City Council - Regular Meeting

Good evening. I call this meeting to order at a April 21st regular meeting of the city council at 7:14. Please rise for the pledge of allegiance. To the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Before begin we begin tonight's meeting, please note that digital copies of this meeting are available online. A QR code is provided just outside the door or on the top lefthand corner of the YouTube video. Um can scan that code and then you can ask access the packet that way. U madame clerk will you please call the role. Thank you Mr. Mayor. Mrs. Borg here. Mr. Wagner here. Mr. Malto absent. Mr. Pinkush absent. Mr. Denmark absent. Mrs. Loan

here. Mayor Shen here. You have a quorum. Okay. Um, there is a request for an excused absence from Mr. Denmark and Mr. Makato. Um, we need a motion for that. Does it have to be individual both? Can we do them at the same time? Make the motion.

Excuse and Denmark or both Denmark and I'll second that. Thank you. Any discussion? Okay. Hearing none, Madame Clerk, will you please call the role? Voting on the motion to excuse Mr. Denmark and Mr. McCalto from tonight's meeting. Mr. Wagner. Yes. Mrs. Loan.

Yes. Mrs. Borg. Yes. Mr. Mr. Mayor. Yes. The motion passes and Mr. Denmark and Mr. McCalto are excused from tonight's meeting. Thank you. Up next, we have citizen comments. Citizen comments on any agenda item except those scheduled for public hearing are welcome at this time. Those who have signed in will be given the first opportunity to speak. Please note, this is not a time for a dialogue. This is a time for citizens to speak and the council to listen. Madame clerk, is anyone signed in for citizens comments? No one has signed in.

Okay. Thank you. Is there anyone present in the audience who would like to speak on an agenda item at this time?

I think you might have signed in on the second one. I think you might have signed in on the second one. But you if you'd like to speak now is

come on up. Mr. Bender

Hi, my name is uh Mike Bender. I just wanted to talk uh real briefly uh about a House bill that's making its way through the legislature. I I didn't know anything about it. Uh but my uh my daughter uh testified on that on House Bill 366 this morning and it's a bill that um uh I guess it's either encourage or will require uh cruise ships. I guess it's been whittleled down to cruise ships to use a better grade of fuel as they uh are in state waters. So, um, and they when they transit up, uh, the outside, they use what's commonly called as heavy fuel oil, uh, or bunker. That's the the common name for it in the IMO, the International Marine Organization. But, uh, when they go into, uh, into Glacier Bay, they're required to be on diesel. When they're in Puet Sound, they're required to be on diesel. when they visit uh um uh some of the ports in in Canada um British BC. Yeah, British Columbia. So, they're required to use that fuel when they're there. Um the concern is that they use they're required to reduce their sulfur content at comes out the stack. So, the uh common way to do that is you run it through a seawater shower before it goes out the stack. So really basically what's happening is you're taking it what used to go out s stack now is getting uh dumped overboard in in the in the water that runs through that shower. So I was hoping the city would be interested in doing that since uh cruise ships transit Prince William Sound I think it's uh something that that could be uh very beneficial and very have to protect our waters. So that's uh House Bill uh 66.

Yeah. Um the second second thing I I guess I was unaware that there was going to be an executive session today. I guess the lease uh issue was talked about. I would have liked to have had an opportunity to address that. But going forward, I just hope that uh the city council would find it to be uh the leases that are um up for renewal to be reasonable. We've uh been a long-standing company here over 30 30 years. Um, and I guess that's probably I'm just going to rely on your uh the concept of reasonability going forward. Thank you.

Thank you, Mr. Bender. Is there any anyone else in the audience who would like to speak at this time? All right. Approval of next is our approval of agenda and consent agenda. Is there a motion and a second to approve tonight's agenda and consent agenda? Motion.

Second. Discussion. Jamie Tom. Um, I'd like to make an amendment. I'd like to add item 11, resolution 2026-019 to the consent agenda. Any comments or concerns on that? Okay, seeing no further discussion, um, Madame Clerk, will you please call the role?

Thank you, Mr. Mayor. Voting on the motion to approve tonight's agenda and consent agenda. Mr. Wagner, yes. Mrs. Loan, yes. Mrs. Borg, yes. For the record, Mr. Pinkish has joined us. 7:18 p.m. Mr. Pinkush. Yes. And Mr. Mayor. Yes.

The motion passes and the agenda and consent agenda are approved. On tonight's consent agenda, our non-code ordinance 2026-002 suspending the requirement that the city adopt an annual land. Um, this is the introduction of non-code ordinance 2026-002. suspending the requirement that the city adopt an annual land allocation plan under Whittier Municipal Code 3.38.330B throughFF until December 31st, 2027 to permit the Whittier City Council to finalize certain land holdings within the city of Whittier before engaging in the annual land allocation plan process. Resolution 2026-014, establishing a 2026 pilot Whittier Community Beautifification Matching Grant Program, establishing a council review committee, adopting program guidelines, and appropriating funds. Resolution 2026-015 authorizing acceptance of a grant from the Alaska Highway Safety Office for the purpose of purchasing and installing police vehicle tracks system software in the amount of $28,35 and appropriating matching funds in the amount of $7,81 for a total project amount not to exceed $35,044. Resolution 2026-016 authorizing the city manager to negotiate and execute a contract with Axon for tasers, body cameras, and in-car video equipment for a 10-year term. Resolution 2026-017 expressing support for the city of Whittier's pursuit of designation as a World War II heritage city. Resolution 2026-018 determining that leasing a parking area to the Alaska Marine Highway System is in the best interest of the city of Whittier and 2026-019

authorizing additional funding in the amount of $10,20 under the existing term contract with CRW Engineering Group, Inc. for an expanded feasibility study and stakeholder coordination related to Mountain Goat Court and Reservoir Road and appropriating funds. Uh, also on tonight's consent agenda were the approval of the March 17th, 2026 regular meeting minutes and the non-objection to the alcohol in I'm sorry, anchor in alcohol license renewal. Any further discussion? Okay. Okay. Thank you, Madam Clerk. At this time, does anyone just wish to declare of substantial financial interest in the matter appearing on the agenda? And I have I would like to make a declaration of a conflict of interest and wish the council to to determine that for myself on items 15 resolution 20 2026-023 a six-month extension of a lease agreement with Cho Shin Cho and Yenwin Shen authorizing a city manager to execute an agreement amendment it.

Mhm. Oh, and also this is probably the timing is just funny, but also item 20 even though it's on the consent agenda. So, Do you want me to explain the definition again or are you ready to vote on the question? Vote on the question. Okay. Voting on the question. Does Mr. Shen have a substantial financial conflict of interest in items 15 and item 20? Mrs. Loan? No. Mr. Pinkush, yes.

Mr. Wagner. No. Mrs. Borg, no. Mayor Shen, no. Council determines that Mr. Shen does not have a substantial financial conflict of interest in items 15 or 20.

