The URL can be used to link to this page

Home My WebLink About02132006 City Council Packet t- .. 11; .. City Council Chambers torino a006 ,~ February 13, 2006 Beginning at 7:30 p.m. The City of Seward, Alask~l February 13, 2006 . .. Vanta Shafer Mayor Term Expires 2007 1. 2. 3. 4. Willard E. Dunham Vice Mayor Term Expires 2006 Robert Valdatta Council Member Term Expires 2007 Robert Thomas Council Member Term Expires 2007 Steve Schafer Council Member Term Expires 2007 Dorene M. Lorenz Council Member Term Expires 2006 Jean Bardarson Council Member Term Expires 2006 . Clark Corbridge City Manager .. Jean Lewis City Clerk Brad Meyen Cheryl Brooking City Attorney City Council Meeting 7:30 p.m. Council Chambers Call to order Pledge of allegiance Roll call Special orders, presentations and reports A. Prooclamations and Awards 1. Proclamation congratulating Icicle Seafoods on 41 years in business........................... ..... ..Pg 4 B. Borough Assembly Report C. City Manager's Report D. City Clerk Report E. Mayor's Legislative Report from Juneau F. Other Reports, Announcements and Presentations 1. Seward's acceptance of the National Flood Insurance Program Community rating system from FEMA...Pg 5 2. Community awareness of Boys & Girls Club presentation by Debbie Bond. 3. Update on Forest Acres/Japanese Creek Levee Road Projel~t by Bill Nelson of engineering firm, William J. Nelson & Associates. 5. Citizens' comments on any subject except those items scheduh!d for public hearing. {Those who have signed in will be given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this Glgenda item.] 6. Approvall of agenda and consent agenda [Approval of Consent Agenda passes all routine items indicated by asterisk ("'). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] City of Seward, Alaska February 13, 2006 Council Agenda Page 1 7. Public Hearings A. Ordinances for Public Hearing and Enactment 1. Ordinance 2006-001. amending Seward city code 12.01.010. Use of timber piling, post or piers prohibited. .............................................................. .Pg 6 8. Unfinished business - None 9. New Business A. Resolutions . 1. Resolution 2006-15. amending the 2005 budget and appropriating $192,943 from the State of Alaska to the Public Employees Retirement System on behalf of the city of Seward, per Senate Bill 46............................................................. ..Pg 9 *2. Resolution 2006-16. authorizing the city manager to pay dues owed to the Alaska Power Association (formerly ARECA) for the year 2006 in the amount of ($17,152.00)................ ...................... ................. ............ ........... ..Pg 12 3. Resolution 2006-17. authorizing the city manager to purchase a Volvo G990 Motor Grader from Construction Machinery Inc., for an amount not to exceed $297,395 and appropriating funds.................................................... ................... .Pg 15 *4. Resolution 2006-18. authorizing additional payment in the amount of $3,125.63 to CMI for the rental of an excavator. . .. ... . ..... .... .. .... ... .. . .. . .. ... '" . ... .. . .. . .. . ..Pg 18 5. Resolution 2006-19. approving the city of Seward's calendar year 2006 Revised Federal Legislative Priorities........................................................... ..Pg 21 B. Other New Business Items *1. Approve the January 9, and January 23, 2006 regular city council meeting minutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :. . . . . . . . . . . . Pg 25 2. Discussion on establishing an alternate energy committee. 3. Schedule a work session on the Jesse Lee Leadership proposal. . 10. Informational items and reports (No action required) A. Information on the "CommunityExpress" Program from the Small Business Administration........................................................... .................. ..Pg 41 B. Information on coal gasification. ....... .... ... ........... ......... ...... .... ... ... ...Pg 45 City of Seward, Alaska February 13, 2006 Council Agenda Page 2 11. Council comments 12. Citizens' comments [5 minutes per individual - Each individual has one opportunity to speak.] 13. Council and administration response lto citizens' comment 14. Adjournment . . City of Seward, Alaska February 13, 2006 Council Agenda Page 3 i ~ u.s. o..pllrhnent of Humeland SeCllnly 500 C Sln,"l, SW Washington, DC 20472 OCT .. 1 2005 7."~f"l.~~-"'" l~ ' - ~\ \'6., ,t! \:rtf' 0\)"'/ ~~'!~~_1~?>" FEMA Phil Shealy Manager, City of Seward Post Office Box 167 Seward, Alaska 99664 Dear Mr. Shealy: I would like to congratulate your community on its application to the National Flood Insurance Program's (NFIP) Community Rating System (CRS). The voluntary actions undertaken by your community exceeding the minimum st!Uldards. of the NFIP have been verified and meet the requirements for a Class 9 rating. The reward for your community's activities ,vill be a five percent discount for NFIP policies issued or renewed in Special Flood Hazard Areas 011 or after October 1, 2005. This saving is a tangible result of the flood mitigation activities your (:ommunity has implemented that protect lives and property. It should be noted that there are no CRS discounts for Preferred Risk Policies (available for eligible Zone B, C, and X properties); and the discounts in Zones B, C, X, D, AR, and A99 are limited to ten percent in Class 1-6 comritunities, and five percent in Class 7-9 communities; because the rates for these zones already reflect significant premium reductions. All CRS discounts are applied before the addition of the Federal Policy Fee. Provided that there are no NFIP compliance actions, the rating will be automatically renewed yearly and a letter will not be sent. This renewal will occur as long as your community continues to implement the activities you certify annually each October. If no additional modifications or new activities are added, your community will not receive another verification visit for five years. Meanwhile, the Federal Emergency Management Agency (FEMA) will periodically send you CRS information to keep your community informed. You arc encouraged to add new activities annually in order to obtain a bctter CRS classification. Each improvement in CRS Class results in greater flood insurance premium savingS and brings your community closer to heing truly disaster resiistant. If you have any questions on the enclosed scoring or need additional information, please contad the FEMA Regional Office in Bothell, Washington, by telephone at (425) 487-4717. . Sincerely, ~../.~~ David 1. Maurstad Acting Director Mitigation Division Emergency PreparedneSs and Response Directorate Enclosure OuS Sponsored by: Corbridge Introduction Date: January 23, 2006 Public Hearing Date: February 13, 2006 Enactment Date: February 13, 2006 CITY OF SEWARD, ALASKA ORDINANCE 2006-001 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE 12.01.010. USE OF TIMBER PILING, POST OR PIERS PROHIBITED . WHEREAS, staff is requesting to amend ordinance 12.01.010 Timber piling, posts, or piers; and WHEREAS, code 12.01.010 Timber piling, posts or piers prohibited in its current format: 'Construction of structures with timber piling, posts, or piers as the sole structural support, except for docks or wharves, is prohibited', is extremely vague and antiquated; and WHEREAS, it is recommended that City Council updates ordinance 12.01.010 Timber piling, posts or piers prohibited to read: 'Construction of structures with timber piling, posts, or piers as the sole structural support is prohibited except for docks, wharves, and other engineered stand-alone structures expressly approved by the Building Official in accordance with the IBe as adopted by the city. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code is hereby amended to read as follows: 12.01.010 Timber pilinl!s. posts or piers prohibited is hereby amended as follows (StrikethrOHgh6 = deletions and, bold italics = new): Construction of structures with timber piling, posts, or piers as the sole structural support, 8K6ej3t fer seeks sr WB.BiTeS is prohibited except for docks, wharves, and other engineered stand-alone structures expressly approved by the Building Official in accordance with the IBe as adopted by the city. Section 2. This ordinance shall take effect 10 days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS 13th DAY OF February, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor C06 Council Agenda Statement . Meeting Date: January 23,2006 Clark Corbridge, City Manager c!q)L { - (tj - () {, Tom Shepard, Project Manager ig To: From: . Agenda Item: 2006- Amend Ordinance 12.01.010 Timber, pilings, posts, or piers prohibited BACKGROUND & JUSTIFICATION: Current City code item 12.01.01 0 Timber pilinl:S, posts, or piers prohibited states, in its entirety that 'Construction of structures with timber piling, posts, or piers as the sole structural support, except for docks or wharves is prohibited'. -?7 Staff would like to amendthe code to read: 'Construction of structures with timber piling, posts or piers as the sol_e_.s~tural support, is prohibited except for docks, wharves, and other engineered stand-alon(iiiiTiiatij)tructures expressly approved by the Building Official in accordance with the IBC as adopted by the city. Staff feels the amendment is necessary due to the fact that the current writing of 12.01.010 is extremely vague making it equally limiting rega~ding the use timber pile construction approaches. The original ordinance was written and revised in 1973 and 1982, respectively. Research regarding the details around the reasoning behind the ordinance uncovered very little information leaving the ordinance extremely vague. The ordinance in its current form makes no mention of other building codes that govern the use of timber or of the use of wood preservative techniques. There have been substantial improvements to each in the past 25 years. The current mc code has provisions for timber pile construction and for the types of wood treatments. There is a place for timber pile construction such as unheated sheds, minor storage facilities, temporary facilities, etc... With the current code standards, modem wood treatments, and with the Building Department oversight, timber construction can be an effective and useful form of construction in the appropriate situation. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: Klv:1f.