City council heard one last capital projects update from outgoing Public Works Director Nancy Peterson last night.

Peterson and her husband Jeff Hawley, the director of Parks, Culture and Recreation, are retiring next week. Mayor Shirley Marquardt and all six councilors thanked Hawley and Peterson for six years of service to the city.

In her presentation, Peterson brought the council up to speed on the status of a range of capital projects that she’ll be passing on to her successor. That person hasn’t been hired yet -- the city has one candidate, who they’re flying out next month.

Peterson asked the council to think about funding some extra paving work with leftover funds from current projects.

"I won’t be here, but someone will bring forward to the council in February, an addendum to do this additional paving if council will consider that," she said.

Last night, council passed a resolution to pay $3.2 million to Knik Construction to finish repaving Airport Beach Road and East Broadway, and to resurface Ballyhoo Road. Peterson said there’ll be $7.8 million dollars left over in paving funds after those projects are done.

She’d like to see paving on Biorka Drive, at the City Hall, library and high school parking lots and on the Kelty Field trail. She says Knik has said they’d be able to do the work this summer.

Peterson noted that the fourth engine for the powerhouse is scheduled to arrive next month. But they’re not planning to start installing it until July, after the state budget will be finalized. That’s because they’re waiting to see if the state will give them any more money for the engine. The city had asked for $4.5 million, but didn’t receive it in the governor’s version of the budget.

City Manager Chris Hladick went over revenue projections for fiscal year 2015 with the council at last night’s meeting. He said state money is going to be tight across the board.

"You just never know what they are going to do, but if they’re going to cut, this is going to be the year," he said. "Because they’re $2 billion short in the current fiscal year with the state budget, and $2 billion short for next year, so we’re expecting operating budgets to take a pretty big hit."

So he says they were conservative in predicting what they’ll receive in state revenue sharing, planning on a million dollars less than last year. Other than that, he said the revenue projections aren’t changing much.

Council also approved tidelands lease agreements for Resolve-Magone Marine Services last night. Manager Dan Magone is expanding to a second tract of land. He’ll see his total rent increase from $13,500 for one tract to $121,000 for both tracts over the course of the next five years. That’s due to new regulations that say rent on tidelands has to equal 10 percent of the land’s appraised value.

Magone was present at the meeting, but didn’t speak.

Council also passed a resolution that will allow the Ounalashka Corporation to build outfall and intake lines for the new Sea Aleutian Seafood plant on their property, once they have all the required documentation. Councilor Dennis Robinson said he was concerned it meant the plant would be dumping byproducts into the water. But Mayor Marquardt said it wouldn’t be a problem.

"They are not processing the fish -- it’s whole fish, in the round, frozen, boxed and shipped out," she said. "So they’ll be washing down the plant and that’s it, but they are not processing."

Sea Aleutian’s permit requires them to start construction by June 1.

Council unanimously passed a resolution support Governor Sean Parnell’s proposal to put $3 billion into the state’s retirement trust funds in 2015.

Council also passed new standards for city employee tuition reimbursements. The new standards mean employees get reimbursed more or less depending on their grades in their courses, among other requirements. Councilor Dave Gregory asked if they’d had any feedback from city employees on the changes. Hladick said it had only gone out to department directors.

Council meets next on Jan. 28. That meeting will include a public hearing on changes to how the city bills for ambulance services.