Thank you, Madam Clerk. We have any presentations and reports. Okay. Um, why don't you do yours first? I'm gonna have Chief Kates come up and help me present my wild recognition for the month. And if I can have Andro Castano this so my wild recognition this month is for Andrew. He's a Whittier Fire Department youth volunteer. I recognize him as being part of this volunteer program for his outstanding service and commitment to public safety. Andrew recently volunteered 40 hours as emergency trauma technician and ET during the 2026 Anchorage Fer festival serving in a high demand environment. Andrew demonstrated professionalism, strong clinical skills, and willingness to step forward when his community needed him. He worked to help ensure the festival attendees and visitors had access to obtain capable emergency support, contributing to the overall safety and success of a major regional event. What stands out most about Andrew is his dedication to learning, serving others, and representing the Whittier Fire Department with pride. His actions reflect the strength of our youth volunteer program and the importance of investing in the next generation of first responders. Opportunities like this not only build skills but build confidence, responsibility, and

leadership. Andrew's service is a reminder that even in a small community, our impact reaches far beyond the city limits. His re he represented Whittier well and our community should be proud of the example he is setting. Andrew, thank you for your commitment to service, your professionalism, and for being strong ambassador ambassador for the Whittierard Fire Department and the city of Whittier. We are proud of you and we look forward to seeing your continued growth with public safety. Good job. Uh this is a nice uh letter of recommendation or uh commendation for uh Andrew here from Rod Williams, the president of Fur Randi. So he did a great job. Andrew got his ET end of last year and then uh went right into to helping out the community. This is great. Congratulations. Right here we have a proclamation honoring

Kelly and Mike Bender. The city of Whittier proclamation honoring Mike and Kelly Bender. Whereas Mike and Ben Kelly Bender have been dedicated members of the Whittier community for several decades contributing significantly to the economic vi vitality and character of the city through their long-standing local business ownership. And whereas their work has supported residents and visitors alike, helping to shape Whidier's identity as a welcoming gateway to Prince Williamtown. And whereas beyond their business contributions, Mike and Kelly Bender have demonstrated a sustained commitment to community involvement, service, and the well-being of Whittier. And whereas their efforts have left a lasting impact on the community, reflecting a deep investment in the people, culture, and the future of Whittier. And whereas in recognition of their outstanding contributions, Mike and Kelly Bender were honored with the lifetime achievement award by Visit Anchorage, acknowledging their enduring influence and dedication to Alaska's visitor in industry. Now therefore, it be be it proclaimed that the mayor and the city of council of the city of Whittier hereby recognize and honor Mike and Kelly Bender for their lifetime of service and their meaningful contributions to the community and their welldeserved recognition as res recipients of this distinguished award. And be it further proclaimed that the city of Witter extends its gratitude and appreciation to Mike and Kelly Bender for their lasting legacy and continued impact on the community. Yeah,

I know you all would rather watch our grandkids.

Thank you. So, mayor, I have one more presentation that our um Whittier Police Department is going to come up and demonstrate and give you some information about. Good evening, council members. Um, I'm officer Huffman. I'm a new police officer with the Whittier Police Department. Um, I've been in the city for the last six months filling a different position. Um, but I've happily transferred over uh to fill a more permanent position with the police department. Um, I'm here tonight to speak to you briefly about the Barnacle parking device. Uh, it's a new parking tool that the city will be implementing. Um, this device is designed to help us effectively enforce parking regulations by encouraging timely resolution of citations issued by the city officers. Um the barnacle will primarily be used in situations where we have repeat offenders or high risk of non-payment offenders. Um and what that means is um offenders such as rental car companies. Um we can't write city municipal citations to those uh companies um if they aren't paid before they leave. So if you come here and rent a car and we write you a citation, there's almost no way we will ever recover um the fines associated with that parking citation. Um, the device operates uh by temporarily immobilizing a vehicle by attaching securely to the windshield using two large suction cups, which you can see here, and a built-in suction pump. Um, the device has a visible QR code on the front of it and a 247 or 247 contact phone number that allows the owner to quickly resolve the citation by paying the associated fines with their infraction. device is equipped with uh tracking and

alarm for um any tampering as well as um when the fine has been paid and an officer is ready to come and collect this. Um our goal here is to promote better compliance with regulations set by this council um and maintain accessible, safe and well-managed parking within our community. um pending any immediate questions um from the council. Um Lieutenant Herod and myself will be available uh downstairs in the police department um if you guys ever want a demo or um have any questions offline. How many of those did you get?

Uh the department currently leases two of these devices from the Barnacle Company. Thank you for that presentation. Okay. All right. Uh the mayor's report. This past month, um, city administration and I, we've been working and preparing for our lobbyist trip to Washington DC, where we will meet with, um, land management agencies and other federal and state agencies, um, to pursue grants and resources for this our community. Um, another thing I'd like to announce is during the week of May 10th to the 16th will be our communitywide cleanup week. And so, um, we will be putting out trash bags um, for people to pick up and then working in conjunction with our city services to do a spring citywide cleanup of our community. Um and other reports uh out at Lu Young Park there has been a community favorite pavilion um uh pavilion deck by the waterfront and that thing has been there for many decades and it's um this weekend we got reports of it uh partially collapsed. So if you go out there please don't go out on that deck. It is no longer safe to um stand on. at Lu Young Salmon Run. That's that wind deck out there that's perched on the bluffs.

Okay, put a hearing. Next item we have, we have ordin or Oh, sorry. Oh, there you are. Miss Wild, would you like to give your report now?

I would. So, a couple things. Uh again, thank you Andrew. Really proud to have you as part of our team and we look forward to seeing what you can do here in Whittier and your future. I want to uh bring up also the week of May um May 11th and 12th is the Prince William Sound um symposium. So that will be here in this building on the third on the third floor uh both days. So, we'll have them in town also. Just I think I mean they have a really good turnout every year and I think their numbers even went up this year. So, something to recognize. Um I would like to uh talk about the fact that we had the maritime administrator here last week to discuss the Dongdoc project. We were able to take him around uh town in general. we were um able to work meet up with AML and see how they operate and what the future of the Longdock looks like and hopefully we receive a Miad grant and a PFPD. So that is it was really good for the city to be able to have him here. Um, I would like to say to council that on Friday I was um not allowed to represent the city and their interests at a BTI homeowners meeting. I was specifically told to that I would not be allowed that I was not a homeowner and that I did not have permission. This is a pure violation of the city's rights and interests as well as the fact that they've discussed congressional spending that the city received in the form of a grant. I have reached out to our legal counsel and we will be pursuing action on that.

And that is my part of the report. If anybody has any questions about the city finances or um reports from other directors, they can give it at this time.

Thank you, Miss Wild. Is there any questions by the city manager? Okay, let's move down to we're on resolution 2026-020. A resolution establishing a community memorial fund for the purpose of supporting the development, improvement, and maintenance of pavilions, parks, playgrounds, and other community spaces within the city of Whittier and appropriating funds.

Can I discuss a bit? Oh, we we'll need a motion. I'll make that motion. Second. Thank you. Um can we I guess uh actually Miss Loan I believe

thank you. Um I really this uh the whole point of this or the idea for this um just kind of I was discussing with Jackie just about like what a uh interesting and uh diverse and great community that we do have. And um I know that I haven't been here as long as some others. And I hear great stories about people that have that were before me and um people that are around me. And I was looking thinking about the future. I wanted to be able for us to be able to find a way to be able to honor members of our community, past, present, future, and uh be able to for their families or friends or a a a business or something to be able to donate in the name of somebody and build something or have something lasting in our community that we can all enjoy like pavilions or or parks or things like that. So that's where the idea came from. Um, yeah, that's about it. Jackie, do you have anything? As as you all know, we had a huge loss to our community and that made me really think back at how the community since I have been here has really talked about, you know, the dedication of pavilions. you know, we have the Prozman pavilion, we have the memorial park, we have the railroad memorial park, and um the idea is to set up this memorial fund where people can donate. Um in previous cities that I have been part of, they've even had this memorial fund where people that have unfortunately passed have left a

portion of their estate to that city to build specific things. And um I think the best way that we can honor how those things move forward even with benches and park ben or picnic tables um and developments of our micro parks as you'll see over the next couple months you'll see little micro parks being popped up around town. Uh it's a great way to honor uh the people that are here, the people that have passed and and what they brought to our community or bring to our community. Um, this setting up this fund gives you as council the ability to see and community see money going in and where that money is going to and what it's specifically dedicated for. Thank you. Any questions and comments? Seeing no further discussion, Madame Clerk, will you please call the role?

