FAIRBANKS CITY COUNCIL - City of Fairbanks

FAIRBANKS CITY COUNCIL - City of Fairbanks FAIRBANKS CITY COUNCIL - City of Fairbanks

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FAIRBANKS CITY COUNCIL REGULAR MEETING MINUTES September 12, 2005 FAIRBANKS CITY COUNCIL CHAMBERS 800 CUSHMAN STREET, FAIRBANKS, ALASKA The City Council convened at 7:00 P.M on the above date to conduct a Regular Meeting of the Fairbanks City Council at the City Council Chambers, 800 Cushman Street, Fairbanks, Alaska, with Mayor Steve Thompson presiding and with the following Council Members in attendance: Council Members Present: Jerry Cleworth , Don Seeliger, Scott Kawasaki Howard Thies, John Eberhart, Jeff Johnson Also Present: Herb Kuss-City Attorney, Carol L. Colp-City Clerk Dan Hoffman- Police Chief, Warren Cummings-Fire Chief Pat Cole-Admin. Services Director, Tony Shumate-Personnel Steve Shuttleworth-Building Official INVOCATION City Clerk Carol Colp gave the invocation. FLAG SALUTATION Mayor Thompson led the flag salutation. CITIZENS COMMENTS Nanci Jones, 345 Old Rich Hwy, Fairbanks, AK. Ms. Jones spoke to Resolution No. 4183 and asked that it be pulled from the Consent Agenda as premature and unduly harsh. She pointed out errors in the information provided by the Resolution. Donna Gilbert, 2223 S. Cushman St., Fairbanks, AK. Ms. Gilbert spoke in regard to FEDC and asked Council to stop funding to the organization. She shared from FEDC meeting minutes of September 7 and 8, 2005. Finally, she spoke in opposition to the proposal for a City sales tax and asked Council to questions their motives. Mr. Cleworth questioned the source of Ms. Gilbert’s information regarding FEDC. Cliff Burglin, 319 Charles St., Fairbanks, AK. As a land consultant, born and raised in Fairbanks, and having majored in economics, Mr. Burglin stated that he has brought approximately two billion dollars in private capital into the Interior. As co-trustee of the Bentley Family Trust, Mr. Burglin spoke to the tax base generated by that property. He spoke in opposition to Ordinance No. 5617. Mayor Thompson questioned whether Mr. Burglin was aware of the City revenue cap. Mr. Burglin stated that there is absolutely no need for a sales tax. Mr. Cleworth thanked the Bentley Trust for allowing the City use of the snow dump. Frank Turney, 1083 Media Ln, Fairbanks, AK. Mr. Turney spoke to FEDC stating that he has petitioned the courts to investigate the group and he spoke against Ordinance No. 5617 as regressive. He thanked Mr. Cleworth for his stand against sales tax. City of Fairbanks September 12, 2005 Regular Meeting Minutes, As Corrected Page 1 of 13

<strong>FAIRBANKS</strong> <strong>CITY</strong> <strong>COUNCIL</strong><br />

REGULAR MEETING MINUTES September 12, 2005<br />

<strong>FAIRBANKS</strong> <strong>CITY</strong> <strong>COUNCIL</strong> CHAMBERS<br />

800 CUSHMAN STREET, <strong>FAIRBANKS</strong>, ALASKA<br />

The <strong>City</strong> Council convened at 7:00 P.M on the above date to conduct a Regular Meeting <strong>of</strong> the <strong>Fairbanks</strong><br />

<strong>City</strong> Council at the <strong>City</strong> Council Chambers, 800 Cushman Street, <strong>Fairbanks</strong>, Alaska, with Mayor Steve<br />

Thompson presiding and with the following Council Members in attendance:<br />

Council Members Present: Jerry Cleworth , Don Seeliger, Scott Kawasaki<br />

Howard Thies, John Eberhart, Jeff Johnson<br />

Also Present:<br />

Herb Kuss-<strong>City</strong> Attorney, Carol L. Colp-<strong>City</strong> Clerk<br />

Dan H<strong>of</strong>fman- Police Chief, Warren Cummings-Fire Chief<br />

Pat Cole-Admin. Services Director, Tony Shumate-Personnel<br />

Steve Shuttleworth-Building Official<br />

INVOCATION<br />

<strong>City</strong> Clerk Carol Colp gave the invocation.<br />

FLAG SALUTATION<br />

Mayor Thompson led the flag salutation.<br />

CITIZENS COMMENTS<br />

Nanci Jones, 345 Old Rich Hwy, <strong>Fairbanks</strong>, AK. Ms. Jones spoke to Resolution No. 4183 and asked that<br />

it be pulled from the Consent Agenda as premature and unduly harsh. She pointed out errors in the<br />

information provided by the Resolution.<br />

Donna Gilbert, 2223 S. Cushman St., <strong>Fairbanks</strong>, AK. Ms. Gilbert spoke in regard to FEDC and asked<br />

Council to stop funding to the organization. She shared from FEDC meeting minutes <strong>of</strong> September 7 and<br />

8, 2005. Finally, she spoke in opposition to the proposal for a <strong>City</strong> sales tax and asked Council to<br />

questions their motives. Mr. Cleworth questioned the source <strong>of</strong> Ms. Gilbert’s information regarding<br />

