April 18, The Pledge of Allegiance was given by all persons in the Chambers.

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1 Regular Ketchikan City Council meeting was called to order by Mayor Williams at 7:03 p.m., April 18, 2013, with the following members present: Sam Bergeron, Dick Coose, Kj Harris, DeAnn Karlson, Matthew Olsen, Robert Sivertsen and Marty West. The Pledge of Allegiance was given by all persons in the Chambers. Staff present were Manager Amylon, Assistant Manager Martin, Finance Director Newell, City Attorney Seaver, Human Resources Manager Miller, Museum Director Naab, Port and Harbors Director Corporon, Police Chief Bengaard, Water Division Manager Kleinegger and City Clerk Suiter. COMMUNICATIONS Included in the packet material was an invitation from the Ketchikan Gateway Borough to participate in the 2013 Prince Rupert Trade Mission. Mayor Williams said there were two items laid on the table, including an update on the House Finance Capital Budget and a revised ordinance relating to the Whitman Lake bonds. PERSONS TO BE HEARD Anita Maxwell, representing the Ketchikan Area Arts and Humanities Council, spoke to events that were occurring. She encouraged the Council to visit the current exhibit at the Main Street Gallery, noting that traveling grants are being looked at to take the exhibit on the road. She also addressed the Torch Night series as well as the Celebration of the Sea Art Walk, and invited the Council to the Blessing of the Fleet taking place on May 3 at 5:30 p.m. She said they will have a reception at the public library to highlight the art that has been installed, as well as an upcoming art tour hosted by Terry Pyles. She thanked the City for allowing the Blueberry Arts Festival to expand into the parking lot on Main Street. Kyle Johansen addressed comments he had made previously regarding SEAPA. He started by stating he is not paid by anyone or any agency to speak. He clarified the Joint Action Agency was a political solution that had to happen with the entities involved in order to build the intertie. He said the JAA had to have all the things in place in order to be a legal entity that could bond and assume other duties. CONSENT AGENDA Councilmember Sivertsen suggested moving the following items to the Consent Agenda: the ordinance dealing with Bayview Cemetery maintenance and operation for ; the ordinance regarding the issuance of Whitman Lake bonds; Change Order No. 1 to the Berth I South Timber Fender Pile Replacement Project; the contract for professional services for the 2013 Pavement Overlay Project; Change Order No. 1 to the City Underground Storage Tank Removal and Site Closure Project; and the Transportation Worker Identification Credential Services Agreement with MorphoTrust USA, Inc. Mayor Williams asked if there were any objections, and none were heard. 1

2 Mayor Williams said the Local Emergency Planning Committee would like to have two councilmembers appointed. Port and Harbors Director Corporon, secretary to the LEPC, explained the purpose of the committee. Councilmembers Sivertsen and Karlson volunteered to participate. Approval of Minutes Moved by Sivertsen, seconded by West approval of the minutes of the regular meeting of April 4, Award of Contract No , Selection and Procurement of Berth II Rain Gauge Sign Replacement Ketchikan Area Arts and Humanities Council Moved by Sivertsen, seconded by West the City Council approve Contract No , Selection and Procurement of Berth II Rain Gauge Sign Replacement, in an amount not to exceed $7,000 between the City of Ketchikan and the Ketchikan Area Arts and Humanities Council; authorize funding from the Port Department s 2013 Rain Gauge Sign Replacement Capital Account; and direct the city manager to execute the contract documents on behalf of the City Council. Renewal No. 1 to Contract No Janitorial Services for the Centennial Building and Totem Heritage Center, I Even Do Windows Moved by Sivertsen, seconded by West the City Council approve Renewal No. 1 to Contract No , Janitorial Services for the Centennial Building and Totem Heritage Center, between the City of Ketchikan and I Even Do Windows; authorize funding in an amount not to exceed $26,696 from the 2013 Museum Department s Centennial and Heritage Buildings Janitorial Services Account Nos and ; and direct the city manager to execute the renewal on behalf of the City Council. Change Order No. 1 to Contract No Bar Harbor Boat Launch Ramp, Ketchikan Ready Mix & Quarry, Inc. Moved by Sivertsen, seconded by West the City Council approve Change Order No. 1 in the amount of $1, to Contract No to Contract No , Bar Harbor Boat Launch Ramp, between the City of Ketchikan and Ketchikan Ready Mix & Quarry Inc.; 2

