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HomeMy WebLinkAbout1988 City Council Minutes I I I PAGE 11 REGULAR MEEI'ING - JANUARY 11, 1988 VOLUME 23 ney Arvidson, Administrative Assistant Martin, Port Marketing Director Gates, Police Chief Bencardino, Utilities Engineer Anderson, Parks & Recreation Director Andrijanoff, and City Clerk Murphy IV. APPROVAL OF MINUTES: HILTON MJVED TO APPROVE THE NOVEMBER 23 AND DECEMBER 14, 1987, MINUTES AS WRITTEN; THE MarION WAS SECONDED BY SIMUI'IS AND CARRIED UNANJM.:>USLY. V. APPROVAL OF CONSENT CALENDAR & REGUlAR MEETING AGENDA: MEEHAN MJ\1ED TO MEEI' IN EXECUTIVE SESSION IMMEDIATELY FOLLCWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS A PERSONNEL MATTER AND A CONFIDENTIAL MEMJRANDUM WHICH HAD BEEN RECEIVED FROM THE CITY ATTORNEY CONCERNING PCJl'ENTIAL LITIGATION; THE IDI'ION WAS SECONDED BY NOLL AND CARRIED UNANIMJUSLY. 0' Brien requested that Consent Calendar Item No. 18 [rrerrorandum concerning possible consolidation of the Comnunity Library into the city administrative structure] be placed on the Regular Meeting Agenda as Item No. XI (A) . Schaeferrreyer with- drew Regular Meeting Agenda Item No. IX (A) (2) [proposed Ordinance No. 601, setting standards for vehicle windshields and wipers] from the agenda. He stated that the administration intended to present a resolution urging the state to adopt cortparable legislation at the next nEeting. MEEHAN MJ\1ED TO APPROVE THE REX;ULAR MEEI'ING AGENDA AND THE CONSENT CALENDAR AS AMENDED; THE IDTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIM:USLY. The follooing actions were taken: 11 1. Resolution No. 88-001, in recognition of the PERSONNEL/RESO: outstanding contributions of Ronald A. Garzini to the city of Seward, was approved and filed; 2. Resolution No. 88-002, authorizing the signatures for the city bank account and rescinding all previous resolu- tions in conflict herewith, was approved and filed; 3. Resolution No. 88-003, appointing Darryl Schaef- errreyer as Interim City Manager and setting his salary, was approved and filed; FINANCE DEPT/RESO: (Bank Account) PERSONNEL/RESO: (Appointments) 4. Resolution No. 88-004, authorizing the purchase PRISON/PURCHASING/ of two sentinel sarrpler systems without full utilization of city RESO: bid procedures, was approved and filed; ( C5E154755 ] 12 PAGE 12 RB:;ULAR MEEI'ING - JANUARY 11, 1988 VOLUME 23 SBH (Tariff) /RESO: 5. Resolution No. 88-005, setting fees for the Seward Municipal Small Boat Harbor and rescinding all prior resolutions in conflict herewith, was approved and filed; C.ATTY: 6. December 8, 1987, invoice from Wohlforth, Flint & Gruening for legal services rendered in Noverrber 1987, totalling $471.36, was approved for payrrent and filed; C. ATTY: 7. Decenber 7, 1987, invoice fonn Wiley, Rein & Fielding for legal services rendered in Noverrber 1987, totalling $2.32, was approved for payrrent and filed; C.ATTY: CLAIM FOR DMGS: (J. Peed) PURCHASING/CON- ~: (Petrole- um Products) PRISON/CON- 213 : (Fire Access Rd.) SMIC/CON- 21"l: (Drainage dtch) SBH(Boardwalk): ABCB: ABCB: GAHES OF CHANCE I & SKILL: ;. 8. December 30, 1987, invoice from HTGP&B for legal services rendered in June 1987, totalling $11,364.73, was approved for payrrent and filed; 9. Claim for damages filed by John Peed for alleged damage to electrical appliances was denied; 10. January 4, 1988, rreIIOrandum from Utility Engineer Jack Anderson recorrrrending award of a contract for diesel oil, regular gasoline, unleaded gasoline, gear lubricant, cleaning solvent and transmission fluid to Marathon Fuel Corporation, and recorrrrending award of a contract for chassis grease, antifreeze, hydraulic oil and transmission lubricant to Bay Fuels for a I-year period with an option for a I-year renewal/extension, was approved and filed; 11. December 21, 1987, rreIIOrandum from Engineering & Utilities Manager E. Paul Diener recorrrrending award of a con- tract to construct a fire access road at the Spring Creek Correctional Center to D & L Construction for NTE $23,900, was approved and filed; 12. December 21, 1987, rreIIOrandum from Engineering & utilities Manager Diener recomrending award of a contract for construction of a drainage ditch for the SMIC for NTE $10,890, was approved and filed; 13. January 6, 1988, rreIIOrandum from Administrative Assistant Kerry Martin recorrrrending approval of an assignrrent of SBH Boardwalk Lease Site No. 5 from Michael M:::Kern to lee Gordanier, was approved and filed; 14. ABCB notification of applications for renewal of liquor licenses as filed by the YUKON J3..Z\R, HARBOR DINNER CLUB, BREEZE INN, GATEWAY LIQUOR & FOOD MARl', and BPO ELKS #177 3, was filed without objection; 15. ABCB notification of application for restaurant designation as filed by BREEZE INN, was approved and filed; 16. Applications for Permits for Ganes of Chance and Skill as filed by AMERICAN IEION POST #5, SEWARD CHAMBER OF r CSE15475& ) I I I PAGE 13 REGULAR MEEl'ING - JANUARY 11, 1988 VOllJME 23 COMMERCE, SEWARD LIFE ACI'ICN COUNCIL, and SEWARD BAND & CHOIR BCOSTERS ASSOCIATION, were filed without objection; 1~ 17. Change Order No. 2 (arrended) to the Underwater/ CON-::/5: &'walling contract for ship transfer system civil work, extending the completion date for electrical ~rk to February 13, 1988, was noted for information and filed; and 18. M:NED TO RffiULAR MEEI'ING AGENDA. VI. BOROUGH ASSEMBLY REPORI': Kenai Peninsula Borough Assembly President Jonathan Sewall was not present at this t:irre and his report was deferred until later in the rreeting. [SEE PAGE 15.] VII. PUBLIC HEARINGS: A. Notice of public hearing as posted and published by law relative to a proposed long teDll lease of city property to Chugach Alaska Corporation for the construction and operation of a forest products manufacturing and/or electric co-generation facilities was noted and the public hearing was opened. Port Marketing Director CHRIS GATES stated that this project was the culmination of 5-6 !lOnths work with Chugach Alaska Corporation (CAC) to construct a major sawnill in Seward. He stated that the lease would be comprised of approximately 20 acres of land directly adjacent to the Marine Industrial Center on what was the old "Wheelabrator-Frye" lease site. In addition, CAC would have first right of refusal on two parcels at either end of the lease site. He explained that eN:. estimated that it would errploy 80 to 100 fullt:irre errployees after rraking a $12-$16 Million investrrent in the construction of the facility. Gates stated that the electric generation facility would utilize waste (bark, etc.) which was too costly to dispose of in any other way and would produce electricity and stearn to operate the facility. Any excess power might be purchased by the city. eN:. currently plans to manufacture dirrensional lunber and chips. Gates stated that financing should not be a problem, adding that the city's only involverrent in the financing would be the sale of industrial developrrEnt bonds such as those sold to assist Suneel and Seaways Express. He added that this lease would provide a good anchor tenant for the SMIC. In response to questions frClTI the Council, Gates stated that the city would assist with easerrents necessary for the construction, but that eN:. ~uld be responsible for all environITenta1 and other penni tting. He further stated that the lease agreerrent was very specific in that no subordination of the lease would be allowed. He stated that the agreerrent provided for lease credits based on capital investrrent and the provision of jobs and noted that this type of incentive lease is proper if the objective of the city is jobs and increased economic activity for the corrmunity. Gates also noted that, if PUBLIC HEARINGS: (Chugach Alaska lease/sawmill) ( CSE154757 1 14 PAGE 14 REX;ULAR MEEI'ING - JANUARY 11, 1988 VOllJME 23 approved by the Council, the CAC Board of Directors ~uld consider approval of the agreeITent at its January 20, 1988, rreeting. PAUL 'IWEITEN, CAC Tinber Division Manager, stated that CAC had been researching the possibility of developing a savJlllill sorrewhere on the Gulf of Alaska since 1986 in an effort to increase the economic viability of the corporation and to provide enployment opportunities. He stated that CAC had identified a 20-year supply of lumber for the proposed sa\\IDill. He noted that, initially, CAC had considered other locations, including Cordova, but Seward proved to be the economic choice. He noted that current plans call for the mill to be operational in 1989. In response to a question fran Sirmtis, Tweiten stated that, follooing approval of the agreeITent by the CAC Board, CAC ~uld begin the pemitting and financing process. No one else appeared in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: (With prior notice only) None IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. public, Gieseler entitled: Copies having been made available to the noted by ti tIe only a proposed ordinance AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE 1987 EDITION OF THE NATIONAL ELECI'RICAL CODE. HILTON MJVED TO INTRODUCE PROPOSED ORDINANCE NO. 600; THE IDI'ION WAS SECONDED BY DUNHAM AND CARRIED UNANThUUSLY. Public Hearing was scheduled for January 25, 1988. 2. Deleted B. Ordinances for Public Hearing and Enactment: RECORDS & RETENTION/ 1. ORD: (Public ac- public, Gieseler cess to Records) entitled: Copies having been made available to the noted by title only a proposed ordinance AN ORDINANCE OF THE CITY COUNCIL OF WE CITY OF SEWARD, ALASKA, AMENDING THE CITY CODE RELATIVE TO ACCESS TO PUBLIC RECORDS. ( CSE 1~4758 ) I I I 15 PAGE 15 REGULAR MEEI'ING - JANUARY 11, 1988 VOLUME 23 Notice of public hearing as ]X)sted and published by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. SIMlJTIS M:NED TO ENACT PROPOSED ORDINANCE NO. 599; THE IDI'ION WAS SECONDED BY NOLL. Arvidson noted the follooing aITendrrents which had been recoIlIlended by the Seward Trade and Comrrerce Advisory Board: 1. In Section 2-5 (j), change "port of Seward" to "city of Seward"; and 2. In Section 2-5 (k), insert "or financial" folloo- ing the word "technical"; O'Brien stated that he was concerned that the public perception of such a long and specific ordinance ~uld be that the city was trying to "hide sanething". SchaeferTIeyer explained that the state has a very specific records disclosure statute and the city has no choice but to folloo suit. Hilton stated that charging the public for copies of city docurrents gave incurrbent mayors and councilrrembers an advantage during the election process since a mayor or council- rrember could request copies of city docurrents at. no charge. After serre discussion, it was a consensus of the Council that the administration should treat all candidates for elective office equally once they have filed for city office, charging incumbents in the sane manner as others are charged for research and copying of city docurrents. Murphy noted that a section deleting Sections 2-1 and 2-2 of the City Code ~uld have to be added to the ordinance. She also requested that the number "four" be inserted in the blanks in Section 2-2. SIMUTIS and NOLL agreed to incorporate the changes noted by Arvidson and Murphy into the !lOtion to enact the ordinance. THE QUESTION WAS CALLED AND ORDINANCE NO. 599 WAS ENACTED BY UNANIMOUS VOTE OF THE caJNCIL. NOTE: KPB Assembly President Sewall presented his report of the January 5, 1988, rreeting of the Assembly. RECESS: The rreeting was recessed at 8:50 p.m. and reconvened at 9:00 p.m. C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: ( ;: SE 15475q ) 16 PAGE 16 REGUlAR MEETING - JANUARY 11, 1988 VOLUME 23 COMMUNITY DEVLPMT/RESO: (Hyett-Palma contract continued until 2/8/88) PUBLIC HEARINGS: (Hyett-Palma contract for Downtown en- hancement) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FRCM THE GENERAL FUND-FUND BALANCE TO THE COMMU- NITY DEVELOPMENT Burx;ET FOR THE PURPOSE OF IMPLEMENI'ING AND M:NITORING THE BUSINESS ENHANCEMENT STRATEGY PLAN. Gieseler noted that this issue had generated a great deal of corrmunity discussion and concern, and he ~uld, there- fore, pennit public hearing prior to Council discussion and action. He noted that each person desiring to speak ~uld be given three minutes. Public hearing was opened. JOHN BURCKHARDT, Nash Ibad, spoke in favor of the proposal to contract with Hyett-Palma to facilitate inplerrenta- tion of the plan/report which had been prepared as a result of the H-P initial contract with the city. He stated that the conmunity was behind this project and that the $60,000 requested was a small arrount to spend in lieu of making costly mistakes "do.Nn the line" should the business cOIlIllWlity attenpt to imple- rrent the plan without a professional facilitator. He stated that the business =nmuni ty is on the verge of doing sarething positive for the =nmunity and he encouraged the Council to support the proposed resolution. MARIE GAGE, 107 West Jefferson, presented a petition to the Mayor (bearing 6 signatures) in opposition to the plan as presented. She agreed that the plan was needed, but stated that the facilitator should be hired from within the state of Alaska, if possible, and added that the Council should not corrmit $60,000 to this project unless the city was prepared to fund the program through to completion. JIM PARRISH, 227 Fourth Avenue, spoke in favor of the proposed agreeITent with H-P. He admitted the need for a third * * party to fi1tflli!tI:J and coordinate the acti vi ties of the corrmmi- ty, but noted that the private sector was prepared to obtain and fund a coordinator for the later stages of the project. DARRYL R03ERS, 330 Second Avenue, stated that he had seen a lot of negative attitudes in Seward and had been im- pressed with the positive attitude of everyone involved in this project. He stated that this positive approach from the cormu- nity was worth !lOre than the $60,000 requested for the project. NEIL CAMERON, 525 Third Avenue, stated that he had been involved with the corrmittee from the beginning and ~uld hate to see the city's lack of support result in a loss of enthusiasm which the rrembers of the conrnittee =rently have. He urged the Council to support the resolution. DEBBIE PATAPOF, Mile 7, Seward Highway, stated that it was inportant that the community receive guidance from a profes- sional in order to "avoid pitfalls" and to "get the best results ** Should read "facilitate". ( CSE154760 ) I I I PAGE 17 REGULAR MEETING - JANUARY 11, 1988 VOLUME 23 utilizing the resources we have in toon". support of the resolution. She also urged No one else appeared in order to be heard and the public hearing was closed. HILTON MJVED TO APPRO\1E RESOLUTION NO. 88-006; THE IDI'ION ~'lAS S:OCONDED BY SIMUI'IS. Sinu.1tis stated that she was enthusiastic about the project and added that if there was opposition from the carmu.mi- ty, those people would have been present at the Council IlEeting to speak against it. She stated that is was exciting to see this many people working together in a positive vein. She added that this was a small investrrent for potential large gains. Meehan agreed that it was great to see so many people coming together for one project. He stated that the city has spent a lot of !lOney to develop other projects to provide jobs for the COII1l1U11ity, adding that it was noo time to support the doontoon business district. Hilton concurred that it was time the city spent sane !lOney "doontoon". He stated, hooever, that he ~uld like to see sorrething in writing showing the corrmitrrent of the business corrmunity to continue on with the project and suggested phasing the funding. He also suggested an "escape clause" in the H-P agreeITent which ~uld alloo the city out if H-P failed to rreet expectations or if the business cormunity determined that it did not need them (H-P) at SOIlE point in time. O'Brien stated that he was disappointed in the docu- rrent which had been prepared by H-P. He stated that, of the 30 pages contained in the report, 18 were a sales pitch for Phase 2. He also stated that at least 90% of the report was "boiler- plate". He suggested that the city conduct a household survey to determine the carmu.mi ty I S desires before spending any !lOre public !lOney on this project. He also objected to hiring outside the state. He stated that he was in favor of the concept and the project but asked that action be deferred until 1) another public hearing could be scheduled; 2) a box-holder survey could be conducted; 3) the Comnittee could analyze the proposal in depth; 4) a resolution of the Council indicating a therre for the developrrent could be drafted and approved; and 5) the Council and corrmittee could ITeet in a work session to go over and analyze the H- P report. Dunham agreed that it did not appear that the city ~uld be getting much for the !lOney to be spent on H-P. She stated that all of the work would be done by local people. She also stated that she ~uld like to see another public hearing. Noll stated that everyone had been inpressed with the dynamics of what has been happening in the carmu.mi ty and added ( CSE154761 ) SMIC/LEASES/RESO: (Lease w/Chugach Alaska Corp) PAGE 18 REGULAR MEETING - JANUARY 11, 1988 VOLUME 23 that !lOney was not the primary concern. local hire should be a consideration. ~rth "taking a pause" to determine Anchorage to facilitate the project. He n....ted, hooever, that He stated that it was if talent exists in ~ehan stated that he had a lot of faith and belief in tre managerrent ability within the city and did not think the city was in danger of being "snookered" by H-P. He also stated that H-P had created the "boilerplate" in its report and had earned the $7,000 the city paid for Phase 1 of the project. He stated that he strongly supported the project. Simutis con=red, adding that the (citizens) group needs direction and the $60,000 srould be considered "venture capital" which will reap rewards into the future. O'BRIEN M'J\1ED TO POSTPONE ACTION UNTIL THE FIRST MEEI'ING IN FEBRUARY; THE IDI'ION WAS SECONDED BY NOLL AND CARRIED WITH DUNHAM, HILTON, NOLL AND O'BRIEN VarING "YES" AND GIESELER, MEEHAN AND SIMUI'IS VOTING "NO". The clerk was instructed to schedule a public hearing for the February 8, 1988, ITeeting to precede action on the resolution. 2. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE AGREE- MENT WITH CHUGACH ALASKA CORPORATION, INC. O'BRIEN M'J\1ED TO APPROVE RESOLUTION NO. 88-007; THE IDI'ION WAS SEX:ONDED BY HILTON AND CARRIED UNANIM:lUSLY. (Noll declared that, as Vice President of Suneel Alaska Corporation, a company involved in negotiations with CAe regarding the possible use of the Suneel terminal for the shiprrent of chips, he ~uld abstain from voting; Mayor Gieseler ruled that an abstension was not necessary and instructed Noll to cast a vote.) X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. (M::Jved from Consent Calendar) January 6, 1988, rreIIOrandum fran Finance Director Fobert Peirson concerning the possible consolidation of the Seward Corrmunity Library into the city administrative structure was noted. O'Brien stated that he had asked that this item be placed on the agenda for discussion. He stated that he was surprised that this had "gotten this far" without Council involverrent. (CSE154702 1 I I I PAGE 19 REGUIAR MEETING - JANUARY 11, 1988 VOLUME 23 Schaeferrreyer stated that the city had gotten involved by invitation of the Library Board in its efforts to provide a retireITent plan for its three enployees. Under the direction of forrrer city manager Garzini, the administration had presented the Library Board with certain alternatives, one of which was incorporation of the library into the city administrative structure as a departrrent of the city. He noted that libraries are normally operated as a part of the city, adding that it is probable that the city will, at sorre point in the future have to ** absorb the hbir(ZS:itfa.1./ into the city structure, and suggested that it is prudent to do this whi Ie the library is heal thy. He noted that the Board would continue to exist as an advisory board to make decisions concerning "shelf material". O'BRIEN MJVED TO SCHEDULE A WORK SESSION WITH THE LIBRARY BOARD TO DISCUSS THE PROPOSAL; THE IDI'ION WAS SECONDED BY HIL'Irn AND CARRIED UNANThUUSLY. The ~rk session was scheduled for 7:00 p.m., Tuesday, January 19, 1988. Hilton asked that the Council be provided the information rrentioned in Peirson's rrerrorandum. XII. CITY MANAGER REPORI'S: SCHAEFERMEYER stated that he v.Duld like to schedule a special rreeting of the Council for Tuesday, January 12, 1988, at 1: 00 p.m. in order to approve the projects to be forwarded to lobbyist Kent Dawson for consideration by the Governor for inclusion in his Jobs Bill. The rreeting was so scheduled with the clerk to prepare a written notice for dissemination the next day. XIII. COUNCIL DISCUSSION: SIMUTIS asked that the Public Works DepartIrent do sorrething about the "ice breaks" between Third Avenue and intersecting streets. HILTON asked for a status report on I.owell Tunnel repairs. utilities Engineer Jack Anderson stated that the contractor is rrobilizing now and that work was scheduled to start in 2-3 weeks with completion scheduled for early March. MEEHAN asked if engine lubricants had been included in the petroleum products bid (they had) and stated that the city should make some handicap parking spaces available on Fourth Avenue. Schaeferrreyer stated that spaces will not help unless there is handicap access onto the sidewalks. DUNHAM asked the newspaper to give adequate publicity to the Hyett-palma public hearing scheduled for February 8. GIESELER stated that he would be going to Seattle on Friday, January 17, accompanying Chris Gates on courtesy calls to prospective SMIC tenants, returning to Anchorage the evening LIBRARY: (Work ses- sion re possible incorporation into ci ty admin.) (CSE154763 J ** Should read "library". PAGE 20 REGULAR MEETING - JANUARY 11, 1988 VOLUME 23 of January 19. He stated that he ~uld .q.pear on "Anchorage Live" on January 20 to plug the Polar Bear Plunge and would be travelling to Cordova later that day to participate in the Mayors' Conference. He stated that Governor Cowper is scheduled to speak at that time. He also noted that Vice Mayor ~ehan ~uld be attending the Peninsula Mayors' rreeting in Soldotna on January 18. He noted that he had participated in Anchorage Mayor Fink's town rreeting on January 9. Gieseler also suggested that he would like to see the city put a second story with a slant roof on the Fire Hall. He also stated that he had re- ceived nUlOOrous calls concerning recent pooer outages and damage to appliances which had occurred. He stated that the City Code does not alloo the city to reimburse individuals for such damage but stated that the city administration would "look at the problem" . Finally, he stated that Senator Stevens had suggested that Chris Gates head the State Task Force to bring the Navy to Alaska. XIV. CITIZENS' DISCUSSION: WILIARD DUNHAM, Alder Street, Forest Acres, stated that a pooer outage which had occurred on December 20 had caused quite a bit of damage to appliances at his residence. He also cormented on the Navy's letter concerning the 100 mile limit placed on corrmunist block vessels. He stated that this was a State Departrrent regulation. (Gieseler not"d that Chris Gates had promised to obtain a copy of the resolution for the city.) Dunham also thanked the Council for the action taken on the CAC lease. XV. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-lENTS: None XVI. ADJOURNMENT: The IlEeting was adjourned at 10: 35 p.m., and after a short recess, the Council reconvened in Executive Session to discuss a personnel matter and a confidential rreIIOrandum from the Attorney concerning potential litigation. (City Seal) tfye~~4 Gieseler Ma~" "!.v, " ,.l ,'. " ' :t"fj..:.<.) ,. :.. " If' , '"" .~ :~' ~- ;\L ( CSE 154764 -...- . ,., OJ"" .... '-'';;/k' 1."'.... *,," .r,>- . ...... ~".:l 4 1 t OF ,.,\. q.q<:n-r. I I I PAGE 21 SPECIAL MEETING - JANUARY 12, 1988 VOLUME 23 I. CArL TO ORDER: The January 12, 1988, special rreeting of the Seward City Council was called to order at 1: 07 p.m. by Vice Mayor Michael J. M=ehan. II. OPENING CEREMCNY: Councilnernber Dunham led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor M=ehan and Councilnernbers Dunham, Hilton, Meehan, O'Brien and Sirrntis (Gieseler and Noll were absent with Council consent.) Present also: City Manager Schaeferrreyer, Port Mar- keting Director Gates, Hospital Admin- istrator Carrq:Dell and City Clerk Murphy IV. APPROVAL OF SPECIAL MEETING AGENDA: HILTON MJVED TO APPRCJ\1E '!HE SPECIAL MEETING AGENDA AS PRESENTED; THE IDI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMJUSLY. V. NEW BUSINESS: A. Schaeferrreyer stated that he had received a telephone call from city lobbyist Kent Dawson conceming the Covemor's Jobs Bill. Dawson indicated that the Covernor hoped to present the Bill at the end of the week and he strongly urged the Council to forward a list of city capital priorities which wuld rreet the criteria set by the Govemor for inclusion in this special bill. He had also suggested that the hospital project remain number one on the city's list although the project is well above the rraxirrurn cost which the Governor had indicated for projects to be included in the Bill. Dawson noted that the hospital Ireets all other criteria. Schaeferrreyer stated that Dawson felt the Covernor might include the Seward Grade School in the Jobs Bill and that it was possible that both the school and the hospital ~uld be funded with adequate !lOnies to start both proj ects with the intent to fund completion next year. 0' BRIEN MJVED TO APPRCJ\1E THE FOLLCWING PRIORITY LIST OF PROJECTS FOR INCWSION IN THE GOVERNOR'S JOBS BILL: 1. 2. 3. 4. SEWARD GENERAL HOSPITAL HANDICAP ACCESS/CITY HALL POLICE DISPATCH RENO\lATION EXTENSION OF UTILITIES 'ID SMIC FACILITIES 21 CIP: (Priority list for Governor's Jobs Bill) ( CSE154765 1 22 PAGE 22 SPECIAL MEETING - JANUARY 12, 1988 VOLUME 23 5. SERVICE DCCK - SMIC THE IDI'ION WAS SECONDED BY SIMUI'IS AND CARRIED UNANThUUSLY. In response to a question from ~han, Schaeferrreyer stated that if Dawson felt it appropriate to include the Joint Use (Ferry/IMS/City) dock in tre list, he ~uld include it in his letter. All present concurred. VI. CITY MANAGER REPORTS: SCHAEFERMEYER stated that Fepresentative Cato had introduced HB 349, increasing the Alaska Railroad Board from five to seven rrembers, with one rrember to carre from Fairbanks and another from Seward. He stated that Dawson suggested that the city's first lobbying trip to Juneau coincide with the hearings on the bill. VII. COUNCIL DISCUSSION: HILTON asked for a status report on the senior/com- muni ty center. Schaeferrreyer stated that he had extended the proposal date until February 15 at the request of the only serious proposer on the project. He stated that the proposer had indicated that all of his subcontract bids had COlI'E in well over the budget which had been set by the city. Schaeferrreyer also noted that a substantial completion certificate would be issued to Sanwahn on January 13 which ~uld trigger the start of the lease with the State. O'BRIEN asked if the city profitted from the lease to the State. Schaeferrreyer stated that tre lease payrrent was a pass-through to Rainier Bank to cover bonding debt. MEEHAN stated that he ~uld be attending the Borough Mayors' Ireeting on M:mday, January 18, and ~uld remind the other mayors wi thin the Borough that the Seward School must remain the Borough's number one priority. 0' BRIEN asked if the dock to be constructed by Chugach Alaska Corporation (CAe) would be open to the public. Gates explained that, under IDB regulations, the dock ~uld be public, with a published public tariff. However, CAe would have priori- ty use of the dock and the tariff ~uld probably discourage other users except on an eIlErgency basis. He noted that tariff payrrents ~uld carre to the city. VIII. CITIZENS' DISCUSSION: None IX. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' COMMENrS: None leSE 154766 1 I I I ?,~ PAGE 23 SPECIAL MEETING - JANUARY 12, 1988 VOLUME 23 x. AIllOURNMENT : The ITeeting was adjourned at 1: 58 p.m. 4 (City Seal) .. , -------------------------~-------------------------------------- PAGE 23 REX;ULAR MEErING - JANUARY 25, 1988 VOLUME 23 I. CALL TO ORDER: The 'Tariuary 25, 1988, regular ITeeting of the Seward City Council was cailed to order at 7:35 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Councilrrernber Si1m1tis led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Councilrrernbers Dun- ham, Hilton, M:ehan, Noll and Si1m1tis (O'Brien was absent with Council consent) Present also: City Manager Schaefe:rrreyer, Engineering & Utili ties Manager Diener, Finance Director Peirson, Parks & Recreation Director Andrijanoff, Port Marketing Director Gates, Deputy Fire Chief Squires, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: Murphy noted that the word "hospital" on PageJ9, Line 10, should be changed to "library". Hilton noted that the word "facility" on Page 16, should be changed to "facilitate". MEEHAN MOJED TO APPROVE THE JANUARY 11, 1988, MINUTES AS CORRECI'ED AND THE JANUARY 12, 1988, MINUTES AS PRESENTED; THE MOI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANIM:USLY. V. APPROVAL OF CONSENI' CALENDAR & RffiULAR MEETING AGENDA: ( CSElS4767 1 24 PARKS & REC/RESO: (Swim Program) HISTORIC DIST/RESO: (Downtown Dist.) HISTORIC DIST/RESO: (Van Gil~er Hotel) C.ATTY: C.ATTY: I C. A'l'TY : ACCOUNTS PAYABLE: CON-~I.O: BOADWALK: CLAIM FOR DAMAGES: (H. Pillsbury) PAGE 24 REGULAR MEEI'ING - JANUARY 25, 1988 VOLUME 23 Gieseler requested the addition of proposed Resolution No. 88-013, endorsing the state Senate proposal to horreport U. S. Navy vessels in Alaska, to the Consent Calendar as Item No. 15. He also noted that Regular Agenda Item No. VIII (A), presen- tation by Peter Hansen, was being deleted at the request of Dr. Hansen (He rescheduled for the February 8, 1988, rreeting); and that Regular Meeting Agenda Item No. VIII (B), presentation by John Burnett of Cablevision, was being added to the agenda. MEEHAN MJVED TO APPRO\lE 'IRE REGULAR MEETING AGENDA AND THE CONSENT CALENDAR AS AMENDED; THE IDI'ION WAS SOCONDED BY HILTON AND CARRIED UNANThUUSLY. The follooing actions were taken : 1. Resolution No. 88-010, accepting matching funds for the corrmuni ty swim program and appropriating them to the FY 1988 Parks and Recreation Departrrent budget, was approved and filed; 2. Resolution No. 88-011, redefining the Downtoon Historic District, was approved and filed; 3. Resolution No. 88-012, designating the Van Gilder Hotel as having a special historical significance, was approved and filed; 4. January 19, 1988, invoice from Vbhlforth, Flint & Gruening totalling $5,084, for professional services rendered in connection with the city of Seward Series 1987 General Cbliga- tion Bonds, was approved for payrrent and filed; 5. January 11, 1987, invoice from Vbhlforth, Flint & Gruening for legal services totalling $891.31, was approved for payrrent and filed; 6. Corrected June 1987 invoice from HTGP&B (approved for payrrent on January 11, 1988) was noted for information and filed (total should read $12,516.48, NOT $11,364.73); 7. January 11, 1988, Finance Departrrent list of Accounts Payable totalling $727,263.56, was approved for payrrent and filed; 8. Change Order No. 1 to the BrONn Construction contract for the SMIC water distribution system extension, deleting 9 fire hydrant assemblies and reducing the contract by $6,897.33, was approved and filed; 9. Assignrrent of leasehold interest in SBH Boardwalk Site No. 7 (Ray and Leslie Simutis) to First National Bank of Anchorage for security purposes, was approved and filed; 10. Claim for damages totalling $670.40, as filed by Harold W. Pillsbury, for damage to a television and cord organ r CSE1547&8 ) I I I PAGE 25 REX;ULAR MEEI'ING - JANUARY 25, 1988 VOLUME 23 which occurred during a December 19, 1987, power outage, was denied and filed; 11. Claim for damages for an unspecified amount, as filed by Martin L. Goreson for water damage resulting fran a broken water main, was denied and the claim was referred to the city insurance adjusters; 25 CI./l..IM FOR DAMAGES: (M.Goreson) 12. ABCB notification of application for renewal of a ABCB: (Peking) liquor license as filed by the PEKING RESTAURANT, was filed without objection; 13. Applications for permits for ganes of chance and skill as filed by WES-GEN HOSPITAL AUXILIARY and MARATHON Ha.1EMAKERS were filed without objection; GAMES OF CHANCE & SKILL: 14. Proclamation of the Mayor designating February PROCLAMATIONS: 1988 as E.M.S. Month in the city of Seward was noted for infor- mation and filed; and 15. Resolution No. 88-013, endorsing the state Senate PORT DEV. / RESO: proposal to horreport U. S. Navy vessels in the state of Alaska, was approved and filed. VI. BOROUGH ASSEMBLY REPORI': Kenai Peninsula Borough Assembly President Jonathan Sewall gave a verbal report of the Assembly rreeting of January 19, 1988. VII. PUBLIC HEARINGS: A. Notice of public hearing as posted and published by law relative to a proposed cooperative management agreerrent with the Alaska Division of Parks and Outdoor Recreation for the use of a portion of lot 3, Deacon Subdivision No.2, for a trailhead/parking lot to Caines Head State Recreation Area, was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: (With prior notice only) A. DELETED B. JOHN BURNETT, representing Seward Cablevision, stated that Cablevision was prepared to begin televising city council ITeetings (live) beginning February 8, 1988. He stated that this had been in the planning stages for some time and that the camera and equiprrent for the project would be donated by Cablevision. Burnett indicated that his office ~uld like to eventually turn this project over to the high school and alloo students the experience of filming the rreeting. He added that Cablevision hoped to give the local high school access to one PUBLIC HE/l..RINGS: (Deacon Sub - Caines Head pkg. & trailhead) CITI ZEr-;S' DI SC: (J.Burnett - CablevisioJ1) (C5E154769 ) 26 PAGE 26 REGULAR MEEI'ING - JANUARY 25, 1988 VOLUME 23 full channel for the Council ITeetings; school sports, concerts and plays; and other locally generated programs. In response to a question from Gieseler, Burnett stated that there would be no cost to the city for airing the ITeetings. However, if the ITeetings proved to be popular , Cablevision might ask for a donation from the city to help cover the station's purchase of a rrodulator (total cost - $800) which ~uld be permanently !lOunted in Council Chambers. He stated that Cablevision was a very snall operation and this purchase had severely inpacted his limited operating budget. In response to a question from Noll, Burnett stated that Cablevision wants to get !lOve involved in the conmunity and sees this interaction between the high school and the city as one way to bring this about. He stated that, initially, Council rreetings would be aired over Channel 11. The Council voiced no objection to the broadcast of the ITeetings. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: 1. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed ordinance BUILDING DEPT/ORD: (1987 N.E.C. adopted) AN ORDINANCE OF THE CITY COUNCIL OF '.mE CITY OF SEWARD, ALASKA, ADOPTING THE 1987 EDITION OF THE NATIONAL ELEX::TRICAL CODE. Notice of public hearing as posted and published by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. SIMUTIS IDVED TO ENACT ORDINANCE NO. 600; THE IDTION WAS SOCONDED BY HILTON AND CARRIED UNANThUUSLY. C. Resolutions: DEACON SUB/RESO: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A COOPERATIVE MANAGEMENT AGREEMENT WITH THE ALASKA ( CSE154770 ] I I , I PAGE 27 REGULAR MEETING - JANUARY 25, 1988 VOLUME 23 DIVISION OF PARKS AND OUI'JXX)R RECREATION FOR THE USE OF A PORI'ION OF LOr 3, DEACON SUBDIVISION NO.2, FOR A TRAILHEAD/PARKING LOr TO CAINES HEAD STATE RECREATION AREA. HILTON MJVED TO APPROVE RESOLUTION NO. 88-008; THE IDI'ION WAS SECONDED BY SIMUI'IS. In responsed to a question from M3ehan, Diener stated that the lease site was approximately 60' x 40'. Schaeferrreyer stated that there were no other rent or lease-free parcels available for this use. He noted that the agreeITent had an escape clause in case the city should need the property in the future. THE QUESTION WAS CALLED AND THE IDI'ION CARRIED UNANI- M:XJSLY. 2. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, URGING THE STATE OF ALASKA TO RESUME FUNDING OF THE FISH REHA- BILITATION, ENHANCEMENT AND DEVEU)PMENT PRCX;RAM AT A LEVEL THAT WILL ENSURE THE CONTINUATION AND EXPANSION OF THE FISH BY-PRODUCTS REDUCTION INDUSTRY. MEEHAN noted that, as manager of the local reduction plant (Seward Fisheries), he would abstain from discussing and voting on the resolution. GIESELER ruled that an abstention was in order. SIMUI'IS IDVED TO APPROVE RESOLUTION NO. 88-009; THE IDI'ION WAS SECONDED BY NOLL AND CARRIED WITH FIVE "YES" VOI'ES AND MEEHAN ABSTAINING. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. MEEHAN MJVED TO APPROVE THE REVERSAL OF THE $56,090 IN CHARGES REMAINING ON SUNEEL' S DIESEL GENERATION ACCOUNT; THE IDrION WAS SECONDED BY HILTON. NOLL noted that, as Vice President of Suneel Alaska Corporation, he ~uld abstain from discussing or voting on the issue at hand. Gieseler ruled that an abstention was in order. 27 ELECTRIC DEPT: (R3versal of Sun- eel diesel gen. charge) ( CSE154771 J ?8 ~, PAGE 28 REGULAR MEETING - JANUARY 25, 1988 VOIlJME 23 tlEehan stated that, given the excessive power generation charges which have been levied against Suneel, the $56,090 in question should be forgiven. He added that, even with this reduction, Suneel would continue to pay the highest rate of any electric utility customer. THE QUESTION WAS CALLED AND THE IDI'ION CARRIED WITH FIVE "YES" VOI'ES AND NOLL ABSTAINING. SMIC (North Dock) / B. SIMUI'IS IDVED TO AUTHORIZE THE CITY MANAGER TO CON-;l.SI/RESO: AWARD A CCNrRACT TO SWALLING CONSTRUcrION FOR AN AMOUNT Nor TO (Sheetpile EXCEED $1,055,000.00 FOR THE PURCHASE OF SHEETPILE FOR THE SMIC supply) NORTH DCCK; THE IDI'ION WAS SOCONDED BY NOLL. Diener noted that, if the dock project proceeds on schedule, the city will have a dock in place this surnrer. He stated that the steel is scheduled to be delivered about May 11, adding that a contract for construction will not be given the go ahead to proceed until the steel is on site. In response to a question frcrn Hilton, Diener stated that there ~uld be no cost savings to the city in letting the construction contractor supply the steel since a purchase of this size would warrant the sarre price for any purchaser. In addition, it ~uld be IlOre expensive to have the contractor purchase the materials since the contractor would be obliged to "mark up" the price of the materials to cover his cost of handling them. Diener also noted that the council could expect sane minor design changes which could eliminate up to 10% of the steel which was bid. He also noted that the sewer system extension bids had been opened and they were very favorable, adding that sorre of the funds originally designated for the sewer extension could be diverted to the North Dock project. THE QUESTION WAS CALLED AND THE MJI'ION CARRIED UNANI- MJUSLY. XII. CITY MANAGER REPORI'S: SCHAEFERMEYER stated that Michael Yanez, currently enployed by the Anchorage Parks & Recreation Departrrent, had been hired to replace Parks and Recreation Departrrent Director Judi Andrijanoff. He stated that Yanez ~uld begin work on February 3 and ~uld be introduced to the Council at the next rreeting. SCHAEFERMEYER also stated that he had received a telephone call fran city lobbyist Kent Dawson concerning the Alaska Railroad bill (increasing the size of the board from 5 to 7 nembers). The bill has been favorably reported out of Ibuse Transportation and is noo before House Finance, scheduled for hearings the first week of February. NOLL volunteered to represent the city at the initial hearings before committee. Schaeferrreyer noted that he and the Mayor and one other Coun- ( CSE 154772 1 I I I 29 PAGE 29 REGULAR MEETING - JANUARY 25, 1988 VOLUME 23 ci1rrember should attend the hearing before floor action on the bill, tentatively scheduled for the third week in February. SCHAEFERMEYER stated that the Hyett-Palrra proposal for DcMntawn Enhancerrent had been scheduled for public hearing on February 8. He suggested that the Council rreet with the local citizens group in a VoDrk session prior to that tirre. The VoDrk session was scheduled for MJnday, February 1, 1988, beginning at 7:00 p.m. GATES reported that he had attended the Chugach Alaska Corporation board rreeting in Seattle on Thursday. The CAe lease of city property had been approved and the Board had given the administration the go ahead to begin permitting and construction as soon as possible. He noted that the Board did not approve the co-generation facility concept at its last rreeting, which could result in the sale of 2.5 row of I.XJwer to CAe when the sawmill begins operation. DIENER stated that this VoDuld present no problem to the city. XIII. COUNCIL DISCUSSION: NOLL stated that he appreciated the chance to repre- sent the city in Juneau to discuss the ARR bill. He noted that the ARR is currently under review by Connonwealth Jlbrth to determine if it should be sold to the private sector. Jlbll also suggested that the city put together a Navy Task Force (similar to the Prison Task Force) to focus on a conmunity-based effort to horreI.XJrt sorre elerrent of the U. S. Navy in Seward. Finally, Jlbll stated that he did not believe that Hyett-Palrra was the only answer to Seward's DcMntawn Enhancerrent Plan, adding that he VoDuld like to see an atterrpt at "local" hire. MEEHAN thanked Judi Andrijanoff for her dedicated service to the city as Parks and Recreation Director, stating that she had perforrred the job well and VoDuld be missed by the cc.mrnmi ty . DUNHAM stated that she could not believe that a qualified person could not be found in Seward to replace Andri- janoff. She stated that at least one Seward resident was well qualified and should have been considered for the position. GIESELER reminded the Charter Review Carrmittee that it was to report to Council in February. He also asked the Clerk for a status report on the City Manager applications. Murphy stated that approximately 40 applications had been received and that only a few of the applicants were from Alaska. She added that the application process VoDuld close on February 10. Gieseler also noted that he had attended a rreeting of the Alaska Conference of Mayors in Cordova which had been addressed by Governor CaNper. ( CSE1S4773 ) 30 PAGE 30 REGULAR MEETING - JANUARY 25, 1988 VOLUME 23 XIV. CITIZENS' DISCUSSION: BRUCE SIEMINSKI, Benson Drive, thanked the Council for "holding off" on Hyett-Palrra. He suggested that the Council divert the rroney it was considering spending on H-P to conmmity advertising or rebuilding inside the city. BOB VALDA'ITA, 528 Fifth Avenue, stated that he sup- ported the city and state's efforts to encourage the U. S. Navy to horreport in Alaska, but suggested that the city give sorre recognition to the U. S. Coast Guard already present in town. JONATHAN SEWALL, 2403 Diarrond Blvd., stated that the KPB Solid Waste Corrrnission VoDuld rreet in Seward on February 4 beginning at 7:30 p.m., in the Council Charrbers. He also noted that the Borough Assembly is already on record supporting the city's efforts to reorganize the Alaska Railroad Board to allow Seward representation. XV. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: Jlbne XVI. ADJOURNMENT: The rreeting was adjourned at 8:55 p.m. n Ci . ~~~~;i~~~'\ v:-;f "(i'~, :... -." .- t!r" & ~hU:1~'t.J Harry . Giesefir Mayo lr -, '. ' .. t S r~, -\ 1. ...~- ( C SE 154114 ) I I I 31 PAGE 31 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 I. CALL TO ORDER: The regular rreeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: Counci1rrember Hilton led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, ~ehan, Jlbll, O'Brien and SimJ.tis Present also: City Manager Schaeferrreyer, City Attor- ney Arvidson, Administrative Assistant Martin, Port Marketing Director Gates, Manager of Engineering & Utilities Diener, Parks & Recreation Director Andrijanoff, Police Chief Bencardino and City Clerk Murphy SPEr:IAL ITEMS: Gieseler welcorred Cablevision, noting that Council rreetings were now being broadcast "live" over Channel 11. IV. APPROVAL OF MINUTES: SIMlJI'IS IDVED TO APPROVE THE JANUARY 25, 1988, MINUTES AS WRITTEN; THE MJI'ICN WAS SEr:ONDED BY DUNHAM AND CARRIED UNANIMJUSLY. V. APPROVAL OF CONSENT CALENDAR & REGULAR MEETING AGENDA: Gieseler noted that Agenda Item JIb. IX (C) (2) [Hospital Design Funding] was being deleted from the regular rreeting agenda. He also requested that Consent Calendar Item JIb. 3 [Claim for damages as filed by Don Ennis] be rroved to the regular rreeting agenda [Item JIb. XI (A)] and that Council approve the addition of new Regular hJenda Item JIb. X(A) [Presentation by Chris Gates] . - ~ehan requested the addition of the words "hatchery produced" imrrediately preceding "silver salrron" in the second "WHEREAS" clause in proposed Resolution JIb. 88-015. HILTON MOIlED TO APPROVE THE RffiULAR MEETING AGENDA AND THE OJNSENT CALENDAR AS AMENDED; THE MJTICN WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIM:XJSLY. The following actions were taken: ( CSE 154715 ) 32 IND.DEV./RESO: (Trail Lk Hatch) C.ATTY: ABCB: ABCB: ABCB: GAMES OF CHANCE SKILL: SMIC/CON- 2 ~3: (Sewer ext. contract) CON- 7.33 : (Con. extension) CON-2l8 (CO#3) CON-228: (CO#3) PAGE 32 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 1. Resolution JIb. 88-015, urging full funding of the. Trail Lakes Fish Hatchery, was approved and filed; 2. July 1987 invoice from HTGP&B for legal services totalling $12,454.60 was approved for payrrent and filed; 3. MJved to Regular ~ting Agenda, Item JIb. XI (B) ; 4. ABCB notification of applications for renewal of liquor licenses as filed by IATI'IUDE 60 and APOLLO RESTAURANT was filed without objection; 5. ABCB notification of application for renewal of a liquor license as filed by THE RED ROOSTER was noted and a 30-day extension for reply was requested from the ABCB; 6. ABCB applications for restaurant designation as filed by APOLLO RESTAURANT and THE RED ROOSTER were approved and filed; & 7. Application for permit for garres of chance and skill as filed by SEWARD JR/SR HIGH SCHOOL was approved and filed; 8. February 1, 1988, rrerrorandum from E&U Manager Diener recormending award of a contract for SMIC sewer extension to Herndon & Herndon for an arrount NTE $156,860 was approved and filed; 9. February 1, 1988, rrerrorandum from Diener recom- mending extension of a contract with Corwin & Associates for construction services relative to the SMIC sewer extension project was approved and filed; 10. Change Order JIb. 3 to the Underwater/Swalling contract for SMIC ship transfer facility civil v.Drk and util- ities (JIb. 218), decreasing total contract by $8,200 was noted for information and filed; 11. Change Order No. 3 to the U/S contract for SMIC ship transfer facility civil work and utilities extension (No. 228), decreasing total contract by $17,183 was noted for information and filed; and 12. February 1, 1988, rrerrorandum from Diener setting forth construction and public works projects status information was noted for information and filed. VI. BOROUGH ASSEMBLY REPORl': ( CSEl5411b ) I I I PAGE 33 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 Kenai Peninsula Borough Asserrbly President Jonathan sewall was not present and no report was presented. VII. PUBLIC HEARINGS: A. Notice of public hearing as posted and published was noted and the public hearing was opened. JIM PARRISH, 227 Fourth Avenue, stated that he had been elected interim president of the seward Enhancerrent Asso- ciation. He requested, on behalf of the Association, that the Council postpone action on proposed Resolution No. 88-006 until the May 9 rreeting to give the Association a chance to determine the direction it wishes to take. No one else appeared in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: (With prior notice only) PETER o. HANSEN was not present at this tirre. He appeared later in the rreeting and was allowed to speak following introduction of ordinances. [SEE PAGE 34.] IX. ORDINANCES AND RESOLUTlOOS: A. Ordinances for Introduction: Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, MASKA, AMENDING SECl'ION 21-38 OF THE CITY CXIDE REGUIATING THE OPENING AND CLOSING OF PUBLIC CAMPGROUNDS. HILTON IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 601; THE MJI'IOO WAS S~ED BY SIMUI'IS. In response to a question from 0' Brien, Schaeferrreyer stated that the city has been posting the public carrpgrounds "closed" at the end of the campground managerrent contract season each year; however, the City Code currently contains no statuto- ry authority for winter closing. He explained that the public carrpgrounds and beaches have no working sanitary facilities in winter. In addition, litter control and trash collection are a problem in the off-season when there is no one to manage the grounds. Schaeferrreyer added that the city needs sorre rrechanism to rid the carrpgrounds of those who attempt to set up a semi- permanent residence in tents, buses, etc. on public property in the winter. He also noted that a privately owned and operated facility is available for winter carrpers. 33 PUBLIC HEARINGS: Hyett/Palma con. for downtown en- hancement (CSE154717 ) 34 CIT.DISCUSSION: (Peter Hansen) PAGE 34 REr;ULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 Gieseler stated that he was concerned about the liability to the city if canping is allowed on the waterfront in the winter. Schaeferrreyer responded that the city has a public health responsibility to provide public restrooms and litter control if it opens the campgrounds. In response to ~ehan' s concern regarding the dates cited in the ordinance, Schaeferrreyer stated that these dates coincided with those in the campground managerrent contract. Hilton stated that, in the past, "squatters" have rroved into the Forest Acres Campground. He noted that rrost of these canpers reside in vehicles which are not self-contained and create a sanitary problem in the campground. ~han stated that he could support the ordinance if it exempted the beach front along Seventh Avenue. Dunham stated that she VoDuld be willing to support the ordinance if it made provisions for groups who visit Seward in winter to participate in special events such as the Polar Bear Jurrp, the Kayaking Syrrposium, etc. Dunham suggested extending the campground managerrent contract to cover year-round managerrent of the facilities. Schaeferrreyer stated that there would not be sufficient revenue in the off-season to make this feasible. HILTON MJVED TO AMEND THE ORDINANCE BY MAKING THE SEr:OND SENTENCE IN SECTICN (b) READ "EXCEPT FOR THOSE AREAS OPENED FOR SPEr:IAL EVENTS BY RESOLUTICN OF COUNCIL, ALL PUBLIC CAMPGROUNDS SHALL BE CLOSED TO CAMPING BEXiINNING OCTOBER 1, THROUGH MAY 14, ANNUALLY"; THE MJTION WAS SECONDED BY SIMlJI'IS AND CARRIED WITH SIX "YES" VarES AND O'BRIEN VarING "NO". THE QUESTION WAS CALLED ON 'IRE MAIN MJTION AND PRO- POSED ORDINANCE NO. 601 WAS INTRODUCED WITH FIVE "YES" VOI'ES AND MEEHAN AND O'BRIEN VarING "NO". **VIII. CITIZENS' DISCUSSION: (With prior notice only)** **TAKEN OUT OF ORDER. ** DR. PETER HANSEN, 418 Rogers Road, Kenai, addressed the Council concerning his proposal to place a protective grating over the entrance to Lowell Canyon Tunnel to prevent any further loss of life there. (Dr. Hansen's son, Leif, was killed when he was accidentally swept through the tunnel on July 4, 1986.) Hansen thanked the city for the various inprovements which had been made to make the tunnel entrance area safer - fencing, signs, policing the area, etc. - but stated that this was not enough. He showed several slides depicting children playing near the entrance of the tunnel and breaks in the protective fence. He also displayed his design for a protective grating which VoDuld allow smaller rocks and debris to pass ( CSE154778 ) I I I PAGE 35 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 through the tunnel but which v.Duld not allow a person or animal to pass through the entrance. He stated that this v.Duld require maintenance and periodic cleaning by the city, but v.Duld be v.Drth the expense if even one life could be saved. Gieseler stated that he v.Duld pass the plans for the grating along to the administration for review by the Engineering Departrrent . B. Ordinances for Public Hearing and Enactrrent: None C. Fesolutions: 1. public, Gieseler entitled: Copies having been made available to the noted by ti tIe only a proposed resolution A RESOLUTION OF 'IRE CITY COUNCIL OF 'IRE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FRCM THE GENERAL FUND FUND BALANCE TO THE COMMU- NITY DEVELOPMENT Burx;ET FOR THE PURPOSE OF IMPLEMENTING AND MJNlTORING THE BUSINESS ENHANCEMENT STRATEGY PIAN. Murphy stated that this item had been postponed from the January 11, 1988, rreeting and a notion for approval was already on the floor. SIMUTIS J'IDVED TO POSTPONE ACTION eN PROPOSED RESOlli- TION NO. 88-006 UNTIL MAY 9, 1988; THE MJI'ION WAS SECCNDED BY HILTON AND CARRIED UNANIMJUSLY. 2. DELETED x. UNFINISHED BUSINESS: A. CHRIS GATES, Port Marketing Director, presented a status report on current and proposed city projects as follows: CHUGACH ALASKA CORPORATION LEASE: The project is proceeding normally. He stated that the Corps of Engineers permit applications were filed last week and the interagency review produced no adverse corrments. U. S. NAVY HCMEPORI'ING: Gates noted that the Trade Board had appointed a Task Force headed by Counci1rrember Jlbll to put Seward in the matrix for selection. He stated that he had attended a teleconference at Noon on Thursday and noted that Seward was the best represented corrmmity participating. HARBOR ENTERPRISES: Gates stated that the city has negotiated a lease with Harbor Enterprises for a bulk diesel distribution plant adjacent to the new Jlbrth Dock. 35 COMMUNITY DEV/RESO Hyett-palma con. Action postponed ( CSE154119 ) 36 PORT DEV.: (Navy Home- porting Task Force Rept.) PORT DEV/CON- (Con w/Makers for consultation authorized) CLAIMS FOR DAMGS: (Don Ennis - Denied) PAGE 36 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 SMIC DEVELOPMENT: Gates stated that the city is still trying to attract a ship repair facility and indicated that he is currently involved in discussions with both Seward Ships Chandlery (Jim Pruitt) and Foss. He stated that he v.Duld evaluate both proposals and atterrpt to get the best deal for the city. Gieseler allowed JIM PRUITT, Maple Street, proprietor of Seward Ships Chandlery, to address the Council. Pruitt stated that he was ready to proceed with a lease of the 300' station irmediately. He stated that it was imperative that he have access to the 300' station because without it he v.Duld be capable of servicing only smaller vessels. He suggested that the 300' berth be open for joint use by the two proposers. XI. NEW BUSINESS: A. NOLL stated that he was heading a task force to entice the U. S. Navy to horreport one or nore vessels in Seward. He noted that the Navy has indicated that two Aegis-Class cruisers are destined for Alaskan waters. In response to this, the state has contracted with Retired Admiral KnaW to lead an inquiry into the Navy's requirements for horreporting. He (Jlbll) stated that Seward rreets nost, if not all, of the requirerrents. As Chair of the Seward Task Force, Jlbll stated that he had contacted Makers Engineering Carpany. Makers has been involved in tv.D successful horreporting ventures in the past, both as an agent of a port seeking Navy presence and as an agent of the U. S. Navy investigating various ports before locating in one. Jlbll stated that Makers is available to contract with the city on an exclusive basis, and he recornrended that the city enter into an initial contract with Makers to assess Seward and advise the city on how best to attract the Navy. He indicated that the cost of such a contract would be $2,000-$2,500. SimJ.tis stated that the city's first step should be to determine if the comrmmity wants to embark on this course. Jlbll stated that these concerns have been reflected in conversations and discussions already. In response to a question from Giese- ler, Schaeferrreyer stated that funds are available for an initial contract with Makers. GIESELER, WITHOUT OBJECTION FROM THE COUNCIL, IN- STRUCTED SCHAEFERMEYER TO ENTER INTO A CCNTRACT WITH MAKERS TO AID IN THE CITY'S EFFORI'S TO ATTRACT THE U. S. NAVY TO SEWARD. B. Prior to discussion and action by the Council, Gieseler allowed DON ENNIS, 1019 Second Avenue, to address the Council regarding his claim for damages. (Ennis had filed a claim for alleged water damage to his basement totalling $3536.88.) Ennis stated that the damage to his basement was caused when a city drainage ditch which was plugged with snow overflowed following failure of a city water line. He stated (CSE154180 ] I I I 37 PAGE 37 REX;ULAR MEEI'ING - FEBRUARY 8, 1988 VOLUME 23 that this has been an ongoing problem on Second Avenue for as long as he has lived there. He stated that he was asking for damages and sorre assurance from the city that it will install a storm drain frcm First Lake to the Lagoon or Bay to alleviate the problem. MEEHAN MJVED TO DENY THE CLAIM AS SUBMITTED BY MR. ENNIS AND TO FO~ THE CLAIM TO THE CITY'S INSURANCE ADJUSTERS FOR EVALUATleN AND '!HAT THE ENGINEER AND ADMINISTRATION IroK INTO THE POSSIBILITY OF DEVEIDPING A TUNNEL TO AVOID FURTHER PROBLEMS; THE MJTION WAS SECONDED BY HILTON AND CARRIED UNANI- MJUSLY. XII. CITY MANAGER REPORrS: SCHAEFERMEYER introduced newly appointed Parks and Recreation Departrrent Director Mike Yanez. SCHAEFERMEYER also noted that he had received word of the final aITOunts included in the Governor's Jobs Bill for Seward as follows: $100,000 - SMIC utility expansion to new dock 150,000 - Handicap access to city hall 50,000 - Senior/Conmmity Center/MusewH 50,000 - Carrelot SUbdivision electrical project 150,000 - Caines Head State Park Recreation Area $500,000 - 'lUI'AL He stated that the Governor was not willing to include any funding for the hospital in this bill but had promised to include it in the capital bill later in the session. SCHAEFERMEYER noted that HE 349 (ARR Board expansion) was scheduled for action on the House floor Friday. He noted that he v.Duld be accorrpanied by Gieseler and ~han on his trip to Juneau to lobby the House for affirnative action on the bill. XIII. C<:XJNCIL DISCUSSION: DUNHAM suggested that the Second Avenue flooding problem could be the result of a change in the weather in the last twenty years. She also inquired about city regulations concerning the destruction of wild animals within the city limits. Dunham stated that she had heard about a recent inci- dent involving the attempted destruction of a land otter. Schaefermeyer stated that the otter is a protected species and added that the city has a regulation prohibiting the firing of a firearm within the city. Gieseler added that Fish and Garre did not allow destruction of wild animals such as otters, but v.Duld nove them to another area if they becarre a nuisance. MEEHAN thanked the Council for its support of Resolu- tion No. 88-015, urging full funding of the Trail Lakes ( CSE1547Bl ) 38 PAGE 38 REGULAR MEETING - FEBRUARY 8, 1988 VOLUME 23 Hatchery. He stated that, if taken out of state control, the local sport fishery could be severely irrpacted. NOLL cormended the v.Drk which is being done by city lobbyist Kent Dawson in Juneau. GIESELER asked the city administration to take a hard look at the comrents made by Dr. Hansen earlier in the evening concerning safety problems at lDwell Canyon 'I\1nnel. He also thanked Judi Andrijanoff and comrended her for her progressive leadership of the Parks and Recreation Departrrent. Gieseler also thanked Cablevision for bringing the Council rreetings to the public. XIV. CITIZENS' DISCUSSION: JIM PRUITT, Maple Street, asked the city to review the electric tariff. He stated that he did not use enough electric- ity to qualify for the "high user" rate and he felt he was paying rrore than he should for electrical power. JOHN GLASSER, 405 Fourth Avenue, stated that Ordinance No. 601 was a "slap in the face" to those who carre to Seward from Anchorage after the end of the sumrer season. He stated that rrost new canping vehicles are "Alaskanized" and are self contained, and these visitors should be allowed to carrp on the waterfront. XV. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS: SCHAEFERMEYER stated that the city was in the process of reviewing the tariff and anticipated bringing a resolution arrending it to the Council at its next rreeting. O'BRIEN noted that Ordinance No. 601 was rrerely "introduced" and would be scheduled for public hearing at the next rreeting. GIESELER scheduled a work session 'fuesday, February 16, beginning at 7: 00 p.m., to discuss the proposed ethics ordinance which was being prepared by the city's attorneys. XVI. ADJOURNMENT: The rreeting was adjourned at 9: 10 p.m. t#7~ May "", ( CSE 154182 ) I I I PAGE 39 REGULAR MEETING - FEBRUARY 22, 1988 VOIDME 23 1. CALL TO ORDER: The February 22, City Council was called to Gieseler. 1988, regular rreeting of the Seward order at 7:30 p.m. by Mayor Harry E. II. OPENING CEREMJNY: Counci1rrember Dunham led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, Jlbll, O'Brien and SimJ.tis (Councilrrember ~han was excused.) Present also: City Manager Schaeferrreyer, Finance Di- rector Peirson, Engineering & Utili ties Manager Diener, Administrative Assis- tant Martin, Port Director Gates, Parks & Recreation Director Yanez, Police Chief Bencardino, Fire Chief Gage and City Clerk Murphy IV. APPROVAL OF MINUTES: Not available V. APPROVAL OF CONSENT CALENDAR & RffiULAR MEETING AGENDA: Gieseler requested the addition of the following items to the regular rreeting agenda: 1) Item No. VIII (A) - Presenta- tion by SCHARE representative John Burckhardt; and 2) Item No. XI (B) - Appointrrent of city representative to the KPB/EDD. HILTON MJVED TO APPROVE THE RffiULAR MEETING AGENDA AS AMENDED AND THE CONSENT CALENDAR AS PRESENTED; THE MJI'ION WAS SEr:ONDED BY SIMUrIS AND CARRIED UNANIM)USLY. 'l'he following actions were taken: 1. Resolution No. 88-022, authorizing the applica- tion for patent for the remainder of the publicly owned tide- lands wi thin the corporate limits of the city, was approved and filed; 2. Resolution JIb. 88-023, nominating certain parcels of land for selection pursuant to the Municipal Land Entitlerrent Act, was approved and filed; 39 LAND SELECTIONS/ RESO: (Tidelands patents requested LAND SELECTION/ RESO: (Murr. Land Entltmt. Act) 3. February 10, 1988, invoice from Wohlfarth, Flint C. ATTY: & Gruening for legal services rendered in January totalling $934.23 was approved for payrrent and filed; (CSE154783 ) 40 C.ATTY: ACCTS.PAYABLE: ABCB: NORTH HARBOR SUB: (Sublease) CIT.DISCUSSION: (J.Burckhardt) CAMPGROUNDS/ORD: (Action post- poned) PAGE 40 REGULAR MEETING - FEBRUARY 22, 1988 VOLUME 23 4. January 1988 invoice from Baily & Mason for legal services rendered in January totalling $3,064.42 was approved for payrrent and filed; 5. February 11, 1988, Finance Departrrent's list of accounts payable totalling $537,583.49 was approved for payrrent and filed; 6. ABCB notification of application for renewal of liquor licenses as follows was filed without objection: NEW SEWARD HOTEL BAR & GRILL THORN'S SHavcASE WUN3E DREAMLAND rovI..; and 7. February 18, 1988, rrerrorandum from Administrative Assistant Martin regarding sublease of RE-043 (Jlbrth Harbor Sub.) from Jarres Pruitt to Harbor Gateway, Inc., was approved and filed. VI. BOROUGH ASSEMBLY REPORI': Kenai peninsula Borough Assembly President Jonathan Sewall was not present and no report was given. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) A. JOHN BURCKHARD!' read aloud a letter fran SCHARE objecting to the Prison Task Force decision to contract catering of the prison dedication reception with an Anchorage establish- rrent rather than bidding and contracting locally. Dunham noted that Mr. Burckhardt's information was incorrect, stating that catering for this function would not be perforrred by an Anchorage firm. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactrrent: 1. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed ordinance AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AU\SKA, AMENDING SECTION 21-38 OF ( CSE 1.54184 1 I I I 41. PAGE 41 REGUlAR MEETING - FEBRUARY 22, 1988 VOWME 23 THE CITY CODE REGUlATIN3 THE OPENING AND CLOSING OF PUBLIC CAMPGROUNDS. Notice of public hearing as posted and published by law was noted and the public hearing was opened. HERMAN LElRER, Dairy Hill, spoke in opposition to the proposed ordinance. He stated that many people corre to Seward in the Spring to ready their boats for the sumrer season and live in their campers while here. He added that they should be allowed to carrp in public campgrounds. BRUCE SIEMINSKI, Jesse Lee & Benson, spoke in oppo- sition to the proposed ordinance. woo VAN DRIESCHE, Exit Glacier Road, spoke lI1 oppo- sition to winter closing of public campgrounds. JOHN GLASSER, 405 Fourth Avenue, stated that the city had not taken into account the effect winter closure of campgrounds v.Duld have on small downtown businesses. He urged the Council to defeat the ordinance. DARRYL ROGERS, 330 Second Avenue, spoke in opposition to the proposed ordinance. LOU NAMIN, Mile 1.5, Seward Highway, also spoke 111 opposition to the ordinance. WILLARD DUNHAM, Diarrond & Alder Streets, Forest Acres, was opposed to the ordinance. He stated that the fishing industry relies on a "backpacking v.Drk force" which arrives in town prior to the proposed opening of public campgrounds. He stated that these people spend rroney in town and should be encouraged to stay here. CARL NORMAN, Bear Lake Road, was also opposed to the proposed ordinance. SIMUl'IS M)VED TO ENACT ORDINANCE NO. 601; THE MJTleN WAS SEr:CNDED BY HILTON. Schaeferrreyer suggested that Council arrend the ordi- nance by replacing the phrase "special events" with the word "canping", thus giving the Council the neans to open any specif- ic area it wished during the off-season. He noted that Yanez had developed a canping permit program for administration of those areas opened by resolution of Council. He added that if Council wished to arrend the ordinance in this manner, he v.Duld carre back to the Council at the next rreeting with a resolution designating such an area on the waterfront. He noted that, in this way, the Council could satisfy the concerns of the public while giving the administration the authority to effectively manage the city's public canping facilities. ( CSf 154185 ) 42 RISK MANAGEMENT/ RESO: (AML/ JIA Agrmt. apprvd) PAGE 42 REGULAR MEETING - FEBRUARY 22, 1988 VOIlJME 23 Gieseler stated that he was still concerned about the liability to the city should campgrounds be open to the public in the winter. SimJ.tis stated that Schaeferrreyer' s suggestion was a good one and rec:orrrrended arrending the ordinance as re- quested by the city manager. She added that the campground managerrent contract dates should be extended when that contract was next put out to bid. In response to a question from Gieseler, Yanez stated that all Municipality of Anchorage public campgrounds are closed for the winter rronths. Schaeferrreyer stated that, should the Council decide to open the waterfront area to CaIlping, a small fee VoDuld be charged canpers to defray addi tional administrative and other costs. O'Brien stated that the business conmmity did not support the ordinance and the liability issue could be addressed in sorre way other than closing the campgrounds. He stated that the city is beginning to "legislate away small, basic Alrerican rights". He added that he would vote against the ordinance. SIMlJI'IS MJVED TO AMEND THE ORDINANCE BY SUBSTITUTING THE WORD "CAMPING" FOR THE PHRASE "SPEr:IAL ElJENI'S"; THE mrreN WAS SECONDED BY HILTON AND CARRIED WITH FIVE "YES" VarES AND 0' BRIEN VarING "NO". NOLL MOVED TO POSTPONE ACI'ION eN THE PROPOSED ORDI- NANCE UNTIL MARCH 14, 1988; THE MJI'ION WAS S~ED BY HILTON AND CARRIED UNANIMJUSLY. C. Resolutions: 1. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOIDrION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE EXECUTION OF A COOPERATIVE PARrICIPATION AGREEMENT AMONG ALASKA MUNICIPALITIES AND SCHOOL DISTRICTS CREATING THE ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ARRANGEMENT. HILTON MJVED TO APPROVE RESOLUTION NO. 88-016; THE MJI'ION WAS SEr:CNDED BY DUNHAM. Hilton noted that the agreerrent states that the Board may cancel coverage for a participating municipality but does not allow for appeal of such a decision. Peirson stated that the intent is to run the insurance trust as a business, with authority to cancel coverage for a participant under certain extraordinary situations. For instance, should a participating municipality begin to experience significant losses, the JIA VoDuld make certain recomrendations to reduce the risk to the participant and the JIA. If these recamendations were ignored, ( CSE154786 ) I I I PAGE 43 RffiULAR MEETING - FEBRUARY 22, 1988 VOLUME 23 that municipality would be excluded from coverage in order to prevent catastrophic losses to the group. Peirson also explained that the cost to the city might be rrore than conventional coverage the first year, but, in the long run, the city should save a significant aITOunt of rroney over a 7-10 year period. He stated that the city would receive a premium quote by April 1, which would tie in nicely with the city's budget process. Peirson added that the city would then have 30 days to respond and would be required to make a 3-year cornmitrrent to the program if it wishes to participate. THE QUESTION WAS CALLED AND RESOLUTION NO. 88-016 WAS APPRO\7ED BY UNANIMJUS VOTE OF THE COUOCIL. 2. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTION OF THE CITY COUNCIL OF 'IHE CITY OF SEWARD, ALASKA, ACCEPTING DEFERRAL TO THE CITY FOR SAFETY INSPECTIONS AND ENFORCEMENT ACTIVITIES. SIMlJI'IS IDVED TO APPROVE RESOLUTION NO. 88-017; THE MJI'IeN WAS SEr:ONDED BY HILTON. In resI.XJnse to a question from Hilton, Gage stated that approval of this resolution VoDuld not result in the need for additional Fire Department staff. Schaeferrreyer added that the city VoDuld be assuming sarre liability, but a greater liabil- ity issue could arise from failure to adhere to the city's own rules requiring a commercial inspection program. THE QUESTION WAS CALLED AND THE RESOLUTleN WAS AP- PROVED WITH FIVE "YES" VOTES AND O'BRIEN VarING "NO". 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTleN OF THE CITY COUNCIL OF 'IHE CITY OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE OF 'IWO COMPAQ PERSONAL COMPUTERS AND WAIVING FORMAL BID PROCEDURES. O'BRIEN IDVED TO APPROVE RESOLUTION NO. 88-018; THE MJI'ION WAS SEOJNDED BY SIMUTIS AND CARRIED UNANIM:XJSLY. 4. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution 43 FIRE DF.PT/RESO: (Inspection sere deferred to city) PURCHASING/CITY EQUIPMT/RESO: (Purchase of 2 computers) ( CSE 154187 ] 44 FIRE DEPT/RESO: (Approp. funds to replace Fire Hall roof) ELEC.DEPT/RESO: (Tariff amdmt. for small gen. serv. users) PAGE 44 REGULAR MEETING - FEBRUARY 22, 1988 VOLUME 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING $31,900 FR(M THE GENERAL FUND FUND BALANCE TO THE FIRE DEPARIMENT FUND FOR REPLACEMENT OF THE SEWARD FIRE HALL ROOF. HILTCN MJVED TO APPROVE RESOLUTleN NO. 88-019; THE MJI'ION WAS SEr:ONDED BY SIMlJTIS. In response to a question from O'Brien, Gage explained that the Fire Hall roof was constructed in 1979 at a cost of $40,000. Four and one half years ago, the city spent $2,500 - $3,000 repairing the roof and spent an additional $3,000 just two years ago. He added that the Fire Hall houses sorre expensive equiprrent which could be damaged or ruined by leaks in the roof. In addition, constant leaking VoDuld eventually cause structural damage to the building. Gieseler asked about the possibility of putting a second story on the Fire Hall to accorrrrodate sarre city offices. Diener explained that the cost of a second story would easily total $250,000, noting that a public building would require an elevator, handicap access and handicap toilet facilities. O'Brien stated that he would like to see the city bid the new roof with a request for a 20-year guarantee as opposed to a 10-year guarantee. THE QUESTION WAS CALLED AND THE RESOLUTleN WAS AP- PROVED UNANIM:XJSLY. 5. public, Gieseler entitled: Copies having been made available to the noted by ti tIe only a proposed resolution A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING AN OPTIONAL RATE STRUCIURE FOR THE SMALL GENERAL SERVICE. SIMUTIS MJVED TO APPROVE RESOLUTION NO. 88-020; THE MJTleN WAS SECCNDED BY HILTON. Diener explained that the city's current tariff allows for flat rate energy billing only for small general service custarrers. He stated that it could be advantageous for both the custarrer and the city to allow a demand rate for small general service users. He noted that, it VoDuld appear that the city VoDuld lose sorre rroney with this approach, but the city VoDuld actually benefit in its rate from Chugach Electric. THE QUESTleN WAS CALLED AND THE RESOLUTleN WAS AP- PROVED UNANIMXJSLY. 6. public, Gieseler entitled: Copies having been made available to the noted by ti tIe only a proposed resolution ( CSE154188 1 I I I PAGE 45 REGULAR MEETING - FEBRUARY 22, 1988 VOLUME 23 A RESOLUTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, COMMITTING TO SUPPORT' A KENAI PENINSUIA AREA WIDE CUSTOMS PORI' OF ENTRY OFFICE. SIMUTIS MJVED TO APpR(NE RESOLUTION NO. 88-021; THE MJI'ION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. RECESS: The rreeting was recessed at 9:10 p.m. & reconvened at 9:24 p.m. x. UNFINISHED BUSINESS: A. Murphy noted that action on this item had been continued fran the October 26, 1987, rreeting. She stated that the following notion was now on the floor for discussion and action: "HILTON IDVED TO AUTHORIZE THE ADMINISTRATION TO PROCEED WITH LEASE NEXYI'IATIONS WITH THE HARBOR DINNER CLUB FOR LEASE OF PROPERTY WITHIN THE MARINE INDUS- TRIAL CENTER; THE MJI'ION WAS SECONDED BY NOLL.' Schaeferrreyer stated that the administration's rec- amendation remained unchanged. He stated that the city is actively pursuing an agreerrent with the Navy for use of the property requested by Mr. Norman, and approval of a lease with him in this area could adversely affect the Navy negotiations. In addition, a restaurant in this area would be in conflict with the Land Use Plan approved by the City Council. O'Brien stated that the city was taking an "obstructionist" view of this issue and should work with Norman to find a spot in the area accept- able to both. Schaeferrreyer responded that the city is prepared to discuss alternate sites with Norman if he VoDuld cane forward with a request for such a discussion. He added that the city's economic developrrent strategies had been successful in the past because the city had planned and had stuck with its planning objectives. He stated that it VoDuld be short-sighted to nove forward with this proposal at this tirre. Hilton agreed that the spot chosen by Norman was not appropriate for a restaurant and stated that it was premature to lease land in the industrial area for restaurant construction. Dunham stated that a restau- rant is needed "over there", but not necessarily in the indus- trial area. Gieseler noted that the property requested by Norman was prirre real estated located in the "middle of the hub". CARL NORMAN, Bear Lake Road, was allowed to address the Council concerning his proposal. He stated that he was interested in providing a service which was needed in the area, adding that his proposed restaurant VoDuld be oriented towards breakfast and lunch service. He stated that, if approved, he planned to start construction as soon as financing could be approved and weather permitted. 45 IND.DEV/RESO: (In support of Kenai Pen. area- wide Customs Port of Entry Office) FOURTH OF JULY: (C.Norman lease proposal - city instructed to negotiate for lease of an un- specified parcel of land in 4th of July Creek Industrial Area) (CSE154789 ) 46 PLANNING COMM: (K.Lindsey & D.Sutherland re- appointed) KPB/EDD: (Carole --,Jaffa appointed) PAGE 46 REGULAR MEETING - FEBRUARY 22, 1988 VOLUME 23 SimJ.tis asked if Jlbrman had attempted to obtain land frcrn a private source. He replied that a privately-owned parcel small enough to rreet his needs is not available. Norman also stated that he did not plan to serve alcohol at this establish- rrent. Schaeferrreyer stated that, if the Council agreed that the administration should negotiate a lease with Mr. Norman, the notion should be arrended to reflect the correct site location. He explained that the parcel in question was not a part of the Marine Industrial Center, but a part of the Fourth of July Creek Industrial Area. HILTON AND NOLL AGREED TO ACCEPT SCHAEFERMEYER'S REX:XlMMENDATION AS A FRIENDLY AMENDMENT, CHANGING THE SITE r.a.:ATION TO FOORI'H OF JULY CREEK INDUSTRIAL AREA. THE QUESTION WAS CALLED AND THE MJI'IeN TO INSTRUCT THE ADMINISTRATICN TO PROCEED WITH LEASE NEGOl'IATIONS WITH THE HARBOR DINNER CLUB CARRIED BY UNANIMJUS VOTE OF COUNCIL. XI. NEW BUSINESS: A. GIESELER, WITH CONSENT OF COUNCIL, REAPPOINTED KURl' LINDSEY AND OONAID SUTHERLAND TO THE SEWARD ADVISORY PlANNING AND ZONING COMMISSION FOR TERMS TO EXPIRE IN FEBRUARY, 1991. B. GIESELER, WITH CONSENT OF COUNCIL, APPOINTED CAROLE JAFFA AS THE CITY'S REPRESENTATIVE TO THE KENAI PENINSUIA BOROUGH Er:ONOMIC DEVELOPMENT DISTRICT BOARD. XII. CITY MANAGER REPORTS: SCHAEFERMEYER stated that he had distributed a trip report to Council concerning his recent trip to Juneau with Gieseler and ~ehan to lobby for passage of the Railroad bill by the House. He also noted that the Council had been provided a rrerrorandum concerning the panel which would review the Senior / Ccmnunity Center/Museum proposal. Schaeferrreyer also stated that he had received from the attorney proposed agreerrents between the city and Alliance Bank relative to Gateway Ventures. Council agreed to rreet in a VoDrk session on March 7, 1988, in order to review the documents. XIII. COUNCIL DISCUSSION: NOLL stated that the Navy Task Force had rreet with Navy representatives at Elrrendorf Air Force Base and had re- ceived very neutral com:rents from Navy officials. He recormend- ed that the Mayor send a letter to Vice 1\dmiral Hernandez urging the Navy to seriously consider horreporting in Seward. HILTON asked the Clerk to prepare an ordinance for introduction at the next rreeting changing the agenda format by making Agenda Item V "Approval of Regular ~ting Agenda"; Agenda Item VII "Citizens' Discussion of hJenda Items not ( CSE154190 ) I I I 47 PAGE 47 RffiULAR MEETING - FEBRUARY 22, 1988 VOllJME 23 Scheduled for Public Hearing"; and Agenda Item VIII "Approval of Consent Calendar". In reSI.XJnse to a corment fran Gieseler, Hilton stated that he did not object to setting a tirre limit for Agenda Item No. "VII". Hilton also noted a letter from AVTEC to the state requesting that all state-requested lands between Nash Road and Bear Lake be designated "State Educational Forest". Martin stated that he VoDuld write to the state reasserting the city's desire to maintain a rail corridor through that particular parcel of land. 0' BRIEN asked the administration to inform the Charrber of Ccmrerce that the Council had conmitted $30,000 for the Custans Port of Entry. GIESELER stated that the Council needed to rreet in a VoDrk session to review city manager applications. He instructed the Clerk to schedule the March 7 work session to begin at 6:00 p.m. so that there VoDuld be sufficient tirre following the review of the Gateway docurrents to conduct the review of applications. He asked Counci1rrembers to be prepared to narre their top choices for the position so that a "short list" could be prepared at the VoDrk session. XIV. CITIZENS' DISCUSSION: BRUCE SIEMINSKI, Jesse Lee Heights Subdivision, addressed the Council concerning various city planning needs and questioned the Council's oojection to a liquor license for a restaurant in the industrial area. BOB VALDATTA, 528 Fifth Avenue, stated that the city should develop a plan for the Marine Industrial Center. He also stated that a restaurant was an appropriate use of property in the industrial area. XV. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS: DUNHAM stated that she VoDuld object to the issuance of a liquor license in the industrial area. XVI. ADJOURNMENI': The rreeting was adjourned at 10: 25 p.m. ~t:~~.~ ffar Giese er Mayo .' . ( CSE154791 ) 48 PAGE 48 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 I. CALL TO ORDER: The March 14, 1988, regular rreeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Counci1rrember ~ehan led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Councilmernbers Dun- ham, Hilton, ~ehan, Jlbll, O'Brien and Sirrutis Present also: City Manager Schaeferrreyer, City Attor- ney Arvidson, Engineering & Utilities Manager Diener, Parks & Recreation Director Yanez, Port Marketing Director Gates, Administrative Assistant Martin and City Clerk Murphy IV. APproVAL OF MINUTES: HILTON IDVED TO APPROVE THE FEBRUARY 8 AND FEBRUARY 22, 1988, MINUTES AS WRITTEN; THE MJI'IeN WAS SECClIDED BY SlMJTIS AND CARRIED UNANIMJUSLY. V. APPROVAL OF CONSENI' CALENDAR & REGULAR MEETING AGENDA: A. MEEHAN IDVED TO SUSPEND THE RULES OF ORDER AND PIACE PROPOSED RESOLUTleN NO. 88-006 eN THE REGULAR MEETING AGENDA AS AGENDA ITEM NO. IX(C) (3) FOR OJNSIDERATleN AT THIS MEETING; THE IDTION WAS SECONDED BY SIMUTIS AND CARRIED WITH SIX "YES" VOTES AND O'BRIEN VarING "NO". Schaeferrreyer requested the addition of a new Consent Calendar Item JIb. 25 - Proposed sublease of Boardwalk Site JIb. 7 from Ray and Leslie SimJ.tis to Janaska Corp. O'Brien requested the transfer of Consent Calendar Items JIb. 1 and 10 from the Consent Calendar to the Regular ~ting Agenda as Items No. IX(C) (4) and XI (C) respectively. Gieseler asked to be added as co-sponsor of proposed Ordinance JIb. 602 (agenda format change). He also noted that he VoDuld allow Real Estate Agents John Gillespie and DarIa 0' Connor to address the Council irmediately following Mayor Gilman 's presentation. (Agenda Item No. VI (A)) Murphy requested that the "City Manager's Recamenda- tion" under Consent Calendar Item No. 24 be changed to read (CSE154192 ) I I I PAGE 49 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 "Authorize the administration to proceed with negotiations for the acquisition of the Old Post Office building for the Senior/ Corrmmi ty Center/Museum". HILTON IDVED TO APPROVE THE REGULAR MEETING AGENDA AND THE CONSENT CALENDAR AS AMENDED; THE MJI'IeN WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIMJUSLY. The following actions were taken : 1. MJved to Regular ~ting Agenda; 2. Resolution JIb. 88-025, approving receipt of a state grant for construction of the Seward Marine Industrial Center Utilities Extension, was approved and filed; 3. Resolution No. 88-026, approving the receipt of a state grant for the Seward Senior/Conmunity Center/Museum, was approved and filed; 4. Resolution No. 88-027, approving receipt of a state grant for Carrelot Subdivision Electrification, was ap- proved and filed; 5. Resolution JIb. 88-028, authorizing the purchase of a pickup truck for the Harbor Departrrent without full uti- lization of city bid procedures, was approved and filed; 6. of two waste and filed; Resolution JIb. 88-029, authorizing the purchase oil burners and appropriating funds, was approved 7. Resolution No. 88-032, authorizing the paving of certain streets to be paid by the Local Service Roads & Trails Fund, was approved and filed; 8. Resolution JIb. 88-033, awarding a contract for repair of Water Well JIb. 1 without full utilization of city bid procedures, was approved and filed; 9. Resolution No. 88-034, approving a Mutual Aid Agreement between Seward Volunteer Ambulance Corps and Bear Creek Fire Service Area, and accompanying FY 1988 cperations Plan, was approved and filed; 10. MJved to Regular ~ting Agenda; 11. Invoice from HTGP&B for legal services rendered in August 1987 totalling $24,298.55 was approved for payrrent and filed; 12. March 8, 1988, Finance Departrrent' s list of Accounts Payable totalling $628,051.62 was approved for payrrent and filed; 49 GRANTS/SMIC UTIL/ RESO: GRANTS/SENIOR CNTR RESO: GRANTS/ELEC DPT/ RESO: PURCHASING/RESO: PURCHASING/RESO: STREETS/RESO: WATER DEPT/RESO: SVAC/RESO: C.ATTY: ACCTS. PAYABLE: ( CSE154193 ) 50 C.COUNCIL: MARINA SUB/RE- Ou>'3: LAND SELECTIONS: PRISON: (Budget) ABCB: ABCB: GAMES OF CHANCE & SKILL: cON-;1.07: CON-:.z.~ \: PAGE 50 REGUIAR MEETING - MARCH 14, 1988 VOLUME 23 13. March 10, 1988, rrerrorandum form Murphy reconrrend- ing cancellation of the March 28, 1988, rreeting was approved and filed; 14. March 9, 1988, rrerrorandum from Martin recatllTEIld- ing approval of assignrrent of lease of the North 1/2 of lot 5, Block 1, Marina Subdivision, from Gerald lorz to National Bank of Alaska for security purposes only was approved and filed; 15. March 8, 1988, rrerrorandum from Martin recatllTEIld- ing that the Council request that the South Fork Snow River Selection Area be retained for natural resource managerrent rather than the proposed use of corrmunity expansion was approved and filed; 16. March 9, 1988, rrerrorandum from Diener reccmrend- ing that Council approve the revised Spring Creek Correctional Center Project budget was approved and filed; 17. March 10, 1988, letter fran Murphy requesting a 30-day extension for protesting renewal of the following liquor licenses was noted and the clerk was instructed to issue a letter of nonobjection to the renewals once sales taxes are current: PIONEER BAR TONY'S BAR TONY'S LIQUOR STORE YUKON LIQUOR STORE; 18. ABCB notification of applications for renewal of the following liquor licenses was noted and the clerk was instructed to issue letters of nonobjection to renewal of sarre: THE WHEELHOUSE AMERICAN LEGION POST NO.5; 19. Application for permit for garres of chance and skill as filed by SACRED HEARl' PARISH was filed without ob- jection; 20. Change Order No. 6 to the Zubeck contract for Spring Creek Correctional Center water utility construction to provide all labor, equiprrent and materials to install fire booster purrp in SCCC Building JIb. 5 warehouse and associated water lines, valves, manholes, etc.; and to install an addition- al 12" butterfly valve on the water utility's main 12" line and a manhole with associated appurtenances for autanatic sampling at the Wastewater Treatrrent Utility, for an increased cost of $86,000, was noted for information and filed; 21. Change Order JIb. 1 to the SWalling contract for supplying material for the SMIC Jlbrth Dock to incorporate sheet ( C S E 154794 ] I I I 51 PAG? 51 RffiULAR MEETING - MARCH 14, 1988 VOlliME 23 pile the city has on hand, decreasing the contract arrount by $43,112, was noted for information and filed; 22. March 9, 1988, rrerrorandum from Peirson concerning 1988 real property assessed values was noted for information and filed; 23. March attached report fran Lowell Canyon Tunnel information and filed; 3, 1988, rrerrorandum from Diener with the Corps of Engineers concerning the Rehabilitation Project was noted for 24. March 10, 1988, rrerrorandum from Diener concerning SENIOR CENTER: the proposal to provide a new Senior Center/Museum was noted and the administration was authorized to proceed with negotiations for acquisition of the old Post Office building; and 25. March 14, 1988, rrerrorandum from Martin recorrmend- BOARDWALK/RE-(J(;,O ing approval of the sublease of Boardwalk Site JIb. 7 fran Ray and Leslie Sirrutis to Janaska Corporation was approved and filed. VI. BOROUGH ASSEMBLY REPORT: A. Kenai Peninsula Borough President Jonathan Sewall gave a short presentation concerning action which would be considered at the next Borough Assembly rreeting. DONAID E. GIIMAN, Mayor of the Kenai Peninsula Bor- ough, introduced Borough Assessor Jack Kline. He also displayed several prepared slides showing a corrparative view of the changing economic climate throughout the Borough over the past 2-3 years. Gilman stated that both real and retail sales had declined significantly on the western side of the Peninsula. In addition, real property values have fallen 15-20% in Harrer, Kenai and Soldotna over the past year or two. (Gilman noted that both retail and real sales have been relatively stable in the Seward area, adding that property values have not changed significantly in the Eastern Borough.) This decline in assessed values (following a recent re-assessrrent of western peninsula properties) will rrean a corresponding decline in tax revenues to the Borough. This decline in revenues, coupled with an in- creased School District budget to accamodate the opening of tv.D new schools and a negotiated salary adjustrrent for teachers, will require a subsidy from the Borough's fund balance. Gilman stated that he planned to use approximately $20 Million in excess Borough funds (Fund Balance) to help balance the Borough budget over the next couple of years. Once that has been depleted (probably in 1990), the Borough will be forced to raise property taxes in order to maintain a "status quo" budget and level of services. Kline stated that notices of assessrrent would be mailed on March 31. A representative of the Borough Assessor's (CSE154795 ] 52 CIT.DISCUSSION: PAGE 52 REGULAR MEETING - MARQf 14, 1988 VOLUME 23 Office VoDuld be in Seward April 18-22 to answer any questions residents might have concerning their assessments. He indicated that any appeal of assessrrent rrust be filed (postmarked) with the Borough by April 30. In response to a question from Hilton, Gilman stated that there had been sorre discussion serveral years ago concern- ing raising or eliminating the cap on Borough sales tax; howev- er, rrost of the testirrony taken had been against this concept. JOHN GILLESPIE, 405 Fifth Avenue, stated that, while Seward's future may seem bright, 1987 was not a very good year for the real estate market in Seward. He noted the number of foreclosures listed on the Borough-wide tax foreclosure list and the HUD foreclosure of two four-plexes in Gateway Subdivision. DARIA O'CONNOR, 521 Sixth Avenue, stated that she had not seen a substantial decline in the single family market in Seward. She added that the rrulti-family market had been over- built in anticipation of the opening of the prison, but this market should turn around once people begin moving into the community to take the newly created jobs "across the Bay". Gieseler stated that he felt the people of Seward were being penalized and forced to pay a disproportionate share of the cost of two new schools on the "other side" of the peninsu- la. He stated that these schools were not needed now that school populations in the Kenai/Soldotna area had declined, but were being opened at the expense of the citizens of Seward who desperately needed a new school but were unable to get one. He thanked Gilman for taking the tirre to carre to Seward to address the Borough's financial picture. RECESS: The rreeting was recessed at 8:55 p.m. and reconvened at 9:00 p.m. VII. PUBLIC HEARINGS: A. Cancelled VIII. CITIZENS' DISCUSSION: (With prior notice only) A. DERENTY TABIOS, representing Jlbrth Pacific Rim Housing Authority, introduced ARNE HATCH, Seward resident and one of five Housing Authority Corrroissioners. He distributed copies of a proI.XJsed resolution and cooperative agreerrent which he asked the Council to consider prior to the end of March. He noted that Seward is the only corrrnunity in the Borough without a Mutual Help Harre ONnership Program. He stated that the Council had approved a similar agreerrent in July, but the 1987 project had not been funded. Tabios noted that this agreement, if approved, VoDuld authorize an application for funding to con- struct approximately 25-30 housing units, adding that NPRHA now l CSf 154196 ) I I I 53 PAGE 53 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 has about 40 applications from qualified residents of the area seeking participation in this program. In response to a question from Gieseler, Tabios stated that five sites have been considered - three within the city and tv.D outside the city limits. The areas inside the city include the bluff overlooking the lagoon, Gateway Subdivision and Chugach Natives Corporation property. ~han asked if existing single family houses which are currently on the market could be purchased under this program. Tabios responded that, while this is possible, it is usually difficult to find an existing horre which can be purchased and brought to BUD standards wi thin the funds available. Tabios noted that total cost of each house, including property, cannot exceed $120,000. O'Brien questioned the need for additional housing units in Seward, noting that there are currently 75-100 units for sale in the corrmunity. Tabios stated that the target group for this project were those who VoDuld not qualify for conven- tional financing; thus, the project would not compete with the private sector market. Hatch stated that the 40+ applications on file show a need for this type of housing in Seward. Schaeferrreyer stated that he was not prepared to make a recormendation to the Council at this tirre. He noted that when this project was before the Council last surrmer, the administration had revised the agreement to make it acceptable to the city. He added that he was not convinced that the city is ready for this project at this tirre. Hatch stated that, if approved, NPRHA would be working under a 2-year tirre frarre before actual occupancy VoDuld be possible. He added that the housing market should be a "different story" in Seward in another tv.D years. Dunham stated that there was a need for a housing project of this type, noting that for the last 15 years, Seward has had the lowest per capita incarre in the state. She stated that the opening of the prison in May VoDuld result in a boom in the rental market since those noving from the Anchorage area VoDuld probably own horres there that they could not sell. Gieseler instructed the clerk to schedule a public hearing prior to the end of March for consideration of the resolution and cooperative agreement endorsed by NPRHA. B. LARRY JOHNSON, 321 Second Avenue, stated that he CITI ZENS' DISC: was appearing on behalf of Seward Enhancerrent Association at the request of Jim Parrish. He stated that SEA had voted in favor of asking the city to retain Hyett-Palrra. Johnson noted that part of the scope of VoDrk proposed by Hyett-Palrra included assistance in qualifying for grants from state and federal agencies to help finance the enhancerrent project. He added that ( CSE154797 ) 54 PAGE 54 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 nost of the noney to be spent if the project proceeded VoDuld carre from private, state and federal sources. He urged the Council to approve Resolution No. 88-006. IX. ORDINANCES AND RESOLUTleNS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by ti tIe only a proposed ordinance entitled: AN ORDINANCE OF THE CITY CDUNCIL OF 'IRE CITY OF SEWARD, ALASKA, AMENDING THE CITY COUNCIL AGENDA FORMAT. HILTON IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 602; THE MJI'ICN WAS SEr:CNDED BY DUNHAM AND CARRIED UNANIM:XJSLY. Public hearing was scheduled for April 11, 1988. B. Ordinances for Public Hearing and Enactment: CAMPGROUNDS/ORD: 1. Copies having been made available to the public, Gieseler noted by ti tIe only a proposed ordinance entitled: AN ORDINANCE OF THE CITY CDUNCIL OF 'IRE CITY OF SEWARD, ALASKA, AMENDING SEr:TION 21-38 OF THE CITY CDDE REGUIATING THE OPENING AND CLOSING OF PUBLIC CAMPGROUNDS. Murphy noted that there was a notion on the floor to approve the proposed ordinance as amended at the last rreeting. THE QUESTleN WAS CALLED AND ORDINANCE NO. 601 WAS ENACTED AS AMENDED BY UNANIMJUS VOI'E OF THE COUNCIL. C. Resolutions: CAMPGROUNDS / RESO : 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY OF SE.WARD, ALASKA, DESIGNATING WINTER CAMPGROUND AREAS AND SETTING FEES. HILTON' MJ\lED TO APPROVE RESOLUTleN NO. 88-030; THE MJI'IeN WAS SEr:ONQED BY NOLL AND CARRIED UNANIMJUSLY. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: ( C SE 154198 1 I I I PAGE 55 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 A RESOLUTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FOR THE PURPOSE OF REFUNDING EPA GRANT FUNDS. MEEHAN M)VED TO APPROVE RESOLUTleN NO. 88-031; THE MJI'ION WAS SECCNDED BY DUNHAM. In response to a question from O'Brien, Schaeferrreyer stated that the state funds noted in the resolution VoDuld not be released to the city until the conclusion of the EPA audit. THE QUESTION WAS CALLED AND THE MJI'IeN CARRIED UNANI- MJUSLY. 3. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FROM THE GENERAL FUND FUND BAIANCE TO THE COMMU- NITY DEVEIDPMENT BUDGET FOR THE PURPOSE OF IMPLEMENTING AND MJNlTORING THE BUSINESS ENHANCEMENI' STRATffiY PLAN. Murphy noted that a notion to approve the resolution was on the floor. O'Brien stated that he has "had a problem" with this issue since the beginning. He stated that he had asked the clerk to send reference requests to the corrmunities which Hyett-Palrra had listed as forrrer clients. He stated that he could not vote in favor of the resolution until he has had a chance to review references. He added that he had not seen any "upswelling" support from the business corrmunity and asked if the Chamber of Cornrerce had voted in support of the contract. SimJ.tis stated that she had personally contacted several references and the responses she had received, without exception, had been very positive. She added that one recurring thread through all of the contacts she had made was that Hyett- Palrra had truly made a difference in the towns served. Sinutis also stated that initially there had been a great deal of corrmunity interest in this project; however, any organization confronted with a continuing series of roadblocks will eventual- ly lose interest. She added that she VoDuld vote in favor of the resolution. ~ehan concurred with SimJ.tis, stating that the project was badly needed and adding that this $60,000 VoDuld be an excellent investrrent on the city's part. Noll stated that he was one of the rrembers of Council who had originally objected to approval of the resolution until 55 COMMUNITY DEV/ CON-).(,'5:/RESO: ( CSE15479Q ) 56 PAGE 56 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 sarre background work was corrpleted, such as investigating local resources. He added that SEA had done everything asked of them and he was now ready to support the resolution. Dunham stated that she intended to vote "yes", but still had sorre reservations. She noted that Hyett-Palrra had stated that SEA VoDuld need a local person to head up the local effort; however, no one had addressed funding for this position. She also expressed her concern that the public should be aware that this $60,000 VoDuld not provide architectural services, engineering or other services which VoDuld be required to suc- cessfully corrplete the project. In resI.XJnse to a question from Gieseler, Schaeferrreyer stated that the contract provides that either party may termi- nate the agreerrent with two weeks I notice and with payrrent to Hyett-Palrra for all work actually perforrred. THE QUESTION WAS CALLED AND RESOLUTION NO. 88-006 WAS APPROIlED WITH SIX "YES" VOI'ES AND O'BRIEN varING "NO". c. HALL/GRANTS/ RESO: 4. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING REr:EIPT OF A STATE GRANT FOR PROIlIDING HANDICAP ACCESS TO CITY HALL. O'BRIEN M)VED TO APPROVE RESOllJTION NO. 88-024; THE MJI'ION WAS SEr:CNDED BY MEEHAN. In response to a question fran O'Brien, Schaeferrreyer stated that he had been inforrred verbally that the aITOunt of noney allocated for this project was $150,000; however, the bill which was finally approved contained only $146,000. THE QUESTION WAS CALLED AND THE MJI'ION CARRIED UNANI- M:XJSLY. x. UNFINISHED BUSINESS: None XI. NEW BUSINESS: CLAIM FOR DAMAGES: A. MEEHAN M)VED TO APPRCJI1E THE CLAIM FOR DAMAGES TOTALLING $909.43 FOR ALLEX3ED DAMAGE TO A PICKUP TRUCK AS FILED BY ALAN M::HONE; THE MJTION WAS SECONDED BY HILTON. In resI.XJnse to a question fran Gieseler concerning the tirre which elapsed between the date of the alleged accident and the filing date of the claim, Diener explained that H::Hone had ( CSE154800 ) I I I S7 PAGE 57 REGULAR MEETING - MARCH 14, 1988 VOWME 23 originally approached City Shq:> personnel about the damage and had been told that an estimate VoDuld have to be submitted with the claim. After receiving the estimate, the claim was officially filed with the Clerk's office. THE QUESTICN WAS CALLED AND THE MJI'ICN FAILED WITH SEVEN "NO" VOTES. The administration was instructed to refer the claim to the city's insurance adjusters. B. HILTON M:lVED TO PAY THE CLAIM IN THE AMJUNT OF CLAIM FOR DAMAGES: $20,920 FOR ALLEl3ED WATER DAMA.GE AS FILED BY GEORGE WILLINGHAM; THE MJI'ION WAS SEr:ONDED BY SIMlJI'IS AND FAILED WITH SEVEN "NO" VOI'ES. The administration was instructed to refer the claim to the city's insurance adjusters. C. SIMUTIS IDVED TO PAY THE INVOICE TOTALLING $34.00 Co ATTY: FOR LEGAL FEES AS SUBMITTED BY WULY & MASON; THE MJI'ICN WAS SOCONDED BY NOLL. O'Brien asked why the $3,000+ carried forward from the previous nonth had not yet been paid. Schaeferrreyer stated that the invoices were paid after approval by Council and he VoDuld guess that the payrrent from the previous nonth had crossed this invoice in the mail. THE QUESTION WAS CALLED AND THE MJTION CARRIED UNANI- MXJSLY. XII. CITY MANAGER REPORTS: SCHAEFERMEYER stated that, on March 16, 1988, he VoDuld be flying to Juneau with Mayor Gieseler and Finance Director Peirson to attend a Railbelt Conference rreeting. XIII. COUNCIL DISCUSSION: 0' BRIEN asked about the status of the "1 O-year vs. 20-year" guarantee requirerrent for the Fire Hall roof. Diener stated that the 20-year guarantee VoDuld be an added alternate in the bid docurrents. O'Brien also inquired about the status of Carl Jlbrman' s lease request. Schaeferrreyer stated that Martin had sent a letter to Norman but has received no response as yet. In response to another question, Schaeferrreyer stated that the noney for the Caines Head project had been appropriated to the Departrrent of Natural Resources. NOLL reported on the status of the Navy Homeporting Project. He stated that Admiral Jeremiah had encouraged con- tinued expressions of interest from the Cormnmity. GIESELER stated that he VoDuld like to see the city's bid procedures followed except when it was absolutely necessary to deviate from them. He noted that the city had not advertised the bid for a new vehicle for the Harbor Department and the only r CSE154801 ) 58 PAGE 58 REGULAR MEETING - MARCH 14, 1988 VOLUME 23 local vehicle dealer had not been contacted and asked to submit a bid. The local dealer had indicated that he could have beaten any price quoted by other vendors. Gieseler also asked Diener to "keep an eye" on water levels around town. He stated that he was concerned about the potential for flooding this spring, given the aITOunt of snow covering the nountains. Gieseler noted that the Council would be narrowing the city manager applicants to three on March 21. XIV. CITIZENS' DISCUSSION: BOB VAIDATTA, 528 Fifth Avenue, cormented that the Jobs Bill looked nore like a "WPA Project". xv. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS: NOLL asked when the city could expect to see the grant-funded projects "on the street". Schaeferrreyer stated that the grant agreements were received by the city on Friday and would be returned to the state on Tuesday with disburserrent to the city in about 2 weeks. He added that the city VoDuld bid the projects as soon as possible and begin the various jobs as soon as weather permits. GIESELER asked what can be accomplished to provide handicap access to City Hall for $146,000. Diener replied that the city hoped to provide a rarrp for access into the building and an elevator for access to the second floor. In addition, the restrooms VoDuld be revamped to provide handicap access, tactile signs would be provided, and floor coverings VoDuld be added to hallways to cure slippery surfaces. XVI. ADJOORNMENT: The rreeting was adjourned at 10: 30 p.m. n S. City Clerk (~~~, yO'"" c:". --...~ AI . -..;. J '" 'Oit~Q~4 ;;:.1';", \;.. 1 () :~Q # .,.~:-' \c v :~' '. "; -:: ~~ . f: .~: SEAIJ :~~ ~ . ~!,.. . ~ ~ . : ~" .'::.,., ....,..,. : ':/ :;. '. "1. .....",1;) ,,: .~~ J' "'~+E 1.~:.."-+-1t' ~. ~ - ~ ~ (...(,,~4 . Gieseler May r (CSE15~802 ] I I I 59 PAGE 59 SPECIAL MEETING - MARCH 21, 1988 VOllJME 23 I. CALL TO ORDER: The March 21, 1988, special rreeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Counci1rrember Dunham led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, ~ehan, Jlbll and Simutis (Counci1rrember 0' Brien was excused) Present also: City Manager Schaeferrreyer and City Clerk Murphy IV. APPROVAL OF SPEr:IAL MEETING AGENDA: Gieseler noted that a request to add consideration of a transfer of liquor license ownership and location had been properly noticed by the clerk's office and would be considered as a "special item" imrediately following approval of the agenda. HILTON MJVED TO APPROVE THE SPECIAL MEETING AGENDA AS AMENDED; THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANI- MJUSLY. SPEr:IAL ITEM: A. GIESELER IDVED TO ISSUE A LETTER OF NONOBJEr:TION ABCB: TO THE TRANSFER OF A LIQUOR LICENSE FR(M RAY AND LESLIE SIMUTIS TO JANASKA CORPORATICN AND THE TRANSFER OF THE LCCATION OF THE LICENSE TO 1316 FOURTH AVENUE; THE MJI'ION WAS SEr:CNDED BY HILTON AND CARRIED WITH FIVE "YES" VOTES AND SIMUTIS "ABSTAINING". V. RESOLUTIONS: A. HILTON IDVED TO APPROVE RESOLUTICN NO. 88-035; THE MJI'ION WAS SEr:CNDED BY SIMUTIS. NPRHA/RESO: Schaeferrreyer noted a March 21, 1988, rrerrorandum from Administrative Assistant Kerry Martin reconrrending that Council postpone action on the proI.XJsed resolution until the adminis- tration had worked out a lTDJ.tally acceptable agreement regarding a specific project and a specific location. He stated that the administration has a number of concerns including i"larre confusion as to the type of project proposed. He noted that Tabios had indicated that NPRHA wished to sponsor a "lTDJ.tual help horre ownership program"; however, the agreerrent attached to the ( CSE 154803 ] 60 PAGE 60 SPEr:IAL MEETING - MARCH 21, 1988 VOWME 23 proposed resolution addressed a rental program.. Schaeferrreyer stated that the city attorney had discussed sare proposed revisions to the agreerrent with a HUD attorney and had been advised that HUD VoDuld probably not enter into an agreement similar to the one the city had negotiated for the Bear MJuntain Apartrrent project. Schaeferrreyer also stated that the Council should take current market conditions into consideration before acting on this proposal. He recanrrended that action be post- poned until the city had had an opportunity to VoDrk out a mutually acceptable agreerrent with NPRHA. LARRY JOHNSON, 329 Second Avenue, stated that the project VoDuld greatly affect the rental market in Seward. He noted that there are already many subsidized rental units in town. DERENTY TABIOS, Executive Director of NPRHA, stated that the program is a harre ownership program. He stated that the program would affect only the rental market in Seward, not the single family market. (In order to qualify for the project, one must be unable to obtain conventional financing. ) In response to a question fran Hilton, Tabios stated that the property VoDuld be rerroved from the tax rolls and would, instead, make PILT's (payrrent in Lieu of Taxes) which VoDuld aITOunt to approximately 10% of regular taxes. In addition, the collection of PILT's is not enforceable. MARGE BLANKENSHIP, Bear MJuntain Apartrrents Manager, stated that there are currently 40 applicants for the horre ownership program and 8 applicants on the Bear MJuntain rental "wait" list. Dunham stated that the city had just "rescued" Gateway for $90,000. Chugach Alaska Corporation was about to construct a sawmill which VoDuld add to the tax base of the city. In addition, many residents of the city currently live in substan- dard housing. She stated that any inpact this project might have on the rental market VoDuld not be a problem since prison errployees VoDuld soon be noving to town and looking for living accormodations. ~ehan stated that nore tirre was needed to study this request. He asked if there were existing houses on the market which would rreet the criteria set by HUD. MEEHAN MJ\1ED TO POSTPONE ACTleN eN THE PROPOSED RESOImION UNTIL NPRHA AND THE CITY CAN DEVEIDP A MUTUALLY AO:EPTABLE AGREEMENT; THE MJI'IeN WAS S~ED BY HILTON. In response to a question from Jlbll, Tabios stated that the application deadline was April 1. Schaeferrreyer suggested that, if there was an April 1 deadline, Tabios should have carre to the city early enough to allow preparation of a recon:rrendation for the Council. He stated that he was not at ( C Sf 154804 ] I I I 61 PAGE 61 SPEr:IAL MEETING - MARCH 21, 1988 VOIDME 23 all certain that a document could be drafted for approval by April 1. SimJ.tis stated that the burden to pursue such an agreerrent should be placed on NPRHA. THE QUESTION WAS CALLED AND THE MJTION TO POSTPONE ACl'IeN ON THE RESOLUTleN WAS APPROVED WITH FOUR "YES" VarES AND DUI\'HAM AND NOLL VarING "NO". VI. COUNCIL DISCUSSION: DUNHAM stated that it was apparent that the city is not interested in this project, adding that when the adminis- tration wants sorrething to happen, it does; when it doesn't want sarrething, it doesn't get done. NOLL noted that the New York Tirres had article about Seward in the March 20 edition. stated that he VoDuld provide the Council with article. carried a nice Schaeferrreyer copies of the GIESELER stated that he and Schaeferrreyer had testi- fied in support of HB 349 (-Railroad Bill) before the Senate State Affairs Comnittee (Abood). He asked for volunteers from Council to participate in lobbying efforts regarding the bill in the next couple of weeks. Noll stated that he was available next week. GIESELER also noted a letter from Departrrent of Transportation concerning the Tusturrena. He suggested that the city prepare a resolution honoring the "Tusty" and plan a celebration during the nonth of May. GIESELER stated that Schaeferrreyer had promised to present a sumrrer parking plan for the Small Boat Harbor at the April 11 rreeting. VII. CITIZENS' DISCUSSION: JOHN GILLESPIE, 606 Fifth Avenue, spoke in support of Resolution No. 88-035. He stated that, as owner and broker of Seward Real Estate Corrpany, he did not feel threatened by this agreement. He stated that this proI.XJsal was designed to give poor people an opportunity to live in affordable housing. BOB VALDATI'A, 528 Fifth Avenue, stated that the Tusturrena is a real asset to the corrmmity and the city should present it with a plaque recognizing Seward as the vessel's harreport . WILLARD DUNHAM, Diarrond and Alder Streets, Forest Acres, spoke in support of a searren' s center to aC=rm:::xJate the Polish fleet and others visiting our I.XJrt. He noted that the Polish fleet is now provisioning here and the crews need sorre place to go when they are in I.XJrt. He also reminded Council ( CSEl5480S 1 62 PAGE 62 SPEr:IAL MEETING - MARCH 21, 1988 VOLUME 23 that the prison dedication was scheduled for Saturday, March 26. Dunham stated that he had talked to Tan ~ars (Cook Inlet Aquaculture Association) concerning the CIAA proposal to operate Trail Lakes Hatchery for the state. He indicated that ~ars has not corrrnitted to a continuation of enhancement activities for the Resurrection Bay fishery . Finally, Dunham spoke in favor of Resolution JIb. 88-035. KEITH CAMPBELL, 1910 Forget-~-Not Circle, stated that he was bothered by the way the HUD project had carre together. He stated that he was uncanfortable with such a loosely worded document. He stated that the city was "better off providing jobs so that they can afford any type of housing". VIII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COMMENI'S: NOLL stated that he and Suneel VoDuld do what they could to support the establishIrent of a searren' s center in Seward. Jlbll also stated that he would support the NPRHA project and hoped that NPR and the city VoDuld get together and carre to sorre sort of an agreement. HILTON stated that he was syrrpathetic to those with little noney looking for a place to live and added that he VoDuld welcarre the project as long as the developer adhered to the rules everyone else has to live by. He stated that the agree- rrent should be one the city is comfortable with and should not be approved just because the goals are worthy. MEEHAN concurred with Hilton's staterrents. GIESELER stated that he VoDuld rreet with the adminis- tration and arrange for the purchase of a plaque for the ward- roan or stateroan on the Tustumena. Gieseler also agreed that a searren's center was needed. Finally, Gieseler stated that he did not believe that the NPRHA project should becarre a political issue. He stated that the Council has a responsibility to the ccmnuni ty and must look at all sides of the issue. IX. ADJOURNMENT: The rreeting was adjourned at 8:07 p.m. - , ~~",.~ ",i1:-1 '1 ~ ,"0,,-'011-...:,,1> "- J '-{r:;:~ Seal) "~"~ ~ ,,'''' 4, \= '< ....... c , , , 1 ... E' t I ' -.Ie ~_ rt., ;.t ~ . ~ ~'" -.... : t: "~(.-. OJ'l,''r,,:'!i . J'l' "~~..1~~...:+-~ I' "1,.~ \.~ ':) ...,1' . <: OF J>.~')J' ~ . ~~ HArry . Gieseler Mayor ( CSE154806 ) I I I PAGE 63 SPECIAL MEEI'ING - APRIL 4, 1988 VOIlJME 23 1. CALL TO ORDER: The April 4, 1988, special meeting of the Seward City Council was called to order at 4:05 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Counci1rrember Dunham led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, ~, Jlbll, O'Brien and SimJ.tis Present also: City Manager Schaeferrreyer, Administra- tive Assistant Martin and City Clerk Murphy IV. APPROVAL OF SPEr:IAL MEETIN3 AGENDA: MEEHAN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MJI'ICN WAS SEr:CNDED BY SIMJTIS AND CARRIED UNANIMJUSLY. V. NEW BUSINESS: A. MEEHAN M)VED TO OFFER THE CITY MANAGER POSITION TO ROD3ER BENNETT; THE MJI'ICN WAS S~ED BY DUNHAM AND CARRIED UNANIMJUSLY. O'BRIEN MJVED TO OFFER BENNETT $66,000 ANNUAL SALARY PillS A CAR ALLC:WANCE OF $200 PER JIn.lTH; THE MJI'ION WAS SEr:ONDED BY HIL'Irn AND CARRIED WITH SIX "YES" VOTES AND NOIL VarING "NO". Gieseler stated that he VoDuld telephone Mr. Bennett following adjournrrent of the rreeting and present the offer to him. O'BRIEN stated that he had another appointrrent and was excused from the remainder of the rreeting. SIMJTIS MJVED TO OFFER 'lD MR. BENNETT A IDVING AIJ,(Ml- ANCE OF TEN THOUSAND DOLLARS ($10,000); THE MJTleN WAS SECONDED BY HIL'Irn AND CARRIED WITH FIVE "YES" VOTES AND NOLL VarING "NO". VI. COUNCIL DISCUSSION: Jlbne 63 C.MANAGER: (Ben- nett to be of- fered position) r C SE 154807 1 64 PAGE 64 SPECIAL MEETING - APRIL 4, 1988 VOLUME 23 VII. CITIZENS' DISCUSSION: None VIII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS: None IX. ADJOURNMENT: The rreeting was adjourned at 4: 55 p.m. ~~.. ,\~y~ <?f ,,~,~,~~~, ;( .:...' ,':o.V.t'Ott4li':'P ". ~ c.):~() 4'.0" S. , ' "'-0 -.', city Cl ~.: SEAL :. (~ >~ :, . _0_ ,.: (1;ity Seal) ....:"'0(" fI,J...~.,:;: .:'~..~:~~-;-;~;;;------~ I. CALL TO ORDER: ~C~ . Gieseler Mayor The April 7, 1988, special meeting of the Seward City Council was called to order at 12:03 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: the flag. III. ROLL CALL: Counci1rrember O'Brien led the pledge of allegiance to Present were: Mayor Gieseler and Counci1rrembers Hil- ton, ~ehan, O'Brien and Sirrutis (Coun- ci1rrember Noll was excused and Council- rrenber Dunham arrived at 12:05 p.m.) Present also: City Manager Schaeferrreyer, Administra- tive Secretary Martin and City Clerk Murphy IV. APPROVAL OF SPEr:IAL MEETING AGENDA: MEEHAN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENl'ED; THE MJI'IeN WAS SECONDED BY HILTCN AND CARRIED UNANI- M:XJSLY. Jlbte: Dunham arrived at this tirre. ( CSE 154608 1 I I I PAGE 65 SPEr:IAL MEEI'ING - APRIL 7, 1988 VOLUME 23 V. NEW BUSINESS: A. Gieseler stated that he had offered Bennett the corrpensation package approved by the Council at the April 4, 1988, rreeting. In response, Mr. Bennett had made a counter- offer, asking for corrpensation totalling $72,000 annually plus $300 per nonth car allowance and a performance evaluation at the end of six nonths with a raise in salary at that tirre to $78,000 annually. He stated that he was willing to accept the $10,000 moving allowance offered by the Council. ~ehan stated that he could not SUpI.XJrt nore than $66,000 in annual salary. He stated that Bennett still needed to gain Alaskan experience and that this education should not be at the expense of the city of Seward. He stated that Bennett seems to have little sympathy for the Councilor an understanding of the political realities in Seward. Dunham stated that Bennett "has priced himself out of the market" . O'Brien stated that he VoDuld like to make another offer to Bennett, noting that his "counter-offer" might be an attempt to "squeeze" a little nore out of the city. Hilton stated that he could support offering an additional $2,000 annually. SimJ.tis objected to criticizing Bennett because he asked for a high salary. She agreed that the Council had to make a final offer. She added that she still felt he was the right man for the corrmunity. HILTON IDVED TO OFFER TO ADD $2,000 PER YEAR TO THE ORIGINAL OFFER TO BENNETT, WITH THE CAR AJ:LaVANCE TO REMAIN AT $200 PER MJNTH AND A PERFORMANCE EVALUATION AT THE END OF mE YEAR WITH NO GUARANTEED INCREASE IN SALARY; THE MJI'IeN WAS SEr:ONDED BY SIMUTIS AND CARRIED WITH FIVE "YES" VOTES AND MEEHAN varING "NO". Recess: The rreeting was recessed at 12: 20 p.m. and reconvened at 12:30 p.m. Martin attempted to telephone Bennett at his office in Casa Grande, Arizona, but was told that he was out of the office. Hilton stated that he VoDuld suggest that, if an agreerrent is not reached with Bennett, the Council go back through the applications on file, including those which had been received after the deadline and not initially considered. Murphy was instructed to contact Dave palrrer (Craig, Alaska) if Bennett did not accept the city's offer to ascertain if he was still interested in the position. t.h C. MANAGER: (Ben- nett's salary offer increased) ( CSE 15'i809 ) 66 PAGE 66 SPEr:IAL MEETING - APRIL 7, 1988 VOLUME 23 VI. COUNCIL DISCUSSION: GIESELER asked Schaeferrreyer to explain the situation which was developing in the Small Boat Harbor. Schaeferrreyer stated that there appeared to be a cloud to the title on the property recently leased to Gerry Lorz and Dot Bardarson (Lot 5, Block 1, Marina Subdivision). The lot was included on a deed of trust between Marilyn Plymire and Juris Mindenbergs and on another deed of trust between Mindenbergs and Russ Pace. (The deed of trust covered several lots, including the ones occupied by the Breeze Inn MJtel and the Breeze Inn Restaurant.) Follow- ing default of his lease with the city by Russ Pace, the city had terminated the lease of Lot 5 and had recorded the termina- tion docurrent with the Recorder's Office. However, the title carpany refuses to release the lot from the two deeds of trust without a quit claim deed (or a like instrument) frcm both Plymire and Mindenbergs. The city's position is that, since the lot is bare (no inprovements) and the leasehold interest has been terminated, there is no valid lien against the property. Schaeferrreyer stated that Administrative Assistant Kerry Martin was conferring with the city attorney today to look for a resolution of the matter. In addition to the clouded title issue, National Bank of Alaska has raised sorre questions about the lease form used by the city for property in the Small Boat Harbor. These concerns were passed on by the bank to SBA officials who now say that they are uncomfortable with sorre of the provisions in the city's lease form. Schaeferrreyer stated that he and the attorneys will be addressing this issue. VII. CITIZENS' DISCUSSION: Jlbne VIII. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCM1ENTS: Jlbne IX. ADJOURNMENT: The rreeting was adjourned at 1:02 p.m. ~,. >> ,,\,~;.l- Or SEt-v ~ ,.",-q . ',>'O..'OR4~,1}, ( )':# 4'.0 ... :"- -.... SEAL ~~~ Ifar . Gieseler Mayo (CSE154810 ] I I I PAGE 67 REGULAR MEETING - APRIL 11, 1988 VOLUME 23 I. CALL TO ORDER: The April 11, 1988, regular rreeting of the Seward City Council was called to order at 7: 30 p. m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: flag. Counci1rrember Noll led the pledge of allegiance to the III. ROLL CALL: Present were: Mayor Gieseler and Counci1rre:mbers Dun- ham, Hilton, ~ehan, Jlbll, O'Brien and Sirrutis Present also: City Manager Schaeferrreyer, City Attor- ney Arvidson, Port Director Gates, Manager of Engineering & Utilities Diener, Administrative Assistant Martin, Parks and Recreation Director Yanez, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: MEEHAN IDVED TO APPROVE THE MARCH 14, 4, AND APRIL 7, 1988, MINUTES AS PRESENTED; SEr:ONDED BY SIMUTIS AND CARRIED UNANIMJUSLY. MARCH 21, APRIL THE MJI'ICN WAS V. APPROVAL OF CONSENT CALENDAR & RffiULAR MEETING AGENDA: Schaeferrreyer requested the addition of new Consent Calendar Item JIb. 14, proposed Resolution JIb. 88-040, relating to Municipal Assistance and Revenue Sharing. MEEHAN M:J\1ED TO APPROVE THE RffiULAR MEETING AGENDA AS PRESENTED AND THE CONSENT CALENDAR AS AMENDED; THE MJTICN WAS SEr:CNDED BY 0' BRIEN AND CARRIED UNANIMJUSLY. The following actions were taken: 67 1. Resolution No. 88-036, in support of SB 303, an PARKS & REC/RESO: act relating to state marine parks, was approved and filed; 2. Resolution No. 88-037, in support of the Resur- PARKS & REC/RESO: rection River Trail project, was approved and filed; 3. Resolution No. 88-038, authorizing a professional services agreerrent with Arnett Testing Laboratory for substation maintenance testing, was approved and filed; 4. Resolution No. 88-039, supporting the construc- tion of a toll road to Cordova, was approved and filed; ELEC.DEPT/CON-2~/ RESO: STREETS/RESO: leSE 154811 ] 68 PAGE 68 REGULAR MEETING - APRIL 11, 1988 VOllJME 23 C.ATTY: 5. March 10, 1988, invoice from w:>hlforth, Flint & Gruening for legal services totalling $1,024.08 was approved for payrrent and filed; ACCTS.PAYABLE: 6. April 5, 1988, Finance Department list of ac- counts payable totalling $1,242,544.02 was approved for payrrent and filed; SMALL BOAT HRBR: 7. April 5, 1988, rrerrorandum from Harbormaster Foster Singleton requesting that Council allow the Harbor to maintain the 21' Boston Whaler as Harbor inventory was approved and filed; BOARDWALK/RE- RESO: / 8. April 7, 1988, neIlOrandum from Administrative Assistant Kerry Martin requesting approval of an assignrrent of lease from Kenai Fjords Tours, Inc., to Donald J. Oldow, Parrela F. Oldow, Jack Scoby and Sheila Scoby, dba "The Landing" (SBH Boardwalk Site JIb. 8), was approved and filed; 9. ABCB notification of application for renewal of a liquor license as filed by FAIRWEATHER CAFE was filed without objection; ABCB: ABCB: 10. ABCB notification of designation as filed by FAIRWEATHER BAR & GRILL was approved and filed; request for restaurant CAFE and RAY'S WATERFRONT ABCB: 11. April 6, 1988, letter from the city to ABCB lifting the city's protest of the renewal of liquor licenses for PIONEER BAR, TONY'S BAR, TONY'S LIQUOR STORE, and YUKON LIQUOR STORE was noted for information and filed; RE-rDI: 12. March 24, 1988, annual report of dock maintenance and activity as filed by Seward Fisheries as required under the terms of the SFI preferential dock use agreerrent was noted for information and filed; CON- \5'\ : 13. March 15, 1988, rrerrorandum from Engineering & Utilities Manager Diener concerning change orders to the Sarrwhan contract for prison construction as follows was noted for information and filed: #72 - Providing all labor, equiprent and materials to add additional structural steel at guard tower per submit- tal STA-095-2 (+$7,305); #100 - Providing electrical power for food service equipment items #9 and #114 in the APS kitchen (+$1,350); #107 - Providing all labor, equiprent and materials to install 5' snawguards on roofs of APS Buildings 2, 3, and 4, verifying that snowguards will not alter roof warranties and supplying 20 each 5' snowguards as spares (+$39,112); ( CSE15481l ] I I I 69 PAGE 69 REGULAR MEEl'ING - APRIL 11, 1988 VOLUME 23 #111 - Providing for additional painting on the APS kitchen as required by DEI:: (+$9,974); #113 - MJdifying the "EE" type lighting fixture in Building #4 control room to eliminate a blind spot (+$877); #114 - Reducing contract to corrply with letter from Departrrent of Labor regarding Alyeska Electric, Inc. (-$199,204); #116 - Providing all labor, equipment and materials to install seals on chase doors, 160 each (+$714); #117 - Installing drip rail for door 2/3-230 per Detail No. A-903 (+$518); #118 - Installing one relay box and hookup to connect nonitor (+$213); #119 - payrrent of excess fuel oil in the tank - 4,498 gallons @ $0.70 per gallon, plus 1.5% for bond guarantee (+$3,195); #120 - Installing additional gypsum wall system to fix door JIb. l-233B and enclose column and wall comers in Foam No. 1-222 APS Building (+$2,000); #121 - Providing a credit for the unfinished portion of work on Gates 0-1 and 0-7 (-$952); #122 - Deleting partition, steel doors and frarres, and paint work for CMU partition; installation of vinyl tile; extension of cerrent plaster ceiling; soffit ceiling in grid "C"; and patching fireproofing for steel frarre and rretal deck in order to install ceiling suspension system (+$1,860) ; #123 - Additional security nonitoring requirerrents per final scope of work letter (+$11 ,049) ; . #125 - Backflush 6" watermain to building JIb. 5 (warehouse) (+$1,636); #126 - Installing insulation and damp proofing to warehouse and notorpool foundation masonry wall (+$18,000); #127 - Performing flON testing on fire hydrant system over and above testing called out in the basic contract (+$769); #128 - Adding power circuitry in Building No. 4 server for food well unit (+$1,573); (CSE154B13 ) 70 REV SHARING/RESO: CIT.DISCUSSION: PAGE 70 REGULAR MEETING - APRIL 11, 1988 VOLUME 23 #129 - Installing 45 linear foot 24" culvert at Stati~ 3+ 25 on the service road to improve site drainage (+$3,900); #130 - Providing a credit for deleting glass beads frcm striping paint applied to main parking lot (-$336); #104 - Mounting door frarre 1-306 on Roam 1-305 (+$4,000) ; #105 - Relocating electrical raceways and adding a 24" square access door in Roam 1-135 (+$3,500); #115 - Revising the head heights for vehicle sallYI.XJrt gates (+$6,949); #131 - Relocating electronic security equiprrent in the warehouse (+1,566); #132 - Providing I.XJwer circuits for the TV nonitors on control panels 1 and 2 (+$2,449); and 14. Resolution No. 88-040, regarding Municipal Assistance and Revenue Sharing, was approved and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Jonathan Sewall was not present and no report was given. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) A. DOYLE HYETT, representing Hyett- Palrra, stated that he appreciated the vote of confidence given H-P by the Council, adding that he and Delores Palrra had been VoDrking in Seward since Friday and VoDuld be rreeting with the Seward En- hancement Association throughout the week to develop the 13- month plan. He encouraged the Council to offer suggestions for the enhancerrent plan. IX. ORDINANCES AND RESOLUTICNS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING A LIBRARY leSE 154814 1 I I I PAGE 71 RffiULAR MEETING - APRIL 11, 1988 VOLUME 23 DEPARI'MENI' AND PROVIDING FOR THE OPERATION OF PUBLIC LIBRARY FACILITIES. NOLL M:NED TO INTRODUCE PROPOSED ORDINANCE NO. 603; THE MJTICN WAS SEr:ONDED BY SIMUI'IS AND CARRIED UNANIMJUSLY. Public hearing was scheduled for April 25, 1988. 2. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING SECTION 14-85.1 OF THE SEWARD CITY CODE REGUIATING PARKING WITHIN THE SEWARD MUNICIPAL BOAT HARBOR. SIMUTIS IDVED TO INTRODUCE PROPOSED ORDINANCE NO. 604; THE MJI'ION WAS SEr:CNDED BY HILTON. In response to a question from O'Brien, Schaeferrreyer stated that the parking plan had been presented to the Planning Corrrnission at its April 6, 1988, rreeting; however, no public hearing had been conducted at that tirre. SimJ.tis asked if any Alaska Railroad property was included in the northernrrost area designated for long term parking. Schaeferrreyer stated that a portion of that area did belong to the Railroad, but the city was party to a use agreerrent for the property. THE QUESTION WAS CALLED AND THE MJTION TO INTRODUCE THE PROPOSED ORDINANCE CARRIED UNANIM:XJSLY. Public hearing was scheduled for April 25, 1988. B. Ordinances for Public Hearing and Enactrrent: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled : AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING THE CITY COUNCIL AGENDA FORMAT. Notice of public hearing as I.XJsted and published by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. SIMUTIS M:NED TO ENACT ORDINANCE NO. 602; THE MJTION WAS SECONDED BY HILTON AND CARRIED UNANIMJUSLY. C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: 71 C. COUNCIL/ORD: (Agenda format amended) r CSE154815 ) 72 PAGE 72 REGULAR MEETING - APRIL 11, 1988 VOLUME 23 PUBLIC HEARINGS/NPRHA/ RESO: (Action postponed) A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, TO ENTER INTO A COOPERA- TlOO AGREEMENI' WITH THE NORTH PACIFIC RIM HOUSING AUTHORITY. Murphy noted that this item had been I.XJstponed from the March 21, 1988, rreeting, and a notion for approval of the resolution was on the floor. Gieseler stated that, given the aITOunt of interest expressed in this proposed housing develop- rrent, he VoDuld open the floor for corments from the public following a short presentation by the administration. Arvidson reviewed the changes made to the oooperation agreerrent following discussions with attomeys for NPRHA. He stated that nost of the agreed upon changes had been included in the oooperation agreerrent which had been distributed to the Council prior to the rreeting; however, several unsubstantial changes had not yet been incorporated but VoDuld be inserted following action by the Council. Schaeferrreyer stated that he could recc:mrend approval of an agreerrent in the form which was now before Council, but the larger policy issue of whether this type of subsidized housing was currently needed was one the Council ITU.lst make. He stated that this was a federal program with the federal govern- rrent dictating the rules. He added that he was hesitant to recomrend approval of a proj ect with so many unanswered ques- tions such as location, size, architectural style, etc. He reminded the Council that once the agreement is approved, no further overview by Council or the Planning CaIroission VoDuld occur if NPRHA opted for single family developrent. He also cautioned that construction of houses such as the ones NPRHA had put in other conmunities could adversely affect property values in some neighborhoods, and residents of those neighborhoods VoDuld have no recourse if they objected to the developrent (once this agreerrent is approved). Gieseler opened the floor for public corment. DAN PETERSON, representing NPRHA, stated that this developrrent VoDuld rreet any standards set by the conmunity. In resI.XJnse to a question from ~ehan, he stated that a buyer making the minimum payrrent of $115 per nonth would not build equity in the house and therefore VoDuld not receive any remuneration should he decide to assign the loan to another qualified buyer. Hilton stated that, by his calculations, the maximJ.m that any buyer would pay for a $120,000 housing unit VoDuld be $36,000 (over the life of the loan). Peterson confirrred that the nonies paid by a participant in the program represented an administrative fee to NPRHA; the house itself was constructed through a grant from HUD. Peterson also confirrred that, even if a participant made a larger than minimum payrrent and paid off his property early, the house and land would remain off the tax rolls as long as a project loan was in effect, or 25 years. t C SE 154816 1 I I I 7~ PAGE 73 REGUIAR MEETING - APRIL 11, 1988 VOIDME 23 Hilton estimated the loss of real property tax revenue to the city over the life of the project to be $225,000 (based on the 3 mil rate currently paid by city property owners). Peterson noted that NPRHA would be making payrrents in lieu of taxes (PILT' s) to the city. Hilton pointed out that NPRHA' s Bear MJuntain Apartrrents had paid no PILT's last year and the col- lection of PILT' s under the agreerrent before the Council was not enfdrceable. Noll asked if NPRHA would be required to carre back to the Council if it intended to arrend the program by going from a "very low incarre" plan to a "low incorre" plan. Peterson stated that such an amendrrent could be made without Council consent. In response to a question from SimJ.tis, Peterson stated that HUD provides fire and liability insurance; the buyer VoDuld be responsible for insuring his personal property. Peterson closed by stating that there is a documented need for subsidized housing in Seward and urged the Council to approve the resolution. HEATHER MAHAN, Soldotna, stated that she was in the process of moving to Seward and had been house-hunting for a couple of nonths. She stated that she did not know how low incorre families could afford to buy a house in Seward. Mahan added that this project was needed and asked the Council to approve the resolution. MARGE BLANKENSHIP, resident manager of Bear MJuntain Apartrrents, also spoke in favor of the resolution and agreerrent. She noted that the horre buyer would be given an allowance for utili ties by HUD, but would pay any balance himself. In addition, she stated that HUD requires annual inspections of the properties and annual certification of incorre, with payrrents adjusted accordingly. She stated that the housing would be a credit to Seward. MARILYN REYNOLDS, 225 Sixth Avenue, representing the Lowell Canyon Townhorre Association, SI.XJke in opposition to the developrrent. She stated that she has had a house on the market for one year and has advertised it in the newspaper for six months. She noted that sorre townhouses had been on the market for 2 years. She stated that with 35-40 horres on the market, there was no need to add nore single family units. Reynolds noted that correctional officers coming to town fran Anchorage VoDuld not qualify for this new project. She also d>jected to adding nore units of housing to the corrmunity which VoDuld not be on the tax rolls. She stated that those in the =nmuni ty who paid property taxes VoDuld have to subsidize this project. Reynolds added that, before building any new units, existing single family horres should be utilized. She also stated that other loan programs are available and urged the Council to vote in opposition to this resolution. DAN PETERSON stated that the clients who would qualify under the NPRHA project were those with credit problems and probably VoDuld not qualify for any other type of financing. l CSE154817 1 74 PAGE 74 REGULAR MEETING - APRIL 11, 1988 VOLUME 23 WILIARD DUNHAM, Forest Acres Subdivision, stated that alrrost all of the projects constructed in Seward since 1950 had been subsidized in sorre way. He stated that the city should help those in need of assistance and approve the resolution. No one else appeared in order to be heard and the public hearing was closed. Hilton stated that he had no problem with providing people with decent, quality harres in which to live, provided that the dwelling was not in a subsidized ownership program. He stated that the "Arrerican Dream" was not available to everyone living in this country. Hilton added that he saw a real I.XJten- tial for abuse under this program. In addition, the city stands to lose property taxes and sales taxes. He stated that he could not support this project at this tirre. SimJ.tis objected to the concept of a subsidized ownership program, stating that it was not everyone's inalien- able right to own a horre. She added that she VoDuld vote in opposition to the resolution. Noll asked Arvidson if it was possible to amend the cooperation agreerrent in a way that the fears expressed by Counci1rrembers could be allayed, in particular the question of a 25-year tax subsidy on a harre that was "paid off". Arvidson stated that the issue of putting a particular horre on the tax rolls while exempting others VoDuld probably be a difficult one to get through. He stated that he could address this with NPRHA and HUD attorneys. O'Brien stated that the project before the Council was a very thinly disguised low rent project. He stated that he was concerned about the loss of property taxes and the loss of sales tax revenue. He noted that, as a property owner, he had paid approximately $22,000 in property and sales taxes over the past 2 years while Bear MJuntain Apartrrents had paid $2,200. O'Brien added that if the need for this housing did exist, the private sector VoDuld provide it. He also noted Subsections (b) and (c) under Paragraph 4 (Page 3 of the Agreement), stating that he did not feel that the city should make such premises (vacating streets and alleys and relinquishing the city's interests in sarre to NPRHA, and deviating fran the Building Code). O'Brien stated that he was concerned that the city was "signing up for all kinds of things we I re not aware of". Dunham stated that there was no place for a young nother with children to own a harre without this project. ~ehan stated that he had supported HUD projects over the past 7 years, noting that at other tirres it was very clear what the Council was SUPI.XJrting, and the Council had been given adequate tirre to review earlier proposals. He stated that the Council's duty was to protect the best interests of the ( CSE 154818 ) I I I PAGE 75 REGULAR MEETING - APRIL 11, 1988 VOLUME 23 cannunity, and thus the Council llUlst know exactly what the project VoDuld cost the city before entering into an agreerrent. ~han stated that he did not want to sign a blank check based on errotion only. He added that he could not support the project as presented. NOLL MJVED TO POSTPCNE ACI'ICN m 'IRE PROPOSED RESOLU- TIm UNTIL THE APRIL 25, 1988, MEETING; THE ~Im WAS SEr:ONDED BY MEEHAN AND CARRIED WITH SIX "YES" VarES AND 0' BRIEN varING "NO" . X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. Gieseler appointed Bill Walker to fill the vacant seat on the Seward Trade and Cormerce Advisory Board for a term to expire in Noverrber 1988. There was no objection from the Council. XII. CITY MANAGER REPORI'S: Schaeferrreyer stated that he had proposed a I.XJssible land exchange between the city and the borough and had received positive support from the borough administration. His proI.XJsal entailed exchanging the city-owned property designated as a site for the proposed new elerrentary school for the remainder of the borough-owned property within the city limits. Schaeferrreyer stated that, if there was no objection from the Council, he VoDuld proceed with the public hearing process to effect such a trade. Administrative Assistant Kerry Martin outlined the proposed Harbor Parking Plan. He stated that enforcerrent would be accomplished by a fulltirre traffic officer during the surrrrer rronths. Port Marketing Director Christopher Gates distributed copies of his rrost recent rronthly status report which had been given to the Trade Board on April 5. He and Diener answered several questions fran the Council concerning the status of various projects. XIII. COUNCIL DISCUSSION: O'BRIEN asked about the status of the budget process. Schaeferrreyer stated that budget packets were going out to department heads this week, with planned distribution of the proposed FY 1989 budget to the Council at the April 25 rreeting. In response to a question from 0' Brien concerning the FY 1987 audit, Schaeferrreyer stated that the audit is essentially complete and would be presented to the Council on April 25. 75 TRADE BOARD: (B. Walker apptd.) ( CSE154819 1 76 PAGE 76 REGULAR MEETING - APRIL 11, 1988 VOI1JME 23 DUNHAM reminded everyone that Seward Expo was sched- uled for the coming weekend. She stated that the city should have participated in COM FISH in Kodiak this year and should plan to participate in the future. She also requested that the city urge operators of the shiplift to advertise their services statewide and outside the state. MEEHAN stated that he hoped to see a connunity-wide cleanup effort in the city. He also asked if the rrethod of disposal of stray animals had been changed since the recent newspaper article. Schaeferrreyer stated that the city is now using carbon nonoxide gas to dispose of these animals. HILTON asked if the city could begin abaterrent of the derrolished buildings behind the Body SHop. NOLL thanked Willard Dunham for putting together the prison dedication/opening cererronies. He also endorsed Dunham's idea for a Searren' s Center and offered his and Suneel' shelp. Noll asked the administration if it would be possible to eliminate the sales tax on food i terns. Schaeferrreyer stated that the city's tax is tied to the borough's and the city VoDuld be unable to deviate from the borough I s system. Arvidson stated that he would research this. GIESELER stated that he was VoDrking on a trip to Seward, Nebraska, for the Fall. He also stated that he had written a letter to LCDR Kitty Charrberlain inviting two frigates to Seward this sumrrer during the third or fourth week in June. In response to a question concerning the status of the Senior Center, Diener stated that he had talked to Werner earlier in the day. Werner had indicated that he was in the process of finalizing design drawings with another architect. He stated that he hoped to schedule a public hearing on the acquisition of the Werner property on May 9, with opening of the center sched- uled for this Fall. XIV. CITIZENS' DISCUSSION: BRAD SNaIDEN, 525 Sixth Avenue, stated that the M/V Tusturrena had recently been forced to spend 9 hours anchored in the Bay with passengers because the Polish fleet VoDuld not nove to let them in. He also asked the Council to consider replacing the downtown street lights with antique-style lamps. Sna,..tien then explained his idea for a one-car passenger train linking the Small Boat Harbor with DcMntown. He stated that he VoDuld rely on donations to get the rails, construction of the railway, and an antique rail car. Maintenance and upkeep VoDuld becorre the responsibility of the city or a nonprofit private corpo- ration. JOHN GLASSER, 405 Fourth Avenue, suggested that the city construct a paved shoulder down the length of Fourth Avenue ( CSE154820 1 ___ .._,~.._,.__."~._.___'_"'_"___' __'--""_' _.h_ ..___....____. 77 PAGE 77 RffiULAR MEETING - APRIL 11, 1988 VOLUME 23 I to create a pedestrian walkway between the Small Boat Harbor and DcMntown. XV. COUNCIL & ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: HILTON asked if it might be possible to rebate sales taxes on food to those who could deJIDnstrate need. He also asked if the Navy Task Force had surveyed the corrrrnmity to see if the majority of the residents of Seward were interested in harreporting aU. S. Navy vessel here. NOLL stated that it was a bit premature for a public hearing on the harreporting issue. ;;'lJJ.L'~. vl-'v- O~ Sl::~ '. ,'~ ..\.,,,,,,, -1 ,;;1,,'\ ',''iAf4rOf!;,A')" .'1-') .:)' C,' " (J" '. ,",' '-' :j -':'~ "'1,;; :; : --.; -.;".'. ~ : ~ . . ~ " % .'.......t,; "S1 Murphy, ~~ -, '--.:ltl't C;;1~ qe-rk ."- v/" . ~ "'il, " ~ ~'" ,~. ',- ' \>-"'; ;',--Cf Cf(cf1t.y, Seal) ',. - ...,....... ADJOURNMENT: The rreeting was adjourned at 9:59 p.m. s ~C-~'-4 : . Giese er I ---------------------------------------------------------------- PAGE 77 RffiULAR MEETING - APRIL 25, 1988 VOLUME 23 I. CALL TO ORDER: The April 25, 1988, regular rreeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: the flag. Councilm2mber Hilton led the pledge of allegiance to III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, Jlbll and O'Brien (SimJ.tis arrived at 7:36 p.m., and ~ehan was excused) I Present also: City Manager Schaeferrreyer, City Attor- ney Arvidson, Engineering & Utili ties Manager Diener, Port Marketing Director Gates, Administrative Assistant Martin, Parks & Recreation Director Yanez, Police Chief Bencardino and City Clerk Murphy ( CSE154621 ) 78 PAGE 78 REGULAR MEETING - APRIL 25, 1988 VOWME 23 IV. APPROVAL OF MINUTES: HILTON IDVED TO APPROVE THE APRIL 11, 1988, MINUTES AS WRI'ITEN; THE MJI'ION WAS S~ED BY NOLL AND CARRIED UNANIMJUS- LY. V. APprovAL OF REGULAR MEETING AGENDA: GIESELER MJ\lED TO MEET IN EXEr:UTIVE SESSleN IMMEDIATE- LY FOLLCWING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISaJSS MATTERS UNDER LITIGATION; THE MarION WAS SEr:ONDED BY O'BRIEN AND CARRIED UNANIMJUSLY. Schaeferrreyer stated that he VoDuld be asking the Council to postpone action on proposed Ordinance No. 603 (Agenda Item JIb. XI (B) (1) and proposed Resolution JIb. 88-041 (Agenda Item No. XI (C) (2). However, public hearings on these items VoDuld go forward as scheduled. HILTON MJVED TO APPROVE THE REGULAR MEETING AGENDA; THE MJI'ION WAS S~ED BY NOLL AND CARRIED lJNANIM)USLY. VI. BOROUGH ASSEM3LY REPORI': Kenai Peninsula Borough Assembly Representative Jonathan Sewall gave a verbal report of the April 12, 1988, special rreeting of the Assembly. NOI'E: SimJ.tis arrived and participated in the remainder of the meeting. VII. CITIZENS I C<M1ENI'S eN AGENDA ITEMS NOr SCHEDULED FOR PUBLIC HEARING: CITIZENS' DISCUSSION: DON SUTHERLAND, 225 Sixth Avenue, spoke in opposition (Don Sutherland/ to proposed Resolution No. 88-035 (North Pacific Rim Housing Opposed to R88- Authority Cooperation Agreerrent for a Mutual Help Harre ONnership 035) program). He stated that there are currently within the city 55 housing units under a NPRHA subsidized rent program, with a real property value of $1.5 Million. He noted that this existing housing has been rerroved from the property tax roles, adding that, had it been in private ownership, property taxes totalling $12,000 would have been paid in 1987. In contrast, NPRHA had paid no taxes and no payrrents in lieu of taxes. SUtherland stated that it was not fair that property tax payers should have to subsidize any additional low incorre housing developrrents. CITIZENS' DISCUSS: (Kei th Campbell/ Opposed to R88- 035) KEITH CAMPBELL, 1910 Forget Me Not Circle, spoke in opposition to proposed Resolution JIb. 88-035. He stated that any private builder or developer pays substantial building permit fees to finance the city's building inspection program. He questioned allowing HUD or NPRHA an exemption from the building codes and building inspections. Carrpbell stated that r CSE1'>4811 ] I I I PAGE 79 REGULAR MEETING - APRIL 25, 1988 VOllJME 23 just because this was a federally sponsored project did not guarantee that it would be a quality project. MIKE WILEY, 550 Railway Avenue, spoke in favor of proposed Resolution No. 88-035. He stated that the future will bring growth to the community, adding that many of those rroving to Seward will fall into the "low incorre" group. He also asked that any councilnember having a possible conflict of interest abstain from voting. VIII. APPROVAL OF CONSENT CALENDAR: GIESELER requested the addition of proposed Resolution No. 88-047 (requesting business mail delivery and installation of mail drop boxes in Seward) as Consent Calendar Item No.8. AMENDED; MXlSLY. SIMUTIS MJIlED TO APPROVE THE CONSENT CALENDAR AS THE MJTleN WAS SECONDED BY DUNHAM AND CARRIED UNANI- The following actions were taken: 1. Resolution No. 88-045, recognizing city errployees for their extraordinary efforts during April snowstorms, was approved and filed; 2. Resolution JIb. 88-046, approving a contract by and between the city and the Kenai Peninsula Borough for "911" EIrergency Telephone Corrmunication System Services, was approved and filed; 3. April 11, 1988, invoice from Vbhlforth, Flint & Gruening for legal services through March 31, 1988, totalling $2315.50, was approved for payrrent and filed; 4. October 1987 invoice from HTGP&B for legal services totalling $15,533.60, was approved for payrrent and filed; 5. Application for permit for garres of chance and skill as filed by SEWARD EMBLEM CLUB #250 was filed without objection; 6. April 19, 1988, rrerrorandum from Administrative Assistant Kerry Martin concerning DOT/PF plans for Exit Glacier Road was noted for information and filed; 7. April 18, 1988, rrerrorandum frcm Engineering & Utilities Manager E. Paul Diener concerning change orders to the Sarrwhan contract for prison construction as follows was noted for information and filed: #133 - Providing for the reV1Slon of the ceiling height in Building #4 Control Room and Corridor (+$3828); #134 - Providing for a deletion of pistol lockers (-$525); 7q CITIZENS' DISCUSS: (Mike Wiley/ In support of R88- 035) PERSONNEL/RESO: COMMUNICATION/RESO CON- 142-: ("911" Service) C.ATTY: C.ATTY: GAMES OF CH & SKL: CON- IS" ( CSE154823 1 80 USPO/RESO: PUBLIC HEARINGS: (Library Trans.) " PAGE 80 REGULAR MEETING - APRIL 25, 1988 VOWME 23 #135 - Providing for change in floor covering from vinyl tile to type C-l carpet (+$975); #136 - Providing for installation of J type fluores- cent light fixture in Rocm 1-120 (+1530); #138 - Providing all labor, equipment and materials to rerrove dowels installed for relocating wall and install dowels at original plan location (+$2624); #139 - Relocating two closed-circuit TV carreras to monitor doors (+$2325); #143 - Providing survey notes and computations to show COIIpaI"ison to Entry/Service road prior to and after road was utilized for flood repairs (+$680); #144 - Providing tenporary rreasures to prevent flood- ing of Building No. 3 during the winter of 86/87 (+3750); #145 - Installing 10" schedule 40 pipe at Service Road to serve-- as a culvert and constructing additional swales (+$4260); #146 - Providing for additional electrical work per proposal #71 (+$7100); #147 - Providing equir;ment, materials and labor for TIOVing manhole and pipe frcrn service road area (+$1549); #148 - Providing for better drainage than original plan provided (+$6500); and #149 - Extending rental on additional office space frcrn January 17 to February 17 (+$2555); and 8. Resolution No. 88-047, urging the U. S. Post Office to initiate business mail delivery and the installation of mail drop boxes in the city of Seward, was approved and filed. IX. PUBLIC HEARINGS: A. Notice of public hearing, as posted and published by law, concerning the proposed transfer of library assets and obligations from the Seward Corrmunity Library to the city was noted and the public hearing was opened. Gieseler noted that the real property to be transfer consisted of the Library Site (Lots 38, 39 and 40, Block 8, ars). In addition, the agreement called for the transfer of the Library's beneficiary interest in the SWetman property (Deed of Trust Note on the South one-half of Lot 6 and all of Lots 7 and 8, Block 16, OTS). KEVIN O'CCNNOR, 521 Sixth Avenue, and DOUG CAPRA, 212 Resurrection Boulevard, both representing the Corrmunity Library Board, gave the Council sorre historical background concerning the Library. O'Connor stated that the Library has been in existence for over 50 years and has been in its present location since 1964. The Board had approached the city as part of its long range plan. O'Connor stated that the Corrmunity Library needs to grow with the community, and placing the Library under the city administration VoDuld assure its future. O'Connor and Capra asked that the Council rerrove any reference to the Swetman ( CSE154824 1 I I I PAGE 81 VOWME 23 RffiULAR MEETING - APRIL 25, 1988 property from the Transfer Agreerrent. Capra stated that the proceeds fran this Deed of Trust Note VoDuld help the Library Association continue to finance a scholarship. In addition, noney was needed to continue with supplemental historical projects and as seed noney for fund raising projects. He stated that it was in the city's best interest to have an active Library Association and suggested that the incarre from the Jlbte VoDuld assure its continued success as an organization. JIb one else appeared in order to be heard and the public hearing was closed. B. Notice of public hearing, as posted and published by law, concerning the proposed acquisition of Lot 1, USS 3294; and Alaska State Land Survey #76-69 (Seward Plat #77-8), excepting therefrom Fourth of July Creek Tracts A-E (Seward Plat #84-6) and Spring Creek Co=ectional Facility Site, Parcel A (Seward Plat #84-12) from the Kenai Peninsula Borough was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Notice of public hearing, as I.XJsted and published by law, concerning the proposed disposition of a proposed school site (Lot 8A, Fort Rayrrond Subdivision, Replat #1; and Lot 1, Jesse Lee Heights Subdivision Addition #2) to the Kenai Peninsula Borough was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. D. amendrrents to and published opened. Notice of public hearing concerning the proI.XJsed the Chugach Alaska Corporation lease, as posted by law, was noted and the public hearing was CHRIS GATES, Director of Marine Marketing for the city of Seward, stated that the addendum before Council represented nonths of I.XJst lease negotiations with Chugach Alaska Corpo- ration. He noted that both the lease and the addendum had been signed by CAeI. Gates reviewed for the Council the substantive changes which the addendum VoDuld make to the lease: 1) The bank financing the developrent VoDuld be allowed to operate the facility under the terms of the lease if CAeI should default; 2) CAeI could withdraw from the lease if, after June 1, 1989, it has not received all essential permits; and 3) sorre definitions of insurance coverage VoDuld be altered. Gates noted that the city's insurance adjuster felt that the insurance language changes were actually advantageous to the city. In response to a question fran O'Brien, Gates stated that the addendum VoDuld not allow the subordination of the city's rights to the proper- ty. MIKE CHITTICK, President of Chugach Alaska Corpo- ration, thanked the Mayor and Council, the City Manager and Chris Gates for their cooperation in negotiating the lease and 81 PUBLIC HEARINGS: (City/Borough Land exchange) PUBLIC HEARINGS: (City/Borough Land exchange) PUBLIC HEARINGS: (CACI Lease Amendments) ( C SEl54825 ) 22, PARKING/SBH/ORD: (SBH Parking Regulations) PAGE 82 REX3ULAR MEETING - APRIL 25, 1988 VOLUME 23 getting to "where we are today". He stated that CAeI had corrmitted to this project in January, and since that tirre, CAeI had finalized its financing for the $13 Million project and was noving aggressively in all other aspects of the project. He stated that, weather permitting, CAeI planned to break ground mid to late May, with a planned "start up" early next surrmer (1989) . GIESELER thanked Chittick for his comrrents and stated that the city is excited about the project and ready to work with CACI to make ita success. JIb one else appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NaI'ICE ONLY: None XI. ORDINANCES AND RESOlllTleNS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactrrent: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled : AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING A LIBRARY DEPARI'MENT AND PRCJI1IDING FOR THE OPERATION OF PUBLIC LIBRARY FACILITIES. Notice of public hearing as I.XJsted and published by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. SIMUTIS KJ\1ED TO POSTPCNE ACTleN ON PROPOSED ORDINANCE NO. 603 UNTIL MAY 9, 1988; THE MJTleN WAS SEr:ONDED BY NOLL AND CARRIED UNANIM:XJSLY. 2. Copies having been made available to the public, Gieseler noted by ti tIe only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SECTION 14-85.1 OF THE SEWARD CITY CODE REGUIATING PARKING WITHIN THE SEWARD MUNICIPAL BOAT HARBOR. ( CSE 1')4826 ) I I I 83 PAGE 83 REGULAR MEETING - APRIL 25, 1988 VOIDME 23 Notice of public hearing as posted and published by law was noted and the public hearing was opened. PETE AIJI'HIER, Diarrond Boulevard, stated that he was disappointed that the Council had not held a public hearing at a tirre when those rrost affected could be present to testify. MIKE BRITTAIN, Small Boat Harbor, stated that the Council should be interested in serving the local people first rather than serving one day tourists. He stated that the proposed parking plan VoDuld penalize boat owners and those who VoDrk in the Harbor. He added that he was not sure the proI.XJsed plan was enforceable. ANNA YOUNG, Small Boat Harbor, asked if the city had considered a permit program for parking in the Harbor. CLEM M:CANN, 503 Second Avenue, stated that he felt the city was getting away from the original purpose to be served by a municipal boat harbor. He stated that Kerry Martin and the Council have VoDrked very hard at solving the parking problem in the Boat Harbor, but he felt that this proposal was not the so- lution. GIESELER noted a letter from Arlene Dauven, Anchorage, and read into the record the following paragraph: In conclusion, I hope that the city fathers do not create such an adverse affect (sic) which will be the catalyst to bring the boat owners together to stand for their rights. In doing so one of the rrethods they VoDuld use would be to lobby Juneau to limit spending or to put a IlUlch tighter control on how rronies can be spent for the Harbor. Gieseler also noted letters from Jarres and Donna Rexroat (op- posed to parking plan) and Pam Oldow (noting that Kenai ,Fjords Tours, Inc., would make parking adjacent to the A-Frarre avail- able for its custorrers). No one else appeared in order to be heard and the public hearing was closed. HILTON IDVED TO ENACT ORDINANCE NO. 604; THE MJI'ION WAS SEOJNDED BY SIMIJTIS. In response to a question from O'Brien, Schaeferrreyer stated that the administration had been working on finding a solution to the Harbor's parking problems for a number of rronths. He added that there had been extensive involvement with the Planning Corrrnission, including a public hearing last winter on the Harbor Master Plan which included a parking plan similar to the one the administration proposed to iIrplement. He stated ( CSE 154821 1 84 PAGE 84 REGULAR MEETING - APRIL 25, 1988 VOLUME 23 that the plan as presented by the administration was the best it could provide with the resources at its disposal. 1\dministra- tive Assistant Martin stated that a total of seven handicap parking spaces VoDuld be provided throughout the Harbor area. In addition, the restriping in the parking lot would provide for angle parking. He noted that, following the reorganization of the parking plan in the Harbor, over 500 parking spaces would be available. Simltis stated that the idea of initiating a permit- ting system for those living in the Srrall Boat Harbor was attractive, but left too IlUlch room for abuse. She stated that she VoDuld like to see action postponed in order to provide for rrore public input. Dunham stated that providing reserved parking for certain individuals VoDuld cause as many problems as the proposed plan. She stated that there was no way to please everyone, and the City had to atterrpt to serve as many uses as I.XJssible in the Harbor. Gieseler stated that he had asked the administration to address the parking problem in the Srrall Boat Harbor. He stated that the plan proI.XJsed by the administration was fair and equitable, and he noted that, if it did not VoDrk, it could always be changed at a later date. He took exception to sorre of the testirrony given by the public, stating that when one decides to live on a boat in the Harbor, one gets only the rights and privileges that go with payrrent of the slip rental. He noted that when Seward residents go to Anchorage to shop, not only IlUst they fight for a parking space, but (in most cases) they IlUlSt pay for the right to park. In contrast, parking in the Srrall Boat Harbor has always been free. Gieseler stated that he wants to see people carre to Seward and enjoy themselves, but he urged the visitors to work with the city, not against it. He objected to SimJ.tis I suggestion that action be postponed. O'Brien stated that he was a bit concerned about irrplerrenting a plan to solve a seasonal problem. Schaeferrreyer stated that the plan VoDuld be "year-round", but the city VoDuld have .no regular parking enforcerrent personnel on the payroll during the winter rronths. In response to a question frcro Jlbll, Schaeferrreyer stated that an RFP for the striping of the parking lots was out now, but the key factor involving tirre was ordering the signs. Hilton stated that the plan was a good one, and no one VoDuld be outrageously inconvenienced by it. He added that he VoDuld prefer a seasonal plan, but could see no point in I.XJstpon- ing action on the ordinance. SIMlJI'IS MJVED TO POSTPONE ACTION eN THE ORDINANCE UNTIL MAY 9, 1988; THE MJI'ION WAS SECCNDED BY DUNHAM AND FAILED (CSE1548lB ) I I I PAGE 85 REGUIAR MEETING - APRIL 25, 1988 VOIlJME 23 TO CARRY WITH DUNHAM AND SIMUTIS VarING "YES" AND GIESELER, HILTCJI'il, NOLL AND O'BRIEN VOTING "NO". THE QUESTION WAS CALLED eN THE MAIN MJI'ION AND ORDI- NANCE NO. 604 WAS ENACTED BY UNANIMJUS VarE OF THE COUNCIL. (Note: Enactrrent of the ordinance gave the administration the authority to designate certain areas in the Boat Harbor as "Short term", "Interrrediate term", "Long term", or "Loading Zone", and gave the authority to inpound vehicles parked in violation of the code. Initiation of the parking plan, however, is an administrative function and does not require the approval of Council.) RECESS: The rreeting was recessed at 8:55 p.m. and reconvened at 9:00 p.m. C. Resolutions: 1. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTleN OF THE CITY CDUNCIL OF THE CITY OF SEWARD, ALASKA, TO ENTER INTO A COOP- ERATION AGREEMENI' WITH THE NORI'H PACIFIC RIM HOUSING AUTHORITY. Murphy noted that a notion for approval of proposed Resolution JIb. 88-035 was on the floor, postponed fran the April 11, 1988, rreeting. Gieseler noted an April 22, 1988, letter from NPRHA asking that Council postpone action once again until May 9. Hilton stated that he could not believe that any new information could be forthcoming that VoDuld make him change his mind about this proposed agreerrent. He stated that he could be in favor of a subsidized rental program, but not an ownership program. In response to a question from Jlbll, Schaeferrreyer stated that North Pacific Rim Housing Authority had not acknowl- edged the city attorney's April 14, 1988, letter (hand delivered) setting forth the concerns expressed by the Council and the public at the April 11 rreeting. Noll stated that he was a "quasi-supporter" of this type of project but agreed with sorre of the criticisms from the public and the Council. He stated that he could not support the agreerrent in its present form. SimJ.tis stated that she continued to object philoso- phically to the project. Dunham stated that she supported subsidized housing projects and was in favor of this one. She asked Mr. Chittick 85 NPRHA/RESO: (88-035 FAILED) ( (S1:154829 1 86 EQUIPMENT/FINANCE/ CON- '-1'\ /RESO: (Lease/Purchase agrmt w/ Rainier Bank Alaska - Hasp. Computer & Utile Truck) FOURTH OF JULY CRK/ LEASE/RESO: (Amdmts to CACI Lease apprvd) PAGE 86 REGUI..Z\R MEETING - APRIL 25, 1988 VOllJME 23 to ask NPRHA to VoDrk on devising an agreerrent that would rreet with Council approval. 0' Brien asked the chair to rule on any conflict of interest which might arise out of his interest in rental prop- erties in town. Gieseler ruled that no oonflict existed. THE QUESTleN WAS CALLED AND THE MJI'ION TO APPROVE RESOLurION NO. 88-035 FAILED WITH DUNHAM VOTING "YES" AND ALL OTHER COUNClIMEMBERS VOTING "NO". 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOWTleN OF THE CITY OJUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING THE TRANSFER OF LIBRARY ASSEI'S AND OBLIGATIONS TO THE CITY. DUNHAM MJ\1ED TO POSTPONE ACTleN ON PROPOSED RESOLUrION NO. 88-041 UNTIL MAY 9, 1988; THE MJTleN WAS S~ED BY SIMlJI'IS AND CARRIED UNANIMJUSLY. 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING THE EXECUTION OF AN mUIPMENT LEASE/PURCHASE AGREEMENT BY AND BEIWEEN THE CITY AND RAINIER BANK AIASKA, N.A.; AND PROVIDING FOR RELATED MA'ITERS . SIMUTIS IDVED TO APPROVE RESOLUTION NO. 88-042; THE MJI'ION WAS S~ED BY NOLL. Hilton noted that the corrputer equifXlEIlt to be fi- nanced was being purchased for the Hospital and asked if his position as the Hospital's Assistant Administrator represented a conflict of interest. Gieseler ruled that no conflict existed. THE QUESTION WAS CALLED AND THE RESOWTleN WAS M?- PROVED BY UNANIMJUS VOTE OF THE COUNCIL. 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOWTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING AMENDMENTS TO A LEASE OF CITY-avNEQ REAL PROPERTY BY AND BETWEEN THE CITY AND CHUGACH ALASKA CORPO- RATION. ( CSE154830 1 I I I PAGE 87 REGULAR MEETING - APRIL 25, 1988 VOLUME 23 O'BRIEN MJVID TO APPROVE RESOLUTleN NO. 88-043; THE IDTIeN WAS SEr:ONDED BY SIMUTIS. Noll asked the chair for a ruling on a possible conflict of interest on his part. He stated that Suneel Alaska may handle wood chips from the sawmill on its conveyor. (Noll is Vice President of Suneel.) Gieseler ruled that no conflict existed. THE QUESTION WAS CALLED AND THE IDTION CARRIED BY UNANIMJUS VOTE OF THE COUNCIL. 5. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTIeN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZIN3 AN EXCHANGE OF CITY AND BOROUGH IANDS. SIMUTIS IDVED TO APPROVE RESOLUTIeN NO. 88-044; THE MJI'IeN WAS SEr:ONDED BY HILTCN AND CARRIED UNANIM:XJSLY. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. HILTON MJVED TO APPROVE CHANGE ORDER NO.1, FOR AN AMOUNT NOI' TO EXCEED $350,000, TO THE DEPAR'IMENT OF TRANSPOR- TATION AND PUBLIC FACILITIES crnSTRUCTION MANAGEMENT CCNI'RACT; THE MOI'ION WAS SEr:CNDED BY NOLL AND CARRIED UNANIM:XJSLY. B. GIESELER APPOINTED MARGARET BRANSON TO BE THE CITY'S PRIMARY REPRESENTATIVE AND BETH POKORNY THE CITY'S ALTERNATE REPRESENTATIVE TO THE COOK INLET AQUACULTURE AS80- CIATIeN BOARD OF DlREX:TORS. Council concurred. C. GIESELER APPOINTED COUNCII1>1EMBER SIMlJI'IS TO BE THE COUNCIL I S REPRESENTATIVE TO THE SEWARD ENHANCEMENT ASSO- CIATION BOARD OF DlREX:TORS. XIV. CITY MANAGER REPORI'S: SCHAEFERMEYER distributed a budget calendar to the Council and scheduled a work session for Tuesday, May 3, 1988, beginning at 7:00 p.m., in order to present the FY 1987 audit for Council review and to discuss the proposed FY 1989 city budget. GIESELER appointed SimJ.tis to chair the Evaluation Corrmittee to review the performance of the manager, clerk and attorney. 87 DEEDS & EASEMENTS/ RESO: (City/Bar. Land Exchange Apprvd. ) CON- ~ (Change Order No. 1 to DOT / PF ConstructioJ Mngmt Cant. aprvd) ClAA: (Branson & Pokorny apptd to Board) SEWARD ENHANCEMENT ASSOC: (Simutis apptd to Board) (CSE154831 ) 88 PAGE 88 REGULAR MEETING - APRIL 25, 1988 VOllJME 23 XV. COUNCIL DISCUSSION: 0' BRIEN suggested that the city imrrediately post the Harbor parking lots indicating when new regulations will be enforced. He also objected to the delay in receiving the budget. He stated that he VoDuld not countenance another delay. NOLL noted a letter from Adjutant General Schaefer regarding an upcoming visit from the Navy to review the eleven or so ports in the running for Navy Horreporting status. GIESELER thanked Noll for his part in spearheading the Navy Horreporting effort. He also noted that several employees of the Seward Police Departrrent had graduated from an Etrergency Trauma Training class. Gieseler then explained that his oppo- sition to Resolution JIb. 88-035 (NPRHA project) was based on a State Attorney General's opinion that agreerrents exempting such housing from taxation were not legal in the state of Alaska. He added that, once the Legislature enacts legislation allowing such agreements, he VoDuld be happy to change his vote. Finally, Gieseler noted that the bill expanding the Alaska Railroad Board of Directors VoDuld probably not make it through the legislature, but he assured everyone that this was not a dead issue with him. He publicly thanked Senator Kerttula and Representative Cato for their efforts in the bill's behalf and noted a letter from Senator Kelly urging the Governor to appoint a Seward resident to the Board when a seat becorres available this fall. XVI. CITIZENS' DISCUSSION: KEITH CAMPBELL, Seward General Hospital administrator, urged the Council to instruct the City Manager to write a letter or telegram in support of SB 461. This bill would put back into place each party's (hospital and physician) liability in rredical malpractice suits as they existed prior to the Court's recent ruling. Gieseler instructed Schaeferrreyer to write such a letter. BOB VAIDATTA, 528 Fifth Avenue, questioned the place- rrent of city-impounded vehicles outside the city limits. KEVIN 0 I CCNNOR, President of the Chamber of Comrerce, corrrrented on the success of the 1988 Seward Expo in Anchorage. He stated that one recurring =rplaint from visitors to Seward was the state of the public restrooms on the Greenbelt and asked if they could receive nore attention this season. XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' cn-1MENI'S: SIMUTIS asked if Harbor office hours were to be extended this surrrrer. Schaeferrreyer stated that the proposed Harbor renovation VoDuld provide 24-hour access to the restroans and showers; however, the bids for the renovation had just been opened and the low bid was approximately twice the engineer's estimate for the project. Schaeferrreyer stated that, in any ( CSE154832 ] I I I 89 PAGE 89 REGULAR MEETING - APRIL 25, 1988 VOLUME 23 case, the city did not intend to hire a SUIllller attendant this year for the evening hours. GIESELER apologized to Counci1rrember Dunham for not recognizing and thanking her for her contributions to this year's Expo. In response to a question concerning the proposed ARR lease to the Yacht Club, Schaeferrreyer stated that ARR has published a notice concerning the lease and the Planning Cornnis- sian has approved a conditional use permit. XVIII . ADJOURNMENT: The rreeting was adjourned at 9:45 p.m. and, following a brief recess, the Council reconvened in Executive Session to discuss pending litigation. ~~-&Ud~ Har . Gieseler Mayor -.- ,: . " EAL ~ : . " ......... . ?. '.., ..'" : ~ ",.~~". ~"fJ",,",. \U'r ,..:"..~~..., ~*- -c';~~{:-1"f OF ~\.~ ~/~ J.. - )'1';">7;" ---------------------------------------------------------------- PAGE 89 REGULAR MEETING - MAY 9, 1988 VOLUME 23 I. CALL TO ORDER: The May 9, 1988, regular rreeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM:lNY: Councilrrember ~han led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and CouncilIlembers Hil- ton, ~ehan, O'Brien and Simutis (Dunham and Noll were excused) ( CSE154833 1 90 CITIZENS DISC: PAGE 90 REGULAR MEEI'ING - MAY 9, 1988 VOLUME 23 Present also: Interim City Manager Schaefermayer, City Attorney Arvidson, Manager of Engineering and Utilities Diener, Parks and Recreation Director Yanez, Port Marketing Director Gates, Administra- tive Assistant Martin, Finance Director Peirson, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: O'Brien noted a correction to Page 88 of the minutes and requested that the phrase "that the lots will be closed for striping" be substituted for the phrase "when new regulations will be enforced". SIMUTIS M)VED TO APPROVE THE APRIL 25, 1988, MINUTES AS AMENDED; THE MJI'IeN WAS SECCNDED BY HILTON AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: HILTON MJVED TO MEEI' IN EXECUTIVE SESSION IMMEDIATELY FOLlDWING THE MEEI'ING IN ORDER TO DISCUSS PENDING LITIGATION; THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. Schaeferrreyer requested the addition of two resolu- tions under Agenda Item XI (C): 3) Proposed Resolution No. 88-055, authorizing the purchase of hot water boilers for the Spring Creek Correctional Center without full utilization of city bid procedures; and 4) Proposed Resolution JIb. 88-056, reallocating remaining Federal Revenue Sharing Funds; and the addition of a "New Business" item [No. XIII (B)] Proposed striping contract for city streets and parking lots. MEEHAN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MJI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANI- MJUSLY. VI. BOROUGH ASSEMBLY REPORI': Kenai Peninsula Borough Assembly Representative Jonathan Sewall was not present and no report was given. SPECIAL ITEM: Gieseler introduced Spring Creek Correctional Center SUperintendent Dick Schoeffel and welcorred him to town. VII. CITIZENS' Ca1MENTS eN AGENDA ITEMS NOr SCHEDULED FOR PUBLIC HEARING: BRAD SN(w)EN, 525 Sixth Avenue, spoke in support of Don Holland's request to allow liquor establishrrents to open at 8:00 a.m. on Sunday, July 3, 1988. () _ CSE154834 . I I I PAGE 91 RffiULAR MEETING - MAY 9, 1988 VOLUME 23 VIII. APPROVAL OF CONSENT CALENDAR: SIMUTIS MJIJED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE IDI'IeN WAS SECONDED BY HILTON AND CARRIED UNANI- MJUSLY. The following actions were taken: 1. Resolution No. 88-048, authorizing participation in the Fiscal Year 1989 Day Care Assistance Program, was ap- proved and filed; 2. Resolution JIb. 88-049, in support of the Alaska/ Siberian connection and proposed Friendship Flights between Alaska and the Soviet Union, was approved and filed; 3. Resolution JIb. 88-051, awarding a contract for gravel removal and maintenance at Fourth of July Creek, was approved and filed; 4. Resolution No. 88-052, approving a short term lease of city-owned property to AKCON, Inc., was approved and filed; 5. Resolution No. 88-054, awarding a contract for Harbormaster Building irrprovements, was approved and filed; 6. May 5, 1988, rrerrorandum from Administrative Assistant Kerry Martin requesting approval of an assignrrent of lease for security purposes (Boardwalk Site No.8), as requested by Don and Pam Oldow and Jack and Sheila Scoby, was approved and filed; 7. May 5, 1988, rrerrorandum from Administrative Assistant Kerry Martin requesting authorization for the Seward Enhancerrent Association to erect welcoming banners in the Small Boat Harbor and the DcMntown Business District was approved and filed; 8. April 25, 1988, rrerrorandum from Administrative Assistant Martin requesting Council consent to establish a cash clearing account to accept and distribute contributions to the Seward Enhancement Association was approved and filed; 9. Proclamation welcoming the Ravenwood Elementary School Fifth Grade Class to Seward May 19-20, 1988, was noted for information and filed; 10. Proclamation designating May 15-21, 1988, as CLEAN UP AWARENESS WEEK and May 21, 1988, as SUPER SATURDAY was noted for information and filed; and 11. May 2, 1988, rrerrorandum from Manager of Engineer- ing and Utili ties Diener noting the following change orders to the Sanwhan contract for prison construction was noted for information and filed: 91 DAY CARE/GRANTS/ RESO: AK/SIBERIAN CONI RESO: FLOOD CONTROL/RESC RE- /RESO: HARBOR/CON-2~g / RESO: BOARDWALK LEASE: SIGNS/SEWARD EN- HNCMNT ASSOC: SEWARD ENHANCEMNT ASSOC: PROCLAMATION: PROCLAMATION: CON - I 5'1: (CSE154835 ) 92 PAGE 92 REGULAR MEETING - MAY 9, 1988 VOUJME 23 #124 - Providing for rrodification of the grading to interface curb and drainage at the APS building (+$4,800) ; #140 - Providing for installation of two roof drain sand cast iron drain leaders at the southern lower roof of the APS building (+$11,816); #141 - Installing lateral structural bracing at Building No.4 clerestory (+$25,236); #142 - Providing for compensation for inpact and increased material costs due to stop VoDrk order issued on June 30, 1987 (+28,500); #150 - Providing for a credit to restock lavatory sink fixtures (-$6,685); #153 - Providing a credit to delete vinyl shower pan liners at 42 shower locations (-$5,763); #154 - Providing for over excavation along west side of the APS building, repair electrical fixtures in oor/PF office, and over excavation at light I.XJle base & installing approved fill to rreet conpaction requirerrents (+$4,599); #155 - Providing for installation of Z Purlins for ridge line on Buildings 2, 3, and 4 (+$8,687); #156 Providing for revisions of concrete sidewalks, installing concrete stairs and handrails at parking lots (+$5,500); #157 - Providing power circuitry and nonitoring for the day tanks (+$6,142); #158 - Providing 120 V power circuit from panel 6N (+$699); #159 - Providing for additional electrical VoDrk (+$3,985); #160 Installing one explosion proof smoke detector in Room 5-001 (+$6,655); #162 - Providing for additional striping of red accent paint trim to the APS building and Buildings 2, 3, and 4 (+$10,000); #163 - Providing for excavation of embankment material from cul-de-sac area with specified backfill material to be utilized (+$9,109); ( CSE154836 ) I I I PAGE 93 REGULAR MEEI'ING - MAY 9, 1988 VOLUME 23 #164 - Providing for a watertight toggle switch for dishwasher and additional control wires (+$1,085); #165 - Providing for replacerrent of electrical circuit breakers (+$832); #8 - Providing all equipnent, materials and labor for over excavation of silty sand material (+$67,122); #68 - Providing for revised architectural draw- ings (+$12,632); #94 - Providing all labor, equiprrent and mate- rials~ accorrplish RFP #15, RFP #27 and RFP #17 (+$13,967) ; #106 - Providing for all electrical VoDrk per DCVR's #599, 474, 685, 623, 615, 643, 168 and 346 (+$16,200); and #137 - Providing for installation of steel column enclosures (+$14,900). IX. PUBLIC HEARINGS: A. Public hearing on proposed Chugach Alaska lease was cancelled. B. Notice of public hearing as posted and published by law regarding the proposed Fiscal Year 1989 city operating and enterprise fund budgets was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. x. PRESENTATleNS WITH PRIOR NOTICE ONLY: A. DON HOLLAND, 320 Sixth Avenue, Elks Club Manager, asked Council to waive the city code provision which prohibited opening of liquor establishrrents between the hours of 5:00 a.m. and Noon on Sundays for one day only - Sunday, July 3, 1988 - so that local bars could open at 8:00 a.m. every day of the holiday weekend. Arvidson stated that, since the ordinance specifically provides for the hours of opening and does not allow liquor to be served between 5:00 a.m. and Noon on Sundays, the only way to grant Holland's request VoDuld be through an ordinance change. He suggested that the Council consider arrending the Code to allow the Council, by resolution, to waive the Noon opening on special occasions. He stated that he would draft such an ordinance for introduction at the next rreeting. B. SUSAN FERGUSCN, representing Hendrix and Esslin- ger, reviewed the Fiscal Year 1987 city audit. Following her 93 PUBLIC HEARING/ BUDGET: CITIZENS DISC: CITIZENS DISC/ AUDIT: (CSE154631 ) 94 PAGE 94 REGULAR MEETING - MAY 9, 1988 VOLUME 23 presentation, O'Brien asked what the Council could do to provide a nore tirrely presentation of future audits. Schaeferrreyer stated that Council has acted towards this goal by providing more assistance to the Finance Director through establishment of an Assistant Finance Director position. In response to a question from Hilton concerning the definition of "tirrely", Ferguson stated that an October 15 presentation was a good target date. XI. ORDINANCES AND RESOLUTleNS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactrrent: LIBRARY/ORD: 1. Copies having been made available to the public, Gieseler noted by title only a proI.XJsed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING A LIBRARY DEPAR'IMENT AND PROVIDING FOR THE OPERATION OF PUBLIC LIBRARY FACILITIES. Gieseler noted that public hearing on the proposed ordinance had been conducted at the May 9 rreeting and requested a notion from the Council. HILTON MJVED TO ENACT ORDINANCE NO. 603; THE MJTION WAS SEr:CNDED BY MEEHAN AND CARRIED UNANIMJUSLY. C. Resolutions: LIBRARY/RESO: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE TRANSFER OF LIBRARY ASSETS AND OBLIGATIONS TO THE CITY. MEEHAN MJVED TO APPROVE RESOLUTleN NO. 88-041; THE MJI'IeN WAS SECCNDED BY SIMUTIS AND CARRIED UNANIMJUSLY. U. S. NAVY (Homeportinq) / 2. Copies having been made available to the RESO: public, Gieseler noted b1 title only a proposed resolution entitled: A RESOLUTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FROM THE HARBOR RESERVE ACCOUNT FOR NAVY HCME- PORI'ING ATTRACTIeN EFFORI'S. l (Sf 154838 1 I I I PAGE 95 REGULAR MEETING - MAY 9, 1988 VOLUME 23 MEEHAN MJVED TO APPROVE RESOLUTleN NO. 88-053; THE MJI'IeN WAS SECCNDED BY SIMUTIS. Gates noted his May 9, 1988, rrerrorandum recorrmending approval of a $10,000 appropriation for the Navy attraction effort. He introduced Gerald Hansmire, a Makers, Inc., partner, under contract to the city of Seward to provide technical assistance in the attraction effort. In response to a question fran O'Brien, Gates stated that the $2500 original contract with Makers had resulted in an outline of the presentation document, including cover design and layout. Hansmire stated that there are currently 8 to 10 cities "in the running". He said that, while he could not guarantee that Seward VoDuld be chosen to harreport Navy vessels, he could make sure that Seward puts its best foot forward. THE QUESTION WAS CALLED AND THE MJTION TO APPROVE RESowrION NO. 88-053 CARRIED UNANIMOUSLY. 3. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTleN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE OF HOT WATER BOILERS FOR THE SPRING CREEK CORRECTIONAL CENTER WITHOUT FULL UTILIZATION OF CITY BID PROCEDURES. O'BRIEN IDVED TO APPROVE RESOUlTION NO. 88-055; THE MJI'IeN WAS S~ED BY MEEHAN. Diener stated that it had recently been discovered that the prison boiler system provided insufficient hot water for the anticipated 200 prisoners due to arrive in June. He said that city/state research into a solution for this problem had resulted in this request for the purchase and installation of an additional boiler in each building, with funds to carre from the prison reserve account. Dick Schoeffel, SCCC Superin- tendent, stated that the prison VoDuld be opening with a limited, inexperienced staff. He said that the lack of sufficient hot water VoDuld cause disciplinary problems. Diener requested an arrendnent to the ordinance which VoDuld set up a contingency account in the aITOunt of $8,400 for this project. 0' BRIEN AND MEEHAN AGREED TO AMEND '!HE ORIGINAL mrION BY ADDING A NEW SECTleN 4 TO THE RESOLUTION TO READ "THE CITY MANAGER IS AUTHORIZED TO ESTABLISH A OJNTINGENCY ACCOUNT NOT TO EXCEED $8,400" AND TO RENUMBER EXISTING SECTION 4 TO SECTION 5. THE QUESTION WAS CALLED AND THE mrION 'It) APPROVE RESOUlTION NO. 88-055, AS AMENDED, CARRIED UNANIM:XJSLY. 95 PRISON/CON- 300 / RESO: ( CSEl54839 1 96 PAGE 96 REGULAR MEETING - MAY 9, 1988 VOLUME 23 FED.REV.SHRG/RESO: 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOWTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, REALLCX:ATING REMAINING FEDERAL REVENUE SHARING FUNDS. HILTCN MJ\1ED TO APPROVE RESOWTION NO. 88-056; THE MJI'IeN WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIMJUSLY. RECESS: The rreeting was recessed at 8:45 p.m. and reconvened at 9:45 p.m. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: CLAIMS FOR DAMAGES: A. 0' BRIEN MJ\1ED TO APPROVE A CLAIM FOR DAMAGES (Nelson-Denied) TOTALLING $600 AS FILED BY G. O. NELSON; THE MJI'ION WAS SECONDED BY SIMUTIS AND FAILED TO CARRY WITH ALL PRESENT VOTING "NO". STREETS/HARBOR/CON- B. SIMUTIS MJ\1ED TO AUTHORIZE THE CITY MANAGER TO ~ : AWARD A CCNI'RACI' TO ANCHORAGE LOr STRIPING FOR AN Af.DUNT NOT TO EXCEED $17,102, AND A PROJECT CONTINGENCY OF $1,700, FOR A TOTAL PROJEr:T AIDUNT OF $18,802; THE MJTleN WAS SEr:CNDED BY HILTON AND CARRIED UNANIM:XJSLY. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER introduced newly appointed Assistant Finance Director Rick Gifford. He stated that he would be spending sorre tirre with Arvidson to go over a proposal the city had received to develop a number of Gateway Subdivision lots, and if successful in negotiationS with the proposer, he VoDuld schedule the disposal of property for public hearing on May 23. Schaeferrreyer noted that the agreerrent with Alliance Bank has been finalized, the Deed in Lieu of Foreclosure signed, by Gateway Ventures, and the city is now in a position to aggressively market the property. SCHAEFERMEYER asked the Council to schedule a VoDrk session on the Enterprise budgets at sarre tirre prior to the May 23, 1988, meeting. He also noted that the Grade School project is still a possibility. He stated that the city expects to receive sane funds from the State, but the project would require sorre addi- tional noney from the Borough. Schaeferrreyer stated that Mayor Gilman had indicated that he VoDuld request appropriation of sorre (CSE154840 1 I I I 97 PAGE 97 RffiULAR MEETING - MAY 9, 1988 VOLUME 23 additional revenue sharing noney to the school project and would ask the Assembly to place on the October ballot a proposition to appropriate approximately $4 Million in unexpended funds from other school projects to the Seward school. XV. COUNCIL DISCUSSION: SIMUTIS stated that the banners approved under Consent Calendar Item JIb. 7 represented just one of the projects the Seward Enhancerrent Association planned for the surnrrer. She stated that SEA is a very active and productive group. HILTON asked about the status of the Senior /Corrrmmity Center/Museum project. Diener stated that the revised architec- tural drawings had been received on Friday. He stated that he intended to present the proposed acquisition of the old post office property for public hearing on May 23. O'BRIEN requested that the Administration actively pursue abaterrent of public nuisances around town. Schaeferrreyer stated that the city has begun a survey and intended to pursue this irnrediately. GIESELER asked the clerk to schedule a budget VoDrk session for MJnday, May 16, 1988, beginning at 7:30 p.m. He also noted that the Trade Board would be rreeting in a VoDrk session on May 10 beginning at 7:00 a.m. at Ray's Waterfront Restaurant and invited Council to attend. Gieseler stated that he had called a 9:00 a.m., May 11, rreeting of those interested in putting together the festivities for the two visiting U. S. Navy frigates. He also asked Schaeferrreyer to order the num- bered building permits recomrended by Ferguson in the audit report. Finally, Gieseler stated that ARRC personnel VoDuld be in Seward on May 10 to finish the site preparation for the new passenger train depot. XVI. CITIZENS' DISCUSSION: JOHN GlASSER, 405 Fourth Avenue, complained about the lack of street signs throughout the conmunity and asked that the city make this a priority. BOB VAIDATTA, 528 Fifth Avenue, spoke regarding Navy harreporting and asked to be included on any bidder lists the city might have. XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM-1ENTS: O'BRIEN asked for an explanation of the lack of street signs. Schaeferrreyer stated that the weather had not been conducive to installing the signs during the winter. Ho.vever, he assured the Council that the signs VoDuld be ordered and installed prior to July 1. l CSE154841 ] qo vO PAGE 98 REGULAR MEETING - MAY 9, 1988 VOLUME 23 GIESELER inforrred Mr. Valdatta that the city has no bidder list but advertises public bids in the local newspaper. XVIII. ADJOORNMENT : The rreeting was adjourned at 9: 18 p.m. and, after a short recess, the Council reconvened in Executive Session to discuss matters under litigation. / / }' j / , .---/I;~J J tv/c;t'Lr Linda S. rinphy, J City~~~,. A~~ ~~~: :~~;~~. . '1" ~ I ";","'/'\ ..'1"C\" '.. .fi......v " - ".' '1;)', J :, -~- \ " . ;', E :\ L : 0 8 '--.-1 ,_._.tt ,., ft_ . '" "~" fi!J...... ."?- .s .~~~(' 1 '\:......L" CC:".). '.., \.. '?~ '" -'~"1 rf OF' p.\.i'-- ~.e ,&<...4.- Har . Gieseler May PAGE 98 SPEr:IAL MEETING - MAY 16, 1988 VOLUME 23 I. CALL TO ORDER: The May 16, 1988, special rreeting of the Seward City Council was called to order at 6: 37 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Counci1rrember O'Brien led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Hil- ton, ~ehan, Jlbll and O'Brien (Dunham and SimJ.tis were excused) Present also: Interim City Manager Schaeferrreyer, City Attorneys Arvidson and Seedorf, and City Clerk Murphy IV. APPROVAL OF AGENDA: MEEHAN MJVED TO APPROVE THE SPEr:IAL MEETING AGENDA AS PRESENTED; THE MJI'IeN WAS SEr:ONDED BY HILTCN AND CARRIED UNANI- MJUSLY. ( CSE154842 ] I I I C)o ,- ~ PAGE 99 SPEr:IAL MEETING - MAY 16, 1988 VOLUME 23 V. NEW BUSINESS: A. NOLL IDVED TO MEET IN EXECUTIVE SESSION IMMEDI- ATELy FOuruING THE CLOSE OF RffiULAR BUSINESS IN ORDER TO DISCUSS THE SAM'lliAN OJNSTRUCTION CLAIM; THE r'OI'ION WAS SEr:CNDED BY HILTON AND CARRIED UNANIM:XJSLY. VI. CITIZENS' DISCUSSION: None VII. COUNCIL & ADMIN. RESPa'lSE TO CITIZENS' CCM1ENTS: None VIII. ADJOURNMENT: The rreeting was adjourned at 6:40 p.m., and after a short recess, the Council reconvened in executive session in order to discuss the Sanwhan construction claim. ~/: 4<:~d.. Har . Gieseler Mayr SE AL PAGE 99 RffiULAR MEETING - MAY 23, 1988 VOIlJME 23 I. CALL TO ORDER: The May 23, 1988, regular rreeting of the Seward City Council was called to order at 7: 30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM::NY: flag. Counci1rrember Jlbll led the pledge of allegiance to the III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- r :: Sf: 154843 ) 100 CITIZENS' DISC.: (K.Campbell) PAGE 100 RmJLAR MEETING - MAY 23, 1988 VOLUME 23 ham, Hilton, ~ehan, Noll, O'Brien and SimJ.tis Present also: Interim City Manager Schaeferrreyer, Ci- ty Attorney Arvidson, Parks and Recre- ation Director Yanez, Port Marketing Director Gates, Administrative Assis- tant Martin, Finance Director Peirson, Harbormaster Singleton , Administrative Secretary Martin and Acting City Clerk Jones IV. APPROVAL OF MINUTES: HILTON MJVED TO APPROVE THE MAY 9 AND MAY 16, 1988, MINUTES AS WRITTEN; THE MJI'IeN WAS S~ED BY MEEHAN AND CARRIED UNANIMJUSLY. V. APPROVAL OF RmJLAR MEETING AGENDA: Schaeferrreyer requested the addition of Agenda Item XI (C) (12) - prOI.XJsed Resolution JIb. 88-070, authorizing the purchase of a crane for the Harbor Departrrent and appropriating funds. HILTCN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MJTION WAS SEr:CNDED BY DUNHAM AND CARRIED UNANI- MJUSLY. VI. BOROUGH ASSEMBLY REPORl': Kenai Peninsula Borough Assembly Representative Jonathan Sewall was not present; he arrived later in the rreeting and gave his report at that tirre. [SEE PAGE 104.] VII. CITIZENS' COMMENTS ON AGENDA ITEMS Nor SCHEDULED FOR PUBLIC HEARING: KEITH CAMPBELL, 1910 Forget-~-Jlbt Circle, spoke regarding legislative action on hospital liability and funding for the Seward Elerrentary School. He was opposed to local funding of the school and stated that it is the responsibility of the Kenai Peninsula Borough and the School Board to carre up with a funding plan. VIII. APPROVAL OF CONSENT CALENDAR: Schaeferrreyer requested the addition of tv.D items to the consent calendar as follows: #11 - May 23, 1988, rrerrorandum requesting approval of assignrrent of lease for security purposes to National Bank of Alaska (Lorz Lease - Lot 5, Block 1, Marina SUbdivision); and #12 - May 23, 1988, rrerrorandum requesting approval of a sublease of a portion of Lot 2, Block 1, Marina Subdivision (Dale Clemens to Ludwig Pfleger). ( CSE 154844 1 I I I PAGE 101 REGULAR MEETING - MAY 23, 1988 VOLUME 23 AMENDED; MJUSLY. SIMJTIS MJIJED TO APPROVE THE CONSENT CALENDAR AS THE MJTlOO WAS SECONDED BY MEEHAN AND CARRIED UNANI- The following actions were taken: 1. Resolution JIb. 88-058, authorizing the purchase of a brake lathe for the City Shop without full utilization of city bid procedures, was approved and filed; 2. Resolution JIb. 88-063, authorizing signatures for the city bank account and rescinding all previous resolutions in conflict herewith, was approved and filed; 3. Resolution No. 88-064, in honor of the twenty- fifth anniversary of the State Marine Highway System with special recognition of the M/V Tusturrena, was approved and filed; 101 PURCHASING/RESO: FINANCE/RESO: ALASKA, STATE OFf RESO: (Ferry) 4. May 10, 1988, invoice from Vbhlforth, Flint & C. ATTY: Gruening for legal services totalling $573.00 was approved for payrrent and filed; 5. Invoices from HTGP&B for legal servlces as C. ATTY: follows were approved for payrrent and filed: November 1987 - $11,524.34 December 1987 - $23,027.37 January 1988 - $14,953.37 February 1988 - $27,553.09 March 1988 - $34,817.28 6. May 5, 1988, Finance Departrrent's list of ac- counts payable totalling $444,699.93, was approved for payrrent and filed; 7. Defense Agreerrent between the city and the state of Alaska relating to construction claims seeking recovery for alleged claims involved in the construction of the Spring Creek Correctional Facility was approved and filed; 8. May 11, 1988, rrerrorandum from Manager of Engi- neering & utilities E. Paul Diener concerning continued mainte- nance of the fence gates and signing at the Lowell Tunnel entrance was approved and filed; 9. May 16, 1988, rrerrorandum from Finance Director Robert Peirson requesting approval of AIrendirent JIb. 1 to the Seward Carrpground Managerrent Contract, eliminating the Fourth of July campground frcrn the list of designated carrpgrounds, was approved and filed; ACCOUNTS PAYABLE: LITIGATION/CON- ILl"! FLOOD CONTROL: (Lowell Tunnel) CON- -z:z.3: 10. Proclamation designating June 16, 1988, as PROCLAMATION: "U.S.S. ALASKA DAY" was noted for information and filed; ( CSE 1",,, J ~,C2 RE-~;~3: RE- ~XfS PUBLIC HEARING: (Budget) PUBLIC HEARING: (CACI Lease) PUBLIC HEARING: (Com. Center Purchase) PUBLIC HEARING: (Cablevision lease) PUBLIC HEARING: (Gateway Sub.) PAGE 102 RffiULAR MEETING - MAY 23, 1988 VOLUME 23 11. May 23, 1988, rrerrorandum frcrn Administrative Assistant Kerry Martin requesting approval of assignment of lease for security purposes to National Bank of Alaska (Lorz Lease - Lot 5, BLock 1, Marina Subdivision), was approved and filed; and 12. May 23, 1988, rrerrorandum from Martin requesting approval to sublease a portion of Lot 2, Block 1, Marina Subdi- vision, (Dale Clemens to Ludwig Pfleger) was approved and filed. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed Fiscal Year 1989 city general fund and enterprise operating budgets was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. B. Notice of public hearing as posted and published as required by law regarding proposed lease of approximately 5.0 acres directly adjacent to the east of Chugach Alaska Corporation's current leased lands wi thin the Industrial Zone at Mile 4.75, Nash Road, to Chugach Alaska Corporation was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Notice of public hearing as posted and published as required by law regarding the proposed acquisition of real property frcrn Esther Werner for the purposes of housing the proposed Senior/Cormnmity Center/Museum, the real property being nore particularly described as the Jlbrth 20 feet of Lot 36 and all of Lots 37, 38 and 39, Block 15, Original 'lbwnsite of Seward (336 Third Avenue), was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. D. Jlbtice of public hearing as posted and published as required by law regarding the proposed lease of a :t1, 500 square foot parcel of unsurveyed land in the Seward Marine Industrial Center at Mile 5.1, Nash Road, to Seward Cablevision for the installation of a satellite receiving dish to receive and distribute cable television to the Spring Creek Correctional Center was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. E. Notice of public hearing as posted and published as required by law regarding the proposed sale of Lots 4-5, 7-13, 15-22, and 24-26, Block 1; Lots 1-4, 7-16, and 19, Block 2; and Lots 5 and 6, Block 6, Gateway Subdivision, to Clint Hall, dba Hall Quality Builders, was noted and the public hearing was opened. CLINT D. HALL, dba Hall Quality Builders, Kenai, Alaska, addressed the Council and displayed photographs of horres ( C SE 1')4846 ) I I I " (\~ ',' . PAGE 103 REGULAR MEETING - MAY 23, 1988 VOLUME 23 he has constructed in the past. He proposed building horres in Gateway Subdivision which would give a look of uniformity to the neighborhood. The average price of a horre VoDuld be approximately $80,000, with an average living area of 1,100- 1,200 square feet. He stated that nost of the horres VoDuld be 3-bedroom, I-bath, with an attached garage and paved driveway. Hall noted that he had been designated "Builder of the Year" on the Kenai Peninsula and in the state of Alaska in 1986 and 1987. He stated that the horres VoDuld qualify for FHA financing. He added that he would warrant his harres against any defect caused by negligence of the builder. JOHN GILLESPIE, 604 Fifth Avenue, Seward, SI.XJke in opposition to the way this agreerrent had carre about. He briefly outlined the history of develor;rrent of the subdivision, includ- ing his role as a principal in Gateway Ventures, developers of the subdivision. He stated that he had been led to believe that the local contractors and citizens VoDuld have an opportunity to bid on this property. He objected to sole-sourcing the property at $0.50 on the dollar to Hall. No one else appeared in order to be heard and the public hearing was closed. F. Notice of public hearing as posted and published as required by law regarding proposed lease of a one-acre parcel located 100 feet to the east of the city substation property line wi thin the Industrial Zone wi thin the Fourth of July Creek Industrial Area (USS 4828) to Shoreside Petroleum was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. GIESELER NCYI'ED THAT, DUE TO AN ERROR IN THE PUBLISHED LEGAL DESCRIPTION, AN ADDITIONAL PUBLIC HEARING mULD BE CON- DUCTED AT THE JUNE 13, 1988, MEETING. X. PRESENTATIONS WITH PRIOR NanCE ONLY: A. JURIS MENDENBERGS, Breeze Inn MJtel, and FRANK CITIZENS' DISC.: DIECKGRAEFF, 219 Marathon Drive, presented a proposal to pur- chase certain lots wi thin the Gateway Subdivision from the city of Seward. Mindenbergs read the proposal aloud and distributed a copy to each Councilmember. In response to a question from Hilton, Mindenbergs stated that the developed properties VoDuld be listed both locally and with a multiple listing service. He further stated that the offer was being made at this tirre because of the proposal before Council for action at this rreeting; however, no tirre limit had been placed on this proposal. He stated that the houses constructed under this proposal VoDuld be priced at $80,000 to $100,000. ( CSEl54841 1 , c,J1 "~:' .J_ ) .J". FOURTH OF JULY IND. AREA/RE- /RESO: PAGE 104 REGULAR MEETING - MAY 23, 1988 VOLUME 23 Gieseler stated that both firms (MINDENBERGS/DIEX::K- GRAEFF and HALL QUALITY BUILDERS) were well qualified and suggested that the city negotiate with both. NOl'E: Gieseler called for a short recess at the request of Acting City Clerk Jones so that she could attend to a family errergency. The rreeting was REr:ESSED at 8:08 p.m. and RECawENED at 8: 18 p.m. with Administrative Secretary Annie Martin sitting in for Jones. In resI.XJnse to a concern expressed by Sinutis that the the city's best interest VoDuld be served by irrrrediate develop- rrent of the property, Dieckgraeff assured the Council that their intention was to cormence construction as soon as I.XJssible. VI. BOROUGH ASSEMBLY REPORT: [TAKEN OUT OF ORDER] Kenai Peninsula Borough Asserrbly Representative Sewall a=ived at this tirre and presented his report. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REGARDING THE SALE OF ALCOHOLIC BEVERAGES, AMENDING SEX:TICN 3-8 OF THE SEWARD CITY CODE. HILTON MJVED TO INTRODUCE ORDINANCE NO. 605; THE MJI'ICN WAS SEr:CNDED BY SIMUTIS AND CARRIED WITH SIX "YES" VOTES AND GIESELER VOTING "NO". B. Ordinances for Public Hearing and Enactrrent: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE AGREE- MENT WITH CHUGACH ALASKA CORPORATION, INC. I MEEHAN MJ\lED TO APPROVE RESOLUTICN NO. 88-050; THE MJI'ICN WAS SECCNDED BY DUNHAM AND CARRIED UNANIMJUSLY. ( CSE154848 1 I I I PAGE 105 REGULAR MEETING - MAY 23, 1988 VOWME 23 2. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING ELECI'RIC RATES BY REDUCING THE CUS'KMER CHARGE FOR ALL LEVElS OF SERVICE. O'BRIEN IDVED TO APPROVE RESOLUTICN NO. 88-057; THE MJI'ICN WAS SEOJNDED BY MEEHAN. ~ehan and 0' Brien spoke in SUpI.XJrt of the reduction in custorrer charges. ~ehan suggested cutting back on other expenditures to offset the small decrease in revenue aITOunting to less than one percent (1%) of the budget. Gieseler stated that the utility had experienced extraordinary other costs this fiscal year including approxi- mately $115,000 required to settle the Lakey arbitration. In addition, he stated that cutting custorrer charges VoDuld send the wrong rressage to the state when the city requests funding for upgrading the transmission line. ~han stated that the projected I.XJWer consurrption increase of nine percent (9%) over the next few years VoDuld offset this reduction. In response to a question from Gieseler, Schaeferrreyer stated that he did not foresee the city purchasing power from the Chugach Alaska co-generation plant or CAe purchasing I.XJWer fran the city. He added that the utility will need to make major irtprovements and updates in the next five years. In response to further questions from Gieseler, Schaeferrreyer stated that it will becorre increasingly difficult for Seward to tap any rroney fran the state, including the Railbelt Energy Fund. He noted that future rronies received will probably be in the form of a low interest loan rather than a grant and may result in an increase of electric rates of $0.05 - $0.06 per kw. In addition, Chugach Electric is currently considering a rate increase to offset rising gas rates. Simutis objected to the decrease, stating that rates VoDuld likely increase again in the near future as expenses to the utility rise. In resp:mse to a question from Jlbll, Gates stated that CAe planned to have its co-generation plant on line as soon as possible and, in the rreantirre, would depend on diesel generation to rreet its power needs. Gates stated that all permits for the plant except the Coastal Zone Consistency Permit have been obtained. Noll spoke in support of the proposed resolution. ~ A.-r- ,_\,,-:) ELEC.DEPT/RESO: (Rate reduction) (CSE154849 1 ~ AI" _,'~ IJ FOURTH OF JULY IND.AREA/RE-D07/ RESO: OTS/RE- / COM.CENTER/RESO: PAGE 106 REGUlAR MEETING - MAY 23, 1988 VOLUME 23 THE QUESTICN WAS CALLED AND THE MJI'ICN CARRIED WITH FIVE "YES" VarES AND GIESELER AND SIMUTIS VOTING "NO". 3. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE OF CITY-cmNED PROPERTY TO SEWARD CABLEVISION. HILTON MJ\1ED TO APPROVE RESOLUTICN NO. 88-059; THE IDTICN WAS SECONDED BY NOLL AND CARRIED UNANIMJUSLY. 4. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed resolution A RESOWTICN OF THE CITY COUNCIL OF 'IRE CITY OF SEWARD, ALASKA, AUTHORIZING THE PURCHASE OF PROPERTY FOR LOCATICN OF A SENIOR/CCM- MUNITY CENTER/MUSEUM. Gieseler allowed BFA DAVIS, 505 Third Avenue, to comrent. She stated that the Seniors did not want the IlUlseum combined with the Senior center. Gieseler responded by noting that the project was bonded as a combined project. Schaefer- rreyer stated that the entire process had been discussed with the Senior Citizens Board and the Museum Board from the beginning, including VoDrk on the design. During the planning phase, no one had spoken against including the IlUlseum in the facility. HILTON IDVED TO APPROVE RESOLUTICN NO. 88-060; THE MJI'ION WAS SEr:CNDED BY DUNHAM. Ms. Davis stated that the Seniors did not want a combined facility, but no one had listened to their conplaints. Dunham noted that there had been plenty of opportunity to corment, including a public hearing earlier in this rreeting at which no one had carre forward to speak. In response to a question from Jlbll concerning funding sources for the project, Schaeferrreyer listed the various grants and bonds available for the project. JUDY MARrIN, Executive Director of the Senior Center, stated that she had acted as a consultant throughout the process and had reported to the Senior Citizens' Board of Directors on a rronthly basis. She stated that only a feN individuals had expressed opposition to the IlUlseum being housed with the COIm1l1- ni ty center. She noted sorre questions as to handicap accessibility to the Third Floor and a tripling of liability insurance costs; however, the majority of the Seniors favor the proposal before Council at this tirre. , (CSE154850 ] I I I .... t'"\~ ;' I PAGE 107 REGULAR MEETING - MAY 23, 1988 VOLUME 23 THE QUESTION WAS CALLED AND THE MJTION TO APPROVE RESOLUTICN NO. 88-060 CARRIED UNANIMXJSLY. 5. Copies having been made available to the GATEWAY SUB/RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SALE OF CERI'AIN GATEWAY SUBDIVISION wrs TO CLINT D. HALL. SIMUTIS IDVED TO APPROVE RESOLUTICN NO. 88-061; THE MJI'ICN WAS SEr:CNDED BY HILTON. Gieseler stated that he VoDuld like to see the city VoDrk with both developers (Hall and METCO/MINDENBERGS, JV) and asked the Administration if it would be possible for the two to negotiate a VoDrkable solution. Schaeferrreyer stated that this might be possible. In response to earlier allegations that the city had violated the Code or Charter in its handling of the proposed agreerrent with Hall, Schaeferrreyer stated that the proposal frau Hall was unsolicited by the city and had been developed since that tirre on the part of the city strictly in accordance with standard city procedures. NaI'E: Jones returned and resurred her I.XJsition as Acting City Clerk. In response to a question from Gieseler, Hilton reported on past rreetings of the city with Alliance Bank and Gateway Ventures. He stated that the city had worked to retain an interest in the subdivision following default by Gateway Ventures. He added that the city's goal had been to find a buyer to purchase and develop the entire subdivision in order to bring rrore horre-buyers into the city limits. In addition, the sooner the property was purchased by a private developer, the sconer the city VoDuld be relieved of the obligation of making interest payrrents to Alliance Bank. Hilton stated that dispos- ing of the property through a formal RFP process would be fair, but VoDuld take tirre. SimJ.tis suggested that the city "get out of the real estate business" and VoDrk out sorrething with both proposers. Dunham expressed concern about the undeveloped lots which would not be sold to either developer. 0' Brien stated that the entire subdivision should be sold and the bank paid off. ~han stated that the Hall proposal was an excellent one. He suggested postponement until the next rreeting with a VoDrk session to further study both proposals. Jlbll concurred. ( CSE154851 1 ~ AQ __ v l._? FOURTH OF JULY IND. AREA/ RE-,; Ou'f /RESO: BUDGET (Gen.Fund)/ RESO: PAGE 108 REGULAR MEETING - MAY 23, 1988 VOWME 23 GIESELER MOVED TO POSTPONE ACTICN ON RESOWI'ICN NO. 88-061 FOR THREE DAYS; THE IDI'ION WAS SEr:ONDED BY SIMlJI'IS AND CARRIED UNANIM:XJSLY. Gieseler instructed the Acting Clerk to schedule a special rreeting for Thursday, May 26, 1988, beginning at 7: 30 p.m., to discuss further Gateway Subdivision negotiations and to consider action on proposed Resolution JIb. 88...,061. 6. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOWI'ION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE LEASE OF CITY-~ PROPERrY TO SHORES IDE PETROLEUM, INC. HILTON MJVED TO APPROVE RESOLUTICN NO. 88-062 SUBJEX::T TO POSSIBLE RECONSIDERATION AT THE JUNE 13, 1988, REGULAR MEETING FO:LI.aVING PUBLICATION OF A CORRFrI'ED PUBLIC HEARING NarlCE BEARING THE PROPER LEX;AL DESCRIPTICN AND CClIDUCT OF A PUBLIC HEARING; THE MJTION WAS SECCNDED BY SIMUI'IS AND CARRIED UNANIM:XJSLY. Gieseler thanked Ms. Martin for sitting in for Jones during her absence from the rreeting. 7. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOWI'ICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE CITY OPERAT- ING BUDGET FOR THE FISCAL YEAR BEX;INNING JULY 1, 1988. MEEHAN MJVED TO APPROVE RESOWI'ICN NO. 88-065; THE MJI'ICN WAS SECCNDED BY SIMUTIS. 0' BRIEN MJVED TO AMEND THE GENERAL FUND EXPENSE BUDGET BY $62,000, SETTING THE MIL RATE AT 2.5 MILS; THE MJI'ION WAS SEr:ONDED BY MEEHAN. Dunham, Gieseler and Hilton spoke in opposition to the arrendrrent. THE QUESTION WAS CALLED ON THE AMENDMENT AND THE MOrION FAILED WITH SIX "NO" VOTES AND O'BRIEN VarING "YES". '!HE QUESTION WAS CALLED ON THE MAIN IDI'ICN AND THE MJI'ICN CARRIED BY UNANIMOUS VOI'E OF COUNCIL. (CSE154852 ) I I I ~ 0<~ ._ U j PAGE 109 REGUIAR MEETING - MAY 23, 1988 VOLUME 23 8. Copies having been made available to the BUDGET / RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF WE CITY OF SEWARD, AIASKA, ADOPTING THE HARBOR ENTERPRISE Bmx;ET FOR THE FISCAL YEAR BffiINNING JULY 1, 1988. SIMUTIS MJVED TO APPROVE RESOLUTICN NO. 88-066; THE MJI'ION WAS SEr:CNDED BY NOLL AND CARRIED UNANIM:XJSLY. 9. Copies having been made available to the BUDGET/RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ADOPTING THE ELEX:TRIC ENTERPRISE BUDGET FOR THE FISCAL YEAR BffiINNING JULY 1, 1988. MEEHAN IDVED TO APPROVE RESOLUTICN NO. 88-067; THE MJI'ION WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIM)USLY. 10. Copies having been made available to the BUDGET/RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ADOPTING THE WATER AND SEWER FUND ENTERPRISE BUDGET FOR THE FISCAL YEAR BffiINNING JULY 1, 1988. NOLL MJVED TO APPROVE RESOLUTICN NO. 88-068; THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIM:XJSLY. 11. Copies having been made available to the BUDGET/RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ADOPTING THE FISCAL YEAR 1989 Bmx;ET FOR SEWARD GENERAL HOSPITAL AND APPROPRIATING $250,000 OF LOCAL SUPPORT. MEEHAN MJVED TO APPROVE RESOLUTICN NO. 88-069; THE MJI'ION WAS SEr:CNDED BY SIMUTIS AND CARRIED UNANIMOUSLY. (Giese- ler ruled that Hilton's I.XJsition as an enployee of SGH did not constitute a conflict of interest.) 12. Copies having been made available to the public, Gieseler noted by ti tIe only a proposed resolution entitled: ( CSE154853 ) .... ""'" i"" PAGE 110 REGULAR MEETING - MAY 23, 1988 VOWME 23 PURCHASING/RESO: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE PUROfASE OF A CRANE FOR THE HARBOR DEPARl'MENI' AND APPROPRIATING FUNDS. SIMUTIS IDVED TO APPROVE RESOLUTICN NO. 88-070; THE MJI'ION WAS SEr:CNDED BY HILTON AND CARRIED UNANIM:XJSLY. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: CLAIMS FOR DM".AGES: A. GIESELER MJVED TO APPROVE A CLAIM FOR DAMAGES (Keegan claim TOTALLING $108 AS FILED BY CHERYL KEEGAN; THE MJI'ICN WAS SECOND- DENIED) ED BY SIMUTIS AND FAILED TO CARRY WITH ALL PRESENT VOTING "NO". XIV. CITY MANAGER REPORTS: SCHAEFERMEYER thanked the Council and staff for their support during his term as interim city manager. He stated that the transition had VoDrked well and that Rodger L. Bennett was due to begin work on June 6. SCHAEFERMEYER also corrrrented that the city's goal remains to achieve construction of a new elerrentary school. He noted that, if a proposition regarding a new school for Seward is to appear on the October ballot, the measure ITUst be in- troduced before the Assembly prior to June 21. Schaeferrreyer stated that legislative remedies have now been exhausted, and an all out effort will be needed to nove forward. He warned that success VoDuld depend on lobbying by the Council, the Parent Advisory Corrmittee, school administrators and area parents to convince the school board, borough assembly and voters of the need for the school. XV. COUNCIL DISCUSSION: NOLL stated that the Legislature had passed the Governor' s bill regarding the Alaska Science and Technology Foundation, with $6 Million appropriated to begin the Founda- tion. He stated that the noney VoDuld be distributed in the form of grants by an appointed Board of Directors. He urged anyone with good ideas to apply for a grant through the Foundation. HILTON inquired about the status of the l.cMell Tunnel repair. Schaeferrreyer responded that the patching was crnplete and an information rrerrorandum would be forthcoming from Diener. MEEHAN complirrented Schaeferrreyer on the great job he had done as Interim City Manager. He complimented departrrent heads and enployees on keeping costs down with the new budget. ( CSE154854 1 I I I .. ., 1 PAGE 111 REGULAR MEETING - MAY 23, 1988 VOLUME 23 DUNHAM agreed that a great deal of effort needed to be put forth to secure funding for a new school. She suggested that local parents and others in the corrmunity put together a task force. GIESELER thanked Schaeferrreyer for the excellent and professional job he had done and corrrrended him on being a stabilizing factor during the transition. He also stated that the Spring clean-up effort was a success and suggested abatement of desolate buildings and vehicles to further the clean-up effort. He noted that the U. S. Navy would be in town June 1-3, and he invited the conmmity to a cocktail party and presenta- tion to the Naval officers scheduled for June 1. Gieseler stated that he had spoken to Mr. Bennett and had been told that he VoDuld be leaving for Seward shortly. Gieseler also endorsed a concentrated effort to acquire funding for the new school. XVI. CITIZENS I DISCUSSION: WILLARD DUNHAM, Diarrond and Alder, stated that the accusations leveled at the administration earlier in the evening were unfounded. He personally comrrended Schaeferrreyer for his outstanding performance and achievement, stating that he always VoDrked in the best interest of the city. He stated that the city was extrerrely fortunate to have such a dedicated person on staff. XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: NOLL noted that Bob Valdatta was absent from the rreeting and asked that he be inforrred about the Science and Technology Foundation. XVIII. ADJOURNMENT: The rreeting was adjourned at 10: 10 p.m. Q~~.~~ Patricia J. Jones Acting City Clerk ~~~ ry, Gieseler Mayor ..' f;.J...J."':".! .~- ~ ~ '..., ~y <Seal) Vi, '", '.-\)' ;,' . >",4 "': ,1/.' ~ y,},~'J;:' ",,' " . /,:; '.-'. .', ",.,,, ' "'4".6 \ .1', ,," $' "\' !f() ,'J '~, ~ .,>' .:i.l~ \" :tl ", .. , I P ~ '\~ <' ~~: " C.J ; .t , <.~. ...ut._ J. c.: ,{' , ..... ~....., " ,. ~'. '. i!\'UL' , ."" '. \ /: .1\ ".~"', 'c\ ,','-.,' V)_ ',.",' ~ - 0' ( 0~t f or.' ~,~\" ,', '-t<l?:aY":')"7'J1]J1... . ( C SE 154855 1 .,. -.~ h _,.~, CITIENS' DISC: (J. Gillespie - Gateway Sub) CITIZENS' DISC: (Clint Hall - Gateway Sub) PAGE 112 SPEr:IAL MEETING - MAY 26, 1988 VOWME 23 I. CALL TO ORDER: The May 26, 1988, special meeting of the Seward City Council was called to order at 7: 32 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: the flag. Counci1rrember SimJ.tis led the pledge of allegiance to III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, ~, O'Brien, Jlbll and SimJ.tis Present also: Interim City Manager Schaeferrreyer, Ad- ministrative Assistant Martin and Administrative Secretary Martin IV. APPROVAL OF AGENDA: Gieseler requested that the agenda be arrended by including "Citizens' Corments on Agenda Items Jlbt Scheduled for Public Hearing". SIMUTIS IDVED TO APPROVE THE AGENDA AS AMENDED; THE MJI'ICN WAS SECCNDED BY DUNHAM AND CARRIED UNANn-DUSLY. V. CITIZENS' CCMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: JOHN GILLESPIE, 604 Fifth Avenue, Seward, restated his feelings concerning the Gateway Subdivision disposal. He stated that his objection was to the way the sale was being accom- plished. Gillespie noted that "our goals are the sarre - afford- able housing". He cbjected to selling the lots at less than appraised value and accused the city of "dabbling in free enterprise" . Gillespie further objected to accepting a "no- down" offer for the property, stating that a cash buyer VoDuld not speculate on the property. He also expressed his concern that subsidized housing VoDuld severely inpact the real estate market. He suggested that the city have one lot appraised to determine the value of the subdivision. CLINT D. HALL, Kenai, stated that the lots are not currently worth $30,000. He stated that Gateway went into default because the lots were over valued. He said that it was unfortunate that the smaller lots were located at the front of the subdivision, and he noted that whoever builds there will need to be creative to keep from adversely affecting the value of the subdivision. He stated that the Council would have an ( CSE154856 1 I I I .... ""!I ~ - --..} PAGE 113 SPEr:IAL MEETING - MAY 26, 1988 VOLUME 23 opportunity to view the houses as they are constructed and can stop the developrrent if not satisfied. VI. ORDINANCES AND RESOLUTIONS: A. Resolutions: SEE UNFINISHED BUSINESS: VII. UNFINISHED BUSINESS: A. Gieseler stated that there was a notion on the GATEWAY SUB/RESO: floor to approve Resolution JIb. 88-061 and opened the floor for discussion. Schaeferrreyer stated that the administration had !lEt with both proposers and had negotiated agreements with the tv.D which would give Hall an option on all lots in Block 2 east of Dora Avenue (23 lots) and Mindenbergs/Dieckgraeff an option on lots located west of Dora Avenue (22 lots). The agreerrents VoDuld contain the sarre terms and conditions. He stated that the Mindenbergs/Dieckgraeff agreement VoDuld be scheduled for public hearing and action on June 13. He noted that the agreement before Council at this tirre had been arrended to include only those lots included for public hearing on May 23 and to elimi- nate the second optional extension period because of the reduced number of lots, allowing Hall to complete developrrent by March 31, 1989. He added that the six lots not covered in the May 23 public hearing VoDuld be the subject of public hearing on June 13, followed by a lease addendum for action by the Council. Schaeferrreyer recomrended approval of the arrended agreement before the Council. MEEHAN MJVED TO AMEND THE RESOLUTION TO REFLECI' 17 rms AS NOI'ED BY SCHAEFERMEYER; THE MJI'ION WAS SEr:ONDED BY DUNHAM AND CARRIED UNANIMJUSLY. In response to a question from SimJ.tis, Schaeferrreyer stated that there was no need for a default clause since the Council has been given the option of terminating the agreerrent for any reason. In addition, if the houses do not sell, the city could sue for specific performance and carpel the builder to "cash out" city for the lots on which horres have been built. Schaeferrreyer stated that the city VoDuld be filing a "Jlbtice of Jlbnresponsibility" to prohibit the builder from filing any liens against the property. He noted the specific clause in the agreerrent disallowing subordination of the proper- ty. He added that liens could be filed against the property only if the builder "cashed out" the city and a<XjUired title to it (the property). In response to Hilton's concern that local suppliers and construction VoDrkers VoDuld have no recourse as long as the title to the property rested with the city, Schaef- errreyer stated that the city could require the contractor to post a performance and payrrent bond, but the cost of that bond could put the entire project out of the realm of possibility. ( CSE154857 ) ~ ~ t, CITY MANAGER: (Priorities for New Manager) PAGE 114 SPEr:IAL MEETING - MAY 26, 1988 VOLUME 23 Hilton responded that this would be preferable to seeing half a dozen Seward residents "on the hook" for materials or labor with no way to collect their noney. Hall stated that he VoDuld object to a requirerrent that he provide a full performance and payrrent bond. He stated that the bank has conducted a full credit search as VoDuld any supplier who advanced materials on credit. He added that he objected to the Council trying to regulate free enterprise. Hilton resI.XJnded that the city had an obligation to try to protect the citizens of the carmunity. In response to a question from Gieseler, Schaeferrreyer stated that such a bond had not been required of Chugach Alaska Corporation. In answer to a question from Hilton about the effect of selling lots bela.v market value on the tax base of the cornmmity, Schaeferrreyer stated that the addition of new horres on the tax roles VoDuld nore than offset any tax assessment adjustrrents. ~han, Dunham and O'Brien agreed that Hall's proposal was a good one and expressed their support for VoDrking with both developers. 0' Brien objected, however, to selling publicly- owned property at below market. Jlbll stated that he shared sorre of the sarre concerns as O'Brien and Gillespie. Gieseler stated that the lots were over valued at $30,000, and in actuality, the city was not selling that much below actual value. He added that the city has leased property in the past at rates substantially below market value in order to encourage business developrent. He stated that he favored giving both developers an opportunity to build in Gateway Subdivision. THE QUESTION WAS CALLED AND THE MJTION TO APPROVE RESOLUTION NO. 88-061 CARRIED WITH FIVE "YES" VOI'ES AND HILTON AND 0' BRIEN VOTING "NO". VIII. NEW BUSINESS: A. Schaeferrreyer stated that METCO/TREND, JV (Min- denbergs and Dieckgraeff) were agreeable to the sarre terms and conditions as those Council had approved for Hall. Dieckgraeff stated that he would like to option the ten larger lots as well, with a stipulation that, should an individual wish to purchase one, he VoDuld relinquish his option on that particular lot so that it would be available to that person. B. COUNCIL PRIORITIES/DIRECrICN FOR NEW CITY MANAGER O'BRIEN stated that he VoDuld like to see the city change its orientation SOffiE!\<\1hat and consolidate its position rather than continuing expansion efforts. DUNHAM stated that she VoDuld like the city to direct its energies toward expansion of SMIC, including developrrent of ( CSE154858 1 , I I ::--:c; '. " PAGE 115 SPEr:IAL MEETING - MAY 26, 1988 VOLUME 23 support industries and cradles. She also stated that she would like to hold the line on growth of the city government by streamlining and holding the line on errployees. She also stated that she VoDuld like the new city manager to work with IMS and Jlbll to encourage growth in the scientific conmunity. MEEHAN stated that the new manager should beccme familiar with the city's legislative priority list and should develop creative ideas for financing the new school, hospital and IMS/Ferry Dock. He also stated that downtown enhancement was irrportant. HILTON stated that the new manager should assess where we are and what we have "in the VoDrks" and give sarre direction to Council on what should be aggressively pursued. He added that the manager should "ride herd" on the Finance Departrrent. SIMUTIS stated that the manager should determine what the city can do to VoDrk with the Enhancerrent Program to accom- plish goals set forth through the Hyett-Palrra study. She stated that paying attention to already established businesses is critical. She also stressed a need to pursue upgrade of the power line and quality of life issues. NOLL stated that the manager should do what he can to ensure completion of the new timber mil1 and should give Schaef- errreyer a vacation. GIESELER stated that he had five priorities: 1) planned growth; 2) comprehensive planning; 3) port develop- ment; 4) pro-business develoJ:XlEnt; and 5) preservation of quality neighborhcods. IX. CITIZENS' DISCUSSION: JOHN GILLESPIE, 604 Fifth Avenue, Seward, stated that the public did not get a fair chance to bid on or purchase property in Gateway Subdivision. He further stated that the city tries to run itself as a business and should, therefore, accept the highest cash bid for the property rather than a low bid based on a promise to pay after a house has sold. X. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: SIMUTIS stated that she shared sarre of Gillespie's concerns; however, since the property had been overvalued to start with, the city was not receiving only $0.50 on the dollar. She stated that the city was responsible for the subdivision and she preferred a planned developrrent rather than auctioning individual lots. She added that she felt the agreements with Hall and ME'Iro/TREND were the best way currently for the city to get out of the real estate business. ( CSE 154859 1 ~ -: r-. ~,J, f) t~.u, c,<.:' ,_ t:{0't1 Jt Sf VI'4 ' .. .' "' "^ " ,,,""",,0 'r^ ( ...., tC' '~t)!.~ .~J C..; ~>J _. ~ "<# .... __ l;;, F t\L : ..: ~...... : . . -.- ~ c. "" " S:" .: ~,,' "~I\'.r 1 '\.~/*'~ ."!)- ,.",..~., ~ Y~lOF ,,\.~ PAGE 116 SPEr:IAL MEETING - MAY 26, 1988 VOLUME 23 DUNHAM concurred. She stated that other businesses had received sarre public opposition when they first moved to Seward, including Seward Fisheries. However, Seward Fisheries was a prirre exanple of a corrpany which had done a lot of good for the corrmunity. She added that the city gave away a lot to lure AvrEX: to the corrmunity and, in the long run, this had been a good business decision. GIESELER stated that he had been afraid the city VoDuld lose all its options on the Gateway Subdivision property. He stated that, with this decision, the city would still be able to direct what is best for the comnunity. XI. ADJOURNMENT: The rreeting was adjourned at 9: 18 p.m. ~e.~ Har . Gieseler Mayor SPEr:IAL MEETING - JUNE 9, 1988 VOLUME 23 I. CALL TO ORDER: The June 9, 1988, special rreeting of the Seward City Council was called to order at 12:20 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM:>NY: Counci1rrember SimJ.tis led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, Jlbll, O'Brien and SimJ.tis (~ehan was excused.) Present also: Interim City Manager Schaeferrreyer, Ci- ty Attorney Arvidson and City Clerk Murphy IV. APPROVAL OF SPEr:IAL MEETING AGENDA: HIL'roN IDVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MJI'ICN WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANIMJUSLY. ( CSE1548bO 1 117 PAGE 11 7 SPEr:IAL MEETING - JUNE 9, 1988 VOLUME 23 I V. NEW BUSINESS: A. Gieseler inforrred the Council that he had learned that Fodger Bennett had not yet formally resigned his position as City Manager of Casa Grande, Arizona. He briefly outlined the events leading to his discovery, including several telephone calls to and from Mayor Kerr of Casa Grande and telephone conversations with Mr. Bennett. CITY MANAGER: Arvidson distributed a rrerrorandum outlining the chronology of events beginning with the city's offer of errployment to Bennett until today' s special rreeting. He stated that he was concerned that the city may have an errployrrent agreement in force with Bennett even though that agreement is unsigned. He noted that part of the original agreerrent with Bennett had been an understanding that he VoDuld begin VoDrk on June 6; however, prior to that date, Bennett had asked for and received an extension until June 27. Arvidson reminded Council that the agreerrent with Bennett required 90 days' notice of termination; however, the Council might contend that the city had been misled by Bennett and his failure to give notice to his errployer in Casa Grande might be viewed as evidence of his bad faith dealings with the city of Seward. I SIMUTIS IDVED TO DIREr:T THE CITY ATTORNEY TO DRAFT A LETTER TO TERMINATE THE ANTICIPATED EMPLOYMENT AGREEMENI' WITH BENNETT FOR THE POSITION OF CITY MANAGER; THE MJTION WAS SECOND- ED BY NOLL AND CARRIED UNANIM:XJSLY. B. O'BRIEN MJVED TO AUTHORIZE THE CITY CLERK TO CITY MANAGER: READVERI'ISE THE CITY MANAGER POSITION; THE MJI'ICN WAS SEr:ONDED BY HILTON AND CARRIED UNANIMJUSLY. Mu:rphy was instructed to close applications on July 15. VI. CITIZENS' DISCUSSION: Jlbne VII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: SCHAEFERMEYER stated that he had learned that the Chamber of Corrmerce VoDuld not fund a fireworks display this July 4. Skip Rierson had offered to generate local contributions for one-half the $4200 needed for the display if Council VoDuld fund the other one-half. It was a consensus of the Council not to fund the fireworks display with public funds. VIII. ADJOURNMENT: The rreeting was adjourned at 1:09 p.m. I ~D a c_- k~~.,.4 Harry Gieseler Mayo -"'.,.. r CSE154861 1 ":~#j(,; '€ '~, . ~', '.. ~ -. " . ~.. 8 __ .t. ~ PAGE 118 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 I. CALL TO ORDER: The June 13, 1988, regular rreeting of the Seward City Council was called to order at 7: 30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM:lNY: Counci1rrember Hilton led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Counci1rrembers Dun- ham, Hilton, ~ehan, Jlbll and SimJ.tis (0' Brien was excused.) Present also: Interim City Manager Schaeferrreyer, Ci- ty Attorney Arvidson , Administrative Assistant Martin, Engineering & Util- i ties Manager Diener, Port Marketing Director Gates, Parks and Recreation Director Yanez, Assistant Finance Director Gifford, Harbormaster Single- ton and City Clerk Murphy IV. APPROVAL OF MINUTES: Jlbt available V. APPROVAL OF REGULAR MEETING AGENDA: MEEHAN IDVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FO:L:LaVING THE CLOSE OF REX:3ULAR BUSINESS IN ORDER TO CONDUCT APPOINTED EMPLOYEE EVALUATIONS AND TO REVIEW CITY MANAGER PROPOSAL REX:EIVED BY THE MAYOR; THE MJI'ION WAS SEr:CNDED BY NOLL AND CARRIED UNANIMJUSLY. MEEHAN MJVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MJI'ICN WAS S~ED BY NOLL AND CARRIED UNANI- MJUSLY. VI. BOROUGH ASSEM3LY REPORI': Kenai Peninsula Borough Assembly Representative Sewall was not present and no report was given. VII. CITIZENS' CCM1ENTS CN AGENDA ITEMS NCYI' SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: l CSE154862 1 I I I PAGE 119 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 Schaeferrreyer stated that the Clerk had distributed a substitute rrerrorandum for Consent Calendar Item JIb. 8. AMENDED; M:XJSLY. HILTON MJVED TO APPROVE THE CONSENT CALENDAR AS THE MJI'ION WAS SEr:ONDED BY SIMUTIS AND CARRIED UNANI- The following actions were taken: 1. Resolution No. 88-071, authorizing an arrendment to the participation agreerrent of the city to include employees of the Seward Ccmnunity Library in the Public Ehployees' Retire- ment System, was approved and filed; 2. Resolution JIb. 88-072, authorizing the city manager to grant a step increase to each classified employee of the city, was approved and filed; 3. Resolution JIb. 88-077, authorizing signatures for the city bank account and rescinding all previous resolutions in conflict herewith, was approved and filed; 4. Resolution JIb. 88-078, designating Interim City Manager Darryl Schaeferrreyer as the authorized representative relative to the purchase of equiprrent through the Alaska Surplus Property Service, was approved and filed; , ~ f", .~ + ,...., PERSONNEL/RESO: (PERS for Library employees) PERSONNEL/RESO: (Salary increase) FINANCE DEPT. PURCHASING/RESO: 5. June 8, 1988, invoice from Wohlfarth, Flint & C. ATTY: Gruening for legal services totalling $744.17, was approved for payrrent and filed; 6. June 7, 1988, rrerrorandum from Engineering & Utilities Manager E. Paul Diener recormending award of a con- tract to Seward Construction Services in an aITOunt NTE $13,445, with a contingency of $1344.50, for a total project award of $14,789.50, to construct Purtp Station JIb. 3 Equiprrent Building, was approved and filed; 7. May 31, 1988, rrerrorandum from Diener requesting Council affirmation of an earlier poll authorizing the city manager to award a contract to Warning Lites of Alaska in the aITOunt of $17,393.75, for traffic control signs was approved and filed; 8. June 7, 1988, rrerrorandum from Diener recamending award of a contract to Stefanski Brothers in an aITOunt NTE $14,760, and authorizing a change order reserve of $1,500, for a total project aITOunt of $16,610, was approved and filed; 9. June 7, 1988, rrerrorandum from Assistant Finance Director Rick Gifford recommending award of a Profe~sional Services contract to Price Waterhouse to provide audit services for the years ending June 30, 1988, 1989, and 1990, was approved and filed; WATER & SEWER/CON- 2'13/RESO: TRAFFIC (Parkinq)/ RESO: PUBLIC WORKS/CON- ~ (Clearing) FINANCE DEPT./CON- ~: (Audit) ( CSE154863 ) " '"'';(1 PAGE 120 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 RE- Old 10. June 8, 1988, rrerrorandum fran Administrative Assistant Kerry Martin recorrrrending Council consent to assign- ment of lease interest held by Dot Bardarson to National Bank of Alaska (South ~ of Lot 5, Block 1, Marina Subdivision) was approved and filed; RE-{l{pb 11. June 8, 1988, rrerrorandum from Martin recorrrrending Council consent to the assignrrent of lease interest held by Ray and Leslie SimJ.tis to First National Bank of Anchorage (SBH Boardwalk Site JIb. 7) was approved and filed; GAMES OF CHANCE & 12. Applications for permits for garres of chance and SKILL: skill as filed by the following were filed without objection: RESURRECTION BAY LION & LIONESS CLUBS PIONEERS OF ALASKA IGLOO NO.9 PIONEERS OF ALASKA AUXILIARY NO.9; ELECTRIC DEPT: (Camelot Elec.) 13. June 6, 1988, rrerrorandum fran City Clerk Murphy concerning proposed Carrelot Subdivision Electrification project was noted for information and filed; COK'-2l.i1 14. June 1, 1988, rrerrorandum from Diener noting the following change orders to the Titan Construction, Inc., con- tract for SCCC Maintenance Shop Expansion was noted for informa- tion and filed: #1 - Retrofit existing srroke detector installations in Buildings 2, 3, and 4 (+$59,884); #2 - Raise head height of two gates accessing recre- ational yard 10'6" to 14'0" (+$6,661); #3 - Add four additional isolation valves on the APS hydronic system (+$1,622); # 4 - Chip away the existing concrete in order to facilitate the bonding of new concrete (+$346); and #5 - Installation of concrete collars with rebar using a corrugated rretal pipe (+$1,218); CON- IS" 15. May 25, 1988, rrerrorandum from Diener noting the following change orders to the Sarrwhan contract for SCCC con- struction was noted for information and filed: #151 - Providing for installation of Vitrocem flooring to cover walls 4" in 42 shower rooms (+$25,260); #152 - Extending sewer line to the Southeast across the service road (+$40,750); #161 - MJving 24" CMP to Entry Road, staking new location light pole, undercutting and backfilling APS foundation with NFS material, miscellaneous undercutting and backfilling, , staking and layout for sewer line extension (+19,250); #166 - Furnishing and installing additional rretal railing at the third floor level (+$1,430); t C Sf 154864 1 I I I PAGE 121 REGUlAR MEETING - JUNE 13, 1988 VOLUME 23 #167 - Installing 2 each, 4" x 12'0" pieces of angle iron J:n the concrete floor slab at the overhead door entrance (+$622); #168 - MJdifying interior hatches in control rooms in Buildings JIb. 2, 3, and 4 (+$5,076); #169 - CUtting swales around Building #3 for flood control on December 9-10, 1987 (+$1,449); #170 - Providing a credit for deletion of fire sprin- kler guards within housing units, Buildings 2, 3, and 4 (-$3,873) ; # 171 - Rerroving stunps on the Jlbrth side of the APS Building on June 3, 6, 17, and 18, 1987 (+$1,900); # 172 - Installing reinforcerrent on the top of the standby generator radiator wall in the warehouse (+$3,707); #173 - Providing all equiprrent, materials and labor to accomplish work per DC/VR 772 (+$2,260); #174 - Revising the relay settings on the 2,000 KVA transforrrer to the generator bus (+$749); #175 - Providing electrical VoDrk for power to the warehouse freezers (+$18,627); #176 - Providing all equiprrent, materials and labor to bypass the CM:S System for lighting coordination with CP-3 security system (+$6,500); #177 - Extending circuit P/34 or P/36 from the junc- tion box in the ceiling of Roam 1-305 and circuit from grid D3.4 to E.3 (+$700); # 17 8 - Installing conduit and conductors for the circuits as shown (+$8,300); #179 - Raising light pole standard base as per Re- vision #4 (+$2,255); #180 - Rerroving stunps and providing non-frost suscep- tible material backfill (+$13,174); #181 - Providing structural revisions described in Revision #3, Sections 3A, 4A, 9A and 9B (+2,375); #182 - Applying two coats above grade exterior dam- proofing of the APS Building frcxn B-6 to B-12 (+$6,090); and #183 - Costs incurred as a result of the issuance and rescinding of Revision #8 (+$5,771). IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding Resolution No. 88-062 (approved May 23, 1988, subject to this public hearing), lease of a one-acre parcel 100 feet to the east of the city substation property line wi thin the Fourth of July Creek Industrial Area to Shores ide Petroleum, Inc., was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. B. Notice of public hearing as I.XJsted and published as required by law regarding the proposed sale of Lots 4-13 and 15-26, Block 1, Gateway Subdivision, to MEI'CO/TREND, JV, was , ?', .L "d PUBLIC HEARING: (Shoreside Pet. lease) PUBLIC HEARING: (Gateway Sub.) l CSEl54865 1 -(""It:"') ~_/'.~' PUBLIC HEARING: (Gateway Sub) CITIZENS' DISC: (Woodruff - SFI Expansion) ALCOHOL/ORD: PAGE 122 RffiULAR MEETING - JUNE 13, 1988 VOLUME 23 noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Notice of public hearing as posted and published as required by law regarding the proposed sale of Lots 5, 6, 17, 19 and 21, Block 2, and Lot 4, Block 6, Gateway Subdivision, to Clint Hall, dba Hall Quality Builders, was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NOTICE ONLY: JOHN WJODRUFF, 613 First Avenue, Manager of Seward Fisheries, Inc., outlined for Council SFI's plans for expansion of its plant to accamodate two new canning lines. He stated that the proposed expansion represented a $3.5 Million project utilizing raw fish tax rebated to SFI through a new state program. He stated that the area which VoDuld primarily be affected by the expansion was the boatlift area, but added that a solution providing access by the city had been VoDrked out. W:xXlruff noted that the expansion VoDuld add in excess of $3 Million to the city's tax base, VoDuld add approximately $1 Million in additional annual payroll and VoDuld increase the raw fish tax generated in the city by $50-60 Thousand. In addition, he noted that more fisherrren and tenders VoDuld be calling on the port of Seward. In response to a question from Hilton, Schaeferrreyer stated that the city's goal was to eventually move all boat storage to the other side of the Bay. He stated that the Harbormaster was looking into the financial feasibility of noving the boatlift operation across the Bay. The Council instructed the administration to do what it could to expedite the replatting and lease amendrrent process to allow for the proposed plant expansion. XI. ORDINANCES AND RESOLUTICNS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactrrent: 1. public, Gieseler entitled: Copies having been made available to the noted by title only a proposed ordinance AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REGARDING THE SALE OF ALCOHOLIC BEVERAGES, AMENDING SEr:TICN 3-8 OF THE SEWARD CITY CODE. ( CSE 154866 1 I I I PAGE 123 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 Notice of public hearing as posted and published as required by law was noted and the public hearing as opened. CHARLES FULTZ, 520 Fourth Street, spoke in opposition to the ordinance. PEGGY BRcx:KMAN, 605 Sixth Avenue, Substance Abuse Counselor for Seward Life Action Council, spoke in opposition to the ordinance. She stated that IMI' s and other alcoholic-re- lated arrests are up 31% this year. BOB VALDATTA, 528 Fifth Avenue, spoke in favor of the ordinance. IDIS DAUBNEY, Mile 6>" Lake Drive, Seward Public Health Nurse, stated that, by waiving the law regarding the opening of liquor stores and bars for one day, the city was sending a confusing rressage to young people. She noted that the state of Alaska has a trerrendous alcohol problem and we do not need to give youth the Iressage that holidays are an excuse to start drinking even earlier than we do on other days. DICK FISHER, 416 Seventh Avenue, Alcohol Counselor, stated that there was no "rhyme or reason" for this ordinance, and called the ordinance "enabling legislation", adding that this ordinance, if enacted, VoDuld enable those with drinking problems to begin feeding their problems a little earlier during the day and VoDuld sanction this behavior. JIb one else appeared in order to be heard and the public hearing was closed. THE ORDINANCE FAILED DUE TO A lACK OF A MJI'ICN TO ENACT . C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOwrICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROPRIATING FUNDS FROM THE GENERAL FUND-FUND BALANCE TO THE PARKS AND RECREATION DEPARI'MENT BUDGET FOR THE PURPOSE OF OPERATING A CCM1UNITY SCHOOLS PRCXiRAM FOR THE 1988-89 SCHOOL YEAR. MEEHAN MJVED TO APPROVE RESOwrION NO. 88-073; THE MJI'ICN WAS S~ED BY HILTON AND CARRIED UNANIM:XJSLY. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: 1'r)Cl /. "., PARKS & REC/BUD- GET/COM. SCHOOLS/ RESO: ( CSE154867 J 7?1. _. <-I .. PAGE 124 REGUIAR MEETING - JUNE 13, 1988 VOLUME 23 SMIC (North Dock)/ RESO: A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS FOR THE SMIC NORTH DOCK. HILTON MJVED TO APPROVE RESOLUTICN NO. 88-074; THE MJI'ION WAS SEr:ONDED BY NOLL AND CARRIED UNANIM:XJSLY. GATEWAY SUB/RESO: 3. Copies having been made available to the public, Gieseler noted by ti tle only a proposed resolution entitled : A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SALE OF CERI'AIN GATEWAY SUBDIVISION rms TO METCO/ TREND, JV. SIMUTIS M:)VED TO APPROVE RESOLUTION NO. 88-075; THE MJI'ICN WAS S~ED BY DUNHAM AND CARRIED UNANIM:XJSLY. GATEWAY SUB/RESO: 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTICN OF 'IHE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SALE OF ADDITICNAL GATEWAY SUBDIVISION rms AND IDDIFlCATICN OF THE OPTICN AND PURCHASE AGREEMENT WITH CLINT D. HALL, DBA HALL QUALITY BUILDERS. HIL'IOO MJVED TO APPROVE RESOLUTICN NO. 88-076; THE MJI'ICN WAS SEr:CNDED BY DUNHAM AND CARRIED UNANIM:XJSLY. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: SMIC (North CON - ~'l J..: Dock) / A. SIMlJI'IS IDVED TO AUTHORIZE THE CITY MANAGER TO AWARD A CCNrRACT TO OJNSTRUCTION & RIGGING, INC., FOR AN AMJUNT Nor TO EXCEED $877,000, FOR THE NORTH SMIC DOCK CONSTRUCTION; THE MorION WAS SECCNDED BY HIL'IOO AND CARRIED UNANIM:XJSLY. SMIC (North CON- 2't/ : Dock) / B. HILTON IDVED TO APPROVE A CONTRACT WITH AFCGNAK IffiGING FOR AN l\t'KJUNT Nor TO EXCEED $287,500, TO PROVIDE GRANU- LAR FILL Nr THE SMIC NORTH DOCK; THE MJTION WAS SECONDED BY MEEHAN . In response to a question from ~ehan, Diener ex- plained that funds totalling $182,500 are currently available for this portion of the project. Ha.vever, if additional funds should becarre available, the city VoDuld like to have the option to purchase additional gravel fill for the favorable price ( CSE154868 1 I I I 1"'- ,j,:l PAGE 125 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 quoted by the contractor. He assured ~ehan that, in the event the fill exceeds 62,500 cubic yards, the Council will be notified prior to purchasing additional fill material under the contract. THE QUESTION WAS CALLED AND THE MJTICN CARRIED BY UNANIMJUS VOTE OF THE COONCIL. XIV. CITY MANAGER REPORTS: CHRIS GATES, Port Marketing Director, stated that he planned to have several leases before Council for consideration on June 27, including a proI.XJsed lease of SMIC property to Inlet Salrron Conpany for a fish processing facility, a proposed lease of SMIC property to Don Ennis for warehousing to supI.XJrt the fishing industry, a proposed lease of SMIC property to Jim Pruitt for a ship repair facility and a proposed lease of SMIC property to Joel Steelman for a ship repair facility. He noted that the Pruitt and Steelman proposals to the city are IlUltually exclusive and the Council VoDuld be asked to choose one of the two following public input. Gates also reported that the 10-person Navy Horreport Team to review the uplands were due to arrive in Seward on June 17 for a three day evaluation. He noted that the team had been instructed not to socialize with the local I.XJpulation and to avoid accepting gratuities of any kind. XV. COUNCIL DISCUSSION: DUNHAM stated that she had received carplaints con- cerning sorre of the building going on in the Small Boat Harbor. She stated that she hoped in the future the city allows only what has been previously approved to be built in the Harbor. Dunham also asked about the T-Shirt shop located in Mindenbergs I building. Schaeferrreyer stated that Mindenbergs I lease allows subletting with the concurrence of the Council and stated that the Council had previously approved this sublease. Gieseler asked the administration to have Mindenbergs prepare a staterrent outlining his plans for his lease site for presentation to the Council at the next rreeting. NOLL stated that the parking plan in the Boat Harbor appeared to be VoDrking well. SIMUTIS stated that she did not feel the parking plan was VoDrking very well as yet and asked when the parking signs VoDuld be in place. Diener stated that the signs should begin coming in next week and VoDuld be put up as they arrived. GIESELER read a thank you letter he received from Captain Schnurrpusch, Corrmander of the USS O'Callahan. He also noted a recent article in the Phoenix Log concerning the Rail ( CSt 154869 ) ~"(> .. .:. f:\ PAGE 126 REGULAR MEETING - JUNE 13, 1988 VOLUME 23 Diesel Car Depot (ROC). He noted that the depot VoDuld be dedicated on July 27 following an ARR Board rreeting in Seward. XVI. CITIZENS' DISCUSSION: BOB VALDATTA, 528 Fifth Avenue, stated that the city needs to consider re-establishing the Port Camnission. He also urged the Council to "free up" sorre land at SMIC for support services such as restaurants, hardware suppliers, etc. JOEL STEEIMAN, 526 First Avenue, stated that both he and Pruitt are now in a financial position to make legitimate, viable proI.XJsals for operation of ship repair facilities at SMIC. He asked the Council to look for ways to accomrodate both operators. JIM PRUITT, Ma.ple Street, stated that he was asked five nonths ago to show plans for a, significant capital invest- ment to justify his proposal to lease a 300' berth. He stated that he had provided an amended proposal and did not feel that it was fair to be in another "eleventh hour" decision situation. He stated that he had been trying to lease property at SMIC since 1980, and he urged the Council to approve his lease proI.XJsal when it carre before it on June 27. XVII. COUNCIL AND ADMIN. RESPCNSE TO CITIZENS' CCMMENTS: NOLL asked if there was any land set aside at SMIC to accorrrrodate Valdatta' s concerns. Schaeferrreyer stated that there was a great deal ofundesignated land, all zoned "Industrial". He stated that the city has not actively sought "support" use of the property. He noted that the Business Cormnmity has been concerned about a separate cormercial district being constructed across the Bay. DUNHAM stated that, had Steelman been successful in his plans to joint venture with Fishing Company of Alaska, he (Steelman) would be operating at the 300' berth and Pruitt would have been "shut out". XVIII . ADJOURNMENT: The rreeting was adjourned at 9: 11 p.m. and, after a short recess, the Council reconvened in Executive Session to discuss a city manager proposal received by the Mayor and to evaluate the performance of the apI.XJinted staff. '~~" ,<J~'-'" O~, "S,~ /1.-~ ;~>':"'~ \p~"OIf~/f() 'i;:. ,~ C..J '.,:.' "'.A', :: '.:$' -.- ...... '., S \ .,; SEA L ~. t%:ity Cl~. A", --- ..-- J' ':,'. ..,' ',,, "~~ . OJ....... \,<S' .}~,l' 1.~,."-+-")\ ~ 1'4 ' .. .. , ' '"' ~ A"" . :>'. ,. i:' OF .. \.-<iV ',-,..-,.~-((f'~ ~c ~,:....&. H E. Gieseler Mayor (CSE154610 ) I I I I "'" ,........''''"'' . I, I PAGE 127 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 I. CAlL 'ill ORDER: The Jtme 27, 1988, regular m:=eting of the Seward City Cmmcil was called to order at 7: 30 p.m. by Mayor Harry E. Gieseler. II. OPENING CERll1ONY: Cotmci1mernber Dunham led the pledge of allegiance to the flag. III. ROll CAlL: Present were: Mayor Gieseler and Cmmci1mernbers Dun- ham, Hilton, Noll, O'Brien and Sinnltis (Meehan was excused) Present also: City Manager Schaeferrreyer, City Attor- ney Arvidson, Administrative Assistant Martin, Engineering & Utilities Manager Diener, Harbormaster Singleton, Police Chief Bencardino, Fire Chief Gage, Deputy Fire Chief Squires and City Clerk Murphy IV. APPROVAL OF MINUTES: SJMUTIS M:lVED 'ill APPROVE THE MAY 23, MAY 26, JUNE 9, AND JUNE 13, 1988, MINUTES AS WRITTEN; THE MITION WAS SECONDED BY HIL'illN AND CARRIED UNANIMJUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaeferrreyer requested the addition of Agenda Item XI(C)(6), proposed Resolution No. 88-089, appropriating funds and awarding a contract for Fire Hall roof replacerrent. Hilton requested that Consent Calendar Item No. 9 (application for Monte Carlo permit as filed by Anchorage Chapter of Sweet Adelines) be placed on the regular m:=eting agenda tmder New Business, Item No. "B". SIMUTIS MOVED 'ill APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MYTION WAS SECONDED BY HIL'illN AND CARRIED UNANI- M:lUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on the nost recent Assembly meeting. VII. CITIZENS' CCM1ENTS ON AGENDA 1'1>>18 NOT SCHEDULED FOR PUBLIC HEARING: None ( CSE154871 ] 11""1("') .. _ ,~ ( 1 C.CLERK/RESO: STREETS & RDS/ RESO: PRISON/RESO: PRISON/RESO: ACCTS. PAYABLE: FIREWORKS: C. HALL/CON- .302: ELEC.DEPT/CON- 2.'1 ~: (Meter Reading Con.) PAGE 128 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 VIII. APPROVAL OF CONSENT CALENDAR: SIMUrIS MlVED TO APPROVE THE CONSENT CALENDAR AS THE MarrON WAS SECONDED BY DUNHAM AND CARRIED UNANI- The following actions were taken: AMENDED ; MOUSLY. 1. Resolution No. 88-085, setting the salary for the city clerk, was approved and filed; 2. Resolution No. 88-086, dedicating the Nash Road Extension as a public right of way, was approved and filed; 3. Resolution No. 88-087, authorizing additional purchase orders for SCCC hot water system IIDdifications, was approved and filed; 4. Resolution No. 88-088, authorizing miscellaneous prison emergency start-up corrq:>letion work, was approved and filed; 5. June 10, 1988, Finance Department list of Ac- counts Payable totalling $1,302,483.55, was approved for payment and filed; 6. June 16, 1988, letter from the local Chanber of Commerce requesting Council authorization to sponsor a fireworks display within the city limits on Sunday, July 3, 1988, was approved and filed; 7 . June 22 , 1988, meIIDrandum from Engineering & Utilities Manager E. Paul Diener requesting authorization for the city manager to negotiate and sign a PSA with Kurnin & Associates in an aIIDunt N'IE $13,700, for design of handicap improvements for City Hall, was approved and filed; 8. June 21, 1988, memorandum from Diener requesting authorization to enter into a contract with S & G Enterprises for electric meter reading services, was approved and filed; 9. MOVED TO REGULAR MEETING AGENDA; 10. June 14, 1988, memorandum from Administrative Assistant Kerry Martin outlining city policy regarding Vendors was noted for infonnation and filed; 11. June 21, 1988, memorandum from Diener regarding bid opening for repair of the Fire Hall roof was noted for infonnation and filed; and 12. June 21, 1988, memorandum from Martin regarding the height and size of the Oldow building in the Small Boat Harbor was noted for infonnation and filed. IX. PUBLIC HEARINGS: ( C5E154872 1 I I I PAGE 129 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 A. Notice of public hearing as posted and published as required by law regarding the renewal of lease of a :f:1, 973 square-foot site within the Seward Lagoon Park (Block 1, Ocean- view Subdivision) at 207 Dairy Hill Lane, to the Alaska Depart- ment of Fish and Game for a salrmn management and research facility was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. B. Notice of public hearing as posted and published as required by law regarding a proposed License Agreement for use of a portion of the Municipal Boatlift Dock, a portion of the City "T" Dock and the Wharf between these docks, all located within the Seward Small Boat Harbor, to Seward Fisheries, a division of Icicle Seafoods, Inc., was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Notice of public hearing as posted and published as required by law regarding the proposed lease of the "Old Depot" building and preferential use of the Fourth Avenue Dock to the Alaska Marine Highway System was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. D. Notice of public hearing as posted and published as required by law regarding the proposed long tenn lease of land to Seward Fisheries, Inc., a division of Icicle Seafoods, Inc., located at 601 Old Airport Road, the property being IIDre particularly described as a portion of Lot 10, all of Lots 11-15, Seward Industrial Park, and a portion of the Public Access to the Boatlift Dock, to accormndate an expansion of the Seward Fisheries plant, was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. E. cancelled. Public hearing on the proposed Ennis lease was F. Notice of public hearing as posted and published as required by law regarding a proposed long tenn lease of a ~1.76 acre unsurveyed parcel within U.S.S. 4827, located within the Seward Marine Industrial Center, to James Pruitt, dba Seward Ships Chandlery, was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. G. cancelled. Public hearing on the proposed Steelman lease was X. PRESENTATIONS WITH PRIOR OOTICE ONLY: None XI. ORDINANCES AND RESOLUTIONS: ---- 0t' .;. Ll'~) PUBLIC HEARINGS: (AK Dept. of Fish & Game - Seward Lagoon Park) PUBLIC HEARINGS: (SFI - Preferen- tial Dock Use) PUBLIC HEARINGS: (Ferry Lease) PUBLIC HEARINGS: (SFI lease ex- pansion) PUBLIC HEARINGS: (Pruitt Lease - SMIC) r CSE154873 1 ." ~n _.('-1'._ PAGE 130 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: " AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ESTABLISHING CHAPTER 18 OF THE SEWARD CITY CODE, PIANNING AND ZONING . SIMUrIS MlVED TO INl'RODUCE PROPOSED ORDINANCE 00. 606; THE MarION WAS SECONDED BY HILTON. O'Brien noted that the Administration had at one time expressed some concerns regarding the assumption of these powers from the Borough and asked if these issues had been resolved. Schaefermeyer stated that the city originally had two concerns - lack of adequate funding from the Borough and the Borough's earlier refusal to delegate the power to effect land use plan changes to the city. He noted that over the past five or six years, the city had received no funding or administrative support for planning and zoning functions from the Borough with the exception of assistance with the latest Corrq:>rehensive Plan update. He added that the Borough Administration has now agreed to grant limited planning powers to the city so that the Council would have the authority to approve changes to the Land Use Plan locally. Schaefermeyer reminded Council that it had taken 14 to 15 rmnths to get the last zoning change approved and reccmrended that the Council support this ordinance requesting delegation of those powers to the city. He noted that the Borough would continue to be responsible for Corrq:>rehensive Planning. In response to a question from O'Brien, Arvidson stated that the city would assUlle some additional liability if the powers were accepted and then used irrationally. He noted that the city has some liability exposure already. Arvidson cautioned that the city IIllSt be careful that the delegation of powers and the enactment of the city's zoning code coincide so that there is no time of "no zoning" within the city. Simutis inquired about the time frame and was informed that this was a four step process begirming with the enactment of this ordinance by the city, enactment of a borough ordinance approving or consenting to the city's request, enactment of a borough ordinance deleting the Seward Urban District Zoning Code, and enactment of a city ordinance adopting the Zoning Code. Sewall stated that the borough has been encouraging this action by the city for some time. He cautioned the city to investigate the liability issue carefully. THE QUESTION WAS CAlLED AND THE MOTION TO INTRODUCE PROPOSED ORDINANCE 00. 606 CARRIED UNANIMOUSLY. Public hearing was scheduled for July 11, 1988. ( ) . C5E154674 _ I I I PAGE 131 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING THE RENEWAL OF A LEASE WITHIN THE SEWARD IAGOON PARK FOR A SAlMON RESEARCH AND MANAGEMENT FACILITY TO THE ALASKA DEPAR'IMENI' OF FISH AND GAME. HILTON MlVED TO APPROVE RESOLUTION NO. 88-079; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, PROVIDING FOR THE PREFER- ENTIAL USE OF A PORTION OF THE SEWARD MUNICIPAL SMAlL BOAT HARBOR DOCK AND WHARF. NOLL MlVED TO APPROVE RESOLUTION 00. 88-080; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer recommended postponement of the resolu- tion. Arvidson stated that the Federal Maritime Comnission, during the past 6 - 12 rmnths, has taken a IIDre active role in reviewing agreements in Alaska. He stated that the FMC would probably be concerned about granting preferential use of a public facility to a private entity. Noll suggested that Council approve the agreement before it and let the attorney work with the FMC to resolve any problems that might arise with respect to the preferential use issue. THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE RESOLUTION NO. 88-080 CARRIED UNANIMlUSLY. 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, PROVIDING FOR THE DISPOSAL BY LEASE OF THE "OLD DEPOr' BUILD- ING AND PREFERENTIAL USE OF THE FOURTH AVENUE DOCK BY THE STATE OF ALASKA MARINE HIGHWAY SYSTEM. ~ ':',.... OCEANVIEW SUB/RE- /RESO: (ADF&G lease - Seward Lagoon Park) SMALL BOAT HARBOR/ RE- /RESO: (SFI preferential dock use agreement) WATERFRONT TRACTS/ RE- /RESO: (Ferry lease) ( CSE154875 ) 132 FIRE DEPT/CON- -z.l:il/BUDGET/ RESO: (Fire Hall roof re- pair) PAGE 132 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 HILTON MlVED TO APPROVE RESOLUTION NO. 88-081; THE MarION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING A LONG TERM LEASE OF CITY avNED PROPERTY WITHIN THE SEWARD INDUSTRIAL PARK SUBDIVISION TO ICICLE SEAFOODS, INC. NOLL MlVED TO APPROVE RESOLUTION 00. 88-082; THE MOTION WAS SECONDED BY SIMUrIS. Schaefermeyer requested postponement of the resolu- tion. He stated that he had not received official approval of the lease from Icicle Seafoods, and Arvidson had not had time to adequately review the lease. 0' BRIEN MlVED TO POSTPONE ACTION ON THE RESOLUTION UNTIL JULY 11, 1988; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANll1OUSLY. 5. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING A LEASE AGREE- MENT WITH JAMES PRUITT, DBA SEWARD SHIPS CHANDLERY. SIMUrrS M:lVED TO APPROVE RESOLUTION 00. 88-084; THE MOTION WAS SECONDED BY HILTON. Arvidson stated that the lease was not yet ready for approval He noted that Pruitt's attorney had submitted several proposed changes to the lease which he (Arvidson) had received only this IIDrning. He recommended postponement until July 11. HILTON MlVED TO POSTPONE ACTION ON RESOLUTION 00. 88-084 UNTIL JULY 11, 1988; THE MOTION WAS SECONDED BY ooLL AND CARRIED UNANIMlUSLY. 6. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, REAPPROPRIATING FUNDS AND AWARDING A CONI'RACT FOR FIRE HALL ROOF REPIACEMENT . r CSE154876 1 I I I PAGE 133 REGUlAR MEETING - JUNE 27, 1988 VOLUME 23 SIMUrIS MOVED TO APPROVE RESOLUTION NO. 88-089; THE MarrON WAS SECONDED BY HILTON. Diener stated that Peninsula Roofing submitted the only bid for the project. This bid totalled $31,521, excluding Item No. 3 (replacement of damaged insulation). He noted that the Council had earlier approved an appropriation of $31,900 to corrq:>lete the project. Diener stated that he had negotiated a lump sum agreement with the contractor for $32,500 to complete the entire project including insulation replacement. However, this would require the city to perfonn parts of the proj ect including assistance in stripping the roof, trash rermval and rermving and replacing the siren. In response to a question from Hilton, Diener stated that the extent of damage to the insulation would not be known until the roof was rermved. 0' Brien asked who would determine if insulation should be replaced. Diener responded that the city W'Ould make that detennination. Gieseler stated that this would be a golden opportuni- ty to add a second story to the Fire Hall to accorrroodate storage or extra office space. Diener stated that the decision to add an extra floor was a policy one which the Council W'Ould have to make, but he stated that it would cost considerably IIDre than the $35,000 project budget he was requesting. THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE RESOLUTION 00. 88-089 CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. Gieseler noted a request filed by Boardwalk lessees to lower boardwalk lease rates. NO ACTION WAS TAKEN DUE TO IACK OF A MJrION FRCM THE COUNCIL. B. TAKEN FRCM CONSENT CALENDAR. HILTON MlVED TO APPROVE AN APPLICATION FOR A MONTE CARLO PERMIT AS FILED BY THE ANCHORAGE CHAPTER OF SWEET ADE- LINES; THE MarION WAS SECONDED BY DUNHAM. 133 GAMES OF CHANCE & SKILL PERMITS: (Monte Carlo Permit for Anch. Chapter of Sweet Adelines DENIED) Hilton stated that he was not in favor of encouraging this type of activity in Seward, and he further objected to approving an activity of this type for 17 hours per day for three days. Simutis stated that she hated to see an orga- nization from Anchorage taking business and rmney away from local organizations and individuals who have put rmnths of effort into the Fourth of July celebration. Hilton noted thatEthe purpose of the organization (to provide education for its ( CSE154877 ) J.34 PAGE 134 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 rrernbers) was not particularly charitable. Dunham stated that she was leery of approving the application in light of recent publicity regarding private operators receiving the bulk of the profit for games run under the auspices of a charitable orga- nization. THE QUESTION WAS CAlLED AND THE MlTION FAILED TO CARRY WITH AlL PRESENT VOTING "00". XIV. CITY MANAGER REPORTS: DIENER gave a brief status report on several city projects as follows: 1. DOCUllents transferring the Senior Center property to the city have been signed and final architectural drawings should arrive soon. 2. The contract for clearing brush and trees was reported to be essentially complete. 3. The city has begun putting up parking signs. in the Small Boat Harbor and will continue this project as s~gns are received. (Simutis asked why enforcement of the new parking regulations did not begin with a warning. Schaefermeyer re- sponded that he had instructed the Police Department to enforce the parking regulations unifonnly as soon as signs were in place. ) 4. Chugach Alaska Corporation work is proceeding and the lease area has been cleared. 5. North Dock steel is on its way to Seward. 6. The water and sewer extension at SMIC is com- plete. 7. Prison start up projects are just about corrq:>lete. 8. The Ferry Dock Study has been received and is on file in the Clerk's Office. 9. All parties involved in the upcoming Fourth of July weekend festivities have met to coordinate efforts for the Fourth and the cleanup afterwards. X:V. COUNCIL DISCUSSION: o I BRIEN stated that he would like the administration to find a way to limit or reduce potential exposure should the city assUlle zoning and limited planning powers. DUNHAM asked if Mindenbergs' lease required tearing dawn the T-Shirt shop on his leased property. Martin stated that this was not a requirement of the lease, but noted that t C SE 154878 ) I I I ~, ::: ~ " " ;'i ~ '::i. PAGE 135 REGULAR MEETING - JUNE 27, 1988 VOLUME 23 rermval of the building would be necessary when the restaurant is expanded. ~ also stressed the importance of registering people to vote to support the Seward school bond issue this October. HILTON asked that the Pruitt lease be distributed to Council in time for review before the July 11 Meeting. roLL asked if the Library employees are now "on board" and was informed that the transfer will take place July 1. He also noted that the Science and Technology Foundation director is Dr. Henry Cole, Box AD, Juneau, 99811. GIESELER read a letter he had received from Cormndore Arndt thanking the city for the Navy's reception during its June 1-3 visit. Gieseler also predicted that Seward would make a clean sweep of the Mt. Marathon race. XVI. CITIZENS' DISCUSSION: JIM PRUITI, Maple Street, asked if Seward Ships Chandlery could receive preferential use of the SMIC dock similar to the city's arrangement with Seward Fisheries. Gieseler stated that he would have to work out the details of his lease with the city administration. Pruitt also noted that he had purchased Seward Steelworks from Joel Steelman. (In response to a question from ~, Schaefermeyer stated that Steelman currently owes the city approximately $56,000.) XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: GIESELER asked how the city was progressing with the collection of past due debts. Schaefermeyer stated that the city has a policy which is followed by the administration for the collection of debts to the city. He noted that the policy includes filing of small claims actions and attachment of pennanent fund dividends. MURPHY stated that her office would be conducting voter registration on two separate weekends during July to give those who were unable to come into her office during regular business hours an opportunity to register in time for the August Primary election. XVIII. ADJOURNMENl' : The meeting was adjourned at 9:02 p.m. " ~ ':;, -:'l, r CSE154879 ~ ~. C! ~4~O~ Ha . Giese er Mayor . (CitY' -SeaJ.) ,.: , -'/'1" ,~~,./ , ..,1:'1'." ., ,.~" _ ..~"(- " ,'" ;;' i~ \_:,,:~5~~ _~ , (,('II 1~5 ] 136 PAGE 136 REGULAR MEETING - JULY 11, 1988 VOLUME 23 I. CAlL TO ORDER: The July 11, 1988, regular meeting of the Seward City Council was called to order at 7: 30 p. m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: the flag. III. ROLL CAlL: Councilrnernber O'Brien led the pledge of allegiance to Present were: Mayor Gieseler and Councilrnernbers Mee- han, Noll, O'Brien and SiIIlltis (Dunham and Hilton were excused) Present also: City Manager Schaefermeyer, City Attor- ney Arvidson, Ackninistrative Assistant Martin, Engineering & Utilities Manager Diener, Police Chief Bencardino, Finance Director Peirson, Parks and Recreation Director Yanez and City Clerk Murphy IV. APPROVAL OF MINUTES: SIMUrIS MlVED TO APPROVE THE JUNE 27, 1988, MINUTES AS WRITIEN; THE MarION WAS SECONDED BY NOLL AND CARRIED UNANIMlUS- LY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer recommended that Council postpone the public hearings under agenda items IX(B) (Ennis) and IX(C) (Pruitt) and that Council postpone action on proposed Resolution No. 88-084 (Pruitt lease). He also noted that he would be requesting the addition of two new items to the Consent Calen- dar: 7) Continuation of the Trade Board; and 8) Arnendmmt No. 2 to the Campground Services contract. SIMUrIS MlVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY NOLL AND CARRIED UNANIMlUS- LY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Sewall was not present and no report was given. VII. CITIZENS' C<M1ENI'S ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None ( CSE154860 1 I I I PAGE 137 REGULAR MEETING - JULY 11, 1988 VOLUME 23 VIII. APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MarION WAS SECONDED BY SIMUrIS AND CARRIED UNANI- MlUSLY. The following actions were taken: 1. Resolution No. 88-091, authorizing a purchase order for prison roof modifications necessitated by the instal- lation of new water heaters without full utilization of city bid procedures, was approved and filed; 2. Resolution No. 88-092, designating beach access and camping areas in the Fourth of July Creek area, was approved and filed; 3. July 6, 1988, memorandum from Engineering and Utilities Manager E. Paul Diener requesting Council approval of the June 20, 1988, revisions to the Spring Creek Correctional Center's project budget was approved and filed; 4. July 6, 1988, memorandum from Diener requesting Council authorization to sell approximately 600 c.y. of under- sized shot rock to Afognak Logging Company at a price of $5/c.y. was approved and filed; 5. July 6, 1988, meIIDrandum from Diener requesting Council authorization to approve Change Order No. 1 to the clearing contract with Stefanski Brothers for a lump sum aIIDunt of $3,000 was approved and filed; 6. June 7, 1988, memorandum from Diener noting the following change orders to the Sarrwhan contract for prison construction was noted for infonnation and filed: #184 - Run circuits and connect cabinet heaters #41, 42 an<:ILi5 and change all unmarked conduit from lz" IMC to 3/4" (+$17,914); #185 - Perform all architectural items per Revision 6B (+$12-;031") ; {/186 - Extend length of concrete slab in APS building from IrLi" to 12'2" (+$2,000); {/187 - Install a 6" concrete base for the steel colurms under the tower in the APS building (+$1,000); {/188 - Install U-type IIDlding at the glue-on acous- tical tile ceilings (+$3,225); #189 - Provide a credit for the transportation of one DOC person for factory training (-$1,626); 137 PRISON/RESO: CAMPGROUNDS/RESO: PRISON: (Budget) PROPERTY SALES: (Gravel sale to Afognak) CON--z.~4 : CON-1SQ: ( C5E 1548 81 ) 138 TRADE BOARD: (Continuation) CON-''7/~ 04...... PUBLIC HEARINGS: (SFI Lease) PAGE 138 REGULAR MEETING - JULY 11, 1988 VOLUME 23 #190 Dewater for RFP 11112 in front of building 113 (+$785); 11191 - Install roof drains and heater at the APS building loading dock (+$14,358); 11192 - Install electrical connections to the freezer door frCln heater in the APS building (+$746); 11193 - Install angle bracing at the clerestories of Buildings 2 and 3, using detail A-403 (+$33,700); 11194 - Adjust the preformed metal roofing at the APS clerestory hips (+$3,219); #195 - Install stairs, decks, fuel system, rails and shelving for the added Dar/PF office trailers (+$5,500); 11196 - Reposition the window frame 1118 (+$465); 11197 - Install patching due to water damage to the fireproofing (+$4,738); 11198 - Install a vertical stainless steel filler to prevent garbage from acctmlllating between the backsplash and the window for food service (+$1,301); 11199 - Install drywell 27 feet north of the outside wall ana a second drywell in front of Building 113 (+$10,347); and 11200 - Install type "A" fire stop at the top of <:MU walls~Building #5 (+$21.043); 7. July 11, 1988, memorandum from Murphy reccmrend- ing that the Council authorize continuation of the Trade and Commerce Advisory Board through June 30, 1989, was approved and filed; and 8. Amendment No. 2 to the Campground Management Contract, adding the fee camping area designated in Resolution No. 88-092 to the list of designated public camping areas, was approved and filed. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed long tenn lease of a portion of Lot 10 and all of Lots 11-15, Seward Industrial Park Subdivision, and a portion of the PUblic Access to the Boatlift Dock, to Seward Fisheries, a division of Icicle Seafoods, was noted and the public hearing was opened. ( CSE154882 1 I I , PAGE 139 REGULAR MEETING - JULY 11, 1988 VOLUME 23 JOHN WJODRUFF, 613 First Avenue, representing Icicle Seafoods, stated that the lease agreement has now been signed by the President of Icicle Seafoods. He stated that a design team has been retained to design and oversee construction of the expansion. Woodruff also stated that Icicle Seafoods fully expects to have an additional one or two canning lines in operation next season. In response to a question from Gieseler, Schaefermeyer stated that he and the attorney had reviewed the minor IIDdifica- tions to the lease agreement suggested by Icicle Seafoods and that the administration was ready to recommend approval of the lease. DARLENE LUST, Sailing, Inc., stated that she did not object to the expansion of Seward Fisheries but was concerned about access to the Boatlift Dock. She stated that she had heard ruIOOrs that the city intended to IIDve the boatlift opera- tion to "the other side of the Bay", adding that she would object to such a IIDVe. Schaefermeyer noted that the adminis- tration would not reccmrend IIDving the Travel lift across the Bay, but was currently researching the feasibility of purchasing a IIllch larger lift to use at the Industrial Center. He assured Ms. Lust that the travel lift would remain in the Small Boat Harbor. Administrative Assistant Martin pointed out the pro- posed new access route on a map of the area and explained the replat process. No one else appeared in order to be heard and the public hearing was closed. B. POSTPONED C. POSTPONED X. PRESENTATIONS WITH PRIOR NOTICE ONLY: LEE GORDANIER, representing the Small Boat Harbor Boardwalk Lessees, asked that Council consider lowering the rates charged for Boardwalk Lease Sites. He stated that other sites in the Small Boat Harbor currently rent for $0.40 - $0.48 per square foot annually while Boardwalk sites rent for $1.64 per square foot. He stated that Boardwalk lessees do not mind paying a premium for their choice location, but objected to paying rates 300% above what others in the Harbor are paying. Meehan stated that the $1500 flat lease fee for Boardwalk sites had been established as a way of recovering the costs to the city of developing the Boardwalk area. He noted that administering these leases was costly. o I Brien asked if there was an appeal process for lessees who objected to the lease rates. Schaefermeyer stated that IIDSt leases of city property contain such an appeal 1 ~~ CITIZENS DISC: (Gordanier, Lee) ( (5\:154883 l 140 SBH(Boardwalk) : (Admin. to neg. lease rates w/ Boardwalk les- sep.s) PAGE 140 REGULAR MEETING - JULY 11, 1988 VOLUME 23 process, but the Boardwalk leases were for a shorter period of time with only one lease rate throughout the life of the lease, and no appeal process had been included. In response to a question from Noll, Schaefermeyer stated that Ray's Waterfront and The Landing were each paying $0.40 per square foot. with a provision for reappraisal every five years. Simutis stated that she had no problem with adjusting the Boardwalk lease rates to bring them in line with others in the area. She stated that she objected to penalizing these businesses because of their seasonal nature. SiI!lltis added that the Boardwalk shops are a real benefit to the city. In response to a question from Gieseler, Schaefermeyer stated that appraisals of city property generally run about $1,000 per lot; however, a letter of opinion from the appraiser would probably be substantially less expensive. Arvidson stated that the flat rate had been chosen initially because any appraisal of the property would probably cost IIDre than the rent to be realized from it. He noted that the objective seemed to be to arrive at a fair market value for the lease sites and he recommended that the city and the lessees negotiate that rate. O'Brien noted that the city needs to look seriously at its lease posture in the Harbor and suggested that the adminis- tration work toward a blanket time frame for appraisals every five years. GIESELER, WITH THE CONSENT OF COUNCIL, INSTRUcrED THE AIl1INISTRATION TO NEGOI'IATE A LEASE RATE WITH THE BOARIWALK LESSEES. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING SECTION 14-159 OF THE SEWARD CITY CODE REIATING TO CONVIC- TIONS AND THEIR PENALTIES AND ADOPTING THE STATE TRAFFIC BAIL FORFEITURE SCHEDULE. SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 607; THE MlTION WAS SECONDED BY 0' BRIEN AND CARRIED UNANIMlUSLY. Public hearing was scheduled for July 25, 1988. (Noll asked ( CSE 154884 1 I I I PAGE 141 REGULAR MEETING - JULY 11, 1988 VOLUME 23 Arvidson to reword the last paragraph of Section 1 to make it IIDre easily understood.) B. Ordinances for Public Hearing and Enactment: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ESTABLISHING CHAPTER 18 OF THE SEWARD CITY CODE, PIANNING AND ZONING . Notice of public hearing as posted and published as required by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. o I BRIEN MOVED TO ENACT ORDINANCE NO. 606; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING A LONG TERM LEASE OF CITY CMNED PROPER'lY WITHIN THE SEWARD INDUSTRIAL PARK SUBDIVISION TO ICICLE SEAFOODS, INC. Murphy noted that a IIDtion to approve was on the floor. (Action on the resolution had been postponed from the June 27, 1988, meeting.) Meehan requested pennission from the chair to abstain due to his position as an employee of Icicle Seafoods; the Mayor noted that a financial conflict of interest did exist and granted pennission to abstain. THE QUESTION WAS CAlLED AND THE MOTION TO APPROVE RESOLUTION NO. 88-082 CARRIED WITH FOUR "YES" VOTES AND MEEHAN ABSTAINING. 2. RESOLUTION NO. 88-084 POSTPONED UNTIL 07/25/88. (SEE APPROVAL OF REGULAR MEETING AGENDA.) 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: 141 PLANNING & ZONING/ ORD: (Requesting planning & limited zoning powers from KPB) INDUSTRIAL PARK SUB/RE- /RESO: (Approving SFr lease) (CSE154885 1 142 TAXES: (Auth. participation in Fish Tax Credit prog./ Seward r.1arine Services) CLAIMS FOR DMGS: (Martensen, B./ DENIED) PAGE 142 REGULAR MEETING - JULY 11, 1988 VOLUME 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING CITY PARTICI- PATION IN THE FISH TAX CREDIT PROGRAM ON BEHALF OF SEWARD MARINE SERVICES. SIMUTIS MlVED TO APPROVE RESOLUTION NO. 88-090; THE MarION WAS SECONDED BY oolL. Gieseler asked if the tax credit was to be used to expand or create a local processing facility or to facilitate off-loading of fish to be processed elsewhere. He stated that it was his understanding that only fish processed in Seward would generate raw fish tax for the city, and he was concerned that fish off-loaded for processing in Kenai would mean a loss of raw fish tax for Seward. Schaefermeyer stated that, in order to benefit from this tax credit, the applicant would be required to use the funds to expand or improve processing facilities within the tax jurisdiction (Seward). RHONDA ANDERSON, a principal in Seward Marine Ser- vices, responded to several questions from the Council concern- ing the proposed improvements. She stated that SMS intended to tie into the city's water system, make repairs and improvements to the Anderson Dock and purchase equipm=nt. Anderson stated that, initially, fish received over the dock would be shipped outside the city for processing, but her long range plan was to expand her facility to allow local processing. In response to a question from Noll, Schaefermeyer stated that the improvements would add to the tax base and result in IIDre real and personal property tax payments to the city. THE QUESTION WAS CAlLED AND RESOLUTION 00. 88-090 WAS APPROVED WITH FOUR "YES" VOI'ES AND MEEHAN ABSTAINING. (Arvidson advised Meehan that his status as an employee of Seward Marine Services' only local competitor, Seward Fisheries, constituted a conflict of interest.) XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. SIMUrIS MlVED TO APPROVE THE CIAIM FOR DAMAGES TOI'ALLING $153.50 AS FILED BY BAHNE MARTENSEN; THE MOTION WAS SECONDED BY MEEHAN AND FAILED WITH ALL PRESENT VarING "NO". B. Gieseler stated that, through his efforts and the support he had received from Senator Stevens, the U. S. Post Office had agreed to install two mail drop boxes and coin- operated starrq:> machines in the city. One of the boxes and machines was to go in the covered area outside the ( CSE 154886 ] I I I PAGE 143 REGULAR MEETING - JULY 11, 1988 VOLUME 23 Harbonnaster' s Building in the Small Boat Harbor. The other was to be placed in the downtown area; however, the local Postmaster had asked that Council designate the exact location. Gieseler stated that an area in front of First National Bank might be a good location. Diener stated that placing the box on the sidewalk would probably present a problem. In addition, the small park adjacent to the bank was private property and would require permission from the Bank before it could be installed. O'Brien suggested placing the mail box in front of City Hall. FOUOWING FURTHER DISCUSSION, TIlE COUNCIL INSTRUCTED THE ArMINISlRATION TO DESIGNATE A PIACE FOR THE MAILBOX AND STAMP MACHINE. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that Govemor Cowper had vetoed $465 ,000 from the reappropriations budget which had been ear- marked for an Anchorage Navy Homeporting study. XV. COUNCIL DISCUSSION: NOIL noted that the Alaska Railroad Board would meet in Seward at the IMS Rae Building at 1:00 p.m., Wednesday, July 27. He urged all interested to attend. Noll also congratulated the Fourth of July celebration organizers, stating that the weekend was a great success. Noll commented that the recent newspaper articles concerning comments made by the Korean President concerning Alaskan barley were misleading. He stated that Koreans were interested in co-sponsoring agricultural proj ects, not in purchasing Alaskan barley. MEEHAN stated that he had read the Clerk's meIIDrandum concerning city lease procedures and supported her recommenda- tion that the administration be instructed to follow the lease procedures already in place. He stated that he agreed that a signed lease should be on file in the Clerk's Office before any advertisement of public hearing on the lease was approved. Meehan noted that there would occasionally be exceptions to this rule, but established procedures should be followed for IIDSt leases. Schaefermeyer stated that the administration had no problem with following the procedures, but is often instructed by the Council to proceed with due diligence only to have the lessee fail to follow through with equal speed. He noted the Pruitt lease as a prime example. He added that he agreed that a slower pace may be needed and stated that he had attempted to set a policy that Council not be asked to act on a lease until a signed lease is in place. Meehan noted that he was not implying that the Administration was solely responsible for past problems and stated that the Council had also been at fault. O'BRIEN stated that he, too, was concemed with the speed with which things are pushed through, noting that the Clerk is often put in a difficult position when trying to get 14:3 u.s. P.o. (Dwntwn Mail Box loca- tion) ( CSf 154887 ) 144 PAGE 144 REGULAR MEETING - JULY 11, 1988 VOLUME 23 agenda materials together in a timely rnarmer. He added that he was tired of getting stacks of paper in front of the Council just prior to the start of the meeting. He also stated that the city needs to assure that the lessee pays his fair share of the costs of developing a lease. O'Brien asked for a report on city abatement of public nuisances. Diener stated that a report would be prepared and presented to the Council at the July 25 meeting. GIESELER asked for a status report on the steel for the North Bulkhead Dock. Diener responded that it should arrive in Seward on July 18. Gieseler also congratulated Diener, city street crews and the Chamber of Commerce on the cleanup effort following the Fourth of July celebration. Gieseler stated that he wanted the Trade Board to know that it is appreciated by the Council and noted that its members are a real asset to the city. XVI. CITIZENS' DISCUSSION: LEE GORDANIER, Mile 1.5, Exit Glacier Road, stated that, on behalf of the people in the Harbor, he wanted to thank the city for the mail drop box in the Harbor. He stated that the one downtown should be located in the small park next to the bank. XVII. COUNCIL AND ArMIN. RESPONSE TO CITIZENS' CCM1ENTS: O'BRIEN stated that, since tour busses discharge and pick up passengers at the City Hall intersection, IIDst of these visitors would benefit from locating the mail box at City Hall. XVIII . ADJOURN1ENT : The meeting was adjourned at 8:55 p.m. ~c ~~t~n4 Ha E. Giese er Mayor ...V-~-?~~~ /0' -.I.. ~:...,...~'"1 '<':;.. i c>:..,'tJ"'if;;,4/'f>O \. :; :'# ...- "". ~. ? n ~ SEAL :.~. ( C SE 154888 ] I I I 145 PAGE 145 REGULAR MEETING - JULY 25, 1988 VOLUME 23 I. CAlL TO ORDER: The July 25, 1988, regular meeting of the Seward City Council was called to order at 7: 30 p. m. by Mayor Harry E. Gieseler. II. OPENING CEREMJNY: Counci1rnernber Noll led the pledge of allegiance to the flag. III. ROIL CAlL: Present were: Mayor Gieseler and Councilrnenhers Dun- ham, Hilton, Meehan, Noll and Simutis (O'Brien was excused.) Present also: City Manager Schaefermeyer, Administra- tive Assistant Martin, Port Marketing Director Gates, Police Chief Bencar- dino, Parks and Recreation Director Yanez, Finance Director Peirson and City Clerk Murphy SPECIAL ITEMS: A. Grace Scholl presented the Mayor with a flag which she had received during Flag Day celebrations in Balti- more, Maryland. B. Seward International Friendship Association President Jonathan Sewall introduced Japanese exchange students Takahiro Arisawa, Toshiro Chikaoka, Takako Yamauchi and Kayoko Oba and Seward students Russell Burnard and Beth Renwick. He noted that Eric Jackson and Tanrny Treece ~uld also represent Seward in this year's exchange program. C. Gieseler introduced Yukie Takenaka and explained that she had participated in the annual student exchange in 1985 and had returned to Seward two years later to attend high school in Seward. He declared Ms. Takenaka to be an honorary citizen of Seward and presented her with a plaque designating this status. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE JULY 11, 1988, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY NOlL AND CARRIED UNANlM)US- LY. V. APPROVAL OF REGULAR MEETING AGENDA: SCHAEFERMEYER requested the addition of three items to "CITY MANAGER REPORTS" as follows: t CSE154689 1 146 SEW. INDUS. PARK/ RE- /RESO: C.ATTY: C.ATTY: ACCTS.PAYABLE: CON-ISq: z.(p\ LOl PAGE 146 REGULAR MEETING - JULY 25, 1988 VOLUME 23 A. Repair of Fourth of July Creek Sewage Treatment Plant outfall; B. Marine marketing update by Christopher Gates; and C. Update on Harbor Parking Plan and Salmm Derby preparations. GIESELER requested the addition of NEW BUSINESS Item No. "c" - Alaska Korea Business Council Trade Fair. SIMUrIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANI- MOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Sewall gave a verbal report of the July 19, 1988, Assembly meeting. VII. CITIZENS' C<M1ENl'S ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: HILTON MlVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANlMJUSLY. The following actions were taken: 1. Resolution No. 88-084, approving a lease agree- ment with James Pruitt, dba Seward Ships Chandlery, was post- poned until a signed lease agreement is on file in the city clerk I s office; 2. Resolution No. 88-093 , approving a short tenn lease of city property to B & R, Inc., dba B & R Envirorunental, for storage of container vans, was approved and filed; 3. July 11, 1988, invoice from Wohlforth, Flint & Gruening totalling $248.97 for legal services rendered through June 30, 1988, was approved for payment and filed; 4. April 1988 invoice from lITGP&B for legal services totalling $33,010.10 was approved for payment and filed; 5. July 19, 1988, Finance Department's list of Accounts Payable totalling $590,387.38 was approved for payment and filed; 6. July 20, 1988, memorandum from Engineering & Utilities Manager Diener noting prison construction change orders was noted for infonnation and filed. Noted in the ( CSE 154890 ) I I I 147 PAGE 147 REGULAR MEETING - JULY 25, 1988 VOLUME 23 rneIIDrandum were Change Orders No. 201 and 203 (S8!ThVhan con- tract); No.6 and 7 (Titan Construction contract); and No.7, 8 and 9 (Zubeck, Inc., contract). IX. PUBLIC HEARINGS: A. Public hearing on the proposed lease of city property to James Pruitt, dba Seward Ships Chandlery, was cancelled. X. PRESENTATIONS WITH PRIOR OOTICE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING SECTION 10-21(C) OF THE CITY CODE, AUIHORIZED INVES'IMENI'S. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 608; THE MlTION WAS SECONDED BY ooIL AND CARRIED UNANIMlUSLY. Public hearing was scheduled for Augus t 8, 1988. B. Ordinances for Public Hearing and Enactment: 1. Copies having been made available to the TRAFFIC/ORD: public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING SECTION 14-159 OF THE SEWARD CITY CODE REIATING TO CONVIC- TIONS AND THEIR PENALTIES AND ADOPTING THE STATE TRAFFIC BAIL FORFEITURE SCHEDULE. Notice of public hearing as posted and published as required by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. HILTON MOVED TO APPROVE ORDINANCE NO. 607; THE MOTION WAS SECONDED BY NOIL. SIMUrIS MOVED TO AHEND THE PROPOSED ORDINANCE BY SUBSTITUTING THE FOILCMIt'G FOR THE IAST PARAGRAPH IN SECTION 1: ( CSE154891 1 148 LEASE PROPOSALS: (Ci ty to negot. ,,",ISMS for lease of tide- lands) , I l PAGE 148 REGULAR MEETING - JULY 25, 1988 VOLUME 23 UNLESS ANOmER PENALTY IS EXPRESSLY PROVIDED BY TIllS CODE FOR ANY PARTICUIAR PROVISION OR SECTION, THE PENALTY PROVIDED HEREIN SHALL APPLY. THE MlTION WAS SECONDED BY HILTON AND CARRIED UNANI- MOUSLY. THE QUESTION WAS CAlLED ON THE MAIN MarION AND ORDINANCE 00. 607 WAS APPROVED AS AMENDED BY UNANIMOUS VOTE OF COUNCIL. C. Resolutions: None XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. RHONDA ANDERSON, one of the family owners of Seward Marine Services, explained SMS I s plans for expansion of its facility. She explained that the proposed lease sight would allow for development of a processing plant which would make it possible for SMS to process fish locally rather than transport them to Kenai. She stated that SMS had already applied for a Corps of Engineers permit for dredging and planned to use the dredged material as fill in the lease site. She added that, if possible, she would like to start dredging this fall with construction to begin in the Spring of 1989. In response to a question from Hilton, she stated that there would be no ob- jection to a perfonnance clause with a 1990 deadline for com- pletion of construction. Anderson stated that, if her proposal was approved by the Council, she would be coming back to the city with a request that Lowell Point Road be paved. In response to a question from Hilton, she stated that she had discussed this with Engineering & Utilities Manager Diener and hoped to see this project includ- ed in the city's next paving project. Hilton also inquired about the impact this development ';oIOuld have on the city's current water problem and the sewage treatment plant. Schaefermeyer stated that this project would increase SMS I S demand for water but would have no impact on the sewer system's capacity. GIESELER INSTRUCTED THE AIMINISTRATION TO PROCEED WITH NEGOTIATIONS WITH SEWARD MARINE SERVICES FOR DEVELOPMENT OF A LEASE OF CITY -a.JNED PROPERTY; THERE WAS 00 OBJEcrION FRCM THE COUNCIL. (Meehan earlier stated his intention to abstain from discussion or voting on this issue, noting his conflict of l CSEl54692 1 I I I PAGE 149 REGULAR MEETING - JULY 25, 1988 VOLUME 23 interest as a management employee of SMS's only local corrq:>eti- tor. ) B. Schaefermeyer noted the July 19, 1988, memorandum from Engineering & Utilities Manager Diener which had been included in the Council packet and asked Diener to give the Council some background on this item. DIENER stated that the city had lost one of its water wells at Ft. Rayrmnd and would have to replace it with another in order to meet the city's current and projected water needs. He noted that, since all of the city's water wells are located in the North end of town, he would suggest locating the new well in the Lowell Canyon area. He requested authorization to proceed with the development of a test well in that area to detennine if there is sufficient water to go forward with a production well. NOLL MOVED TO AUlliORIZE THE CITY MANAGER TO CONTRACT FOR CONSTRUCTION OF A TEST WEIL IN LCMEU. CANYON OR SCl1E ornER LIKELY IDCATION SOUlli OF THE IAGOON; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITHOUT OBJECTION. C. Noll stated that the Alaska-Korea Business Council was cosponsoring a trade fair in Seoul in December and urged the city to participate. Meehan noted that the city had participated in other delegations to Korea in the past and these had been very productive. He agreed that it would be a good idea for the city to send a delegation and sponsor a booth at the fair. Schaefermeyer stated that, if the Council wished to participate, it IIllst make a sufficient conrnitment of people and resources to upgrade and properly theme the city display and to man the booth once the fair begins. NOLL MOVED TO DIRECT THE CITY ArMINISTRATION TO DO TIlE PIANNING NECESSARY TO ATTEND THE TRADE FAIR SUCCESSFULLY IN DECEMBER; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. XIV. CITY MANAGER REPORTS: DIENER stated that Fourth of July Creek sewage treat- ment plant outfall had suffered erosion as a result of tidal action and needed imnediate repair. He estimated the cost of the project at $10-15 Thousand, with funding coming from the prison construction account. He stated that he had requested price quotes from METCO and Afognak and anticipated a response on Monday or Tuesday (August 1-2). He asked that Council permit him to award a contract to the low "bidder" imnediately upon receipt of the two quotes, with ratification of the contract award scheduled for the next regular meeting. THERE WAS NO OBJECTION FRCl1 THE COUNCIL. GATES presented a status report on current city projects as follows: 149 WATER DEPT/CON- 013 : COMMUNITY PROMO- TION: (City to participate in KATFA 88) PRISON: (Repair of STP outfall) l CSE154893 1 150 PAGE 150 REGULAR MEETING - JULY 25, 1988 VOLUME 23 Pruitt Lease - The administration is fairly close to a negotiated lease with Seward Ships Chandlery. Navy Homeffiorting - He has received Sale positive infonnal cormtents at the city's presentation was well re- ceived. Reviewers have indicated that the city of Seward is armng the top three finalists. Alaska Railroad Board Meetin~ - Scheduled for Wednes- day, July 27, 1: 00 p.m., IMS Rae Building. He encouraged everyone to attend. Coal Dock Transfer - This issue may be raised at the ARR Board meeting, but a resolution is not expected in the near future. Inlet SalIIDn - The company has tentatively agreed to 80% local processing as a condition of the lease. Hotel - A major hotel is still interested in locating in Seward. ,'j' , SCHAEFERMEYER stated that all street and traffic signs have been put up. He noted that there have been a few public awareness problems and the administration intends to order additional signs for the boat launch ramp area. He also stated that enforcement of parking regulations in the boat harbor would contirroe. Schaefermeyer noted that increased traffic during Salrmn Derby might necessitate the hiring of additional enforce- ment personnel. SCHAEFERMEYER stated that activity at SMIC has in- creased with the arrival of the steel for the dock. He noted that additional signs and controls have been installed to avoid conflicts between private vehicles and trucks working in the area. x:J. COUNCIL DISCUSSION: DUNHAM stated that she had attended the Prison Indus- tries Board meeting on July 11. She noted that a proposal had been made to IIDve the furniture plant at the Kenai facility to Spring Creek Correctional Facility; however, this probably would not occur for another year. Dunh8rn also encouraged those present to attend the ARR Board meeting. She stated that there was a need to call Frank Turpin to task for his sarcasm when referring to Seward and Moose Pass and that he should be in- structed to live up to his promises. MEEHAN stated that there was still a traffic con- gestion and parking problem in the boat harbor and suggested that the city consider constructing another boat launch ramp outside the Small Boat Harbor area. Schaefermeyer stated that this had been considered a few years ago. At that time the city ( C 5E 154B94 1 I I I 1 !11 PAGE 151 REGULAR MEETING - JULY 25, 1988 VOLUME 23 had looked at two locations - one south of the breakwater and one in the vicinity of the boat grid at the SFI meal plant. However, the first was too close to the existing launch and the other was in an industrial area. He noted that recent improve- ments to the ramp itself and the approach to the ramp should help ease congestion in the area. Schaefermeyer stated that Council should consider whether the cost of an additional launch ramp was justified by the inconvenience boaters experienced during the 10 days of Salrmn DeIby each year. ooLL noted that the KATFA 88 trip was open to anyone. He also no~that he and Paul Diener had been attempting to get a two-star admiral to attend the 1988 Rotary Banquet as guest speaker. SIMUrIS noted that the new signs in the Small Boat Harbor were a step in the right direction but suggested that the city consider issuing warning tickets initially. She said this was a corrrron practice in other areas, such as Homer, and stated that if the city's intent was to reorganize the parking plan in the harbor area, rather than increase city revenues, this would be a better approach. Schaefermeyer responded that citation was the only effective was to initiate a new parking program. In response to SiIIlltis' question concerning access to Fourth of July Beach, Schaeferrneyer stated that access was in place, was well "signed" and away from the construction zone. Simutis also inquired about the Ennis lease. Gates responded that the ball was now in the city's court. Finally, Simutis stated that she had been attending the Seward Enhancement Association's meetings as Council's representative. Currently SEA is putting together a video about Se\Nard and a flyer listing sixty-one free things to do in Seward. GIESELER asked why the Charter Comnittee had not yet reported to Council. Simutis stated that she had approached the attorney concerning the Charter Comnittee, but he had not yet passed any infonnation on to the conrnittee. Gieseler reported that the post office boxes and stamp vending machines have arrived. He also noted that he had written a letter to General Telephone asking that pay phones be placed at the Railroad Dock and the Ferry Dock. Gieseler stated that he is working with the Postmaster to devise a commeIIDrative cancellation stamp for the Salrmn Derby. Finally, Gieseler noted that the first community news on cable television had been broadcast earlier that day. He thanked John Burckhardt and Seward Cab levis ion for sponsoring the program. XVI. CITIZENS' DISCUSSION: BRUCE TRYGSTAD, 319 Second Avenue, noted that anyone wishing membership in the World Trade Conrnission could purchase one for $250. He also stated that the city should get full value for its leases and should retain control over its leased properties. ( CSEl54895 ] 152 PAGE 152 REGULAR MEETING - JULY 25, 1988 VOLUME 23 JIM PRUITT, Maple Street, Forest Acres, stated that he was still in negotiations with the city on his lease and hoped to have a signed lease by August 8. He also urged the Council to consider reinstating the Harbor Corrmission. Pruitt suggested that the city actively engage in a bottanfish campaign. XVII. COUNCIL AND AIMIN. RESPONSE TO CITIZENS I CCM1ENl'S: NOIL stated that the World Trade Conmission had an office in Anchorage and was part of a worldwide network. XVIII. ADJOURNMENl' : The meeting was adjourned at 9:15 p.m. C '~. J':d~' Of ~~0~ " " ,.1>0 c>:~ r.~... :~ .""".,.... .. SE At ~E' ~;h-& . Giese er May PAGE 152 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 I. CAlL TO ORDER: The August 8, 1988, regular meeting of the Seward City Council was called to order at 7: 32 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnernber Hilton led the pledge of allegiance to the flag. III. ROIL CAlL: Present were: Mayor Gieseler and Councilrnernbers Dun- ham, Hilton, Meehan, Noll, O'Brien and SiI!lltis Present also: Interim City Manager Schaefermeyer, Ci- ( CSE 154696 ] I I I PAGE 153 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 ty Attorney Arvidson, Harbonnaster Singleton, Finance Director Peirson, Engineering & Utilities Manager Diener, Administrative Assistant Martin, Port Marketing Director Gates, Police Chief Bencardino, Parks & Recreation Director Yanez and City Clerk Murphy IV. APPROVAL OF MINUTES: HILTON mVED TO APPROVE THE JULY 25, 1988, MINUTES AS vJRITIEN; THE MOTION WAS SECONDED BY NOlL AND CARRIED UNANIMlUS- LY. V. APPROVAL OF REGULAR MEETING AGENDA: DUNHAM requested the addition of "Unfinished Business" Item No. "A" - Discussion of the Battery Clean-up Shipment (B & R Envirornnental lease). GIESELER requested the addition of "New Business" Item No. "A" - Trade Board Appointment. SCHAEFERMEYER noted that he would be adding three items to the Consent Calendar at the appropriate time. MEEHAN MlVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY oolL AND CARRIED UNANIMOUS- LY. GIESELER MlVED TO MEET IN EXECUTIVE SESSION :IM-1EDIATE- LY FOI.J1MING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS ON-GOING LITIGATION; THE MlTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Jonathan Sewall was not present and no report was given. VII. CITIZENS' CCM1ENl'S ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: SCHAEFERMEYER requested the addition of three items (No. 11, 12 and 13) to the Consent Calendar, noting that Council had been copied with meIIDranda supporting the items. MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI- MouSLy. The following actions were taken: 153 ( C Sf 154897 ) 5. Resolution No. 88-098, authorizing encroachment into the public Right-of-Way by the New Seward Hotel, was approved; DAMAGES: 6. The city manager was authorized to negotiate a settlement for an armunt not to exceed $250.00 with Robert E. Habben for alleged damage to a 1982 Mazda Pickup Truck; 154 STREETS/CON- 3\3/ RESO: PURCHASING/RESO: SMIC/RESO: TAXES/RESO: ENCROACHMENTS/ RESO: CLAIMS FOR LAUBNER ADD: PERSONNEL/LIT: LOBBYIST/CON-II&' : SMIC/CON- 305: SMIC (UtU) /CON- 305: CON- 2i1): PRISON/CON-.3'O~ PAGE 154 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 1. Resolution No. 88-094, authorizing the city manager to sign a joint agency memorandum of understanding for Exit Glacier Road, was approved; 2. Resolution No. 88-095 , authorizing the purchase of corrq:>Uter equipment for the Ccmmmity Development Department and waiving fonnal bid procedures, was approved; 3. Resolution No. 88-096, requiring that all major facilities, property corners, utilities and roadways within the Seward Marine Industrial Center be identified by city-designated coordinates, was approved; 4. Resolution No. 88-097, amending a prior resolu- tion of Council which authorized city participation in the fish tax credit program on behalf of Seward Marine Services, was approved; 7. The Council recommended Borough approval of a proposed replat of Block 11, Laubner Addition, as requested by Real Daigle; 8. The Council ratified the court-ordered back pay settlement to Alvin Lakey; 9. Modification No. 6 to the Dawson and Associates contract for lobbying services was approved; 10. Council confirmed the award of a contract to Afognak for the repair of the Seward Marine Industrial Center sewer outfall in an aIOOunt not to exceed $18,800 and authorized payment of same; 11. The Council authorized a purchase order to Wince Corthell Bryson in the aIIDlIDt of $5,712.00 to design installa- tion of a sewer grinder for the SMIC Sewage Treatment Facility; 12. Change order No. 1 to the Construction & Rigging contract in an aIIDunt not to exceed $14,437.50 to provide a bumper for the Shiplift was approved; and 13. Council authorized a purchase order to Swede's Painting in the aIIDunt of $12,350 for remedial painting at the Spring Creek Correctional Center. ( CSE 154896 1 I I I PAGE 155 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 IX. PUBLIC HEARINGS: None X. PRESENTATIONS WITH PRIOR OOTlCE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AlASKA, AMENDING SECTION 10-21(C) OF THE CITY CODE, AUTHORIZED INVES'IMENTS. Notice of public hearing as posted and published as required by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. HILTON ~lOVED TO ENACT ORDINANCE 00. 