Loading...
HomeMy WebLinkAbout2016-08-03 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING AUGUST 3, 2016 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR PAT PORTER, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on August 3, 2016, in City Hall Council Chambers, Kenai, AK. Mayor Pat Porter called the meeting to order at 6:00 p.m. 1. Pledge of Allegiance Mayor Porter led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Pat Porter, Mayor Henry Knackstedt Terry Bookey (telephonic) Mike Boyle A quorum was present. Also in attendance were: Rick Koch, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk Jamie Heinz, Deputy Clerk 3. Agenda Approval Robert Molloy Tim Navarre Brian Gabriel, Vice Mayor Mayor Porter noted the following additions to the packet: Add to Item F.1. Ordinance No. 2904 -2016 • Correspondence from Duane Bannock Add to Item G.B. Red Run Cannabis Cultivators • Notice of Non - Objection from the Borough MOTION: Council Member Molloy MOVED to approve the agenda with requested additions to the packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Gabriel MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. `All items listed with an asterisk (') are considered to be routine and non - controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS C. UNSCHEDULED PUBLIC COMMENTS Bob McIntosh spoke in favor of continuing to publish Council agendas in the paper noting some people didn't have access to computers and the unfairness in forcing those people to look at bulletin boards or go to the library for computer access. Patricia Thompson spoke against approval of the marijuana cultivation facility noting she didn't want it in her neighborhood. She expressed concern that the facility would create extra traffic in the neighborhood such as the traffic created by the former liquor store and gas station that were in the same location. She also noted that because the adjacent homeowner was homeschooling a child, she didn't think it was appropriate for cannabis to be that close. Eric Derleth noted he was an owner of the marijuana cultivation facility, thanked staff for being respectful throughout the processes; spoke in favor of approval noting their intention of taking the business seriously and be responsible. He also expressed concern over allegations made by a former Marijuana Control Board member which made it seem that the state's administration would shut down the marijuana industry after the two mandatory years afforded by the initiative. Mark Theiler also noted he was an owner of the marijuana cultivation facility, reiterated Eric's comments; appreciated fair consideration. He noted the company's intention to be good for the community with an open door concept for community members and intention to create infographics with science and authority detailing why children should not consume alcohol or marijuana. Also expressed intention to be open with law enforcement and attorneys with collecting objective data. D. PUBLIC HEARINGS 1. Ordinance No. 2907 -2016 — Increasing Estimated Revenues and Appropriations in the Airport Fund and in the Airport Improvement Capital Project Fund for Phase III City of Kenai Council Meeting Page 2 of 10 August 3, 2016 Improvements at the Airport's Automated Flight Service Station Pursuant to Terms of the Lease Agreement for the Facility with the Federal Aviation Administration. MOTION: Council Member Gabriel MOVED to enact Ordinance No. 2907 -2016 and the motion was SECONDED by Council Member Knackstedt. Mayor Porter opened the public hearing; there being on one wishing to be heard, public comment was closed. VOTE: YEA: Knackstedt, Bookey, Porter, Molloy, Boyle, Navarre, Gabriel NAY: MOTION PASSED UNANIMOUSLY. E. MINUTES 1. *Regular Meeting of July 20, 2016 Minutes were approved by the consent agenda. 2. *Special Meeting of July 26, 2016 Minutes were approved by the consent agenda. UNFINISHED BUSINESS Ordinance No. 2904 -2016 — Determining that Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat, Owned by the Airport Outside the Airport Reserve is Not Needed for a Public Purpose and Authorizing the Sale of the Parcel to Schilling Rentals, a Partnership Owned by David and Michael Schilling. [Clerk's Note: At its meeting on July 6, 2016, Council approved a motion to postpone the enactment of this ordinance. A motion to enact is on the floor.] Mayor Porter opened the floor for public testimony. Duane Bannock noted figures he provided which were included in the laydown regarding impacts to revenues; pointed out the subject parcel was the only