3 authorize funding from the Small Boat Harbors Division s 2012 Bar Harbor Boat Launch Ramp Replacement and Grid Repair Capital Account; and direct the city manager to execute the change order on behalf of the City Council. Contract No , Fabrication of 18 Mosaic Windows for the Waterfront Promenade Lady of the Lake Mosaics Moved by Sivertsen, seconded by West the City Council approve Contract No , Fabrication of Mosaic Windows for the Waterfront Promenade, between the City of Ketchikan and Lady of the Lake Mosaics in an amount not to exceed $39,754; authorize funding from the Port Department s 2013 Waterfront Promenade Stained Glass Panels Capital Account; and direct the city manager to execute the contract on behalf of the City Council. Ordinance No Exempting the Purchase of Cemetery Maintenance and Operations Services from Competitive Bidding and Approving the Agreement for Bayview Cemetery Maintenance and Operations for Between Robert S. Scheldt d/b/a PM Landscaping and the City of Ketchikan Second Reading Copies of Ordinance No were available for all persons present. Moved by Sivertsen, seconded by West the City Council approve in second reading Ordinance No exempting the purchase of cemetery maintenance and operations services from competitive bidding and approving the Agreement for Bayview Cemetery Maintenance and Operations for between Robert S. Scheldt d/b/a PM Landscaping, and the City of Ketchikan; and establishing an effective date. Ordinance No Authorizing the Issuance of A Municipal Utility Revenue Bond of the City in a Principal Amount of Not to Exceed $15,000,000 to Finance Certain Costs of Constructing and Equipping of the Whitman Lake Project As Authorized by Resolution No and Ratified by the Voters at an Election Held Therein on October 4, 2011; Authorizing the Pledge of Ketchikan Public Utilities Revenues to Pay Debt Service on the 3

4 Bond; Providing for the Date, Terms, and Covenants of the Bond; and Authorizing the Sale of the Bond to the Alaska Municipal Bond Bank on the Terms and Conditions Provided in This Ordinance Second Reading Copies of Ordinance No were available for all persons present. Moved by Sivertsen, seconded by West the City Council approve in second reading Ordinance No authorizing the issuance of a municipal utility revenue bond of the City in a principal amount of not to exceed $15,000,000 to finance certain costs of constructing and equipping of the Whitman Lake Project as authorized by Resolution No and ratified by the voters at an election held therein on October 4, 2011; authorizing the pledge of Ketchikan Public Utilities revenues to pay debt service on the bond; providing for the date, terms, and covenants of the bond; and authorizing the sale of the bond to the Alaska Municipal Bond Bank on the terms and conditions provided in this ordinance; and establishing an effective date. Change Order No. 1 (Final) to Contract No Berth I South Timber Fender Pile Replacement, Pool Engineering, Inc. Moved by Sivertsen, seconded by West the City Council approve Change Order No. 1 (Final) in the amount of $37, to Contract No , Berth I South Timber Fender Pile Replacement, between the City of Ketchikan and Pool Engineering, Inc.; authorize funding from the Port Department s Berths 1C and 1D Fender Pile Replacement Capital Account; and direct the city manager to execute the change order on behalf of the City Council. Contract No Agreement for Professional Services for the 2013 Pavement Overlay Surface Repair Program, May Engineering Services, LLC Moved by Sivertsen, seconded by West the City Council authorize the city manager to enter into Contract No , Agreement for Professional Services for the 2013 Pavement Overlay Surface Repair Program, between the City of Ketchikan and May Engineering Services, LLC in an amount not to exceed $70,100; and approve funding from the Streets Division s 2013 Pavement Overlay Surface Repair Program Capital Account. 4

