for payment and filed. ELECTRIC DEPT: 6. December 23, 1980, invoice from Weaver Brothers in the amount of $1,255.47 for transportation of a damaged standby transformer from Seward to Kenai, was approved for payment and filed. V. SPECIAL ITEM: HOSPITAL: A. Public hearing was opened on the proposed future funding for the maintenance and operation of Seward General Hospital, and the following items were noted: "Notice of Special Meeting and Public Hearing" as posted and published two times in the local newspaper November 17, 1980, letters from Seward General Hospital Board of Trustees President David K. Hudspeth, regarding the Hospital's financial condition and need for additional funding sources Hospital Administrator C. Keith Campbell distributed the results of a survey which had been sent to local residents, asking their opinions on the level of service to be maintained and the method of funding such service. He confirmed that the tabulated results represented only a 10 percent return but he expected more surveys to be completed and returned within the next week or two. He noted that the survey indicated most residents supported the continued operation of the hospital with funding to be provided by a sales tax. George Mueller, Hospital Board President, appeared from the audience and spoke on the various funding sources being investigated by the Board, including additional State revenue sharing funds. In answer to a question, Campbell stated that the Hospital would have an estimated $200,000 deficit by the end of the current fiscal year. Margaret Hafemeister appeared from the audience and stated a hospital was essential if the City expected to attract new families to the community and to keep a doctor in town. Don McCloud appeared from the audience and stated he supported a one percent sales tax to maintain the hospital's operations. City Manager reported that estimates indicated $45,000 would be realized from a one mil property tax and $200,000 from a one percent sales tax. Jim Pruitt and Jean Cripps appeared from the audience and posed various questions to Campbell regarding the hospital operations. No one else appeared from the audience in order to be heard and the public hearing was closed. Following discussion, Hugli requested Campbell consult with the Hospital Board to determine the amount of funds needed to maintain the facility through the current fiscal year and when those funds would be required. Campbell confirmed he would have figures for Council's next meeting. VI. ADJOIJRNMENT: 1.1;1{'>" ,.'~T~{t~'tt\~etin;g~~j ourned :~-.:" , ,~) -, , .. iV\-~ L 1\:~~lll ne~. Shanley, CMC Cl'~k ~ ~';, (City Sea>>~' -, ' <~,~1' . ~, at 8:15 p.m. Raymond Mayor 1 u.1 PAGE 169 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 1. CALL TO ORDER: The January 12, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the I flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie and Soriano (Absent, with Council consent, were Swartz and Vincent) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley PROCLAMATION: December 16, 1980, letter from the Municipality of Anchorage Mayor George M. Sullivan, requesting Mayor Hugli to join with him in observing February 1981 as "Heart Month" was noted. At the request of the Mayor, City Clerk read in full "Proclamation - Heart Month" and it was so proclaimed that February 1981 would be designated as Heart Month. IV. APPROVAL OF MINUTES: I It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting minutes of December 8, 1980, and the special meeting minutes of January 5, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the consent calendar: 6. December 31, 1980, invoices from Arctic Environmental Engineers for work on the sewage treatment project: Invoice No. Billing Amount 07780 September 1980 bill/Step 3 $ 45,678.45 07880 October 1980 bill/Step 3 25,449.73 07980 November 1980 bill/Step 3 23,398.19 09780 December 1980 bill/Step 3 19,360.91 TOTAL $113,887.28 (approve for payment and file) 7. December 17, 1980, Invoice No. 5142 from Metco Inc., in the amount of $27,000, as partial payment #3 for clearing a portion of the right-of-way for the extension of Nash Road to the 4th of July Creek industrial area - approve for payment and file I 8. Invoices received from Fischbach and Moore of Alaska for work performed on the Seward electric system improvement project: December 1, 1980, "Schedule of Amounts for Contract Payments" December 11, 1980, Invoice No. FMA 1126 TOTAL $ 83,100.59 2,485.13 $ 85,585.72 (approve for payment and file) , ',' () PAGE 170 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) City Manager requested that the following changes be made to the regular meeting agenda: VII. Public Hearings: A. Public hearing on the proposed sale of City- owned Lots 22 and 23, Block 10, Laubner Addition (RESCHEDULED TO JANUARY 26 MEETING) VIII. Citizens' Discussion: B. City electrical voltage and Kenai Lumber (ADDED) IX. Ordinances and Resolutions: B. Ordinances for Public Hearing and Enactment: 1. Proposed Ordinance No. 494 regarding Borough Assembly representation (RESCHEDULED TO JANUARY 26 MEETING) C. Resolutions: 3. Proposed Resolution No. 81-3, authorizing the City Manager to sign the negotiated contract with IBEW (DELETED) XI. New Business: C. December 18, 1980, letter from Erwin, Smith & Garnett, legal counsel for James Pruitt, regarding the 4th of July Creek marine industrial park (DELETED) Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: ABCB: 1. December 3, 1980, letter from the Alcoholic Beverage Control Board, noticing of application for liquor license renewal for the Seward Elks Lodge #1773 was filed without comment. ABCB: 2. December 18, 1980, letter from the Alcoholic Beverage Control Board, noticing of application for liquor license renewal for the Breeze Inn was filed without comment. ABCB: 3. December 30, 1980, letter from the Alcoholic Beverage Control Board, noticing of application for liquor license renewal for the Palace Bar/Cafe and the American Legion Club Post #5 was filed without comment. LOC ORGS: 4. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1981 as filed by the following organizations, were noted and the Mayor was authorized to sign the applications: Wes-Gen Hospital Auxiliary Resurrection Bay Lions Club Sacred Heart Parish ELECTRIC DEPT: 5. November 20, 1980, letter from Chris Sorenson, and City Engineer's response dated December 31, 1980, regarding weekend work for the electrical crew, was noted for information only and filed. SEWAGE TREATMENT: 6. The following December 31, 1980, invoices from Arctic Environmental Engineers for work performed on the sewage treatment project were approved for payment and filed: Invoice No. 07780 07880 07980 09780 Billing September 1980 bill/Step 3 October 1980 bill/Step 3 November 1980 bill/Step 3 December 1980 bill/Step 3 TOTAL Amount $ 45,678.45 25,449.73 23,398.19 19,360.91 $113.887.28 PAGE 171 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 4TH OF JULY CREEK AREA: 7. December 17, 1980, Invoice No. 5142 from Metco Inc., in the amount of $27,000 as partial payment #3 for clearing a portion of the right-of-way for the extension of Nash Road to the 4th of July Creek industrial area, was approved for payment and filed. ELECTRIC DEPT: 8. The following invoices received from Fischbach and Moore of Alaska for work performed on the Seward electric system improvement project were approved for payment and filed: I December 1, 1980, "Schedule of Amounts for Contract Payments" December 11, 1980, Invoice No. FMA 1126 TOTAL $ 83,100.59 2,485.13 $ 85,585.72 VI. BOROUGH ASSEMBLY REPORT: Darryl Schaefermeyer gave a verbal report on the Kenai Peninsula Borough Assembly meetings of December 18, 1980, and January 6, 1981. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) SISTER CITY: A. Brent Whitmore appeared from the audience and displayed number of the pictures which had been presented to the City of Seward Sister City Obihiro, Japan. Whitmore commented that approximately 76 works of art as produced by Obihiro youth had been sent to Seward by Obihiro Mayor Tamoto. He reported some of the pictures had been given to Seward Junior High and a number would be displayed at the library. Hugli directed the City Clerk to draft a letter of thanks to Mayor Tamoto for the pictures. a by I ELECTRIC,i B. City Engineer/Utility Manager Tom Small appeared from the LP: audience and spoke on the operation of the new electrical substation. He stated Kenai Lumber was on a separate circuit from the rest of the City and the mill's electrical recloser would shut the lumber operation down when excessive amounts of current were demanded rapidly, thus protecting the remainder of the electrical customers from low voltage and excessive power fluctuations. He stated a direct correlation was noted between disruptive loads registering on voltage meters and operation of the mill's chipper. Small commented it was the administration's position that reasonable current and voltage were being supplied to Kenai Lumber's meter; however, something beyond the electrical meter, under the control of the mill, was apparently malfunctioning. He reported that Seward Fisheries drew approximately the same electrical load as the mill; but because of the Fisheries' bank of motors, a large, rapid, disruptive draw on the electrical system did not occur with SF's operations. He suggested that correction of the problem was the responsibility of Kenai Lumber and stated past consultant reports had cited the undersized chipper motor as the source of the problem. I Tom Hawkins, representing Kenai Lumber Company, appeared from the audience and reported that although numerous consultants had researched the problem, many had disagreed on how to alleviate the situation. He stated it was economically unfeasible to install equipment costing in excess of $ .5 million which had been cited by consultants as "maybe" correcting part of the problem. Hawkins stated local Kenai Lumber personnel were cooperating with the City as much as possible and the following day the mill would go back on graveyard shifts. Further, Hawkins commented that there might be a problem with the capacitor bank on the chipper motor, thus causing the frequent shut-downs, and the equipment would be checked within the week. Following discussion, Campbell stated Kenai Lumber should report back to the Council following transition to a graveyard shift and possible repair of the capacitor bank; hopefully such actions would alleviate the mill's power problems. "',q 1/' PAGE 172 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 4TH OF CREEK AREA/ RES: JULY available regarding 1. Copies being distributed to the Council and made to the public, Hugli read by title only proposed resolution the 4th of July Creek marine industrial park, entitled: A Resolution of the City Council of the City of Seward, Alaska, Declaring that an Appraisal and Public Bid Procedure for the Disposition of Certain Interests in Land is Inappropriate and Not in the Best Interest of the City of Seward City Attorney stated the resolution, in compliance with City Code provlslons, specifically addressed the waiver of an appraisal and public bid for the lease of City-owned property in the 4th of July Creek area. He reported that the next step would be a resolution approving the lease agreement and dock permit with VECO. Cripps voiced objection to such a resolution being distributed at the meeting, thus preventing the Council from having the opportunity to review the document prior to acting on the matter. Following discussion, it was moved by Gillespie, seconded by Soriano and carried as follows to approve Resolution No. 81-1: Ayes: Noes: Absent: Campbell, Gillespie, Hugli and Soriano Cripps Swartz and Vincent CLIFF ADDN/ 2. Copies being distributed to the Council and made DEEDS & available to the public, Hugli read by title only proposed resolution EASE- authorizing the sale of Lot 4, Block 9, Cliff Addition, to Mr. and Mrs. MENTS/ John C. Anderson III, entitled: RES: A Resolution Authorizing the Sale of Certain City Property City Manager reported that the resolution distributed that evening differed from the one contained in the Council packets due to an amended legal description which allows the City to withhold a portion of the parcel currently being used as road right-of-way. He confirmed that this action was as agreed to by Council and the Anderson's in months past. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-2. X. UNFINISHED BUSINESS: HOSPITAL: A. Seward Hospital Administrator Keith Campbell distributed a memorandum dated January 12, 198[0] from the Hospital Board of Trustees. In response to direction given by Council following the January 5, 1981, public hearing regarding future funding of the hospital operations, the memorandum requested the City grant the hospital a total line of credit of $72,000 to fund hospital maintenance and operations through June 30, 1981. City Manager stated that although the City and hospital were looking to the State Legislature for increased revenue sharing, municipal assistance and emergency aid, nothing was assured at this time. In answer to a question from Gillespie, City Manager confirmed that the $72,000 could be made available from the Mayor/Council contingency fund. HOSPITAL: (cont'd) I PAGE 173 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 X. UNFINISHED BUSINESS: (cont'd) Following discussion, it was moved by Gillespie, seconded by Cripps and carried as follows that the City fund the hospital along the lines stated in the January 12 letter: Ayes: Noes: Abstain: Absent: Cripps, Gillespie, Hugli and Soriano None Campbell Swartz and Vincent XI. NEW BUSINESS: PERSONNEL: A. City Manager reported on the status of negotiations with IBEW for a new employee contract--the previous agreement having expired December 31, 1980. City Attorney spoke and answered Council questions on the provisions of the proposed new agreement which had been agreed upon verbally between the two parties. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to authorize the City Manager to sign the IBEW contract when it had been put in writing, within the parameters as set by the City Council. LfTH OF JULY CREEK AREA/ DEEDS & EASEMENTS: TV: I 4TH OF JULY CREEK AREA: I 4TH OF CREEK AREA: B. Draft "Easement" and "Memorandum Agreement" between the City of Seward and Sea-Forth Properties, which would allow the City to obtain a transportation and utility easement across private property in the 4th of July Creek area, was noted. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to accept the easement and agree to give Sea-Forth Properties credit for the marketable timber on the property as sold to Kenai Lumber. XII. CITY MANAGER REPORTS: A. Administrative Assistant distributed letter dated December 18, 1980, from Satellite T.V. Systems, regarding a proposal to install a pay television channel in Seward. City Manager read the letter in full and requested Council direction on whether to investigate the proposal. Following discussion, Hugli, with Council consent, directed the City Manager to proceed with review of the proposal. B. City Manager reported on an Alaska coal marketing conference to be held at the Anchorage Westward Hilton January 23. He commented that staff members would be accompanying Mayor Hugli, John Gillespie and any other Councilmembers who wished to attend the conference. C. City Manager, with Council consent, requested permission to take vacation from January 22 to February 22, 1981. D. City Manager reported that the City had completed a project description for development of the 4th of July Creek area. He commented that the document was technical in nature and he would like authorization to contract with public relations specialists Murray, Bradley and Rockey to refine the data into a marketing document to present to the Alaska State Legislature in seeking project funding. He confirmed that the task would not cost more than $1000. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to authorize the City Manager to enter into a contract with Murray, Bradley and Rockey for a sum not to exceed $1000 to enhance the 4th of July Creek industrial site project report for presentation to the Alaska State Legislature. JULY E. City Manager reported that the DOW/SHELL group had requested the City submit a proposal similar to the one the City had presented to ALPETCO in 1978. He stated the ALPETCO document would have to be revised, at a cost not to exceed $5000. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to authorize the City Manager to spend not to exceed $5000 to get together a presentation for DOW. I 'i ". PAGE 174 REGULAR MEETING - JANUARY 12, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: A. City Attorney distributed a draft ordinance which would regulate pawnbrokers and second-hand stores in Seward. He reported the ordinance was similar to the Anchorage and Alaska State ordinances. City Manager commented that the Council would have time to review the document and, if desired, the ordinance could be introduced at the January 26 meeting. B. In response to a question from Campbell, City Manager and Administrative Assistant reported on the status of the grant application for development of a portion of the 7th Avenue greenbelt. City Manager confirmed that significant erosion control measures would be required in the development area. Soriano reported that since 1974 the beach front near his property (south of Adams) had eroded approximately 32 feet and the process did not seem to be slowing down. C. In answer to a question from Cripps, City Manager stated the City was proceeding with the junk abatement program. XIV. CITIZENS' DISCUSSION: A. Jean Cripps, member of the Seward Volunteer Ambulance Corps, appeared from the audience and referred to a shooting incident which had taken place within the City limits on December 23, 1980, and the Corps, responding to a call, had arrived at the scene and not received the proper police back-up. City Manager read in full a police report dated January 12, 1981, which listed the details of the incident as reported to police dispatch. He confirmed that the police log had showed that the police had responded within four minutes when notice was received that a shooting had occurred. Police Chief Bencardino appeared from the audience and also reported on the incident. B. Steve Tuthill, member of the Seward Volunteer Ambulance Corps, appeared from the audience and suggested that the City enter into a mutual aid agreement with the Bear Creek Fire Service District which would allow the Corps to utilize Bear Creek's crash wagon on ambulance calls within the City limits. He reported that although the Corps carried the equipment as required by the State to remove people from vehicles, Bear Creek's equipment was far superior. City Manager reported that the Bear Creek Fire Service District had not yet signed the fire service mutual aid agreement with the City and that once the document was signed it would probably cover the Corps use of the crash wagon. XV. ADJOURNMENT: The meeting was adjourned at 9:46 p.m. "\ vi , I/L'. Rtiymq:nd Mayor r; A ~I) L. Hugh ~ (City Seal) '- -"'.... ",,,,~,,y PAGE 175 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 I. CALL TO ORDER: The January 26, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. I III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps and Gillespie (Absent, with Council consent, were Soriano, Swartz and *Vincent) Newly- appointed Councilmember Patrick O'Brien was sworn in during this meeting. Present also: Acting City Manager Schaefermeyer, City Attorney Arvidson and City Clerk Shanley IV. APPROVAL OF MINUTES: carried January It was moved by Campbell, seconded by Cripps and unanimously by all those present to approve the regular meeting minutes of 12, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: Acting City Manager requested that the following items be added to the consent calendar: I 7. Invoice dated January 20, 1981, from Hughes, Thorsness, Gantz, Powell & Brundin, in the amount of $7,470.50 for legal services rendered in November and December 1980 - approve for payment and file 8. Invoice No. 08080 dated December 31, 1980, from Arctic Environmental Engineers in the amount of $19.05 for professional services performed in November 1980 on Step II of the sewage treatment project - approve for payment and file 9. Invoice No. 051075-7 dated January 10, 1981, from R & M Consultants, Inc., in the amount of $30,298.66 for professional services rendered on the Nash Road extension survey, design and construction management - approve for payment and file 10. Invoice No. 10 dated January 20, 1981, from Skyline Electric, Inc., in the amount of $5,808.75 relative to the installation of a transformer as part of the Electric System improvement project - approve for payment and file 11. Invoice No. 1 dated January 22, 1981, from Century-Quadra in the amount of $4,475.86 for professional services rendered relative to the resubdivision of Terminal Addition _ approve for payment and file I 12. Claim for Damages dated January 9, 1981, as filed by David F. Gibbons, in the amount of $741 for damage to his residence allegedly caused by the unauthorized dis- connection of electrical power by the City crew; memo received January 22, 1981, from City Engineer Tom Small, recommending payment of the claim - approve for payment and file 13. Claim for Damages dated January 16, 1981, as filed by Harbor Air Service, Inc., in the amount of $597.21 for damage to a radio, allegedly caused by an improper connection to the City electrical service by the City crew - approve for payment and file " (' PAGE 176 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) Acting City Manager requested that the following changes be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) A. Tom Hawkins of Kenai Lumber - ADD IX. Ordinances and Resolutions: A. Ordinances for Introduction: 1. Proposed Ordinance No. 495 regarding the regulation of pawnbrokers and second-hand merchants - DELETE XI. New B. Business: Draft letter to Pullman Torkelson Company regarding a future coal export facility for Seward - ADD XII. City Manager Reports: B. January 15, 1981, letter agreement from Century- Quadra, extending previous contract to provide for the engineering and design for the relocation of the 4th of July Creek, in the amount of $95,000 - ADD XIII. Council Discussion: C. Lease and Dock License Agreement between the City and the State for lease of the ferry terminal in the Waterfront Tracts and preferential berthing at the 4th Avenue Dock for fiscal year 1981-82 - ADD Following discussion, it was moved by Cripps, seconded by Gillespie and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: FINANCE: 1. The Accounts Payable register for December 1980 was approved for payment and filed. ABC B: 2. January 9, 1981, letter from the Alcoholic Beverage Control Board, noticing of renewal liquor license applications as filed by the following, was filed without objection: Dorothy's Lounge Yukon Bar Flamingo Lounge Pizza Apollo ABC B: 3. January 16, 1981, letter from the Alcoholic Beverage Control Board, noticing of renewal liquor license applications as filed by the Mini Mall and Thorne's Showcase Lounge, was filed without objection. LOC ORGS: 4. "Application for Permit for Authorized Games of Chance and Skill" for calendar year 1981 as filed by Seward High School, was authorized for the Mayor's signature and filed. 4TH OF JULY CREEK AREA: 5. January 12, 1981, billing from Century-Quadra for professional services rendered on the 4th of July Creek marine industrial park project, totaling $109,685.62, was approved for payment and filed. PERS: 6. January 14, 1981, letter from the International Institute of Municipal Clerk's President Robert Pritchard, notifying Mayor Hugli of Clerk Shanley's "Certified Municipal Clerk" designation, was noted for information and filed. C ATTORNEY: 7. Invoice dated January 20, 1981, from Hughes, Thorsness, Gantz, Powell & Brundin, in the amount of $7,470.50 for legal services rendered in November and December 1980, was approved for payment and filed. PAGE 177 V. SEWAGE TREATMENT: I 4TH OF JULY CREEK AREA: ELECTRIC DEPT: TERMINAL ADDN: C ATTORNEY/ ELECTRIC: C ATTORNEY/ I ELECTRIC: VI. gave a VII. LAUBNER ADDN: owned items REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 8. Invoice No. 08080 dated December 31, 1980, from Arctic Environmental Engineers in the amount of $19.05 for professional services performed in November 1980 on Step II of the sewage treatment project was approved for payment and filed. 9. Invoice No. 051075-7 dated January 10, 1981, from R & M Consultants, Inc., in the amount of $30,298.66 for professional services rendered on the Nash Road extension survey, design and construction management, was approved for payment and filed. 10. Invoice No. 10 dated January 20, 1981, from Skyline Electric, Inc., in the amount of $5,808.75 relative to the installation of a transformer as part of the Electric System improvement project, was approved for payment and filed. 11. Invoice No. 1 dated January 22, 1981, from Century-Quadra in the amount of $4,475.86 for professional services rendered relative to the resubdivision of Terminal Addition, was approved for payment and filed. 12. Claim for Damages dated January 9, 1981, as filed by David F. Gibbons, in the amount of $741 for damage to his residence, allegedly caused by the unauthorized dis- connection of electrical power by the City crew, was noted. Memo received January 22, 1981, from City Engineer Tom Small, recommending payment of the claim was noted and Council approved payment of the claim. 13. Claim for Damages dated January 16, 1981, as filed by Harbor Air Service, Inc., in the amount of $597.21 for damage to a radio, allegedly caused by an improper connection to the City electrical service by the City crew, was noted and the claim was approved for payment. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assemblymember Darryl Schaefermeyer verbal report on the Assembly meeting of January 20, 1981. PUBLIC HEARINGS: A. Public hearing was opened Lots 22 and 23, Block 10, Laubner were noted: on the proposed sale of City- Addition, and the following "Notice of Public Hearing - January 26, 1981" as published two times in the local newspaper and posted December 1, 1980, letter from Ralph E. Moody, submitting a bid of $7,500 for the subject lots, and accepted by the Council on December 8, 1980 I No one appeared from the audience at this time in order to be heard and the public hearing was closed. In answer to a question from Hugli, City Clerk confirmed a resolution authorizing sale of the property to Moody would be presented to the Council for action at its regular meeting of February 9, 1981. ~ 1!/ ~~ PAGE 178 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) L P: A. Tom Hawkins, representing Kenai Lumber, appeared from the audience and gave a status report on investigations into the mill's electrical problems. He reported that the mill had retained the same Westinghouse technician who had assisted the City with the new substation. Hawkins explained various steps which were being taken by the mill to try to alleviate the electrical problems experienced with operation of the chipper motor. He referred to a new time-delay card for the recloser, increasing from .6 seconds to 3 seconds the time allowed prior to the mill's circuits being shut down when an excessive electrical demand was made on the system. He also stated the mill was investigating the possibility of limiting the feed rate of the machine, thereby limiting the speed, horse power, and electrical demand. Further, he stated with the City's permission the mill would replace the capacitor bank which was on the mill's side of the City transformers, having the effect of increasing the voltage to the City by 4.6 percent. Hugli thanked Hawkins for his presentation and requested he keep the Council informed on the matter. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Proposed Ordinance No. 495 regarding the regulation of pawnbrokers and second-hand merchants was deleted from the agenda in order to allow the attorney the opportunity to incorporate the ordinance provisions into revisions of the current transient merchant ordinance. B. Ordinances for Public Hearing and Enactment: K P B/ ORDS: 1. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding Borough Assembly representation, entitled: An Ordinance Relating to Borough Assembly Representation, Repealing Sec. 2.20.030(b) and Sec. 2.20.150 of the Seward City Code "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. Acting City Manager explained that the ordinance was necessitated by the Borough reapportionment which no longer allowed city councils to appoint a representative to the Assembly. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 494. C. Resolutions: None X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: S F: A. "Lease" between the City of Seward and Seward Fisheries (SF) dated February 5, 1979, for Lot 15, Seward Industrial Park, was noted. Acting City Manager referenced the lease document wherein a January 31, 1980, deadline had been established for SF to submit to Council its construction plans for a bottom fish plant on the site. He reported that in February 1980 the Council had acted to extend the construction deadline to January 31, 1981. He stated the City Manager had recently met with SF Plant Manager Don Hansen regarding the lease default and, following discussions, the administration recommended extension of the construction deadline for an additional two-year period. Don Hansen appeared from the audience and stated that bottom fishing had appeared to be a viable industry in 1979 when the lease for Lot 15 had been signed. However, since that time, the bottom fish market was such that it was economically unfeasible to construct a plant. He stated S F: (cont'd) I PAGE 179 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) issues were complicated by the fact that New England Fish Company, one of the co-owners in the joint venture of Seward Fisheries, was currently in bankruptcy proceedings and the ownership of SF was unclear at this time. Hansen referred to a map of the Seward Industrial Park as posted in the Council Chambers and called Council's attention to the location of Lot 15 between SF's main plant and the reduction plant. He stated it was critical for future development that SF retain a leasehold on the lot. Further, Hansen reported the lot was presently being used for parking--not only for SF employees but for the public as well. He stated the parking area reduced the congestion on the dock and eventually, when the lot was developed, there would be a serious parking problem in the area. Hugli and Gillespie suggested that a lease extension be granted to coincide with the date for rental review of the parcel. Following discussion, it was moved by Cripps, seconded by Campbell and unanimously carried by all those present to extend the lease with Seward Fisheries on Lot 15, Seward Industrial Park, to October 1, 1983. 4TH OF JULY B. Acting City Manager distributed draft letter dated January CREEK AREA~6, 1981, to Pullman Torkelson Company regarding the feasibility of locating a coal export facility at the 4th of July Creek industrial park. The letter was in response to verbal discussions between Company representatives and City Councilmembers and administration which took place the previous week during the coal conference in Anchorage. Gillespie stated the letter appeared extremely conservative and felt that the Company was looking for something more positive from the City. City Attorney stated that the City Code was very explicit in the proceedings which must be followed for the disposal of City land; therefore, any type of option or limited interest in City land would have to meet Code requirements. He suggested, however, that the draft letter could be amended by adding a sentence which would try to clarify the City's interest but also its limitations involving City property. Cripps stated any verbal discussions of the type which had occurred between Pullman Torkelson and the City had to be based upon a foundation of good faith between the two parties and he hoped the Company would realize that the City was dealing in good faith. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to authorize the administration to send the letter, with minor changes, to Pullman Torkelson. I 4TH OF CREEK AREA: I XII. CITY MANAGER REPORTS: A. Small, giving noted. Acting Memorandum dated January 20, 1981, from City Engineer a status report on various City projects in progress, was City Manager spoke briefly on the individual projects. JULY B. Acting City Manager distributed January 15, 1981, letter agreement from Century-Quadra which would extend their General Contract relative to the 4th of July Creek marine industrial park to include the engineering and design for the relocation of the 4th of July Creek. It was noted that a professional fee not to exceed $95,000 was cited in the letter agreement. Cripps referred to the date on the letter and voiced objection to being presented with the document at the meeting, allowing no time to review the letter prior to a decision. He stated the letter agreement cited documents and attachments which had not been distributed to Council. Following discussion, it was moved by Cripps, seconded by Campbell, but unanimously failed by all those present, to table the matter until such time as Council had an opportunity to review the references and obtain advice of counsel. Gillespie stated he agreed with Cripps' concerns but would not want to see the project delayed. Upon the advice of the City Attorney, Acting City Manager suggested that the Council authorize the expenditure of $10,000 to allow Century-Quadra to proceed with the project on a limited basis until Council had the opportunity to thoroughly review the matter and vote on the expenditure at the February 9 meeting. In answer to a question from Cripps, Acting City Manager confirmed that the $95,000 fee was within the limitations of the City's original contract for the project. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to authorize the administration to give Century- Quadra the go-ahead to expend not more than $10,000 on the extension, pending Council review and approval at the next meeting. Schaefermeyer, with Council consent, suggested that representatives of Century-Quadra be requested to be in attendance at the February 9 meeting in order to answer Council questions on the project. \ ' PAGE 180 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) C. Acting City Manager gave a brief verbal report on the status of the University of Alaska's Institute of Marine Science's plans to develop the Oceanview Subdivision lots as acquired by them in the ASHA R-2l sale. He stated University representatives would be in attendance at one of the February Council meetings in order to make a presentation to Council on the proposed development. XIII. COUNCIL DISCUSSION: COUNCI~ A. Letter received January 14, 1981, from William C. Vincent, submitting his resignation from the City Council, was noted. It was moved by Cripps, seconded by Campbell and unanimously carried by all those present to accept the resignation with regret. At the request of Hugli, City Clerk explained the procedure for appointing a replacement. She stated that the City Code made no requirement for such but historically the Council had appointed the candidate who had, at the last election, received the highest number of votes without being elected. She confirmed in this instance that individual was Patrick O'Brien. O'Brien was present in the audience and, in response to a question from Hugli, O'Brien stated if appointed he would be willing to serve. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to appoint Pat O'Brien to fill the Council vacancy. O'Brien came forward, took the oath of office as administered by the City Clerk, was seated at the dais and thereafter took part in the meeting. P & Z COMSN: B. City Clerk noted that Chester Thorne's term as a Planning and Zoning Commissioner would expire in February and Thorne had requested reappointment. Gillespie stated the City Code provided that the Mayor could made such appointments and Hugli appointed Thorne to an additional three year term as a member of the Seward Advisory Planning and Zoning Commission. City Clerk noted resignations had been received from Commissioners Donald Hansen, Patrick O'Brien and Daniel Walker. She reported a public notice had been published regarding the vacancies and she would present the applications to the Mayor as soon as any were received. Gillespie asked the City Attorney to research the Code to see if the Mayor could make such appointments at any time or if there was a requirement that any appointments be made at a Council meeting. WATERFRONT C. City Clerk distributed "Lease and Dock License Agreement" TRACTS: between the City of Seward and the State, dated September 2, 1980, which provided the preferential use of the 4th Avenue Dock by the ferry system and leased the "old depot" located in the Waterfront Tracts to the State for a ferry office. She reported City Manager Johnson had telephoned the previous week from Juneau and confirmed that in verbal conversations with State ferry system representatives, a 12 percent increase in fees from the fiscal year 1980-81 agreement had been approved by the State for extension of the contract through fiscal year 1981-82. City Clerk requested approval from Council to proceed with presenting the lease agreement with the amended rate schedule to the State for signing; the document would then be presented to Council for final approval prior to the City's execution of the agreement. It was moved by Gillespie, seconded by Cripps and unanimously carried by all those present (O'Brien voting) to proceed with negotiations with the State on the ferry terminal and preferential use of the 4th Avenue Dock with a 12 percent rate increase. D. Cripps' congratulated the City Clerk on her designation as a "Certified Municipal Clerk". E. Hugli requested the Acting City Manager investigate the reasons for the electrical outages which had been experienced the past weekend. PAGE l81 REGULAR MEETING - JANUARY 26, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) F. In answer to a question from Hugli, Acting City Manager stated the administration had not yet executed the agreement with Albert Kawabe relative to Seward port operations but as soon as Mr. Kawabe had the time negotiations would continue. XIV. CITIZENS' DISCUSSION: I No one appeared from the audlence at this time in order to be heard. XV. ADJOURNMENT: was adjourned at 9:15 p.m. / . .~ rhrYmon~ L. Mayor ( (' " \ HUgl'i) . PAGE 181 REGULAR MEETING - FEBRUARY 9, 1981 VOLUME 19 I. CALL TO ORDER: I The February 9, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien and Soriano (Absent, with Council consent, was Swartz) Present also: Acting City Manager Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: carried January It was moved by Campbell, seconded by Cripps and unanimously by all those present to approve the regular meeting minutes of 26, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: I Acting City Manager requested the following item as listed on the regular meeting agenda be postponed until the February 23 meeting: VIII. Citizens' Discussion: A. Kathleen Putman - Seward Teen Center report i ,I...: ') PAGE 182 REGULAR MEETING - FEBRUARY 9, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) Acting City Manager requested the following items be added to the consent calendar: 1. Add - BPO Elks Lodge #1773 3. February 9, 1981, "Progress Estimate No. 4 - Nash Road Extension Phase I Clearing" as submitted by Metco, Inc., in the amount of $37,710 for work performed to extend Nash Road to the 4th of July Creek area - approve for payment and file Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: LOC ORGS: 1. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1981 as submitted by the following organizations, were authorized for the Mayor's signature and filed: Seward Women's Bowling Association American Legion Auxiliary American Legion Post No. 5 BPO Elks Lodge #1773 ABC B: 2. January 21, 1981, letter received from the Alcoholic Beverage Control Board, noticing of the filing of applications for liquor license renewals for the following, was noted and filed without objection: Pioneer Bar & Liquor Store Tony's Bar & Liquor Store 4TH OF JULY CREEK AREA: 3. February 9, 1981, "Progress Estimate No. 4 - Nash Road Extension Phase I Clearing" as submitted by Metco, Inc., in the amount of $37,710 for work performed to extend Nash Road to the 4th of July Creek area, was approved for payment and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assemblymember Darryl Schaefermeyer gave a verbal report on the Assembly meeting of February 3, 1981. Schaefermeyer also referred to the February 2, 1981, letter to the Seward Advisory Planning and Zoning Commission from Borough Mayor Stan Thompson. He stated the tone of the letter indicated that the City was on a collision course with the Borough relative to planning and zoning issues. Cripps stated the letter reflected an abrogation of Borough responsibility and urged Council to take a strong stand on the issue. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) TELEVISION: A. John Moore of Satellite T.V. Systems, consultant for Visual Entertainment Unlimited, appeared from the audience and referred to his letter dated January 31, 1981, setting forth a proposal to utilize the City's television equipment, at a rental rate of $1,800 per year, in order to offer to the citizens of Seward a pay television channel--with an installation fee of $lOO and a monthly charge of $22.50. The financial statement of John K. Jackson, husband of Roxie Jackson, sole proprietor of VEU, was distributed. Also distributed was letter dated February 9, 1981, from Bruce Trygstad, requesting Council support the VEU proposal. PAGE 183 REGULAR MEETING - rEBRUARY 9, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) (cont'd) TELEVISION: (cont'd) Moore spoke and answered Council questions on VEU's proposal to the City. In answer to a question from Gillespie, Moore assured Council that VEU's use of the City television equipment would not negatively affect the quality of the City's transmissions. In fact, he stated that for VEU to pick up its programming from the satellite, additional equipment would have to be installed which would have the effect of enhancing the I City's reception. Moore stated that the television station would not be operable for at least six months following Council approval of the proposal due to the FCC permitting process. He assured Council VEU felt confident that enough customers could be obtained to make the project economically viable. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present that the City of Seward enter into a contract with Visual Entertainment Unlimited to rent the use of one of the City's discs and other necessary equipment, for the sum of $l,800 per year, the contract to be for a one-- year period, commencing when the channel was operable, with additional yearly extensions to be negotiated. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: I LAUBNER ADDN/ 1. Copies being made available to the public, Hugli noted RES: by title only proposed resolution authorizing the sale of City-owned Lots 22 and 23, Block 10, Laubner Addition, to Ralph E. Moody, entitled: A Resolution Authorizing the Sale of Certain City Property It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-3. x. UNFINISHED BUSINESS: 4TH OF JULY A. January 15, 1981, letter received from Century-Quadra, CREEK proposing to extend the General Contract for the professional services AREA: on the 4th of July Creek Public Marine Facility to include engineering and design for the relocation of the 4th of July Creek, at a price not to exceed $95,000, was noted. Butch West of Century appeared from the audience and spoke on the scope of services covered by the letter agreement. Following discussion, it was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to authorize the City administration to enter into a contract with Century-Quadra for Phase I-B of Job #0-044 as outlined in Paragraphs D and E of Exhibit B of the General Contract, for a sum not to exceed a total of $95,000. XI. NEW BUSINESS: I None XII. CITY MANAGER REPORTS: A. Acting City Manager gave a brief report on the status of the Nash Road extension project. , PAGE 184 REGULAR MEETING - FEBRUARY 9, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) ELECTRIC B. Acting City Manager stated the City's step-up transformer DEPT: had to be replaced and three new transformers which would handle the load of the old unit had been purchased and installed the previous month. He reported the old transformer had been taken to General Electric in Kenai for repair; however, GE had quoted a price of $49,000 to make the transformer operable. The City administration had opted to purchase the new units since it was economically unfeasible to repair the older transformer. Bids had been solicited for the salvage value of the unit and Soldotna Recycling Center had submitted a high bid of $600 for the irrepairable transformer. He requested Council, by motion, approve sale of the unit to Soldotna Recycling Center. Gillespie stated the City should have for its files a letter in writing from GE which quoted the high price of repairing the transformer. Following discussion, it was moved by Gillespie, seconded by O'Brien and unanimously carried by all those present that upon receipt of a letter from GE letting the City know that this transformer is no good and estimating the salvage value, that the City sell the transformer under the circumstances to Soldotna Recycling Center for the sum of $600. C. Acting City Manager called the Councilmembers' attention to the most recent Alaska Municipal League Legislative Bulletin which listed various bills introduced in the State Senate which the City should comment on. D. Acting City Manager reported on a meeting to be held in Anchorage the following day between City representatives and Pullman- Torkelson relative to the coal transhipment project. He also reported on a Wednesday meeting with the State committee on the selection of a port for the export of the State's agricultural products. He stated the selection had been narrowed down to Anchorage or Seward. E. Acting City Manager invited the Councilmembers to the local Boy Scout Troop's no-host dinner to be held at the Elks Club on Thursday, February 12. XIII. COUNCIL DISCUSSION: A. City Clerk reported that enough applications had not yet been received to fill the three vacancies on the Seward Advisory Planning and Zoning Commission. Hugli, with Council consent, postponed action on any appointments until February 23. BUDGET: B. February 9, 1981, memo from Finance Director Gale, submitting audit proposals as solicited from eight accounting firms to provide auditing services for the City of Seward for a three-year period commencing with fiscal year 1980-81, was noted. Finance Director spoke on his written comparison of the eight firms submitting proposals; but, in response to a question from Gillespie, he stated he was of the opinion that the administration should not make a specific recommendation to Council relative to the final selection. Campbell spoke in support of Bigler, Hawkins & Obendorf due to its submittal of a yearly rate of $9,500 instead of a negotiated price for the second and third years' services. Hugli spoke in support of the City's present auditors, Price Waterhouse, stating they were familiar with the City's operations and had done a good job in the past. O'Brien spoke in support of selection of a national firm due to the various seminars offered to client personnel. He also noted the difference of approximately $5,000 between the lowest- priced proposal and Price Waterhouse's proposal. Following discussion, it was moved by Gillespie, seconded by Cripps and carried as follows that the City enter into a contract with Price Waterhouse as the City's auditors for the next three years: Ayes: Noes: Absent: Cripps, Gillespie, Hugli and Soriano Campbell and O'Brien Swartz PAGE 185 REGULAR MEETING - FEBRUARY 9, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) C. In answer to a question from Campbell, Acting City Manager gave a brief verbal report on the status of the VECO lease. D. In answer to a question from Campbell, Acting City Manager stated the Public Works Department was dumping rip rap into the Bay in the 7th Avenue beach area to try to control the erosion but more was needed. I E. O'Brien urged all Councilmembers to talk to various citizens and encourage them to apply for the Planning and Zoning Commission. XIV. CITIZENS' DISCUSSION: A. Margaret Branson appeared from the audience and stated that various attorneys for Boroughs within the State had interpreted State law in a manner which would not allow Boroughs to assign planning and zoning functions to the cities. XV. ADJOURNMENT: The meeting was adjourned at 9:33 p.m. I ) , (j~ R~mo~ L. Hugli f Mayor -------------------------------------------------------------------------- PAGE 185 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 I. CALL TO ORDER: The February 23, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: flag. Councilmember Gillespie led the pledge of allegiance to the III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, and Gillespie (Absent, with Council consent, were Councilmembers O'Brien, Soriano and Swartz) I Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting minutes of February 9, 1981, as written. )1 \ ,.l :' f' PAGE 186 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the consent calendar: 4. "Periodic Estimate for Partial Payment" No.6 from Brown and Associates, dated February 6, 1981, in the amount of $77,198.77, for work performed on the sewage treatment project - approve for payment and file 5. Fischbach and Moore of Alaska Invoice No. FMA-1148 dated December 29, 1980, in the amount of $8,255.29 for costs incurred for the Seward Electric System improvement project (substation) - approve for payment and file City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) C. Century-Quadra report on the replat of the Terminal Addition D. Paul Paquette XI. New Business: C. 4th Avenue Dock damage Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: C ATTORNEY: 1. February 10, 1981, billing from Hughes, Thorsness, Gantz, Powell & Brundin in the amount of $10,068.61 for legal services rendered through January 31, 1981, was approved for payment and filed. ELECTRIC: 2. "Claim for Damage" as filed by Gertrude DeTerra on January 29, 1981, in the amount of $376 for damage to a freezer allegedly caused by electrical power fluctuations on January 24, 1981, was denied for payment pursuant to City Engineer Small's memo dated February 18, 1981. ELECTRIC: 3. "Claim for Damage" as filed by Mark C. Walker on February 6, 1981, in the amount of $184.56 for damage to a hot water tank allegedly caused by electrical power fluctuations on January 20, 1981, was denied for payment pursuant to City Engineer Small's memo dated February 18, 1981. SEWAGE TREATMENT: 4. "Periodic Estimate for Partial Payment" No. 6 from Brown and Associates, dated February 6, 1981, in the amount of $77,198.77, for work performed on the sewage treatment project, was approved for payment and filed. ELECTRIC: 5. Fischbach and Moore of Alaska Invoice No. FMA-1148 dated December 29, 1980, in the amount of $8,255.29 for costs incurred for the Seward Electric System improvement project (substation), was approved for payment and filed. I OCEANVIEW SUB: TERMINAL ADDN: I I I ,~" , PAGE 187 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assemblymember Darryl Schaefermeyer gave a verbal report on the Assembly meeting of February 17, 1981. He reported the Assembly had approved an appropriation of $4,000 to fund the City of Seward's response to the request for information and data from the Dow-Shell Group relative to the development/location of a petrochemical facility in the State of Alaska. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: A. Kathleen Putman of the Seward Teen Center was not present in the audience to report to Council on the status of the Center's operations. B. Ed Lapsley of the University of Alaska, Fairbanks, Institute of Marine Sciences, appeared from the audience and presented for display and discussion schematic drawings of the proposed marine public education facility to be constructed on Block 5 of the Oceanview Subdivision. Lapsley spoke on the various phases of the project and confirmed that the University had funding of $1 million to complete the facility through Phase I, which included plans for an auditorium and exhibit area. In response to a question from Gillespie, Lapsley stated Phase I construction was scheduled for completion by February 22, 1982. C. Howard Holtan, PE, QUADRA Engineering, appeared from the audience and posted various conceptual sketches of the replat of the Terminal Addition. He reported all property boundaries had been located and a litigation report on ownership had been obtained. City Manager stated that he felt reasonably sure that the two private parties who owned parcels in the subdivision would be amenable to the replat and would cooperate with the City on some type of equitable land transfer. Holtan commented that the City could choose the housing mix for the subdivision and displayed a draft sketch showing approximately 140 single-family lots ranging from one-quarter to one-third acre in size, to be located in the north portion of the subdivision; the southern portion contained approximately 140 multi-family lots. The sketch also designated north and south access roads. Campbell spoke in support of providing some larger lots in order to allow purchasers a wider choice. Holtan stated the Council also needed to address whether the subdivision would use cul-de-sacs. He voiced a preference for the cul-de-sacs because loop streets would have an approximate grade of 8 percent which would pose an access problem in the winter. However, he stated the Public Works foreman did not support the use of cul-de-sacs due to snow removal problems. Holtan stated the snow removal problem could be solved one of two ways with the use of cul-de-sacs: design larger cul-de-sacs which would accommodate snow storage in the center of the circle, or provide an area off the end of the cul-de-sac which would be used solely for snow storage. Hugli spoke against the latter suggestion, stating the reserved lot would end up looking like an eyesore during the summer months. Campbell spoke in support of cul-de-sacs and City Manager commented that larger cul-de-sacs, providing for snow storage in the center, had worked well in a subdivision in which he had previously resided. In answer to a question from Cripps regarding the design drawing which indicated the multi-family area south and downhill from the R-l area, Holtan stated the design had been developed in that manner due to the projected traffic patterns and the grade of the subdivision was such that the single-family units would not have their views obstructed by the higher density, and presumably taller, units. PAGE 188 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (cont'd) TERMINAL Gillespie spoke in support of holding public hearings on ADDN: the design of the subdivision and asked why a bike path had not been (cont'd) included in the conceptual drawings. Holtan stated the 50-foot road right-of-ways would be paved with 24 feet of pavement, would be low-use streets, and there should be no problem with signing the area for joint use. Gillespie stated the Council might want to consider placing covenants on the subdivision in order to control the development. In answer to a question from Campbell, City Manager stated he needed cost figures before he could raise the money for the project and did not anticipate construction this year. Following discussion, City Manager stated the conceptual plans would be presented to the Planning and Zoning Commission for their review and comments. ELECTRIC: D. Paul Paquette appeared from the audience and stated that prior to the adoption of the new City of Seward Electrical Tariff in 1979, he had requested that the City extend electrical service to his residence. At the time of the electrical extension the City's policy was to amortize the cost by allowing a 10 percent reduction in the customer's electrical bill. In August of 1979 he had appeared before Council and had unsuccessfully requested that the payback of the electrical extension be handled in the same fashion as new extensions addressed in the electrical tariff. Paquette stated that now that the City electrical bills were being done by computer, the computer apparently could not handle the 10 percent deduction each month; therefore, he had been informed that he would be receiving a refund check every three or four months, representing the monthly 10 percent deduction. Paquette again requested that Council approve paying the total amount due him. He stated that three individuals were involved in such electrical extensions and he estimated the City's cost at $4,500 to settle these accounts. City Manager stated he had not been aware that Paquette was to appear at the meeting and he requested an opportunity to investigate the situation. Hugli, with Council consent, postponed further discussion on the matter until the March 9, 1981, meeting, at which time the City Manager would present an administrative report regarding Paquette's request. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: None X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: LOC ORGS: A. February 6, 1981, letter from Pamela Oldow, Treasurer of the Seward Chamber of Commerce, requesting funding in the amount of $12,000 for the 1981 Murray, Bradley & Rockey publicity/advertising campaign, was noted. Gillespie stated it was unfortunate that a Chamber representative was not available to answer Council questions. Hugli questioned what the City's participation rate had been the previous fiscal year and what the Chamber was contributing for the coming year. Following discussion, City Manager stated he would have answers to Hugli's questions by the March 9 meeting and, further, would request the attendance of Mr. Eric Peterson of Murray, Bradley & Rockey in order to give Council an updated report on last year's campaign and what was planned for 1981. PAGE 189 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) RADIO STN: B. February 9, 1981, letter from City Clerk Shanley, requesting a token payment to KRXA radio for public service announcements regarding City news, was noted. Hugli requested the administration check with counsel regarding the legality of such a payment and further recommended that, if legal, Council approve a $500 payment for the current year and $1000 for the next fiscal year. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve a token donation to KRXA radio of $500 for this year and for $1000 for the next budget year, contingent upon the legality of such a payment. I WATERFRONT C. City Manager stated that a bad storm in January had done TRCTS: extensive damage to the 4th Avenue Dock. Three firms had been contacted and requested to submit bids for repair of the structure, with the City to supply the piling and lumber. He quoted the bids as follows: Construction & Rigging, Inc. Sandstrom & Sons, Inc. Swalling Construction Company, Inc. $ 24,680 21,900 44,530 He requested Council authorize low bidder Sandstrom & Sons to perform the work and stated that although the City was seeking reimbursement from the insurance company, it did not look favorable that the damage was an insured expense. City Manager also reported that the City's cost for the 8 piling needed would be approximately $8,000 to $10,000. Following discussion, it was moved by Cripps, seconded by Gillespie and unanimously carried by all those present that the City administration be authorized to make an expenditure not to exceed $35,000 to repair the 4th Avenue Dock, authorizing the firm of Sandstrom & Sons to do the work. I XII. CITY MANAGER REPORTS: None XIII. COUNCIL DISCUSSION: A. In answer to a question from Hugli, City Clerk stated that enough applications had not yet been received to fill the three vacancies on the Seward Advisory Planning and Zoning Commission. However, she reported that a number of applications had been picked up and were expected to be filed within the week. She stated that the next Commission meeting was not scheduled until March 11 and Council met prior to that date on March 9 and the Mayor could make the appointments at that time. Hugli, with Council consent, postponed making any appointments to the Planning and Zoning Commission until the March 9 Council meeting. B. Cripps commented that he had heard that the State was planning to reduce the number of teleconference centers and, if so, Seward would lose access to the local network. He urged the Council, if need be, to pass a resolution objecting to any such action. City Manager stated he would be in Juneau later in the week and would check on the matter. I C. Campbell gave a verbal report on his recent trip to Juneau and his testimony on the selection of Anchorage over Seward as the grain export site for the State. D. Campbell stated another meeting was taking place in Seward concurrently with the Council meeting regarding the use of drugs in the community. He stated Council should take a leadership role in supporting the local law enforcement officers in cracking down on drug use in town. He requested that a resolution to that affect be approved by Council and stated he would work with the City Clerk in drafting the document. () PAGE 190 REGULAR MEETING - FEBRUARY 23, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) E. Gillespie questioned if the pneumatic loader at Louisiana Pacific could be used for loading grain onto the ships and if this was a positive factor for Seward. City Manager stated that Seward had been selected as the export site until major politics became involved. F. In answer to a question from Gillespie, City Manager stated the administration was still working on the junked/abandoned car abatement effort. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. ADJOURNMENT: J C was adjourned at 9:15 p.m. , I / ~ /1\ .. (f ,/., -4 /' I R~m~/L. Hug 1 ' Mayor -------------------------------------------------------------------------- PAGE 190 SPECIAL MEETING - FEBRUARY 24, 1981 VOLUME 19 I. CALL TO ORDER: Council Meeting and the The February 24, 1981, special meeting of the Seward City was called to order at 4: 34 p.m. by Mayor Hugli. "Special Notification" as served on the Councilmembers, the radio station local newspaper, was noted. II. OPENING CEREMONY: Councilmember Soriano led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien and Soriano (Absent, with Council consent, was Swartz) Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley PAGE 191 SPECIAL MEETING - FEBRUARY 24, 1981 VOLUME 19 IV. SPECIAL ITEM: I A. City Manager commented he had called the special meeting in order to discuss with Council the 4th of July Creek marine industrial park development and the impact which negotiations with various entities regarding location of a major coal export facility in the Seward area might have on that development. He reported that the City had been required to file only an environmental assessment, not a fully-detailed environmental impact statement, on the 4th of July Creek development and the comment period as established by the Corps of Engineers was scheduled to close on March 13. However, pressure was being applied by EPA and the U.S. Fish and Wildlife Service to extend the comment period for an additional 45 days and, possibly, require the filing of an environmental impact statement. He reminded Council of discussions the Council and administration had with Pullman-Torkelson Company regarding the exportation of coal from Seward. A letter of intent to negotiate had been forwarded to Pullman-Torkelson; however, the City had urged the Company to accommodate the City by delaying any discussions of leasing land in the 4th of July Creek area until the period for comment on the marine industrial park had been closed by the Corps of Engineers. It was felt that discussions of a coal facility might in some way jeopardize the time schedule for the marine industrial park. I City Manager stated that recently he had been pressed by the news media and other sources regarding Seward's involvement in coal. Recent headlines in the Anchorage papers had reported that the Municipality of Anchorage was in the planning stages of constructing a major coal export facility. He stated if Seward waited too long to become involved, the City might lose the opportunity to have the facility located on Resurrection Bay. Further, City Manager reported he was travelling to Juneau the following morning and the State Commissioner of Natural Resources Robert LeResche had requested a meeting, apparently to discuss coal. City Manager stated he could only evade questions so long and asked Council direction on whether to deny involvement in plans for a coal facility for Seward--in order to try to protect the time schedule for the marine industrial park--or to come forward and answer positively that Seward was actively involved and interested in a coal export facility. City Manager stated that even without considering the coal situation the 4th of July marine industrial park development might be delayed by various Federal agencies even though it had the support of the Corps of Engineers. I O'Brien spoke in support of aggressively pursuing coal if its effects on the VECO project were only to slow it down, not entirely jeopardize the development. Gillespie stated with the time frame for contract negotiations pursuant to the City Code, the comment period on the 4th of July Creek development might well be closed prior to any news-worthy negotiations taking place relative to a coal facility. Hugli voiced concern that the City had been working for more than two years with VECO on the shipyard project and he would not want to see anything happen to jeopardize that project. He stated a year's delay would have an overwhelming economical impact on the company. Following lengthy discussion, Campbell, with Council consent, stated the City Manager and administration should maintain a low-profile attitude about coal as long as possible; however, when outside forces became such that action became necessary, the City should aggressively pursue the coal facility. Soriano reminded the Council that the City Manager would be speaking on behalf of the City and should be assured of strong Council support. V. ADJOURNMENT: adjourned at 5:20 p.m. '1 / RaYtti(~). Mayor Hugli /\ , i,,,.f , ( / ) 'l /- 1 ~'~ '? PAGE 192 REGULAR MEETING - MARCH 9, 1981 VOLUME 19 I. CALL TO ORDER: The March 9, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Gillespie. 11. OPENING CEREMONY: the flag. Councilmember Soriano led the pledge of allegiance to III. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Cripps, O'Brien, Soriano and Swartz (Absent, with Council consent, were Mayor Hugli and Councilmember Campbell) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Swartz, seconded by Cripps and unanimously carried by all those present to approve the regular meeting minutes of February 23, 1981, and the special meeting minutes of February 24, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) C. Robert Richardson, Skill Center - construction projects D. Brian Bahr - Seward High School music department funding request E. Jerry McCutcheon - port development Gillespie requested that the following item be added to the regular meeting agenda: XIII. Council Discussion: B. Clerk's travel request Following discussion, it was moved by Cripps, seconded by Swartz and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: FINANCE DEPT: 1. Finance Department's list of Accounts Payable as of February 2, 1981, totaling $7,967,169.95, was approved for payment and filed. ELECTRIC DEPT: 2. December 19, 1980, Invoice #KB505l5 from Westinghouse Electric Corporation for $5,114.84 for work relating to the Seward electric system substation, was approved for payment and filed. PAGE 193 REGULAR MEETING - ~~RCH 9, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALEJ'oiDAR AND REGULAR NE?;TlNG AGENDA: (cont'c1) ELECTRIC DEPT: 3. The following invoices as received February 24, 1981, fro~ CHZM Hill for work relating to the Seward electric system improvement project were approved tor paYTent apd filed: Invoice No. Date Amount --.-.- --- 10338 December 15, 1981 $ 4,356.57 I 10343 January 15, 1981 5,513.12 103~2 January 15, 1981 513.06 10367 February 16, 1981 4,935.08 10368 February 16, 1981 362.14 TOTAL $ 15,679.97 4TH OF JULY CREEK AREA: 4. R & ~ Consultants Invojce No. 051075-8 in the amount of $47,403.60, and Invoice No. 051144-3 in the amount of $194.73, as received February 24, 1981, for work performed in connection with the Nash Road Extension Project (Desil',n Phase), .1ere approved for payment and filed. VI. BOROUGH ASSEYiBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of Tuesday, March 3, 1981. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With Drior notice only) ILOC ORGS: A. Dale Lindsey, representing the Seward Chamber of Commerce, appeared from the audience and introduced Messrs. Eric Peterson and Dave Bean of Murray, Bradley and Rockey (MBR), the advertising/public relations agency retained to Dromote the community during the past fevi years. February 6, 198[0], letter from Seward Chamber of Commerce ,Treasurer Pamela Oldow, requesting funding in the amount of $12,000 for the 1981 advertising and publicity campaign, was noted. Bean reviewed the past years' activities and stated that Seward received 3400 column inches of mention in various newspapers and publications, which if purchased, equated to $80,000 worth of advertising. He stated MBR was capable of expanding the tourist orientated campaign to encompass industrial development also. In answer to a auestion from Gillespie, City Manager reported the City had appropriated approximately $9,000 to the Chamber of Commerce during the previous fiscal year, $5,200 of which was for the MBR publicity campaign. Cripps stated the $12,000 as requested represented a $7 per capita donation and questioned the amount. Ellen Setters appeared from the audience and spoke in support of the $12,000 allocation. In answer to a question from O'Brien, Chamber of Commerce President Dale Clemens appeared from the audience and stated the Chamber had not yet determined the amount it was going to allocate to the publicity campaign for the coming year. I Follm.ling discussion, it ,,'as moved by Swartz, seconded by Soriano and unanirrDusly carried by all those present to go ahead 'Nith the publicity campaign and approve the appropriation to the Seward Chamber of Commerce in an amount not to exceed $12,000. " -j I~,~ PAGE 194 REGULAR MEETING - MARCH 9, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) (cont'd) WATERFRONT B. Kathleen Putman, Director of the Seward Teen Center as TRACTS: located on Tract 2, Seward Waterfront Tracts, appeared from the audience and distributed "Statement of the Problem" regarding the financial needs to keep the Center in operation beyond May of 1981. Putman spoke and answered Council questions on the use of the Center and the funding as provided by the Johnson-O'Malley Committee (JOM). She confirmed that the JOM funding was for use of the Center by students between the ages of 13 and 19 who were at least 25 percent Native. Continued funding for the coming year was tenuous due to the fact that the majority of the youth using the Center were not of Native origin. Putman submitted to Council a budget request of $41,900. Following discussion, City Manager recommended Council conduct a well-advertised public meeting in order to receive more citizen input on the problem of keeping the Center operational into the future. Gillespie, with Council consent, scheduled a public meeting for Monday, April 6. It was noted that the meeting would not be a special Council meeting or Council public hearing, but rather just an opportunity to inform the public of the financial needs of the Center and to receive citizen input. SCHOOLS: C. Bob Richardson, representing the Seward Skill Center, appeared from the audience and displayed various conceptual drawings of the new shop to be constructed adjacent to the existing structure on the Seward highway, and the planned new student center which would replace the existing Seward elementary school building. Richardson also spoke on the completion of the renovation of the old high school and armory. In conclusion, Richardson requested the City pave a strip in front of the renovated high school on Second Avenue from the curb as installed by the Skill Center, to connect with the existing street pavement. City Manager stated he would investigate the funding for doing the work but stated the City's first priority project, if public works funds were available, was to resurface Fourth Avenue. D. Seward high school music teacher Brian Bahr appeared from the audience and requested permission to postpone his presentation to a later date. Gillespie asked that Bahr contact the City Clerk when he wished to appear before Council. E. Jerry McCutcheon was not present in the audience to be heard at this time. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 4TH OF CREEK AREA/ RES: JULY l. Copies being made available to the public, Gillespie noted by title only proposed resolution regarding State funds for the 4th of July Creek Marine Industrial Park port facility, entitled: A Resolution Requesting the State of Alaska Department of Transportation and Public Facilities to Transfer $4.5 Million in Bonds for the Seward Port Facility City Manager stated the funds as provided through DOT would be used to relocate 4th of July Creek and construct a dike to control the path of the Creek. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-4. PACE 195 REGULAR MEETING - P~RCH 9, 1981 VOLUME 19 X. UNFINISHED BUSINESS: ELECTRIC A. March 2, 1981, memo from City Engineer Tom SmaJ1, recommending DEPT: an adjustment be made to the Electric Line Extension Contract as entered into in 1975 between P~ul Paquette and the City of Seward, was noted. It was noted that when the new electrical tari!f was instituted in 1979, electrical line extensions such as Paquette's were handled in a different manner. If Paquette were allowed to follow the terms of the 1979 tariff, he would receive a refund check in the amount of $1,243.89 rather than I having the amount amortized over a number of years in the form of a lO percent reduction in his monthly electrical bill. City Manager and City Engineer spoke in favor of such an adjustment. In answer to a question from Cripps, Paul Paquette appeared from the audience and stated he agreed with the City administration's recommendation. Following discussion, it was moved by O'Brien, seconded by Soriano and unanimousJy carried by all those present to refund $l,243.89 to Paul Paquette to cJear the account. City Manager reported there were two other accounts outstanding which were similar to Mr. Paquette's and he requested Council permission to clear these accounts in the same manner. Follm_ring discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to work out the s~me type of settlement with the other two electrical customers on par with Paul Paquette's settlement. XI. NEW BUSINESS: None XII. CITY MANAGER REPORTS: SEWAGE A. City Manager distributed "Contract Change Order" dated TRTMT:March 5, 1981, as submitted by Bro~n and Associates, in the amount of I $10,602.14, for work related to the sewage treatment project. City Manager explained the work involved changing the framing on four electrical poles in order to raise the height of the lines to meet safety standards. O'Brien stated the telephone company might be in a position to vacate the poles in question in order to allow the lines to be lowered ratner than raised. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to expend not more than $lO,602.4l for this change order, subject to DEC (Dept. of Environmental Conservation) approval, with the understanding that the telephone comDany would work with the electric company and try to work out the problem. I ELECTRIC B. City Manager reported the administration was investigating DEPT:the institution of a custQmer-re~d meter system for the Seward Electrical Utility. He stated the program as visualized would incorDorate ~n incentive payment of $2.50 for those customers who read their meters and sent in the card as provided by the utility, and a penalty charge of $5.00 for those customers who did not respond and the electrical crew had to be dispatched to read the meter. Utility Manager Small stated in excess of $25,000 was spent annually to read the meters; whereas, if customers read their own meters and the City only had to do a check on a quarterly basis, the electrical crew could be assigned to other projects. In answer to a comment from Cripps, Small stated that although the electrical customers would not see a reduction in their utility rates, electrical utility costs would be reallocated and rates would not increase as rapidly in the future. Cripps and O'Brien voiced objection to the levy of a penalty for those customers not reading their own meters. City Manager stated the only way such a system would work was to have the cooperation of a high percentage of the utility customers. He stated it was anticipated that the program would initially be tested for its effectiveness in the Nash Road area and then extend out the highway where the costs of reading meters by the City electrical crew was much higher than was the meter reading function within the City limits where there was a much higher population density. Following discussion, Gillespie requested the administration compile a log on the anticipated redirection of the monies now used to read meters. .) PAGE 196 REGULAR MEETING - MARCH 9, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: P & Z COMSN: A. February 26, 1981, memo from Mayor Raymond L. Hugli, listing his appointments to the Seward Advisory Planning and Zoning Commission, was noted. Gillespie reported that the Mayor had appointed Tom McKinney, John Woodruff and Ben Ikerd to the Commission, with terms expiring in February of 1982, 1983, and 1984 respectively. C CLERK: B. Gillespie referred to the City Clerk's memo dated March 4, 1981, requesting permission to attend various conferences in April and May. In response to a question from Gillespie, City Clerk spoke on her travel requests to attend the Alaska Association of Municipal Clerks' April conference in Fairbanks, the International Institute of Municipal Clerks' May conference in Atlanta, and a seminar in Seattle in Mayas sponsored by the University of Washington and the U.S. General Services Administration. City Manager spoke in support of the Clerk's attendance at the meetings. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to authorize the City Clerk to go to these functions as stated in her memo. C. Soriano stated the weather forecasts for Resurrection Bay as broadcast by the National Weather Service were extremely inaccurate and reflected poorly on Seward. Following discussion, Gillespie requested Soriano draft a letter of objection to the inaccurate forecasts for Council review and support at the March 23 meeting. D. Cripps stated there was some talk about the Kenai Peninsula Borough Assembly discontinuing funds for the broadcast of the Assembly meetings by the various radio stations throughout the Borough. He spoke in support of the broadcasts, especially for areas such as Seward which were so far removed from Soldotna, and urged the local citizens to support the broadcasts by communicating with the City Clerk. E. In answer to a question from Cripps, City Manager stated he had investigated the rumor that had circulated regarding the Alaska State Legislature cutting back on the funding for the'teleconference system. He stated he could find no truth to the rumor and it appeared the system was expanding rather than in jeopardy of being limited to the larger metropolitan areas of Anchorage, Fairbanks and Juneau. F. In answer to a question from O'Brien, City Manager stated City representatives would be meeting with VECO on Wednesday and Thursday regarding the 4th of July Creek Marine Industrial Park development. City Attorney reported there were complications regarding the dock license agreement due to provisions in the City Charter but he felt confident the difficulties could be resolved in the near future. G. In answer to a question from O'Brien, City Manager gave a brief report on the status of the Nash Road extension project. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. ADJOURNMENT: adjourned at 10:00 p.m. .' . ~ (Cit~ Se'q:l.) ".! r,;j;;:.) .v{C,--{x"J)J}.J.-~ I I I PAGE 197 REGULAR ~1EETING - BARCH 23, 1981 VOLUME 19 I. CALL TO ORDER: The March 23, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice .Mayor Gillespie. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Pres~n~ were: Vice Mayor Gillespie; Councilmembers O'Brien, Soriano and Swartz (Absent, with Council consent, were Mayor Hugli and Councilmembers Campbell and Cripps) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve the regular meeting minutes of March 9, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: ._----" - City Manager requested the following changes be made to the regular meeting agenda: VIII. Citizens' Discussion: ----- B. DELETE presentation by Jerry McCutcheon and Bernard Hulm regarding port development pursuant to letter from McCutcheon dated March 23, 1981 IX. Ordinances and Resolutions: -- C. Resolutions: 1. DELETE proposed Resolution No. 81-5, regarding a land exchange between the City of Seward and the Kenai Peninsula Borough 1. ADD proposed Resolution No. 81-5, awarding the contract for the Nash Road extension project XI. New Business: --------- A. DELETE award of bid for Nash Road extension project (see IX. C. 1.) A. ADD Change Order No. 4 for the sewage treatment project Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: FINANCE DEPT: l. The Finance Department's list of Accounts Payable for February 1981, totaling $4,571,603.27, was approved for payment and filed. ELECTRIC DEPT: 2. February 25, 1981, Invoice #5188-50058 from General Electric, totaling $3,970.70, for work performed relative to the electric system improvement project, was approved for payment and filed. ~ q f,"~ WATERFRONT TRACTS: 4TH OF JULY CREEK AREA: SCHOOLS/ SEWAGE TREATMENT: SEWAGE TREATMENT: 4TH OF JULY CREEK AREA: TERMINAL ADDITION: ELECTRIC SYSTEM: PKS & REC: PLANNING & ZONING: PAGE 198 REGULAR MEETING - MARCH 23, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 3. March 9, 1981, Invoice from Sandstrom and Sons in the amount of $21,900 for repair of the Fourth Avenue Dock, was approved for payment and filed. 4. March 5, 1981, Invoice #1 from Quadra Engineering, in the amount of $5,000, for preparation of the DOW/Shell proposal, was approved for payment and filed. 5. February 27, 1981, Invoice #01481 for $195 and Invoice #01581 in the amount of $4,532, as submitted by Arctic Environmental Engineers for work performed relative to the Alaska Skill Center sewer line project, was approved for payment and filed. 6. February 20, 1981, Invoice #00381 in the amount of $11,741.27, from Arctic Environmental Engineers for work performed on the sewage treatment project, Step III, was approved for payment and filed. 7. March 5, 1981, Invoice #1 from Century-Quadra, in the amount of $5,650, for work performed relative to the relocation of Fourth of July Creek, was approved for payment and filed. 8. March 10, 1981, Invoice #2 from Century-Quadra, in the amount of $33,962.75, for work performed relative to the resubdivision of the Terminal Addition, was approved for payment and filed. 9. December 15, 1980, Invoice #10339, in the amount of $16,987.79, from CH2M Hill for work performed relative to the electric system improvement project, substation inspection, was approved for payment and filed. 10. March 11, 1981, letter from the State Division of Parks Liaison Officer Dennerlein regarding Seward's recreational grant request, was noted for information and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of Tuesday, March 17, 1981. He specifically reported on an ordinance as introduced by Mayor Thompson which would delegate the planning and zoning function to the first class cities within the Borough; the Borough would retain subdivision authority and no monies would be made available to the cities for the planning function. Schaefermeyer reported the ordinance was scheduled for public hearing and enactment on April 21. City Manager stated the administration had some serious problems with the ordinance as presented and, although the City of Seward had for some time supported the transference of planning powers to the cities, he could not support the transfer of the planning function under the terms as set forth in the ordinance. He reported the other first class cities within the Borough were having a similar reaction and a meeting had been scheduled for March 31 to provide the opportunity for representatives of the cities to get together and discuss the issue. VII. PUBLIC HEARINGS: None I I I LIBRARY / BUDGET: SISTER CITY: TERMINAL ADDN: PAGE 199 REGULAR MEETING - MARCH 23, 198] VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) C. (Taken out of order by Vice Mayor, with Council consent) March 17, 1981, letter from the Board of Directors of the Seward Community Library, requesting additional City funding for the remainder of the current fiscal year as well as fiscal year 1981-82, was noted. Jackie Garretson, Assistant Librarian, appeared from the audience and spoke in support of and answered questions on the Library Board's request. She confirmed that the additional monies were necessary due to the termination of the CETA program. City Manager spoke in support of the Library Board's request, stating the Library served the community well. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to advance the $2,500 for this fiscal year to the Library. Gillespie, with Council consent, asked that the City Manager place the $15,000 as requested by the Library for fiscal year 1981-82 in the budget for Council review during budget hearings. A. Brian Bahr, Seward High School music teacher, appeared from the audience and reported on the invitation received from Seward's Sister City of Obihiro, Japan, for the music students to travel to Obihiro to participate in that city's centennial celebration in August of 1982. An itemized listing of the projected travel costs, including a request for matching funds from the City, dated March 6, 1981, was noted. Bahr spoke in support of and answered questions on the funding request which would be used to defray some of the costs of the approximately 65 band and chorus students expected to make the trip. Gillespie spoke on the need for Council to weigh each request for funding thoroughly, commenting on the earlier request of the Library and the uncertainty of the Teen Center funding. In answer to a question from the City Attorney, Robert Richardson appeared from the audience and stated the school district was the sponsor of the trip; therefore, school insurance would cover the students while away from Seward. Bahr spoke on various fund- raising activities which would be undertaken by the students, and at the request of O'Brien and Gillespie, he stated he would submit to Council a list of those planned activities. Gillespie commented he would not want to make a decision that evening due to the absence of three Councilmembers. City Manager, with Council consent, recommended the administration draft a resolution which would commit the Council to a certain amount of matching funds over the next two years to assist in the funding of the Obihiro trip. He stated that would give the entire Council an opportunity to review the resolution and make a decision on the funding. Gillespie asked that the resolution be scheduled for the April 13 Council meeting. B. Howard Holtan of Quadra Engineering appeared from the audience and distributed a document entitled "Conceptual Planning and Development Strategy for the Terminal Addition Property, Seward, Alaska". Holtan posted a conceptual drawing of the proposed subdivision and spoke on the roads, sewer, water and electric utilities which would be constructed to service the area. He stated that of the 135 total acres in the subdivision only 85 acres were developable. He commented Council had the option to develop the entire subdivision into single-family parcels of 1/4 to 1/2 acre in size or could provide multi-family parcels in the southern portion of the subdivision. Holtan reported he had calculated a per-unit cost for three alternatives for development which might be selected by the Council: 1) 184 single-family lots with a net development cost of $16,800 per lot, 2) 128 single-family lots and 129 multi-family units with a net develooment cost of $11,800 per unit, and 3) 128 single- family lots with a portion of the subdivision to remain an undeveloped tract with a net development cost of $19,300 per lot. Following Holtan's presentation, City Manager stated he would like Council to postpone any lengthy discussion on the proposed subdivision at this time due to the need to present the new information to the Planning and Zoning Commission. , "~I , I SEWAGE TREATMENT: 4TH OF JULY CREEK AREA: WATERFRONT TRACTS: PAGE 200 REGULAR MEETING - MARCH 23, 1981 VOLUME 19 XI. NEW BUSINESS: (Taken out of order by Vice Mayor, with Council consent) A. City Manager stated Change Order No.4 had been submitted by Brown & Associates for the sewage treatment project. He stated the administration recommended approval of the change order, which was necessary due to the high water level along the Seward Highway between Airport Road and the military recreation camps. Due to the water level, it was requested that the line not be buried at the depth originally planned but rather a more shallow line be approved with construction of a necessary pump station. City Manager reported the additional costs, including construction of the pump station, would be $85,352; however, credits totaling $55,352 would be allowed due to a more shallow burial of the line. He commented the $30,000 contract increase price was still within the budgeted figures for the project. Following discussion, it was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to authorize Change Order No. 4 for $30,000. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public and distributed to Council, Gillespie noted by title only proposed resolution awarding the contract for the Nash Road extension project, entitled: A Resolution Awarding the Nash Road Extension Project to Wilder Construction and Approving Supplemental Project Funding March 19, 1981, letter from R & M Consultants, consulting engineers for the project, recommending award of the project to low bidder Wilder Construction, was distributed. City Manager stated there was a budget shortfall of $1,700,000; however, State representatives had given their verbal blessing to expend a portion of the $4,500,000 in State bond monies allocated to Seward for port development on the road construc- tion. He stated once written authorization was received the budget transfer would be made. Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-5. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. Memo dated March 18, 1981, from City Engineer Small, regarding Seventh Avenue shoreline protection, was noted. City Manager stated the administration had contacted the Department of Environmental Conservation and the Environmental Protection Agency and requested that they assist the City in its efforts to stabilize the area. He stated he expected a response prior to the April 13 meeting and would have a full report at that time. PAGE 201 REGULAR MEETING - }~RCH 23, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: A. the Ancl:orar;e respecti,vely, the export of City ~1anager distributed coptes of Daily News and the Anchorage Times regarding the State's selection of Alaska grain and possibly coal. articles appearinE; in on Harch 22 anc. 2.3) SevTard as the site for I B. City Manager gave a brief verbal report on the status of the Corps of Engineer permitting process for the 4th of July Creek marine industrial park developnent, stating that the cOlIlI'lent period had not been extended and it was anticipated that the City would receive its ~erm~t within 30 cays. C. City Manager r;ave a report on the DOIJ/ShelJ feasildlity study as corrnnissioned by DOW for the locaticn of a petrochemical facility in the Seward area. He stated he would accept an invitation to attend a dinner meeting with DOW/Shell representatives in Anchorage on Saturday, March 28. D. In answey to a question from O'Brien, City Manager spoke on the negotiations with VECO regarding the shipyard development at 4th of July Creek. He stated there were difficulties due to City Charter provisions which would have to be addressed in near future. XIII. COUNCIL DISCUSSION: ------------------ A. Letter dated March 18, 1981, as submitted by Councilmember Soriano to the National Weather Bureau regarding the inaccuracy of Resurrection Bay weather forecasts, was noted. Soriano, with Council consent, requested that the letter be sent on behalf of the Council. B. Gillespie and Soriano expressed their appreciation to the administration for the work they have done on the various City projects. I C. In answer to a question from O'Brien, City Manager spoke on the benefits Seward would realize because of its selection as the export site for the State's grain. D. O'Brien stated the Council should take a position on the planning and zoning ordinance as introduced by Mayor Thompson before the Kenai Peninsula Borough. City Manager suggested any action be postponed until the April 13 meeting in order to allow him to report on the March 31 meeting, to be attended by representatives of all the first class cities in the Borough. E. O'Brien referred to an AML Legislative Bulletin regarding Senate Bill 125 (Revenue Sharing and Municipal Assistance). He stated the article reported that the Alaska Conference of Mayors, the City of Petersburg and the City and Borough of Juneau had passed resolutions pledging tax relief if the State passed the bill. O'Brien recommended the Seward Council follow suit, in an effort to convince the Legislature that the cities were sincere in passing the money on to the citizens in the form of tax relief. Gillespie stated each tax relief measure presented to the Legislature should be thoroughly reviewed because all were not equitable to the smaller communities in the State and those cities like Seward who had been fiscally responsible and kept the tax rate at a low level. Following discussion, O'Brien requested the Clerk obtain copies of the resolutions sited in the AML bulletin. I F. Gillespie referred to a letter he had received from Robert Penney of the Anchorage Chamber of Commerce, requesting support for use of the State's surplus oil revenues for the development of renewable energy sources. , (:: ~ PAGE 202 REGULAR MEETING - MARCH 23, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) G. Gillespie referenced a letter he had received from the Municipality of Anchorage, requesting Seward's participation in a railbelt conference. Following discussion, Gillespie, with Council consent, requested that the City Manager inform the Anchorage representatives that Seward was interested in participating in such a conference. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on public meetings to be held in the vicinity by DOW/Shell representatives regarding a proposed petrochemical industry for the State. Further, Valdatta stated the Council should commend Frank Jones of the Alaska Railroad for his role in supporting Seward as the export site for Alaskan products. In response to a question from Valdatta, Administrative Assistant spoke on the polish fishing fleet. xv. ADJOURNMENT: was adjourned at 9:33 p.m. i ~..r ;:~i1 C' '. "i'c 1\ r ltY.,-.qri,l. J " , ,.; \S',. '.;'. .' ,,' c;.,\>civ "11'( 'OF"j,,\.~~, . rrrrr;; ----------------------------------------------------------------------- PAGE 202 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 I. CALL TO ORDER: The April 13, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien, Soriano and Swartz Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. BOARD OF ADJUSTMENT HEARING: ORIGINAL TOWNSITE: A. The Seward City Council convened as the Board of Adjustment to hear the appeal of National Bank of Alaska (NBA) from the Seward Advisory Planning and Zoning Commission's action of November 19, 1980, to deny the variance request for Lots 15-18, Block 28, Original Townsite. The variance was requested in order to replat the four adjacent 30 by 100 foot lots into one parcel containing 4,500 square feet and another containing 7,500 square feet. City Attorney noted the items which should appear as part of the record on the appeal as follows: September 19, 1980, letter from Kenai Peninsula Borough Senior Planner Labahn to Mr. Harry Lee (representing NBA) relative to the requested variance I I I PAGE 205 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 VI. APPROVAL OF CONSENT CALENDAR AND REGULAR 11EETING AGENDA: (cont'd) City Manager requested that the following items be deleted from the regular meeting agenda: X. Ordinances and Resolutions: A. Ordinances for Introduction: 1. Proposed Ordinance No. 495, establishing sewer rates - (Administrative Assistant gave a verbal report on the draft sewer ordinance as required by EPA in conjunction with the City's new sewage treatment plant. He stated the document should be ready for Council review on April 27.) C. Resolutions: 2. Proposed Resolution No. 81-7 regarding funding for Seward High School students to travel to Obihiro, Japan - (City Manager stated there was a legal problem inherent with binding future Council's to budget expenditures and, therefore, requested the proposed resolution be deleted from the a~enda.) Following discussion, it was moved by Soriano, seconded by Swartz, and unanimously carried by all those ~resent to aryprove the regular meeting agenda and consent calendar as amended and the following actions were taken: C ATTORNEY: 1. March 16, 1981, bill from Hughes, Thorsness, Gantz, Powell and Brundin in the amount of $7,635.40, for legal services rendered in February 1981, was approved for raJ~ent and filed. ABC B: 2. Vice Mayor Gillespie's signature was confirmed on the a~plication received March 23, 1981, from the Alcoholic Beverage Control Board, requesting a restaurant designation for the Mini Mall, allowing persons under the age of 19 to enter on the premises for purposes of dining or emuloyment. ABC B: 3. April 2, 1981, notice from the Alcoholic Beverage Control Board noticing of application for the transfer of liquor license for the Palace Saloon & Hotel from Seward Longshore- men's Benevolent Association to Chuck Roberson, was filed without objection. FIRE DEPT: 4. March 25, 1981, letter from State Forester Theodore Smith noticing of Rural Community Fire Protection Program grant award in the amount of $5,l8l, to the Seward Fire Department, was noted for information and filed. PKS & REC: 5. April 6, 1981, letter from U.S. Army Reserves PIt. Sgt. Jack Dyer regarding the storage of heavy equipment in Seward was noted for information and filed. 4TH OF JULY CREEK AREA: 6. March 9, 1981, Invoice No. 051075-9 as submitted by R & M Consultants, Inc., in the amount of $54,446.61 for work performed on the Nash Road Extension Survey, design and construction management, was approved for payment and filed. 4TH OF JULY CREEK AREA: 7. March 24, 1981, Invoice No.5 as submitted by Century- Quadra for work performed on the 4th of July Creek marine industrial park project from December 22, 1980, through March 15, 1981, in the amount of $59,866.80, was approved for payment and filed. 8. "Progress Estimate 1t5 - Final - Nash Road Extension, Phase I Clearing" received April 13, 1981, from Metco, Inc., in the amount of $70,387, was approved, for payment and filed. 4TH OF JULY CREEK AREA: (, ! ~ :'~ PAGE 206 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 VII. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of April 7, 1981. VIII. PUBLIC HEARINGS: None IX. CITIZENS' DISCUSSION: A. Bill Vincent, representing the Seward Softball Association, appeared from the audience and spoke in support of the City funding the construction of additional softball fields and maintaining the facilities. Donna Limbean and Lanny Duncan also appeared from the audience and voiced support of Vincent's remarks. B. Paul Paquette appeared from the audience and stated that rumor had been circulating that the City was planning to disband the Recreation Department in the coming year's budget. Paquette voiced support of the City recreation function and its continuance. LOC ORGS: C. It was noted that a public meeting had been held on Monday, April 6, at which time the future funding and operation of the Seward Teen Center had been discussed. City Manager noted no action had been taken at that time. He stated Kathleen Putman, Director of the Center, and Dick Rowland, legal counsel for North Pacific Rim, a sponsor of the Center, were present in the audience to answer any Council questions. Rowland stated federal funds were available to operate the center through the end of the Federal government's fiscal year (September 30). He commented that the Center planned a two-month shut-down sometime during the summer months. Dr. Douglas Spanier, Director of the Seward Life Action Council,(SLAC) appeared from the audience and distributed a letter dated April 13, 1981, which presented a proposal for SLAC to assume administration of the Teen Center operation. City Manager stated an alternative operation and funding proposal would be presented later in the evening when he presented the City budget proposal for fiscal year 1981-82. X. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions:' WATERFRONT TRACTS/ RES: 1. Copies being made available to the public, Hugli noted by title only proposed resolution providing for the lease of the "old depot" and the preferential use of the 4th Avenue 'Dock by the State of Alaska ferry system, entitled: A Resolution Providing for the Disposal by Lease of the "Old Depot" Building and Preferential Use of the 4th Avenue Dock by the State Ferry System City Manager reported the proposed lease cited a rate increase of $3,000 over the previous year's agreement and commented that, if approved, the lease would extend from July 1, 1981, through June 30, 1982. Gillespie requested that in the drafting of next year's lease document a consideration be made to include the schedule of the ferry system's use of the dock facilities in order to enhance use of the dock by other entities. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-6. ORIGINAL TOWNSITE: (cont'd) I I I PAGE 203 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 IV. BOARD OF ADJUSTMENT HEARING: (cont'd) Memorandum (Staff Report) dated November 19, 1980, from KPB Senior Planner Labahn to the Seward Advisory Planning and Zoning Commission, establish- ing for the record the facts related to the variance application, the provisions of the Seward Zoning Ordinance, a staff analysis of the application, and a con- cluding recommendation to deny the variance request Minute Order of a portion of the Seward Planning and Zoning Commission's meeting of November 19, 1980, at which time the Commission held a public hearing on the variance application and voted to deny NBA's request March 19, 1981, letter from NBA Vice President Sieberts, requesting an opportunity to appeal the November 19, 1980, decision of the Planning Commission denying the variance request "Seward City Council Notice of Board of Adjustment Meeting - April 13, 1981" as posted in three public places anct published two times in the local newspaper April 3, 1981, list of surrounding property owners within 300 feet of the subject parcel to which were sent certified notices of the April 13, 1981, Board of Adjustment meeting It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to set the record for the Board of Adjust~ent as read by the City Attorney. Larry Werner, legal counsel for National Bank of Alaska, appeared from the audience and spoke in support of the Board reversing the Seward Planning Commission's decision to deny the variance request. Werner stated that although the southernmost 3,000 square foot lot, on which a small bungalow was situated, could be sold at the present time, it was the desire of the bank to increase the lot size to y,SOO square feet in order to make it a more attractive parcel. Administrative Assistant commented on NBA's need to apply for a variance to create a 4,500 square foot lot because the Seward Urban District Zoning Code (Kenai Peninsula Boroueh Ordinance No. 78-26) did not allow the platting or the development of any lots within the particular zone of less than 6,000 square feet. He stated NBA was appealing the Planning Commission's decision based upon provisions contained in Sec. 21.78.230 of the Zoning Code which states in part: "Each lot and each lot group in common ownership of 4,500 square feet or ereater of record as of December 5, 1978, may be developed in conformity with all other provisions of the Seward Urban District zoning code even though such lot or lot group in common ownership fails to meet minimum area or width requirements," Administrative Assistant stated that ~,:E,A ap;:;areotly had interpreted this section to mean that a replat was in order since NBA had in December of 1978 o,vned all the acjacent lots which were the subject of the variance request. Eowever, Sec. 7.1.78.030 of the Zoning Code was referenced which defined "lot group in COIlunon ownership" as: PAGE 204 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 IV. BOARD OF ADJUSTMENT HEARING: (cont'd) ORIGINAL TOWNSITE: (cont'd) "two or more parcels of land, each of which was recorded by the borough assessor on or before December 5, 1978, as separate tax parcels and which are contiguous and owned by the same person, partnership, or corporation" Administrative Assistant reported that the four adjacent lots owned by NBA were listed on the borough assessor's records as one tax parcel and, therefore, the subject lots did not qualify for replatting into parcels of less than 6,000 square feet according to the Zoning Code. City Attorney spoke and answered questions on the tax parcel designation requirement and stated that although the Zoning Code grandfathered in those parcels of under 6,000 square feet which existed prior to December 1978, specific provisions had been instituted to prevent the development of future lots consisting of less than 6,000 square feet. Kenai Peninsula Borough Senior Planner Jeff Labahn appeared and spoke on the contents of his memorandum to the Planning and Zoning Commission dated November 19, 1980. Labahn reviewed for the benefit of the Council the conditions which must be met in the granting of a variance, pursuant to Sec. 21.78.320 of the Zoning Ordinance. Following discussion, City Attorney stated if the Council would contact him within the next week regarding their position on the variance, he would draft a Memorandum of Decision for their review and the Decision could be placed on the April 27 agenda for approval. V. APPROVAL OF MINUTES: carried meeting It was moved by Swartz, seconded by Campbell and unanimously by all those present to approve the March 23, 1981, regular minutes as written. VI. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager noted an amended consent calendar had been distributed to the Council and made available to the public. He requested that the following addition be made to the amended calendar: 8. "Progress Estimate 1/5 - Final - Nash Road Extension, Phase I Clearing" received April 13, 1981, from Metco, Inc. - approve for payment and file City Manager requested that the following items be added to the regular meeting agenda: IX. Citizens' Discussion: (With prior notice only) B. Paul Paquette C. Seward Teen Center XII. New Business: A. March 30, 1981, letter from Graham & Dunn, legal counsel for Seward Fisheries, requesting permission to sublease Lots 11, 12 and 15, Seward Industrial Park B. March 30, 1981, letter from R & M Consultants, Inc., proposing to extend the firm's current contract with the City for engineering services on the Nash Road Extension Project to include services during the construction phase of the road extension, with a proposal price not to exceed $l86,258.00 I I I PAGE 207 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 XI. UNFINISHED BUSINESS: None XII. NEW BUSINESS: SEWARD FISH: A. March 30, 1981, letter from Graham & Dunn, legal counsel for Seward Fisheries, requesting permission to sublease Lots 11, 12 and 15, Seward Industrial Park, was distributed to Council. City Attorney commented that the letter and attached "Consent" form which the firm had requested the City sign, was apparently predicated by the reorganization which was taking place due to financial difficulties. He confirmed that from a legal standpoint there was no objection to the City signing the requested consent form, approving of the sublease by New Seward, Inc. Gillespie questioned the procedure, stating he wanted to make sure that the collateral realized from the Seward parcels was not used to expand facilities elsewhere, as had apparently happened in the past. Following discussion, Donna Limbean, employed by Seward Fisheries, appeared from the audience and stated if Council wanted to postpone action on the letter, she would try to contact Don Giles, Area Manager for Seward Fisheries, and see if he could come to the meeting and explain the situation. Hugli, with Council consent, postponed further discussion and action on the issue until later in the evening. (See page 2OB) 4TH OF CREEK AREA: JULY B. March 30, 1981, letter from R & M Consultants, Inc., proposing to extend the firm's current contract with the City for engineering services on the Nash Road Extension Project to include services during the construction phase of the road extension, with a proposal price not to exceed $186,258.00, was distributed to Council. City Manager spoke on the proposal and recommended Council approval. In answer to a question from Cripps, City Manager stated no other bids had been solicited or received for the engineering services. Gillespie explained that it was standard procedure to continue with the same engineering firm for such a project if previous work proved satisfactory. He commented that such a project was bid in stages in order to insure satisfactory results and stated to change engineering firms at this time would be extremely expensive. In answer to a question from Campbell, City Engineer Tom Small appeared from the audience and confirmed that the proposal, if accepted, would provide the engineering services through completion of the Nash Road extension project. Following discussion, it was moved by Campbell, seconded by Soriano and carried as follows to approve the contract with R & M Consultants for a price not to exceed $186,258: Ayes: Campbell, Gillespie, Hugli, O'Brien, Soriano and Swartz Cripps None Noes: Absent: XII I. CITY MANAGER REPORTS: BUDGET: A. City Manager distributed the first draft budget proposal for fiscal year 1981-82. He noted the balanced budget total of $2,475,232 represented an 8 mil tax levy--as compared to a 12.5 mil rate the previous year. He reported the initial draft contained a Council contingency of $291,065 and spoke on the various additional programs which were proposed within the draft budget: transfer of the administrative assistant to designation as assistant city manager, employment of an administrative assistant who would be trained to assume the duties as port director, word processing equipment for the clerk's office, addition of one employee for the finance department, discontinuance of the Drivers' Education Program as funded by the State and operated by the police department (phasing out two employees), adding one jailer for the police department, increase in the public works department budget for operating expenses with the plan to construct new ball diamonds, reorganization of the recreation department to include operation of the teen center. City Manager also spoke briefly on the proposed funding of various public service organizations such as the Library, SLAC, Seward Senior Citizens, Seward General Hospital and the Public Health Nurse. Joan Kilcup, Doug Spanier and Bruce Sieminski appeared from the audience, made various comments and asked questions on the proposed budget. .-: ~__ I WATERFRONT TRACTS: PLANNING & ZONING: SEWARD FISHERIES: (cont'd) :PAGE 208 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 XIII. CITY MANAGER REPORTS: (cont'd) B. City Manager gave a report on the 7th Avenue beach shoreline erosion problem and measures being investigated to halt the erosion. He stated the State Department of Environmental Conservation had to date been unresponsive to the City's request for funding to control the erosion. In answer to a question from Cripps, City Engineer Small appeared from the audience and stated that the City was currently taking action to try to slow down the erosion but investigation was continuing to find ways to stop the erosion. RECESS: The meeting was recessed at 9:46 p.m.; reconvened at 9:55 p.m. C. Kenai Peninsula Borough proposed Ordinance No. 81-2, "Delegating Municipal Planning and Zoning Powers to the Cities of the Borough" was noted. April 1, 1981, letterc'from Kenai City Clerk Whelan, noticing of action taken at the March 31 meeting of the City Managers and Mayors of the Borough, and April 3, 1981, letter from Borough Mayor Thompson, referencing the March 31 meeting and the proposed ordinance, were noted. City Manager reported another meeting of the Managers and Mayors of cities within the Borough was scheduled for April 23 in Seward. Borough representative Schaefermeyer asked for Council direction on the ordinance, stating a vote for enactment would be considered at the Borough Assembly meeting of April 21 and he expected that the ordinance would be enacted. Schaefermeyer stated that most of the Borough planning staff's time was devoted to subdivisions, many of which were in the Kenai-Soldotna area and outside the cities' boundaries. He stated under the terms of the proposed ordinance the Borough would continue to provide that function. Borough Senior Planner Labahn appeared and stated that the position of the Borough administration at the present time appeared to be one of providing planning assistance only at the request of the city administration. City Attorney referred to a letter dated April 6, 1981, from Richard Gantz to City Manager Johnson, and quoted a portion of the letter which explained the Borough's implied intent, the relative State Statutes and concluded that: ". . . proposed Kenai Penirisula Borough Ordinance 81-2 exceeds the power to delegate granted by state statute in that it- essentially abdicates the borough's responsibility to plan and zone on an area wide basis; in that it attempts a delegation which may not be made without the consent of the delegee and in that it attempts a delegation without providing funds to implement that delegation." City Manager stated he would keep Council informed of further developments and discussions which took place at the April 23 meeting. XII. NEW BUSINESS: (cont'd) A. (cont'd) Don Giles, Area Manager for Seward Fisheries, appeared from the audience and explained the need for Seward Fisheries to sublease Lots 11, 12 and 15, Seward Industrial Park. He stated Seward Fisheries was a joint venture of New England Fish Company (NEFCO) and Icicle Seafoods. Recently NEFCO had filed bankruptcy which made it necessary to refinance the company's holdings in Seward Fisheries. He commented a refinancing package had been proposed whereby the Alaska Resource Development Council (ARC) and Standard Oil of Ohio (SOHIO) would provide the equity financing for Seward Fisheries, with a provision that Icicle had the option to repurchase the interest over a period of years. Giles stated that ARC and SOHIO had no management rights under the refinancing agreement and there were no anticipated changes in operations of the facilities. Giles urged Council to approve the sublease request and stated that timing was critical in order that the loan agreement could be consummated. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to consent to the sublease of Lots 11, 12 and 15, Seward Industrial Park. PAGE 209 REGULAR MEETING - APRIL 13, 1981 VOLUME 19 XIII. CITY MANAGER REPORTS: (cont'd) D. City Manager reported that negotiations the previous week between the City and VECO had apparently resolved the final issues between the two parties and anticipated a draft document would be presented to Council at the April 27 meeting. I E. City Manager reminded Council that Mayor Hugli would be the host of the April 23 meeting of City Managers and Mayors throughout the Borough regarding the Borough's proposed transfer of planning and zoning powers to the local governments. F. City Manager reported he would be traveling to Juneau for meetings with various State officials on Thursday and Friday, April 16 and 17. XIV. COUNCIL DISCUSSION: A. March 27, 1981, letter from the National Weather Service, responding to Capt. Soriano's letter of March 24 regarding inaccurate weather forecasts for Resurrection Bay, was noted. Soriano stated he would respond to the letter. ALASKA, ST OF: B. March 25, 1981, letter from the City of Fairbanks Mayor Ruth Burnett requesting support of Fairbanks Resolution No. 1914, "A Resolution Urging the State of Alaska to Analyze and Investigate the Feasibility of the Bulk Sale of State Royalty Oil to Intrastate Oil Refineries at Pre-OPEC Price Levels", was noted. City Manager urged Council support of the resolution. Hugli, with Council consent, indicated Seward's support of Fairbanks Resolution No. 1914. I C. March 27, 1981, letter from Governor Hammond, requesting support for SJR 4, "Proposing an amendment to the Constitution of the State of Alaska relating to limitations in appropriations of State money", was noted. There was no Council discussion of the letter. D. Swartz urged the Seward Council and administration to use the expertise of former State House District 5 representative Margaret Branson as much as possible in the City's dealings with Juneau. E. Campbell stated the City might be wise to investigate the retention of an expert in the field of marketing and transporting coal. F. In response to a question from Gillespie, City Manager gave a brief report on the most recent discussions between Usibelli and Pullman-Torkelson regarding coal for export. G. City Clerk gave a report on the Alaska Association of Municipal Clerks' annual spring seminar which she attended in Fairbanks the previous week. H. City Manager reported the administration had initiated the issuance of citations on junked and abandoned vehicles throughout the city. I. City Manager reported the administration was compiling a proposal for the repaving of 4th Avenue and the repair of the existing sidewalks downtown. I XV. CITIZENS' DISCUSSION: A. Bruce Sieminski appeared from the audience and spoke on the need to plan for the future, especially in the area of energy. XVI. ADJOURNMENT: L'..-' ,-(YIJ.J.i.~.j'':/'''~0'- "C,.::'fl1e-Jii~ting was adjourned at 11:03 p,m. . "', ~' ' _:':; _, .,~ 1,\ :' '~~&mi ~;~~;<' ,.. ~"Jr1- Raymond L. Hugli Mayor '.lln PAGE 210 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 1. CALL TO ORDER: The April 27, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: flag. Councilmember O'Brien led the pledge of allegiance to the III. ROLL CALL: Present were: Mayor Hugli; Councilmembers *Campbell, Gillespie, O'Brien, Soriano and Swartz (Absent, with Council consent, was Cripps) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting minutes of April 13, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following item be added to the regular meeting agenda: VIII. Citizens' Discussion: B. Howard Holtan of Quadra Engineering - Terminal Addition It was moved by Soriano, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: SEWAGE TREATMENT: 1. March 31, 1981, Invoice #01781 from Arctic Environmental Engineers in the amount of $3,405.45 for February professional services rendered on the sewage treatment project, Step 3, was approved for payment and filed. SEWAGE TREATMENT: 2. March 31, 1981 Invoice #02281 from Arctic Environmental Engineers in the amount of $2,673.36 for February professional services rendered on the Alaska Skill Center sewer line project, was approved for payment and filed. SEWAGE TREATMENT: 3. April 10, 1981, Periodic Estimate for Partial Payment No. 7 from Brown & Associates in the amount of $239,971.95 for professional services rendered from February 7 to April 9, 1981, on the sewage treatment project, was approved for payment and filed. ELECTRIC DEFT: 4. March 12, 1981, Invoice #50646 from Westinghouse Electric Corporation in the amount of $4,126.75 for professional services rendered relative to the Seward Electric System improvement project, substation start-up, was approved for payment and filed. K P B: 5. April 14, 1981, letter from the State Department of Trans- portation regarding the Kenai Regional Transportation Study, was noted for information only and filed. PAGE 211 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 VII. PUBLIC HEARINGS: (Taken out of order by Mayor, with Council consent) I CLIFF ADDN: B. Public hearing was opened on the City's proposal to purchase privately-owned Lots 11, 12 and 13, Block 8, Cliff Addition, for future expansion of Second Avenue and public notice as posted and published two times in the local newspaper was noted. City Manager commented that the three adjacent lots included the parcel where the old railroad car was located, near the lagoon and on the west side of Second Avenue. He confirmed he had received unofficial authorization from the Council to enter into an earnest money agreement for purchase of the three lots at a price of $5,300. No one appeared from the audience in order to be heard and the public hearing was closed. City Manager stated a resolution approving the land purchase would be presented for Council action on May 11. *COUNCILMEMBER CAMPBELL ARRIVED AT THIS TIME AND HEREAFTER TOOK PART IN THE MEETING. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of April 21, 1981. VII. PUBLIC HEARINGS: (cont'd) BUDGET: A. Public hearing was opened on the proposed City budget for fiscal year 1981-82 and public notice as posted and published two times in the local newspaper was noted. City Manager distributed the newly-revised draft budget to Council and copies were made available to the public. He commented on the proposed 8 mil budget of $2,443,372 and reiterated the major changes over the previous year's budget as discussed at the April 13 meeting. No one appeared from the audience in order to be heard and the public hearing was closed. I VIII. CITIZENS' DISCUSSION: PKS & REC: A. Mike Meehan, City of Seward representative on the Iditarod National Trail Advisory Council, appeared from the audience and introduced audience members Dan Seavey, INTAC member as appointed by Borough Mayor Don Gilman, and Cary Brown, project leader with the Bureau of Land Management. Seavey stated Seward was once the southern terminus of the Iditarod Trail and a proposal had been submitted to the race committee to have the race commence in Seward the following year. Brown spoke on the plans for management of the 2,300 mile trail system with the recommendat.ion being submitted that an interpretive center be established in Seward to disseminate information regarding the trail system. In answer to a question from Campbell, Brown stated the draft management plan was available by contacting Seavey or Meehan and any comments on the document should be forwarded to the BLM office in the near future. Gillespie thanked Brown for his presentation and, with Council consent, stated the City Council supported the concept as voiced by Brown. I TERMINAL ADDN: B. Howard Holtan of Quadra Engineering appeared from the audience and distributed a document entitled "Conceptual Planning and Development Strategy for the Terminal Addition Property, Seward, Alaska; April 14, 1981". Holtan displayed a conceptual drawing of the proposed resubdivision of the Terminal Addition which included 128 single-family residential lots ranging in size from one-quarter to one-half acre, and 129 multi-family parcels in the southern portion of the development. The drawing indicated public improvements, utilities and greenbelt areas. Holtan referred to the narrative which compared the development costs of three alternative development schemes, with the lowest develop- ment cost of $11,800 per unit attributed to the alternative which con- tained a mix of single-family and multi-family units. Holtan confirmed \ ' " ~ PAGE 212 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (cont'd) TERMINAL ADDN: (cont'd) that following his presentation at the Seward Advisory Planning and Zoning Commission meeting of April 15, the Commission had voted to support the proposed development plan of a mix of R-l and R-3 parcels with restrictive covenants being established for the subdivision. Following discussion, Campbell, with Council consent, supported the development alternative as displayed by Holtan and supported by the Planning Commission and directed the administration to proceed with platting and zoning of the subdivision as well as the preparation of covenants and a financing package for the development. RECESS: The meeting was recessed at 8:50 p.m.; reconvened at 9:00 p.m. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 4TH OF CREEK AREA/ RES: JULY 1. Copies being made available to the public, Hugli noted by title only proposed resolution regarding funding for the 4th of July Creek port facility, entitled: A Resolution Accepting Amendment No. One to the Transfer Agreement for the Seward Port Facility from the State of Alaska Department of Transportation and Public Facilities City Manager stated the resolution, if approved, would authorize the City to sign the necessary documents relative to the transfer of $4,500,000 in State bond monies to the City for development of the 4th of July Creek port facility. It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-7. LEG REPS/ 2. Copies being made available to the public, Hugli noted RES: by title only proposed resolution regarding the sale of State royalty oil to intrastate refineries, entitled: A Resolution Urging the State of Alaska to Analyze and Investigate the Feasibility of the Bulk Sale of State Royalty Oil to Intrastate Oil Refineries at PreOPEC Price Levels City Manager reported the resolution was requested by the Council on April 13 in response to Fairbanks Mayor Ruth Burnett's letter of March 25, 1981, urging support of Fairbanks Resolution No. 1914. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-8. ORIGINAL TOWNSITE: I PAGE 213 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 X. UNFINISHED BUSINESS: A. City Attorney distributed the "Memorandum of Decision" of the Board of Adjustment following the Board's hearing on April 13, 1981, of the appeal of National Bank of Alaska from the Seward Advisory Planning and Zoning Commission's action to deny the variance application for Lots 15-18, Block 28, Original Townsite. City Attorney briefly reviewed the contents of the Memorandum. Gillespie voiced objection to the decision to uphold the Planning Commission's action, stating he felt NBA's application met the legal requirements for a variance. Following discussion, it was moved by Soriano, seconded by Campbell and carried as follows that the City Council, acting as the Board of Adjustment, deny the appeal of NBA for Lots 15-18, Block 28, Original Townsite: Ayes: Noes: Absent: Campbell, Hugli, O'Brien, Soriano and Swartz Gillespie Cripps X1. NEW BUSINESS: S G HOSPITAL: A. Campbell reported on a grant the Seward General Hospital had received the previous year to undertake various energy conservation measures related to the hospital operation. He stated part of energy conservation project involved a mini-hydro project connected with the City Marathon Water System. The project would, in essence, provide the hospital with free energy, reducing the monthly operating costs by approximately $6,000. Campbell stated the Hospital had $100,000 to allocate the project and last week the Alaska Energy Center, a non- profit corporation, had agreed to fund $500,000 for construction of the hydro-project. He reported that the engineering firms of Arctic Environmental Engineers and Ott Water Engineering had submitted proposals for the project but only Ott Water Engineering had past hydro experience as required by the Alaska Energy Center. Campbell stated the Energy Center had established a completion date of August 30, 1981, for the proj ect. I I City Manager stated the project involved the City water and electrical systems and, although he had some reservations about the administration of the project, he had come to the conclusion that the City should take over the administration because of the City systems involvement. However, he stated the hospital should be responsible for retaining the engineering firm. City Attorney noted Campbell had not arrived at the meeting in time to have this item added to the agenda and, pursuant to City Code provisions, no item could be acted upon, unless of an emergency nature, without having first appeared on the Council agenda. He suggested the Council could tentatively approve the project with a confirming vote to take place at the following meeting. Following discussion, it was moved by Swartz, seconded by Soriano and carried as follows that the City of Seward go forward with the hydro project in conjunction with Seward General Hospital, subject to confirmation at the next Council meeting: Ayes: Gillespie, Swartz None Campbell Cripps Hugli, O'Brien, Soriano and Noes: Abstain: Absent: It was moved by Gillespie, as follows to accept the proposal of Ott the engineering services for Phase I of seconded by Soriano and carried Water Engineering to provide the project at $32,000: Ayes: Gillespie, Hugli, O'Brien, Soriano and Swartz None Campbell Cripps Noes: Abstain: Absent: . , '1 ~ ,.! 'I PKS & REC: SEWAGE TRTMT: P & Z: C COUNCIL: BUDGET: 4TH OF CREEK AREA: PAGE 214 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: A. November 3, 1980, letter from the Department of the Army, requesting to lease approximately one-half acre of City land in the cemetery reserve and adjacent to the Air Force recreation camp, was noted. City Manager reported the Air Force recreation facilities encroached onto the City property and the Air Force proposed to lease the property rather than relocate their facilities. He spoke in support of the proposed lease at $100 per year and, there being no Council objection, stated a public hearing on the proposed lease would be scheduled for the Council meeting of May 11, 1981. B. April 21, 1981, letter from City Attorney Arvidson and attached draft sewer ordinance for the City of Seward, was noted. City Attorney spoke on his memo and the draft ordinance, stating the Environmental Protection Agency required that a sewer ordinance be instituted prior to operation of the new sewage treatment facility. He stated the draft ordinance was modeled after an EPA ordinance and specifically addressed policy matters. He commented that the actual user fees would be established by resolution at a later date. Following discussion, the draft ordinance was scheduled for further discussion and review at the regular meeting of May 11. C. Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer reported on the status of proposed Borough Ordinance No. 81-2, "Delegating Municipal Planning and Zoning Powers to the Cities of the Borough". He commented the ordinance had been referred to committee and no date had been set for the ordinance's return to the floor. Schaefermeyer reported, however, that the Borough Mayor was attempting to achieve the same ends as enactment of the ordinance by administrative fiat in his budget package by virtually eliminating the planning department. City Manager remarked that a meeting of the City Managers and Mayors within the Borough would be held the following day in Seward and the item was scheduled for discussion. Campbell urged the City to once again seek an Attorney General's opinion on the Borough Mayor's attempt to pass a Borough function onto first class cities without the corresponding monetary assistance. He remarked that the State Statutes required boroughs to provide the planning function on an area-wide basis and to develop a borough-wide comprehensive plan, and the Kenai Peninsula Borough was obviously in violation of State law by neglecting to provide these functions. D. City Manager reminded Council that the second regular meeting in May fell on the Memorial Day holiday and, with Council consent, recommended rescheduling of the meeting to Monday, May 18, 1981. E. City Manager gave a verbal report on various capital improve- ment projects underway. He referred to the draft budget for fiscal year 1981-82 and asked that if Council was anticipating approving his budget request for an administrative assistant, to later become the port director, that he be authorized to advertise and fill the position in advance of July 1; there were no objections voiced by Council to his request. JULY F. City Manager reported the City was anticipating a land swap with the Borough whereby the City could obtain approximately 160 acres of Borough-owned land in the 4th of July Creek area in exchange for approxi- mately 160 acres of City-owned land adjacent to the Seward landfill and 5 acres near the grade school and high school. He posted a map which designated the parcels under consideration. Following discussion, and there being no objections voiced, City Manager stated a public hearing on the proposed land exchange would be scheduled for the Council meeting of May 11, 1981. MARINA SUB: G. City Attorney reported that a request had been received from Alaska Marine and Equipment, leaseholder of Lot 7, Block 2, Marina Subdivision, to sublease the parcel to a third party. In response to the Clerk's letter requesting the name of the proposed subleasee, Alaska Marine had stated that they were negotiating with two parties and would like to receive lease assignment approval in advance of finalization of negotiations with the two parties. Following discussion, City Attorney recommended Alaska Marine be required to submit the names of both parties which were under consideration and Council could then review the proposed tenants and approve the assignment at that time. Hugli, with Council consent, directed the Attorney to forward a letter to Alaska Marine, requesting the names of the two parties under consideration. ---- , \ PAGE 215 REGULAR MEETING - APRIL 27, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: A. Campbell gave a brief verbal report on the railbelt conference he had attended in Anchorage that afternoon. He stated that although the conference appeared to be a power play by the larger municipalities, Seward had to become an active memeber of the group to protect its own interests. I XIV. CITIZENS' DISCUSSION: A. Don Hansen appeared from the audience and reported that he had also attended the railbelt conference. He stated the conference had supported State acquisition of the Alaska Railroad from the Federal government and asked if the City had taken an official position on the issue. Campbell stated the ownership transfer would no doubt occur even without State support. Gillespie urged support of a feasibility study of the transfer of ownership prior to any formal position being adopted. XV. ADJOURNMENT: /' \ \ adjourned at 10:34 p.m. ) -(~ Raymonct~L; Mayor (l / I' 1t'1 (/ Hugli I L ) I ------------------------------------------------------------------------- PAGE 215 REGULAR MEETING - MAY 11, 1981 VOLUME 19 1. CALL TO ORDER: The May 11, 1981, regular meeting of the Seward City Council was called to order at 7:33 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, O'Brien, Soriano and Swartz (Absent, with Council consent, was Gillespie) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley I IV. PROCLAMATIONS: The following proclamations were submitted, read in full by the City Clerk and so proclaimed by the Mayor: May - Cleaner Seward Month May 23 - Poppy Day May 10-16 - Municipal Clerk's Week - 1,1'\ t ..1 PAGE 216 REGULAR MEETING - MAY 11, 1981 VOLUME 19 V. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting minutes of April 27, 1981, as written. VI. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following item be deleted from the regular meeting agenda and scheduled for the May 18 agenda: XII. New Business: B. Contract with Century-Quadra for the Fourth of July Creek port facility, Phase II A, engineering and design City Clerk requested the following item be added to the regular meeting agenda: IX. Citizens' Discussion: (With prior notice only) C. Virginia Randazzo - transient merchant ordinance Hugli added the following item to the regular meeting agenda: XIV. Council Discussion: A. Iditarod Race Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: ELECTRIC DEPT: 1. April 24, 1981, Interim Billing from W.E. Knox, Jr. in the amount of $4,800 for repair of the electric system generators, was approved for payment and filed. C ATTORNEY: 2. April 20, 1981, bill from Hughes, Thorsness, Gantz, Powell & Brundin in the amount of $13,631.54 for legal services rendered in March 1981, was approved for payment and filed. 4TH OF JULY CREEK AREA: 3. April 20, 1981, bill from Alaska Land Surveys in the amount of $4,900 for work related to the Fourth of July Creek Industrial Park development, boundary clearing, was approved for payment and filed. ELECTRIC DEPT: 4. April 24, 1981, invoice from Westinghouse Electric in the amount of $10,756.02 for services rendered relative to the Electric System improvement project, was approved for payment and filed. TERMINAL ADDN: 5. April 15, 1981, Invoice No.3 from Century-Quadra in the amount of $18,561.39 for work performed on the Terminal Addition resubdivision project, was approved for payment and filed. LOC ORGS: 6. "Application for Permit for Authorized Games of Chance and Skill" as submitted by the Mt. Marathon Native Association for Calendar Year 1981, was approved for the Mayor's signature. 4TH OF JULY CREEK AREA: 7. "Easement" granted the City of Seward by Sea-Forth Properties for a right-of-way in the Fourth of July Creek area, was noted and the City Manager was authorized to proceed with procurement of the easement. PAGE 217 REGULAR MEETING - MAY 11, 1981 VOLUME 19 VII. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of May 5, 1981. VIII. PUBLIC HEARINGS: BUDGET: A. The following items were noted relative to the proposed City budget for Fiscal year 1981-82: I "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions Proposed City budget dated May 7, 1981 Copies of the proposed $2,501,787, 8 mil budget were made available to the public. City Manager reported there were no major changes in the budget draft since the last hearing. Public hearing was opened on the budget; no one appeared from the audience in order to be heard and the public hearing was closed. 4TH OF CREEK AREA: JULY B. Proposed "Lease Agreement" with VECO Offshore Inc., for property in the Fourth of July Creek Marine Industrial Park, was noted and made available to the public. "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions, was also noted. "Exhibit 'A''', attachment to the Agreement, was distributed to Council and made available to the public. City Manager commented that the Agreement represented the culmination of many months of negotiations between the parties for VECO's lease of approximately 61 acres in the Fourth of July Creek area for construction of a vessel repair and ship-building facility. City Attorney answered questions on the development and monetary expenditure schedule noted as "Exhibit 'B'" of the Lease. In answer to a question from O'Brien, City Attorney confirmed a City Charter change would be submitted to the electorate in October to allow for the proposed dock license with VECO. Public hearing was opened on the proposed Lease Agreement; no one appeared from the audience in order to be heard and the public hearing was closed. City Attorney confirmed a resolution approving the Agreement would be submitted to Council in the next few weeks. I PKS & REC: C. Proposed "Lease for Real Property" with the U.S. Army Corps of Engineers (Air Force), for a strip of land 25 by 980 feet within U.S. Survey No. 1759, abutting the Seward Recreation Annex, was noted and made available to the public. "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions, was also noted. City Manager commented that the Air Force had been encroaching on the strip of City land adjacent to the cemetery reserve for a number of years and the proposed Lease would provide for the Air Force to lease the land. Public hearing was opened on the proposed Lease; no one appeared from the audience in order to be heard and the public hearing was closed. 4TH OF CREEK AREA: JULY D. Public hearing was opened on the proposal to exchange approximately 5 acres of City land at the schools site and 160 acres adjacent to the land fill for 160 acres of Borough land in the Fourth of July Creek area and "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions, was noted. City Manager referred to a posted map as prepared by Century- Quadra which designated the 5 separate parcels within the Fourth of July Creek area proposed to be acquired by the City in the land exchange. He confirmed the Borough appeared amenable to the exchange and the matter would come before the Assembly on May 19. No one appeared from the audience at this time in order to be heard and the public hearing was closed. I , '1 PAGE 218 REGULAR MEETING - MAY 11, 1981 VOLUME 19 IX. CITIZENS' DISCUSSION: (With prior notice only) A. It was noted that Dr. Gregory Higgins, scheduled to appear at this time, was not present in the audience. Speaking on Dr. Higgins' behalf, Campbell stated that many prominent geographic features surrounding the Seward area had not been officially named and Higgins was interested in pursuing th'e naming process if Council had no objection. Swartz, with Council consent, voiced support of Higgins proceeding with the official naming process of the local features. AK RAILROAD: B. City Manager introduced audience members Chris Sauer, Manager of Sales, and Jeff Lowenfels, legal counsel, for Pullman-Torkelson Company. He commented the City and Pullman-Torkelson had arrived at what was considered a viable solution for the export of the State's coal with Seward as the tidewater export site. Sauer spoke on the history of the Pullman-Torkelson Company, part of the Wheelabrator-Frye conglomerate, and its specific long-term involvement in the field of minerals handling and processing. He reported the company currently operated two coal facilities and last year interest had developed regarding entry into the Alaskan market. Sauer stated representatives of the company had traveled to Alaska to make an objective selection between the Ports of Anchorage, Whittier and Seward and had decided that if they were to enter the coal market in Alaska, Seward would be the selected port site for location of their coal facility. Sauer explained Pullman-Torkelson's proposal to construct an interim coal handling facility near the Railroad dock which would be completed within 24 months and could accommodate one to three million tons of coal a year. Then, as the coal market developed, the company would construct a world-class facility at the Fourth of July Creek area, to be completed in approximately ten years, with the capacity to handle ten million tons of coal on a yearly basis. Sauer spoke on the employment opportunities related to the interim facility and the world-class facility and answered questions on the environmental safeguards to be built into both facilities. Sauer stated the facility proposed by Pullman-Torkelson differed from proposals made by other companies at other sites within the State in that the Seward facility would be designed, built, operated and wholly owned by Pullman-Torkelson with all financing to be handled by the private sector. City Manager referred to a posted map indicating the proposed site for the world-class facility at the Fourth of July Creek area. City Attorney spoke and answered questions on the terms of the proposed lease agreement. In answer to a question from Swartz, Sauer confirmed his company's commitment to Seward, stating no investment would be made in an additional State port. Sauer explained the company's name change from Pullman-Torkelson to Torkelson-Kellogg, Inc. In response to various audience questions, Sauer stated negotiations were continuing with The Alaska Railroad and Usibeli regarding the coal shipments. Sauer also confirmed that the proposed interim coal facility would be located adjacent to the grain elevator and the two facilities would act to complement each other. City Manager voiced support of the proposal as submitted by Torkelson-Kellogg and urged Council to approve proposed Resolution No. 81-9 on the evening's agenda. PAGE 219 REGULAR MEETING - MAY 11, 1981 VOLUME 19 X. ORDINANCES AND RESOLUTIONS: (Taken out of order by Mayor, with Council consent) C. Resolutions: AK RAILROAD/ 1. Proposed Resolution regarding the disposal of certain RES: public lands by lease to Torkelson-Kellogg Inc., was distributed to the Council and made available to the public, entitled: I A Resolution of the City of Seward, Alaska, Declaring that an Appraisal and Public Bid Procedure for the Disposition of Certain Interests in Land is Inappropriate and Not in the Best Interest of the City of Seward City Attorney read the resolution in full. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-9. RECESS: The meeting was recessed at 8:37 p.m.; reconvened at 8:52 p.m. IX. CITIZENS' DISCUSSION: (With prior notice only) (cont'd) I C. Virginia Randazzo appeared from the audience and voiced objection to the City's transient merchant ordinance, stating the ordinance's requirement for a $50 a day license fee was prohibitive and possibly unconstitutional. Randazzo stated the $5,000 faithful performance bond was acceptable and should act to protect the City from fraudulent business practices. She sited various court cases and one in particular where an ordinance requiring a $10 a day license fee had been ruled unconstitutional. Randazzo stated that although the local ordinance may go unchallenged due to the expense involved in a court case, she felt the City should revise the ordinance by making it less restrictive. City Attorney stated he doubted if the local ordinance was unconstitutional and that the transient vendor had the option to pay a $2,000 annual fee instead of the $50 a day charge. Following discussion, Cripps, with Council consent, requested the item be continued to the May 18 meeting in order to allow Council the opportunity to become familiar with the Code section on transient merchants. I D. Dale Lindsey appeared from the audience and spoke on a recent meeting the Chamber of Commerce had with representatives of the U.S. Park Service, the U.S. Forest Service, the State Department of Transportation and other organizations concerned with Resurrection River Road and access to Exit Glacier. Lindsey confirmed the pioneer access road was complete from Mile 4 to 8.5; however, it was necessary to install a bridge to cross to the south side of the river and for this test holes needed to be drilled and the bridge required certification by an engineer. He asked the City to assist in the project by being the sponsoring agency for the completion of Resurrection River Road. City Manager spoke on the City and Borough's lengthy involvement in the road but pointed out the City's constraints due to the fact that the road was located outside the City limits. Further, he stated a May 20 deadline had been established by Fish and Game to complete the test holes and that deadline could not be met. Following discussion, City Manager stated the administration would continue to work on the project, in cooperation with the Borough, and try to accomplish something in the fall. X. ORDINANCES AND RESOLUTIONS: (cont'd) A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None l) PAGE 220 REGULAR MEETING - MAY 11, 1981 VOLUME 19 X. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) CLIFF RES: ADDN/ 2. Copies being made available to the public, Hugli noted by title only proposed resolution authorizing the purchase of Lots 11, 12 and 13, Block 8, Cliff Addition, at $5,300, entitled: A Resolution of the City Council of the City of Seward, Alaska, Finding it in the Public Interest to Acquire Certain Parcels of Land in the City of Seward It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-10. X1. UNFINISHED BUSINESS: A. City Manager, with Council consent, recommended discussion of the sewer ordinance be postponed until the June 8 meeting and that a study session be scheduled before that date to thoroughly review the draft ordinance. WATER: B. City Manager reported the Council needed to confirm action taken on April 27, approving a contract with Ott Water Engineers for Phase I of the Mt. Marathon hydroelectric project. He confirmed the project was for the Seward General Hospital, was funded by the Alaska Energy Center and would be administered by the City of Seward. Following discussion, it was moved by Soriano, seconded by Swartz and carried as follows to authorize the City Manager to enter into a contract with Ott Water Engineers for Phase I of the Seward General Hospital Marathon hydroelectric project, not to exceed $32,000: Ayes: Noes: Abstain: Absent: Cripps, Hugli, O'Brien, Soriano and Swartz None Campbell Gillespie XII. NEW BUSINESS: 4TH OF CREEK AREA: JULY A. May 5, 1981, proposal from Century-Quadra to provide the management contract for the Fourth of July Creek relocation, Phase I, construction, at $96,000, was noted. City Manager supported Council approval of the contract. It was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve the contract not to exceed $96,000 to Century-Quadra for construction management of the Fourth of July Creek stream relocation, Phase I. 4TH OF CREEK AREA: JULY B. May 6, 1981, proposal from Century-Quadra to provide the engineering and design services for the Fourth of July Creek project, southern lagoon mitigation measures, at $65,000, was noted. City Manager recommended Council approval of the contract. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to contract with Century-Quadra for the Fourth of July Creek project, southern lagoon mitigation, engineering and design services, not to exceed $65,000. 4TH OF CREEK AREA: JULY C. April 30, 1981, letter from Murray/Bradley, Inc., submitting a proposal to provide a public relations program for the Fourth of July Creek Marine Industrial Park at a price not to exceed $8,250, was noted. City Manager stated the public relations campaign would involve a ground breaking ceremony for the Fourth of July Creek development and recommended Council approval of the proposal. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to contract with Murray/Bradley to put together a public relations program for the Fourth of July Creek Marine Industrial Park ground breaking, not to exceed $8,250. PAGE 221 REGULAR MEETING - MAY 11, 1981 VOLUME 19 XIII. CITY MANAGER REPORTS: WATER: A. April 28, 1981, letter from the Army Corps of Engineers to Governor Hammond regarding maintenance of the Lowell Creek Diversion Tunnel, was noted. City Manager reported the Corps had cited a 1967 letter from the City Manager which obligated the City of Seward to the maintenance of the tunnel. He stated the administration was continuing to work on the problem and would contact the Governor's office in follow- up to the April 28 letter. I B. City Manager reported he had been nominated to the District Export Council. C. City Manager reported he would be traveling to Juneau on Wednesday, May 13, and asked if any Councilmember wished to accompany him. XIV. COUNCIL DISCUSSION: A. Swartz reported that the Alaska Grain Exchange President had been circulating negative comments about Seward, stating that the local administration would not speak or meet with him and that Seward was not interested in exporting the Delta barley. She requested a letter be directed to the gentleman, clarifying Seward's position of interest and stating that City Hall had no record of his attempts to contact local officials. City Manager, with Council consent, requested the City not become embroiled in the politics of the issue and to allow the State of Alaska to handle the matter. I B. In answer to a question from Campbell, City Manager stated the City was proceeding rapidly with citing individual property owners not in compliance with the local ordinance prohibiting junked vehicles and abandoned items. He stated two appeals had been received and would be presented to Council at the next meeting. C. Hugli, with Council consent, directed the City Clerk to forward a letter to the Iditarod Race Committee, urging that the ]982 race commence in Seward, the southern terminus of the Iditarod Trail. He stated the request had come from the Iditarod Trail Advisory Committee. XV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XVI. ADJOURNMENT: The meeting was adjourned at 10:10 p.m. I '1' ..J PAGE 222 REGULAR MEETING - MAY 18, 1981 VOLUME 19 I. CALL TO ORDER: rhe May 18, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m., by Mayor Hugli. "Notice of Amended Meeting Date" as posted and published two times in the local newspaper, was noted. II. OPENING CEREMONY: Council me mber Gillespie led the pledge of allegiance to the flag. II 1. ROLL CALL: Present were: Mayor Hugli, Councilmembers Cripps, Gillespie, O'Brien, Soriano (Absent, with Council consent, were Campbell and Swartz) Present also: City Manager Johnson, City Attorney Gantz, Administrative Assistant Schaefermeyer and Deputy City Clerk Ledet IV. APPROVAL OF MINUTES: It ~as moved by Soriano, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting minutes of May 11, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following changes be made to the regular meeting aSienda: XI. NEW BUSINESS: A. DELETE - Appeal of James Schaefermeyer from the "Notice and Order of Abatement" dated April 24, 1981, relative to the abandoned, wrecked or junked vehicle located at 305 Second Avenue CONSENT CALENDAR 1. DELETE - May 6, 1981, "Claim for Damages" as submitted by Lorna Lohse, in the amount of $66.75 for damage to a microwave oven, allegedly caused by power fluctua- tions on March 14, 1981 5. ADD - April 24, 1981, Invoice from Becker Fire Equipment Company in the amount of $4,550. for fire equipment - approve for payment and file 6. ADD - Finance Department's List of Account's Payable totaling $4,880,713.19 for the month of April 1981, - approve for payment and file 7. ADD - "Consent" Lots 13 and 14, Inc. file to Seward Fisheries to sublease Seward Industrial Park to New Seward, approved' for information and Following discussion, it was moved by Gillespie, seconded by Soriano, and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: SEWAGE TREATMENT: 1. April 22, 1981, Invoice No. 03181 from Arctic Environmental Engineers, in the amount of $15,480.44 for construction management services on the sewage treatment facility, Step 3, was approved for payment and filed PAGE 223 REGULAR MEETING - MAY 18, 1981 VOLUME 19 ,) .' V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) ELECTRIC DEPARTMENT: 2. May 5, 1981, Invoice No.1 from Skyline Electric Inc., in the amount of $3,455.25 for the electric system line maintenance, was approved for payment and filed. SEWAGE TREATMENT: 3. May 5, 1981, Periodic Estimate for Partial payment from Brown and Associates, J.V., in the amount of $645,478.66 for serVices on the sewage treatment facility, was approved for payment and filed. I FIRE DEPT: 4. April 24, 1981, Invoice from Becker Fire Equipment Company in the amount of $4,550. for fire equipment, was approved for payment and filed. FINANCE DEP ARTMENT : 5. Finance Department's list of Account's Payable totaling $4,880,713.19 for the month of April 1981, was approved for payment and filed. SEWARD FISHERIES: 6. "Consent" for Seward Fisheries to sublease Lots 13 and 14, Seward Industrial Park to New Seward Inc., ~ approved for the City Manager's signature and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl stated that there had not been a meeting since his last report. briefly on what was on the May 19, 1981, agenda. Schaefermeyer He spoke VII. PUBLIC HEARINGS: BUDGET: A. The following items were noted relative to the proposed City budget for Fiscal Year 1981-82: I "Notice of Public Hearing" as published two times in the local newspaper and posted pursuant to City Code provisions Proposed City budget dated May 15, 1981 Copies of the proposed $2,501,787 and 8 mil budget were made available to the public. City Manager stated there were some minor changes in the proposed budget such as $52,000 less due to an exclusion of the Federal Revenue Sharing funds that the City was not sure of receiving. He stated that he would like to purchase from this year's budget some word processing equipment, a radio, two police cars and a carry van for the Fire department with additional State Revenue Sharing funds that the City had received. He stated that the proposed budget balanced with the items of equipment to be purchased this year and the new budget total is proposed at $2,444,960, which included a $214,503 Mayor and Council contingency fund. Public hearing was opened on the budget; no one appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Soriano, seconded by Gillespie, POLICE and unanimously carried by all those present to authorize the City Manager to DEPARTMENT: purchase two new used police cars not to exceed $6,000 each. POLICE DEPARTMENT: I Following discussion, it was moved by Soriano, seconded by Gillespie, and unanimously carried by all those present to authorize the City Manager to purchase a radio from MJtorola Communications Electronics, Incorporated for a sum of $3,000. FIRE DEPARTMENT: Following discussion, it was moved by Soriano, seconded by O'Brien, and unanimously carried by all those present to authorize the City Manager to purchase a carry van for the Fire department, not to exceed $15,000 and that the City Code Section 10-8-E be waived, waiving the competitive bidding. City Manager stated that he was putting together a package for the word processing equipment. POLICE DEPARTMENT: ARR: POLICE DEPT: FOURTH OF JULY CREEK AREA: PAGE 224 REGULAR MEETING - MAY 18, 1981 VOLUME 19 VII. PUBLIC HEARINGS: (cont'd) B. Proposed contract and Lease Agreement with Ron Henderlong, d/b/a Ron's Towing and Wrecking, to provide for City impound services and to lease Lots 17-19, Block 21, Original Townsite, as an impound lot, was noted. "Notice of Public Hearing" as published two times in the local news- paper and posted pursuant to City Code provisions, and the Lease Agreement dated June 12, 1980, in which the City had a lease agreement with Ron Devereaux also d/b/a Ron's Towing and Wrecking for the impounding of cars. was also noted. City Manager stated tha~ this was a transfer of ownership and Henderlong wished to enter into the same lease with the City. The public hearing was opene~ no one appeared from the audience in order to be heard and the public hearing was closed. City Manager stated that a resolution approving the transfer would be on the June 8 agenda. C. Public hearing was opened on a proposal to lease property in the Fourth of July Creek area to Torkelson-Kellogg, Inc. for construction of. a coal facility. "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions, was noted. No one appeared from the audience iI, .'1€r to be heard and the public hearing was closed. City Manager stated ~ha~ the information was covered at.the last Council meeting and added that the lease was ~ov approximately 100 acres, 20 of which were right-of-way, which would be leased to Torkelson-Kellogg, Inc. for a coal facility. VII 1. CITIZENS' DISCUSSION: (With prior notice only) A. Virginia Randazzo appeared fro~ the audience and spoke on the transient merchant ordinance anQ asked the Council to look at each individual application rather than the "blanket" rule for transient merchants. She stated that the ordinance was too restrictive. She also stated that she was probably going to have her business for more than 120 days. Hugli, with Council consent, stated that no changes would be made to the ordinance at this time. B. Dr. Gregory Higgins, scheduled to appear at this time, was not present in the audience. C. Leslie Dooley, representing the Concerned Citizens Group of Seward, appeared from the audience and spoke on House Bill No. 190, which is related to drug offenses and asked Council support of the bill. Dooley asked for a Resolution of the Council, howeve~the time frame was not adequate. Hugli, with Council consent, assured Dooley that some measure would be taken for the support of the Bill. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed Resolution No. 81-11, relative to bonding for VECO facilities, entitled: A Resolution of the City of Seward, Alaska, Relating to the Acquisition, Construction, and Installation of Certain Port Facilities in the City of Seward, Alaska by VECO, Inc., and Agreeing that the City of Seward Will at Such Times as May be Appropriate, Authorize and Issue Bonds of the City for the Purpose of Financing Such Facilities In answer to a question from Gillespie, City Manager stated that the commitment letter sited as "Exhibit B" in the proposed resolution had not been received. A motion was made by Gillespie, seconded by Sori~no, but later with- drawn due to the absence of "Exhibit E", to adopt Resolution No. 81-11. POLICE DEPARTMENT I FOURTH OF JULY CREEK AREA: I POLICE DEPARTMENT: I PAGE 225 REGULAR MEETING - MAY 18, 1981 VOLUME 19 X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. Deleted B. Appeal of Ronnie Lewis from the "Notice and Order of Abatement" dated April 27, 1981, relative to the abandoned, wrecked or junked vehicle located on Lot 23, Block 39, Original Townsite, was noted and read by the City Manager. He also read Seward City Code section from Chapter 18A regarding abandoned, wrecked or junked vehicles. By request from the City Attorney, Deputy Clerk swore Chief of Police Louis Bencardino in for testimony in the appeal of Ronnie Lewis. In answer to questions from Gantz, Bencardino stated that the abandoned car had been sitting on the property for at least four years, and that a picture had been taken a week prior (Exhibit No.1) which show.ed the car in question to be a Chevy Corvair without a current license and had not been operated in years. Cripps spoke in support of Lewis, stating that the car was not in the public gaze. Following discussion, it was moved by Soriano, seconded by Gillespie, and unanimously carried by all those present to deny the appeal of Ronnie Lewis. C. Contract by Letter Agreement dated May 13, 1981, with Century- Quadra for the Fourth of July Creek port facility, Phase IIA, engineering and design, was noted. City Manager introduced Butch West of Quadra Engineering and Herb Plitt of Century. West explained the various phases of the project. He stated that this proposed contract was a part of the general contract dated July 22, 1980. West explained in the Letter Agreement the services provided by this agreement which would include obtaining the necessary topographic surveys to support design of the facility, obtaining subsurface data, developing preliminary engineering designs of all major components of the facility, construction quantities and cost estimates of the total facility. Following discussion, it was moved by Gillespie, seconded by O'Brien, and unanimously carried by all those present to give the administra- tion authorization to sign a contract with Century-Quadra outlining the preliminary and final designs as outlined in their May 13, 1981, letteL not to exceed $1.4 million. XII. CITY MANAGER REPORTS: A. City Manager stated that he would be traveling to Juneau the following morning with Councilmember Campbell, Rod Christ of VECO and Willie Hensley, representing the Nenana Corporation, to give testimony before the House committee regarding the City's request for $25,000,000 in State funding for the Fourth of July Creek project. XIII. COUNCIL DISCUSSION: A. Mayor Hugli, with Council consent, scheduled a work session for June 1, at 7:30 p.m., in order to discuss the draft sewer ordinance and the proposed City budget for fiscal year 1981-82. B. Copies being distributed to the Council, Bencardino answered questions on Senate Bill No. 190, which he had helped draft as a member of the Chief of Police Association of Alaska. He stated that the bill would restrict the amount of marijuana a person could possess for personal use, it would make possession of certain drugs a felony, tighten confiscation procedures, etc. Gillespie felt that since the bill was approximately fifty pages, that theCouncil should have a chance to read it before any action was taken. Following discussion, it was moved by Soriano, seconded by O'Brien, and carried as follows to have a resolution drafted backing Senate Bill No. 190. AYES: NOES: ABSENT: Cripps, O'Brien, Soriano, Hugli Gillespie Campbell, Swartz J;~ PAGE 226 REGULAR MEETING - MAY 18, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont' d) C. In answer to a question from O'Brien, City Manager stated that he would look into some pavement breaks in the roadway leading to the mill. D. Cripps reported on a House Bill which wo'.:ld delete the "Good Samaritan Act" which gives a person a right to perform emergency services if needed, without fear of being sued. City Manager stated that he would find out the status of the bill. XIV. CITIZENS' DISCUSSION: Council Juneau, A. Margaret Branson appeared from the audience and informed the that a telegram should be sent to the attention of Fred Brown in voicing the City's support of Senate Bill No. 190. xv. ADJOURNMENT: f.<','.:The<.i~ing was adj ourned at 9: 00 p.m. ~,.:~...~..r ~' . ._<: -.\t:f, ~.; / /;~,_ I j ~l Ray ond 'C:/Hugli Mayor . / 1~/(jrC.u:t;{ yJJ ~~mr /~dith M. Ledet Deputy City Clerk (City Seal) ------------------------------------------------------------------------------ PAGE 226 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 1. CALL TO ORDER: The June 11, 1981, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Vice Mayor Gillespie. "Notice of Amended Meeting Date", rescheduling the meeting from June 8 to June 11, as published two times in the local newspaper and posted, was noted. II. OPENING CEREMONY: flag. Councilmember Campbell led the pledge of allegiance to the III. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Campbell, Soriano and Swartz (Absent, with Council consent, were Mayor Hugli and Councilmembers Cripps and O'Brien) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: carried minutes It was moved by Soriano, seconded by Campbell and unanimously by all those present to approve the May 18, 1981, regular meeting as written. I I I FINANCE DEPT: C ATTORNEY: 4TH OF JULY CREEK AREA: WATER: I~ c) r~ L,,_ , PAGE 227 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 v. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: Proclamation - "ARCO - Jesse Owens Day" -- June 17, 1981 XII. City Manager Reports: B. Price Waterhouse contract XIII. Council Discussion: C. June meetings City Manager requested that the following items be deleted from the regular meeting agenda, to be rescheduled for the June 22 meeting: IX. Ordinances and Resolutions: C. Resolutions: 1. Proposed Resolution No. 81-11, charging off as uncollectible $16,473.26 in utility accounts XI. Business: Approval of Construction General Hospital and the hydroelectric project Agreement between Seward City for the Marathon New C. D. Approval of contract between Ott Water Engineers, Inc., and the City for the Marathon hydroelectric project, Phase II engineering City Manager requested that the following item be added to the consent calendar: 11. June 8, 1981, "Periodic Estimate for Partial Payment" No. 9 as submitted by Brown & Associates for work performed on the sewage treatment project, totaling $952,281.43 - approve for payment and file Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: 1. The Finance Department's list of Accounts Payable for May 1981, totaling $7,024,949.28, was approved for payment and filed. 2. Hughes, Thorsness, Gantz, Powell & Brundin billing for legal services rendered during April 1981, totaling $13,505.74, was approved for payment and filed. 3. May 29, 1981, billing from Wilder Construction, as Progress Payment #1 for Phase II of the Nash Road Extension Project, totaling $382,815, was approved for payment and filed. 4. May 19, 1981, invoice from Ott Water Engineers, Inc., in the amount of $6,093.29 for professional services rendered relative to the Marathon hydro- electric project, was approved for payment and filed. '7 :"*-t') .(~ ~\, V. PAGE 228 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: SEWAGE TREATMENT: SEWAGE TREATMENT: SEWAGE TREATMENT: SEWAGE TREATMENT: 5. May 20, 1981, invoice from Century-Quadra in the amount of $9,557.57 for professional services rendered relative to the 4th of July Creek stream relocation, Phase I-B, was approved for payment and filed. 6. May 13, 1981, Invoice #151047-1 from R & M Consultants, Inc., in the amount of $13,635.18 for work performed on the Nash Road extension project, was approved for payment and filed. 7. May 13, 1981, Invoice #051075-11 from R & M Consultants, Inc., in the amount of $2,730.68 for work performed on the Nash Road extension project, design and construction management, was approved for payment and filed. 8. June 3, 1981, Invoice #04381 from Arctic Environmental Engineers in the amount of $24,772.53 for work performed on the sewage treatment project, Step 3, was approved for payment and filed. 9. May 13, 1981, Invoice #69108 from the State of Alaska, in the amount of $1,256.60, for services provided by DOT regarding utility permit inspections as part of the sewage treatment project, Step 3, was approved for payment and filed. 10. May 8, 1981, "Periodic Estimate for Partial Payment" No. 8 as submitted by Brown & Associates for work performed on the sewage treatment project, totaling $483,792.78, was approved for payment and filed. It was noted that this was a correction of the bill submitted to Council on May 18 in the amount of $645,478.66 11. June 8, 1981, "Periodic Estimate for Partial Payment" No. 9 as submitted by Brown & Associates for work performed on the sewage treatment project, totaling $952,281.43, was approved for payment and filed. PROCLAMATION - At the request of the Vice Mayor, City Clerk read in full a proclamation entitled "ARCO JESSE OWENS GAMES DAY" and the Vice Mayor so declared June 17, 1981. PROC: VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of June 2, 1981. VII. PUBLIC HEARINGS: BUDGET: A. Public hearing was opened on the proposed City budget for Fiscal Year 1981-82 and the following items were noted: "Notice of Public Hearing" as published two times in the local newspaper and posted, pursuant to City Code provisions The proposed City budget for Fiscal Year 1981-82 totaling $2,384,789 and representing a 7 mil tax rate in City tax zone #1 and a 4.5 mil tax rate in City tax zone #2 I I I PAGE 229 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 VII. PUBLIC HEARINGS: (cont'd) BUDGET: (cont'd) City Manager commented that due to the increased municipal assistance provided by the State Legislature, the administration was able to present a budget which represented a 44 percent mil rate decrease from 12.5 to 7 mils. He remarked that some adjustments would be necessary following the June 22 public hearing on Federal Revenue Sharing funds. Following the hearing, those monies would be added to the budget. City Manager also spoke on the Small Boat Harbor proposed budget, stating it was predicated on a 25 percent moorage rate increase, to become effective January 1, 1982. Further, the Electric Department budget reflected an 11 percent rate increase and the Water Department rates would increase by 25 percent. He stated the administration had presented a deficit budget for the Sewer Fund, with a $12 per month proposed user fee. Without the assistance of past history, he suggested that the Sewer budget be reviewed and adjusted after a full year's operation. No one appeared from the audience in order to be heard and the public hearing was closed. Gillespie thanked the administration for submission of a budget which reflected such a large reduction in the mil rate. (See Resolution No. 81-15, IX. C. 5., Page 231.) VIII. CITIZENS' DISCUSSION: AIRPORT: A. May 17, 1981, letter from Roy Musgrove, Advisor to the President, North Pacific Airlines (NPA), proposing certified scheduled air service for Seward, was noted. Musgrove appeared from the audience and gave a verbal presentation on NPAs proposal to utilize a DeHavilland DHC-7, to be purchased by NPA, in conjunction with the FAA-approved Bendix Microwave Landing System, to be purchased by the City or State of Alaska. Musgrove explained that the system would be on the market the following year and NPA was proposing the same system for Valdez. A film displaying the features of the DeHavilland DHC-7 was presented for the Council and audience. In answer to a Council question, Musgrove commented that NPA had obtained the old Polar Airlines certificate with the sole intention of providing service to Seward and Valdez with the DeHavilland and the Bendix Microwave Landing System. Musgrove reported the representatives of the Bendix Corporation would be in Seward within the week to gather data for its system feasibility study and the report findings would be made available to Council. Gillespie thanked Musgrove for his presentation and stated the concept presented by Musgrove would be welcomed in the community. He stated Council would be interested in reviewing the completed Bendix feasibility study and discussing the proposal in more detail at a later date. SCHOOLS: B. Sandra Burgess appeared from the audience and distributed to Council a packet of information relative to application for a Day Care Assistance Program grant. Also distributed was June 10, 1981, letter from Seward Life Action Council Executive Director Spanier, offering to provide the administrative services for the grant at no charge to the City. Burgess explained the grant was only available to city governments and urged the Council to apply for the funding. Lois Daubney, Public Health Nurse, also appeared from the audience and spoke on the families who would benefit from the grant funds. Burgess and Daubney explained the funds were provided exclusively to assist families in which both parents worked outside the home. Burgess urged the City to apply for the grant, and she stressed the need to meet the June 15 deadline for submittal of the grant applicatioIl. She volunteered to provide her services in preparation of the application. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present that the City put together a grant application, with the help of Mrs. Burgess, to apply for the Day Care Assistance funds from the State. ;~ 'J ,! \ ., SEWAGE ORDS: PAGE 230 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (cont'd) C. Dr. Gregory Higgins appeared from the audience and spoke the the need to seek formal name designations for the local geographic features in the Seward area. He reported the process had been initiated a number of years ago but had never been completed. Higgins stated he was interested in pursuing the project and asked for Council support. Following discussion, Gillespie requested that Higgins proceed with the process and to contact local groups such as the Historical Society and the U.S. Forest Service for citizen input prior to presenting his final report to Council. Gillespie thanked Higgins for his interest in the area. RECESS: The meeting was recessed at 9:00 p.m.; reconvened at 9:10 p.m. D. In response to an inquiry from audience member Monty Richardson, City Manager stated the picture-taking rack in the Small Boat Harbor would be repaired. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: TRTMTI 1. Copies being made available to the public, Gillespie noted the draft of proposed Ordinance No. 495 regarding sewage treatment and the City sewer system. City Manager referred to Sec. 22-7 - PENALTIES, and presented suggested language for the completion of Section 3.,4., and 6. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to introduce proposed Ordinance No. 495 with a public hearing scheduled for July 13, 1981. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: SCHOOLS/REFUSE/ 1. Copies being made available to the public, Gillespie KPB/ noted by title only proposed resolution approving the exchange of City- 4TH OF owned land at the schools site and at the landfill for Borough-owned JULY land in the 4th of July Creek area, entitled: CREEK AREA! RES: POLICE/ RES: Providing for the Exchange of Real Property Between the City of Seward and the Kenai Peninsula Borough It was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-11. 2. Copies being made available to the public, Gillespie noted by title only proposed resolution authorizing a contract and Lease Agreement with Ron Henderlong, d/b/a Ron's Towing and Wrecking, to provide for City impound services and to lease Lots 17-19, Block 21, Original Townsite, as an impound lot, entitled: A Resolution of the City Council of the City of Seward, Alaska, Leasing Certain Land to Ron Henderlong, DBA Ron's Towing & Wrecking It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-12. , 1 . ~ . PAGE 231 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4TH OF JULY CREEK 3. Copies being made available to the public, Gillespie AREA/RES: noted by title only proposed resolution approving a Lease Agreement with VECO OFFSHORE, INC., for 61 acres, more or less, in the 4th of July Creek area, for the construction of certain vessel repair and related facilities, entitled: I A Resolution of the City Council of the City of Seward, Alaska, Leasing Certain Land to VECO, OFFSHORE, INC. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-13. PKS & RES: REC/ 4. Copies being made available to the public, Gillespie noted by title only proposed resolution approving a Lease Agreement with the U.S. Air Force for a strip of land (.56 acres) in the cemetery reserve and adjacent to the recreation camp, entitled: A Resolution of the City Council of the City of Seward, Alaska, Leasing Certain Land to the United States Air Force City Manager explained that the Air Force had been encroaching on the 25 by 980 feet strip of land for a number of years and recommended approval of the lease to correct the situation. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-14. BUDGET/ RES: 5. Copies being made available to the public, Gillespie noted by title only proposed resolution approving the City of Seward budget for Fiscal Year 1981-82, entitled: I Adopting of City Budget for Fiscal Year Beginning July 1, 1981 The City Manager's budget message dated June 10, 1981, was distributed to Council. City Manager reiterated that the budget would adopt a 7 mil tax levy for City Tax Zone 1 and a 4.5 mil tax levy for City Tax Zone 2. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-15. X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: SEWAGE TRTMT: A. June 10, 1981, letter from Arctic Environmental Engineers, reporting on the bid opening for the Skill Center sewer line project, submitting the bid tabulation, and recommending award of the bid to low bidder Zubeck, Inc., at $167,400, was distributed. City Manager spoke on the bids submitted by Zubeck, May Contracting, TCI Ltd. & Associates, and the Engineer's Estimate. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to award the contract to Zubeck Inc., at the sum of $167,400 for the Skill Center sewer project, contingent upon submittal of a performance bond and certificate of insurance by the company. I City Manager reported the City Engineering Department would provide the contract management for the project but requested Council approve a contract with Arctic Environmental Engineers not to exceed $1,800 for construction staking of the project; it was so moved by Campbell, seconded by Soriano and unanimously carried by all those present. PAGE 232 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) 4TH OF CREEK AREA: JULY B. June 4, 1981, memorandum from City Engineer Tom Small and June 5, 1981, letter from John Conover of Century/Quadra, relative to the bids received on the 4th of July stream relocation construction contract, and the recommendation to award the contract to low bidder Chris Berg, Inc., were noted. City Manager reported the bids received ranged from $1,437,500 to $3,142,750 with the engineer's estimate at $2,127,070. City Manager displayed the Corps of Engineers permit received that morning and stated the City could now proceed with work in the 4th of July Creek area. Gillespie extended congratulations and thanks to the City Manager and administration for the continued work on the project. City Manager extended his appreciation to City Engineer Tom Small for the work he had done on the project. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to award the 4th of July stream relocation construction project to Chris Berg, Inc., for $1,437,500. XII. CITY MANAGER REPORTS: A. Report on the City representatives' tour of the McDuffie Coal Terminal in Mobile, Alabama, was postponed until the June 22 meeting. FINANCE: B. City Manager spoke on the numerous grant projects underway in the City and the process whereby direct and indirect administrative costs could be charged against a project. He stated in order to develop a direct/indirect cost ratio which would be acceptable to the Federal, and thus the State, agencies, an accounting firm would have to be retained to collect data and develop the percentage. City Manager requested authorization to contract with the accounting firm of Price Waterhouse for the sum not to exceed $9,500 plus out-of-pocket expenses to develop the ratio for grant purposes. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to contract with Price Waterhouse, not to exceed $9,500 plus out-of- pocket expenses, to come up with the figure. C. City Manager reported that both the State Senate and House had passed the bill to construct a grain terminal in Seward and one of the firms which had submitted a bid to the State for supply of the railroad cars was Torkelson-Kellogg, Inc. 4TH OF CREEK AREA: JULY D. City Manager reported on the ground-breaking ceremonies for the 4th of July Creek Marine Industrial Park tentatively set for Monday, June 29. He explained that various representatives of Torkelson- Kellogg were making plans to attend the ceremonies and had requested that Council schedule a public hearing that evening to discuss the proposed coal facility. Following discussion, Gillespie, with Council consent, scheduled a special Council meeting for Monday, June 29, 1981, for the sole purpose of conducting a public hearing on the proposal to lease certain City lands in the 4th of July Creek area to Torkelson- Kellogg, Inc., for construction of a coal facility. STREETS, RDS, E. June 2, 1981, letter from the State Department of Transportation HWYS/ and Public Facilities, Transportation Planner Tolley, regarding capital HARBOR: projects for 1983 and 1984, was noted. City Manager reviewed the contents of the letter, and, with Council consent, suggested that the City request the Department's list be amended to include a feasibility study for a small boat dry storage area in Seward. F. City Manager advised Council the City was requesting bids for cemetery maintainence and the bid opening was scheduled for June 22. POLICE: G. City Manager reported that he had received authorization at the previous Council meeting to purchase two Police Department vehicles at a price not to exceed $6,000 per vehicle. Since that date, he stated he had discovered that the best price the City could obtain for acceptable PAGE 233 REGULAR MEETING - JUNE 11, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) vehicles was at $8,500 for fleet cars and he requested authorization to proceed with the purchase of two fleet vehicles. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to purchase two cars for the sum of $8,500 each, not to exceed $17,000. I At the request of the City Manager, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to eliminate the bid procedures that are normally required for the purchase of new equipment. XIII. COUNCIL DISCUSSION: A. May 17, 1981, letter from Iditarod Trail Committee President Crane regarding commencement of the annual Iditarod Race in Seward, was noted. In answer to a question from Swartz, Kerry Martin of the U.S. Forest Service appeared from the audience and spoke on the problem of establishing a trail from Snow River to Lawing. B. May 20, 1981, letter from State CEIP Coordinator Williams regarding the withdrawal of the City's application for CEIP funds to finance a local port and harbor expansion plan, was noted. City Manager explained the reasons why the grant monies were rejected by the City. C. Page 232.) (For information on the meetings in June, see XII. D., D. appeared from schemes which of the 4th of In answer to comments by Campbell, City Engineer Tom Small the audience and spoke on the conceptual development were being prepared for the anticipated industrial users July Creek area. I E. Gillespie applauded the City Manager and administration for securing the Corps of Engineers permit for development of the 4th of July Creek area and noted that approval of the permit marked the first time such a permit had been issued based upon the filing of an Environmental Assessment rather than a complete Environmental Impact Statement. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. ADJOURNMENT: ~...~".,.. l " c'}'h~)II~~t;3!~,8 was adj ourned at 9: 59 p. m. t-, . ~, ,\ / i " JoA ne E. Shanley, CMCS City Cl~t".k/ P "'.< ',' .J (Cit~~,~t~~;;~ I 4 ~ :1 PACE 234 REGULAR MEETING - JUNE 22, 1981 VOLUME 19 1. CALL TO ORDER: The June 22, 1981 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. 11. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. I II . ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Gillespie, Soriano and Swartz (Absent, with Council consent, were *Cripps and O'Brien) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: carried meeting It was moved by Swartz, seconded by Soriano and unanimously by all those present to approve the June 11, 1981, regular minutes as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 3. Proposed Resolution No. 81-18, accepting $31,000 from the State of Alaska for Small Boat Harbor repairs XII. City Manager Reports: B. Award of contract for City cemetery maintenance City Manager requested the following item be deleted from the consent calendar because it was a duplicate of a billing already submitted to the City for payment: 1. May 31, 1981, Statement from R & M Consultants, Inc., totaling $16,652.56, for professional services rendered relative to the Nash Road extension, construction management City Manager requested the following item be added to the consent calendar: 1. June 11, 1981, Invoice 05181 as submitted by Arctic Environmental Engineers, in the amount of $20,745.26, for professional services rendered relative to the sewage treatment project, Step 3, construction management - approve for payment and file Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: SEWAGE TREATMENT: 1. June 11, 1981, Invoice 05181 as submitted by Arctic Environmental Engineers, in the amount of $20,745.26, for professional services rendered relative to the sewage treatment project, Step 3, construction management, was approved for payment and filed. 4TH OF JULY CREEK AREA: 2. June 13, 1981, Pay Estimate #2 from Wilder Construction, totaling $474,800.40, for work performed on the Nash Road extension project, was approved for payment and filed. BUDGET: I A R R: I BUILDING ORDS: I '" ,;, PAGE 235 REGULAR MEETING - JUNE 22, 1981 VOLUME 19 V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of June 16, 1981. VII. PUBLIC HEARINGS: A. Public hearing was opened on the proposed use of $77,000 of Federal Revenue Sharing funds expected to be received by the City during Fiscal Year 1981-82; and "Revenue Sharing Public Notice - Proposed Use Hearing", as posted and published one time in the local newspaper, was noted. City Manager explained that a use hearing was required before the Federal funds could be allocated. No one appeared from the audience in order to be heard and the public hearing was closed. City Manager answered various Council questions on past years' allocatior.s and stated the funds were usually divided between the Fire, Public Works and Recreation Departments. He confirmed expenditure of the funds were limited to personnel and equipment, not capital projects. Administrative Assistant stated another public hearing would be held regarding funds allocation prior to introduction of the resolution which would add the monies to the 1981-82 budget. B. Public hearing was opened on the proposed Lease Agreement with Torkelson-Kellogg, Inc., for the lease of 79.6 acres, more or less, in the 4th of July Creek area for construction of a coal export facility; and "Notice of Public Hearing", as published two times in the local newspaper and posted, was noted. City Manager and City Attorney spoke on their recent trip to Salt Lake City, Utah, ,to, ,continue negotiations on the draft Lease. City Manager explained that due to the fact a Lease document was not ready for presentation, the public hearing held this evening would not count as the required hearing pursuant to City Code provisions. No one appeared from the audience in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: DEPT/ by title only and Abatement 1. Copies being made available to the public, Hugli noted proposed ordinance adopting the 1979 Uniform Building Code of Dangerous Buildings Code, entitled: An Ordinance Relating to Buildings, Repealing and Re-Enacting Sections 6-1 and 6-2 of the Seward City Code In answer to a question from Gillespie, City Manager reported the only text change was the updating of the reference from the 1976 Editions to the 1979 Editions of the Codes. He stated the new editions were being used by the State and appeared to be less restrictive, than "the older editions. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to introduce proposed Ordinance No. 496, with a public hearing scheduled for June 27, 1981. B. Ordinances for Public Hearing and Enactment: None I') ~, r , PAGE 236 REGULAR MEETING - JUNE 22, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution charging off as uncollectible certain utility accounts, entitled: FINANCE DEPT/ RES: FINANCE RES: HARBOR/ RES: WATER/ SGH: A Resolution Charging Off Certain Uncollectible Utility Accounts Totaling $15,116.60 It was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 18-16. DEPT/ by title accounts 2. Copies being made available to the public, Hugli noted only proposed resolution charging off as uncollectible certain receivables, entitled: A Resolution Charging Off Certain Accounts Receivable Balances Totaling $8,938.44 It was moved by Swartz, seconded by Gillespie and carried as follows to approved Resolution No. 18-17: Ayes: Noes: Abstain: Absent: Gillespie, Hugli, Soriano and Swartz None Campbell Cripps and O'Brien 3. Copies being made available to the public, Hugli noted by title only proposed resolution accepting $31,000 from the State of Alaska for Small Boat Harbor repairs, entitled: A Resolution Accepting the Transfer of $31,000 From the State of Alaska to Perform Repairs Within the Seward Municipal Small Boat Harbor City Manager briefly explained the work that would be accomplished with the monies allocated from the 1980 State appropriation of $365,000 for Seward Small Boat Harbor improvements. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-18. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. The following contracts were noted relative to the proposed construction of a hydroelectric project wherein the City water supply from Mt. Marathon would be used to generate electrical power to service the needs of Seward General Hospital: "Hydro-Generation Construction Agreement" between Seward General Hospital and the Alaska Energy Center (June 9, 1981) "Operation Agreement" between the City of Seward and Seward General Hospital (June 9, 1981) "Construction Agreement Between Seward General Hospital and City of Seward" (June 9, 1981) WATER/ SGH.: (cont'd) I WATER/ SGH: I ~.~ ' . PAGE 237 REGULAR MEETING - JUNE 22, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) Hospital Administrator C. Keith Campbell stated the Alaska Energy Center and the Hospital board had already executed the contracts.' He briefly explained the terms and conditions of the various contract documents. Following discussion, it was moved by Soriano, seconded by Swartz and carried as follows to authorize the City Manager to sign the Operation Agreement and Construction Agreement with Seward General Hospital: Ayes: Noes: Abstain: Absent: Gillespie, Hugli, Soriano and Swartz None Campbell Cripps and O'Brien COUNCILMEMBER CRIPPS ARRIVED AT THIS TIME AND HEREAFTER TOOK PART IN THE MEETING. B. June 4, 1981, memorandum from City Engineer Tom Small, recommending Council authorization to sign a contract with Ott Water Engineers, Inc., not to exceed $59,000, to provide engineering services to complete Phase II of the combined water supply and hydropower project at the Marathon Water Intake, was noted. City Manager requested Council approval of the contract. It was moved by Soriano, seconded by Cripps and carried as follows to authorize the City Manager to enter into a contract with Ott Water Engineers for a sum not to exceed $59,000 for the Marathon hydroelectric project, Phase II: Ayes: Cripps, Gillespie, Hugli, Soriano and Swartz None Campbell O'Brien Noes: Abstain: Absent: XII. CITY MANAGER REPORTS: A. Councilmember Soriano, City Engineer Tom Small and City Attorney Arvidson gave verbal reports on their recent trip to Mobile, Alabama, to view a world-class coal handling facility. CEMETERY: B. City Manager reported bids for summer maintenance of the City cemetery had been received and opened that afternoon with the following bids being submitted: I Green Side Up Leslie Dooley $6000 $15/hr @ 32-40 hrs./week ($4800 to $6000) $8596 Bruce Jaffa Enterprises In answer to a question from Hugli, City Manager stated Leslie Dooley had been awarded the contract the previous year and he had not received any complaints regarding the work. City Manager confirmed the contracted period was from June 23 through September 1, 1981. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to award the contract for the cemetery maintenance to Leslie Dooley. C. City Manager gave a verbal report on his recent trip to Juneau and the status of various bills affecting the City. He confirmed he would be returning to the capital city the following day and would remain there until the session had adjourned. PAGE 238 REGULAR MEETING - JUNE 22, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: A. In answer to a question from Swartz, City Engineer Tom Small stated the rip rap being placed along the beach at the corner of Ballaine Boulevard and Railway Avenue was part of the sewer contract; however, he was of the opinion that additional work would have to be done in the area. B. In answer to a question from Campbell, City Manager reported the 4th of July Creek Marine Industrial Park groundbreaking ceremonies had been postponed until some time after July 4. C. Campbell stated the City Manager had been talking about retiring and the Council should start to seriously consider the issue. He stated he did not think the City Manager should be allowed to leave in the middle of the current City projects and voiced support of doing what was necessary to retain the Manager. D. Cripps reported on a House Bill which would provide funding for the Southern Emergency Medical Services Council. He stated the bill appeared to be in trouble and, if so, the City of Seward would be adversely affected. City Manager stated he would check on the bill when he was in Juneau. E. Soriano reported the public telephone in the Harbormaster's building was out of order. He suggested that another telephone also be placed in the area. F. Soriano voiced support of Campbell's earlier comments regarding the City Manager's planned retirement and urged Council to convince Mr. Johnson to stay in his position. G. Hugli stated recently more dogs were running loose. City Manager stated the dog catcher was on vacation but something would be done about the problem. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on the teenagers speeding and parking in the middle of the downtown area. B. Bob Valdatta spoke on the funds to repair the grid in the Small Boat Harbor. He also spoke against the award of the cemetery bid, stating the contractor had done a poor job the previous year. C. Bob Valdatta spoke on the employment of a customs agent for Seward. City Manager and Mayor Hugli explained that the position was a Federal appointment and the City had no involvement in the issue. XIV. ADJOURNMENT: The meeting was adjourned at 9:21 p.m. d~J~ Raymond L. Hug Mayor '\'.'(\ "l ' PAGE 239 REGULAR MEETING - JULY 13, 1981 VOLUME 19 1. CALL TO ORDER: The July 13, 1981, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the I flag. II 1. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Gillespie, O'Brien, *Soriano and Swartz (Absent was Councilmember Cripps) Present also: City Manager Johnson, City Attorney Arvidson, Assistant City Manager Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: carried meeting It was moved by Swartz, seconded by Campbell and unanimously by all those present to approve the June 22, 1981, regular minutes as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) I C. Pam Oldow, representing the Seward Chamber of Commerce - request for funding for renovation of the Information Cache City Manager requested Council also entertain citizens' comments relative to the expenditure of $1,800,000 in State municipal assistance funds, to be spent on capital improvement projects. D. Virginia Darling IX. Ordinances and Resolutions: C. Resolutions: 4. Proposed Resolution No. 81-22, regarding the Bradley Lake hydroelectric project XII. City Manager Reports: B. Appraisal received on Lot 7, Block 1, Marina Subdivision City Manager requested that the following addition be made to the consent calendar: I 11. July 6, 1981, "Periodic Estimate for Partial Payment No.1" as submitted by Chris Berg, Inc., in the amount of $146,205 for professional services rendered June 29 to July 6, 1981, relative to the 4th of July Creek project, stream relocation contract - approve for payment and file l ~ --j PAGE 240 V. REGULAR MEETING - JULY 13, 1981 VOLUME 19 APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont' d) Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: C ATTORNEY: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: STREETS, ROADS, HIGHWAYS/ CLEARVIEW ADDN: WATER: SEWAGE TREATMENT: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: 4TH OF JULY CREEK AREA: 1. June 15, 1981, billing from Hughes, Thorsness, Gantz, Powell and Brundin in the amount of $17,163.62 for legal services rendered in May 1981, was approved for payment and filed. 2. May 29, 1981, billing from Century-Quadra in the amount of $144,599.47 for cost overruns associated with the preliminary permit phase (Phase I) of the 4th of July Creek Marine Industrial Park development, was approved for payment and filed. 3. June 6, 1981, Invoice No. 151047-2 from R & M Consultants, Inc., in the amount of $22,552.12 for work performed on the 4th of July Creek project, Nash Road extension, construction management, was approved for payment and filed. 4. June 23, 1981, invoice from Alaska Land Surveys in the amount of $1,450 for the replat of a portion of the Clearview Addition, as part of the 1977-78 street improvement project, was noted. Council approved the payment of $900, with the balance of $550 for drafting of the plat for "Clearview Replat No.2" to be held pending Kenai Peninsula Borough plat review and approval. 5. June 25, 1981, Progress Billing No.2 from Ott Water Engineers, Inc., in the amount of $16,201.88 for professional services rendered May 20 - June 13, 1981, relative to the Marathon Water Intake Hydropower project for Seward General Hospital and the City, was approved for payment and filed. 6. June 27, 1981, "Periodic Estimate for Partial Payment No.1" as submitted by Zubeck, Inc., in the amount of $45,576.20 for professional services rendered June 20- 27, 1981, relative to the Seward Skill Center sewer line, was approved for payment and filed. 7. Wilder Construction pay request received July 8, 1981, in the amount of $477,774.51 for work performed on the 4th of July Creek project, Nash Road extension, Phase II construction, was approved for payment and filed. 8. June 29, 1981, Invoice #1 submitted by Century-Quadra in the amount of $16,013.49 for professional services rendered relative to the 4th of July Creek project, south lagoon mitigation, engineering and design, was approved for payment and filed. 9. June 29, 1981, Invoice No. 1 submitted by Century-Quadra in the amount of $2,782.99 for professional services rendered relative to the 4th of July Creek project, design phase, was approved for payment and filed. 10. June 29, 1981, Invoice #4 submitted by Century-Quadra in the amount of $26,088.43 for professional services rendered relative to the 4th of July Creek project, stream relocation, Phase I-B, was approved for payment and filed. 11. July 6, 1981, "Periodic Estimate for Partial Payment No.1" as submitted by Chris Berg, Inc., in the amount of $146,205 for professional services rendered June 29 to July 6, 1981, relative to the 4th of July Creek project, stream relocation contract, was approved for payment and filed. A R R: I BUDGET: I LOC ORGS: I PAGE 241 REGULAR MEETING - JULY 13, 1981 VOLUME 19 V1. BOROUGH ASSEMBLY REPORT: None VII. PUBLIC HEARINGS: A. Public hearing was opened on the proposed Lease Agreement with Torkelson-Kellogg, Inc., for the lease of 100 acres, more or less, in the 4th of July Creek area, for construction of a coal export facility; and "Notice of Public Hearing" as published two times in the local newspaper and posted, and "Lease Agreement" dated July 7, 1981, were noted. City Manager and City Attorney spoke on the proposed lease document and Chris Sauer of Torkelson-Kellogg appeared from the audience and commented on the corporations need to enter into a contract with Usibelli for the supply of coal to the proposed facility. In answer to a question from Bob Valdatta and a comment from Willard Dunham regarding the operation of the dock facility, City Attorney stated the public hearing being conducted only concerned the lease of uplands; and, in the future when the dock was constructed, the owner would determine whether the facility was to be operated as a union or nonunion dock. No one else appeared from the audience in order to be heard and the public hearing was closed. City Manager confirmed a resolution approving the Lease Agreement would be presented for Council action on July 27. B. Public hearing was opened on the proposed allocation and expenditure of $77,000 in Federal Revenue Sharing funds and "Public Notice -Budget Hearing" as published two times in the local newspaper and posted, was noted. City Manager stated the proposed allocations as contained in the notice were incorrect and recommended the $77,000 be allocated as follows: Parks and Recreation City Clerk Police DeP artmcnt $ 33,755 13,000 30,245 He stated the proposed allocations had been taken into consideration during preparation of the initial budgets for the affected departments. No one appeared from the audience in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: (With prior notice only) A. June 11, 1981, letter from The North Pacific Rim Housing Authority (TNPRHA), Executive Director Derenty Tabios, submitting a proposal to request funding from the Department of Housing and Urban Development (HUD) in order to construct, manage and maintain a low- income rental housing project in Seward. and seeking approval from the City for the execution of an agreement which would exempt the housing project from taxation, was noted. TNPRHA representatives Robert Heasley and Doug Parry appeared from the audience, distributed a written presentation on the issue to Council and the public, and spoke and answered questions on the proposal. If the City was supportive, TNPRHA would proceed to seek funding from HUD for the project, according to Heasley and Parry. Parry called Council's attention to the standard "Cooperation Agreement" which the City would be required to sign. One of the provisions of the Agreement was a tax exemption clause whereby TNPRHA would make a payment- in-lieu-of-taxes, not to exceed 10 percent of the shelter rent. Parry stated TNPRHA was currently seeking a site for construction of the complex. City Attorney questioned the legality of exempting such projects from property taxes and stated he would have to review the Alaska Statutes in this regard. Further, he stated TNPRHA should contact the Kenai Peninsula Borough and the three agencies would benefit from a joint meeting on the issue. Following discussion regarding the standard agreement form, many paragraphs of which were not applicable to a local project such as proposed for Seward, City Attorney stated he would meet with TNPRHA representatives and draft an acceptable agreement. Hugli, with Council consent, scheduled further discussion of the issue for the July 27 meeting. () .. ') PAGE 242 REGULAR MEETING - JULY 13, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) (cont'd) BIDS/ B. July 8, 1981, letter and attached "Agreement" from William PUR AGNT:(Jerry) Blair, d/b/a Iceberg & Sun Vending, regarding the City administration's recent request that the vending machines be removed from City Hall and the Harbormaster's building, and Blair's request that the City enter into an agreement whereby he would be allowed to replace the machines in the harbor building, was noted. City Manager spoke on the recent City Hall remodeling which made it necessary for the machines to be removed. At that time, it was also discovered that the City did not have a vending machine agreement with the company and had not been receiving any revenue from the machines since October 1979. Further, City Manager stated the City receptionists, at City Hall and the harbor, were harassed by the public when the machines did not operate properly. City Manager stated after his recent contact with Blair regarding the machines, the City had received a check in the amount of $1041 as payment for placement of the machines in the City buildings. He recommended that the check not be cashed due to the fact that the City did not have an agreement with Blair during the period of time which the payment referenced. Blair and legal counsel, Raymond Gillespie, appeared from the audience and stated that removal of the machines represented a financial hardship for the small business. It was understood that there was no longer room for the machines in City Hall; however, Blair requested permission to replace the three vending machines in the harbor. Blair spoke on his maintenance and service on the machines, stating he had never received a complaint from City personnel but he was ready to respond to a telephone call within the hour. In answer to a question from Campbell, City Attorney stated he could review the proposed agreement and make any changes necessary on behalf of the City. O'Brien, with Council consent, suggested Blair furnish the harbor personnel with a small fund from which refunds could be made to customers who complained of losing money in the machines. Following discussion, it was moved by Gillespie, seconded by Swartz and unanimously carried by all those present to give the City Manager authority to enter into an agreement for these machines in the Small Boat Harbor. Campbell, with Council consent, recommended the agreement provide for quarterly payments to the City. Hugli asked for a status report in 60 days relative to the procedure of harbor personnel making refunds to the vending machine patrons. LOC ORGS: C. Letter received July 8, 1981, from Pamela Oldow, representing the Seward Chamber of Commerce, and requesting monies to renovate the Chamber of Commerce's Information Cache, was noted. Oldow appeared from the audience and voiced support of the Chamber's request for a sum not to exceed $8,500 to fund the general refurbishing needed for the Information Cache. She also voiced support of the expenditure of capital improvement funds for providing camper hookups and covered picnic areas along the 7th Avenue greenbelt. Further, she asked that the past proposal for a Salmon Derby Village in the Small Boat Harbor area be revived. BUDGET: Hugli commented that the City had received notice of the Governor's approval of an additional $1,800,000 for local capital improvement projects and requested citizen input on the expenditure of the monies. *COUNCILMEMBER SORIANO ARRIVED AT 8:30 P.M. AND THEREAFTER TOOK PART IN THE MEETING. Louis Dupree appeared from the audience and requested that the 7th Avenue greenbelt be developed with covered picnic tables and barbecue pits. Willard Dunham appeared and requested that trash cans be placed in the downtown area, that funds be allocated for a museum, that First Lake be restored, that the City install underground utilities, that another fish cleaning facility be provided in the harbor area, and that children's parks be constructed in the residential areas. Carl Hughes and Matt Chase appeared and voiced support for the construction of a recreation complex in the Forest Acres area which would provide more softball fields for the community. Donna Limbean supported the Salmon PAGE 243 REGULAR MEETING - JULY 13, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) (cont'd) BUDGET: (cont'd) Derby Village concept, to be constructed near the harbor. Tanya Dupree appeared from the audience and spoke of covered sidewalks for the downtown area. An unidentified man appeared and spoke in support of construction of a covered bandstand/stage in the greenbelt area and benches downtown. Virginia Darling spoke on the need for the City to provide off-street parking for campers in order to keep them from parking in the business block of 4th Avenue. Karen Swartz voiced support for construction of a community center. City Manager listed the administration's project recommendations as the repaving of 4th Avenue and the resurfacing of the downtown sidewalks, completion of a large portion of the 7th Avenue greenbelt, the installation of flush public toilets in the park areas, and construction of a sports complex adjacent to the schools' site or in the Forest Acres area. Following discussion, Hugli thanked everyone for their comments and stated a public hearing would be advertised and scheduled for the Council meeting of July 27 in order to receive additional public input on the allocation of the $1,800,000 in capital improvement funds. I D. Virginia Darling appeared from the audience and urged the City to institute foot patrols in the downtown area, in an attempt to curb the illegal U-turns and vandalism. City Manager stated he was opposed to foot patrols due to the cost involved. There were no Council comments on the issue. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: ELECTIONS/ 1. Copies being made available to the public and distributed ORDS: to Council, Hugli read by title only proposed ordinance regarding the exemption of municipal officers and candidates from the requirements of the State of Alaska Conflict of Interest Law, entitled: I An Ordinance Placing on the Ballot for the October 6, 1981, General Election the Issue of Exemption of City Officers from the Financial Disclosure Requirements of AS 39.50 City Attorney spoke on the State Statute which required certain elected and appointed municipal officials to file conflict of interest statements. He commented that it was envisioned by the State that small communities would find such a requirement more of a burden than a benefit and an exemption clause had been provided whereby the voters of a community could act to exempt its officials from the State law. In answer to a question, City Clerk remarked that in the past five years not one party had requested to review the statements on file. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to introduce proposed Ordinance No. 497. ELECTIONS/ 2. Copies being made available to the public and distributed ORDS: to Council, Hugli read by title only proposed ordinance regarding the exemption of municipal candidates from the requirements of the State of Alaska Campaign Disclosure Law, entitled: I An Ordinance Placing on the Ballot for the October 6, 1981, General Election the Issue of Exemption from the Campaign Disclosure Requirements of AS 15.13 City Attorney stated the ordinance was similar to the previously proposed ordinance; however, AS 15.13 specifically referenced financial disclosure statements relative to a candidate's campaign expenditures. He stated the State had provided an exemption clause whereby the voters of a community could act to exempt its candidates from the State law. City Clerk confirmed that in the past five years no one had requested to review the statements on file. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to introduce proposed Ordinance No. 498. ,') , .,1 , 1-, t PAGE 244 REGULAR MEETING - JULY 13, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: SEWAGE TRTMT/ ORDS: 1. Copies being made available to the public, Hugli noted by title only the proposed City of Seward sewer use ordinance, entitled: Establishing the City of Seward Sewer Use Ordinance, Creating Chapter 24 of the Seward City Code Public hearing was opened on the proposed ordinance and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. City Attorney answered various questions from audience members Willard Dunham and Donna Limbean regarding the ordinance provisions relative to City and user liability. No one else appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 495. C. Resolutions: POLICE RES: DEPT/ by title only "Contract for entitled: 1. Copies being made available to the public, Hugli noted proposed resolution authorizing the execution of the Services" for the State's use of the City jail facilities, A Resolution Authorizing the City Manager to Enter Into an Agreement With the State Department of Public Safety for Contractual Use of the City Jail Facilities City Manager confirmed the agreement covered fiscal year 1981-82 and the $134,000 annual rate represented an increase over the previous year's fee. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-19. PERSONNEL/ 2. Copies being made available to the public, Hugli noted RES: by title only proposed resolution establishing the City Manager's salary for fiscal year 1981-82, entitled: A Resolution Establishing the Salary for the City Manager and Rescinding All Prior Resolutions in Conflict Herewith In answer to a question from Hugli, City Manager confirmed the COLA rate for the l2-month period ending May 31, 1981, had been 8 percent and, pursuant to the City Personnel Regulations, all other City employees' pay rates had been adjusted by that figure. It was also noted that the Personnel Regulations provided for an annual step increase of 2.5 percent for all general employees performing in a satisfactory manner. Hugli stated the salary rate of $4,708.08 per month represented a 10.5 percent salary adjustment for the City Manager. It was moved by Hugli, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-20. PERSONNEL/ 3. Copies being made available to the public, Hugli noted RES: by title only proposed resolution establishing the City Clerk/Personnel Officer's salary for fiscal year 1981-82, entitled: A Resolution Establishing the Salary for the City Clerk/Personnel Officer and Rescinding All Prior Resolutions in Conflict Herewith PERS/ RES: (cont'd) I ELECTRIC/ RES: CITY HALL: I I 'j I, : I ~;.. -. 1. ~ PAGE 245 REGULAR MEETING - JULY 13, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) Hugli noted the salary rate of $3,075.25 per month represented a 10.5 percent salary adjustment for the City Clerk/Personnel Officer. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-21. 4. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution regarding the Bradley Lake hydroelectric project, entitled: A Resolution Supporting the Acquisition of Power From the Bradley Lake Hydroelectric Project City Manager voiced support of the resolution which requested that Seward be allocated 30 percent of the power generated from the Bradley Lake project. He stated the hydroelectric project was scheduled for completion in 1987. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-22. X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: A. City Manager spoke on the need for additional City office space and stated the City had requested proposals to renovate the small structure north of City Hall for use by the Parks and Recreation Department. Only one bid had been received for the project--as submitted by Dean Williams, d/b/a Wells Built Homes, Inc., in the amount of $30,736. The bid proposal was noted for Council information. Also noted was a letter dated July 6, 1981, from John Gillespie, d/b/a Seward Real Estate Company, offering 300 square feet of office space in the Phoenix Building at $350 per month, including heat and utilities. City Manager stated Seward Real Estate Company also had 400 square feet available at $375 per month. He recommended Council approve renting the 400 square feet for a period not to exceed six months, and in the interim a decision would be made on long-term office space. In answer to a question from Hugli, City Attorney replied it was not necessary to request rental proposals from other sources at this time since the request was only for a short term. Following discussion, it was moved by Soriano, seconded by Swartz and carried as follows to authorize the City Manager to enter into a contract with Seward Real Estate Company to rent an office of 400 square feet at $375 per month, for a period not to exceed six months: Ayes: Noes: Abstain: Absent: Campbell, Hugli, O'Brien, Soriano and Swartz None Gillespie Cripps XI1. CITY MANAGER REPORTS: PERSONNEL: A. City Manager requested authorization to create a new position of Construction Engineer/Manager. He stated a temporary employee now filled the position for the purpose of assisting with the administration of the numerous City contracts and projects. He confirmed the employee would be paid out of the administrative fees for the various projects and the position would terminate when those funds were no longer available. For this reason, the City Manager confirmed he was not requesting a budget adjustment. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to hire a project engineer based upon the City payrolls. "1~ PAGE 246 REGULAR MEETING - JULY 13, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) B. City Manager reported he had scheduled a meeting with VECO representatives on Wednesday, July 15. He stated he would be traveling to Juneau on Thursday to check on the status of the various legislative bills which contained funds for the 4th of July Creek development. Further, he reported the State had received patents from the Federal government for the lands in the 4th of July Creek area. In conclusion, City Manager requested permission to take three weeks' vacation; no Council objection was voiced. MARINA SUB' C. July 6, 1981, appraisal report from Appraisal Company of Alaska, submitting a fair market rental rate of $.2792 per square foot per year for City-owned Lot 7, Block 1, Marina Subdivision, was noted. City Manager reported the parcel had reverted to the City in February following Council's foreclosure on the previous leaseholder. With Council consent, City Manager requested authorization to proceed with requests for proposals for private development of the parcel. XIII. COUNCIL DISCUSSION: A. Campbell referenced a copy of the Kenai Peninsula Borough's travel voucher which had been distributed to Council and stated the City's travel and mileage rates were no longer ,adequate at $.20 per mile for a personal vehicle. He suggested the mileage allowance be increased to $.25 and requested that the item appear on the Council agenda for July 27. City Manager confirmed the City's mileage rates had not been adjusted since 1977. B. Campbell reported on a complaint he had received about water bubbling up around a manhole in the Forest Acres area and backing up onto private property. City Manager stated he had been informed of the problem only that afternoon and the situation was being investigated. C. O'Brien listed his project preferences for the expenditure of the State municipal assistance funds: expansion of the Forest Acres campground, construction of an additional campground, construction of an additional covered fish cleaning rack in the harbor area, relocation of the Small Boat Harbor gas float, construction of an additional launching ramp in harbor, development of the 7th Avenue greenbelt with relocation of the City pole yard and sand piles, pavement of the North access road into the Forest Acres area and the Airport access road, replacement of the existing four inch water main servicing the north side of Dairy Hill. D. Hugli reported approximately 13 officials from Seward's Sister City of Obihiro, Japan, were expected in town during the week and had requested an opportunity to meet the Councilmembers at 11:00 a.m. on Wednesday, July 15. XIV. CITIZENS' DISCUSSION: A. City Attorney responded to a question from audience member Michael Epstein regarding proposed Ordinance No. 497 and 498. He read in full City Code Sec. 2.20.060 (b) which addressed the issue of a Councilmember's conflict of interest and he stated the provision would be effective even if the local voters elected to exempt local officials from the State conflict of interest and campaign disclosure requirements. B. Brent Whitmore appeared from the audience and spoke in support of exempting local officials from the State conflict of interest and campaign disclosure reporting requirements due to the high administrative costs involved. Whitmore also spoke on the Sister City exchange program schedule for the summer. C. Willard Dunham appeared from the audience and urged the Council to appoint a committee to work in conjunction with other groups throughout the State on the Alaska '84 celebration. Dunham also suggested that the City alleviate its office space problems by constructing a public safety building. I I I '! , , PAGE 247 REGULAR MEETING - JULY 13, 1981 VOLUME 19 XIV. CITIZENS' DISCUSSION: (cont'd) D. Karen Swartz stepped from the dais and, speaking as an audience member, voiced support of the construction of low-income rental units in the Seward area. She stated that in her position as a health outreach worker she had seen the living conditions of numerous individuals and families and it was apparent that clean, safe, affordable housing units were a vital necessity for the community. XV. ADJOURNMENT: The meeting was adjourned at 10:17 p.m. ( IJ Hugli (' -r fl ) ~/, Raf;onc0L. Mayor J C PAGE 247 REGULAR MEETING - JULY 27, 1981 VOLUME 19 I. CALL TO ORDER: The July 27, 1981, regular meeting of the Seward City Council was called to order at 7:34 p.m. by Vice Mayor Gillespie. II. OPENING CEREMONY: Councilmember O'Brien led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Cripps, O'Brien and Swartz (Absent, with Council consent, were Mayor Hugli and Councilmembers Campbell and Soriano) Present also: Assistant City Manager Schaefermeyer, City Attorney Arvidson and City Clerk Shanley INTRODUCTIONS: Brent Whitmore appeared from the audience and stated that the summer exchange students had arrived from Seward's Sister City of Obihiro, Japan, and the four young people were present in the audience. Takafumi Mori, Noriko Maeno, Mayumi Omiya and Fumihiko Hayashi introduced themselves to the Council. The Seward students selected to travel to Obihiro as part of the exchange program were also present in the audience and introduced themselves. They were: Susan Anderson, Kris Erchinger, Richard Simpson and Tulla Wright. IV. APPROVAL OF MINUTES: carried meeting It was moved by Swartz, seconded by O'Brien and unanimously by all those present to approve the July 13, 1981, regular minutes as written. ~ '~ PAGE 248 REGULAR MEETING - JULY 27, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: were no O'Brien regular actions Following the Assistant City Manager's confirmation that there changes to the agenda, it was moved by Swartz, seconded by and unanimously carried by all those present to approve the meeting agenda and consent calendar as presented and the following were taken: MARINA SUB: 1. July 6, 1981, Invoice No. 8924 in the amount of $500, from Appraisal Company of Alaska for the appraisal of Lot 7, Block 1, Marina Subdivision, was approved for payment and filed. PLANNING & ZONING: 2. July 15, 1981, letter of resignation from Advisory Planning and Zoning Commissioner Thomas McKinney was noted and accepted, and the City Clerk was directed to advertise the commission vacancy. V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of June 21, 1981. Cripps distributed a draft resolution which supported the prohibition of the sale and use of firecrackers in the Kenai Peninsula Borough. Schaefermeyer confirmed that a similar resolution had been presented to the Borough Assembly and he stated he would supply a copy to Council. Cripps stated he differentiated between fireworks displays as controlled by knowledgeable people, versus firecrackers. Gillespie, with Council consent, requested the resolution be placed on the August 10 Council agenda and, prior to that date, the administration present the resolution to the Chamber of Commerce for its reaction. VII. PUBLIC HEARINGS: BUDGET: A. Public hearing was opened on the expenditure of approximately $1,800,000 in State municipal assistance funds, to be expended on local social services and/or capital projects and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. Assistant City Manager reported that due to the Governor's partial veto of the subject bill, Seward's allocation was estimated at $1,437,000-- $974,000 for fiscal year 1981-82 and $463,000 for fiscal year 1982-83. No one appeared from the audience in order to be heard and the public hearing was closed. Gillespie confirmed that the Council had conducted an informal public hearing at the July 13 meeting and had received numerous citizens' suggestions for expenditure of the funds. Swartz stated her recommendation was for construction of a convention center and she hoped the City would proceed in that direction. Gillespie supported expenditure of the funds for projects which would directly benefit the local residents of Seward, rather than projects oriented mainly towards the tourist. VIII. CITIZENS' DISCUSSION: (With prior notice only) None IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: BUILDING DEPT/ ORDS: 1. Copies being made available to the public, Gillespie noted by title only proposed ordinance enacting the 1979 editions of the Uniform Building Code and the Uniform Code for the Abatement of Dangerous Buildings, entitled: An Ordinance Relating to Buildings, Repealing and Re-enacting Sections 6-1 and 6-2 of the Seward City Code BUILDING DEPT/ ORDS: (con t ' d) I BUDGET/ RES: BUDGET/ RES: I 4TH OF CREEK/ RES: I PAGE 249 REGULAR MEETING - JULY 27, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: (cont'd) Public hearing was opened on the proposed ordinance and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. No one appeared from the audience in order to be heard and the public hearing was closed. It was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to enact Ordinance No. 496. C. Resolutions: 1. Copies being made available to the public, Gillespie noted by title only proposed resolution amending the City budget for fiscal year 1981-82 by the transfer of funds from Roads and Streets to Parks and Recreation, entitled: A Resolution Amending the 1981-82 Fiscal Year Budget by Transferring Funds From the Roads and Streets Budget to the Parks and Recreation Budget Assistant City Manager spoke on the transfer of $6,500 to partially fund the Teen Center function of the Parks and Recreation program. Following discussion, it was moved by Swartz, seconded by O'Brien and unanimously car- ried by all those present to approve Resolution No. 81-23. 2. Copies being made available to the public, Gillespie noted by title only proposed resolution amending the City budget for fiscal year 1981-82 by the appropriation of $77,000 in Federal Revenue Sharing funds, entitled: A Resolution Amending the 1981-82 Fiscal Year Budget by Appropriating Funds from the Federal Revenue Sharing Trust Account Assistant City Manager confirmed the City had conducted the required use hearings on the appropriation and expenditure of the Federal funds and the anticipated allocations had been taken into consideration in the compilation of the City budget for fiscal year 1981-82. He commented on the appropriations to the three City departments--Parks and Recreation, for funding the Teen Center operation; City Clerk/ Personnel Department, for funding the purchase of word processing equipment; and the Police Department, for salaries. O'Brien stated he would vote in support of the resolution but did not wish to see any additional monies allocated to the Police or Parks and Recreation Departments during the year. Following discussion, it was moved by O'Brien, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 81-24. JULY 3. Copies being made available to the public, Gillespie noted by title only proposed resolution approving the Lease Agreement with Torkelson-Kellogg, Inc., for the lease of approximately 100 acres in the 4th of July Creek area for construction of a coal export facility, entitled: A Resolution of the City Council of the City of Seward, Alaska, Leasing Certain Land to Torkelson-Kellogg, Inc. City Attorney spoke on the proposed Lease Agreement and confirmed that the required public hearing had been held by Council on July 13. Following discussion, it was moved by Swartz, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 81-25. RECESS: The meeting was recessed at 8:20 p.m.; reconvened at 8:30 p.m. ,) !~ (j 4TH OF CREEK/ RES: O.T. : BUDGET: PAGE 250 REGULAR MEETING - JULY 27, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) JULY 4. Copies being made available to the public, Gillespie noted by title only proposed resolution waiving the public bid procedure relative to the VECO Dock Permit at the 4th of July Creek Marine Industrial Park, entitled: A Resolution of the City Council of the City of Seward, Alaska, Declaring that an Appraisal and Public Bid Procedure for Operation of a Portion of the Marine Industrial Terminal is Inappropriate and Not in the Best Interests of the City of Seward City Attorney spoke on the proposed Dock Permit between the City and VECO Offshore, Inc., and stated that there were some legal questions as to whether the Dock Permit could be classified as a franchise for operation of a public utility. If the argument could be made that the VECO agreement involved such a public utility franchise, the Seward City Charter required a procedure different than that required for approval of a lease agreement. Rather than amend the Charter to accommodate the VECO agreement, the City Attorney stated he proposed the City proceed in two directions simultaneously--consider the Dock Permit a lease and proceed with the required resolutions and public hearing, the first required resolution being presented this evening; and also proceed to meet the Charter provisions for approval of a public utility franchise, which included the requirement for voter approval. He confirmed a public hearing, as well as a resolution scheduling the Dock Permit for placement on the October 6, 1981, City regular election ballot, would appear on the Council agenda of August 10. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-26. X. UNFINISHED BUSINESS: A. Revised Cooperation Agreement as requested by the North Pacific Rim Housing Authority (TNPRHA) for construction of approximately 40 HUD-funded, low-income rental housing units, was noted. City Attorney stated the form agreement as provided by HUD had been reviewed and revised for the City of Seward. Gillespie stated that with only four members present, any action on the agreement would be postponed until more Councilmembers were in attendance. He stated that one Councilmember had requested a public hearing be held on the issue prior to any action. Cripps stated he had no problem with the concept but would want to know the locations under consideration by TNPRHA. Doug Parry of TNPRHA and Charles Leo of HUD were present in the audience and available to answer Council questions. In answer to a question from O'Brien regarding the proposed sites, Parry stated that although the project was only in the application stage, the three locations being considered were at First and Adams, Fifth and Madison, and Sixth and Madison. Following discussion, Gillespie confirmed a public hearing would be scheduled for the August 10 Council meeting. X1. NEW BUSINESS: A. The Kenai Peninsula Borough's "Request for Reimbursement of Expenses", designating the payment of $.45 per mile or, or $.35 per mile with a car allowance, as the Borough's travel expense rate, was noted. Assistant City Manager stated the City Manager had recommended a rate of $.35 a mile for employees using their own vehicles on City business--increasing the allowance from $.20 per mile as established in 1977. Following discussion, it was moved by Cripps, seconded by O'Brien and unanimously carried by all those present to adopt an expenditure rate of $.35 a mile as reimbursement for City travel with the use of privately-owned vehicles. BUDGET: I PUBLIC WORKS: HARBOR: I PAGE 251 REGULAR MEETING - JULY 27, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) B. Assistant City Manager stated the City Manager had recommended a personal vehicle allowance of $200 per month and $.25 per mile-- increasing the allowance from $150 per month and $.15 per mile as established in 1978. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to set the City Manager's travel allowance at $200 per month and $.25 per mile. XI1. CITY MANAGER REPORTS: A. Draft resolution establishing the sewer use rates for the City of Seward was noted. Assistant City Manager spoke and answered Council questions on the rates presented and stated the resolution would be placed on the August 10 Council agenda for action. B. Assistant City Manager reported that Lt. Governor Miller had scheduled an August 6-7 trip to Seward and had invited the Councilmembers and their guests to attend a no-host dinner at the Harbor Dinner Club the evening of August 6. He requested that the members inform him at their earliest convenience whether they would be in attendance. He also reported on the Lt. Governor's itinerary while in Seward. C. Assistant City Manager reported that mechanical problems were being experienced with one of the City's front-end loaders and requested authorization to expend an amount not to exceed $6,000 to fund the repairs; it was so moved by Cripps, seconded by Swartz and unanimously carried by all those present. D. Assistant City Manager reported that the 1980 Legislature had appropriated $365,000 to the City of Seward for repairs in the Small Boat Harbor; $31,000 had been recently transferred to the City to fund repairs to the grid and maintenance for the Harbormaster's building, including restrooms renovation and painting. He reported that the City had requested bids for the grid repair and the sole bid received from Sandstrom and Sons had been opened on July 24. He stated that although the $9,400 bid had been much higher than the engineer's estimate, the administration was recommending the award. Following discussion, it was moved by Cripps, seconded by Swartz and unanimously carried by all those present to award the bid to Sandstrom and Sons at an amount not to exceed $9,400. BUDGET/ E. Assistant City Manager stated that Fourth Avenue was in STRTS, need of a street overlay and the administration recommended that funds RDS, HWYS: I be allocated from the $1,437,000 State municipal assistance monies for the paving. He reported that Wilder Construction had been contacted for an estimate and, in consideration of the fact that Wilder was the contractor for the Nash Road project and the equipment was already in the area, and, further, that the gravel was being provided by the City from the 4th of July Creek site, a very favorable bid had been received at $168,800. The administration requested that an amount not to exceed $250,000 be authorized as allocated from the $1,437,000 for the 4th Avenue paving project and various other paving such as the Small Boat Harbor parking lots. Following discussion, City Attorney confirmed the City Code required that the City follow a bid procedure for expenditures in excess of $1,000, except in emergencies; however, he did not feel this project could be classified as an emergency and acted upon at this time. City Engineer Small suggested that the Council authorize the administration to direct Wilder Construction to crush and stockpile enough gravel to do the project, with the anticipation of project approval at a later Council meeting. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to set aside a portion not to exceed $250,000, for street improvements within the City, to be processed through the bid procedure. Gillespie requested the Clerk place as an agenda item for the August 10 Council meeting the compilation of a priority list for allocation and expenditure of the $1,437,000 State municipal assistance funds. He stated Council might wish to schedule a work session on the subject. . ; l' ,) ,',,} " PAGE 252 REGULAR MEETING - JULY 27, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) F. Assistant City Manager distributed a Change Order on the Wilder Construction contract for the Nash Road extension project. He stated the Change Order was necessary to extend the road to Spring Creek and recommended Council approval of the $70,869.50 amount. Following discussion, Assistant City Manager stated the Change Order would have to be placed on the August 10 Council meeting for action due to the amount involved. G. City Engineer Tom Small appeared from the audience and gave a brief report on the status of the City's numerous capital projects. XIII. COUNCIL DISCUSSION: A. Swartz spoke on the tourship FAIRSEA which made a stop in Seward the previous weekend. She stated she had heard numerous comments from the passengers about the friendly reception they received in Seward. Gillespie displayed a plaque presented to the City from the FAIRSEA captain. B. Cripps spoke on the vandalism problem in the Harbormaster's building and asked that other ways be investigated for resolution of the incidents rather than locking the building and showers at 5:00 p.m. O'Brien voiced support for Cripps' concerns and questioned if staff shifts could be adjusted to allow the building to stay open later in the evening, especially during Salmon Derby. Gillespie suggested a patrolman could be given a key to the building and lock it up in the evening. Assistant City Manager reported plans were being made to keep the building open from 6:00 a.m. to 11:00 p.m. during the Derby. O'Brien stated he would like to see the City develop a long-term solution to the problem. C. In answer to a question from O'Brien, Assistant City Manager spoke on the proposed coal export facility to be located in Anchorage and the effect the demise of that proposal would have on Seward's plans with Torkelson-Kellogg. D. In response to a question from O'Brien, Assistant City Manager stated the 4th of July Creek ground breaking ceremonies had been tentatively rescheduled for the following month. E. Gillespie referred to the July 21, 1981, letter received from Dawson & Associates regarding lobbying services for the 1982 legislative session. He spoke in support of Dawson's services and asked that the item be placed on the Council agenda of August 10, 1981. XIV. CITIZENS' DISCUSSION: A. audience and antennas for Public Works reported that repair of the Foreman Galen Albertson appeared from the the City was still waiting for receipt of the Channel 9 translator. B. Tom Reese appeared from the audience and asked various questions relative to the coal export facility and other City projects. XV. ADJOURNMENT: ~ ::; ~ ~ \loA ne E. Shilnley, oeJ#; ~ City ,.Clerk , iJ ~, ' -, ,0' :;1'_' ~;1,.ty Sea~:' ,:J '; , ,..:"~: ..'I C - r\ \.~\ f ~,~"',- _' , F fe.'... ,< ,,.,. ~~:,;;:;.: ~w..-:!.:~,';,1~ was adjourned at 9:52 p.m. ,l " '~ ,...../, PAGE 253 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 I. CALL TO ORDER: The August 10, 1981, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. I III. R~L CAll: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien and Swartz (Absent was Councilmember Soriano) Present also: City Manager Johnson, Assistant City Manager Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: carried meeting It was moved by Gillespie, seconded by Campbell and unanimously by all those present to approve the July 27, 1981, regular minutes as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGE}IDA: City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) A. Robert Lincoln and Reid Nay - transient merchant ordinance I XI. New Business: E. Proposed agreement with Ott Water Engineers to design the water system for the grain terminal to be constructed near the Alaska Railroad dock F. Proposed contract with Design Group, Inc., for design of the Small Boat Harbor building improvements as funded by the State G. Proposed contract with R & M Consultants for design of the 4th Avenue street improvements H. Seward General Hospital request for advance funds in the amount of $30,000, in anticipation of the receipt of State revenue sharing funds in October Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: FINANCE: 1. The Finance Department's list of Accounts Payable for July 1981, totaling $25,168,516.15 was approved for payment and filed. I C ATTORNEY: 2. July 28, 1981, bill submitted by Hughes, Thorsness, Gantz, Powell & Brundin for legal services rendered through June 30, 1981, totaling $16,099.07, was approved for payment and filed. (")f J'j , .;. PAGE 254 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Don McCloud appeared from the audience, gave a verbal report, and answered audience questions on the Assembly meeting of August 4, 1981. Sara Horrell appeared from the audience and distributed a petition bearing 36 signatures of local residents in support of the "Position Statement Re: Responsibilities and Parameters of Borough Government". Horrell, Ruth McHenry and Jan Trettner all questioned Borough Assembly representative Darryl Schaefermeyer's affirmative vote relative to the "informed consent" ordinance on abortions, stating that Schaefermeyer represented the Seward area population and his vote was contrary to the Borough Attorney's recommendation and statement that the ordinance would probably not be upheld in a court of law. Horrell requested the Council approve a resolution in support of the position statement, requesting that the Borough limit its scope to those functions outlined in the State Statutes. Following discussion, it was moved by Gillespie, seconded by Swartz and unanimously carried by all those present to direct the administration to draft a resolution, using the position statement as an outline and guide. VIr. PUBLIC HEARINGS: 4TH OF CREEK AREA: JULY A. Public hearing was opened on the proposed 4th of July Creek Marine Industrial Park Dock Permit with VECO Offshore, Inc.; and "Notice of Public Hearing" as published two times in the local newspaper and posted, and the draft "Dock Permit" were noted. No one appeared from the audience in order to be heard and the public hearing was closed. ORIGINAL B. Public hearing was opened on the proposed Cooperation TOWNSITE: Agreement with The North Pacific Rim Housing Authority (TNPRHA), to provide for the construction of approximately 40 HUD-funded low-income rental housing units; and "Notice of Public Hearing" as published two times in the local newspaper and posted, and the draft "Cooperation Agreement" were noted. No one appeared from the audience in order to be heard and the public hearing was closed. In answer to various questions from O'Brien, City Manager stated the City Attorney had rewritten the agreement; however, in the absence of the attorney, he could not answer specific questions on various provisions of the agreement. Doug parry of TNPRHA and Harvey Springer of HUD introduced themselves from the audience and stated they were available to answer Council questions. VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Robert Lincoln and Reid Nay appeared from the audience and spoke against the City's transient merchant ordinance, requiring the operators of a mobile food vending unit to post a $5,000 faithful performance bond and to pay a license fee of $50 per day or $2,000 per year in order to operate within the City. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: ELECTIONS/ ORDS: by title State of 1. Copies being made available to the public, Hugli noted only proposed ordinance regarding local exemption from the Alaska Conflict of Interest Law, entitled: An Ordinance Placing on the Ballot for the October 6, 1981, General Election the Issue of Exemption of City Officers From the Financial Disclosure Requirements of AS 39.50 '!. "I PAGE 255 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: (cont'd) I ELECTIONS/"Notice of Public Hearing" as published two times in the local newspaper ORDS: and posted was noted. Don McCloud appeared from the audience and spoke (cont'd) in support of the ordinance. No one else appeared from the audience in order to be heard and the public hearing was closed. Cripps voiced opposition to the ordinance, stating that elected officials and City administrative personnel should be required to file financial disclosure statements. Gillespie and Campbell voiced support for the ordinance, stating that the paperwork involved was burdensome and the public had not, in the past, taken advantage of the opportunity to review the statements as filed in the City Clerk's office. Following discussion, it was moved by Gillespie, seconded by Swartz and carried as follows to enact Ordinance No. 497: Noes: Absent: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano Ayes: ELECTIONS/ ORDS: by title State of 2. Copies being made available to the public, Hugli noted only proposed ordinance regarding local exemption from the Alaska Campaign Disclosure Law, entitled: An Ordinance Placing on the Ballot for the October 6, 1981, General Election the Issue of Exemption From the Campaign Disclosure Requirements of AS 15.13 I "Notice of Public Hearing" as published two times in the local newspaper and posted was noted. No one appeared from the audience in order to be heard and the public hearing was closed. It was moved by Gillespie, seconded by Swartz and carried as follows to enact Ordinance No. 498: Ayes: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano Noes: Absent: C. Resolutions: ORIGINAL 1. Copies being made available to the public, Hugli noted TOWNSITE/ by title only proposed resolution regarding the proposed low-rent public RES: housing project funded by HUD and administered by The North Pacific Rim Housing Authority (TNPRHA), entitled: Resolution Approving Application for Preliminary Loan for Low-Rent Public Housing I City Manager confirmed the resolution allowed TNPRHA to proceed with the financing package for the project. Swartz explained that she was employed by The North Pacific Rim, the non-profit arm of Chugach Natives, Inc., a totally separate entity from TNPRHA. She questioned if the other Councilmembers wished her to abstain from voting, but no objection was voiced to her participation in the vote on the issue. It was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 81-27. SEWAGE TREATMENT/by title only RES: entitled: 2. Copies being made available to the public, Hugli noted proposed resolution establishing the City sewer use rates, A Resolution Establishing Rates for Sewer Use It was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 81-28. ~rl~ ',:) ) PAGE 256 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) BIDS/PURCHASING 3. Copies being made available to the public, Hugli noted AGENT/ by title only proposed resolution designating a representative relative RES: to the purchase of equipment through the Alaska Surplus Property Service, entitled: A Resolution Designating City Manager Clarence E. Johnson as the Authorized Representative Relative to the Purchase of Equipment Through the Alaska Surplus Property Service It was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-29. HARBOR/ RES: 4. Copies being made available to the public, Hugli noted by title only proposed resolution regarding the operation of vending machines on City property, entitled: Approval of Contract for Vending Machine Operation It was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve Resolution No. 81-30. 4TH OF CREEK AREA/ RES: JULY 5. Copies being made available to the public, Hugli noted by title only proposed resolution amending Resolution No. 80-14 and authorizing payment for the real property taken by eminent domain from Virginia Darling for the 4th of July Creek area development, entitled: A Resolution of the City Council of the City of Seward, Alaska, Providing for Just Compensation to be Paid for Property Owned by Virginia Darling ,City Manager confirmed the City Attorney had negotiated a settlement totaling $68,000 for the purchase of approximately 7.644 acres of land owned by Virginia Darling and taken for the 4th of July Creek development. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to approve Resolution No. 81-31. TERMINAL 6. Copies being made available to the public, Hugli noted ADDN/ by title only proposed resolution regarding an October 6, 1981, City ELECTIONs/regular election bond proposition for the development of the Terminal RES: Addition, entitled: A Resolution Providing for the Submission to the Qualified Electors of the City of Seward, Alaska, the Question of the Authorization of the Issuance of $5,200,000 of General Obligation Bonds to Finance the Subdivision of the Terminal Addition to the Original Townsite of the City of Seward and Make Other Improvements, at the Regular Election to be Held on Tuesday, October 6, 1981 City Manager reported that due to the reimburseable expenses from the Department of Environmental Conservation and the Environmental Protection Agency for sewer and water lines, it was anticipated that not all of the bonds would be issued. He confirmed the bonds, although a general obligation issue, would be paid for from the proceeds of the sale of the parcels. Following discussion, it was moved by Swartz, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 81-32. I I I PAGE 257 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4TH OF JULY 7. Copies being made available to the public, Hugli noted CREEK by title only proposed resolution regarding placement of the proposed AREA/ VECO Dock Permit on the October 6, 1981, City regular election ballot, ELECTION/entitled: RES: A Resolution Providing for the Submission to the Qualified Electors of the City of Seward, Alaska, for Approval, the Dock Permit Agreement Between the City of Seward and VECO Offshore, Inc., for the Operation of a Portion of the Public Port Facility to be Built on Resurrection Bay in the Vicinity of 4th of July Creek It was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 81-33. X. UNFINISHED BUSINESS: None RECESS: The meeting was recessed at 8:57 p.m.; reconvened at 9:06 p.m. X1. NEW BUSINESS: LEG REPS: A. July 21, 1981, letter from Dawson & Associates, proposing to act as the City's legislative consultant and lobbyist for the 1982 Legislative Session (through June 10, 1982), and to include pre-session work, at a total fee of $65,000, was noted. Gillespie spoke on the excellent job Kent Dawson had done for the City in the past years and supported Council approval of the lobbyist agreement. In answer to a question, City Manager explained that the City Code provided for a waiver of the bidding procedure when professional services were involved. Following discussion, it was moved by Gillespie, seconded by Campbell and carried as follows to authorize the City Manager to enter into a contract with Dawson & Associates, along the guidelines of their proposal, for the remaining portion of this year (1981) and next year (1982): Ayes: Noes: Absent: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano MARINA SUB: B. July 30, 1981, letter from Alaska Marine & Equipment, Inc., requesting approval to sub-lease Lot 7, Block 2, Marina Subdivision, to the U.S. Park Service for office facilities, was noted. City Manager and City Clerk confirmed that negotiations between the two parties had not yet been finalized. City Clerk suggested that Council request a copy of the sub-lease agreement prior to approval of the transfer and, further, that the City Attorney revise the lease agreement and omit the reference to the moorage agreement which was made part of the uplands lease with Alaska Marine. Following discussion, Hugli, with Council consent, stated no action would be taken by the Council until the matters set forth by the Clerk were resolved. 4TH OF CREEK AREA: JULY C. July 1981, Change Order for construction of the Nash Road extension to the 4th of July Creek area, as submitted by Wilder Construction in the amount of $70,869.50, was noted. City Manager stated the change order came at the request of the City due to the extension of the paving across Spring Creek. Following discussion, it was moved by Cripps, seconded by Campbell and unanimously carried by all those present to approve Change Order No.1. j.~ PAGE 258 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) MARINA SUB: D. "City of Seward, Alaska, Request for Proposals - Development of Lot 7, Block 1, Marina Subdivision" as published two times in the local newspaper and other papers in the State, was noted. City Clerk confirmed no development proposals had been received on the parcel. AK RAILROAD: E. City Manager reported the City administration was cooperating with the State of Alaska on construction of a grain terminal near The Alaska Railroad dock. He stated a new water line would need to be constructed to service the site and suggested that Ott Water Engineers-- the engineering firm performing the design work for the Mt. Marathon hydroelectric project--be retained to complete the design work at a price not to exceed $11,800. He confirmed the engineering firm had already been approved by the State of Alaska and all funds expended by the City would be reimbursed by the State. Cripps voiced objection to sole source procurement contracts and stated such were beyond the parameters of the City Code. City Manager explained the Code provision which waived the bidding process for professional services. Further, he stated Ott Water personnel were in the city doing work on the Mt. Marathon project and an hourly rate for services had been obtained. He confirmed that the administration was requesting authorization to proceed with the design engineering work; however, the project construction would be put out to bid. Following discussion, it was moved by Campbell, seconded by Cripps and carried as follows that Ott Water Engineers be empowered to design this project for not to exceed $11,800: Noes: Absent: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano Ayes: HARBOR: F. City Manager reported the State had allocated money for the refurbishing of the Harbormaster's building-the work to include interior and exterior painting and bathroom/shower renovation. He stated architectural specifications were necessary and recommended the firm of Design Group, Inc., to perform the services at not to exceed $5,000. Following discussion, it was moved by Campbell, seconded by O'Brien and carried as follows to hire Design Group, Inc., to do this project at not to exceed $5,000: Ayes: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano Noes: Absent: STREETS G. City Manager spoke on the need to resurface 4th Avenue and RDS, HwYS~ommented that Council had tentatively scheduled the project for funding from the State municipal assistance funds allocated in 1981-82. He reported that to meet bidding schedules he needed authorization to proceed with the design work and recommended R & M Consultants--the engineering firm doing the design work on the Nash Road extension project-- be retained to perform the service at not to exceed $33,500. He stated that in addition to the 4th Avenue paving, the project would include extending 4th Avenue in the harbor area to provide a paved surface for the boat lift, paving of the harbor parking lots and the City Shop lot, as well as work on the intersection of Diamond and Juniper in the Forest Acres Subdivision. In answer to a question from O'Brien, City Manager stated paving could not be done on the north access road into Forest Acres from the Seward Highway until the property ownership was resolved; the administration was continuing to work on the matter. Gillespie referenced the drainage problem in the Small Boat Harbor parking area and asked that it be corrected prior to paving. Swartz remarked that at one time the City had discussed moving the City Shop in order to allow residential development on the block between 6th and 7th Avenues; Campbell stated the plan had been abandoned due to the costs of relocating the Shop. Cripps stated that although he did not object to the projects as submitted by the administration, he objected strongly to the methods of awarding the contracts and confirmed that he would again vote in opposition to the administration's request. Following discussion, it was moved by Gillespie, seconded by Campbell and carried as follows to hire R & M Consultants to design the paving work for a figure not to exceed $33,500: PAGE 259 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 X1. NEW BUSINESS: (cont'd) STREETS, RDS, HWYS: (cont'd) Ayes: Noes: Absent: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano I S G HOSPITAL: H. City Manager requested authorization to transfer $30,000 to Seward General Hospital from the anticipated $250,000 in revenue sharing funds allocated to the Hospital but not scheduled for receipt until October. Cripps stated he derived a portion of his income from Seward General Hospital and, therefore, would abstain on any vote. It was noted that Campbell was the administrator of the Hospital. Following discussion, it was moved by Swartz, seconded by Gillespie and carried as follows that Seward General Hospital be allowed to draw against the revenue sharing funds as there is a need, not to exceed the $250,000 allocation: Ayes: Noes: Abstain: Absent: Gillespie, Hugli, O'Brien and Swartz None Campbell and Cripps Soriano XII. CITY MANAGER REPORTS: POLICE DEPT: A. City Manager reported on the transfer of the State contract for Driver Education training from the City to the Skill Center, effective July 1, 1981, and requested permission to transfer the City vehicle-- which had been leased by the State for the program--to the Skill Center for use by the program; it was so moved by Campbell, seconded by Swartz and unanimously carried by all those present. JESSE LEE HOME: B. City Manager reported there were boiler parts at the Jesse Lee Home site which were of no use to the City; however, Seward Fisheries used the same brand of boilers and could possibly salvage some of the parts. With Council consent, City Manager suggested he be authorized to allow Seward Fisheries personnel to remove the boiler parts from Jesse Lee Home. I AIRPORT: C. City Manager referred to letter dated August 6, 1981, from North Pacific Airlines, as distributed that evening to the Council, notifying the City of the deHavilland Dash-7 demonstration scheduled for September 3 in Seward. HARBOR: D. City Manager referred to letter dated August 7, 1981, from the William H. Seward Yacht Club, as distributed that evening to the Council, voicing objection to the closing hours of the Harbormaster's building. City Manager reported on the extensive vandalism being experienced in the building during evening hours and, following discussion, Hugli, with Council consent, requested that the City Manager respond to the yacht club's letter. 4TH OF CREEK AREA: JULY the for for E. City Manager reported on the ribbon cutting ceremony for Nash Road extension paving project and the ground breaking ceremony the 4th of July Creek marine industrial park, tentatively scheduled Tuesday, September 22. I F. City Manager referred to the "City of Seward Project Status" report as distributed to Council that evening and reviewed the list of projects. G. City Manager reported he would be in Anchorage the following day for a meeting with the Dow-Shell group. He confirmed he would return on Wednesday and had scheduled a meeting that day with various officials regarding Lowell Creek. TELEVISION: H. City Manager gave a verbal report on the Channel 9 translator, stating that a new antenna had been installed and the 10-watt transmitter was in the process of being replaced. i~n PAGE 260 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: BUDGET: A. Council reviewed various capital improvement project suggestions and recommendations for compilation of a priority list for expenditure of the State municipal assistance funds to be received by the City pursuant to the passage of SB 168. Assistant City Manager reported that based upon the population figure of 1843, Seward would receive $986,000 for fiscal year 1981-82. Following discussion, Hug1i, with Council consent, confirmed the City's first priority as the resurfacing of 4th Avenue and related paving projects, at an estimated price of $250,000. The second priority was agreed upon as the development of the 7th Avenue greenbelt, maintenance of the 4th Avenue Park and First Lake cleanup, at an estimated cost of $250,000. Gillespie, with Council consent, requested that the third priority be the allocation of approximately $100,000 to the beginning stages of development of a sports complex. The installation of flush toilets in the parks areas, at an estimated cost of $75,000, was established as the fourth priority. The placement of trash cans in the downtown area and throughout the city, costing approximately $2,000, was agreed upon as the fifth priority item. O'Brien asked the administration to submit a cost estimate for the relocation of the fuel docks in the Small Boat Harbor and, if the estimate was fundable out of the remaining municipal assistance funds, he requested that the project be listed as a priority item. Swartz and Campbell voiced support of preliminary planning of a convention center. O'Brien requested another fish cleaning rack be constructed in the Small Boat Harbor area and City Manager quoted an estimated price of $15,000. City Manager, with Council consent, requested the allocation of $20,000 for the repair of the downtown sidewalks. O'Brien also requested a cost estimate on replacing the existing water main servicing Dairy Hill. In answer to a question from Cripps, City Manager stated he would contact the State regarding the airport access road, specifically the condition of the road where it crosses the railroad tracks. City Manager confirmed a resolution enumerating the Council priority list for expenditure of the State municipal assistance funds would be presented to Council at its August 24 meeting. LOCAL ORGS: In reply to the letter received July 8, 1981, from the Chamber of Commerce, City Manager requested allocation of $8,500 from the Mayor and Council contingency fund for the purpose of repairing the Information Cache; it was so moved by Cripps, seconded by Campbell and unanimously carried by all those present. B. City Manager noted that the draft resolutions in the Council agenda packet regarding the sale of firecrackers in the Kenai Peninsula Borough were submitted for Council review; and, although it was not imperative to act upon the issue immediately, it should be considered at a later date. P & Z COMSN: C. City Clerk noted that no applications had been received in response to the City's advertisement noticing the vacancy on the Planning and Zoning Commission due to the resignation of Commissioner Thomas McKinney. The Clerk confirmed she would continue to advertise the vacancy. C CLERK: D. City Clerk's memo dated August 5, 1981, regarding purchase/ lease of word processing equipment, was noted. The Clerk spoke and answered Council questions on the recommended purchase of an IBM Displaywriter and lease of the CPS printer. Following discussion, it was moved by Gillespie, seconded by Campbell and carried as follows to approve the City Clerk's recommendation on the IBM equipment: Ayes: Noes: Absent: Campbell, Gillespie, Hugli, O'Brien and Swartz Cripps Soriano PAGE 261 REGULAR MEETING - AUGUST 10, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION~ (cont'd) E. August 3, 1981, letter from Governor Hammond, requesting nominations for the Alaska Coastal Policy Council, was noted. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to nominate Don McCloud to the Alaska Coastal Policy Council. I F. Swartz reported that some residences were surrounded by garbage and refuse which should be cleaned up. City Manager asked Swartz to give him a list of the locations she was referencing and the City would site the property owners. G. In response to a comment from Campbell, City Manager stated the Small Boat Harbor parking lots could not be bladed until after Salmon Derby. H. Campbell asked the administration to investigate the cost of purchasing a small mower to clean up the weeds along right-of-ways and on City property. City Manager stated he would submit a report at the next Council meeting. I. In answer to a question from Cripps, City Manager gave a status report on the Lowell Creek Diversion Tunnel. He stated the Federal government had rejected numerous requests by the City to allocate funds for repair of the tunnel. In the 1940's the City Council and administration had approved the signing of an agreement whereby the City committed itself to maintenance of the tunnel. City Manager stated he was continuing efforts to secure funding through State and Federal agencies for repair of the tunnel. XIV. CITIZENS' DISCUSSION: I A. Virginia Darling appeared from the audience and questioned why the Federal government would be obliged to keep a harbor dredged year after year but not maintain a flood diversion tunnel as constructed by a federal agency. City Manager stated the Federal officials continued to reference the agreement signed by City officials in the 1940's regarding local maintenance of the facility. B. Virginia Darling, Garry LeFlore, Lori Leary and Karen Swartz, downtown merchants, appeared from the audience and spoke against the recent occurrences of vandalism in the area. All supported a police foot patrol to try to control the problem. Bob Valdatta appeared and recommended that the City videotape 4th Avenue. Following discussion, City Manager stated he would work with the Police Chief on the problem and report back to Council. C. An unidentified man appeared from the audience and stated that the beach access road on the east side of the Bay had been barricaded. City Manager stated he would investigate the situation; however, the area was private property and the City had no control over the matter. D. Donna Limbean appeared from the audience and invited the Councilmembers and City administration to tour the Icicle processing barge currently in the Bay. She asked that all interested be at the City Dock at 7:00 p.m. on Tuesday, August 11, for transport ion to the barge. I XV. ADJOURNMENT: ",1 \' Lfl:rf;JJIX:l0'<~~g I' , ,::IThl!~t~~~ was adjourned at 11:03 p.m. , ."~ I \ (City Seal) " /':/ o~ . _.r<;. 7 , R~Y(~L. Mayor ,j ,)/(~ Hugli 1 "(:' ~ PAGE 262 REGULAR MEETING - AUGUST 24, 1981 VOLUME 19 1. CALL TO ORDER: The August 24, 1981, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hugli. 11. OPENING CEREMONY: flag. Councilmember Soriano led the pledge of allegiance to the III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Cripps, Campbell, Gillespie, O'Brien, Soriano and Swartz Present also: City Manager Johnson, City Attorney Arvidson, Assistant City Manager Schaefermeyer and City Clerk Shanley PROC: PROCLAMATION: At the request of the Mayor, City Clerk read in full a Proclamation declaring September 1-7, 1981, as National Bowling Week in Seward. IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Soriano and unanimously carried to approve the August 10, 1981, regular meeting minutes as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 5. Proposed Resolution No. 81-38, accepting two grants from the State of Alaska for the 4th of July Creek Marine Industrial Park XII. City Manager Reports: A. Extension of the Agreement between the City of Seward and The Alaska Railroad to provide police protection of the Railroad's facilities in Seward B. "Contract Change Order" No. 5 as submitted by Brown and Associates, in the amount of $8,224.23 for work related to the sewage treatment project C. "Contract Change Order" No. 6 as submitted by Brown and Associates, in the amount of $37,840, for work related to the sewage treatment project D. Authorization to engage legal counsel for the purpose of negotiations with Chugach Electric Association City Manager requested an Executive Session be held immediately following completion of the agenda items, in order to discuss an issue of monetary significance which might have an impact on the finances of the City. It was moved by Soriano, seconded by Swartz and unanimously carried to meet in Executive Session following the regular meeting. Following discussion, it was moved by Swartz and seconded by Soriano to approve the regular meeting agenda as amended. It was noted that there were no consent calendar items. There being no objections voiced, the regular meeting agenda was approved as amended. I /.... \).) PAGE 263 REGULAR MEETING - AUGUST 24, 1981 VOLUME 19 VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of August 18, 1981. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: ELECTRIC/ 1., 2., 3. Copies being made available to the public, FIRE/ Hugli noted by title only proposed ordinances updating the City Code ~j~TER/ references to the 1981 edition of the National Electrical Code, the 1979 ORDS: edition of the Uniform Plumbing Code, and the 1979 edition of the Uniform Fire Code, with the following titles: I 4TH OF CREEK AREA! RES: I An Ordinance Relating to Electricity, Repealing and Re-Enacting Section 9-1 of the Seward City Code An Ordinance Relating to Plumbing, Repealing Chapter 18 and Creating Sec. 22-1.1 of the Seward City Code An Ordinance Relating to Fire Prevention, Repealing and Re-Enacting Section 11-1 of the Seward City Code It was moved by Gillespie, seconded by O'Brien and unanimously carried to introduce proposed Ordinance No. 499 (Electricity), Ordinance No. 500 (Plumbing), and Ordinance No. 501 (Fire Prevention), with a public hearing dated scheduled for September 28, 1981. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: JULY 1. Copies being made available to the public, Hugli noted by title only proposed resolution approving the Dock Permit with VECO Offshore, Inc., entitled: A Resolution of the City Council of the City of Seward, Alaska, Authorizing a Dock Permit to VECO Offshore, Inc., Subject to Approval by the Qualified Electors of the City of Seward, Alaska City Manager noted a revised copy of the resolution had been distributed to Council prior to the meeting. He commented that the previous resolution referred to VECO Maritime, Inc., a proposed subsidiary company of VECO Offshore, Inc. City Attorney explained that since all public hearing notices had referenced "VECO Offshore, Inc.", it was preferable to continue with that designation. He stated the resolution provided for an effective date following 30 days' posting and publication, and subject to approval of the Dock Permit by the qualified electors of the City of Seward at the regular election scheduled for October 6, 1981. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried to approve Resolution No. 81-34. ~rA PAGE 264 REGULAR MEETING - AUGUST 24, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) ORIGINAL TOWNSITE/by title RES: with The 2. Copies being made available to the public, Hugli noted only proposed resolution approving the Cooperation Agreement North Pacific Rim Housing Authority (TNPRHA), entitled: A Resolution of the City Council of the City of Seward, Alaska, Approving a Cooperation Agreement Between The North Pacific Rim Housing Authority and the City of Seward City Manager stated Doug Parry, representing TNPRHA, was present in the audience to answer Council questions. Swartz indicated that although she worked for the North Pacific Rim, TNPRHA was a separate entity from her employing agency, the Mt. Marathon Health Outreach Program. She stated she would abstain from voting if there were any Council objections; no objections to Swartz's participation in the vote on the issue was voiced. It was moved by Gillespie, seconded by Campbell and carried as follows to approve Resolution No. 81-35: Ayes: Campbell, Cripps, Gillespie, Hugli, Soriano and Swartz None None O'Brien Noes: Absent: Abstain: K P BOROUGH/ 3. Copies being made available to the public, Hugli noted RES: by title only proposed resolution regarding the scope of powers of the Kenai Peninsula Borough Assembly, entitled: A Resolution Regarding the Responsibilities and Parameters of the Kenai Peninsula Borough Assembly City Manager stated that he did not feel passage of the resolution would serve any positive purpose and urged Council defeat the issue. Gillespie, Swartz and Cripps voiced support for taking some action and having a record of the Council's position. Hugli voiced concern that the resolution would cause more of a negative impact than a positive. Campbell stated he would urge the Borough Assembly representatives from the Seward area to introduce an ordinance which would require that the Borough Administration receive Assembly concurrence on any legal appeals of Borough ordinances prior to the expenditure of taxpayers' dollars. Following discussion, it was moved by Cripps, seconded by Swartz and carried as follows to approve Resolution No. 81-36: Ayes: Noes: Absent: Campbell, Cripps, Gillespie, O'Brien and Swartz Hugli and Soriano None BUDGET/ RES: 4. Copies being made available to the public, Hugli noted by title only proposed resolution regarding the allocation of State municipal assistance funds pursuant to the passage of SB 168, entitled: Resolution Identifying the Capital Projects and the Amount Allocated to Each Project in Accordance with HCS CSSB 168 (Finance), 1981 Session City Manager explained the allocation of $986,005 in State municipal assistance funds for various capital improvement projects as set forth in the resolution. Gillespie objected to the monies being spent for improvements in the harbor area, stating that the patrons of the harbor should bear the costs of such improvements as relocation of the fuel dock. City Manager confirmed that the project list could be adjusted in the future; however the administration had to meet a September 3 deadline for initial submittal of the project list to the State in order to begin receiving funds. Following discussion, it was moved by Swartz, seconded by O'Brien and unanimously carried to approve Resolution No. 81-37. 4TH OF CREEK AREA/ RES: I 4TH OF CREEK AREA: SEWAGE TIT: SEWAGE TRTMT: I PAGE 265 REGULAR MEETING - AUGUST 24, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) JULY 5. to Council, Hugli acceptance of two July Creek Marine Copies being made available to the public and distributed read by title only proposed resolution regarding the State grants, totaling $13,725,000, for the 4th of Industrial Park development, entitled: Resolution Approving the Receipt of Two Municipal Assistance Grants From the State of Alaska for the Fourth of July Creek Industrial Park Following discussion, it was moved by O'Brien, seconded by Campbell and unanimously carried to approve Resolution No. 81-38. X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: JULY A. August 14, 1981, letter from Century-Quadra engineers, recommending the award of the contract for mitigation improvements to the south lagoon in the 4th of July Creek area to low bidder Wilder Construction, at $313,375, was noted. It was moved by Gillespie, seconded by Swartz, and unanimously carried to grant Wilder Construction, the low bidder, the bid for the mitigation improvements, in the amount of $313,375, contingent upon no material changes in the scope of work on the contract. XII. CITY MANAGER REPORTS: A. City Manager noted the receipt of "Contract Change Order" No.5 dated August 24, 1981, as submitted by Brown and Associates, in the amount of $8,224.23, for work related to the sewage treatment project, and recommended Council approval of the Change Order. He commented the additional work was necessary due to the recent high water runoff at Spruce Creek. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried to approve the Change Order No. 5 for the sewage treatment contract to Brown Construction at $8,224.23. B. City Manager noted the receipt of "Contract Change Order" No.6 dated August 24, 1981, as submitted by Brown and Associates, in the amount of $37,840, for work related to the sewage treatment project, and recommended Council approval of the Change Order. He commented the monies would fund the placement of gab ion baskets to protect the sewer pipe in the area of Spruce Creek. Sid Clark of Arctic Environmental Engineers, the City's engineers for the project, appeared from the audience and explained the necessity for the pipeline protection due to the unexpected heavy runoff in Spruce Creek. Cripps voiced objection to the City bearing the additional costs, stating that the problem appeared to be an engineering error and the engineer should be responsible for the work. He referred to a report which had been submitted to the City Engineer, stating the report indicated the engineering for the pipeline in the Spruce Creek area was not adequate. City Manager stated he was not aware of the referenced report but would investigate the matter and have a report for Council at the next meeting. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried to approve Change Order No. 6 for the sewer project to Brown Construction in the amount of $37,840. AK RAILROAD: C. City Manager referenced The Alaska Railroad contract with the City of Seward for police patrols of the Railroad's facilities in Seward. He stated the Railroad had requested a year's extension of the contract, commencing October 1, 1981, at the continued rate of $600 per month. In answer to a question, City Manager stated the administration had not sought additional payment due to the lack of activity in the area; however, the situation would change with operation of the grain terminal and the possible exportation of coal the following year. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried to authorize the City Manager to enter into a one year extension of the contract for security patrols of the Railroad property. 'f; () PAGE 266 REGULAR MEETING - AUGUST 24, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) C ATTORNEY/ CEA: D. City Manager reported on a supplemental electrical bill received from Chugach Electric Association (CEA), in the amount of $157,169.71 for 1979, 1980, and the first half of 1981. He explained the reason for the bill and that it was apparent that the City would have to pay the amount; however, he stated the issue again highlighted the need for a signed contract between the City and CEA. He stated the negotiated contract as approved by the Council and signed by the City in 1980 had still not been executed by CEA. The City required legal counsel in the case but City Manager reported that Hughes, Thorsness, Gantz, Powell & Brundin had represented CEA on various matters and, therefore, would not be involved as legal counsel for either party. City Attorney recommended the City retain Julian Mason as legal counsel for this case. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried to authorize the City Manager to obtain an outside attorney to negotiate the Chugach Electric Association issue. E. Assistant City Manager reported on the scheduled trip to Seward by Frank Jones of The Alaska Railroad and various representatives of Sun-El and energy officials from Taiwan. F. Assistant City Manager stated Seward had been one of two communities which the Civil Aeronautics Board had selected for guaranteed scheduled air service. XIII. COUNCIL DISCUSSION: P & Z COMSN: A. "Application for the Seward Advisory Planning and Zoning Commission", as received August 17, 1981, from Douglas Capra, was noted. City Clerk stated the vacancy on the Commission had been advertised for a period of weeks and Capra's application was the only one received. Hugli appointed Capra to fill the vacancy on the Seward Advisory Planning and Zoning Commission. B. August 10, 1981, letter from the Municipality of Anchorage regarding the Alaska Rail Belt Conference, was noted. Campbell, the City representative to the conference, stated that although he did not know how much benefit the City would derive from being a member of the conference, he believed that the City should participate in the organization in order to protect local interests. C. August 13, 1981, letter from the State Department of Transportation and Public Facilities, requesting submittal of a priority list for local service roads and trails projects, was noted. City Manager, with Council consent, requested the item be continued until October. D. July 9, 1981, letter from Obihiro Mayor Tamoto, requesting Seward's participation in the 1982 agricultural and foresty exposition, was noted. Hugli requested the City Clerk send copies of the letter to Brent Whitmore and Bob Richardson due to their continued involvement in the Sister City program. Council Clerk. carried E. City Clerk distributed memo dated August 24, 1981, requesting confirmation of the appointment of Linda Murphy as Deputy City It was moved by Cripps, seconded by Swartz and unanimously to confirm Linda Murphy as Deputy City Clerk. C CLERK: XIV. CITIZENS' DISCUSSION: A. Virginia Darling appeared from the audience and questioned the status of police foot patrols in the downtown business district. City Manager stated unscheduled foot patrols were being conducted and arrests had been made. B. Virginia Darling spoke on the plans to develop the 7th Avenue Greenbelt and she voiced concern regarding maintenance of the grounds. She supported the construction of a convention center rather than the Greenbelt development. I I I ') ;. :J' I . PAGE 267 REGULAR MEETIING - AUGUST 24, 1981 VOLUME 19 XIV. CITIZENS' DISCUSSION: (cont'd) C. Virginia Darling spoke on the state of disrepair of the dock located north of the 4th of July Creek area and asked that the City abate the nuisance. City Attorney reported he was trying to work out an amenable solution to the problem with owner Eugene Hundley. D. Mike Meehan appeared from the audience and asked that the City Council draft a letter in support of the Iditarod National Historical Trail Management Plan as compiled by the Bureau of Land Management. Following discussion, Hugli directed Meehan to submit a copy of the draft management plan to the City Clerk for Council review. XV. ADJOURNMENT: The meeting was adjourned at 9:18 p.m. issue of the to discuss an on the finances / } ~. Raymonq)L. Hugli ~ Mayor 4\, PAGE 267 SPECIAL MEETING - SEPTEMBER 1, 1981 VOLUME 19 1. CALL TO ORDER: The September 1, 1981, special meeting of the Seward City Council was called to order at 12:03 p.m. by Acting Mayor Soriano. "Notice of Special Meeting" as posted and delivered to the local newspaper and radio station, was noted. II. OPENING CEREMONY: Councilmember O'Brien led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Acting Mayor Soriano; Councilmembers Campbell, O'Brien and Swartz (Absent, with Council consent, were Councilmembers Cripps and Gillespie; also absent was Mayor Hugli) Present also: City Manager Johnson and City Clerk Shanley PAGE 268 SPECIAL MEETING - SEfTEMBER 1, 1981 VOLUME 19 IV. SPECIAL ITEM: STREETS, RDS/HWYS/ BUDGET: A. City Manager reported the City had opened bids the previous day for the repaving of 4th Avenue and other related paving projects throughout the city. He commented a favorable bid had been received from Wilder Construction, and he individually listed the various schedules of projects as bid. He explained that funding for the paving was to be derived from the State municipal assistance funds; and, that Resolution No. 81-37 as approved by the Council on August 24, 1981, had appropriated $285,000 to the paving project. He stated that the engineer's estimate for the project had been $391,000 and Wilder Construction's bid totaled $339,340. Therefore, he confirmed that additional monies had to be allocated for the project and he recommended that the $139,005 as designated in Resolution No. 81-37 for the Small Boat Harbor fuel dock relocation be reallocated to the paving project, for a project total of $424,005. City Manager confirmed that the City would proceed with in-house engineering and the permitting process for the fuel dock relocation; and the project could be scheduled for State municipal assistance funding the following year. City Manager recommended Council approval of the following paving projects: Schedule Schedule Schedule 1 - 4th Avenue overlay $ 3 - Small Boat Harbor parking lots 6 - 5th & Jefferson corner repair - Juniper Street paving (Estimate - to be negotiated) - Engineering, force account work, inspections - Miscellaneous projects 139,325 123,190 12,676 55,000 44,500 TOTAL $ 49,314 424,005 City Manager requested a Council motion, authorizing the transfer of $139,005 from the proposed Harbor fuel dock relocation project to the paving project. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to authorize the change in the fuel dock monies. City Manager requested Council authorization to negotiate a contract with Wilder Construction to perform the paving projects as recommended, at a price not to exceed $424,005. Following discussion and review of the project maps by the Councilmembers, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to sign a contract with Wilder Construction for the contract schedules and miscellaneous projects as indicated, for a figure not to exceed $424,005. V. ADJOURNMENT: The meeting was adjourned at 12:18 p.m. ') Vk A ,: '~I / . o ,'~ ~l&. ";4:/;;{,{~ Charles H. Sor1ano Acting Mayor I I FINANCE: PAGE 269 REGULAR MEETING - SEPTEMBER 14, 1981 1. CALL TO ORDER: The September 14, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Gillespie. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. II 1. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Campbell, Cripps, O'Brien and Soriano (Absent, with Council consent, were Mayor Hugli and Council- member Swartz) Present also: City Manager Johnson, City Attorney Arvidson, Assistant City Manager Schaefermeyer, City Clerk Shanley and Deputy City Clerk Murphy IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the regular meeting minutes of August 24, 1981, and the special meeting minutes of September 1, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following addition be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 4. Proposed Resolution No. 81-42, requesting the receipt of State Municipal Assistance Revenue Sharing funds It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: 1. The Finance Department's list of Accounts Payable for August 1981, totaling $18,193,125.38, was approved for payment and filed. ( 2. August 24, 1981, invoice from Hughes, Thorsness, Gantz, Powell and Brundin, for legal services rendered during July, totaling $13,673.38, was approved for payment and filed. C ATTORNEY: I VI. BOROUGH ASSEMBLY REPORT: None VIr. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. , ' " VOLUME 19 t." r-. (\ /', l; PAGE 270 REGULAR MEETING - SEPTEMBER 14, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: BUDGET/ RES: 1. Copies being made available to the public, Gillespie noted by title only proposed resolution amending Resolution No. 81-37, regarding the capital projects to be funded by State Municipal Assistance monies, entitled: A Resolution Amending City of Seward Resolution No. 81-37, Identifying the Capital Projects and the Amount Allocated to Each Project in Accordance With HCS CSSB 168 (Finance), 1981 Session City Manager explained the resolution was consistent with action taken by the Council at the September 1 special meeting, eliminating the Harbor fuel dock relocation capital project and moving the allocated monies to increase the appropriation for the 1981 street paving improvement project. In answer to a question from Gillespie, City Manager stated the City would proceed with the design of the fuel dock relocation and construction would tentatively be scheduled for the following year. Assistant City Manager reviewed the various paving projects scheduled to be completed with the $424,005 in State Municipal Assistance funds. Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve Resolution No. 81-39. LOC ORGS/ 2. Copies being made available to the public, Gillespie RES: noted by title only proposed resolution approving a subcontract with Seward Life Action Council (SLAC) for administration of the Day Care Assistance Program grant, entitled: A Resolution Approving a Management Subcontract With Seward Life Action Council for Administering the Day Care Assistance Program Grant Assistant City Manager explained that Council approval of the resolution would authorize the City Manager to enter into a subcontract with SLAC to provide administrative services for the $23,448 Day Care Assistance Program grant awarded the City by the State. He reported the City had advertised for a subcontractor to provide administrative services for the grant and SLAC had been the only agency to respond. Further, Assistant City Manager explained SLAC's contractual responsibilities under the subcontract. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 81-40. SEWAGE RES: TRTMT/ noted by from the 3. Copies being made available to the public, Gillespie title only proposed resolution accepting a $37,470 grant increase State for the Skill Center sewer line project, entitled: A Resolution Accepting a Grant Increase From the State of Alaska, Department of Environmental Conservation for the Skill Center Sewer Line Project City Manager stated that due to the cost over-runs on the sewer line installation for the Skill Center, the State Department of Environmental Conservation had allocated an additional $37,470 to cover its funded portion of the project. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-41. ,. I PAGE 271 REGULAR MEETING - SEPTEMBER 14, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) BUDGET/ RES: to Council, the receipt 4. Copies being made available to the public and distributed Gillespie read by title only proposed resolution requesting of State Municipal Assistance Revenue Sharing funds, entitled: I 4TH OF CREEK AREA: 'B C WATER: I Resolution Requesting State Municipal Assistance Revenue Sharing City Manager referred to the September 3, 1981, letter from the State Department of Revenue as distributed to Council; and he explained that the State required a Council resolution requesting the monies prior to State disbursement of the funds to the local municipality. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 81-42. X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: JULY A. Change Order No.3 dated September 1, 1981, as submitted by Chris Berg, Inc., in the amount of $25,565, for the 4th of July Creek Relocation project, was noted. City Manager reported the need for the Change Order had been discussed at the September 1, 1981, special meeting. He stated the City had requested additional reinforcement of the dike in order to control the course of 4th of July Creek, and he recommended Council approval of the Change Order. Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to accept Change Order No.3 in the amount of $25,565 for the 4th of July Creek relocation project. B: B. August 21, 1981, letter from the Alcoholic Beverage Control Board, submitting the application as filed by the Van Gilder Hotel for a new hotel/motel beverage dispensary license, was noted. City Manager stated the City administration had no objection to issuance of the license and, in response to a question from Soriano, he stated that the hotel was located an acceptable distance from the nearest church, in accordance with State Statutes. Frank Irick, owner of the Van Gilder hotel, appeared from the audience and spoke in support of his request. Following discussion, it was moved by Cripps, seconded by O'Brien and unanimously carried by all those present to approve the application for the Alcoholic Beverage Control Board permit for the Van Gilder Hotel for a hotel/motel beverage dispensary license. XI 1. CITY MANAGER REPORTS: A. August 21, 1981, letter from the Corps of Engineers regarding the Lowell Creek Diversion Tunnel maintenance, was noted. City Manager reported that the Corps had rejected numerous requests by the City to provide extensive maintenance for the Tunnel, citing an agreement which had been signed by the City when the Tunnel was constructed which obligated the City to provide all future maintenance services. Assistant City Manager reported on numerous attempts to receive assistance from the Federal government, stating that it was the City's position that the Tunnel had been improperly designed initially, thus the need for extensive maintenance at the present time. Cripps stated that waiting for the Tunnel to collapse and the Creek to run through the townsite in order to receive Federal aid was not a viable solution. He urged the Council to commit the City's resources to correcting the problem. O'Brien suggested the City respond to the August 21 letter and request the Corps to provide the technical assistance necessary for permanent repair of the facility. Following discussion, City Manager stated he would contact Colonel Nunn of the Corps of Engineers regarding the matter. nr-. 'OJ PAGE 272 REGULAR MEETING - SEPTEMBER 14, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) STREETS, RDS, HWYS: B. August 13, 1981, letter from the State Department of Transportation and Public Facilities regarding Seward's projects as part of the five-year Local Services Roads and Trails Program, was noted. City Manager reported that the City's share of funding on an annual basis amounted to approximately $15,000 and recommended the funds be accumulated for a number of years and then earmarked for chip sealing the streets. Campbell suggested the Council compile a comprehensive priority list for submittal in the event that more State funds were allocated to local service roads and trails programs. He suggested the list include a road to connect the proposed Terminal Addition to Forest Acres, paving of the dump road, and a road to directly link the schools' site with the Seward Highway. Following discussion, City Manager stated the administration would compile such a project list for submittal to the State. C. August 24, 1981, letter from Senator Jay Kerttula, requesting a priority listing of project needs for Seward, was noted. City Manager stated the Council had committed the City to maintaining as its top priority the development of the 4th of July Creek Marine Industrial Park. Cripps suggested that repair of the Lowell Creek Diversion Tunnel be listed as the City's second priority. Campbell suggested airport improvements, including a terminal building, the installation of a microwave landing system, and a runway extension, be established as priorities for Seward. Following discussion, Gillespie requested the Senator's request be scheduled for further Council discussion at the September 28 meeting. RAILROAD: D. "Affidavit of Tom S. Small" dated September 8, 1981, regarding the petition filed against the State of Alaska by Representative Ramona Barnes relative to construction of the Seward grain terminal, was noted. City Manager reported on the injunction as filed by Judge Moody and the State's appeal to the Supreme Court for relief. He commented that the City had joined the State in its request to the Court and Barnes was required to file a response by September 21. SEWAGE TRTMT: E. City Manager reported on a question raised by Councilmember Cripps at a previous Council meeting relative to the culverts installed adjacent to Spruce Creek as part of the sewage treatment project. He stated the City had retained Trans-Alaska Engineering to review the plans and specifications as prepared by Arctic Environmental Engineers-- the City's engineer for the project--and had submitted the comments made by Trans-Alaska Engineering to AEE for review. Assistant City Manager explained the customary procedure which was followed and stated that the City had received acceptable comments from AEE, supporting the firm's design of the Spruce Creek culverts. F. City Manager noted the "Project Status" report dated September 10, 1981, which had been distributed to Council. He responded to specific Council questions regarding the 4th of July Creek Marine Industrial Park project. G. City Manager reported on the Maritime Conference scheduled for September 21-24 in Anchorage and asked that Councilmembers interested in attending let him know as soon as possible. XIII. COUNCIL DISCUSSION: A. August 25, 1981, letter from Capt. Daniell of the USCGC MELLON, notifying of a scheduled moorage in Seward and an open house for the local residents on October 9-10, was noted. Soriano suggested the Chamber of Commerce become involved in welcoming the vessel to Seward. Following discussion, City Manager stated he would inform the Chamber's Red Carpet Committee of the cutter's scheduled arrival. I I I PAGE 273 REGULAR MEETING - SEPTEMBER 14, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) B. September 4, 1981, letter from the Iditarod National Historic Trail Committee, transmitting the Iditarod Draft Management Plan, was noted. City Manager stated the administration would prepare a resolution in support of the draft Plan for the Council meeting of September 28. C. Campbell spoke on the poor relations which had developed between Seward and Valdez and objected to the public relations firm and legal counsel as retained by the City also representing the City of Valdez. City Attorney spoke on the involvement of his law firm with the two cities and suggested that the Councils of both municipalities get together and discuss the issues. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on various priority projects for the City. XV. ADJOURNMENT: adjourned at 8:57 p.m. ~~ Gi~"PiC;; If!? ce Mayor J ~ ----------------------------------------------------------------------------------- PAGE 273 VOLUME 19 REGULAR MEETING - SEPTEMBER 28, 1981 1. CALL TO ORDER: The September 28, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien, Soriano, and Swartz Present also: City Manager Johnson, City Attorney Arvidson, Assistant City Manager Schaefermeyer, and Deputy City Clerk Murphy IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Swartz and unanimously carried to approve the regular meeting minutes of September 14, 1981, as written. , . ,-, ~ " 'r PAGE 274 REGULAR MEETING - September 28 VOLUME 19 STREETS, ROADS, & HWYS: CITY ATTY: CITY ATTY: 4TH OF JULY CREEK AREA: V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) B. Paul B. Foutz, Price Waterhouse & Co. - City of Seward financial statements and report to management IX. Ordinances and Resolutions: C. Resolutions: 4. Proposed Resolution No. 81-46, accepting a grant offer and associated grant in- crease from the State of Alaska for the Marathon Water System Project XI1. City Manager Reports: A. Change Order No.2, dated August 1981, as submitted by Wilder Construction, in the amount of $93,803, for the Nash Road ex- tension B. Report on bids received for painting and rust-proofing of various city buildings It was moved by Gillespie, seconded by Campbell and unanimously carried to approve the regular meeting agenda as amended and the consent calendar as presented, and the following actions were taken: 1. August, 1981, statement from Metco, Inc., for Jap Creek flood control work, totalling $4,350, was ap- proved for payment and filed. 2. September 18, 1981, statement from Hughes, Thorsness, Gantz, Powell and Brundin for out-of-pocket expenses in the matter of Engineering Science vs. City of Seward, totalling $252.50, was approved for payment and filed. 3. September 18, 1981, statement from Hughes, Thorsness, Gantz, Powell and Brundin for out-of-pocket expenses in the matter of Seward Chapel vs. City of Seward, totalling $929.54, was approved for payment and filed. V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of September 15, 1981. VII. PUBLIC HEARINGS: None. VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Chris Sauer of Torkelson-Kellogg, Inc., appeared from the audience and presented an updated report on the status of the coal facility. He stated that although he is optimistic about the future of a coal facility in Seward, until a coal supplier is found, Torkelson-Kellogg cannot make any firm eommitm~nts_ or finalize agreements with exporters who might be interested in exporting from the Fourth of July Creek area. PAGE 275 REGULAR MEETING - SEPTEMBER 28, 1981 VOLUME 19 VIII. FINANCE: CITIZENS' DISCUSSION: (With prior notice only) (cont'd) B. Paul B. Foutz of Price Waterhouse & Co., appeared from the audience and reviewed the annual audit draft, copies of which had been supplied to council. He reported that the City was in a good cash position and that most of the suggestions he had made last year had now been implemented. Foutz suggested some sort of follow-up control be instituted on work orders, and that offsite storage for copies of computer master files be considered. I IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: ELEC.DPT./ 1. Copies being made available to the public, Hugli noted ORD: by title only the proposed City of Seward electrical code ordinance, entitled: An Ordinance Relating to Electricity, Repealing and Re-Enacting Section 9-1 of the Seward City Code Public hearing was opened on the proposed ordinance and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. City Manager explained that the ordinance was merely a housekeeping measure to bring the Seward City Code in line with the 1981 National Electrical Code. No one appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried to enact Ordinance No. 499. IBLDG/ 2. ORD: . by t~tle only the Copies being made available to the public, Hugli noted proposed City of Seward plumbing ordinance, entitled: An Ordinance Relating to Plumbing Repealing Chapter 18 and Creating Sec. 22-1.1 of the Seward City Code Public hearing was opened on the proposed ordinance and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. No one appeared from the audience in order to be heard, and the public hearing was closed. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried to enact Ordinance No. 500. FIRE DPT/ ORD: 3. Copies being made available to the public, Hugli noted by title only the proposed City of Seward fire prevention ordinance, entitled: An Ordinance Relating to Fire Prevention Repealing and Re-Enacting Section 11-1 of the Seward City Code I Public hearing was opened on the proposed ordinance and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. Bob Valdatta appeared from the audience to question w~y there had been no information made available to the public on how to comply with the new fire code. Hugli explained that the State Fire Inspector would inspect any building on request and outline any changes that had to be made. No one else appeared from the audience to be heard, and the public hearing was closed. Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried to enact Ordinance No. 501. I) r....-"\ ,'. 4' ~) FINANCE/ RES: LOCAL ORG/ RES: HARBOR/ RES: HATER DPT/ RES: PAGE 276 REGULAR MEETING - SEPTEMBER 28, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution authorizing signatures for the City of Seward bank account, entitled: A Resolution Authorizing Signatures for the City Bank Account and Rescinding All Previous Resolutions in Conflict Herewith City Manager noted that two signatures are required on any City of Seward check, and when two of the three authorized signers are out of town, as happened last week, the City is unable to issue checks for any purpose. He therefore requested the Deputy City Clerk be authorized to sign on the City of Seward's General Fund checking account. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried to approve Resolution No. 81-43. 2. Copies being made available to the public, Hugli noted by title only proposed resolution supporting the Iditarod Trail Management Plan, entitled: A Resolution in Support of the Iditarod National Historic Trail Management Plan City Manager noted that this resolution had been requested by council during the regular meeting of September 14, 1981. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried to approve Resolution No. 81-44. 3. Copies being made available to the public, Hugli noted by title only proposed resolution setting fees for the Seward Small Boat Harbor, entitled: A Resolution Setting Fees for the Seward Municipal Small Boat Harbor City Manager noted that the Small Boat Harbor had operated in the red last year, and the increase in fees would merely cover last year's deficit plus inflation. He also noted that the fee for pumping of boats in danger of sinking would be $10.00 per hour and the charge for towing boats would be $25.00 per boat plus labor charges. Monty Richardson appeared from the audience and asked if the rate increase would affect those people who had already paid their fees for this year. City Manager explained that while the resolution would go into effect October 8, 1981, this was for billing purposes only. The harbor department sends out its yearly bills in October for fees due in January, and a resolution was needed at this time so that the bills would go out with the new rate. Following discussion, it was moved by Cripps, seconded by Swartz and unanimously carried to approve Resolution No. 81-45. 4. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution accepting a grant offer and associated grant increase from the State for the Marathon water system project, entitled: A Resolution Accepting a Grant Offer and Associated Grant Increase from the State of Alaska Department of Environmental Conservation for the Marathon Water Sys- tem Project City Manager explained that the Marathon Water System Project was basically a hospital project that had been picked up by the City, but funding was to come totally from sources outside the City. The purpose of the project was explained by the City Manager as an upgrading of the existing line to the hospital. Following discussion, it was moved by Soriano, seconded by Gillespie and carried as follows to approve Resolution No. 81-46: I I 4TH OF JULY CREEK: I BUDGET/ HARBOR/ ELEC/ TV! SWAGE TRMT: PAGE 277 REGULAR MEETING - SEPTEMBER 28, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4. Approval of Resolution No. 81-46: (cont'd) Ayes: Cripps, Gillespie, Hugli, O'Brien, Soriano and Swartz None Campbell None Noes: Abstain: Absent: X. UNFINISHED BUSINESS: A. August 24, 1981, letter from Senator Jay Kerttula, requesting a priority listing of project needs for Seward, was noted. City Manager presented the following list for Council's approval: 1. Fourth of July Creek - $30,000,000 2. Lowell Creek Diversion Tunnel (Engineering only) - $300,000 3. Microwave landing system - $750,000 4. Runway extension - $1,000,000 Hugli questioned whether the request for the runway extension should be included since the airport is a State facility, but City Manager explained that this would be the only way for Seward to get the money allotted for that project. Cripps and Swartz were both concerned with placing the Tunnel in the number two position, feeling that if $30,000,000 was allotted for Fourth of July, the Tunnel project would be neglected. Swartz stated that she did not want to see the tunnel situation develop into a disaster before we re- ceived assistance, and asked if the monies for this project could come from some other source. Gillespie felt strongly that Fourth of July Marine Indus- trial Park should remain the City's number one priority. O'Brien suggested including a request for a new ferry dock in the list, but City Manager ex- plained that the Department of Transportation would be responsible for that, and that at this time they were trying to get a new ferry for Seward, and the money for a new dock might be forthcoming after the ferry was purchased. Hugli suggested including riprap for the beach along Seventh Avenue on the list. Following discussion, it was decided to schedule the Kerttula list for further Council discussion at the October 12 meeting. X1. NEW BUSINESS: None XII. CITY MANAGER REPORTS: A. Change Order No.2, dated August 1981, as submitted by Wilder Construction, in the amount of $93,803, for the Nash Road extension, was noted. City Manager indicated that the City had requested some of the changes, and that other changes were due to unexpected conditions encountered on the job site. He went on to explain that while the Change Order is in the amount of $93,803, the actual increase in project cost would be $87,684. Fol- lowing discussion, it was moved by Gillespie, seconded by Swartz and unanimously carried to approve Change Order No. 2 in the amount of $93,803, for the Nash Road Extension. B. City Manager noted receipt of two bids for painting and rust- proofing several buildings in the city including the Small Boat Harbor, the power plant, the lift station, and the communications building. He recommended that Council accept the low bid from Steenmeyer Corp. in the amount of $27,460 with a projected completion date of June 1982. Following discussion, it was moved by Gillespie, seconded by Campbell and carried unanimously to award the bid to Steenmeyer Corporation for the aforementioned projects in an amount not to exceed $27,460. C. City Manager reminded Council that he would need each of their signatures on the City's request for per capita Revenue Sharing. "-''-R ~ ,J A '- PAGE 278 REGULAR MEETING - SEPTEMBER 28, 1981 VOLUME 19 XII. ELECTIONS/ CC: CITY MANAGER REPORTS: (cont'd) D. City Manager asked that Council schedule a meeting on Wednesday, October 7 to count votes. It was agreed by all to meet at 4:00 p.m. on October 7, 1981 in council Chambers. XII 1. COUNCIL DISCUSSION: A. Campbell stated for the record that City Engineer does in fact have a license, this in response to rumors to the contrary that have been circulating about town. B. O'Brien asked about the status of the grain terminal. City Manager stated that the case was now before the Supreme Court, and that a decision is expected on October 1, 1981. C. O'Brien inquired about the status of Channel 9. City Manager stated that the part needed to repair the T.V. transmitter was to have been shipped on September 28, from the east coast by air, and that upon arrival in Anchorage the City would pick it up and have it installed. Hugli suggested that the City release information to the press about the status of the T.V. periodically for publication in the local newspaper. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke in favor of enacting legislation making it mandatory to install emergency lighting in public places. Mr. Valdatta also discussed the Lowell Point Tunnel issue. XV. ADJOURNMENT: was adjourned at 8:50 p.m. ,)~ (~/ IA ~~d L. HUgtY \ Mayor --------------------------------------------------------------------------------- PAGE 278 SPECIAL MEETING - OCTOBER 7, 1981 VOLUME 19 I. CALL TO ORDER: The October 7, 1981, special meeting of the Seward City Council was called to order at 4:01 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, O'Brien, Soriano and Swartz Present also: City Manager Johnson, City Clerk Shanley and Deputy City Clerk Murphy ..)-:-~) ...... . PAGE 279 SPECIAL MEETING - OCTOBER 7, 1981 VOLUME 19 IV. CANVASS OF OCTOBER 6, 1981, REGULAR ELECTION AND DECLARATION OF RESULTS: ELECTIONS/ City Clerk distributed a tally of the unofficial results of COUNCIL:the October 6, 1981, regular City election, read the total number of votes cast for each Council candidate and each proposition, and confirmed that 561 ballots had been cast with 531 being counted by the election boards; the remaining ballots were questioned or challenged ballots to be considered by the canvass board. I I I The Clerk displayed the poll books, tally sheets, and precinct voter registration lists for Seward Precinct No. 1 and 2 for review by the board. The Clerk distributed a list bearing the names of 37 electors who had requested absentee ballots. She stated the ballots issued to Margaret A. Anderson, Ruth E. Leo-Mount, James T. Potdevin and Mark C. Walker--all Seward No.2 precinct electors--had not been returned in time for the canvass. Further, she stated that the ballot issued to Robert D. Booher of Seward No.2 precinct had been returned to the Clerk's office by mail without the proper attesting signatures being affixed to the ballot envelope. The Clerk recommended that the ballots of these 5 electors be rejected and that the remaining 32 absentee ballots be approved for counting by the canvass board. It was moved by Campbell, seconded by Swartz and unanimously carried to count the 32 ballots as listed on the absentee ballot sheet. The absentee ballots as cast by the following electors were removed from their outer envelopes, shuffled, and laid aside, to be counted with the questioned/challenged ballots: Precinct No.1 Precinct No. 2 ANDERSON, Michael G. GERWER, Theodore J. III HAWKINS, Thomas T. HONEYSETT (RULE), Sandra L. HORICK, Donald V. JANSEN, Gabriel KUEHNY, Wilber H. LANDENBURGER, Eric L. LeVAN, Mel E. LEWIS, Ronnie L. LIND, Wilma A. MILLER, Paul A. OLDOW, Donald J. ROCKWOOD, Stephen K. SORIANO, Jeanine M. CAPRIO, Joseph R. DUNHAM, Meggin M. FREEMAN, Carol A. HOFSTAD, Richard T. JOHNSON, Jack V. McANERNEY, W. Lee McHENRY, Edward T. NOYES, Alfred W. NOYES, Dorothy B. OSENGA, Mabel A. ROBBINS, Wilma L. STOLTZ, Victor P. SWARTZ, Robert D. SWIMM, Alice L. URBACH, Dorothy K. VIALE, Marvin WITTWER, Chris A. The Clerk distributed a list bearing the names of those individuals casting questioned or challenged ballots on Election Day. She referred Council to the two letters dated October 6, 1981, from City Attorney Arvidson regarding residency requirements for City elections and recommended that the questioned ballots as cast by the following individuals be rejected: Precinct No.1 -- Daniel F. Greer, Rita S. Greer, Brooks Heymann; Precinct No. 2 -- Diane D. Bolk, Sam Daniel, Herman Nelsen, Howard Sweatt, Gilbert M. Walton, and Patricia Weimar (Ledet). She stated the recommendation was made because the electors were registered voters in jurisdictions outside the City of Seward and had not properly filed the required change of address cards to have their registrations changed to a Seward precinct. Further, the Clerk recommended that the challenged ballots as cast by Pamela J. Lowman and Richard A. Lowman (Seward No. 1 precinct) be rejected. She stated there was evidence to prove that even though registered within the City of Seward, Mr. and Mrs. Lowman maintained their permanent residence address in the Moose Pass voting precinct. Richard Lowman appeared from the audience and supported his right to vote in Seward based upon AS 15.05.020 (10). -j.....' I __' ( 1,\ PAGE 280 SPECIAL MEETING - OCTOBER 7, 1981 VOLUME 19 IV. CANVASS OF OCTOBER 6, 1981, REGULAR ELECTION AND DECLARATION OF RESULTS: (cont'd) ELECTIONS/ City Clerk commented that 19 of the questioned ballots were COUNCIL:recommended for approval; all 19 electors had moved from one Seward (cont'd) precinct to another without filing change of address cards. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to accept the 19 questioned ballots as submitted by the City Clerk. The 11 questioned/challenged ballots as recommended for rejection were removed from the valid questioned ballots and set aside, to remain unopened. The questioned ballots as cast by the following electors were removed from their outer envelopes and shuffled together with the absentee ballots to be counted: Precinct No.1 Precinct No.2 ODEGAARD (DOYLE), Mary E. REDING, Ronald R. BURGESS, Raymond M. BURGESS, Sandra CHASE, Matt KING, Jolene F. LINDSEY, Keith L. MARKS, Mervin C. O'BRIEN, Jeanette C. PACKA, Douglas PRINGLE, James RAMIREZ, Raul Jr. STETSON, Jodi L. WILSON, Geoffrey WITHROW, Beverly R. WITHROW, Dale S. YEZIERSKI, Phillip YOUNG, Kurt W. YOUNG, Patricia The 51 approved ballots were removed from the blank white inner envelopes and read aloud by Hugli with Soriano, Gillespie, Cripps and Swartz observing, and Campbell and O'Brien conducting the tally. The totals of the absentee and questioned ballots counted were added to the totals of those ballots cast and counted on October 6 by the election boards. The City Clerk read the results of the combined totals as follows and it was moved by Campbell, seconded by Swartz and unanimously carried to declare the results final. It was confirmed that Donald W. Cripps had been elected Mayor, C. Keith Campbell had been elected to fill the one-year term on the City Council, and the three available two-year seats on the Council had been filled by Michael J. Meehan, Raymond M. Burgess and Patrick O'Brien; Proposition No. 1 and No.2 failed, Proposition No. 3 and 4 were approved by the voters. The official results were as follows: MAYOR OF COUNCIL Two Year Term (One To Be Elected) DONALD W. CRIPPS John F. Gillespie Charles H. Soriano John Allen Blackwell Margaret Branson Greg Higgins Mel LeVan PRECINCT PRECINCT ABSENTEE/ NO.1 NO. 2 QUESTIONED TOTALS 70 118 18 206 64 116 15 195 53 103 17 173 1 1 1 1 1 1 1 1 CITY COUNCIL One Year Term (One To Be Elected) C. KEITH CAMPBELL Mary F. Lewis Duane LeVan William Vincent, Sr. 113 67 219 107 25 24 1 357 198 1 1 1 PAGE 281 SPECIAL MEETING - OCTOBER 7, 1981 VOLUME 19 IV. CANVASS OF OCTOBER 6, 1981, REGULAR ELECTION AND DECLARATION OF RESULTS: (cont'd ELECTIONS/ COUNCIL: (cont'd) CITY COUNCIL Two Year Term PRECINCT PRECINCT ABSENTEE/ (Three To Be Elected) NO. 1 NO. 2 QUESTIONED TOTALS RAYMOND M. BURGESS 76 140 23 239 MICHAEL J. MEEHAN 79 174 28 281 I PATRICK O'BRIEN 84 137 17 238 Gregg R. Bither-Terry 49 118 12 179 Charles R. Booth 56 104 18 178 Roger Dollar 42 80 15 137 Robin Phillips 59 71 8 138 Thomas G. Reese 56 91 13 160 Floyd Ainsworth 1 1 Carol Benoit 2 2 Lewis Hasty 1 1 Greg Higgins 1 1 Duane LeVan 1 1 Sanna LeVan 1 1 Mary Lewis 1 1 Don McCloud 1 1 Sam Romack 1 1 Robert Valdatta 1 1 Kenneth Werner 1 1 Kurt Young 1 1 Perry Zimmerman 1 1 PROPOSITION NO.1 (To exempt municipal officers from Alaska Conflict of Interest law) I Yes 46 70 9 125 NO 139 263 42 444 PROPOSITION NO. 2 (To exempt municipal candidates from Alaska Campaign Disclosure law) Yes 40 74 9 123 NO 145 258 42 445 PROPOSITION NO. 3 ($5,200,000 in bonding for Terminal Addition development) YES 100 165 29 294 No 85 166 20 271 PROPOSITION NO. 4 (VECO Offshore, Inc. Dock Permit) YES 119 218 37 374 No 62 113 14 189 I TOTAL BALLOTS CAST 197 364 63 624 TOTAL BALLOTS COUNTED 190 341 51 582 V. ADJOURNMENT: ,~~~ing was adjourned at 5:25 p.m. -,,,,,,,,, '" ".'\' ~.-:"\." ,,- ~ ~, ".' " -, r.... "", -. " )' ,:,,;. --.......::-! " ,.: /) ,_, ji " ~: '/(Y!"')"'~ I,..:~ 'Yfi.("" ":: JoA.nne E. < 'Shanley, CMC r 'c~ity Clerk, -- '...'. . - '" , , (c:1tySea1.) \. 7 /' j IS .-;t,~., { , RaymonA L. Hugli Mayor " , .;": /' '10 <) PAGE 282 REGULAR MEETING - OCTOBER 12, 1981 VOLUME 19 1. CALL TO ORDER: The October 12, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. II 1. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, O'Brien, Soriano and Swartz (Absent was Councilmember Gillespie) Present also: City Manager Johnson, City Attorney Arvidson, Asst. City Manager Schaefermeyer, City Clerk Shanley and Deputy City Clerk Murphy IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve the regular meeting minutes of September 28, 1981, and the special meeting minutes of October 7, 1981, as written. V. SEATING OF NEWL~LECTED COUNCILMEMBERS: C COUNCIL: The City Clerk administered the oath of office to newly- elected Mayor Donald W. Cripps (two-year term) and Councilmembers C. Keith Campbell (one-year term), Raymond M. Burgess, Michael J. Meehan and Patrick O'Brien (two-year terms). Retiring Mayor Raymond Hugli addressed the audience, reflecting on his years of service on the Council and he praised the current administration. Hugli distributed the Certificates of Election to the new members, they took their seats at the dais and hereafter took part in the meeting. V1. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following addition be made to the consent calendar: 3. Statement dated October 7, 1981, as submitted by Cowan, Gillespie and Jefferson, Inc., in the amount of $1,063.90 for legal services rendered relative to the Seward grain terminal project, located adjacent to The Alaska Railroad dock - approve for payment and file City Manager requested that the following item be deleted from the regular meeting agenda: X. Ordinances and Resolutions: C. Resolutions: 2. Proposed Resolution No. 81-48, appropriating additional funds for FY 1981 as might be necessary so that additional expenditures will not exceed revenues City Manager requested that following adjournment of the regular meeting an executive session be held in order to discuss a matter of financial significance to the City. It was moved by Soriano, seconded by Swartz and unanimously carried to hold an executive session as requested. PAGE 283 REGULAR MEETING - OCTOBER 12, 1981 VOLUME 19 V1. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried to approve the consent calendar and regular meeting agenda as amended and the following actions were taken: C ATTORNEY: 1. September 21, 1981, statement from Hughes, Thorsness, Gantz, Powell & Brundin, in the amount of $10,055.06, for legal services rendered through August 31, 1981, was approved for payment and filed. I ELECTRIC: 2. "Petition for Limited Intervention" in the matter of a tariff revision as filed by Chugach Electric Association, dated October 6, 1981, was noted for information and filed,. AK RR: 3. Statement dated October 7, 1981, as submitted by Cowan, Gillespie and Jefferson, Inc., in the amount of $1,063.90 for legal services rendered relative to the Seward grain terminal project, located adjacent to The Alaska Railroad dock, was approved for payment and filed. VII. BOROUGH ASSEMBLY REPORT: None VIII. PUBLIC HEARINGS: None IX. CITIZENS' DISCUSSION: (With prior notice only) I No one appeared from the audience at this time in order to be heard. X. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 4TH OF JULY 1. Copies being made available to the public, Cripps CREEK noted by title only proposed resolution providing for payment to Dorothy AREA/ Stewart Noyes for land acquisition as part of the 4th of July Creek RES: Marine Industrial Park project, entitled: A Resolution of the City Council of the City of Seward, Alaska, Providing for Just Compensation to be Paid for Property Owned by Dorothy Stewart Noyes I City Manager stated legal counsels for both parties had reached a mutually- acceptable purchase price of $.31 per square foot for approximately 1.017 acres of land as owned by Dorothy Stewart Noyes and earlier acquired by the City through eminent domain proceedings for the extension of Nash Road to the 4th of July Creek Marine Industrial Park. He recommended Council approval of the resolution. It was moved by Soriano, seconded by Swartz and unanimously carried to approve Resolution No. 81-47. (,'" .1 i' , . ,.)"- PAGE 284 REGULAR MEETING - OCTOBER 12, 1981 VOLUME 19 X1. UNFINISHED BUSINESS: LEG REPS: a priority listed the A. August 24, 1981, letter from Senator Jay Kerttula, requesting list of project needs for Seward, was noted. City ,Manager Coun'~il '8 previous pdority tistingas 'f~llo~s: 1 -- 4th of July Creek Marine Industrial Park Development ($30,000,000) 2 -- Lowell Creek Diversion Tunnel repair ($300,000 est.) 3 -- Microwave Landing System for the airport ($750,000) 4 -- Airport runway extension ($1,000,000) City Manager reported that recent discussions with Colonel Nunn of the Alaska District, Corps of Engineers, had culminated in the Corps agreeing to assist the City in preparation of engineering documents for repair of the tunnel. He confirmed that following the completion of the report, the City would have a better indication of the costs involved in repairing the tunnel. Campbell spoke in support of the City Council meeting with the Skill Center, the Chamber of Commerce, and other involved agencies, in order to compile a joint priority list to submit to the State. Following discussion, City Manager, with Council consent, stated he would tentatively schedule an informal luncheon meeting between the Council and the Chamber of Commerce for October 20. He stated a later meeting could be scheduled with the Skill Center. Following discussion, City Manager, with Council consent, stated that although the administration would be meeting informally with Senator Kerttula, no official response to his letter would be forwarded until the City had obtained a realistic estimation of the costs of repairing the Lowell Creek Diversion Tunnel. XI1. NEW BUSINESS: None XIII. CITY MANAGER REPORTS: 4TH OF CREEK AREA: JULY A. City Manager reported that the DOW/Shell Group had filed their feasibility study with the State relative to the location of a petrochemical industry in Alaska. He commented that although Seward was one of six sites under study, the feasibility study had confirmed that a petrochemical industry for the State was approximately 10 years into the future. City Manager requested Council authorization for the City to withdraw from active participation in the DOW/Shell Community Advisory Board but at the same time assure the industry that if petrochemical processing became a reality for the State, Seward would be an interested community. Following discussion, City Attorney suggested a resolution of appreciation, and an accompanying cover letter, be drafted for forwarding to DOW/Shell. City Manager confirmed he would have the documents ready for Council review at the next meeting. ELECTRIC: B. City Manager spoke brieny on the "Petition for Limited Intervention" in the matter of a tariff revision as' filed by Chugach Electric Association (Consent Calendar Item 2.) and stated the petition was filed on behalf of the City in order to protect the interests of the Seward Electric Utility. He stated the staff of the Public Utilities Commission had taken the City's position and was carrying it forward. City Manager stated the main objection was to the request for retroactive increases to 1979. He stated that the City would have to increase its electrical utility rates by approximately 20 percent in the near future. 4 TH OF CREEK AREA: I ORIGINAL TWNSTE: I PAGE 285 REGULAR MEETING - OCTOBER 12, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) JULY C. City Manager and City Attorney spoke on the agreement as recently consummated between the City of Seward and Torkelson-Kellogg, Inc. for construction of a world-class coal export facility at the 4th of July Creek Marine Industrial Park. He stated the first benchmark as cited in the agreement was an October 1, 1981, date for obtaining a firm commitment for a coal source. City Attorney confirmed that the Council could act to terminate the lease at any time based upon the non-performance by Torkelson-Kellogg. Further, he reported that if Torkelson-Kellogg did not cancel the lease prior to January 1, 1982, they were committed to proceed with construction of the initial coal facility regardless of a coal source commitment. City Manager answered various Council questions on recent newspaper headlines regarding a contract between The Alaska Railroad and SunEl for a coal facility in S~w~rd, He stated the City knew nothing more than what was quoted in the newspapers. D. City Manager stated he had received a letter request from DLK Investments to assume ownership of the Old Marshall House. The historic structure had been moved by the City from its original location at the corner of Third and Adams in order to save the building from destruction. Since the building's relocation to the Waterfront Tracts in 1978, the structure had set vacant and no one had submitted a proposal for restoration. He reported that DLK Investment proposed to move the building to a location adjacent to the "Old Church Gallery" on Fifth Avenue, to restore the exterior to its original appearance and to use the building for office space. Swartz commented that the building had been moved with the stipulation being made by the church that a non- profit organization oversee its future use. She stated the Mt. Marathon Association had stepped in to save the structure from demolition and that the Association should have first rights to use of the building if it was not going to be used for historical purposes. City Manager stated he would have to investigate the issue further and would have a report for Council at a later date. E. City Manager distributed a project status report dated October 12, 1981, listing all the City projects under construction. XIV. COUNCIL DISCUSSION: C COUNCIL: A. Cripps stated the Council had to appoint a vice mayor to serve in the mayor's absence. It was moved by Soriano, seconded by Swartz and approved by acclamation that C. Keith Campbell be appointed vice mayor. I B. City Clerk reported that the Alaska Municipal League would hold its annual conference in Anchorage November 4-7, 1981; she asked that those councilmembers interested in attending contact the Clerk's office before the end of the week. C. Campbell reported on a call he had received from a member of the Alaska Renewable Resources Council--of which Seward was a member-- requesting a Seward representative attend weekly meetings held in Anchorage regarding the fate of The Alaska Railroad. He stated that it would be a hardship for local officials to attend but felt it was imperative that Seward be represented. D. Campbell spoke on theatre-sized tickets which had been distributed during the recent campaigning period, endorsing one mayorial and three council candidates, and referring to "Integrity (For a Change)". He stated the innuendos were offensive and requested that the two candidates involved--Cripps and Burgess--make public statements acknowledging that they had nothing to do with the tickets. Cripps and Burgess so stated they had no prior knowledge of distribution of the tickets. E. Meehan thanked the Council for their support of a resolution approving the Iditarod Trail draft management plan and, in response to a question from Meehan, City Clerk confirmed the resolution would be forwarded to Alaska's Congressional delegation. ~,~ i;>; PAGE 286 REGULAR MEETING - OCTOBER 12, 1981 VOLUME 19 XIV. COUNCIL DISCUSSION: (cont'd) F. Cripps requested that a resolution be presented at the next Council meeting, prohibiting smoking in the Council Chambers. G. In response to a request from Cripps, City Manager stated he would prepare a report for Council on the activities of the various City departments, including an organization chart, position descriptions and budget information. XV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on using the Old Marshall House for the Iditarod Trail headquarters. Further, he spoke on free trade zones. XVI. ADJOURNMENT: The regular meeting was adjourned at 8:38 and Council immediately session to discuss a matter of financial importance to (C2~ILJ{~, b'onald W. Cripps' Mayor PAGE 286 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 1. CALL TO ORDER: The October 26, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Cripps. I I. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Cripps; Councilmembers Burgess, Meehan, O'Brien, Soriano and Swartz (Absent, with Council consent, was Councilmember Campbell) Present also: City Manager Johnson, City Attorney Arvidson, Assistant City Manager Schaefermeyer and City Clerk Shanley PRESENTATIONS: Colonel Gray appeared from the audience and presented to the mayor a plaque commemorating Ft. Raymond. The Colonel spoke on the historical significance of Ft. Raymond and in concluding stated that the U.S. Army would assist in locating the plaque in an appropriate location next spring. PROC & TRIBUTES: PAGE 287 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 PRESENTATIONS: City Manager read in full a letter from the Alaska Recreation and Parks Association, notifying of the presentation of a "Young Professional" award to past City of Seward Recreation Department Director Christy Moeller. Cripps presented the award to Moeller who was present in the audience. I IV. APPROVAL OF MINUTES: It was moved by Swartz, seconded by O'Brien and unanimously carried by all those present to approve the City Council regular meeting minutes of October 12, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 4. Proposed Resolution No. 81-51, amending Resolution No. 81-39 regarding the funding of capital projects pursuant to HCS CSSB 168 XI. New Business: E. Chris Berg bill F. Bid award on the Harbormaster's building renovation I G. U.S. Coast Guard sewage lift station Following discussion, it was moved by Meehan, seconded by Burgess and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: C ATTORNEY: 1. October 12, 1981, invoice from Hughes, Thorsness, Gantz, Powell & Brundin for legal services rendered during September 1981, totaling $11,837.14, was approved for payment and filed. V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of October 13, 1981. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. I IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: ELECTIONS I ORDS: noted by title entitled: 1. Copies being made available to the public, Cripps only proposed ordinance amending the City Election Code, An Ordinance Relating to Elections, Revising Section 8-3 and 8-7 of the Seward City Code , ,':':8 PAGE 288 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) A. Ordinances for Introduction: (cont'd) ELECTIONS/City Clerk reviewed the proposed changes in the City Code chapter, ORDS: noting that the language regarding voter qualifications had been amended (cont'd) to correspond with the State's 1981 revisions. Following discussion, it was moved by Soriano and seconded by O'Brien to introduce proposed Ordinance No. 502, with a public hearing date scheduled for November 23, 1981. City Attorney recommended the following amendment to paragraph (3) of Sec. 8-3(a): "has been a resident of the state and of the e~eeeieft-diseriee-ift-WAieA-Ae-seeks-ee-veee (City) for at least 30 days just before the election; and" City Clerk confirmed that the amended wording corresponded to the intent of the current City Code provisions, requiring that electors be registered within the City. Following dicussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to amend Ordinance No. 502 as presented. A vote was called for on the previous question and it was unanimously carried by all those present to introduce proposed Ordinance No. 502, with a public hearing date scheduled for November 23, 1981. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: C COUNCIL/ 1. Copies being made available to the public, Cripps RES: noted by title only proposed resolution prohibiting smoking in the City Council Chambers, entitled: A Resolution of the City Council of the City of Seward, Alaska, Prohibiting Smoking in the City Council Chambers During Official Meetings It was moved by O'Brien, seconded by Meehan and unanimously carried by all those present to approve Resolution No. 81-48. 4TH OF JULY 2. Copies being made available to the public, Cripps CREEK noted by title only proposed resolution regarding petrochemical development AREA/ in Seward, entitled: RES: A Resolution of the City Council of Seward, Alaska, Recognizing Continued Interest in Petro-Chemical Development in Seward City Manager stated the resolution and accompanying draft cover letter supported the Council's position as discussed at the October 12 Council meeting. O'Brien commented that the Council did not wish to close the door on DOW/Shell or petrochemical development; however, considering the time frame of the proposed project, the City wished to focus on shorter- term goals. Following discussion and Council consent that the draft letter was acceptable, it was moved by Swartz, seconded by O'Brien and unanimously carried by all those present to approve Resolution No. 81-49. BUDGET/ RES: I BUDGET/ RES: I PAGE 289 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 3. Copies being made available to the public, Cripps noted by title only proposed resolution regarding 1980-81 budget appropriations, entitled: A Resolution of the City Council of the City of Seward, Alaska, Providing for Supplemental Appropriations City Manager and City Attorney spoke on the necessity of the resolution, pursuant to City Charter provisions, in order to allocate an additional $74,289 in revenues and $18,136 in expenditures for the City. City Manager also called Council's attention to the fact that the proposed resolution accepted the audited financial statements and management letter as prepared by Price Waterhouse for fiscal year 1980-81. Following discussion, it was moved by Soriano, seconded by Meehan and unanimously carried by all those present to approve Resolution No. 81-50. 4. Copies being made available to the public and distributed to Council, Cripps noted by title only proposed resolution regarding the funding of capital projects pursuant to HCS CSSB 168, and amending Resolution No. 81-39, entitled: A Resolution Amending City of Seward Resolution No. 81-39, Identifying the Capital Projects and the Amount Alloca- ted to Each Project in Accordance With HCS CSSB 168 (Finance) 1981 Session Assistant City Manager noted various amendments to the resolution as distributed, adjusting the expenditures for the 1981 Street Paving Improvement project, the 7th Avenue Greenbelt project, and the Business District trash receptacles project. Following discussion of the amendments, it was moved by Swartz, seconded by O'Brien and unanimously carried by all those present to approve Resolution No. 81-51. X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: MARINA SUB: A. August 12, 1981, letter from Harold W. Johnson, d/b/a Homes Unlimited, Inc., and Alaska Marine Engine, Inc., requesting Council authorization to sublease Lot 7, Block 2, Marina Subdivision, to the U.S. Park Service, was noted. Also noted was the "Commercial Site Lease of Uplands" for the subject parcel, dated January 1, 1967. The draft sublease between the U.S. Government and Harold Johnson was distributed. City Attorney stated that since the draft sublease had been received just that afternoon, he had only a brief opportunity to review the lease terms. He commented that a consent for sublease assignment also needed to be submitted by the lessor for Council approval and suggested that he contact the parties regarding the consent form so the matter could again be submitted to Council on November 9. I O'Brien referenced the moorage agreement which accompanied the original lease and stated Council had previously discussed the severance of the float space agreement at the earliest opportunity. Upon receiving Council consent, City Attorney stated he would follow up on the cancellation of the float space agreement. , , - ~ ( I PAGE 290 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 X1. NEW BUSINESS: (cont'd) PKS & REC: B. September 25, 1981, letter from the U.S. Army, requesting an extension of the current lease for Tract 101, Seward Recreation Site, to December 31, 1986, was noted. City Manager recommended Council approve the lease extension. It was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to approve the extension of the current lease, as requested in the letter, to December 31, 1986. HARBOR: C. October 10, 1981, letter from Edward Schlief regarding a vessel in the harbor impound yard, and Harbormaster Singleton's memorandum on the issue, dated October 19, 1981, were noted. City Manager commented the vessel had been abandoned in 1972 and since that date had accumulated an impoundment fee in excess of $800. He recommended that Council deny Mr. Schlief's check in the amount of $50 for redemption of the vessel and continue with the plans to offer the vessel at the auction scheduled for the Spring. Following discussion, Soriano, with Council consent, recommended Mr. Schlief be advised that he had the option of redeeming his vessel for $841.50 or bidding on it at the auction. HARBOR: D. The following items of correspondence were noted relative to damage sustained to the T-dock in June: October 19, 1981, memorandum from Harbor- master Singleton, supporting the $3,000 bid as submitted by N. Murawsky for repair of the bumper pile October 14, 1981, letter from Orca Services, marine adjuster, offering $2,500 for repair of the damages June 24, 1981, accident report and June 26, 1981, supplement, as filed by Harbormaster Singleton City Manager reported on the incident and recommended the City counter the insurance adjuster's offer of $2,500 with the $3,000 figure as submitted by Mr. Murawsky. Following discussion, Meehan, with Council consent, suggested that the City Manager be authorized to negotiate for the $3,000 that was estimated for repair of the dock. 4TH OF CREEK AREA: JULY E. City Manager stated a bill in the amount of $219,661 had been received from Chris Berg for services rendered relative to the 4th of July Creek relocation project. He stated the bill exceeded the contracted amount by $117,235 due to the material quantities in excess of estimated amounts. He recommended Council approval of the bill, with $117,235 being taken from the project contingency fund. Following discussion, it was moved by Soriano, seconded by O'Brien and unanimously carried by all those present to authorize the administration to pay to Chris Berg $219,661.66, with $117,235 coming from the contingency fund. HARBOR: F. City Manager distributed memorandum dated October 21, 1981, from City Engineer Small, listing the bids received for the Harbormaster's building renovation project, and recommending award of bid to low bidder King, Harness & Oien, Inc. for $69,671. Following discussion, it was moved by O'Brien, seconded by Swartz and unanimously carried by all those present to award the bid to King, Harness & Oieu, Inc. in the amount of $69,671. HARBOR: I I ~ ~) 1 PAGE 291 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 X1. NEW BUSINESS: (cont'd) G. Proposals dated October 15 and 16, 1981, as submitted by CRW Engineering Group and Trans-Alaska Engineering, respectively, to perform the professional engineering services required for a sewage lift station to service the U.S. Coast Guard cutter CAPE JELLISON, were distributed. City Manager reported the wide discrepancy in the bid prices ($18,038 as bid by CRW and $950 bid by Trans-Alaska) was apparently due to a misunderstanding of the requested scope of services. He recommended that the project be awarded to Trans-Alaska Engineering. In answer to an inquiry from O'Brien, City Manager and City Engineer Small spoke on the capabilities of performing the work in-house. City Manager stated the City was only acting as an intermediary for the Coast Guard in obtaining the services, and the Coast Guard would be responsible for all costs involved in the project. City Engineer stated if the project did not need to be completed until the following Spring, the work could be done by City staff; however, he questioned if it could be performed at the $950 fee proposed by Trans-Alaska Engineering. Following discussion, it was moved by Soriano, seconded by Swartz and carried as follows to authorize the administration to enter into a contract with Trans-Alaska Engineering for the sum of $950: Ayes: Noes: Absent: Burgess, Cripps, Meehan, Soriano and Swartz O'Brien Campbell RECES S : The meeting was recessed at 8:42 p.m.; reconvened at 8:50 p.m. XI1. CITY MANAGER REPORTS: A. City Manager distributed a City project status report dated October 26, 1981, and spoke on the progress being made at the 4th of July Creek industrial park site. In answer to a question from O'Brien, Assistant City Manager gave a verbal report on the sewage treatment project, stating it was anticipated Brown Construction would complete the final work within the week. He commented that the contracted completion date was October 11 and the contractor would be assessed a penalty. PERSONNEL: reports: B. The following items were noted relative to City departmental A City organizational chart was distributed October 19, 1981, report from the City Clerk/Personnel Officer A compilation of City departmental reports totaling 37 pages was distributed City Manager reviewed the City report and invited the Council to notify him if they wished to have a tour of the City facilities. Cripps thanked the Manager for submitting the information. PERSONNEL: C. October 13, 1981, letter from City Attorney Arvidson I regarding the City's opt-out of Social Security, effective January 1, 1982, was noted. City Attorney spoke and answered Council questions on the opt-out procedure. ~~) :2 PAGE 292 REGULAR MEETING - OCTOBER 26, 1981 VOLUME 19 XII 1. COUNCIL DISCUSSION: A. It was noted that the Kenai Peninsula Borough and DOW/ Shell representatives would conduct a meeting commencing at 3:00 p.m., October 29, 1981, in the Borough building, Soldotna. B. Swartz reported on a street light out on the Seward Highway near the cemetery. C. O'Brien questioned the termination of children's programming on Channel 3. City Manager reported the City had recently heard that the State was intending to initiate programming on newly-established Channel 55 and he would have more information on the matter at the November 9 meeting. D. O'Brien requested that the draft ordinance regarding City bid procedures be placed on the Council agenda for November 9. E. O'Brien referred to Mr. Schlief's derelict vessel and questioned the procedure of having a derelict vessel remain in the City impound lot for 10 years. City Manager stated the problem had been corrected with the institution of a new ordinance setting forth a procedure for disposing of derelict and abandoned vessels. F. O'Brien questioned if the Clerk could provide for a display board for use on election nights to show the progress of the tallying of the ballots. G. O'Brien asked that the Council address the issue of two- year Council positions and the possibility of changing to a three-year system. City Attorney remarked that Council terms were established by City Charter and a Charter change would have to be approved by the voters. H. Soriano commented that the Council meetings could proceed at a faster pace if the materials in the agenda packet were reviewed by all the members in advance of the meeting. I. Cripps voiced the Council's condolences to Councilmember Campbell during his recent personal loss. XIV. CITIZENS' DISCUSSION: A. Bob Leary appeared from the audience and stated that although he was not a resident of Seward, he operated a business in the City and was concerned about the recent occurrences of vandalism. He suggested an earlier closure time for the bars might be a positive move in trying to control the problem. B. Beverly Dunham appeared from the audience and stated the Seattle Times had recently printed an article about the 4th of July Creek development in Seward. C. City Manager presented to In response to a question from audience member Gary Jones, gave Jones a copy of the City departmental reports as Council earlier in the evening. D. the vandalism bar hours. Bob Valdatta appeared from the audience and stated that problem in the downtown area should not be blamed on the E. Sandy Wassilie appeared from the audience and stated she had recently read information indicating that Channel 55 as operated by the State would be functional in Seward in late November. XV. ADJOORNME~t~: The ,meeting was adjourned at 9:37 p.m. 'v~~/ (C \ L, CMC l- / <' / ~-, ~::id L~.e~;~d)) Mayor (City Seal) PAGE 293 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 1. CALL TO ORDER: The November 9, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Cripps. 11. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. I II 1. ROLL CALL: Present were: Mayor Cripps; Councilmembers Burgess, Campbell, Meehan, O'Brien, Soriano and Swartz Present also: City Manager Johnson, City Attorney Arvidson, Asst. City Manager Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by O'Brien and unanimously carried to approve the October 26, 1981, regular meeting minutes as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested Council meet in Executive Session, immediately following adjournment of the regular meeting, in order to discuss a legal matter regarding negotiations with Chugach Electric Association and the Public Utilities Commission. It was moved by Campbell, seconded by Swartz and unanimously carried to hold an Executive Session to discuss a legal matter. I City Manager requested that the following item be added to the consent calendar: 2. "Application for Permit for Authorized Games of Chance and Skill" for 1981 as filed by the Seward Rebekah Lodge - authorize the mayor's signature It was moved by Campbell, seconded by Meehan and unanimously carried to approve the regular meeting agenda as presented and the consent calendar as amended and the following actions were taken: C ATTORNEY: 1. October 27, 1981, invoice from Hughes, Thorsness, Gantz, Powell & Brundin for legal services rendered in the matter of Seward Chapel vs. City of Seward, totaling $7,402.10, was approved for payment and filed. LOC ORGS: 2. "Application for Permit for Authorized Games of Chance and Skill" for 1981 as filed by the Seward Rebekah Lodge, was authorized for signing by the mayor. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of November 3, 1981. I VIr. PUBLIC HEARINGS: None 'jq ,~ ;, PAGE 294 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) INSURANCE/ A. Dick Lowell, President of Rollins Burdick Hunter (RBH), 4TH OF appeared from the audience and introduced staff members Bud Walters and JULY Kurt Olson. An insurance proposal entitled "City of Seward Fourth of CREEK July Creek Industrial Marine Park" was distributed to Council for review. AREA: Lowell summarized the proposal package and assured the Council that RBH was not suggesting a self-insurance program, but rather a comprehensive, uniform package to provide all contractors and subcontractors of the 4th of July Creek project with workmen's compensation, general liability and third party coverage. In answer to a question from Campbell, Lowell stated the proposal included an all-encompassing safety program and a controlled loss program which allowed for premium rebates. In response to a statement from Burgess relative to bidding for the insurance coverage, City Manager stated it had been the City's policy to designate a "broker of record" for insurance coverage and to obtain all insurance from that firm. He confirmed that in year's past the Council had so selected RBH as Seward's "broker of record". Bud Walters commented that RBH had been working on the proposal for the City for approximately two months and had contacted four separate insurance carriers in order to put together the best package available. City Attorney suggested the City request the next bid package for the 4th of July Creek development be submitted with alternate bids with and without contractor insurance coverage. At that time the City could evaluate the rate of savings which might be realized from adopting a proposal similar to the one submitted by RBH. Following discussion, City Manager, with Council consent, stated an addendum would be added to the Phase III bid package for the 4th of July Creek development, asking all bidders to submit bids with and without insurance coverage, with the City reserving the right to reject all alternate bids. He confirmed the bid opening was scheduled for December 3, 1981, and he would have the results to Council following that date. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: BID~ PURCH AGENT/ 1. Copies being made available to the public, Cripps ORDS: noted by title only a proposed ordinance amending the bidding procedures for the City of Seward, entitled: An Ordinance of the City of Seward, Alaska, Amending Bidding Procedures City Manager reviewed the ordinance which had been distributed to Council at an earlier date for review. He commented that all references to "comptroller" in the draft ordinance would be amended to read "Finance Director". He proceeded to submit dollar amounts for the various limitations on purchase order authorizations for labor, services and materials. City Attorney reviewed the proposed variances from the current bidding procedures, stating the new ordinance would enable the City to reject low bids when it was found in the public interest to do so. Following discussion, it was moved by Soriano, seconded by O'Brien and unanimously carried to introduce proposed Ordinance No. 503. It was noted by the Clerk that the public hearing on the ordinance would be scheduled for December 14, 1981. B. Ordinances for Public Hearing and Enactment: None ;> . ~ \ PAGE 295 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: K P B/ SCHOOLS/ RES: 1. Copies being made available to the public, Cripps noted by title only a proposed resolution supporting on-campus housing for the Kenai Peninsula Community College, entitled: I A Resolution of the Seward City Council, Supporting On-Campus Housing for Kenai Peninsula Community College October 29, 1981, letter and attached "Kenai Peninsula Community College 1981 Housing Survey" from KPCC Housing Advocate Williams, was noted. City Manager recommended approval of the resolution, stating on-campus housing would be the first step towards the establishment of a full- service community college on the Peninsula. It was moved by Swartz, seconded by Meehan and unanimously carried to approve Resolution No. 81-52. FISH RES: & WILDLIFE! 2. Copies being made available to the public, Cripps noted by title only a proposed resolution supporting a king salmon sport fishery in Resurrection Bay, entitled: A Resolution Requesting the State of Alaska, Department of Fish and Game, to Develop a King Salmon Sport Fishery Within Resurrection Bay City Manager commented the resolution had followed a Council meeting with the Seward Chamber of Commerce and the Chamber had requested Council support for the project. He further stated the Chamber had requested Council support of a resolution concerning Caines Head State Park and that resolution would be presented at the next Council meeting. It was I moved by O'Brien, seconded by Burgess and unanimously carried to approve Resolution No. 81-53. SCHOOLS/ 3. Copies being made available to the public, Cripps RES: noted by title only a proposed resolution supporting construction projects for the Alaska Vocational Technical Center (AVTEC), entitled: A Resolution Supporting the Funding and Construction of a New Student Service Center and Classroom Addition at the Alaska Vocational Technical Center in Seward City Manager reported the resolution followed a City meeting with representatives of AVTEC at which both parties agreed to assist each other in obtaining State funding for local projects. It was moved by Campbell, seconded by Swartz and unanimously carried to approve Resolution No. 81-54. 4TH OF JULY 4. Copies being made available to the public, Cripps CREEK noted by title only a proposed resolution approving award of the contract AREA/ for design of the shiplift for the 4th of July Creek Marine Industrial RES: Park to sole bidder R. Pearlson, Ltd., entitled: I A Resolution of the City of Seward, Alaska, Approving a Contract With R. Pearlson, Ltd., for Construction of Shiplift Equipment City Manager confirmed R. Pearlson had been the sole bidder on the project and had submitted the requested bid and an alternate bid. He confirmed the resolution, if approved, would authorize him to negotiate a contract with Pearls on for either the requested bid or alternate package, at a sum not to exceed $2,350,000. It was moved by Campbell, seconded by O'Brien and unanimously carried to approve Resolution No. 81-55. .()~ PAGE 296 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 X. UNFINISHED BUSINESS: MARINA SUB: A. The following items were noted relative to the request for sublease of Lot 7, Block 2, Marina Subdivision: "U.S. Government Lease for Real Property" received October 26, 1981, proposing a sublease from Harold Johnson d/b/a Homes Unlimited, Inc., and Alaska Marine & Equipment, Inc. to the U.S. Park Service August 12, 1981, letter from Harold Johnson, requesting Council authorization of the proposed sublease "Commercial Site Lease of Uplands" for the subject parcel, dated January 1, 1967 City Attorney reported on the Council's desire to remove the moorage space agreement from the uplands' lease. He stated that the float space agreement was considered part of the entire lease document and, since the leasee was not in default, the moorage agreement could not be terminated by the City without the approval of Mr. Johnson. In answer to a Council inquiry, he stated he would contact Harold Johnson to see if he would agree to cancellation of the float space agreement. City Attorney stated the Council could approve the sublease agreement, subject to the City's receipt of the "consent to assignment of sublease" form. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried to approve the sublease to the U.S. Park Service of the Alaska Marine property. RECESS: The meeting was recessed at 8:31 p.m.; reconvened at 8:41 p.m. X1. NEW BUSINESS: None XII. CITY MANAGER REPORTS: PKS & REC: A. "A Comprehensive Report on Summer Activities, On-Going and Future Programs and Plans for the Seward Parks and Recreation Department" dated October 13, 1981, was noted. TERMINAL ADDN: B. November 1, 1981, memo from City Engineer Small and November 4, 1981, proposal from Century-Quadra, relative to Phase II services for the Terminal Addition development, were noted. City Manager reviewed Century-Quadra's "Cost Proposal" designated as "Attachment B" and adjusted the task figures with an amended total cost proposal for Phase II established at $171,270. City Manager also distributed a graph showing the task schedule for the Terminal Addition project. Burgess read a prepared statement regarding his attempt to obtain public records on the Terminal Addition project. He stated that he had discussed the issue with the City Manager and the City Manager had informed him that he would have to discuss the issue with Council prior to reviewing any additional City files. Burgess referenced City Code Sec. 2.10.010 regarding the availability of public records and Sec. 2.20.180 regarding Council access to the City service. City Attorney responded to questions posed by Burgess, stating that he could review any City public records but, historically, as witnessed by the City Manager form of government, the Seward Council had acted as a body in requesting information, in order to avoid seven individual Councilmembers from interfering with the City operation. City Manager responded that he had no objection to Councilmembers obtaining City information; however, he stated in Burgess' case he considered the multiple reviews of an individual file, regarding issues which Burgess had discussed during his campaign and in previous years, as a case of harassment. Campbell, Swartz, O'Brien and Meehan all voiced positive results in their attempts to receive information from the City administration. Cripps stated the Council should be concerned solely with the efficient operation of the City and personalities should be set aside. PAGE 297 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) TERMINAL Howard Holtan of Quadra Engineering appeared from the ADDN: audience and spoke on the Terminal Addition project as contracted to (cont'd)Century-Quadra Engineering, operating as a joint venture. Holtan reviewed Phase I of the project and the scope of services proposed to be provided in Phase II. Regarding utility services, and specifically water access, Campbell asked if the previous water project contracted by the City was proving useful relative to source documents. City Engineer Small appeared I from the audience and responded that the City had over the past few years made numerous attempts to obtain the field notes from the previous contractor but, to date, that information had not been obtained. Holtan stated he had been in contact with the previous engineer and, hopefully, some type of an agreement could be reached whereby Century-Quadra could obtain the previous documents rather than have them prepared a second time. In answer to a question from O'Brien, Asst. City Manager stated Trans-Alaska Engineering had designed a water system for the City and the source documents from that design could be used beneficially by Century-Quadra; however, to date, Trans-Alaska had refused to provide those documents. Campbell requested a further clarification of the problem at the next Council meeting. Burgess commented that the City should go to bid on Phase II of the project. O'Brien responded by stating that the City had initially contracted with Century-Quadra for Phase I of the project, had to date been satisfied with the firm's performance and, therefore, should continue with the same engineers. Following discussion, it was moved by O'Brien, seconded by Swartz and carried as follows to authorize the City Manager to enter into a contract with Century-Quadra for Phase II engineering of the Terminal Addition, for an amount not to exceed $171,270, those funds to come from the General Fund and later to be reimbursed from the bond sale proceeds: I Ayes: Noes: Absent: Campbell, Cripps, Meehan, O'Brien, Soriano and Swartz Burgess None 4TH OF JULY C. November 1, 1981, memorandum from City Engineer Small CREEK regarding the 4th of July Creek development Phase III inspection budget AREA: adjustment, was noted. City Manager recommended Council approve the City performing the inspection services in-house with an approximate budget cost of $576,580. Burgess voiced objection to the City competing with private enterprise and supported the City's receipt of other bids as a basis of comparison. Following discussion, it was moved by Swartz, seconded by Meehan and carried as follows to direct the administration to pursue the in-house option on construction inspection for Phase III: Ayes: Noes: Absent: Campbell, Cripps, Meehan, O'Brien, Soriano and Swartz Burgess None RECESS: The meeting was recessed at 9:48 p.m.; reconvened at 9:57 p.m. 4TH OF CREEK AREA: JULY I D. November 1, 1981, memorandum from City Engineer Small and November 4, 1981, letter from Century-Quadra, regarding the cost overruns relative to the 4th of July Creek stream relocation project, were noted. In response to a question from O'Brien, City Engineer stated the City was continuing its investigation of the increased costs and would have a more in-depth report at the next Council meeting. E. City Manager gave a verbal report on the State's installation of educational Channel 55, to be operational in the Seward area in mid- November. F. City Manager distributed a draft ordinance which attempted to combine all City utility information into one City Code chapter. He asked that Council review the draft and consider introducing the ordinance at the next scheduled meeting. \r, PAGE 298 REGULAR MEETING - NOVEMBER 9, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: A. October 27, 1981, letter from John F. Gillespie, offering his services as the broker to market the newly replatted Terminal Addition, was noted. Gillespie appeared from the audience and spoke in support of his proposal and on specific suggestions to assist the City in disposing of the parcels. Following discussion, O'Brien, with Council consent, recommended the City Manager negotiate with John Gillespie for a base price package proposal. B. October 21, 1981, letter from the Cook Inlet Aquaculture Association, requesting the Council appointment of a new representative to the board, was noted. City Manager distributed letter dated November 9, 1981, from Willard Dunham, Seward Fish & Game Advisory Board Chairman, requesting Council appoint Arne Hatch as the primary representative and further requesting that he be reappointed as the alternate representative. Following discussion, Cripps appointed Arne Hatch as Seward's representative to the Cook Inlet Aquaculture Association, with Willard Dunham serving as alternate. C. Campbell stated that City Clerk JoAnne Shanley should be commended for being appointed as President of the Alaska Association of Municipal Clerks. It was noted that the appointment took place during association meetings held concurrently with the Alaska Municipal League convention the previous week. D. City Manager distributed a graph of City construction schedules. E. Meehan spoke on his attendance at the Alaska Municipal League convention the previous week in Anchorage and commented that it was a beneficial experience for him. F. Cripps reported that the previous week the City Manager had tendered his notice of resignation, effective February 19, 1981. Meehan, Swartz and O'Brien urged the Manager's reconsideration. Soriano stated the City Manager had served Seward extremely well for the past five years and it might take three or four individuals to fill his shoes. He commented that with all the conflicts the City Manager had to contend with, it was surprising he had stayed as long as he did. Campbell urged the Council to make some alternate plans without delay and, following discussion, Cripps scheduled a work session for Monday, November 16, 1981, commencing at 7:00 p.m., in order to more fully discuss the issue. XIV. CITIZENS' DISCUSSION: A. Willard Dunham appeared from the audience and commented on Resolution No. 81-53 as approved by Council earlier in the meeting. He urged the City to make sure funds and personnel were specifically earmarked for the project; otherwise, the Department would reallocate the expenditures once the Legislature had adjourned. B. Raymond Hugli appeared from the audience and commented that he hoped the Council might consider retaining City Manager Johnson in another capacity in Juneau following his retirement as Manager for Seward. XV. ADJOURNMENT: The meeting was adjourned at 10:30 p.m. 1 1 rl,u~n9HE~~1, immediately ega .:\!llU,.er~ ","'C', v1-~ ".~. .: I. -. \} ~-: .' V I / ~,4' CMC went into Executive Session to discuss a ( '-- ., ~' ,il) I... , / /t ,- 'l A.~ /( f/: . r7 Donald W. Crip~ Mayor (City Seal) I 4th of .Tuly Creek Area~ I I ...~, .' PAGE 299 REGULAR MEETING - NOVEMBER 16, 1981 VOLUME 19 1. CALL TO ORDER: The November 16, 1981, special meeting of the Seward City Council was called to order at 7:00 p.m. by Vice Mayor Campbell. It was noted that the proper notification procedures, as established by City Code provisions, had been accomplished. II. OPENING CEREMONY: Councilmember Soriano led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Campbell; Councilmembers Burgess, Meehan, O'Brien, Soriano and Swartz (Absent, with Council consent, was Mayor Cripps) Present also: City Manager Johnson, City Attorney Arvidson, Asst. City Manager Schaefermeyer and City Clerk Shanley IV. SPECIAL ITEM: A. City Attorney spoke on City Resolution 81-55 as approved by the Council at its regular meeting of November 9, 1981, approving the negotiation of a contract with R. Pearlson Company, at a price not to exceed $2,350,000, for construction of the shiplift equipment for the 4th of July Creek Marine Industrial Park. He stated the contract as signed on November 13, 1981, and made subject to approval of the City Council, differed slightly from the City's original contract documents as set forth in the bid package. City Attorney spoke and answered Council questions on "Addendum No.3" to the contract which addressed the inspection of materials and equipment by Lloyds of London, testing of the equipment supplied under contract, insurance and bid bond coverage, the down payment, and the delivery schedule. COUNCILMEMBER O'BRIEN ARRIVED AT 7:05 P.M. AND THEREAFTER TOOK PART IN THE MEETING. Following discussion, it was moved by Burgess, seconded by Soriano and unanimously carried by all those present to approve the renegotiated contract with R. Pearson Company for the shiplift equipment. V. ADJOURNMENT: The meeting was adjourned at 7:10 ..:.,:J )' i ", . ,/11 '> t)"-...