Voting on the motion to approve resolution 2026-020 establishing a community memorial fund for the purpose of supporting the development, improvement, and maintenance of pavilions, parks, playgrounds, and other community spaces within the city of Whittier and appropriating funds. Mrs. Borg, yes. Mr. Wagner, yes. Mrs. Loan, yes. Mr. Pinkush, yes. M. Uh, Mr. Mayor, yes. The motion passes and resolution 2026-20 is approved.

Thank you. The next resolution is resolution 2026-021 amending the 2026 budget to remove the use of CPV funding for water well and automation project and repurpose the funds to build a year- round harbor restroom facility with public showers to meet the growing demand for public restrooms along the Whittier waterfront. Is there a motion and second? like the motion. I'll second that. Well, thank you. Is there a staff report? Mayor, I'd like the finance direct director to give a staff report, please.

Okay. Thank you, Mr. Mayor. Through through the and council through the mayor. Um, in our 2026 budget, we had um set aside $2 and a half million dollars of current and future CPV funds for the purpose of uh completely replacing the city's water well system. This has been one of the city's capital priorities, one of our main priorities um because our existing water wells have reached the end of their useful life and they are no longer they no longer have the capacity to uh provide the necessary um for the necessary demand especially in our busy summer season. So um after having anal outside analyses of our capacity uh done sometime between 5 and 10 years ago this was identified as a major concern for the city. We began seeking funding to replace the water wells. Um, council may remember that we initially received congressionally designated spending uh funds to replace the water wells um at the then um engineering cost estimate that was you know a third party independent engineer. Um, so we had the funding in place. We thought we went out to bid, the prices came in significantly higher than the level of available funding and so we had to postpone the project. We went back out, sought more funding, were able to get additional grant funds, went out to bid a second time. That was when we were having all the delays in transportation and the um significant inflationary cost escal escalations that businesses saw. and we didn't really anticipate that in the engineer's second cost estimate. So again, we went out to bid. The prices came in higher than available funding. At that point, we recognize that this is a critical

time-sensitive uh project and we didn't want to jeopardize the availability of adequate water supply. So council in our discussions in at the end of 2024 in formulating the 2025 2026 budget identified this is a really significant need. Um and we place funding in the 26 budget in the event we were unable to successfully get enough funds we would potentially use CPV funds for upgrading our water system. Um the use of CPV funds for water and sewer projects has been um deemed by the state through their awarding of funds from this program to communities for various water sewer infrastruct infrastructure projects to be an appropriate use of the funds. wasn't something we wanted to use those funds for, but um but because at the time we were concerned that we wouldn't have sufficient funds, council agreed to put that in the budget for 2026. Fortunately, staff again went back to the drawing board um sought additional grant funds and we received an additional $ three and a half million dollars uh from the ADEC which is a loan with 100% forgiveness although we have to pay uh half a percent which is $17,500 in matching funds for the cost of administering the project. And so now we have um funds to do that project. That project is out to bid right now. We have fallback plans for additional grant funding available um if necessary, but we will definitely be pursuing the replacement of our water wells this summer without the need to utilize these funds. So um we feel like going on to our next highest priority use of CPV funds. Um, we've talked about, you know,

the dire straits of our restroom facilities in the boat harbor and needing to replace um, our outdated, I call them, you know, surplus forest service outouses because essentially that's what we have in our in our harbor and our temporary um, restrooms with a permanent structure. Our recommendation is that council authorize us to change the the purported use of those funds. So, it's no longer purported to be used for water well replacement, but instead um construction of a permanent restroom facility in the harbor. Um so, all we're asking to do is just change the the budgeted use of those funds. And um this is this is not necessarily an appropriation in the sense that it's just a done deal. What'll happen is when we the administration will do our due diligence to go out and research options for restrooms in the harbor and then um we will do a competitive bid process and then we would come back to council at the time we have a um a contract to bring before you for an appropriation from council at that time for approval of of a contract. So, at this point, step one is really just to change the use of uh the planned use of those funds to no longer be water well replacement and instead to be a construction of a restroom in the harbor. And I'm happy to try to answer any questions you might have and the harbor masters here as well if you have any form master. Thank you.

Thank you, Mr. Question. Dave, do we have a timeline when that grant money would have to be used by

um Council Member Pinush through the mayor? No. No, we don't. And we don't currently have the entirety of the funds that we put in the budget. We just knew how much money we needed. So when we put it in the budget, there's a asterisk that stated that this was basically current and future CPV funds sufficient to cover the cost of that project. So that would potentially mean what the fund funding that's available in the project today plus funds that are going to come in like in the next year. So um we would really wait till we had the funds available to do the project. So I can't really give you um an exact timeline on that. It depends on how urgent the situation becomes. But in terms of the lapsing of the funds, no.

No, I'm sorry.

No, just um maybe I'm getting too far ahead. My question maybe for the harbor master. So in here, you know, we're proposing a facility with restrooms and showers. Well, currently we have restrooms in four locations along the harbor front, right? We have three of those uh flush vault toilets. And then we have the harbor master. And I guess the long-term plan, are you proposing to replace all four of them with just one centrallylo restroom or there plans to also make smaller satellite broom um restrooms in the farther reaches of our waterfront. So I believe we we had some conversations with CRW. Obviously, we're very limited in where we can put what we have, right? I mean, we had a lot of conversations about where to put just the portable restrooms that we got just because we had to supply them with power, water, and sewer, right? Um, so we're looking at the locations that we currently have um and what the footprint we have there to work with. And we engaged CRW because they were the ones that actually uh helped design the the two holders that we have throughout the city, right, or the waterfront right now. And and they know what facilities or what utilities we need. Um so, you know, my priority is one of the largest one of the busiest restrooms we have is on the west end by the loop. Um but that's also the tightest area that we have for space because we have so you know so many utilities there. We have a lift station. We have a ton of power structures there. So, um but again, that is probably the largest area that gets the highest use. A lot of those folks come right across the street from the

from the um parking area. They come across the railroad tracks. They go right to that restroom. And I see piles and piles of people waiting to use that bathroom. We really wanted to put a portable over there, but we just had no space for it. So, that would be the priority first is to get that in. Um, and if we could maybe install, you know, build something that's got some showers in it, uh, that's even better. Um, and then the next one would be, um, the portables aren't going to last maybe another two years if we're lucky, right? So, the next one would be kind of the center uh, where that center bathroom is between um, you know, where the old entrance to the harbor is. And that would probably be, you know, next year if possible. But, you know, the big thing right now is just location, location, location. And we have a very limited area. Um, and again, you know, making sure that we're utilizing the space that we have the highest and best use. Um, so I don't not certain if that answered your question, but um the three major areas would definitely be the West End loop, right? um the center and then obviously the triangle because that gets a ton of use as well with the restaurants and kind of the walkway and the la you know the launch ramp as well. So we're looking at those areas.

Okay. No, not quite. But I think it's just maybe too early to really answer that question. Oh, absolutely. Yeah. I mean we've got a lot of homework to do before we really set on one specific area. And that's all for me. Anyone else?

Madame Clerk, will you please call the role? Voting on the motion to approve resolution 2026-021 amending the 2026 budget to remove the use of CPV funding for water wells and automation project and repurpose the funds to build a yearround harbor restroom facility with public showers to meet the growing demand for public restrooms along Whittier's waterfront. Mrs. uh Mr. Wagner, yes. Mrs. Borg, yes. Mr. Mr. Pinkush. Yes. Mrs. Loan. Yes. Mr. Mayor. Yes.

The motion passes and resolution 2026-021 is approved. Thank you, Madam Clerk. The next resolution is resolution 2026-022 accepting the US Environmental Protection Agency Brownfields multi-purpose grant funding authorizing the city manager to enter into a contract with Nortech Inc. to provide qualified environmental professional environmental professional and project management services for the Whittier Brownfields project and appropriating funds. Was there a motion and a second? the world.

Second that. Okay. Thank you. Is there a staff report on this? Mayor, I'm going to have Assistant City Manager Carlson uh give this report. Okay. Thank you.