5 Budget Transfer Change Order No. 1 to Contract No , City Underground Storage Tank Removal and Site Closure, S&S General Contractors & Equipment Rentals, Inc. Moved by Sivertsen, seconded by West the City Council approve Change Order No. 1 in the amount of $19, to Contract No , Underground Storage Tank (UST) Removal and Site Closure, between the City of Ketchikan and S&S General Contractors & Equipment Rental, Inc. increasing the contract price to $160,877.38; authorize a budget transfer of $5, from Appropriated Reserves of the Wastewater Services Fund to the Wastewater Division s Underground Steel Tank Removals Capital Account; approve funding from the Wastewater Division s Underground Steel Tank Removals Capital Account; and direct the city manager to execute the change order on behalf of the City Council. Transportation Worker Identification Credential Services (TWIC) Agreement MorphoTrust USA, Inc. Moved by Sivertsen, seconded by West the City Council approve the five-year Transportation Worker Identification Credential (TWIC) Services Agreement between the City of Ketchikan and MorphoTrust USA, Inc. and direct the city manager to execute the agreement on behalf of the City Council. UNFINISHED BUSINESS Release of Deed Conditions and Approving Revised Revocable Permit to Work or Encroach Upon Platted Right-of-Way Deer Mountain Fish Hatchery and Easements, Ketchikan Indian Community d/b/a Ketchikan Tribal Hatchery Corporation Deferred from February 21, 2013 The motion before the Council was: Moved by Sivertsen, seconded by Coose the City Council approve the Release of Deed Conditions for the conveyance of the Deer Mountain Fish Hatchery and Easements to the Ketchikan Indian Community d/b/a Ketchikan Tribal Hatchery Corporation; authorize the Revised Revocable and Limited Permit to Work on or Encroach Upon the Platted Rightof-Way; and direct the city manager to execute the release and encroachment permit on behalf of the City Council. 5

6 Councilmember Bergeron disclosed he was an employee of Ketchikan Indian Community and requested a ruling from the mayor whether he had a conflict of interest. Mayor Williams said he could participate if he wanted to, and Councilmember Bergeron said he didn t want to. Manager Amylon alerted the Council the City attorney advised him today that the City cannot transfer property to KIC. City Attorney Seaver informed the State of Alaska Constitution says a transfer of public property cannot be made unless it is for a public purpose. He said at this point he didn t know that any such purpose has been identified, articulated or agreed upon. Councilmember Sivertsen reported the Borough assessor has the property valued at $875,200. Councilmember Bergeron felt that in the past 18 years KIC has put in about twice as much money into the property than it is worth. He said if you look at the value of the land and decided to do something with it, then factored in the cost of moving a piece of infrastructure from an active salmon stream, the argument could be made there is a negative net value in that land if you are going to do something with it. He thought the value of the land is subjective, and he continued by citing different scenarios about the land value. He also spoke to plans for KIC use of the property, and felt the City should look at some fashion to keep this in KIC hands. Motion failed with West, Olsen, Karlson, Bergeron, Harris, Sivertsen and Coose voting nay. Moved by Sivertsen, seconded by Coose the City Council direct the manager to seek a formal opinion from the cruise ship industry as to whether it is appropriate to use CPV funds for the hatchery so that it may remain open. Councilmember Bergeron said the federal budget cuts to KIC have hit particularly hard because over 90% of their funding is federal. He urged the Council to move forward to keep the hatchery in KIC hands. Councilmember Sivertsen yielded his seat to Charles Edwardson, who spoke to the potential uses of the property for education purposes. He said the stated purpose of the land transfer was to provide KIC the ability to transfer the hatchery out of economic development into education. He continued by stating the school district has used KIC in many ways for educational purposes. He felt educational purpose was a public function, so the City wouldn t break the law. He said the Ketchikan Gateway Borough school district counts on KIC for grants, one-third of the population of the City, and he guaranteed they would be using the facility under an educational setting. He reminded this was the stated purpose in the beginning, to use the property under an educational program. He stated transferring public land is illegal under the Constitution, but selling public land to another public entity isn t. He said a price could be negotiated, taking into account the money that KIC has invested, then see what is most feasible: selling it to KIC at a very reduced price and turn it into an educational facility. He said we all want the 6

