FAIRBANKS CITY COUNCIL - City of Fairbanks

FAIRBANKS CITY COUNCIL
REGULAR MEETING MINUTES September 26, 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:
Absent/Excused:
Also Present:
INVOCATION
City Clerk Carol Colp gave the invocation.
Jerry Cleworth , Don Seeliger, Scott Kawasaki
Jeff Johnson, John Eberhart
Howard Thies (Attended Telephonically)
Herb Kuss-City Attorney, Carol Colp-City Clerk
Dan Hoffman-Police Chief, Warren Cummings-Fire Chief
Pat Cole-Admin. Services Director, Tony Shumate-Personnel
Pat Smith-Property Officer, Ron Woolf-CFO
FLAG SALUTATION
Mayor Thompson led the flag salutation.
OATH OF OFFICE
Mayor Thompson administered the oath of office to the following City of Fairbanks police officers:
Mark M. Dryer, Ron J. Dupee, James M. Gibson, Albert J. Hutton, Maximilian C. Lambert, John E.
Merrion, James O’Malley
CITIZENS COMMENTS
Cliff Berglin, 319 Charles St., Fairbanks, AK. Mr. Berglin requested to speak to Ordinance No. 5617 and
was directed to speak under Unfinished Business.
Donna Gilbert, 2223 S. Cushman St., Fairbanks, AK. Ms. Gilbert spoke to the professionalism of the
police officers when she was required to deal with them during the past week. She spoke to the hiring of
Mr. Dodson by FEDCO for a fee of $15,000 per month and urged Council to stop funding the
organization. Finally, she played an audio taped portion of FEDCO minutes.
Ron Kovalik, 2 Mi. Chena, Fairbanks, AK. Mr. Kovalik spoke to the FEDCO issue and against the City
of Fairbanks and the FNSB providing funding to the organization.
APPROVAL OF AGENDA AND CONSENT AGENDA
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MOTION By Mr. Cleworth TO APPROVE THE AGENDA AND CONSENT AGENDA, SECOND By
Mr. Seeliger.
Mr. Cleworth requested that the title of Ordinance No. 5650 be corrected as well as wording on page 8 of
the Regular City Council Meeting Minutes for September 12, 2005. Mr. Johnson pulled Ordinance No.
5622 from New Business.
Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIED
And AGENDA AND CONSENT AGENDA APPROVED, AS MODIFIED.
APPROVAL OF PREVIOUS MINUTES
a) Fairbanks City Council Regular Meeting Minutes of September 12, 2005.
SPECIAL ORDERS
APPROVED ON CONSENT AGENDA, AS CORRECTED
a) VACATION OF A PUBLIC RIGHT OF WAY (VA 005-06) – Request by RCH Surveys on
Behalf of Ralph Harman to vacate a 35’ x 390’ public parking and access reservation adjacent to
the south boundary of Lots 3-8, Blk 5, Addition to Riverside Park Subd within the SE1/4SW1/4
Sec 8, T1S R1W, FM AK (located on Geraghty St., Washington Dr. and Airport Rd.)
MOTION By Mr. Seeliger to RESCIND Previous Veto, SECOND By Mr. Thies.
Mayor Thompson called on Property Manager Pat Smith for a staff report. Mr. Smith spoke to Council
regarding the specifics of the application and provided information regarding the non-objection of the
State of Alaska DOTPF. He explained the process whereby the property would revert to the former
owner should Council rescind their previous veto. Mr. Cleworth asked whether Mr. Smith was in favor
of the application. Mr. Smith stated that he had no reason to reject the application. Mayor Thompson
provided further clarification regarding the vacation application.
A ROLL CALL VOTE was taken on the MOTION to RESCIND the Previous VETO on Application for
Vacation of Public Right of Way V005-06.
YEAS: Thies, Cleworth, Seeliger, Kawasaki, Johnson, Eberhart
NAYS:
Mayor Thompson declared the MOTION CARRIED and Previous VETO RESCINDED.
MAYOR’S COMMENTS & REPORT
Mayor Thompson congratulated Police Chief Hoffman on being named Chief Police Officer of the
Month for October 2005. He thanked DOT M&O regarding their efforts in hydro-axing and clearing a
problem area at Airport and Richardson Highway. He thanked Mr. Seeliger and Mr. Thies for introducing
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Ordinance No. 5617 and spoke to the intent of the ordinance to reduce the burden on property owners of
financing city government. He expressed his support of a sales tax.