~ _ jJ D}J r;: ~tz;v~ ~-rr 007 RECOMMENDATION: For Council to approve staffs recommendation to amend Ordinance 12.01.010 Timber pilings, posts, or piers prohibited to read: 'Construction of structures with timber piling, posts or piers as the sol trUC't&al support, is prohibited except for docks, wharves, and other engineered stand-alon i1heafed tructures expressly approved by the Building Official' in accordance with the mc as adopte y the city. . cos Sponsored by: Corbridge CITY OF SEW ARD, ALASKA RESOLUTlON 2006-15 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2005 BUDGET AND APPROPRIATING $192,943 FROM mE STATE OF ALASKA TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM ON BEHALF OF THE CITY OF SEWARD, PER SENATE BILL 46 . WHEREAS, the Alaska State Legislature passed Senate Bill 46 in 2005 resulting in First Special Session Legislative Appropriation 05 Se:ction 59, authorizing funding to cover the annual 5% increased PERS employer costs for political subdivisions of the State of Alaska; and WHEREAS, the annual cost increases for Seward in 2005 amounted to approximately $192,943, and that amount was appropriated dir,ectly from the State to the Division of Retirement and Benefits, on behalf of the City; and WHEREAS, in addition to the direct appropriation to PERS on the City's behalf, the City of Seward elected to pay the 5% increase in PERS contribution rates based on an actuarial report from the State of Alaska PERS dated June 30, 2004, reporting the City of Seward's unfunded actuarial accrued liability of $4,397,000. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The 2005 Operating Budget shall be amended by appropriating $192,943 from the General Fund state grant revenues account 101-0000-4680-0200 to various department retirement expense accounts allocated on a pro-rata basis, to accounts x01-xxxx-5060. Section 2. This resolution shall be retroactive to December 31, 2005. Section 3. This resolution shall take eff,ect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor ~~.~ COUNCIL AGENDA STATEMENT Meeting Date: February 13, 2006 Clark Corbridge, City Manager ()J- z. -] -~j, Kristin Erchinger, Finance Director fY Through: From: Agenda Item: 2005 Budget Amendment appropriating State PERS contribution per SB46 . BACKGROUND & JUSTIFICA nON: In 2005, the State legislature passed Senate Bill 46, appropriating funds directly to PERS on behalf of Alaska municipalities, to help offset retirement liability cost increases to local taxpayers. Essentially the legislature paid the equivalent of the 5% added yearly rate increase to the City's contribution rate, equal to $192,943. This amount was paid directly to the City's PERS account with the State of Alaska Division of Retirement & Benefits. While the funds did not come directly through the City, we are nonetheless required to account for the State's contribution on the City's books, and to book the corresponding expense. Despite the legislature's direct appropriation, the City elected to continue to pay the 5% annual rate increase in 2005, to offset -- to a small degree - the growing unfunded liability to PERS. As of June 3D, 2003 the City of Seward's actuarially determined unfunded liability was estimated at $4,397,000. At that time, the City's actuarially required contribution to PERS was 3.74% of covered payroll. One short year later (as of June 3D, 2004), the City of Seward's actuarially determined unfunded PERS liability grew to $6,288,000 (an increase of $1,891,000), and the annual contribution rate was calculated at 22.47% of covered payroll. The increase in actuarially determined unfunded liabilities has much to do with the actuarial assumptions in place at the time of the valuation. However, the magnitude of unfunded liabilities is also fueled by the artificially lower required contribution rates recommended by the retirement boards. The State's retirement boards have historically increased required contribution rates no more than 5% per year in order to minimize adverse budgetary impacts to communities and local taxpayers. However, for each year the City pays rates less than the actuarially determined rate, the City unfunded liability grows, due to the lack of invested funds on-hand, from which to earn investment income and offset necessary contributions. CONSISTENCY CHECKLIST: 1. Comprehensive Plan 2. Strategic Plan 3. Other 4. Not applicable Yes No -X FISCAL NOTE: The State's contribution of $192,943 is considered a State grant award and is recognized as such on the City's financial statements, and an equivalent amount is recorded as retirement expense, allocated on a pro-rata basis, to each dppartment's operating budget. Approved by Finance Department ~..../'~ C 10 RESOLUTION 2006-15 State PERS Contribution per Senate Bill 46 Page Two . RECOMMENDATION: Council approve Resolution 2006-15- amending the 2005 Operating Budget by appropriating $192,943 from State grant revenues account 101-??oo-4680-0200, to various fund retirement expense accounts, on a pro-rata basis, to accounts XOI-XXXX-5060, effective retroactive to December 31,2005. 011 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PAY DUES OWED TO THE ALASKA POWER ASSOCIATION (FORMERLY ARECA) FOR THE YEAR 2006 IN THE AMOUNT OF $17,152.00 WHEREAS, the Alaska Power Association (AP A, formerly ARECA) is the organization representing telephone and electric utilities in the State of Alaska; and . WHEREAS, the AP A organization provides a forum and opportunity for interaction and professional coordination of Electric Utility activities and is an extremely valuable organization for the City to belong to and participate in; and WHEREAS, the dues for AP A for the year 2006 is Seventeen Thousand One Hundred Fifty- two Dollars $17,152.00; and WHEREAS, the dues represent a 3.34% increase and the establishment of a cash reserve account as part of a business contingency plan; and WHEREAS, It is important for the City of Seward to maintain contact on a professional basis with other electric utilities in the State of Alaska, and in the nation, in order to benefit from their larger sizes which allows us to participate in multiple training and educational programs which we cannot afford to support on the local level. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to pay the year 2006 dues to AP A in the amount of Seventeen Thousand One Hundred Fifty-two Dollars ($17,152.00). Section 2. This resolution shall take effect immediately upon its adoption. 012 COUNCIL AGENDA STATEMENT Through: Clark Corbridge, City Manager Meeting Date: February 13, 2006 From: Tim Barnum, Electric Utility Manager . Agenda Item: Payment of 2006 Alaska Power Association Dues BACKGROUND & JUSTIFICATION: Alaska Power Association (formerly ARECA) is the organization representing telephone and electric utilities in the State of Alaska. It is extremely important for the City of Seward to meet and work with other electric utilities on common problems of all types and have a voice on electrical issues on the local, state and national political arena. This is the most valuable organization to which the City of Seward Electric Utility belongs. The dues for 2006 are Sixteen Thousand Six Hundred Fifty-six dollars ($16,656.00) and a Reserve Surcharge of Four Hundred Ninety-six dollars ($496.00). This brings the total amount due to Seventeen Thousand One Hundred Fifty-two dollars ($17,152.00). The City of Seward dues for 2005 were Sixteen Thousand One Hundred Seventeen dollars ($16,117.00). The 2006 dues are Sixteen Thousand Six Hundred Fifty-six Dollars ($16,656.00), an increase of Five Hundred Thirty Nine Dollars ($539.00) and a reserve surcharge of Four Hundred Ninety Six Dollars ($496.00). The APA Board of Directors approved Policy 11-6 that authorizes the establishment ofa cash reserve account for the trade association as part of a business contingency plan. This surcharge is being applied to all Active and Contributing Members of the trade association. . The money is budgeted in account 501-5400-5130. Council approval is required since the dues exceed Ten Thousand Dollars ($10,000.00). CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: 013 FISCAL NOTE: Money is budgeted in Account 501-5400-5130. Approved by Finance Department: .:M~;;i;;;vv!A.J'~V\ RECOMMENDATION: City Council approve Resolution 2006-16 authorizing the City Manager to pay year 2006 dues for Alaska Power Association (formerly ARECA) in the amount of Seventeen Thousand One Hundred Fifty Two Dollars ($17,152.00) from Account 501-5400-5130. j . 014 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A VOLVO G990 MOTOR GRADER FROM CONSTRUCTION MACHINERY, INC., FOR AN AMOUNT NOT TO EXCEED $297,395 AND APPROPRIATING FUNDS . WHEREAS, the City of Seward Public Works Department will be removing from service, the 1982 Caterpillar motor grader that is in the equipment fleet; and WHEREAS, the City's maintenance staff in the Public Works Shop have made a determination that the 1982 Cat 140G motor grader has served its useful life; and WHEREAS, the staff recommends that using the State of Alaska "Cooperative Option" with the purchase from Construction Machinery Inc. will allow for a considerable savings; and WHEREAS, the funding of the purchase will come from budgeted reserves in the Motor Pool Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council authorize the purchase of a G990 Volvo Motor Grader w/Sloper from Construction Machinery Inc. for an amount not to exceed ($297,395.00). Section 2. Funding for this piece of equipment was budgeted in the Motor Pool Fund account no. 102-1020-5930 in the amount of$225,000, so additional funds in the amount of$72,OOO are hereby appropriated from Motor Pool Fund retained earnings account 102-0000-3050. Section 3. This Resolution shall take effect immediately. . PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of February, 2006. 