7 hatchery and KIC will take on the responsibility, but they will not continue to shoulder the burden. Councilmember Olsen expressed concern about the Totem Heritage Center and how it all would work together with KIC plans for the hatchery property, and Mr. Edwardson said they really haven t considered the Totem Heritage Center. Councilmember Olsen said if this moves forward and KIC is able to move forward, he hoped to see the resource of the Totem Heritage Center is addressed and provided for in moving forward. Councilmember Sivertsen pointed out when we are speaking about lease or rental agreements, very seldom do renters end up owning the property because they have been paying into it for years, regardless of the amount of improvements put into it. In response to Mayor Williams, Manager Amylon said he would start with the Alaska Cruise Association regarding use of CPV funds. Mayor Williams also asked Manager Amylon to find out how much Juneau puts into the General Fund from CPV resources. Motion passed with Sivertsen, Bergeron, Coose, Harris, Olsen, West and Karlson voting NEW BUSINESS Contract No , Yates Building Assessment Historic Ketchikan, Inc. Moved by Bergeron, seconded by Coose the City Council approve Contract No , Yates Building Assessment, between the City of Ketchikan and Historic Ketchikan, Inc. in an amount not to exceed $20,000; authorize funding from the Port Department s 2013 Yates Building Restoration Capital Account; and direct the city manager to execute the contract on behalf of the City Council. Stephen Reeve and Terry Wanzer from Historic Ketchikan answered questions from the Council. Motion passed with Coose, Bergeron, West, Harris, Sivertsen, Olsen and Karlson voting Collective Bargaining Agreement Between the City of Ketchikan and the Public Safety Employees Association Moved by Coose, seconded by West the City Council approve the Collective Bargaining Agreement between the City of Ketchikan and the Public Safety Employees Association and direct the city manager to execute the agreement on behalf of the City Council. 7

8 In response to Councilmember Sivertsen, Attorney Seaver said it would not be appropriate for him to participate in the vote since his son works for the Police Department. Motion passed with Karlson, Harris, Olsen, West, Bergeron and Coose voting yea; Sivertsen abstaining. Negotiation of Contract No Project Management Services for the Ketchikan Medical Center Addition and Alterations Project, DOWL HKM Moved by Sivertsen, seconded by Bergeron the City Council authorize the city manager to negotiate Contract No , Project Management Services for the Ketchikan Medical Center Addition and Alterations Project, with DOWL HKM of Anchorage, Alaska, said contract to be submitted to the City for formal consideration and approval. Motion passed with Bergeron, Sivertsen, Olsen, Karlson, Coose, Harris and West voting Implementation of a Metered-Based System for the Water Division Moved by Bergeron, seconded by Sivertsen the City Council direct staff to take such actions as detailed in the Finance director s April 6, 2013 report regarding the implementation of a metered-based system for the Water Division as determined appropriate by the City Council. In response to Mayor Williams, Finance Director Newell addressed wastewater rates, saying it ties into the water rate but will need to be done separately because the wastewater rates are set by a different section of the code. He felt if the water coming in was going to be metered, the wastewater would also need to be based on a metered system. Finance Director Newell said that anything over 50,000 gallons per month would be considered large commercial. Councilmember Olsen expressed concern about going to a metered system, and having people work hard to conserve and then the City losing money because of conservation efforts. After discussion, Mayor Williams confirmed moving forward by starting with metering large commercial and fish processors, and using a flat rate for small commercial and residential. He also said the manager would come back with ideas on how to set up a meter rate. Mayor Williams said enough direction had been given, and no vote was required. VOUCHERS 8

