FAIRBANKS CITY COUNCIL - City of Fairbanks

FAIRBANKS CITY COUNCILREGULAR MEETINGDecember 2, 2002Fairbanks City Council Chambers800 Cushman Street, Fairbanks, Alaska********************************************************************************************************************************************************************The City Council reconvened at 7:00 P.M after a Work Session on the above date to conduct a RegularMeeting of the Fairbanks City Council, at the City Council Chambers, 800 Cushman Street, Fairbanks,Alaska, with Mayor Steve M. Thompson presiding and with the following Council Members inattendance:Present: Jeff Johnson Jerry CleworthBob BokoHoward ThiesDonna GilbertScott KawasakiAlso Present: Herb Kuss, City AttorneyCarol Colp, City ClerkJames Welch, Police ChiefAntonio Shumate, Personnel OfficerRon Woolf, Chief Finance DirectorPat Smith, Property ManagerINVOCATIONCity Clerk Carol Colp gave the Invocation.FLAG SALUTATIONMayor Thompson led the Flag Salutation.APPROVAL OF AGENDA AND CONSENT AGENDAMOTION to APPROVE the Agenda and Consent Agenda as Presented by Ms. Gilbert, SECOND byMr. Thies.Hearing NO OBJECTION Mayor Thompson declared the MOTIONCARRIED and the AGENDA and CONSENT AGENDA APPROVEDas Presented.CITIZENS COMMENTSFrank Turney, 1083 Media Lane, Fairbanks, AK. Mr. Turney spoke to the Bill of Rights encouraging theCity Council to pass a resolution in opposition to the US Patriot Act and the Homeland Security Bill indefense of the Bill of Rights. He encouraged a public reading of the Bill of Rights prior to December15 th , which is Bill of Rights Day. Ms. Gilbert thanked Mr. Turney.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 1 of 8

Kathy Shultz, 336 Grant Street, Fairbanks, AK. Ms. Shultz spoke in regard to the tourism industry andasked those in attendance representing that industry to stand.Dirk Nelson, 2545 Livingston Lp., Fairbanks, AK. Mr. Nelson concurred with Mr. Turney’s statementsin regard to the Bill of Rights and addressed the contents of the recently passed Homeland Security Bill.He urged Council to pass a resolution in opposition to the Homeland Security Bill and the US Patriot Act.Kathy Mayo, 1618 Cassie Court, Fairbanks, AK. Project Manager for the Morris Thompson Cultural andVisitor Center, Ms. Mayo expressed her gratitude for the City of Fairbanks’ partnership with the projectand presented a brief overview of the project status. Mr. Cleworth questioned Ms. Mayo regarding thechosen cite for construction of the Center.Dan Hoffman, 911 Cushman St., Fairbanks, AK. Representing the Fairbanks Police DepartmentEmployees Association, Officer Hoffman updated Council on the status of the union contract negotiationswith the City of Fairbanks. Ms. Gilbert questioned Mr. Hoffman regarding the Council’s list ofconcerns.Kevin Ward, 950 Cowles St., Fairbanks, AK. Mr. Ward presented information regarding MinorityEducation and Entrepreneurship Training, Inc. and requested support from the City in identifyingproperties or buildings, available at reduced cost, which could be rehabilitated by MEET, Inc.SPECIAL ORDERSa) Application was made for the RENEWAL of Restaurant/Eating Place Liquor License.License: PIZZA BELLA RESTAURANT – License # 3569Location: 1694 Airport WayOwner: Bill’s Enterprises Inc.Agent: Lew BeyerThere were NO Departmental Protests.MOTION TO WAIVE PROTEST by Mr. Boko SECOND by Mr. Thies.The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concernedwith the above referenced Liquor License: Public Testimony was taken and limited to five (5) minutes.There being no public testimony, SPECIAL ORDERS resumed by the City Council as a Whole.Hearing NO OBJECTION Mayor Thompson declared the MOTIONTO WAIVE PROTEST CARRIED and the Renewal Approved.MAYOR’S COMMENTS AND REPORTMayor Thompson spoke to an upcoming meeting with the Interior Delegation, to be held at theFairbanks North Star Borough on December 16 th from 10 a.m. to 12 noon, and urged Council members toCity of Fairbanks December 2, 2002Regular Meeting Minutes Page 2 of 8