piece of property left on the block that had not been sold; also pointed out that there were no other offers at or above fair market value, made on airport properties outside of the airport reserve, that had not been sold. Karina Rainmaker, representing Kenai Surgery Center and MediCenter, noted they occupied 100% of the adjacent building and needed space to grow. There being no one else wishing to be heard, public comment was closed. City of Kenai Council Meeting Page 3 of 10 August 3, 2016 It was noted that the outcome needed to be in the best interest of the Airport; that property in private hands allowed for property taxation; improved properties received higher values than raw land. It was pointed out that the City had created the Industrial Park to attract business. MOTION TO AMEND: Council Member Knackstedt MOVED to amend Section 4 (a) by deleting the word "value," after the word "fair," adding the words "raw land," after the word "market," and deleting the words, "and the sale price must be equal to or greater than the appraisal valuation," after the word, ,completed ", and amending Section 4 (b) by replacing "$298,737.00," with the words "125% of fair market raw land appraisal," and the motion was SECONDED by Council Member Gabriel. It was clarified that the intent of the amendment was to appraise the raw land and not the improvements. There was an estimate provided on what the sale price might be, but pointed out that a new appraisal needed to be completed before the exact amount could be determined. Administration confirmed that the assessor had indicated the tax value would not depreciate due to the size of the improvement because it was assumed unlikely that an owner would walk away from the substantial investment. There was discussion regarding one Council not being held to the precedence of another, Requests for Proposal netting higher prices, the value of leased property, and appreciation for the investments that the Shillings' have made in Kenai. MOTION TO AMEND THE AMENDMENT: Council Member Navarre MOVED to amend the amendment by replacing 125% with 120 %. The motion died for lack of a second. There was discussion regarding selling property as raw land when it wasn't, the difference between raw land and leasehold properties, and properties with buildings in disrepair. VOTE ON THE AMENDMENT: YEA: Knackstedt, Porter, Navarre, Gabriel NAY: Bookey, Boyle, Molloy MOTION PASSED. It was noted that selling leasehold property was a difficult issue as the lease price generated similar revenues as the property tax would. It was also noted that from an economic view, a business wouldn't make an investment in the community if the City didn't make properties available for purchase. VOTE ON THE MAIN MOTION: City of Kenai Council Meeting Page 4 of 10 August 3, 2016 YEA: Knackstedt, Porter, Navarre, Gabriel NAY: Boyle, Molloy, Bookey MOTION PASSED. 2. Resolution No. 2016 -32 — Approving a Policy for the Sale of Ten Specific Airport Owned Leased Lands with Substantial Constructed Leasehold Improvements. [Clerk's Note: At its meeting on July 6, 2016, Council approved a motion to postpone the adoption of this resolution. A motion to adopt is on the floor.] With approval of the Council, the floor was opened for public testimony Don Moffits stated he was representing Doyle's Big Dipper Car Wash, spoke in favor of the resolution noting that a Council member had stated that the lessees knew that the property they were leasing wasn't for sale but pointed out that Mr. Doyle had been told he could purchase after a length of time had passed and the practice had been to sell the property at market value, but the practice had changed. There being no one else wishing to be heard, public comment was closed. There was concern with the resolution setting one rate for all ten properties; noted the properties were different and some may not be worth the rate. It was noted that the resolution didn't guarantee the Council would sell the properties; still allowed for lower offers; still required Council approval. It was also noted that the airport was at risk when it acquired buildings. It was pointed out that the intent of the resolution was to set precedence and to try to provide continuity for leaseholders. YEA: Knackstedt, Porter, Navarre, Gabriel NAY: Molloy, Bookey, Boyle MOTION PASSED. 