Thank you. Uh through the mayor. So, uh this has been a long time coming. Uh we have um put out our request for proposals for a qualified environmental professional or science nerd is my nickname for them um and project manager to assist us with implementing the $800,000 multi-purpose brownfield grant that we received from the EPA which will then lead into the $5 million um congressionally directed spending from Senator Marowski for the Buckner building and other priority sites. Uh we scored the five proposals that we received and we are pleased to report that Nortech Inc. was very much the highest um scoring proposer. So we bring to you tonight the um draft contract to enter into an agreement with Nortech um to provide the qualified environmental professional and project management services. Um, this resolution will also accept the grant funding from the EPA for the 800,000. Thank you for the report. Are there any questions or comments? Okay, seeing no further discussion here, uh, Madame Clerk, please call the role.

Thank you, Mr. Mayor. Voting on the motion to approve resolution 2026-022 accepting US Environmental Protection Agency, Brownfield's multi-purpose grant funding, authorizing the city manager to enter into a contract with Nortech, Inc. to provide qualified environmental, professional, and project management services for the Whittier Brownfields project and appropriating funds. Mr. Wagner, yes. Mrs. Borg, yes. Mr. Pinkush, yes. Mrs. Loan, yes. Mr. Mayor, yes.

The motion passes and resolution 2026-022 is approved. Thank you, madam clerk. Our next resolution is resolution 2026-023 approving a six-month extension of a lease agreement with Cho and Yanwin Chen authorizing the city manager to execute an amendment there too. We have a motion in a second. I'll make that motion. Second. Is there a staff report?

Yes, mayor. Um, as we've previously discussed, these four leases, you'll have four resolutions in front of you this evening. So, the report does cover all of them. Um, these leases, there's four of them that expired on March 31st. So in front of you tonight, these resolutions give the option to either extend by 6 months these resolutions uh or these leases with the knowledge of knowing that even with the extension, they still would have to go out to competitive bid by the way that your code is written. It also um one of the discussions that I have uh spoke to you about is what that looks like for you as a community in the future. Uh how uh it affects businesses that are sitting on there that are current and that are um bringing economic development towards you to the community and to the state. So, um, with that being said, this first one is, um, in the harbor triangle and it is currently got a business on it. Um, as we all know, the business is fees fish processing, but that that business is an established business, but the lease is not with the fees. It is with Mr. Shen. Go ahead, Mr. Wagner.

And just to be clear, um, this lease expires in September. This lease expired in March. If you approve the extension, it would expire in six months, which would be September.

Thank you. questions and comments are your recommendation. Um, as we had discussed previously, um, my recommendation at this time would not be to authorize the extension with Mr. Shen, but then allow the city to um work with the fees to move into a lease with them.

Now, that language to sorry, that language to move um that recommendation, would we have to make an amendment? No, you wouldn't have to make that amendment. Um, tonight you're just voting on whether or not you want to do the extension and we've already been directed to move forward with what you've asked us to. Okay. Any further questions or discussion? Madam clerk, will you please call the role? Oh, I'm sorry.

I just want to be clear. There was no direction to move forward with anything in executive session. Correct. So, we're just talking about it's just the mo it's the resolution as it exists. And then I think um but I I think it's great that the city manager is being transparent and and and sort of identifying the desire to um to work with fees, but I just want I want a record to be clear. Sorry. Is that No, that's

Yeah, we didn't make a decision in executive session. I apologize. It was it was a discussion, but in my discussion, my recommendation would be to not extend the lease by six months with Mr. Shen, but then offer the ability to move forward um with fees. Okay. Well, one thing at a time. Um Oh, you ready? Go ahead, Mr. Pinush. Have we any any input from Joe Shen on the extension? Has he made any statement pro or con?

Mr. Mayor, Mr. Pinkish through the mayor. Uh, we did speak with Mr. Shen and he would be interested in pursuing as much time as the city would allow him to continue leasing. Okay. Madam clerk, will you please call the role? Voting on the motion to approve resolution 2026-023 approving a six-month extension of a lease agreement with Chu and Yen Yenwin Chen and authorizing the city manager to execute an amendment there too. Mrs. Borg, no.

Mr. Wagner, no. Mr. Pinkish. Yes. Mrs. Loan. No. Mr. Shen. Mr. Mayor. No.

The motion fails and resolution 2026-023 is not approved. Okay. The next resolution is resolution 2026-024 approving a 6 months sixmonth extension of a lease agreement with Mike Bender and authorizing the city manager to execute an amendment there too. We have a motion. I'll make that motion.

I'll second. You have a staff report.

Yes, mayor. As previously discussed, uh this is another one of the leases that expired on March 31st with no option to renew or extend and by code is to go out to competitive bid. The city managers, the city administration's recommendation is to allow this amendment and give them the ability to execute into a long-term lease. Um, as you all know, this is where the I think it's called the frisky mermaid is. Okay, so this is where the new business the frisky mermaid is. Um again I look at it uh from an administrative point where uh this is an established business. It is a long-running business. Uh well it was ran under a different name. It is established and my recommendation would allow the six-month extension so that we could move forward with working with um the vendors to uh enter into a an additional long-term lease of 5 to 10 years. Thank you, Miss Wild. We have any questions. Okay. No. Hearing no discussion, madame clerk, will you please call the role?

Voting on the motion to approve resolution 2026-024, approving a six-month extension of a lease agreement with Mike Bender and authorizing the city manager to execute an amendment there, too. Mrs. Borg. Yes. Mr. Pinkush. Yes. Mr. Wagner. Yes. Mrs. Loan. Yes. Mr. Mayor. Yes. The motion passes and resolution 2026-024 is approved.

Thank you. Uh, I want to just take a step back on that last resolution for 2026-023. Did we need to make any action or anything to go into record the following steps we wanted to do with the not at this time we would we would enter into as administration would reach out uh to the fees and then we would possibly bring forward a lease to you. Okay. So there's no action we need to do here. No.

Okay. Thank you. Okay. The next resolution, resolution 2026-025, approving a six-month extension of a lease agreement with Mike Kelly Whittier Enterprises, formerly known as Lazy Otter Charters, Inc., and authorizing the city manager to execute an amendment there too. Do we have a motion? I'll make a

second a staff report, please.

As stated before, this is another one of the leases that expired as of March 31st. uh looking at how that property is ran. My recommendation as administration is not to approve this extension, but then also offer um an additional storage option for uh the the contents that are on that property. uh to move them out to the tank farm property for storage and enter into a lease for that type of storage and then turn around and open that lease up for competitive bid. Thank you, Miss Wild. Any questions and discussion? Go ahead, Mr. Wagner.

So, I'm still a little confused about this one. Um I understand the intent here. Uh however, these these offerings of uh storage, moving things, doing this and that. Um they they to me uh they're a little vague. Um, well, anyway, I'm just going to leave it at that. I I I think there's more time needed for these folks to get their stuff together if they're going to have to move. So, that's all I'm going to say.

Go ahead, Miss Wild.

Uh, to answer that, Mr. Wagner, as I had previously stated, uh the council's uh job is to make sure that the best and highest use for all properties are established. While these leases do not have the option for extension or actually to renew um they would have to go out to competitive bid regardless if you gave them the 6 months or not gave them the 6 months. My recommendation is to um not give the extension but then allow us to work with the um vendors to help them with that storage option. While you as a city do not have to provide said storage, it is one of those abilities that would um make that for the best and highest use which is not to store items if we can dedicate an area for them to do that. So again, it is up to the city council on how you would like me to pursue it. But at the same time, it's sort of this let us meet you in the middle. Let us help you find a place and a location and the tank farm and the properties that you have deemed that you want to um use in the future for said storage would give us this opportunity to um allow these type of operations i.e. e storage of equipment to be off of waterfront property

and I agree with all that. It's just um I'm just going to say it. So just storage up the tank farm. This is all new to me. Um I don't know what the rate is. I don't know what we're offering up there. I think it's great. I think we should do it, but it's just kind of weird how this all came about. Um and yeah. No, I I completely agree. Not best use for that property. Um but without knowing what their options are right now, which are very slim and wittier, um I I I'm hesitant about telling them either take this or hit the road.

