FAIRBANKS CITY COUNCIL REGULAR MEETING MINUTES January 9, 2006 FAIRBANKS CITY COUNCIL CHAMBERS 800 CUSHMAN STREET, FAIRBANKS, ALASKA

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1 FAIRBANKS CITY COUNCIL REGULAR MEETING MINUTES January 9, 2006 FAIRBANKS CITY COUNCIL CHAMBERS 800 CUSHMAN STREET, FAIRBANKS, ALASKA The City Council reconvened at 7:00 P.M on the above date, following a Work Session presentation on the 3 rd and 4 th Street Project and Cowles Street Project, 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: Also Present: Jerry Cleworth, Tonya Brown, Lloyd Hilling, Howard Thies, Don Seeliger, John Eberhart Herb Kuss-City Attorney, Carol Colp-City Clerk Tony Shumate-Personnel, Dan Hoffman-Police Chief Warren Cummings-Fire Chief INVOCATION City Clerk Carol Colp gave the invocation. FLAG SALUTATION Mayor Thompson led the flag salutation. RECOGNITION AND ACKNOWLEDGEMENT Mayor Thompson recognized and thanked the Engineering Department for their efforts on the 3 rd and 4 th Avenue reconstruction project. He presented an award to Controller Jim Soileau of the Finance Department from the Government Finance Officers Association of the United States and Canada for Achievement and Excellence in Financial Reporting and thanked Mr. Soileau for his excellent work. He presented the Distinguished Service Medal to Fairbanks Police Departments Peggy Sullivan on her retirement and acknowledged and thanked her for her twenty-one years with the City. He presented the Meritorious Service Medal to FPD Detective L. Payton Meredith for his work in solving a cold case robbery/homicide and lastly Mayor Thompson acknowledged and thanked Deputy City Attorney Marilyn Stowell upon her retirement from the City for her twenty-one years of service. CITIZENS COMMENTS Nelson Miles, rd Ave., Fairbanks, AK. Mr. Miles informed Council that the sales tax issue would be on the ballot for the next municipal election. Marty Martin, th Ave., Fairbanks, AK. As a card room participant, Mr. Martin spoke in support of the Pastime Card Room. Mayor Thompson inquired whether Mr. Martin understood the intent of Ordinance No Mr. Martin stated that he supported the Pastime Card Room. Regular Meeting Minutes Page 1 of 9

2 Shirley Demientieff, 2727 Barnette St., Fairbanks, AK. Ms. Demientieff spoke in support of Ordinance No and of Eugene Fields and requested that Council make exception for Mr. Fields to operate the Pastime Card Room. Ray Rule, Sr., 532 Longspur Lp., Fairbanks, AK. Mr. rule spoke in support of Ordinance No but asked Council to make an exception for Mr. Fields to operate the Pastime Card Room. Karen Lavery, 551 & rd Ave., Fairbanks, AK. Ms. Lavery spoke in opposition to Mr. Fields being permitted to operate a gaming establishment and read a letter signed by downtown business and property owners requesting enforcement of Ordinance No She recommended that Council follow the recommendations of Police Chief Hoffman to regulate card rooms and support economic development and revitalization of the downtown area. Mr. Hilling inquired of Ms. Lavery s opinion regarding illegal activity connected with the Pastime Card Room. Ms. Lavery stated that the Security Ambassadors would have that information. Mayor Thompson asked for copies of the letter, read by Ms. Lavery, to be provided to council. Vonna Husby, 1342 Viewpoint, Fairbanks, AK. As owner of Vonna Husby and Associates, Ms. Husby spoke in support of enforcement of Ordinance No and described questionable activity which she personally witnessed taking place in the vicinity of the Pastime Card Room. Mayor Thompson inquired as to the time period Ms. Husby was referring to. She stated that she had observed questionable activities from the fall of 2003 to the present. Guy Douglas, 631 Beacon Rd., Fairbanks, AK. Mr. Douglas spoke in support of Ordinance No and to the negative economic impact to the downtown area as a result of the possible illegal activities connected with the two downtown card rooms. Mr. Hilling questioned to what extent Mr. Douglas had personally witnessed questionable activities which he addressed. Mr. Douglas stated that he had personally witnessed many activities and provided examples. Vivian Steiver, Fairbanks, AK. As owner of the Two Street Coffee Shop and the Caribou Building, Ms. Stiever spoke to questionable activity taking place in the vicinity of the Pastime Card Room, including violations of the City of Fairbanks smoking ordinance. She spoke in support of Ordinance No and its enforcement. Joan Bussam, th Ave., Fairbanks, AK. As owner of The Pomegranate Restaurant, Ms. Bussum spoke in support of Ordinance No and its enforcement. Michelle Roberts, 427 Ramola, Fairbanks, AK. Ms. Roberts spoke in support of Ordinance No and asked that Council hold gaming establishment owners to the same standards set by the State of Alaska. Frank Turney, 1083 Media Ln., Fairbanks, AK. Mr. Turney spoke in support of Eugene Fields and the two downtown card rooms. He spoke to the recent fire resulting in the deaths of two individuals and questioned why Fairbanks is not manned by volunteer fire fighters. He questioned a recent legal action against former Police Chief Harris and why the City is still using outside attorneys. END SIDE ONE TAPE ONE Tim Staten, nd Ave., Fairbanks, AK. Mr. Staten spoke in support of Ordinance No and it s enforcement. He addressed the recent fire resulting in the deaths of two individual and chastised Fire Regular Meeting Minutes Page 2 of 9