attend. He commented on the well attended memorial service held recently for J.P. Jones, and madereference to a letter from the State of Alaska Department of Administration regarding the City PERS rate.In regard to FMATS, Mayor Thompson informed Council that the MPO Policy Committee will consist ofthe Regional Director for the State Department of Transportation, Mayor of the FNSB, Mayor of the Cityof Fairbanks, Mayor of the City of North Pole, a representative from the Borough Assembly, arepresentative from the Fairbanks City Council and a representative from the State of Alaska Departmentof Environmental Conservation and asked for a member of council to represent the City. He read a letterhe recently sent to Mr. Swarthout, DOT, in regard to STIP Amendment 17.UNFINISHED BUSINESSa) ORDINANCE NO. 5508 – An Ordinance Authorizing Conveyance of City Property to the GreaterFairbanks Memorial Hospital Foundation, and Setting an Effective Date. Introduced by MayorThompson. SECOND READING AND PUBLIC HEARING. MOTION to APPROVE byMs. Gilbert, SECOND by Mr. Boko.Mayor Thompson requested a staff report which was presented by City of Fairbanks Property ManagerPatrick Smith. Mr. Cleworth asked Mr. Smith’s recommendation regarding action to be taken byCouncil. Mr. Smith declined to recommend a position. Mr. Thies and Ms. Gilbert commented.The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concernedwith the above-referenced Ordinance. Public Testimony was taken and limited to five (5) minutes.Karen Holt, 1617 Madison Drive, Fairbanks, AK. As Business Manager for the Fairbanks MemorialHospital Foundation, Ms. Holt addressed the health care needs of the community and the benefitsprovided by the hospital in meeting these needs, and recommended approval of Ordinance No. 5508.Ms. Gilbert questioned whether any Foundation monies leave the community to which Ms. Holtcommented that the health care provider, Banner Health is paid a fee to run the health care facility whichin turn pays rent to the Foundation.There being no further public testimony, UNFINISHED BUSINESS was resumed by the City Council asa Whole.END OF SIDE ONE TAPE ONEMr. Johnson, Mr. Cleworth, Ms. Gilbert and Mr. Boko each commented in support of approval ofOrdinance No. 5508A ROLL CALL VOTE was taken on the MOTION to APPROVE Ordinance No. 5508.YEAS: Thies, Johnson, Kawasaki, Gilbert, Boko, CleworthNAYS: NoneMayor Thompson declared the MOTION CARRIED andORDINANCE NO. 5508 ADOPTED.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 3 of 8

) ORDINANCE NO. 5509 – An Ordinance Authorizing Conveyance of the Fairbanks RegionalPublic Health Center to the State of Alaska Department of Natural Resources; and Setting anEffective Date. Introduced by Mayor Thompson. SECOND READING AND PUBLICHEARING. MOTION to APPROVE by Mr. Boko, SECOND by Ms. Gilbert.Mayor Thompson requested a staff report which was presented by City of Fairbanks Property ManagerPatrick Smith. Mayor Thompson asked Mr. Smith to address restrictions on conveyance which he did.Ms. Gilbert questioned the life expectancy of the building and the city’s financial investment in thestructure.The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concernedwith the above-referenced Ordinance. Public Testimony was taken and limited to five (5) minutes.There being no public testimony, UNFINISHED BUSINESS was resumed by the City Council as aWhole.A ROLL CALL