FEDC.<br />

Cliff Burglin, 319 Charles St., <strong>Fairbanks</strong>, AK. As a land consultant, born and raised in <strong>Fairbanks</strong>, and<br />

having majored in economics, Mr. Burglin stated that he has brought approximately two billion dollars in<br />

private capital into the Interior. As co-trustee <strong>of</strong> the Bentley Family Trust, Mr. Burglin spoke to the tax<br />

base generated by that property. He spoke in opposition to Ordinance No. 5617. Mayor Thompson<br />

questioned whether Mr. Burglin was aware <strong>of</strong> the <strong>City</strong> revenue cap. Mr. Burglin stated that there is<br />

absolutely no need for a sales tax. Mr. Cleworth thanked the Bentley Trust for allowing the <strong>City</strong> use <strong>of</strong><br />

the snow dump.<br />

Frank Turney, 1083 Media Ln, <strong>Fairbanks</strong>, AK. Mr. Turney spoke to FEDC stating that he has petitioned<br />

the courts to investigate the group and he spoke against Ordinance No. 5617 as regressive. He thanked<br />

Mr. Cleworth for his stand against sales tax.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 1 <strong>of</strong> 13


Bob Sawyer, 123 Steelhead Rd., <strong>Fairbanks</strong>, AK. Mr. Sawyer spoke in opposition to Ordinance No. 5617<br />

calling a sales tax regressive and a specific hardship to low income families.<br />

Mike Webb, 531 Second Ave., <strong>Fairbanks</strong>, AK. Mr. Webb spoke in opposition to Ordinance No. 5617.<br />

He stated he would support a referendum petition if Ordinance No. 5617 is adopted.<br />

Jeremy Phillips, 288 Rambling Rd., <strong>Fairbanks</strong>, AK. Mr. Phillips spoke to Resolution No. 4183 and in<br />

support <strong>of</strong> The Strip. He recommended that Council postpone the resolution.<br />

James Storlie, 619 Slater Dr., <strong>Fairbanks</strong>, AK. As owner <strong>of</strong> 907 HipHop.Com, Mr. Storlie spoke to<br />

Resolution No. 4183 and urged Council to remove it from the agenda. He spoke in support <strong>of</strong> The Strip.<br />

Dan Thompson, 1152 Coppet St., <strong>Fairbanks</strong>, AK. Mr. Thompson spoke in opposition to a sales tax. He<br />

spoke to the fairness <strong>of</strong> property tax and unfairness <strong>of</strong> sales tax. Mr. Seeliger questioned Mr. Thompson<br />

regarding the fairness <strong>of</strong> a property tax. Mayor Thompson questioned whether Mr. Thompson had read<br />

<strong>of</strong> the exemptionsdetailed in Ordinance No. 5617. Mr. Thompson stated that he had not seen a copy <strong>of</strong><br />

the ordinance. Mayor Thompson commented on the reasoning behind the ordinance.<br />

Stephen Hunter Jr., 1292 Still Valley Rd., North Pole, AK. As owner <strong>of</strong> Arctic Productions DJ Service,<br />

Mr. Hunter spoke to Resolution No. 4183 and in support <strong>of</strong> the Strip and recommended further<br />

investigation. Mr. Seeliger questioned whether Mr. Hunter felt it was irresponsible <strong>of</strong> the ownership <strong>of</strong><br />

The Strip in not reporting possible gun shots fired on the premises. Mr. Hunter explained why the call<br />

may not have been made.<br />

END SIDE ONE TAPE ONE<br />

Lloyd Hilling, 1182 Nenana St., <strong>Fairbanks</strong>, AK. Mr. Hilling spoke in opposition to Ordinance No. 5617<br />

as regressive to consumers as well as businesses. He spoke to the cost <strong>of</strong> administrating a sales tax, and<br />

to resulting bankruptcies. He spoke against forced annexation and addressed the public’s continued<br />

rejection <strong>of</strong> a sales tax. Mayor Thompson asked if Mr. Hilling ever shopped in North Pole and whether<br />

he would shop in Anchorage. Mr. Hilling stated that business is lost in North Pole due to their sales tax.<br />

Leonard Thiltgen, 2263 Bridgewater, <strong>Fairbanks</strong>, AK. As a small businessman, Mr. Thiltgen, spoke<br />

against a sales tax and against giving corporate America a break. He spoke to Police Chief H<strong>of</strong>fman’s<br />

recent newspaper editorial and recommended that Council request ten percent more <strong>of</strong> the hotel/motel tax.<br />

Mayor Thompson questioned the recommendation. Mr. Thiltgen clarified his recommendation.<br />

Van Pierson, 4705 Palo Verde, <strong>Fairbanks</strong>, AK. Mr. Pierson spoke against Resolution No. 4193 as<br />

premature. He also spoke in opposition to a sales tax.<br />

Tim Staten, 541 2 nd Ave., <strong>Fairbanks</strong>, AK. As a downtown businessman, Mr. Staten spoke against a sales<br />

tax and referred to its pursuit by Council Members Thies and Seeliger as a breach <strong>of</strong> trust. He shared the<br />

amount <strong>of</strong> property tax paid by the Mayor and each Council Member. He stated that the property tax is a<br />

viable, healthy, source <strong>of</strong> revenue. He expressed his agreement that as much as 50% <strong>of</strong> the Hotel/Motel<br />

tax should be used for <strong>City</strong> services.<br />

David Lehrman, 126 2 nd Ave., <strong>Fairbanks</strong>, AK. Stating that the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> needed a vision,<br />

Mr. Lehrman recommended approving an “Olympic Bid” sales tax and spoke to the merits <strong>of</strong> his idea. He<br />

also recommended an Ordinance be passed to give the Police Department the authority to cite idling cars.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 2 <strong>of</strong> 13