3. Ordinance No. 2908 -2016 — Approving and Adopting a Revised 2030 Comprehensive Plan Updated in 2016 for the City of Kenai and Recommending Adoption by the Kenai Peninsula Borough. [Clerk's Note: At its meeting on July 20, 2016, Council approved a motion to postpone introduction of this ordinance. A motion to introduce is on the floor.] MOTION TO POSTPONE: Council Member Boyle MOVED to postpone to the next meeting and the motion was SECONDED by Council Member Molloy. It was noted that the there wasn't enough time to read through the plan and that a comparison document would be appreciated. City of Kenai Council Meeting Page 5 of 10 August 3, 2016 VOTE: YEA: Molloy, Boyle NAY: Navarre, Bookey, Knackstedt, Gabriel, Porter MOTION FAILED. MOTION TO AMEND: Council Member Bookey MOVED to hold a second public hearing on September 7 and the motion was SECONDED by Council Member Boyle. It was pointed out that adding a second public hearing would provide five weeks to reflect on information and comments taken from the work session and public hearings and to incorporate changes. VOTE: YEA: Bookey, Molloy, Boyle, Navarre, Gabriel NAY: Porter. Knackstedt MOTION PASSED. VOTE ON THE MAIN MOTION: YEA: Knackstedt, Bookey, Porter, Molloy, Boyle, Navarre, Gabriel NAY: MOTION PASSED UNANIMOUSLY. G. NEW BUSINESS 1. *Action /Approval — Bills to be Ratified. Approved by the consent agenda. 2. *Action /Approval — Purchase Orders Exceeding $15,000. Approved by the consent agenda. 3. *Ordinance No. 2909 -2016 — Waiving Certain Provisions of KMC Chapter 11.20 - Leasing of Tidelands, to Classify for Leasing a 3.29 Acre Portion of Tideland Survey No. 272 within Section 35, Township 6 North, Range 12 West, Seward Meridian and Authorizing the City Manager to Enter into a Shore Fishery Lease with Laura Maccabee for the 3.29 Acre Portion. Introduced by the consent agenda and public hearing set for August 17, 2016. 4. *Ordinance No. 2910 -2016 — Waiving Certain Provisions of KMC Chapter 11.20 - Leasing of Tideland, to Classify for Leasing Tract 4, Shore Fishery Plat No. 71, within Section 35, Township 6 North, Range 12 West, Seward Meridian And Authorizing The City of Kenai Council Meeting August 3, 2016 City Manager To Enter Into A Shore Fishery Lease with the Kenai Salmon Company For Tract 4. Introduced by the consent agenda and public hearing set for August 17, 2016. 5. *Ordinance No. 2911 -2016 — Accepting and Appropriating a Donation of Camera Equipment from the Friends of the Kenai Community Library. Introduced by the consent agenda and public hearing set for August 17, 2016. Action /Approval — Special Use Permit to United Parcel Service (UPS) for Aviation Fueling on the Apron Fueling Area of Kenai Municipal Airport. MOTION: Council Member Knackstedt MOVED to approve the Special Use Permit to United Parcel Service (UPS) for aviation fueling on the apron fueling area of Kenai Municipal Airport and the motion was SECONDED by Council Member Gabriel. UNANIMOUS CONSENT was requested. VOTE: There being no objections, SO ORDERED. 7. Action /Approval —For a Non - Exclusive Easement to Enstar Natural Gas for a Natural Gas Line through Lands Owned by the City of Kenai Under Fourth Avenue. MOTION: Council Member Gabriel MOVED to approve a non - exclusive easement to Enstar Natural Gas for a Natural Gas Line through lands owned by the City of Kenai under Fourth Avenue and the motion was SECONDED by Council Member Molloy. UNANIMOUS CONSENT was requested VOTE: There being no objections, SO ORDERED. 8. Action /Approval — Authorizing a Notification of Non - Objection to the Alaska Alcohol and Marijuana Control Office for the Issuance of a Standard Marijuana Cultivation Facility License to Red Run Cannabis Cultivators, LLC. MOTION: Council Member Molloy MOVED to Authorizing a Notification of Non - Objection to the Alaska Alcohol and Marijuana Control Office for the Issuance of a Standard Marijuana Cultivation Facility License to Red Run Cannabis Cultivators, LLC. and the motion was SECONDED by Council Member Bookey. A brief synopsis of the process followed to legalize commercial marijuana was provided; noted that Kenai considered all businesses equally that came honestly. The ownership group was thanked for their efforts. VOTE: YEA: Knackstedt, Bookey, Porter, Molloy, Boyle, Navarre, Gabriel NAY: City of Kenai Council Meeting Page 7 of 10 August 3, 2016 MOTION PASSED UNANIMOUSLY. 