VOTE was taken on the MOTION to APPROVE Ordinance No. 5509.YEAS: Gilbert, Cleworth, Boko, Kawasaki, Johnson, ThiesNAYS: NoneMayor Thompson declared the MOTION CARRIED andORDINANCE NO. 5509 ADOPTED.RECESS: Ms. Gilbert requested a five minute recess which was granted.c) ORDINANCE NO. 5510 – An Ordinance To Amend the 2002 Budget for the Fourth Time; andSetting an Effective Date. Introduced by Mayor Thompson. SECOND READING AND PUBLICHEARING. MOTION to APPROVE by Mr. Boko, SECOND by Mr. Thies.Mayor Thompson requested a staff report which was presented by Mr. Woolf, Chief Finance Officer.Ms. Gilbert questioned the accuracy of the “balanced” budget in regard to leave accrual and inquiredabout the City’s PERS obligation.The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concernedwith the above-referenced Ordinance. Public Testimony was taken and limited to five (5) minutes.There being no public testimony, UNFINISHED BUSINESS was resumed by the City Council as aWhole.Mr. Cleworth spoke in support of Ordinance No. 5510.A ROLL CALL VOTE was taken on the MOTION to APPROVE Ordinance No. 5510.YEAS: Cleworth, Boko, Gilbert, Johnson, Thies, KawasakiNAYS: NoneMayor Thompson declared the MOTION CARRIED andORDINANCE NO. 5510 ADOPTED.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 4 of 8

d) ORDINANCE NO. 5511 – An Ordinance Adopting the 2003 Budget and Appropriating MoneyOut of the Treasury for the City Departments for the Fiscal Year Beginning January 1, 2003, andEnding December 31, 2003; and Setting an Effective Date. Introduced by Mayor Thompson.SECOND READING AND PUBLIC HEARING. MOTION to APPROVE by Ms. Gilbert,SECOND by Mr. Thies.Mr. Cleworth informed Council that the Finance Committee will meet both Tuesday and Wednesday andwill be making recommendations to Council by Wednesday. Mayor Thompson informed Council of theWork Sessions scheduled for 5 p.m. and 6 p.m. on Monday, December 9, 2002.The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concernedwith the above-referenced Ordinance. Public Testimony was taken and limited to five (5) minutes.Carter Crawford, 107 Maple Drive, Fairbanks, AK. Ms. Crawford recommended that Council not cutfunding to the FCVB for 2003. Ms. Gilbert questioned whether a sufficient effort had been made tolobby the FNSB regarding their support of FCVB.Kathy Schultz, 336 Grant St., Fairbanks, AK. As General Manager of Sophie Station, Ms. Schultzencouraged Council not to reduce funding for the FCVB for 2003.. Ms. Gilbert questioned why FCVB’sbudget reflected an increase in salaries but not marketing expenses.Brett Carlson, 710 24 th Ave., Fairbanks, AK. Mr. Carlson urged Council to support a minimum 65%reinvestment of visitor industry bed tax dollars back into FCVB’s marketing. Ms. Gilbert questionedMr. . Carlson regarding his statistics.END OF SIDE TWO TAPE ONEFrank Rose, 986 Lower Fort, Fairbanks, AK. Mr. Rose explained the marketing practices of FCVB, bothhistoric and current. and encouraged Council to support FCVB’s efforts in destination marketing ofFairbanks at a minimum of 65% funding.Kevin Krauklis, 3253 Riverview Drive, Fairbanks, AK. Mr. Krauklis spoke in regard to the fundingsources for FEDCO and requested Council maintain funding for 2003 at the same level as 2002.Ms. Gilbert questioned an increase in FEDCO’s 2003 budget and Mr. Krauklis explained that theincrease was for projects and staff needed to perform the projects..Judy Warwick, 3190 Riverview Dr., Fairbanks, AK. Ms. Warwick spoke in regard to FEDCO’simproved efforts in economic development and encouraged Council to continue support of FEDCO at the2002 level. Ms. Gilbert questioned whether cold weather testing was currently effective in Fairbanks dueto the warmer trend in weather. Ms. Warwick explained that testing occurs through the unique facilitiesat the University of Alaska, Fairbanks. Mr. Johnson asked for an updated version of the FEDCO budgetfor 2003 which would reflect the FNSB appropriation and Ms. Warwick advised that Council would beprovided the revised budget as soon as possible.Kara Moriarity, 227 Woodridge #28, Fairbanks, AK. Ms. Moriarity, representing the Chamber ofCommerce, spoke to the efforts of FEDCO, and encouraged Council not to cut support for either FEDCOor FCVB.