Nelson Miles, 455 3 rd Ave., <strong>Fairbanks</strong>, AK. Mr. Miles spoke in support <strong>of</strong> a sales tax and provided a<br />

history <strong>of</strong> <strong>City</strong> sales tax. He spoke to the merits <strong>of</strong> a sales tax as opposed to the burden property owners<br />

are now faced with.<br />

Robin Helas, 2630 N. Goldenrod Circle, North Pole, AK. As manager <strong>of</strong> the Co-op Diner, Ms. Helas<br />

spoke against a <strong>City</strong> sales tax.<br />

Craig Shawsay, 770 8 th Ave., <strong>Fairbanks</strong>, AK. As a small business owner, Mr. Salchez spoke against a<br />

sales tax.<br />

RECESS:<br />

Mayor Thompson called for a five minute recess.<br />

APPROVAL OF AGENDA AND CONSENT AGENDA<br />

MOTION By Mr. Thies TO APPROVE THE AGENDA AND CONSENT AGENDA, AS PRESENTED,<br />

SECOND By Mr. Cleworth.<br />

Mayor Thompson withdrew Resolution No. 4183 and reminded Council that Resolutions No. 4184 and<br />

4185 needed to be added to the agenda. Mr. Cleworth pulled Ordinance No. 5617 and Resolution<br />

No. 4181 from the Consent Agenda.<br />

MOTION By Mr. Cleworth to ADD Resolutions No. 4184 and 4185 to the Agenda, SECOND By<br />

Mr. Thies.<br />

Hearing NO OBJECTION Mayor Thompson declared Resolutions No., 4184<br />

and 4185 ADDED to the Agenda Under New Business.<br />

Mr. Johnson pulled Ordinance No. 5619 from the Consent Agenda. <strong>City</strong> Clerk, Carol Colp informed<br />

Council <strong>of</strong> a request to add Vacation <strong>of</strong> Right <strong>of</strong> Way to the Agenda under Special Orders. Mayor<br />

Thompson requested the addition <strong>of</strong> the Vacation <strong>of</strong> Right <strong>of</strong> Way.<br />

Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIED<br />

And AGENDA AND CONSENT AGENDA APPROVED, AS MODIFIED.<br />

APPROVAL OF PREVIOUS MINUTES<br />

a) <strong>Fairbanks</strong> <strong>City</strong> Council Regular Meeting Minutes <strong>of</strong> August 22, 2005.<br />

SPECIAL ORDERS<br />

APPROVED ON CONSENT AGENDA<br />

a) The <strong>Fairbanks</strong> <strong>City</strong> Council, Sitting as a Committee <strong>of</strong> the Whole CONSIDERED With the<br />

Purpose <strong>of</strong> TAKING ACTION the below referenced Notice to Recover Cost for Demolition<br />

Project. Public Testimony was taken and limited to five (5) minutes.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

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Lot 7 Block 105 Townsite, 537 8 th Avenue, <strong>Fairbanks</strong>, AK.<br />

Owner: Maureen J. Isberg<br />

MOTION By Mr. Thies TO APPROVE Notice to Recover Cost for Demolition Project, SECOND By<br />

Mr. Seeliger.<br />

There being no public testimony SPECIAL ORDERS resumed by the <strong>City</strong> Council as a Whole.<br />

Mayor Thompson called on Building Official Steve Shuttleworth for a staff report. Mr. Shuttleworth<br />

provided clarification on the request to recover the costs for the said demolition project which would be<br />

applied in the form <strong>of</strong> a lien on the property. He explained that all attempts to contact the owner, or<br />

owner representative, have failed. Mr. Kawasaki asked the reason for the action and for clarification<br />

regarding attempts to contact the owner. Mr. Shuttleworth explained that due process was required and<br />

expressed his concerns regarding his inability to contact the owner. Mr. Thies questioned the identity <strong>of</strong><br />

the owner. Mayor Thompson inquired regarding the time sensitivity <strong>of</strong> the action. Mr. Shuttleworth<br />

provided clarification including the issue <strong>of</strong> tipping fees due the FNSB in regard to the project. Mayor<br />

Thompson inquired as to the means used to attempt to contact the owner. Mr. Shuttleworth explained.<br />

Mr. Johnson questioned the necessity <strong>of</strong> immediate action and inquired as to a possible appeal following<br />

Council action. Mr. Shuttleworth stated that no subjectivity existed with the figures for the demolition.<br />

<strong>City</strong> Attorney Kuss concurred that the action taken by Council would be conclusive.<br />

END TAPE ONE<br />

Mr. Cleworth stated that he did not believe the <strong>City</strong> would have success in contacting the owner <strong>of</strong> the<br />

property and advised proceeding with action on the request.<br />

A ROLL CALL VOTE was taken on the MOTION to APPROVE Notice to Recover Costs <strong>of</strong> Demolition<br />

Project By Placing a Lien on the Property.<br />

YEAS: Eberhart, Cleworth, Seeliger, Thies, Johnson, Kawasaki<br />

NAYS:<br />

Mayor Thompson declared the MOTION CARRIED and Notice to Recover<br />

Costs <strong>of</strong> Demolition Project By Placing a Lien on the Property APPROVED.<br />

b) VACATION OF A PUBLIC RIGHT OF WAY (VA 005-06) – Request by RCH Surveys on<br />

Behalf <strong>of</strong> Ralph Harman to vacate a 35’ x 390’ public parking and access reservation adjacent to<br />

the south boundary <strong>of</strong> Lots 3-8, Blk 5, Addition to Riverside Park Subd within the SE1/4SW1/4<br />

Sec 8, T1S R1W, FM AK (located on Geraghty St., Washington Dr. and Airport Rd.)<br />

Mr. Cleworth called for a staff report. Mayor Thompson requested that Property Officer Pat Smith<br />

speak to the request. Mr. Smith spoke to the intent <strong>of</strong> the request. Mayor Thompson inquired regarding<br />

the exact area in question. Mr. Smith clarified the map provided. Mr. Kawasaki stated that the map was<br />

not a good rendition. Mr. Smith stated that the second map was the focus <strong>of</strong> the area in question. Mr.<br />