3 Chief Cummings and Deputy Fire Marshall Misewicz for politicizing the event. He questioned why the fire department was not able to respond more quickly to the fire and suggested that ambulances should be contracted out to independent ambulance services. Ryan Davis, 4440 Stanford Drive, Fairbanks, AK. As a City of Fairbanks fire fighter, Mr. Davis spoke to Mr. Staten s remarks and clarified why fire trucks are sent on ambulance calls. He offered to answer any questions of the Council. Harry Fields, Fairbanks, AK. As the brother of Eugene Fields, Mr. Fields spoke in support of his brother and against discrimination by the City of Fairbanks. He stated that gambling goes on everywhere and does not hurt anyone. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION By Mr. Seeliger TO APPROVE THE AGENDA AND CONSENT AGENDA AS PRESENTED, SECOND By Mr. Thies. And AGENDA AND CONSENT AGENDA APPROVED AS PRESENTED. APPROVAL OF PREVIOUS MINUTES a) Fairbanks City Council Regular Meeting Minutes of December 12, SPECIAL ORDERS APPPROVED ON CONSENT AGENDA a) The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concerned with the below referenced Liquor License Applications for Renewal: Public Testimony was limited to five (5) minutes. License Type: Beverage Dispensary D.B.A.*: Boston s - License # 4395 D.B.A.*: Husky Lounge - #542 D.B.A.*: Mecca Bar - #710 License Type: Restaurant/Eating Place D.B.A.*: Pizza Hut #5 - Airport Way D.B.A.*: Pizza Hut #4 Airport Way There being no public testimony, SPECIAL ORDERS resumed by the City Council as a Whole. MOTION By Mr. Cleworth To WAIVE PROTEST on All Applications for Renewal of Liquor License Referenced Above EXCEPT Boston s, SECOND By Mr. Thies. And PROTEST WAIVED on All Applications for Renewal of Liquor License Referenced Above EXCEPT Boston s. Regular Meeting Minutes Page 3 of 9