I don't think we're telling him to hit the road. So, you know, that's that that's my opinion, but um I also believe that this is one of those meat inthe-middle things. And Mr. Wagner, while you're saying that you have never heard of the tank farm being um used for for storage, it has been something that the city has talked to for two years about doing. And so um the thought process in administration is how do we make the best and highest use for the property? opening it up for for competitive bid, but also allowing the vendors to have an area to in which they could, you know, rent and store their equipment. All right, I'm just not going to say anything else. I'm still not quite getting my question answered. Um but um what what Okay, I'm just going to say what's the rate for storage up there?

Um my recommendation for that would be to allow them to rent it for exactly what they're renting the waterfront for and then move forward with what the rate schedule in the future. So you would be be entering into another type of lease for storage and right now it would be at the rate that they are currently charged.

Okay. Um, do Oh, excuse me, Mr. Bender. Hold on a second. Let me see if I can help you here. Can we relax the rules? Do we need a vote to relax the rules to allow? As long as there's no objection, you can.

Is there any objections to me relaxing the rules to allow Mr. Bender to offer input or comments. None. If you like, please come up to the podium.

Yeah, thank you for the opportunity to comment. Um, we've uh, if the storage is an issue, it's it's tight. Uh, again, I've never heard of the ability to have other storage. Uh, it's it's so tight here in Whittier. We've recently acquired another ConX to move some of the equipment that we needed for our marine business off that lot, those lots. Um, they will be cleared here shortly of the remaining motors. Now that they're the snow is off, they will be gone here shortly. We are bringing another enterprise in there that will uh occupy that land and it will be uh it will generate a lot of sales revenue for the the city of Whittier. Um the option does extend uh uh is also that you could renegotiate the lease just like we are doing with the uh the lot that has the building on it. Our intention is ultimately to put more buildings on that. Uh we've applied to the city to uh vacate a lot line because we wanted to this this summer uh build a larger building adjacent to the what's now the Frisky Mermaid the cafe there. So, we we as a 31-year uh business owner, my wife and I are dedicated to being there. We've paid our lease uh fees on time every month. Um so, I think that there is still an option to uh we're we're more than willing to sit down and renegotiate the the lease, but it does there is a possibility of producing a new lease. Um I thank you for your your time and your consideration. Are there any questions I could answer while I'm here?

Thank you for that. Thank you, Mr. Bender. SW. So, while that is an option, it would still have to be by competitive bid because our code specifically states that that lease would be competitive bid. And as we discussed earlier, your criteria is really well listed in there. So if the vendor if you if you choose to extend this by 6 months then I would expect in that 6 months time that we are able to work out what that would look like and what that business would look like to help in that competitive bid process and move this stuff. Be clear. We're not saying that we would help them,

right,

to to somehow, you know, succeed above others in the competitive bid process, but it would be I mean, you have a longstanding um uh business owner in Whittier and based on the criteria that the administration worked to um with council to develop the I think the criteria itself is is designed to support those long-standing historic relationships. Is that correct? Okay. You have questions? No. I guess I got a question for administration. Um, you know, the intent here is to, you know, we are trying to get our waterfront into its highest and greatest use. Um, that's intent of our code here and we're going through the steps necessary um that our code mandates us to do. um when we run into a situation where um where there's many things in transition here. We have had business names change um potentially new enterprises being created um at the same time while we are trying to clean up our leases and start to enforce them. I guess what would to me I'm seeing an extension however we don't have a a plan I guess does it it help people to see more of a plan on how things are going

to move forward or guarantees that things are going to be done when they said they're going to be done

again this is um this is determining whether or not you want to do the six-month extension. Um, regardless, in my mind, I I look at it just like we just said with the Frisky Mermaid. It right now, we look at the property, the Frisky Mermaid, as an established business, and my recommendation was to do that extension so that we could then move forward with with Mr. and Mrs. Bender. Um while the city sees the this arrangement as just storage and hearing what Mr. vendor has said, you know, um if that is the case and you're taking and clearing it for for the best and highest use with the possibility of a future business, my recommendation at this time would be to um allow the six-month extension with the knowledge of knowing that even at that 6 months time, these are not leases. You're not entered into a lease. You have to you have to do the competitive bid process and and the best use for the property would have to be established at that time. Mayor, another thing that you could do, you could amend the resolution to direct the city to enter into a storage agreement within the boundaries of the city of Woodier and no more than the um the current lease rate, but remove any language that um that extends the the lease. So you can sort of change it so that what you have is a um up to six month storage lease, you know, so you can we can we would need to take a recess, but you can change the language of the resolution to create concrete

terms for a storage agreement that Richard and I work on finalizing. Then there you then and using that method you wouldn't extend it to six months but you would ensure storage just an option. What do you think about that? What do you think about that? What do you guys think about that? I'm prepared to vote to just extend the at least six months. So don't see the need for that. Hearing no further discussion, madame clerk, will you please call the role? Voting on the motion to approve resolution 2026-025 approving a six-month extension of a lease agreement with by Kelly Whittier Enterprises, formerly known as Lazy Otter Charters, Inc. and authorizing the city manager to execute an amendment there too. Mr. Wagner,

yes. Mr. Pinkush, yes. Mrs. Loan, yes. Mrs. Borg. No, Mr. Mayor. Yes. The motion passes and resolution 2026-025 is approved.

Thank you, Madam Clerk. Next item is resolution 2026-026 authorizing or approving a six-month extension on lease agreement with Philips Cruises and Tours LLC and authorizing the city manager to execute an amendment there too. Is there a motion in a second? I'll make the motion. I will second. Thank you. We have a staff report.

Yes, mayor. Um, as stated earlier, this is another lease that expired on March 31st with and the resolution in front of you this evening is to um authorize and execute a six-month extension for said lease. Uh, this lease is another one of those that will have to go out to competitive bid. Um, my recommendation as administration is not to extend the six months and move forward with the competitive bid process. Thank you, Miss Wild. Mr. Wagner,

I apologize, Jack. I know we talked about this earlier, but if if they um have to find another location for storage, how long do they have? We would give adequate time for the dis this dispersement. I mean it could be 30 days, it could be 60 days, it could be the six months, you know. Okay. Um, also would the possibility be to extend the same uh offer as far as um if they had the ability the well, we'll just say the conx is that they could also utilize the head of the bank.

Yes. Um, as I've stated for all of these properties, uh, the intent is to, um, hopefully reach out and discuss the option for storage of of supplies and those type of things to the head of the bay onto the tank farm property. Um, utilizing and opening up waterfront property for best and highest use. So, it would be definitely an option to reach out to them. And Miss Wells, you wanted to say something

that we're paying attention to to if the lease terms do not promote the use of property solely for storage or for storage in some capacity or if we have a problem there,

the city absolutely has to look at that compliance before it say executes an amendment to the lease terms. And I think that the city is thinking that. But I I just it's something that needs to be said because we're looking at these extensions of leases. Um but I'm not sure, you know, we're talking about some of these parcels are used almost solely for storage. Um and are not necessarily used in uh in the way that they intend them to or anticipate using them later. So that's just something that will be analyzed independently. So that's something that um council should be aware of.