Johnson expressed concern for future planning on Airport way and questioned future use <strong>of</strong> the property<br />

and reluctance to give up the right <strong>of</strong> way. Mayor Thompson, Mr. Smith and Mr. Thies spoke to<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 4 <strong>of</strong> 13


possible future use <strong>of</strong> the area regarding public access. Mayor Thompson called on a representative for<br />

RCH.<br />

Jeremy Stark, RCH Surveys, 508 Sprucewood, <strong>Fairbanks</strong>, AK. Mr. Stark provided clarification regarding<br />

the right <strong>of</strong> way request explaining that DOT has placed access control on the entire area, and DOT<br />

planning has approved the request.<br />

MOTION By Mr. Thies to APPROVE Application for Vacation <strong>of</strong> Right <strong>of</strong> Way, SECOND By<br />

Mr. Seeliger.<br />

Mr. Johnson spoke to the value <strong>of</strong> the public property and discussion ensued regarding the actual<br />

ownership. Mr. Stark stated that the property is public but not accessible to the public and that if vacated<br />

into private ownership, would generate tax for the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong>. Mr. Cleworth questioned why the<br />

<strong>City</strong> would not sell the property. Mayor Thompson questioned who held title to the property, which<br />

could not be determined. Mr. Thies and Mr. Seeliger stated that the previous owner reserved the area for<br />

parking and asked Mr. Stark for clarification. Mr. Stark stated that the area appears on the plat as a<br />

dedication, therefore public, reserved for the public and no longer useful to the public therefore should<br />

naturally go back to the owner. Mr. Johnson stated that the property was part <strong>of</strong> the original subdivision<br />

and set aside for public use, adjacent to an existing green belt. Mayor Thompson concurred that the area<br />

is currently paved and part <strong>of</strong> a parking lot. Mr. Stark expressed his confusion regarding the process.<br />

Mr. Cleworth and Mr. Johnson expressed confusion regarding why the <strong>City</strong> would want to give up the<br />

property. Mr. Stark once again explained that there is no public access to the area. Mr. Thies concurred<br />

that it cannot be sold or given away but can be vacated according to public process and therefore added to<br />

the tax rolls. Mayor Thompson clarified the time allowed the Council to respond to the request.<br />

Mr. Cleworth questioned whether the Council could postpone action until the next regular meeting.<br />

Mayor Thompson again clarified that Council has until the 24 th <strong>of</strong> September to veto. Discussion ensued<br />

regarding the untimeliness <strong>of</strong> the request.<br />

MOTION By Mr. Johnson to VETO the Request for Vacation <strong>of</strong> Public Right <strong>of</strong> Way (VA 005-06),<br />

SECOND By Mr. Kawasaki.<br />

Mayor Thompson questioned why the Council would want to veto the request and therefore prevent the<br />

property, which is being used for public parking, to be added to the tax rolls, to benefit the <strong>City</strong>.<br />

Mr. Johnson explained his reluctance to give up public property. Mr. Thies questioned whether Platting<br />

would provide better information if the request was vetoed.<br />

Hearing NO OBJECTION Mayor Thompson declared the MOTION to<br />

VETO the Request for Vacation <strong>of</strong> Public Right <strong>of</strong> Way (VA 005-06) APPROVED.<br />

MAYOR’S COMMENTS & REPORT<br />

Mayor Thompson stated that he, Council Member Johnson, Chief Finance Officer Woolf and Fire Chief<br />

Cummings participation in the State Ways and Means Committee meeting regarding possible courses <strong>of</strong><br />

action for the PERS/TERS funding shortfall issues and called on Mr. Johnson to speak to the testimony<br />

provided by himself at the meeting. Mr. Johnson spoke to his testimony at the meeting which proposed<br />

making an immediate two million dollar payment toward the liability from the Constitutional Reserve<br />

Budget, and then to fully fund the program. Mayor Thompson thanked Mr. Johnson for his testimony to<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 5 <strong>of</strong> 13


the committee. He further spoke to the resolutions approved on the consent agenda. He stated that until<br />

this evening he has heard no testimony against a sales tax, but much testimony in support <strong>of</strong> a sales tax.<br />

He contrasted the expense to property owners under the two different taxes.<br />

UNFINISHED BUSINESS<br />

a) ORDINANCE NO. 5612 – An Ordinance to Adopt a New Fee Schedule for Emergency Medical<br />

Services; and Setting an Effective Date. Introduced by Mayor Thompson. (Postponed from<br />

Regular Meeting <strong>of</strong> August 22, 2005)<br />

MOTION By Mr. Seeliger To ADOPT ORDINANCE NO. 5612, SECOND By Mr. Thies.<br />

MOTION BY Mr. Johnson to AMEND ORDINANCE NO. 5612 To Change the Effective Date <strong>of</strong> the<br />

Ordinance from September 1 to October 1, 2005, SECOND By Mr. Thies.<br />

Hearing NO OBJECTION Mayor Thompson declared the MOTION<br />

CARRIED AND ORDINANCE NO. 5612, SO AMENDED.<br />

Mr. Johnson asked for Mr. Cummings to speak to the cost study in regard to the Ordinance.<br />

Mr. Cummings spoke to the cost <strong>of</strong> providing ambulance service to the <strong>City</strong>. Mayor Thompson<br />

questioned whether the percentage <strong>of</strong> collection rate would decrease with the increased fees.<br />

Mr. Cummings concurred that it would. Mr. Cummings provided comparison fees for Anchorage. the<br />

FNSB, and other communities, all higher than the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong>. Mr. Thies questioned the number <strong>of</strong><br />

calls for long distance service. Mr. Johnson spoke to the nature <strong>of</strong> reasonable and customary charges<br />

and pointed out that charges are placed on anyone requesting the service, resident or non-resident, and the<br />

increase is an attempt to recover actual costs to the <strong>City</strong>. Mayor Thompson asked for clarification on<br />

mileage charges. Mr. Johnson spoke to fee increases related to increased fuel costs. Mr. Cleworth<br />

spoke to the previous request for fee increases and expressed his reluctance to a fifty percent increase.<br />

