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HomeMy WebLinkAbout1980 City Council Minutes :J.? PAGE 22 SPECIAL MEETING - DECEMBER 21, 1979 VOLUME 19 IV. SPECIAL ITEMS: (cont'd) PERSONNEL/ RES: (cont'd) employees the best benefits possible and to prove to them that they did not need a union to receive fair and equitable representation. He stated a vote against the employees wishes in this regard would have a negative effect on employee/management relations. Following discussion, it was moved by Hugli, seconded by Soriano and carried as follows to approve Resolution No. 79-50: Ayes: Noes: Absent: Cripps, Gillespie, Hugli, Soriano and Swartz Pot ts Campbell V. ADJOURNMENT: The meeting was adjourned at 4:01 p.m. '\ '1 C; ,J "Ii Yh~-, L-, JoAnne E. Shanley City Clerk , n J;! " r' . ,,' ;. Ie( ILl.( v -; 0 t~!J! (l Raym d L. Hugli Mayor (City Seal)" ------------------------------------------------------------------------------ PAGE 22 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 1. CALL TO ORDER: The January 14, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Soriano and Swartz (Absent, with Council consent, were Gillespie and Potts) Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve the regular meeting minutes of December 10, 1979, and the special meeting minutes of December 21, 1979, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: At the request of the City Manager, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to hold an executive session regarding legal matters immediately following adjournment of the regular meeting. City Manager requested that the presentation by Charles Hendrix, Alaskan Fisheries Company, scheduled as item A. under VIII. Citizens' Discussion, be postponed to a later date. He requested that the following items be added to the regular meeting agenda: PAGE 23 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) VIII. Citizens' Discussion: A. William White - claim for damages B. Harbor Commission report IX. Ordinances and Resolutions: I C. Resolutions: 4. Proposed Resolution No. 80-4 establishing the rates for garbage and refuse removal services 5. Proposed Resolution No. 80-5 authorizing the sole source purchase of a television receiver XI. New Business: C. Bruce Sieminski's letter of January 10, 1979, requesting to lease a City parcel in the Small Boat Harbor area City Manager referred to consent calendar item 4. and stated the amount of the bill from Cranston, Walters, Dahl and Jarrell should read $6,233.82. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: COMPTROLLER: 1. Comptroller's list of Accounts Payable for November 1979, totaling $411,728.91 was approved for payment and filed. COMPTROLLER: I C ATTORNEY: 2. Comptroller's list of Accounts Payable for December 1979, totaling $358,150.92, was approved for payment and filed. 3. Hughes, Thorsness, Gantz, Powell and Brundin bill dated January 4, 1980, for legal services rendered September - December 1979, totaling $2,248.98, was approved for pay- ment and filed. C ATTORNEY: 4. Cranston, Walters, Dahl and Jarrell bill dated January 7, 1980, for legal services rendered November 1979, totaling $6,233.82, was approved for payment and filed. ELECTRIC: 5. December 11, 1979, Invoice No. 129523 from CH2M Hill in the amount of $3,398.65 for professional services rendered relative to the electric rate study, was approved for pay- ment and filed. COMPTROLLER: 6. December 12, 1979, invoice from Price Waterhouse and Company in the amount of $1,530.13 for Federal revenue sharing funds audit, was approved for payment and filed. 4 TH OF JULY CREEK AREA: 7. December 12, 1979, Invoice No. 951351-2 from R & M Consultants in the amount of $4,286.44 for the 4th of July Creek access road "p" Line survey, was approved for payment and filed. I 4TH OF JULY CREEK AREA: 8. December 12, 1979, Invoice No. 951329-2 from R & M Consultants in the amount of $1,985.67 for the 4th of July Creek access road reconnaissance survey, was approved for payment and filed. ELECTRIC: 9. CH2M Hill Invoice No. 10005 dated December 14, 1979, in the amount of $175.23 for service rendered relative to the electric rate and power supply negotiations, was approved for payment and filed. ., I ':4 PAGE 24 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont' d) ABC B: 10. December 10, 1979, letter from the Alcoholic Beverage Control Board regarding the request for transfer of the Yukon Bar liquor license from Lawton to Williams and O'Hallaren, was noted and filed without objection. ABC B: 11. December 28, 1979, letter from the Alcoholic Beverage Control Board regarding the request for renewal of liquor licenses for the following establishments was noted and filed without objection: Dorothy's Cocktail Lounge Seward Elks Lodge #1773 Harbor Dinner Club Seward Trading Company Yukon Bar Yukon Liquor Store LOG ORGS: 12. "Application for Permit for Authorized Games of Chance and Skill" for calendar year 1980 as submitted by the following were approved for the mayor's signature: Lions Club of Resurrection Bay William H. Seward Elementary School Sacred Heart Catholic Church 13. December 5, 1979, memo from the Fire Chief to the Police dispatchers regarding responding to fire calls, was noted for information only. SCHOOLS: 14. December 26, 1979, letter from the U.S. Forest Service regarding the termination of the Special Use Permit for the YACC occupancy of the old high school and armory was noted for information and filed. WATER: 15. Department of the Army Corps of Engineers "Public Notice" relative to the Kenai Peninsula Borough's application to construct a berm to protect the Seward landfill from erosion caused by Resurrection River was noted for informa- tion and filed. ELECTRIC: 16. December 12, 1979, written text of the public presentation made by City Engineer Small at the U.S. Army Corps of Engineers hearing in Homer on the proposed Bradley Lake hydroelectric project was noted for information and filed. HOSPITAL: 17. December 14, 1979, letter from the Seward Volunteer Ambulance Corps, thanking the City for its financial assistance in the purchase of a new ambulance, was noted for information and filed. 18. December 8, 1979, note from the JOM Parent Committee, thanking the Council for its financial and moral support of the Seward Teen Center, was noted for information only. 19. December 4, 1979, letter from the Resource Development Council, thanking the Council for its membership fee, was noted for information only. CENSUS/ COMPTROLLER: 20. January 4, 1980, letter from the State Department of Community and Regional Affairs, certifying the City's population at 1778, was noted for information and filed. AK, ST OF: 21. Letter received January 3, 1980, from the State Department of Natural Resources, noticing of the Kenai Peninsula Borough's selection and the State's proposed conveyance, pursuant to the Municipal Land Entitlement Act, of a parcel of land immediately north of the City limits and adjacent to the Seward landfill, was noted and filed without objection. I SEWARD FISH: ELECTRIC: I PAGE 25 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of January 8, 1980, and specifically discussed the Assembly's passage of an Assembly reapportionment bill which used a weighted voting system--the same type of formula as contained in the reapportionment proposition defeated by the electorate at the October 1979, election. Campbell spoke against the Assembly action and stated that he felt assured that the State Department of Community and Regional Affairs would take action to reapportion the Borough Assembly in a manner which would be in conformance with the legal one-man, one-vote system. VII. PUBLIC HEARINGS: A. Public hearing was opened on the proposed renewal of the "License Agreement for the Seward Municipal Small Boat Harbor Dock", allowing Seward Fisheries preferential use of the facility for a period extending to June 30, 1984, and the following items were noted: "Notice of Public Hearing" as published two times in the local newspaper Draft "License Agreement" No one appeared from the audience at this time in order to be heard and the public hearing was closed. VII1. CITIZENS' DISCUSSION: (With prior notice only) A. December 3, 1979, "Claim for Damages" as filed by William White, in the amount of $750 for damage done to a refrigerator and furnace when a tree fell across a utility line, causing a broken neutral wire in the electrical transformer, was distributed. Also distributed was December 19, 1979, letter from City Utility Manager Thomas Small, stating his opinion that the damage was not caused by negligence on the part of the City, therefore, the City was not liable for the loss. William White appeared from the audience and spoke in support of the City awarding him the $750 for damages claimed. City Manager stated a dangerous precedent would be set if the Council approved the payment; he recommended denial of the claim. Following discussion, it was moved by Campbell, seconded by Cripps, but did not carry as follows, to honor Mr. White's claim in the amount of $750: Ayes: Noes: Absent: Swartz Campbell, Cripps, Hugli and Soriano Gillespie and Potts B. Connie Bencardino, Harbor Commissioner, appeared from the audience and stated that there was no Harbor Commission report at this time. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: REFUSE SERVICE/ 1. Copies being made available to the public, Hugli noted by title ORDS: only proposed ordinance regarding garbage and refuse service fees, entitled: I An Ordinance Relating to Garbage and Refuse Disposal Fees "Notice of Public Hearing" as published two times in the local newspaper was noted and public hearing was opened on the ordinance. No one appeared from the audience at this time in order to be heard and the public hearing was closed. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 480. :~f) PAGE 26 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: REFUSE RES: SERVICE/ 1. Copies being made available to the public, Hugli noted by title only proposed resolution awarding the garbage and refuse service contract for the period January 1, 1980, through December 31, 1984, entitled: A Resolution Awarding the Bid for City Garbage and Refuse Removal Service to Seward Services for the Period Beginning January 1, 1980, and Ending December 31, 1984 It was noted that the only bid received by the City had been submitted by Herman Leirer, d/b/a Seward Service. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-1. CLIFF RES: ADDN/ 2. Copies being made available to the public, Hugli noted by title only proposed resolution vacating a portion of First Avenue lying between Blocks 7 and 8, Cliff Addition, containing approximately .487 acres, to Patrick O'Brien, entitled: A Resolution Providing for the Vacation of a Portion of Real Property Located in the Cliff Addition It was noted that the Council had already approved the vacation, by motion, at an earlier meeting. City Manager confirmed that Pat O'Brien would be providing an alternate access route to the lots in the vicinity; he recommended approval of the resolution. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-2. ELECTRIC/ RES: 3. Copies being made available to the public, Hugli noted by title only proposed resolution approving the purchase of equipment for the new electric system substation, entitled: A Resolution Accepting Bids and Awarding Contracts for the Purchase of Seward Sub- station Transformers, 69KV Circuit Switchers, and Vacuum Circuit Reclosers City Engineer Small's memo dated January 3, 1980, regarding purchase of the equipment and recommending the total expenditure of $399,237.76, was noted. City Manager stated that by the time the equipment was received and had to be paid for, the City would have sold the electrical bonds as approved by the voters at the October 1979, election. He confirmed that the expenditures were within the engineer's estimates [or the project. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 80-3. REFUSE RES: SERVICE/ 4. Copies being distributed to the public and Council, Hugli read by title proposed resolution setting new garbage and refuse service rates, entitled: A Resolution Establishing Rates for Garbage and Refuse Removal Service for the Period Commencing January 1, 1980 City Manager confirmed the resolution reflected a 24 percent rate increase pursuant to the bid of Herman Leirer d/b/a Seward Service and previously approved by Council. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 80-4. P AG E 27 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) TELEVISION/ 5. Copies being distributed to the public and Council, Hugli RES: read by title proposed resolution authorizing the sole source purchase of a TV receiver, entitled: I A Resolution Authorizing for the Sole Source Purchase of a Microwave Associates VR-3 TV Receiver City Manager stated that the television earth station, as funded by the State, would arrive and be installed in the near future. He stated that the TV receiver as addressed in the resolution was necessary for the operation of the earth station. He confirmed that receipt of the receiver would be expedited by the City's purchase of the item and the State then reimbursing the City for the cost, rather than waiting for the State to obtain the equipment. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-5. x. UNFINISHED BUSINESS: A. City Manager, with Council consent, requested that discussion of the sale of City-owned Lots 14 and 15, Block 11, Laubner Addition, be postponed for 120 days, at the request of the individual who had initially asked the City to offer the lots for sale. XL NEW BUSINESS: SMALL BOAT A. January 5, 1980 letter from Donald R. Horn regarding Small Boat HARBOR: Harbor moorage assignment policies, was noted. City Manager distributed January 10, 1980, memo from Harbormaster Singleton, explaining the incidents surrounding Mr. Horn's slip reassignment. City Manager stated the slip reassignment was I consistent with the State's directive to utilize the harbor facilities to their fullest extent. He stated Horn had appeared before the Harbor Commission and had been denied his request to be reassigned to a 32-foot slip. Cripps stated it appeared that the City had acted prudently in trying to best utilize the harbor and still accommodate Mr. Horn's request for electricity by offering him a split 50-foot slip. POLICE: B. "State of Alaska Department of Education Contract for Professional Services" dated December 28, 1979, for the City to provide Alaska Skill Center students with drivers' training for the period January 3 - March 31, 1980, at the cost of $5200, was noted. Police Chief Bencardino appeared from the audience and explained that the funding for the Drivers' Education Program usually came from a different source; however, the anticipated funding had been delayed and the Skill Center wished to enter into the subject contract in order to insure the continuance of the program for their students. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to give the City Manager the authorization to sign the contract. INDUSTRIAL C. January 10, 1980, letter from Bruce Sieminski requesting permission PARK SUB: to lease a portion of City-owned land in the Small Boat Harbor area in order to construct and operate a ship supply store was distributed. Sieminski appeared from the audience and spoke in support of and answered questions on his proposal to lease Lot 10, Seward Industrial Park. Hugli stated the Council should request a recommendation from the Harbor Commission prior to taking any action on Sieminski's request. Following discussion, City Manager confirmed that the I administration would proceed in scheduling the necessary public hearing on the proposed lease of the property. " , : ~~t PAGE 28 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: PUBLIC WORKS: A. December 14, 1979, letter from the Municipality of Anchorage regarding the use of a snow gate during winter snow plowing operations, was noted. City Manager stated that the letter was in response to Council inquiries into the City using a grader gate to provide a solution to the problem of plowing berms into the path of driveways. Public Works Foreman Albertson appeared from the audience and stated he was of the opinion that the only solution to the problem was for the City to purchase another loader which could follow the grader during plowing operations. City Manager stated that a new loader cost approximately $90,000 and a used one was about $40,000. Hugli asked that purchase of the loader be included in the budget for the coming year so that Council could consider purchase of the item. COMPTROLLER: B. December 13, 1979, letter from the State Department of Community and Regional Affairs, notifying the City of its Fiscal Year 1980 State Revenue Sharing entitlement of $243,514, was noted. City Manager stated the amount included the allocation for the hospital and health services. He explained that the City had established the local population at 2130; however, the Department of Community and Regional Affairs had only approved a population figure of 1778 which meant an approximate $10,000 reduction in the actual amount of revenue sharing funds received as compared to the amount anticipated. STREETS: C. Seward City Code Sections 19-4 and 19-5 relative to the requirement that persons owning property bordering a sidewalk keep the sidewalk clear of snow and ice was noted. City Manager reported that he had received objections to the ordinance when he had tried to enforce it and asked for Council direction to either repeal the provision or support its enforcement. City Attorney spoke and answered questions on the legal ramifications of the Code provision. In answer to a question from Hugli, City Attorney confirmed that the language in the ordinance clearly stated that the property owner shall remove any, meaning all, snow which may fall or ice which may form on the sidewalk within 24 hours after the cessation of visible precipitation. Following discussion, Soriano, with Council consent, voiced support of the City Manager's enforcement of the Code section. COMPTROLLER: D. City Manager's memo dated January 14, 1980 regarding the IBM System/34 computer was noted. City Manager stated the computer system was a budgeted item and hehad presented the information solely to keep the Council informed on the progress of the installation of a computer system. C HALL: E. City Manager distributed a scaled drawing of the City offices. He stated that some rearranging of the offices would be necessary with the installation of the computer. The drawing displayed his concept of the new offices and included the extension of the utility counter out into the area which is presently the first floor lobby. He requested permission to request bids for the remodeling work; no objections were voiced from Council. F. City Manager stated that part of the Anderson Dock was constructed on City property and there had never been a lease signed between the City and the Andersons. With Council consent, he requested permission to obtain an appraisal of the property in question and to proceed with drawing a proper lease for the parcel. STREETS: G. City Manager requested Council approval to assist with the clearing of rock and snow slides from the Lowell Point Road when time was available for the public works' crew to do such work; there was no objection voiced from Council. COMPTROLLER: H. City Manager stated that with the arrival of the computer system the finance department would need to be reorganized. He reported that the present Comptroller would be retiring this spring and he requested authority to change the position description from that of a Comptroller to a Finance Director. He stated that the job description title change did not mean a change in the pay rate; there were no objections voiced from Council. I. City Manager reported that he and the City Clerk were reviewing and rewriting portions of the City Code in order to remove obvious conflicts and discrepancies. He stated that the first revisions would be presented in ordinance form for Council review in February. I I I "-I'"; PAGE 29 REGULAR MEETING - JANUARY 14, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: A. report on the negotiations. In answer to a question from Swartz, City Manager gave a brief status of the 4th of July Creek industrial park area shipyard XIV. CITIZENS' DISCUSSION: A. Brent Whitmore appeared from the audience and presented the Council with a film containing footage on Seward which had been prepared by citizens of Seward's Sister City, Obihiro, Japan. He stated he would take the film to the library for the public to view. B. City Manager stated that last year the Council had given the Chamber of Commerce $3000 to assist with a publicity campaign. Representatives of the Chamber had voiced interest in coming before Council with a report on how the monies had been expended and the benefits of the campaign. Hugli, with Council consent, stated the Chamber presentation would be scheduled for the January 28, 1980, Council meeting. C. Herman Leirer appeared from the audience and requested a clarification on the State Department of Transportation's plans for road work on the Seward Highway. City Manager stated he would obtain a report on the distance to be covered in the upcoming road project. XV. ADJ OURNMENT: The meeting was adjourned at 9:20 p.m. The Council went into executive session in order to discuss a legal matter. Raymond Mayor --------------------------------~----------------------------------------------- PAGE 29 REGULAR MEETING - FEBRUARY 4, 1980 VOLUME 19 1. CALL TO ORDER: The February 4, 1980, regular meeting of the Seward City Council, as rescheduled from January 28, was called to order at 7:30 p.m. by Mayor Hugli. It was noted that the required public notice on the rescheduled meeting date had been posted and published. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. IlL ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Soriano and Swartz (Absent, with Council consent, were Gillespie and Potts) Present also: Administrative Assistant Schaefermeyer, City Engineer Small and City Clerk Shanley :' () PAGE 30 IV. REGULAR MEETING - FEBRUARY 4, 1980 VOLUME 19 APPROVAL OF MINUTES: It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve the regular meeting minutes of January 14, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: Administrative Assistant requested that the following items be removed from the regular meeting agenda, to be discussed at a later date: VIII. Citizens' Discussion: A. Seward Teen Center report B. Chamber of Commerce 1979 Publicity Campaign - Pam Oldow XI. New Business: A. Seward General Hospital subsidy At the request of the Administrative Assistant, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to hold an executive session immediately following adjournment of the regular meeting, in order to discuss a legal matter. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: SEWAGE TREATMENT: ELECTRIC DEPT/ COMPTROLLER: ABC B: ELECTRIC DEPT: ELECTRIC DEPT: ELECTRIC DEPT: ELECTRIC DEPT: 1. December 31, 1979, Invoice #09979 received from Arctic Environmental Engineers regarding the sewage treatment system, totaling $251,599.56, was approved for payment and filed. 2. January 11, 1980, invoice totaling $2,493.67, received from Price Waterhouse and Company, in connection with the Electric rate study and the audit of the Federal Revenue Sharing funds, was approved for payment and filed. 3. January 17, 1980, letter from the Alcoholic Beverage Control Board regarding the request for renewal of liquor licenses for the following establishments within the City limits, was filed without objection: Mini Mall Tony's Bar Breeze Inn Thorn's Showcase Lounge Tony's Liquor Store 4. CH2M Hill Invoice No. 10001 dated November 26, 1979, in the amount of $2,422.75, for services rendered relative to the Electric Department (Progress Bill No. 15), was approved for payment and filed. 5. CH2M Hill Invoice No. 11023 dated December 18, 1979, in the amount of $1,576.60, for services rendered relative to the Electric Department (Progress Bill No. 11), was approved for payment and filed. 6. CH2M Hill Invoice No. 11024 dated December 18, 1979, in the amount of $3,125.34, for services rendered relative to the Electric Department, was approved for payment and filed. 7. CH2M Hill Invoice No. JA05l3 dated January 16, 1980, in the amount of $5,197.85 for services rendered relative to the electric rate study, was approved for payment and filed. PAGE 31 REGULAR MEETING - FEBRUARY 4, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) WATERFRONT TRACTS: 8. GJR & W Construction Co., Inc. Invoice dated January 15, 1980, in the amount of $1,200 for driving three piling at the Fourth Avenue Dock, was approved for payment and filed. 4TH OF JULY CREEK AREA: I FOURTH OF JULY CREEK AREA: 9. R & M Consultants Invoice No. 951351 dated January 16, 1980, in the amount of $665.51 for services rendered on the Fourth of July Creek access road "p" Line survey, was approved for payment and filed. 10. R & M Consultants Invoice No. 951329-3 dated January 16, 1980, in the amount of $267.98 for services rendered on the Fourth of July Creek access road reconnaissance study, was approved for payment and filed. LOC ORGS: 11. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1980 as filed by the American Legion Post No.5 was approved for the mayor's signature. STREETS, RDS, HWYS: 12. January 24, 1980, letter from the State Dept. of Transportation and Public Facilities regarding plans for the Seward Highway road reconstruction, was noted for information and filed. VI. BOROUGH ASSEMBLY REPORT: Councilmember Campbell did not have a Kenai Peninsula Borough Assembly report to give; however, he spoke and answered questions on the Resource Develop- ment Council seminar he attended recently in Anchorage on behalf of the City of Seward. VII. PUBLIC HEARINGS: I INDUSTRIAL A. Public hearing was opened on Bruce Sieminski's proposal to lease PARK City-owned Lot 10, Seward Industrial Park, for the purpose of constructing a ship SUB: supply store, and the following items were noted: "Notice of Public Hearing" as published two times in the local newspaper January 10, 1980, letter from Bruce Sieminski, requesting to lease a parcel of City land in the Small Boat Harbor area No one appeared from the audience in order to be heard and the public hearing was closed. Administrative Assistant noted that the Harbor Commission had considered Sieminski's request at their regular meeting of January 23 and had made the unanimous motion to ". . . request the City Council to table action on the Sieminski request until after the Harbor Commission's next regularly- scheduled meeting so that the Commission could consider the total land use plan of that end of the harbor". Hugli, with Council consent, confirmed that no Council action would be taken until a recommendation had been received from the Harbor Commission. VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. I IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None .. '1 -. ' PAGE 32 REGULAR MEETING - FEBRUARY 4, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: RES/ SEWARD FISH: title only Fisheries, 1. Copies being made available to the public, Hugli noted by proposed resolution approving a dock license agreement with Seward entitled: A Resolution of the City Council of the City of Seward, Providing for the Disposal of Pre- ferential Use of a Portion of the Seward Municipal Small Boat Harbor Dock Administrative Assistant stated that the resolution as prepared by the City Attorney and presented that evening for approval did not contain the proper legal description of the dock areas to be leased on a preferential use basis to Seward Fisheries. He referred to the draft lease agreement as contained in the Council's packet of materials as having the proper legal description. He recommended that Council approve the resolution as corrected to contain the proper legal description. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-6 as corrected. x. UNFINISHED BUSINESS: WATERFRONT TRACTS: A. Administrative Assistant requested Council's oplnlon on the City administration entering into negotiations with the State of Alaska ferry system for the management of the 4th Avenue Dock facility, to fulfill the function that Northern Stevedoring and Handling Corporation had been performing in the past. lIe confirmed that the State now had preferential use of the facility for the ferry and the administration would like to investigate the possibility of the State taking over complete management of the dock. There were no objections voiced by the Councilmembers to the administration investigating such an arrangement with the State. XL NEW BUSINESS: COMPTROLLER: A. November 5, 1979, report on the Federal revenue sharing compliance audit as prepared by Price Waterhouse and Company was noted. Administrative Assistant spoke and answered Council questions on the letter report. XII. CITY MANAGER REPORTS: None XIII. COUNCIL DISCUSSION: A. Harbor Commission report - The January 23, 1980, regular meeting minutes of the Seward Harbor Commission were noted. Harbor Commissioner Paul Seaton appeared from the audience and spoke on the reasons why the Commission had requested Council to postpone any action on Bruce Sieminski's request to lease Lot 10, Seward Industrial Park, until the Commission had developed a land use plan for the area. B. Planning and Zoning Commission report - None C. Campbell thanked City employees Darryl Schaefermeyer, Thomas Small and Karen Richardson for work they did the past week on filing an application for the Seward General Hospital for an energy conservation grant in the amount of $363,000. D. Hugli, with Council consent, rescheduled the Council's regular meeting of February 11 to February 12 in order to avoid a conflict with the Alaska Repertory Theatre's local production of "Diamond Studs". I I I PAGE 33 VOLUME 19 REGULAR MEETING - FEBRUARY 4, 1980 XIV. CITIZENS' DISCUSSION: A. Ron Lewis appeared from the audience and questioned the status of the negotiations for construction of the 4th of July Creek area shipyard. Hugli and City Engineer spoke on the continuing negotiations. B. Bob Valdatta appeared from the audience and spoke against the City negotiating an agreement with the State for management of the 4th Avenue Dock. Further, he spoke on the feasibility of pumping water from Kenai Lake into Cooper Lake in order to provide for hydroelectric power. C. Paul Seaton, the City of Seward's representative on the Cook Inlet Aquaculture Corporation board, appeared from the audience and spoke on his concerns that the board was taking action which went beyond the purview of aquaculture and support of the multi-user concept. Following discussion, Seaton, with Council consent, requested official direction to make a formal objection to the board whenever, in his opinion, actions of the board had the effect of supporting special, single interests and extended beyond the initial purpose of the Corporation. xv. ADJOURNMENT: The meeting was adjourned at 8:25 p.m. The Council immediately went into executive session in order to matter. I.~/ l HugH tfl ;'~L Mayor PAGE 33 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 1. CALL TO ORDER: The February 12, 1980, regular meeting of the Seward City Council, as rescheduled from February 11, was called to order at 7:30 p.m. by Mayor Hugli. It was noted that the required public notice on the rescheduled meeting date had been posted and published. II. OPENING CEREMONY: Councilmember Potts led the pledge of allegiance to the flag. IlL ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Potts, Soriano and Swartz (Absent, with Council consent, was Gillespie) Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the regular meeting minutes of February 4, 1980, as presented. '; Ij \ j .Lr PAGE 34 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following item be removed from the regular meeting agenda: VIII. Citizens' Discussion: A. Pete Minio ~ Lot 2, Block 1, Marina Subdivision, lease Hugli requested that the following item be added to the regular meeting agenda: VIII. Citizens' Discussion: E. Seward men's basketball team At the request of Hugli, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to hold an executive session following adjournment of the regular meeting in order to discuss a legal matter. Following discussion, it was moved by Cripps, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following ac t ions were taken: ELECTRIC: 1. January 15, 1980, Invoice No. 10049 from CH2M Hill, in the amount of $5,535, for professional services rendered relative to the Grant Lake hydroelectric project, was approved for payment and filed. ELECTRIC: 2. December 14, 1979, Invoice No. 10017 from CH2M Hill, in the amount of $13,837.50, for professional services rendered relative to the Grant Lake hydroelectric project, was approved for payment and filed. SEWAGE TREATMENT: 3. February 1, 1980, Corps of Engineers notice of application filed by the City of Seward to place a riprap shore pro- tection along Lowell Point Road, to place a sewer force main in the Small Boat Harbor area, and to install a sewage outfall line into Resurrection Bay, was noted for information and filed. ABC B: 4. January 30, 1980, letter from the Alcoholic Beverage Control Board, regarding the liquor license renewal application for the Palace Bar and Cafe, was noted. Council directed the administration to file an objection to the renewal of the liquor license due to outstanding delinquent taxes. February 1, 1980, letter from City Clerk Shanley to the Alcoholic Beverage Control Board, objecting to the renewal of liquor licenses for the Flamingo Lounge, Palace Bar, Sollys Lounge and Liquor Store, and the Yukon Bar, due to outstanding delinquent taxes, was approved by Council and filed. V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of February 5, 1980. VII. PUBLIC HEARINGS: None ELECTRIC: I TAXICABS: LOCAL I PAGE 35 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 VIII. CITIZENS' DISCUSSION: A. Pete Minio was not present in the audience to discuss the lease of Lot 2, Block 1, Marina Subdivision; therefore, the item was withdrawn from the agenda. B. City Engineer Tom Small introduced Deborah Cone and Bill Clouter of CH2M Hill, authors of the "Seward Electric Rate Study". Cone spoke and answered Council questions on the summary tables as contained in the Study. In conclusion, Cone stated it was CH2M Hill's recommendation that the City increase its electrical rates by approximately 26.1 percent in 1980 and 15.7 percent in 1981 in order for the Seward Electric System to generate enough revenue to meet all operating and debt service expenses, maintain an electrical fund balance equal to at least 10 percent of gross utility plant and meet bond coverage requirements. C. February 6, 1980, memo and attached rate schedule from Legion Cab proprietor Beverly Darbyshire to the City Council, requesting a rate increase, was noted. Darbyshire appeared from the audience and spoke in support of her requested increase, stating that the rising costs of insurance premiums and fuel had made it economically unfeasible for her to continue to operate the taxicabs at last year's rates. She stated the proposed rate schedule represented an approximate increase of 50 cents per fare over the previous year's rates. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to grant the taxicab fare increase as presented. ORGS: D. Rita Selden, Chairman of the 1980 Student Art Show as sponsored by the Resurrection Bay Art Guild, appeared from the audience and spoke on the spring show. She stated she wished to offer cash prizes to the winning high school and grade school entrants--$50 and $25 respectively. Selden explained that the Guild would purchase the winning art works and donate them to the schools for display. She stated she had contacted local businesses for support of the show and to date had collected $140 in donations. She requested financial support from the Council for the Art Show. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present that the City Council contribute $150 to the Student Art Show fund. LOCAL ORGS: E. Hugli commented on the Seward men's basketball team which was presently in Anchorage playing in the Fur Rendezvous tournament. He stated that the team wished to travel to Juneau to play in the State tournament and requested Council approve funding for the players. City Manager stated there were some funds available in the recreation budget which could be expended for this purpose. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to expend recreation funds at his discretion to send the team to the Juneau tournament. I IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. - 3. Copies being made available to the public, Hugli noted by title only proposed ordinances rewriting Sections 2-1 through 2-46 of the Seward City Code regarding the City administration, entitled: No. 481 - An Ordinance Relating to the City Administration, Repealing Sections 2'-1 Through 2-7 of the Seward City Code No. 482 - An Ordinance Relating to the City Administration, Repealing Sections 2-8 Through 2-29 of the Seward City Code No. 483 - An Ordinance Relating to the City Administration, Repealing Sections 2-30 Through 2-46 of the Seward City Code I.j.... >P' BUDGET: SEWARD FISHERIES: HOSPITAL: PAGE 36 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 IX. (cont'd) ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: (cont'd) City Manager recommended that the public hearings on the ordinances be scheduled for the Council meeting of March 24, 1980, in order to allow time for the Counci1- members to hold a work session to study the ordinances in more detail. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to introduce proposed Ordinance No. 481, 482 and 483 and schedule the public hearings for March 24, 1980. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: None x. UNFINISHED BUSINESS: None XL NEW BUSINESS: A. The following proposals for the audit of the City's books for fiscal year 1979-80 were noted: Coopers & Lybrand Mikunda, Cottrell & Company Peat, Marwick, Mitchell & Company Price Waterhouse & Company City Manager recommended that the Council approve the proposal as submitted by Price Waterhouse. Hug1i voiced objection to the late date of the completion of the previous year's audit and stated that Price Waterhouse, if selected, should be made to submit a time schedule for completion of the audit which would be acceptable to the Council. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to stay one more year with Price Waterhouse and evaluate it next year, with them giving Council a time frame for completing the audit. B. February 5, 1979, lease between the City of Seward and Seward Fisheries for Lot 15, Seward Industrial Park, was noted. It was further noted that the lease contained a January 31, 1980, deadline for submittal of con- struction plans for a bottom fishing processing facility on the parcel. Don Hansen, Seward Plant Manager for Seward Fisheries, appeared from the audience and requested a year's time extension due to the recession presently underway in the bottom fishing industry which made it economically unfeasible to construct such a facility at this time. In answer to a question from Potts, City Manager stated there had been no interest voiced in the parcel by any other party. Following discussion, it was moved by Potts, seconded by Swartz and unanimously carried by all those present to grant Seward Fisheries a one year's extension in providing the City Council with plans for the development of that property. C. City Manager stated that the City owned Seward General Hospital and leased the facility to the hospital board, a non-profit corporation, at a nominal yearly fee. He stated that the hospital was experiencing financial difficulties and recommended that the Council consider acting favorably upon the grant of a $50,000 appropriation to the hospital. Campbell stepped down from the dais and spoke from the audience as hospital administrator on the desire to maintain local control of the facility and the need for short-term financial assistance. He stated the hospital board was currently working on a solution to the long-term financial problems but needed funds to keep the facility operational through June 1980. Ruth McHenry, Brent Whitmore and George Mueller appeared from the audience and spoke in support of the City assisting the hospital financially. Following discussion, Hugli, with Council consent, scheduled a February 25, 1980, public hearing on the granting of the requested funding to the hospital. PERSONAL PROPERTY/ LOC ORGS: I .) ! PAGE 37 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 XI1. CITY MANAGER REPORTS: A. City Manager stated that the City owned a 1974 automobile which was scheduled for surplus. He reported that the Seward Council on Alcoholism and Community Services (SCACS) was in need of transportation. He stated if there was no Council objection he would allow SCACS to use the vehicle, with the City providing the insurance and the SCASC to be responsible for fuel and maintenance; there was no objection voiced by Council. B. City Manager distributed a map of the Jesse Lee H6me area and stated that a tentative proposal had been submitted to the administration for the use of the abandoned buildings as a summer college. He stated the developers planned to rebuild the structure at their own expense and were interested in a long-term lease with the City for the buildings and a small portion of the adjacent lands. Hugli, with Council consent, stated the Council had no objections to the City Manager proceeding with preliminary negotiations for Jesse Lee Home. 4TH OF JULY C. Administrative Assistant requested Council approval of a bill in CREEK: the amount of $3740 to R & M Consultants, Inc. for work done by a local sub- contractor on the 4th of July Creek area access road. He stated the bill represented a $1063 oVer-run on the allocated project costs of $32,670. Following discussion, it was moved by Hugli, seconded by Soriano and unanimously carried by all those present to approve the bill of $3740 to R & M Consultants. XIII. COUNCIL DISCUSSION: A. January 23, 1980, Harbor Commission recommendation that the City administration proceed with obtaining a long-term lease or land transfer of the Alaska Railroad right-of-way in the harbor area was noted. City Manager confirmed that the administration was continuing negotiations on the matter. HARBOR COMSN: B. It was noted that the terms of Harbor Commissioners Binder, Dunham, Hudspeth and Pruitt expired in February 1980, and all had asked to be reappointed. Hugli, with Council consent, confirmed the reappointment of the Commissioners. I ORIGINAL TOHNSITE: I C. Planning and Zoning Commission report - None that the that the D. City City Swartz stated that she had received a request for a local citizen crews sand the hospital parking area more often. Campbell reported was doing a good job in trying to keep the hospital area sanded. E. Campbell stated that something should be done about the historical house which had been moved from its permanent location and was now temporarily placed at the south end of 3rd Avenue on the Waterfront Tracts. XIV. CITIZENS' DISCUSSION: A. Ronnie Lewis appeared from the audience and presented a letter dated February 11, 1980, and "Decision and Order" signed January 23, 1980, relative to the legal action Ronnie L. Lewis vs. Board of Adjustment of the City of Seward, Alaska, and Daren E. Miller, d/b/a Miller Company, on the proposed construction of an apartment complex on Lots 26-30, Block 22, Original Townsite of Seward. At the request of Lewis, Hugli directed the City Clerk to read in full the two documents. City Manager advised that no discussion take place on the matter due to the absence of the City Attorney. B. Bob Valdatta appeared from the audience and spoke on the bottom fishing industry and various other matters. C. Jean Cripps, member of the Seward Volunteer Ambulance Corps, appeared from the audience and stated that the doors at the new senior citizens' housing complex were electrically operated and they would be locked from the inside if the power went off. She stated the Corps members needed a means to get into the building to reach a patient during an emergency. City Manager stated he would contact ASHA, the project developers, regarding a solution to the problem. D. Paul Seaton appeared from the audience and stated that last week's newspaper had paraphrased his comments before the Council meeting of February 4, stating that the Cook Inlet Aquaculture Board was not doing any good. He stated that was not what he thought he had said nor what he intended to say and hoped he had not left that impression with Council. .~x PAGE 38 REGULAR MEETING - FEBRUARY 12, 1980 VOLUME 19 XV. ADJOURNMENT: The meeting was adjourned at 9:56 p.m. The Council immediately went into executive session to discuss a 7 (l I "l ..~~ ... ~ ~.., / I Raymon L. Hugli Mayor PAGE 38 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 1. CALL TO ORDER: The February 25, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hug1i. II. OPENING CEREMONY: Councilmember Potts led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Potts, Soriano and Swartz Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Swartz and unanimously carried to approve the regular meeting minutes of February 12, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: seconded by immediately matters. At the request of the City Manager, it was moved by Soriano, Potts and unanimously carried to hold an executive session following the meeting, in order to discuss personnel and legal City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: A. William R. Lovern of Arthur Young & Company - City of Seward 1979-80 audit B. Kathleen Putman - Seward Teen Center C. CH2M Hill - Grant Lake hydroelectric feasibility study 1,.-' PAGE 39 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) IX. Ordinances and Resolutions: A. Ordinances for Introduction: 1. Proposed Ordinance No. 484 regarding the setting of electric power rates by resolution I C. Resolutions: 4. Proposed Resolution No. 80-10 awarding the contract for construction of an electric substation and switching station XIII. Council Discussion: D. Harbor Commission report City Manager requested that the following item be added to the consent calendar: 4. "Application for Permit for Authorized Games of Chance and Skill" for calendar year 1980, as filed by the Wesleyan-General Volunteer Hospital Auxiliary - Approve for mayor's signature Following discussion, it was moved by Gillespie, seconded by Potts and unanimously carried to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: I 1. February 11, 1980, letter from the Alcoholic Beverage Control Board, noticing of renewal of liquor license application as submitted by the Pioneer Bar and Liquor Store, was filed without objection. ABC B: ABC B: 2. February 13, 1980, letter from the Alcoholic Beverage Control Board, noticing of renewal of liquor license application as submitted by the Flamingo Lounge, was filed with objection due to outstanding, delinquent taxes. ABC B: 3. February 15, 1980, letter from the Alcoholic Beverage Control Board, noticing of renewal of liquor license applications as submitted by the American Legion Post #5 and the Pizza Apollo, was filed without objection. LOC ORGS: 4. "Application for Permit for Authorized Games of Chance and Skill" for calendar year 1980, as filed by the Wesleyan- General Volunteer Hospital Auxiliary, was approved for the mayor's signature. V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of February 19, 1980. VII. PUBLIC HEARINGS: I HOSPITAL: A. Public hearing was opened on the proposal to grant a $50,000 cash subsidy to the Seward General Hospital, and "Notice of Public Hearing" as published two times in the local newspaper and posted, was noted. No one appeared from the audience in order to be heard and the public hearing was closed. Campbell and Cripps stated that they would abstain from voting on the question due to the fact that they derived income from the hospital. (see also IX. C. 3., page 41 ) ,~n BUDGET: WATERFRONT TRACTS: PAGE 40 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 VIII. CITIZENS' DISCUSSION: A. William R. Lovern of the Anchorage office of Arthur Young & Company, appeared from the audience and reported that his firm had been solicited by the City of Seward to submit a proposal for the performance of the City's audit for fiscal year 1979-80. He stated that in mid-January he had contacted City Comptroller Burt Baugh regarding the audit proposal and Baugh had verbally informed him that a deadline date for submittal of the proposals had not yet been established due to all the road closures. Lovern stated Baugh assured him that all the auditing firms solicited for proposals would be informed by mail when a deadline date had been set. Lovern said he had never received notice of the deadline for receipt of the proposals; however, when he arrived in Seward on February 13 to hand-deliver Arthur Young's proposal, he had been informed by Darryl Schaefermeyer that the Council had considered the audit proposal the previous evening and had elected to continue with the services of Price Waterhouse & Company. In conclusion, Lovern stated Arthur Young's estimated fee represented a 23-37 percent savings as compared to the estimated fee quoted by Price Waterhouse and urged the Council to review and consider the proposal. (see also XL A., page 42 ) B. Kathleen Putman, Director of the Seward Teen Center, appeared from the audience and gave a verbal report on the operation of the Center and the number of local Seward teens using the facility. She confirmed that the Center had received funding to keep it operational through October 31, 1980. Following discussion, Campbell, with Council consent, requested a verbal report from Putman on a quarterly basis. RECESS: The meeting was recessed at 8:00 p.m.; reconvened at 8:10 p.m. ELECTRIC: C. Messrs. Ron Reiland and Jack West of CH2M Hill appeared from the audience and gave a verbal presentation on the "Feasibility Assessment - Hydropower Development at Grant Lake - Review Draft" dated February 1980, which the engineering firm had prepared for the City of Seward and funded by a Coastal Energy Impact Program (CEIP) grant. West displayed transparencies which compared the anticipated future per-megawatt costs of power obtained from Bradley Lake, Chugach Electric Association and Grant Lake, and he spoke on the estimated future energy needs of Seward. In conclusion, West stated that the recommendations of CH2M Hill were that the Council consider pro- ceeding with the $29 million project through the Federal Energy Regulatory Commission (FERC) permit/license application phase and to try to fund the application process with grant monies. He further recommended that the City approach the Alaska Power Authority in order to try to interest them in going forward with the project. He stated that Council need not make a decision immediately; however serious consideration should be given to planning for the City's future energy needs by tapping the most economical electrical sources which could be made available. ELECTRIC/ ORDS: IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies being made available to the public, Hugli noted by title only proposed ordinance which would provide for the establishment of electrical rates by Council resolution rather than by ordinance, entitled: An Ordinance Relating to Schedule of Rates for Electric Power Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried to introduce proposed Ordinance No. 484 and schedule a public hearing for March 24, 1980. B. Ordinances for Public Hearing and Enactment None C. Resolutions: SEWAGE TRTMT/ 1. - 2. Copies being made available to the public, Hugli noted RES: by title only proposed resolutions regarding the City's secondary sewage treatment facility, entitled: "l_A PAGE 41 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) SEWAGE TRTMT/ C. Resolutions: (cont'd) RES: (cont'd) (proposed Resolution No. 80-7) I A Resolution Authorizing the City Manager to Sign All Applications, Grant Agreements and Amendments, and Other Documents Relating to Wastewater Facilities Planning and Con- struction Grants (proposed Resolution No. 80-8) A Resolution Committing the City of Seward to Establish an Industrial Cost Recovery System When Required I City Manager requested that prior to Council consideration of the two resolutions Sidney Clark and Willem VanHemert of Arctic Environmental Engineers (AEE), the City's engineers for the sewage treatment project, be allowed to give a report on the status of the project, including current cost estimates. VanHemert distributed a two-page cost breakdown of the sewage treatment project and displayed charts which itemized the April 1978 total project cost estimate of $6,312,240 and compared it with the February 1980 project cost estimate of $7,452,038. Clark and VanHemert spoke and answered Council questions on the planned aerated lagoon to be located on property which had already been purchased by the City in the Lowell Point area. In conclusion, VanHemert listed AEE's recommendations to the Council as follows: 1) to approve the Environmental Protection Agency (EPA) Step III grant application at the increased project cost estimate of $7,452,038; 2) to approve Resolution No. 80-7 and 80-8, requirements of the EPA grant application; 3) to approve an addendum to the City's original agreement with AEE for the wastewater treatment facility, providing for construction-management services; and 4) to establish sewer user rates in the near future. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried to approve Resolution No. 80-7. It was moved by Gillespie, seconded by Soriano and unanimously carried to approve Resolution No. 80-8. It was moved by Soriano, seconded by Campbell and unanimously carried to authorize the City Manager to apply for a grant for $7,452,000 for the sewage treatment plant. HOSPITAL/ BUDGET/ RES: 3. Copies being made available to the public, Hugli noted by title only proposed resolution granting a $50,000 subsidy to Seward General Hospital and amending the City budget, entitled: A Resolution Appropriating Monies From the General Fund Balance to the Mayor and Council Contingency Fund for the Purpose of a Subsidy to the Seward General Hospital It was moved by Soriano, seconded by Swartz and carried as follows to approve Resolution No. 80-9: I Ayes: Noes: Absent: Abstain: Gillespie, Hugli, Potts, Soriano and Swartz None None Campbell and Cripps (see also VII. A., page 39) 4/ ELECTRIC/ RES: BUDGET: SISTER WATER: PAGE 42 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4. Copies being made available to the public, Hugli noted by title only proposed resolution awarding the contract for construction of an electric substation and switching station, entitled: A Resolution Accepting Bids and Awarding the Contract for the Construction of Seward Substation and Mile 24 Switching Station City Manager, with Council consent, requested that the evening meeting be recessed following completion of all other agenda items except this resolution; and that the Council reconvene the following day at 11:00 a.m. to discuss the electric system improvements. (see also IX. C. 4., page 45) X. UNFINISHED BUSINESS: None RECESS: The meeting was recessed at 9:40 p.m.; reconvened at 9:47 p.m. XI. NEW BUSINESS: A. February 18, 1980, letter from Arthur Young & Company regarding the audit proposal for fiscal year 1979-80 was noted. In answer to a question from Gillespie, City Manager stated it was his understanding that the Council had chosen to retain Price Waterhouse, even though the firm's fee was higher than other audit proposals submitted, due to the City's conversion to a computer system and Price Waterhouse's familiarity with the City's books and the new computer system. Cripps stated it was unfortunate that shortcomings in the City's bid solicitation process had caused confusion and he stated that such shortcomings should be corrected by the administration. There was no Council response to Hug1i's question if it was the wish of Council to reconsider the February 12 action to retain Price Waterhouse for the performance of the City's audit for fiscal year 1979-80. Hugli addressed Lovern and apologized for the misunderstanding and confusion but confirmed Council's wish to uphold its earlier decision to retain Price Waterhouse for the upcoming City audit. (see also VIII. A., page 40) CITY: regarding was noted. a gift and arrival in B. February 18, 1980, letter from the Baranof Bluegrass Band its tour of Japan and visit to Seward's Sister City, Obihiro, Hug1i, with Council consent, recommended the Council purchase he would write a short message, for the Band to deliver upon its Obihiro. XII. CITY MANAGER REPORTS: A. City Manager stated he had been approached by a councilmember and asked to investigate the costs of having the Seward water tested for carcinogens, specifically asbestos, due to the use of asbestos pipe in the area. He stated he had made initial investigations and an estimated $15,000 would be required to have a complete test done of the Seward water. Gillespie stated he had requested the water test due to a problem in Whitehorse where a high incidence of cancer had been linked to the presence of asbestos in the water supply. City Engineer Small appeared from the audience and stated the Whitehorse incident had been investigated thoroughly and the facts were that Whitehorse, for many years, was the export center for a raw asbestos cement product and the dust generated from the transport activity had been sited as the source and cause of the cancer problem, not the use of asbestos water pipe. He explained that there were four types of asbestos, two that were cancer-causing and two that were not; he confirmed that the type of asbestos widely used in water pipe was of the non-cancer-causing variety. In conclusion, he stated the City administration was seeking grant sources to fund the water tests. Hugli, with Council consent, supported the administration's efforts to investigate and research the background of the alleged problem. PAGE 43 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 XI1. CITY MANAGER REPORTS: (cont'd) B. City Manager reported that Bud Schultz of Chugach Electric Association would be in Seward on Wednesday, February 27, to discuss a wholesale power agreement. He invited the Councilmembers to attend the meeting. 4TH OF JULY C. City Manager stated he needed Council's official approval of CIK AREA: the Letter of Intent between the City of Seward and VECO regarding the construction of a shipyard at the Fourth of July Creek industrial park, as signed February 15, 1980. It was moved by Soriano, seconded by Cripps and unanimously carried to authorize the City Manager to sign the Letter of Intent with VECO. ORIGINAL TOWNSITE: D. City Attorney referred Council to the February 11, 1980, letter from Ronnie L. Lewis which had been hand-delivered by Lewis at the February 12 Council meeting. The letter pertained to the City's issuance of a conditional use permit for construction of an apartment complex on Lots 26-30, Block 22, Original Townsite, as owned by Daren E. Miller. Lewis owned property adjacent to the Miller property and objected to the subject construction. City Attorney reviewed each of the six specific requests made by Lewis in the letter and gave a legal recommendation on each item. In conclusion, he stated that all requests were either untimely or non-supportive and recommended Council take no action at this time. In answer to a question from Cripps, City Attorney stated the Superior Court of the State of Alaska had not yet decided whether or not the City had properly issued the conditional use permit granted Miller. Lewis appeared from the audience and invited the councilmembers to his residence to view the improper alley grade and the cracked basement wall, two grievances addressed in his letter. (see also XIV. A., page 44) XII 1. COUNCIL DISCUSSION: A. The following items were noted as to the vacancies on the Seward Planning and Zoning Commission: PLANNING & ZONING I CCMSN: Advisory I February 20, 1980, memo from the City Clerk, listing the names of those commissioners whose terms had expired and the names of those citizens submitting applications for the vacancies "Notice of Vacancy - Advisory Planning and Zoning Commission" as published three times in the local newspaper "Application for Commission Appointment" as received from: Donald H. Hansen Mary F. Lewis Thomas G. Reese Douglas A. Spanier City Clerk noted that Dean Williams had requested that he be considered for reappointment to the Commission. Hugli confirmed that there were three positions available and five applicants. The councilmembers cast secret ballots, each voting for three individuals. The City Clerk tallied the votes and reported that Donald Hansen, Douglas Spanier and Dean Williams had received the highest number of votes. Hugli, with Council consent, confirmed the appointment of Hansen, Spanier and Williams to the Seward Advisory Planning and Zoning Commission. B. Hugli, with Council consent, scheduled a Council work session for Wednesday, March 5, commencing at 7:00 p.m., in order to review proposed Ordinance No. 481, 482 and 483, revising the administrative chapter of the City Code. i -1' ~t "'-" PAGE 44 REGULAR MEETING - FEBRUARY 25, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) AK, ST OF: C. A portion of the October 22, 1979, Council meeting minutes regarding shipping on the Kenai Peninsula, was noted. Gillespie asked if the administration had done any research on the use of the Seward port for cargo bound for the Peninsula. Administrative Assistant reported that he had recently met with Bob Pollock, Agriculture Management Specialist from the Governor's office, regarding a port of export for the Delta barley project, and the initial assessment was that Seward was classified as the most likely export location for the 10,000 tons of grain expected in 1980. He stated Pollock had requested a statement of interest from the City in support of Seward as the export site. Potts stated he had also met with Pollock on the question of the pneumatic system which blew the grain into the ships possibly damaging the individual grain husks; he confirmed that the system was being investigated to see if it could handle the grain product. Following discussion, Gillespie, with Council consent, requested that a resolution supporting Seward as the export site for the barley project be drafted for Council consideration. (see also XIII. C. cont'd, below) D. City Manager stated he needed Council direction on the request made by the Harbor Commission for an explanation of the audit as it related to the Harbor enterprise fund. Paul Seaton, Harbor Commissioner, appeared from the audience and stated the two specific areas of the audit questioned involved the non-operating expense interest charge of $18,000 and the accounting of the funds received from the sale of the previous boat lift. Gillespie stated the Commission should condense their requests to written questions which could be sent to the auditors for answers. E. Campbell stated the Council should be thinking about Seward as the possible termination port for the natural gas pipeline due to the problems which are arising with the Canadian route. CITIZENS' DISCUSSION: XIV. A. Ronnie Lewis appeared from the audience and again invited the councilmembers to come to his residence to view the improper grading of the alley adjacent to his property, as well as the cracked basement wall, allegedly caused by the construction on Lots 26-30, Block 22, Original Townsite. Gillespie, with Council consent, requested that the City Manager have the Public Works foreman check the alley grade to which Lewis referred. B. Bob Valdatta appeared from the audience and spoke on the need for a port director for Seward. C. In answer to a question from Jean Cripps, City Manager stated he had not yet contacted ASHA for a solution to the problem of the doors at the senior citizens' housing project locking during a power outage, thus causing serious delay problems for the Ambulance Corps. Hugli stated the item should be placed on the Council's next agenda if an answer was not forthcoming the following day at the reconvened meeting. (see also XIV. C. cont'd, page 46) RECESS: The meeting was recessed at 10:50 p.m., at which time Council went into executive session to discuss personnel and legal matters; reconvened at 11:00 a.m. February 26, 1980. COUNCIL DISCUSSION: (cont'd) XIII. AK, ST OF: (cont'd) C. (cont'd - see above) City Manager distributed and read in full a draft resolution regarding the export of grain from the Delta barley project through the Seward port, entitled: A Resolution of the City Council of Seward, Alaska, Supporting the Movement of Grain From the Delta Barley Project Through the Port at Seward AK, ST OF: (cont'd) I ELECTRIC/ RES: I I PAGE 45 REGULAR MEETING - FEBRUARY 25-26, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) City Manager stated that the resolution could not be formally approved until it had been placed on a regular meeting agenda; however, he requested an affirmative poll of the Council's support so the resolution could be forwarded to Bob Pollock to assist him in his efforts. Councilmembers gave a verbal consensus supporting the resolution and it was noted that the document would appear as an agenda item for the Council meeting of March 10, 1980. IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4. Copies being made available to the public, City Manager distributed to the Council corrected copies of a proposed resolution awarding the contract for construction of electrical system improvements, entitled: A Resolution Accepting Bids and Awarding the Contract for the Construction of Seward Substation and Mile 24 Switching Station City Manager stated that due to a drastic downturn in the bond market in the past few days, the City was unable to market its $1.7 million general obliga- tion bonds for the Seward Electric' System improvement& at a rate not to exceed 7.5 percent, as approved by the voters in the October 1979 general municipal election. He stated the administration recommended the scheduling of a new bond election for the issuance of revenue bond~ to take the place of the general obligation bond issue. Paul Arnett, First Southwest Company, the City's financial advisor, appeared from the audience and spoke on the erosion which had recently taken place in the bond market and which prohibited the City from issuing its general obligation bonds at an acceptable interest rate. He stated that due to new interpretations of Coastal Energy Impact Program (CEIP) funding regulations, it appeared that the City could still obtain grant monies with the issuance of revenue bonds, and such a change from a general obligation bond issue would be to the City's benefit. City Engineer Tom Small appeared from the audience and spoke on the progress the City administration had made in the background work necessary for the bond issue and CEIP grant application. City Manager stated he would like to send the City Engineer and Administrative Assistant to Washington D.C. the following week in order to meet with CEIP officials regarding project funding. Arnett explained that the revenue bond issue would exceed $1.7 million by the amount of reserves required of such a bond issue--approximately 10 percent of the issue amount. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried to authorize a revenue bond election, to finance the electrical improvements, of approximately $1.7 million in construction funds and necessary reserves to fund the average annual principal and interest, with the proviso that the general obligation bond issue will be cancelled upon the passage of the revenue bond issue. Regarding the resolution presented for approval, City Manager stated the engineer's estimate for the project had been $635,000; and Fishbach and Moore, the lowest, fully-responsive bidder, had submitted a price of $524,695. He recommended Council approval of the resolution. Following discussion, it was moved by Potts, seconded by Swartz and unanimously carried to approve Resolution No. 80-10. XIII. COUNCIL DISCUSSION: (cont'd) COUNCIL: F. Potts stated he had submitted his letter of resignation from the Council. Hugli read in full the letter dated February 25, 1980. Following discussion, it was moved by Campbell, seconded by Gillespie and carried as follows to accept Larry Potts' resignation: Ayes: Noes: Absent: Abstain: Campbell, Cripps, Gillespie, Hugli, Soriano and Swartz None None Potts ,1 f; PAGE 46 REGULAR MEETING - FEBRUARY 25-26, 1980 VOLUME 19 XIV. CITIZENS' DISCUSSION: (cont'd) C. (cont'd - see XIV. C., page 44) City Manager reported that a key to the fire doors at the senior citizens' housing project had been made available to the Ambulance Corps. XII. CITY MANAGER REPORTS: (cont'd) E. City Manager stated he had received a request from the Borough to have the dump road closed to traffic from 7:00 p.m. until 7:00 a.m. daily while the Borough was doing wor~which included blasting, on the landfill. Hugli, with Council consent, approved the road closure. XIII. COUNCIL DISCUSSION: (cont'd) G. Hugli asked to be excused from the March Council meetings because he would be out of town. XV. ADJOURNMENT: was adjourned at 11:34 a.m. PAGE 46 REGULAR MEETING - MARCH 10, 1980 VOLUME 19 1. CALL TO ORDER: The March 10, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Gillespie. 11. OPENING CEREMONY: Councilmember Soriano led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Campbell, Cripps, Soriano and Swartz (Absent, with Council consent, was Mayor Hug1i) Present also: City Manager Johnson, City Attorney Jarrell and City Clerk Shanley PROCLAMATION: City Clerk read in full City of Seward Proclamation, declaring March 9-15, 1980, as "Older Worker's Week" and Vice Mayor Gillespie so proclaimed. IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting minutes of February 25-26, 1980, as written. PAGE 47 REGULAR MEETING - MARCH 10, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following item be added to the consent calendar: 3. December 31, 1979, bill from Cranston, Walters, Dahl & Jarrell, as received March 6, 1980, for legal services rendered, totaling $2,469.26 I It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting agenda as presented and the consent calendar as amended and the following actions were taken: ELECTRIC: 1. February 15, 1980, Invoice No. 10063 from CH2M Hill in the amount of $8,856 for engineering services rendered relative to the Grant Lake hydroelectric project, was approved for payment and filed. LOC ORGS: 2. "Application for Permit for Authorized Games of Chance and Skill" for calendar year 1980, as filed by the American Legion Auxiliary, was approved for the Mayor's signature and filed. C ATTORNEY: 3. December 31, 1979, bill from Cranston, Walters, Dahl & Jarrell, as received March 6, 1980, for legal services rendered, totaling $2,469.26, was approved for payment and filed. V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of March 4, 1980. I VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) LOC ORGS/ A. Pam Oldow appeared from the audience and gave a report on the BUDGET: Seward Chamber of Commerce 1979 publicity campaign, to which the City had donated $3,000. She stated that the public relations firm of Murray, Bradley and Rockey had been retained to help Seward gain a high profile of visibility and the firm's efforts could partially be credited for Seward businesses realizing an increase in sales of 50-60 percent, even though the Seward Highway had been closed during a major portion of the summer. Oldow requested that the Council allocate $4,000 from the fiscal year 1980-81 budget for continuation of the publicity campaign; she confirmed that the Chamber of Commerce would also donate $4,000 and it was estimated that an additional $2,000 would be received from other donations. In response to a comment from Bob Valdatta, present in the audience, Campbell requested that the Chamber and City administration investigate the possibility of producing a video program about Seward, to be made available to various agencies. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to earmark $4,000 as the City's contribution to the public relations advertising campaign by Murray, Bradley and Rockey. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None I B. Ordinances for Public Hearing and Enactment: None C. Resolutions: AK, ST RES: OFf 1. Copies being made available to the public, Gillespie noted by title only proposed resolution supporting Seward as the port of export for the Delta Barley Project, entitled: A Resolution of the City Council of Seward, Alaska, Supporting the Movement of Grain From the Delta Barley Project Through the Port at Seward , '\ PAGE 48 REGULAR MEETING - MARCH 10, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) AK, ST OFf RES: (cont'd) Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-11. X. UNFINISHED BUSINESS: None XL NEW BUSINESS: SPEC COM SISTER CITY: EVENTS/ A. February 23, 1980, letter from A & P Tours, Inc. regarding the participation of the Obihiro Amateur Stage Band in Seward's 4th of July activities, was noted. It was moved by Campbell, seoonded by Swartz and unanimously carried by all those present to extend an invitation for the Obihiro Amateur Stage Band to perform at the July 4 ceremonies. TELEVISION: B. Channel 2 Translator Maintenance Contract "Intent of Proposal" between the City of Seward and Messrs. Frank Spadero and Dick Lowman, at $35,000 per year, was noted. City Manager stated Spadero and Lowman planned on placing new equipment at the Mt. Wolcott site, hence the $10,000 penalty clause for cancellation of the agreement in less than three years. He reported that if the City charged television customers $5 per month, the City could maintain the Channel 2 translator, pursuant to the draft contract, as well as the satellite station. In answer to a question from Soriano, City Manager replied that the City did not have to go out to bid on the contract due to the specialized services to be provided. City Manager recommended that Council authorize him to negotiate a contract with Spadero and Lowman. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to instruct the administration to enter into negotiations to consummate a television management contract as discussed. XII. CITY MANAGER REPORTS: C HALL: A. City Manager read in full February 28, 1980, letter from the State Department of Labor regarding upgrading offices in the municipal building to accommodate the handicapped. He recommended that Council authorize him to respond to the letter by informing the Department of Labor that the City planned no modifications to the municipal building at this time. Gillespie stated that the State should be asked if they had funding available to cover the costs of modifications for handicapped access as requested in the letter. Following discussion, Gillespie, with Council consent, requested the administra- tion obtain an estimated cost of providing a ramp to the first floor level of City Hall. It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to inform the Department of Labor that no modifications were planned for the municipal building. C COMPTROLLER: B. City Manager reported that the City had advertised for a Finance Director and he had interviewed applicants and requested Council approval to hire Joseph Gale, currently the Comptroller for Hope Cottages in Anchorage. It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to hire Joseph Gale as the Finance Director for the City of Seward. C. City Manager stated the City Administrative Assistant and Engineer had traveled to Washington D.C. the previous week on City business and had received assurance that NOAA would make a direct loan of $1.7 million to the Alaska Municipal Bond Bank to cover the cost of the City's electric system improvements bond issue, with a guaranteed interest rate not to exceed 7y, percent. - Small appeared from the audience and spoke on discussions held with representa- tives of the offices of State Senators Stevens and Gravel, as well as Repre- sentative Young, regarding repair of the Lowell Creek Diversion Tunnel. Further, Small and Schaefermeyer had met with representatives of the Rural Electrifica- tion Association regarding the City's negotiations with Chugach Electric Association for a wholesale power contract. Small also reported that CEIP officials had stated that the public facility planned for the 4th of July Creek area appeared to be an eligible project for low-interest loan support from the Program. .O.,i '-' PAGE 49 REGULAR MEETING - MARCH 10, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) STREETS, RDS, HWYS: I D. City Manager reported that he would be meeting with Maury Wilson of the State Department of Transportation on Thursday, March 13, regarding the 4th of July Creek access road, for which a supplemental appropriation in the amount of $4 million had been presented to the Legislature. He stated that $4 million was more than what was needed for the project and, with Council consent, recommended approving the expenditure of $.5 million of the funds for the paving of Nash Road. Further, he reported that supplemental appropriations had also been submitted for Lowell Point Road, in the amount of $1 million, and for Resurrection River Road, in the amount of $50,000. E. City Manager reported that the City had lost a motor in Well No. 1 and repair was planned as soon as possible, at an estimated cost of $3,500 to $10,000 depending on whether it would be necessary to replace the motor. F. City Manager, with Council consent, requested permission to attend the spring meeting of the Alaska City Manager's Association, to be held in Juneau on March 24-25, 1980. XIII. COUNCIL DISCUSSION: KPB: A. February 27, 1980, letter from the Kenai Peninsula Rural Development Council, requesting support of the following resolutions, was noted: KPRDC Resolution 80-1 A Resolution of the Kenai Peninsula Rural Development Council Supporting Development of Ports and Harbors in the Kenai Peninsula Borough KPRDC Resolution 80-2 I A Resolution of the Kenai Peninsula Rural Development Council Supporting the Efforts of Representative Hugh Malone in Seeking State of Alaska Funding for an Industrial Water Line to the Central Peninsula Industrial Areas and Other Areas of Need Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to support Resolution 80-1 and 80-2. City Manager stated a City resolution in support of the KPRDC's two resolutions would be drafted for Council approval. C COUNCIL: B. February 25, 1980, letter of resignation from Councilmember Larry Potts was noted. Gillespie stated the procedure which had been followed by previous Councils when such a vacancy occurred was to appoint the individual who had received the highest number of votes of those not elected at the last general election. City Manager stated that Jean Leer had received the highest number of votes of those not elected at the October 1979 election. He confirmed he had discussed the appointment with Leer and she had voiced a willingness to serve. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to appoint Jean Leer to fill Larry Potts' unexpired term, until the next general election. HARBOR I COMSN: David Clerk C. February 27, 1980, letter of resignation from Harbor Commissioner Hudspeth, was noted. Gillespie, with Council consent, directed the City to advertise the vacancy. D. Harbor Commission recommendaticnsto the City Council as set forth in the Commission meeting minutes of February 27, 1980, were noted. It was also noted that no Harbor Commissioner was present in the audience to discuss the recommendations. Following discussion, Gillespie, with Council consent, scheduled a Council work session, to be held in conjunction with the regular Harbor Commission meeting of Wednesday, March 26, 1980, in order to discuss the various recommendations. !' () PAGE 50 REGULAR MEETING - MARCH 10, 1980 VOLUME 19 XII 1. COUNCIL DISCUSSION: (cont'd) PLANNING & ZONING: E. Campbell, speaking as the Council's representative to the Kenai Peninsula Borough Assembly, questioned the Assembly's interpretation of Alaska Statutes, a portion of Title 29, which required every Borough to have a Comprehensive Plan. He stated the Kenai Peninsula Borough was acting to establish Comprehensive Plans for each incorporated city within the Borough and, compiled, designated such as the Borough Comprehensive Plan. Campbell objected, stating that those areas outside the incorporated cities, but still within the confines of the Borough, did not have a Comprehensive Plan. He voiced support for legal action to be taken, if necessary, to determine the proper definition of "Comprehensive Plan" as referred to in Title 29. City Manager stated he would contact the State Department of Community and Regional Affairs on the subject and also bring the matter up as an item for discussion at the City Managers' meeting March 25-26. F. In reply to a comment from Soriano that the water had a strong chlorine taste, City Manager stated he would check on the level of chlorine in the City water supply. G. Soriano stated the Council should start reviewing applications for the City commissions more thoroughly instead of just appointing whoever applied. Gillespie stated that past instances showed that there was a lack of interest and usually there were not enough people applying for the vacancies. He recommended the Clerk contact other cities to see what kind of application forms were required to be filled out by individuals wishing to serve on city commissions. H. Gillespie spoke on Council adoption of a resolution which would urge the State to expend permanent fund or excess revenue funds for the con- struction of low-cost energy projects such as hydroelectric facilities. City Manager stated the administration would draft a resolution for Council review. ELECTRIC/ LP: I. Gillespie spoke on the recent power fluctuations and stated it seemed more than just a coincidence that the fluctuations corresponded to Louisiana Pacific's operation of its chipper motor. He stated the City should require the mill to install capacitors so its operations would notbe to the detriment of the remaining electrical customers. City Engineer Small stated the administration was working with LP on a solution to the problem. In reply to Gillespie, City Manager stated he would have a report for Council in April on the progress of reaching a solution to the problem. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on the need for management of the 4th Avenue Dock and development of the 7th Avenue area as something other than a greenbelt. B. Beverly Dunham appeared from the audience and spoke on the need for the City to post in advance any item to be purchased in order to allow local businesses the opportunity to bid on the products. City Manager and City Engineer Small confirmed that every effort had been made to hire local individuals and buy local products whenever feasible. Cripps stated there seemed to be a problem with the City's bid solicitation/proposal/award procedures due to the fact that several complaints had been made by private individuals since he had been on Council. Gillespie, with Council consent, requested that that portion of the City Code pertaining to bid procedures be placed on the Council agenda for the March 24 meeting. XV. adjourned at 9:35 p.m. ~ : l I I C ATTORNEY: I PAGE 51 REGULAR MEETING - MARCH 24 1980 VOLUME 19 1. CALL TO ORDER: The March 24, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Gillespie. 11. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Gillespie; Counci1members Campbell, Cripps, *Leer, Soriano and Swartz Present also: Administrative Assistant Schaefermeyer, City Attorney Jarrell and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting minutes of March 10, 1980, as written. V. SWEARING IN OF NEW COUNCILMEMBER: * Jean Leer, appointed to fill the vacant Council seat left by resign- ing member Lawrence W. Potts, Jr., appeared, took the oath of office as admin- istered by the City Clerk, was seated at the dais and thereafter took part in the meeting. V1. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: Administrative Assistant requested the following additions to the regular meeting agenda: IX. Citizens' Discussion: A. March 24, 1980, letter from Seward Boatowners' Association President Monty Richardson regarding proposed rate increases for operation of the Small Boat Harbor X. Ordinances and Resolutions: C. Resolutions: 8. Proposed Resolution No. 80-19 approving signatures on City bank accounts It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: 1. Cranston, Walters, Dahl & Jarrell bills received March 18, 1980, for legal services rendered in the following amounts, were approved for payment and filed: January 1980 February 1980 $ 3,600.80 2,722.57 WATER DEPT: 2. March 18, 1980, bill received from Trans-Alaska Engineering. in the amount of $3,150, for the Mt. Marathon water intake improvements design engineering, was approved for payment and filed. PAGE 52 REGULAR MEETING - MARCH 24, 1980 VOLUME 19 V1. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) ELECTRIC: 3. March 14, 1980, Invoice No. 10077 from CH2M Hill in the amount of $4,981.50 for engineering services rendered relative to the Grant Lake hydroelectric project, was approved for payment and filed. TV: 4. Letter received March 14, 1980, from Mrs. Ernest R. Peterson regarding the television billing, was noted for information only. ELECTRIC/ C ATTORNEY: 5. Claim for damages in the amount of $91.70 as filed by Mrs. Harvey Marshall for damage allegedly caused by an electrical outage, was noted. City Engineer's memo dated March 16, 1980, recommending payment of the claim was also noted and approved. VII. BOROUGH ASSEMBLY REPORT: Councilmember Campbell stated he was not in attendance at the Kenai Peninsula Borough Assembly meeting of Tuesday, March 18, 1980; however, he had been informed that the Assembly had enacted an ordinance which approved a Land Use Plan for Seward. VII 1. PUBLIC HEARINGS: None IX. CITIZENS' DISCUSSION: (With prior notice only) HARBOR: A. March 24, 1980, letter from Seward Boatowners' Association President Monty Richardson regarding proposed rate increases for operation of the Small Boat Harbor, was noted. Monty Richardson was present in the audience and stated that the letter had been written in response to requests he had received from various members of the Association. He commented that the letter reflected the concerns of the boat owners--the biggest majority of which were Anchorage residents. Gillespie, with Council consent, stated the letter would not be discussed this evening but, rather. be presented at the Harbor Commission meeting and Council work session scheduled for Wednesday, March 26. x. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: ORD: 1. Copies being made available to the public, Gillespie noted by title only proposed ordinance relating to the City administration, entitled: An Ordinance Relating to the City Adminis- tration, Repealing Sections 2-1 Through 2-7 and Creating Sections 2.10.010 Through 2.10.050 of the Seward City Code "Notice of Public Hearing" as published two times in the local newspaper, and posted as required, was noted. Public hearing was opened on the proposed ordinance. Beverly Dunham appeared from the audience and, in response to a question posed by her, City Attorney stated the ordinance addressed personal injury and property liability, not liability which might occur due to slanderous or libelous acts of a City employee. No one else appeared from the audience in order to be heard and the public hearing was closed. City Attorney called the Council's attention to Section 2.10.040, (e) and recommended that item (1) be removed from the ordinance, due to the liability exposure involved in directing a City employee involved in an accident to secure or provide emergency care for injured persons. Cripps stated that although a City employee should not be expected to do more than would a regular person in the event of being at the scene of an accident involving injured persons, he did not want the City to abrogate its responsibilities just because there was a question of liability. He suggested that ORDS: (cont'd) PAGE 53 REGULAR MEETING - MARCH 24. 1980 VOLUME 19 x. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: (cont'd) (1) be reworded to read "immediately secure or provide emergency care for injured persons in the same manner as would the average prudent person". Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 481 as amended by Don Cripps. lORDS: 2. Copies being made available to the public, Gillespie noted by title only proposed ordinance relating to the City administration, entitled: ORDS: I ELECTRIC/ ORDS: ELECTRIC/ LEG REPS/ IRES: An Ordinance Relating to the City Admin- istration, Repealing Sections 2-8 Through 2-29 and Creating Sections 2.20.010 Through 2.20.190 of the Seward City Code "Notice of Public Hearing" as published two times in the local newspaper, and posted as required, was noted. Public hearing was opened on the proposed ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 482. 3. Copies being made available to the public, Gillespie noted by title only proposed ordinance relating to the City administration, entitled: An Ordinance Relating to the City Admin- istration, Repealing Sections 2-30 Through 2-46 and Creating Sections 2.30.010 Through 2.30.080 of the Seward City Code "Notice of Public Hearing" as published two times in the local newspaper, and posted as required, was noted. Public hearing was opened on the proposed ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Swartz, seconded by Leer and unanimously carried by all those present to enact Ordinance No. 483. 4. Copies being made available to the public, Gillespie noted by title only proposed ordinance relating to establishing electrical rates by Council resolution, entitled: An Ordinance Relating to Schedule of Rates for Electric Power City Clerk noted that the effective date as noted in the ordinance needed to be changed from April 1 to April 3 due to the Code requirement that, unless the ordinance was of an emergency nature, it could not take effect until ten days following enactment. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 484. C. Resolutions: 1. Copies being made available to the public, Gillespie noted by title only proposed resolution supporting the State funding of hydroelectric projects, entitled: A Resolution Requesting the State Legislature to Consider Use of Surplus Funds to Finance Hydroelectric Power Generation It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-12. ! :' t PAGE 54 REGULAR MEETING - MARCH 24, 1980 VOLUME 19 x. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) KPB/ RES: 2. Copies being made available to the public, Gillespie noted by title only proposed resolution supporting Kenai Peninsula Rural Development Council (KPRDC) resolutions, entitled: A Resolution Supporting Kenai Peninsula Rural Development Council's Resolution No. 80-1 Regarding Port and Harbor Develop- ment on the Peninsula, and Resolution No. 80-2 Regarding a Central Peninsula In- dustrial Water Line It was moved by Soriano, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-13. 4TH OF JULY 3. Copies being made available to the public, Gillespie noted CREEK AREA/ by title only proposed resolution providing for the taking of land for the RES: 4th of July Creek area access road, entitled: A Resolution of the City Council of the City of Seward, Alaska, Providing for the Taking of a Right-of-Way Across Two Parcels of Land for Access to the Fourth of July Creek by the Right of Eminent Domain and for the Filing of a Declaration of Taking Virginia Darling, owner of some of the property which the road would be crossing, appeared from the audience and requested the following considerations relative to the taking of a road right-of-way across her land: o that any land under 100 feet in depth between the road right-of-way and the east section line be surplused to the City o that the City survey a portion of Darling's land between the road right-of-way and the east section line at the same time the City is surveying for the road o that Mrs. Darling retain any mineral rights o that a time limit be established for con- struction of the road so. the property would revert back to Darling's ownership if the road was not completed within a specified period of time o determination and agreement on who would own the timber which would be removed from the road right-of-way Mrs. Darling stated that a creek used to run across her property but in years' past it had been diverted and now ran across Dorothy Stewart Noyes' property. She commented that she would have no objection to the creek being diverted back to its original course. Dorothy Stewart Noyes appeared from the audience and requested that the City divert the creek back onto Darling's property. Administrative Assistant responded that the City had not considered this project due to the environ- mental impact reports which would be required. Noyes stated she had talked to Environmental Protection Agency representatives in Anchorage and their response was that the government had no interest in the matter if the owners of both of the parcels of land affected were in agreement that the creek should be returned to its original course. In conclusion, Noyes requested the same considerations as Mrs. Darling had set forth regarding the City's taking of land for the 4th of July Creek industrial park area access road. 4TH OF JULY CREEK AREA! RES: (eont'd) I 4TH OFJULY CREEK AREA/ RES: I PAGE 55 REGULAR MEETING - MARCH 24, 1980 VOLUME 19 x. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) Gillespie, with Council consent, requested that the administration investigate Noyes' request for the creek diversion and, further, to continue negotiations with the two parties in the attempt to reach a satisfactory settlement for purchase of the land without the necessity of taking the land by eminent domain procedures. City Attorney spoke to Council on the procedure which had to be followed in the governmental taking of private property by eminent domain. Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-14. 4. Copies being made available to the public, Gillespie noted by title only proposed resolution setting the rates for the Seward Electric Utility, entitled: A Resolution Establishing Rates for Electric Power Administrative Assistant noted that approval of the resolution would have to be postponed to a later date due to the fact that Ordinance No. 484 (see page 53, X. B. 4.), providing for the setting of electrical rates by resolution, would not become effective until April 3. City Clerk confirmed that the resolution, when approved, would not become effective until ten days following the date of approval. 5. Copies being made available to the public, Gillespie noted by title only proposed resolution authorizing the acceptance of a State grant for the extension of Nash Road to the 4th of July Creek area, entitled: A Resolution Authorizing the City Manager to Sign Necessary Documents Accepting a Department of Transportation Grant Offer of $1,000,000 for the Design and Initial Construction of the Extension to Nash Road In answer to a question from Campbell, Administrative Assistant gave a brief scenario on what the $1 million would accomplish--all the basic design work, drilling for the bridge abutments and materials, pre-construction survey work excluding slope staking, hydraulic investigation of the bridge on Nash Road (a State requirement), land acquisition costs, complete road clearing to the gully, installation of drainage piping--culminating in a pioneer access road to the bridge with a 4-wheel drive access road from the bridge to the 4th of July Creek area. Further, he reported that it appeared the City would receive an additional $3.5 million in State funds by July 1, 1980, for completion of the project. He stated that the bridge could be completed by the fall of 1980, the pioneer access road completed by the beginning of 1981, and the entire roadway completed, including paving, during the 1981 construction season. Following discussion, it was moved by Soriano, seconded by Swartz and unani- mously carried by all those present to approve Resolution No. 80-15. 4TH OF JULY 6. Copies being made available to the public, Gillespie noted CREEK AREA/ by title only proposed resolution authorizing the negotiation of an engineer- RES: ing contract with R & M Consultants for the extension of Nash Road to the 4th of July Creek area, entitled: I A Resolution Authorizing the City Manager to Renegotiate the Engineering Contract for Extension of Nash Road Administrative Assistant reported that the State had already approved R & M Consultants as the engineers for the project. Cripps voiced objection to awarding a contract involving such a large sum of money without following through with a competitive bid procedure. In response, Administrative Assistant stated that if the bid process were carried out, a delay of 60 days could be expected on the project. Following discussion, it was moved '>h PAGE 56 REGULAR MEETING - MARCH 24, 1980 VOLUME 19 x. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4TH OF JULY CREEK AREA/ RES: (cont'd) by Campbell, seconded by Swartz and carried as follows to approve Resolution No. 80-16: Ayes: Noes: Absent: Campbell, Gillespie, Leer, Soriano and Swartz Cripps Hug 1i SEWAGE RES: TRlMT/ by of title only the sewage 7. Copies being made available to the public, Gillespie noted proposed resolution accepting a $1,387 State grant for Step I treatment facility project, entitled: A Resolution Accepting the Alaska State Grant in Connection with the Step I Sewerage Project Facility Plan It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-17. C COMPTROLLER/ 8. Copies being made available to the public and distributed RES: to Council, Gillespie noted by title only proposed resolution approving signatures on City bank accounts, entitled: A Resolution Authorizing Signatures for the City Bank Accounts and Rescinding All Previous Resolutions in Conflict Herewith It was noted that the resolution was necessary to remove retiring Comptroller Burton W. Baugh's name from the list of approved signatures, and to replace it with new Finance Director S. Joseph Gale's signature. It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-18. XL UNFINISHED BUSINESS: None XII. NEW BUS INESS : None XII 1. CITY MANAGER REPORTS: PKS & REC: A. March 12, 1980, letter from the Corps of Engineers, requesting a long-term lease on the Army's Seward Recreation site, was noted. Adminis- trative Assistant noted that the Army was apparently under the impression that Seward had selected for State transference the subject property as part of the Municipal Land Entitlement Act selections. He reported that the City had selected the land; however, the State had informed the City that the land was not eligible for selection. In conclusion, he stated that the administra- tion would so notify the Corps of engineers of this fact. ELECTRIC: B. CH2M Hill "Authorization for Professional Services" dated February 27, 1980, for the providing of specifications for the Seward Electric Utility substation footings and control house, at a cost not to exceed $2,500 plus expenses, was noted. Administrative Assistant explained that separation of the specifications for the footings and control house from the major contract package would allow local contractors the opportunity to bid on the specific projects. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to authorize the City Manager to sign the agreement with CH2M Hill for the specifications for the Seward Electric Utility substation footings and control house, at a cost not to exceed $2,500 plus expenses. , ,. PAGE 57 REGULAR MEETING - MARCH 24, 1980 VOLUME 19 ;.) s XII1. CITY MANAGER REPORTS: (cont'd) C. Administrative Assistant introduced audience members Ron Walt, transportation specialist for the Division of Economic Enterprise, State Department of Commerce and Economic Development, and Dr. Carol Lewis, professor at the University of Alaska. Walt and Lewis were two of the five-member board appointed by the Governor to investigate the dynamics and mechanices of export- ing the grain from the Delta Barley Project. Walt spoke and answered Council questions on the status of their investigations on exporting the grain from the trial agricultural project. I XIV. COUNCIL DISCUSSION: P & Z COMSN: A. March 12, 1980, letter of resignation from Planning and Zoning Commissioner Daniel Keyes was noted. City Clerk noted that application forms had been submitted by Seward residents Mary Lewis, Patrick O'Brien, Thomas Reese and Raya Shott. A secret ballot was conducted; the City Clerk tallied the ballots and reported that Raya Shott had received three votes. It was moved by Swartz, seconded by Campbell and carried as follows that Raya Shott be appointed to the Planning and Zoning Commission to fill the vacancy left by Daniel Keyes: Ayes: Noes: Absent: Campbell, Cripps, Gillespie, Leer and Swartz Soriano Hug Ii P & Z COMSN: B. Statement and petition received March 17, 1980, from Ronnie Lewis, regarding the Seward Land Use Plan, was noted. Administrative Assistant noted that the Land Use Plan had been approved by the Borough Assembly on March 18, 1980. City Clerk confirmed that the Seward Advisory Planning and Zoning Commission had scheduled the Lewis request for an amendment to the Land Use Plan as a topic for discussion at the next regular meeting. Gillespie, with Council consnet, postponed any Council discussion on the matter in view of the Planning Commission's scheduled review of the request. I BIDS: C. Section 10-7 and 10-8 of the Seward City Code regarding City bid and purchasing procedures, was noted. Cripps stated he felt that the Code provisions for purchasing were too liberal and did not afford proper stewardship of the public monies. Following discussion, Cripps, with Council consent, volunteered to draft his proposed changes to the Code sections and present them for Council review and discussion on April 14. D. on the power the previous In answer to a question from Swartz, City Clerk gave a outage which caused the heating system in the City Hall week. report to fail E. Swartz reported on a trip she had made to Juneau and asked that Margaret Branson be sent copies of the Council agendas and minutes. F. In answer to a question from Campbell, City Attorney stated he was reviewing the Cooperative Agreement between the City and the Bear Creek Fire Service Area and would have a recommended draft ready for Council review at the April 14 Council meeting. xv. CITIZENS' DISCUSSION: I A. Mary Lewis appeared from the audience and questioned the status of her appeal to the Council regarding the Seward Land Use Plan. (see above, XIV. B.) Administrative Assistant and City Clerk explained that the appeal had not been presented in a timely manner to the proper source and that Lewis' course of action would be to request an amendment to the adopted Plan. XV 1. ADJOURNMENT: was adjourned at 9:54 p.m. f' /i , 2 ('L' /11 . ~ . ~ " C.A j...;;."'A- ~9hn F. Gillespie / y,ice Mayor 4TH OF JULY CREEK AREAl LEG REP: SEWAGE TREAT MENT: 4TH OF JULY :REEK !\REA: O.T./ C A: r~ Q ~-,), , PAGE 58 SPECIAL MEETING - APRIL 7, 1980 VOLUME 19 1. CALL TO ORDER: The April 7, 1980, Special meeting of the Seward City Council was called to order at 3:00 p.m. by Mayor Hugli. It was noted that the required public notice of the meeting had been fulfilled. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer, Soriano, Swartz Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and Deputy City Clerk Ledet IV. SPECIAL ITEMS: A. City Manager Johnson gave a brief summary of figures on the shipyard project at the Fourth of July Creek industrial area. He stated that the completed industrial park would be approximately $40 million with $23 million in public facilities which would include such things as a dredged harbor, dock boat lift, floating dock, sheeting piling, freight dock, ferry dock, repair yard area, etcand the $17 million in private facilities including repair stands, rails into the building, engineering, office spaces, excavation, footings, welding equipment, etc. He asked the Council to consider hiring a lobbyist during this legislative session. He suggested Kent Dawson, a lobbyist who is well-known for being effective. City Manager stated that the cost of hiring a lobbyist is approximately $4,000 plus expenses or about $5,000 per month. Following discussion, it was moved by Gillespie, seconded by Soriano, and unanimously carried by all those present that the Council give the City Manager the authority to enter into a contract, not to exceed $5,000 per month, with a lobbyist to work specifically for the Seward shipyard project for the remainder of this legislative session. B. City Manager spoke of need for approval of a construction management contract with Arctic Environmental Engineers for the sewage treatment facility. He reported to Council that a figure of $367,743.44 was included in the original estimated cost of $7,452,000 approved February 25, 1980, by Council Resolution No. 80-8. In answer to a question from Campbell, City Manager stated that this is the last phase before the contract is awarded. Following discussion, it was moved by Soriano, seconded by Leer, and unanimously carried by all those present that the Council approve the construction management contract with Arctic Environmental Engineers for the sewage treatment facility for the sum of $367,743.44. C. City Manager reported that among the other projects involving the shipyard, the City was in need of a preapplication to the Coastal Energy Impact program for funding due to the CEIP may be phased out by the Carter administration. He stated that he felt it would be in the best interest for the City of Seward if Schaefermeyer and Small went to Washington D.C. to apply for $5 million before the program expires. He explained that an advantage of the funding is that it has a forgiveness clause which states that if the project does not materialize the City would not have to raise taxes. He also stated that Schaefermeyer and Small would be meeting with the FCC. Hugli, with Council consent approved of the trip to Washington D.C. D. City Manager stated that the City had received notice of legal action against the City regarding Ronnie Lewis versus Daren E. Miller, Chugach Development Corporation and the City of Seward. He further stated that the City was presently involved in a related case with the Lewis' in which the law firm HTGP&B represents the City and requested an unofficial motion of approval to refer this case to HTGP&B. It was moved by Campbell, seconded by Soriano, and unanimously carried by all those present to refer this to Hughes, Thorsness, Gantz, Powell and Brundin. AK ST OF: I I I PAGE 59 SPECIAL MEETING - APRIL 7, 1980 VOLUME 19 IV. SPECIAL ITEMS: (cont'd) E. City Manager stated as a matter of information to the Council that the Delta Barley project transportation committee was meeting on Tuesday, April 8, 1980, regarding shipment of grain from the State in 1980. Schaefermeyer stated he felt that the committee would be recommending against any new building programs this year and it was a possibility that they would use the Alaska Railroad warehouse to store the initial five or six tons of grain to be shipped out of State in 1980. He stated that no decision would be made until after the initial shipment of grain as to construction of a permanent grain facility. V. ADJOURNMENT: at 3:34 p.m. J ;' ( Raymond Mayor (, I~ I \ M.:' Ledet CiV Clerk (City seaf\ ''''(. . . . .. 