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Home My WebLink About2017-02-01 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING FEBRUARY 1, 2017 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on February 1, 2017, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Henry Knackstedt Jim Glendening Mike Boyle A quorum was present. Also in attendance were: Robert Molloy Tim Navarre Glenese Pettey "Mackenzie Lindeman, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk Jamie Heinz, Deputy City Clerk 3. Recognition of Volunteer Services for Phillip Morin Former Harbor Commission Member, Phillip Morin, was presented with a plaque in appreciation for his diligent service to the City from 2007 to 2016. It was noted that Mr. Morin chaired the Commission for a number of years and was also a member of the KOOL Committee. Mr. Morin took a moment and thanked the Council for supporting the Kenai Performers noting they were raising funds for building renovations and invited everyone to attend their next performance, Guys and Dolls. 4. Agenda Approval Mayor Gabriel noted the following revisions to the agenda and packet: Add to Item D. 2. Resolution No. 2017 -06 Correspondence from Residents in Favor of the Sale of the Bowling Alley Add to Item F. 1. Resolution No. 2017 -03 • Amended Policy Remove Item G. 2. Purchase Orders Exceeding $15,000 Add to Item J. 1. City Manager's Report • Correspondence to the Alaska Board of Fisheries • Memorandum Rejecting all Bids for the 2017 Municipal Tractor & Landscape Rake MOTION: Council Member Molloy MOVED to approve the agenda with requested revisions to the agenda and packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 5. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel 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 1. John Williams and Linda Giguere — Update and Explanation of what Cook Inlet Regional Citizen's Advisory Council is and Does, and why John Williams Represents the City. John Williams introduced Linda Giguere and other representatives from Cook Inlet Regional Citizen's Advisory Council ( CIRCAC), including legal counsel, Kristine Schmidt. Linda Giguere provided an overview of how CIRCAC began and their accomplishments over the years to include shore zone imagery and mapping, data portals for response strategies, an ice camera network, and a Harbor Safety Committee to provide for a productive forum for marine safety issues specific to Cook Inlet, Alaska. Kenai Council Meeting Page 2 of 10 ry 1, 2017 2. Alaska Permanent Capital Management — Performance Review of City Permanent Fund Investments, Establishment of 2017 Investment Allocation and Benchmarks, and 2017 Economic Outlook. [Clerk's Note: APC has requested additional speaking time of up to 25 minutes.] Brandy Niclai presented a review of the status of the Permanent Fund Investments reporting overall growth. Provided a broad picture of the financial market for 2016; noted the portfolio has provided an annual average return of 8.4% since inception; provided a simulation of expected value on a ten -year horizon. Also recommended the addition of a U.S. equity fund to the portfolio. C. UNSCHEDULED PUBLIC COMMENTS Holly Ward requested that the Mayor consider proclaiming February 28 Rare Disease Day; provided national results for those facing rare diseases; noted she was recently diagnosed with a rare disease. D. PUBLIC HEARINGS 1. Resolution No. 2017 -05 — Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City's Permanent Funds for Calendar Year 2017. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2017 -05 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted the allocations for 2017 would be the same as in the past and would likely remain the same in the future; Council action not required for authority to invest in the new fund. VOTE: There being no objection; SO ORDERED. 2. Resolution No. 2017 -06— Authorizing the Amended Sale of Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition, City -Owned Airport Property Located Outside the Airport Reserve, to Dean You, or His Assignee. MOTION: Council Member Knackstedt MOVED to enact Resolution No. 2017 -06 and the motion was SECONDED by Council Member Glendening. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The manager and attorney were thanked for continued efforts on the transaction. City of Kenai Council Meeting Page 3 of 10 February 1, 2017 It was noted the transaction was expected to close on February 2 and record on February 3; also noted the escrow agreement would be reviewed prior to the City signing. Administration clarified the City was holding the deed of trust for two years and should the purchaser default, the City would be able to foreclose on the property; also pointed out there was a clause in the deed that would keep the City in first position and no other debt could subordinate the City's position. There was suggestion that other options should be considered. Administration noted the other recent option expired on January 31 and would need renegotiated. It was asked whether the building would remain a bowling alley as the public had requested. Administration noted nothing in the deed required the building remain a bowling alley but it was understood that the buyer's intention was to keep the building a bowling alley. VOTE: YEA: Gabriel, Glendening, Knackstedt, Molloy, Navarre, Pettey, Boyle NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. E. MINUTES 1.'Regular Meeting of January 18, 2017 Meeting minutes approved by the consent agenda. F. UNFINISHED