MOTION By Mr. Cleworth TO AMEND ORDINANCE NO. 5612, AS AMENDED, To Reduce the<br />

Ambulance Service Fee From $600 to $500, SECOND By Mr. Eberhart.<br />

Mr. Johnson clarified the intent <strong>of</strong> the $600 fee which is to recover costs and stated he would not support<br />

the proposed amendment.<br />

A ROLL CALL VOTE was taken on the MOTION to AMEND ORDINANCE NO. 5612, AS<br />

AMENDED To Reduce the Ambulance Service Fee From $600 to $500.<br />

YEAS: Kawasaki, Cleworth, Eberhart<br />

NAYS: Thies, Johnson, Seeliger<br />

Mayor Thompson declared the MOTION FAILED<br />

Mr. Cleworth spoke to protecting the tax cap, and stated that he felt the fee was too high.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 6 <strong>of</strong> 13


A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO. 5612, AS<br />

AMENDED.<br />

YEAS: Seeliger, Johnson, Thies<br />

NAYS: Eberhart, Cleworth, Kawasaki<br />

MAYOR THOMPSON<br />

Mayor Thompson declared the MOTION CARRIED and ORDINANCE NO 5612,<br />

AS AMENDED, ADOPTED<br />

b) ORDINANCE NO. 5615 – An Ordinance Authorizing a Land Exchange to Facilitate Construction<br />

<strong>of</strong> the New Morris Thompson Cultural and Visitors Center, and Authorize the Conveyance <strong>of</strong> the<br />

Former Maranatha Hotel Site; and Setting an Effective Date. Introduced by Mayor Thompson.<br />

There being no public testimony, UNFINISHED BUSINESS resumed by the <strong>City</strong> Council as a Whole<br />

MOTION By Mr. Cleworth To ADOPT ORDINANCE NO. 5615, SECOND By Mr. Thies.<br />

Mayor Thompson called on Property Manager Pat Smith to provide a staff report clarifying the intent <strong>of</strong><br />

the ordinance. Mr. Seeliger clarified that the <strong>City</strong> would not have received money from the National<br />

park Service to purchase the Maranatha property unless the property was to be used as per the ordinance.<br />

A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO. 5615.<br />

YEAS: Johnson, Seeliger, Eberhart, Cleworth, Kawasaki, Thies<br />

NAYS:<br />

Mayor Thompson declared the MOTION CARRIED and ORDINANCE<br />

NO. 5615 ADOPTED.<br />

NEW BUSINESS<br />

a) ORDINANCE NO. 5616 – An Ordinance Authorizing a Change in Conditions for Conveyance <strong>of</strong><br />

<strong>City</strong> Parks Property to <strong>Fairbanks</strong> North Star Borough, AS Approved Under Ordinance No. 4589;<br />

And Setting an Effective Date. Introduced by Council Member Johnson.<br />

ADVANCED ON CONSENT AGENDA<br />

b) ORDINANCE NO. 5617 - An Ordinance to Amend FGC Chapter 74, Taxation, Article III, Sales<br />

Tax, By Adding Section 74.61, General Sales Tax, Suspending Section 74.67, Alcoholic Beverage<br />

Sales Tax; and Setting an Effective Date. Introduced by Council Members Thies and Seeliger.<br />

MOTION By Mr. Seeliger TO ADVANCE ORDINANCE NO. 5617, SECOND By Mr. Johnson.<br />

Mr. Cleworth asked for a staff report from <strong>City</strong> Administrator Pat Cole and Chief Finance Officer Ron<br />

Woolf. Mr. Cleworth clarified that the <strong>City</strong> employs one person, on contract, to conduct audits on<br />

existing sales tax accounts and asked for the number <strong>of</strong> accounts. Mr. Wo<strong>of</strong> concurred regarding the<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 7 <strong>of</strong> 13


employee and stated he could not confirm the number <strong>of</strong> accounts at this time. Mr. Cleworth questioned<br />

the schedule <strong>of</strong> audits. Mr. Woolf confirmed that he thought audits would be completed on all accounts<br />

this year. Mr. Cleworth questioned the number <strong>of</strong> accounts which would exist should the proposed sales<br />

tax be approved. Mr. Woolf stated he was not sure <strong>of</strong> the number. Mr. Cleworth asked for clarification<br />

regarding suggestions to hire two employees to set up and collect the sales tax. Mr. Woolf confirmed that<br />

two full time people would be needed to provide the service <strong>of</strong> setting up accounts, collecting and<br />

auditing accounts.<br />

END SIDE ONE TAPE TWO<br />

Mr. Cleworth inquired regarding the staffing required to administer a senior citizen exemption. Mr.<br />

Wo<strong>of</strong> confirmed the need for additional help both in the Finance Department and the <strong>City</strong> Clerk’s Office.<br />

Mr. Cleworth asked what the cost would be to administer the proposed sales tax, including the hiring <strong>of</strong><br />

additional staff and purchasing supplies. Mr. Woolf said that preliminary figures indicated a cost <strong>of</strong> about<br />

two hundred thousand dollars. Mr. Cleworth spoke to forms required by businesses, to be supplied by<br />

the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong>. Mr. Woolf stated that he has recommended a special Finance Committee meeting<br />

to look at the projected costs, as well as revenues. Mr. Cleworth confirmed a cost <strong>of</strong> between two and<br />

three hundred thousand dollars to administer the tax. He stated that the existing tax cap prevents the <strong>City</strong><br />

from collecting additional revenues, in spite <strong>of</strong> the increase in costs and asked why the <strong>City</strong> would do<br />

such. Mr. Woolf stated that he was not authorized to answer the question. Mr. Johnson stated that the<br />

numbers were yet to be determined through the Finance Committee. Mr. Cleworth inquired <strong>of</strong> Pat Cole,<br />

whether renters would be exempt from a sales tax. Mr. Cole confirmed that the intent is to exempt renters.<br />