I I don't think this qualif isn't like along the same line of questioning I had as far as lazy otter. This is try to be nice about this. Um I just I you know obviously I don't want somebody to get a call tonight and say, "Hey, you got to have your stuff out out of there by Saturday." That's that's all I'm concerned about. So, but obviously, yes, it's not clearly not the best use for the property. And I I do want to add, and I I said this uh earlier, um that building is falling down. So, when we think about future best use for that property, it's probably not going to include the building itself. So,

the council's making no decisions tonight on that topic, right? Just for the record. Any further discussion? Okay. Hearing none, madam clerk, will you please call the role? Voting on the motion to approve resolution 2026-026 approving a six-month extension of a lease agreement with Philips Cruises and Tours LLC and authorizing the city manager to execute an amendment there too. Mr. Wagner, no. Mr. Pinkush, yes. Mrs. Mrs. Loan, no. Mrs. Borg, no.

Mr. Mayor, no. The motion fails and resolution 2026-026 is not approved.

Thank you, Madam Clerk. Up next, we have com council comments. Mr. Pinush.

Yeah, you'll indulge me. I got three things. The first one is you all know how much fuel is right now. I brought this up twice before council. Nothing never happened. But basically what I want to know is if council feels that maybe we should s we should switch from a sales tax to a cents per gallon tax so we don't exacerbate the price of fuel when it goes up. Um, right now, you know, the city's collecting 35 cents a gallon because we're over $7 a gallon for diesel. And to give you examples of that, the federal government collects 18 point something cents a gallon for gas, 24 for diesel. The state collects 8 cents for highway use fuel and 5 cents for marine use fuel. The uh city of Anchorage has a 10- cent per gallon tax. The Mass Bureau proposed a 7 cent per 7 cent per gallon tax, but it was voted down. Um, we're not alone in charging sales tax by any means, but the majority of of government charges sense. And then when you have a fluctuation up and down, you don't have that um, you know, benefits when the price goes down. But anyway, if council feels that would be a appropriate thing to do for the people, I would I would like to see us direct the administration to look at the that change. I'm not suggesting what the price should be. I'm just suggesting that I think it's a better when this prices go up, I think it is better to have it a flat amount rather than a percentage amount. You know, a year ago it was 22 cents. Now it's 35. So, we're we're just making things worse for everybody. Anyway, if you don't have a comment, you you can think about it. But I apologize for my throat's acting up tonight cuz I was sanding. But,

um, second thing I'd like to do is just offer a hypothetical situation. I'm curious if other council members feel the way I do. Um the situ this this would be the hypothetical situation. The city puts out a request for a proposal on RFP. Doesn't really matter what it's for. One of the potential bid biders emails the administration with questions about the proposal. Administration responds. Potential bidder emails with more questions. Administration responds. Still more emails come from the potential bidder and at some point the city administrator who is communicating with the potential bidder starts using the personal email instead of a official city email. Bid goes out, bid comes in, administration brings brings the bids before council and lo and behold the bidder who who was emailing using private emails was the recommended um person for the contract. And I just wonder if if council would agree that that something like that happens that it raises red flags. You want to respond to that or do we want to hear or do you want to say your third third item? You had a third one

or is that your third one?

Yeah, the third one. Third one is my respon resp response to council member Borg to her comment she made several months ago. Um and I'll start from the start from the the back of that. The council member Borg stated, I'm asking you sincerely, can we put this behind us? And my opinion on that was prior to your comments during council discussion. There was no there was nothing to put behind us. Another question from council member board is can we move forward and work together? And I'm paraphrasing these. I'm not using exact terminology. Um my response to that is absolutely as long as we are working for the benefit of the public. And I would like to clarify that that this city um is not just doesn't just do city stuff when so when we're representing the city, we represent the city residents and the city. But because we also operate a boat harder boat harbor because of that we also represent the Boers. It extends out to the voters. In fact, when we have a Girdwood contract in in part, we actually represent this the residents of Gerdwood. So, as long as we are as long as we are representing the people that and that's what the reason you have city councils, I'm I can work with anybody. Um, so just that's my answer to that. And one of one of council member Borg's statements was she felt my Facebook post was a deliberate misuse of position and public influence to disparrage a private citizen from serving her community. Well, once you signed up to run for public office and you started campaigning on Facebook, you were you were um a candidate or an incumbent. You still you can't claim you're a private citizen, but I'm not. I have equal right to speak on Facebook just as you do. You posted on Facebook asking for people to vote for you. That made you a public figure. You don't get a free pass until

until you were sworn in. Having said that, I responded to your Facebook post. A public forum as a private citizen. I get one vote just like everybody else. And I was advocating for your opponent. I have every right to do that. I have every right to speak as a citizen. Being a council member may respect Being a council member may restrict speech when you're speaking as a council member. I did not represent myself as a council member any time during those comments. Further, when you enter the world of public office, the rules change when it comes to defamation. A private figure only has to show that a defendant was negligent in making a false statement for a person to be defamatory. A public figure on the other hand must prove that a defendant act acted with actual malice in publishing a false statement about the plaintiff. Meaning that the person either knew the statement was false or showed such reckless deg. This is the world you stepped into. Another statement you made. This is unethical, inappropriate and wholly inconsistent with the responsibilities of an elected fish official. A deliberate misuse of position. So with that, I contacted our legal counsel and asked if any of that was true and whether I had done anything wrong. The response I got was that I didn't do anything wrong unless I provided false information. I was told by legal counsel that when you went to our I was also told by legal counsel that you went to our city manager about this and in some form as a city manager to tell me to stop or something to that effect. I never heard a word from from our city manager about that. I'm going to assume that she knows as well I did nothing wrong. With that said, my statements were investigated for truthfulness. The result was that no indication was found that I had stated anything in my Facebook post that was not true. Now, a bit about what I said. First, everything I stated was public information. Everything I said had been brought to me independent of official process. For

example, I would never have known how much Kyle loan was being paid if it wasn't for people coming to me concerned about the disparity between Bon's 20-year seniority pay and Kyle's day one pay. I was told by those people that they found out about this because Kyle told them. So, it was not by any any means through the through the city. I stated in my Facebook post I stated that in my Facebook post to remind those people who had concerns about it so they might think about who they vote for. I stated in my Facebook post that it was concerning to me that city employees, spouses on on the council and that conflicts of interest will or may exist. Over the years, many of us have heard and spoken to the term the appearance of impropriy. This is a situation where although technically legal, the appearance of impropriy can exist. This can erode public trust put in council members individually or it can erode public trust in the council as a whole. A specific example of this occurred shortly after council member Borg was sworn in. Council was tasked with voting and recommending non-renewal of RC Collins liquor license, a license that can be sold for hundreds of thousands of dollars. If memory serves, the vote was 6 to1 with council member Borg being the sole vote to approve recommending the state do not renew RC's liquor license. Prior to this resolution coming before council, RC Collins received a letter from the city stating that if he didn't comply with the actions set forth in a letter sent to him, further enforcement action may be taken, including recommended denial of renewal of the liquor's license. That letter was similar, very similar to the letter asking council to deny to deny renewal of his liquor license. The letter threatening enforcement action was signed by David Borg. Easy for a person, especially RC, to see this as an appearance of impropriety. He did contact me about it. One more car, one more point regarding my Facebook post. Here's an example

of this is an AI description of the city manager um council form of government. and says the city council holds ultimate authority to set salary scales and benefits typically through the adoption of annual budget and classification plans. The city manager acts as the administrator making recommendations on these managing day-to-day personal functions and hiring firing staff within the council approved framework. While the manager may have the authority to manage staffing levels and hire personnel, including setting specific salary steps within an approved range, they are bound by the overall salary and benefit constraints approved by this council. I happen to believe in that AI statement. Turns out after investigation that my statement regarding Harbor Master Borg salary being 40,000 over the highest pay afforded to harbor master was in fact true. Was actually more than 40,000. It was also discovered that when verifying my truth that during negotiations with David Borg between the assistant city manager and city manager at the time that at some point in the negotiations, private emails were being used by one or more city administrators to negotiate the harbor master's position. Every day this council doesn't correct us. Are we failing those we we are supposed to resent represent? Every day the administration fails to correct this. is administration failing to serve the public the way our city manager, city council, former government is designed to operate. Thank you.