608; THE MlTION WAS SECONDED BY DUNHAM. In response to a question from O'Brien, Peirson stated that this ordinance would not affect the manner in which the city is currently investing city funds. THE QUESTION WAS CAlLED AND THE ORDINANCE WAS ENACTED BY UNANIMOUS VOTE OF COUNCIL. C. Resolutions: None XII. UNFINISHED BUSINESS: A. DUNHAM stated that in the past two weeks several people had come to her and asked that IIDre thought be given to hazardous waste shipped through the city. She added that the city should be getting its "fair share" from those shipping hazardous waste and suggested that the tariff for such shipments be set at a higher rate than other goods. In addition, Dunham stated that the storage area for this material should be secured and should be located, preferably, in the Marine Industrial Center. Finally, Dunham stated that this lease should not have 1 SS FINANCE/ORD: RE- ( CSEl54899 ] 156 PAGE 156 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 been approved on the Consent Calendar, but should have been discussed as part of the regular agenda. SCHAEFERMEYER stated that he had seriously studied this proposal before responding to Alaska Cargo Transport and B & R Environmental requests to ship the battery clean-up material through the Port of Seward. He stated that this is an EPA project funded through a federal clean-up program and inspected every step of the way by the Feds. Schaefermeyer noted that ACT had originally approached the Alaska Railroad about shipping this cargo over the Railroad Dock, but had been denied use of the Dock. ARR has prohibited shipment of hazardous waste over the Seward Dock, not for any safety reasons, but because it is IIDre profitable for the ARR to handle the waste through Whittier where it is off-loaded onto the hydro train. Schaefermeyer further noted that this is a short tenn (not to exceed four rmnths) lease. He added that the material was primarily lead- contaminated soil containing very little PCB contamination. Schaefermeyer also read aloud a letter from ACT concerning the materials and assuring the city that every precaution was being taken to insure the safe transport of the materials through Seward. MEEHAN stated that he, too, had received calls from local people concerned about this lease. He agreed that it should have been presented as a regular agenda item and he suggested that the city consider a special tariff for hazardous substances. Schaefermeyer responded that ARR has made consider- able effort to steer revenue away fraIl the Port of Seward and suggested that the Council continue to encourage all fonns of cargo, if it is safely handled, over the city's docks. GIESELER stated that the city had acted prudently and wisely in entering into this agreement with B & R Envirormmtal. However, he agreed that this item should have appeared on the regular meeting agenda so that the facts which had been present- ed at tonight's meeting could have been set forth earlier. O'BRIEN stated that he was opposed to the transport of any hazardous substances through the city of Seward and stated that he would vote against any such action to came before the Council. NOll. stated that although this item had appeared on the Consent Calendar, he had asked questions about it at the time and had been told in open meeting that this was an EPA sponsored project. He corrmended the administration for the way it had handled the agreement and the caustic criticism which had been forthcoming. He cautioned against a special tariff for hazardous materials in an attempt to get "IIDre of the pie". XIII. NEW BUSINESS: r C SE 154900 ) I I I IS7 PAGE 157 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 A. Gieseler noted that Bill Walker had submitted his TRADE BOARD (Appt) : resignation from the Trade Board. He nominated Rhonda Anderson to fill the remainder of his tenn on the Board. THERE WAS NO OBJECTION FRCM THE COUNCIL, AND RHONDA ANDERSON HAS APPOINTED TO SERVE ON THE TRADE BOARD UNTIL NOVEM- BER 1988. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER reminded the Council that reservations for the Trade Fair in Seoul must be made by September 1 and stated that he would be asking the Council to indicate the size of the Seward delegation at the next meeting (August 22). SCHAEFERMEYER reminded the Council of the work session scheduled for 12:00 Noon, Tuesday, August 9. SGT. DAVE BROSSOW, briefly outlined the Drug Abuse Resistance Education (DARE) program which the Seward Police Department will be initiating this school year. The program focuses on Fourth, Fifth and Sixth grades and has been rated the IIDst effective program available by those cities and schools which have taken advantage of it. Brossow showed a short video about the program and asked for the Council's support. In response to a question frail O'Brien, Bencardino stated that the program would cost about $10,000 and that the funds were being taken frail the Police Department budget. He added that he is looking for grant funds to help offset the cost. O'Brien and Meehan both expressed their support for the program, and Noll asked that Cab levis ion play the video later in the week so that those not watching the Council meeting might have a chance to see it. XV. COUNCIL DISCUSSION: MEEHAN noted a letter which the Council had received concerning the need for additional dredging in the Small Boat Harbor. Singleton stated that he would look into this. Meehan also asked about the abandoned boat near the grid. Singleton stated that his crew is rermving the boat "piece by piece" as time allows. NOIL suggested that a sympathy card be sent to the Holmstrom family and to former Governor Hamrond following the accidental death of three rrernbers of the crew filming the Hamrond television series. Gieseler stated that this had already been accomplished. GIESElER noted that the Council had interviewed one city manager finalist earlier in the day and would interview a second finalist next week. He stated that the Council hoped to have a new manager "on board" by October 1. ( CSE 154901 ] ~_58 PAGE 158 REGULAR MEETING - AUGUST 8, 1988 VOLUME 23 XVI. CITIZENS' DISCUSSION: TCM STAUDENMAIER, Eagle River, stated that he had submitted an application for an initiative petition to the City Clerk on July 25 and that the Clerk had denied the petition and had refused to put the issue on the ballot. He stated that he was prepared to proceed in court to give the people the right to vote on this initiative. In addition, he stated that he intend- ed to direct the political destruction of the three members of Council nnming for re-election as well as the political de- struction of the other four through the recall process. Staud- erunaier also stated that he would see that the city clerk was replaced by a clerk who would certify the petition. Finally, he stated that he intended to petition the APUC to force those residing north of the city limits to purchase power from Chugach Electric, not the city of Seward. DUNHAM stated that she did not like to be threatened and encouraged Staudenmaier to "go for it" if he wished to have her recalled. NOll. stated that he would be willing to debate the merits of a specific sale, but was not willing to sell the city's utility just because he (Stauderunaier) thought the city should. DON CRIPPS, 426 Second Avenue, stated that he appreci- ated the Council and its efforts to do what is in the best interest of the conmmity. He stated that it was hard for him to understand why an Eagle River resident wants to become involved in a city of Seward issue. He added that he had read the Clerk's response to the Staudenmaier petition, and, while he had "a few problems with it", he felt the Council was working for the best interests of the city. XVII. COUNCIL AND AlliIN. RESPONSE TO CITIZENS' CCM-1ENl'S: None XVIII . ADJOURNMENT : The meeting was adjourned at 9:10 p.m., and, after a short recess, the Council reconvened in Executive Session to discuss on-going litigation. ~c te#'~ , Ma . Giese er ( CSE 154902 ) I I I 1 !)q PAGE 159 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 I. CAlL TO ORDER: The August 22, 1988, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnernber Meehan led the pledge of allegiance to the flag. III. ROLL CAlL: Present were: Mayor Gieseler and Councilrnernbers Dun- ham, Meehan, Noll, O'Brien and Simutis (Hilton arrived at 7:44 p.m.) Present also: Interim City Manager Schaefermeyer, Ci- ty Attorney Arvidson, Engineering and Utilities Manager Diener, Administra- tive Assistant Martin, Port Marketing Director Gates, Finance Director Peirson, Deputy Finance Director Gifford, Parks and Recreation Director Yanez, Fire Chief Gage, Hospital Administrator Campbell, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: SIMUrIS MlVED TO APPROVE THE AUGUST 8, 1988, MINlITES AS WRITIEN; THE MOTION WAS SECONDED BY NOLL AND CARRIED UNANI- MlUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: GIESELER MlVED TO MEET IN EXECUTIVE SESSION IMMEDIATE- LY FOLLCMLNG THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS CITY ATTORNEY AND CITY MANAGER AFFAIRS; THE MJrION WAS SECONDED BY 0' BRIEN AND CARRIED UNANIMOUSLY. Schaefermeyer noted that the following five items would be addressed under "City Manager Reports": 1. Alaska Railroad Board vacancy; 2. Status of the Senior/Carmunity Center; 3. Status of current lease negotiations; 4. Sales Tax Report; and 5. School Funding Proposition. MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMlUSLY. r C$1:154903 1 160 C.ATTY: C.ATTY: C.ATTY: CON- 2\ ~ : PUBLIC HEARINGS: (Pruitt lease) PUBLIC HEARINGS: (Daigle Land Trade) PAGE 160 REGULAR MEETING - AUGUST 22, 1988 VOIllME 23 VI. BOROUGH ASSEMBLY REPORT: No report was given. VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED: THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI- MlUSLY. The following actions were taken: 1. August 1, 1988, invoice from Wohlforth, Flint & Gruening for legal services totalling $76.75 was approved for payment; 2. May 1988 invoice from HTGP&B for legal services totalling $33,178.61 was approved for payment; 3. June 1988 invoice from HTGP&B for legal services totalling $25,259.56 was approved for payment; and 4. Change Order No. 5 to the Underwater/Swalling contract for shiplift civil work and utilities, increasing the total contract aIIDunt by $23,522, was noted for infonnation. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed long term lease of a H.76 acre unsurveyed parcel within USS 4827, located within the Seward Marine Industrial Center, to James Pruitt, dba Seward Ships Chandlery, was noted and the public hearing was opened. WIILARD DUNHAM, Forest Acres, spoke in favor of the proposed lease. No one else appeared in order to be heard and the public hearing was closed. B. Notice of public hearing as posted and published as required by law regarding the proposed land trade between the city and Real Daigle was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR OOTlCE ONLY: None XI. ORDINANCES AND RESOLUTIONS: 1 ( CSE154904 I I I PAGE 161 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING A LEASE AGREE- MEN!' WITH JAMES PRUITT, DBA SEWARD SHIPS CHANDLERY. ooLL MOVED TO APPROVE RESOLUTION 00. 88-084; THE MarION WAS SECONDED BY DUNHAM. NOTE: Hilton arrived just following the IIDtion and participated in the remainder of the meeting. Gates briefly outlined the major lease provisions. Meehan stated that he was uncomfortable with the lease cap, noting that he was certain Pruitt would build a successful business at SMIC, thus increasing the value of the property. The lease cap would bar future Councils from getting fair market value of the property. In response to a question from O'Brien, Arvidson stated that, should Pruitt fail to perform as required under the lease, necessitating termination of the lease by the city, the city could reIIDve any improvements at Pruitt's expense. Noll thanked Pruitt and the administration for corning to an agreement on the terms of the lease. He asked to be kept informed of changes in the operating costs at the shiplift, including justification for same. In response to a question from Dunham, Gates stated that charge for depreciation of the shiplift had not been included in the lease. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMOUS VOTE OF THE COUNCIL. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING TIlE TRADE OF 161 SMIC/RE- 0'/-.3 / RESO: (Pruitt Lease) LAUBNER ADD/DEEDS & ESMTS/RESO: (Daigle Land Trade) ( CSt 154905 ) 162 DOCKS & HARBORS/ RESO: (Downtown Conceptual Wtr- frnt Plan) PAGE 162 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 REAL PROPERTY WITIIIN BLOCK 11 , IAUBNER ADDITION, BE'lWEEN THE CITY OF SEWARD AND MR. REAL DAIGLE. SIMUrIS MlVED TO APPROVE RESOLUTION NO. 88-099; THE MarION WAS SECONDED BY DUNHAM. Hilton requested an outline of the potential advan- tages and disadvantages to the city should the land trade go forward. Martin explained that he had been working with Daigle for the past 18 rmnths to come to an agreement on a development plan which \oIOuld be an asset to the canmmity and would not conflict with the adjacent park area. He noted that the current plan, which had already been granted a conditional use permit by the Planning Canrnission, called for an 8-unit "Planned Unit Development" consisting of two single-unit structures and three 2-unit structures. He noted that a condition of the land trade before the Council was approval of a replat of the property by the Borough Assembly. Martin also noted that the subdivision agreement which Daigle would be required to execute with the city would require bonding to assure development of the required utilities. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMlUS VOTE OF THE COUNCIL. 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ACCEPTING THE CONCEPlUAL DEVELOPMENT PLAN FOR THE DOWNI'OtJN SEWARD WATERFRONT FACILITIES. MEEHAN MlVED TO APPROVE RESOLUTION 00. 88-100; THE MOTION \.JAS SECONDED BY HILTON. Diener stated that a study to detennine the downtown waterfront development needs had been jointly corrmissioned by the Alaska Marine Highway System (AMHS), the Institute of Marine Sciences (IMS) and the city of Seward. The study was now complete and the final report was on file in the Clerk's Office. He noted that AMHS and IMS had asked that the City Council review and recommend either acceptance or rejection of the conceptual development plan as presented in the report. In response to a question from O'Brien, Diener stated that AMHS had some funding available (federal highway dollars), IMS is pursuing funding, and the city would continue to pursue funding for its portion. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMOUS VOTE OF COUNCIL. ( C SE 15490& ) I I I PAGE 163 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 XII. UNFINISHED BUSINESS: A. CAPTIAL BUDGET: Gieseler stated that he had re- quested placement of this item on the agenda. He noted that when Council approved the city's operating budgets, the administra- tion had stated that a capital budget -would be brought to the Council at a later date. He asked for a status report. Schaefermeyer stated that he and his department heads were in the process at this time of collecting and reviewing requests for capital improvements. He noted that this is a particularly busy time of year for both the Finance and the Engineering departments, and this had made it difficult to devote large blocks of time to develop a capital budget. Schaeferrneyer stated that he would present a five-year capital budget plan to the Council on September 26. XIII. NEW BUSINESS: A. SIMUrIS MlVED TO AUTHORIZE 1HE CITY MANAGER TO SIGN AMENIl1ENT NO. 1 TO THE CONTRACTUAL AGREflvIENT TRANSFERRING CONTROL OF 'IELEVISION TRANSIATOR STATION LICENSE K09DL; THE MarION WAS SECONDED BY MEEHAN. In response to a question from Noll, Peirson stated that, under the terms of the agreement, the city pays KRXA for those accounts actually collected, less a 12%% administrative fee which is retained by the city. He noted that collections have averaged $1,000 per rmnth. He added that the original agreement had a 10-year tenn. Simutis stated that the Council had been very clear in its intention to cease billing and collecting television fees at the end of the first year of the agreement, and KRXA had, from the beginning, stated that it would make efforts toward estab- lishing its own collection system. Peirson replied that KRXA officials felt that the economics of an independent collection system were marginal, at best. He noted that the rronth-end closing procedure took approximately 15 minutes of city staff time per rmnth. Hilton stated that the city should receive 12%% of What was actually billed, not collected. Peirson replied that this would probably require a contract amendment. Hilton added that he was opposed to the amendrrent to extend city collection of television fees since it was understood from the begirming that the city intended to get out of the collection business. NOLL MlVED TO AMEND THE MAIN MOTION BY ADDING THE FOILCWING TO THE CONTRACT AMENIl1ENT: THIS AMENIl1ENT WIlL TERMINATE AUGUST 31, 1989, AND MAY BE CONTINUED THEREAFTER ONLY BY MUTUAL CONSENT AFTER PUBLIC HEARING; lh~ CON- 28'0 : ( CSE154907 1 164 STREETS/SMIC: (Paving bid declared non- responsive) C.MANAGER: (Em- plymt agrmt. w/M.Royle to be negotiated) PAGE 164 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMOUSLY. THE QUESTION WAS CAlLED ON THE MAIN MarION AND THE MlTION CARRIED WITH SIX "YES" VOTES AND HILTON VOTING "NO". B. SIMUTIS MOVED TO DECIARE THE BID SUBMITTED BY WILDER CONSTRUCTION, INC., TO BE ooN-RESPONSlVE AND AUTHORIZE THE CITY MANAGER TO NEGOTIATE A PAVING CONTRACT WITH THE FIRM SELECTED FOR PAVING BY CHUGACH FOREST PRODUCTS, INC., TO PROVIDE THE OVERLAY OF THE NASH ROAD EXTENSION; THE MarION WAS SECONDED BY HILTON. Diener explained that the city had requested bids to pave the Nash Road Extension in the SMIC. The aIIDunt of paving was so small that IIDbilization costs from Anchorage made it unattractive to contractors unless they had other jobs which could be performed in the same time frame in Seward. The only responder to the RFP was Wilder Construction, Inc., and its bid was contingent upon award of a Chugach Forest Products bid for asphalt paving for the sawnill. Since Wilder did not receive the Chugach contract, the Wilder bid for city paving was non- responsive. Diener stated that once Chugach awards a contract for paving, it would be in the best interest of the city to negotiate with the paving contractor to perform those tasks in the city's original RFP. He added that, once a contract is negotiated, he would bring it back to the Council for ratifica- tion. THE QUESTION WAS CAlLED AND THE MJI'ION CARRIED BY UNANIMOUS VCITE OF COUNCIL. C. SIMUrIS MlVED TO AUTHORIZE THE MAYOR AND VICE MAYOR TO NEGOTIATE AN EMPLOYMENT AGREfl1ENl' WITH MAX ROYLE; THE MarrON WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. Gieseler noted that Mr. Royle intended to report for work on October 1. XIV. CITY MANAGER REPORTS: AlASKA RAIlROAD BOARD: Schaefermeyer noted that the Alaska Railroad Board seat held by Lewis Dickinson was up for replacement on October 3. He stated that Dale Lindsey had already submitted an application to the Govemor. However, since the Mayor had repeatedly promised the Governor that the city would submit IIDre than one name to him for consideration for the Board seat, he (Schaefermeyer) suggested that the Council instruct the Clerk to advertise a request for letters of interest from IIEIIibers of the cOlIIlllUlity who had a desire to serve on the Board. There was no objection from the CounciL SENIOR/cnMUNITY CENTER UPDATE: Diener stated that architectural plans are now available and have been submitted to the State Fire Marshall for review and approval. Diener pre- dicted that construction would start within the next two weeks with corrq:>letion scheduled for January or February, 1989. l CSE154908 ] I I I 16S PAGE 165 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 STATUS OF LEASE NEGOIIATIONS: Gates stated that he hoped to have the Inlet Salrmn lease and an amendment to the Shoreside Petroleum lease ready for public hearing on September 12. He stated that he is also in the midst of negotiations with Resurrection Bay Storage Corrq:>any for a mini warehouse storage facility at SMIC and with another corrq:>any wanting to lease an area adjacent to the Shoreside Petroleum site for crab pot storage. In addition, he noted that another seafood processor had approached the city about a large investment at SMIC. Gates praised Arvidson for his part in the Pruitt lease negotiations. Gieseler stated that it was now time to IIDve away from incentive leasing and begin getting fair market value for leased property in the SMIC. He stated that he did not want to give new busi- nesses an edge over existing businesses. Gates stated that, when the Inlet Salrmn lease is "nailed down", the city should IIDve towards IIDre traditional lease arrangements. Dunham noted that Fourth Avenue is "hurting" and the city must preserve our Downtown. She also stated that the city should encourage the developrrEnt of a restaurant on the other side of the Bay to accormndate the recent industrial development at SMIC. TAXABLE SALES REPORT: Peirson noted that taxable sales are up 8.170 for the second quarter of this year. SCHOOL BOND ISSUE: Schaefermeyer distributed a fact sheet on the school bond issue which would appear on the Borough ballot in October. He stated that it would take a cOllIIlUIlity wide effort to insure passage of the school bond, including "getting out the vote" in Seward and lobbying other conmmities in the Borough to vote in favor of the bond. XV. COUNCIL DISCUSSION: DUNHAM noted that Homer and Soldotna have gone on record objecting to Nikiski' s plan to secede from the Borough and asked if the city of Seward should consider taking a similar stance. Schaefermeyer stated that the city's focus at this time must be on selling our school. NOll. asked for an update on the Borough's Sales Tax Review Corrmittee. Peirson stated that the corrmittee had last met some two months ago and had, at that time, assembled a list of reccmrendations to be presented to the Borough Assembly after final ratification by the corrmittee. He noted that the corrmit- tee voted not to exempt necessities from sales tax, but noted that, prior to approval of these reccmrendations by the Borough, a public hearing would be conducted by the Assembly, and Noll or others could express their concerns at that time. NOll. also stated that he had been informed that the city coulaexpect lots of pipe to come through the port of Seward in the next few rmnths. ( C Sf 154909 ) 166 PAGE 166 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 NOlL stated that he supported Willard Dunham's point of view concerning the Grain Tenninal. He noted that it was too early to walk 8Jilay from this investment considering the low cost of "IIDthballing" it. He stated that the Alaska grain industry is not dead and now is not the time to sell the grainery at ten cents on the dollar. NOlL stated that he had brought a Korean official to Seward last week and had arranged for dirmer with the Mayor, the Dunharns, Schaefermeyer, Gates and others. He noted that this was a "semi-official" visit and there had been discussions about LNG, coal and agriculture. NOlL thanked those citizens who had contacted him concerning Tom Staudenmeier. He said that "folks are not buying his line", adding that the city has a reliable utility and is not ready to part with it. GIESElER noted that he had received a card from former Governor Hamoond thanking the Council for its expressions of sympathy following the loss of rrernbers of his filming crew. He also stated that he had received a telephone call from Mark Beals concerning the borough/ city rrutual aid agreement for emergency medical services. Murphy noted that there is a current agreement on file. Gieseler also noted that the state primary is scheduled for August 23, with the polls open from 7:00 a.m. until 8:00 p.m. He urged everyone to vote. Finally, Gieseler congratulated the Chamber of Conmerce on this year's SalIIDn Derby. XVI. CITIZENS I DISCUSSION: WIlLARD DUNHAM, Alder and DiaIIDnd Streets, Forest Acres, stated that he did not realize that one letter to Rod Swopes made him "Seward Officials". He explained that his letter had simply asked that the administration reconsider surplussing the grain tenninal if the state was interested in some sort of agreement or joint venture with the Koreans. Dunham also stated that, currently, there are no laymen on the Governor's Scientific Connrl.ttee. He stated that we need someone from Seward on that Board in order to put fo:rward the expansion needs of the Institute of Marine Science. XVII. COUNCIL AND ArMIN. RESPONSE TO CITIZENS' CCM1ENTS: MEEHAN stated that for several years the Seward Grain Terminal had been the highest priority of the Alaska Stock Growers Association. He noted that IIDst of the state's farmers reside on the Kenai Peninsula and need grain, lIDst of which is now imported from outside, adding that failure of the Alaska Barley Project had been a real blow to Peninsula farmers. NOlL stated that the Koreans are not ready to become involved in Alaskan agriculture at this time, but wish to ( CSE154910 1 I I I 1 h7 PAGE 167 REGULAR MEETING - AUGUST 22, 1988 VOLUME 23 develop policy and settle on some cormnn interests with the Alaskan governrrent. GIESELER stated that he would be travelling to Anchor- age August 31 to attend a reception for the new Consul General of Japan and would go from there to Kotzebue September 1-2 to attend a meeting of the Alaska Conference of Mayors. XVIII . ADJOURNMENT : The meeting was adjourned at 9:35 p.m. and, after a short recess, the Council reconvened in Executive Session to discuss city attorney and city manager matters. h~~. Ha . Gieseler Mayor _'i~ ..: ~'IEi\L:~ . ' . "~' ..t.'''~.... .- ~1. " '1f.'., .,,~ .... % n. ' , "',;'." 'I \:~ .' .L '" ~\J'). '. oS "A .t _~ .. '~~%!i 'o'i' '~~~;l#; . . :><':rro:1'l:rrtrf. - , . PAGE 167 REGULAR MEETING - SEPTEMBER 12, 1988 VOLUME 23 I. CAlL TO ORDER: The September 12, 1988, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM:lNY: Councilmernber Dunham led the pledge of allegiance to the flag. III. ROLL CAlL: Present were: Mayor Gieseler and CouncilnErnbers Dun- ham, Hilton, Meehan, Noll, O'Brien and SiIIlltis Present also: Interim City Manager Schaefermeyer, Ci- ( CSE154911 ] 168 GRANTS/RESO: (Muni. Asstnc) TAXES/RESO: PURCHASING: SEW. IND. PARK/ MARINA SUB: PAGE 168 REGULAR MEETING - SEPl'EMBER 12, 1988 VOLUME 23 ty Attorney Arvidson, Deputy Finance Director Gifford, Engineering & Util- ities Manager Diener, Port Marketing Director Gates, Parks and Recreation Director Yanez, Administrative Assis- tant Martin and City Clerk Murphy IV. APPROVAL OF MINUTES: HILTON MlVED TO APPROVE THE AUGUST 22, 1988, MINUTES AS WRITIEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMlUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Gieseler requested the addition of an item to "New Business" - Advisory Survey. SIMUrIS MlVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI- MlUSLY. VI. BOROUGH ASSF11BLY REPORT: Kenai Peninsula Borough Assembly President Sewall was not present and no report was given. VII. CITIZENS' CCl1MENl'S ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: SIMUrIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI- MOuSLy. The following actions were taken: 1. Resolution No. 88-104, requesting nnmicipal assistance funding from the state of Alaska, was approved; 2. Resolution No. 88-105, supporting legislation providing for a IIDre equitable distribution of the fisheries business tax revenue refunded by the state to local governments, was approved; 3. A purchase order to Aurora Industries Supply, Inc., for an aIIDunt NTE $5,971.13, to furnish salt and calcium chloride for winter street maintenance, was approved; 4. Request for authorization for administration to finalize the preliminary plat of the Seward Industrial Park into Block 2, Marina Subdivision, was approved; ( C Sf 154912 1 I I I PAGE 169 REGULAR MEETING - SEPTEMBER 12, 1988 VOLUME 23 1 r.q PROCLAMATION: 5. Proclamation of Mayor designating September 12, 1988, to be JUST SAY NO DAY in the city of Seward was noted for infonnation; 6. Change Orders to the Sanwhan contract for prison CON- IS"l : construction as follows were noted for infonnation: #203 - To provide 3 additional replacement glycol hand pumps, freight and labor (+$4,166); 11204 - Grout P.C. panel to concreted column, revise ceiling drawing, delete doors 1-173 and 1-174, and retain doors 1-70 and 1-106 as per original drawings (+$6,872); 11205 - Install additional structural work for snowloads and wind uplift for proper perfonnance of the metal roofing (+$129,942); 11206 - Change the ceiling in room 1-009 from acoustic tiles type 3 to acoustic tiles type 2 (+$5,001); 11207 - Modification of the handrail at door 4-209B (+$1300); 11208 - Revise drainage by adding swales along service-road and in the corporation yard grade (+$2,730); 11209 - Reduce the height of door and jamb at door 1-218A and 1-218B 2 inches to clear the structural frame and fireproofing (+$2,372); and #210 - Provide a credit for the deletion of the fire sprinkler system boost pumps in. building 115 (-$64,924); and 7. Request for Council authorization to proceed with preparation of a tennination of lease agreement RE-013 (Harold Jormson) and preparation of a new lease agreement for the Oldow/Scoby partnership (A-Frame, corner of South Harbor and Fourth Avenue) was approved. IX. PUBLIC HEARINGS: A. Public hearing regarding the proposed Inlet Salmon lease was cancelled. RE-(Xo;4'MARINA SUB: B. Notice of public hearing as posted and published PUBLIC HEARINGS: as required by law regarding the proposed amendment to lease with Shoreside Petroleum, Inc., to relocate the lease site and site of first refusal was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Public hearing regarding the proposed Gateway property sale to Clint Hall was cancelled. t CSE 154913 1 170 PAGE 170 REGULAR MEETING - SEPTEMBER 12, 1988 VOLill1E 23 X. PRESENTATIONS WITH PRIOR NarlCE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: RESO/SMIC/RE- Of/+- 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING A LEASE AMENfMENl' TO LEASE CONTRACT 00. RE-069 WITH SHORESIDE PETROLEUM, INC., REGARDING LO- CATION OF THE LEASE SITE. MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-101; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY. ARR BOARD/RESO: 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, REQUESTING THAT THE GOVERIDR APPOINT A RESIDENI' OF THE CITY OF SEWARD TO THE AlASKA RAILROAD BOARD. O'BRIEN MlVED TO APPROVE RESOLUTION NO. 88-103; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: NEW BUSINESS: XIII. MARINA SUB/RE- TAXES: / A. September 7, 1988, memorandum from Martin regard- ing delinquent property and sales taxes owed by Dale Clemens, lessee of city Lots 1 and 2, Block 1, Marina Subdivision, was noted. Schaefermeyer stated that Clemens has now brought property taxes current; however, the borough is still showing a substantial sales tax delinquency. He stated that if sales taxes are not current by September 26, he will request Council authorization to proceed with a declaration that the lease is in default and begin proceedings to terminate the lease. ( CSE154914 1 I I I PAGE 171 REGULAR MEETING - SEPTEMBER 12, 1988 VOLUME 23 Schaefermeyer noted that three Small Boat Harbor businesses - Sailing, Inc.; Doc's Wharf; and The Landing - have not regis- tered with the borough to collect sales tax. In addition, Quest Charters' sales tax account is in arrears in the aIIDunt of $4,411.00. He stated that, barring objection from Cotmcil, he would infonn these businesses of their obligations regarding collecting, reporting and paying sales tax and would issue the city's first warning of possible default and tennination of their leases with the city. THERE WAS 00 OBJECTION FRCM THE COUNCIL. B. August 31, 1988, meIIDrandum regarding the pro- posed vacation of a portion of "D" street lying between Lot 6, Block 16, and Lot 1, Block 22, Federal Addition, was noted. Schaefermeyer stated that Don Ennis had requested vacation of the property. The request had been reviewed by the Seward Planning Ccmnission; however, the Ccmnission had voted on a 2-2 vote to deny this request. The Borough Planning Corrrnission had overturned the local Ccmnission' s decision and had voted to grant the request, contingent on review and possible action by the City Council. He recommended Council approval and noted that the vacation would proceed as requested unless the City Council voted to deny it, adding that no action by the Council within 30 days would be deemed "consent". O'Brien stated that he was reluctant to vote against an action of the local Planning Corrrnission and suggested that the Council take no action on this request. In response to a question from Hilton, Schaefermeyer stated that, following the vacation, all of the property would accrue to Ennis (at no cost) since he owned the property on either side of the subject right of way. No IIDtion was forthcoming from the Council. C. MEEHAN M:lVED TO REQUEST THAT THE MAYOR SEND A LETTER TO GOVERNOR COWPER URGING THAT THE STATE HOLD OFF ON ITS EFFORTS TO SURPLUS THE SEWARD GRAIN TERMINAL FOR A PERIOD OF AT LEAST ONE YEAR; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. (September 8, 1988, memorandun from the Trade Board recoornending this action was noted.) D. GIESELER MOVED TO ASK THE VOTERS TO PARTICIPATE IN AN ADVISORY SURVEY CONCERNING ALCOHOL-RElATED ISSUES DURING THE OCTOBER 4, 1988, MUNICIPAL ELECTION; THE MarION WAS SECONDED BY HILTON. Gieseler read aloud the proposed survey fonn and stated that he would like to find out how the voters feel about some proposed changes to the city's alcohol ordinance. Meehan stated that the proposed 2:00 a.m. closure of bars and liquor stores was great but should be boroughwide. He added that closing the bars in Seward earlier than those outside the city limits would encourage intoxicated patrons to attempt to drive 17J ROW VACATIONS/ FEDERAL ADDITION: SMIC (Grain Term) : ALCOHOL: ( CSE154915 1 172 PAGE 172 REGULAR MEETING - SEPTEMBER 12, 1988 VOLUME 23 out of town following the earlier closure. Gieseler agreed that the closure should be boroughwide, but stated that someone had to take the first step. He corrq:>ared this to the fireworks issue and noted that the city had "led the charge" for the borough's eventual banning of sale and possession of fireworks. In response to a question from Noll, Arvidson stated that there had been challenges to ordinances regulating adult entertainrrent (Survey Question No.4); however, some had been upheld by the courts. Hilton stated that he supported making the advisory survey available to local voters. He stated that 2:00 a.m. was late enough for the bars to be open and that 11: 00 a.m. was soon enough to open in the IIDrnings. He agreed with Gieseler that Seward needed to take the first step toward a boroughwide earlier closing. O'Brien stated that he supported the survey, noting that it was an opportunity to get a free look at what the conmmity wants without paying $20,000 for an independent study. Dunham agreed. THE QUESTION WAS CAlLED AND THE MlTION CARRIED UNANI- MlUSLY. XIV. CITY MANAGER REPORTS: GATES updated Council on the progress of the Inlet Salrmn lease negotiations. He stated that some concerns had arisen following signing of the lease, and these concerns had led to cancellation of the public hearing. The new plan called for Inlet SalIIDn to construct a fisheries dock at the bulkhead in exchange for free rent of uplands. VINCENI' GODDARD, representing Inlet Salrmn, residence address 30650 Boulder Court, Soldotna, stated that the new plan had many benefits. for the city of Seward. He stated that it would allow the city to better corrq:>ete with other ports for a delivery location for fishermen by adding sofre local corrq:>etition and enhancing support for the fishing corrmunity. GATES noted that the new lease would contain the Trade Board inspired provision requiring local processing of at least 80% of the fish bought. COUNCIL VOICED 00 OBJECTION TO PROCEEDING WITH LEASE NEGarIATIONS. GATES requested a work session to discuss the proposed transfer of the Coal Dock to the city. The Session was sched- uled for 7: 00 p. m., Tuesday, September 13, 1988. ( CSE154916 ) I I I 17~ PAGE 173 REGUlAR MEETING - SEPTEMBER 12, 1988 VOLUME 23 DIENER stated that the contractor had purchased a building permit for the Senior Center remodel. SCHAEFERMEYER stated that he intended to improvements to his office prior to Royle's arrival. NO OBJECTION FROM COUNCIL. XV. COUNCIL DISCUSSION: order some THERE WAS DUNHAM urged everyone to vote October 4. ooLL stated that the former Minister of Trade and Industry for South Korea had visited Seward the previous week- end. GIESELER urged voters to corrq:>lete the advisory survey on October 4. He also stated that the Seward, Nebraska, trip was scheduled to begin October 13 and urged anyone interested to contact Willard or Beverly Thmharn. GIESELER also noted that Max Royle would be "express mailing" his signed employment agreement to the city and would be starting to work October 3. He stated that the city would be sponsoring a no host "Meet the City Manager" party that evening at Ray's Restaurant. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: None XVIII . ADJOURNMENI' : The meeting was adjourned at 8:50 p.m. ::$~c-~..~v =E. Giese er or ,,.-,'''''',, (Ci tv" se;qt r''^~'~'~>> .<:Ie ,~ ~i:", '<C-, \~~~ ,\,,\, ,,-.{: ;;..~ ~ " \" ',~tJ:. ,~1..p ?>,,< . < '1IY<l ,0 .~' ~". ,.....*-, . 'L' . l ~J.',' A ' ( CSE154917 1 .~ ~"WiQ . ::., '. ..,Y", ..'" " -.... .. '..b-, ~~~ ~ """'1' .:A~,~ II ,; "".l.'" '--',' ,"" ,":~''''~ "', ..,~ "~cc;g~~i;;~" 174 PROCLAMATIONS: PAGE 174 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 I. CAlL TO ORDER: The September 26, 1988, regular meeting of the Seward City Council was called to order at 7: 30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnember O'Brien led the pledge of allegiance to the flag. III. ROLL CAlL: Present were: Mayor Gieseler and Councilrnembers Dun- ham, Hilton, Meehan, O'Brien and Simutis (Noll was excused) Present also: Interim City Manager Schaefermeyer, Ci- ty Attorney Arvidson, Administrative Assistant Martin, Port Marketing Director Gates, Police Chief Bencar- dino, PW Supervisor Ainsworth, Deputy Fire Chief Squires, Engineering and Utilities Manager Diener, Hospital Administrator Campbell, Finance Direc- tor Peirson and City Clerk Murphy SPECIAL ITEM: A. Gieseler presented Christopher Gardner with a proclamation designating September 26, 1988, as Chris Gardner Appreciation Day in recognition of his nomination and selection as State Firefighter of the Year. IV. APPROVAL OF MINUTES: MEEHAN MlVED TO APPROVE THE SEPTEMBER 12, 1988, MINUTES AS WRITIEN; THE MarION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGUlAR MEETING AGENDA: SCHAEFERMEYER requested the addition of Agenda Item No. XI(C) (2) - Proposed Resolution No. 88-108, appropriating funds to the SMIC North Dock Project. HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANI- MOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Sewall reported on the September 20, 1988, Assembly meeting. leSE 154918 1 I I I PAGE 175 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENl' CALENDAR: SCHAEFERMEYER requested the addition of two items to the consent calendar (Items No. 6 and 7 - See below). AMENDED ; MlUSLY. SIMlITIS MOVED TO APPROVE THE CONSENT CALENDAR AS THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI- The following actions were taken: 1. Septerrber 14, 1988, invoice from Wohlforth, Flint & Gruening for legal services totalling $1,532.54, was approved for payment; 2. September 11, 1988, Finance Department's list of accounts payable totalling $2,213,434.47, was approved for payment; 3. September 19 , 1988, memorandum from Diener requesting authorization to award a contract to Seward Construc- tion Services in the aIIDunt of $13,964, with a budgeted contin- gency amount of $1,400, for a total project aIIDunt of $15,364, for construction of a control building at the Seward Substation, was approved; 4. September 13 , 1988, memorandum from Peirson reccmrending approval of Change Order No. 1 to the Marathon Fuel petroleum supply contract to include an "economic price adjust- ment" clause allowing an increase or decrease in contractor's price based on changes in purchase price from the refiner was approved; 5. September 19 , 1988, memorandum from Martin regarding SMIC support activity and noting his letter to Carl Nonnan explaining the Conditional Use Penuit process necessary to construct and operate a restaurant in the Industrial Zone was noted for infonnation; 6. September 19 , 1988, memorandum from Diener recommending Council authorization to issue a purchase order to METCO, Inc., for 760 cu.yd. of winter sand at $11.40/cu.yd., for a total aIIDunt N'IE $8,664, was approved; and 7. Resolution No. 88-107, confinuing the appointment of B. Max Royle as City Manager, was approved. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed CITY LEASE of a 1:2.5 17S C.ATTY: ACCTS. PAYABLE; ELEC.DEPT/CON- (Control Bldg. - Substation) CON- 2~7-: PURCHASING: (Winter Sand) C.MANAGER/RESO: (Apt. M.Royle) 176 CIT. DISCUSSION: (K.Campbell - Protective Custody Costs) PAGE 176 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 acre parcel located at the North end of the Alaska Railroad Terminal Reserve in Seward from the Alaska Railroad Corporation for use as a utility pole storage yard was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR ooTICE ONLY: A. C. KEITH CAMPBElL, Seward General Hospital Administrator, residence address Forget-Me-Not Circle, Seward, addressed the Council concerning the state's protective custody statutes and increased hospital costs and liability stenrning from recent court decisions asserting that a municipality has an affinnative duty to take into custody persons incapacitated by alcohol in a public place and transport them to the nearest treatment facility. Campbell stated that, following the Busby decision, PC incarcerations in the local jail facility had decreased; however, admissions to the hospital had risen dramat- ically. He presented a cost analysis showing direct cost to the hospital of $32,000 during CY 1987. Campbell noted that the hospital bills individuals admitted under this new ruling, but rarely receives payment. He asked the Council's support to introduce a resolution to the Municipal League urging the state to either reimburse municipalities for the cost of enforcing the state statutes or allow municipalities to levy an excise tax on alcohol to defray the cost of alcohol abuse in the community. O'BRIEN asked if the hospital had any statistical information showing the time of day IIDst pc's are brought into the hospital, stating that earlier bar closings might help alleviate this problem. Campbell stated that he would research this and get back to the Council. GIESELER stated that, since the cost of admitting PC's was probably coming from the proceeds of the 1% sales tax which is passed on to the hospital, it would appear that the PC's are getting an unfair share of the benefit of the sales tax funds. Campbell noted that the dollar aIIDunt lost over the past 18 rmnths as a direct result of PC admissions 'WOuld have covered the cost of rnamrographic equipment which could serve 46% of the community's population. In response to a question from 0' BRIEN, Campbell stated that Seward General Hospital was probably impacted to a greater degree than hospitals in larger communities. He stated that PC's in Kenai/Soldotna are taken to Wildwood Correctional Facility where trained medics are on staff. Likewise, those in Anchorage and Fairbanks are taken to state jail facilities. He noted, however, that costs to these facilities had probably risen substantially. ARVIDSON noted that some communities had enacted ordinances requiring payment from those detained under the AS 47.37; however, collecting that payment was another matter. He ( CSE 154920 ) I I I 177 PAGE 177 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 stated that it was possible to attach the detainee's pennanent fund dividend, but cc:mmmities often find that they are ninth or tenth in line behind other creditors. GIESELER asked Campbell to work with the administra- tion in corrq:>osing a resolution to forward to AML for consid- eration in Noverroer. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF 'IHE CITY OF SEWARD, AIASKA, AMENDING THE CITY PERSON- NEL CODE BY RESTRUCTURING THE HOLIDAYS WITH PAY SCHEDULE FOR LIBRARY EMPLOYEES. SIMUrIS MlVED TO INTRODUCE PROPOSED ORDINANCE NO. 609; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. Public hearing was scheduled for October 10, 1988. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies having been made available to the ARR TERM. RESERVE/ public, Gieseler noted by title only a proposed resolution RESO: entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTIIORIZING THE LEASE OF lAND FRCM THE AIASKA RAILROAD CORPORATION FOR UTILITY POLE STORAGE. MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-106; THE MOTION WAS SECONDED BY DUNlW1. In response to a question from 0' BRIEN, Schaefermeyer stated that the lease rate had been detennined by appraisal. GIESELER asked if the administration had considered IIDving the poles to another location, such as city-awned property at SMIC. Diener noted that the cost of IIDving the poles at this time was greater than the lease. He added, however, that the city had agreed to a short-tenn (3-year) lease and would be seeking other storage options between now and the end of the lease tenn. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMJUS VOTE OF COUNCIL. (CSE154921 1 178 SMIC/BUDGETiRESO: (Apprp. funds to capital construction acct. ) PERSONNEL/WAlER- SEWER DEPT: (Auth. to add one FT emp.) PAGE 178 REGULAR MEETING - SEPTIMBER 26, 1988 VOLUME 23 2. Copies having been distributed Council and made available to the public, Gieseler title only a proposed resolution entitled: to the noted by A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROPRIATING FUNDS TO THE SMIC ooRTH DOCK CAPITAL PROJECT. Sll1UTIS MlVED TO APPROVE RESOLUTION NO. 88-108; THE MOTION WAS SECONDED BY HILTON. DIENER stated that the North Dock project had proceded with a minimum of problems with the contractor and he did not anticipate any claims as a result of the project. However, because of higher than anticipated steel prices, the contract work was awarded with little or no contingency. He stated that the city had anticipated using Nl'E 62,500 cu.yds of rock; so far 77 ,000 cu. yd. had been used. In addition, the city had antic- ipated using a substantial aroount of dredged material for fill. However, the material being dredged was found to be a very fine silt which was too unstable when wet to use as fill for this project. (Diener noted that this material would be utilized as fill in the uplands.) MEEHAN stated that the city should have been aware of the types of dredged materials found throughout that area, given the number of core samples taken during the Chris Berg litigation. Diener noted that this particular area was not in the samp Ie area. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIM:>US VOTE OF COUNCIL. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. GIESELER MlVED TO AUTHORIZE THE CITY MANAGER TO ADD A FIJU.-TIME PERMANENT POSITION TO THE WATER/SEWER UTILITY; THE MOTION WAS SECONDED BY SIMUrIS. In response to a question from MEEHAN, Schaefermeyer stated that he did not foresee any appreciable impact on either this year's or next year's budget, adding that projected reve- nues should offset the additional cost to the utility. In response to a question from O'BRIEN, he stated that the utility desperately needs another state-certified operator to act as back-up to the two current employees. He noted that many of the tasks perfonned by the W/S operators require the presence of two employees for safety reasons, and given the size of the utility, it was often impossible to corrq:>ly with this requirement. He added that there was also no back-up available to cover for an employee who was ill or on vacation. Schaefermeyer stated that the new employee would be hired as a trainee and would not ( CSE154922 ) I I I PAGE 179 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 receive full entry-level pay until he had received his state certification. THE QUESTION WAS CAlLED AND THE MOTION CARRIED WITH FIVE "YES" VOTES AND 0' BRIEN VarING "NO". XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that the negotiations with Inlet Salrmn have been concluded and the lease would be scheduled for public hearing on October 10. SCHAEFERMEYER noted that the Council had been provided a copy of the draft 3-year capital budget and requested a work session prior to the October 10 meeting, stating that he would like to have public hearing on October 10 and adoption on October 24. GIESELER SCHEDULED A PUBLIC HEARING TO BEGIN AT 7:00 P.K, TUESDAY, OCTOBER 4, 1988, IN THE DISTRICT COURT ROCM. SCHAEFERMEYER stated that he would like a second work session to review the city's options regarding the Gateway Subdivision. Gieseler asked that this session be scheduled following the October 10 meeting. SCHAEFERMEYER stated that, if there was no objection from the Council, the city was prepared to make an in-kind donation to Seward Friends of Education to cover printing and postage on a "postal patron" flyer endorsing the Seward School Proposition the group hoped to mail to all voters in the Bor- ough. He stated that total cost to the city should not exceed $5,000. Schaefermeyer noted that Seward Friends of Education had raised approximately $1700 through the local business comnunity. THERE WAS NO OBJECTION FRCM THE COUNCIL REGARDING THE IN-KIND DONATION. SCHAEFERMEYER thanked the staff for its support during his tenure as Interim City Manager. Gieseler, in turn, thanked Schaefermeyer and stated that he had done an admirable job over the past several months. XV. COUNCIL DISCUSSION: DUNHAM stated that the local dermcrats were sending letters to all area dermcrats urging them to vote for the school. She challenged the local republicans to do likewise. She noted that Chappell's article in the Daily News was a good one and corrq:>limented our local assembly representatives for making it possible for Nikiski to get its school. Finally, Dunham thanked Martin for his letter to Carl Nom concerning construction of a restaurant at SMIC, adding that she hoped to see one in operation by next year. GIESELER congratulated streets and alleys looked great. go to the polls on October 4. Ainsworth, stating that the He also urged area voters to ( CSE 154923 179 ) 180 PAGE 180 REGULAR MEETING - SEPTEMBER 26, 1988 VOLUME 23 XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENTS: None XVIII. ADJOURN1ENT : The meeting was adjourned at 8:55 p.m. S. y, Q1C City , ' Ie r )$E~ (e~tY,,~fti""~-9 ' o ~ ,,,0 ~....:':~;, "~,,, '~'.v. :'.. _._ :0'. \ .~. S ~.~ L y> ' "~G '\. : \,U' "",~E" 1, '\.~~,.",.. '01'-1 ',..,' <::Jot- '~~~~ Harry E. Gieseler Mayor ---------------------------------------------------------------- PAGE 180 SPECIAL MEETING - OCTOBER 4, 1988 VOLUME 23 I. CAlL TO ORDER: The October 4, 1988, special meeting of the Seward City Council was called to order at 6:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Counci1rnernber Meehan led the pledge of allegiance to the flag. III. ROIL CAlL: Present were: Mayor Gieseler and Counci1rnernbers Hil- ton, Meehan, O'Brien and Simutis (Dunham and Noll were excused) Present also: City Manager Royle, Deputy City Manager Schaefermeyer, Finance Director Peir- son, Fire Chief Gage, Harbonnaster Singleton, Port Marketing Director Gates, Public Works Supervisor t CSE154924 ) I I I PAGE 181 SPECIAL MEETING - OCTOBER 4, 1988 VOLUME 23 IV. Ainsworth, Electrical Engineer Anderson and City Clerk Murphy APPROVAL OF AGENDA: Gieseler noted that the Council had been copied with a revised agenda. SJMUTIS MlVED TO APPROVE THE REVISED AGENDA AS PRE- SENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUS- LY. V. CITIZENS' CCM1ENl'S ON AGENDA ITEMS ooT SCHEDULED FOR PUBLIC HEARING: None VI. RESOLUTIONS A. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING THE PURCHASE OF SNOWGUARDS FOR THE SPRING CREEK CORREC- TIONAL CENTER WITHOUT FUll. UTILIZATION OF CITY BID PROCEDURES. HILTON MOVED TO APPROVE RESOLUTION NO. 88-110; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. B. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AWARDING A CONTRACT FOR PAVING AND APPROPRIATING FUNDS. SJMUTIS MlVED TO APPROVE RESOLUTION NO. 88-111; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that the city had originally requested proposals for paving in accordance with city bid procedures; however , only one bid was received and the bid was found by the Council (on August 22, 1988) to be nonresponsive. (The bidder had made his bid contingent upon being awarded the Chugach Forest Products, Inc., contract for paving but had not been successful in that bid effort.) The Council had instructed the administration to negotiate a paving contract with the contractor perfonning paving for Chugach. Schaefermeyer stated that the proposal before the Council was the result of this Council-directed negotiation. 181 PRISON/CON- 5Js/ RESO: (Purchase of Snowguards) STREETS/SMIC/SBH/ CON-3oCj /RESO: (Paving Contract) ( CSE 154925 ] 182 PAGE 182 SPECIAL MEETING - OCTOBER 4, 1988 VOLUME 23 THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMlUS VOTE OF COUNCIL. VII. CITY MANAGER REPORTS: SCHAEFERMEYER scheduled a work session to discuss the city's options regarding Gateway Subdivision and the city's agreement with Alliance Bank. Gieseler instructed the Clerk to schedule the work session for 5: 00 p.m., Wednesday, October 5, 1988, immediately following the canvass of the election. ROYLE thanked the Council for the reception on Monday evening. He also informed Council that Finance Director Peirson had submitted his resignation, effective December 2, 1988, and added that recruitment would begin immediately. VIII. COUNCIL DISCUSSION: MEEHAN stated that he was sorry to see Peirson leave and wished him luck. O'BRIEN asked if Rasco, Inc., was still intending to leave its local plant in place over the winter. Schaefermeyer stated that Rasco had not made a finn corrmitment as yet, but the city had offered a spot at SMIC to store its equipment. Craig Currier, representing Rasco, stated that the plant might be IIDVed to Guam; however, he was hoping to keep it in Seward through the winter to take advantage of local paving projects next season. GIESELER thanked SiIIlltis for allowing the city to host Royle's reception at Ray's Waterfront. He also noted that Royle had been presented a list of Council priorities for his review and action. IX. CITn~ENS' DISCUSSION: None X. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' C<M1ENTS: None XI. ADJOURNMENT : ~~~,)...w ~. ...:~, ':..:, '.)j: S[~;<< ,l "..."" , '-',(-, " < ,,,'; "''CAh',T'"" \. '1:;' """~v \ ,', ~, '~~. _e- The meeting was adjourned at 6:50 p.m. . " Harry E. Gieseler Mayor ( CSE15492b ] I I I PAGE 183 SPECIAL MEETING - OCTOBER 5, 1988 VOLUME 23 1. CAlL TO ORDER: The October 5, 1988, special meeting of the Seward City Council was called to order at 4:07 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnember Dunham led the pledge of allegiance to the flag. III. ROlL CAlL: Present were: Mayor Gieseler and Councilrnembers Dun- ham, Hilton, Meehan, O'Brien and Simutis (Noll was excused) Present also: Administrative Secretary Jones and City Clerk Murphy IV. APPROVAL OF AGENDA: HILTON MOVED TO APPROVE THE AGENDA AS PRESEN'IED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMlUSLY. V. NEW BUSINESS: A. Murphy distributed a tally of the unofficial resul ts of the October 4, 1988, regular election. She noted that a total of five hundred and sixty (560) votes had been cast at the polls. Of these, five hundred and fifty-three (553) ballots had been counted by the election boards; the remaining seven (7) ballots were questioned ballots to be considered by the Canvass Board. Murphy also displayed the tally sheets and the lists of those requesting and receiving absentee ballots prior to the election. Murphy distributed a list bearing the nam2S of the forty-nine (49) electors who had requested absentee ballots. She noted that four (4) ballots which had been mailed had not been returned in time to be canvassed by the board. She noted that all absentee ballots in her possession had been cast by qualified voters of the city and she recommended that the board count the forty-five (45) ballots cast by the below named voters: PRECINCT 00. 1 PRECINCT NO. 2 ALEXANDER, Donna ALLEN, Walter AMOS, Dane ANDERSEN, Paul AUDEITE, Christy BREWSTER, Fred ANDERSON, Margaret CAPRA Cynthia A. DIENER, Everett P. DIENER, MJrle E. DUNHAM, Willard E. KARGES, Bever ley J. 183 ELECTIONS: (Can- vass of 100488 Regular Election) ( CSE154927 ) 184 PAGE 184 SPECIAL MEETING - OCTOBER 5, 1988 VOLUME 23 BUCHANAN, Perry N. CASAVOIA, John M. CAMPBELL-CRIPPS, Ann CLEMENS, David CLEMENS, Mary CRIPPS, David B. FLETCHER, W. E. GERWER, Theodore J. HATCH, Anne M. HATCH, Ralph W. HEADLEY, Lauren S. KAISER, Mary KANSTElNER, Mark LINDSEY, Dale R. ILOYD, Bob MAl, Audra M. MAl, Natalie J. MCCABE, Maureen L. PLUMB, Charles L. REGIS, Parnala E. RICHARD, Larry WERNER, George H. WIIl<ENS, Margaret C. WOODRUFF, John P. GIESELER MOVED TO ACCEPT THE CLERK'S RECCM1ENDATION TO COUNT THE FORTY-FIVE (45) ABSENTEE BALLCYrS; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY. KARGES, Charles E. MCCAULEY, Lorraine ooLL, Jayne A. ooLL, William C. RICE, Chrystine SAWYER, George T., Jr. SAWYER, Kathleen A. SCHAEFERMEYER, Karla SEWAlL, Fletcher F. As Gieseler read the names on the absentee ballot envelopes, Meehan opened the outer envelopes, reIIDved the plain white irmer envelopes and set them aside to be opened later in the meeting. Murphy distributed a list of persons casting ques- tioned ballots on election day. She stated that the seven (7) questioned ballots had been cast by voters whose names did not appear on the precinct registration lists. She stated that of the questioned ballots cast, the following five (5) were recom- mended for rejection as follows: PRECINCT 00. 1 ARLEDGE, M. - No record of voter registration PRECINCT 00. 2 CHASE, Matt T. - Registered in Bear Creek FORREST, Patricia E. - Registered in Bear Creek HIGffi'CMER, Montine J. - Registered in Moose Pass ROSSIE, Richard B. - Registered in Anchorage GIESELER MOVED TO ACCEPT THE CLERK'S REC<M1ENDATION TO REJECT THE FIVE (5) QUESTIONED BALLOTS; THE MarION WAS SECONDED t CSE154926 1 I I I lRS PAGE 185 SPECIAL MEETING - OCTOBER 5, 1988 VOLUME 23 BY SIMIITIS AND CARRIED UNANIMlUSLY. rejected ballots from the others and keeping . Murphy removed the five put them aside for safe- Murphy recommended that the board count the remaining two questioned ballots as cast by the following electors: PRECINCT m. 1 THORN, Patricia A. - Corrq:>Uter error PRECINCT NO. 2 DIETRICH, Marilyn - Name change only; registered as Marilyn Olson GIESELER MlVED TO ACCEPT THE CLERK'S RECCM1ENDATION TO COUNI' THE 'lID QUESTIONED BALLOTS; THE MarION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMlUSLY. The questioned ballots were reIIDved from their outer envelopes by Meehan and shuffled with the absentee ballots which had been set aside earlier. The forty-seven white envelopes were opened by Meehan. The ballots were removed and read aloud by Gieseler while Hilton and O'Brien tallied and Meehan and DLmharn observed. The totals of the absentee and questioned ballots counted were added to the totals of those ballots cast and counted on election day. Murphy read the results of the combined totals as follows: PRECINCT PRECINCT ABSENTEE/ 00. 