4 MOTION By Mr. Seeliger To PROTEST Application for Renewal of Liquor License for Boston s pending completion of satisfactory inspection by the City of Fairbanks Building Department, SECOND By Mr. Thies. There being no public testimony, SPECIAL ORDERS resumed by the City Council as a Whole. And PROTEST APPROVED on Application for Renewal of Liquor License for Boston s pending completion of satisfactory inspection by the City of Fairbanks Building Department. b) The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concerned with the below referenced Liquor License Application for TRANSFER of LOCATION. Public Testimony was limited to five (5) minutes. License Type: Beverage Dispensary DBA: Chili s Grill & Lounge, License #4547 Current Location: No Premises New Location: 506 Merhar Avenue, Fairbanks, Alaska. There being no public testimony, SPECIAL ORDERS resumed by the City Council as a Whole. MOTION By Mr. Hilling TO WAIVE PROTEST on Application for Transfer of Location of Liquor License for Chili s Grill & Lounge, SECOND By Mr. Thies. And PROTEST WAIVED on Application for Transfer of Location of Liquor License for Chili s Grill & Lounge. c) The Fairbanks City Council, Sitting as a Committee of the Whole, heard interested citizens concerned with the below referenced Application for Commercial Refuse Collector Permit (Renewal): Public Testimony was taken and limited to five (5) minutes. Applicant: Address: WASTE MANAGEMENT OF ALASKA, INC 2090 Van Horn Road, Fairbanks, AK There being no public testimony, SPECIAL ORDERS resumed by the City Council as a Whole. MOTION By Mr. Seeliger TO APPROVE Application for Renewal of Commercial Refuse Collection Permit for Waste Management of Alaska, Inc., SECOND By Mr. Thies. And Application for Renewal of Commercial Refuse Collection Permit for Waste Management of Alaska, Inc. APPROVED. Regular Meeting Minutes Page 4 of 9

5 MAYOR S COMMENTS & REPORT Mayor Thompson recognized Ms. Ruby Riddle and thanked her for attending the meeting. He spoke to the recent PERS report from the State of Alaska and to the City s current status and to the insurmountable debt incurred by the City. He requested that Council approve amending the 2006 Council Meeting Schedule to change the meeting of January 23 to January 30, He reminded Council that regular meetings of the Finance Committee are on the Wednesday preceding Council meetings. He announced the new members of FEDC. He spoke to advancement on the Consent Agenda of Ordinance No and strongly recommended approval of the ordinance. He asked for a Council member to replace him at the next regular FNSB Assembly meeting to be held Thursday January 12. He read a proclamation declaring Saturday, January 21, 2006 as Hockey Day in Fairbanks and thanked Randy Zarnke for his efforts in organizing a recognition day for hockey in Fairbanks. In closing, he publicly apologized to Council Member Eberhart for making derogatory remarks about him. UNFINISHED BUSINESS a) ORDINANCE NO An Ordinance To Amend the 2005 Capital Budget for the Fourth Time; and Setting an Effective Date. Introduced by Mayor Thompson, Council Members Seeliger & Cleworth. There being no public testimony, UNFINISHED BUSINESS resumed by the City Council as a Whole. MOTION By Mr. Cleworth TO ADOPT Ordinance No. 5631, SECOND By Mr. Thies. Mayor Thompson clarified budget changes and the intent of the ordinance. A ROLL CALL VOTE was taken on the MOTION to ADOPT ORDINANCE NO YEAS: Thies, Hilling, Brown, Eberhart, Cleworth, Seeliger NAYS: Mayor Thompson declared the MOTION CARRIED AND ORDINANCE NO. 5631, ADOPTED. NEW BUSINESS a) ORDINANCE NO An Ordinance Approving a Settlement Agreement Between the City of Fairbanks and the AFL-CIO Joint Crafts Bargaining Unit; and Setting an Effective Date. Introduced by Mayor Thompson.. ADVANCED ON CONSENT AGENDA b) ORDINANCE NO An Ordinance Adopting the 2006 Capital Appropriations Fund Budget; and Setting an Effective Date. Introduced by Mayor Thompson. ADVANCED ON CONSENT AGENDA Regular Meeting Minutes Page 5 of 9