Can I just make a couple comments? One, you have a budget and you have your um compensation package and those are things that the council reviews annually. I think you've reviewed this issue. I believe your finance director has brought these issues to you. So to the extent you want to take up compensation, you just want to make sure that what I what I fear is I don't want council getting into a healthy debate during council comment when that's really outside the purview of the public in some ways because it's not on your agenda. So I'm just saying if that's something you want to take up again, you want to make sure you get that as an agenda item because it's already been addressed lawfully and in compliance through your process. The other thing I want to be clear is that when I talked to council member Pinush, what I said was the city manager had asked me to look at the propriety and legality of the Facebook posts um to make sure that the city was in compliance with the law. I found that um Council Member Pinos's comment was not illegal, was not defamatory unless it meant elements in which it was false. So I just want to be clear that that was the context in which we discussed those comments. Um and then I think the other piece is to the extent there's an issue or you want to review your code regarding um the relationship between candidates and employees. That's an issue that should be brought up separately. and via an ordinance. I you know I think this is a topic that has come up for the city before and I think you've had candidates for many many

years and many many elections in which they are related to or in a household with someone who's on city staff. So to the extent there's any suggestion that that's improper and I don't think council member Pinush is saying that that that's unlawful in any way and but it's something that you have done for decades. So I mean that is something that you're going to want to keep in mind. So there's sort of the legal response to that since we were you know referenced I thought it was worth providing it that

I would like to add one thing. Um, while I did reach out to the city attorney, I did not do that by any direction except for my own. I do watch these things. I do did reach out to her specifically because of my concern of making sure that the council as a whole was protected under their rights and that I did not get asked by any by council member Borg by anybody sitting here to do that. I did that on my own record. Yeah.

Oh, I do want to also say though I did tell council member Pinush and this is important that it was appropriate for uh council member Borg to make comments as it would be appropriate for council member Pinush to make comments. you know that that is that within your comment period it is appropriate to share your viewpoint so long as you're not accusing anybody of unlawful conduct or stating anything that is um you know intentionally uh untrue.

Well, I appreciate that you brought it up. Thank you. I do believe you believe everything you just said. So, Morton Mr. Wagner.

Yeah, I just wanted to uh I just wanted to rephrase what I had said earlier. I don't know why this is bugging me, but uh I said that uh the Phillips building was falling down. Um that's just me being tired. It's not falling down. What I should have said is in disrepair. And the reason why that's pertinent to what we were discussing is because this is the old saying, be careful what you wish for. If we get that building back, well then it's ours. And if we do have to tear it down, well, we own it. So any comments? Okay. Any comments other than your response, Miss Borg? I guess I have I don't know maybe a comment maybe not a response maybe a comment for Mr. Pinquish for your second item I believe about voters you know how we represent them correct. Um, you know, I think we have a porta harbor commission that I guess partially repres represents them, but you know, and we represent the the residents and the citizens of Whittier. And so, at what point do we want to look at voters? Are voters, people who come in, rent the slip, bring in boats, and maybe don't necessarily live here. Are they citizens or are they customers? Either way, we still represent them,

of course. Yeah. But we ultimately are we represent the city, the people who live here. Correct. I guess if we were to prioritize them, is is the government a for-profit business? Well,

it is called a enterprise fund. Um, and If you say for profit, um I think that can be construed in many ways because I think sometimes people might see profit at the end of the year and call it profit. But as a government entity, we are responsible for infrastructure that lasts that exists functions beyond like a fiscal year or a fiscal bianual cycle. And so we have an obligations to maybe profit seemingly a profit in the short term to fund the depreciation of said infrastructure.

Yeah. But eventually, you know, we have to fix things just like our, you know, our repair project, our roads, our water pipes, wells, all that stuff. And um right now we have been extremely fortunate to have an excellent team to that pursues grants and brings in money from um outside this community to do this stuff. Um and so I guess you know that's a struggle uh a challenge that we all have you know are they you know where do our priorities lie and how do we um yeah who do we serve that's all

my point of that is is if if we don't represent the people there's no point in having a council. Why wouldn't you just have the city manager form of government and not have a council?

Of course, I don't disagree with you. I'm thinking, you know, if we if you know when we're in situations where we pit the residents, people who live here year round, call this Woody, their truly call their home, live, work, reside, this is their homemade. They choose to come here to recreate rather than choose to reside here. And then we have these two parties at odds with one another. Who do we ultimately serve? I don't necessarily think they Well, that's just it. They don't need to be at odds, I guess, would be but but I understand what you're saying. And I mean there's times when you know you the residents versus pit the residents against the city you know but the city has to survive for the residents to live here. So you know it's it's a check and balance scenario but at the same token that the purpose of a council is to be the voice of the people and I think because we are in the vote business the pe the voters are also part of the people. Now maybe in a lesser lesser than the residents and lesser than the city but still we represent them. Any other council comments? Thank you Mr. Push. Um next item citizens discussion. Everyone signed in. Time is limited to five minutes per speaker on any subject over which the council has control. Again, this is not a time for dialogue. Rather, it is a time for to allow citizens to to speak and the council to listen. Madam clerk, do we have anyone signed in?

Mr. Mike Bender. Thank you, Mr. Bender. Come on up.

Yeah, here I am again. And I thought I was going to talk about something else, but I I got to tell you that I'm I'm pretty I'm really disappointed on your uh your decision about the uh the two other lots there. I've um to put those out for competitive bid after 6 months. I would hope someone would reconsider that. We've paid lease fees on those for uh those were transferred from Major Marine uh probably 25 years ago. So, we've paid lease uh fees on those. I I don't think that your conscience would help you or allow you to just think for a moment that you'd have to re reby a lease uh that you've paid on for that long. I just that's got to strike you wrong at some kind of uh some kind of level. U in addition uh I don't own any of those uh structures on that lease land anymore and uh they'll all be going away here on on May 1st. Um, uh, I've I've, like I say, purchased another ConX that's not on, uh, city land. In addition to that, it's news to me that there is now city city land available for storage. I will I will enter into that lease because this this this uh town needs some storage for an industry that feeds this town. Um, that's all marine uhh wares over there and equipment that was vital to our our operation. So, I I have a couple other storage areas and that's that's additional stuff, but again I don't the the two conxes I don't own any longer. Uh or or the the trailer. So I'd like to comment on that. Uh I hope that you would reconsider that. The the possibility exists that you could negotiate a new lease. I know that it's long overdue. Knowing it was when I came forward and said, "Hey, I want to uh vacate the lease line that it was discovered that the leases were coming uh uh uh due." And certainly I

want to uh continue to do business there with a couple other uh ventures that I think will benefit the uh the the town in bringing tax dollars if that's that's the whole name of the game here. Um, second thing is, uh, I'm equally disappointed that you didn't have an opportunity from someone from Phillips to, uh, come and and address that that situation. Um, we all know that they're the largest, probably the largest taxpayer in town. They support this town to the tunes of uh, I can't even imagine what it is. The fiscal note, it's hundreds of thousands of dollars. uh and it's probably above $500,000 with the fuel tax, uh their property tax and their uh PTB tax and now the uh transportation tax or fee. Sorry. So yeah, um that comment uh in addition, I think you could solve your restroom problems by advertising. Uh the harbor master's office needs to have a big uh public restroom sign right out because every time I'm working around the building there, I have a woman who I don't know why it's always woman, but they're very interested in finding a place indoor plumbing as quick as they can. So I point them in the right direction. Um again, I'd be more than happy to talk about a lease uh for the storage because that's for 30 years that I've been here uh been an issue all the time. Any questions?