't. ,f' ~ ~l'" .,,, .. .1,' A ?'4 .' e;,',v c:;~ ---------------------------------------------------------------------------- PAGE 59 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 1. CALL TO ORDER: The April 14, 1980, regular meeting of the Seward City Council was called to order at 7:31 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer, Soriano and Swartz Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Campbell and unanimously carried to approve the regular meeting minutes of March 24, 1980, and the special meeting minutes of April 7, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: The regular meeting agenda was amended as follows: VIII. Citizens' Discussion: B. Don Holland - Breeze Inn Motel (DELETED) B. Mike Meehan (ADDED) City Manager introduced the City's new Finance Director, S. Joseph Gale, who was present in the audience. f10 PAGE 60 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) It was moved by Swartz, seconded by Campbell and unanimously carried to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: COMPTROLLER: 1. Comptroller's list of Accounts Payable for the first three months of 1980 were approved for payment and filed as follows: January February March $ 298,560.33 506,397.24 162,695.32 C ATTORNEY: 2. Hughes, Thorsness, Gantz, Powell and Brundin bills for legal services rendered were approved for pay- ment and filed as follows: Months of Service Amount Date of Bill TOTALS $5,202.07 266.62 $5,468.69 March 19, 1980 April 2, 1980 January/February March ELECTRIC DEPT: 3. February 15, 1980, Invoice No. 10060 from CH2M Hill for engineering services rendered relative to the Seward electrical substation project, totaling $1,953.46, was approved for payment and filed. ABC B: 4. March 25, 1980, letter from the Alcoholic Beverage Control Board, noticing of request for transfer of the liquor license for Dorothy's Cocktail Lounge from Ralls to Mitchell and Kinser, was noted and filed without objection. PLANNING & ZONING: 5. March 25, 1980, letter from Kenai Peninsula Borough Planning Analyst Gabler, transmitting Borough Ordinance No. 80-3, "Adopting a Land Use Plan as a Part of the Revised Comprehensive Plan for the City of Seward" as enacted March 18, 1980, by the Borough Assembly, was noted for information and filed. STREETS: 6. February 22, 1980, bill in the amount of $4,000 for the City's purchase of road repair material from the State Department of Transportation and Public Facilities in September of 1977, was approved for payment and filed. LEG REPS: 7. April 3, 1980, letter from Thomas Williams, Commissioner of the State Department of Revenue, informing the City of the legislative action regarding municipal bond sales, was noted for information and filed. VI. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of April 1, 1980. VII. PUBLIC HEARINGS: None SCHOOLS/ FEDERAL ADDN: I OCEANVIEW SUB: I ELECTRIC/ RES: I PAGE 61 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Robert Richardson, Administrator of Facilities and Special Projects for the Alaska Skill Center, appeared from the audience and spoke on the recent fire which destroyed the armory which was located on Block 6, Federal Addition. He explained that the land on which the building had been located was owned by the City of Seward and had been leased to the State Department of Military Affairs and subsequently subleased to the Skill Center. He commented that the decision had not yet been made whether to salvage what remained of the structure or to construct an entirely new facility. He requested Council support of whatever decision was forthcoming from the State. Swartz, with Council consent, stated that Council should assure Richardson that use of the land could be maintained by the Skill Center for educational purposes. Richardson further commented on other capital improvement and expansion projects planned for the Skill Center in the near future. B. Letter dated April 11, 1980, from Mike Meehan, requesting Council consideration of his proposal to transfer a portion of his ownership in Lot 5, Block 4, Oceanview Subdivision, to the City in return for the City-owned parcel located to the north and adjacent to his property, was noted. Meehan appeared from audience and referred to the vicinity map which had been presented to Council. He stated he proposed to give the City the portion of his lot which infringed upon the alley right-of-way located to the east of his lot. He commented that the City parcel he was requesting in return had no value to the City due to its limited size -- 35 x 110.08 feet. Gillespie spoke on the apparent inequity in exchanging approximately 3850 square feet of City property for 658 square feet of private land. He requested that Meehan's proposal be presented to the Advisory Planning and Zoning Commission for their recommendation. Following discussion, Hugli, with Council consent, directed the City Clerk to schedule a public hearing for the Council meeting of April 28 in order to receive public comment on Meehan's proposal. It was noted that the matter would be presented to the Planning and Zoning Commission at its regularly-scheduled meeting of May 14, 1980. the IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution increasing the rates for electrical power, entitled: A Resolution Establishing Rates for Electric Power City Manager stated the rates as set forth in the resolution were those derived from the Electric Rate Study which had been recently completed by CHjM Hill. He confirmed that the rates represented an increase of approximately 26 percent and would become effective May 15 if the resolution was approved. City Manager answered Council questions on the proposed increase and, in answer to a specific question from Gillespie, he stated that the new base rate was a monthly fee which did not cover any electrical useage, as contrasted to the previous base rate which covered up to 100 kilowatts. In answer to questions from Hugli regarding definitions for "commercial" and "power" rates, City Engineer Small appeared from the audience and stated that the terms were defined in the Electrical Tariff, previously approved by Council. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried to approve Resolution No. 80-19, effective May 15, 1980. f. ') PAGE 62 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 x. UNFINISHED BUSINESS: FIRE DEPT: A. City Manager reported that he had just received the draft of the proposed "Cooperative Agreement Between the Bear Creek Fire Service Area (BCFSA) and the City of Seward" from the City Attorney that evening and requested, with Council consent, that he be allowed to send a copy to the BCFSA for review and schedule the matter for discussion at the April 28 Council meeting. TELEVISION: B. City Manager distributed March 26, 1980, (received April 14, 1980) letter and draft "Maintenance Agreement" and "Construction Agreement" for the rebuilding of the existing 10-watt station and maintenance of the Channel 2 television translator on Mt. Wolcott, from Dick Lowman, Trans- Alaska Engineering. He reviewed the two draft agreements which proposed a cost of $55,500 for upgrading the present equipment and a monthly fee of $1,800 for maintenance of the upgraded facility. In answer to a question from Swartz, City Manager reported that the City was receiving approximately $2,800 per month from local residents for television service; and the educational station was costing approximately $500 per month to operate. Campbell questioned whether the Council really wanted to get back into operating the Mt. Wolcott site and stated that he was of the opinion that citizens wanted television but did not want to pay for it. City Engineer Small appeared from the audience and stated that Mt. Wolcott television offered a different type of programming than was received from the earth station. He stated that the Channel 2 equip- ment was virtually worn out and if the system were to be revived the equipment would have to be replaced. Following discussion, it was moved by Gillespie, seconded by Leer and carried as follows to direct the City Manager to advertise for bids for the reconstruction and maintence of the Mt. Wolcott television system: Ayes: Noes: Absent: Cripps, Gillespie, Hugli, Leer, Soriano and Swartz Campbell None XI. NEW BUSINESS: WATERFRONT TRACTS: A. March 20, 1980, letter from The North Pacific Rim, requesting a two-year lease extension on Tract 2, Seward Waterfront Tracts, and that structure located thereon commonly referred to as "the old Alaska Railroad carpenter shop" as owned by the City and leased to The North Pacific Rim in 1978 for operation of a teen center, was noted. City Manager recommended that the Council approve the two-year lease extension as requested. Following discussion, it was moved by Campbell, seconded by Leer and carried as follows to extend the lease for two years on Tract 2, Seward Waterfront Tracts: Ayes: Noes: Abstain: Absent: Campbell, Cripps, Gillespie, Hugli, Leer and Soriano None Swartz None Swartz noted that she abstained due to the fact that she was employed by The North Pacific Rim. City Attorney stated that since the lease extension repre- sented the disposition of City property, a public hearing would be necessary prior to formal approval of the lease renewal. Hugli directed the City Clerk to advertise the required public hearing, to be held at the April 28, 1980, Council meeting. WATER: B. Department of the Army, Corps of Engineers letter of March 21, 1980, regarding repair of the Lowell Creek Diversion Tunnel, was noted. City Manager reported that the letter cited the lack of maintenance--the City's responsibility--as the reason for the state of disrepair of the tunnel and stated that the Corps had no authority to make the necessary repairs. City Manager stated the Congressional delegation had been apprised of the situation and the hazardous condition of the tunnel and he would keep Council informed on any progress made in the administration's attempts to receive funding for the repairs. WATERFRONT TRACTS: C. March 24, 1980, letter from Alaskan Fisheries Company (AFC) relative to the proposed lease of Tracts 5 and 6, Seward Waterfront Tracts, was noted. City Manager spoke and answered questions on the Company's proposal to lease the tracts for marine development, including the construction of a dock facility to service AFC's vessel, Alaska I. He reported AFC proposed to lease the tracts, which had been appraised as having an approximate yearly lease rental value of $26,000, at the rate of $10,000 per year in order to provide an incentive to AFC to place the required rip rap and construct the WATERFRONT TRACTS: (cont'd) I ELECTRIC DEPT: I I PAGE 63 VOLUME 19 REGULAR MEETING - APRIL 14, 1980 XI. NEW BUSINESS: (cont'd) proposed dock facility--an estimated $300,000 project. City Manager stated Council needed to consider whether it wanted to negotiate an incentive lease for the property. Hugli stated that if an incentive lease was approved, the payments should be tied to the facility completion date so the payments would increase in direct correlation with the time it took to complete the proposed construction. Swartz suggested that any lease should contain a clause which required a performance bond to insure project completion. Campbell stated the lease should impose a service/wharfage fee for products going across the dock facility which were not AFC products. Following discussion, it was moved by Gillespie, seoonded by Swartz and unanimously carried to authorize the City Manager to continue towards a finalized lease with Alaskan Fisheries Company, along the lines as presented, for an incentive lease as proposed in their March 24 letter. D. Memorandum dated April 8, 1980, from City Engineer Tom Small to City Manager Johnson regarding the foundation and control house bid for the Seward Electric System substation site work, was noted. City Manager stated the foundation and control house had been separated from the comprehensive bid package for the electric system improvements in order to allow local contractors an opportunity to bid on the project. He reported that the only bid received was from Wells Built Homes and that bid was $30,000 to $35,000 above the engineer's estimate of the project costs. City Manager stated that although the Engineer recommended rejection of the bid he felt that due to the critical nature of the project the Council should award the bid. City Engineer Small appeared from the audience and spoke on the bid received and his engineer's estimate. He stated his recommendation was to reject the bid re- ceived from Wells Built Homes at $87,510 and negotiate a lower price with the contractor. Cripps spoke in support of rebidding the project in areas other than Seward in order to receive the best possible price. Gillespie questioned whether the City Engineer's recommendation to negotiate a bid price with Wells Built Homes was in conformance with the City Code require- ments for purchasing. RECESS: The meeting was recessed at 9:00 p.m. in order to allow the City Attorney an opportunity to review the City Code section on bids and purchasing; the meeting reconvened at 9:08 p.m. City Attorney stated that pursuant to Section 10-8 of the Seward City Code the Council could declare an emergency and then negotiate a contract for the substation work. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried to reject the only bid on the project. It was moved by Gillespie, seconded by Swartz and carried as follows to authorize the City Manager, with the assistance of the City Engineer, to renegotiate with the only bidder a contract for this work, not to exceed $87,510: Ayes: Noes: Absent: Gillespie, Hugli, Leer, Soriano and Swartz Campbell and Cripps None In answer to a question from Campbell, City Manager reported that only two local merchants had responded to the City's newspaper advertisement requesting names of those establishments wishing to have business dealings with the City. XII. CITY MANAGER REPORTS: ELECTRIC: A. City Manager reported that the two local industrial users of electricity--Seward Fisheries and Louisiana Pacific--were coordinating their use of electrical power in order to assist in the control of their peak demands. City Engineer Small stated that Seward had reached the maximum demand on the electrical system and was, in fact, experiencing "brown-out" conditions. He commented on various methods which were being investigated to control the mill's drain on the system and stated that at the present time the City was running the generator during peak demand in order to try to stabilize voltage. In answer to a question from Campbell, City Manager replied that the City was two to three months away from a completed feasibility study on the Grant Lake hydroelectric project. ~ 1 \)- ~ PAGE 64 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) B. City Manager reported that Bud Schultz, General Manager of Chugach Electric Association, would be coming to Seward in the near future to discuss the City's power supply contract with CEA. C. City Manager reported that the U.S. Army Reserves had contacted the City administration regarding the establishment of a detachment in Seward. He stated representatives of the Reserves would be flying to Seward on Saturday, April 19; Hugli confirmed he would be available to meet with the individuals. B. City Manager reported on the status of SSHB 60, currently in the Free Conference Committee of the State Legislature, which contained $3 million for the construction of the 4th of July Creek industrial park area access road. He stated he would be travelling to Juneau the following day for a meeting with lobbyists and legislators regarding the proposed harbor and industrial park on the east side of Resurrection Bay. XIII. COUNCIL DISCUSSION: A. on amendments discussion of Cripps reported that he had not yet compiled his recommendations to the City's bid and purchasing procedures and requested that the item be postponed to a later date. HARBOR: B. Harbor Commission report: 1. City Clerk commented that the current vacancy on the Harbor Commission had been advertised in the local newspaper on two occasions; however, no application had been received. No action was taken by the Council on the matter. 2. Harbor Enterprise Fund - Gillespie reported that at the joint Harbor Commission meeting/City Council work session of March 26, 1980, discussion had taken place regarding the $125,000 which the Harbor Enterprise Fund owed the City of Seward General Fund according to the accountant's records. He stated the Harbor Commissioners had voiced objections to the amount owed and the interest on the debt and had requested some type of relief. Paul Seaton, Harbor Commissioner, appeared from the audience and reported on discussion which took place at a recent Harbor Commission work session. He stated that the Commissioners questioned if the Harbor Enterprise Fund could be credited for the revenue received from the sale of the old boat lift and, additionally, if the Harbor Master's building could be transferred as an asset of the Harbor rather than being leased from the City. City Manager spoke on the State law requiring that all revenue-producing entities of a governmental unit be handled by an enterprise fund accounting system. He also spoke on the land which was owned by the City but was being used for boat storage and the Harbor was receiving the revenue realized from that useage without having to pay rental for the land. He also explained that when the Harbor Enterprise Fund was established, $90,000 of payments made by the General Fund for Harbor projects had been forgiven. In reference to the old boat lift, Gillespie stated the equipment had been purchased with a Federal grant and only 25 percent of the purchase price, or $8,000, had been local monies. He suggested that the City credit the Harbor Fund for the outstanding balance of approximately $4,000 and, further, to allow the Enterprise Fund to repay the $125,000 debt in ten equal annual install- ments with no interest being charged. City Manager asked that he be allowed to speak as a tax- payer and he voiced objection to the taxation rate on motor vessels, i.e. $5 or $15, depending on vessel tonnage. He stated that he felt the boats should be taxed at the same rate as other personal property within the City. City Clerk stated that the comments and suggestions that Seaton had voiced regarding the boat lift and the Harbor Master's building had not been formally accepted by the Harbor Commission. She reported that a proposal regarding the transference of the Harbor Master's building to the Harbor Enterprise Fund had been voted upon by the Commission but had been defeated. Further, she stated that although a draft recommendation regarding the revenue received from the sale of the old boat lift had been presented at a Commission meeting, no affirmative action had been taken by the members. Hugli questioned whether the Harbor Commission should even be involved in the accounting of the Harbor funds as part of their advisory duties. HARBOR: (cont'd) I I I 'I"~ PAGE 65 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) 3. The Harbor Commission regular meeting minutes of February 27, 1980, were noted. City Manager gave a financial report on the Harbor Enterprise Fund and stated he had recommended a $2 per lineal foot increase in the yearly moorage rates in order to cover the anticipated $55,000 increase in operating expenses for the coming fiscal year. He stated that the Harbor Commission had voted upon and passed the recommendation at its February 27 meeting. Following discussion, it was moved by Gillespie, seconded by Swartz and carried as follows to take the recommendation of the City Manager and Harbor Commission and increase the rates $2 per lineal foot for moorage: Ayes: Noes: Absent: Campbell, Cripps, Gillespie, Leer, Soriano and Swartz Hugli None Gillespie spoke against the February 27 Harbor Commission recommendation to increase the upland boat storage rates. Seaton stated that the Commission had approved such a rate increase due to their position that boat storage was a vital harbor service and the City should not lose revenue by maintaining land for boat storage rather than leasing it for development purposes. He stated the proposed rate increase would generate revenue comparable to the fair market appraisal value of the real property were it leased by a private party for development. Gillespie spoke in support of the Harbor Commission's recom- mendation to designate the west storage yard near the boat lift as a working yard. Campbell recommended that all Commission recommendations be tabled until the debt issue had been resolved. Monty Richardson, Harbor Commissioner, appeared from the audience and stated that the Commission desired another work session with the Council, to be held on a date other than the regular meeting time for either body. In response to the Harbor Commission's recommendation of February 27 that electricity be supplied to the west,wQrking yard, City Manager stated the electrical crew would be working on the installation the coming summer. 4. The Harbor Commission regular meeting minutes of March 26, 1980, were noted. Gillespie referred to the Commission's recommendation regarding a derelict and abandoned vessel ordinance. Hugli directed the City Attorney to make the amendments in the draft ordinance as requested by the Commission and to submit it to the Commission for review. Gillespie referred to the Harbor Commission's recommendation of March 26 to revise the rate schedule for vessels tied to the City dock. Seaton noted that the newly-proposed rate schedule increased the charge for vessels in excess of 104 feet in length. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried to approve the Harbor Commission recommendation and increase the transient and City Dock moorage rates by adding the different lengths (see March 26, 1980, Harbor Commission meeting minutes, Page 126, Volume 1). C. Administrative Assistant stated the City had received a request from the Bureau of Land Management to appoint a representative to serve on the newly-formed Iditarod National Trail Advisory Council. He stated the request had been made due to the fact that the Trail originally started in Seward. Swartz recommended the appointment of Lee Poleske. Bob Valdatta appeared from the audience and recommended the appointment of Mike Meehan. Schaefermeyer commented that further information on the purpose of the committee would be received later in the week. Following discussion, it was moved by Campbell, seconded by Soriano and carried as follows that this be a Mayor's appointment and he make it later in the week when he had received the additional information: Ayes: Noes: Abstain: Absent: Campbell, Cripps, Gillespie, Leer and Swartz Soriano Hugli None (: (: PAGE 66 REGULAR MEETING - APRIL 14, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) D. Swartz requested the administration investigate the problem of excessive water runoff and the lack of adequate culverts, especially on Second Avenue. Further, she requested that the Police patrol Second Avenue for violators of the speed limit. E. Campbell spoke on the amount of junk cars and other debris throughout the city and asked about provisions for remedying the situation. City Manager stated there was an ordinance which addressed the issue; however, he stressed the need for Council support in order to enforce the Code provisions. Campbell, with Council consent, requested that the Code section be reviewed by the Council at the April 28 meeting. F. Leer asked that the City administration investigate the gray bus which had been seen parked for long periods of time throughout the city during the past few weeks and it appeared that someone was living in the vehicle. G. Hugli referred to the April 11, 1980, letter from Virginia Darling which had been distributed to the Councilmembers that evening. Darling's letter requested that some controls be placed on the long trailers and mobile homes which parked in the 200 block of 4th Avenue during the summer months. She stated the recreational vehicles caused a hazard when they tried to back out of parking spots in the downtown business district. Soriano stated that there had never been an accident in the area because people tended to be extremely cautious in that specific block due to the congestion; no Council action was taken on Darling's request. H. Campbell referred to a March 26, 1980, letter from Homer City Manager Larry Farnen to the Kenai Peninsula Borough Assembly, requesting the Assembly adopt legislation for flood plain insurance. Campbell, with Council consent, requested that a resolution supporting such Borough action be drafted for Council review at the April 28 meeting. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke on various economic development projects for the Seward area. B. Oscar Watsjold appeared from the audience and questioned the City taxation policy of assessing motor vessels in the Seward Small Boat Harbor a personal property fee of only $5 or $15 per year, based on vessel tonnage, rather than the mil rate charged and paid on other personal property within the city. He asked that the Council put the matter to a vote of the citizenry. Hugli, with Council consent, requested that the City Clerk schedule a public hearing on the matter at the next Council meeting. XV. ADJOURNMENT: ~::' adjo~rned at 10:57 p.m. l. c., Ra?,mond \r'. Mayor .----.J ^ HugH' '~ 1~ (City I I " . \, I PAGE 67 REGULAR MEETING - APRIL 28, 1980 VOLUME 1 1. CALL TO ORDER: The April 28, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer, Soriano and Swartz Present also: City Manager Johnson, City Attorney Jarrell, Attorney Kenneth Jacobus, Administrative Assistant Schaefermeyer and City Clerk Shanley PROCLAMATION: At the request of Hugli, City Clerk read in full City of Seward Proclamation declaring Mayas "Cleaner Seward Month" and the Mayor so proclaimed. IV. APPROV AL OF MINUTES: It was moved by Swartz, seconded by Campbell and unanimously carried to approve the regular meeting minutes of April 14, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following agenda item be moved to immediately follow VII. A., due to representatives being present in the audience to answer Council questions on the Report: XIII. Council Discussion: A. "Draft Feasibility Report and Draft Environ- mental Impact Statement - Proposed Small Boat Harbor Navigation Improvement" as compiled by the Corps of Engineers, dated February 29, 1980 Further, City Manager requested that the following item be deleted from the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 2. Proposed Resolution No. 80-21, requesting Kenai Peninsula Borough Assembly action in support of flood plain insurance Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried to approve the regular meeting minutes as amended and the consent calendar as presented and the following actions were taken: 1. CHZM Hill Invoice No. 10101 dated April 15, 1980, in the amount of $2,525.92 for professional services rendered through March 24, 1980, relative to the electrical substation control house, was approved for payment and filed. ELECTRIC DEPT: I VI. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of April 15, 1980, and specifically informed Council and the audience of the meeting scheduled for Monday, May 5, commencing at 7:30 p.m. in the Seward Elementary School, in order for the State Department of Community and Regional Affairs to present and receive public comment on the three options for Borough reapportionment. Campbell further reported that the Borough-wide school budget had been approved and Ordinance No. 80-21, "Amending the Seward Zoning Ordinance to Delete Public Schools as a Conditional Use in Certain Residential Zones", had been enacted. (" I~" PAGE 68 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 VII. PUBLIC HEARINGS: ORIGINAL TOWNSITE: A. Public hearing was opened in order for Council, sitting as the Board of Adjustment, to hear public comment on whether Kenai Peninsula Borough Ordinance No. 74-62, or some other enactment, constitutes the Seward Compre- hensive Plan and whether the action of the Borough Planning Commission with respect to the Conditional Use Permit issued to Daren E. Miller d/b/a Miller Company was consistent with that Plan, if it exists. The following items were noted relative to the "Decision and Order" issued by the superior court in the case Ronnie L. Lewis vs. Board of Adjustment of the City of Seward, Alaska, and Daren E. Miller, d/b/a Miller Co., appealing the City's granting of a Conditional Use Permit to Daren E. Miller for construction of a l6-unit apart- ment complex on Lots 26-30, Block 22, Original Townsite: "Seward City Council Notice of Public Hearing - April 28, 1980" as published two times in the local newspaper and posted April 16, 1980, letter from Hughes, Thorsness, Gantz, Powell & Brundin (City attorneys) to Ely, Guess & Rudd (counsel for Lewis), notifying of scheduled public hearing March 28, 1980, letter from Ely, Guess & Rudd regarding procedure to be followed at the Board of Adjustment hearing February 25, 1980, letter from Hughes, Thorsness, Gantz, Powell & Brundin in response to the February 11, 1980, letter from Ronnie L. Lewis The following items were distributed to Council by Attorney Kenneth Jacobus prior to the meeting: April 27, 1980, letter and attached "Entry of Appearance", "Motion to Dismiss", "Memorandum in Support of Motion to Dismiss", and "Order of Dismissal" as filed by Hughes, Thorsness, Gantz, Powell & Brundin "Memorandum in Support of the Position of the Administration of the City of Seward, Alaska," as prepared by Hughes, Thorsness, Gantz, Powell & Brundin and dated April 1, 1980 December 11, 1978, memorandum from the Kenai Peninsula Borough Planning Department to the Seward Board of Adjustment, regarding the appeal hearing concerning the conditional use permit application of Daren E. Miller Seward City Council regular meeting minutes of December 11, 1978, at which time the Council sat as a Board of Adjustment and, by motion, upheld the Advisory Planning Commission's action supporting issuance of a Conditional Use Permit to Daren E. Miller December 8, 1978, memorandum from Borough Attorney Sarisky to Borough Senior Planner Ottesen, regard- ing the effect of Ordinance No. 74-62 on the Seward Board of Adjustment Appeal in the Miller/Lewis case "Findings of the Kenai Peninsula Borough Planning Commission Regarding the Appeal of Ronnie L. Lewis" dated November 13, 1978 ORIGINAL TOWNSITE: (cont'd) I I I PAGE 69 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 VI1. PUBLIC HEARINGS: (cont'd) Kenai Peninsula Borough Ordinance No. 78-26 dated June 6, 1978 Kenai Peninsula Borough Ordinance No. 74-62 dated December 17, 1974 The following items were distributed to Council by Mary Lewis immediately prior to the meeting: 33-page "Appellant's Brief" in the case before the Superior Court of the State of Alaska of Ronnie L. Lewis v. Board of Adjustment of the City of Seward, Alaska, and Daren E. Miller, d/b/a Miller Company, dated April 26, 1979 December 11, 1978, memorandum from the Kenai Peninsula Borough Planning Department to the Seward Board of Adjustment, regarding the appeal hearing concerning the conditional use permit application of Daren E. Miller December 8, 1978, memorandum from Borough Attorney Sarisky to Borough Senior Planner Ottesen, regarding the effect of Ordinance No. 74-62 on the Seward Board of Adjustment appeal in the Miller/Lewis case "Findings of the Kenai Peninsula Borough Planning Commission Regarding the Appeal of Ronnie L. Lewis" dated November 13, 1978 City Attorney made a brief statement on the background of the dispute, stating that the Council, sitting as a Board of Adjustment, had some months ago granted Miller a conditional use permit for construction of a l6-unit apartment complex on a parcel of land adjacent to property owned by appellant Ronnie Lewis. He stated that one condition set forth in the Seward zoning ordinance provided that prior to issuance of a permit for such construction, the Board had to find that the "proposed use was in harmony with the community plan". He reported that the Board had granted Miller the conditional use permit and that action had been appealed to the Superior Court; pursuant to the "Decision and Order" dated January 23, 1980, the Court had remanded the issue back to the Board of Adjust- ment for clarification of what constituted the City's "community plan". Mary Lewis appeared from the audience and read a prepared state- ment in support of Council finding that Kenai Peninsula Borough Ordinance No. 74-62 represented the City's "community plan" and took precedence over the City's zoning ordinance (Kenai Peninsula Borough Ordinance No. 78-26). She stated that compliance with the Comprehensive Plan as approved by Ordinance No. 74-62 would have precluded Miller's proposed development due to the density limitations for residential districts. Lewis further referred to the November 13, 1978, memor- andum from the Kenai Peninsula Borough Planning Department which stated that Miller had failed to demonstrate his ability to comply with the City of Seward parking standards for the subject development and, therefore, the application for the conditional use permit should have been denied. She stated it was significant that Miller or his representative was not in attendance that evening and questioned whether he intended to continue with the proposed apartment complex. Administrative Assistant reported on the administration's position on the issue, that Kenai Peninsula Borough Ordinance No. 78-26 (the City of Seward Zoning Ordinance) did in fact constitute the "community plan" for the City of Seward and, therefore, the Seward Advisory Planning and Zoning Commission and the Seward City Council, sitting as a Board of Adjustment, were proper in their actions to approve the issuance of the conditional use permit to Miller. Relative to the question of parking requirements, Administrative Assistant stated that parking provisions were handled administratively as a condition to be met prior to issuance of the building permit and were not a factor directly related to the Planning Commission and Board's approval of the conditional use permit. r,il, ORIGINAL TOWNSITE: (cont'd) HARBOR: OCEANVIEW SUB: WATERFRONT TRACTS: PAGE 70 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 VI1. PUBLIC HEARINGS: (cont'd) Ronnie Lewis appeared from the audience and spoke in support of his position on the appeal. No one else appeared from the audience in order to be heard and the public hearing was closed. Hugli, with Council consent, stated that in order to allow Council an opportunity to review in detail the documents presented to the Council just that evening, a decision on the issue would be postponed to a later date. VIII. CITIZENS' DISCUSSION: (Taken out of order by Mayor with Council consent.) A. "Draft Feasibility Report and Draft Environmental Impact Statement - Proposed Small Boat Harbor Navigation Improvement" as compiled by the Corps of Engineers, dated February 29, 1980, was noted. Administrative Assistant introduced from the audience LTC James Fero, Deputy District Engineer, and Carl Borash, Planning and Reports Branch Chief, for the Alaska District Corps of Engineers. He noted that a public hearing on the Report had been held in weeks past but Fero and Borash had returned in order to answer any Council questions on the document. He reported that the Corps' Report had addressed two sites for the proposed expanded boat harbor-- immediately south of the present harbor facility; and at the north-east side of Resurrection Bay, near the end of Nash Road. He reported that due to the prohibition of expending Federal funds on that area of 7th Avenue still designated as a high-risk earthquake zone, the Corps had selected the Nash Road site as the most feasible for the harbor project. In answer to a question from Gillespie, Fero stated that if the project continued as a GI (General Investigation) study, an optimistic starting date would be 1989. However, he reported that if the City elected to assist with additional funding of the project, the harbor expansion could be changed to a Section 107 study (which limited the Federal government to a $2 million maximum expenditure) and construction could commence as early as 1982. He estimated that the additional cost outlay for the City with a Section 107 study would near $.5 million. City Manager stated the administration supported the Section 107 study process and stated a resolution would be prepared for Council consideration at the May 12, 1980, meeting. VI1. PUBLIC HEARINGS: (cont'd) B. Public hearing was opened on the request received by Mike Meehan to trade a portion of his real property described as Lot 5, Block 4, Oceanview Subdivision, for an adjacent parcel owned by the City and the following items were noted: "Seward City Council Notice of Public Hearings - April 28, 1980" as published two times in the local newspaper and posted April 11, 1980, letter and attached vicinity map, submitted by Mike Meehan and setting forth his proposed land swap No one appeared from the audience in order to be heard and the public hearing was closed. City Manager noted that the request would be presented to the Advisory Planning and Zoning Commission at the May 14 regular meeting. Con- current with the Commission's review process, the Council would consider a resolution approving the land transfer at its May 12 regular meeting. C. Public hearing was opened on the proposed two-year lease extension for The North Pacific Rim to lease Tract 2, Seward Waterfront Tracts, and the structure located thereon commonly known as "the old Alaska Railroad carpenter shop", for use as a teen center and the following items were noted. "Seward City Council Notice of Public Hearings - April 28, 1980" as published two times in the local newspaper and posted WATERFRONT TRACTS: (cont'd) I HARBOR: I I PAGE 71 , I I REGULAR MEETING - APRIL 28, 1980 VOLUME 19 VII. PUBLIC HEARINGS: (cont'd) March 20, 1980, letter from The North Pacific Rim, requesting the lease extension "Lease Agreement" dated June 19, 1978, on the subject property for The North Pacific Rim's operation of a teen center No one appeared from the audience in order to be heard and the public hearing was closed. City Manager spoke in support of the teen center operation. It was moved by Campbell, seconded by Soriano and carried as follows to extend the lease of Tract 2 to The North Pacific Rim for a two-year period: Ayes: Noes: Abstain: Absent: Campbell, Cripps, Gillespie, Hugli, Leer and Soriano None Swartz None City Attorney noted that, pursuant to City Code provisions, a resolution approving the lease extension would have to be introduced not sooner than ten days following the public hearing, and the resolution would have to be posted for 30 days before it became effective. He stated the resolution would be presented for Council consideration at the May 12 meeting. D. Public hearing was opened to discuss the taxation of motor vessels located within the City of Seward at the same rate as other items of personal property are taxed, and the following items were noted: "Seward City Council Notice of Public Hearings - April 28, 1980" as published two times in the local newspaper and pos ted April 21, 1980, letter from Robert A. Hood II, Sea Spinner Charters, opposing the collection of personal property tax on vessels April 22, 1980, letter from Mr. and Mrs. W.C. Bumgarner, opposing an increase in taxation on vessels The following items were distributed to Council: April 22, 1980, letter from Anthony C. McCauley, opposing the assessment of personal property tax on boats A graph comparing the prices of keeping a 32 foot boat valued at $50,000 in the harbors of Seldovia, Homer, Whittier, Kodiak, Valdez, Ketchikan and Seward City Manager reported that at the April 14 Council meeting an audience member had questioned the current policy of exempting motor vessels from the personal property tax and, instead, assessing only a set fee of $5 or $15, based on the vessel tonnage; the individual had requested that the policy be put to a vote of the people to determine if there was citizen support for such an exemption. At that time Council had directed that a public hearing be held on the issue. He stated that upon investigating what authority the City had for instituting such an exemption, he had researched the Alaska Statutes and had found that a provision in Title 29 allowed cities, by ordinance, to assess boats at a fee of $5 for vessels under 5 tons and $15 for vessels over 5 tons. He reported that in 1963 the City of Seward had enacted such an ordinance; however, in 1971 when the City ordinances were codified, that specific taxation ordinance had been omitted which, in effect, made all vessels liable for taxes at the personal property tax rate since 1971. Bob Valdatta of Seward appeared from the audience and stated that boat owners were concerned that they would be taxed on their boats twice--in Anchorage and in Seward. Administrative Assistant stated ,._, , "/ 1./ PAGE 72 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 VII. PUBLIC HEARINGS: (cont'd) HARBOR: (cont'd) that the location of an item of personal property on January 1 of each year determined where the taxes were to be paid. Mark Walker of Seward appeared from the audience and stated that he had contacted the Borough Assessor and had been informed that taxes were paid in the area where the personal property was located for a majority of the year. The following individuals appeared from the audience and spoke against the assessment of personal property taxes on vessels moored in the Seward Small Boat Harbor: Jim Woern - Seward Drug Fred Kletka - Commodore of the William H. Seward Yacht Club; Anchorage resident David Gibbons - Mile 23, Moose Pass Eldon Johnson - Seward Paul Briggs - Seward Fayrene Sherritt - Anchorage Ray Parsons - Anchorage Monty Richardson - President of the Seward Boat Owner's Association; Seward resident Jim Clement - Anchorage Donald Oldow - Seward Jean Cripps, Ronnie Lewis and Jerry Virchow, all of Seward, appeared from the audience and questioned the City and Borough taxes on motor vessels. City Manager explained that the Borough assessed a 2 mil personal property tax rate on the vessels and the City charged the $5 or $15 fee; any action by the City regarding taxes would not affect the Borough's tax assessment. He stated the City fee generated a revenue of approximately $1,500 per year. Tom Reese and Oscar Watsjold, both of Seward, appeared from the audience and spoke in support of vessels being assessed at the same tax rate as other personal property. Watsjo1d requested that the matter be placed before the voters in October. Ray Parsons of Anchorage and Buck Ennis of Cooper Landing questioned the legality of taxing a documented vessel. No one else appeared from the audience in order to be heard and the public hearing was closed. Hugli stated the City had received numerous letters and tele- grams from boaters who were threatening to move their boats to Whittier or Homer. He pointed out that Whittier and Homer charged personal property tax and, combined with their moorage fees, the costs of keeping a boat in either of these two harbors was much more than Seward's costs. Gillespie stated that the City of Seward had been subsidizing the harbor operation for numerous years and asked for a report from the City Manager on the matter. City Manager stated that during a ten-year period the City General Fund had subsidized the harbor by approximately $175,000. He stated that at the present time the Harbor Enterprise Fund owed the City General Fund approximately $125,000. VII1. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: HARBOR/ ORD: 1. Copies being made available to the public, Hugli noted by title only proposed ordinance establishing a special valuation for boats relative to personal property tax assessment, entitled: An Ordinance Regarding the Assessment of Personal Property Within the City of Seward, Creating Article III of Chapter 19A, Sec. 19A-39 of the Seward City Code HARBOR/ ORD: (cont'd) I HARBOR/ RES: SEWAGE IRES: POLICE: I ., PAGE 73 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 IX. (cont'd) ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: (cont'd) City Manager noted that the ordinance was presented for introduction only and, if introduced, a public hearing would be held prior to a vote for enact- ment. It was moved by Soriano, seconded by Swartz and unanimously carried to introduce proposed Ordinance No. 485. The public hearing was scheduled for the regular Council meeting of June 9, 1980. RECESS: The meeting was recessed at 9:01 p.m.; reconvened at 9:10 p.m. COUNCILMEMBER SORIANO departed the meeting at this time. B. Ordinances for Public Hearing and Enactment: None C. Resolu tions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution setting fees for the Harbor, entitled: A Resolution Setting Fees for the Seward Municipal Small Boat Harbor, Amending Section 1 of Resolution No. 77-36 City Manager reported that the proposed resolution would increase the moorage rates by $2 per foot per year and increase the daily transient and City dock rates for vessels in excess of 84 feet in length. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-20, with an effective date of July 1, 1980. TRTMT/ 2. Copies being made available to the public and distributed to Council, Hugli noted by title only proposed resolution accepting the State grant fo~ Step III of the sewage treatment project, in the amount of $847,190, entitled: A Resolution Accepting the Alaska State Grant in Connection With the Step III Sewerage Treatment Project April 17, 1980, letter and attachments from the State Department of Environmental Conservation to City Manager Johnson, notifying of the State grant offer, was noted. Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-21. X. UNFINISHED BUSINESS: None XL NEW BUSINESS: None XII. CITY MANAGER REPORTS: A. A portion of the City Council meeting minutes of November 5, 1979, at which time Council authorized the City Manager "to expend $1,200 for a new fence and negotiate a contract with a private individual for the operation and maintenance of (a City) impound lot", was noted. City Manager stated a one-year contract had been drafted which WQuld authorize Ron Devereaux, the operator of the only licensed wrecker service in the area, to operate the City impound lot, with $ .50 per day to be remitted to the City for every vehicle kept in the lot. Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried by all those present to authorize the City Manager to enter into a lease agreement with Ron Devereaux for the period of one year for operation of the City impound lot. i,~ PAGE 74 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) C ATTORNEY/ BAYV IEW ADDN: B. April 16, 1980, "Claim for Damages" in the amount of $286.32 as submitted by Wolfgang Mikat for damages allegedly caused to his fence by a City snow plow, was noted. City Manager stated that the fence in question was located on the property line running parallel to a 20-foot wide alley which was used as a main street by residents in the area. He stated the alley needed to be cleared of snow in the wintertime and it was extremely difficult for the City crews to remove the snow when fences and cars were located directly adjacent to the alley. Gillespie stated a person had the right to place a fence on his property line and spoke in favor of the City paying the claim contingent upon Mr. Mikat signing an agreement that the fence would not be relocated such that the problem could reoccur. Swartz questioned the timeliness of the claim, citing that the damage had occurred during December or January and the claim had not been submitted until April 16. Following discussion, it was moved by Campbell, seconded by Cripps but failed as follows to honor Wolfgang Mikat's claim for $286.32: Ayes: Noes: Absent: None Campbell, Cripps, Gillespie, Hugli, Leer and Swartz Soriano It was moved by Gillespie, seconded by Cripps but did not carry as follows to allow the City Manager to negotiate a settlement with Wolfgang Mikat for the damage to the fence with the stipulation that the liability or the situation would not happen again: Ayes: Noes: Absent: Cripps, Gillespie and Leer Campbell, Hug1i and Swartz Soriano PURCHASING AGENT: C. City Manager distributed a price comparison for tires as bid by Marathon Fuel Service, Terry's Chevron and Western Auto. He stated that although Western Auto had submitted the lowest bid at $1,219.36, there was a three-week waiting period for the tires. Therefore, he recommended Council approval of the bid as received from Terry's Chevron in the amount of $1,251.18 for the 22 tires needed by May 1. It was moved by Gillespie, seconded by Leer and unanimously carried by all those present to accept the bid of Terry's Chevron in the amount of $1,251.18. D. City Manager reported on the meeting held the previous week with Chugach Electric Association General Manager Bud Schultz. He stated the City had reached an agreement with Chugach for the purchase of firm wholesale power and a contract would be presented for Council review at the May 12 meeting. E. City Manager reported that representatives of VECO would be arr1v1ng Friday for a meeting regarding the proposed shipyard to be located at the 4th of July Creek area. F. City Manager requested Council schedule a work session to be held prior to the May 12 regular meeting in order to discuss the proposed City budget for fiscal year 1980-81 and the Board of Adjustment review of the Miller/Lewis case. Hugli, with Council consent, scheduled a study session for Thursday, May 8, 1980, commencing at 7:00 p.m. XII 1. COUNCIL DISCUSSION: A. City Code Chapter l8A "Public Nuisances" was noted. Campbell stated the mechanism was present for removing the junked cars and debris strewn throughout the City. He stated the administration would have to be supported in its judgmental decisions on what was junk and, with Council consent, he stated the City Council supported the efforts of the administra- tion in pursuing the cleaning up of the City by enforcement of the pro- visions of Chapter l8A of the City Code. HARBOR: I I I PAGE 75 REGULAR MEETING - APRIL 28, 1980 VOLUME 19 XII1. (cont'd) COUNCIL DISCUSSION: B. Connie Bencardino appeared from the audience and gave a verbal report on the Harbor Commission activities. The Harbor Commission meeting minutes of April 23, 1980, were noted. Following discussion, Campbell requested the City Attorney draft an ordinance to dissolve the Harbor Commission. He stated that since the Harbor was now operated as an enterprise fund--as were the water and electrical utility for which there was no advisory board--he felt there was no function necessarily served by the Commission. Bencardino agreed with Campbell in that there was no need for the Harbor Commission. C. Swartz requested that in enforcing the public nuisance ordinance the administration also investigate the feasibility of requiring absentee owners to keep vacant lots clear of debris and hazardous conditions. D. Swartz requested more Police patrols on the residential streets to assist in the control of speeding drivers. E. and Madison. blocking the Leer spoke on the auto body shop located on the corner of 4th She stated cars were parked allover the lot and were almost alley. City Manager stated he would look into the matter. F. C~ipps reported that he had attended a partisan political meeting in Anchorage the previous weekend and there appeared to be a significant group of Seward residents involved in the ''Moral Maj ority". He stated the group was well-organized and an effective entity throughout Alaska. He stated that only about 30 percent of the registered voters within the City had turned out for the past municipal election and, with this low percentage of participation, a group such as the ''Moral Majority" could feasibly control local politics within a period of two years. He stated that if this were to happen local politics could be expected to change drastically. Cripps commented that although he was not judging whether this possibility was good or bad, he felt the local citizenry should be aware of the situation. XIV. CITIZENS' DISCUSSION: A. Herman Leirer appeared from the audience and spoke on the junk strewn throughout the City. He stated the City should dispose of the old cradles stored in the harbor area and, spoke in support of citations being issued for littering. B. Bob Valdatta appeared from the audience and spoke on a Federal program which granted monies for junked vehicles. Further, he spoke on the City seeking removal of the high-risk earthquake designation on the 7th Avenue area. Valdatta requested an hourly wage and the use of City equipment to clean up the City park and cemetery. C. Ronnie Lewis appeared from the audience and questioned why the Board of Adjustment had not made a decision that evening on his appeal. Hugli stated that the Councilmembers had received additional information from the attorney just prior to the meeting which they had not had the opportunity to review. City Clerk commented that Mrs. Lewis had also handed her a packet of information at 7:15 p.m. which she requested the Council review prior to a decision being made on the issue. D. Les Dooley appeared from the audience and asked questions relative to the Board of Adjustment hearing held earlier. Further, he spoke against the Council's decision not to pay Wolfgang Mikat for the damage done to his fence. XV. ADJOURNMENT: adjourned at 10:30 p.m. dl/d!f-~ Ray a L. Hugli .' ~ Mayor '. y". 