BUSINESS 1. Resolution No. 2017 -03 — Establishing a Sub - Committee of Council for the Purpose of Improving Efficiency in the Supervision of the City Attorney, City Clerk and City Manager and Approving Council Policy 2017 -02 Establishing Procedures and Responsibilities of the Sub - Committee. [Clerk's Note: This resolution was postponed from the January 18th meeting; a motion to enact is on the floor.] MOTION: Council Member Navarre MOVED to postpone consideration to the February 15 meeting and Councilor Knackstedt SECONDED the motion. It was noted that substantial changes had been suggested to the policy which had been provided as a laydown at the meeting and there was not time to digest the suggested changes; the action was not time sensitive. Councilor Molloy thanked the Council for postponement in the past and noted he had no objection to additional postponement; was willing to explain concerns which caused the development of the newly suggested policy. City of Kenai Council Meeting Page 4 of 10 February 1, 2017 VOTE: YEA: Gabriel, Glendening, Knackstedt, Molloy, Navarre, Pettey, Boyle NAY: "Student Representative Lindeman: YEA 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. [Clerk's Note: This item was removed from the agenda at approval of the agenda.] 3. *Action /Approval — Non - Objection of the Liquor License Renewals for the Following: • 2 Go Mart #206 • Peninsula Oilers The Cannery Lodge Approved by the consent agenda. 4. *Ordinance No. 2939 -2017 — Decreasing Estimated Revenues and Appropriations by $35,000.00 in the Parks Improvement Capital Project Fund and by $20,000.00 in the Kenai Recreation Center Improvements Capital Project Fund for Postponed Capital Projects and Authorizing Budget Transfers in the Parks Improvement Capital Project Fund, the Cemetery Improvements Capital Project Fund, the Comprehensive Plan Capital Project Fund, the City Hall Improvements Capital Project Fund and the Trail Construction Capital Project Fund for the Transfer of Remaining Balances from Completed or Postponed Capital Projects to the General Fund. Introduced by the consent agenda and public hearing set for February 15, 2017. 5. *Ordinance No. 2940 -2017 — Accepting and Appropriating Additional Funds from the Federal Aviation Administration for the Small Taxiways and Aircraft Tie -Down Rehabilitation 2015 -2016 Project. Introduced by the consent agenda and public hearing set for February 15, 2017. 6. Action /Approval — Mayoral Nomination and Council Confirmation to Appoint Glenda Feeken to the Airport Commission. MOTION: City of Kenai Council Meeting Page 5 of 10 February 1, 2017 Council Member Navarre MOVED to confirm the Mayor's nomination to reappoint Glenda Feeken to the Airport Commission and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening. It was clarified that the membership of the Airport Commission was to consist of residents and according to Ms. Feeken's application, she was a resident of the City. VOTE: There being no objection; SO ORDERED. 7. Action /Approval — Special Use Permit for the Challenger Learning Center of Alaska to Continue Use of a Donation Kiosk in the Kenai Airport Terminal. MOTION: Council Member Molloy MOVED to approve the Special Use permit for the Challenger Learning Center of Alaska to continue use of a donation kiosk in the airport terminal and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE: There being no objection; SO ORDERED. 8. Action /Approval — Special Use Permit for Evert's Air Fuel Inc. for Equipment Parking and Container Storage. MOTION: Council Member Knackstedt MOVED to approve the Special Use Permit for Evert's Air Fuel Inc. and the motion was SECONDED by Council Member Glendening. It was noted there had been a delay in the process as Administration was waiting for Mr. Evert's health to improve enough to sign the permit. VOTE: YEA: Gabriel, Glendening, Knackstedt, Molloy, Navarre, Pettey, Boyle NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. H. 1. Council on Aging — No report; next meeting February 9. 2. Airport Commission — No Report; next meeting February 9 cancelled; next meeting March 9. 3. Harbor Commission — No report; next meeting February 6. 4. Parks and Recreation Commission — No report; next meeting February 2. City of Kenai Council Meeting Page 6 of 10 February 1, 2017 J. 5. Planning and Zoning Commission — It was reported that at their January 25 meeting, the Commission approved a Conditional Use Permit amendment and an after - the -fact Variance for resource extraction; approved a Conditional Use Permit for a dog daycare; approved two Conditional Use Permit transfers; next meeting February 8. 6. Beautification Committee — No report; next meeting April 11. 7. Mini -Grant Steering Committee — It was reported that grant request from Continuum of Care was approved; discussed the venue not being within the City of Kenai though social impacts affected the City of Kenai and the committee requested a report be submitted to the City to determine the level of homelessness in the City as well as the Peninsula. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Members of the Smith and White families had been rescued and were found to be healthy; were relatives of two City employees; • Attended the Medi- center grand opening where Dr. Carlson had opened a traditional medicine and holistic medicine clinic; recommended touring; • Attended a KCHS pep rally which included a Lip Dub which was successful; • Everything Bagels grand opening was on January 31; • Delivered a proclamation at the Kenai Chamber of Commerce luncheon for Alaska Legal Services who celebrated their 50 year anniversary; • Hosting Coffee with the Mayor on Saturday with Councilor Glendening. 