UNFINISHED BUSINESS
a) ORDINANCE NO. 5616 – An Ordinance Authorizing a Change in Conditions for Conveyance of
City Parks Property to Fairbanks North Star Borough, AS Approved Under Ordinance No. 4589;
And Setting an Effective Date. Introduced by Council Member Johnson.
There being no public testimony, UNFINISHED BUSINESS resumed by the City Council as a Whole
MOTION By Mr. Johnson To ADOPT ORDINANCE NO. 5616, SECOND By Mr.Seeliger.
Mr. Johnson spoke to the intent of the ordinance and pointed out the conditions of property use as set
forth in Ordinance No. 4589. He expressed his concerns that the City and Borough are subdividing` parks
and recreation property. Mr. Eberhart spoke to the probability that the fish hatchery project would not
take place and whether the property would revert back to the City in that case. Mr. Johnson clarified that
the ordinance only approves the fish hatchery usage of the property and not uses other than parks and
recreation.
MOTION By Mr. Eberhart TO AMEND ORDINANCE NO. 5616 TO ADD SECTION 5, TO READ: “In
the event that the State of Alaska fish hatchery project does not proceed, existing covenants will
remain in effect (as per Section 3(c) of Ordinance No. 4589.)” AND EXISTING SECTION 5 WILL
BECOME SECTION 6; SECOND By Mr. Seeliger.
Mr. Cleworth assisted in the wording of the amendment.
Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIED
And ORDINANCE NO 5616, SO AMENDED.
A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO. 5616, AS
AMENDED.
YEAS: Eberhart, Seeliger, Thies, Johnson, Kawasaki, Cleworth
NAYS:
Mayor Thompson declared the MOTION CARRIED and ORDINANCE NO 5616,
AS AMENDED, ADOPTED.
b) ORDINANCE NO. 5617 - An Ordinance to Amend FGC Chapter 74, Taxation, Article III, Sales
Tax, By Adding Section 74.61, General Sales Tax, Suspending Section 74.67, Alcoholic Beverage
Sales Tax; and Setting an Effective Date. Introduced by Council Members Thies and Seeliger.
Cliff Berglin, 319 Charles St., Fairbanks, AK. Mr. Berglin spoke to a letter to the editor written by Lloyd
Hilling, in opposition to a sales tax. He spoke to actions by previous mayors to get rid of a sales tax and
also to the tax base provided by the Bentley Trust property.
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Dave Lambert, 3431 Airport Way, Fairbanks, AK. Mr. Lambert spoke to item (b)(9) addressing fund
raising and requested that a licensee exemption be included in the ordinance. Mayor Thompson clarified
that a committee would be appointed to make necessary changes to the ordinance, if adopted.
Robert Fox, 1121 1 st Ave., Fairbanks, AK. Mr. Fox spoke in support of a sales tax, annexation, and a
Borough-wide sales tax. He spoke to the current burden of property owners in the City of Fairbanks. He
urged Council to pay attention to city residents.
Mrs. Earl Cook, 238 Well St., Fairbanks, AK. As a property owner, Mrs. Cook, spoke in opposition to a
sales tax, as a hardship to businesses.
Jim Carter, 79 Slater Dr., Fairbanks, AK. As a banker, Mr. Carter spoke in support of Ordinance No.
5617, with a few changes. He spoke to the merits of the sales tax imposed by Kenai, and to the high mil
rate in Fairbanks, which shifts the burden for financing government services to the property owner. He
recommended exempting newspapers and banking activities.
Samuel Richardson, 500 Craig, Fairbanks, AK. Mr. Richardson spoke in support of sales tax in order to
share the burden of financing City services and government among non-property owners and tourists.
Mayor Thompson questioned whether a reduction in property tax would allow Mr. Richardson to reduce
rents on his property.
END SIDE ONE TAPE ONE
Nancy Baker, Fairbanks, AK. Ms. Baker spoke in opposition to a sales tax as a burden to small business
and as a cost to the city to implement. She asked whether revenue sharing from the State would help the
City. She spoke to the merits of a State income tax as opposed to a sales tax.