Mr. Cleworth asked for clarification as to the wording <strong>of</strong> Ordinance No. 5617 exempting renters.<br />

Mr. Cole stated that although the ordinance is not clear, it is not the intent to require renters to pay sales<br />

tax. Mr. Cleworth clarified, emphatically, that the proposed sales tax would not increase revenue to the<br />

<strong>City</strong> but would increase costs. Mr. Cleworth stated that the renter exemption was a major oversight.<br />

Mayor Thompson spoke to the intent to exempt renters. Mr. Seeliger questioned the need to amend the<br />

ordinance to exempt renters.<br />

MOTION By Mr. Seeliger, To AMEND ORDINANCE NO. 5617 To Add Item 11 To Exempt Rentals Over<br />

30 Days, SECOND By Mr. Thies.<br />

Mr. Cole asked whether the intent was to exempt rental <strong>of</strong> real property <strong>of</strong> any kind, commercial or<br />

residential. Mr. Seeliger concurred with that intent.<br />

Hearing NO OBJECTION Mayor Thompson declared the MOTION to<br />

AMEND ORDINANCE NO. 5617 to ADD Item #11, to Exempt Rentals <strong>of</strong><br />

Real Property Over 30 Days, APPROVED.<br />

Mr. Cleworth spoke to Mayor Thompson’s earlier statement that there exists a large consensus <strong>of</strong> voters<br />

in favor <strong>of</strong> Ordinance No. 5617 and spoke to the past history <strong>of</strong> failed attempts to provide for a sales tax.<br />

Mr. Seeliger spoke to the burden placed on property owners who currently pay directly for all services<br />

provided within the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong>. He spoke also to the merits <strong>of</strong> the ordinance. Mr. Cleworth<br />

spoke in rebuttal <strong>of</strong> Mr. Seeliger’s comments and asked how the loss to the <strong>City</strong> was to be addressed.<br />

Mr. Eberhart spoke to the pros and cons <strong>of</strong> Ordinance No. 5617 and to the costs to be generated by<br />

instating a sales tax, and questioned whether the Ordinance should be advanced. Mr. Thies expressed his<br />

support for the ordinance. Mr. Johnson spoke to the evening’s public testimony, and apparent<br />

misinformation circulating, and stated that he would like to see numbers reflecting costs and revenue<br />

increases resulting from a proposed sales tax and would support advancement.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 8 <strong>of</strong> 13


A ROLL CALL VOTE was taken on the MOTION to ADVANCE ORDINANCE NO. 5617, AS<br />

AMENDED.<br />

YEAS: Seeliger, Kawasaki, Johnson, Thies<br />

NAYS: Eberhart, Cleworth<br />

Mayor Thompson declared the MOTION CARRIED and ORDINANCE<br />

NO. 5617, AS AMENDED, ADVANCED.<br />

c.) ORDINANCE NO. 5618 - An Ordinance to Amend FGC Chapter II, Article II, Division 4,<br />

Section 2.118, Regarding Work Sessions and Committees <strong>of</strong> the <strong>City</strong> Council; and Setting an<br />

Effective Date. Introduced by Mayor Thompson.<br />

ADVANCED ON CONSENT AGENDA<br />

d.)<br />

ORDINANCE NO.5619 - An Ordinance to Enact FGC Sections 14.501 Through 14.511, Chapter<br />

14, Businesses, Article XII, Gaming Establishments, Relating to the Operation <strong>of</strong> Card Rooms;<br />

and Setting an Effective Date. Introduced by Mayor Thompson.<br />

MOTION By Mr. Johnson TO ADVANCE ORDINANCE NO. 5619, SECOND By Mr. Thies.<br />

Mr. Johnson questioned the intent <strong>of</strong> Ordinance No. 5619 and asked for a staff report. Mayor<br />

Thompson called upon Police Chief H<strong>of</strong>fman and stated that the Public Safety Commission, which<br />

initiated the ordinance, is now in favor <strong>of</strong> eliminating card rooms completely. Chief H<strong>of</strong>fman shared that<br />

the ordinance was initiated by the Public Safety Commission and the Downtown Association because<br />

entry to the existing establishments is being denied to police <strong>of</strong>ficers. The ordinance would hold card<br />

rooms to the same standards as other licensed premises and explained the need for this. Mr. Johnson<br />

questioned the need to issue a license to which Mr. H<strong>of</strong>fman clarified the intent was not to legalize<br />

gambling. Mr. Thies questioned the need for such a high application fee for a “social club”. Mayor<br />

Thompson spoke to the need to regulate the operations. Mr. Johnson spoke in support <strong>of</strong> advancement <strong>of</strong><br />

the ordinance but questioned whether a license was the right avenue, rather than using a search warrant.<br />

A ROLL CALL VOTE was taken on the MOTION to ADVANCE ORDINANCE NO. 5619.<br />

YEAS: Thies, Johnson, Kawasaki, Seeliger, Cleworth, Eberhart<br />

NAYS:<br />

Mayor Thompson declared the MOTION CARRIED and ORDINANCE<br />

NO. 5619 ADVANCED.<br />

e) RESOLUTION NO. 4179 – A Resolution Recognizing and Thanking the Save Eielson Committee<br />

for their Successful Effort <strong>of</strong> the Removal <strong>of</strong> Eielson Air Force Base From the BRAC List From<br />