'V <s)'~i~'~~... " ',' ,'?-4r c.,.; ..... "I.' E OF p\~. ,.:...-", :0,.,:,. ... ~.' , -'VD;r:-..,..."~-, I 7f; PAGE 76 REGULAR MEETING - MAY 12, 1980 VOLUME 19 1. CALL TO ORDER: The May 12, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Cripps, Gillespie and Soriano (Absent, with Council consent, were Campbell, Leer and Swartz) Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley PROC: PROCLAMATIONS: At the request of the Mayor, the City Clerk read in full the following proclamations: "Poppy Day" - May 24, 1980 "Opening Day - 1980 Sailing Season" - May 17, 1980 IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to approve the regular meeting minutes of April 28, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following changes be made to the regular meeting agenda: IX. Ordinances and Resolutions: A. Ordinances for Introduction: 1. DELETE proposed Ordinance No. 486 regarding derelict and abandoned vessels in the Seward Small Boat Harbor area C. Resolutions: 4. ADD proposed Resolution No. 80-25 regarding the 1979-80 budget City Manager requested the following addition be made to the consent calendar: 6. Bill from Raymond Burgess, Alaska Land Surveys, in the amount of $950 for surveying - Approve for payment and file Hugli requested that the following item be deleted from the regular meeting agenda in order to allow the Councilmembers an opportunity to discuss the matter in an executive or work session prior to action: X. Unfinished Business: A. City Council, sitting as a Board of Adjustment, ruling on what constitutes the City's Compre- hensive Plan and if the Borough Planning Commis- sion's action relative to the conditional use permit requested by Daren Miller was consistent with that Plan PAGE 77 V. , ' REGULAR MEETING - MAY 12, 1980 VOLUME 19 APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) Following discussion, Hugli, with Council consent, scheduled a Council work session for Monday, May 19, 1980, commencing at Noon, in order to discuss the matter before the Board of Adjustment. Following discussion, it was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: I COMPTROLLER: BUDGET: ELECTRIC: C ATTORNEY: I FIRE DEPT/ ORIGINAL TOWNSITE: V1. 1. Comptroller's list of Accounts Payable for April 1980, totaling $541,959.37, was approved for payment and filed. 2. April 28, 1980, bill from Price Waterhouse and Company in the amount of $3,107.30, for fiscal year 1979-80 auditing services, was approved for payment and filed. 3. CH2M Hill Invoice No. 10093 dated April 15, 1980, in the amount of $423.54 for services rendered October 25-31, 1979, relative to the Seward Electric Department, was approved for payment and filed. 4. April 25, 1980, bill fron Cranston, Walters, Dahl and Jarrell for legal services rendered during March 1980, totaling $4,884.65. was approved for payment and filed. 5. Letter received April 30, 1980, from Douglass Downes concerning the effect of the City dump station on the purity of Resurrection Bay, was presented for information only. 6. May 7, 1980, bill from Raymond Burgess, Alaska Land Surveys, in the amount of $950 for the survey of the exterior boundary of Lots 25-33, Block 16, Original Townsite, was approved for payment and filed. BOROUGH ASSEMBLY REPORT: None VII. PUBLIC HEARINGS: BUDGET: A. Public hearing was opened on the proposed use of approximately $79,522 in Federal revenue sharing funds anticipated to be received by the City during fiscal year 1980-81; and notice of the scheduled hearing, as published two times in the local newspaper and posted, was noted. No one appeared from the audience in order to be heard and the public hearing was closed. VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Major Watts of the 8l3th Engineer Battalion (U.S. Army Reserve) appeared from the audience and spoke and answered questions on tentative plans to establish a reserve detachment in Seward. Following discussion, Hugli, with Council consent, stated the City would assist with the establishment of a detachment in Seward if the plan became a reality. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: I HARBOR/ ORDS: title only entitled: 1. Copies being made available to the public, Hugli noted by proposed ordinance aboliShing the Seward Advisory Harbor Commission, An Ordinance Abolishing the Seward Harbor Commission and Repealing Sections 5-3 and 5-4 of the Seward City Code It was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to introduce proposed Ordinance No. 486, with the public hearing scheduled for June 9, 1980. HARBOR/ RES: WATERFRONT RES: OCEANVIEW RES: BUDGET/ RES: '/ r. PAGE 78 REGULAR MEETING - MAY 12, 1980 VOLUME 19 x. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution supporting the Corps of Engineers' proceeding with a Detailed Project Report (Section 107 Study) for the proposed construction of an expanded harbor facility, entitled: A Resolution of the Common Council of the City of Seward, Alaska, Hereby Giving Certain Assurances to the Department of the Army, Corps of Engineers, in Connection With the Proposed Construction Improvements to the Seward Harbor Extension City Manager reported that the resolution supported the conversion of the harbor study from a General Investigation Study to a Section 107 Study, representing an expedited project schedule for the harbor construction. It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-22. TRACTS/ 2. Copies being made available to the public, Hugli noted title only proposed resolution approving a two-year lease with The North Pacific Rim for operation on a teen center on Tract 2, Seward Waterfront Tracts, entitled: by Resolution of the City Council of the City of Seward, Alaska, Providing for the Disposition of City Owned Land by Negotiation City Attorney spoke on the resolution and lease agreement, confirming that the only change in the initial agreement signed in 1978 was that the required insurance was increased from $200,000 to $400,000. It was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-23. SUB/ 3. Copies being made available to the public, title only proposed resolution approving an exchange of land Subdivision between the City and Mike Meehan, entitled: Hugli noted by in the Oceanview A Resolution Approving a Land Exchange of City Property for a Parcel Owned by Mike Meehan in the Vicinity of Lot 5, Block 4, Oceanview Subdivision, and Authorizing the City Manager to Negotiate the Exchange It was moved by Cripps, seconded by Gillespie and unanimously carried by all those present to approve Resolution No. 80-~4, upon the approval of the Planning and Zoning Commission. 4. Copies being distributed to Council and made available to the public, Hugli noted by title only proposed resolution regarding the fiscal year 1979-80 budget, entitled: A Resolution Appropriating Monies From the General Fund Balance to the 1979- 80 Budget City Manager spoke and answered questions on the resolution appropriating $117,765 in general fund monies to various departments in order to allow the purchase of some equipment and other items during the current budget year. Following discussion, it was moved by Soriano, seconded by Cripps and unani- mously carried by all those present to approve Resolution No. 80-25. PAGE 79 REGULAR MEETING - MAY 12, 1980 VOLUME 19 X. UNFINISHED BUSINESS: HARBOR A. Harbormaster Singleton's memo of May 1, 1980, to City Manager Johnson relative to the numerous telegrams received by the City in protest to the assessment of personal property tax on motor vessels, was noted for information only. XL NEW BUSINESS: WATERFRONT TRACTS: A. May 2, 1980, letter from Margaret Anderson, Seward Marine I Services Inc., requesting a permanent easement to be filed with U.S. Survey No. 1806 in exchange for a sewer and road easement across the subject property (Anderson Dock), was noted. City Manager stated that the Anderson Dock was encroaching onto City tidelands; however, the encroachment had existed prior to the City receiving the tideland rights from the State. He reported that many attemps had been made in the past to resolve the issue. He spoke in support of Council action granting Anderson a permanent easement in exchange for the City's receipt of the necessary easements to cross Anderson's property for the sewage treatment plant to be located at Lowell Point. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to instruct the administration to draft both exchanges of easements. I City Manager further reported that Anderson was interested in leasing that portion of City-owned Tract A, Seward Waterfront Tracts, which was located directly north of the dock, containing approximately 2.549 acres. Anderson appeared from the audience and stated she wished to utilize the land for parking and storage space. Gillespie stated that considering the limited amount of waterfront land available, he would like to see any lease of such land to contain a requirement for development of the parcel. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present that the administration enter into a lease agreement with Seward Marine Services for Tract A, Seward Waterfront Tracts. City Attorney noted that with any conveyance of public land the City Code specifically required a public hearing, followed by a ten-day waiting period, followed by approval of a resolution, and then another waiting period of 30 days. Hugli, with Council consent, directed the City Clerk to schedule the necessary hearing for the next regular Council meeting (May 27, 1980). MARINA SUB: B. The following items were noted relative to a requested lease assignment and sub-lease on City-owned Lot 2, Block 1, Marina Subdivision: "Commercial Site Lease of Uplands" dated February 24, 1969, for Lot 2, Block 1, Marina Subdivision January 31, 1980, letter from City Clerk to present lessees of the subject property--Daniel and Ruth Smi th "Contract for Assignment of Lease and Sale of Business" dated September 1, 1979, between the Smiths and Pete Minio relative to a portion of the subject property I May 8, 1980, letter from legal counsel Helen Simpson, representing the Smiths, requesting Council approval of a lease assignment from Smith to Dale and Joan Clemens The following letter was distributed to Council: May 9, 1980, letter from Dale and Joan Clemens, requesting Council approval of a sub-lease of "The Galley" to Minio kn PAGE 80 REGULAR MEETING - MAY 12, 1980 VOLUME 19 XL NEW BUSINESS: (cont'd) MARINA SUB: (cont'd) City Attorney and Raymond Gillespie (legal counsel for Pete Minio) appeared and spoke on the requested lease assignment from Smith to Clemens and a sub- lease of "The Galley" from Clemens to Minio. Administrative Assistant noted that the City lease agreements required Council approval of any lease assign- ment or sub-lease. He reported that the contract between Smith and Minio which had been referenced had never been approved by the Council. In answer to a question, Dale Clemens appeared from the audience and stated he would be the party responsible for paying the yearly rental fees due the City. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present that the City consent to the transfer of the lease from Smith to Clemens. It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to approve the sub-lease from Clemens to Minio for that portion of Lot 2, Block 1, Marina Subdivision better known as "The Galley". SISTER CITY: C. April 30, 1980, letter from Northern Regions Center, requesting arrangements be made for a group of Japanese youth arriving in Seward on July 26, 1980, for a camping trip, was noted. Hugli requested the administration contact Messrs. Bob Richardson and Brent Whitmore and request that they make the necessary arrangments for the Japanese group. BUDGET: D. The draft City of Seward budget for fiscal year 1980-81 was noted and City Manager spoke and answered Council questions on the document. He confirmed that with the approval of Resolution No. 80-22, the draft budget would have to be amended to remove those items to be purchased this year. agreement wholesale future. E. City Manager stated the administration was reviewing a draft between the City and Chugach Electric Assocation for the supply of power and the contract would be presented to Council in the near RECESS: The meeting was recessed at 9:03 p.m.; reconvened at 9:15 p.m. XII. CITY MANAGER REPORTS: A. May 8, 1980, news release entitled "New Seward Shipyard to Become a Reality", was noted. SEWARD FISH: B. April 23, 1980, notice from New England Fish Company regarding Chapter 11 bankruptcy proceedings, was noted. Donald Hansen, Plant Manager of the local Seward Fisheries operation, appeared from the audience and stated the court had allowed Icicle Seafoods to maintain management of the corporation and the local Seward Fisheries plant would not be adversely affected by the proceedings. LOC ORGS: C. Letter (undated) received from Pamela Oldow, requesting Council financial assistance for a promotional advertising campaign as proposed by Murray, Bradley and Rockey, Inc., was distributed and read in full by the City Manager. Raymond Gillespie, President of the Chamber of Commerce, appeared from the audience and spoke in support of Council donating $1 for every $3 raised from local merchants to broadcast a promotional "jingle" to be played on Anchorage radio stations. A tape recording of the commercial was played for Council and the audience. Following discussion, it was moved by Hugli, seconded by Cripps and unanimously carried by all those present to approve not more than $5,000 from the Mayor's contingency fund for the project. PKS & REC: D. Letter (undated) from Robert Valdatta, submitting an unsolicited bid for maintenance of the grounds at the cemetery, Benson Memorial and the City dock park, at $15 per hour or $2,500 per month, was distributed and read in full by the City Manager. Following discussion, Hugli, with Council consent, directed the City Manager to draft guidelines for City grounds maintenance and to request bids for the services. PURCHASING/ STREET DEPT: I PURCHAS ING / ELECTRIC DEPT: '... \ , ~ j, PAGE 81 REGULAR MEETING - MAY 12, 1980 VOLUME 19 XI1. (cont'd) CITY MANAGER REPORTS: E. City Manager spoke on bids received for two radios with vehicle mounts as needed by the Street Department. He recommended that Council accept the low bid of Land and Marine for the two radios, with the purchase of only one vehicle mount, at a cost of $2,203.45. Following discussion, it was moved by Soriano, seconded by Gillespie and unanimously carried by all those present to authorize the City Manager to accept the bid of $2203.45 for the two radios, with some modifications. F. City Manager stated he had been contacted by a representative of Alaska Fisheries Corporation regarding the feasibility of establishing a smoked fish plant in Seward. He asked for permission to negotiate with the company for a Seward location for the plan~ there were no objections voiced by Council. G. City Manager stated the Electric Department was in need of a backhoe and spoke on bids received from various vendors. He recommended the purchase of a Case 480C with 370 hours, available from Yukon Equipment at $23,900 plus cab costs of $4,500. It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to give the City Manager the authority to purchase a backhoe, not to exceed $28,400. PKS & REC: H. City Manager requested approval to purchase chain-link fencing at $660, forms for a retaining wall at $1,000, and cement at $250, totalling $1910, in order to fix up the small ball field; it was so moved by Soriano, seconded by Cripps and unanimously carried by all those present. ELECTRIC DEPT: 1. City Manager requested approval to enter into a contract with the engineering firm of CH2M Hill for an amount not to exceed $30,000 for the relocation of power lines necessary as a part of the electric substation project; it was so moved by Soriano, seconded by Gillespie and unanimously carried by all those present. I J. Administrative Assistant spoke on monies received from the State of Alaska, Department of Environmental Conservation, for the Seward Water System Improvements project. He stated that the City had been advanced $1,868 in excess of the approved amount for the project and DEC was requesting a refund. It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to refund $1,868 to DEC. K. City Manager requested Council approval to take a ten-day leave beginning May 14; there were no objections voiced by Council. XIII. COUNCIL DISCUSSION: A. Harbor Commission report - None ELECTRIC DEPT: B. "Feasibility Assessment - Hydropower Development at Grant Lake" as prepared by CH2M Hill and dated April 1980, was noted. K P B: C. "Situation and Prospects - Kenai Peninsula Borough" dated January 1980, was noted. SP COM EVENTS: D. Letter received May 7, 1980, from the Chamber of Commerce regarding the 4th of July parade was noted. I E. City Manager, with Council consent, recommended the rescheduling of the second regular Council meeting in May from Monday, May 26 (a City holiday), to Tuesday, May 27. F. Cripps stated if there were no liability problems the Lions Club would undertake the project of cleaning up the two City tot lots; City Attorney confirmed there were no liability problems. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. ~~ !. PAGE 82 REGULAR MEETING - MAY 12, 1980 VOLUME 19 XV. ADJOURNMENT: was adjourned at 10:00 p.m. ~/~ L lu' ~1ffion . Hugli Mayor PAGE 82 REGULAR MEETING - MAY 27, 1980 VOLUME 19 1. CALL TO ORDER: The May 27, 1980, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hug1i. "Notice of Amended Meeting Date" as posted and published two times in the local newspaper, notifying of the rescheduling of the May 26 meeting date to May 27 due to the observance of the Memorial Day holiday, was noted. 11. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. IlL ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer and *Soriano (Absent, with Council consent, was Swartz) Present also: City Manager Johnson, City Attorney Jarrell, Admin- istrative Assistant Schaefermeyer and City Clerk Shanley PROCLAMATION: "City of Seward Proclamation - Pioneer King and Queen Regent Day - June 7, 1980", declaring said date as Herman and Winifred Leirer Day, was distributed and the Mayor so proclaimed. IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Leer and unanimously carried by all those present to approve the regular meeting minutes of May 12, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Clerk requested that the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 2. Proposed Resolution No. 80-27 regarding Resurrection River Road construction PAGE 83 REGULAR MEETING - MAY 27, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) XII. City Manager Reports: A. May 23, 1980, letter from Ronald Henderlong, requesting permission to operate a fresh produce stand during the summer months on private property near the Seward Small Boat Harbor I Hugli requested that the following item be added to the regular meeting agenda: XIII. Council Discussion: A. City legal services City Clerk requested that the following additions be made to the consent calendar: 4. May 20, 1980, bill from May Contracting Inc., for services rendered relative to the court case Engineering Science of Alaska vs. City of Seward, totaling $850 - approve for payment and file 5. "Application for Permit for Authorized Games of Chance and Skill for Calendar Year 1980" as sub- mitted by Elks Lodge #1773 - approve for Mayor's signature It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: I 1. Notice that Senator Ted Stevens' mobile office would be arriving in Seward on May 28, 1980, was noted for information only. C ATTORNEY: 2. May 12, 1980, letter from James R. Filip, submitting claim for testifying at Engineering Science of Alaska vs. City of Seward trial, totaling $843.65, was approved for payment and filed. C ATTORNEY: 3. May 13, 1980, bill from Trans-Alaska Engineering for services rendered by Dick Lowman at the Engineering Science of Alaska vs. City of Seward trial, totaling $752.50, was approved for payment and filed. C ATTORNEY: 4. May 20, 1980, bill from May Contracting Inc., for services rendered relative to the court case Engineering Science of Alaska vs. City of Seward, totaling $850, was approved for payment and filed. LOC ORGS: 5. "Application for Permit for Authorized Games of Chance and Skill for Calendar Year 1980" as submitted by Elks Lodge #1773, was approved for the Mayor's signature. I V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting held May 6, 1980. h;: PAGE 84 REGULAR MEETING - MAY 27, 1980 VOLUME 19 VI1. PUBLIC HEARINGS: BUDGET: A. Public hearing was opened on the proposed City of Seward budget for fiscal year 1980-81 and the "Notice of Public Hearings" as posted and published in the local newspaper, was noted. No one appeared from the audience in order to be heard and the public hearing was closed. City Manager spoke briefly on the second draft of the budget, stating that the budget had increased $59,563 over the previous year. Gillespie stated that although he supported the job done by the Police Department, he felt a limit had to be set on how much the City was willing to spend for police service; he commented that a $600,000 police budget out of a total City budget of $2 million seemed too high. In answer to a question from Hugli, City Manager stated that approximately half of the Police Department budget was funded by monies obtained from Federal and State government sources and he would compile exact figures on that funding for the next Council meeting. He reported that the Police budget had increased by approximately 10 percent--a large portion of that increase was due to rising liability insurance premiums. In answer to a question from Gillespie regarding television service, City Manager reported that the administration proposed to spend no more on television than what the City received in revenues from the $4 per month charge added to the City utility bills. Following discussion, City Manager informed Council that another public hearing on the budget was scheduled for the Council meeting of June 9. He requested the Councilmembers give him advance notice if any changes were to be made in the budget draft. WATERFRONT TRACTS: B. Public hearing was opened on the request received from Seward Marine Services Inc., to lease City-owned Tract A, Seward Waterfront Tracts, lying directly north of the existing Anderson Dock and consisting of approximately 2.549 acres, and the following items were noted: "Seward City Council Notice of Public Hearing - May 27, 1980", as posted and published one time in the local newspaper May 2, 1980, letter from Margaret Anderson, Seward Marine Services Inc., requesting approval of a long-term lease for the subject tract No one appeared from the audience in order to be heard and the public hearing was closed. Gillespie reiterated his position as voiced at the May 12 meeting, stating that any lease of the waterfront property should contain a development schedule for improvement of the tract. Hugli, with Council consent, agreed with Gillespie and stated that any lease document would contain such a provision. VIII. CITIZENS' DISCUSSION: A. Administrative Assistant introduced audience members Susan Dietz and John DeVore from Senator Ted Stevens' office. Deitz and DeVore had arrived in Seward with the Senator's mobile office and DeVore stated that the office would be open the following day for local citizens to talk with the staff members. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: HARBOR/ ORDS: 1. Copies being made available to the public and distributed to Council, Hugli noted by title only proposed ordinance regarding abandoned and derelict vessels, entitled: An Ordinance Relating to Derelict Vessels Gillespie questioned the handling of documented vessels. City Attorney reported that the ordinance was similar to the State regulations and the State had apparently not met with major problems in enforcing the law, even when enforce- ment involved a documented vessel. City Attorney also reported that the ordinance addressed derelict equipment such as cradles. HARBOR/ ORDS: (eont'd) I SCHOOLS/ RES: I STREETS, RES: I PAGE 85 REGULAR MEETING - MAY 27, 1980 VOLUME 19 1,1 IX. ORDINANCES AND RESOLUTIONS: (cont'd) A. Ordinances for Introduction: (cont'd) *COUNCIlMEMBER SORIANO DEPARTED THE MEETING AT 8: 00 P.M. Following'discussion, it was moved by Cripps, seconded by Leer and unanimously carried by all those present to introduce Ordinance No. 487; a public hearing was scheduled for the Council meeting of June 23. ELECTRIC/ 2. Copies being made available to the public, Hugli noted by ORDS: title only proposed ordinance regarding the filing of liens for delinquent utility charges, entitled: An Ordinance Relating to City Utility Charges and Creating a New Section 9-10 of the Seward City Code City Manager and City Attorney spoke on the need for such an ordinance in order to provide the City some recourse against large utility customers who go out of business and leave a substantial electrical bill unpaid. City Attorney confirmed that the ordinance addressed all customers of the Seward utilities, including those outside the City limits. Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried by all those present to introduce proposed Ordinance No. 488; a public hearing was scheduled for the Council meeting of June 23. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only proposed resolution supporting the year-round use of the public schools' recreational facilitIes, entitled: A Resolution Supporting Year-Round Use of the Seward Public Schools' Recreational Facilities Gillespie stated he had asked the Clerk to draft the resolution due to information he had received from the community schools director that although the swimming pool would be open during the summer months, it was anticipated that the gymnasiums and racquetball court would be closed. Campbell stated the community schools' budget had been increased the previous year specifically for the purpose of providing the funds necessary to maintain the recreational facilities throughout the entire year. Following discussion, it was moved by Gillespie, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-26. RDS, HWYS/ 2. Copies being made available to the public and distributed to Council, Hugli noted by title only proposed resolution regarding Resurrection River Road construction and maintenance, entitled: A Resolution Supporting a Proposed Cooperative Agreement Relative to the Resurrection River Road City Manager stated the Chamber of Commerce had adopted a similar resolution and had requested the City to do the same. Administrative Assistant spoke on the history of the City's involvement and investment in the road. He reported that the cooperative agreement as cited in the resolution would commit the City to supporting the project of the road construction and maintenance in principal and relinquishing any and all management responsibilities for the road. Follow- ing discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 80-27. ~j~: f~ PAGE 86 REGULAR MEETING - MAY 27, 1980 VOLUME 19 x. UNFINISHED BUSINESS: FIRE DEPT: A. The proposed "Mutual Aid Agreement" between the City of Seward and the Bear Creek Fire Service Area was noted. Following discussion, City Manager requested that any action on the item be postponed until Fire Chief Watsjold returned from vacation in order that a report could be received from him on the agreement. With Council consent, City Manager stated the proposed agreement would be scheduled for discussion at the July 14 Council meeting. CLIFF ADDN: CLIFF ADDN/ STREETS: TRANSIENT MERCHANTS: PERSONAL PROPERTY: XL NEW BUSINESS: A. May 18, 1980, letter from Andy and Sharon Anderson requesting to purchase City-owned Lot 4, Block 9, Cliff Addition, for $5,000 was noted. City Manager stated that if Council wished to consider selling the lot the City Code required that an appraisal of the property be conducted and a public hearing be held prior to the approval of a resolution which would provide for the Anderson's purchase of the City parcel. Hugli, with Council consent, directed the City Manager to proceed with the necessary process to dispose of the City parcel. B. The following items were noted relative to the March 3, 1980, petition as filed by Mr. and Mrs. Stanley Kerka and Elsie and Norman Sundby for the ~cation of a portion of the 60-foot right-of-way known as Cliff Street: A portion of the Seward Advisory Planning and Zoning Commission meeting minutes of May 14, 1980, at which time the Commission recommended Council approval of the petition April 30, 1980, letter from Borough Planning Director Waring, notifying the City Council of the 30-day time period (from April 28) in which to veto the proposed vacation Vicinity map Draft minutes of the April 28, 1980, Borough Plat Committee meeting, at which time the Committee acted to conditionally approve the requested vacation March 3, 1980, petition from the Kerkas and Sundbys, adjacent landowners to the requested vacation. Administrative Assistant confirmed that the local Planning and Zoning Commission had recommended Council approve the requested vacation and stated the administra- tion also supported such action. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve the vacation as requested by the Kerkas and Sundbys. XII. CITY MANAGER REPORTS: A. May 23, 1980, letter from Ronald Henderlong, requesting permission to operate a fresh produce stand during the summer months on private property near the Seward Small Boat Harbor was noted. City Manager stated the ordinance regulating transient merchants and vendors allowed an exemption for the operation of such a fresh produce stand and stated the administration supported the proposal. It was moved by Campbell, seconded by Leer and unanimously carried by all those - present to grant Henderlong's request for a permit to operate his produce business this summer on private property. B. City Manager displayed a brochure for a mobile asphalt recycling machine at a cost of $9,700 delivered to Seward and requested approval to purchase the equipment with monies from the 1979-80 fiscal year budget. Following discussion, it was moved by Cripps, seconded by Gillespie and unanimously carried by all those present to purchase the asphalt recycling device at $9,700. -', l PAGE 87 REGULAR MEETING - MAY 27, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: C ATTORNEY: I I I A. Hugli reported that the current City Attorney would be leaving the law firm of Cranston, Walters, Dahl & Jarrell and opening a private office. He stated that Council, as the employer of the attorney, needed to take action to either remain with the current firm or reappoint Ranald Jarrell. It was moved by Gillespie, seconded by Campbell and unanimously carried by all those present that, effective June 1, to dismiss the City's present firm and retain Ranald H. Jarrell as City Attorney for a trial period of six months. B. In answer to an inquiry from Leer, City Manager stated the sewer project bid opening was scheduled for June 13. C. In answer to a question from Cripps, City Clerk stated she had omitted the Lewis appeal from the meeting agenda due to the uncertainty of three Counci1members' attendance at the meeting. She confirmed she had so informed Mr. and Mrs. Lewis of the postponement and that the issue would be scheduled as an agenda item for the Council meeting of June 9. D. In answer to a question from Campbell, City Manager stated the administration was proceeding with the enforcement of the nuisance ordinance and a publication would be made to notify the public of the intent to strictly enforce the ordinance. E. Administrative Assistant responded to a question from Campbell regarding State Revenue Sharing funds and the payment of the deficiency for the 1979-80 fiscal year by stating that the City was anticipating the receipt of an additional $20,000 to $25,000. F. Gillespie questioned the status of House Bill 60 which contained funds for the 4th of July Creek industrial park area access road and project funds for the public facility to be construction at the site. City Manager reported on the monies appropriated in the bill for Seward's proposed develop- ment and stated that the Governor had until June 2 to veto the bill. G. Hugli requested the City Manager prepare a report for the next Council meeting regarding the status of the bid for television operation and maintenance. XIV. CITIZENS' DISCUSSION: A. Willard Dunham appeared from the audience and, as a member of the Seward Advisory Harbor Commission, spoke against the Council's action introducing an ordinance to abolish the Commission. He also spoke on Senator Gravel's visit to Seward and on correspondence he had received regarding transfer of ownership of the railroad spur in the Small Boat Harbor area from The Alaska Railroad to the City of Seward. B. Pat Williams appeared from the audience and spoke against the City disposing of Lot 4, Block 9, Cliff Addition, for the price of $5,000 as offered by the Andersons (see XI. A., page 86). She stated the City owned three adjacent lots on top of the hill and considered it a perfect location for a City park. She urged Council to review the matter thoroughly and receive a valid fair market value appraisal on the property prior to selling the lot. XV. ADJOURNMENT: The meeting was adjourned at 8:55 p.m. -<~ // / ~ /' / V) Raymo L. Hug Ii Mayor {"~' ( \( '\ PAGE 88 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 1. CALL TO ORDER: The June 9, 1980, regular meeting of the Seward City Council was called to order at 7:31 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, *Gillespie, Leer, Soriano and Swartz Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Cripps, seconded by Campbell and unanimously carried by all those present to approve the regular meeting minutes of May 27, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: At the request of the City Manager, it was moved by Cripps, seconded by Leer and unanimously carried by all those present to recess to executive session to discuss personnel matters immediately following approval of the consent calendar and regular meeting agenda. The following additions were requested to be made to the consent calendar: 5. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1980 as submitted by the Seward Rebekah Lodge - approve for Mayor's signature 6. CH2M Hill Invoice No. 10126 dated May 15, 1980, in the amount of $11,767.50 for professional services rendered relative to the Grant Lake hydroelectric project - approve for payment and file 7. CH2M Hill Invoice No. 10132 dated May 15, 1980, in the amount of $12,933.83 for professional services rendered relative to the Seward Salmon Derby facilities plan, part of the 7th Avenue greenbelt feasibility and design project - approve for payment and file 8. Trans-Alaska Engineering invoice dated May 19, 1980, in the amount of $1,500 for the sewage treatment facility design audit - approve for payment and file 9. Wells-Built Homes Inc. Invoice No. 1316 dated June 1, 1980, in the amount of $44,645 for the Seward Electric System improvements project (substation) - approve for payment and file 10. Wells-Built Homes Inc. Change Order #1 dated June 5, 1980, in the amount of $5,257.18, for the Seward Electric System improvements project (substation) - approve for payment and file PAGE 89 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont' d) The following additions were requested to be made to the regular meeting agenda: IX. Ordinances and Resolutions: B. Ordinances for Public Hearing and Enactment: I 3. Proposed emergency Ordinance No. 487 regarding the operations of transient merchants and vendors on special holidays C. Resolutions: 6. Proposed Resolution No. 80-33 establishing special holiday dates for the purpose of exemptli)g transient merchants and vendors from the provisions of the transient merchant ordinance during the July 4 activities 7. Proposed Resolution No. 80-34 regarding the application for required licenses for the Grant Lake hydroelectric project XII. City Manager Reports: C. Letter received June 9, 1980, from Doris Mitchell, d/b/a "Dorothy's Lounge", regarding a proposed addition to the liquor establishment I Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: COMPTROLLER: 1. List of Accounts Payable for May 1980, totaling $538,723.35, was approved for payment and filed. ABC B: 2. May 22, 1980, letter from the Alcoholic Beverage Control Board, noticing of transfer of Breeze Inn liquor license from Mindenbergs and Weeks to Mindenbergs, was noted and filed without objection. SISTER CITY: 3. Council approved for the Mayor's signature letters to Mayor Tamoto of Obihiro, Japan, and the Japanese Consulate, notifying of the City selection of David Kasser, Michael Kothe and Brett Woern to participate in the summer student cultural exchange program. ELECTRIC: 4. CH2M Hill final billing for the Seward Electric System design project, received June 4, 1980, and totaling $17,457.83, was approved for payment and filed. AK, ST OF: 5. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1980 as sub- mitted by the Seward Rebekah Lodge was approved for the Mayor's signature. I ELECTRIC: 6. CH2M Hill Invoice No. 10126 dated May 15, 1980, in the amount of $11,767.50 for professional services rendered relative to the Grant Lake hydroelectric project was app~oved for payment and filed. PKS & REC: 7. CH2M Hill Invoice No. 10132 dated May 15, 1980, in the amount of $12,933.83 for professional services rendered relative to the Seward Salmon Derby facili- ties plan--funded as a portion of the 7th Avenue greenbelt feasibility and design study--was approved for payment and filed. 'ji i SEWAGE TRTMT: ELECTRIC: ELECTRIC: BUDGET: HARBOR: PAGE 90 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 8. Trans-Alaska Engineering invoice dated May 19, 1980, in the amount of $1,500 for the sewage treatment facility design audit was approved for payment and filed. 9. Wells-Built Homes Inc. Invoice No. 1316 dated June 1, 1980, in the amount of $44,645 for the Seward Electric System improvements project (substation) was approved for payment and filed. 10. Wells-Built Homes Inc. Change Order No. 1 dated June 5, 1980, in the amount of $5,257.18 for the Seward Electric System improvements project (substation) was approved for payment and filed. *COUNCILMEMBER GILLESPIE ARRIVED AT THIS TIME AND HEREAFTER TOOK PART IN THE MEETING. EXECUTIVE SESSION: Council recessed for an executive session regarding personnel from 7:38 p.m. to 7:50 p.m. V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of June 3, 1980. VI1. PUBLIC HEARINGS: A. Public hearing was opened on the City of Seward budget for fiscal year 1980-81, and "Notice of Public Hearing" as posted and published two times in the local newspaper was noted. City Manager distributed the third draft of the budget. He also distributed and read in full his budget letter to the Mayor and Councilmembers dated June 9, 1980, which set forth a recommended mil rate of 12.5 for TCA 40 and 7.5 for TCA 41. The recommended draft contained a general fund budget of $2,180.058 and a total City budget-- including the electric, water, sewer and harbor enterprise funds--of $4,273.210. No one appeared from the audience in order to be heard and the public hearing was closed. In reply to a question posed by Hugli at the May 27 Council meeting, City Manager reported that of a total Police Department budget of $649,000, $251,687 was derived from sources outside the City including, but not limited to, revenue sharing monies, State contracts for drivers' education and the jail facility, fines and bails and a security contract with The Alaska Railroad. (see also IX. C. 5. Resolution No. 80-32, page 93) VII 1. CITIZENS' DISCUSSION: (With prior notice only) A. Yvon Van Driessche, P.O. Box 601, Seward, appeared from the audience and related an incident which took place in the Small Boat Harbor and involved his vessel. He stated his boat had been seized by the U.S. Marshall and the Marshall had ordered that his vessel be taken out of the water and placed in dry storage. Prior to the lifting of the vessel, Van Driessche had asked that his boat be placed in the working yand in order that he could proceed with major repair work. The boat was subsequently removed from the water; however, it was not placed in the working yard. When Van Driessche began sandblasting he was informed by the Harbormaster that such major repair work could not be done in the area of dry storage where his boat had been placed. The Harbormaster informed him that his boat would have to be moved to the working yard, and a lift fee of $76.50 would be charged for the move. Van Driessche contended that since he had initially requested his boat be placed in the working yard, it was unfair that he be charged for the second lift of his vessel just because the Harbor- master had failed to honor his request. He stated he had presented his complaint to the Harbormaster and the City Manager but had not received a favorable response; therefore, he had come before Council with his appeal. City Manager spoke on the incident and reported that the U.S. Marshall had paid for the initial lift of the vessel and Van Driessche was not paying for more than one boat lift. Following discussion, Soriano, with Council consent, stated that the charge levied Van Driessche was a fair one and the Council would not move to reverse the administration's action. WATERFRONT TRACTS: I PAGE 91 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 VII1. CITIZENS' DISCUSSION: (cont'd) B. Gillespie requested that Council receive public questions and comments at this time regarding the International Longshoremen and Warehousemen's Union (ILWU) and the 4th Avenue Dock operations. Bob Valdatta appeared from the audience and questioned who controlled the dock facility. City Manager responded that until January 1, 1980, Northern Stevedoring and Handling Corporation (NSHC) had held a Dock License Agreement with the City for operation of the City dock facility; that agreement had expired in January and the Council had acted not to renew the contract. He commented that the only restrictions the City placed on use of the facility was that users not interfere with the Alaska State Ferry System's preferential use of the dock and, further, that users pay the appropriate moorage and wharfage fees as levied by the City. Valdatta spoke in support of the City contracting with a private party for operation of the dock facility. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: COMPTROLLER/ 1. Copies being made available to the public, Hugli noted by f~BOR/ title only proposed ordinance establishing a special valuation for boats ORDS: relative to personal property tax assessment, entitled: I HARBOR/ ORDS: I An Ordinance Regarding the Assessment of Personal Property Within the City of Seward, Creating Article III of Chapter 19A, Sec. 19A-39 of the Seward City Code "Notice of Public Hearing" as posted and published three times in the local newspaper was noted. Public hearing was opened on the subject ordinance. Brent Whitmore and Jim Pruitt appeared from the audience and spoke in support of the ordinance. Leslie Dooley appeared and spoke in support of levying the full personal property tax mil rate on boats and thereby lowering the tax burden for all Seward residents. Willard Dunham appeared and questioned the tax equity of exempting commercial enterprises such as charter boats from the personal property tax. In response, City Manager cited Alaska Statutes 29.53.025 which provided for the exemption for motor vessels. No one else appeared from the audience in order to be heard and the public hearing was closed. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried to enact Ordinance No. 485, effective in 30 days. 2. Copies being made available to the public, Hugli noted by title only proposed ordinance abolishing the Seward Advisory Harbor Commission, entitled: An Ordinance Abolishing the Seward Harbor Commission and Repealing Sections 5-3 and 5-4 of the Seward City Code "Notice of Public Hearing" as posted and published two times in the local newspaper was noted. June 5, 1980, letter received from Harbor Commission Chairman Willard Dunham, objecting to the ordinance and submitting his resigna- tion from the Commission, was distributed. Public hearing was opened on the subject ordinance. Bob Valdatta, Bernard Hulm and Harbor Commissioners Willard Dunham and Monty Richardson appeared from the audience and spoke against the ordinance. Campbell spoke on the reasons which had led him to introduce the ordinance, citing a main issue as the confusion of the Commissioners regarding their duties and purpose, and their apparent lack of acceptance of the fact that they were to serve in an advisory, not supervisory, capacity. He cited various occasions where the Commissioners had acted as individuals rather than as a member of the group. Hugli spoke on the recurring issues being discussed by the Commission, even following Council action in opposition to a particular Commission recommendation. Following discussion, it was moved by Gillespie, seconded by Campbell and carried as follows to enact Ordinance No. 486: Ayes: Noes: Absent: Campbell, Gillespie, Hugli, Soriano and Swartz Cripps and Leer None (.l' ,1.', TRANSIENT MERCHANTS/ SP COM EVENTS/ ORDS: PAGE 92 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 IX. (cont'd) ORDINANCES AND RESOLUTIONS: B. Ordinances for Public Hearing and Enactment: (cont'd) 3. Copies being made available to the public and distributed to Council, Hugli read by title only proposed emergency ordinance regarding the operations of transient merchants on special holidays, entitled: An Ordinance Relating to Temporary Holiday Businesses and Creating a New Section 16-10 of the Seward City Code City Manager stated the ordinance would permit the Council to allow the Chamber of Commerce to coordinate all transient merchant and vendor operations on special holidays such as the 4th of July and Salmon Derby, thereby exempting the merchants on those occasions from having to comply with the provisions of the transient merchant ordinance. He confirmed that the o~dinance was intro- duced as an emergency measure in order for its provisions to be in effect in time for the upcoming 4th of July activities. Public hearing was opened on the emergency ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. City Attorney noted the Council would have to determine the fee the Chamber of Commerce would be allowed to charge each merchant for insertion in the ordinance. Following discussion, it was moved by Hugli, seconded by Soriano and unanimously carried to enact emergency Ordinance No. 487 with the fee set at $25. C. Resolutions: AK RAILROAD / RES: title only entitled: 1. Copies being made available to the public, Hugli noted by proposed resolution regarding a custom bonded warehouse in Seward, C CLERK/ RES: WATERFRONT TRACTS/ RES: Establishing a Custom Bonded Warehouse in Seward May 29, 1980, letter from A.T. Polanchek, Assistant to the General Manager of The Alaska Railroad, was noted, in which the Railroad offered to provide a railroad car to be located inside the Railroad warehouse in Seward, at a charge of $30 per month, for the City to use initially as a custom bonded warehouse. City Manager spoke and answered questions on the proposed resolution and Railroad letter, stating that once the need for the warehouse expanded, the operation would be transferred to private enterprise. He stated the resolution addressed the first step necessary in order to allow foreign shippers to bring items into the Port of Seward with no duty being charged on the items stored in the warehouse until they were removed there- from. Soriano stated the idea and come from Bob Valdatta and he thanked Valdatta for bringing this matter to the City's attention. Following discussion, it was moved by Swartz, seconded by Campbell and unanimouSly carried to approve Resolution No. 80-28. 2. Copies being made available to the public, Hugli noted by title only proposed resolution regarding a City records retention schedule, entitled: A Resolution Creating a City Records Retention Schedule City Clerk commented that the retention schedule as attached to the resolution was taken directly from that schedule recommended by the Alaska Association of Municipal Clerks. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried to approve Resolution No. 80-29. 3. Copies being made available to the public, Hugli noted by title only proposed resolution providing for the lease of Tract A, a portion of Alaska Tidelands Survey No. 174 and located adjacent to the Seward Water- front Tracts, to Margaret Anderson d/b/a Seward Marine Services Inc., entitled: A Resolution Providing for the Disposal of City-owned Tidelands by Lease and Authorizing the City Manager to Negotiate the Lease _ 'J PAGE 93 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) WATERFRONTCity Attorney noted that the proposed Lease Agreement as attached and made a TRACTS/ part of the proposed resolution did not contain a full development schedule as RES: requested by Council in order for Council to discuss the matter and complete (cont'd) that portion of the draft lease. City Manager further commented that an appraisal had not yet been received on the fair market value of the property; therefore, I the rental rate had not been established in the document. It was noted that the resolution, if approved, would not become effective until 30 days following approval, posting and publication; during that waiting period the additional information could be gathered and transmitted to Council. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried to approve Resolution No. 80-30. WATERFRONT TRACTS/ DEEDS & EASEMENTS/ RES: 4. Copies being made available to the public, Hugli noted by title only proposed resolution providing Seward Marine Services with an easement across a portion of City land adjacent to the Anderson Dock, in exchange for the City's receipt of a sewer line easement across Anderson's property, entitled: A Resolution Providing for an Easement Across a Portion of City-owned Land to Seward Marine Services, Inc. I In answer to a question from Gillespie, Administrative Assistant stated that although the legal descriptions of the easements were not yet in the draft documents, the information could be inserted at a later date. City Manager reported that the easement to be granted Margaret Anderson d/b/a Seward Marine Services Inc., was for a portion of City-owned tidelands onto which the Anderson Dock had been encroaching for a number of years. In exchange, the City was to receive a sewer easement across Anderson's property as necessary for the sewage treatment plant to be constructed at Lowell Point. City Attorney remarked that during the 30-day period prior to the resolution becoming effective the additional information could be compiled and presented to Council. Following discussion, it was moved by Cripps, seconded by Leer and unanimously carried to approve Resolution No. 80-31. BUDGET/ RES: 5. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution adopting the City budget for fiscal year 1980-81, entitled: A Resolution Adopting the City Budget and Appropriating Funds for Fiscal Year 1980-81 It was noted that the public hearing on the budget had been held earlier in the evening (see VII. A., page 90). It was moved by Hugli, seconded by Soriano and unanimously carried to approve Resolution No. 80-32, setting the mil rate at 12.5 for TCA 40 and 7.5 for TCA 41, and assessing motor vessels at the rate of $5 for those less than 5 net registered or certified tons and at the rate of $15 for those vessels of more than 5 net registered or certified tons. TRANSIENT 6. Copies being made available to the public and distributed to MERCHANTS/ Council, Hugli read by title only proposed resolution exempting transient SPEC merchants and vendors from provisions of the City transient merchant ordinance I COM during the 4th of July activities, entitled: EVENTS/ RES: A Resolution In Compliance With Section 16-10 of the Seward City Code, Designating the Hours for a Special Exemption Holiday It was noted that the proposed resolution was required by emergency Ordinance No. 487 as enacted earlier in the evening (see IX. B. 3., page 92). City Manager recommended that the hours to be designated by the resolution for the 4th of July activities be set from Noon on July 3, 1980, until 6 P.M. on July 6, 1980. It was moved by Soriano, seconded by Swartz and unanimously carried to approve Resolution No. 80-33. q4 PAGE 94 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) ELECTRIC/ RES: 7. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution regarding the Grant Lake hydroelectric project, entitled: A Resolution Requesting the Alaska Power Authority (APA) to Proceed With the Federal Energy Regulatory Commission (FERC) Application Process for a License to Construct and Operate the Grant Lake Hydroelectric Project City Manager stated that although funds were not yet assured from the Legislature for the licensing process, the City wished to be ready to proceed with the project if and as soon as the funds were made available. It was moved by Soriano, seconded by Swartz and unanimously carried to approve Resolution No. 80-34. RECESS: The meeting was recessed at 9:37 p.m.; reconvened at 9:47 p.m. X. UNFINISHED BUSINESS: ORIG INAL TOWNSITE: A. The following items were noted relative to Ronnie L. Lewis vs. Board of Adjustment of the City of Seward, Alaska, and Daren E. Miller, d/b/a Miller Company; specifically, as ordered by Superior Court Judge Rowland, the Council, sitting as a Board of Adjustment, consideration of "whether {Kenai Peninsula Borough} Ordinance No. 74-62 or some other enactment constitutes the Seward comprehensive plan, and whether the action of the Borough Planning Commission {with respect to the conditional use permit issued to Daren E. Miller, d/b/a Miller Company} is consistent with that plan, if it exists": "Memorandum in Support of the Position of the Administration of the City of Seward, Alaska" dated April 28, 1980, and signed by City legal counsel Kenneth P. Jacobus "Decision and Order" dated January 23, 1980, from Superior Court Judge Mark C. Rowland "Appellant's Brief" in the Superior Court for the State of Alaska as filed on April 26, 1979, by Lewis' legal counsel John Foster Seward City Council meeting minutes of December 11, 1978, at which time a public hearing was held by the Council, sitting as a Board of Adjustment, on the appeal as filed by Daren E. Miller and the City of Seward of the Kenai Peninsula Borough Planning Commission's action to deny the conditional use permit for construction of a l6-unit apartment complex on Lots 26-30, Block 22, Original Townsite December 11, 1978, memorandum from Kenai Peninsula Borough Planning Department to Seward Board of Adjustment regarding the appeal hearing concerning the conditional use permit application of Daren E. Miller December 8, 1978, memorandum from Kenai Peninsula Borough Attorney Andrew Sarisky to Borough Senior Planner Jeff Ottesen regarding the effect of Ordinance No. 74-62 on the Seward Board of Adjustment appeal ORIGINAL TOWNSITE: (cont'd) I I I PAGE 95 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 (ll' , J x. UNFINISHED BUSINESS: (cont'd) "Finding of the Kenai Peninsula Borough Planning Commission Regarding the Appeal of Ronnie L. Lewis" dated November 13, 1978, and signed by Commission Chairman Jim Jacobs Kenai Peninsula Borough Ordinance No. 78-26, "An Ordinance Revising the Zoning Code for that Area Within the Municipal Boundaries of the City of Seward", dated June 6, 1978 Kenai Peninsula Borough Ordinance No. 74-62, "An Ordinance Adopting and Modifying the Various Comprehensive Plans of the Cities and Areas of the Kenai Peninsula Borough", dated December 17, 1974 City Attorney summarized the discussion which had taken place at the City Council work session held May 19, 1980. He commented that the Council had been directed by the Court to consider two questions: 1) What is the Seward comprehensive plan? and 2) Was the Kenai Peninsula Borough Planning Commission's denial of Miller's application for a conditional use permit consistent with that plan? He stated appellant Lewis contended that the Seward comprehensive plan consisted of Kenai Peninsula Borough Ordinance No. 74-62 only. He continued by stating that another interpretation on the composition of the City's comprehensive plan was that it consisted of Ordinance No. 74-62 and a later revision of the ordinance by the enactment of Kenai Peninsula Borough Ordinance No. 78-26 (City of Seward zoning ordinance) . Gillespie stated that the Seward comprehensive plan in fact as well as in practice consisted of Ordinance No. 78-26 in conjunction with Ordinance No. 74-62. He commented that the Seward zoning ordinance had been the City's guideline for planning and development and, therefore, had to be cited in any definition of the City's comprehensive plan. Cripps disagreed, stating that the zoning ordinance specifically referred to a "comprehensive plan" and thus could not in itself be that pLan. Campbell replied that the Board should consider the legislative process which prevailed--the City had the common practice of referring to the zoning ordinance when questiornregarding development plans arose because the zoning ordinance was considered as the updated, current version of the overall comprehensive plan for the City. He remarked that planning documents cannot be static volumes of paper but need to be constantly changing with the growth of the community. Cripps referred to the density of the proposed Miller project as well as City parking requirements for such a development; he stated that based on these two factors the conditional use permit had been improperly issued. Gillespie stated that if the first question posed by the Court (What is the City comprehensive plan?) was answered with the reply that the plan consisted of Ordinance No. 74-62 as amended by Ordinance No. 78-26, then Miller's conditional use permit was consistentwith that plan; he stated such was his opinion on the issue. Administrative Assistant remarked that the parking requirements for the Miller development were a part of the building permit issuance procedure and not an issue to be considered as a part of the conditional use permit application. Further, he confirmed that Miller's l6-unit development was consistent with the density requirements established in Ordinance No. 78-26. Following discussion, it was moved by Gillespie, seconded by Campbell and carried as follows that the City take the stand that the compre- hensive plan for the City included two portions--the Borough Ordinance No. 74-62 and the City zoning ordinance (Borough Ordinance No. 78-26)--as the entire comprehensive plan: Ayes: Noes: Absent: Campbell, Gillespie, Hugli, Leer, Soriano and Swartz Cripps None q {~ , \. PAGE 96 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 XL NEW BUSINESS: PKS & REC/ A. May 9, 1980, report from CH2M Hill on the Silver Salmon Derby SP COM Facility Plan, was noted. City Manager confirmed the report was presented for EVENTS: Council information and had been funded with grant monies remaining after completion of the 7th Avenue greenbelt feasibility study. He stated the facility as outlined in the report had an estimated construction cost of $75,000 to $90,000. XI1. CITY MANAGER REPORTS: 4TH OF CREEK AREA: JULY A. May 29, 1980, letter from Dow Chemical U.S.A. regarding location of a petrochemical facility and LPG terminal at the 4th of July Creek industrial park area was noted. City Manager reported that representatives of Dow had arrived in Seward the previous week and the City administration had taken them on a tour of the 4th of July Creek site. TELEVISION: B. City Manager stated the administration had not yet requested bids for the Channel 2 television translator maintenance and operation. He stated City personnel would be on Mt. Wolcott the coming week in order to investigate the state of disrepair of the translator and control house. He reported that the earth station was now being broadcast over Channel 3 as required by the Federal Communications Commission and a temporary permit for such had been received from the Commission. ABC B: C. City Manager distributed letter received June 9, 1980, from Doris Mitchell regarding her intent to fence in an area adjacent to Dorothy's Lounge for use an an outdoor game area where alcoholic beverages would be sold. CEMETERY: D. City Manager reported that in response to Council direction he had advertised for bids for the maintenance of the cemetery for the period June 10 through September 1, 1980. Two proposals had been received: 1) a fee of $15,000 and 2) a fee of $15 per hour with a minimum of $2,500 per month. City Manager reques ted Council approval to accep t the low bid of $15 per hour with a minimum of $2,500 per month, with the authority to negotiate with the bidder a more specifically defined scope of work. Garry LeFlore appeared from the audience and stated that Bob Va1datta, with LeFlore's assistance, had submitted the $15,000 bid. He commented that Valdatta had done a lot of work in the cemetery area without requesting remuneration. LeFlore spoke in support of Council accepting his bid. Soriano stated the Council had requested sealed bids for the work and the low bid should be accepted. In answer to a question from Swartz, City Manager reported that Leslie Dooley had submitted the low bid. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried to authorize the City Manager to accept the bid but to clarify the boundaries of what is to be done in the cemetery. E. City Manager reported he had been contacted by Ron Garzini of the Mayor's staff for the Municipality of Anchorage regarding a meeting to discuss a free trade zone designation for the City of Seward. He confirmed that the overture for the meeting had come from the Anchorage staff and he considered this a good sign that the Municipality of Anchorage was willing to cooperate with Seward in this regard. He stated a meeting date had not yet been established but he.- urged the Councilmembers' attendance. F. City Manager reported that representatives of VECO would be arrlvlng in Seward on Thursday, June 12, in order to discuss the 4th of July Creek industrial park area lease. G. City Manager distributed the statements of qualifications as received from 16 engineering firms in response to the City's request for proposals for the development of an industrial center at the 4th of July Creek area. He suggested that Council schedule a work session in order to review the statements and to consider the scope of development which a final proposal should encompass. He reported on various monies which were expected to be made available for the project. Following discussion, Hugli, with Council consent, scheduled a Council work session for Thursday, June 12, commencing at 7 P.M. PAGE 97 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: SCHOOLS: A. May 30, 1980, letter from Seward High School Principal Dale Sandahl regarding City Council Resolution No. 80-26,"A Resolution Supporting Year-Round Use of the Seward Public Schools' Recreational Facilities" was noted. Campbell stated he would contact the Borough Superintendent of Schools and do whatever he could to assure that the school facilities would be made available to the public during the summer months in years to come. 4TH OF JULY B. May 6, 1980, letter from Erik Norgaard regarding the 4th of I CREEKJuly Creek industrial park development, and submitting invoice in the amount AREA:of $4,050, was noted. City Manager stated the City of Seward had never entered into a contract--verbal or written--with Norgaard and it was the City's understanding that during dealings and consultation with Norgaard he had been in the employ of Burmeister/Wain. AK, ST OF: C. May 15, 1980, letter from the Office of the Governor regarding the Van Gilder Hotel historical nomination, was noted. City Manager stated the City administration had no objection to the classification of the hotel as a historical site. Gillespie requested that the legal description of the property be checked because it appeared to also include the parcel on which the First National Bank of Anchorage was located. D. Swartz referred to a TIME magazine article regarding waste oil furnaces and stated the City might investigate the use of such furnaces for the City shop and harbormaster building. E. Swartz reported that the out-buildings located at First Lake had been tipped over and the pits were exposed. City Manager stated he would have the situation corrected. F. Campbell spoke in support of the City offering free energy audits to the Seward Electric Utility customers. I G. Soriano requested some wire netting be placed along the step railings at the north entrance to City Hall in order to alleviate the danger of small children falling off the steps. H. Soriano spoke on the need for the Police Department to better patrol and control the speeding and noise of the dirt bike riders along the 7th Avenue greenbelt. I. Cripps stated that visitors from cities without a port were not aware of the purpose of the Seward Harbormaster's building and he spoke in support of a sign being placed on the outside of the building, calling people's attention to the shower, telephone and restroom services available inside. XIV. CITIZENS' DISCUSSION: A. Brent Whitmore appeared from the audience and spoke on the summer student exchange program and various other groups expected to arrive in Seward this summer from Seward's Sister City of Obihiro, Japan. He thanked Council for its continued support of the student exchange program. B. Bob Valdatta appeared from the audience and commented on the use of waste oil furnaces, stating that the M/V Tustumena disposed of 4,000 gallons of waste oil a month which he believed the City could have for the asking. I C. Bernard Hulm appeared from the audience and stated that although the City mil rate had been lowered for the coming fiscal year, the assessed valuation had risen; therefore, the net effect was still an increase in taxes. D. Willard Dunham appeared from the audience and stated that although he did not always agree with City Manager Johnson, he felt he had done a lot for the City of Seward and the public should show Johnson some well-deserved respec t. ~ t ~.:~ PAGE 98 REGULAR MEETING - JUNE 9, 1980 VOLUME 19 XV. ADJOURNMENT: adjourned at 10:52 p.m. '7 ! t1- .' i.~ (~ ' CRaymo'J;j L. Hugli Mayor . 'J .j .' ~'.r 'J '.I"" _ \ l:..0'" "f ,"I"fi.t'-' ------------- ----------------------------------------------------------------- PAGE 98 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 1. CALL TO ORDER: The June 23, 1980, regular meeting of the Seward City Council was called to order at 7:31 p.m. by Mayor Hugli. 11. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. IlL ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer and Swartz (Absent was Council- member Soriano) Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROV AL OF MINUTES: It was moved by Gillespie, seconded by Leer and unanimously carried by all those present to approve the regular meeting minutes of June 9, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the consent calendar: 2. June 11, 1980, letter from U.S. Senator Ted Stevens 4. Bill received June 23, 1980, from Rana1d H. Jarrell for legal services rendered during April 1980, totaling $4,356.80 - approve for payment and file 5. Wells-Built Homes Inc. Invoice No. 1321 dated June 16, 1980, for services performed relative to the Electric Utility substation, and City Engineer's memo dated June 23, 1980, recommending payment of $22,525.60 - approve for payment and file City Manager requested the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 4. Proposed Resolution No. 80-38 accepting a grant on behalf of the Seward General Hospital PAGE 99 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 5. Proposed Resolution No. 80-39 regarding the Grant Lake hydroelectric project FERC license 6. Proposed Resolution No. 80-40 regarding an easement to be granted to Seward Marine Services across a portion of City property I XI. New Business: A. Sewage treatment facility project bids Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: ABC B: 1. Alcoholic Beverage Control Board letter of June 11, 1980, regarding the appointment of a hearing officer for the City's protest of the liquor license renewal for the Flamingo Lounge, was noted for information and filed. STREETS, RDS, HWYS: 2. The following letters regarding Resurrection River Road reconstruction were noted for information and filed: June 9, 1980, letter from U.S. Congressman Don Young June 11, 1980, letter from U.S. Senator Ted Stevens June 16, 1980, letter from U.S. Forest Service Regional Forester Sandor June 17, 1980, letter from U.S. Park Service Alaska Director Cook I C ATTORNEY: 3. June 13, 1980, bill from Ranald H. Jarrell for legal services rendered in Mc>y 1980, totaling $4,155.00, was approved for payment and filed. C ATTORNEY: 4. Bill received June 23, 1980, from Ranald H. Jarrell for legal services rendered during April 1980, totaling $4,356.80, was approved for payment and filed. ELECTRIC: 5. Wells-Built Homes Inc. Invoice No. 1321 dated June 16, 1980, for services performed relative to the Electric Utility substation, and City Engineer Small's memo dated June 23, 1980, recommending payment of $22,525.60, was approved for payment and filed. V1. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of June 17, 1980. WATERFRONT VII. TRACTS: PUBLIC HEARINGS: I A. Public hearing was opened on the proposed lease of City-owned Tracts 3 and 4, Seward Waterfront Tracts, to Northern Stevedoring and Handling Corporation (NSHC), and the following items were noted: "Notice of Public Hearing' on subject as posted and published two times in the local newspaper Draft proposed Lease between the City and NSHC, extending to December 31, 1999, and at a rental rate of $24,000 per year 1)0 WATERFRONT TRACTS: (cont'd) WATERFRONT TRACTS: WATERFRONT TRACTS: HARBOR/ ORDS: PAGE 100 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 VII. PUBLIC HEARINGS: (cont'd) Lease dated June 11, 1970, between the City and NSHC, at a rental rate of $2,400 per year No one appeared from the audience in order to be heard and the public hearing was closed. City Manager stated the draft lease as presented was a modification of the earlier agreement dated June 11, 1970. In answer to a question from Campbell, City Manager stated that if the Lease was approved, the document would be dated January 1, 1980, but the increased rental rate would be applied on a pro rata basis, effective as of the date of execution of the agreement. It was noted that a resolution approving the Lease would be presented for Council considera- tion at the July 14 meeting. VII1. CITIZENS' DISCUSSION: (With prior notice only) A. Kathleen Putman, Director of the Seward Teen Center located on Tract 2, Seward Waterfront Tracts, appeared from the audience and gave a verbal report on the hours and activities taking place at the center during the summer months. Putman distributed sketches of proposed Tlingit Indian designs to be painted on the front of the building; she requested Council approval of the sketches and no Council objection was voiced. B. Margie Anderson appeared from the audience and spoke in support of the City Council directing a letter to the new Director of Parks in Alaska, supporting development of the Caines Head Recreational Area, located south of Seward. Gillespie stated he had heard that monies had been allocated by the State for development of the recreational area; City Manager stated he would investigate the matter. C. June 17, 1980, letter from the International Longshoremen's & Warehousemen's Union (ILWU) Local 60, regarding management and operation of the 4th Avenue Dock, was noted. ILWU Local 60 President William Caldwell and Secretary James MacSwain appeared from the audience and spoke in support of the Council allowing Northern Stevedoring and Handling Corporation (NSHC) to operate the dock facility, thereby continuing the ILWU jurisdiction on commercial cargo crossing the dock. MacSwain distributed a copy of "Letter of Understanding Between the City of Homer and the In1andboatmen's Union" dated August 23, 1978, and referred to as "Exhibit A" in the June 17 letter. He stated that the City administration's current position of neutrality on the dock operations had caused the longshoremen to loose their jobs. Melvin Deck and Lewis Hasty, ILWU pensioners, appeared from the audience and spoke in support of the ILWU having jurisdiction over the City-owned 4th Avenue Dock. It was noted that the Dock License Agreement between the City and NSHC, which had the effect of giving the ILWU jurisdiction on the dock, had expired in December of 1979. Referring to a recommendation made in the Ad Hoc Committee report and the lack of revenue received from the dock operations, the City Council had acted to deny a renewal of the Dock License Agreement for 1980. Hugli stated that the Council would have a work session on the subject within the next few weeks. City Manager reported that he was drafting a tariff for the dock which would be presented for Council review at that work session. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: 1. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding derelict and abandoned vessels and equipment, entitled: An Ordinance Relating to Derelict Vessels HARBOR/ ORDS: (cont'd) I I I PAGE 101 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) "Notice of Public Hearing" on the subject ordinance as posted and published two times in the local newspaper, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. In answer to a question from Gillespie, City Attorney stated that the enforceability of the ordinance was not affected by a vessel's documentation. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to enact Ordinance No. 488. ELECTRIC/ ORDS:only proposed entitled: 2. Copies being made available to the public, Hugli noted by title ordinance regarding the filing of liens for unpaid utility charges, An Ordinance Relating to City Utility Charges and Creating a New Section 9-10 of the Seward City Code "Notice of Public Hearing" on the subject ordinance as posted and published two times in the local newspaper, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. Leer, Hugli and Swartz spoke against the landlord having to bear the cost of bad debts incurred by tenants. City Attorney stated that the Council had to make the decision of whether the landlords or the City was going to have to pay the bill for debtors. Gillespie stated a viable alternative to the filing of a lien might be to increase the deposit required prior to the City providing utilities to an individual. Campbell stated the administration might consider citing a dollar amount in the ordinance if it wished to enforce it selectively for only large past-due accounts. Following discussion, the ordinance died for lack of a motion. C. Resolutions: BUDGET/ 1. Copies being made available to the public, Hug1i noted by title RES: only proposed resolution revising the City budget for fiscal year 1979-80, entitled: A Resolution Amending the 1979-80 Fiscal Year Budget by Transferring Appropria- tions Within Said Budget It was moved by Leer, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-35. COMPT/ RES: only proposed entitled: 2. Copies being made available to the public, Hugli noted by title resolution charging off certain uncollectible utility accounts, A Resolution Charging Off Uncollectible Certain Utility Accounts Totaling $18,646.36 Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-36. HARBOR/ KPB/ only proposed RES: areas outside 3. Copies being made available to the public, Hugli noted by title resolution supporting Borough port and harbor authority for those city limits, entitled: A Resolution of the City of Seward, Alaska, Recommending the Acquisition of Kenai Pen- insula Borough Powers Essential for the Provision and Operation of Ports and Harbors, Wharves and Other Marine Facili- ties in the Borough Outside Cities City Manager and Campbell stated approval of the resolution represented action which was in the best interests of the City, as well as the Borough, and such action would facilitate joint planning efforts for coastal areas within the Borough. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-37. , ,\) . I 'J HOSPITAL! RES: ELECTRIC/ RES: WATERFRONT TRACTS/ EASEMENTS/ RES: SEWAGE TRTMT: PAGE 102 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) 4. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution accepting a matching grant in the amount of $140,000 from the State of Alaska for Seward General Hospital improvements, entitled: A Resolution Accepting the Alaska State Grant for General Repairs and Renovation of Seward General Hospital It was moved by Gillespie, seconded by Leer and carried as follows to approve Resolution No. 80-38: Ayes: Noes: Abstain: Absent: Cripps, Gillespie, Hugli, Leer and Swartz None Campbell Soriano 5. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution regarding the Grant Lake hydroelectric project, entitled: A Resolution Requesting the State of Alaska to Approve a Grant to the Alaska Power Authority to Fund the FERC License of Grant Lake/Seward City Manager recommended approval of the resolution, stating he had been informed that State funds of $.5 million had been allocated, pending the Governor's approval, for APA funding of the FERC license process for Grant Lake. It was moved by Leer, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 80-39. 6. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution providing an easement to Seward Marine Services (Anderson Dock) across a portion of City-owned land, entitled: A Resolution Providing for an Easement Across a Portion of City-owned Land to Seward Marine Services Inc., and Res- cinding Resolution No. 80-31 City Manager stated that Resolution No. 80-31 and the attached easement, as approved by Council on June 9, 1980, had contained an error in the easement description; he reported the proposed resolution would correct that error. Following discussion, it was moved by Campbell, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-40. X. UNFINISHED BUSINESS: None XL NEW BUSINESS: A. Dave Williams of Arctic Environmental Engineers, the City's engineers for the sewage treatment facility project, appeared from the audience and gave the results of the bids as opened June 18, 1980, for the interceptors and wastewater treatment facility as follows: SEWAGE TRTMT: I I ORIGINAL TOWNSITE: I PAGE 103 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 XL NEW BUSINESS: (cont'd) Phase I (in-town work) TAM Construction Brown & Associates Felton Construction Engineer's estimate $ 2,213,394.65 2,808,054.00 2,821,850.00 2,676,885.00 Phase II (Lowell Pt. road and site work) Brown & Associates McWil May Contracting Engineer's estimate $ 2,850,602.00 2,999,484.00 3,650,606.50 3,326,400.00 (For explanation of how) (the total figures as ) (cited here were deter-) (mined, see AEE memo ) (dated 6/26/80. js ) TOTALS TAM - Brown Brown - Brown Engineer's estimate $ 5,033,609.65 5,658,656.00 5,903,285.00 (85%) (95%) (100%) Grant funds $ 5,724,779.00 575,000.00 $ 6,300,000.00 + Williams stated that following opening of the bids, TAM Construction had notified the City that there was an error in their bid and had requested permission to withdraw. Williams stated it was the engineer's recommendation that the Council disallow the TAM bid as being non-responsive. Further, he recommended that the Council act to award the project to the low responsive bidder, Brown & Associates, at a total project price of $5,658,656, which he noted was 95 percent of the engineer's estimate and within the allotted grant funds. Williams reported that any bid award would have to be subject to the Alaska Department of Environmental Conservation and the U.S. Environmental Protection Agency approval. City Attorney distributed and spoke and answered questions on "Bid Bond Questions" which addressed the issue of holding TAMs liable for its initial bid. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to reject the bid from TAM Construction on the sewage treatment plant as a non-responsive bid. It was moved by Cripps, seconded by Swartz and unanimously carried by all those present to award the bid on Phase I and II of the sewage interceptors and wastewater treatment facility to Brown & Associates, a joint venture, at $5,658,656, contingent upon approval by DEC and EPA. City Attorney noted that the bid award had the effect of binding all sub-contractors of Brown & Associates, as well as the prime contractor for the project. RECESS: The meeting was recessed at 8:48 p.m.; reconvened at 8:58 p.m. XII. CITY MANAGER REPORTS: A. June 11, 1980, letter from Hughes, Thorsness, Gantz, Powell & Brundin regarding the Superior Court's award of $500 in attorney's fees to Ronnie L. Lewis in the case Lewis vs. Board of Adjustment of the City of Seward, et aI, was noted. Cripps questioned if the award of attorney's fees implied that the judge had ruled in favor of Lewis. In reply, City Attorney stated that in a case which contained numerous items of appeal, the judge had found in Lewis' favor on one item--that being that the Board of Adjustment had not adequately addressed the issue of what constituted the comprehensive plan for the City of Seward. He commented that the Court's award of limited attorney's fees was only an interim measure and the judge still had to rule on the overall merits of the case once in receipt of notification of Council action of June 9, 1980. Cripps spoke in support of the City paying for the entire sum of Lewis' ii;4 PAGE 104 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 XI1. CITY MANAGER REPORTS: (cont'd) ORIGINAL TOWNSITE: (cont'd) legal costs and stated that there was a City Code provlslon which stated that the City would pay the court costs in matters of appeal to the Superior Court. Administrative Assistant referred to Kenai Peninsula Borough Ordinance No. 78-26 (Seward zoning ordinance) and stated that the reference to court costs was meant to place the burden of defending the ordinance on the City rather than on the Borough: "Sec. 21. 78.530 - Appeals to Superior Court -- Costs When appeals are taken to the Superior Court, the costs of the appeal in support of this ordinance shall be borne by the City of Seward." Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present that the City of Seward pay to Ronnie Lewis the sum of $500 as ordered by the Superior Court. LOC ORGS: B. June 10, 1980, listing of merchant participation in the Chamber of Commerce summer publicity campaign radio jingle, "Summer-up in Seward", totaling $17,400, was noted. City Manager reported that pursuant to previous Council action authorizing $1 in matching funds for every $3 donated by local merchants, up to a $5,000 limit, he had issued a check in the amount of $5,000 for the advertising campaign. C. City Manager reported on discussions he had had with representatives of the State Department of Transportation and Public Facilities regarding renewal of the ferry system lease of the "old depot" building and preferential use of the 4th Avenue Dock for the period July 1, 1980, through June 30, 1981. He stated that the previous year's lease rental had been $20,400 and the City administration had requested $29,000 for the upcoming year. The State had submitted a counter offer of $25,000 and the City Manager recommended approval of the lease at that rate; it was so moved by Cripps, secondeo by Campbell and unanimously carried by all those present. D. City Manager reported that the City had prevailed in the law suit which Mark Sawyer had filed relative to a 1975 highway accident. E. City Manager reported that Engineering Science of Alaska had been denied its appeal to the Supreme Court on the Superior Court's ruling in favor of the City of Seward in the law suit involving both parties. F. City Manager reported on various meetings scheduled throughout the coming week. He reminded Council that on June 26, commencing at 2:00 p.m. in the Council Chambers, Council was scheduled to receive verbal presentations from consultants bidding on the 4th of July Creek industrial park development. G. City Manager gave a report on the status of television service to the community. He requested Council authority to postpone the request for bids for operation and maintenance of the Mt. Wolcott site and, rather, to work with John Moore of Satellite Television Systems for normal maintenance of the Channel 2 translator. He confirmed that any large expenditures would come before Council for approval. City Engineer Tom Small appeared from the audience and reported that the City would be receiving an additional satellite dish, and thus an additional station, in the near future. XIII. COUNCIL DISCUSSION: PLANNING & ZONING: A. June 11, 1980, letter of resignation from Planning and Zoning Commissioner Mick W. Inmon was noted. Also noted were "Application for Commission Appointment" as filed in February and March 1980, by Mary Lewis, Patrick O'Brien and Thomas Reese. City Clerk stated it was the Council's option to select from the applications received earlier in the year or to direct that the vacancy be advertised. Hugli, with Council consent, directed the Clerk to advertise the vacancy. C ATTORNEY: I HARBOR: I I i ,);) PAGE 105 REGULAR MEETING - JUNE 23, 1980 VOLUME 19 XIII. (cont'd) COUNCIL DISCUSSION: B. "Claim for Damages" received June 5, 1980, from George L. Kitson for damages sustained to his sailboat while parked in dry storage in the Small Boat Harbor area, and allegedly caused by Harbor personnel, was noted. Also noted was June 18, 1980, memo from Harbormaster Singleton relative to the incident. City Manager read in full Sec. 5-12 of the Seward City Code as follows and recommended denial of the claim: "Sec. 5-12. Assumption of risk by owners of boat. The owner of any boat shall assume all risk of damage or loss to his property of any kind while it is within the limits of the harbor. The City assumes no risk on account of fire, theft, act of God or damage of any kind to boats, persons or equipment." Cripps stated it appeared that the City had an obligation to pay for the damages sustained. City Attorney noted that the claim did not cite the monetary estimate of the damage and, further, the question needed to be answered if the mast, which extended beyond the bow of the vessel, infringed upon the room reserved for the maneuvering of the boat lift. City Clerk reported that she had discussed the incident with the Harbormaster and he had stated that the owner of the vessel had laid the mast on the boat deck, extending it out into the area reserved for movement of the boat lift; the mast extended approximately five feet beyond the vessel and was not flagged. Following discussion, it was moved by Cripps, seconded by Gillespie and unanimously carried by all those present to table the Kitson claim until the Council receives such additional information as to make an intelligent decision on the matter. City Manager stated that the extension of 4th Avenue, running through the boat storage area and connecting to Airport Road, was a hazardous thoroughfare and, with Council consent, requested permission to barricade the gravel roadway whereby people having to work on vessels or travel to the dump station could enter the area but two-way through traffic would be curbed. C. Swartz spoke on the speeders, especially apparent on 2nd Avenue, and requested more patrolling of the area. D. Hugli questioned the administrative handling of utility debtors. City Manager stated that the Supreme Court had issued a ruling that providers of utility services could not discontinue service to a residence in the winter- time for non-payment of a bill. Hugli stated that the City might want to investigate increasing the deposit required for commercial businesses wishing to receive utility services. XIV. CITIZENS' DISCUSSION: A. Ronnie Lewis appeared from the audience and questioned whether the City was obligated to pay his attorney fees in an appeal procedure. Admin- istrative Assistant referred to the related clause in Borough Ordinance No. 78-26 (see also XII. A., page 104), and stated that the intent of the clause was to remove liability from the Borough and place it on the City for the governmental appeal of the zoning ordinance. B. Willard Dunham gave a verbal report on the Kenai Aquaculture Association, established for the commercial fish enhancement in Kenai Peninsula and Cook Inlet waters. He stated he had a manual of the Association's by-laws as well and the meeting minutes for Council to review if they so desired. XV. djourned at 9:55 p.m. /"/ ~7 / , G / / I ~ ~/"-."' 1-. Ra.ymond . Hugli' Mayor lirA" ; 1 '-'1, I~ i. ,n ELECTRIC/ COMPT. / RES: ELECTRIC/ COMPT. / ORD: PAGE 106 SPECIAL MEETING - JULY 10, 1980 VOLUME 19 1. CALL TO ORDER: The July 10, 1980, called to order at 4:00 p.m. the Councilmembers, the local 7 and 8, 1980, was noted. special meeting of the Seward City Council was "Special Meeting Notification" as delivered to radio station and the local newspaper, on July II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. II 1. ROLL CALL: Present were: Mayor Hugli; Counci1members Campbell, *Gillespie, *Leer, Soriano and Swartz (Absent with Council consent was Cripps) Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. SPECIAL ITEMS: A. Copies being made available to the public and distributed to Council, Hugli read by title only proposed resolution authorizing an agree- ment relative to the issuance of $1.7 million in general obligation bonds for the Seward Electric Utility, entitled: A Resolution Authorizing and Directing the Execution by the Mayor and Delivery of the 1980 Second Tripartite Agreement With the National Oceanic and Atmospheric Adminis- tration, U.S. Department of Commerce, the Alaska Municipal Bond Bank, and the City of Seward, Alaska City Manager reported that the agreement was a necessary part of the issuance of the $1.7 million general obligation bonds for the Seward Electric Utility System improvements as approved by the voters at the October 2, 1979, general municipal election. It was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-41. B. Copies being made available to the public and distributed to Council, Hugli read by title only proposed ordinance providing for the issuance and sale of the $1.7 million general obligation bonds for the Seward Electric Utility System improvements, entitled: An Ordinance of the City of Seward, Alaska, Providing for the Issuance and Sale of $1,700,000 of General Obligation Bonds of the City of Seward, Alaska, for the Purpose of Planning and Con- structing an Electric Substation and Making Other Improvements to the Electrical System of the City of Seward, Alaska, and Fixing the Date, Form, Terms and Maturities of These Bonds City Manager reported the ordinance was being presented for introduction with a requested public hearing date of July 14, 1980. He confirmed the ordinance was necessary in order to complete the sale of the bonds as approved by the voters at the general municipal election of October 2, 1979. *COUNCILMEMBERS LEER AND GILLESPIE ARRIVED AT THIS TIME AND HEREAFTER TOOK PART IN THE MEETING. It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to introduce Ordinance No. 489 and schedule a public hearing for July 14, 1980. PAGE 107 SPECIAL MEETING - JULY 10, 1980 VOLUME 19 V. ADJOURNMENT: I was adjourned at 4:08 p.m. j .'""\ PAGE 107 REGULAR MEETING - JULY 14, 1980 VOLUME 19 1. CALL TO ORDER: The July 14, 1980, Board of Adjustment and regular meeting of the Seward City Council was called to order at 7:08 p.m. by Mayor Hugli. "Seward Board of Adjustment Notice of Meeting" as posted and published one time in the local newspaper was noted. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. IlL ROLL CALL: I Present were: Mayor Hugli; Councilmembers Campbell, *Gillespie, Leer, *Soriano and Swartz (Absent, with Council consent, was Cripps) Present also: City Manager Johnson, City Attorney Jarrell, Legal Counsel Kenneth Jacobus, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. SPECIAL ITEM: FOREST ACRES: A. The Seward City Council, sitting as a Board of Adjustment, convened to hear the appeal of Seward Chapel from the Seward Advisory Planning and Zoning Commission's action of June 11, 1980, to deny Seward Chapel's application for contract rezoning of Lots GG, RR and SS, Forest Acres Subdivision, to allow for the location of a parochial school in the rural residential zoning district, and the following items were noted: "Seward Advisory Planning Commission Memorandum of Decision" regarding Seward Chapel vs. City of Seward et al., dated June 11, 1980, advising of the refusal to grant the application of Seward Chapel for a contract rezone of its lots in the Forest Acres Subdivision I A portion of the Seward Advisory Planning and Zoning Commission meeting minutes of June 11, 1980, at which time the Commission addressed the issue of the Seward Chapel contract rezone application and unanimously acted to deny the contract rezone request June 11, 1980, memorandum from Kenai Peninsula Borough Senior Planner Jeff Labahn, setting forth the administrative procedures to be followed by the Planning Commission relative to Seward Chapel's contract rezone applica tion i \ i ;~.) PAGE 108 REGULAR MEETING - JULY 14, 1980 VOLUME 19 IV. SPECIAL ITEM: (cont'd) FOREST ACRES: (cont'd) June 9, 1980, letter from Spencer C. Sneed of Hartig, Rhodes, Norman and Mahoney, legal counsel for the plaintiff, regarding the issue of a contract which would limit enrollment at the parochial school All other correspondence and documents of record as cited in the Seward Advisory Planning and Zoning Commission meeting minutes of July 11, 1980, were copied and distributed to the Board. Attorney Kenneth Jacobus stated he had been retained by the City as independent counsel to advise the Board regarding its decision-making process in reviewing the Planning Commission's action. Jacobus presented a brief summary of the administrative procedures which had been followed to date concerning the Seward Chapel contract rezone application. Spencer Sneed, legal counsel for Seward Chapel, appeared from the audience and questioned if any Board members had a conflict of interest by means of a direct or indirect financial interest in the outcome of the Seward Chapel appeal and, further, he questioned if any member had signed any petitions in support of or opposing Seward Chapel's request. Campbell stated he had signed a petition opposing the location of a school in the Forest Acres Subdivision, he lived within 300 feet of the Seward Chapel property, his interest in the issue commenced prior to the time he became a City Councilmember, he did not perceive his activity as a property owner in the Forest Acres area as reflective of a conflict of interest, and he would consider an objection to his participation in voting as a disenfranchise- ment of his rights. COUNCIlMEMBER GILLESPIE ARRIVED AT 7:13 P.M. AND THEREAFTER TOOK PART IN THE MEETING. Jacobus read in full Seward City Charter Section 3.5 (1) which addressed the procedure to be followed if the question of a conflict of interest on the part of a Councilmember was raised. Following discussion, Sneed withdrew his objection to Campbell's participation in the Board's decision and, in answer to a question from Jacobus, he confirmed that he had no objection to the participation of those Board members not presently in attendance in the final decision of the Board. Jacobus confirmed that those members not present would be urged to listen to the tape recording of this July 14 meeting prior to the Board's next meeting and decision on the issue. COUNCIlMEMBER SORIANO ARRIVED AT 7: 18 P.M. AND THEREAFTER TOOK PART IN THE MEETING. Sneed presented arguments refuting the conclusions of law as set forth in the June 11, 1980, Memorandum of Decision of the Seward Planning Commission, which decision offered a commentary on the reasons the Commission acted to deny the application of Seward Chapel for a contract rezone of its lots in Forest Acres. He stated the Board should consider the question of whether the Planning Commission reached its decision and fully performed its duties pursuant to the terms and conditions of the Seward zoning ordinance, specifically Sec. 21.78.630 which established the procedures for the review of contract zoning applicatio~s. He reported that if a contract zoning application met the two requirements that the proposed land use was compatible with adjacent uses and that existing public facilities could accommodate the proposed use, then the Commission was mandated by the ordinance to propose any conditions deemed necessary to guarantee the development of the property in a manner consistent with the intent of the contract zoning provisions. Sneed' interpreted the ordinance thereby as requiring the Commission to enter into a contract which imposed such conditions as a limitation on enrollment of students, in order to allow the operation of the school. He submitted that the Commission was remiss in its duties in neglecting to offer Seward Chapel such a contract for limited operation of the school facility and requested that the Board remand the issue back to the Commission and so direct them to develop such a contract. FOREST ACRES: (cont'd) I I I i l PAGE 109 REGULAR MEETING - JULY 14, 1980 VOLUME 19 IV. SPECIAL ITEMS: (cont'd) Sneed continued, stating that Judge Singleton had ordered the City to accommodate the exercise of religious beliefs to the greatest extent possible without sacrificing definite compelling zoning interests. He offered that the Court's order was not satisfied by the Commission's conclusion that such uses as proposed by Seward Chapel were allowed in other zoning districts within the City and, therefore, the exercise of religious beliefs was adequately accommodated by the City. Sneed referred to the Commission's statement as contained in its Memorandum of Decision that Seward Chapel had been informed in 1975 prior to construction on the Forest Acres site that schools were not an allowed use in the particular zoning district. He commented that Ordinance No. 314, the zoning ordinance in affect for the City of Seward in 1975, allowed churches and uses accessory to a church in R-l zoning districts and he argued that a parochial school was an accessory use to a church. Sneed concluded his remarks by stating that it appeared the Commission had been overly concerned with the speculative future growth of the school and, therefore, totally neglected to address the operation of the school at a limited enrollment. He referred to Judge Singleton's order which stated that the present operation of the school at the level of 13 students did not pose a negative impact on the surrounding land uses. Campbell questioned if Seward Chapel would ever consider voluntarily moving the school to another location when a specific enrollment limitation was reached or if the City would constantly be in the position of the defendant, continuously expected to increase the size limitation of the school facility. Sneed stated he did not know what Seward Chapel's concept of an acceptable size limitation would be but he would question Pastor Pichotta in that regard. Campbell commented that it seemed logical that it could be determined that neighborhood degradation began at a school enrollment level of zero in a specific zoning district. City Attorney Jarrell gave a brief verbal report on the Planning Commission's position on the issue and commented on various statements made by Sneed. In response to Sneed's remarks regarding the Commission failing to address the allowance of the school at a limited enrollment level and that all growth predictions were purely speculative, Jarrell stated the Planning Commission viewed its role as a planning body which required the consideration of long-term impacts caused by the allowance of various land uses throughout the City and, therefore, the anticipated growth rate of the school was indeed a relevant consideration and of vital concern in the Commission's decision-making process. Jarrell stated the City did not consider a school as an "accessory use" to a church, relative to the language contained in Seward zoning Ordinance No. 314 in effect in 1975. Jarrell concluded by stating that Judge Singleton's order required the City to consider Seward Chapel's application for a contract rezone in light of the Alaska Supreme Court case Frank vs. State and urged the Board members to review the case thoroughly prior to arriving at a decision. Following discussion, Hugli stated the Board would not take action on the issue at this time but, rather, would allow an opportunity for the absent Board member to listen to the evening's taped proceedings. As soon as possible, another meeting would be scheduled when all members could be present to vote on the Seward Chapel appeal. RECESS: The meeting was recessed at 8:22 p.m.; reconvened at 8:33 p.m. V. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Swartz and unanimously carried by all thos~ present to approve the City Council regular meeting minutes of June 23, 1980, as written. 1 1 (l PAGE 110 V1. REGULAR MEETING - JULY 14, 1980 VOLUME 19 APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following item be added to the consent calendar: 10. Invoice No. 051075 dated July 7, 1980, from R & M Consultants, in the amount of $16,354.72, for the Nash Road extension design engineering, relative to the 4th of July Creek industrial park area access. City Manager requested that the following item be added to the regular meeting agenda: IX. Citizens' Discussion: (With prior notice only) A. Norman Gortch of R & M Consultants - progress report on Nash Road extension project Following discussion, it was moved by Swartz, seconded by Leer and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: CCMPTROLLER: C ATTORNEY: INSURANCE: 3. LEG REPS: 4. ABC B: 5. ABC B: 6. LOC ORGS: 7. STREETS, RDS, HWYS: 8. C ATTORNEY: 9. 4TH OF JULY 10. CREEK AREA: 1. Comptroller's list of accounts payable for June 1980, totaling $490,751.12, was approved for payment and filed. 2. The following May 30, 1980, invoices from Artic Environ- mental Engineers relative to the Engineering Science of Alaska lawsuit, were approved for payment and filed: Invoice 1102480 Invoice 1102280 $ 5,502.75 154.00 June 27, 1980, memorandum from Finance Director Gale regarding the City's annual insurance renewal at a premium cost of $84,863 for fiscal year 1980-81, was noted for information and filed. July 2, 1980, final billing of $4,000 from Dawson and Associates for lobbying services during the 1980 legislative session, was approved for payment and filed. July 3, 1980, letter from the Alcoholic Beverage Control Board, noticing of request of "Restaurant Designation" for minors on the premises of the Mini Mall, as submitted by proprietor Jean E. Leer, was noted and the Mini Mall application was approved for the Mayor's signature. July 9, 1980, request for "Restaurant Designation" for minors on the premises of the Breeze Inn Restaurant, as submitted by proprietor Juris Mindenbergs, was noted and approved for the Mayor's signature. "Application for Permit for Authorized Games of Chance and Skill" for Calendar Year 1980 as filed by the Mt. Marathon Homemakers Club, was noted and approved for the Mayor's signature. June 26, 1980, letter from U.S. Senator Mike Gravel regarding Resurrection River Road construction, was noted for information and filed. City Attorney Jarrell's bill received July 10, 1980, totaling $3,909.10 for legal services rendered through June 30, 1980, was approved for payment and filed. Invoice No. 051075 dated July 7, 1980, from R & M Consultants, in the amount of $16,354.72, for the Nash Road extension design engineering, relative to the 4th of July Creek industrial park area access, was approved for payment and filed. PAGE 111 REGULAR MEETING - JULY 14, 1980 VOLUME 19 VII. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of July 1, 1980. VIII. PUBLIC HEARINGS: WATERFRONT "'ITS' A. Public hearing was opened on the proposed lease of a portion of the Seward Waterfront Tracts commonly known as the "old depot building" at the south end of 5th Avenue, and preferential use of the 4th Avenue Dock to the Alaska Ferry System for the period July 1, 1980, through June 30, 1981, and the following items were noted: "Notice of Public Hearing" as posted and published two times in the local newspaper Proposed "Lease and Dock License Agreement" between the City of Seward and the State of Alaska, at a total annual fee of $25,000 No one appeared from the audience in order to be heard and the public hearing was closed. IX. CITIZENS' DISCUSSION: (With prior notice only) extension status of A. Norman Gortch of R & M Consultants, engineers for the Nash Road project, appeared from the audience and gave a verbal report on the the 4th of July Creek industrial park area access road. x. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None I B. Ordinances for Public Hearing and Enactment: ELECTRIC/ 1. Copies being made available to the public, Hugli noted by title COMPT!only proposed ordinance providing for the issuance and sale of $1.7 million in ORDS: general obligation bonds for City of Seward Electric System improvements, entitled: An Ordinance of the City of Seward, Alaska, Providing for the Issuance and Sale of $1,700,000 of General Obligation Bonds of the City of Seward, Alaska, for the Purpose of Planning and Constructing an Electric Substation and Making Other Improvements to the Electrical System of the City of Seward, Alaska, and Fixing the Date, Form, Terms and Maturities of These Bonds The public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. City Manager confirmed the bonds to be issued were those approved by the voters at the City election held on October 2, 1979. It was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 489. C. Resolutions: C MANAGER/ 1. Copies being made available to the public, Hugli noted by I RES: title only proposed resolution setting the City Manager's salary for fiscal year 1980-81, entitled: A Resolution Setting the Salary for the City Manager and Rescinding All Prior Resolutions in Conflict Herewith It was moved by Gillespie, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-42. 17'1. PAGE 112 REGULAR MEETING - JULY 14, 1980 VOLUME 19 X. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) C CLERK/ RES: 2. Copies being made available to the public, Hugli noted by title only proposed resolution setting the City Clerk's salary for fiscal year 1980-81, entitled: A Resolution Setting the Salary for the City Clerk and Rescinding all Prior Resolutions in Conflict Herewith It was moved by Gillespie, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-43. WATERFRONT TRACTS/ RES: title only Waterfront entitled: 3. Copies being proposed resolution Tracts, to Northern made available to the public, Hugli noted by authorizing the lease of Tracts 3 and 4, Seward Stevedoring and Handling Corporation (NSHC), A Resolution Providing for the Disposal of Tracts 3 and 4 of the Seward Water- front Tracts and Authorizing the City Manager to Negotiate the Lease Thereon City Manager reported that the proposed lease between the City and NSHC represented a renegotiated version of the original lease agreement dated June 11, 1970. He confirmed the lease was for a 20-year period and reflected an adjusted annual rental of $24,000. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to approve Resolution No. 80-44. XI. UNFINISHED BUSINESS: FIRE DEPT: A. Proposed "Mutual Aid Agreement" between the City of Seward and the Bear Creek Fire Service Area (BCFSA) was noted. BCFSA Fire Chief Leonard Weimar and Seward Fire Chief Oscar Watsjold appeared from the audience and recommended approval of the agreement. City Manager stated the agreement had been approved by the City Attorney and he recommended Council approval. Following discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to approve the Mutual Aid Agreement between the City of Seward and the Bear Creek Fire Service Area. 4TH OF CREEK AREA: JULY B. City Manager stated at a recent study session the Council had reviewed the various proposaE submitted and unofficially selected an engineer- ing firm to provide the necessary services for design of the 4th of July Creek industrial center and public marine facilities. He requested Council take official action on the issue in the form of a motion. It was moved by Campbell, seconded by Leer and unanimously carried by all those present that the City of Seward hire Century-Quadra as the design engineering firm for the 4th of July industrial center and public marine facilities. XII. NEW BUSINESS: None XIII. CITY MANAGER REPORTS: TELEVISION: A. City Manager reported that technicians were on Mt. Wolcott to try to resolve the problems with the Channel 9 translator. He distributed a letter dated July 11, 1980, from Satellite T.V. Systems, submitting a bid of $26,350 to provide materials and installation for the operation of the current and one additional earth station. City Manager stated the bid was within the limit of funds remaining with the State of Alaska for expenditure by Seward for television service. He reported that if Council approved the proposal and allowed the installation of an additional earth station dish, it was expected to be operational by October 1. In answer to a question from Campbell, City Manager stated the television expansion project would not require an increase in customer service fees. Following discussion, it was moved by Gillespie, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to expend $26,350 on the installa- tion of a Channel 7 dish and antenna and the moving of Channel 3 equipment, and all other necessary improvements. .' . PAGE 113 REGULAR MEETING - JULY 14, 1980 VOLUME 19 XIII. CITY MANAGER REPORTS: (cont'd) B. City Manager reported that he had that evening received from the City Attorney a draft dock license and lease agreement for the public port facility and marine industrial center proposed for the 4th of July Creek area. He requested that a work session be scheduled for Monday, July 21, 1980, in order for Council to review and discuss the draft documents. XIV. COUNCIL DISCUSSION: III P & Z A. The following items were noted relative to the one vacancy on COMSN:the Seward Advisory Planning and Zoning Commission: "Notice of Vacancy - Planning and Zoning Commission" as posted and published two times in the local newspaper Applications as received from: Patrick O'Brien Thomas Reese Councilmembers cast secret ballots and, upon tallying, the City Clerk announced that Patrick O'Brien had received five votes. Hugli noted that O'Brien would fill the current vacancy on the Commission. c: ATTORNEY: B. The following items were noted relative to the claims submitted by Dean and Gary Lust for damage which occurred to their vessels while in the Seward Small Boat Harbor: May 27, 1980, memorandum from Administrative Assistant, recommending denial of the claims pursuant to Section 5-11 of the City Code I May 2, 1980, memorandum from Harbormaster Singleton, explaining the events surrounding the damage to the two vessels February 7, 1980, letter from Harbormaster Singleton to Dean Lust, notifying Lust of the damage his vessel incurred April 18, 1980, "Claim for Damagesl1 in the amount of $531.62 as filed by Dean Lust April 18, 1980, I1Claim for Damagesl1 in the amount of $770 pursuant to an attached estimate, as filed by Dean Lust on behalf of Gary Lust I Leer stated she felt the City was responsible for the damages in view of the fact that the damage occurred while the boats had been removed from their regular moorings and had been tied together by Harbor personnel to facilitate the removal of a sunken vessel. Hugli stated he agreed with Leer and felt the Harbor personnel should have taken proper precautions to insure the safety of the vessels. Soriano stated the Council should first address Seward City Code Section 5-11 which states that the 11, . . City assumes no risk on account of . . . an Act of God or damage of any kind to boats, persons or equipment." He stated if the Council believed such claims should be paid then the Code should be revised. Following discussion, it was moved by Swartz, seconded by Leer but did not carry as follows that the Council honor both of the claims: Ayes: Noes: Absent: Hugli, Leer and Swartz Campbell, Gillespie and Soriano Cripps !t PAGE 114 REGULAR MEETING - JULY 14, 1980 \OLUME 19 XIV. COUNCIL DISCUSSION: (cont'd) C ATTORNEY: C. June 27, 1980, I1Claim for Damagesl1 in the amount of $104.95 as submitted by Charles Karges Jr. for an antenna which was allegedly removed from his vehicle while it was in the City impound lot, was noted. City Manager referred to the July 8, 1980, memorandum from Police Lieutenant Olson which stated that the police officers had not noticed an antenna and informa- tion requested from Karges on the claim had never been received by the Police Department; therefore, Lt. Olson had recommended denial of the claim. It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to deny the claim of Charles Karges Jr. D. Swartz spoke on the need for the City to seek funding for the lengthing of the Seward airport runway to accommodate additional air service into the area. City Manager stated the issue was a continuing concern of the administration and funds had been unsuccessfully sought from the 1980 legislature. He stated the City would continue its efforts during the 1981 legislative session. Gillespie supported the Council passage of a resolution requesting State funds for the airport runway extension. E. Gillespie reported on repair work being done at the high school and stated such work should not be at the expense of the taxpayers since the building was only a few years old. Campbell explained the extent of the repair work underway and confirmed that the architect and contractor were having to bear the costs of the repairs. F. Leer questioned if a roof could be placed over the fish cleaning area in the Small Boat Harbor. Following discussion, Hugli directed the City administration to obtain a cost estimate for a roof and report to Council at the next meeting. XV. CITIZENS' DISCUSSION: A. Willard Dunham appeared from the audience and spoke in support of covering the fish cleaning area in the harbor and recommended a plastic roofing in order to eliminate the need for lighting the area. Further, Dunham "~port expansion was anticipated, the entire facility should be /Crelocated d~e'*o access route problems which would be brought about by a longer runway a\ the present airport location. , . / , XVI. ADJOURNMENT: adjourned at 9:48 p.m. 12 () t/~ RaymOn~HUgli Mayor -------------------------------------------------------------------------------- I PAGE 115 SPECIAL MEETING - JULY 21, 1980 VOLUME 19 I. CALL TO ORDER: The July 21, 1980, special meeting of the Seward City Council, sitting as a Board of Adjustment, was called to order at 7:03 p.m. by Mayor Hugli. IlNotice of Special Meetingll as posted and published one time in the local newspaper, was noted. II. OPENING CEREMONY: Councilmember Soriano led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Leer, Soriano and Swartz Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. SPECIAL ITEM: FOREST ACRES: A. Hugli stated that the City Council was meeting as a Board of Adjustment to review the evidence and testimony presented in the appeal of Seward Chapel from the Seward Advisory Planning and Zoning Commission's action of June 11, 1980, to deny Seward Chapel's application for a contract rezoning of Lots GG, RR and SS, Forest Acres Subdivision, to allow for the location and operation of a parochial school in the rural residential zoning district. He reported that the Board had not taken action on the issue at its July 14 meeting due to the absence of Councilmember Cripps. In answer to an inquiry from Hugli, Cripps confirmed that he had listened to the taped proceedings of the July 14 meeting, had reviewed the packet of information which had been supplied each Board member relative to the Seward Chapel issue, and was ready to participate in a vote on the issue. It was moved by Gillespie, seconded by Swartz and unanimously carried that the City Council I uphold the earlier findings of the Seward Planning and Zoning Commission of June 11, 1980, regarding Seward Chapel's contract zoning application. I v. ADJOURNMENT: The meeting was adjourned at 7:06 p.m. '~"A, )-\~.,. ~ :-:.' ' .'.- (City Seal) -, ' ~; ':cr::' ----------------------------------------------------------------------~------- , "] f) PAGE 116 REGULAR MEETING - JULY 28, 1980 VOLUME 19 I. CALL TO ORDER: The July 28, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor John Gillespie. II. OPENING CEREMONY: Councilmember Soriano led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice Mayor Gillespie; Councilmembers Cripps, Leer, Soriano and Swartz (Absent, with Council consent, were Mayor Hugli and Councilmember Campbell) Present also: City Manager Johnson, *City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley INTRODUCTIONS: SISTER CITY: Brent Whitmore appeared from the audience and introduced Mr. Tatsuichi Tsujii, leader of a Japanese youth camping group presently camping at the Lowell Point area. He stated five members of the group were from Seward's Sister City of Obihiro, Japan. The Obihiro youth introduced themselves and one presented a letter to the Council from Obihiro Mayor Kengo Tamoto; Gillespie read the letter in full. Whitmore also introduced the three summer exchange students who had arrived the previous week from Obihiro. The Japanese students appeared and introduced themselves as Haruji Hayashi, Kiyotsugu Ikeda and Nobuyuki Takahashi. Whitmore commented that Seward youths David Kasser, Michael Kothe and Brett Woern would be departing for Japan the following week with the three Japanese students. In conclusion, Whitmore displayed the gold pan trophy which had been purchased as the Seward Mayor's trophy for the Japanese Heigen Festival and which would be sent with the Seward students to be delivered to Mayor Tamoto on behalf of Mayor Hugli. Whitmore reported that 1980 was the eighth year of the student exchange program and thanked Council for its support. IV. APPROV AL OF MINUTES: It was moved by Swartz, seconded by Cripps and unanimously carried by all those present to approve as written the special meeting minutes of July 10 and 21 and the regular meeting minutes of July 14, 1980. v. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the consent calendar: 4. Arctic Environmental Engineers Invoice No. 04080 dated July 14, 1980, in the amount of $96,325.44, for engineer- ing services performed relative to Step 2 of the sewage treatment facility plan 5. Arctic Environmental Engineers Invoice No. 04180 dated July 14, 1980, in the amount of $6,825.18, for engineer- ing services performed relative to Step 3 of the sewage treatment facility plan City Manager requested that the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 3. Proposed Resolution No. 80-47, supporting the issuance of a permit to allow Kenai Lumber Company to place fill material in a Ilwetlandll area L J PAGE 117 REGULAR MEETING - JULY 28, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) X. Unfinished Business: A. Request of John C. Anderson III to purchase City- owned Lot 4, Block 9, Cliff Addition XI. New Business: I C. July 25, 1980, letter from Robert F. Richardson, requesting City assistance in financing a sewer line hook-up for the new Skill Center shop building At the request of the City Manager, it was moved by Cripps, seconded by Soriano and unanimously carried by all those present to hold an executive session regarding legal matters. (followed Public Hearings) Following discussion, it was moved by Cripps, seconded by Swartz and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: STREETS, RDS, HWYS: 1. The following letters regarding Resurrection River Road construction, were noted for information and filed: July 15, 1980, letter from State Department of Trans- portation and Public Facilities Commissioner Robert W. Ward July 16, 1980, letter from U.S. Senator Mike Gravel July 17, 1980, letter from U.S. Senator Ted Stevens RAILROAD : 2. July 9, 1980, letter from The Alaska Railroad Real Estate Officer, Merle Akers, transmitting Supplement No. 6 to the contract between the Railroad and the City for the Police Department to provide protection for the Railroad's Seward facilities at $600 per month, through September 30, 1981, was noted and approved for the Mayor's signature. I CLIFF ADDN/ WATERFRONT TRACTS: 3. July 8, 1980, Invoice No. 7183 from Appraisal Company of Alaska in the amount of $1,100 for appraisal services performed on City-owned Lot 4, Block 9, Cliff Addition, and Tract A of ATS No. 174, was approved for payment and filed. SEWAGE TREATMENT: 4. Arctic Environmental Engineers Invoice No. 04080 dated July 14, 1980, in the amount of $96,325.44, for engineer- ing services performed relative to Step 2 of the sewage treatment facility plan, was approved for payment and filed. SEWAGE TREATMENT: 5. Arctic Environmental Engineers Invoice No. 04180 dated July 14, 1980, in the amount of $6,825.18, for engineer- ing services performed relative to Step 3 of the sewage treatment facility plan, was approved for payment and filed. I VI. BOROUGH ASSEMBLY REPORT: Due to the absence of Councilmember Campbell, there was no Borough Assembly report. VII. PUBLIC HEARINGS: None ~ 1 ~~ 4TH OF JULY CREEK: WATERFRONT TRACTS/ RES: FINANCE/ RES: LOUISIANA PACIFIC/ RES: PAGE 118 REGULAR MEETING - JULY 28, 1980 VOLUME 19 EXECUTIVE SESSION: Council recessed to an executive session regarding legal matters at 7:47 p.m.; reconvened at 8:15 p.m. *The City Attorney departed the meeting at this time. VIII. CITIZENS' DISCUSSION: (With prior notice only) (Added by Vice Mayor, with Council consent) A. James Pruitt of Seward Ship's Chandlery appeared from the audience and distributed to the Councilmembers a letter dated July 28, 1980, requesting to lease a portion of City property adjacent to the proposed marine ways to be constructed at the 4th of July Creek industrial park. Pruitt spoke and answered questions on his preliminary lease proposal, stating he wanted Council to be aware that other businesses would be interested in locating in the industrial area and urged Council not to grant VECO or any other business venture an exclusive use of the area. City Engineer Tom Small appeared from the audience and stated that although earlier draft contract documents between the City and VECO had contained such an Ilexclusive rightsll clause, current drafts had eliminated those provisions. Gillespie assured Pruitt that the intent of the City was to provide land for lease by various entities and urged Pruitt to participate in the public hearings which would be held in the future regarding development of the 4th of July Creek area. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: 1. Copies being made available to the public and distributed to Council, Gillespie noted by title only proposed resolution approving the Lease and Dock License Agreement between the City and the State ferry system for the Ilold depotll building and preferential use of the 4th Avenue Dock for fiscal year 1980-81, entitled: A Resolution Providing for the Disposal by Lease of the Preferential Use of the Fourth Avenue Dock and the Old Depot Building for Use by the Ferry System City Manager noted that the $25,000 annual rental fee had been previously approved by Council and supported approval of the resolution. It was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-45. 2. Copies being made available to the public, Gillespie noted by title only proposed resolution authorizing City credit cards for use by the City Manager, entitled: A Resolution Authorizing the City Manager to Apply and Sign for Credit Cards City Manager stated the resolution would allow him to apply for and use City credit cards when he was making expenditures relative to City business. He spoke in support of the resolution, stating it would simplify his as well as the City's bookkeeping procedures. It was moved by Soriano, seconded by Leer and unanimously carried by all those present to approve Resolution No. 80-46. 3. Copies being made available to the public and distributed to Council, Gillespie read by title only proposed resolution supporting the issuance of a permit to Kenai Lumber Company to allow for the placement of fill material in a "wetlands" area, entitled: A Resolution Supporting the Issuance of a Section 404 Permit to Kenai Lumber Company L p/ RES: (cont'd) I CLIFF ADDN: I MARINA SUB: C ATTORNEY: SCHOOLS: I PAGE 119 REGULAR MEETING - JULY 28, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) City Manager stated the City had received notification that the Kenai Lumber Company, although holding a valid State permit, had been cited by the Federal government for placing fill material in an area designated "wetlands" without the proper Federal permit. He stated the City had been contacted by the Corps of Engineers and asked to comment on whether the practice had an adverse effect on the public interest. He noted the resolution as presented supported the Federal government's issuance of a permit to Kenai Lumber to allow for the Company to continue its filling practice. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-47. X. UNFINISHED BUSINESS: A. City Manager referred to the May 18, 1980, request received from John C. Anderson III to purchase City-owned Lot 4, Block 9, Cliff Addition at a price of $5,000. At that time the Council had directed the administration to obtain a fair market appraisal of the property. He confirmed the appraisal had been ordered and, upon receipt, the Andersons had been notified that the City parcel had been valued at $10,000 to $11,500. Even though the appraised price was considerably higher than Anderson's initial offer, Mr. Anderson had stated he was still interested in bidding on the parcel. City Manager urged Council to direct the administration to proceed with the request for bids on the parcel in order to get the land on the tax roles. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to authorize the City Manager to advertise as necessary for the sale of Lot 4, Block 9, Cliff Addition, at a minimum bid price of $10,000. Gillespie stated in past years Ralph Moody of Anchorage had voiced interest in purchasing a City-owned parcel near the lagoon and at that time Council had postponed action on the request until a map of City property could be developed in order to determine which lands should be retained and which offered for sale. He commented that the Council's policy seemed to have changed and, with Council consent, directed the administration to contact Moody to see if he was still interested in the parcel and, if so, proceed with acquiring an appraisal and offering the land for sale by the sealed bid process. XI. NEW BUSINESS: A. July 8, 1980, letter from Juris Mindenbergs and Douglas Weeks, requesting approval of the lease assignment of Lots 3, 5, 6, 7 and 8, Block 1, Marina Subdivision, from Mindenbergs and Weeks to Mindenbergs, was noted. Following discussion, it was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve the transfer from Douglas Weeks and Juris Mindenbergs to Mindenbergs on Lots 3, 5, 6, 7 and 8, Block 1, Marina Subdivision. B. "Claim for Damages" dated July 2, 1980, as submitted by Ted Fogle, in the amount of $442.10, for damages allegedly sustained to Fogle's vehicle due to a collision with the harbor travelift, was noted. City Manager, with Council consent, requested that the claim be referred to the City's insurance carrier for investigation and settlement. C. July 25, 1980, letter from Robert F. Richardson, requesting City assistance in the financing of the installation of a sewer line to service the Skill Center's new shop building, was distributed. City Manager stated that an assessment district would have to be established to provide for the installa- tion of the $70,000 to $lOO,OOO sewer line and pump station necessary to service the Skill Center building, to be located near the existing shop on the Seward Highway. In answer to a question from Cripps, City Manager confirmed that legally the City would need a commitment from the State Department of Education prior to proceeding with the project. Following discussion, it was moved by Swartz, seconded by Cripps and unanimously carried by all those present to authorize the City Manager to proceed with development of a special assessment district to service the Alaska Skill Center shop complex with sewer. , ,') , . " PAGE 120 REGULAR MEETING - JULY 28, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: HARBOR: A. City Manager reported work had been done on the fish cleaning tables in the harbor area and he had received a time and materials estimate of $8,000 to place a steel or fiberglass roof over the tables which would be strong enough to withstand the winter weather. He stated if he was required to go to bid for the project, the estimated cost would near $10,000 due to the need for specifications and drawings. Following discussion, it was moved by Cripps, seconded by Soriano and unanimously carried by all those present to recommend proceeding with the time and materials bid for the project. on the provide B. City Manager gave a verbal report and answered Council questions status of the Nash Road extension clearing contract, which would access to the 4th of July Creek industrial park area. XIV. CITIZENS' DISCUSSION: A. City Manager, speaking on behalf of Dale Clemens, stated the Chamber of Commerce had requested permission to hold a street dance in the harbor area on Saturday, August 16, 1980. Gillespie, with Council consent, supported the activity but stated it should be understood that the sponsors of the dance were responsible for the clean-up. B. Oscar Watsjold appeared from the audience and spoke on the trailers parking south of the Alaska Marine building in the harbor area and blocking access to the parking lot. City Manager stated he was not aware of a problem but would investigate the situation. XV. ADJOURNMENT: adjourned at 9:03 p.m. ,{y <~:-" -------------------------------------------------------------------------- PAGE 120 REGULAR HEETING - AUGUST 11, 1980 VOLill1E 19 I. CALL TO ORDER: The August 11, 1980, regular meeting of the Seward City Council was called to order at 7:33 p.m. by ~1ayor HugH. II. OPENING CEREMONY: Councilmember Cripps led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, and Leer (Absent, with Council consent, were Soriano and Swartz) Present also: City Manager Johnson, *City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley I. . PAGE 121 REGULAR MEETING - AUGUST 11, 1980 VOLUME 19 IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to approve the regular meeting minutes of July 28, 1980, as written. V. APPROVAL OF CONSENT CALENDAR A}ID REGULAR MEETING AGENDA: I City Manager requested that the following item be added to the consent calendar: 6. August 5, 1980, billing from Ranald H. Jarrell for legal services rendered during July 1980, totaling $8,042.30 - approve for payment and file City Manager requested that the following items be added to the regular meeting agenda: XI. New Business: C. Award of the clearing contract for the Nash Road extension to the 4th of July Creek industrial park area D. Change order for the electrical system improvement project, assigning additional tasks to contractor Fischbach and Moore E. "Management/Service Agreement" for the 4th Avenue Dock as submitted by Albert Kawabe and dated July 28, 1980 I F. August 4, 1980, letter from Rock Associates, Inc., proposing to provide cable television service to the residents of Seward Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: C ATTORNEY: 1. July 24, 1980, invoice from Hughes, Thorsness, Gantz, Powell and Brundin for legal services rendered relative to the ILWU, totaling $5,428.47, was approved for payment and filed. ABC B: 2. July 22, 1980, letter from the Alcoholic Beverage Control Board, noticing of application to transfer the Palace Bar and Cafe's liquor license from Goresen to the Seward Longshoremen's Benevolent Association, was noted and filed without objection. STREETS: 3. July 22, 1980, letter from U.S. Senator Ted Stevens regarding Resurrection River Road construction, was noted for information only and filed. ELECTRIC: 4. July 24, 1980, letter from Alaska Governor Hammond regarding the Grant Lake hydroelectric project, was noted for information only and filed. I AK, ST OF: 5. July 30, 1980, notice from the State Department of Natural Resources relative to the classification of lands in the Seward area, was noted and filed without comment. C ATTORNEY: 6. August 5, 1980, bill from Ranald H. Jarrell for legal services rendered during July 1980, totaling $8,042.30, was distributed, approved for payment and filed. 1 'I <) PAGE 122 RFGULAR MFETING - AUGUST 11, 1980 VOLUNE 19 VI. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of August 5, 1980. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: None X. UNFINISHED BUSINESS: None XI. NEW BUSINFSS: BAYVIEW ADDN: A. August 6, 1980, memorandum from City Manager and July 29, 1980. letter from Velma Williams regarding the encroachment into Bear Street of the garage located on Lot 24, Block 3, Bayview Addition, was noted. City Manager stated the garage encroached onto a City right-of-way which was unimproved and would remain so for the foreseeable future. He stated the garage had been constructed many years ago, posed no problem to the City, and recommended the Council take no action against the encroachment, Gillespie requested permission to abstain from a vote on the issue because he had entered into a contract for the sale of the property. Following discussion, it was moved by Campbell, seconded by Leer and carried as follows that the City take no action against the encroachment of the building situated on Lot 24, Block 3, Bayview Addition, for the life of the loan or the useable life of the structure, whichever terminates first, in the matter of Velma Williams: Ayes: Noes: Abstain: Absent: Campbell, Cripps, Hugli and Leer None Gillespie Soriano and Swartz B. July 30, 1980, letter from Northeastern Fire Insurance Company of Pennsylvania regarding an insurance claim against the City and requesting payment of $974.75, was noted. City Manager explained that the insurance claim involved a Seward Service garbage truck and the refuse contractor's insurance carrier was handling the matter. 4TH OF JULY CREEK AREA: C. City Manager reported that bids for the of-way for the Nash Road extension to the 4th of July area had been opened at 2:00 p.m. that afternoon. He follows: clearing of the right- Creek industrial park quoted the bids as Engineer's estimate Stephan & Sons METCO $ 167.500 640,800 189,650 City Nanager stated that even though the low bid was 13 percent higher than the engineer's estimate, R & M Consultants had recommended award of the bid to METCO at this time. In answer to ~ question, City Engineer Small appeared from the audience and stated one reason for the disparity in the bids might be that the contractor would receive the value of the timber removed from the right-of-way and the local bidder had walked the project and taken the timber value into account. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to award METCO the clearing contract for the 4th of July road for the sum of $189,650. ELECTRIC: I WATERFRONT TRACTS: TELEVISION: I AK, ST OF: I PAGE 123 REGULAR MEETING - AUGUST 11, 1980 VOLUME 19 XI. NEW BUSINESS: (cont'd) D. City Manager stated the administration would like Council approval to assign additional tasks relative to the Seward electric system improvements to the current contractor, Fischbach and Moore. A map was post@d which displayed the seven areas which would be addressed in the contract change order, He stated the City would be providing the materials and Fischbach and Moore had submitted an estimated labor cost of $288,460.58, which sum included a 30 percent contingency. City Engineer Small appeared and stated that due to the late sale of the City's electrical bonds, the City did not have time to advertise for bids for the additional work and urged Council to approve the change order with Fischbach and Moore in order to facilitate the timely progression of the project. In answer to a question, City Manager confirmed that the cost estimate was well within the City's budget for the expenditure of the $1,700,000 in bond monies for the electric project. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to authorize the administration to negotiate with Fischbach and Moore to complete additional line work, for a figure not to exceed $288,460.58. E. City Manager distributed "Management/Service Agreement" for the 4th Avenue Dock as proposed by Albert Kawabe and dated July 28, 1980. The Manager requested the Council schedule a work session to review Kawabe's proposal for management of the City-owned 4th Avenue Dock. Hugli directed the City Clerk to contact the two absent Councilmembers and try to schedule a meeting the following week which all members could attend. F. August 4, 1980, letter from Rock Associates, Inc., proposing to provide cable television service to Seward residents, was distributed. *CITY ATTORNEY JARRELL ARRIVED AT THIS TIHE. City Manager reported that the State Legislature had recently enacted a law which had the effect of disallowing the City regulation of a cable television system. City Attorney stated if the cable system's operation and fees were to be regulated, the Alaska Public Utilities Commission (APUC) would have to become involved. And, he stated if the APUC regulated television in Seward it would also have the power to regulate the other City utilities which were presently exempt from the Commission's regulations. City Manager recommended the Council seriously consider the maintenance of Channel 9 and the legal ramifications of discontinuing Channel 9 service and transferring a captive television audience to a cable television system with fees substantially higher than the City charge for limited television service. In answer to a question, City Manager stated the City could provide the same stations as offered by Rock Associates, excepting Channels 5 and 13, for an estimated installation cost of $220,000 to $250,000 and the system operating to Mile 7 could be maintained with a one percent sales tax, or a $16 per month user fee based on 500 customers located within the city limits of Seward. Following discussion, Hugli directed the City Attorney to research the ramifications of maintaining Channel 9 versus turning it off and the various legal questions involved in granting a franchise to a cable television company and the regulation of such, He stated the matter would be discussed in more detail at the following week's work session. XII. CITY MANAGER REPORTS: A. July 29, 1980, letter from the Alaska Agricultural Action Council regarding discussion of a permanent grain export terminal and inviting City representation at an August 14 meeting in Anchorage, was noted. City Manager stated the administration wOl'ld be represented at the meeting. LAUBNER ADDN: B. City Manager inf0rmed Council that in response to the City's inquiry, Ralph Moody had vOiC,",l continued interest in the purchase of Ci ty- owned Lots 22 and 23, Block In, Laubner Addition. He asked for Council approval to proceed with the ordering of an appraisal report and listing of the property for sale by the sealed bid prncess. It was moved by Cripps, seconded by Leer and unanimously carried by all those present to proceed with the sale of Lots 22 and 23, Block 10, Laubner Addition. I Regarding the City's sale of Lot 4, Block 9, Cliff Addition, City Manager reported receiving a citizen inquiry of whether the City was willing to finance the purchase of the lot. Following discussion, Hugli, with Council consent, stated the City would not finance the purchase of the parcel. , :-1 PAGE 124 REGULAR MEETING - AUGUST 11, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: A. Gillespie stated he had recently been appointed to the Borough's Economic Development Committee (EDC) and the EDC was requesting each City to submit a project priority list. City Manager stated expansion of the City's water system would be the number one priority item to submit to the EDC at this time. B. City Manager spoke on the expansion plans for the Small Boat Harbor and, specifically, the plans for a dry storage boat harbor, He stated he had discussed the project with Don Statter of the State Division of Waters and Harbors and Statter had assured him that the project would qualify for funding by use of the $2 million earmarked for Seward harbor expansion as approved by a 1978 State bond issue. With Council consent, City Manager requested permission to proceed with further investigation of the dry storage boat harbor. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. meettn~'was adjourned at 9:10 p.m. , ,"\ I 1/'\ i I \ J I . \ l ) i" - b. ...!, I ~aymo~ Hti'g'1i v j Mayor " ;j' ---------------------------------------------------------------------------- PAGE 124 REGULAR MEETING - AUGUST 25, 1980 VOLUME 19 I. CALL TO ORDER: The August 25, 1980, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps and Gillespie (Absent, with Council consent, were Councilmembers Leer, Soriano and Swartz) Present also: City Engineer Small and City Clerk Shanley IV. APPROV AL OF MINUTES: It was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to approve the regular meeting minutes of August 11, 1980, as written. ~ _, J PAGE 125 REGULAR MEETING - AUGUST 25, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Engineer requested the following additions be made to the consent calendar: I 3. August 18, 1980, invoice from Fischbach and Moore of Alaska in the amount of $108,908.32 for work performed on the Seward electrical system substation - approve for payment and file 4. August 20, 1980, invoice from Wells Built Homes in the amount of $7,i99.97 for work performed on the Seward electrical system substation - approve for payment and file City Engineer requested the following additions be made to the regular meeting agenda: XI. City Manager Reports: C. Jail contract between the City of Seward and the State of Alaska D. Utilities computer program contract E. Marathon Hydro-development project F. ~ity Hall weatherproofing I Campbell requested postponement of item E. due to the fact that the project involved the hospital and, as hospital administrator, he would have to abstain from a vote on the issue. City Engineer distributed "Scope of Work/ Costs" on the project as received from Trans-Alaska Engineering. He stated the bid of $41,450 was judged too high by the administration and recommended the City not act on the matter at this time. Hugli, with Council consent, stated the item would not be added to the evening's agenda. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve the consent calendar and regular meeting agenda as amended and the following actions were taken: 1. August 1980 letter from the Kenai Peninsula Convention Bureau regarding September 19-20 meeting, was noted for information only. LEG REPS: 2. August 18, 1980, telegram from W.D. Overstreet regarding a special session of the Legislature, was noted for information and filed. ELECTRIC DEPT: 3. August 18, 1980, invoice from Fischbach and Moore of Alaska, in the amount of $l08,908.32 for work performed on the Seward electrical system substation, was approved for payment and filed. ELECTRIC DEPT: 4. August 20, 1980, invoice from Wells Built Homes Inc., in the amount of $7,799.97 for work performed on the Seward electric system substation, was approved for payment and filed. I VI. PUBLIC HEARINGS: None VII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. lr:lh PAGE 126 REGULAR MEETING - AUGUST 25, 1980 VOLUME 19 VIII. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: None IX. UNFINISHED BUSINESS: WATERFRONT A. "Management/Service Agreement" for operation of the 4th Avenue TRACTS: Dock, as proposed by Albert Kawabe and dated July 28, 1980, was noted. Hugli confirmed the item had been a topic for discussion at the Council work session of August 21, 1980. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to direct the City Manager to negotiate a management/service agreement between the City of Seward and Albert Kawabe for the 4th Avenue Dock. TELEVISION: B. Rock Associates Inc., letter of August 4, 1980, regarding cable television service for the Seward area, was noted. Hugli commented that the item had been discussed at the Council work session of August 21, 1980. Campbell reported the Council wished to reject Rock Associates' proposal and to request proposals from various firms for the service. Further, he stated that the City was interested in investigating the possibility of providing such a service to the local residents. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to authorize the City Manager to correspond with Rock Associates Inc., notifying them of the City's decision regarding their proposal for cable television service. Hugli requested the City Clerk provide a copy of the letter to each Councilmember. 4TH OF CREEK AREA: LOUISIANA PACIFIC: SEWAGE TRTMT: POLICE DEPT: X. NEW BUSINESS: JULY A. City Engineer gave a brief verbal status report on the Phase I contract for the Nash Road extension project and the engineering as performed by R & M Consultants. He requested Council approval to enter into a Phase II contract with R & M for continuation of the project through the bid document stage. He confirmed the City had received R & M's time and materials bid for Phase II at $l65,520. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to enter into the Phase II contract with R & M Consultants at a price not to exceed :;>165,520. XI. CITY MANAGER REPORTS: A. City Engineer reported that in 1979 the City of Seward had entered into an agreement with Louisiana Pacific for the purchase of the LP diesel generator within 30 days following the sale of the electrical system revenue bonds. He stated the bonds had been sold and the balance due and owing LP was $103,l52.77. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried by all those present to finalize the settlement with LP for the generator purchase at $103,152.77. B. City Engineer reported the administration was requesting, on behalf of Arctic Environmental Engineers, a change order for the sewage treat- ment project in the amount of $86,494.85 for the purchase of higher quality pipe than originally bid. Following discussion, it was moved by Gillespie, seconded by Campbell and unanimously carried by all those present to approve the project change order on the sewage treatment plant pipe for the sum of $86,494.85. C. City Engineer reported on the renewal of the jail contract between the City of Seward and the State of Alaska for fiscal year 1981 at the State's proposed rate of $100,034. He confirmed that the contract rate was some $7,000 lower than the previous year's; however, he stated the Police Chief and City Manager had confirmed that the budget reduction was acceptable. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to accept the jail contract for $100,034. PAGE 127 REGULAR MEETING - AUGUST 25, 1980 VOLUME 19 XI. CITY MANAGER REPORTS: (cont ' d) FINANCE DEPT: I D. City Engineer stated the administration was requesting Council approval for the purchase of a specialized computer program to handle the City's utility billing, at a cost of $3,500. Finance Director Joseph Gale appeared from the audience and spoke and answered questions on the computer program. He stated a specialized program was necessary due to the sale computation, the required interface into the City's main accounting system, the numerous utility billings which could not be handled by a stock program, and the various detailed reports required by the City. He reported he had received quotes from three individuals and the low bid had been received from Glenn Hargen at $3,500. Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to purchase the computer program for the City utility billing as developed by Glenn Hargen at $3,500, monies to be allocated from the Mayor's contingency fund. CITY HALL: E. City Engineer distributed August 20, 1980, proposal from Alaska Builders Inc., for weather-proofing of the City Hall building at a cost of $5,960. He reported that the bid received was lower than his estimated costs if City employees were to do the work. He confirmed that this was a sole source bid due to the fact that the only other contractor in town was not available to do the project at this time. In answer to a question from Gillespie, City Engineer stated the administration had elected not to go to bid for the project because it was felt that the development of the necessary bid documents and specifications would drive the cost of the project to such a level as to make it economically unfeasible. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to accept the Alaska Builders Inc. bid for the recaulking of City Hall for the sum not to exceed $5,960, to be completed no later than October 1, 1980. XII. COUNCIL DISCUSSION: None I XIII. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XIV. ADJOURNMENT: ~ing was r\f'.u.:~c <;:: ;."'<~ cS-:'} ,I G r y 1:: Vi' " ... / '\ ....... "" .... .... .~ adjourned at 8:17 p.m. / /'" / J ( '- L. Hugli (City Seal) I 1 :X" , , 4TH OF JULY CREEK AREA: ELECTRIC DEPT: CLIFF ADDN: PAGE 128 REGULAR MEETING - SEPTEMBER 8, 1980 VOLUME 19 I. CALL TO ORDER: The September 8, 1980, regular meeting of the Seward City Council was called to order at 7:35 p.m. by Vice-Mayor Gillespie. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Vice-Mayor Gillespie; Councilmembers Campbell Leer and Soriano (Absent, with Council consent, were Councilmembers Cripps, Hugli, Swartz) Present also: City Manager Johnson, City Engineer Small and Deputy City Clerk Ledet IV. APPROVAL OF MINUTES: It was moved by Campbell, seconded by Leer and unanimously carried by all those present to approve the regular meeting minutes of August 25, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested the following item be deleted from the regular meeting agenda: XI. NEW BUSINESS: B. Claim for Damages in the amount of $119.73 as submitted on September 2, 1980, by Judith Ledet for vehicle damage allegedly caused by sewer line cover on 3rd Avenue Following discussion, it was moved by Campbell, seconded by Leer, and unani- mously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: 1. August 29, 1980, telegram from Mayor Hugli to Dow Chemical USA, was noted for information only. 2. August 7, 1980, Invoice No. 051075-2 from R & M Consultants, Inc., for Nash Road extension survey, design and construction manage- ment relative to the 4th of July Creek Industrial Park development, totaling $50,315.45, was approved for payment and filed. 3. August 21, 1980, Invoice No. 6109-0058 from WESCO for equipment for the Seward Electric System improvements (substation) totaling $51,870 was approved for payment and filed. VI. BOROUGH ASSEMBLY REPORT: Councilmember Campbell gave a verbal report on the September 2, 1980, Kenai Peninsula Borough Assembly meeting. VII. PUBLIC HEARINGS: A. Public hearing was opened on the proposed sale of Lot 4, Block 9, Cliff Addition by the sealed bid process and "Notice of Public Hearing" as posted and published in the local newspaper two times, was noted. City Manager explained that the subject property was encroaching onto the roadway and requested permission from the Council to replat the property by taking 50' from the East boundary of Lot 4 - presently existing roadway. He stated that the property had beenappraised at $1.10 per square foot, which made the 1447.28 square feet the City wanted to keep as right-of-way worth $1592. He suggested that any bid received be reduced by the $1592 amount but that $800 be charged for survey fees, thereby reducing the bid/s by a sum total of $792. Vice-Mayor Gillespie opened the only bid received from CLIFF ADDN: (cont'd) I I SEWAGE TREATMENT/ ELECTRIC DEPT: SEWAGE TREATMENT ELECTRIC IEPT: 4TH OF JULY CREEK AREA: PAGE 129 REGULAR MEETING - SEPTEMBER 8, 1980 VOLUME 19 VII. PUBLIC HEARINGS: (continued) John Anderson III, dated August 18, 1980, and read the bid price of $10,010. No one appeared in order to be heard and the public hearing was closed. City Manager requested authority to negotiate the sale of the parcel with sole bidder Anderson, taking into account the right-of-way encroachment. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to accept the bid based on the administration's recommendations for the easement and deducting from the amount of $10,010 the $792, making it $9,218. VIII. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience in order to be heard. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: None X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. August 22, 1980, letter from Thomas Leong regarding the location of a fish freezer plant in Seward was noted. City Manger stated that the administration anticipated several requests for development and would turn then over to a consulting firm which would in turn, advise which proposal would be in the City's best interest. Gillespie, with Council consent, requested that the administration write and ask Thomas Leong to make a presentation to Council regarding the fish freezer plant. XII. CITY MANAGER REPORTS: A. City Manager requested a change order for Brown Construction's work on the sewage treatment project in order to move a sewer line from the Seventh Avenue beach area to allow for development in the area should the "high risk designation" be removed. The change order would also include the removal and relocation of electrical lines. He stated that the change order was for $42,000 and the City's cost would be $5,250, the balance to be paid' from State and Federal funding. Following discussion, it was moved by Soriano, seconded by Leer, and unanimously carried by all those present to accept the bid from Brown Construction for $42,000 for removing the transmission lines on the Seventh Avenue area and replacing the street lights on the opposite side of the street so that the sewer line could be placed next to the street. B. City Manager requested payment of Brown Construction's first request for payment for $695,281.71, for the sewage treatment plant. He stated that it would go to the EPA for approval before the City paid the bill. Following discussion, it was moved by Soriano, seconded by Campbell and unani- mously carried by all those present to authorize the administration to make the payment of $695,281.71 to Brown Construction. C. City Manager requested payment to Fischbach and Moore's Payment Estimate No.4 in the amount of $217,859.18 for work relating to the electrical system substation for the period August 18-31, 1980. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Fischbach and Moore's $217,859.18 invoice. D. City Manager requested payment of $54,047.34 to Century-Quadra for the August 26, 1980, billing for services incurred on the 4th of July Creek proj ect. He explained that the money would be reimbursed by the Department of Transportation. In answer to a question from Gillespie, Small explained that the City was receiving weekly progress reports from Century-Quadra and he felt the information received was very useful and informative to potential developers. It was moved by Soriano, seconded by Leer, and unanimously carried by all those present to approve payment of $54,047.34 to Century-Quadra. I '.i ) , 1 PAGE 130 REGULAR MEETING - SERTEMBER 8, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (continued) HOSPITAL: E. City Manager requested Council forgive the June 10, 1980, City Invoice No. 11502 billed to Seward General Hospital in the amount of $2,422.58, for the City administrative cost in preparing an energy grant application. Following discussion, it was moved by Soriano, seconded by Leer and unanimously carried by all those present to forgive Seward General Hospital the $2,422.58 as per Invoice No. 11502 from the City of Seward. F. City Manager reported on various meetings with the Alaska Railroad, Dow Chemical and VECO regarding industrial development in the Seward area. G. City Manager stated that he had been talking to Kent Dawson who had been the lobbyist for the City during the 1980 legislative session and he was putting together a proposal package for the coming 1981 legislative session. TERMINAL ADDN: H. City Manager requested authority for statements of qualifications from consulting engineering firms for replatting and resubdividing of the Terminal Addition. He stated that with all the proposed development in the area the City should start thinking about additional housing. He further stated that it would benefit the City because the revenue generated from property sales would be used for upgrading the water system to accommodate the additional housing. It was the general consensus of the Council that the administration begin advertising for a consulting firm for the Terminal Addition. I, City Manager noted receipt of a proposed agreement for Sale of Power between Chugach Electric Association and the City. He stated that the 10-year contract would have to approved by the City Council and CEA's Board of Directors. Following discussion, City Manager stated the matter would be discussed in more detail at the next Council meeting. XIII. COUNCIL DISCUSSION: None XIV. CITIZENS' DISCUSSION: None XV. ADJOURNMENT: ,~ was adjourned at 8:18 p.m. {/ I I I PAGE 131 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 I. CALL TO ORDER: The September 22, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Cripps, Gillespie, Leer, Soriano and Swartz (Absent, with Council consent, was Councilmember Campbell) Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to approve the regular meeting minutes of September 8, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the regular meeting agenda: VIII. Citizens' Discussion: (With prior notice only) A. Thomas Pindelski of Price Waterhouse and Company - presentation of the audit reports for the City of Seward for the fiscal year ending June 30, 1980 IX. Ordinances and Resolutions: C. Resolutions: 1. Proposed Resolution No. 80-48, approving a contract between the City of Seward and Chugach Electric Association for the purchase of wholesale electrical power City Manager requested that the following additions be made to the consent calendar: 3. September 19, 1980, bill from Hughes, Thorsness, Gantz, Povell and Brundin for legal services rendered April - September 1980 relative to Lewis vs. City of Seward, in the amount of $935 - approve for payment and file 4. July 24, 1980, bill from Totem Ocean Trailer Express, Inc. in the amount of $7,938.40, relative to the Electric System improvement project - approve for payment and file 5. September 15, 1980, Invoice No. 10249 in the amount of $7,344.45 and Invoice No. 10250 in the amount of $8,062.47 from CH2M Hill, for professional services performed relative to the Electric System improvement project - approve for payment and file ,/ 6. September 22, 1980, invoice from Metco in the amount of $27,000 billed as partial payment for work performed on clearing the road right-of-way for access to the 4th of July Creek area - approve for payment and file .., r') J) ~ ,;, - , ELECTRIC DEPT: C ATTORNEY: C ATTORNEY: ELECTRIC DEPT: ELECTRIC DEPT: 4TH OF JULY CREEK AREA: FINANCE DEPT: PAGE 132 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 7. September 18, 1980, bill from First Southwest Company in the amount of $6,487.47 for professional services rendered relative to the $1,700,000 City of Seward GO bond issue, Series 1980, for the Electric System improvement project - approve for payment and file It was moved by Cripps, seconded by Leer and unanimously carried by all those present to hold an executive session regarding personnel. Hugli, with Council consent, scheduled the executive session to immediately follow "VIII. Citizens' Discussion". Following discussion, it was moved by Swartz, seconded by Leer and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: 1. Invoice No. DS-6l09-00057 from WESCO, dated June 30, 1980, in the amount of $10,774 for reclosers for the Seward Electric System improvement project, was approved for payment and filed. 