Larry Long, 326 Baranof, Fairbanks, AK. Mr. Long spoke to the proposal to eliminate property tax by
implementing a sales tax, and expressed that the decision should be made by the voters, not the Council.
He thanked Council members Kawasaki and Johnson for their efforts while on the Council.
Vivian Stiver, 1382 6 th Ave., Fairbanks, AK. As a business owner in the City, Ms. Stiver spoke in
opposition to a sales tax stating that the issue needs to be decided by the voters.
Rita Leake, 228 Farmers Lap., Fairbanks, AK. Ms. Leake spoke in opposition to a sales tax stating that
she would shop elsewhere rather than pay a sales tax. She spoke to past unfavorable actions by the City
Council including the sale of MUS, against having non-city residents contribute to the amenities that are
provided to City residents and recommended that a sales tax, if adopted, should be named “The ET
Barnette Memorial Fund.”
Marlene Leak, 771 1 st Ave., Fairbanks, AK. Ms. Leak spoke in opposition to a sales tax addressing the
cost of collection, and spoke to taxes as being confiscatory. She stated that sales tax does not provide a
benefit to the community and that people should know what taxes they are paying. She compared
property tax and sales tax and expressed that the decision to adopt a sales tax should be made by the
voters. Mayor Thompson questioned Ms. Leak as to the difficulties young people face in affording the
property taxes. Ms. Leak stated that the sales tax is to be benefit neutral and recommended living within
our means.
BREAK – Mayor Thompson called for a three minute break.
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Richard Thompson, 551 2 nd Ave., Fairbanks, AK. As a thirty year business owner, Mr. Thompson spoke
in opposition to a sales tax stating that the decision should be left to the voters and questioned whether the
property tax mil rate should come down when assessed values go up.
Linda Kang, 1182 Nenana St., Fairbanks, AK. Ms. Kang spoke in opposition to a sales tax and
recommended letting the voters make a decision regarding sales tax.
Lloyd Hilling, 1182 Nenana St., Fairbanks, AK. Mr. Hilling spoke to the problems with the sound system
and spoke in opposition to a sales tax. He stated that commercial property owners pass on the cost of
property tax to customer, which includes tourists and other non-residents. He stated that a sales tax is a
global issue that is not good for the City and could lead to losing relief options with the State. Mayor
Thompson clarified that the City has a revenue cap, not a tax cap.
Ron Kovalik, Chena, Fairbanks, AK. Mr. Kovalik spoke in opposition to Ordinance No. 5617 and
questioned the proposed exemption on food. He stated that the best tax is clear and painful and accused
Council of sneaking in the tax.
Frank Turney, 1083 Media Ln., Fairbanks, AK. Mr. Turney spoke in opposition to a sales tax, as just
another burden to the people, and recommended allowing the voters to decide the issue. He asked Mayor
Thompson to reconsider his vote if a tie vote resulted on the motion to adopt the ordinance.
Rita Allee, 750 8 th Ave., Fairbanks, AK. Ms. Allee spoke in opposition to a sales tax and stated her
reasons and concerns. Stating that the ordinance is not well crafted she urged council to defeat the
ordinance and allow a newly constituted council to deal with the issue.
Leonard Thiltgen, 2263 Bridgewater, Fairbanks, AK. As a City property owner, Mr. Thiltgen spoke in
opposition to Ordinance No. 5617 and addressed the cost to administer the tax and stated that property tax
can be controlled and sales tax can be controlled. He recommended applying the property tax from new
construction or increased valuation to existing property tax which would allow the revenue cap to remain
unchanged. He urged Council to vote against the ordinance and look to other sources of revenue.
Buzz Otis, PO Box 72441, Fairbanks, AK. As a Borough resident, Mr. Otis thanked council members
Thies and Seeliger and spoke in support of sales tax as a diversification of revenue.
END SIDE TWO TAPE ONE
Anne Roberts, 2821 Totem Dr., Fairbanks, AK. As a non-city resident, Ms. Roberts spoke in opposition
to a sales tax and stated that she contributes to the cost of City services by doing business with city
merchants. She stated that a sales tax would be incentive to shop elsewhere.
Ted Cox, 2000 Riverview Dr., Fairbanks, AK. Speaking in support of a sales tax, Mr. Cox stated that
voters would turn down any tax proposed, including a property tax and that City residents need relief.