6 c) RESOLUTION NO A Resolution Allocating Discretionary Funds From Hotel/Motel Tax in the Amount of Two Hundred Seventy Thousand Dollars ($270,000). Introduced by Council Member Brown. APPROVED ON CONSENT AGENDA d) RESOLUTION NO A Resolution Approving Acceptance of Additional Funding from the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. Introduced by Mayor Thompson. APPROVED ON CONSENT AGENDA BREAK Mayor Thompson called for a five minute break. DISCUSSION ITEMS (INFORMATION AND REPORT) a) Ordinance No. 5619, Gaming Establishments. Mayor Thompson asked for direction from Council regarding the direction they wish to take. Mr. Thies questioned the purpose of the discussion. Mayor Thompson stated that Mr. Fields requested to address Council regarding his situation. Mr. Seeliger questioned options available to Council. Mayor Thompson clarified that any changes to Ordinance No would need to be made in ordinance form. Mr. Hilling suggested that Council hear from Mr. Fields as well as Police Chief Hoffman. Eugene Fields, Ambassador Apartments, Fairbanks, AK. Mr. Fields spoke to his situation and to accusations made regarding illegal and questionable activities taking place outside the Pastime Card Room. He stated that no illegal activity takes place in the Pastime Card Room. END SIDE TWO TAPE ONE Mr. Cleworth questioned whether Mr. Fields recently purchased the Star Recreation card room. Mr. Fields stated that he had. Mr. Cleworth questioned Mr. Fields regarding a recent theft and regarding his statements concerning grandfathering by the State of Alaska of the Pastime Card Room. Mr. Fields stated that paychecks had been lost and found, and that because the card room, as well as the game of Pan, have been around for a long time, he felt they should be grandfathered as a legitimate place of business. Mr. Cleworth questioned whether Mr. Fields business was approved by State of Alaska gaming laws. Mr. Fields stated that he had been running the business for seventeen years and had never been required to obtain more than a State of Alaska business license. Mr. Cleworth clarified that Mr. Fields business is not regulated by the State of Alaska gaming authority. Mr. Hilling asked for further clarification regarding to Mr. Fields comments on grandfathering. Mr. Eberhart questioned whether Mr. Fields charged an entry fee. Mr. Fields concurred that his entry fee was $10 or $20 and that participants needed to pay the entrance fee to play cards but those who are just visiting, such as children, were not required to pay an entrance fee. Mr. Eberhart asked Mr. Fields to clarify who would pay $10 and who would pay $20. Mr. Fields explained. Mr. Eberhart asked if Mr. Fields sold snack foods to which Mr. Fields stated that he did. Mr. Eberhart inquired whether Mr. Fields took a percentage of each game and Mr. Fields stated that each player put in two chips per game to the house. Mr. Eberhart inquired whether Mr. Fields was aware of any time when police were refused entrance to the card room. Mr. Fields stated he was not aware of any incidents refusing admittance to the police. Mayor Thompson clarified that Regular Meeting Minutes Page 6 of 9