015 Council Agenda Statement Meeting Date: February 13, 2006 To: Clark Corbridge, City Manager W.e. Casey, Public Works Director jI.e. From: Agenda Item: 2006 Model G990 Volvo Motor Grader . BACKGROUND & JUSTIFICATION: The Public Works Department, as a portion of the 2006 Budget, scheduled the replacement of the City's 1982 Caterpillar 140G motor grader. The Public Works Street Department desires to purchase a 2006 Volvo Motor Grader, utilizing the State of Alaska's "Cooperative Purchasing" (piggy back) option. The State of Alaska has contracted with CMI (Construction Machinery Inc.) to provide motor graders for a period of three (3) years. Seward City Code 6.1 0.120(b) allows the city to utilize competitive bids obtained by other governmental units without the need to solicit its own bids. After considerable research, the Public Works Department has found the State contract price with CM! the best value for the City of Seward. Maintenance costs and reliability issues with the 1982 Caterpillar 140G motor grader have indicated that this machine needs to be replaced now. Attached you will find the specifications for the Volvo G990 motor grader we desire to purchase. Please note that the purchase of a Rockland 455A "sloper" has been added as an option to the base price which is Two Hundred Thirty Nine and Seventy-eight Dollars ($239,078.00). The base price including a sloper is Two Hundred Ninety Seven, Three Hundred Ninety-five Dollars ($297,395.00). The sloper will allow for greater efficiency in the maintenance of ditches and Right of Ways. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. ~ Other: FISCAL NOTE: 016 The purchase of the 2005 Volvo G990 with a sloper will be made from the Motor Pool Fund, Account Code 102-1020-5930. Approved by Finance Department: ~ ..4-~ RECOMMENDATION: Council authorize the City Manager to purchase a Volvo G990 Motor Grader from CM!, including a sloper, at a cost not to exceed ($297,395.00). The funds necessary to purchase the equipment will come from the Motor Pool Equipment fund retained earnings account 102-1020-5930. . . 017 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING ADDITIONAL PAYMENT IN THE AMOUNT OF $3,125.63 TO CMI FOR THE RENTAL OF AN EXCAVATOR WHEREAS, in September 2005 the Electric Department and the Public Works Department shared the rental of an excavator to complete numerous projects; and . WHEREAS, Council has already authorized payment of Fifteen Thousand Dollars ($15,000.00) in Resolution 2005-125; and WHEREAS, an excavator was rented from CMI for seventy (70) days; and WHEREAS, the number of new customer services and new subdivisions this Fall combined with reduced staff, and favorable weather conditions has increased the number of days the excavator is needed in order to maximize the number of projects completed before weather conditions prohibit additional ground work; and WHEREAS, the extended rental period allowed us the opportunity to replace a piece of problem underground primary cable in Camelot; and WHEREAS, the rental rate from CMI is well below the rates available locally. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes the additional payment to CMI in an amount not to exceed ($3,125.63). . Section 2. Funding is available from the Electric Department 2005 Operating Budget. Section 3. This resolution shall take effect immediately upon its adoption. . PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2006. C18 . . . .~ COUNCIL AGENDA STATEMENT Meeting Date: February 13, 2006 Through: Clark Corbridge, City Manager ()cJL 'l+Ow Tim Barnum, Electric Utility Manager From: Agenda Item: Over Expenditure on Excavator Rental from CMI BACKGROUND & JUSTIFICATION: In September, the Public Works Department and the Electric Department were in need of an excavator to complete several time sensitive projects, and agreed it would be a benefit to the City to combine our rental needs in order to obtain more favorable rental pricing terms. The Council approved Resolution 2005-125, authorizing payment not to exceed Fifteen Thousand Dollars ($15,000.00) to CMI for the rental of an excavator. Staffmg problems, weather, a back log of work and holidays caused the Electric Department to keep the excavator longer than initially planned. Keeping the excavator longer allowed the Electric Department to complete the back log of jobs and to replace a section of underground cable in Camelot that had been problematic for several years. The Electric Department was able to use it later in the construction season, due to its size and power. The additional use caused the total rental amount to exceed Fifteen Thousand dollars ($15,000.00). The total cost after being returned was Eighteen Thousand One Hundred Twenty-five Dollars and Sixty-three Cents ($18,125.63), exceeding the approved amount by Three Thousand One Hundred Twenty-five Dollars and Sixty-three Cents ($3,125.63). CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: 019 . .... FISCAL NOTE: The additional rental cost will be borne by the Electric Department, from within their 2005 Operating budget. Approved by Finance Department: ~ .f~1/J RECOMMENDATION: .. City Council approve Resolution 2006- I Cij authorizing the City Manager to pay for equipment rental in an amount not to exceed Eighteen Thousand One Hundred Twenty- five Dollars and Sixty-three Cents ($18,125.63). , . OtQ Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE CITY OF SEWARD'S CALENDAR YEAR ~006 REVISED FEDERAL LEGISLATIVE PRIORITIES WHEREAS, annually the City compiles a list ofprojects or issues that are identified as top federal legislative priorities; and . WHEREAS, the list of projects is compiled and distributed to the Alaska Congressional delegation, the Kenai Peninsula Borough, and the City of Seward's lobbyists; and WHEREAS, this prioritized list validates the projects and greatly focuses the efforts ofthe administration in our lobbying efforts; and WHEREAS, all the projects on this list are consistent with the City's Comprehensive and Strategic Plans; and WHEREAS, this repeals Resolution 2005-12, and adds the levee project and the research vessel designed to replace the Alpha Helix to the list. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. This list oflegislative projects is hereby declared to be the official legislative priority list for the City of Seward for the 2006 Federal legislative session: PORT AND HARBOR . 1. $3.5 million for inter-harbor improvements 2. $2.8 million for SMIC ship repair infrastructure improvements 3. $4.5 million for dock! breakwater SMIC 4. $4 million for SMC dock design and to prepare for home-porting the Alpha Helix replacement ROADS AND STREETS 1. $2.25 million for street repair 021 CITY OF SEWARD, ALASKA RESOLUTION 2006-19 PUBLIC FACILITIES 1. $19.5 million for Mary Lowell Center 2. $18 million for Long Term Care Facility 3. Lowell Creek Tunne1- Transfer of ownership to Army Corps of Engineers INFRASTRUCTURE 1. $1.5 million for the levee project 2. $4 million for replacement of two electric generators 1 Section 2. Resolution 2006-12 is hereby revoked. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor . 0.0') ,.. COUNCIL AGENDA STATEMENT From: Clark Corbridge, City Manager Meeting Date: February 13, 2006 Agenda Item: Calendar Year 2006 Federal Lecislative Priorities . BACKGROUND & mSTIFICATION: Annually the City compiles a list of projects or issues that we identify as our top legislative priorities. The list of projects is compiled into a package that is then distributed to the Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative package), and our lobbyist. This prioritized list validates the projects and greatly focuses the efforts of the Administration in our lobbying effort as we seek funding or other resolution through Federal government. The City administration recommends the following list to the City Council for review and approval. PORT AND HARBOR 1. $3.5 million for inter-harbor improvements 2. $2.8 million for SMIC ship repair infrastructure improvements 3. $4.5 million for dock! breakwater SMIC 4. $4 million for SMC dock design and to prepare for home-porting the Alpha Helix replacement ROADS AND STREETS 1. $2.25 million for street repair PUBLIC FACILITIES 4 1. $19.5 million for Mary Lowell Center 2. $18 million for Long Term Care Facility 3. Lowell Creek Tunnel- Transfer of ownership to Army Corps of Engineers INFRASTRUCTURE 1. $1.5 million for the levee project 2. $4 million for replacement of two electric generators CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. 023 FISCAL NOTE: The fiscal impact of this resolution is our federal legislative lobbying effort. Both the contract for our federal lobbyist and travel for City officials have been approved in the City's 2006 budget. Approveq,l)y Finance DepaQment ~~ RECOMMENDATION: Council approve Resolution 2006-19, approving the City of Seward's Calendar Year 2006 Federal Legislative Priorities. ~ . 024 City of Seward, Alaska January 9, 2006 Call to order City Council Minutes Volume 37. Page The January 9, 2006, regular meeting ofthe Seward City Council was called to order at 7 :30 p.m. by Mayor Vanta Shafer. Opening ceremony Steve Schafer led the pledge of allegiance to the flag. Roll call . There were present: Vanta Shafer presiding and Bob Valdatta Willard Dunham comprising a quorum of the Council; and Clark Corbridge, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Absent - None e last few years, this event had raised $995,000 orough Assembly Representative Ron Long stated they had adopte e ive an. He thought there may be the need for a special election to . decide a ref ere er two parts of a sales tax initiative, being the land trust issue and the person per day fo I providers. The matter referred could be repealed or held during the regular election. T ght up a lot oflegal issues, one of which was would the 60% be required to change the outc Budget hearings will begin discussion in May. The Assembly was re- writing the material sales (gravel pit) ordinance, and addressing noise and aquifer concerns. Long stated the Borough would be adopting their state legislative priorities on February 17th, and they needed Seward's as soon as possible for inclusion. City Manager's Report. City Manager Clark Corbridge learned there was not a hiatus or break in Seward during the holiday season! The city had been involved in preparedness for ash alert from Mt. Augustine in case there was an eruption. Corbridge gave a lengthy report on his ideas and 025 City of Seward, Alaska January 9, 2006 City Council Minutes Volume 37, PaKe recommendations for restructuring boards and commissions. He hoped to have that ready for cOlUlcil review by the end of the month. He informed the COlUlcil of many activities happening with the Sports and Rec program this month. Corbridge also informed the cOlUlcil that absent any violations, he would be authorizing an extension of the Maintenance and Operating Agreement with Seward Ships Drydock. Corbridge stated federal lobbyist Brad Gilman needed the city's priority list by the end ofthe month. Gilman had stated the money to transfer Lowell Creek tlUlnel to the Corps of Engineers was