Jennifer Haines, 1115 Fairbanks, Fairbanks, AK. Ms. Haines spoke in opposition to a sales tax and
recommended that the voters be allowed to decide the issue.
Wayne Mahalak, Fairbanks, AK. As the husband of a small downtown business owner, Mr. Mahalak
spoke in opposition to a sales tax.
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Jim Moody, 665 10 th Ave., Fairbanks, AK. Mr. Moody spoke in opposition to a sales tax. He stated that
he was pleased with the way the City is operating, expressed concerns for the hidden costs of
administering the tax, and stated that more bed tax should go toward city services. He expressed concerns
as to whether home made handicrafts would be taxable and questioned the proposed senior rebate.
Glen DeSpain, Tok, AK. As a former resident of FNSB, Mr. DeSpain spoke in opposition to a sales tax
stating that the voters have always voted against a sales tax.
Danny Thompson, 1152 Coppet St., Fairbanks, AK. Mr. Thompson spoke in opposition to the sales tax
and stated his reasons. He stated that sales tax is regressive and property tax encourages development to
the highest value of the property. He said that a sales tax is unfair.
Cynthia Henry, 3216 Riverview Dr., Fairbanks, AK. Expressing her appreciation for the financial
hardships faced by the City, Ms. Henry spoke in opposition to a sales tax as inappropriate as a revenue
source at this time and provided an explanation.
Donna Gilbert, S. Cushman St., Fairbanks, AK. Ms. Gilbert spoke in opposition to a sales tax and
expressed her concerns. She critiqued those that had spoken in support of the sales tax and addressed the
regressive nature of such a tax. She once again played a portion of the taped FEDCO minutes.
Dale Durwachter, 2107 Central Ave., Fairbanks, AK. Mr. Durwachter spoke in support of Ordinance No.
5617 and commended youthful leadership on the Council and in the community.
Mary McBride, 208 8 th Ave., Fairbanks, AK. Ms. McBride spoke in opposition to Ordinance No. 5617
and urged Council to vote the ordinance down.
END SIDE ONE TAPE TWO
Tim Staten, 4636 Fairchild, Fairbanks, AK. As a business owner downtown Mr. Staten spoke in
opposition to Ordinance No. 5617 and to the City’s increase in revenues through increased property tax.
He provided a petition against the ordinance and spoke to losses that would result through elimination of
City property tax. He spoke to the cost of administering a sales tax and recommended seeking revenue
sharing from the State in order to increase revenue. Mayor Thompson questioned Mr. Staten regarding
increases in revenue which would result from new construction and through an increase in the revenue
cap by the value of the CPI of Anchorage.
Suzy Waugaman, Fairbanks, AK. As Executive Director of the Downtown Association, Ms. Waugaman
spoke in opposition to Ordinance No. 5617 and urged Council not to adopt the ordinance without a vote
of the people, on behalf of the Board of the Board of Directors of the Downtown Association.
Nelson Miles, Fairbanks, AK. Mr. Miles spoke in support of Ordinance No. 5617 and a sales tax.
There being no further public testimony, UNFINISHED BUSINESS resumed by the City Council as a
Whole
BREAK – Mayor Thompson called for a five (5) minute break
MOTION By Mr. Seeliger To ADOPT ORDINANCE NO. 5617, SECOND By Mr. Thies.
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Mr. Johnson asked for a staff report from Chief Finance Officer Ron Woolf regarding the estimated cost
of implementing Ordinance No. 5617. Mr. Woolf spoke to a summary provided to Council regarding the
estimated costs of collection of a sales tax at a cost of about $370,000 per year. Mr. Kawasaki inquired
whether currently only one person was handling tax collection and questioned whether the City would
only need two additional people to administer the sales tax collection. Mr. Woolf stated that the finance
department could collect the tax with only two additional employees although the department is currently
understaffed. Mr. Johnson asked Mr. Woolf to clarify that the current tax cap limits revenue and
therefore the costs to administer the tax collection would have to be absorbed by the current budget.
Mr. Woolf concurred. In regard to the fact that last years taxes could be increased by the Anchorage CPI
and new construction, Mr. Johnson questioned how this would be possible if the mil rate were zero.