1 00. 2 QUESTIONED TOTALS COUNClIMEMBER (2-Year Tenn - Three to be elected) DUNHAM, Beverly 251 161 36 448 NOLL, Bill 253 154 32 439 SIMUrIS, Leslie 192 122 32 346 Write-Ins 93 20 9 122 TOTAL VOTES CAST 358 202 49/7 609 TOTAL VOTES COUNTED 356 197 45/2 600 Murphy stated that any defeated candidate or any 10 qualified voters could protest the election by filing a written corrq:>laint with the City Clerk prior to 5: 00 p.m., Monday, October 10, 1988. She added that if no such protest was filed, the City Council, at its regular meeting of October 10, 1988, would certify the election as valid and declare the results official. ( CSE154929 ) 186 PAGE 186 SPECIAL MEETING - OCTOBER 5, 1988 VOLUME 23 VI. ADJOURNMENI': The meeting was adjourned at 4:35 p.m. _e_ ~ .. . SEAL ~L~~~'e~ . Ha . Giese er Mayor PAGE 186 ---------------------------------------------------------------- VOLUME 23 1. CAlL TO ORDER: REGULAR MEETING - OCTOBER 10, 1988 The October 10, 1988, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnember Noll led the pledge of allegiance to the flag. III. ROIL CAlL: Present were: Mayor Gieseler and Councilrnembers Dun- ham, Hilton, Meehan, Noll, O'Brien and SiIIlltis Present also: City t1anager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, Finance Director Peirson, Deputy Finance Director Gifford, Port Market- ing Director Gates, Engineering & Utilities Manager Diener, Police Chief Bencardino, Hospital Administrator Campbell, Electrical Engineer Anderson, Parks & Recreation Director Yanez, Harbonnaster Singleton, Public Horks Supervisor Ainsworth, and City Clerk Murphy ( CSE154930 1 I I I 187 PAGE 187 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE SEPTEMBER 26, OCTOBER 4, AND OCTOBER 5, 1988, MINUTES AS WRI'ITEN; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMlUSLY. SPECIAL ITEMS: A. MEEHAN HOVED TO CERTIFY THE RESULTS OF THE ELECTION: OCTOBER 4, 1988, ELEcrION AS OFFICIAL; THE MarION WAS SECONDED (Certified) BY HILTON AND CARRIED UNANIMlUSLY. B. Newly re-elected Councilrreni>ers Dunham, Noll and C. COUNCIL: Simutis were sworn by Murphy. V. APPROVAL OF REGUlAR MEETING AGENDA: HILTON MlVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Jonathan Sewall stated that there had been no Assembly meeting since his last report to the Council. He noted that the Borough Planning Carrrnission was currently in session at the Seward School Cafete- ria and would be hearing testirmny on the Coastal Zone Management Plan later in the evening. He invited Council to attend the remainder of the Planning Carrrnission meeting if the Council meeting adjourned at an early hour. He also introduced Borough Assembly Representative Jim Skogstad and stated that the two of them would be returning to the Planning Carrnission meeting inmediately following his report. VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANI- MlUSLY. The following actions were taken: 1$' July 1988 invoice from HTGP&B for legal services C. A TTY : totalling 17,964.05, was approved for payment; 2. August 1988 invoice from Brittain, Mersereau & C. ATTY: Pent large for legal services totalling $953.95, was approved for payment; ( CSE154931 ) 188 ALCOHOL/RESO: FINANCE DEPT/ RESO: CON-218; CON-159: CON-261: PROCLAMATIONS: PAGE 188 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 3. Resolution No. 88-109, urging the Legislature to provide funding to IIllnicipalities to offset the cost of comply- ing with the provisions of AS 47.37, was approved; 4. Resolution No. 88-113, authorizing signatures for the city bank account and rescinding all previous resolutions in conflict therewith, was approved; 5. Change Order No. 6 to Contract No. CON-218 with Underwater/Swalling, JV, to machine the transition rails from the lift dock to the rails, for a contract increase totalling $1,252, was noted for infonnation; 6. September 29, 1988, memorandum from Diener noting the following change orders to the Sarrwhan contract for prison construction was noted for infonnation: 11211 - Rerroval of stumps during earthwork operations (+$7 ,~; 11212 - Repair or replace vent pipes at roof pene- trations, decktight seals, repair water damage, and supply and install 33 ice deflectors (+$29,914); 11213 - Install fire department pumper connections in buildings 1, 2, 3, 4 and APS (+$47,588); 11214 - Rerrove and replace unsuitable material along the sewer line under the service road (+$5,403); 11215 - Install threaded swing joints at the 20,000 and 30,00o:gallon fuel tanks (+$1,100); 11216 - Provide one lexgard for the light on the West wall frame in 11307 and a credit for the installation of light on West wall of 11305 (+$622); 11217 - Install 46 access hatch doors and paint doors (+$19-;tIT) ; 11218 - Install metal studs on the APS building and gypsum wall board and vapor barrier on Building 113 (+$9,398); and The following change orders to the Titan Construction contract for prison subcontract work were noted for infonnation: 118 - Install manual override switches, with cost to be sharedby the state and Sarrwhan (+$2,725); 119 - Provide all equiprrent, materials and labor as requested by DOC to construct a 6" metal stud/GWB wall and IIDdify the window wall, and in the maintenance ship area, add 6 sprinkler heads and a new 4" water flow indicator on the main riser (+$14,108); and 7. Proclamations of the Mayor as follows were noted for information: October 1988 - National Disability Employment Aware- ness Month; October 1988 - Domestic Violence Awareness Month; ( CSE 1')4932 1 I I I PAGE 189 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 October 16-22, 1988 - National Business Women's Week; October 23-30, 1988 - Red Ribbon Week and Drug Free America \.Jeek. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed lease of three unsur- veyed parcels containing a total of ~4.5 acres within USS 4827, located in the Seward Marine Industrial Center, to Inlet Fishe- ries, Inc., for the purpose of constructing and operating a fisheries dock and fish processing facility was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. B. Notice of public hearing as posted and published as required by law regarding the proposed lease of a ~20, 589 square foot parcel located within Block 8, Oceanview Subdivision (1215 Fourth Avenue), to Kenai Fjords Tours, Inc., was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. C. Notice of public hearing as posted and distribut- ed regarding the city's proposed 3-year capital budget was noted and the public hearing was opened. LARRY WERNER, 334 Sixth Avenue, president of Seward Enhancement Association, stated that SEA had reviewed the proposed 3-year plan before the Council and wished to add some additional items for Council's consideration: 1) New street lights for the downtown area, for an estimated total cost, installed, of $175,000; 2) Paving of the Fourth Avenue extension to Leirer Road, for an estimated cost of $62,000; and 3) Side- walks for both sides of Fourth Avenue from downtown to the Small Boat Harbor, for an estimated cost of $575,000. ANDY PATAPOFF, Resurrection Road, representing the Seward CharIDer of Commerce, stated that the CharIDer had conduct- ed a telephone poll of its members and would like to offer for Council consideration the Chamber's prioritized capital list (for legislative funding): 1) Cruise ship/ferry/IMS joint use dock; 2) New hospital; 3) Road improvements to include side- walks; 4) Small Boat Harbor expansion and improvements; and 5) Continued development and expansion of SMIC. In addition, he presented the Chamber's prioritized list of possible city-funded projects: 1) Beautification projects to include street lights, parks, trees, benches and public campground improvements; 2) Sidewalks and walking/bike paths; 3) City road improvements; 4) Boat Harbor parking improvements; and 5) Public transportation system. KEITH CAMPBElL, 1910 Forget-Me-Not Circle, Seward General Hospital Administrator, stated that the Commissioner of 189 PUBLIC HEARINGS: (Inlet Fisheries Lease) PUBLIC HEARINGS: (Kenai Fjords Tours Lease) PUBLIC HEARINGS: (Capital Budget) (CSEI5493J ) 190 PERSONNEL/ORD: (Holiday Sched. for Library employees re- structured) PAGE 190 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 Health had visited Seward on Septerrber 19 and was now convinced of Seward's need for funding for a new hospitaL He urged the Council to name the new hospital as the city's number one priority for the coming year. He also suggested that three pieces of equipment needed by the hospital be included in the lease/purchase funding category for this fiscal year in an- ticipation of repaying the debt with state grant funds should funding for the hospital be forthcoming during the next legis- lative session. The equipment requested included a mamrographic machine, ultra sound equipment, and coronary equipment, for a total estimated cost of $125,000. BRAD SNOWDEN, 525 Sixth Avenue, suggested Council consideration of the following items for inclusion in its priority list: 1) Downtown parking; 2) Beautification of the downtown waterfront; and 3) Antiqued street lights for the downtown area. Snowden noted that he had ordered two antiqued street lights for installation in the sidewalk fronting his hotel and added that he would be coming to the Planning Corrmis- sion soon for a variance to allow the planned installation. Snowden further noted that the antique street light theme had been approved by the Seward Enhancement Association. Schaefermeyer stated that Council would be asked to adopt a three-year plan at the next meeting and would be asked to prioritize those items for which grant funds would be sought at a later time. No one else appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NarlCE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing and Enactment: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AMENDING THE CITY PERSON- NEL CODE BY RESTRUCTURING THE HOLIDAYS WITH PAY SCHEDULE FOR LIBRARY EMPLOYEES. HEEI1AN MOVED TO ENACT ORDINANCE NO. 609; THE MJrION WAS SECONDED BY DUNHAM AND CARRIED UNANIMlUSLY. ( CSE 154934 1 I I I PAGE 191 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, APPROVING A LEASE AGREE- MENT WITH INLET FISHERIES, INC. SIMUTIS mVED TO APPROVE RESOLUTION NO. 88-102; THE MOTION WAS SECONDED BY HILTON. MEEHAN noted that he would abstain from discussion or voting on this resolution since he was employed by Seward Fisheries, Inc., and would be a maj or corrq:>eti tor of Inlet Fisheries. In response to a question from O'BRIEN, Gates stated that the city did not know to any true extent the financial capabilities of Inlet Fisheries and had, therefore, requested a signed guaranty by the owner Vince Goddard. In addition, there was no financial risk to the city since the dock would be constructed solely with Inlet Fisheries' funds. Following construction of the dock, it would becOOY2 the property of the city and Inlet would have no choice but to operate a fish processing facility on the lease site if it hoped to recoup its investment in the dock. In addition, if Inlet Fisheries failed to meet the benchmark dates in the lease, the lease would self- destruct. O'Brien asked if Goddard would object to a con- struction "start" date as a part of the lease; Goddard stated that he had no objection. 0' BRIEN MlVED TO INCLUDE IN THE LEASE DOCU1ENT A PROVISION WHICH WOULD REQUIRE THAT CONSTRUCTION OF THE DOCK C<M1ENCE NO IATER THAN JUNE 1, 1989; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITH SIX "YES" VOTES AND MEEHAN ABSTAINING. 0' BRIEN also asked if provisions had been made for housing itinerant seasonal employees. Goddard stated that he was currently looking into this and had considered the possibil- ity of leasing additional land to provided trailer housing or requesting that the city set aside some property for employee camping. In response to a question from HILTON, Gates explained the Raw Fish Tax penalty provisions should less than eighty percent (807.) of the fish purchased in Seward by the Lessee be processed in Seward. THE QUESTION WAS CAlLED ON 'IRE MAIN MOTION AND RESOLU- TION NO. 88-102 AS APPROVED WITH SIX "YES" VOTES AND MEEHANeABSTAINING. 191 SMIC/RE-07q! /RESO: (Inlet Fisheries Lease) t CSE l54935 1 192 OCEANVIEW SUB/ RE-D1J /RESO: (Kenai Fjords Tours Lease of A-Frame Lot) PAGE 192 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING THE TERMINA- TION OF CITY LEASE 00. RE-013 AND THE IDNG- TERM LEASE OF THE SUBJECT PROPERTY TO KENAI FJORDS TOURS, INC. SIMUrIS MlVED TO APPROVE RESOLUTION NO. 88-112; THE MarION WAS SECONDED BY HILTON. In response to a question from DUNHAM, Jack Scoby (a principal in Kenai Fjords Tours, Inc.) stated that the property would be used to continue the Salm:m Bake business and to provide parking for Kenai Fjords Tours customers. Dunham stated that she wanted some assurance that any future leases in the Boat Harbor \oJOuld be marine related. Scoby stated that the lease required that the business be marine or tourist related. O'BRIEN asked if the administration had fashioned the appraisal schedule for this lease to confonn to some stan- dardized appraisal schedule for all Boat Harbor properties. He noted that the Council had asked some time ago that the adminis- tration begin the process of having all appraisals due at the same time to avoid the necessity of requesting several different appraisals each year. 0' BRIEN MlVED TO AMEND THE LEASE BY ADJUSTING THE DATE FOR THE FIRST RATE REVIEW TO JULY 1, 1990, WITH APPRAISALS DUE IN FIVE-YEAR INCREMENTS 'illEREAFTER; THE MOTION WAS SECONDED BY HILTON. Scoby noted that the lease signed by Kenai Fj ords called for the first rental adjustment in 1993, and he would have to meet with his partners before he could agree to this change. AT THE SUGGESTION OF COUNCIil1EMBER ooLL, 0' BRIEN CHANGED HIS AME:NI:W:NT TO READ "1995"; THE SECOND CONCURRED. THE QUESTION WAS CAlLED ON THE AMENDMENT AND IT CARRIED BY UNANI- MlUS VOTE OF THE COUNCIL. DUNHAM MlVED TO AMEND THE LEASE BY REQUIRING THAT ANY BUSINESS OPERATED ON THE PROPERTY BE MARINE OR TOURIST REIATED. Schaefermeyer noted that several years ago the Council had changed its Boat Harbor lease policy to allow any use allowed outright or by conditional use permit in the Harbor CotIIrercial Zone. DUNHAM WITHDREW HER MOTION TO AMEND. (CSE154936 ) I I I PAGE 193 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 THE QUESTION WAS CAlLED ON THE MAIN MarION AND RESOLU- TION 00. 88-112 WAS APPROVED BY UNANIMOUS VOTE OF COUNCIL. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. SIMUTIS MOVED TO APPROVE 'mE CIAIM FOR DAMAGES TOl'ALLING $3,194.83 AS FILED BY GREG THRALL; THE MarION WAS SECONDED BY MEEHAN. MEEHAN noted that the administration I s memorandum indicated that the linemen had not followed instructions when clearing trees in the Primrose area, and he asked for an expla- nation from Diener. Diener stated that, while it was true the linemen had failed to follow departmental policy, this should not be a consideration of the Council when detennining the validity of the claim. He added that the problem with the linemen was being handled intemally. He noted that all trees cut by the linemen were in Borough or State Right-of-Way and could be cleared without Thrall's authorization. In addition, the cleared area did not front Thrall's property, but the adj acent lot. Diener further noted that, while Thrall had discussed the possibility of putting in underground service at some future date, he had not been forthcoming with a signed agreement or a deposit for the work. MEEHAN stated that he wanted some assurance that utility employees were not deliber- ately antagonizing the public. Diener assured the Council that he was treating the matter very seriously and had made a real effort to avoid cutting trees which acted as a shield between residences and the roadway. He stated that it was unfortunate that the trees in the reference ROW had been reIIDved when there was no need for clear-cutting; however, this did not, in his opinion, warrant payment of Thrall's claim. GREG THRAIL, Primrose Lane, stated that the under- ground electrical project was something that he did intend to see happen; however, he had wanted to wait another year until Sam Young, owner of the lot directly North of his, was ready to build so that they could put in the power as one project and share the cost. At the request of 0' BRIEN, Murphy distributed photo- graphs of the cleared area which had been provided by Thrall. HILTON asked how Thrall had arrived at the $3,194.83 figure. Thrall explained that this represented the cost to him to install an underground electrical system. HILTON noted that the trees cleared did not appear to be worth +$3,000. MEEHAN concurred, stating that he could not support the claim. 193 CLAIM FOR DAMAGES: (Thrall Claim DENIED) l CSE154937 1 194 C. COUNCIL: (Vice Mayor) C.COUNCIL/COM. HOSPITAL BOARD: PAGE 194 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 THE QUESTION WAS CAlLED AND THE IDI'ION FAILED WITII FIVE "NO" VOTES AND GIESELER AND NOll VOTING "YES". B. SIMUrIS MOVED TO NAME MEEHAN VICE MAYOR OF COUNCIL FOR THE CCMING YEAR; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY. C. GIESELER APPOINTED 0' BRIEN TO SERVE AS THE COUNCIL'S REPRESENTATIVE TO THE CXl1MlJNITY HOSPITAL BOARD. XIV. CITY MANAGER REPORTS: None XV. COUNCIL DISCUSSION: NOIL stated that he was sorry to see that Tom Stauden- rneier and Louis March were "at it again". He noted that it appeared to be time to talk about the electric utility publicly once again and requested that the administration prepare some- thing in writing to make available to the public and to schedule a public hearing on the utility so that the public could be better informed. Noll added that StaudeIl!IEier had no interest in Seward's utility except as a means to advance his own am- bitions. HILTON stated that it was unfortunate that some rrernbers of the cOlllI\llIlity thought that the Council arbitrarily and recklessly set electric rates when the city had spent significant aIIDunts of rmney for experts to advise the Council on what rates should be. Hilton also thanked the city for the new playground equipm=nt which had been installed in Forest Acres. In response to a question from HILTON, Schaefermeyer stated that the city had included paving the new school road from the highway to Diarmnd Boulevard in the 1989 capital budget. He added that the Borough would fund paving that portion of the road from DiaIIDnd to the school. He also noted that the Arrrrj and Air Force had agreed to relinquish the right-of-way for the road. Gieseler stated that the Air Force intended to block the south entrance frOm the highway to Diarmnd and convert that portion of the roadway from the highway to the school road to a parking area for the camp. DUNHAM stated that the handicap ramps on Fourth and Jefferson were in need of repair. She also stated that she concurred with Noll on the electrical situation. Dunham reminded the audience that last year, residents of Girdwood were without power for six consecutive days as a result of a snow slide; however city residents were alIIDst imnediately put on city generator power when that slide occurred. She stated that this was one of the luxuries of having a locally-owned utility which would be lost if the city's electricity was provided by Chugach. ( CSE 154938 1 I I I 195 PAGE 195 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 MEEHAN thanked the Council for its vote of confidence in once again electing him Vice Hayor. He asked Diener if the city had ever considered contract clearing for the utility. Diener responded that contract clearing was his preference and was utilized for IIDst clearing. GIESELER stated that he had personally approached those who had signed the applications for recall petitions; eighty percent (80%) of those questioned had indicated that they were told that by signing the applications, they would get lower electric rates and did not realize they were signing applica- tions for a recall petition. He noted that two signers had already submitted written requests to the city to reIIDve their names from the applications and several others had stated that they would do likewise. GIESELER noted that the Trade Board had requested action on several items as follows: 1. Work session with the Council on Alaska Railroad Dock transfer and other issues (Gates stated that this should be set aside until after the Governor's appointment to the ARR Board of Directors has been made. ) 2. Work capital priorities 11:30 a.m.) Session with the Trade Board to discuss (Scheduled for Thursday, October 20, at 3. Request for a letter from the Mayor urging that Seward be included in the US Fish and Wildlife and Alaska Department of Fish & Game "Fisheries Enhancement Plan Update" (There was no objection from the CounciL) 4. Request for a resolution opposing IIDving the TustUllena to Kodiak (Scheduled for action on October 24.) 5. Request for a resolution urging the upgrade of the Seward Highway, Mile 50-65, and prohibiting tandem rigs on the highway during the winter rmnths. Schaefermeyer cautioned against the prohibition of tandem rigs in winter, noting that this would make it impossible for barge corrq:>anies wanting to use the Port of Seward to compete. O'Brien disagreed, stating that the tandem rigs should be outlawed altogether. (Resolution urging upgrade of the highway only was scheduled for action on October 24.) XVI. CITIZENS' DISCUSSION: RHONDA ANDERSON-HUBBARD, 200 Marathon Drive, stated that she concurred with 0 I Brien ' s concem about the financial capabilities of city lessees. She encouraged the administration to carefully monitor and enforce provisions of its leases. (,50"". ) 196 PAGE 196 REGULAR MEETING - OCTOBER 10, 1988 VOLUME 23 BOB VALDATIA, 528 Fifth Avenue, commended the electric crew and stated that the trees they cleared were probably "hazard" trees. He also suggested that the city decrease its ferry lease fee so that the Tusturnena' s fares to Kodiak could be brought in line with the fare from Homer to Kodiak. He stated that this YJOuld encourage the majority of those travelling to Kodiak to embark from Seward. Valdatta commented on the advisory survey. He further noted that the city could be providing all the power it needs with stearn produced from waste products. He noted that the Railroad Dock needs upgrading. Finally, Valdatta asked how the Council intended to fill any vacancy which might occur as a result of a recall, given the fact that the incumbents had run unopposed. Murphy explained that there was no requirement that the Council appoint the "next high vote-getter" when filling a vacancy on Council. Should members of Council be recalled, the remaining rrernbers would appoint qualified residents of the city to sit on Council until the next regular election. Should the entire Council be re- called, the Governor would appoint three rrernbers and these three would appoint four additional rrernbers. Should the Mayor be recalled, the Council would appoint a seventh Counci1mernber and the Council would elect a Mayor from its rrernbers. XVII. COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENl'S: NOll urged Valdatta to submit his idea for providing primary power to Seward to the Alaska Science and Technology Foundation in Anchorage. GIESELER asked Murphy to copy Valdatta with Code and Statutory provisions for filling Council vacancies. XVIII . ADJOl1l\R1ENT : The meeting was adjourned at 9:55 p.m. . City Clerk (~~~~~~~ "';Y;'~"c.i'l-~O~-tl::f() ,.. ;JC;:# f'~'.. ;.~ .. ,~ -.- ., 'j i ~ E A L. :. J.. " .. u . % \ -... .. >.' .. _~ ...r;,:, '.:,,(1, ...1'$..... "':* .r ...~r' 1. .... c..+';" l' . . .. , . . ~;.J 4 "IrE OF "'\r'~' ~G~se~ Mayor ( CSE1'>4940 1 I I I 197 PAGE 197 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 I. CALL TO ORDER: The October 24, City Council was called to Gieseler. 1988, regular meeting of the Seward order at 7:30 p.m. by Hayor Harry E. II. OPENING CEREMONY: Councilrnernber Simutis led the pledge of allegiance to the flag. III. ROIL CALL: Present were: Mayor Gieseler and Councilrnernbers Hil- ton, Meehan, 0' Brien and Simutis (Dunham and Noll were excused) Present also: City Manager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, Fire Chief Gage, Harbonnaster Single- ton, Engineering & Utilities Manager Diener, Port Marketing Director Gates, Police Sgt. Brossow, Deputy Finance Director Gifford, Parks & Recreation Director Yanez, Hospital Administrator Campbell, Administrative Assistant Mar- tin, Teen Center Director Addleman and City Clerk Murphy IV. APPROVAL OF MINUTES: o I Brien requested an amendrrent to Paragraph 3, Page 192, of the minutes. He noted that the standardized appraisal schedule should apply to all "city lease" properties, not "Boat Harbor" properties. - HILTON MOVED TO APPROVE THE OCTOBER 24, 1988, MINUTES AS AMENDED; THE MarrON WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. SPECIAL ITEM: A. Eric Barlow and Sean Glenn noted that the Hayor had declared this week to be "Red Ribbon Week" in Seward in recognition of "Drug Free America Week". They distributed red ribbons to the Mayor, Council, Administration and others present at the meeting. V. APPROVAL OF REGUlAR MEETING AGENDA: Royle deleted Resolution No. 88-119 from the regular meeting agenda and asked the Council to schedule a special meeting later in the week to consider approval of the resolution following further negotiations with Alliance Bank, Hall and METCO/Trend. ( C 5El54941 1 198 PAGE 198 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 GIESELER DIRECTED THE CLERK TO CAlL A SPECIAL MEETING OF THE CITY COUNCIL AT NOON, THURSDAY, OCTOBER 27, 1988. MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANI- MlUSLY. MEEHAN MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLCMING THE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS THE PRISON ARBITRATION AGREEMENl'; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSFl1BLY REPORT: Kenai Peninsula Borough Assembly President Sewall was not present and no report was given. VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: O'Brien asked that Consent Calendar Item No. 9 and 10 be placed on the regular meeting agenda under "New Business". Schaefermeyer requested the deletion of Item No.8. SIMUrIS MlVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI- MOUSLY. The following actions were taken: LITIGATION/ELECTION/ 1. Resolution No. 88-114, supporting state tort RESO: refonn as set forth in state Ballot Measure No.2, was approved; STREETS/RESO: 2. Resolution No. 88-115, urging the state Depart- ment of Transportation and Public Facilities to designate the repair and upgrade of the Seward Highway as its Number One Priority, was approved; SMIC/RESO: 3. Resolution No. 88-116, accepting the federally- funded Seward Marine Industrial Center Rails and Cradles proj- ect, was approved; C.ATTY: 4. October 2, 1988, invoice from Wohlforth, Flint & Gruening for legal services totalling $136.71 was approved for payment; C.ATTY: 5. August 1988 invoice from HTGP&B for legal ser- vices totalling $16,941.21 was approved for payment; 6. October 11, 1988, memorandum from Schaefermeyer requesting authorization to offer a one-year contract extension to Herman Leirer, dba Seward Service, for the collection and CON-OgJ : ( C Sf 154942 1 I I I 199 PAGE 199 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 disposal of garbage and refuse within the city and to execute the necessary contract amendment if Leirer accepts the exten- sion, was approved; 7. October 14, 1988, memorandum from Murphy request- C. COUNCIL: ing authorization to reschedule the first November Council meeting to Noverrber 7, 1988, was approved; 8. DELETED; 9. MOVED TO REGUlAR MEETING AGENDA (I tem No. XIII-D) ; 10. MlVED TO REGULAR MEETING AGENDA (Item No. XIII-E) ; 11. October 19, 1988, memorandum from Murphy recom- mending that the Mayor appoint Kerry Martin to be the city's representative to the SEE team to study proposed improvements to Exit Glacier road was approved and Martin was so appointed; STREETS: (Exit Glacier Road) 12. October 11, 1988, meIIDrandum from Martin concern- ing the Dar/PF six-year plan was noted for infonnation; 13. October 17, 1988, contract corrq:>letion report as filed by Diener was noted for infonnation; 14. October 19, 1988, memorandum from Diener concern- ing the informal petition regarding the Senior/Conmmity Center/ Museum was noted for infonnation; and 15. October 14, 1988, memorandum from Diener noting the following Prison Construction Change Orders was noted for infonnation: SAM<JHAN CON- 15't: #219 - Install moisture and fire-resistant shims at all anchorage points of window 11151 in Buildings 112 and #3 (+$2,132); 11220 - Reroute the waste and supply plurrbing lines ----ror fixtures P-8 and P-21 in the guard tower (+941); #221 - Install clip angles for Building #4, third floor~drails (+$865); 11222 - Revised hardware at doors 1-217, 1-218A and 1=2l8B, and rework the doors and frames (+$10,657); TITAN CONSTRUCTION CON-llo \: 1110 - Reroute the domestic hot and cold water -- lines in order to IIDunt the telephone cabinet per the contract drawings (+$450). IX. PUBLIC HEARINGS: ( C SE154943 ) 200 CITIZENS' DISC: (Knudson - Pro- posed golf course) CITIZENS' DISC: (Bardarson - SBH Access Problems) PAGE 200 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 None X. PRESENTATIONS WITH PRIOR NOTICE ONLY: A. JAMES L. KNUDSON, 227 Fifth Avenue, Seward, presented Council with his proposal to lease an 18-acre parcel of city-owned property fronting the Seward Highway between DiaIIDnd and Hemlock Streets in order to develop and operate a recreational facility consisting of a 9-hole, par-3, golf course; a covered rifle and pistol range; covered tennis court and a mini-malL In response to a question from O'Brien, he stated that he would invest $300,000 in the project through June, 1990. Simutis stated that the concept was exciting, but was concerned that this might not be the highest and best use of the property. Knudson noted that city administration officials had informed him that the city had designated this property as the future site of the city shop facility. In response to inquiries from Hilton concerning other possible locations for the city shop, Diener stated that a portion of the area adjacent to the substation had been deeded to the borough for the school. In addition, the property near the landfill was unsuitable because water and sewer were not available and the property itself would be difficult to develop. Knudson stated that he had contacted various cruise ship lines and they had expressed support for his plans. Gieseler asked if Knudson had discussed this proposal with Cary Marshall, another local prospective golf course developer. Knudson stated that he had been unable to meet with him prior to the meeting. In response to a question from Gieseler, Gates stated that, based on a conservative figure of $0.18 per square foot, the property would lease for approximately $150,000 annually. Schaefermeyer asked that the Council allow the administration the opportunity to put together a memorandum setting forth the advantages and disadvantages of the proposed developIrent before the Council went on record with instructions to proceed with lease negotiations. Gieseler stated that the Council would like to see the administration meet with Knudson and attempt to ''work something out" with him before corning back to the Council with a recommendation. B. LINNE BARDARSON and GERRY LORZ, representing their Small Boat Harbor businesses (Bardarson' s Studio and House of DiarrDnd Willow, respectively) asked Council's help in resolv- ing an access problem they were having in the Boat Harbor. Bardarson, speaking for both businesses, stated that he and Lorz had each constructed businesses in the Boat Harbor this past Spring. He stated that his wife had inquired about access to the back of the lease site early on during negotiations and had ( C5E154944 1 I I I PAGE 201 REGULAR HEETING - OCTOBER 24, 1988 VOLUME 23 been told by Administrative Assistant Martin that he would pursue the matter of an access easement. However, it was later detennined by Martin that an easement was not possible and he suggested that Bardarson and Lorz pursue an agreement with the owners of Quest Charters and Sailing, Inc., to access the back of Lot 5 across their properties. Bardarson distributed copies of correspondence and photographs of the lease site. He stated that Quest Charters has now installed posts to block access from the North. He asked Council's help in obtaining the requested access. In response to a question from O'Brien, Bardarson stated that he had not inquired about "leasing" a right-of-way corridor from Quest Charters or Sailing, Inc. Meehan suggested the use of leverage with the lessees to the North since they must utilize the Bardarson/Lorz lease site when bringing boats into their lots. Gieseler asked that the Council be kept informed of the status of the Bardarson/Lorz attempts to gain access to their properties. C. LORI DRAPER and ANDY PATAPOFF, representing the Seward Chamber of Commerce, asked Council support of the Cham- ber's efforts to IIDve its offices and the Information Cache from the downtown area to city-owned property located on Third Avenue just north of Gateway Texaco. Draper stated that NBA would be constructing a new facility this Spring and she had submitted a proposal to the management conmittee that the bank donate the currently-used IIDdular structure to the Chamber for use as office space. Patapoff stated that a poll of Chanber m=rnbers had indicated that IIDst m=rnbers favored IIDving the Infonnation Cache, and of those voting to IIDve it, IIDst favored the request- ed site. Draper noted that the present Infonnation Cache site would probably be converted to a small park. Schaefermeyer stated that he could not provide the Chamber with a site until the Small Boat Harbor mapping was corrq:>lete. He noted that the area in question was the site of various underground utilities, adding that these must be taken into account before detennining where either the offices or the Cache could be located. In response to a question from Hilton, Schaefermeyer stated that the area under consideration is currently utilized for boat storage, not parking. Responding to a question from 0' Brien, Patapoff stated that funds for IIDving the facilities would come from grants, not the city. O'Brien stated that he felt the Cache should remain in its present location. He stated that the museum, scheduled to IIDve to its new location directly across the street from the Cache, would be an additional tourist draw which would bring 201 CITIZENS' DISC: (Chamber of Com. Reps. - Moving Chamber offices) (CSE154945 ) 202 CIP/RESO: PRISON/CON- 30Sj RESO: PAGE 202 REGULAR MEETING - ocroBER 24, 1988 VOLUME 23 people to that area. O'Brien added that he would like to see several public hearings conducted before action was taken. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ADOPTING THE THREE-YEAR CAPITAL BUDGET PLAN. SIMUrIS MOVED TO APPROVE RESOLUTION NO. 88-117; THE MarION WAS SECONDED BY HILTON. Schaefermeyer noted that the work session revisions had been incorporated. He stated that the administration would come back to the Council for approval once a funding plan had been developed. THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMOUS VO'IE OF THE COUNCIL. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING A PURCHASE ORDER TO AIR TEK FOR EMERGENCY REl1EDIAL IDRK AT THE PRISON. HILTON MOVED TO APPROVE RESOLUTION NO. 88-118; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. 3. DELETED NOTE: The meeting was recessed at 9:40 p.m. and reconvened at 9:52 p.m. XII. UNFINISHED BUSINESS: None ( CSE 154946 1 I I I PAGE 203 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 XIII. NEW BUSINESS: A. SIMUrIS MOVED TO GRANT A CIAIM FOR DAMAGES TOTALLING $320.51 AS FILED BY THCMAS M. BUCHANAN; THE MarION WAS SECONDED BY 0' BRIEN. Meehan noted that the Harbonnaster had reccmrended that the Council deny the claim; however, he (Meehan) believed that the city should assume responsibility for damage caused by a city employee while IIDving private property. In response to a question from Hilton, Singleton stated that Buchanan had not been contacted prior to the time the boat was IIDved. Simutis asked if this could be construed as "precedent-setting"; Royle stated that, since each claim is considered on a case-by-case basis, action in favor of the claimant would not set a prece- dent. THE QUESTION WAS CAlLED AND THE MlTION CARRIED BY UNANIMlUS VOTE OF COUNCIL. B. 0' BRIEN mVED TO AUTHORIZE THE CITY MANAGER TO EXECU'IE THE PRISON ARBITRATION AGREEMENT WITH SAl-W-IAN AMERICA, INC., AND THE STATE OF AIASKA; THE MOTION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMOUSLY. C. GIESELER MOVED TO APPOINT IDRI DRAPER, ARNE HATCH MID DAVID POPKEN TO THREE-YEAR TERMS ON THE CCM1UNITY HOSPITAL BOARD; THE MOTION \.JAS SECONDED BY MEEHAN AND CARRIED UNANIMlUS- LY. D. 0' BRIEN MlVED TO ISSUE A lETTER OF NONOBJECTION TO THE VACATION OF AIL EASF11ENTS AND PUBLIC ACCESSES AS SIrnN ON THE SEWARD INDUSTRIAL PARK PIAT IN FAVOR OF NEW EASEMENTS AND RIGHTS-OF -WAY IN THE MARINA SUBDIVISION, BIDCK 2, PIAT, WITH THE VACATIONS TO BECCl1E EFFECTIVE UPON APPROVAL OF THE FINAL PLAT OF BIDCK 2, MARINA SUBDIVISION; THE MarION HAS SECONDED BY HILTON. In response to a question from O'Brien, Martin stated that the final plat of Block 2, Marina Subdivision, was not yet ready for presentation to Council. O'Brien objected to approv- ing the vacation of easements and public accesses until Council had a chance to review the new plat. o I BRIEN MlVED TO POSTPONE ACTION ON THE PROPOSED VACATIONS UNTIL NOVEMBER 7, 1988; THE MarION WAS SECONDED BY SIMUrIS AND CARRIED UNANIMlUSLY. E. 0' BRIEN MlVED TO ISSUE A lETTER OF ooNOBJECTION TO THE VACATION OF A PORTION OF FIRST AVENUE BEn.JEEN BLOCKS 11 AND 12, AND A PORTION OF THE ALLEY AND EASEMENTS WITHIN BLOCK 11, IAUBNER ADDITION; THE MarION WAS SECONDED BY HILTON. 0' Brien asked if this had been before Council at an earlier meeting. Martin stated that this had been reviewed by 20~ CLAIMS FOR DAMAGES: (Buchanan Claim APPROVED) LITIGATION/PRISON: (Prison Arbitra- tion Agreement Approved) COMMUNITY HOSPITAL BOARD: (Draper, Hatch & Popken Appointed) ROW VACATIONS/ LAUBNER ADD: (Daigle Vacations Approved) ( CSE 154947 ) 204 PAGE 204 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 the Planning Conmission and the Council previously, and noted that there had been no changes since that review. THE QUESTION WAS CAlLED AND THE MOTION CARRIED BY UNANIMOUS VOTE OF COUNCIL. XIV. CITY MANAGER REPORTS: GATES stated that the Prison Industries Board had voted to IIDve the Kenai Furniture Plant to the Spring Creek Correctional Center. He then briefly updated the Council on the status of major city projects. XV. COUNCIL DISCUSSION: O'BRIEN stated that he had received several complaints about television reception (Channel 9 - Mt. Wolcott). Schaefer- rneyer stated that KRXA! Radio now owns the translator and the television license and is responsible for all maintenance of the facility. 0' Brien asked the city manager to visit with the KRXA Radio manager and suggest that something be done to improve the signal. 0' BRIEN also asked Diener to explain some of the infonnation contained in his "Contract Corrq:>letion Report" (Consent Calendar Item No. 13). Diener stated that the Underwa- ter/Swalling deleted work had been performed by Brown Con- struction at a better price. O'Brien thanked Diener for the report. GIESELER thanked Yanez for his support in getting the ROC Depot IIDnurnent built. He noted that the IIDnUllellt commeIIDrated the transfer of the Alaska Railroad from the federal govemnent to the state of Alaska. GIESELER also asked about the status of the Kenai Fjords Park sign which was to be placed at the "Y" . Martin stated that the Park Service had ordered a sign some time ago, but was required to request it through the federal prison industries program. Park Service personnel had indicated that they hoped to have the sign up by Spring. GIESELER noted that ten to fifteen families of sawmill employees would be IIDving into Seward next week. In response to a question from Gieseler, Schaefermeyer stated that the city is still working on acquiring funds to extend the dock at SMIC. XVI. CITIZENS' DISCUSSION: GARY MARSHAlL, Woodland Hills Estates, Nash Road, stated that he had talked to Knudson on Sunday concerning his proposal to construct a golf course in Seward. He stated that r C SE 154948 1 PAGE 205 REGULAR MEETING - OCTOBER 24, 1988 VOLUME 23 I his research and conversations with golf course architects had indicated that the bare minimum aIIDunt of property needed for a 9-hole course was thirty acres. He noted that the 18-acre site would require fairways so narrow that IIDst golfers could not keep the ball within the course. He also questioned the city's liability if errant shots resulted in golf balls flying onto the highway and into residential areas. Harshall stated that Seward needs a golf course and expressed his desire to work with Mr. Knudson in providing that course. He stated that he had asked Knudson to work with him on his planned course adjacent to the airport. XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCMMENTS: None XVIII. ADJOURN1ENT : The meeting was adjourned at 9:25 p.m., and, after a short recess, the Council reconvened in executive session to dt~;#s the prison arbitration agreement. ~. 1: ~h . . Gies~/ ...4 Mayor ) , I" ,,\' , :0.', ~ S. '''\ ' "f;;itY Cler~, ',". , :'c. . " '<~'r:~'~ .", .' '", j, .." ~~,\i), ~,,~'~~alf_.r:. ..... ,>> ..J- \., f,::::~/" r PAGE 205 SPECIAL MEETING - OCTOBER 27, 1988 VOLUME 23 I. CALL TO ORDER: The October 27, 1988, special meeting of the Seward City Council was called to order at 12:12 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnember Sirnutis led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and Councilrnembers Hil- ton, Meehan and Simutis (Dunham and Noll were absent; O'Brien was excused) I Present also: City Manager Royle, Deputy City Manager 205 ( CSE154949 ) 206 GATEWAY SUB/ CON- I /CON- ;2'1 ::>1 CON - ~tt RESO: (Approving Agreements w/ Alliance Bank, METCO/Trend JV, & Hall Quality Builders) PAGE 206 SPECIAL MEETING - OCTOBER 27, 1988 VOLUME 23 Schaefermeyer, City Attorney Arvidson, Administrative Assistant Martin, and City Clerk Murphy IV. APPROVAL OF SPECIAL MEETING AGENDA: :MEEHAN MlVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENl'ED; THE MarION WAS SECONDED BY HILTON AND CARRIED UNANI- MOUSLY. V. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nor SCHEDULED FOR PUBLIC HEARING: None VI. RESOLUTIONS: A. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, CONCERNING AGREEMENTS WITH AlLIANCE BANK, METCO/TREND JV, AND HALL QUALITY BUILDERS AS 'IHEY RElATE TO GATEWAY SUBDIVISION. HILTON MlVED TO APPROVE RESOLUTION NO. 88-119; THE MOTION WAS SECONDED BY MEEHAN. Arvidson noted that the city was reviewing final docUllellts with Hall at this time and requested a short recess until signed agreements were in hand. RECESS: The meeting was recessed at 12:15 p.m. and reconvened at 12:24 p.m. Arvidson stated that signed agreements with both METCO/Trend JV and Hall Quality Builders were on file. He stated that the new agreements reflected the deletion of Lot 19, Block 2, Gateway Subdivision, from the Hall agreement. In addition, Hall intended to acquire the lots on which METCO/Trend JV had not started construction. Arvidson stated that the resolution included a pro- vision to extend the Alliance Bank agreement through Decerrber 1988; however, if the city was able to close out all lots by November 1, there would be no need to extend the Alliance Bank agreement and the administration would not exercise the au- thorized extension. However, if the lots could not close by Novenber 1, the extension would be exercised. In response to a question from Hilton, Arvidson stated that the agreement with Alliance Bank would terminate on December 31, 1988, at the latest, unless extended by vote of the CounciL ( CSE 154950 ] '}.07 PAGE 207 SPECIAL MEETING - OCTOBER 27, 1988 VOLUME 23 I THE QUESTION WAS CAlLED AND THE RESOLUTION WAS AP- PROVED BY UNANIMlUS VOTE OF THE COUNCIL. VII. COUNCIL DISCUSSION: None VIII. CITIZENS' CCM1ENI'S: None IX. COUNCIL AND ALMIN. RESPONSE TO CITIZENS' CCM1ENTS: ;~,-".i..<,' f None ,<C ~.i: (. }. x-. ., ..,1 :,.'~. .~':;,~. ADJOURNMENT : ....1 " J V, 1:' _ti- , .' t,' .\L \) . \. 'I~ ~:.- .. ", "''.<f... ." '~;"s,> <, ' , . ,:"'1 .. , '~"i'1'-,_ . " ~~~. :?"J,.ty^'Clerk III (City Seal) The meeting was adjourned at 12:30 p.m. ~. 1: A ".4 Harry . GieS~ Mayor ---------------------------------------------------------------- PAGE 207 REGillAR MEETING - NOVEMBER 7, 1988 VOLUME 23 I. CAlL TO ORDER: The Noverrber 7, 1988, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Hayor Harry E. Gieseler. II. OPENING CERFM)NY: Councilrnember Meehan led the pledge of allegiance to the flag. III. ROIL CAlL: Present were: Mayor Gieseler and Councilrnembers Dun- ham, Meehan, Noll and SiIIlltis (Hilton and 0' Brien were excused) I Present also: City Manager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, Engineering & Utilities t1anager Diener, Port Marketing Director Gates, Deputy Finance Director Gifford, Administra- tive Assistant Martin, Parks & ( C Sf 154951 ) 208 PAGE 208 REGULAR MEETING - ooVEMBER 7, 1988 VOLUME 23 Recreation Director Yanez, Kenai Peninsula Borough Assembly President Sewall and City Clerk Murphy IV. APPROVAL OF MINUTES: SIMUrIS MlVED TO APPROVE THE OCTOBER 24 AND OCTOBER 27, 1988, MINUTES AS WRITTEN; THE MarrON WAS SECONDED BY MEEHAN AND CARRIED UNANIMlUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Noll requested the addition of proposed Resolution No. 88-122 to the regular meeting agenda. MEEHAN MlVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MarION WAS SECONDED BY NOlL AND CARRIED UNANlMOUS- LY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Sewall reported on the November 1, 1988, Assenbl y meeting. VII. CITIZENS' CCM1ENTS ON AGENDA ITINS NOT SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: Gieseler requested the addition of proposed Resolution No. 88-121 to the Consent Calendar as Item No. 12. SIMlITIS MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI- MOusLy. The following actions were taken: 1. September 30, 1988, invoice from Baily and Mason for legal services totalling $138.75 was approved for payment; 2. October 14, 1988, invoice from Wiley, Rein & Fielding for legal services totalling $54.05 was approved for payment; C.ATTY: C.ATTY: ACCOUNTS PAYABLE: Accounts payment; 3. Novenber 1, 1988, Finance Department I s list of Payable totalling $1,989,911.76 was approved for CON- IL\: 4. One year extension of contract with the Seward Phoenix Log for display advertising was approved; (CSE15495Z 1 I I I PAGE 209 REGULAR MEETING - ooVEMBER 7, 1988 VOLUME 23 5. Resignation of Larry Johnson from the Seward Advisory Planning and Zoning Comnission was accepted and the Clerk was instructed to advertise the vacancy; 6. Revised Prison Project Budget was approved with the exception that an additional aIIDunt of $50,000 to the Project Management Reserve is contingent upon revision of the Project Management Agreement between the city and Dar/PF; 7. Change Order No. 1 to the contract with Seward Construction Services (Control House Addition for Substation) to cover construction of a utiliduct beside the control house addition, for an added contract aIIDunt of $2,240, was approved; 8. Change Order No. 7 to the Underwater/Swalling Contract No. CON-2l8 (Ship Transfer System Civil Works & Util- ities), providing a credit for various revisions in the elec- trical power distribution system and lighting system necessitat- ed to meet construction schedule and decreasing the contract by $5 ,000, was noted for infonnation; 209 P&Z: (Resignation of L. Johnson) PRISON: (Revised Budget Approved) CON- 3og: CON-218: 9. Change Order No. 4 to the Underwater/Swalling CON-228: Contract No. CON-228 (Ship Transfer System Civil Work Expan- sion), providing a credit for various revisions in the elec- trical power distribution system and lighting system necessitat- ed to meet construction schedule and decreasing the contract aIIDunt by $15,000, was noted for infonnation; 10. October 28, 1988, contract corrq:>letion report as submitted by Diener was noted for information; 11. Proclamation of the Mayor designating Noveni>er PROCLAMATION: 13-19, 1988, as AMERICAN EDUCATION WEEK was noted for informa- tion; and 12. Resolution No. 88-121, urging the Governor to appoint a resident of Seward to the Alaska Railroad Board, was approved. IX. PUBLIC HEARINGS: None X. PRESENTATIONS WITH PRIOR NOTICE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: ARR/RESO: (Urging apptmt of Seward resident to Brd) ( CSE154953 ) 210 PUBLIC WORKS/ INSURANCE/RESO: (Repair of Lift Station No.3; approval of general re- lease in ex- change for pymt of damages) INT.PEACE CONF/ RESO: PAGE 210 REGULAR MEETING - NOVEMBER 7, 1988 VOLUME 23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ENACTING A REORGANIZED CODIFICATION OF THE ORDINANCES OF THE CITY OF SEWARD. SIMUrIS MlVED TO INTRODUCE PROPOSED ORDINANCE 00. 610; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMlUSLY. (Public hearing was scheduled for Novenber 28, 1988. Murphy noted that Joanne Yerkes would be present at that meeting to make a short presentation and answer any questions the Council might have.) B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AlASKA, APPROPRIATING FUNDS FOR REPAIR AND REPIACEMENT OF EQUIPMENT AT SEWAGE LIFT STATION NO. 3 AND APPROVING A GENERAL RELEASE TO AlASKA NATIONAL INSURANCE COMPANY DISCHARGING AIL ClAIMS AGAINST COASTAL, INC., IN CONNECTION WITH DAMAGE TO SAID LIFT. MEEHAN MlVED TO APPROVE RESOLUTION 00. 88-120; THE MOTION WAS SECONDED BY SIMUrIS. In response to a question from Meehan, Diener stated that the $41, 807.98 Which would be received from the insurance corrq:>any 'WOuld replace rruch of the equipment, repair other damaged equipment and return the lift station to its former condition; however, it would not allow the city to do everything it would like. He added that all new equipment would be under warranty and the facility should be in "good shape". THE QUESTION WAS CAlLED AND THE MarION CARRIED BY UNANIMlUS VOTE OF THE COUNCIL. 2. Copies having been made available to the public and distributed to the Council prior to the start of the regular meeting, Gieseler noted by title only a proposed resolu- tion entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AlASKA, URGING THE STATE OF AIASKA TO OFFER ITSELF AS THE SITE OF A CONFERENCE FOR PEACE IN NORTHEAST ASIA. ( C Sf 154q54 ) I I I PAGE 211 REGULAR MEETING - NOVEMBER 7, 1988 VOLUME 23 NOIL MOVED TO APPROVE RESOLUTION NO. 88-122; THE MOTION WAS SECONDED BY SIMUrIS. Noll stated that the Republic of Korea is still trying to reach some sort of peaceful agreement with North Korea, and, in an effort to further this cause, President Roh Tae Woo had called for a conference for peace in Northeast Asia to include representatives of both North and South Korea, Japan, the People's Republic of China, the Union of Soviet Socialist Republics and the United States. Noll said that, after hearing of the proposed conference, he (Noll) had approached Alaska Office of International Trade Director Bob Poe and suggested that Alaska host the treaty session. Poe had passed this suggestion on to the Governor, and Cowper had, on October 29, 1988, announced that the state of Alaska would propose to be the site of the conference. Noll urged the Council to approve this resolution in support of the conference. THE QUESTION WAS CAlLED AND THE MlTION CARRIED UNANI- MOUSLY. XII. UNFINISHED BUSINESS: A. Murphy noted that the following IIDtion was on the floor (postponed from the October 24, 1988, meeting): 0' BRIEN MlVED TO ISSUE A LETTER OF NOooBJECTION TO THE VACATION OF All. EASE- MENTS AND PUBLIC ACCESSES AS SHOON ON THE SEWARD INDUSTRIAL PARK PIAT IN FAVOR OF NEW EASEMENI'S AND RIGHTS-OF -WAY IN THE MARINA SUBDIVISION, BlDCK 2 PIAT, WITH THE VA- CATIONS TO BECCNE EFFECTIVE UPON APPROVAL OF THE FINAL PIAT OF BLOCK 2, MARINA SUBDIVI- SION; THE MOTION WAS SECONDED BY HILTON. Diener noted that all needed easements and rights-of- way were now in place as shown on the copy of the plat which had been distributed to the Council just prior to the meeting. THE QUESTION WAS CAlLED AND THE MOTION CARRIED WITH FOUR "YES" VOTES AND MEEHAN ABSTAINING. (Meehan is employed by Seward Fisheries, Inc., lessee of the subj ect property.) XIII. NEW BUSINESS: A. GIESEIER NCMINATED SHARON ANDERSON, RHONDA ANDERSON-HUBBARD AND JAMIE ROSE TO FIIL THE THREE VACANT SEATS ON THE TRADE AND CCM1ERCE ADVISORY BOARD; THEY WERE APPOINl'ED TO THE THREE-YEAR TERMS WITHOUT OBJECTION FRCM THE COUNCIL. B. SIMUrIS MOVED TO APPROVE THE COlLATERAL ASSIGN- MENT OF JAMES PRUITT'S LEASE INTEREST IN CITY PROPERTY LOCATED WITHIN TRACT A, ooRTH HARBOR SUBDIVISION, AND KNOON AS LEASE 00. RE-043, TO KEY BANK; THE MarION WAS SECONDED BY NOIL. ?,'1 ROW VACATIONS/ SEWARD IND. PARK/ MARINA SUB: TRADE BOARD: (Appointments) RE-043: ( CSE154955 1 212 PAGE 212 REGULAR MEETING - ooVEMBER 7, 1988 VOLUME 23 In response to a question from Gieseler, Schaefermeyer stated that this property was the site of the Gateway Texaco station. Arvidson noted that the city's IIDre recent lease agreements contain a clause allowing the collateral assignment of lease interest in order to secure financing; however, this was an earlier lease and did not contain that provision. Responding to a question from Noll, Arvidson stated that, should the bank foreclose and acquire Pruitt's lease rights, the Bank would be required to operate the existing facility as outlined in the lease docurrent. THE QUESTION WAS CAlLED AND THE MlTION CARRIED BY UNANIMOUS VOTE OF THE COUNCIL. XIV. CITY MANAGER REPORTS: ROYlE invited the Council to tour the new Senior/Com- nnity Center on Tuesday at 1:30 p.m. ROYlE also asked the Council to schedule a YJOrk session to discuss future city plans for the land on -which Knudson has proposed to construct a golf course and to discuss capital priorities for legislative funding. Gieseler instructed the Clerk to schedule a work session for Thursday, November 10, begirming at 7:00 p.m. XV. COUNCIL DISCUSSION: DUNHAM asked the administration to do something about the litter problem along the Seward Highway caused by debris blowing from the Foodrnart property. She stated that the mess that had been created was a terrible eyesore, and urged the city to force Foodrnart to clean it up. MEEHAN corrq:>limented Diener for the contract corrq:>letion report, noting the four proj ects -which had been corrq:>leted under budget with no claims. NOIL thanked the Clerk's Department for providing in-home voting for those unable to come to the polls on Election Day. GIESELER concurred with Dunham that the highway was a "mess" . He stated that the owner of the Tesoro station had corrq:>lained to Foodrnart, Carr-Gottstein and the city, but nothing had been done. He instructed Royle to write a letter to Food- mart stating that the city will not tolerate littering and adding that another warning would result in a citation for littering. GIESELER stated that, following the recent recall effort, the Council had asked that the administration provide a letter of explanation of utility charges to local consUllers explaining each line item on the city's electric bills. He ( CSE15495b 1 I I I 213 PAGE 213 REGULAR MEETING - ooVEMBER 7, 1988 VOLUME 23 asked for a status report on that letter. Royle stated that he had acquired a copy of a similar fonn from Chugach Electric Association and had instructed Finance Director Peirson to create one for the city. Gieseler asked that the letter be mailed to each utility customer upon completion and that copies of it be made available for the public at the city utility window . GIESELER displayed a sign which Kevin Towsley had purchased at the recent Ducks Unlimited auction and had donated to the city to be placed adjacent to the Benny Benson Me1mrial at the Lagoon. He thanked Towsley for his donation. Gieseler also noted that Bill Alloway had donated fifty pounds of feed and Vice Mayor Meehan had donated one ton of feed for the ducks and geese that make their home in the Lagoon year-round. GIESELER noted that his annual letter to the citizens of Seward had appeared in the IIDst recent issue of the Phoenix rg. He reminded everyone to support the local hospital and ocal businesses throughout the Winter. Finally, GIESELER reminded everyone to vote on Tues- day. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL AND ALMIN. RESPONSE TO CITIZENS I CCM1ENl'S: None XVIII. ADJOURNMENI' : The meeting was adj ourned at 8: 19 p. m. ~ . tt. .4 rry . Gies;5jf... -'.... Mayor (Ci~1~:t).. i'~~<" - ~. _'.- 'r.' ,,'1A:l ">'. r' . -'f J'; .. r./\ '-. ,,/-,\1: t;'A'.V 1- ",' "J '~' o _._ ,,'". " 00 ~ -~ 5r";'Lvj~~ , ~ ~ . \~ .... ~ -.- ~ / ~ .;) ......~(* ~ 'f.~~'...." " .~ J'", '..;fi' )C~.... <::J{. ~'4)" 'H' \..~ .' -"7;;,,,,,f OF ~ .,' oI;..{.~~?~:':r::7:D'T.1'LO r CSE154957 ) 214 PERSONNEL: Plaque presented to Schaefermeyer PAGE 214 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 I. CAlL TO ORDER: The Novenber 28, 1988, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnernber Noll led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Gieseler and CouncilnErnbers Dun- ham, Hilton, Meehan, Noll, O'Brien and SiIIlltis Present also: City Manager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, HTGP&B Legal Assistant Yerkes, Port Marketing Director Gates, Engineering and Utilities Manager Diener, Adminis- trative Assistant Martin, Finance Director Peirson, Deputy Finance Director Gifford, Parks and Recreation Director Yanez, Hospital Administrator Campbell and City Clerk Murphy SPECIAL ITEMS: A. Gieseler welcc:xrv=d former Seward City Clerk Yerkes, now Legal Assistant for HTGP&B. B. Gieseler presented a plaque to Schaefermeyer in recognition of his outstanding service to the city as Interim City Manager from January 1 - September 30, 1988. IV. APPROVAL OF MINUTES: SIMUrIS MOVED TO APPROVE THE NOVEMBER 7, 1988, MINUTES AS WRITIEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: O'Brien stated that the Hospital Board had requested that New Business Item No. "H" (Request for work session) be withdrawn at this time. HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MarION \vAS SECONDED BY SIMUrIS AND CARRIED UNANI- MOUSLY. VI. BOROUGH ASSEMBLY REPORT: (CSE154956 1 I I I PAGE 215 REGUlAR MEETING - ooVEMBER 28, 1988 VOLUME 23 Kenai Peninsula Borough Assembly President Jonathan Sewall gave a verbal report of the November 15, 1988, Assembly meeting. VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS Nar SCHEDULED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENT CALENDAR: Royle requested the addition of Consent Calendar Item No. "8" (Request for administrative correction of lease error). In response to a question from Dunham concerning Item No. "6", Martin stated that the proposers did not plan to construct a building on the proposed lease site. He added that he was seeking permission to begin lease negotiations only and noted that this would come back to Council for public hearing and action at a later date. AMENDED ; MOUSLY. MEEHAN MJVED TO APPROVE THE CONSENT CALENDAR AS THE MarION \VAS SECONDED BY HILTON AND CARRIED UNANI- The following actions were taken: ?1S 1. Resolution No. 88-123, adopting the results of CENSUS/RESO: the 1987 Kenai Peninsula Borough Special Census and setting the population of the city of Seward, was approved; 2. Resolution No. 88-124, authorizing the purchase of sewage grinders for the Spring Creek Correctional Center without full utilization of city bid procedures, was approved; 3. Resolution No. 88-125, concerning the construc- tion and paving of Cottonwood Avenue, was approved; 4. November 1, 1988, invoice from Wohlforth, Flint & Gruening for legal services totalling $477.13 was approved for payment; Accounts payment; 5. Noverrber 16, 1988, Finance Department's list of Payable totalling $1,387,885.16 was approved for PRISON/PURCHASING/ RESO: STREETS/RESO: C.ATTY: ACCTS. PAYABLE: 6. Novenber 21, 1988, memorandum from Martin re- MARINA SUB: questing Council consent to proceed with lease negotiations with Lee Gordanier and Tanya Sandefur, dba Four Seasons Boat Ser- vices, for Lot 1, Block 2, Marina Subdivision, was approved; 7. Novenber 22, 1988, memorandum from Murphy recorn- C. COUNCIL: mending cancellation of the December 26, 1988, Council meeting was approved; and [ CSE154959 1 216 RE-018: PUBLIC HEARINGS: (Gateway Sub. disposal to Alliance Bnk) CITY CODE/ORD: (Reorganization of Code) PAGE 216 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 8. November 21, 1988, rnenDrandum from Martin re- questing authorization to proceed with an administrative correc- tion to RE-018 (Alaska Marine Highway System lease of Ferry Depot and Dock) by refunding $23,725 was approved. IX. PUBLIC HEARINGS: Notice of Public Hearing as posted and published as required by law regarding the disposal of all city-awned lands located within the Gateway Subdivision to Alliance Bank in consideration of the termination of the city/Alliance Bank Option Agreement dated May 5, 1988, was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NOTICE ONLY: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing and Enactment: 1. Copies having been made available to the public, Gieseler noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ENAcrING A REORGANIZED CODIFICATION OF THE ORDINANCES OF THE CITY OF SEWARD. Notice of public hearing as posted and published as required by law was noted and the public hearing was opened; no one appeared in order to be heard and the public hearing was closed. HILTON MlVED TO ENAcr ORDINANCE NO. 610; THE MlTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. C. Resolutions: GATEWAY SUB/DEEDS/ 1. Copies having been made available to the RESO: (Disposal public, Gieseler noted by title only a proposed resolution to Alliance Bnk) entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING THE DISPOSAL OF CITY -CMNED LAND WITHIN GATEWAY SUBDIVI- sION TO ALLIANCE BANK IN CONSIDERATION OF THE TERMINATION OF THE CITY/ALLIANCE BANK OPTION AGREEMENT OF MAY 5, 1988. r CSE154960 1 I I I 217 PAGE 217 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 SIMUTIS MOVED TO APPROVE RESOLUTION NO. 88-126; THE MOTION WAS SECONDED BY DUNHAM. In response to a question from 0' Brien, Schaefermeyer stated that approval of this resolution was the final step to end the city's relationship with Alliance Bank. Noll expressed an objection to a portion of the sixth ''Whereas'' clause in the resolution, stating that there was a potential for long tenn benefit to the conm.mity. Schaefermeyer stated that this clause referred to the city's inability to recoup its investment in the short tenn and did not mean to reflect longer range goals which would be achieved through the develo~nt of the subdivision. NOIL MOVED TO AMEND THE RESOLUTION BY DELETING THE PHRASE "AND DOES Nar SEE ANY POTENrIAL FOR DIRECTLY RECOUPING ITS PAST INVES'lMENr OVER THE NEAR TO MID TERM' FRCM THE SIXTH "WHEREAS" CLAUSE; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANlliOUSLY. THE QUESTION WAS CALLED ON TIlE MAIN MarION AND RESOLU- TION NO. 88-126 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. 