appropriated and within the Senate, but the responsibility had not been trans rred as yet. Corbridge had sent a noise waiver letter to DOT and they were ready to go out to b' e road project. He would be talking to them about access issues onto the Seward highwa ot levee project and & the Long Term Care Facility. He had also been meeting with the d of e Long Term Care Facility every week. Corbridge mentioned threatened litigation to mo area. He would also need to produce a resolution to Association for 4 months while a new contract wa aking Seward a stop in the fall of t fi VISTA vollUlteer would owell Center and the Long on Mountain Shooting Club. king gave a general report through er documents, continued to work on rked with the harbor on certain vessel cOlUlcil that the attorney's office was not sending She clari led they had always sent these reports in, but with staff and were no longer being sent to the cOlUlcil. The finance or the future. Brooking reminded they were not available for al matters could be discussed during executive sessions at any . Ion Report. Chair Shannon Kovac, reported they were inventorying 190 structures in the Se area that were 50 years of age or older. The old inventory list was created over 10 years ago, so new structures were being added. She stated a two-tier grant was submitted to the Rasmussen FOlUldation for the Jesse Lee Leadership School, and also a grant was submitted for funding to replicate a wrought iron fence for Hoben Park. Other Reports, Announcements and Presentations. City Council applicants Kevin Clark, Michael Calhoon, Marilyn Sutherland and Jean Bardarson introduced themselves and requested council support. 026 City of Seward. Alaska January 9, 2006 City Council Minutes Volume 37, Page The P ACAB annual report was presented by Chair Deborah Altermatt. A powerpoint presentation was given in conjunction with A VTEC on the new Fire Training Facility. Two videos were shown on the "Greenhouse concept" for the Long Term Care Facility. Non-objection of liquor r Liquor and Food Mar Citizens' comments on any subject except those items sched . Keith Campbell, hoped his endorsement of supporting on of death, but he was supporting Jean Bardarson for the city coun on many boards with her and he thought she had an extrao solutions for problems. Approval of agenda and consent agenda Motion (Lorenz/Valdatta) Motion passed Restaurant, Three Bears, Gateway egular city council meeting minutes, and the ng minutes were approved. oard was continued through January 31, 2007 by . Ordinance 2005-06. amending the Seward City Code 2.05.030, maintaining confidentiality of information related to competitive bidders and proposers. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. City Clerk Jean Lewis notified the council that proper notice had not been given for this ordinance. Motion (Dunham/Thomas) Postpone to January 23, 2006 to give 027 City a/Seward, Alaska January 9, 2006 City Council Minutes Volume 37, Page proper public notice. Motion Passed Unanimous Unfinished business - None New Business Resolutions Resolution 2006-02. to mandate conditions for the conference Lowell Center in conjunction with the vacation of a portion 0 Motion (Lorenz/Schafer) Amendment (Lorenz/Dunham) Amendment Passed Motion passed Resolution 2006-03. authorizing th with the Kenai Peninsula Borough, the Kenai Watershed Forum to acquire 00 project, and appropriati 00. o enter in emorandum of Agreement e Flood Service Area Board and the the FEMA Map Modernization Corbridge sta GPS systems for fu ears old. This would coordinate with current ng to bring the city's maps up to date for 2006. Approve Resolution 2006-03 the city had to come up with additional funding when he Id pay for it. d Service Board was for smaller proj ects, but they too were putting in er thought there would be further benefits down the road and that this would coordinate MA. Schafer stated the total budget for the Flood Service Board was $80,000, including all administrative costs and office expenses. He said there was usually a residual left over to put on flood control projects for the future. Corbridge thought this would generate a more accurate flood zone map and would be beneficial in dropping insurance rates for city residents. Motion Passed Yes: Lorenz, Valdatta, Schafer, Thomas, Shafer 028 . . City afSeward, Alaska Janua 9, 2006 City Council Minutes Volume 37, Pa e No: Dunham Resolution 2006-04. endorsing Seward's New Long-Term Care Facility as an official Greenhouse Project and selecting a final site layout. Corbridge asked Architect Mark Neebler to point out the difference between the laydown site plan and the one in the packet. Mayor Shafer banded the gavel to Vice-Mayor because of her employment with Providence, wti in, tberefore a conflict of . Mark Neebler, showed revisions that were made. He displayed the would be closer to the southern exposure than eastern, The other change around the houses to allow a walking area. They would maintain the e . highway and a huffer off of Dimond Boulevard. He noticed the s' quite a bit. Motion (ThomaslLorenz) Motion passed Resolution 2006-05, auth of the city in the prin amounts to acquire, harbor system an issuance, fixing certain d sa arbor improvement revenue bonds 4,500,000 for the purpose of providing additions and improvements to the City's cidental thereto, and to pay the costs of bond Approve Resolution 2006-05 . n $330,000 aye These would be t 'stin rchinger stated the increase in passenger fees would generate ds, and the 10% increase in moorage rates would generate $110,000. venue sources presented to the bond bank. Motion passed Unanimous Resolution 2006-0~ :~t~:~;i::.:e:ast ",<itS PaffiR Bleetfie t9 iRBtall seearity eamera:.i~:~ Sewara Hareer Me 1 i as fFem the State ef Alaska D~artHleat af Hemslll:l'ld Se~~ri~" ;a B:ppfepriatieg lI:l'l amelHlt Ret ta el.eeea $129,999 (Pulledfrom the agenda) Resolution 2006-07, amending the 2005 budget and appropriating $96,305.59 in sales tax revenues to the Hospital Debt Service Fund. 029 City of Seward, Alaska January 9, 2006 City Council Minutes Volume 37, Page Motion (Thomasillunham) Approve Resolution 2006-07 Motion Passed Unanimous Other New Business Items Appoint a new council member to fill the vacant seat left by the death of Margaret Branson, with a term to expire at the regular city election on October 3, 2006. Coun On a written vote tally taken before the motion, there was one vote ~ for Michael Calhoon, and three votes for Jean Bardarson. . Clark, two votes . After 18 additional votes, all ending in a stalemate of th Bardarson, the outcome was decided by a coin toss. Je council seat for a term to expire October 3, 2006. Nick Ranta, Jeremiah Campbell, Laura Cloward Bob White, Caroline Cherry, and Lee Kellar we Committee on Fish Restoration. A work session to discuss city, state a Monday, January 23, 2006 at 6:30 or 2006 was scheduled for or the purpose of a shooting range By unanimous cons provide books an the city council promotional account to 001 Library. Thorn he did not like ha a work session. He ur candidates that sought a position with city government. He stated aced on a council meeting agenda when they had already been seen at ed the middle school and thought it was great. . Schafer wished to express his appreciation to all who put their name in for city council. With the quality of candidates that applied, he thought it was a win-win situation for the council. Dunham thanked the Port City Players for a spectacular New Year's Eve ball and thanked the Alaska Railroad for providing the spot. He thought it was put together well and appreciated the planning that went into it. He wanted to send his condolences to the family of Jim Campbell. Campbell had done a lot for the community in the past. Dunham expressed his interest in a small 030 City of Seward. Alaska January 9, 2006 City Council Minutes Volume 37, Page business program he had heard about and wanted to see if the program could fit within the community. Lorenz was glad to see the commissions reporting to the city council. She appreciated those who serve on those commissions and those who threw their name in to serve on the city council. Lorenz looked forward to working with Ms. Bardarson. . Valdatta wanted a report on all the cells for the inspection report on the shiplift at SMIC. votes. Bruce Sieminski thought the council seat should . Mayor Shafer thought the New Year's Eve party was special, Players. She also congratulated Jean Bardarson and hoped to accom Citizens' comments Council and administration response t Adjournment Vanta Shafer Mayor 4 (City Seal) 031 City of Seward, Alaska January 23,2006 City Council Minutes Volume 37, Page Call to Order The January 23,2006 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening Ceremony Police Chief Clemons led the pledge of allegiance to the flag. Jean Bardarson was sworn in as city council member by City Clerk Jean Lewis. .. Roll Call There were present: Vanta Shafer presiding and Bob Valdatta Jean Bardarson Dorene Lorenz Steve Schafer Robert Thomas comprising a quorum of the Council; and Kirsten Vesel, Assistant City Manager Jean Lewis, City Clerk Johanna Dollerhide, Assistant City Clerk Absent - Willard Dunham Special Orders, Presentations and Reports Proclamations and Awards - None Borough Assembly Report. Borough Assembly Representative Ron Long was in Juneau at AML and not present. : City Manager's Report. Assistant City Manager Kirsten Vesel regretted City Manager Clark Corbridge was not feeling well tonight, but she was pleased to be in his place. She welcomed Bardarson to the council. ~Corbridge and Mayor Shafer would be attending the Peninsula Conference of Mayor's meeting tomorrow, January 24, 2006. Issues such as PERS, municipal revenue sharing, property taxes and exemptions, roads and ferries were on the agenda for this meeting. ~ Federal Lobbyist Brad Gilman had seen the federal priority list prepared by the city and recommended keeping the Lowell Creek Tunnel ownership transfer and removing the Long Term Care Facility. Gilman also recommended putting the Mary Lowell Center as a top priority and adding $2.5 million for underground electric utility lines into this project as a separate line item budget. ~ 032 City of Seward, Alaska January 23, 2006 City Council Minutes Volume 37, Page ... ~State Lobbyist Kent Dawson recommended adding the expansion of Spring Creek Correctional Center and working with A VTEC to establish a