Mr. Woolf stated that no change would be made on how the revenue cap is now calculated and explained
how that calculation is made. Mr. Eberhart questioned the plan to suspend property tax and Mr. Woolf
clarified that the sales tax would be suspended once the revenue cap was reached. Mr. Eberhart
questioned whether the cost of $370,000 would include the cost of auditing accounts. Mr. Woolf said it
would not. Mr. Eberhart questioned potential legal costs of collection. Mr. Woolf concurred that those
costs were not considered in his figures. Mr. Johnson spoke to the process for non-payment of taxes.
Mr. Cleworth questioned whether two or three additional employees would be required. Mr. Woolf
clarified that his figures allowed for three employees. Stating that Kenai employs six people to administer
their sales tax, Mr. Cleworth questioned Mr. Woolf’s figures. Mr. Seeliger spoke to the participation of
the public in testimony and stated that the Ordinance was an issue of tax relief for property owners and
that he would vote for adoption. Mr. Eberhart spoke to the divisive nature of the sales tax issue,
addressed potential problems and stated that the issue should be decided by voters and he would not
support Ordinance No. 5617. Mr. Kawasaki spoke to the compelling testimony presented and reasons to
support as well as oppose a sales tax. He stated that he would not support the ordinance and gave his
reasons. He addressed ethics violations of government at all levels as a reason for the public’s reluctance
to trust government. He recommended that the Council strive to promote the issue and proposed an
amendment to the ordinance.
MOTION By Mr. Kawasaki TO AMEND ORDINANCE NO. 5617, Line 11 to Remove “Amend” and to
Replace with “Place Before City Voters an Amendment to”, Line 145 to Strike “except for” and “which”,
Line146 Strike” the effective date….2006.”and to ADD” The Ordinance Shall Be Placed Before the
Voters at the Next Regular Election in 2007. The Effective Date of this Ordinance Shall be the First Day
of January 2008.” SECOND By Mr. Eberhart.
Mr. Kawasaki spoke to the intent of his amendment. Mayor Thompson asked for clarification.
Mr. Johnson spoke to the proposed amendment and spoke against the Ordinance.
A ROLL CALL VOTE was taken on the MOTION to AMEND ORDINANCE NO. 5617
YEAS: Cleworth, Eberhart, Kawasaki
NAYS: Seeliger, Johnson, Thies,
MAYOR: Nay
Mayor Thompson declared the MOTION FAILED.
END SIDE TWO TAPE TWO
Mr. Cleworth spoke in opposition to Ordinance No. 5617. He thanked all who testified. He spoke to
past history of sales tax and to a study done by Dr. Robert Bland of the University of North Texas
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egarding the value of property tax as a stable and predictable source of revenue for municipalities. He
stated that businesses cannot pass on all of their costs to consumers. He critiqued Ordinance No. 5617
point by point, concluding that the ordinance is neither fair nor financially feasible. He spoke against
efforts to avoid a vote of the people. He recommended making an effort to lobby Juneau for a tiered tax
structure.
A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO. 5617.
YEAS: Seeliger, Thies
NAYS: Cleworth, Eberhart, Johnson, Kawasaki
Mayor Thompson declared the MOTION FAILED.
c) ORDINANCE NO. 5618 – An Ordinance to Amend FGC Chapter II, Article II, Division 4,
Section 2.118, Regarding Work Sessions and Committees of the City Council; and Setting an
Effective Date. Introduced by Mayor Thompson.
There being no public testimony, UNFINISHED BUSINESS resumed by the City Council as a Whole.
MOTION By Mr. Seeliger TO ADOPT ORDINANCE NO. 5618, SECOND By Mr. Johnson.
Mr. Eberhart thanked Mr. Johnson for his work on the finance committee and expressed his concerns in
having a public member on the finance committee.
MOTION By Mr. Eberhart TO AMEND ORDINANCE NO. 5618 Section 2-118.1 (b) to eliminate “and
one public member with experience in finance, accounting or management.” From the Second Sentence,
SECOND By Mr. Kawasaki.
Mr. Seeliger spoke against the proposed amendment. Mr. Johnson cited the Permanent Fund
Committee and spoke against the proposed amendment and to the importance of having a public member.