2. Bill received September 17, 1980, from Ranald H. Jarrell for legal services rendered during the month of August, totaling $4,969.70, was approved for payment and filed. 3. September 19, 1980, bill from Hughes, Thorsness, Gantz, Powell and Brundin for legal services rendered from April through September relative to Lewis vs. City of Seward, in the amount of $935, was approved for payment and filed. 4. July 24, 1980, bill from Totem Ocean Trailer Express, Inc. in the amount of $7,938.40, relative to the Electric System improvement project, was approved for payment and filed. 5. September 15, 1980, Invoice No. 10249 in the amount of $7,344.45 and Invoice No. 10250 in the amount of $8,062.47 from CH2M Hill for professional services performed relative to the Electric System improvement project, was approved for payment and filed. 6. September 22, 1980, Invoice No. 4941 from Metco in the amount of $27,000, billed as partial payment for work performed on the clearing of the access road right-of-way to the 4th of July Creek area, was approved for payment and filed. 7. September 18, 1980, bill from First Southwest Company in the amount of $6,487.47 for professional services rendered for the $1,700,000 City of Seward GO bond issue for the Electric System improvement project, was approved for payment and filed. VI. BOROUGH ASSEMBLY REPORT: None VII. PUBLIC HEARINGS: None I PAGE 133 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Thomas Pindelski of Price Waterhouse and Company appeared from the audience and distributed "City of Seward Report to Management, September 5, 1980," and "City of Seward Financial Statements and Additional Information, June 30, 1980" and spoke and answered Council questions on the audit of the City's financial records for the fiscal year ending June 30, 1980. EXECUTIVE SESSION: Council recessed the regular meeting at 8:10 p.m. in order to meet in executive session regarding a personnel matter; the regular meeting reconvened at 8:27 p.m. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: LOC ORGS/ 1. Copies being made available to the public, Hugli noted MARATHONby title only proposed ordinance regarding housing and urban development ADDN/ powers relative to the senior citizens' housing project in the Marathon ORDS: Additio~ entitled: ORDS: I P&Z/ ORDS: I An Ordinance Regarding Housing and Urban Development Powers, Repealing Ordinance No. 475 City Manager commented that Ordinance No. 475 was necessary for the construction of the ASHA-funded senior citizens' housing project and now that the project was complete the ordinance could be repealed. It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to introduce proposed Ordinance No. 490, with a public hearing scheduled for the meeting of October 27, 1980. 2. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding the amendment of that portion of the City Code dealing with the administrative departments, entitled: An Ordinance Relating to City Administrative Departments, Repealing Article IV, Sections 2-47 Through 2-65, and Creating Sections 2.40.010 Through 2.40.560 of the Seward City Code City Manager stated the proposed ordinance was the product of the administration's continuing effort to revise and update the current City Code. He suggested that the ordinance be introduced, scheduled for public hearing on October 27, and be reviewed and discussed by the new Council at the October 13 meeting. Following discussion, it was moved by Soriano, seconded by Leer and unanimously carried by all those present to introduce proposed Ordinance No. 491, with a public hearing scheduled for the meeting of October 27, 1980. Hugli directed the City Clerk to schedule the ordinance for Council discussion at the regular meeting of October 13. 3. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding the amendment of that portion of the City Code dealing with the City Advisory Planning and Zoning Commission, entitled: An Ordinance Relating to the Seward Advisory Planning and Zoning Commission, Repealing Article V, Sec. 2-66 Through 2-70 and Article VI, Sec. 2-71 and 2-72, and Creating Sections 2.50.010 Through 2.50.040 of the Seward City Code City Manager suggested the proposed ordinance be handled in the same manner as the previously-introduced ordinance. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to introduce proposed Ordinance No. 492, with a public hearing scheduled for the meeting of October 27, 1980. Hugli directed the City Clerk to schedule the ordinance for Council discussion at the regular meeting of October 13. t I; ,~ J. ,')'." PAGE 134 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) A. Ordinances for Introduction: (cont'd) ORDS: 4. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding the amendment of that portion of the City Code dealing with ordinances and resolutions, entitled: An Ordinance Relating to Legislative Action, Repealing Article VII, Sections 2-73 Through 2-80, and Creating Sections 2.60.010 Through 2.60.090 of the Seward City Code City Manager commented that the proposed ordinance amended the procedure whereby ordinances and resolutions were adopted by Council. He urged the Council to review the provisions of the proposed ordinance closely. Following discussion, it was moved by Soriano, seconded by Leer and unanimously carried by all those present to introduce proposed Ordinance No. 493, with a public hearing scheduled for the meeting of October 27, 1980. Hugli directed the City Clerk to schedule the ordinance for Council review at the regular meeting of October 13. B. Ordinances for Public Hearing and Enactment: None C. Resolutions: ELECTRIC 1. Copies being made available to the public and distributed to DEPT/ Council, Hugli read by title only proposed resolution approving an agreement between RES: the City and Chugach Electric Association (CEA) for the City's purchase of wholesale power, entitled: A Resolution Approving the Power Sales Contract Between the City of Seward and Chugach Electric Association City Manager referred Council to item A. of "X. Unfinished Business" which was a draft copy of the "Agreement for the Sale of Wholesale Power" between the City and CEA. He stated the City administration was pleased with the provisions of the contract and urged Council approval. In answer to a question from Leer, City Engineer and Utilities Manager Tom Small appeared from the audience and confirmed that the contract did not bind the City to purchase power solely from CEA. Hugli praised the administration's efforts, stating that when City Manager Johnson had been hired there had been a list of 91 items which the previous administration had not completed. He stated the consummation of a contract with CEA was the last item on the list and all were now complete. Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-48. X. UNFINISHED BUSINESS: A. See IX. C. 1. above. XI. NEW BUSINESS: HARBOR: A. "Land Lease Between City of Seward and The United States of America" for the lease of approximately 7500 square feet in the Small Boat Harbor area for the Coast Guard dispatch building, was noted. City Manager commented that the requested lease was a renewal of an existing lease document, with a rental rate increase to $1,500 per year and, if approved, the lease would extend to September 30, 1984. Gillespie spoke in support of the Coast Guard base in Seward and requested the City administration discuss the possibility of the Coast Guard providing personnel housing in the Seward area. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to extend the lease. '. PAGE 135 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: LEG REPS: A. City Manager requested permission to enter into a contract with Kent Dawson of Dawson and Associates, lobbyists. He stated the firm had done an excellent job for the City during the 1980 legislative session and he wished to engage Dawson for the 1981 session, as well as pre-session work, at a total contract price of $52,000. Gillespie questioned why the firm would have to be hired prior to the convening of I the Legislature in January of 1981. In answer, City Manager stated that all the State departments were currently preparing their budgets for presentation to the Legislature and the Governor, and now was the time lobbyists made sure funds were allocated for their clients. City Manager confirmed that City funds were available in the Mayor and Council contingency fund for the lobbyist contract. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to authorize the City Manager to enter into a contract with Dawson and Associates for lobbying on behalf of the City of Seward, in an amount not to exceed $52,000. JESSE LEE HOME: B. City Manager distributed letter dated September 19, 1980, from Seward Elks Lodge No. 1773, proposing to acquire Jesse Lee Home from the City, at a nominal price, for the location of its fraternal lodge. In answer to a question from Cripps, City Manager confirmed the administration had not received any additional information from the Seward Council on Alcoholism and Community Services regarding its earlier proposal to locate a summer college at the site. He stated the City Council had appointed a committee to review the matter and present a recommendation on whether the site should be sold or if the buildings should be razed and the land sold for residential use; however, the committee had never held a meeting in order to carry out its task. City Engineer Tom Small appeared from the audience and stated the City might wish to hire an architect to assess the structure regarding its ability to be remodelled to meet existing building and fire codes. Following I discussion, Hugli, with Council consent, stated the matter should be a priority item for the new Council and directed the City Clerk to place the item on a Council agenda once the new members had been seated. 4TH OF CREEK AREA/ A R R: JULY C. City Manager distributed and read in full letter dated September 16, 1980, from F. H. Jones, General Manager of the Alaska Railroad, regarding plans for the exportation of coal through the Port of Seward. Letter dated September 16, 1980, as received from Lewis Novasio, President of the Montana Resource Development Corporation, relative to the Corporation's negotiations with The Alaska Railroad for a coal export operation based in Seward, was also noted. City Manager reported that a temporary export facility would be constructed at this time but plans were being formulated for the location of a permanent facility at the 4th of July Creek industrial park. He remarked that Mr. Novasio had requested 150 acres of land be made available for the export operation, which would include a dock, fuel loading facility, tank farm and railroad spur, for the anticipated exportation of four to six million tons of coal per year. I City Manager directed the Council's attention to a map of the 4th of July Creek area and referred to the map in locating the City land which would be available for industrial development. He stated that the creek would have to be moved slightly to the south and kept confined by means of a dike system. He suggested that the City's southern parcel would be where VECO would choose to locate and the northerly parcel, containing approximately 80 acres, be made available to The Alaska Railroad and the Montana Resource Development Corporation. He reported that Mr. Novasio had requested Council make a commitment to make the land available for the export facility and further suggested that Council consider granting the parcel with a lease which contained an incentive rate such as that considered with VECO. COUNCILMEMBER SORIANO DEPARTED THE MEETING AT 9:15 P.M. 1 .J'" . ~ f) PAGE 136 REGULAR MEETING - SEPTEMBER 22, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) 4TH OF JULY CREEK AREA! A R R: (cont'd) Gillespie spoke against granting an incentive to every industry which wished to locate in the 4th of July Creek area and stated that only the first major industry to locate in the area should be granted a low rental rate. Following discussion, it was moved by Swartz, seconded by Leer and unanimously carried by all those present that the City Council will make available to the Montana Resource Development Corporation acreage not to exceed 80 acres; and, further, will lend all their assistance in negotiating with the Montana Resource Development Corporation and adjoining land owners for additional acreage, with an incentive included at $1 per year for 10 years and then a rental rate based on fair market value. N HARBOR SUB: D. City Manager dist.ributed letter dated September 22, 1980, which he had written in response to a letter received August 19, 1980, from Mr. J.C. Torgerson in which Mr. Torgerson had addressed numerous issues regarding his property in the North Harbor Subdivision which was adjacent to City land and had asked if the City was interested in purchasing Lot 1, Block 1, and Lot 1, Block 2, North Harbor Subdivision. Following discussion, City Manager stated he would contact Mr. Torgerson and ask at what price he would offer the lots for sale. ELECTRIC DEPT: E. City Manager requested permission to contract for the use of a hydroax and operator for clearing the City right-of-ways. He stated the expense, estimated not to exceed $9,000, was a justifiable expenditure of the electrical utility. Following discussion, it was moved by Swartz, seconded by Cripps and unanimously carried by all those present that the hydroax be leased, with an operator, not to exceed $9,000 from the electric utility budget. F. City Manager reported that if there were no objections he would be traveling to Everett, Washington, on September 25 and 26 in order to see the dry harbor which is similar to the facility proposed for Seward. G. City Manager reported that a "Meet the Candidates" night had been scheduled at 7:30 p.m. on Tuesday, September 30, 1980, to be held at the high school cafeteria. XIII. COUNCIL DISCUSSION: C COUNCIL: A. City Clerk requested Council schedule a date and time for the canvass of the October 7 municipal election. Following discussion, Hugli, with Council consent, scheduled the special Council meeting for the canvass of the election on Wednesday, October 8, 1980, commencing at 4:00 p.m. B. In answer to an inquiry from Swartz, City Manager confirmed he would get a price estimate on the installation of lights in the alleys. C. In response to an inquiry from Gillespie, City Attorney spoke and answered Council questions on including a provision in City contracts which would require successful bidders to hire from the local work force. City Attorney stated there were serious legal problems with such a local hire contract clause. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. adjourned at 10:03 p.m. !~ , ' --V\ '> _. RaymOnd'j" 'Hugh Mayor \ , 1~ '. I 't , ,"\. i~ L ) I ELECTIONS/ C COUNCIL: I I PAGE 137 SPECIAL MEETING - OCTOBER 8, 1980 VOLUME 19 I. CALL TO ORDER: The October 8, 1980, special meeting of the Seward City Council was called to order at 4:00 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli, Councilmembers Cripps, Gillespie, Soriano and *Swartz (Absent, with Council consent, were Campbell and Leer) Present also: City Manager Johnson, City Clerk Shanley and Deputy City Clerk Ledet IV. CANVASS OF OCTOBER 7, 1980, REGULAR ELECTION AND DECLARATION OF RESULTS: City Clerk distributed a tally of the unofficial results of the October 7, 1980, Regular City Election, read the total number of votes cast for each Council candidate, and confirmed that 477 ballots had been cast with 471 being counted by the election boards; the remaining ballots were questioned ballots to be considered by the Canvass Board. The Clerk displayed the poll books and tally sheets for Seward Precinct No. 1 and 2 for review by the Board. *COUNCILMEMBER SWARTZ ARRIVED AT THIS TIME AND HEREAFTER TOOK PART IN THE MEETING. The Clerk distributed a list bearing the names of those individuals casting questioned ballots on Election Day. She recommended that the questioned ballots of James W. Allen, Bob E. Lloyd, Virginia Randazzo and Mitchell B. Seavey, as cast in Seward Precinct No.1, be rejected. She confirmed that Lloyd and Seavey were registered voters in other voting precincts but had not filed the required change of address card in order to have their names listed as registered voters in the Seward precinct. She stated James Allen and Virginia Randazzo had certified to the fact that although they were registered voters in the Seward precinct they had been living in the Bear Creek precinct. The questioned ballots cast in Seward Precinct No. 2 by Gary B. Jones and Linda H. Jones were recommended rejected because the Clerk stated that neither was listed as a registered voter in the State of Alaska. Following discussion, it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to accept the City Clerk's recommendations on the questioned ballots (reject all six ballots). The Clerk distributed a list bearing the names of the 32 electors who had requested absentee ballots. She stated the ballots issued to Margaret D. Lechner of Seward Precinct No. 1 and David W. Gale of Seward Precinct No. 2 had not been returned in time for the canvass. She reported that Seward Precinct No. 2 registered voters Celeste A. Thorne and Kelly Rae Lake had requested absentee ballots; however their mailed requests had not been received by the Clerk's office prior to the September 30 deadline and ballots had not been issued to the two requesting voters. The Clerk confirmed that the 30 absentee ballots that were in her possession appeared to be in order and recommended that all be accepted for counting by the Canvass Board. Following discussion, it was moved by Swartz, seconded by Cripps and unanimously carried by all those present to count the 30 absentee ballots. The absentee ballots as cast by the following electors were removed from their outer envelopes, shuffled, removed from the blank white inner envelopes and read aloud by Hugli with Soriano observing and Gillespie and Cripps conducting the tally: ! ','V '. \,' ELECTIONS/ C COUNCIL: (cont'd) Write-ins PAGE 138 SPECIAL MEETING - OCTOBER 8, 1980 VOLUME 19 IV. CANVASS OF OCTOBER 7, 1980, REGULAR ELECTION AND DECLARATION OF RESULTS: (cont'd) Precinct No. 1 ANDERSON, Molly J. CHRISTIANSEN, Judith A. CROWLEY, Robert T. GILLESPIE, Thomas W. LANDENBURGER, Eric L. LEWIS, Ronnie L. LOWMAN, Richard A. MAl, Donald L. MAYS, Mildred E. McANERNEY, W. Lee McCABE, Joanne M. McCABE, Robert J. VANEK, Frank J. ZENTMIRE, Delmar R. ZENTMIRE, Richalyn J. Precinct No. 2 BOTTCHER, Ethel C. DUNHAM, Beverly C. HODSON, Frances C. HODSON, Neville F. LEE, Linda S. McHENRY, Ruth E. MEEHAN, Michael J. MORGAN, Jacquelyn J. PAUL, Judy M. PAUL, Augustus John III SEATER, Elwood SEFTON, James L. STANDAFER, Arlene M. STANDAFER, Stanley VIRCHOW, Jerry L. The totals of the absentee ballots were added to the totals of those ballots cast and counted on October 7 by the election boards. The City Clerk read the results of the combined totals as follows and it was moved by Gillespie, seconded by Cripps and unanimously carried by all those present to approve the totals, declaring the election of Charles H. Soriano, William C. Vincent and Karen A. Swartz to the City Council: CITY COUNCIL Two Year Term (Three to be Elected) CHARLES H. SORIANO WILLIAM C. VINCENT KAREN A SWARTZ Pat O'Brien Lorna Lohse Mary F. Lewis Thomas G. Reese Floyd Ainsworth Boots Anderson Sam Banic Carol Benoit Gary Horrell Bernard Hulm Robert Valdatta Loyd Welch TOTAL BALLOTS CAST TOTAL BALLOTS COUNTED V. ADJOURNMENT: PRECINCT NO. 1 94 83 79 65 36 45 38 1 1 1 167 163 PRECINCT NO. 2 ABSENTEE TOTALS 186 148 149 123 88 69 68 1 12 16 16 21 7 9 3 292 247 244 209 131 123 109 1 1 2 1 1 1 3 1 1 1 1 1 2 1 310 308 30 30 507 501 The eeting was adjourned at 4:30 p.m. O~ SFJ.;~ _\ " . ~ .<1 -." . ~"" " ',,'1 ' I 1\1d,:~t:;' (..: ..:;),'),\;~\ \ 'f~ '" ~ ,V". ; j' ~,-.) JJ _ G . '^YL"",--,' G )' }LULc J nne: E. ,Shanley. . ., Ci~( C'le~k d ~" (Ci\.~.ab I: '. ,,:t' .... ~. ',. , L -:, ,_,""I! i \,)F ;. ';<,' , ;7r-" I C COUNCIL: I I BUDGET: LOC ORGS: : ',', I PAGE 139 REGULAR XEETING - OCTOBER 13, 1980 VOLUME 19 1. CALL TO ORDER: The October 13, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Cripps, Gillespie, Soriano and Swartz (Absent were Councilmembers Campbell and Leer) Present also: City Manager Johnson, City Attorney Jarrell, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve as written the regular meeting minutes of September 22, 1980, and the special meeting minutes of October 8, 1980. V. SEATING OF NEWLY-ELECTED COUNCILMEMBERS: Newly-elected Councilmembers Charles H. Soriano, Karen A. Swartz and William C. Vincent appeared, took the oath of office as administered by the City Clerk, were handed "Certificates of Election" by the Mayor, took their seats on the dais and hereafter took part in the meeting. VI. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following items be withdrawn from the regular meeting agenda: X. Ordinances and Resolutions: A. Ordinances for Introduction: 1. Proposed Ordinance No. 494 relating to the regulation of the Port of Seward XIII. City Manager Reports: A. Fourth Avenue Dock License Agreement City Manager requested that the following item be added to the regular meeting agenda: X. Ordinances and Resolutions: C. Resolutions: 1. Proposed Resolution No. 80-49, accepting a State Grant to extend the City sewer system to the Alaska Skill Center building on the Seward Highway Following discussion, it was moved by Soriano, seconded by Vincent and unanimously carried by all those present to approve the regular meeting agenda as amended and the consent calendar as presented and the following actions were taken: l. September 25, 1980, Invoice in the amount of $14,560.69 from Price Waterhouse and Company in connection with the 1979-80 audit of the City's books, was approved for pay- ment and filed. 2. September 1980, letter from the Seward Chamber of Commerce, expressing gratitude for the City's assistance with the Seward Silver Salmon Derby events, was noted for information only. .;0 PAGE 140 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 VI. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) SEWAGE TREATMENT: 3. Invoice No. 04080 from Arctic Environmental Engineers dated July 14, 1980, in the amount of $1,871.95 in con- nection with the sewage treatment project, was approved for payment and filed. LAUBNER ADDN: 4. September 16, 1980, Invoice No. 7548 from Appraisal Company of Alaska in the amount of $550 for the appraisal of City- owned Lots 22 and 23, Block 10, Laubner Addition, was approved for payment and filed. VII. BOROUGH ASSEMBLY REPORT: None VIII. PUBLIC HEARINGS: HARBOR: A. Public hearing was opened on the proposed lease of approximately 7,500 square feet of City-owned land in the Small Boat Harbor area on which is located the U.S. Coast Guard dispatch building, and "Notice of Public Hearing" as posted and published two times in the local newspaper, was noted. Hugli stated that the only difference between the proposed lease, to extend through September 30, 1984, and the current lease, which expires September 30, 1980, was the increase in the yearly rental rate from $825 to $1,500, based on a fair-market value appraisal as conducted at the City's request. No one appeared from the audience in order to be heard and the public hearing was closed. Hugli directed the City Clerk to prepare a resolution approving the lease for Council review at the October 27 meeting. IX. CITIZENS' DISCUSSION: (With prior notice only) No one appeared from the audience at this time in order to be heard. X. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. (Although Council made a motion to introduce proposed Ordinance No. 494 relating to the regulation of the Port of Seward, the motion was administratively withdrawn pursuant to the provisions of Sec. 2-78 of the Seward City Code which states that an ordinance which has been introduced must be made available to the public. The proposed ordinance was not yet in final form and not available for distribution to the Councilor the public at the meeting; therefore, should not have been introduced.) B. Ordinances for Public Hearing and Enactment: None C. Resolutions: SEWAGE 1. Copies being distributed to Council and made available TREATMENT/to the public, Hugli noted by title only proposed resolution regarding SCHOOLS/ the extension of the City sewer system to the Alaska Skill Center shop RES: buildings located on the Seward Highway in the industrial area, entitled: A Resolution Accepting the Alaska State Grant to Connect the Alaska Skill Center Mechanical Shops With the City Sewer System City Manager reported the resolution would authorize him to accept a grant in the amount of $65,300 from the Alaska Department of Environmental Conservation to connect the Skill Center shop buildings to the City sewer system. He stated the Skill Center had requested that the remaining balance of the cost of the hook-up be amortized over a four-year period. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve Resolution No. 80-49. I I I LAUBNER ADDN: N HARBOR SUB: PAGE 141 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 XI. UNFINISHED BUSINESS: A. September 11, 1980, appraisal report on Lots 22 and 23, Block 10, Laubner Addition, as prepared by Appraisal Company of Alaska, and request for purchase of the property as received from Judge Ralph Moody, was noted. City Manager confirmed that the City would want to list both 30-foot lots as one parcel if they were to be sold. Gillespie referenced the price of the letter-of-opinion appraisal and stated it appeared high and the City might do well with future appraisals to look to other firms. Following discussion, it was moved by Hugli, seconded by Gillespie and unanimously carried by all those present to advertise the two lots for sale by the sealed bid process with minimum bids set at $7,500. B. October 2, 1980, letter from J.C. Torgerson, offering for purchase by the City Lot 1, Block 1, and Lot 1, Block 2, North Harbor Subdivision, at a total price of $115,000, was noted. Gillespie queried the City Manager as to whether, in his opinion, it was in the best interests of the City to purchase the Torgerson property. City Manager responded by stating that he had mixed feelings on the issue because he felt as much land as possible should be in private hands and on the tax rolls. Further, he questioned where the Council would amend the City budget in order to make available the monies necessary to purchase the property. Gillespie stated that although the southern parcel (Lot 1, Block 1) might be of some benefit to the City, especially if plans proceeded to extend 4th Avenue north through the harbor area to connect with Airport Road, he felt the northern parcel (Lot 1, Block 2) would not be of any use to the City. Gillespie and Cripps voiced the opinion that the City should not purchase any land unless there was a definite need and use for the property. It was moved by Swartz, seconded by Vincent, but later withdrawn, to order a fair-market value appraisal of the two parcels. Gillespie stated the City should not waste money on an appraisal of the property unless the Council agreed there was a need to purchase the land. Following discussion, Gillespie, with Council consent, stated the matter should be tabled until a compelling need for the land became apparent; and a letter to that effect should be directed to Mr. Torgerson, informing him that the City might be interested in the property at a future date. XII. NEW BUSINESS: INSURANCE/ A. Letter received October 7, 1980, from the Resurrection Bay PKS & Lions Club, requested City liability insurance coverage for the Club's REC: work on the tot lots, was noted. City Manager stated he supported the Lions Club request and urged Council to approve the request. Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to authorize the City Manager to contact the City's insurance carrier to put a rider on the City insurance policy to cover the Lions Club work on the tot lots. 4TH OF CREEK AREA: JULY B. September 9, 1980, letter from James McCollum, legal counsel representing the Noyes regarding the City's condemnation of a portion of the Noyes property for the 4th of July Creek area access road, was noted. City Manager stated the Noyes were requesting the City pay for another appraisal of their property. He stated the City had already paid for one fair-market value appraisal of the property and did not feel there was an obligation to order another. City Attorney stated that he did not sense that even if the City did proceed with acquiring another appraisal that the issue between Mr. and Mrs. Noyes and the City would be resolved. Hugli, with Council consent, stated he concurred with the City Manager's recommendation that the City deny the request for another appraisal of the subject property. XIII. CITY MANAGER REPORTS: A. Discussion of the Fourth Avenue Dock License Agreement was postponed to a later date. I .J '! PAGE 142 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 XIII. CITY MANAGER REPORTS: (cont'd) TERMINAL ADDN: B. City Manager reported that all six firms which the City had solicited for Statements of Qualifications for the design of the replat of the Terminal Addition had responded in a timely manner and he had distributed the reports to the Councilmembers the previous week in order to allow time for them to review the six proposals: Arctic Environmental Engineers Century-Quadra Dickinson, Oswald, Walch, Lee Engineers (DOWL) R & M Consultants, Inc. Trans-Alaska Engineering URS Company He stated that in his opinion the Statements of Qualifications as sub- mitted by Arctic Environmental Engineers (AEE) and Century-Quadra were outstanding and requested Council select a firm and authorize him to proceed with the negotiation of a price figure and scope of work on the project. He displayed various conceptual drawings of the proposed subdivision replat, taking into consideration the land contours. Gillespie suggested the Councilmembers each list their three top choices, the results be compiled, and then a final selection be made from the top three firms. The Councilmembers cast their preferences, the City Clerk tallied the votes and declared that AEE and Century-Quadra had tied as the two top firms with six votes each and Trans-Alaska Engineering had received four votes. Hugli requested the City Engineer voice his opinion on the various firms. Tom Small appeared from the audience and stated that although all three of the firms selected by the Council were qualified to do the job, he would list Century-Quadra as his top choice. Following discussion, the Councilmembers listed their first choice on paper and the City Clerk tallied the votes and declared that Century-Quadra had received three votes, Trans-Alaska Engineering had received two votes and one Councilmember had chosen not to vote. It was moved by Soriano and seconded by Hugli that the City Manager be given the authority to negotiate with Century-Quadra in reference to the Terminal Addition replat. Cripps stated that since one Councilmember present did not vote and one Councilmember was absent it might be wise to table the issue until the next Council meeting. Soriano stated he would not withdraw his motion and the motion carried as follows: Ayes: Noes: Absent: Gillespie, Hugli, Soriano, Swartz and Vincent Cripps Campbell ABCB: C. City Manager stated the City had received correspondence from the State Alcoholic Beverage Control Board relative to the City's earlier protest of the liquor license renewal for the Flamingo Lounge due to delinquent property taxes and past-due utility bills. He stated Council needed to reaffirm their protest against the issuance of a liquor license. Following discussion, it was moved by Soriano, seconded by Hugli and unanimously carried by all those present to protest issuance of a liquor license to the Flamingo Lounge on the basis of non-payment of property taxes and utility charges. D. City Manager reported that representatives of Century- Quadra would be in Seward on Wednesday, October 15, in order to discuss with Council the draft of the master plan for the 4th of July Creek marine industrial center. He requested the Councilmembers be available to meet with the firm from 11:30 a.m. to 1:30 p.m. E. City Manager reported that the City had held a surplus property sale and had realized revenue in excess of $3,800 from the sale. PAGE 143 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 XIII. CITY MANAGER REPORTS: (cont'd) JESSE LEE HOME: F. City Manager reported that the City had still not received an acceptable proposal on the renovation of Jesse Lee Home and suggested that he be allowed to investigate the feasibility of converting the historial site into a community center. Following discussion, City Manager, with Council consent, requested he be authorized to consult with an architect regarding the feasibility of renovating the existing structure. ITH OF CREEK AREA: JULY G. City Manager reported that the 4th of July Creek area access road construction was on schedule and the City had finally received the required wetlands permit for the extension of Nash Road to the proposed marine industrial center. He stated he had received numerous requests that construction of a bike path be included in the plans for the access road. Following discussion, it was moved by Gillespie, seconded by Cripps and carried as follows that the City would proceed with the access road construction without plans for a bike path: Ayes: Noes: Absent: Cripps, Gillespie, Hugli, and Vincent Soriano and Swartz Campbell 4TH OF CREEK AREA: JULY H. City Manager displayed a conceptual drawing of the coal facility proposed to be located at the 4th of July Creek industrial park. He recommended two or three Councilmembers be designated to visit a coal facility in the Lower 48 in order to become more aware of the impact such a facility would have on Seward. Further, he suggested that a visit to a coal facility be combined with a trip to view a coal-fired power plant and a dry marina. Following discussion, Hugli asked that the Councilmembers think about such a trip and directed the City Clerk to schedule the item for discussion at the October 27 Council meeting. I I. City Manager reported that the Alaska Municipal League annual meeting was scheduled for November 12-15 in Fairbanks and asked those members who planned on attending to contact the City Clerk so the proper arrangements could be made. XIV. COUNCIL DISCUSSION: A. The draft of proposed Ordinance Nos. 491, 492 and 493, revising a portion of Seward City Code Chapter 2 (City departments, Planning and Zoning Commission, and ordinance and resolution procedures), and City Clerk's memo regarding the proposed amendments, was noted. City Clerk called the Council's attention to the substantive changes as proposed in the draft ordinances and requested the Councilmembers thoroughly review the drafts prior to the public hearing and scheduled vote for enactment of the ordinances at the Council meeting of October 27. B. Attendance at Municipal League November 10-15 at Fairbanks was discussed under XIII. I. I C. Swartz voiced concern that the dump road was receiving increased use by heavy vehicles and this posed a danger because all the traffic had to pass through the residential area of Forest Acres. She requested that the City Manager investigate the possibility of having a road running from the Seward Highway north of the Forest Acres Subdivision for use by dump traffic. City Manager stated there might be a problem with such a plan due to wetland areas in the vicinity but he stated he would investigate the matter. D. Swartz asked that the City administration be thinking about again flooding an area for ice skating during the upcoming winter months. E. In answer to a question from Swartz, City Engineer Small stated he had not yet compiled figures on the lighting of the alleys. l.t4 PAGE 144 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 XIV. COUNCIL DISCUSSION: (cont'd) F. Gillespie reported that at a previous Seward Chamber of Commerce meeting a representative of the Anchorage Chamber had been in attendance and had discussed a plan whereby Anchorage would apply for designation as a "free trade zone" and other communities throughout Alaska, including Seward, would be designated as "sub-chapters" of the Anchorage zone. Gillespie referred to the fact that Seward already had a custom-bonded warehouse which appeared to be the first step in the process for being designated as a "free trade zone" and he stated the City should investigate the matter further and should be aware of what the difference was between a custom-bonded warehouse and a free trade zone. G. Gillespie reported on a tax repeal bill which apparently was being considered by the State which would authorize the expenditure of State funds to reimburse municipalities if local governments repealed the real property tax on an individual's prime residence. He stated that although on the surface the tax repeal measure looked favorable, it would have the effect of penalizing municipalities like Seward which had been frugal in their expenditures and had kept the property tax rates low. H. In answer to a question from Soriano, City Engineer Small stated street lights would be installed along 7th Avenue as soon as the materials arrived. I. Cripps reported that over the weekend the Seward Volunteer Ambulance Corps was called upon to assist with a medical emergency located outside the City limits. He stated that armed weapons were involved in the incident and when the Corps members arrived there were no law enforcement officers at the scene. He stated that although he understood areas of jurisdiction, some type of agreement should be reached between the Alaska State Troopers and the Seward Police Department whereby whichever agency could respond in the most timely manner would do so and, thereby, provide protection for those people who were trying to provide a humanitarian service. Seward Police Chief Bencardino appeared from the audience and stated that although the State Troopers had a man located at Mile 7, close to the scene of the incident, he was not sent out due to the fact that he would have received overtime for the call-out. City Manager commented that in the past whenever the City tried to assist and did respond to such emergencies, severe criticism had been leveled against the City for interfering with events and people outside its jurisdiction. Following lengthy discussion, Bencardino urged the Ambulance Corps to direct a letter of complaint to Capt. Swackhammer of the Alaska State Troopers, Soldotna. Hugli directed the City Clerk to also direct a letter to Capt. Swackhammer on behalf of the City Council. J. In answer to a question from Swartz, Dave Williams of Arctic Environmental Engineers appeared from the audience and gave a verbal status report of the City sewer project. K. gave a verbal project. In answer to a question from Hugli, City Engineer Small report on the status of the electric system improvement xv. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and urged the Council to consider purchasing Lot 1, Block 2, North Harbor Subdivision from Mr. Torgerson in order to increase the width of the intersection of Airport Road and the Seward Highway so semi-trucks could safely make a right-hand turn onto the Seward Highway. Further, Valdatta spoke on the need for a Port Commission and designation as a "foreign trade zone". Hugli confirmed that the difference between a custom-bonded warehouse and a foreign trade zone would be discussed at the October 27 Council meeting. I I I .} :) PAGE 145 REGULAR MEETING - OCTOBER 13, 1980 VOLUME 19 XV. CITIZENS' DISCUSSION: (cont'd) B. Willard Dunham appeared from the audience and spoke on the existence of an alternate route to the dump without having to go through the residential area of Forest Acres. He stated most of the old road had been eroded by Resurrection River but repair might be considered by the City. Further, Dunham referred to Cripps' report on the Ambulance Corps incident the past weekend and spoke on past incidents where the State Troopers had not responded in the proper manner. He urged the Corps and the City Council to direct a strong letter of complaint to the Troopers. XVI. ADJOURNMENT: ~meeting was adjourned at 9:36 p.m. "1.' " ;:~~I" . ~1."r'~ ,i ';', , ,:' .0,~ "\, " I {" , .'" / I .I /// '" if -" , ( : ") . 0> '~oAt~e\1} t r~anl~ City Clerk ,./\ \) >4hG: i\J-~d) ,/ ( , , R:aymoud Mayor / L. HugH (City Sea:!;;:): ,-,ii' ,i" -------------------------------------------------------------------------- PAGE 145 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 1. CALL TO ORDER: The October 27, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. II I. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Soriano and Vincent (Absent, with Council consent, was Swartz) Present also: City Manager Johnson, City Attorney Jarrell and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Vincent and unanimously carried by all those present to approve the regular meeting minutes of October 13, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following item be added to the consent calendar: 3. Statement received October 27, 1980, from Ranald H. Jarrell, in the amount of $2,273.75, for legal services rendered in September 1980 - approve for payment and file City Manager requested that the following changes be made in the regular meeting agenda: 1. t r, PAGE 146 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 . V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) Add: VIII. Citizens' Discussion: (With prior notice only) A. Don Horick Delete: IX. Ordinances and Resolutions: A. Ordinances for Introduction: 1. Proposed Ordinance No. 494 relating to the regulation of the Port of Seward Following discussion, it was moved by Campbell, seconded by Cripps and unanimously carried by all those present to approve the consent calendar and regular meeting agenda as amended and the following actions were taken: C ATTORNEY: 1. September 30, 1980, invoice from Cranston, Walters and Dahl for legal services rendered, totaling $288, was approved for payment and filed. ELECTRIC DEPT: 2. The following invoices as received from CH2M Hill for work on the Seward electric system, were approved for payment and filed: Invoice No. Date Amount 10264 10267 10/15/80 10/15/80 $7,073.93 6,264.18 C ATTORNEY: 3. Statement received October 27, 1980, from Ranald H. Jarrell, in the amount of $2,273.75, for legal services rendered in September 1980, was approved for payment and filed. VI. BOROUGH ASSEMBLY REPORT: Campbell gave a verbal report on the Kenai Peninsula Borough Assembly meeting of October 14, 1980. He stated his seat on the Assembly had been filled by Darryl Schaefermeyer, as elected October 7. He commented that in consideration of the new districts formed due to Borough reapportionment, the Assembly representatives would have a larger area to represent. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) A. Don Horick, a resident of Glacier View, the senior citizens' housing project located in the Marathon Addition, appeared from the audience and stated he understood the hospital board was discussing a proposal to remove the trees and shrubbery located between the driveway to Glacier View and the clinic. He spoke against such a proposal, stating that the greenery provided a sound as well as a visual barrier; and, although the trees were not large, it would take many years to replace them. In answer to a question from Hugli, City Manager stated the parcel in question was owned by the City and he had not been aware of any discussions to remove the shrubbery on the lot. Campbell, Seward General Hospital administrator, stated that the hospital board had not addressed the issue but he would keep Mr. Horick's comments in mind if the issue did arise. Ray Burgess, President of the Lions Club, appeared from the audience and stated that some seniors had contacted the Club, requesting that the brush be cleared so residents of the lower level of Glacier View would have a view of the Bay. LOC ORGS/ ORDS: I PERSONNEL/ ORDS: I P & Z/ ORDS: lORDS: 14i PAGE 147 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: 1. Copies being made available to the public, Hugli noted by title only proposed ordinance regarding housing and urban development powers, entitled: An Ordinance Regarding Housing and Urban Development Powers, Repealing Ordinance No. 475 "Notice of Public Hearing" on the proposed ordinance as published two times in the local newspaper and posted"was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. It was noted that the proposed ordinance would repeal those housing and urban development powers as required to be assumed by Council pursuant to ASHA regulations during construction of the senior citizens' housing project, Glacier View. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 490. 2. Copies being made available to the public, Hugli noted by title only proposed ordinance relating to City administrative departments, entitled: An Ordinance Relating to City Administrative Departments, Repealing Article IV, Sections 2-47 through 2-65 and Creating Sections 2.40.010 through 2.40.560 of the Seward City Code "Notice of Public Hearing" on the proposed ordinance as published two times in the local newspaper and posted, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. It was moved by Soriano, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 491. 3. Copies being made available to the public, Hugli noted by title only proposed ordinance relating to the Seward Advisory Planning and Zoning Commission, entitled: An Ordinance Relating to the Seward Advisory Planning and Zoning Commission, Repealing Article V, Section 2-66 through 2-70 and Article VI, Section 2-71 and 2-72, and Creating Sections 2.50.010 through 2.50.040 of the Seward City Code "Notice of Public Hearing" on the proposed ordinance as published two times in the local newspaper and posted, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to enact Ordinance No. 492. 4. Copies being made available to the public, Hugli noted by title only proposed ordinance relating to the process for Council approval and enactment of ordinances and reso~utions, entitled: An Ordinance Relating to Legislative Action, Repealing Article VII, Sections 2-73 through 2-80, and Creating Sections 2.60.010 through 2.60.090 of the Seward City Code ORDS: (cont'd) HARBOR/ RES: TERMINAL ADDN;' 148 PAGE 148 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) B. Ordinances for Public Hearing and Enactment: (cont'd) "Notice of Public Hearing" on the proposed ordinance as published two times in the local newspaper and posted, was noted. Public hearing was opened on the ordinance; no one appeared from the audience in order to be heard and the public hearing was closed. It was moved by Cripps, seconded by Campbell and unanimously carried by all those present to enact Ordinance No. 493. C. Resolutions: 1. Copies being made available to the public, Hugli noted by title only resolution providing for the lease of a parcel in the Small Boat Harbor area for the Coast Guard boat dispatch building, entitled: A Resolution Providing for the Disposal by Lease of a Parcel of City-owned Land in the Small Boat Harbor Area for the U.S. Coast Guard Boat Dispatch Building It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-50. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. Trans-Alaska Engineering (TAE) letter dated October 22, 1980, requesting reconsideration of Council action on the hiring of a consultant to replat the Terminal Addition, was noted. Cripps referred to the Council meeting of October 13, at which time Council considered the Statement of Qualifications as received from various engineering firms, including Trans-Alaska Engineering, for the replat of the Terminal Addition. He remarked that as a part of Trans-Alaska's Statement, principal Richard Lowman had stated that TAE was the only engineering firm hired by the City in 1978-79 which had completed a project on time. He had asked City Manager Johnson to comment on the specific statement and, in reply, the City Manager had stated that in his opinion, no, TAE had not completed the referenced project on schedule. Cripps continued, explaining that Mr. Lowman took exception to the City Manager's comments and, therefore, had forwarded the October 22 letter to Council. He stated that he felt Lowman's request for reconsideration of Council's action to hire Century-Quadra for the Terminal Addition work was a valid request considering the circumstances. Campbell stated he was not in attendance at the October 13 meeting, had not yet reviewed the Statements of Qualifications from the various engineering firms, and would not become involved in the discussions nor vote on the issue. Hugli commented that the Council had a City Manager and City Engineer/Utilities Manager to make professional recommendations to the Council, both had recommended Century-Quadra as their first choice for the replat work, and it was his opinion that Council should rely on the judgment and recommendations of these employees. Richard Lowman, Principal, Trans-Alaska Engineering, appeared from the audience and stated the comments made by the City Manager at the October 13 meeting which disputed the content of his Statement of Qualifications were, in his opinion, not proper and appeared to be the reason why he had not been selected to do the Terminal Addition work. Hugli requested a response from City Manager Johnson. In reply, City Manager stated the issue would have never been aired had not a Councilmember asked him for a specific response on the statement made by TAE regarding the completion of the Seward water supply and distribution TERMINAL ADDN: (c.ont'd) I FOREST ACRES: I I ELECTRIC DEPT: 149f'- PAGE 149 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 XI. NEW BUSINESS: (cont'd) system improvements project. He stated that although he did not consider the item of great importance, he had to state that the project was not complete to-date because the City still had not received the construction estimates as required under Section 1, item lO. of the 1978 contract. In fact, he continued, the City had received an extension from the State Department of Community and Regional Affairs in order that the contract could be completed pursuant to the agreement between the parties. Cripps stated that the agreement also stated that 10 percent of the contract fee would be withheld until the project was accepted as complete. He commented that the City had paid the 10 percent to TAE, which i~timated that the City was satisfied that the project was complete. In reply, City Manager stated that the issue was not considered by the administration to be a major one and it was his opinion that it had no particular bearing on the qualifications to be reviewed for the selection of a firm to do the Terminal Addition work. He commented that he was placed in the position of having to respond to a question from a Councilmember and had responded in the best manner possible. Lowman stated that he had given verbal cost estimates of the water project construction to Administrative Assistant Darryl Schaefermeyer and had never received any feedback that the verbal response was not acceptable. Soriano stated that he felt the particular discussion had no bearing on the Council vote of October 13. He reported that Century- Quadra had been selected by a four to one vote, Cripps dissenting, and that the issue of the earlier contract between the City and TAE would have never been a subject of discussion had not Cripps brought it up and asked the City Manager for a response. B. October 22, 1980, letter from John F. Gillespie, requesting to purchase a City-owned parcel in the vicinity of Forest Acres, was noted. City Manager stated that although he would like to reserve the right to look into the matter further, he initially saw no reason why the City should retain the parcel in question and recommended that Council authorize the administration to proceed with obtaining an appraisal of the property and offering the ,land for public sale. Gillespie spoke briefly on his request, stating that he and his brothers owned an adjacent parcel and would like to purchase the City land. Hugli requested that the administration provide a map of the parcel in question for the next Council meeting. Following discussion, it was moved by Soriano, seconded by Campbell and carried as follows to authorize the City administration to pursue the sale of the parcel: Ayes: Noes: Abstain: Absent: Campbell, Cripps, Hugli, Soriano and Vincent None Gillespie Swartz XII. CITY MANAGER REPORTS: A. '-City Manager distributed information supplied by the Anchorage Chamber of Commerce on foreign trade zones and custom bonded warehouses and asked that Council review the material and the subject be placed on the next Council agenda. B. City Manager requested Council schedule a work session in order to discuss the VECO lease and dock license agreement and the proposed dock license agreement between the City and Albert Kawabe. Following discussion, Hugli, with Council consent, scheduled a Council work session for Monday, November 3, 1980, commencing at 7:00 p.m. in the City Cou~cil Chambers. C. City Manager requested Council approval to pay "Contract Change Order" No. 2 as submitted by Brown & Associates, contractors for the Seward Electric System improvement project. He gave a cost break- down of the change order items totaling $76,390.76, and stated that the total contract price was still within budget. Following discussion, it was moved by Gillespie, seconded by Soriano and unanimously carried by all those present to recommend that the City Manager make the necessary change orders and pay the appropriate fee of $76,390.76. -i ~ (\ :> & 1 f" 4TH OF JULY CREEK AREA: SEWAGE TREATMENT: ABC B: PKS & REC: COUNCIL: PAGE 150 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) D. City Manager requested Council approval to pay Century- Quadra Invoice No. 2 for professional services rendered through September 28, 1980, on the 4th of July Creek project, totaling $151,226.98. It was moved by Cripps, seconded by Campbell and unanimously carried by all those present to pay the bill of Century-Quadra in the amount of $151,226.98. E. City Manager requested Council approval to pay "Periodic Estimate for Partial Payment" No. 2 for work performed by Brown & Associates through October 9, 1980, on the Seward sewer interceptor and waste water treatment project, totaling $806,469.76. It was moved by Campbell, seconded by Cripps and unanimously carried by all those present to pay Brown Construction their bill in the amount of $806,469.76. F. City Manager commented that at the October 13 Council meetin~ the Counci] upon recommendation of the administration, had passed a motion objecting to the renewal of the liquor license for the Flamingo Lounge due to delinquent taxes and utility bills. He stated since that date the City administration had been contacted by the new owners of the Flamingo and had been informed that the delinquent taxes had been paid. After querying the Borough, it was determined that the taxes had been paid; however, the Borough had neglected to notify the City. Further, City Manager stated that the matter of the past-due utility bills was being taken care of in a manner acceptable to the City. In conclusion, he stated he wanted the record to show that through no fault of their own, the new owners of the Flamingo had been involved in some unfortunate circumstances which had delayed the issuance of their renewal liquor license. He confirmed that the City administration had acted to withdraw Council's objection. G. City Manager distributed to Council "City of Seward Park and Recreation Plan: 1980-1985" as prepared by Recreation Director Christy Moeller. He requested that the Councilmembers review the report and stated it would be scheduled for discussion at a future Council meeting. H. City Manager reported he was continuing with the abatement proceedings for junked and abandoned vehicles located throughout the City. He confirmed he had located 37 violations and notices of abatement would be issued the following week. XIII. COUNCIL DISCUSSION: A. City Manager stated that with the proposed development of the 4th of July Creek industrial park, the Councilmembers should be informed on the local impact of a coal loading terminal, petrochemical plant, and other industrial developments. He recommended that the Councilmembers visit a coal loading terminal in Long Beach, California; a coal fire plant in Amarillo and Houston, Texas; and a petrochemical plant operated by Dow Chemical Company in Freeport, Texas. He suggested that a visit to a dry marina near Everett, Washington, also be incorporated into the trip. He stated the trip would be tentatively scheduled for late November, early December, and he planned on sending City Engineer Tom Small with the Council. B. City Manager noted that the regular meeting of Council scheduled for November 10 fell on a City holiday, Veterans' Day observance, and was during the week of Municipal League. Following discussion, Hugli directed the Clerk to cancel the meeting due to lack of a Council quorum. C. Hugli noted that the Council needed to appoint a Vice Mayor for the coming year. It was moved by Soriano and seconded by Campbell that John Gillespie serve as Vice Mayor. Cripps moved that the nominations close. Hugli confirmed the appointment of John Gillespie as Vice Mayor, to serve in the position for the coming year. III HOSPITAL: I I . ~51 PAGE 151 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) D. Campbell, the Council's representative on the Kenai Peninsula Borough Assembly until reapportionment had eliminated the Council-appointed seat, commented that the other cities in the Borough had the perception of Seward being a progressive, yet cost conscious city, and we should be proud of our paved streets, harbor, sewer project, electrical rehabilitation and expansion project, as well as the 4th of July Creek development. E. Gillespie commented that the City should investigate the support of legislation whereby State surplus revenues could be used to payoff a city's bonded indebtedness and specifically cited Seward's sewage treatment project debt. F. Hugli referred to an article distributed by the City Manager on cable television companies. City Manager stated the article was for Council information and reported that the deadline for receiving proposals for a cable system for Seward was November 4. Hugli confirmed the item would be on the Council's next meeting agenda. XIV. CITIZENS' DISCUSSION: A. Donna Limbean, member of the Seward Volunteer Ambulance Corps, appeared from the audience and spoke on the need for police protection when the Corps members were responding to a call outside the City limits. City Manager reported that the administration, various members of the Ambulance Corps, and Councilmember Cripps had met with Alaska State Trooper Capt. Swackhammer on Friday, October 24, regarding the controversy over the Troopers slow response to an emergency situation in weeks' past. He stated it was his opinion that an acceptable resolution of the problem had been agreed upon between the parties and he and the Police Chief would have the discretionary authority to direct the Seward Police Department to respond to emergency situations outside the City limits if it was determined that the agency could respond in a more timely manner than the Troopers. He reminded Council and the public that it was not within the legal purview of the City to spend taxpayers' money on areas outside the incorporated City limits. Jerry Tuthill, President of the Seward Volunteer Ambulance Corps, appeared from the audience and stated he had also attended the meeting with Capt. Swackhammer and assurance was given that the State Trooper nearest the scene of an emergency would be dispatched on the call. Limbean questioned whether an mutual aid agreement between the Troopers and the Seward Police Department could be executed. In response, City Attorney stated he did not think such a document could be entered into between the parties but the matter would have to be investigated further. Limbean stated the Corps wanted official assurance that when they asked the Troopers or the Seward Police for assistance, no matter what the location, that that assistance would be granted. City Manager stated that although the City sympathized with the Corps position, such an ~fficial assurance could not be given, but the Seward Police and State Troopers were working together as much as possible on the issue of law enforcement officers' timely response to emergency calls. Cripps stated the controversy should be addressed at the State level since the problem existed throughout the State. Limbean also spoke on regulations and certification requirements as proposed by the State Manpower Training and Task Force which would affect EMT's throughout the State. She stated the local Corps had reviewed the regulations and had found them stringent. She reported a teleconference on the regulations was scheduled for October 30 and various local Corps members would be testifying. n15,'~ I PAGE 152 REGULAR MEETING - OCTOBER 27, 1980 VOLUME 19 XIV. CITIZENS' DISCUSSION: (cont'd) B. Bob Valdatta appeared from the audience and stated the City administration should contact Ron Walt in Juneau regarding foreign trade zones. City Manager stated the City was working very closely with Mr. Walt. C. Beverly Dunham appeared from the audience and stated that as part of the Council's trip to Fairbanks for the Alaska Municipal League they should visit the coal operations in Healy. D. Jim Pruitt appeared from the audience and asked about the maintenance of Lowell Point Road. City Manager responded by stating that the road would be returned to the same condition as it was prior to the work on the sewer line. He commented that it was a State road, built with Pioneer Access Program funding but the State refused to maintain it; the City provided basic maintenance when time permitted. In conclusion, City Manager stated that State Department of Transportation and Public Facilities Commissioner Ward would be in Seward on Thursday, October 30, and Pruitt might want to discuss the issue with him. XV. ADJOURNMENT: The meeting ~1J1JT1Yr.'''r7'):.:~h...>- ,'f' ,!--. . . '. ,.:~::~'^' ..:..~..: (. was adjourned at 9:20 p.m. '\ --dA (/) ,ciL /' RaymondLL. Hugll Mayor )y 1 (City Seal) PAGE 152 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 I. CALL TO ORDER: The November 24, 1980, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Swartz led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Soriano, Swartz and Vincent Present also: City Manager Johnson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Vincent and unanimously carried to approve the regular meeting minutes of October 27, 1980, as written. PAGE 153 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following additions be made to the consent calendar: I 10. Statement received November 24, 1980, from Ranald H. Jarrell in the amount of $6,442.10 for legal services rendered October 26 - November 7, 1980 - approve for payment and file 11. Invoices received from Arctic Environmental Engineers for professional services rendered on the sewage treat- ment project: 04780 04880 04980 Phase Design Step II Step II Construction Management Step III Step III Step III TOTAL Amount Invoice No. 05180 05280 $ 189.42 26.42 11,678.39 11,195.28 13,485.80 $36,575.31 (approve for payment and file) City Manager requested that the following additions be made to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 1. Proposed Resolution No. 80-51, accepting $1,000,000 from the State to assist in the construction of the 4th of July Creek Marine Industrial Park I XII. City Manager Reports: E. Contract for professional services for the replat of the Terminal Addition F. Purchase of a truck for the Water Department G. November 4, 1980, letter from the National Bank of Alaska, requesting an easement to allow the existing encroachment onto City right-of-way from Lots 21 and 22, Block 13, Original Townsite H. VECO lease I. July 28 and November 24, 1980, letters from Seward Ship's Chandlery, requesting to lease property in the 4th of July Creek Marine Industrial Park J. November 21, 1980, letter from Monty H. Richardson regarding proposals submitted to the Alaska Board of Fisheries to open Resurrection Bay to subsistence gill netting of salmon Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: I ABC B: 1. November 6, 1980, letter from the Alcoholic Beverage Control Board, noticing of application for renewal of Seward Trading Co. liquor licenses, was filed without objection. 4TH OF JULY CREEK AREA: 2. October 31, 1980, Invoice #0510754 in the amount of $19,113.07 from R & M Consultants for work performed on the Nash Road extension survey, was approved for payment and filed. I J, I f)'. SEWAGE TREATMENT: 4TH OF JULY CREEK AREA: ELECTRIC DEPT: TELEVISION: ELECTRIC DEPT: 4TH OF JULY CREEK AREA: ELECTRIC DEPT: C ATTORNEY: SEWAGE TREATMENT: PAGE 154 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) 3. November 10, 1980, Periodic Estimate No. 3 in the amount of $546,506.68 from Brown & Associates for work performed on the sewage treatment project, was approved for payment and filed. 4. November 13, 1980, Invoice #3 in the amount of $115,153.27 from Century-Quadra for work performed on the 4th of July Creek Marine Industrial Park, was approved for payment and filed. 5. October 1980 Periodic Estimates for Partial Payment received from Fischbach & Moore of Alaska, Inc. for work performed on the Seward electrical system improve- ment project were approved for payment as follows: Periodic Estimate No. 4A 5 5A 6 7 Amount $ 54,909.06 215,171.62 [1,150.79] 71,925.00 65,773.88 $ 406,628.77 TOTAL 6. November 5, 1980, Invoice #4513 from Kenai Air Alaska, Inc. in the amount of $7,754.88 for work performed on the television translator, was approved for payment and filed. 7. Statement received November 20, 1980, from Metco in the amount of $5,809.37 for work performed through November 8, 1980, relative to clearing the electrical power line right-of-way from Mile 9 to 16, was approved for payment and filed. 8. Statement received November 20, 1980, from Metco in the amount of $32,454 for work performed in clearing the right-of-way for the extension of Nash Road to the 4th of July Creek Marine Industrial Park, was approved for payment and filed. 9. November 14, 1980, invoices from CH2M Hill for work performed on the electrical system improvement project, were approved for payment and filed as follows: Invoice No. 10288 10289 Amount $ 13,417.66 14,180.02 $ 27,597.68 TOTAL 10. Statement received November 24, 1980, from Ranald H. Jarrell in the amount of $6,442.10 for legal services rendered October 26 - November 7, 1980, was approved for payment and filed. 11. The following invoices as received from Arctic Environmental Engineers for professional services rendered on the sewage treatment project were approved for payment and filed: Invoice No. Phase Design Step II Step II Construction Management Step III Step III Step III TOTAL Amount 05180 05280 $ 189.42 26.42 04780 04880 04980 11,678.39 11,195.28 13,485.80 $36,575.31 I PAGE 155 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly representative Darryl Schaefermeyer gave a verbal report on the November 18, 1980, Assembly meeting. VII. PUBLIC HEARINGS: None VIII. CITIZENS' DISCUSSION: (With prior notice only) C ATTORNEY: A. Richard Gantz, senior partner with the law firm of Hughes, Thorsness, Gantz, Powell and Brundin, appeared from the audience and gave a verbal presentation on the firm's municipal expertise and availability to represent the City of Seward. He confirmed that Fred Arvidson would be Seward's principal contact if the City acted to retain the law firm. K P B/ ORDS: I 4TH OF CREEK AREA/ RES: I LAUBNER ADDN: IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies being made available to the public, Hugli read by title only proposed ordinance regarding Borough Assembly representation, entitled: An Ordinance Relating to Borough Assembly Representation, Repealing Sec. 2.20.030 (b) and Sec. 2.20.150 of the Seward City Code It was moved by Campbell, seconded by introduce proposed Ordinance No. 494. was scheduled for December 22, 1980. Soriano and unanimously carried to Public hearing on the ordinance B. Ordinances for Public Hearing and Enactment: None C. Resolutions: JULY 1. Copies being distributed to Council and made available to the public, Hugli read by title only proposed resolution accepting $1,000,000 from the State to be used for development of the 4th of July Creek Marine Industrial Park, entitled: A Resolution Accepting a Transfer Agreement for the Seward Port Facility From the State of Alaska Department of Transportation and Public Facilities It was moved by Campbell, seconded by Swartz and unanimously carried to approve Resolution No. 80-51. X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: A. November 6, 1980, letter from Judge Ralph E. Moody regarding the sale of Lots 22 and 23, Block 10, Laubner Addition, was noted. City Manager stated the administration had made no provision to allow the purchase price of the City parcels to be paid in installments; and, if this was the Council's wish, sale of the property should be readvertised with the financing provisions set forth in the sale notice. He confirmed it had been the City's policy relative to the sale of individual parcels to demand full payment upon closing and title transfer. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried to notify Moody that payment is due upon closing. , - ~ .:h ORIGINAL TOWNSITEI DEEDS & EASEMENTS: HOSPITAL: ABC B: 4TH OF JULY CREEK AREA: PAGE 156 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 XI. NEW BUSINESS: (cont'd) B. November 5, 1980, letter from Alascom, requesting permission to locate a trailer on Lot 5, Block 15, Original Townsite, was noted. City Manager reported that the request was not in compliance with the Seward Zoning Ordinance and recommended Council denial of the request. Following discussion, it was moved by Soriano, seconded by Swartz and unanimously carried that an exception not be granted Alascom because the zoning ordinance prohibits such a trailer. C. November 17, 1980, letter from Seward General Hospital, requesting City financial assistance for maintenance and operation of the facility, was noted. City Manager stated the Hospital was in serious financial straits and to sustain the facility as a viable entity would take more than just conversation. He reported that funding sources such as revenue sharing and municipal assistance programs were being sought; however, in the interim he recommended a special meeting be held, with public input being widely solicited, in order to involve as many people as possible in finding a solution to the problem. Gillespie referred to the Hospital's letter which suggested the levy of a real property tax within the City to provide long-term funding of the facility's operating expenses. He spoke against such a tax levy, stating that the Hospital services an area much larger than the incorporated limits of Seward and some funding vehicle which made the users outside the City limits pay for a portion of the facility maintenance and operation needed to be investigated. Campbell, Seward General Hospital Administrator, stated that Gillespie was correct and that the majority of the users of the Hospital were not local Seward residents. A method to make those other users pay would be formation of a service area; however, Campbell stated the Hospital Board had agreed that the concept was unpalatable due to the fact that control of the Hospital would then be in the hands of the Kenai Peninsula Borough Assembly. Campbell stated a sales tax was another funding option but such a tax was not well-received by local residents. Swartz suggested hiring an outside firm to review the Hospital's financial problems and objectively arrive at a suggested resolution. Cripps urged the Council and administration to thoroughly investigate the legal ramifications of a municipality paying the bills of a private, non-profit corporation. Following discussion, Hugli, with Council consent, directed the City Clerk to schedule a special Council meeting for Monday, January 5, 1981, in order to conduct a public hearing on the future funding of Seward General Hospital. D. November 12, 1980, letter from the Alcoholic Beverage Control Board, noticing of application for a new liquor license for Dreamland Bowl as owned and operated by Martin Kowalski, was noted. It was moved by Cripps, seconded by Gillespie and unanimously carried that assuming the application meets all the requirements of law, approval of the Dreamland Bowl liquor license be granted. XII. CITY MANAGER REPORTS: A. City Manager distributed to Council the draft "Lease Agreement" and "Dock Permit" between the City and VECO for the 4th of July Creek Marine Industrial Park. He explained the amendments made in the two documents since Council's last review of the drafts. In answer to a question from Hugli, City Manager stated apparently the paragraph regarding subleases to business entities related to VECO had been inadvertently deleted from the lease draft. He proceeded to explain the time frame for development of the marine park and referred to various permits required prior to the commencement of construction. He stated that if the City would be allowed to file an environmental assessment rather than a complete environmental impact statement, at least a year's time could be saved. In conclusion, City Manager stated if the revisions were acceptable a public hearing would be scheduled on the agreement and permit documents. PAGE 157 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) 4TH OF CREEK AREA: (cont'd) JULY July 28 and November 24, 1980, letters from James Pruitt, d/b/a Seward Ship's Chandlery, were distributed to Council and Pruitt appeared from the audience and spoke and answered questions on his request to lease approximately 26 acres in the 4th of July Creek area for the location of various marine-oriented services. Pruitt stated as presently proposed the marine park had no public use area large enough to service vessels the size of the M/V TUSTUMENA. He stated that land leases should be awarded only when construction or use of the land was imminent and that existing businesses in the area should be given "first right of refusal" on any additional land to be leased. I Campbell stated the draft lease with VECO required a $5 million investment within the first five years. Since Pruitt was asking for acreage approximately half the size of the area projected to be leased to VECO, he asked Pruitt if he was willing to make a commitment of $2.5 million over the next five years; Pruitt answered in the affirmative. Gillespie voiced concern that Council should be careful not to do anything to jeopardize its current position with VECO. He stated Pruitt's proposal included some of the area planned for lease to VECO and he would not be in favor of changing VECO's lease acreage in any way. He stated Pruitt's initial proposal as set forth in the July 28 letter was for two to four acres of land; the current proposal outlined in the November 24 letter was for 26 acres. Gillespie remarked that Pruitt might have to adjust his proposal. Further, he stated the City should not lock up the central area because the transfer system might need to be expanded at a later date. Following discussion, Hugli, with Council consent, directed the City Manager to enter into negotiations with James Pruitt, on the same basis as the City's negotiations with VECO, for the lease of property in the 4th of July Creek area not already designated in VECO's lease. I TELEVISION: to He B. City Manager reported the City's request for proposals stated he would keep the Council that no responses had been received to provide cable television service. informed on future developments. C. November 7, 1980, information from the Anchorage Chamber of Commerce regarding foreign trade zones and custom bonded warehouses was noted for Council information. STREETS, RDS, HWYS: D. November 5, 1980, statement for $4,021 from Metco for work performed to improve the dump road was noted. City Manager stated that at the Council meeting of July 23, 1979, the Council had approved the expenditure of an amount not to exceed $6,000 to replace a culvert and reroute the dump road. He stated that the 1979 budget had lapsed and requested that the bill be authorized for payment from funds available in the 1980 Mayor and Council contingency. It was moved by Cripps, seconded by Swartz and unanimously carried to pay the Metco bill for $4,021. 4TH OF CREEK AREA: JULY E. November 18, 1980, memo from Tom Small, requesting approval for Change Order No. 1 for the clearing portion of the Nash Road extension project, increasing the project cost by $9,250, was noted. City Manager recommended approval of the change order. It was moved by Campbell, seconded by Soriano and unanimously carried to approve Change Order No. 1 for the Nash Road extension in the amount of $9,250. I WATER DEPT/ F. City Manager requested authorization to purchase a used PERSONAL 1978 3/4 Ton, 4-wheel drive, Chevrolet truck for use by the Water Department. PROPERTY:He reported the purchase price as $5,600 and an additional $2,100 would be charged for a "service body"; the total price of $7,700 falling $1,700 under the budgeted amount for the vehicle purchase. It was moved by Gillespie, seconded by Swartz and unanimously carried to authorize the administration to buy the truck and have the service body mounted for a cost not to exceed $7,700. r !l " . ORIGINAL TOWNSITE: FISH & WILDLIFE: TERMINAL ADDN: FOREST ACRES: MARATHON ADDN: PAGE 158 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 XII. CITY MANAGER REPORTS: (cont'd) G. City Manager distributed letter dated November 4, 1980, from the National Bank of Alaska, requesting an easement to allow the continuance of an encroachment onto City right-of-way from Lots 21 and 22, Block 13, Original Townsite. He stated the City had no objection to allowing the encroachment of 18 inches onto Adams Street for the length of the loan or the life of the building, whichever expired first; it was so moved by Soriano, seconded by Campbell and carried as follows: Ayes: Campbell, Cripps, Hugli, Soriano, Swartz and Vincent None Gillespie None Noes: Abstain: Absent: Gillespie explained his abstention, stating he had acted as the real estate agent for sale of the property. H. City Manager distributed and City Clerk read in full letter dated November 21, 1980, from Monty H. Richardson, objecting to proposals submitted to the Alaska Board of Fisheries to open Resurrection Bay to subsistence gill netting of salmon. Richardson requested the Council file an official objection with the Board. Following discussion, it was moved by Campbell, seconded by Gillespie and unanimously carried to notify the Alaska Board of Fisheries of the City's strong objections to the opening of Resurrection Bay to subsistence gill netting of salmon. Hugli stated the motion could be followed up with a resolution approved by Council at its December 8 meeting. I. City Manager reported the administration had negotiated a price of $57,700 with Century-Quadra for Phase I of the concept plan and cost estimates for the replat of the Terminal Addition. He explained the tasks which would be performed by Century-Quadra in Phase I of the contract and requested Council approval to enter into an agreement with the engineering firm for the project. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried to authorize the City Manager to enter into a contract with Century-Quadra for the sum not to exceed $57,700 for Phase I of the Terminal Addition concept plan. J. City Manager gave a brief report on the Alaska Municipal League's annual meeting held in Fairbanks November 12-15, which had been attended by staff and Council. He stated Lt. Governor Miller had reported that the Governor was proposed to increase the minimum entitlement for revenue sharing in 1981 to an amount which would mean an increase from the current City's share of approximately $49,000 to an estimated $350,000. City Manager commented that he had been appointed to a committee whose task it was to keep in direct contact with the Governor's office and the Legislature regarding the revenue sharing increase. K. City Manager distributed November 24, 1980, letter and attached "Findings of Fact and Conclusions of Law" from Kenneth P. Jacobus of Hughes, Thorsness, Gantz, Powell & Brundin, notifying the City of its success in winning the court case filed by Seward Chapel. XIII. COUNCIL DISCUSSION: A. Hugli referred to a petition received November 24, 1980, and distributed to Council which contained the signatures of 22 residents of Glacier View Apartments in the Marathon Addition. The petitioners requested the City allow the Lions Club to remove shrubs and alders from an adjacent lot owned by the City in order to improve the tenants' view of the Bay. Swartz spoke in favor of the petitioners' request. Soriano reminded Council that another resident of Glacier View, but with an opposing viewpoint, had appeared before Council at a previous meeting and requested that the alders remain on the lot in order to provide a greenbelt area. Following discussion, Hugli, with Council consent, directed the City Manager to resolve the issue in the best possible manner. i PAGE 159 REGULAR MEETING - NOVEMBER 24, 1980 VOLUME 19 XIII. COUNCIL DISCUSSION: (cont'd) C ATTORNEY: B. Hugli stated the Council needed to address the issue of retaining new legal counsel and referred to the earlier presentation by representatives of Hughes, Thorsness, Gantz, Powell & Brundin and to a letter dated November 21, 1980, from Erwin, Smith & Garnett, distributed that evening. Following discussion, it was moved by Gillespie, seconded by Soriano and carried as follows to retain Hughes, Thorsness, Gantz, Powell & Brundin: I Ayes: Noes: Absent: Cripps, Gillespie, Hugli, Soriano and Vincent Campbell and Swartz None Hugli directed the City Clerk to respond to the Erwin, Smith & Garnett letter, thanking them for their interest in representing the City of Seward. C. Swartz commented that many more citizens would probably attend Council meetings if the chambers were not so smoke-filled. Following discussion, it was moved by Swartz and seconded by Soriano that the Council Chambers be designated as a "no smoking" chambers. It was moved by Vincent, seconded by Hugli and carried as follows to table the motion: Ayes: Noes: Absent: Cripps, Gillespie, Hugli and Vincent Campbell, Soriano and Swartz None D. Campbell urged Council to review the Hospital financial problems seriously and in depth. He stated at the present time the Hospital, because of its financial difficulties, was in the position of taking advantage of its employees. I E. In answer to an inquiry from Gillespie, City Manager reported the warrants on junked and abandoned vehicles would be sent to owners and residents within the next week. F. Cripps extended a happy Thanksgiving wish to all. G. In answer to a question from Vincent, City Manager stated that although there were no immediate plans for such, if the City at some future date did decide to locate a dry harbor in the area presently used for ball fields, the fields would be relocated prior to the harbor construction. XIV. CITIZENS' DISCUSSION: No one appeared from the audience at this time in order to be heard. XV. ADJOURNMENT: The meeting was adjourned at 10:30 p.m. ,/) (l '- \ , (1 ) <- " ; C'!; \ ,t, . \ (~~ty SeSll) _, ,:' '~, . ,~~"~~"'i', . . 9', ,-" .: ',' " ~~l' ". t... ).~... (.- i~ '~",::." " I t /"'Zr ,'~ "7 Raymond)L. Hugli (../ Mayor n PAGE 160 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 I. CALL TO ORDER: The December 8, 1980, regular meeting of the Seward City Council was called to order at 7:32 p.m. by Mayor Hugli. II. OPENING CEREMONY: Councilmember Campbell led the pledge of allegiance to the flag. I II . ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie, Soriano and Swartz (absent, with Council consent, was Vincent) Present also: City Manager Johnson, City Attorney Arvidson, Administrative Assistant Schaefermeyer and City Clerk Shanley IV. APPROVAL OF MINUTES: It was moved by Soriano, seconded by Swartz and unanimously carried by all those present to approve the regular meeting minutes of November 24, 1980, as written. V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: City Manager requested that the following items be added to the consent calendar: 9. "Periodic Estimate for Partial Payment" No.4 as received from Brown Construction for work performed on the sewage treatment project, totaling $266,090.21 - approve for payment and file 10. Invoices received from Skyline Electric for services performed on the Seward electric system improvement project: Date - Invoice No. Amount 10/31/80 - 112 12/2/80 - 113 12/2/80 - 114 TOTAL $ 5,877.00 43,974.74 2,853.40 $ 52,705.14 - approve for payment and file 11. Pay Request 7A from Fischbach & Moore for work performed on the Seward electric system improvement project, in the amount of $154,163.83 (this amount was later amended by City Engineer Small to $152,677.03) - approve for payment and file 12. Invoice from General Electric Company for materials for the Seward electric system, not to exceed $148,479.50 - approve for payment and file City Manager requested the following items be added to the regular meeting agenda: IX. Ordinances and Resolutions: C. Resolutions: 2. Proposed Resolution No. 80-53, repealing Resolution No. 80-51 and accepting $1,500,000 from the State of Alaska for development of the port facility at the 4th of July Creek Marine Industrial Park 3. Proposed Resolution No. 80-54, authorizing applications for funding assistance for an outdoor recreation project I I I PAGE 161 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: (cont'd) VIII. Citizens' Discussion: (with prior notice only) B. Fred Woelkers - livestock holding facility Following discussion, it was moved by Swartz, seconded by Soriano and unanimously carried by all those present to approve the regular meeting agenda and consent calendar as amended and the following actions were taken: CITY 1. ATTORNEY: November 26, 1980, letter and invoices received from Hughes, Thorsness, Gantz, Powell and Brundin for legal services rendered, were approved for payment as follows and filed: 1980 Seward General Obligation $ 3,589.07 Bond Issue Engineering Science of Alaska 11,253.93 vs. City of Seward Seward Chapel vs. City of Seward 9,579.81 TOTAL $ 24,422.81 ABC B: 2. November 20, 1980, letter from Seward Longshoremen's Benevolent Association regarding the Palace Bar opera- tions, was noted for information and filed. ABC B: 3. November 26, 1980, letter received from the Alcoholic Beverage Control Board, noticing of applications for the renewal of liquor licenses for 1981 for the Harbor Dinner Club and Yukon Liquor Store, was noted and filed without objection. ABC B: 4. December 1, 1980, letter received from the Alcoholic Beverage Control Board regarding action taken by the Board on the liquor license transfer request for the Flamingo Lounge was noted for information only and filed. LOC ORGS: 5; "Application for Permit for Authorized Games of Chance and Skill" as submitted by the Seward Senior Citizens, Inc. for calendar year 1981 was approved for the Mayor's signature and filed. 4TH OF 6. JULY CREEK AREA: November 11, 1980, Invoice No. 051075-5 in the amount of $16,154.67 from R & M Consultants, Inc. for design and construction management of the Nash Road extension survey, was approved for payment and filed. ELECTRIC 7. DEPT: November 11, 1980, Invoice No. 051144-1 in the amount of $284.56 from R & M Consultants, Inc. for preparation of the wetland permit application relative to the Electric System improvement project, was approved for payment and filed. CITY 8. ATTORNEY: "Notice of Dismissal Without Prejudice By Plaintiffs Before Answer" as filed in the Superior Court in Sailing Inc., Dean Lust, et al vs. Foster M. Singleton and the City of Seward, Alaska, was noted for information and filed. SEWAGE 9. TREATMENT: "Periodic Estimate for Partial Payment" No. 4 as received from Brown Construction for work performed on the sewage treatment project, totaling $266,090.21, was approved for payment and filed. "1 PAGE 162 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 V. APPROVAL OF CONSENT CALENDAR AND REGULAR MEETING AGENDA: . (cont'd) ELECTRIC DEPT: 10. Invoices received from Skyline Electric for services performed on the Seward electric system improvement project as follows, were approved for payment and filed: Date - Invoice No. Amount 10/31/80 - 112 12/2/80 - 113 12/2/80 - If4 TOTAL $ 5,877.00 43,974.74 2,853.40 $ 52,705.14 ELECTRIC DEPT: 11. Pay Request 7A from Fischbach & Moore for work performed on the Seward electric system improvement project, in the amount of $154,163.83 (this amount was later amended by City Engineer Small to $152,677.03), was approved for pay- ment and filed. ELECTRIC DEPT: 12. Invoice from General Electric Company for materials for the Seward electric system, not to exceed $148,479.50, was approved for payment and filed. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly member Darryl Schaefermeyer gave a verbal report on the Assembly meeting held December 2, 1980. VII. PUBLIC HEARINGS: 4TH OF CREEK AREA: JULY A. Public hearing was opened on the proposed Lease Agreement and Dock Permit between the City of Seward and VECO Offshore Inc. for City-owned land and the public port facility at the Fourth of July Creek Marine Industrial Park. Messrs. Hassani and West of Century-Quadra, the City's consultants on the project, were present in the audience and Hassani referred to various site plans as posted and spoke on the status of the project development and the necessity to move 4th of July creek. City Manager referred to the posted site plan and the designated areas of the proposed lease and license with VECO. Messrs. Powell and Trevithick of VECO were present in the audience and, in answer to a question from Campbell, Trevithick stated as soon as the road was completed and VECO had access to the site, work would commence, with an anticipated completion date for Phase I of the development within 18 months. No one else appeared from the audience at this time in order to be heard and the public hearing was closed. Hugli reminded the administration that the City still had not received a copy of "Schedule B" as referred to in the Lease Agreement relative to the time frame for the expenditure of VECO's committed $5,000,000 investment. VIII. CITIZENS' DISCUSSION: (With prior notice only) ELECTRIC A. Chuck Lechner appeared from the audience and spoke against DEPT: the low voltage he had been experiencing at his business, Seward Machine Shop. City Engineer Tom Small appeared and commented on Lechner's remarks, stating that the City began over three years ago with plans to upgrade the Seward electrical system. In the past two weeks the system had been transferred to the new substation and a new transformer installed. He stated the City's voltage meters had already registered an improvement in the system and, with the anticipated arrival and installation of another transformer which would allow the mill to be on a separate circuit from the rest of the town, the electrical service should improve even more. Small stated the current voltage in Seward was better than had ever been available in the past and stated if Lechner was still having problems it might mean a local condition near his shop. He suggested that the City install a volt recording meter at Seward Machine Shop to monitor the voltage for a few days. PAGE 163 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 VIII. CITIZENS' DISCUSSION: (With prior notice only) ANIMAL B. Fred Woelkers appeared from the audience and explained to CONTROL:Council that he was negotiating with the State to lease property adjacent to the airport for use as a cattle holding facility. He stated prior to the State granting approval of the proposal he had been required to obtain a letter of non-objection from the City of Seward. Woelkers spoke and answered Council questions on his proposal to lease four acres at the south end of the airport for a holding/quarantine facility for I cattle and other large animals. City Manager stated the administration had no objection to Woelkers' proposal but it should be made clear that the City would not extend utilities to the area. Woelkers stated he did not anticipate the need for any utilities. Following discussion, it was moved by Soriano, seconded by Campbell and unanimously carried by all those present to direct the administration to put together a letter of non-objection for Fred Woelkers. IX. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing and Enactment: None C. Resolutions: FISH & RES: WILDLIFE/I. Copies being made available to the public, Hugli read by title only proposed resolution opposing subsistence gill netting of salmon in Resurrection Bay, entitled: I A Resolution Opposing the Opening of Resurrection Bay to Subsistence Gill Netting of Salmon November 21, 1980, letter from Monty Richardson, requesting Council action in opposition to the proposal to open Resurrection Bay to sub- sistence fishing, and November 26, 1980, letter from City Clerk Shanley to the Alaska Department of Fish and Game, notifying the State of the Council's opposition as stated in a motion at the November 24 meeting, were noted. It was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-52. 4TH OF CREEK AREA! RES: JULY 2. Copies being distributed to Council and made available to the public, Hugli read by title only proposed resolution accepting $1,500,000 from the State of Alaska for the port development at the 4th of July Creek Marine Industrial Center, entitled: A Resolution Accepting a Transfer Agreement For the Seward Port Facility From the State of Alaska Department of Transportation and Public Facilities and Repealing City of Seward Resolution No. 80-51 I City Manager stated the purpose of the resolution was to accept two separate grants from the State of Alaska for the 4th of July Creek port development. He stated the $1,000,000 as accepted pursuant to the passage of Resolution No. 80-51 on November 24, 1980, could be combined with an additional grant of $500,000 and, with the two grants being considered as one, only one set of books would have to be kept. It was moved by Soriano, seconded by Cripps and unanimously carried by all those present to approve Resolution No. 80-53. - ~ PAGE 164 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 IX. ORDINANCES AND RESOLUTIONS: (cont'd) C. Resolutions: (cont'd) PKS & REC/ 3. Copies being distributed to Council and made available RES: to the public, Hugli read by title only proposed resolution authorizing the submittal of a grant application for the development of 3.5 acres of the 7th Avenue Greenbelt recreation area, entitled: A Resolution Authorizing Applications for Funding Assistance for an Outdoor Recrea- tion Project to the State Liaison Officer as Provided by the Land and Water Conserva- tion Fund City Manager commented that approval of the resolution would start the City on development of the first phase of the greenbelt area. He stated the 3.5 acres planned for development were located at the south-east corner of the 7th Avenue beach area near Railway Avenue and Ballaine Boulevard. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve Resolution No. 80-54 X. UNFINISHED BUSINESS: None XI. NEW BUSINESS: LAUBNER ADDN: A. "Notice of Sale of City Property by Sealed Bid - Lots 22 and 23, Block 10, Laubner Addition", as published four times in the local newspaper, was noted. Hugli stated only one bid had been received and he opened the bid as submitted by Ralph E. Moody and read in full the letter dated December 1, 1980, offering $7,500 for the purchase of the two lots. It was noted that a check in the amount of $1,500, covering 20 percent of the bid price as required by the City Code, accompanied Moody's bid. City Manager confirmed that the $7,500 bid by Moody was the minimum bid price as set by the Council following an appraisal report. City Clerk confirmed if there were no objections a public hearing would be scheduled for December 22 on sale of the property. MARINA SUB: B. The following items were noted relative to the lease of City-owned Lots 6 and 7, Block 1, Marina Subdivision, to Juris Mindenbergs: December 2, 1980, letter from City Clerk Shanley to Juris Mindenbergs, informing him of his default of the terms of the lease agreements Minute order of a portion of the City Council meeting of November 5, 1979, at which time Council acted to approve Mindenberg's construction plans and Mindenbergs confirmed his intentions to meet the November 1980 construction deadline A portion of the City Council meeting minutes of November 13, 1978, at which time the leases for Lots 6 and 7 were transferred from Plymire to Mindenbergs and a one year extension was granted for submittal of construction plans and a two year extension was granted for construction completion Lease dated November 8, 1976, for Lot 7, Block 1, Marina Subdivision Lease dated April 26, 1971, for Lots 5 and 6, Block 1, Marina Subdivision PAGE 165 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 XI. NEW BUSINESS: (cont'd) MARINA Juris Mindenbergs appeared from the audience and stated that SUB: economic factors prohibited him from proceeding with his development (cont'd)plans in the Marina Subdivision. He stated the motel vacancy rate for the Breeze Inn was such that he could not justify constructing an addition to the structure. He reported his plans for constructing a mini-warehouse facility had been delayed due to his unsuccessful efforts to obtain financing. Relative to his plans for "The Dinghy" on Lot 6, he stated he had not I received any favorable responses to his inquiries to open a quick-stop grocery store at the site. He requested Council approval of an extension of the construction deadline date as established in the original leases and extended in 1978 when the leases were transferred. Soriano commented that the Council had been amendable to extensions in the past but now was the time to see if someone else could undertake development of the parcels. Gillespie stated he agreed with Soriano relative to the foreclosure of Lot 7 but he commented that foreclosure proceedings on Lot 6 would be much more complicated due to the fact that physical improvements were involved. Following discussion, it was moved by Campbell, seconded by Swartz and unanimously carried by all those present that the City execute foreclosure proceedings on the lease of Lot 7, Block 1, Marina Subdivision, for non-compliance and any rental payments be prorated. I Relative to Lot 6, Gillespie stated he would be in favor of granting Mindenbergs an additional year's extension for construction. City Manager spoke in support of a two-year extension. City Clerk reported that currently Lots 5 and 6, Block 1, Marina Subdivision, were contained in one lease document. Lot 5 was used for parking for the Breeze Inn Restaurant located on Lot 3. Mindenbergs presently held the leases for all the lots involved but in the future such might not be the case and she recommended that the lease for Lots 5 and 6 be redrafted, separating the two into individual lease agreements. Following discussion, it was moved by Gillespie, seconded by Swartz and unanimously carried by all those present to grant an extension of the lease on Lot 6, Block 1, Marina Subdivision, for a two-year period for the construction deadline. XII. CITY MANAGER REPORTS: SEWAGE TREAT- MENT: A. City Manager requested Council authorization to enter into an agreement with Arctic Environmental Engineers for $9,800 to provide the design documents for the sewer line to service the Alaska Skill Center mechanical shop; it was so moved by Campbell, seconded by Soriano and unanimously carried by all those present. B. City Manager commented that the City owned a parcel of land in the Forest Acres area which John Gillespie was interested in purchasing. After researching the matter, it had been determined that when the State of Alaska issued the quitclaim deed to the City of Seward for the subject parcel, a provision had been written in the deed that if the property ceased to be used for recreational purposes it would revert back to State ownership; therefore, no negotiations could be made with Gillespie for purchase of the property. HOSPITAL: C. City Manager distributed letter dated December 8, 1980, from City Attorney Arvidson regarding the legality of using City funds for the maintenance and operation of Seward General Hospital. City Attorney spoke and answered Council questions on his letter. I XIII. COUNCIL DISCUSSION: PKS & REC: A. "City of Seward Park and Recreation Plan: 1980-1985" dated October 1980 and prepared by Recreation Director Christy Moeller, was noted. Moeller appeared from the audience and spoke and answered questions on the Plan. A map was posted which was taken from the 1979 7th Avenue Greenbelt feasibility and design plan as compiled by CH2M Hill and designated the area planned for development in the near future. Moeller explained that pursuant to the passage of Resolution No. 80-54, the City would be applying for a 50 percent matching grant to finance the estimated $445,000 project. Following discussion, Hugli, with Council consent, stated there was no objection to proceeding with the project. J 1;( PAGE 166 REGULAR MEETING - DECEMBER 8, 1980 VOLUME 19 RECESS: The meeting was recessed at 9:30 p.m.; reconvened at 9:40 p.m. XIV. CITIZENS' DISCUSSION: A. Bob Valdatta appeared from the audience and spoke in support of the City hiring a public relations expert. B. Bruce Trygstad appeared from the audience and spoke in support of the City investigating a "style service" import store/warehouse. 4TH OF CREEK AREA: JULY C. Jim Pruitt appeared from the audience and asked for a Council response to his November 24, 1980, letter proposing to lease 26 acres in the 4th of July Creek Marine Industrial Park. City Manager confirmed he had received a financial statement for Seward Ship's Chandlery, Pruitt's business enterprise, as requested by Council at its November 24 meeting. Campbell referred to Pruitt's July 28, 1980, letter which requested a lease of two to four acres. He stated a lease of that size was feasible and had, in fact, been worked into the preliminary Master Plan for the development as prepared by Century-Quadra. However, the 26 acres as requested in Pruitt's November letter was not considered feasible. Pruitt stated he realized he needed the additional acreage after he found out that he was wrong in assuming that the public berthing area would have preferential use rights for various users so haul-outs could be scheduled. Ron Trevithick of VECO appeared from the audience and stated that his firm was concerned with Pruitt's request. He stated VECO's plans for the area would be jeopardized if the City acted to allow a competing facility to locate adjacent to VECO's yard, especially at the outset of the development. Hugli stated that the shipyard would not have been feasible without an agreement between the City and a large firm like VECO because both were needed in order to obtain the necessary funding for the development. City Attorney Arvidson commented that the City was in the final stages of a project which had been under study for a number of years. He pointed out that VECO would be the initial firm to invest in the development with the City, therefore, deserved special consideration from the City when the City was dividing up the land in the area. He stated the City would never get a project underway if businesses were allowed to come in at the last minute and make proposals which conflicted with existing plans for an area. He stated the City had accommodated other users in its plan for the area and, in fact, had accommodated Pruitt's July proposal. Swartz remarked that she looked at the issue on the basis of projected employment rates and, therefore, supported the Master Plan for the 4th of July Creek Marine Industrial Park as presented. Gillespie commented that Pruitt's November proposal had the effect of jeopardizing the entire project and he was not willing to take that risk. Following lengthy discussion, it was moved by Swartz, seconded by Campbell and unanimously carried by all those present to authorize the City Manager to enter into negotiations with Jim Pruitt for the lease of 2.8 acres of ground which he originally asked for in the 4th of July Creek industrial area, with any and all of the legal data as required, including an audited financial statement, proof of financial capabilities and an agreement on the amount of investment, and a feasibility study in conjunction with the City's engineers, of just what he (Pruitt) hopes to accomplish. XV. ADJOURNMENT: adjourned at 11:13 p.m. ~ l J V ,,' L ! '. ': : , , ,t .~.,..--/ 1\ Raymond ~. Hugli' . Mayor I I I PAGE 167 REGULAR MEETING - DECEMBER 22, 1980 VOLUME 19 meeting as scheduled for Monday, December 22, of a quorum. " t /j (CitY'~~~l) ~,:,&4' .~ ~i;"- ~,\.;. ~ .<,~r -;~." (~ C~ ~\."t-\ Av ---------~~iFc~~~L~-------------------------------------------------- PAGE 167 SPECIAL MEETING - JANUARY 5, 1981 VOLUME 19 1. CALL TO ORDER: The January 5, 1981, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Hugli. "Notice of Special Meeting and Public Hearing" as posted and published two times in the local newspaper, was noted. II. OPENING CEREMONY: Councilmember Gillespie led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Hugli; Councilmembers Campbell, Cripps, Gillespie and Soriano (Absent, with Council consent, were Swartz and Vincent) Present also: City Manager Johnson and City Clerk Shanley IV. APPROVAL OF CONSENT CALENDAR: (Added by Mayor, with Council consent) The Consent Calendar addition to the special meeting agenda, submitting six bills for payment, was made available to the public and distributed to Council. City Manager spoke and answered questions on the various invoices. He requested that General Electric's payment be increased from the designated $11,979.50 to $135,979.50, thus including the $124,000 payment for which he had received Council approval via telephone the previous week. Following discussion, it was moved by Campbell, seconded by Soriano and unanimously carried by all those present to approve the consent calendar as presented and the following actions were taken: SEWAGE TREATMENT: l. "Periodic Estimate for Partial Payment" No. 5 from Brown and Associates for work performed on the sewage treatment project, totaling $54,541.18, was approved for payment and filed. ELECTRIC DEPT: December 6, 1980, Invoice #C12-l00-80 from T & R Electric in the amount of $20,700 for 3 transformers for the standby generators, was approved for payment and filed. 2. 4TH OF JULY CREEK AREA: 3. The following invoices as submitted by R & M Consultants for work performed relative to the Nash Road extension survey and design, were approved for payment and filed: Date 12/08/80 12/08/80 Invoice No. 051075-6 051144 Amount $ 11,189.71 934.79 $ 12,124.50