-I c~ JoAnne E. Shanley, City Clerk ) I' , ,;,..-:>hL~ I,JU' CMC /:' (City Seal) ------------------------------------------------------------------------- : '{ III PAGE 300 REGULAR MEETING - NOVEMBER 23, 1981 VOLUME 19 1. CALL TO ORDER: The November 23, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Campbell. II. OPENING CEREMONY: Councilmember Burgess led the pledge of allegiance to the flag. II 1. ROLL CALL: Present were: Vice Mayor Campbell; Councilmembers Burgess, Meehan, O'Brien, Soriano and Swartz (Absent, with Council consent, was Mayor Cripps) Present also: City Manager Johnson, City Attorneys Arvidson and Hughes, Asst. City Manager Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting minutes of November 9, 1981, and the special meeting minutes of November 16, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: Campbell and the City Manager made the following additions to the regular meeting agenda: B. C. Business: Confirmation of ART SEWARD as the official local cultural arts organization for the city Support of the official naming of Mt. Alice Change Order No. 7 as submitted by Brown & Assoc. for the sewage treatment project XI. New A. XII. City Manager Reports: C. Purchase of an air compressor for the Fire Dept. Following discussion, it was moved by O'Brien, seconded by Meehan and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: FINANCE DEPT: 1. The Finance Department's list of Accounts Payable for October 1981, totaling $2,659,472.32, was approved for payment and filed. ELECTRIC: 2. October 30, 1981, invoice from Bailey and Mason for legal services rendered during the month of October 1981, totaling $3,222, regarding Chugach Electric Association rates, was approved for pay- ment and filed. ABC B: 3. November 10, 1981, letter from the Alcoholic Beverage Control Board, submitting an applica- tion for renewal of Seward Trading Company's liquor license, was filed without objection. PAGE 301 REGULAR MEETING - NOVEMBER 23, 1981 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 4. October 22, 1981, letter from the Homer Chamber of commerce, thanking Asst. City Manager for speaking before the Chamber, was noted for information only. 4TH OF JULY CREEK AREA: I 5. November 12, 1981, letter from DOW-Shell, acknowledging Seward's continued interest in petrochemical development, was noted for information and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of November 17, 1981. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. IX. ORDINANCES AND RESOLUTIONS: ELECTRIC/ A. Ordinances for Introduction: WATER/ SEWAGE TRTMT/ 1. Copies being made available to the public, Campbell TV/ noted by title only proposed ordinance consolidating the City Code ORDs:provisions regarding utilities into one chapter, entitled: I Creating Chapter 22 of the Seward City Code, Repealing Chapters 9, 12, 22 and 24 of the Seward City Code City Attorney Mary Hughes answered numerous Council questions on the proposed ordinance and noted amendments as suggested by the Councilmembers regarding the extension of services. Hughes confirmed the ordinance would be redrafted as amended by Council. Following discussion, it was moved by O'Brien, seconded by Soriano and unanimously carried by all those present to introduce proposed Ordinance No. 504. A public hearing date was scheduled for January 11, 1982, and Campbell directed that the ordinance appear as an item for discussion on the Council agendas of December 14 and 28, 1981. C COUNCIL/ C MAN- noted by title AGER/ entitled: ORDS: 2. Copies being made available to the public, Campbell only proposed ordinance regarding the City administration, An Ordinance Relating to Administration, Amending Section 2.30.050 of the Seward City Code I City Clerk distributed an explanation of the revision and cited related Charter provisions Sec. 2.3 - Persons ineligible for city office or employment, and Sec. 5.4 - City manager. Following discussion, it was moved by Soriano, seconded by O'Brien and carried as follows to introduce proposed Ordinance No. 505: Ayes: Noes: Abstain: Absent: Burgess, Meehan, O'Brien, Soriano and Swartz None Campbell Cripps Public hearings on the ordinance were scheduled for December 14 and 28, with a vote for enactment to be considered on December 28. 1 ' ) PAGE 302 REGULAR MEETING - NOVEMBER 23, 1981 VOLUME 19 RECESS: The meeting was recessed at 8:53 p.m.; reconvened at 9:00 p.m. IX. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: ELECTIONS/ ORDS: noted by title entitled: 1. Copies being made available to the public, Campbell only proposed ordinance revising the City election code, An Ordinance Relating to Elections, Revising Section 8-3 of the Seward City Code "Notice of Public Hearing" on the proposed ordinance as published two times in the local newspaper was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. It was moved by Meehan, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 502. C. Resolutions: None X. UNFINISHED BUSINESS: None X1. NEW BUSINESS: LOC ORGS: A. Letter dated November 20, 1981, to the Alaska State Council on the Arts, designating ART SEWARD as the official organization for cultural arts in Seward, was noted. Campbell commented that the organization sought a similar letter each year in order to be eligible to apply for grant monies. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to authorize the mayor's signature, recognizing ART SEWARD as the official organization for cultural arts in Seward. B. Letter dated November 23, 1981, to the Seward Community Library, supporting the official naming of Mt. Alice, was distributed. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to authorize the mayor's signature on the letter. SEWAGE TRTMT: C. November 20, 1981, letter from Arctic Environmental Engineers (AEE), and attached Contract Change Order No.7 as submitted by Brown and Associates, in the amount of $20,708.23, and including a 21-day project completion date extension, regarding the sewage treatment project, was distributed. Dave Williams, project engineer, appeared from the audience and spoke on the incidents which necessitated the change order. He confirmed that the change order would not be the final one for the project. Williams explained the project completion time delay and the reasons why AEE felt that the time extension was justified. Various Councilmembers voiced objections to receiving the information just prior to the meeting. Following discussion, it was moved by O'Brien, seconded by Soriano and carried as follows that Change Order No. 7 be approved: Ayes: Noes: Absent: Burgess, Campbell, Meehan, O'Brien and Soriano Swartz Cripps XII. CITY MANAGER REPORTS: A. on the 4th of have a report City Manager stated he still did not have a final report July Creek relocation contract cost overruns but would at the next meeting. PAGE 303 REGULAR MEETING - NOVEMBER 23, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) B. City Manager reported he had received word from Century- Quadra (C-Q) that the engineer on the City water design was cooperating in making available previous field documents which would assist C-Q in the Terminal Addition resubdivision project. FIRE DEPT: C. City Manager stated the Fire Department had received a State grant for the purchase of a breathing air compressor. He requested I Council authorization to purchase the compressor as offered by Becker Fire Equipment, at an approximate cost of $5230. He stated the purchase price would be covered by the State grant and departmental funds. City Attorney spoke on the Code requirements regarding request for bids on such equipment. Fire Chief Oscar Watsjold appeared from the audience and stated the equipment presently in use by the department was dangerous. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present that an emergency existed, and to authorize the City Manager to expend the sum of $5,230 or less to get a compressor for the air packs for the Fire Department in Seward. D. City Manager stated Mayor Cripps' granddaughter had passed away the previous week and the City had sent flowers and expressed condolences. TERMINAL ADDN: E. City Manager distributed the November 18, 1981, "Marketing Proposal for Terminal Addition" as submitted by John Gillespie, d/b/a Seward Real Estate Company. Gillespie appeared from the audience and briefly reviewed his proposal to assist the City with the disposal of the Terminal Addition resubdivision parcels. Following discussion, Campbell, with Council consent, asked that the Seward Advisory Planning and Zoning Commission discuss proposed covenants for the subdivision at its December 9 meeting. Further, Campbell suggested Council discuss Gillespie's proposal at the study session which had tentatively been scheduled for December 22, 1981, to review city manager applications. I F. City Manager distributed November 18, 1981, letter from Senator Kerttula regarding the City's priority needs. G. City Manager distributed two memorandums from City Parks and Recreation Director John Noble dated November 19, 1981. He stated it was possible that an Army band and supporting units would be available to perform during the 1982 July 4 celebration in Seward. He confirmed he would submit the information to the Chamber of Commerce for advance planning. He stated he would also inform the Chamber of the Army's plan for a special train trip to Seward on December 19, 1981. H. City Manager stated the previous week the City had opened the bids on the Marathon hydroelectric project and contract award would probably be scheduled for the December 14 Council meeting. I. City Manager reported Dave Daisy with Fish and Game would be speaking before the Chamber of Commerce Board of Directors at their luncheon meeting of Tuesday, November 24, regarding the local king salmon fishery and all Councilmembers had been invited to attend. XIII. COUNCIL DISCUSSION: I A. City of Kenai Resolution No. 81-114 and City of Homer Resolution No. 81-8~ requesting reconsideration of the State law on reapportionment, to allow direct representation of first-class cities within the Kenai Peninsula Borough on the Borough Assembly, were noted. Following City Manager's comments on the State Constitution provisions, it was the consensus of Council not to act upon the resolutions. : ~ { ). ~ PAGE 304 REGULAR MEETING - NOVEMBER 23, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) B. Meehan stated the Fairbanks North Star Borough had submitted a resolution to the Alaska Legislature, requesting the declaration of a three-day weekend for the legislators March 13-15, 1982, while the State hosts the Arctic Winter Games. He requested that a Seward resolution be drafted in support of the Fairbanks legislation. XIV. CITIZENS' DISCUSSION: A. John Gillespie appeared from the audience and posed a question regarding the draft utility ordinance as discussed earlier in the evening. He stated his water line was buried 9 feet to the box; however, the City line was only buried 5 feet between the box and the main. As he interpreted the ordinance, he was responsible for maintenance of the line to the main, thus, if his interpretation was correct, the City was burdening him with a substandard line. City Attorney Hughes took note of the problem and stated she would investigate the matter. B. City employees John Gage and Floyd Ainsworth appeared from the audience and voiced objection to the City's withdrawal from the Federal Social Security program. City Manager stated that in response to a City employee petition and vote on the issue, the Council had approved a resolution which would remove the City from the Social Security system following the mandatory two-year waiting period. He confirmed the effective date of the opt-out was January 1, 1982, unless Council took other action. Further, he reported that another employee vote on the issue had been conducted the previous week; a 28/16 vote supported termination of Social Security. In response to a question from Ainsworth, City Attorney stated that to stay in Social Security or leave the system was an "all or nothing decision"--some employees could not decide to stay in the system while others decided to leave. In response to a statement from Gage, Campbell stated it had always been his personal opinion that the City would not give the employees the City's share paid into FICA. City Manager spoke on the increasing group health plan and PERS costs, all of which had been absorbed by the City. XV. ADJOURNMENT: The meeting was adjourned at (City Seal) "',,-, " " ", '-',,- ~" ""-~ '''~ PAGE 305 1. REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 CALL TO ORDER: The December 14, 1981, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Cripps. II. OPENING CEREMONY: Councilmember O'Brien led the pledge of allegiance to the I flag. III. ROLL CALL: IV. Present were: Mayor Cripps; Councilmembers Burgess, Campbell, Meehan, O'Brien, Soriano and Swartz Present also: City Manager Johnson, City Attorney Arvidson, Asst. City Manager Schaefermeyer and City Clerk Shanley APPROVAL OF MINUTES: It was moved by Soriano, seconded by Campbell and unanimously carried to approve the regular meeting minutes of November 23, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following addition be made to the consent calendar: I 4. Statement received December 14, 1981, from Baily and Mason, in the amount of $6,842.28, for legal services rendered in November 1981, relative to Chugach Electric Association negotiations - approve for payment and file In response to a request by the City Manager, it was moved by O'Brien, seconded by Meehan and unanimously carried to hold an executive session immediately following the regular meeting in order to discuss a legal matter. agenda: The following additions were made to the regular meeting XI. New Business: C. Waiver of deadline in Torkelson-Kellogg lease D. Christmas tree decorations Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried to approve the consent calendar and regular meeting agenda as amended and the following actions were taken: C ATTORNEY: I ABC B: LOC ORGS: ELECTRIC DEPT: 1. November 30, 1981, Invoice from Hughes, Thorsness, Gantz, Powell & Brundin for legal services rendered during October 1981, totaling $12,225.76, was approved for payment and filed. 2. Liquor License Application as submitted by the Seward Elks Lodge ItI173 for renewal of "club" service during 1982 was filed without objection. 3. Application for Authorized Games of Chance and Skill as filed by the Seward Senior Citizens for calendar year 1982 was filed without objection. 4. Statement received December 14, 1981, from Baily and Mason, in the amount of $6,842.28, for legal services rendered in November 1981, relative to Chugach Electric Association negotiations, was approved for payment and filed. ('"'>, .-'. PAGE 306 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of December 1, 1981. VIr. PUBLIC HEARINGS: CC/C MANAGER: A. Copies being made available to the public, public hearing was opened on proposed Ordinance No. 505 entitled: An Ordinance Relating to Administration, Amending Section 2.30.050 of the Seward City Code "Notice of Public Hearings on Proposed City Ordinance" as published two times in the local newspaper and posted, and text of current Sec. 2.30.050 of the City Code and related Charter provisions Sec. 2.3 and Sec. 5.4, were noted. Bernard C. Hu1m, Sandy Wassilie and Ronnie Lewis appeared from the audience and voiced objection to the proposed ordinance, stating that the provisions of the current ordinance, which prohibited councilmembers from serving as city manager until one year following expiration of their council term, acted as a protection against conflicts of interest. Wassilie spoke on the possibility of conflict in working relationships between the Council and a manager who had recently been serving as a counci1member. Bob McCabe and Helen Irick appeared from the audience and spoke in support of using local expertise, especially in light of the critical development presently underway in the city. No one else appeared from the audience in order to be heard and the public hearing was closed. Cripps confirmed that another public hearing was scheduled for the Council meeting of December 28 and, following the hearing, a vote for enactment would be considered at that meeting. VIII. CITIZENS' DISCUSSION: PERSONNEL: A. Harold Mowrey and Russell Snell, City electrical employees, appeared from the audience and voiced objection to the City's planned opt-out of the Federal Social Security program, effective January 1, 1982. They stated the IBEW union had a contract with the City and termination of Social Security coverage would be considered as a violation of that contract. In response to the employee's comments about votes taken on the issue, City Attorney stated the City had erred two years ago when a vote of the employees was taken on the issue and the IBEW employees were not allowed to vote due to an understanding that they would not be affected by the opt-out. He commented that since that time he had met with the IBEW employees and they had been given the opportunity to vote in a recently-held election on the issue but had not exercised their right. Linda Murphy appeared from the audience and voiced concern that the City Council had heard numerous comments from employees representing the minority view on the Social Security issue but had not received any comment from those employees in the majority who had voted on both occasions to opt out of Social Security. Murphy urged Council to support the wishes of the majority of the employees and to reaffirm its commitment made to the employees two years ago to opt out of Social Security. Campbell stated many employees were disgruntled because the City had not volunteered to give its share of Social Security contributions to the employees. He recalled, however, that two years ago when the Council was presented with the employees' request, the course had been made clear that the City did not intend to donate its portion to the employees. City Manager spoke on the various options open to the Council and reiterated that the issue was a Council decision, regardless of any vote taken by the employees. City Attorney stated the City had already negotiated with the IBEW employees regarding the proposed course of action; apparently, as witnessed by their testimony that evening, the IBEW employees wished to reopen negotiations and that would be an issue that the adminis- tration would have to resolve. PAGE 307 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (cont'd) PERSONNEL: Following discussion, it was moved by O'Brien, seconded by (cont'd) Soriano and carried as follows to reaffirm the previous action of the Council two years ago and continue with the opt-out process, in response to the request of the majority of the employees of the City: I Ayes: Noes: Absent: Burgess, Campbell, Cripps, Meehan None O'Brien, Soriano and Swartz IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: BUILDING/ 1. Copies being made available to the public and distributed ORDS: to Council, Cripps noted by title only proposed ordinance regarding City building codes, entitled: Creating Chapter 6 of the Seward City Code, Repealing Chapters 6, 13 and 18 of the Seward City Code City Attorney explained the ordinance attempted to combine all the various uniform published codes found throughout the City Code into one chapter. Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried to introduce proposed Ordinance No. 506. A public hearing date was set for January 11, 1981. B. Ordinances for Public Hearing and Enactment: BIDS-PURCH AGNT/ 1. Copies being made available to the public, Cripps ORDS: noted by title only proposed ordinance regarding City bidding procedures, entitled: I An Ordinance of the City of Seward, Alaska, Amending Bidding Procedures City Attorney distributed a proposed amendment to the ordinance which read: Without limiting the foregoing, no plea or defense of mistake by a bidder shall be available in any action by the City for the recovery of any deposit, or in any action on any surety bond or as a defense to any action based upon any refusal to execute a contract. City Attorney explained the amendment would clarify the City's position regarding errors contained in a bid document. I "Notice of Public Hearing on Proposed City Ordinance" as published two times in the local newspaper and posted, was noted. Public hearing was opened on the proposed ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by O'Brien, seconded by Meehan and unanimously carried to adopt the amendment to proposed Ordinance No. 503. It was moved by O'Brien, seconded by Meehan and unanimously carried to enact Ordinance No. 503. RECESS: The meeting was recessed at 8:40 p.m.; reconvened at 8:51 p.m. I ~! q PAGE 308 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: LEG REPS/ 1. Copies being made available to the public, Cripps RES: noted by title only proposed resolution regarding the Alaska State Legislature and the Arctic Winter Games, entitled: A Resolution Requesting the State Legislature Plan a Three-Day Weekend March 13-15, 1982 It was noted that the resolution had been requested by Meehan. It was moved by Campbell, seconded by Swartz and unanimously carried to approve Resolution No. 81-56. 4 TH OF AREA/ RES: JULY CREEK 2. Copies being made available to the public, Cripps noted by title only proposed resolution regarding the contract award for Phase III construction of the 4th of July Creek Marine Industrial Park, entitled: A Resolution of the City Council of the City of Seward, Alaska, Approving and Awarding a Contract to J.I.J. Construction, Inc., for Construction of Phase III, Dredging, Bulkheads and Shiplift Piers for the Marine Industrial Terminal at Seward, Alaska City Attorney distributed to the Council and the public an alternate resolution entitled: Resolution of the City Council of the City of Seward, Alaska, Permitting Withdrawal of Bid by J-I-J Construction Company and Awarding Phase III, Dredging, Bulkheads and Shiplift Piers to the Next Lowest Bidder, Chris Berg, Inc. City Manager read in full a letter dated December 9, 1981, from J.I.J. Construction Company, requesting withdrawal of its bid due to an error in the total amount presented. City Manager recommended the Council act on the substitute resolution as distributed that evening, awarding the contract to Chris Berg. Steve Jansen, Vice President, J.I.J. Construction Company, appeared from the audience and explained the clerical error which occurred in the company's bid; he requested Council approval of bid withdrawal. In response to a question from O'Brien, City Attorney spoke on the bid bond provisions. He explained that although the City would continue in its efforts to recover damages from J.I.J., passage of the alternate resolution and award of the contract to Chris Berg would greatly reduce the City's chances of action against the bid bond. He spoke on the project delays which could be encountered by not allowing J.I.J. to withdraw its bid. Following discussion, it was moved by Meehan, seconded by Campbell and unanimously carried to allow J.I.J. to withdraw and award the contract to Chris Berg (alternate Resolution No. 81-57 approved). O'Brien encouraged the administration to continue with any and all legal actions possible against J.I.J. PAGE 309 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) K P B/ RES: noted by title entitled: 3. Copies being made available to the public, Cripps only proposed resolution regarding Borough assessors, I A Resolution Requesting the Kenai Peninsula Borough to Provide Adequate Staffing of the Assessor's Office, to Continue at the Very Least the Practice of Biennial Real Property Assessments City Manager spoke in support of passage of the resolution, stating the cities throughout the Borough were joining in an effort to request the Borough to replace previously terminated assessor positions. It was moved by Campbell, seconded by Meehan and unanimously carried to approve Resolution No. 81-58. WATER/SGH/ 4. Copies being made available to the public, Cripps RES: noted by title only proposed resolution regarding the contract award for the Mt. Marathon hydroelectric project, entitled: A Resolution of the City Council of the City of Seward, Alaska, Approving a Contract With Elling Halvorson, Inc., for Construction of the Mount Marathon Water/Hydro- electric Project I City Manager noted award of the contract project funds from the State of Alaska. moved by Soriano, seconded by Swartz and Resolution No. 81-59: was made subject to receipt of Following discussion, it was carried as follows to approve Ayes: Noes: Abstain: Absent: Burgess, Cripps, Meehan, O'Brien, Soriano and Swartz None Campbell None (Campbell abstained due to his employment as Seward General Hospital Administrator and the project was for the hospital.) X. UNFINISHED BUSINESS: A. City Manager stated discussion of the Rollins, Burdick, Hunter proposal for City insurance coverage for the 4th of July Creek development was a moot point since the Phase III contract had been awarded with the contractor providing necessary insurance due to the lack of savings with City blanket coverage. XI. NEW BUSINESS: 4TH OF JULY A. Change Order No. 3 to the Nash Road Extension Contract CREEK with Wilder Construction, dated November 1981, decreasing the total IAREA:contract amount by $11,443.85, was noted. City Manager requested Council approval of the Change Order to close out the project; it was so moved by Campbell, seconded by O'Brien and unanimously carried. REFUSE SERVICE: B. December 7, 1981, letter from Seward Service, requesting an 18 percent increase in refuse rates, effective January 15, 1982, was noted. Also noted was "Contractual Agreement for the Collection and Disposal of Garbage, Rubbish and Waste Material in the City of Seward, Alaska" as entered into January 16, 1980, between Herman Leirer d/b/a Seward Service, and the City of Seward. City Manager stated the requested ,~ .'1 I 'i REFUSE SERVICE: (cont'd) PAGE 310 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 XI. NEW BUSINESS: (cont'd) increase of 18 percent was less than the increase in the cost of living over the past two years. O'Brien questioned whether the rate increases were traditionally tied to the rate of inflation or if the contractor was required to justify the increase based on higher operating costs. City Attorney responded, stating the contractual agreement was unclear but Council certainly had the authority to request such justification. Following discussion, Cripps, with Council consent, requested the garbage contractor justify the requested 18 percent rate increase based upon operating cost records. 4TH OF JULY C. City Manager spoke on the benchmark deadlines as set forth CREEK AREA~n the Lease Agreement entered into between the City and Torkelson- Kellogg, Inc., for construction of a coal facility to be located in the 4th of July Creek area. He distributed letter dated December 14, 1981, from Torkelson-Kellogg President W.J. Price, requesting that the January 1, 1982, deadline as contained in the lease be extended to July 1, 1982. City Attorney stated that if Council was amenable to the request, a motion would be in order that the Council would agree not to pursue its remedies against Torkelson-Kellogg for its breach of the October 1 deadline (when they were to have the coal contract signed with Usibelli), and would permit Torkelson-Kellogg to breach its January 1 deadline (to commit to build the small facility), until July 1, 1982; it was so moved by Soriano, seconded by Campbell and unanimously carried. C HALL: D. O'Brien commented on the Christmas tree located on the side of Bear Mountain which in year's past had been lit with tree lights. He stated most of the lights were burnt out and questioned why the electrical crew had not replaced the lights. The liability issue was addressed and, following discussion, Burgess stated he would locate volunteers to replace the Christmas tree lights on the tree. XII. CITY MANAGER REPORTS: A. City Engineer Small appeared from the audience and spoke briefly on the 4th of July Creek stream relocation contract cost over- runs. He reported current estimates amounted to approximately $200,000 in overruns due to an error in survey profiles. In answer to a question, he confirmed the problem was caused by improper work performed by the engineer, not a contractor error. In closing, he stated he would have a full report for Council at its December 28 meeting. B. City Manager stated the six-month lease of office space in the Phoenix Building for use by the Parks and Recreation Department, as approved by Council July 13, 1981, was due to expire during the month of December. He requested Council authorization to renegotiate another six-month lease for the office space. In response to a question by Campbell, City Manager spoke on the proposed long-term solution to construct a frame building adjacent to City Hall which could be used by the Engineering Department during the 4th of July Creek development, thus freeing up space in City Hall for the Parks and Recreation Department. He stated following close-out of the 4th of July Creek project, the building could be used as the local teen center. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried to authorize the City Manager to enter into a lease with Seward Real Estate Company for 400 square feet of office space for the sum of $375 per month, for a period not to exceed six months. C. City Manager distributed and read in full a letter he proposed to send to William Noll of Suneel Alaska Corporation, regarding Suneel's plans to construct a coal facility in Seward. He stated the letter was written to dispel local rumors that the City administration was acting to hinder Suneel's development in Seward. Cripps, with Council consent, approved the letter. I I I PAGE 311 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) D. City Manager distributed and briefly reviewed a summary budget sheet showing City departmental budget status as of November 30, 1981. E. City Manager informed Council of an invitation extended by VECO to an open house in Anchorage on December 18, 3:30 to 9:00 p.m. F. City Manager reported the City was consistently receiving information regarding "Alaska '84" and requests for Seward's participation and designation of a local individual as contact person. Meehan, with Council consent, suggested the City keep the door open without committing itself to any involvement at this time. XIII. COUNCIL DISCUSSION: A. Seward General Hospital Association Board of Trustees special meeting minutes of December 2, 1981, were noted. Campbell stated the Board had been reviewing long-range financing options and had asked to meet in study session with the Council following the holiday season. B. December 2, 1981, letter from the City of Homer, requesting a resolution supporting an amendment to Title 29 of the State Statutes-- Platting, Planning and Land Use Regulations--was noted. City Manager stated that although he thoughtstCh a resolution would be an exercise in futility, he believed the City should support Homer's efforts, and, with Council consent, stated a resolution would be submitted for Council action at its December 28 meeting. C. City Attorney distributed revised copies of proposed Ordinance No. 504 regarding City utilities. O'Brien voiced concern that a provision should be added to provide grandfather rights for some nonconforming utilities, providing safety was not an issue. City Attorney confirmed he would present draft language in response to O'Brien's concerns at the Council's next meeting. D. December 7, 1981, letter from Century 21, Heritage Homes, regarding Terminal Addition marketing, was noted. Meehan noted an hour's time on the January 25 agenda had been requested and suggested that the presentation be limited to 15 minutes. City Manager distributed letter dated December 14, 1981, from the City Attorney regarding the Terminal Addition land sale. Following discussion, City Clerk confirmed she would notify Century 21 of the l5-minute time limit on a presentation to be scheduled for the January 25, 1982, Council meeting. E. In response to a question from O'Brien, City Manager stated location of the Ft. Raymond plaque as presented to the City a few months ago would be resolved in the near future and dedication was planned for the 1982 July 4 celebration. F. O'Brien commented on the City Clerk's recent article in the local newspaper, correcting inaccuracies in an article written by the newspaper staff reporting events of a previous Council meeting. He stated he had received numerous positive comments about the article and suggested that the Clerk be directed to correct errors in the newspaper's reporting on a regular basis, as part of her job description. City Manager stated he thought the request would place a burden on the City Clerk which was not necessary since the newspaper received a copy of the Council minutes. Campbell agreed, stating any such efforts would be unsuccessful considering the editorial comments written as follow-up to any such corrections. G. in Seward the made plans to Soriano reported the Polish fishing fleet would be arriving following day and the City and Chamber of Commerce had greet the men. H. Cripps noted the City had received a Certificate of Appreciation from the Lions Club for its services and cooperation. " -; n PAGE 312 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. ADJOURNMENT: The meeting was adjourned at 10:32 p.m. and, after a short recess, the went into executive session to discuss a legal matter. . ," !1 ,: ,\':j (lS '. ~c - ,- _.' ./ -, ~i1/Y\ i/J Jo ~_ E. Shanley, CMC(J City Clerk . ' . / ,'/:,i Lc ~d[JV< LtJI' Donald W. Cripps Mayor (City Seal) ------------------------------------------------------------------------- PAGE 312 REGULAR MEETING - DECEMBER 14, 1981 VOLUME 19 as scheduled following adjournment of the regular "-\.. . (City Seal) ---------------------------------------------------------------------------- PAGE 312 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 I. CALL TO ORDER: The December 28, 1981, regular meeting of the Seward City Council was called to order at 7:33 p.m. by Mayor Cripps. I I. OPENING CEREMONY: Councilmember Meehan led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Cripps, Councilmembers Campbell, Meehan, O'Brien, Soriano and Swartz. Absent with Council consent was Councilmember Burgess. Present also: City Manager Johnson, City Attorney Hughes, Assistant City Manager Schaefermeyer, and Deputy City Clerk Murphy PAGE 313 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by O'Brien and unanimously carried by all those present to approve the regular meeting minutes of December 14, 1981, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: I City Manager requested the following be deleted from the regular meeting agenda: XII. City Manager Reports: A. Fourth of July Creek Relocation Contract cost overruns The following addition was made to the regular meeting agenda: XII. City Manager Reports: E. Budget for Seward Trade Mission to Japan City Manager also noted corrected copy of proposed Resolution No. 81-60, which had been distributed to Council prior to the start of business. At the request of Mayor Cripps, it was moved by Campbell, seconded by Meehan and unanimously carried by all those present to hold an executive session immediately following the regular meeting in order to discuss a financial matter. Following discussion, it was moved by O'Brien, seconded by Meehan, and unanimously carried by all those present to approve the consent calendar as presented and the regular meeting agenda as amended and the following actions were taken: I FINANCE DEPT: 1. Finance Department's list of accounts payable for November 1981, totaling $1,799,098.44, was approved for payment and filed. C ATTORNEY: 2. December 23, 1981, invoice from Hughes, Thorsness, Gantz, Powell and Brundin for legal services ren- dered during November 1981, totaling $15,454.61, was approved for payment and filed. LOC ORGS: 3. Applications for authorized games of chance and skill as filed by Mt. Marathon Native Assoc., Seward High School, and Wes-Gen Auxiliary were filed without objection. 4. Liquor License Applications as submitted by Dream- land Bowl, Thorn's Showcase Lounge and Yukon Liquor Store for renewal were filed without objection. ABC B: 5. Monthly progress report No. 2 for the Grant Lake Feasibility Analysis for the month of November 1981, as submitted by the Alaska Power Authority was noted and filed. ELEC DEPT: VI. BOROUGH ASSEMBLY REPORT: I Kenai Peninsula Borough representative Darryl Schaefermeyer gave a verbal report on the Assembly meeting of December 15, 1981. VII. PUBLIC HEARINGS: None. PAGE 314 REGULAR MEETING -'DECEMBER 28 ;1981 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Obie Weeks, a representative of the Alaska Railroad, and Bill Noll of Suneel appeared from the audience to discuss the proposed dredging of the west face of the railroad dock. Weeks noted that when the dock was originally constructed in 1964, the contract with the Corps of Engineers called for -35 feet of water on either side of the dock, and it wasn't until the Spring of 1976 that it was discovered that the west side of the dock was not that deep. At that time a permit was obtained to do some additional dredging, but the railroad was given only one month in which to dispose of the dredged materials. Consequently, the job was never completed satisfactorily. With the prospect of in- creased use of the dock as a result of the contract signed with Suneel, it will now be necessary to complete the dredging of the west face of the dock to accommodate the sh1ps which will be exporting the Usibelli coal. Noll then explained the contract Suneel had signed with Usibelli and went on to note that a market for the coal had been found in Korea. He presented Council with initial drawings of the proposed coal facility in Seward and explained the operation from the arrival of trains every two to two and one-half days through the loading of the coal onto awaiting ships. Meehan voiced his concern over the prospect of blocking the road to the Kenai Lumber Mill for periods of up to two and one-half hours. Noll explained that the railroad cars would be brought ih at a time which would cause the least inconvenience to those using the road. In response to a question from Campbell, Weeks explained that the application for a permit for dredging had been signed on December 21, 1981, and because of the groundwork laid by the City in, ,the per- mitting process for the Fourth of July Creek facility, no delays were expected in obtaining permits for the railroad dock dredging. The permit is expected by April 1, 1982, and the railroad proposed to begin dredging as soon as the ground thaws in the spring. Weeks then noted a letter from Frank Jones to the City sug- gesting that the City act as the railroad's agent,thereby permitting the railroad to use Chris Berg, Inc. to do the dredging for the railroad dock as well as the Fourth of July Creek Phase III dredging. City Manager explained that he could foresee problems ahead for the City if Council decided to approve a change order to permit this. Since the Fourth of July Creek dredging is financed by the State, the City may be in violation of State law if the railroad project is attached to the Chris Berg contract. City Attorney stated that according to the Charter, Council can only contract for the City's business, and that in acting as an agent for Alaska Railroad the City would be in violation of the Charter and would be assuming responsibilities and liabilities that the City should avoid. Both City Manager and City Attorney agreed to re- search this further and report back to Council at the ,January 11, 1982, meeting. Assistant City Manager Schaefermeyer outlined for Council the procedures for creating special assessment districts and noted that the process from publication through public hearing and resolution would take at least six weeks to two months. In response to a question from Campbell, Noll construction of the coal facility could begin independent and that Suneel is hoping to break ground this spring and should be operational in ten to twelve months. state that of dredging, the facility IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None PAGE 315 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (Cont'd) CC/C MANAGER/ ORD: B. Ordinances for Public Hearing and Enactment: 1. Copies being made available to the public, Cripps noted by title only proposed ordinance relating to a&ninistration, entitled: I An Ordinance Relating to Administration, Amending Section 2.30.050 of the Seward City Code "Notice of Public Hearing on Proposed City Ordinance" as published three times in the local newspaper and posted, was noted. Public Hearing was opened on the proposed ordinance. Brent Whitmore ap- peared from the audience and spoke in favor of the ordinance stating that the City needs to make it possible for those who have been involved in on-going projects within the City to at least have the opportunity to be considered for the position of City Manager. No one else appeared from the audience to be heard at this time, and the Public Hearing was closed. Following discussion, it was moved by Soriano, seconded by O'Brien and carried as follows to enact Ordinance No. 505.: Ayes: Noes: Abstain: Absent: Cripps, Meehan, O'Brien, Soriano, Swartz None Campbell Burgess (Campbell abstained due to the fact that he has applied for the position of City Manager.) C. Resolutions: I REFUSE 1. Copies being made available to the public, Cripps SERf by title only proposed resolution revising the rates for garbage and RES: refuse removal, entitled: noted A Resolution Establishing Rates for Garbage and Refuse Removal Services for the Period Commencing January 15, 1982 City Manager noted that at the regular meeting of December 14, 1981, Seward Services had requested an 18% rate increase over the rates set two years ago for garbage and refuse removal, and at that time Council had requested that Herman Leirer of Seward Services justify the increase by furnishing Council with a cost breakdown comparing today's costs with those two years ago. City Manager noted that this cost breakdown was in Council's packets for their review and that Mr. Leirer was present to answer any questions Council might have. Following discussion, it was moved by Soriano, seconded by Meehan and unanimously carried by all those present to approve Resolution No. 81-60. 2. Copies being made available to the public, Cripps noted by title only proposed resolution amending Title 29, entitled: P&Z/RES: A Resolution of the City Council of the City of Seward, Alaska, Requesting Amending Lan- guage to the Proposed Title 29 (SB 180), Chapter 40, Platting, Planning and Land Use Regulations I City Manager noted that this resolution had been drawn up and presented to Council at the request of the City of Homer, but felt that since the cities of the Kenai Peninsula are the only ones affected by this proposed amendment, the passage of the resolution would be an exercise in futility. Assistant City Manager stated that while the idea of amending the proposed changes in Title 29 was a valid one and one which he supports, he felt that this particular resolution was not strong enough and that first class cities should be given planning and zoning powers outright along with the State revenue sharing monies necessary to finance it. City Manager added that he felt Council should approve the resolution to show the City's support of Horner in this matter. Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve Resolution No. 81-61. .;1n PAGE 316 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (Cont'd) C. Resolutions: (Cont'd) Campbell requested that the ~dministration draft a resolution of its own using the stricter language suggested by the Asst. City Manager. City Manager promised to have the resolution ready for the January 11, 1982, meeting. RECESS: The meeting was recessed at 8:44 p.m.; reconvened at 8:55 p.m. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: None XII. CITY MANAGER REPORTS: HARBOR: B. Change Order No.1, dated December 9, 1981, as submitted by King, Harness and Oien, in the amount of $4,108, for the Harbor Office renovation project was noted. City Manager explained that originally the administration had tried to save the City some money by completing the renovations as cheaply as possible. After awarding the contract, it was discovered that by spending a little more money to purchase better materials such as cast iron coin boxes, the City could save a great deal of money in the future on maintenance of the Harbormaster's building. It was also learned after awarding the contract that a performance bond would be required because the project was State funded. Following discussion, it was moved by Campbell, seconded by O'Brien and unanimously carried by all those present to approve Change Order No. 1 as submitted by King, Harness and Oien for the Harbor Office renovations. 4TH OF CREEK AREA: JULY C. City Manager noted that at the request of the City, Wilder Construction had deepened the spawning channels which had been constructed by Chris Berg, Inc. in conjunction with the Fourth of July Stream Relocation Project. Because of sloughing problems within the channels, it was discovered after Chris Berg, Inc. had left the project site that the channels were not deep enough to insure the success of these channels as salmon spawning habitat, and it was the administration's recommendation that the City Manager be authorized to charge the Fourth of July Stream Relocation Project No. 212000, $13,004.93 to be paid to Wilder Construction. Following discussion, it was moved by Soriano, seconded by Meehan and unanimously carried by all those present to authorize payment of $13,004.93, on project #212000, to Wilder Construction Co. WATER DEPT: D. City Manager noted a request from OTT Water Engineers for an increase in the design budget for the Marathon Hydro/Water Project in the amount of $25,000. City Engineer Small explained that the Alaska Energy Center had originally agreed to do part of the design work on this project, but with the phase out of the Energy Center, OTT Water Engineers had to complete this work. It was also noted that the State has agreed to reimburse the City for the additional costs. Following discussion, it was moved by Meehan, seconded by Soriano and carried as follows to accept the $25,000 cost increase as requested by OTT Water Engineers: Ayes: Noes: Abstain: Absent: Cripps, Meehan, O'Brien, Soriano and Swartz None Campbell Burgess (Campbell abstained due to his employment as Seward General Hospital Administrator and the project was for the hospital.) I I I P&Z: CC: PAGE 317 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 XII. CITY MANAGER REPORTS: (Cont'd) E. City Manager noted that a Seward Trade Mission to Japan had been planned for February 5-20, 1982. Participating from the business community would be Dale Lindsey, Edgar Blatchford, Albert Kawabe, and either Robert Booher or Robert Richardson of the Alaska Vocational Technical Center. The Administration requested a budget of $6,000 to send Councilmember Campbell and Kerry Martin, future Port Director for the City, as Council's representatives. He noted that the purpose of this trade mission was to sell Seward to Japan, stressing the importance of developing good will and discussing future shipping between Seward and Japanese ports. Following discussion, it was moved by O'Brien, seconded by Soriano and unanimously carried by all those present to authorize City Manager to establish a budget of $6,000 to send two representatives from Seward on the proposed February Trade Mission to Japan. F. City Manager stated that he was to meet with Bud Schultz of Chugach Electric Association on December 29, 1981, in Anchorage to discuss the City's contract with CEA. 29, 1981, Center to G. City Manager stated that while in Anchorage on December he would be meeting with representatives of the Alaska Energy sign the contract for the Marathon Hydro/Electric Project. XIII. COUNCIL DISCUSSION: A. City Manager noted grandfather clauses for proposed Ordinance No. 504 regarding City utilities as drafted by City Attorney at the request of Council and proposed amendment to Section 22.50.010 of the Seward City Code. City Attorney explained that the effect of this amendment would be to extend the time limit for hooking up to the City sewer system to 12 months with provision for an extension of up to 6 months at the discretion of the City Engineer. City Attorney went on to explain that the Utility ordinance covers only hookups to City services and does not deal with compliance with local building codes, making grandfathering for anything other than sewer unnecessary. Following discussion, it was decided to include Section 22.50.010, as amended, in the Utility ordinance. City Attorney called Council's attention to amended pages 5, 11, and 21 which had been distributed prior to the commencement of business, and explained that the following changes had been made: On page 5, Section 22.10.030. Deposits, paragraph 1, line 5, the words "...or another account is established..." were added to the end of the sentence. Paragraph 2 of the same section was changed to read that the deposit "...shall be refunded..." instead of "", shall be applied to the customer's account...". The correction on page 11 was a misplaced asterisk. On page 21, Section 22.40.110. Wiring Instructions, line 4 was changed to read "...City's Engineering Department..." instead of "... City Clerk's Office..." Council agreed to accept the changes as made without objection. B. December 11, 1981, application for the vacancy on the Seward Advisory Planning and Zoning Commission as submitted by John A. Blackwell was noted. Meehan stated that he knew Blackwell personally and felt that he would be a good addition to the Planning and Zoning Commission. Cripps concurred with Meehan's statements, and there being no objection from Council, appointed Blackwell to a term on the Seward Advisory Planning and Zoning Commission expiring February 1983. C. December 14, 1981, letter from Bayly, Martin and Fay of Alaska asking for the opportunity to review and quote the City's insurance program was noted. Following discussion it was decided that a letter would be sent to Bayly, Martin and Fay stating that there was no need for a review at this time. . ~ -~ \-' , ~ : ~ \ PAGE 318 REGULAR MEETING - DECEMBER 28, 1981 VOLUME 19 XIII. COUNCIL DISCUSSION: (Cont' d) D. Swartz commended the Street Department for getting out and correcting the icy conditions of the roads. E. Cripps stated that he had attended the December 22, 1981 Mayor's meeting in Soldotna and had been favorably impressed by Anchorage Mayor Tony Knowles. He noted that a report on the meeting had been drafted and would be distributed to Council by the Clerk's office. XIV. CITIZENS' DISCUSSION: SISTER CITY: A. Brent Whitmore appeared from the audience and read a letter from Mayor Tomoto of Obihiro, Japa~ which he had received along with several drawings and watercolors done by school children in Obihiro. He stated that he would be visiting the Seward schools with the paintings with the idea of displaying the Japanese art and encouraging local youth to submit some Alaskan art to send to Obihiro. xv. ADJOURNMENT: The meeting was adjourned at 9:35 p.m. and, after a short recess, the Council went into executive session to discuss a financial matter. l /(J(:" . Z CO L/t'/..../Ct t'Ll ;1,/)., Donald W. Cripps Mayor ---------------------------------------------------------------- PAGE 318 REGULAR MEETING - JANUARY 11, 1982 VOLUME 19 I. CALL TO.ORDER: The January 11, 1982, regular meeting of the Seward City Council was called to order at 7:31 p.m. by Mayor Cripps. II. OPENING CEREMONY: Councilmember Meehan led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Cripps; Councilmembers Campbell, Meehan, O'Brien, Soriano and Swartz (Absent, with Council consent, was Councilmember Burgess) Present also: City Manager Johnson, City Attorney Hughes, Assistant City Manager Schaefermeyer, City Clerk Shanley and Deputy City Clerk Murphy IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Meehan and unanimously carried by all those present to approve the regular meeting minutes of December 28, 1981, as written.