training program for correctional officers in Seward to the city's state priority list. ~The new Executive Liaison for Boards and Commission was posted in-house today and would be posted publicly next week. ~ Long Term Care Facility - the city had received documents from Architects Alaska, including concept design, concept narratives, site surveys, technical reports, and environmental assessments which would be distributed soon. ~The Polar Bear Plunge was a great success and the fund raising $95,000 - $100,000 this year, and Vesel said the city should be proud of their efforts to help the American Cancer Society. ~ Vesel gave updates on the Harbor expansion project for the North and South Harbors. ~The Electric Department had been working on replacing city lights. Today, Valley Power Systems and EPS were scheduled to begin their evaluations of the generating system. The new small bucket truck was in the paint shop, which should be fmished January 31, 2006. The city was scheduled to select arbitrators today to hear the six outstanding IBEW grievances. The IBEW withdrew the grievance on lighting the Christmas tree. ~Parks and Recreation's open gym numbers were increasing and the recent Wells Fargo Polar Bear Jump Basketball Tournament was a success. There were 100 kids enrolled in the Urbach's Youth Basketball League and seven teams in the adult co-ed volleyball league. The TYC winter carnival last Saturday was also a success. ~ Public Works handled the recent snowfall well. They were finishing the coronation system in well #2 and working on the pump at lift station #3, which had been refurbished. ~Levee Project - Administration received a 100% engineer drawing for the levee project. Staff was now able to meet with DOT to discuss the alignment of the highway and start working on the right-of-way land acquisition. ~ Alaska SeaLife Center - A quarterly board meeting was scheduled for January 27, 2006 in Anchorage. Corbridge and Vesel would both be attending. The Center had approached the city to lease out some additional tidelands, and administration would formalize their response after the board meeting. ~ Mary Lowell Center - Vesel attended meetings last week in Anchorage, where an analysis team reviewed the Portico 35% design plan. The program was still moving forward in the design phase. ~Jesse Lee Home - An interested Anchorage group planned to meet January 24, 2006 in Anchorage to propose the latest progress and attempt to obtain state support for the home. Vesel handed out a packet on the new developments with the project. ~The city continued to prepare for ash fall from the active Augustine volcano and continued to encourage the public to keep a watchful eye of the reports. Chamber of Commerce Report. Laura Cloward gave a quick recap of the recent State of the Chamber Address, which was a summary of the Chamber's actions in 2005. Cloward announced the new officers for the Chamber for 2006. There was one vacancy, as Stu Clark was moving from Seward and had resigned from the board. Within the board, they had representatives from the lodging, finance, attractions, charter fishing, site-seeing, education and marine service industries. The Chamber had 32 new members in 2005, 70% of them were Seward businesses. The Chamber 033 City of Seward, Alaska January 23, 2006 City Council Minutes Volume 37, Page showed a 28% visitor increase from last year. 19,000 people requested visitor guides, which showed a great interest. The derby brought in over $19,000 which would be put toward Fish Restoration. The upcoming Pac-Com Expo was an important industry show that should be well attended by Seward as well at the Pacific Marine Expo, cruise line meetings, and sportsman shows. The Board's strategic plan and the City's priority lists were very similar, which pleased Cloward. Marianna Keil and Bev Dunham were awarded as persons of the year for their work with the All-America City Award. Other Reports, Announcements and Presentations - None Citizens' comments on any subject except those items scheduled for public hearing. . Tom Swann spoke of the Jesse Lee Home and the recent happenings regarding the future of the building. Swann said the direction that was being proposed was to use it as a hub for a youth leadership educational facility and the idea was taking off very well. The State, as well as the Governor, was giving positive feedback on this idea. Swann was very excited with this development; saving the home was now a possibility. He appreciated the Jesse Lee home was staying on the priority list and stressed it was essential that it stay there. Approval of Agenda Motion (Lorenz/fhomas) Approval of Agenda Motion (SchaferlLorenz) Pull Ordinance 2005-06 and Resolution 2006-11 Passed by Unanimous Consent Motion Passed Unanimous The following was pulled from the agenda: ; Ordinance 2005-06. amending Seward City Code 2.05.030, maintaining confidentiality of information related to competitive bidders and proposers. ~ Resolution 2006-009. Recommending City Council and Kenai Peninsula Borough approval of the City owned Fourth of July Creek Subdivision, Seward Marine Industrial Center, Polar Seafoods Replat, a replat of Lots 1 and 2 Block 9 and Tract A, Fourth of July Creek Subdivision, Seward Marine Industrial Center and recommending Council approval of the proposed lease amendment requested by Polar Seafoods. Resolution 2006-011. authorizing establishing the Seward Community LibrarylMuseum Agency Fund for the purpose of accounting for donations to the project. 034 City of Seward. Alaska January 23. 2006 City Council Minutes Volume 37. Page Public Hearings Resolutions Requiring a Public Hearing Resolution 2006-008. consenting to the termination oflease with Dot and Linne Bardarson and entering into a new lease with Juris Mindenbergs, of Lot 5B, Block 1, Small Boat Harbor Subdivision. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. . Vesel said the lease had been signed and the terms were agreed upon. Harbonnaster Scott Ransom did not anticipate any problems with the new lease and the original lease would be terminated. Bardarson asked for a ruling on conflict of interest, as she was related to Dot and Linne Bardarson. Mayor Shafer ruled there was no direct or indirect financial gain therefore a conflict of interest did not exist. Motion (Lorenz/Valdatta) Approve Resolution 2006-008 Lorenz wished the city would consider selling this land instead of leasing it. Motion Passed Unanimous Unfinished Business - None New Business Ordinances for Introduction Ordinance 2006-001. amending Seward city code 12.01.010. Use of timber piling, post or piers prohibited. Vesel said this was in response to establishing a design phase for the pavilions. Project Manager Tom Shepard cited the code as it currently read. Shepard said the meaning was extremely vague and was written back in 1973. It did not address pressure treating and other vast improvements made over the years. The pavilion design had gone out to RFP and this change needed to be made before construction of the pavilions began. Motion (ThomasILorenz) Introduce Ordinance 2006-001 Lorenz asked if homes could be built with wood piling in the city if this ordinance was approved. Shepard said it would not. 035 City of Seward, Alaska January 23,2006 City Council Minutes Volume 37, Page Schafer said the city wouldn't need piling for foundations, but in some instances in swampy areas it could be advantageous to support heated structures. He would entertain striking the word "unheated" in the changed version. Lorenz agreed that this could be an appropriate application. Motion to Amend (Lorenz/Schafer) Strike the word "unheated" from the changed version Shepard was concerned with striking the word "unheated" because it could bring unexpected problems. Schafer said the language still included a case by case basis. ... Shepard stated the main point was the difference of an ancillary structure, such as a bam for livestock and a habitable structure that could have potential problems. Motion to Amend Passed Yes: VaIdatta, Lorenz, Bardarson, Mayor Shafer No: Thomas Schafer, Main Motion Passed Unanimous New Business Resolutions Resolution 2006-006. authorizing a contract with Puffin Electric to install security cameras in the Seward Harbor area utilizing Homeland Security grant funds, and appropriating funds not to exceed $119,439.00. Vesel said the Chief of Police and the MIS department worked collaboratively on the RFP for this project. The RFP was accepted and awarded to Puffin Electric. The total was $101,419.00 and staff recommended council award it tonight. .' Motion (Thomas/Lorenz) Approve Resolution 2006-006 Schafer asked if there was an RFP for the project. He asked if the remainder of the funds was for miscellaneous purchases, Police Chief Tom Clemons affIrmed this was correct. . Valdatta asked if the city was going to sub-contract this project, Clemons said Puffm Electric would be sub-contracting out to Simplex Grinnell. Motion Passed Unanimous Resolution 2006-010. authorizing the city manager to enter into a contract with Chugach Electric Association Inc. to extend our current agreement for sale and purchase of electric power while a new agreement is being negotiated. 036 City of Seward, Alaska January 23, 2006 City Council Minutes Volume 37. Page Vesel said the current agreement was under negotiation and a temporary extension was needed while the current negotiations were being worked out. Electric Department Manager Tim Barnnm stated this was merely an extension of the existing contract to give the city and Chugach Electric time to come to terms on a new long term contract. .. Motion (ThomasILorenz) Approve Resolution 2006-010 .. Motion Passed Unanimous Resolution 2006-012. approving the City of Seward's calendar year 2006 revised Federal legislative priorities. Vesel suggested council take the lobbyist recommendations very seriously and include those recommendations to amend the current priority list. Motion (Lorenzffhomas) Approve Resolution 2006-012 Motion to Amend (Thomas/Schafer) Under "Public Facilities," add item "la -- $2.5 million for underground power lines" and strike item number 2, "$18 million for Long Term Care Facility." Motion to Amend Passed By Unanimous Consent Main Motion Passed Unanimous Resolution 2006-013. approving the City of Seward's calendar year 2006 revised State legislative priorities. Vesel recommended council add the expansion of Spring Creek Correctional Center under "Public Facilities," Motion (LorenzlBardarson) Approve Resolution 2006-013 Motion to Amend (ThomasILorenz) Under "Public Facilities," include item number 3, "$25 million to expand Spring Creek Correctional Center" and add a new section titled "Beneficial Legislation," and include the following items under it: 1) Support Medicaid and its current funding level and capital improvements 2) Revenue Sharing 3) Community Dividends 4) PERSITERS Debt 037 City of Seward. Alaska Januarv 23. 