9 Moved by Olsen, seconded by Bergeron for approval of vouchers to Ketchikan Daily News in the amount of $1, CITY MANAGER S REPORT Schedule of General Government and KPU Appropriated Reserves Through the City Council Meeting of April 4, 2013 Manager Amylon provided the Council a schedule of the current balance of Appropriated Reserves of various funds of General Government and KPU through the City Council meeting of April 4, Contract No , Phase II of Berths I and II Rehabilitation Project Construction Meeting Minutes of March 29 and April 5, 2013 Manager Amylon presented the Council with the construction meeting minutes for Contract No , Phase II of Berths I and II Rehabilitation Project that were held on Friday, March 29 and April 5, Ninety-Five Percent Design Review Bar Harbor Drive Down Float Facility Manager Amylon advised that a public review to solicit comment on the 95% design drawings of the Bar Harbor Drive Down Float had been scheduled for the Port & Harbors Advisory Board meeting of Tuesday, April 9, He noted staff s intent to instruct the Port & Harbors director to authorize PND Engineers, Inc. to proceed to 100% design incorporating any comments and other feedback received at the meeting. Contract No , Construction Manager/General Contractor Services for the Construction of a New Municipal Public Library Minutes of Weekly Design/Construction Progress Meeting Nos. 98 and 99 Manager Amylon provided minutes for the weekly design/construction progress meeting Nos. 98 and 99 that were held in Ketchikan/Anchorage/Bellingham on March 26 and April 3, 2013 for Contract No , Construction Manager/General Contractor Services for the construction of a new Municipal Public Library. Derelict Buildings and Structures Manager Amylon updated the Council on the status of developing criteria to begin the process of dealing with derelict buildings. 9

10 Councilmember Bergeron commented on a dangerous situation at No. 1 Creek Street, and requested the situation be remedied. Police Department Canine Activity Report March 2013 Manager Amylon included the Police Department canine activity report for March of Resignation of Senior Curator of Collections Manager Amylon notified the Council that Museum Senior Curator of Collections Richard Van Cleave will be retiring in September of He noted the Human Resources manager has been given instruction to begin recruitment for the position. Public Works Department Project Status Report March 2013 Manager Amylon transmitted the project status report of the Public Works Department for the month of March Report of the Federal Lobbyist Manager Amylon copied the Council with the April 8, 2013 report of the City s federal lobbyist. Contract No A Update City Hall Exterior and Interior Renovations, Dawson Manager Amylon alerted the Council of the design team s recommendation to substitute Nichiha exterior cladding for the originally proposed Ceraclad exterior cladding, and Contracts/Grants Administrator Barry s memorandum outlined the reasons for doing so. Manager Amylon said the substitution appears to be a no cost change to the contract, and he noted that Mr. Barry and the architect will continue to work to address concerns regarding office windows along Front Street. House Finance CS Capital Budget Manager Amylon reported the Legislature adjourned on Sunday, April 14, 2013 and adopted the House Finance Committee Substitute of the Capital Budget. He provided a list of the capital projects that were funded for the greater Ketchikan community. He elaborated on the projects that were funded and those that were eliminated, noting that the City secured $34,256,500 in funding commitments for various General Government and KPU projects. He acknowledged the efforts of the City s state lobbyist, Ray Matiashowski, who was extremely effective in securing funding on the City s behalf. 10

11 City Hall Remodel Project Manager Amylon said the pre-construction meeting for the City Hall project was held this week and during the next few weeks the scaffolding will be going up on three sides of the building. He explained some parking will be lost through staging by Dawson. He said Dawson s employees will be utilizing a large portion of the Main School parking lot, so parking will be tight throughout this summer. He also stated Finance will be relocated, and he was very much surprised to find out that there are two options: Red Men Hall and the Centennial Building. He said they are both about the same cost. He commented the numbers are being refined, and unless directed otherwise, the Red Men Hall will probably be the one used depending on their figures. In response to Councilmember Sivertsen, Contracts/Grants Administrator Barry explained a supply issue relative to the siding on the project. Councilmember Coose suggested using metal siding on the side and back, and no one will know the difference. Mr. Barry noted it was discussed and explained to him that metal siding would have been substantially more expensive. Library Building Heating In response to Councilmember Coose, Manager Amylon said he was told by representatives of Dawson as well as the architect and project manager that issues appear resolved, then he heard from staff that there was grinding in the boiler room later in the day. He stated he was trying to get hold of building maintenance, who supposedly witnessed it. He commented he is hearing two different things, and soon as he gets it nailed down, he will let the Council know. He responded to Councilmember Coose, saying that testing on the pellets is not complete. He explained he expects to hear within the next few weeks and if it is a problem, we will have to have discussions. He continued that he got the impression that both the federal building and the Discovery Center are having problems to the point that they are not sure they are going to want to stick with it. Bawden Street Property In response to Councilmember West, Manager Amylon said there will be a title search of the Bawden Street property before a report of options to go after the former owner will be forthcoming to the Council. He continued, depending on that the report says, staff can begin to initiate a process to begin trying to get a title on the property. K.P.U. MANAGER S REPORT Project Status Reports of the KPU Operating Divisions March 2013 Manager Amylon transmitted the project status reports of the KPU operating divisions for the month of March