9. Action /Approval —Consent to Sublease by the City of Kenai, for Sublease from Pingo Proerties, Inc. to Jan Marquis, d /b /a Adventures in Learning for the parcel described as Lot 6A, Block 1, Gusty Subdivision No. 4 — 445 Coral Street. MOTION: Council Member Molloy MOVED to consent to a sublease from Pingo Properties, Inc. to Jan Marquis, d /b /a Adventures in Learning for the parcel described as Lot 6A, Block 1, Gusty Subdivision No. 4 -445 Coral Street, and the motion was SECONDED by Council Member Boyle. Council Member Bookey stated that Jan Marquis was his sister, but that he did not financially gain from his sister's business. Mayor Porter ruled that Council Member Bookey did not have a conflict of interest. VOTE: YEA: Knackstedt, Bookey, Porter, Molloy, Boyle, Navarre, Gabriel NAY: MOTION PASSED UNANIMOUSLY. 10. Discussion — Change Advertising of Public Meetings from Published in the Newspaper to Published on Website and Social Media. There was discussion that not everyone had social media, websites were difficult to keep up to date, and there was continued value in advertising in the newspaper even if the content of the advertisement was reduced. There was support for the Clerk to provide a proposal. It was suggested that the agendas and packets be put in the forefront on the website and not on the commissions' web pages. H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging — No report; August meeting cancelled; next meeting September 8 2. Airport Commission — No report; next meeting August 11. 3. Harbor Commission — No report; August meeting cancelled; next meeting September 12 4. Parks and Recreation Commission — No report; next meeting August 4. 5. Planning and Zoning Commission — It was reported that on July 27, the Commission approved two plats reconfiguring lots; approved a time extension for an existing variance; recommended approval of a lease to SOAR International Ministries. It was City of Kenai Council Meeting Page 8 of 10 August 3, 2016 noted that due to advanced knowledge of lack of a quorum, the August 10 meeting was cancelled; next meeting August 24. 6. Beautification Committee — No report. 7. Mini -Grant Steering Committee — No report. REPORT OF THE MAYOR Mayor Porter reported on the following: • Attended the ribbon - cutting ceremony for Double O Express at the airport, • Attended the Chamber Board Meeting regarding advertising, • Noted some dipnet complaints received, • Welcomed the Alaska Mission Salmon Frenzy. J. ADMINISTRATION REPORTS 1. City Manager reported on the following: • Worked with the dipnet fishery throughout July; all staff did an exemplary job, • Revenue from dipnet close to anticipated; use at South beach picked up while north beach reduced, • Five boats capsized which was an increase from previous years; information would be included in a future work session along with suggestions for remedy; there were no injuries, • Two fatalities during the dipnet fishery; unrelated to fishery, • Dipnet fishery had been opened 24 hours per day toward the end; expressed unsafe conditions; suggested extending one week rather than allowing fishing in unsafe conditions. The manager also clarified that by the end of the first week dipnet users seemed aware of the new South beach access; the solarium at the Senior Center had not been put out to bid yet as specifications hadn't been produced; the water tank at the end of Beaver Loop Road would be disguised, as a part of the project, in the future. 2. City Attorney — no report. 3. City Clerk — reported on the following: • Candidate filing period closed on August 15; two candidates filed and certified, • Absentee in Person voting ongoing for Primary Election, • Provided reminders for future meetings. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments City of Kenai Council Meeting Page 9 of 10 August 3, 2016 Councilor Molloy expressed gratitude to staff involved in the dipnet fishery; thanked the Friends of the Kenai Library for the security cameras at the library to help with vandalism; thanked those that attended the meeting and spoke. Vice Mayor Gabriel thanked those that attended and participated; also expressed gratitude for the beach being cleaned up so quickly after the dipnet fishery. Council Member Navarre noted Industry Appreciation Day August 27; also expressed appreciation for beach being cleaned up. Council Member Bookey noted that Kenai Municipal Code required suspension of the rules in certain cases and the parliamentarian should be allowed to answer such questions; thanked staff for their work during the dipnet fishery; noted an increase in people parking in Old Town Kenai and at the end of South Forest Drive to avoid paying fees. L. EXECUTIVE SESSION — None. M. PENDING ITEMS — None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:28 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of August 3, 2016. oaf .: - T� hd.. .. g . dt� Clerk City of Kenai Council Meeting Page 10 of 10 August 3, 2016