2. Copies having been made available to the CIP/RESO: public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, ADOPTING THE FISCAL YEAR 1989 CAPITAL IMPRO\TEl1ENT PROJECTS PRIORITY LIST FOR THE 1989 LEGISIATIVE SESSION. MEEHAN MlVED TO APPROVE RESOLUTION NO. 88-127; THE MarION WAS SECONDED BY NOIL AND CARRIED UNANIMOUSLY. 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: CIP/RESO: A RESOLUTION OF TIlE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING A F1JNDING PLAN FOR THE CITY'S FISCAL YEAR 1989 CAPITAL PROJECTS IDENTIFIED IN THE CITY' S THREE-YEAR CAPITAL PLAN. SIMUrIS MJVED TO APPROVE RESOLUTION NO. 88-128; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY. 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: t CSE154Q61 1 218 PAGE 218 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 CAMPGROUNDS/RESO: (Auth. city mngmt. of public camp- grounds, setting new fees, & ap- propriating funds) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AIASKA, AUTHORIZING CITY MANAGE- MENT OF PUBLIC CAMPGROUNDS, SITTING CAMPER FEES, AND APPROPRIATING FUNDS FOR PREPARA- TION FOR THE 1989 CAMPER SEASON. HILTON MOVED TO APPROVE RESOLUTION NO. 88-129; THE MarION WAS SECONDED BY SIMUrIS. Gieseler asked why the administration was requesting a $0.75 per night increase in camper fees when other carmmities are lowering prices. Royle noted that raising the rates would allow the city to make needed improvements in the city's campgrounds. He stated that the public campgrounds were aIIDng the city's most attractive recreational assets and could provide revenues to enhance recreation throughout the city. Yanez stated that the $5.00 fee included sales tax. In response to a question from O'Brien, Royle stated that the city could not legally dedicate these revenues to Parks and Recreation, but the city had traditionally directed funds earned by that department towards maintenance and expansion of the department's programs. Meehan stated that Yanez had done a good job of putting together his proposal to internally administer public campgrounds. He noted, however, that when the city administered this program in the past it was not very attractive. He ex- pressed concern that the city was contemplating "taking over", without benefit of public hearing, after the private sector had made the program profitable. Simutis stated that she appreciated Meehan's comments, but disagreed with his conclusions. She stated that earlier poor management by the city had resulted in turning over camper park operation to a private contractor. However, that was no reason to deny the current administration the opportunity to operate the parks. She stated that public input was not needed prior to .making a decision to manage a resource that is already owned by the city. Hilton concurred, stating that collection of campground fees had passed from the private sector to the city in the past without benefit of public hearing. He stated that recent private sector management of the campgrounds had been an experiment and had been undertaken before the city realized the revenue potential of the program. He noted that the city had invested public funds in the past few years in improving the campgrounds and he felt it appropriate to return management of the campgrounds to the city at this time. Dunham stated that Yanez would be able to provide the Chanber of Commerce with IIDre useful infonnation than was supplied by the private contractor. She also commended Yanez on his plans to market the campgrounds. She stated that she favored city management of the campgrounds. ( CSEl5496l 1 I I I PAGE 219 REGULAR MEETING - NOVENBER 28, 1988 VOLUME 23 Hilton noted that the city was ultimately responsible for the campgrounds no matter who managed their operation, and with city management the administration and council vvould have IIDre control. Meehan stated that he was not opposed to city manage- ment of the campgrounds, but felt a public hearing should be held first. THE QUESTION WAS CAlLED AND RESOLUTION NO. 88-129 WAS APPROVED WIlli SIX "YES" VOTES AND MEEHAN VarING ''NO''. Gieseler asked Yanez to provide him with the dates that caravans would be arriving in Seward this camper season so that he could personally welcome them to town. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. Gieseler noted that the Clerk had advertised a vacancy on the Planning Comnission and had received only one application. Shortly prior to the meeting, the Clerk had received a memorandum from the Building Inspector stating that the applicant, Lee Gordanier, was not a resident of the city, but resided on Resurrection Road. Therefore, he would not be eligible to serve on the Corrrnission. The Mayor instructed the Clerk to readvertise the position. MUrphy requested permission to advertise the vacancy in January when other seats created by the expiration of terms would occur; the Council concurred. B. SIMUrIS MOVED TO PAY THE CLAIM FOR DAMAGES TOTALLING $567.74 AS FILED BY MARGARET DECK; THE MarION WAS SECONDED BY HILTON AND CARRIED BY UNANIMOUS VOTE OF COUNCIL. (Damage to Deck's appliances had been caused by negligence of the city electric crew.) C. 0' BRIEN MlVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE A SEITLEMENT AGREEMENT IN THE CAVANAUGH CASE; THE t<m'ION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. D. oou. MlVED TO AUTHORIZE THE CITY MANAGER TO AWARD A CONTRACT TO SEWARD CONSTRUCTION SERVICES TO DESIGN AND BUILD TWO 8' X 10' BUILDINGS FOR A PRICE Nar TO EXCEED $6,994.00, WIlli A PROJECT CONTINGENCY OF $700.00, FOR A TOTAL PROJECT BUDGET OF $7,694.00; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANI- MOUSLY. E. MEEHAN MOVED TO AUTHORIZE 'mE CITY MANAGER TO AWARD CONTRACTS Nar TO EXCEED $5,000.00 EACH TO MEI'CO, INC., AND AFOGNAK LOGGING, TO PROVIDE SNCM REMOVAL AND SANDING SERVICES ?19 P& z : (Gordanier application not accepted - Clerk to readvertise) CLAIMS FOR DAMAGES: (Deck claim PAID) I LITIGATIONS: I (Cavanaugh sttlmt agrmt approved) PRSION/CON- 312-: (Sewer utility instrument shel- ters) STREETS/CON- 311 (Snow removal contracts) (CSE154963 ) 220 DOCKS & HARBORS/ PERSONNEL: (Approval of Port Marketing Director Pos.) PAGE 220 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 FOR THE CITY; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMlUSLY. F. SIMUrIS MOVED TO AUTHORIZE THE CITY MANAGER TO HIRE CHRIS GATES AS THE PORT DIRECTOR FOR THE CITY OF SEWARD; THE MOTION WAS SECONDED BY 0' BRIEN. GIESELER MJVED TO AMEND THE MOTION BY CHANGING SALARY TO $52,000 ANNUALLY; CHANGING THE JOB TITLE TO "PORT MARKETING DIRECTOR"; CHANGING THE DATE FOR GATES' MOVE TO SEWARD TO JULY 1, 1988; AND DELETING SECTION FIVE IN THE MEMORANDUM (REFERENCES TO BONUSES); THE MOTION WAS SECONDED BY MEEHAN. Royle stated that $52,000 was the salary Gates was currently paid and recommended that, in recognition of the fact that he has been responsible for many important developments in the city, a step up in pay was proper. He also stated that Gates felt it important that his title put him on an equal footing with other Port Directors on the West Coast. Royle noted that, while Gates' main focus would be on marketing SMIC, the title "Port Director" would lend him IIDre credence in his dealings with those outside the city. In response to a question from O'Brien, Royle stated that a job description outlining Gates' duties would be prepared after approval of the position was given by the Council. O'Brien objected to acting on the position until the Council was presented with a job description, stating that he wanted to be certain that Gates' position would not conflict with the Harbor- master's. Dunham stated that she was annoyed once again that she had to learn about a request for Council action from someone other than the administration. She noted that the Council should have received at least a rnerOC>randum concerning the proposal before it became public knowledge. Gieseler stated that he would assUlle some of the responsibility for Dunham's corrq:>laint since he had been discussing this issue with the administration for several rmnths and had informed several CouncilIIEI1hers himself. He apologized to Dunham and any other members of Council who were not kept informed. In addition, Gieseler stated that he was pleased with Gates' performance under his contract with the city; however, he did not agree to a salary increase at this time. Noll asked if Gates' would continue to receive up to $500 per month for expenses during his stays in Seward until he and his family have relocated. Royle stated that sufficient funds had been budgeted to make this possible. Dunham stated that, if Gates became a regular city employee, he would receive certain benefits such as retirement and health insurance which would, in itself, be a "raise". ( CSE154964 1 I I I 221 PAGE 221 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 Schaefermeyer noted that Gates receives full benefits under the terms of his existing contract. Noll stated that he would still prefer to discuss increased salary at budget time, not before. O'Brien asked if the position was really needed on a fulltime basis. He stated that he had thought the position was created to fill a special need at the time and was not envi- sioned to be a pennanent position. SiI!lltis stated that the need for Gates' services still existed, and would continue to exist as the facility (SMIC) grows. Hilton stated that he would like to know precisely what Gates' job would be. He noted that the Council was very IIRlCh aware of what Gates had done in the past, but Council should be allowed to review a job description before being asked to act on approving a new position. He stated that his concern did not reflect on Gates or his perfonnance, but with the process, adding that Council should not be asked to approve new positions without a clear understanding of exactly what was being approved. Hilton stated that the city had been criticized in the past for "bureaucracy building", and actions such as this one could engender like criticism from the public. SiI!lltis stated that the memorandum from Gates listed the details of the position and contained enough information for Council to make a decision. Meehan concurred with Simutis. Dunham stated that she agreed with Hilton and 0' Brien that the Council should be approving a job description outlining specific duties. Noll stated that it was clear to him that Gates and the Harbormaster would have completely separate responsibilities and he was prepared to IIDve forward on this request for approval at this time. He stated that Gates had made a vital contribu- tion to the cOlIlIllIDity by increasing the city's tax base and employment opportunities. O'Brien asked if it was imperative that Council act immediately. Royle noted that Gates' contract expired December 7. O'Brien stated that he could see no reason to rush into anything and suggested that, if Gates had no objection, his contract be extended until the Council had a chance to review and approve his job description. Gieseler stated that he had discussed this proposed action with various members of the Council and could see no reason why the Council could not act immediately on the request. He objected to the Council attacking an individual, adding that if the Council agreed that Gates has been doing a good job, the Council should IIDve forward with the Manager's plan. Hilton stated again that his objection did not consti- tute a personal attack and noted that he was in favor of hiring ( CSE154965 1 222 PURCHASING/CITY EQUIPMENT: (C.Manager to hire consul- tant to assess city's comput- er needs) PAGE 222 REGULAR MEETING - ooVEMBER 28, 1988 VOLUME 23 Gates. He reiterated that his problem was with the procedure and he objected once again to approving the position without first reviewing and approving the job description. He also objected to setting a precedent for future actions. 0' BRIEN MOVED TO POSTPONE ACfION ON THE MarrON UNl'IL THE DECEMBER 12, 1988, MEETING; THE MOTION WAS SECONDED BY DUNHAM. Gieseler asked for a ruling on which IIDtion had precedence - the IIDtion to amend or the IIDtion to postpone. Arvidson and Murphy asked for a short recess to research the question. RECESS: The meeting was recessed at 9:10 p.m. and reconvened at 9: 17 p.m. Murphy stated that the IIDtion to postpone had prece- dence and noted that, if the IIDtion to postpone was approved, the Council would vote on the amendrrent at the next meeting. THE QUESTION WAS CAlLED ON THE MarION TO POSTPONE AND THE MlTION FAILED WITH FIVE "NO" V01ES AND DUNHAM AND 0' BRIEN VarING "YES". THE QUESTION WAS CAlLED ON THE AMENIMENT AND THE MarION WAS APPROVED BY UNANIMlUS VOTE OF THE COUNCIL. HILTON MlVED TO POSTPONE ACfION UNTIL THE FIRST MEETING IN DECEMBER F'OILCMING REVIEW AND APPROVAL OF A JOB DE- SCRIPTION FOR THE POSITION; THE M)TION WAS SECONDED BY DUNHAM AND FAILED WITH FOUR "NO" VOTES AND DUNHAM, HILTON AND 0' BRIEN VOTING "YES". THE QUESTION WAS CAlLED ON THE MAIN MlTION AND THE MarION CARRIED WITH SIX "YES" VOTES AND DUNHAM VarING "NO". G. SIMUrIS MlVED TO FOLLCM THE RECCM1ENDATIONS OF THE CITY MANAGER CONCERNING THE CITY'S COMPUTER NEEDS; THE MarION WAS SECONDED BY oolL. Hilton stated that he was concerned to learn that after the lengthy process followed by Peirson that the city was not closer to correcting the deficiencies in the financial reporting system. In response to his (Hilton's) question concerning new time lines, Royle stated that if Council followed his recommendation, it would be six to nine rmnths before a new system was in place. Hilton inquired about the projected cost for an assessment of the city's corrq:>Uter needs (as requested by Royle). He also asked if the city's auditors \oKmld have a conflict in recommending a system, expressing his concern that they (the auditors) would select a system which would "dovetail" their audit system and effectively lock the city into one auditor. r C SE 154q66 ) I I I ')') <:~ , _.~ I___J 'l PAGE 223 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 Hilton stated that he felt Peirson had thoroughly researched what was on the market and added that he did not feel Price Waterhouse could do a better job. Meehan stated that he, too, was aware of the aIIDunt of work which Peirson had put into his search for a new corrq:>uter system. Meehan stated that he had contacted some corrq:>uter people employed by Icicle and had been told that Digital pro- duced a great system. He also noted that Digital had agreed to sign an agreement guaranteeing that the city's PC's would be able to network within its system. Meehan stated that Depart- ment Heads should have been contacted before a system was selected, but he noted that the city manager could get the necessary infonnation from the different departments without contracting with someone like Price Waterhouse, and the RFP could be prepared in-house. Simutis stated that she was unable to comment on the work Peirson had done since she did not receive it until just prior to the meeting and had not finished reading it. She suggested that the Council postpone action until the next meeting. O'Brien stated that he ordinarily did not favor expensive studies, but this was one exception. He stated that he was not willing to buy a computer system until an experienced consultant reviewed the city's needs and made a recommendation. O'Brien noted, however, that the consultant's review need not extend the process for five or six IIDnths. He suggested that several firms be contacted and that the City t1anager contract with one of them to review the city's needs and get back to the Council at the next meeting with a recommendation. Noll and Dunham concurred. Gieseler stated that his concern with Peirson's recommendation was that he had looked at only the financial and accounting needs of the city and not the city as a whole. He stated that the system should meet the needs of all departments of the city. However, he stated that he did not want to wait six to nine rmnths to get a new system installed. Schaefermeyer stated that the city had already made a substantial investment in PC's for key city departments. He noted that whatever system the city recommended would have the capacity of networking with the city's existing PC's, but the primary function of the minicorrq:>uter was to take care of the city's financial and accounting needs. Gieseler suggested that the city lease the new comput- er rather than buy it. t-DUSLY. ment if THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANI- Royle was instructed to proceed with the needs assess- it could be done within his $5,000 limit; otherwise, he ( CSE154967 1 224 PAGE 224 REGULAR MEETING - NOVEMBER 28, 1988 VOLUME 23 was to come back to Council at the next meeting for an appro- priation for the assessment. H. Deleted XIV. CITY MANAGER REPORTS: ROYLE complimented Yanez on the Winter Recreation Schedule which was just released. He also reported that he had received nine applications as a result of his nationwide search for a Finance Director. One applicant had withdrawn, and of the remaining eight, three would be explored further. XV. COUNCIL DISCUSSION: O'BRIEN stated that the Community Hospital Board was now taking a IIDre aggressive approach to its financial problems and was in the middle of working on those problems at this time. He added that he and the city manager were working on an ex- pedited financial reporting process for the hospital. DUNHAM stated that she did not want to be asked in the future to vote on an issue for which she was not prepared and had not been made a part of the decision making process. She stated that she expected the administration, mayor and council to work together to keep each other informed. HILTON asked when Peirson would be leaving. Royle stated that Peirson had agreed to stay until a replacement was found or until he found other employment. HILTON also concurred with Dunham, noting that it was important that the entire Council be kept informed about what the administration was doing. GIESELER stated that the Downtown Block Party had been a success. He noted that Kent Dawson would be in town on December 3-4. Gieseler asked Royle to prepare a job description for Gates and distribute it to Council prior to the next Council meeting. Finally, Gieseler appointed Dunham as the Council's Representative on an Ad Hoc Carrmittee to meet with the Superin- tendent at Spring Creek Correctional Center to address any concerns prison officials might have. He asked Dunham to request a representative from the Landlord's Association and one from the Chamber of Conmerce to serve with her. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' COMMENTS: None ( CSE154968 1 I ;...... \.: .. ' -'- .j\., I I PAGE 225 REGUIAR MEETING - ooVEMBER 28, 1988 VOLUME 23 XVIII . ADJOURNMENI' : The meeting was adjourned at 10:03 p.m. .( ~L- ~~A64 Harry . Gieseler Mayor ,.' '" '- ./: . <€i~~ Seal) ,"-, , ....., -~~.---- - - - -- - - - - - -- - - - - - -- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - -- '. PAGE 225 SPECIAL MEETING - DECEMBER 5, 1988 VOLUME 23 I. CAIL TO ORDER: The December 5, 1988, special meeting of the Seward City Council was called to order at 12:12 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilrnernber Sirnutis led the pledge of allegiance to the flag. III. ROLL CAIL: Present were: Mayor Gieseler and Councilrnernbers Hil- ton, Meehan, Noll and Simutis (Dunham was excused and O'Brien arrived at 12:18 p.m.) Present also: City Manager Royle; Deputy City Manager Schaefermeyer; City Attorneys Arvidson, Hughes and Lucas; Administrative Assistant Martin, Chief of Police Bencardino and City Clerk Murphy IV. APPROVAL OF SPECIAL MEETING AGENDA: SIMUrIS MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENrED; THE MarION \.JAS SECONDED BY HILTON AND CARRIED UNANI- MOUSLY. V. NEW BUSINESS: A. Royle stated that Fred Arvidson was no longer associated with the legal finn of Hughes, Thorsness, Gantz, Powell and Brundin, but was now employed by the finn of Perkins Coie. He noted Murphy's December 4, 1988, memorandum recommend- ing that Council retain Fred Arvidson as the city's interim city 225 C.ATTY: City legal services transferred to F. Arvidson & Perkins Coie) (CSE154969 1 PAGE 226 SPECIAL MEETING - DECEMBER 5, 1988 Vffi.UME 23 attorney in order to assure continuity of legal services for the city. Royle stated that he would support Murphy's reccmnenda- tion. MARY HUGHES, representing Hughes, Thorsness, Gantz, Powell and Brundin, stated that she had reviewed Murphy's meIIDrandum and agreed that the Council should provide for continuity of legal services, but felt that leaving the city's files with HTGP&B, during the interim until Council decided on a longer-tenn solution, would provide for a slIDOther transition. Hughes also took exception to Murphy's statement that HTGP&B had failed to provide a transition period. She stated that Arvid- son's inmediate departure from the finn had been a IIlltual decision; she added that the finn would not leave the city "in the lurch", but would make every effort to see that nothing "fell through the crack" during this interim period. Hughes stated that the finn would offer her services to the city as its primary contact, at least during the interim. Hughes warned that, should the city terminate its relationship with HTGP&B, the firm's ethical responsibilities to the city would terminate at that time. Gieseler stated that, if the city was considered by HTGP&B to be a valued customer, one of the "major" partners should have contacted the Mayor and Council when Arvidson resigned. Hughes responded that all partners are on an equal footing within the finn, and it had been decided that those attorneys who had worked IIDSt closely with the city should be the ones to contact the Council. Noll asked for an explanation of "ethical consid- erations" . Hughes stated that this meant simply that the finn would have no further duty to serve the client (city) once the files were rmved from the offices. In response to a further question from Noll, Hughes stated that HTGP&B would not be at liberty to represent clients in legal action against the city since its prior knowledge of city business would constitute a conflict. She noted that their professional code of ethics would not allow this to happen. Meehan stated that he wanted to make it clear to HTGP&B that Arvidson had not been lobbying the Council. Howev- er, when the Council learned that he had left the finn, the Council had approached Arvidson with questions. In response to a question from Gieseler, Arvidson stated that he had discussed the transfer of city files to Perkins Coie with the finn and he was confident that he could provide a sIIDoth transition for the city. He stated that IIDving the files would not be as complicated as Hughes had indicated, adding that the physical transfer should take no IIDre than one-half day. ( CSE154970 1 I I I 227 PAGE 227 SPECIAL MEETING - DECl'MBER 5, 1988 VOLUME 23 Noll asked for a list of legal issues before the City which would require action during the next thirty days. Arvidson noted several issues including human rights suit involving handicap access, upcoming IBEW negotiations, revision of the city personnel code, continued ordinance revisions now that the Code has been reorganized, a request for documents filed under the Freedom of Information Act, final settlement of the Cavanaugh case, a rrotion for change of venue in the Tipton/ Sassara case, the Hanson case, and possible financing of the prison industries facility and a branch of the university using the prison financing package as a rrodel. In response to a question from O'Brien, Arvidson stated that he spends approximately three-fourths of his time on city of Seward work. O'Brien asked Hughes if HTGP&B had an attorney available to provide this type and arrount of coverage for the city. Hughes responded that her calendar has been cleared for December and she would be available to devote full time to the city. O'Brien asked Arvidson if he had considered the transfer of docurrents and information in HTGP&B' s computers. Arvidson stated that this would not be a problem since hard copies existed for all docurrents on camputer. In addition, daily work on the computer could easily be downloaded to the Perkins Coie computer system since the two firms use the same computer sys tem. 0' Brien noted that he was concerned about Hughes' response to Noll's question about the "ethical issue" since the finn had taken on clients in opposition to the city even while Seward was a client. He stated that this raised concerns in his mind about the lack of conmmication within the finn. Hughes stated that she was aware that the finn had agreed to represent an insurance company in a case involving Joel Steelmm. She noted, however, that a computer inquiry was made and Steelmm had not been entered into the system as an "adverse party"; thus, the attorney representing the insurance company had not been aware that the city was involved in a dispute with Steel- mm. In response to a question from Hilton, Hughes stated that it would take some time to get "up to speed" on Seward's legal issues, but she was aware of how the city does business and she was confident that she would be able to prepare herself adequately to represent the city at Council IIEetings. She admitted that, given Arvidson's eight-year tenure as the city's principal contact in the finn, she might never have the knowl- edge about the city that he has at this time. Hilton noted that HTGP&B has technically represented the city, but in reality, Arvidson has been the city attorney. He stated that he saw no reason to change that arrangement and would be in favor of retaining Arvidson as the city's ( CSE154971 ) 228 PAGE 228 SPECIAL MEETING - DECEMBER 5, 1988 VOLUME 23 representative for the interim. Hilton added that he would favor requesting proposals for legal services in the next thirty days or so. In response to a question from Simutis, Royle stated that a reasonable interim time franE would be about six weeks. Simutis asked if Perkins Coie had discussed rates for city representation. Arvidson responded that Perkins Coie was willing to follow the SanE billing arrangement as the city currently has with HTGP&B. GIESELER M)VED TO TRANSFER TIlE CITY'S lEGAL SERVICES TO FRED ARVIDSON AND PERKINS COIE WIlli TIlE SAME FINANCIAL ARRANGEMENT AS TIlE CITY CURRENrLY HAS WIlli HI'GP&B; TIlE IDI'ION WAS SECONDED BY SIMUTIS AND CARRIED UNANlM)USLY. Gieseler stated that he would inmediately forward a letter to HTGP&B requesting the transfer of the files. VI. COUNCIL DISCUSSION: GIESELER noted a copy of a letter from the Marine Highway System to Senator Kerttula stating that the Tusturrena would remain in Seward. HILTON asked if a discussion of legal representation for the city would appear on the next agenda. O'BRIEN suggested that a work session would be a rrore appropriate setting for such a discussion. GIESELER stated that he would schedule a work session just after the first of the year. O'BRIEN suggested that the administration put together a list of the things which the Council should consider when discussing this issue. O'BRIEN stated that he had had an opportunity to watch the Anchorage Assembly in action recently, and the Seward City Council is "doing fine". mll. asked Hughes and Lucas to pass on the city's thanks for HTGP&B's past representation. He also asked them to let the finn know that the city was transferring the files because the Council believes that this will provide a SIIDother transition for the city. GIESELER noted that he and Simutis had visited with the Deputy Corrrnissioner of Corrections in Anchorage. He stated that Sirrutis was preparing an in-depth report for the Council. VII. CITIZENS' DISCUSSION: None VIII. COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENTS: None ( C SE 154972 1 I I I 229 PAGE 229 SPECIAL MEETING - DECl'MBER 5, 1988 VOLUME 23 IX. ADJOURNMENT : The meeting was adjourned at 1:14 p.m. ~. ~ ...{DA ;')-4 lfa . Gie~ Mayor Jq!tA l'eal} Ei ~, ;;: -;. .' S .'.' ':",;.~/i ..'_! ~~- fi..1r: ~l;\... '( ,/ .~ - .r:~'>-)-}(', -:-;~'." rnj' -"". . ---------------------------------------------------------------- PAGE 229 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 1. CAll. TO ORDER: The December 12, 1988, regular IIEeting of the Seward City Council was called to order at 7: 30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREM)NY: Councilmember Hilton led the pledge of allegiance to the flag. III. ROIL CALL: Present were: Mayor Gieseler and Counci.1members Dun- ham, Hilton, Meehan, Noll, O'Brien and Simutis Present also: City Manager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, Finance Director Peirson, Deputy Finance Director Gifford, Administra- tive Assistant Martin, Engineering & Utilities Manager Diener, Parks & Recreation Director Yanez, Dispatch Supervisor Pickett, Police Chief Bencardino, and City Clerk Murphy IV. APPROVAL OF MINUIES: SIMUTIS M)VED TO APPROVE TIlE NOVEMBER 28 AND DECEMBER 5, 1988, MINUTES AS WRITTEN; TIlE MarION WAS SECONDED BY DUNHAM AND CARRIED UNANlM)USLY. ( CSE154973 1 (lOO L.'-' PAGE 230 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 V. APPROVAL OF REGULAR MEETING AGENDA: Royle requested the deletion of the Audit Presentation by Price Waterhouse Audit Manager Hippe. He noted that Hippe had notified him that she would be unable to make the drive to Seward because of adverse weather and road conditions. He also noted that the city had provided a substitute resolution for Agenda Item No. XI(C) (1) (Resolution No. 88-132). Gieseler requested the addition of Unfinished Business Item No. "A" - Discussion of Kerry Martin's merrorandum concern- ing Small Boat Harbor lease rates. He also requested the addition of New Business Item No. "B" - One percent for art for the prison. Murphy stated that she would like to change her recOIl1Iendation on New Business Item No. "A". She noted that Mr. Nonnan had paid past due taxes in full and the administration was, therefore, rennving its objection to his application for an ABCB restaurant designation. NOll. MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS AMENDED; TIlE MarION HAS SECONDED BY HILTON AND CARRIED UNANI- MOUSLY. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly President Jonathan Sewall gave a verbal report of the Asserrbly's last IIEeting. VII. CITIZENS' CCl1MENTS ON AGENDA ITEMS NOT SCHEDUlED FOR PUBLIC HEARING: None VIII. APPROVAL OF CONSENI' CALENDAR: Gieseler asked to anEnd the Consent Calendar by adding a New Item No. 12 (Wohlforth, Flint & Gruening invoice for legal services) . Hilton asked that Resolution No. 88-134 (Item No.3) be IOOVed to the Regular Meeting Agenda as Item No. XI(C)(4). SIMUTIS M)VED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION HAS SECONDED BY MEEHAN AND CARRIED UNANI- MOUSLY. The following actions were taken: RECORDS & RETENTION/ 1. Resolution No. 88-130, authorizing the destruc- RESO: tion of certain public records, was approved; REFUSE SERVICE/ RESO: 2. Resolution No. 88-131, aIrending the rates for garbage and refuse rerroval services for the period cOIl1Iencing January 15, 1989, was approved; ( CSE154974 ) I I I PAGE 231 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 3. Moved to Regular Meeting Agenda; 4. December 7, 1988, IIEIIDrandum from Martin request- ing Council consent to the assignment of the leasehold interest held by Kenai Fjords Tours, Inc., to the First National Bank of Anchorage for that portion of the Oceanview Subdivision located in the NE corner of Block 8, described in City Lease No. RE-On, was approved; 5. ABCB notice of applications for renewal of liquor licenses as filed by Apollo Restaurant and Yukon Bar were filed without objection; 6. December 5, 1988, IIErrorandum from Diener recom- mending Council authorization to issue a no cost change order to Esther Herner to extend the completion date of the Senior Center /Museum Building to March 15, 1988, was approved; 7 . Change Order No. 2 to the Seward Construction Services contract (No. CON-308) for the control house addition at the Electrical Substation, extending the contract by twelve (12) calendar days, was noted for information; 8. Change orders as follows for certain prison construction contracts were noted for information: SAM-mAN : 11223 - Providing 64 tamperproof polycarbonate covers for the inmate accessible thennostats (+$2,937); 11224 - Installing in the APS Building an angle ledger and elastomeric coating wrapped up the vertical leg per DCVR 673 (+$650); #225 - S-Pro 193 and 194 credits for the deletion of the israrur vent in Building No. 3 and substitution of cold-rolled steel for copper tubing (-$5,000); 11226 (Revised) - Repairing the Sentrax security system (+$1,074); and TITAN CONSTRUCTION: 1111 - Modifying installation of the wall hydrant at grid 4F (+$297); 9. Noverrber 15, 1988, IIEIIDrandum from Diener con- cerning city snow removal priorities was noted for information; 10. Trip report as filed by Counci1member Simutis concerning IIEeting with Deputy Corrmissioner of Corrections was noted for infonnation; 11. Port Marketing Director position description was noted for information; and 231 RE-072: ABCB: Rest. Bar - (Apollo & Yukon w/o obj) CON-3cl/cOM. CNTR: CON--30n: CON-159: CON-2lo(: ( C Sf 154975 ) 232 C.ATTY: FINANCE DEPT/ CON- Z'l.l / RESO: (Banking Servo Contract w/ FNBA approved) PURCH/CITY EQUIP/ CON -314/RESO: (P/W Contract for city compo needs assessmt approved) PAGE 232 REGULAR MEETING - DECEMBER 12, 1988 VOLUME 23 12. December 1, 1988, invoice from Wohlforth, Flint and Gruening for legal services totalling $183.14 was approved for paYIIEnt. IX. PUBLIC HEARINGS: None X. PRESENTATIONS WIlli PRIOR N:lTICE ONLY: A. ANN HIPPE, Audit Manager for Price Waterhouse, was not present to present the city's FY 1988 audit report due to adverse weather and road conditions. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and EnactIIEnt: None C. Resolutions: 1. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY OF SEWARD, ALASKA, AWARDING A CONl'RACT FOR BANKING SERVICES. Gieseler noted that the Clerk had distributed a substitute metIDrandum and a substitute resolution for consid- eration by the Council. MEEHAN MOVED TO APPROVE RESOLUTION m. 88-132 (SUBSTI- TUTE); TIlE MarION HAS SECONDED BY HILTON AND CARRIED UNANlM)US- LY. 2. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF lliE CITY COUNCIL OF TIlE CITY OF SEWARD, ALASKA, APPROVING AN AGREEMENT WIlli PRICE WATERHOUSE TO ASSESS THE CITY'S CXl1PUTER NEEDS. O'BRIEN M)VED TO APPROVE RESOLUTION NO. 88-133; TIlE MOTION WAS SECONDED BY SIMUTIS. ( CSE15497b 1 I I I PAGE 233 REGULAR MEETING - DECEMBER 12, 1988 VOLUME 23 O'Brien stated that his only concern with the proposal was the tinE fraIIE, adding that he could not accept the vendor's assertion that this process could not be shortened. Hilton stated that he was having a problem determining if the city was going to get much in the way of service for its rroney. He noted that Price Waterhouse would not be doing rrnlch that Peirson had not already done. Royle stated that Price Waterhouse would provide a non-vendor view of the programs the city was considering. Gieseler added that P/W would also assess the needs of all departments of the city. Hilton stated that he was not impressed with the P/W proposal. Meehan noted that the proposal presented by P/W was dated November 22, 1988, and called for payment of $4,800 plus incidental expenses. He stated that this was within the manag- er's spending limit and asked why the contract had not been awarded inmediately following the Noveni:>er 28 IIEeting. He stated that this would have given the contractor another two weeks to perfonn the research and prepare a report to the Council and would have allowed the bulk of the work to be completed before the holidays. Royle noted that the incidental expenses would put the contract over his $5,000 limit, and he would like the option of having the Anchorage team's work reviewed by the Seattle Office, further adding to the cost of the project. O'Brien stated that he appreciated the fact that P/W intended to interview Counci1members. SIMUTIS M)VED TO AMEND THE RESOLUTION TO REQUIRE THAT P /W PRESENT TIlE COMPlETED REPORT TO TIlE COUNCIL AT ITS JANUARY 9, 1989, MEETING; TIlE mTION WAS SECONDED BY O'BRIEN AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED ON TIlE MAIN MarION AND RESOLU- TION NO. 88-133, AS AMENDED, WAS APPROVED BY UNANIMOUS VCITE OF TIlE COUNCIL. 3. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY OF SEWARD, ALASKA, AU1HORIZING TIlE PURCHASE OF A DISPATCH CONTROL CONSOlE AND RELATED RADIO AND CCTV EQUIPMENT FOR THE SEWARD POLICE DEPAR1MENT WIlliOUT FULL UTILIZATION OF CITY BID PROCEDURES. MEEHAN MOVED TO APPROVE RESOLUTION m. 88-135; THE MarION WAS SECONDED BY NOll.. 2~3 PURCHASING/CITY EQUIP/POLICE OPT/ RESO: (Purchase of dispatch ra- dio equip. ap- proved) ( CSE 154977 1 234 ELEC. DEFT/ CON- "Z1!(/RESO: (Letter Agrmt. re Bradley Lk. Agrmts. Apprvd) PAGE 234 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 Schaefermeyer noted that, if purchase of the unit was approved by Council, it would be included in the RFP for lease purchase financing which the city plarmed to advertise in January. In response to a question from Gieseler, he noted that renovation of the dispatch center would not be financeable; therefore, the city could start on that phase of the project at any time. Dunham asked if the purchase of the new equipID2nt would result in the need for new personnel. Schaefermeyer stated that the new equipment should improve the city's dispatch capabilities, make communication with other agencies easier to accomplish, and allow for the efficient operation of the dis- patch center by one employee. In response to a question from Hilton concerning the city's ability to obtain financing, Peirson stated that the city would be issuing a traditional RFP for the financing package as it had done for financing the hospital's computers. He stated that he could not foresee the possibility of the city failing to find financing for the package. Noll asked if Motorolla offered a lease package. Peirson indicated that it did, but the city could do better with a financial institution. TIlE QUESTION WAS CAILED AND RESOLUTION m. 88-135 CARRIED BY UNANIMOUS VOTE OF TIlE COUNCIL. 4. Copies having been made available to the public, Gieseler noted by title only a proposed resolution entitled: A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY OF SEWARD, AlASKA, AU1HORIZING TIlE CITY MANAGER TO SIGN A lETTER AGREEMENl' TO RESOLVE CERTAIN CONTRACTUAL ISSUES PURSUANT TO REA'S APPROVAL OF TIlE BRADLEY lAKE HYDROELECTRIC PROJECT POWER SALES AGREEMENT AND SERVICES AGREEMENT. HILTON M)VED TO APPROVE RESOLUTION NO. 88-134; TIlE MarION WAS SECONDED BY mu.. Hilton stated that he would like a brief synopsis of what the Council was being asked to approve and the affect this Letter Agreement would have on previously approved agreements. Diener stated that the city had previously approved and signed a Power Purchase Agreement and Services Agreement for Bradley Lake Power. He noted that, while the city is not an REA utility, several of the signers to the original agreements are governed by REA, and these utilities carmot take action on the Bradley Lake Agreements until REA has given its approval. The Letter Agreement before the Council contained some word changes which REA wanted to see in the agreements before giving its ( C SE154978 1 I I I ?35 PAGE 235 REGULAR MEETING - DECEMBER 12, 1988 VOLUME 23 approval. He assured Council that this Agreement would have no effect on the city of Seward. TIlE QUESTION \.JAS CALlED AND RESOLUTION m. 88-134 WAS APPROVED BY UNANIMOUS VOTE OF TIlE COUNCIL. XI1. UNFINISHED BUSINESS: A. December 7, 1988, IIEIIDrandum from Kerry Martin concerning lease rates in the Small Boat Harbor was noted. Martin reminded Council that several of the Boardwalk Lessees had appeared before the Council in September claiming that the rates paid for the boardwalk lease sites was too high in compar- ison to other lease rates in the Harbor. The Council had instructed the administration to review the rates and report back to the Council. Martin had then contracted with RESCO Real Estate Services Corporation to have the boardwalk sites, Ray's Waterfront Restaurant site, the Landing site, and several other SBH lease sites appraised. (Martin explained that RESCO was also perfonning an appraisal for waterfront lease sites in Homer and would, therefore, have some background information which would prove helpful in appraising the value of the city's SBH property.) Martin stated that Allen Bergstrom (appraiser for RESCO) had found rrost lease rates in the Harbor to be fairly accurate. He noted that Boardwalk Site No. 1 had a higher lease value than the city was currently charging, while the other sites, after his initial review, appeared to have a slightly lesser value. However, since the city had had no problems leasing the sites at the rate currently charged and since a couple of the sites had changed hands since the sites had first been developed, it would appear that the city and the lessees had, in effect, set the market at the current price. Bergstrom had also indicated that the property leased to Alaska Treks & Voyages should lease for a lower square foot rate; however, the city also owned the building located on the land, and this would balance out the lease rate charged by the city. O'Brien stated that he was not prepared to act on the city's recCJITIIEndation until he had a chance to review the full ap- praisal which had been prepared by Bergstrom. Noll concurred and stated that he would like to see this issue come back before the Council for discussion. GIESElER INSTRUCTED 1HE CLERK TO SCHEDUlE THIS ITEM FOR DISCUSSION UNDER "UNFINISHED BUSINESS" ON JANUARY 9, 1989. XII1. NEW BUSINESS: A. Murphy noted that the Borough delinquent accounts clerk had indicated that she had received a check from Harbor 236 PRISON/COUNCIL: (Simutis apptd. City Rep/SCCC Art Review Pnl) . PAGE 236 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 Dinner Chili owner Carl Nonnan covering all past due taxes; therefore, both the borough and the city were withdrawing their recomrendation that the city protest renewal of the restaurant designation as requested by the applicant. MEEHAN MOVED TO ISSUE A LETTER OF NONOBJECTION TO 'mE RENEWAL OF TIlE ABCB RESTAURANT DESIGNATION AS REQUESTED BY 1HE HARBOR DINNER CLUB; 1HE MOTION \.JAS SECONDED BY HILTON AND CARRIED UNANlM)USLY. B. Gieseler stated that he had received a letter asking him to appoint a city representative to the panel which would select the project to be funded under the One-Percent- for-Art program for the prison. He stated that $150, 000, representing one percent (1%) of the $15,000,000 in state funds appropriated for the prison, had been set aside for this proj- ect. Simutis volunteered for this position. GIESELER APPOINrED SIMUTIS TO SERVE AS TIlE CITY'S REPRESENTATIVE ON TIlE SCCC ART REVIEW PANEL. XIV. CITY MANAGER REPORTS: ROYLE stated that he had received a telephone call from the Governor's Office of International Trade asking if the city was still interested in taking part in the upcoming Trade Fair in Seoul, Korea, March 3-11, 1989; and, if so, who would be attending. He noted that those who had been scheduled to attend in October (that trip was cancelled) were Meehan and Hilton, representing the Council; Royle and Gates, representing the administration; Willard Dunham, representing the Trade Board; and Bill Noll, representing Suneel. Counci1member Dunham stated that she would be attending, but would be covering her own expenses. Gieseler asked that his naIIE be added to the list of attendees. ROYLE noted that Peirson's last day with the city would be December 21, explaining that Peirson had accepted a position in Santa Barbara, California. He stated that he had interviewed one of the three top candidates for the Finance Director position and had another interview scheduled for Wednesday. Royle stated that he hoped to make a selection before the end of the rronth. ROYLE asked the Council to schedule a three-rronth perfonnance review (executive session) in January so that he and the Council could discuss his perfonnance thus far. Gieseler stated that he would call an executive session following the January 9 IIEeting. ROYLE stated that the administration would have recOIlllleIldations and options for continued legal services for the Council to consider in January. ( CSE154QaO ) I I I 237 PAGE 237 REGULAR MEETING - DECEl-1BER 12, 1988 VOLUME 23 O'BRIEN stated that he would like to have a work session prior to the January 9 meeting to review the Audit. GIESELER INSTRUCTED TIlE CLERK TO ADVERTISE A WORK SESSION FUR NOON, JANUARY 9, 1989, IN ORDER TO REVIEi-J TIlE FY 1988 AUDIT AND TO DISCUSS CITY lEGAL SERVICES. XV. COUNCIL DISCUSSION: NOll. presented the administration with information he had obtained from Japan concerning water-generated power. SIMUTIS stated that the last issue of Alaska Journal of COIIIrerce had featured an article about a meeting of port directors and harbormasters. She stated that the article contained numerous lengthy quotes attributed to Chris Gates. In addition, that SanE issue had featured an article focusing on Peratrovich, Nottingham & Drage with several stateIIEnts about the city's North Dock. O'BRIEN asked Royle to inform Price Waterhouse that the city views the computer needs assessment project as crit- ical. He also asked if the administration was working on his suggestion that city leases be put on a standardized 5-year appraisal plan. Royle stated that Martin is working on that project at this time. DUNHAM stated that she had invited both the new prison superintendent and the city manager to her house for dinner recently to discuss perceived problems. She stated that, as a result of that meeting, she was convinced that there are rrore prison personnel living and spending rroney in Seward than mmy are aware. She noted that mmy of the prison employees have homes in Anchorage which they are unable to sell at this tinE and who would probably be relocating to Seward as soon as they are able to find buyers for their homes. MEEHAN complimented Simutis on her trip report and Dunham on the work she has been doing with prison officials. He stated that he was happy to hear that the Council has let Department of Corrections know that the city is concerned about various prison-related issues. He also corrmended Peirson for the fine job he has done during his employment with the city. GIESELER also complimented Peirson and wished him and his family good luck in their new home. He thanked Sinutis for participating in his meeting with the Deputy Corrrnissioner of Corrections. Gieseler thanked Dunham for immediately addressing the communication problem with local prison officials. Gieseler noted that he would be giving his "State of the City" speech via live television (Channel 11) same tinE before January 15, 1989. Finally, he wished the conmmity a safe and happy holiday. XVI. CITIZENS' DISCUSSION: r CSE154981 ) 238 PAGE 238 REGULAR MEETING - DECl'MBER 12, 1988 VOLUME 23 JONATHAN SEWAlL, Forest Acres, stated that he had omitted a couple of items from his Borough Assembly Report which he would like to address at this time. First, the Assembly had approved Resolution No. 88-99 which provided that, beginning January 1, 1989, a secured agreeIlEnt with the Borough for paYIIEnt of delinquent sales taxes would not prevent the Borough from protesting renewal of a liquor license. Sewall also noted that the Assembly had been presented with the borough's Finan- cial Report and Audit which showed a current Fund Balance of $23 Million. He noted, however, that $6 Million was needed as undesignated reserve for cash flow purposes, $2.15 Million would be appropriated for the Seward School, $6 Million had been designated as an appropriation to keep next year's mil levy down, and $5 Million would be appropriated the following year to maintain the borough's current mil levy. He noted that this would then bring the Fund Balance to the $6 Million dollar level which was necessary for a cash flow reserve. ROYlE noted that the city had begun labor negotiations with IBEW and indicated that he would be coming to the Council soon to present the administration's proposed agreement. MURPHY stated that the Alaska Association of Municipal Clerks and the Anchorage Convention and Visitors Bureau had put in a bid for the 1994 International Institute of Municipal Clerks' Conference and had won the bid. She noted that this conference was scheduled for the week prior to Memorial Day in 1994 and would bring rrore than one thousand rmmicipal clerks (and some spouses) from around the world into the state. She urged local tourist-oriented business people to think about putting together a post-conference tour to Seward. XVI1. COUNCIL AND AIMIN. RESPONSE TO CITIZENS' COMMENTS: None XVII1. ADJOURN1ENT : The meeting was adjourned at 9:00 p.m. Ci .~~c~~.~~"."'. ",~..~~'"l~<fo '0__ G ..~~f'4. '': :',# __ '. t: . ~'CAL :'~ v ~ : N ~ ....- fL: }.:.~ . _.... ,;\,"". A"\ ".:"'tf. -,."'J"." "'S " '. .~~ t, .... ~+" V)" ....... ~J~' . "frE Of jl.~ ~. ~ ~D C. '~A.-b,., . Gie~ er Mayor ( CSE 154982 ) I I I PAGE 239 SPECIAL MEETING - DECl'MBER 15, 1988 VOLUME 23 1. CAll. TO ORDER: The December 15, 1988, regular IIEeting of the Seward City Council was called to order at 12:10 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilmember Meehan led the pledge of allegiance to the flag. IlL ROll. CAll.: Present were: Mayor Gieseler and Counci1members Dun- ham, Hilton, Meehan and O'Brien (Noll and Simutis were excused) Present also: City Manager Royle, Finance Director Peirson, Deputy Finance Director Gifford, Engineering & Utilities Manager Diener and City Clerk Murphy IV. APPROVAL OF SPECIAL MEETING AGENDA: MEEHAN M)VED TO APPROVE TIlE SPECIAL MEETING AGENDA AS PRESENTED; TIlE MEETING WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. V. NEW BUSINESS: A. Royle noted that Price Waterhouse was unable to cornnit to completing a city computer needs assessment within the time lines established by the Council. He further noted that the city badly needed to improve its computer system and he hoped to have a new system in place by mid-April so that it could be "up and running" prior to the close of the fiscal year. MEEHAN MOVED TO FOLIlM 1HE FINANCE DIRECTOR'S RECCM- MENDATION AND PURCHASE DIGITAL EQUIPMENT AND Tll1ELlNE PROGRAMS; TIlE MarION WAS SECONDED BY HILTON. Peter Scioto, Senior Consultant for Price Waterhouse, stated that if Council would extend completion date on the P/W contract until January 23, 1989, it should be possible to have computers installed by the middle of May, and this should allow sufficient time to be "on line" by the end of the fiscal year. He stated that Peirson had carefully evaluated the two proposals and he was not inferring that what Peirson recOlIlllended was not the best way for the city to go. He stated, however, that P /W could offer the Council a "level of comfort" that the system purchased would adequately meet the city's needs. Scioto stated that he could not offer this assurance to the Council without completing the needs assesSIIEnt. ( CSE 154983 1 239 CITY EQUIPMENT/ PURCHASING: (Purchase of Digital Computer Hardware & Time- Line Software) 240 PAGE 240 SPECIAL MEETING - DECl'MBER 15, 1988 VOLUME 23 In response to a question from Gieseler, Royle stated that this would definitely change the time lines for issuing the RFP for financing certain city capital acquisitions. Responding to a question from Hilton, Scioto stated that he currently has clients using the TiIreline program; however, they were not IIllIDicipal govemnts. Peirson stated that while there are no other IIllIDicipalities in the state of Alaska using Timeline, there are other cities "outside" who use this software. Meehan and Hilton both stated that they were comfort- able with Peirson' s recorrnendation and favored going forward with the purchase of the hardware and software at this time. O'Brien stated that he was undecided and asked Peirson what other IIllIDicipalities in the state were using. Peirson noted that rrost are currently using 11M-based systems. He stated that 11M hardware is of excellent quality and 11M's service record on the hardware has been very good; however, 11M does not develop its own software and does not provide service for the software it sells. O'Brien also asked if Timeline offered a utility billing system. Peirson stated that TiIIEline had committed to developing a system for the city; however, since that corrrnit- IIEnt, Timeline had contracted with a IIllIDicipality "outside" and would be developing a utility billing package for that IIllIDic- ipality Which should be available for purchase by the city of Seward. O'Brien asked if a Boat Harbor billing package was available. Peirson stated that no one in the state has an appropriate information managem2nt package to IIEet the Boat Harbor's needs. He noted that a custom-designed package could be developed for an estimated $8-12 Thousand. Meehan noted that there were some advantages to being a part of the plarming of a new system. Peirson agreed, stating that the city would get exactly what it needed if a system was custom-designed, and the contractor would offer a price advan- tage as compensation for ''working out the bugs" during installa- tion and initial use of the program. Dtmham stated that she did not want to infer that Peirson had not carefully assessed the city's needs or the products offered by the vendors in question, but noted that he would be leaving the city soon and would not be around to answer for any problems which might occur. She indicated that P /W, on the other hand, was under contract to the city to perfonn at least one rrore audit and would, therefore, have their reputa- tions "on the line" when a recorrnendation was made. Hilton disagreed, stating that he felt Peirson had "done his homework" and was satisfied with the recorrnendation he had made. In addition, he noted that the hospital has purchased digital equipment, and the purchase of similar equipID2nt by the city could result in some efficiencies in the future since the two systems could easily share information. r CSE154984 1 I I I 241 PAGE 241 SPECIAL MEETING - DECEMBER 15, 1988 VOLUME 23 O'Brien asked if the system reconmended by Peirson would meet everyone's needs. Peirson stated that the digital hardware could allow the PC's currently owned by the city to network through the main digital equiprrent. He stated that the Timeline software package was Finance Department oriented because it was being purchased to IIEet the financial and ac- counting needs of the city. The needs of other departments could be adequately addressed through the purchase of PC soft- ware. He added that the Digital system offered the city room to grow and had the power to handle many future needs. THE QUESTION WAS CALlED ON THE MarION TO PURCHASE TIlE DIGITAL EQUIPMENT AND TIMELlNE SOFlWARE, AND TIlE MarION FAIlED WITH 1HREE "YES" VOTES AND DUNHAM AND GIESELER VOTING "NO". Gieseler noted that he had voted against the rrotion because he felt it important to assess the needs of all depart- ments of the city before purchasing a new computer system. He stated that two department heads had told him that their needs had not been considered when Peirson made his reccmnendation. Murphy noted that she was one of the department heads who had expressed concern to the Mayor but stated that she had since found that her needs could be adequately IIEt with the addition of another PC since she had been assured that the Digital equipment would provide a networking system. Diener stated that he was not sure the system proposed by Peirson would meet the Utility Department's needs. He stated that he was particularly concerned with an inventory system and a means of tracking contract expenditures. Peirson noted that the new system would provide the contract expense tracking inmediately, and would not affect the possibility of purchasing a program for keeping track of the Utility's inventory. GIESELER M)VED TO RECONSIDER TIlE PREVIOUS QUESTION; THE MarION \vAS SECONDED BY HILTON AND WAS APPROVED WITHOUT OBJECTION. THE QUESTION WAS CALlED ON TIlE MarION TO PURCHASE TIlE EQUIPMENI' AND SOFlWARE AS RECCM1ENDED BY PEIRSON AND TIlE MOTION CARRIED WITH FOUR "YES" VOTES AND DUNHAM VOTING ''NO''. Gieseler instructed Royle to solicit a proposal from Price Waterhouse to assess the accessory needs of other city departments. VI. COUNCIL DISCUSSION: None VI1. CITIZENS' DISCUSSION: None VII1. COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENTS: ( CSEl54985 ) 242 PAGE 242 SPECIAL MEETING - DECl'MBER 15, 1988 VOLUME 23 None IX. ADJOURNMENI': The meeting was adjourned at 1:19 p.m. t[:.[r:.! r:LlU;:.~I:2...",o., ,.,l.f\. ". (~ (', r" ~~_ . \l1 '>.; i.' .~. .1 ,'...,.. '..:I , . U...I"QIt>..: y {" i;~...() ,>\ "'..... ,\. _OJ~; v", _.......>) 4.. ~ c: f!}aA.4 Harry . Giese er Mayor ~ ~i~ ~-\.I1 '"?-~ '/t:> , ~;'y"l-. . ~'~..... ,}-~/' . "'~.,f :.l\' 1.. ~..' ,I'" ";;-1rt::'....~;. f-o-":J'{" "Q).- <: OF .....,. "cto..o-.m:ra:u:rJJ. ./ PAGE 242 REGULAR MEETING - JANUARY 9, 1989 VOLUME 23 1. CAll. TO ORDER: The January 9, 1989, regular IIEeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Harry E. Gieseler. II. OPENING CEREMONY: Councilmember Meehan led the pledge of allegiance to the flag. IlL ROLL CALL: Present were: Mayor Gieseler and Councilmerrbers Hil- ton, Meehan, Noll, O'Brien and Simutis (Dunham was excused) Present also: City Manager Royle, Deputy City Manager Schaefermeyer, City Attorney Arvidson, Port Marketing Director Gates, Engi- neering & Utilities Manager Diener, Parks & Recreation Director Yanez, Interim Finance Director Gifford, Administrative Assistant Martin, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUIES: HILTON MOVED TO APPROVE THE DECEMBER 12 AND 15, 1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: ( CSE 154986 ]