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HomeMy WebLinkAbout2015-10-27 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION 2015 DIP NET REPORT OCTOBER 27, 2015 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS VICE MAYOR GABRIEL, PRESIDING NOTES Council present: R. Molloy, M. Boyle, B. Gabriel, H. Knackstedt Others present: City Manager R. Koch, City Attorney S. Bloom, City Clerk S. Modigh, Finance Director T. Eubank, Police Chief G. Sandahl, IT Manager D. Castimore, P &R Director B. Frates, and Public Works Director S. Wedemeyer Vice Mayor Gabriel began the work session at approximately 6:00 p.m. City Manager Koch provided an overview of the 2015 Dip Net Report noting that the only operational change implemented for 2015 was moving fee shacks to eliminate issues from last year; the changes were successful. Koch noted that no wake zones were implemented in 2014 and has continued to work extremely well. Koch advised that the entrance to the south shore via Old Cannery Road was again closed through a temporary section -line access closure permit issued to the City by the Alaska Department of Natural Resources. It was reported that it was the intent of Administration to eliminate all access at Old Cannery and Dunes Road for the 2016 season through construction of a new access road to the south shore. A recap on the purchase of properties and construction of a new access road was provided advising the Legislature appropriated $1.9 million in 2013 for the project. It's Administrations intent to construct Phase 1 (gravel surfacing) of the new roadway in the late 2015 /early 2016 to minimize environmental impacts and so that the roadway is operational for the 2016 Personal Use Fishery. Phase II which includes paved surfaces for the new road, Royal Street, Old Cannery Road, and other improvements, will occur following sale of the surplus properties. Administration advised that Council's adopted budget for the Fishery was for revenues in the amount of $573,517, and expenditures of $485,977, or revenues over expenditures of $86,540. Revenues were projected at $556,593, and projected expenses were $462,913, or revenues over expenditures of $$93,680. The Fishery Fund began FY2016 with a fund balance of $67,622 and given the aforementioned numbers, the end fund balance of FY2016 was projected to be $161,342. Administration recommends continuing to build the fund balance in the Personal Use Fishery fund to support capital expenditures, and to protect the City's General Fund. This year the City's expended $65,010 for capital improvements and there have already been a list of requests from departments for next year. Koch noted that Administration will be recommending the City institute a $10 daily drop- off /pick- up fee from 12:OOa.m. —11:59 p.m. which would have the potential of generating $30,000 to $40,000 in revenue. These revenues would go toward raking fish waste, renting and serving portable and permanent toilets, solid waste pick -up and disposal, and public safety which were all services used by those dropped off daily to use the Fishery. KENAI CITY COUNCIL WORK SESSION OCTOBER 27, 2015 PAGE 2 It was reported that the fee shacks were able to capture the following information: • Data showed participants with 538 different mailing zip codes 11 % of the participants had a 99611 zip code • Participants from the Central Peninsula were 20% • Entire Kenai Peninsula Borough totaled 25% • Largest user group was from the Municipality of Anchorage with 54% 77% of all fee transactions were for participants who were not residents of the City of Kenai. It's estimated that $30,800 of the $40,000 in new fees would be paid by non -city residents. In 2015 City of Kenai residents paid approximately $32,000 of fees collected during the fishery; 6% of total fees collected. Finance Director Eubank advised that there were small changes to fees including the elimination of season passes at the dock during the fishery and changes to times related parking and overnight permits. Mr. Preston thanked the City for posting speed limits on the river and no wake zones during the fishery. It was requested by a resident to reinstate the season pass as it's a financial burden for him to pay daily launch fees during the fishery. Council Member Boyle noted that he would like to see the season pass reinstate and would like to see Council revisit this matter. Boyle further noted that he was opposed to implementing fees for drop -off. Gabriel noted that for every positive action there's an unforeseen negative effect; Gabriel noted that Council has in the past discussed providing City residents a reduced fee, however it was discovered that there were legal ramifications. Council Member Molloy agreed that Council should discuss the season pass matter and that he wasn't in favor or opposition of the drop -off fee, but maybe the cost of $10 could be reduced. Molloy further noted that the City should look at discounts on fees for City residents. Knackstedt agreed that the amount of the drop -off fee could be considered and that he would like to further research the season pass matter to see if it would be the in the best interest of the City to be reinstated. Council thanked Administration for their continued efforts in creating a better Fishery. The work session was adjourned at 7:15 p.m.