Mr. Kawasaki recommended changing the name of the committee. Stating that the ordinance is
confusing, Mr. Cleworth spoke to the intent of Council in establishing the Finance Committee. He
suggested clarifying the voting members. Mayor Thompson spoke to the need for expertise on the
committee, which may not be available on the Council. Mr. Cleworth spoke to clarifying the voting
members once again. Mr. Seeliger asked for clarification on the proposed amendment. Mayor
Thompson clarified indicating that the third sentence of the paragraph would have to be amended to
eliminate the wording “public member.” Mr. Eberhart agreed with Mr. Cleworth’s proposal to include a
public member without voting rights. Mr. Seeliger questioned Mr. Eberhart’s intent. Mr. Johnson
spoke to the proposed amendment and noted other members of the committee including the Chief Finance
Officer and Chief of Staff.
MOTION By Mr. Cleworth TO TABLE ORDINANCE NO. 5618, SECOND By Mr. Kawasaki.
A ROLL CALL VOTE was taken on the MOTION to TABLE ORDINANCE NO. 5618.
YEAS: Eberhart, Cleworth, Seeliger, Kawasaki, Johnson, Thies
NAYS:
Mayor Thompson declared the MOTION CARRIED AND ORDINANCE
NO. 5618 TABLED.
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d) ORDINANCE NO.5619 - An Ordinance to Enact FGC Sections 14.501 Through 14.511, Chapter
14, Businesses, Article XII, Gaming Establishments, Relating to the Operation of Card Rooms;
and Setting an Effective Date. Introduced by Mayor Thompson.
Suzy Waugaman, Executive Director of the Downtown Association. Ms. Waugaman spoke in support of
Ordinance No. 5619 on behalf of the Downtown Association. Mr. Kawasaki questioned Ms. Waugaman
regarding the number of card rooms in the City.
There being no further public testimony, UNFINISHED BUSINESS resumed by the City Council as a
Whole.
MOTION By Mr. Seeliger to ADOPT ORDINANCE NO. 5619, SECOND By Mr. Cleworth.
Mr. Johnson questioned the definition of gaming. Chief Hoffman was called on for a staff report. He
deferred to Chief of Staff Pat Cole. Mr. Cole pointed out that the ordinance defines gaming room in Sec.
14-511. He spoke to the intent of the ordinance to regulate. Mr. Kawasaki questioned other means to
accomplish the intent addressing FGC Sec. 1-19 specifically. Mr. Hoffman stated that the Sec. 1.119 of
the FGC may violate civil rights. Mr. Kawasaki spoke to the ordinance as a burden to legal
establishments of the nature defined. Mayor Thompson stated that the ordinance would allow legal
entry in order to determine that illegal activity was not occurring at such establishments. Mr. Johnson
asked for further clarification on the definition to which Mr. Cole responded with the intent of the
Ordinance. Mr. Eberhart asked the position of the Public Safety Commission. Chief Hoffman clarified
that the Commission is in support of the Ordinance. Mr. Kawasaki expressed his reluctance to amend
the code for so few potential nuisance businesses and spoke again to other avenues to accomplish the
intent of the ordinance. Mr. Seeliger questioned the need for such a lengthy ordinance. Mr.Cleworth
addressed the length of the ordinance and questioned how game rooms can operate legally. Mr. Hoffman
spoke to the attempt, through Ordinance No. 5619, to solve a problem in a common sense way.
A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO. 5619.
YEAS: Thies, Johnson, Seeliger, Cleworth, Eberhart
NAYS: Kawasaki
Mayor Thompson declared the MOTION CARRIED AND ORDINANCE
NO. 5619, ADOPTED
e) RESOLUTION NO. 4181 – A Resolution Authorizing Participation By the City in House Bill
161, to Allow Re-Employment of Employees Who Are Currently Receiving PERS Retirement
Benefits. Introduced by Mayor Thompson. (POSTPONED FROM REGULAR MEETING OF
SEPTEMBER 12, 2005. Motion to APPROVE is on the Floor.)
Mr. Johnson questioned City Attorney Kuss regarding whether or not Council must implement the
Resolution at this time. Mr. Kuss stated that inaction would allow continuance through December 2006.
He spoke to the conditions of participation. Mr. Cleworth questioned whether the City could get out of
the program through Resolution No. 4181. Mr. Kuss clarified.