2006 City Council Minutes Volume 37, Page 5) Resuming Ferry Service in Seward Motion to Amend Passed By Unanimous Cousent Main Motion Passed Unanimous Resolution 2006-014. approving the City of Seward's calendar year 2006 revised City legislative priorities. Vesel mentioned the intention of the city priority list was to apply and seek grants on a case by case basis. The more items on the list, the more grants the city would be allowed to apply for. . Motion (Lorenz/Bardarson) Approve Resolution 2006-014 Motion to Amend (Thomas/Schafer) Under "Infrastrucure," correct the numbered sequence for items 1-7, and under "Studies and Plans," add items 4 and 5, "Coal Gasification Feasibility Study" and "Fish Restoration." Motion to Amend Passed By Unanimous Consent Main Motion Passed Unanimous Other New Business Items Council discussed and decided that Council Member Schafer would attend the Pacific Rim Convention in Anchorage, February 22 and 23, 2006. Council discussed and decided that Mayor Shafer and Vice Mayor Dunham would travel to Juneau during the legislative session in February. Discussion on researching an alcohol and tobacco tax (Valdatta). . Valdatta said a large portion of the litter problem in Seward was due to cigarette butts, and if the city taxed tobacco sales, it could generate a lot of money to make the community look better. Other communities who had this tax had seen a lot of benefits from it, also. Valdatta clarified that he was not proposing an alcohol tax, just tobacco. Mayor Shafer said the city would have to find out how much it would cost to implement this tax and see how the community felt about this idea. Finance Director Kris Erchinger did some research on how much revenue was generated from alcohol/tobacco tax with other communities. Council really needed to ask if this was worth doing in the long run, financially. Most tobacco taxes were imposed on wholesale tobacco. Juneau had a $.30/pack retail tax, but other than Juneau, most communities taxed on the wholesale. The city 038 City of Seward, Alaska January 23, 2006 City Council Minutes Volume 37, Page needed to determine what type of tax, how much, and the reason for the tax. Schafer asked what the anticipated costs would be to authorize such a tax. Erchinger said taxing wholesale would not be that difficult, but retail would take more work. Mayor Shafer said the community should be questioned to see if they would be willing to implement a tobacco tax. .. Council directed administration to determine feasibility of implementing a tobacco tax. .. Informational Items and Reports City of Seward accounts receivable write-offs. Council Comments Bardarson thanked the board and felt very humbled to be sitting where the late Margaret Branson sat. Lorenz welcomed Bardarson to the council. She heard of rumors where certain members of council had not been playing by the rules and it appeared to her that the city had a body that was unethical. It had been suggested that certain members had publicly caused an action but then "behind the curtain" undermined the action. Lorenz felt humiliated and disappointed that something like this would take place. Valdatta welcomed Bardarson and mentioned the recent Railroad open house he attended. Mayor Shafer reported she recently visited some of the cruise line agencies in Seattle. Cruise lines sell packages for in town activities and contributed to Seward's economy. Part of the city's job was to retain the jobs here. Seward was in competition with Whittier, as it was more economical, gas wise, to go to Whittier. Seward had an advantage of having hotels and activities, though. Citizens' Comments Brad Snowden, welcomed Bardarson to the council. He asked Council to keep an open mind on an airport in Seward. Tryck Nyman and Hayes, who designed Wasilla's airport, was contacted by Snowden and he would keep the council posted on this correspondence. Snowden complimented Electric Department employee Jeff Estes, who had great ideas. Snowden presented the idea of Seward generating its own electricity hydro-electrically. He met with the city manager, the police chief and the mayor regarding a Mardi Gras in Seward. From the meeting, it was determined it would be best to put this off until next year. Snowden wanted to convey to the council that it shouldn't be considered as a "Brad Snowden" Mardi Gras. If Seward could do it this year, he urged the public to get the ball rolling to initiate it this year. Council and Administration Response to Citizens' Comments 039 City of Seward, Alaska January 23. 2006 City Council Minutes Volume 37, Page Valdatta said different options had been discussed many times regarding alternative energy, such as water and wind driven energy. Correspondence needed to be initiated to the various agencies. Adjournment The meeting was adjourned at 8:47 p.m. . Jean Lewis City Clerk Vanta Shafer Mayor (City Seal) . 040 Memorandum Date: January 23,2006 From: Mayor and Council r' \{Y Johanna Dollerhide, Assistant City Clerk rf J Small Business Administration's CommunityExpress Program On the January 9, 2006 City Council meeting, Council Member Dunham expressed interest in staff researching the CommunityExpress Program from the Small Business Administration (SBA). Since this request was made, staff has found the following: Subj: To: ~ " --The CommunityExpress Pilot Loan Program is a collaborative effort between the SBA and the National Community Reinvestment Coalition (NCRC) and its member organizations. --The SBA recognizes that many segments of the small business community continue to have difficulty in accessing capital from traditional lending markets. These businesses are generally newer, smaller businesses that need small size loans and equity investments accompanied by technical assistance, which are often comprised of small businesses owned by minorities, women. and veterans and bv businesses located or locatin!! in Low and Moderate Income urban and rural areas. --The NCRC is a non-profit trade association comprised of over 800 dues-paying community development and advocacy groups. Members are involved in and committed to revitalizing distressed and underserved communities. NCRC's mission is to ensure fair and equal access to credit, capital, and banking services and products to these communities. --Under the pilot, eligible lenders, which must be PLP lenders in good standing or selected non-PLP lenders in mostly rural districts, are authorized to adopt SBAExpress . streamlined and expedited loan processing and approval procedures to address pre-designated geographic areas, mostly LMI areas and women, veterans, and minorities. CommunityExpress participants are allowed to use, to the maximum extent possible, their own loan analyses, loan procedures, and loan documentation. This includes their own application fonns, internal credit memoranda, notes, collateral documents, servicing documentation, and liquidation documentation. Participants must, however, continue to follow their established and proven internal credit review and analysis procedures for loans of similar size and type. --CommunityExpress uses the abbreviated SBAExpress loan application, which is submitted to the Agency's centralized processing facility in Sacramento. The processing center determines the borrower's eligibility and issues an SBA loan number (usually within 36 hours), but does not perform any additional credit analysis. , --Community Express participants must service and liquidate their loan portfolios and use generally accepted commercial banking standards employed by prudent lenders. Routine loan servicing and liquidation issues will be handled by SBA's Loan Servicing Centers in Little Rock and Fresno, with all purchases handled by the two centers. --CommunityExpress includes a technical assistance component due to the unique problems and challenges faced by the small businesses targeted under this program. Borrowers must receive pre- and post-loan closing technical and management assistance from local non-profit providers and/or from participating lenders, with that assistance coordinated, arranged and, when necessary, paid for by CommunityExpress lenders. CommunityExpress lenders may also consider this technical assistance as a collateral enhancement. --SBA's percent ofloan guaranty under CommunityExpress confonns to standard 7(a) practice. The maximum loan amount under CommunityExpress is $250,000. 041 SBA - Financmg I Commllmty express oJ. U,S...... J.. ......4 _' lsearch this site EI En ESPE'~O; Select a Custom V!@ < FLI1!,;.IH:;llJf! Busin-sss (.!::)t);,-"H'L';.:ti,:~~:>S2ST2' :=.<c..,~~' . . , F;1a;'lC!~g , SI;E<"e: Pi}rC".'J~'2 ~_0e.:' o:-09:-Br'.1~ ,-":."~':;~ :'::C:~~";~ - c"KOt'eSB ;.:, ::""~;,,.::;.-.:::-t:,-;- SB/l, COfnmunftyExpr,ese Loai: ?rogr;;m ~2~ ,-~-: '- ~,,,,,:,,-,.:=:,~..,-:,: ~, .. ~ '-' -- CommunityExpress is a pilot SBA loan program that was developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its member organizations< Under the pilot, which is available to selected lenders, an SBAExpress like program will be offered to pre-designated geographic a~eas serving mostly Low and Moderate Income areas and New Markets small businesses< The program will also Include technical and management assistance< which is designed to help increase the loan . applicant's chances of success. :::c.;.: -=':.:o'"":-:'-':--'~ :-2.C :::<....e~-'. i3C-:;l;:: :S::-.;.::i=?:" -;;;~}'2'-::se :_c..?"::: .6:.0,-;;U"L F-rogr~m ":;2$'?~ 83'S::: I Issue: II SBA Community Express I Maximum Loan I $250,000 I Amount: Maximum SBA Follows Standard SBA Guaranty Percent Guarantv %: I Interest Rate: I Co~munityExpress loans are subject to the same maximum Interest rate as all SBA loans Eligibility I By SBA 1 Decision: Revolving Lines Allows revolving loans up to 7 years of Credit: I Turnaround Time: II Mostly Within 36 Hours I I Forms: II Lender Uses Mostly Own Forms and Procedures I Lenders are not required to take collateral for loans up to $25,000. Lenders may use their existing collateral policy for loans over $25,000 up to Collateral: $150,000. For Loans greater than $150,000, follows SBA's aeneral collateral policv I Credit Decision: II By Lender I Technical I Arranged or Provided by Lender I Assistance: ~ --. -." '-~-C:C--8:~""& ';'C"- '~'::3 '_' '::>?r\'iif~c' L.e,",,:,je-:s ::=;"0'~''''-a:7": ;--- . , ~--........