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 5 of 8

Dave Woodall, 950 Northern Lights Drive, UAF, Fairbanks, AK. As a FEDCO board member,Mr. Woodall encouraged Council to maintain the current level of funding for FEDCO in 2003.Eldona Jonaitis, 1324 Summit Dr., Fairbanks, AK. Ms. Jonaitis spoke on behalf of the FCVB as arepresentative of the U of A Museum, and encouraged Council to continue support of FCVB at the 2002level.Jim Drew, 4725 Villanova Dr., Fairbanks, AK. As a member of the Board of Directors of FEDCO,Mr. Drew urged continuing support for FEDCO by the City of Fairbanks.Tim Sharp, 1284 Lois Lane, Fairbanks, AK. As a member of the Board of Directors of FEDCO,Mr. Sharp urged Council to continue support of FEDCO at the 2002 level.Matt Atkinson, 1115 3 rd Ave., Fairbanks, AK. President of Alaska Travel Industry Association,Fairbanks Chapter, Mr. Atkinson encouraged Council to support FCVB’s efforts at destination marketingat the 2002 65% level of funding. Mr. Cleworth questioned Mr. Atkinson’s figures and asked if heauthored the “call to action”. Ms. Gilbert questioned Mr. Atkinson’s figures regarding Nome and DutchHarbor.END OF SIDE ONE TAPE TWOCharlie Rex, 970 Woodway, Fairbanks, AK. Mr. Rex spoke of past changes in the bed tax ordinances andin favor of Council continuing to support FCVB at the 65% level of funding. He stated that any moniesprovided by the FNSB be considered additional funding for FCVB. Mr. Rex believed it immoral of anysitting Council to overturn the efforts of a previous Council. Ms. Gilbert questioned Mr. Rex’sstatements regarding changes that Councils make to the efforts of previous Council’s. Mr. Johnsonquestioned whether an increase in property tax would be appropriate to offset losses in bed tax revenues.Mr. Rex encouraged destination marketing in order to prevent property tax increases.Doris Lavine, Fairbanks Hotel, Fairbanks, AK. Ms. Lavine, stating that yearly meetings in regard tochanging fund levels are divisive, encouraged Council to continue to maintain stability in the visitorindustry by providing funding for FCVB at the 65% level as set by Ordinance.Buzz Otis, P.O.Box 72411, Fairbanks, AK. As Marketing Agent for Great Northwest, Mr. Otis spoke tothe marketing efforts of FCVB and encouraged continued support for FEDCO at the 2002 level offunding. Ms. Gilbert and Mr. Cleworth questioned Mr. Otis regarding staffing and reorganization plans.Bill Stewart, 95 10 TH Ave., Fairbanks, AK. As general manager for the Regency Hotel, Mr. Stewartspoke in support of continued funding for FCVB at the 2002 level in order to support the visitor industry.Ms. Gilbert questioned why marketing was down in 2002. Mr. Stewart could not answer for FCVB.Andy Engle, 1075 Wedgewood Rd., Fairbanks, AK. Mr. Engle spoke to the importance and methods ofmarketing in the visitor industry, praised the efforts and work of the Fairbanks visitor industry, andencouraged Council to continue to support the industry.Marnie Hazelaar, 345 Minnie St., Fairbanks, AK. Ms. Hazelaar, citing that the visitor industry is the onlyone that contributes to public services, spoke in support of funding FCVB at the current level of 65%.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 6 of 8