12 Whitman Lake Hydroelectric Project Construction Meeting Minutes of April 2 and 9, 2013 Manager Amylon provided the April 2 and 9, 2013 minutes of Construction Meeting Nos. 8 and 9 for the Whitman Lake Hydroelectric Project. Report of April 9, 2013 Power Outage Manager Amylon included a memorandum from Senior Electric Systems Engineer Donato regarding the power outage of April 9, Special Meeting of the City Council Contract No , Energy Conservation and Efficiency Program, CLEAResult Manager Amylon notified the Council that CLEAResult has suggested several dates for a meeting to review the results of the energy audits, benchmarking and rate design work. After discussion, the Council determined to hold a special meeting on June 13, 2013 in the Council Chambers. CITY CLERK S FILE None CITY ATTORNEY S FILE None FUTURE AGENDA ITEMS Councilmember Coose notified the Council he intended to submit a motion on the next agenda to rescind the motion relating to SEAPA. MAYOR AND COUNCIL COMMENTS Councilmember West congratulated staff for the hard work on the capital budget, and thanked all the people who worked to get it there. Councilmember Sivertsen thanked our legislative representatives for the work they did this year. He pointed out we had a challenge with the way the legislature was set up and the money going north, and he felt we did well with the temperament of people. Councilmember Olsen felt a lot of the results in the capital budget were due to staff adequately discussing and laying out the issues for what we need from our representatives and the work that our lobbyist does. Councilmember Bergeron commented that he felt the capital budget for the City was a home run. He thanked the manager and staff for the work they did to secure that funding. He also spoke to keeping guns out of the wrong hands, noting he has come across those who he felt shouldn t have a gun. Councilmember Coose echoed the comments about the capital budget, saying he felt the representatives did a good job on their side of it, the City s lobbyist also did a good job 12

13 and the manager did a good job keeping the Council informed. He recommended sending them a letter thanking them and recognizing them for their work. He also said he received comments relating to the noise level from the children s portion of the library, making it difficult for those who are trying to read. He spoke to the use of the back door of the kid s section, hoping it could be fixed so it can be used. Mayor Williams echoed the comments about the capital budget, and said he had fun on Sunday at the LIO waiting to testify to the legislature. He commented he was excited about the drive down dock, and said he was sorry to hear Richard Van Cleave was leaving the museum. He reported he attended the downtown business association meeting on Tuesday, and one thing they talked about is maybe doing a test of closing Mission between Front and Main, and having it a pedestrian area just when ships are in. He said they suggesting doing a test to see if it would work, maybe during the 4 th of July or some other time during the season. OTHER NEW BUSINESS None EXECUTIVE SESSIONS None ADJOURNMENT As there was no further business, the Council adjourned at 8:26 p.m. ATTEST: Lew Williams III, Mayor Katherine M. Suiter City Clerk FYI ITEMS INCLUDED Ketchikan Area Arts & Humanities Council s Quarterly Activity and Financial Reports - January Through March 2013 Lake Levels and System Generation Report for the Month of March 2013 Water Utilization Study Report March 2013 Recognition of Water Division Staff 13