~,- . .-,-,-.~." - -,,-...,...,, . _.,-..- '-.', - -.' '-'- '- ...... , .~ ..,......-,,_ r"""___...___ _-~'.-.:;...;':,_.,_. ,_,:;'.r -33'::,- EY,Gr':3-::S 3o;?:-(':-:""!'-:1e.f'"' !\'!?"l-:::,?' -: ::::0.'-::::::8 ;'-""~iA':::::C:_ Addit~natR-e$Outf,;~s.;.. '. More Information About Starting Your Small Business ::'1\1, ~~ G_\os~g[\~ ;. .. Lsnder Pafi~c~ps-t~on The SBA initiated the CommunityExpress program in May of 1999 with aboui 10 NCRC lenders. The Agency is now expanding the program to PLP lenders that have at least a 90 percent currency rate on their SBA 7(a) portfolio for the last 3 fiscal years and to selected non-PLP lenders that meet the eligibili requirements for participating in the SBAExpress program. Technical Assistance has been recognized by both the NCRC and the SBA as often crucial to the success of these businesses. As a result, the CommunityExpress program includes a specific technica assistance component. Borrowers must receive pre- and post-loan closing technical and management assistance from local non-profit providers and/or from participating lenders, with that assistance coordinated, arranged and, when necessary, paid for by CommunityExpress lenders. CommunityExpn lenders may also consider this technical assistance as a collateral enhancement. http://ww\''i.sba.gov Ifinancingflendinvestfcomexpress .html 042 1123/2 - .. - - ------~~~b I ..............................................,; ..I...J.",..1-'....I.....>0 ri:1!;:t:.L V1 ;) CommunityExpress lenders must establish (and document) an internal procedure to ensure the consistent delivery of appropriate and effective technical and management assistance. The process begins with the identification of qualified and committed T/A providers. The focus then shifts to the CommunityExpress applicant and the T/A provider's development of a business plan (as appropriate) and an assessment of the applicanfs management and technical assistance strengths and weaknesses. If weaknesses are identified as a result of that assessment, the lender Should document the T/A provider's recommendations and the remedial plan. The lender, in cooperation with the TfA provider, is also expected to strongly encourage the applicant to follow that plan. Additional Information Community Express loans must meet the basic 7(a) loan criteria except where differences specified below: ~ SiZE ELIGIBLE AND INELIGIBLE TYPES OF BUSINESS Types of Loans Not Allowable for CommunityExpress (a) Disabled Assistance Loan Program (DAL) (b) Energy ConseNation (c) International Trade (d) Qualified Employee Trusts (ESOP) (e) Pollution Control Program (f) Defense Loan and Technical Assistance (DELTA) (g) Export Working Capital Program (EWCP); and (h) Cap Lines Program (including Builders Loan Program) USE OF PROCEEDS Types of Businesses Not Allowable for CommunityExpress (a) Agricultural and fann businesses , (b) Fishing and shore operations (including commercial fishing activities and the construction of new fishing vessels) (c) Medical facilities (including residential care faCilities) (d) Mines (including sand and gravel pits) (e) Applicants doing business in foreign countries (f) Businesses engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting; and. (g) A business with any products or seNices of a sexual nature. AVAILABILITY OF Fl)f\JJ::)S FROM OTHER SOURCES Maturitv Terms For 7(A) Loans http://www .sba.gov /financing/lendin vesticomexpress.html 043 1/23/20Qt Page :5 at :: SBA -Financing I Community Express lnterest Rates AoolicfJble tc LA) Loans PercentageoT GuaraDty .on I..lA} Loan~ SBAEeesfor7(A) Loans Prepaymen(p'er~altIes _Tor.S8_A 7.(,~t Lo?.r1; ;-;:Y,.'S i .Accessibi,!ity 1 About.Slte \ Priva.cy&. SeCL.;[Jty i FOl& I A.sk SSA \ fA.Q \ 9j9S~a.ry 1 S[t~.lT~ap ~ LlllSl1.18SS -='" FIRSTGOY 't......r:;.a=~~ !H....;.-r..~..........~ _ .Gi Cl go" Ice" '= '''-'' V ''7'':; / //,//.- ,. i,-"i/_'[,; ~~ ~ S::'('ff~ :; ('vl!i~ ';';. ;'t;.~il President's Small Business Agenda _ , 044 1/23/~ httn -//www .sba_ gOY /financingllendinvestl com express .html \. fossil fuel power Coal Gasification for Future Power Generation By Shaoping Shi, Mehrdad Shahnam, and Madhava Syamlal, Fluent Inc.; Stephen E. lltney and William A. Rage", National Energy Technolagy Laboratory, Margantown, WV (, Because of deregulation, rapidly changing market demands, fluctuations in natural-gas prices, and increased environmental concerns, gasifica- tion will become the centerpiece of tomorrow's advanced power plants. Large improvements in the efficiency, reliability, and feed- stock flexibility of gasification sys- tems are necessary for the success of such power plants. To address these challenges, the U.S. Department of Energy (DOE) is sponsoring a broad spectrum of research and demonstration proj- ects for gasification technologies and gasification-based power plants. For example, the DOE's $1 billion, 10-year demonstration FutureGen project is aimed at cre- ating the world's first coal-fired, gasification-based, near-zero emissions electricity and hydro- gen production power plant. At the DOE's National Energy Technology Laboratory (NETL), scientists and engineers are focus- ing on the need for high-fidelity gasifier modeling. Gasifiers Involve complex physical and chemical phenomena including fluid flow, heat and mass transfer, and chemical reactions. Through gasification, coal is reacted to form CO/Hz rich syngas that undergoes processing before entering gas turbines or fuel cells. Combined with data from exist- ing gasifiers, CFD offers a power- ful method for understanding and improving the operation of these devices, especially those of industrial scale. As part of devel- oping a comprehensive simula- tion of a potential FutureGen power plant configuration, a CFD model of a two-stage, oxygen- blown, entrained-flow, coal slurry gasifier, a key component in the configuration, has been devel- oped. This is a prototype gasifier design, which is not intended to represent any existing device, commercial or otherwise. The CFD-based gasifier model was integrated with a flowsheet model of the entire Futu reGen power plant to perform the systems analysis of the power plant con- cept. The two-stage up-flow gasifier consists of a horizontal section (first stage) and a vertical section. Coal slurry and air are injected into the two side inlets of the first stage, which is mainly a coal com- bustor that provides hot gases to the second stage, where only coal slurry is injected and most of the coal gasification occurs. The discrete phase model (DPM) in FLUENT is used to simu- late the coal slurry flow as sepa- rate water droplets and coal parti- cles. The coal slurry gasification process is implemented through user-defined functions (UDFs). Following injection, the coal parti- cles undergo heating and devoli- tilization, releasing gases that include CH4, CO, COz' Hz, HzS, OZ' Nz' and HzO. Char combus- tion and gasification occur, according to an un reacted-core shrinking model [1]. The products of these reactions are primarily CO, COz' and Hz. Reactions in the gas phase, modeled using the eddy dissipation model along with an Arrhenius rate law, pro- duce COz' HzO, and Hz. The predicted syngas composi- tion (mole percentage) is 39.2% CO, 23.7% Hz, 23% HzO, 10.3% CO2, 1.5% CH4, 0.7% HzS, 0.8% ...- -- FutureGen power plant with gasifier {2] Contours of temperature (left) and male fraction of CO (right) on the center plane of the gasifier Ar, and 0.8% Nz' which is very close to the values calculated by a O-D Aspen Plus" model represent- ing typical experimental data. The char conversions are 100% and 86% for the first stage and second stage, respectively. The benefit of using CFD is that the model accounts for the geometry of the gasifier and provides information on the distribution of species and temperature within the device. When combined with the process 045 ~~' ~ ;:::;;;l.*;~~~~::;~- simulation calculation, CFD offers a way for investigating the impact of the gasifier design on the over- all performance of the gasifica- tion-based power plant. . references: Wen, C. Y. and Chaung, T.Z. (1979) "Entrainment Coal Gasification Modeling", Ind. Eng. Chern. Process. Dev., Vol. 18, No.4, 684-695. 2 www.netJ.doe.gov, 2004. Fluent News fall 2004 S 11 . The Department of Energy's Office of Fossil Energy typically manages more than 500 active research and development projects spanning a wide range of coal, petroleum and natural gas topics. You can access information on each of these projects from the Fossil Energy Online Project Database. There are three ways to obtain specific data on these projects: Adv. Power - Gasification Technologies Projects in the state of Alaska · A Novel Sorbent-Based Process for High Temperature Trace Metal Removal · Advanced Coal Gasification System · Advanced Gasification Systems Development · Advanced Hydrogen Transport Membranes for Vision 21 Fossil Fuel Plants · Advanced Hydrogen Transport Membranes for Vision 21 Fossil Fuel Plants · Advanced Sulfur Control Concepts for Hot Gas Desulfurization Technology · Analysis of Metallic Hot Gas Filters · Bench-Scale Demonstration of Hot-Gas Desulfurization Technology · C02 Hydrate Process for Gas Separation from a Shifted Synthesis Gas Stream · C02 Hydrate Process for Gas Separation from a Shifted Synthesis Gas Stream · Catalytic Coal Gasification · Ceramic Membrane Enabling Technology for Improved IGCC Efficiency . Coal Gas Cleanup Catalyst Development · Coarse-Grid Simulation of Reacting and Nonreacting Gas-Particle Flow · Control of Mercury and Other Pollutants in Coal Gasification Systems · DOl Interagency Agreement · Demonstration of Pulse Combustion Project · Development of Mixed-Conducting Dense Ceramic Membranes for Hydrogen Separation · Development of an Integrated Multi-Contaminant Removal Process · Diffusion Coatings for Corrosion-Resistant Components in Coal Gasification Systems · Durable Fiber-Optic Temperature Sensor for Coal Gasifiers · Evaluation of Multiple Product Power Cycles · Evaluation of a Cyclone and Hot Gas Filter System · Feed System Innovation for Gasification of Locally Economical Alternative Fuels (FIGLEAF) · Fuel-Flexible