END SIDE ONE TAPE THREE
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Mr. Cleworth questioned the hiring of contractual employees under the program. Mr. Kuss clarified.
Mr. Cleworth questioned whether a satisfactory contract could be drawn up for such employees.
Mr. Kuss stated that PERS may not concede the positions away to non-participation. Mr. Cleworth
stated that he would vote against the resolution. Mr. Johnson clarified that the budget would need to be
amended if the resolution were voted down. Mr. Kuss further clarified the result of no action on the
resolution. Mr. Cleworth questioned if the employees would be protected if nothing is done. Mr. Kuss
confirmed. Mr. Johnson once again spoke to the results of no action on the resolution. Mayor
Thompson spoke to the merits of approving the Resolution.
Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIED
And RESOLUTION NO 4181, APPROVED.
NEW BUSINESS
a) ORDINANCE NO. 5620 – An Ordinance to Enact FGC Sections 14.501 Through Conveyance of
City Parks Property to Fairbanks North Star Borough, AS Approved Under Ordinance No. 4589;
And Setting an Effective Date. Introduced by Council Member Johnson.
ADVANCED ON CONSENT AGENDA
b) ORDINANCE NO. 5621 – An Ordinance to Amend the 2005 Capital Budget for the Third Time;
and Setting an Effective Date. Introduced by Mayor Thompson, Council Members Cleworth and
Johnson. .
ADVANCED ON CONSENT AGENDA
c) ORDINANCE NO. 5622 – An Ordinance Authorizing Conveyance of Property Requested by the
Alaska Department of Transportation For Construction of the Second Avenue and Wilbur Street
Widening Project; and Setting an Effective Date. Introduced by Mayor Thompson.
MOTION By Mr. Johnson TO ADVANCE ORDINANCE NO. 5622, SECOND By Mr. Seeliger.
Mr. Johnson spoke to the need for more information and documentation in regard to such ordinances in
the future. Mr. Cleworth agreed with Mr. Johnson as did Mr. Seeliger.
Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIED
And ORDINANCE NO. 5622, ADVANCED.
d) RESOLUTION NO. 4186 – A Resolution Authorizing the City of Fairbanks to Request Funds
From the Department of Homeland Security US Fire Administration Assistance to Fire Fighters
Grant Program for the 2005 Fire Prevention and Safety Grant in an Amount of $40,750.00.
Introduced by Mayor Thompson.
APPROVED ON CONSENT AGENDA
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DISCUSSION ITEMS (INFORMATION AND REPORT)
a) Police Department Director’s Report
Mr. Hoffman presented his report and spoke to specific items including recruiting, the results of which
were obvious during the administration of the oath of office to new officers earlier in the meeting. He
spoke to preparations for the AFN Convention in October and spoke to progress made on major crimes.
He spoke to the return to the Police Department of Officer O’Malley and spoke to O’Malley’s work with
Big Brother, Big Sisters in establishing a Bigs in Blue Program.
COUNCIL MEMBERS COMMENTS
Mr. Thies thanked everyone for their participation in the meeting regarding the sales tax.
Mr. Eberhart spoke to the divisiveness of both sales tax and labor contract issues and to the efforts of
Council to do their best for the community.
Mr. Cleworth thanked everyone.
Mr. Kawasaki spoke to FGC Sec. 1-19, and questioned whether it might be unconstitutional and require
removal from the code. He thanked everyone for their involvement and input regarding Ordinance No.
5617.
Mr. Johnson spoke to a requested response from the State of Alaska Division of Retirement regarding
the City’s PERS liability. He stated that he was drafting a new letter to request a statement of liability in
the event the City makes the minimum payment as requested by the prior PERS Board, rather than the
rate recommended by the Division of Retirement.
Mr. Seeliger passed on comment.
EXECUTIVE SESSION – Postponed by Unanimous Agreement of Council.
ADJOURNMENT
MOTION By Mr. Seeliger TO ADJOURN, SECOND By Mr. Kawasaki.
Hearing NO OBJECTION, Mayor Thompson declared the MOTION
CARRIED, and the Meeting ADJOURNED at 11:35 PM.
CAROL L. COLP CMC, CITY CLERK
STEVE M. THOMPSON, MAYOR
Transcribed by: Carol L. Colp CMC, City Clerk
City of Fairbanks September 26 2005
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