Thank you. Go ahead, Mr. Wagner. Well, is there This is just kind of a response. Um, before we do that, is there any other citizen comments? No one else has signed in. Is there anybody in the audience who would wish to speak at this time? Okay. um council and administration um responses to citizen comments. I'll just talk to Mike after the meeting. after the 10-minute break.

I guess one of the things that comes to mind for me with what what Mike said and what's going on here is, you know, we want people to come to this town and and have businesses here, but knowing that you you could have the carpet pulled out from any from a from an existing lease. Um, wait a minute. It's not it's done. Well, it's done, but it can most of the time leases can be renegotiated. And with with if that is gone, that really devalues the desire for a business to purchase a lease here in my opinion.

Council administration responses. Oh, anyway, that's Miss Wagner. I will be reaching out to Mike and Kelly for the future. So, in the next couple days, it was my understanding that we had

we had plan A, B, and there was no C. So, A, it was these leases are expired. We either could sit down um give them a six-month extension to figure something out or just you're done. That's it. There didn't seem to be anything in the lease agreement or our code that said that you automatically get to renew. As a matter of fact, it's almost like the opposite. So, that is the way all my two choices were six-month extension or it's over. Those that's what was presented to me and that's what I had to work with. So, if somebody knows something different or this could have went a different way, educate me. Okay.

And in closing, I'm not saying that it's right. It's just that's what it is. I can't go back. We can't go back and and change history. I agree with Dave that there should be something even if it's in our what is that little chart thing we have that gives people Yeah, but the the scoring thing so the criteria the criteria is is very specific in your code. You you adopted that code for that criteria. So that does give the option

for for the vendors for Philips Cruises for all of them to go out to competitive bid. They would be part of it. And like I explained earlier, you know what that looks like is this this bid package goes out. It's for, you know, I'm just going to say lot XYZ. Lot XYZ um has a a business on it or doesn't have a business on it. They put in for a competitive bid. Your criteria is very specific. It's in the code. It states, you know, that they get that they would get a point system, right? If they're local, they get certain points. If they're, you know, if they're an established business, they get certain points. And and then you go down that process. And that criteria then comes in front of council. You, it's not just administration. It comes in front of council and says, "Okay, here are the criterias. Here are what those leases would look like." And and then the council then chooses the best and highest use, right? and and and that best and highest use may be Mr. Bender where he has the opportunity to bring more business, right? And and that criteria would break that down for you.

No, I I I agree. I I don't think though that that was discussed in our open meeting. So, I don't think a lot of people here don't even know what that criteria thing is. I didn't know what it was until today. So anyway, I I think it is very important to Mike's point and DA's point that we give some kind of heads up to uh people that have had leases even though their leases are expiring and they're I don't know it, you know what I'm saying? I I I agree with it. Um there's nothing I can do about it, but um I think it's important to take care of the people that uh you know have been here and and you know built businesses and I want to keep them around, but it it doesn't negate the the points that we're dealing with and that's obviously best use of a property and uh what's best for the community. But yeah, I believe there should be some kind of system. I I'm tired. I can't talk.

If I can just add one more thing, Mr. Wagner, uh while we did not voice this even during the meeting, but all of these leases were notified that their leases had expired that they had. So, they did receive that. So, we did we did follow the code, but I just wanted to let everybody know we did reach out and and send certified letters to to these lease holders letting them know what was going to happen that these resolutions would be brought forward. This is, you know, that it would have to be competitive bid. Like those things are things that I mean your your code specifically states that and that's why we followed that.

Yeah. I mean, me personally, I would not enter into a lease, especially long-term lease, that I was building a business without some kind of renewal clause. I just I just wouldn't. But that that ship is sailed and on the other side of the ocean. Council member Wagner, just to make one point, there are up to two options to renew in a lease. This these leases have come to the end of their their life, you know, after I believe multiple options to renew. I would uh city manager wild did they have options to renew contained within the leases? Um I think generally speaking

these leases were really old. These are from the '9s. Um so they were dependent on the land use plan that we had with the Alaska DOT um with the harbor and it was all tied up in that. So there wasn't really even an option to renew. It just said this expires in 2005. Um, unless unless you don't want it to expire and then it'll just keep going, but it cannot go past March 31st, 2026. So, I believe that. So, so I guess from a lawyer's perspective, those are options to renew when you have your original date, but they automatically get the the lease holder holds that option. You know, they can decide to move forward. Um, and the city really doesn't have a choice, which is fine, that that's sort of your traditional option to renew. But, um, so anyway, I just want to make it clear that when your lease policies were changed, that ability to enter into an option to renew remained and I think the limitation is two two options to renew in a lease. So that way the lease holder is getting a lot of um a lot of sort of notice as they're they move through that lease term I think was the goal.

Yeah. Council comment. Um, any objection to me relaxing the rules? Allow Mr. Bender to respond. Happy to hear more information.

Come on up, Mr. Bender. Thank you again. Yeah, the leases are super old. are the original leases uh that uh well the one for the the frisky mermaid is the original lease that I think was uh let in 1995. It had multiple opportunities to renew in which we did. Uh this is the termination of the lease. It only went as far as the Alaska Railroad their their land use or I'm not sure what term it is, but it does have an expiration date. So it's not as if we declined to renew it, the term ran out. Does that make sense to everybody? So, you know, obviously we are we are extremely interested in continuing at our location under new terms of a lease. And if you know if it goes out to competitive bid, the only difference would be that the the someone would pay a lot of money or whatever the transaction fee would be to the city to purchase that lease or to agree that lease, but the lease terms would probably be something we would we would agree to because I think we'd all have to agree that they've been u not attended to to be really really really uh kind in those those terms. When we purchased the the the fudge shop there, that was uh really in bad shape. So, we endured the the scenario to get that corrected. We we uh didn't do well on that cuz we thought we were buy uh having a a three-bedroom apartment and we ended up with an efficiency for about the same the same cost. Um but again, we'd like to continue uh lease there. The lots will be cleaned up. That's part of has been not

necessarily for this uh this scenario, but we don't own that land anymore or those those conxes in that trailer. So, they'll be they'll be leaving soon. Any questions? Thank you. Thank you again.

Thank you, Mr. Bender. Okay, Mr. Pinush. Yeah, I just want to comment to Mike's comment. Mike, you might want to look at I'm not saying it would be the same in Alaska law, but there was a case in the state of Hawaii where leases expired and I don't remember who owned them, whether it was a state or whether it was the um bishop leases, but anyway, it went to court and the jud and the judge ruled that no, you can't just take it. That there has to be an opportunity for the lease holder. Oh, you might look that one up because it I don't know if it it's that was probably 20 years ago. I I don't know. I don't know if it applied to Alaska, but it'd be worth investigating.

All right. Can we um resess just

go? Okay. Just want to clarify that the purpose of competitive bidding is not to exclude anybody, but a city is bound to be responsible for creating fair opportunity for all. So when you agreed to change your code to incorporate competitive bidding, it wasn't to exclude a previous owner of a lease. It was the lease is expired. Now it is our duty to review the options and make sure that this is still the highest and best use. We if we went out to competitive bidding we would hope that the current leie would reapply would apply and put together a competitive package for council to review. This there's there's no penalizing here. We just are trying to do our due diligence which is what the a government is charged with. Thank you Mr. Okay.

Thank you. We're going to take a break. You want to say something? No. No. You want to We take a break. Do you want me to help you? Thought we weren't having an executive session. So, you don't have an executive session after this. My recommendation is not to go into executive session to there's no updates on the railroad. So, we don't need to. So, you continue your meeting. You really want to say something? Nope. Okay. All right. Sorry, Mr. Penush. Do you want to say something again? More done.

Yeah. Miss Lone, I just want to give everyone another chance. Miss Borg, I have one I do have one comment. We should never be allowed to schedule these meetings on such a nice day when we can do work outside. Amen. If there is there any further business? Okay, once gone twice gone. There being no further business, this meeting is adjourned at 9:05.