Gasification-Combustion Technology for Production ofH2 and Sequestration-Ready · Gasification Plant Cost and Performance Optimization Study · Gasification for Distributed Generation · High Temperature Removal ofH2S From Coal Gasification Process Streams Using an Electrochemical · Hydrogen Membrane Processing, Analysis, and Characterization · Integrated Warm Gas Multicontaminant Cleanup Technologies for Coal-Derived Syngas · Nanostructured Ceramics and Composites for Refractory Applications in Coal Gasification ,~ , ~ 046 '" . · Novel Composite Membranes for Hydrogen Separation in Gasification Processes in Vision 21 Energy · Novel Gas Cleaning/Conditioning for Integrated Gasification Combined Cycle (IGCC) · Novel Technologies for Gaseous Contaminants Control · Pressurized Circulating Fluidized Bed Partial Gasification Module · Research Entitled, "Advanced High Temperature, High-Pressure Transport Reactor" · Robust Optical Temperature Measurement in Coal Gasifiers · Single-step Sulfur Recovery Process · Supported Dense Ceramic Membranes for Oxygen Separation Links: http://www.fe.doe.gov/programs/powersystems/gasification/ http://www .fe.doe. gov /programs/powersystems/ gasificationlhowgasificationworks.html http://www.fluent.com/about/news/newsletters/04v 13i2/pdfs/sll.pdf (PDF in sep. e-mail) http://www.fossil.energy .gov/fred/feprograms.j sp?prog= Adv. + Power+- +Gasification+ Technologies&state= AK C~'7' acts u.s. DEPARTMENT OF ENERGY OFFICE OF FOSSIL ENERGY NATIONAL ENERGY TECHNOLOGY LABORATORY CONTACTS Chandra M NautiyaJ Physical Scientist strategic Center for Gas & Oil 918-699-201 Chandra.Nautiyal@netl.doe.gov Brent Sheets Regional Manager Arctic Energy office 907-452-2559 Brent.Sheets@netl.doe.gov Sally Kornfeld Senior Analyst U.S. Department of Energy 202-586-3814 sally.komfeld@hq.doe.gov CUSTOMER SERVICE 1-800-553-7681 STRATEGIC CENTER FOR NATURAL GAS & OIL WEBSITE www.neU.doe.gov/scngo Strateuic Center for '" Natural Gas and Oil 06'2004 ARCTIC NATIONAL WILDLIFE REFUGE (ANWR) # Description .. The 19-million-acre Arctic National Wildlife Refuge (ANWR) lies in the northeast comer of Alaska. The Coastal Plain area, comprising 1.5 million acres on the northern edge of ANWR, is bordered on the north by the Beaufort Sea, on the east by the U.S. Canadian border, and on the west by the Canning River. The Coastal Plain of ANWR is being considered for oil and gas development since it potentially holds billions of barrels of recoverable oil and trillions of cubic feet of recoverable gas. Of the 1.5 million acres of the Coastal Plain, less than 2000 acres would be affected by development However, because it is an important wildlife habitat, some are concerned that development would hurt the land, endanger wildlife, and not recover enough oil to make the effort worthwhile. .. . I National Energy Policy Report, May 2001. 048 . ANWR could produce greater than a millio.n barrels of oil per day, more than enou.gh to replace. U.S. imports from Iraq. . " .. J l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background In 1980, Public Law 96-487, Alaska National Interest Lands Conservation Act (ANILCA), was passed by Congress to provide for the designation and conservation of certain public lands in the State of Alaska. ANILCA set aside more than 100 million acres in Alaska as national parks, preserves, wildlife refuges, and wilderness areas. In section 1002 ofthis act, Congress specifically left open the question of future management of the 1.5-million-acre Coastal Plain of ANWR ("1002 area") because of its potentially enormous oil and gas resources, and its important environmental and ecological value. The Act gives Congress the authority to enact legislation to allow oil and gas development in the area. The most recent assessment (ANWR, 1002 Area, Petroleum Assessment, Induding EconomicAnalysis), performed in 1998 by the U.S. Geological Survey (USGS) estimates oil and gas resources in the area as follows: Technically Oil (billion barrels) Gas (Non-associated) Recoverable (reF) (fCF) Resources 95% Mean 5% 95% Mean 50/. Entire Assessment 5.72 10.36 15.96 0 3.84 10.85 Area 2 1002 Area 4.25 7.69 11.80 0 3.48 10.02 % equals probability levels . . . . . . . . . . . . This assessment involved 3 years of study by 40 USGS scientists, who coordinated work with colleagues in other Federal agencies, Alaska State agencies, and several universities. All 1,400 miles of seismic data that had been collected by a petroleum-industry consortium in 1984 and 1985 were reprocessed and reinterpreted. Collection of seismic data within ANWR requires an act of Congress, and these are the only seismic data ever collected within the 1002 area. Environmentalists want to protect ANWR from any drilling because of its environmental and ecological value. They believe that there is too great a danger to the refuge, which is home to many species of birds and fish as well as both land and marine mammals. Environmentalists argue that conservation will save far more oil than the Arctic refuge could produce. Proponents of exploration and production of ANWR's Coastal Plain point to the potentially huge resource, which rivals the amount of oil produced to date from North America's largest field, Prudhoe Bay. They also contend that drilling can be done without harming the environment or wildlife. 2 Includes 1002 area (federa/1ands), native-owned private lands, and state-regulated waters. 049 SignificancelPotential Impacts The Energy Infonnation Administration (EIA) projec1s that domestic oil and gas cOnsumption will grow significantly over the next two decades. By 2020, total natural gas demand is projected to be 33.8 trillion cubic feet, and petroleum demand is expected to be 26.6 million barrels per day. 50 c.~ .- s .0 UH il.. N~turillGas No_ Nanhy(lro Renew;.blos and QUI'" H_ 2020 10 o 191D 1880 11190 2000 2010 Gas and Petroleum Demand Projected to Grow by 2020 To meet this demand, EIA estimates that by 2020, imports will rise from about 50 percent of U.S. consumption today to 62 percent (or 17.7 million barrels of oil per day). 3G Histury Proje.r:1iOM 3 Ii }-- a. 17: . j " ... ... ~ 1. i . 1970 1980 11190 2000 2010 2020 Growing Dependence on Petroleum Imports is Projected New domestic supplies of oil and gas are needed to meet this demand and reduce our reliance on imports. Exploration and production of oil and gas resources in the Coastal Plain area could provide new supplies of these important fossil fuels. However, even if legislation were passed by Congress and approved by the President, and leases issued to drill, it would be approximately 5 to 10 years before resources were delivered to the market. EIA estimates that opening ANWR to exploration would boost U.S. crude production 14 percent, reducing the amount of oil imports needed to meet demand in 2020 from 62 to 60 percent.3 Producing oil and gas from ANWR is good for the U.S. economy by creating 736,000 domestic jobs (Wharton Econometrics Forecasting Associates), and generating $1.3 billion for the federal treasury from initial leasing of the area (Congressional Budget Office). 3 Based on 10.4 billion barrels of recoverable oil reserves in the refuge. 050 . . . . . . . RELEVANT INVOLVED . PARTIES . . . . Federal Government Position: The Bush Administration is in favor of opening ANWR for drilling, but there does not appear to be sufficient votes in the Senate to support the issue. (See 'Current Legislation" section) Alaska State Government Position: The state legislature passed a resolution supporting ANWR development by 60 votes to zero. Oil and Gas Producers Position: . . Support drilling in ANWR . and believe exploration and . . production can be done in an . environmentally safe manner. . . . . . Alaska Citizens . . Position: . . Annual polls show that over . . 75% support opening ANWR. . . . . Environmental Groups . . . Position: . . Oppose drilling in ANWR . . because of its environmental . and ecological value. . . . . . . . . . . ... '" r .. RELATED LINKS . U.S. House of Representatives Resources Committee www.house.gov/resources ii .. U. S. Senate Committee on Energy and Natural Resources www.senate.gov/-energy U. S. Geological Survey info.er.usgs.gov Petroleum News Alaska www.petroleumnewsalaska.com ANWR News www.anwr.org American Association of Petroleum Geologists www.aapg.org Natural Resources Defense Council www.nrdc.org National Energy Policy www.whitehouse.govlenergy " . . . : Current Legislation . . . . . . The U.S. House of Representatives energy bill H.R. 4, Securing America's Future Energy Act (SAFE), passed in 2001, included opening the Coastal Plain of the Arctic National Wildlife Refuge to oil drilling. Some members of Congress believe that opening ANWR will be good for the economy and will provide hundreds of thousands of jobs for Americans. The bill also guarantees the work in ANWR will be done by union labor and that the oil and gas produced will not be exported. The House approved an amendment to the bill from advocates of drilling to limit the area of the Coastal Plain that could be disturbed by development to 2,000 acres. After much contentious debate, the ANWR title was excluded from the Senate version. The final conference report H.R. 6 also excluded ANWR. Recently Senator Dominici (R-NM) offered a slimmed down version of H.R. 6, S. 2095, which also excludes ANWR, but it appears to be sidelined until after this year's election. Currently, there is little chance for legislation opening ANWR for drilling of any sort. . How SCNGO is Addressing the Issue The Strategic Center for Natural Gas & Oil oversees a wide range of research and development efforts designed to allow less expensive, safer, and environmentally-friendly exploration and production technologies. New technologies are being developed that shrink the footprint of gas operations, allow more energy-efficient drilling and production methods, increase the capacity and reliability of existing pipelines, capture and sequester air emissions, and protect ground-water resources. . The SCNGO s also working coIlaboretively with the Bureau of Land Management, the United Slates Geological Survey, and the Department of Energy Headquarters Office to review the natural gas resource underlying tederallands to more fully assess impacts of its potential development. The results will provide key insights for future RD&D that will be required to fully exploit the resource yet meet the multi-use mandates for publiC lands. . Policy006.pmd 051