Mike Matsuno, 360 State St., Fairbanks, AK. Mr. Matsuno, operator of a bed and breakfast, urgedCouncil to continue to fund the budgets of FCVB at the current level.Ann Richards, Totem Drive, Fairbanks, AK. Ms. Richards spoke in support of Ordinance No. 5511 citingthat FCVB and FEDCO should not look entirely to the City of Fairbanks but should expect the FNSB toshare the burden of financing the visitor industry. Addressing Mr. Rex’s comments she argued thataccording to Title 29 it is illegal for one Council to bind the hands of another Council.There being no further public testimony, UNFINISHED BUSINESS was resumed by the City Council asa Whole.MOTION to POSTPONE UNTIL REGULAR MEETING OF DECEMBER 9, 2002 by Ms. Gilbert,SECOND by Mr. Thies.Hearing NO OBJECTION Mayor Thompson declared the MOTION CARRIEDand ORDINANCE 5511 POSTPONED UNTIL THE REGULAR MEETING OFDECEMBER 9, 2002.NEW BUSINESSa) RESOLUTION NO. 4031 – A Resolution to Set Up an Internal Service Fund to Accrue LeaveLiabilities Incurred by the City of Fairbanks and to Expense this Liability in the General Fund as itis Incurred by Transferring it to the Accrued Leave Fund. Introduced by Mayor Thompson.APPROVED ON CONSENT AGENDA AS PRESENTED.b) RESOLUTION NO. 4032 – A Resolution in Honor of Ken Rankin. Introduced by MayorThompson and All Council Members.APPROVED ON CONSENT AGENDA AS PRESENTED.c) RESOLUTION NO. 4033 – A Resolution Congratulating the University of Alaska FairbanksMen’s Basketball Team for their Outstanding Victory as the 2002 BP Top of the World ClassicChampions. Introduced by Mayor Thompson and All Council Members.APPROVED ON CONSENT AGENDA AS PRESENTED.DISCUSSION ITEMS (INFORMATION AND REPORT)a) Chief Finance Officers Report: Mr. Woolf passed on presentation.COUNCIL MEMBERS COMMENTSMr. Boko passed on comment.Mr. Thies thanked Council for the Resolution regarding the Top of the World Classic.City of Fairbanks December 2, 2002Regular Meeting Minutes Page 7 of 8

Mr. Cleworth commented on the recent successes of the UAF women’s volleyball team. He addressed arecent news article in which a Fairbanks City police officer stated that the Council did not care aboutdrunk driving in Fairbanks, and suggested it was in unfortunate as well as untrue.END SIDE TWO TAPE TWOMr. Cleworth presented a synopsis of the history of the Hotel / Motel Tax and presented a handoutshowing that many changes have been made over the twenty-three years since the tax’s implementation.Ms. Gilbert concurred with Mr. Cleworth regarding the news article and quote by the City police officer.She requested that Officer Hoffman’s comments, made during Citizen Comments, be clarified by MayorThompson. In addition, Ms. Gilbert requested that one of the Finance Committee members be availablefor a radio show during the next week and Mr. Cleworth volunteered. In regard to the FCVB, shesuggested that increased effort needs to be made by the visitor industry to obtain funding from the FNSBand stated she would clarify what efforts were made in 2001.Mr. Johnson spoke to the history of the bed tax and acknowledged that tourism is a city industry.Mr. Kawasaki stated that he was out of town for three weeks, was glad to be back, and inquired whetherthere was any new information regarding union contracts. Mayor Thompson informed Council that therewas no new information in that regard.ADJOURNMENTMOTION TO ADJOURN by Ms Gilbert, SECOND by Mr.Boko.Hearing NO OBJECTION, Mayor Thompson declared the MOTIONCARRIED, and the Meeting ADJOURNED at 10:55 P.M.Carol L. ColpCity ClerkSteve M. ThompsonMayorTranscribed by:Carol L. ColpCity ClerkCity of Fairbanks December 2, 2002Regular Meeting Minutes Page 8 of 8