Realignment to a Warm Base Status. Introduced by Mayor Thompson.<br />

APPROVED ON CONSENT AGENDA<br />

f) RESOLUTION NO. 4180 – A Resolution Authorizing the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> to Accept Funds<br />

From the Office For Domestic Preparedness, US Department <strong>of</strong> Homeland Security Assistance to<br />

Fire Fighters Grant Program For the Replacement <strong>of</strong> a 1977 Aerial Ladder Fire Truck in an<br />

Amount <strong>of</strong> $675,000. Introduced by Mayor Thompson.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 9 <strong>of</strong> 13


APPROVED ON CONSENT AGENDA<br />

g) RESOLUTION NO. 4181 – A Resolution Authorizing Participation By the <strong>City</strong> in House Bill<br />

161, to Allow Re-Employment <strong>of</strong> Employees Who are Currently Receiving PERS Retirement<br />

Benefits. Introduced by Mayor Thompson.<br />

MOTION By Mr. Cleworth TO APPROVE RESOLUTION NO. 4181, SECOND By Mr. Thies.<br />

Mr. Cleworth expressed his concerns and questioned Mayor Thompson whether this action would need<br />

to be renewed annually. Mayor Thompson expressed that approval would be needed only once since the<br />

program is extended until 2009. Mr. Thies questioned whether the employee would need to make<br />

payments, and Mayor Thompson confirmed that they would and explained the intent. Mr. Thies<br />

confirmed the differences in regard to new employees and Mr. Johnson confirmed also. Mr. Johnson<br />

questioned whether the State <strong>of</strong> Alaska Division <strong>of</strong> Retirement had been contacted by the <strong>City</strong> and that<br />

the <strong>City</strong> can adopt only a portion <strong>of</strong> HB 161, making it only applicable to two employees. Mr. Kuss<br />

provided clarification although he stated that he did not contact the Division. Mr. Johnson spoke to<br />

pending litigation by the Police Officers Association concerning non-funding and expressed concerns for<br />

potential damages beyond July 1, 2005. He recommended an agreement with the Police Officers<br />

Association. Mr. Kuss provided his opinion. Mr. Johnson spoke to the pending litigation and<br />

recommended securing a written agreement with PSA prior to implementation <strong>of</strong> the terms <strong>of</strong> the<br />

resolution and obtaining concurrence with the Division <strong>of</strong> Retirement on the terms <strong>of</strong> HB161. He<br />

recommended tabling the resolution. Mr. Cleworth questioned whether the <strong>City</strong> can legally contract<br />

with individuals for employment.<br />

MOTION By Mr. Johnson TO POSTPONE ACTION ON RESOLUTION NO. 4181 Until the Regular <strong>City</strong><br />

Council Meeting <strong>of</strong> September 26, 2005, SECOND By Mr. Thies.<br />

Hearing NO OBJECTION Mayor Thompson declared the MOTION to<br />

POSTPONE ACTION ON RESOLUTION NO. 4181 Until the Regular<br />

<strong>City</strong> Council Meeting <strong>of</strong> September 26, 2005, CARRIED.<br />

h) RESOLUTION NO. 4182 – A Resolution Urging the State to Amend the PERS Statutes to<br />

Provide for a Maximum Employer Contribution Rate. Introduced by Mayor Thompson and<br />

Council Members Cleworth and Johnson.<br />

APPROVED ON CONSENT AGENDA<br />

i) RESOLUTION NO. 4183 - A Resolution Requesting that the Alcohol Beverage Control Board<br />

Take Enforcement Action Regarding “The Strip” and Stating the Intent <strong>of</strong> the Council to Protest<br />

Renewal <strong>of</strong> This License. Introduced by Mayor Thompson.<br />

WITHDRAWN BY MAKER<br />

j) RESOLUTION NO. 4184 – A Resolution Approving a Change Order for Construction <strong>of</strong> the Fire<br />

Station Headquarters Design Build Project. Introduced By Mayor Thompson.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 10 <strong>of</strong> 13


There being no public hearing UNFINISHED BUSINESS resumed by the <strong>City</strong> Council as a Whole.<br />

MOTION By Mr. Thies TO APPROVE RESOLUTION NO. 4184, SECOND By Mr. Johnson.<br />

Mayor Thompson called upon Pat Smith for a staff report. Mr. Smith clarified the request for change<br />

order which would apply homeland security funds to contract for the installation <strong>of</strong> a Westnet First In<br />

Alerting System. Mr. Kawasaki asked for clarification on the funding source for the change. Mr. Smith<br />

stated that the funds are now available for the wiring portion <strong>of</strong> the installation only at this time and the<br />

additional project would push the projected opening date <strong>of</strong> the Fire Station into late December.<br />

Mr. Cleworth asked for an explanation <strong>of</strong> the Westnet System. Mr. Smith provided the requested<br />

explanation. Mr. Cleworth questioned whether the funding source could be applied elsewhere.<br />

Mr. Smith explained that there are time restraints to the use <strong>of</strong> the funds. Mr. Johnson spoke to the<br />

revised completion date to which Mr. Smith responded that the contractor had not yet responded to his<br />

request for a formal written completion date, but verbally they are expecting completion between the first<br />

and fifteenth <strong>of</strong> November. Mr. Johnson spoke to potential delays to the completion <strong>of</strong> the building and<br />

questioned the time frame for the turn over <strong>of</strong> the old fire station. Mr. Smith explained that anytime spent<br />

in the building after December 15, 2005 will result in payment <strong>of</strong> rent to the new owner. Mr. Kawasaki<br />

questioned the cost <strong>of</strong> installation and replacement <strong>of</strong> the current alarm system. Mayor Thompson called<br />

upon Fire Chief Cumming. Mr. Cleworth inquired as to how the request originated. Mr. Cummings<br />

provided clarification regarding the funding source. Mr. Cleworth questioned whether the funds could<br />

be applied elsewhere to which Mr. Cummings stated that he would make every effort to use the funds<br />

elsewhere. Mr. Johnson questioned limitations on the use <strong>of</strong> funds. Mr. Cummings provided clarification<br />

as to grant requirements. Mr. Seeliger expressed his concern for the potential for delay <strong>of</strong> the completion<br />