7 Mr. Fields held only a business license, and did not hold a State of Alaska gaming permit. Ms. Brown inquired regarding grandfathering of Mr. Fields. Mr. Fields stated that he hoped to have an executive meeting with the Council with his attorney present. Mayor Thompson clarified that the present meeting was called for that purpose. Police Chief Hoffman was called on to speak to the issue and provided a photo of both the Star and the Pastime Card Rooms. He stated that Mr. Fields, though not regulated by State of Alaska gaming commission, is conducting illegal gambling in his establishment according to state law. He clarified that neither Mr. Fields nor the card room are grandfathered under any regulations. He spoke to the requirements of Ordinance No and his opinion that Mr. Fields would be unable to comply with requirements. He reminded Council that State statute prohibits convicted felons from being involved in any gaming operations, including Bingo, and spoke to past action by Council in regard to Chauffeur License appeals. Mr. Eberhart inquired whether the police had been denied entrance to game rooms. Mr. Hoffman concurred that police had been denied entrance to Star Recreation and had discovered illegal gambling taking place at the Pastime during a routine check. Mr. Cleworth asked how to operate a card room legally. Mr. Hoffman stated that a card room may charge an entrance fee but cannot allow gambling for money. Mr. Hilling inquired regarding specific violations linked to the card rooms. Mr. Hoffman clarified that police reports are consistent with tonight s testimony regarding incidents taking place outside of the business. Mayor Thompson called on City Attorney Herb Kuss for comment. Mr. Kuss stated that according to Mr. Fields description of the activities taking place at the Pastime Card Room, illegal gambling was taking place there. He provided a synopsis of the issue stating that Ordinance No will go into effect on January 11, 2006 if Council does not prohibit it through their actions. He explained State of Alaska code regarding gambling clarifying that the State does not allow illegal gambling nor involvement of convicted felons in the operation of State sanctioned games of chance. Therefore, Mr. Fields is not qualified to run a permitted recreational gaming establishment. He clarified the intent of Ordinance No stating that the only option for Mr. Fields is for Council to exempt him from the requirements of Ordinance No Mr. Eberhart spoke to the operator involvement and in support of enforcement of Ordinance No Mr. Cleworth stated that Ordinance No is redundant to State law and questioned how the Pastime could have been operating legally.. Mr. Hilling spoke in support of Ordinance No which simply supports State law. Mr. Seeliger spoke in support of leaving Ordinance No in place. Mr. Fields addressed Council regarding his options for being allowed to dispense of his stock. It was clarified that there are no sanctions against the selling of his snack foods under his State of Alaska business license, however, he may not allow gambling or gaming at his place of business. MOTION By Mr. Seeliger TO AMEND the Adopted 2006 Schedule of Council Meetings to Change the Meeting of January 23 to January 30, 2006, SECOND By Mr. Thies. And the 2006 Council Meeting Schedule So Amended. Regular Meeting Minutes Page 7 of 9

8 COUNCIL MEMBERS COMMENTS Mr. Seeliger stated that he would be out of town for the next regularly scheduled meeting and would attend telephonically. Ms Brown stated that she appreciated Mayor Thompson s recognition and acknowledgement of the various staff members. Mr. Hilling expressed his appreciation for all City employees and departments and commented on the recent tragedy taking the lives of two individuals. Mr. Eberhart welcomed everyone to 2006, thanked Mayor Thompson for his apology, and commended Ms. Brown for her work on the Hotel/Motel Discretionary Fund Committee. Mr. Thies commented on the STIP and its funding. Mr. Cleworth expressed his best wishes to Mr. Seeliger on his upcoming surgery and questioned who was responsible for the synchronization of traffic signals between 1st and 3 rd Avenues. Mayor Thompson confirmed that any changes needed to be made in writing and directed to DOT. Mr. Cleworth recommended that a request be made to look at the signals between 1 st and 3 rd on Noble Street. He passed out copies of the original dispatch proposal from 2003 and after a brief explanation recommended revisiting the issue. END SIDE ONE TAPE TWO He shared a draft resolution addressing the dispatch staffing issue and redundancy of service provided by a consolidated dispatch center. Mayor Thompson stated that the next Finance Committee Meeting will address many of Mr. Cleworth s concerns. EXECUTIVE SESSION MOTION By Mr. Seeliger TO MOVE INTO EXECUTIVE SESSION To Discuss Union Contracts, SECOND By Mr. Thies. MOTION By Mr. Cleworth TO AMEND THE MOTION TO MOVE INTO EXECUTIVE SESSION To Discuss Union Contracts, TO ADD Potential Litigation, SECOND By Mr. Hilling. And Council Moved into EXECUTIVE SESSION. BREAK Mayor Thompson called for a five minute break. No action taken during the Executive Session and the Council RECONVENED into Regular Session at 10:32 P.M. Regular Meeting Minutes Page 8 of 9

9 ADJOURNMENT MOTION By Mr. Seeliger TO ADJOURN, SECOND By Mr. Thies. Hearing NO OBJECTION, Mayor Thompson declared the MOTION CARRIED, and the Meeting ADJOURNED at 10: 35 PM. ATTEST: STEVE M. THOMPSON, MAYOR CAROL L. COLP CMC, CITY CLERK Approved: January 30, 2006 Transcribed by: Carol L. Colp CMC, City Clerk Regular Meeting Minutes Page 9 of 9