1. City Manager— P. Ostrander reported on the following: • Completed meetings with Department Heads; would be setting up appointments to meet with Council Members; • Spoke to the Rotary Club who was interested in collaborating with the City on snow sculptures; • Toured the Beacon facility with Vice Mayor Navarre noting there were some maintenance concerns; • Attended a meeting with City officials and FAA officials regarding management of airport and grant funding; noted potential NEPA changes requiring categorical exclusions or environmental studies for leaseholds; • Met with Senior Connections and discussed finances; • Spoke at the Kenai Chamber of Commerce Luncheon; • Pointed out a memorandum rejecting bids for a municipal tractor and landscape rake noting bids came in higher than projected and the purchase would be revisited; City of Kenai Council Meeting Page 7 of 10 February 1, 2017 • Pointed out correspondence to the Alaska Board of Fisheries noting it could be amended and sent in time to be provided in their meeting packet; also planned to testify in person; invited comment; Council Member Knackstedt expressed concern regarding the potential for categorical exclusions or environmental studies for leaseholds on Airport property; encouraged discussions with FAA in advance of the requirement in order to streamline the process. Councilor Molloy requested Resolutions be brought forth for comments on Board of Fisheries proposals noting public hearings were appropriate. Proposals causing concern regarding hours for allowing dipnet fishing and potentially causing erosion at different sections of the Kenai River were discussed. MOTION: Council Member Knackstedt MOVED to direct the City Manager to send the letter he prepared so that it could be included in the Board of Fisheries' packet with the City Manager's and Mayor's signatures and Council Member Navarre SECONDED the motion. VOTE: YEA: Gabriel, Glendening, Knackstedt, Molloy, Navarre, Pettey, Boyle NAY: "Student Representative Lindeman: YEA MOTION PASSED UNANIMOUSLY. 2. City Attorney — recently attended a full -day of supervisory training; had upcoming jury duty and would advise of schedule. 3. City Clerk — No report. K. ADDITIONAL PUBLIC COMMENT None. 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments Student Representative Lindeman noted the hockey team was at their regional tournament and the ski team was at a competition in Homer; noted their Lip Dub and school Assembly was a success. Councilor Knackstedt attended the Kenai Chamber of Commerce Luncheon noting the City Manager made a good presentation with reaching out to the business community; noted he had received one of 950 letters that were sent to small businesses from the City Manager which was well received; noted sales tax revenue was dropping and suggested finding ways to bring more businesses to Kenai; noted the upcoming Kenai Historical Society meeting. City of Kenai Council Meeting Page 8 of 10 February 1, 2017 Vice Mayor Navarre noted he heard from a number of businesses regarding the letter sent; thanked the City Manager for his leadership; also attended the Kenai Chamber of Commerce Luncheon; asked for a budget preparation calendar. Council Member Molloy attended the Kenai Chamber of Commerce Luncheon noting he appreciated the discussion regarding the budget concerns and the need to look for efficiencies; Noted Mayor Gabriel did a nice job presenting the proclamation to Alaska Legal Services pointing out that it had been unexpected and would be shared with their leadership; thanked Mayor Williams, Ms. Giguere, and Ms. Niclai for speaking. Council Member Boyle noted his vote to sell prime commercial City property was in spirit for an updated deal. Council Member Glendening attended a hockey game; attended a booster club fundraiser noting it had been well attended; noted Everything Bagels recent grand opening; thanked the City Manager for the State of the City report. Council Member Pettey thanked the City Manager for the letter to the Board of Fisheries and thanked him ahead of time for testifying in person at the meeting; thanked Holly Ward for bringing Rare Disease Day to their attention. L. EXECUTIVE SESSION 1. Discussion of an Offer to Purchase Property Located at 10639 Kenai Spur Highway, Kenai AK also known as Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition (the old Bowling Alley), Pursuant to AS 44.62.310(c)(1)(3) a Matter of which the Immediate Knowledge may have an Adverse Effect Upon the Finances of the City, and a Matter by which Law, Municipal Charter, or Ordinance are Required to be Confidential. It was noted the adoption of Resolution 2017 -06 negated the need to discuss the offer. M. PENDING ITEMS 1. Ordinance No. 2932 -2016 — Donating and Declaring no Longer Needed for a Public Purpose a Certain Parcel Described as Lot 17, Block 5, Original Townsite of Kenai, (KPB Parcel No. 047 - 071 -21) to the Kenaitze Indian Tribe. [Clerk's Note: This ordinance was postponed from the January 4' meeting and again from the January 18r" to the February 15' meeting; a motion to enact is on the floor.] N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:05 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of February 1, 2017. City February 1, 2017 "The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. City of Kenai Council Meeting Page 10 of 10 February 1, 2017