<strong>of</strong> the new fire station. Mr. Cummings commented. Mr. Cleworth expressed his concerns including<br />

delays to completion <strong>of</strong> the project and partial funding, and stated that he would not support the<br />

resolution.<br />

END SIDE TWO TAPE TWO<br />

A ROLL CALL VOTE was taken on the MOTION to APPROVE RESOLUTION NO. 4184<br />

YEAS:<br />

NAYS: Cleworth, Eberhart, Seeliger, Johnson, Thies, Kawasaki<br />

Mayor Thompson declared the MOTION FAILED<br />

k) RESOLUTION NO. 4185 – A Resolution Approving Application and Acceptance <strong>of</strong> Funding<br />

Through the Alaska Highway Safety Office for the State’s 2006 Fiscal Year. Introduced By<br />

Mayor Thompson.<br />

There being no public hearing UNFINISHED BUSINESS resumed by the <strong>City</strong> Council as a Whole.<br />

MOTION By Mr. Thies TO APPROVE RESOLUTION NO. 4185, SECOND By Mr. Johnson.<br />

Mayor Thompson called on Police Chief H<strong>of</strong>fman for a staff report. Mr. H<strong>of</strong>fman explained the intent<br />

<strong>of</strong> the resolution which combined two separate grants. Mr. Johnson spoke to finance committee<br />

concerns and Mr. Cleworth inquired as to stipulations <strong>of</strong> the grant in regard to the two positions it would<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 11 <strong>of</strong> 13


fund. Mr. H<strong>of</strong>fman explained the conditions and spoke to Mr. Cleworth’s questions regarding the length<br />

<strong>of</strong> employment terms.<br />

A ROLL CALL VOTE was taken on the MOTION to APPROVE RESOLUTION NO. 4185.<br />

YEAS: Johnson, Seeliger, Cleworth, Thies, Kawasaki, Eberhart<br />

NAYS:<br />

Mayor Thompson declared the MOTION CARRIED and RESOLUTION NO. 4185<br />

APPROVED.<br />

DISCUSSION ITEMS (INFORMATION AND REPORT)<br />

a) Chief Finance Officer’s Report<br />

Mr. Woolf presented his report and requested a special meeting <strong>of</strong> the Finance Committee in order to<br />

address the cost for implementing a sales tax as well as expected revenues. It was agreed to hold a special<br />

meeting on Tuesday, September 20, 2005 at 7:00 AM. Mayor Thompson requested that Mr. Woolf<br />

inform Council regarding recent meetings Mr. Woolf and Carman Randle attended on HUD requirements.<br />

Mr. Woolf shared that information with Council. Mr. Cleworth inquired regarding Permanent Fund<br />

earning figures in Mr. Woolf’s report to which Mr. Woolf explained that the figures reflected a previous<br />

error in accounting. Mr. Woolf discussed possible affects on the market due to hurricane Katrina.<br />

Mr. Johnson commented on the permanent fund investment interest earnings.<br />

<strong>COUNCIL</strong> MEMBERS COMMENTS<br />

Mr. Cleworth spoke to the structure <strong>of</strong> FEDC and issues as addressed under Citizens Comments by<br />

Ms. Gilbert and asked for a copy <strong>of</strong> the minutes referred to by Ms. Gilbert. He expressed his concerns<br />

regarding the <strong>City</strong> snow dump and Karen Parr’s plans for a retirement home. Mayor Thompson<br />

recommended that a decision be made regarding this issue, as soon as possible. Mr. Cleworth spoke to<br />

the requirement for the FNSB to provide property for a snow dump. He congratulated Mr. Thies son for<br />

his recent athletic accomplishment.<br />

Mr. Thies passed on comment.<br />

Mr. Eberhart spoke to the FEDC situation and requested more information and in closing urged listeners<br />

to contribute to the victims <strong>of</strong> hurricane Katrina.<br />

Mr. Seeliger thanked Chief H<strong>of</strong>fman for his recent editorial, spoke to FEDC and asked for a copy <strong>of</strong> the<br />

minutes referred to by Ms. Gilbert and spoke in support <strong>of</strong> a sales tax asking for those that are in support<br />

<strong>of</strong> a sales tax to speak out.<br />

Mr. Johnson passed on comment.<br />

Mr. Kawasaki thanked Mayor Thompson for withdrawing Resolution No. 4183 and spoke to the need for<br />

more information on such subjects in the future. He also spoke to the need for more information in regard<br />

to FEDC considering the funding provided by the <strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong>. Mayor Thompson stated that the<br />

last monthly payment from the <strong>City</strong> to FEDC went out last week for the month <strong>of</strong> September.<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 12 <strong>of</strong> 13


ADJOURNMENT<br />

MOTION By Mr. Seeliger TO ADJOURN, SECOND By Mr. Thies.<br />

Hearing NO OBJECTION, Mayor Thompson declared the MOTION<br />

CARRIED, and the Meeting ADJOURNED at 10:52 PM.<br />

CAROL L. COLP CMC, <strong>CITY</strong> CLERK<br />

STEVE M. THOMPSON, MAYOR<br />

Transcribed by: Carol L. Colp CMC, <strong>City</strong> Clerk<br />

<strong>City</strong> <strong>of</strong> <strong>Fairbanks</strong> September 12, 2005<br />

Regular Meeting Minutes, As Corrected Page 13 <strong>of</strong> 13

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