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HomeMy WebLinkAbout2017-08-02 Council MinutesKENAI CITY COUNCIL — REGULAR MEETING AUGUST 2, 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 August 2, 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 (absent) A quorum was present. Also in attendance were: Robert Molloy Tim Navarre Glenese Pettey Paul Ostrander, City Manager Scott Bloom, City Attorney (telephonic) Jamie Heinz, Acting City Clerk 3. Agenda Approval Mayor Gabriel noted the following additions to the packet: Add to Item D.9. Resolution No. 2017-53 • KPB Municipal Tax Survey Results Add to Item J.1. City Manager's Report • Letter to U.S. Army Corps of Engineers Regarding the Bluff Stabilization Project • Correspondence from Dr. Sorhus Regarding his Lawton Acres Proposal MOTION: Council Member Molloy MOVED to approve the agenda with the requested additions to the packet and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. 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 — Restored Fire Truck's Fourth of July Parade Trophy. Mayor John Williams noted the restoration of the firetruck was almost completed with transmission and brake issues being final projects; also noted the truck had been entered into the Kenai Fourth of July parade and won First Class Overall. He added the project has received tremendous community collaboration. C. UNSCHEDULED PUBLIC COMMENTS Marian Nelson reviewed a professional design fee proposal which had been provided for an as - built and construction document services for renovations and upgrades at the Kenai Fine Arts Center, which was leased from the City; noted K+A Design assisted with the design. Inquired about financial help from the City. D. PUBLIC HEARINGS Ordinance No. 2968-2017 — Appropriating General Fund Balance Funds into General Fund Land Administration -Lands Fund for the Purchase by the City of Kenai's General Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as 'Lawton Acres' and Deed Restricting the Future Use Of the Property to Parks and Recreational Uses to be Retained by the City for a Public Purpose. [Clerk's Note: This item was postponed to this meeting from the July 5 meeting for a third public hearing and Airport Commission review and recommendation on July 13. A motion to enact is on the floor.] City of Kenai Council Meeting Page 2 of 13 August 2, 2017 Mayor Gabriel opened the public hearing Sheryl Main spoke in favor of the ordinance noting she had lived in Nashville and expressed appreciation for planning for green space; enjoyed the green space of the wildflower field and Leif Hansen Park. She added that she wasn't concerned about the cost of retaining green space. Mike Beck spoke in favor of the ordinance; wasn't in favor of the dentist office; felt the residents of Kenai would support purchasing the property. Paul Minelga, Airport Commission member, spoke against the ordinance, noting the airport had poor representation from the community. He pointed out that life flights come in and out of the airport and that supplies would come in and out of the airport in the case of a Sterling Highway closure. He added that the airport was an asset and $600,000 was a drop in the bucket to maintenance and operations, especially given increased requirements for modernization. Jim Zirul, Airport Commission member, spoke against the ordinance, noting the property was under -valued for what its commercial value would be; also noted that Conservation didn't mean green space, but for the property to be retained for the airport to be used at a later time to conserve itself. He added the airport also leases property to help conserve itself. William Nelson spoke in favor the ordinance expressing frustration that the commission would be satisfied with $1.1 million but not with $600,000. Lynette Nickons spoke in favor of the ordinance noting she appreciated the airport. She suggested a new appraisal or a trade of sufficient land. Melissa Frates spoke in favor of the ordinance noting the property as General Commercial was against the Comprehensive Plan; pointed out that Dr. Sorhus removed his proposal to purchase a portion of the property, and suggested a land swap. She suggested two-thirds of the property was unable to be developed. Glenda Feeken, Airport Commission Chair, spoke against the ordinance suggesting there was misconception regarding Wildflower Field and the level of contamination that remained; also suggested the fill that had been placed there might cause more of a problem for development. She pointed out that the entire parcel was developable noting other commercial buildings in town that were on small parcels; also reiterated that the property being zoned Conservation wasn't intended to be park land, but conserved for airport use. Barbara Christian spoke in favor of the ordinance noting they moved to Kenai 47 years ago and couldn't find the city back then; encouraged keeping the city centered. She also provided a map of vacant buildings and cleared lots noting they didn't improve the impression of the City. John Williams spoke against the ordinance suggesting it be "kicked down the road" due to the recession; added that property line setbacks and contamination hindered development. Karl Kircher, principal of Mountain View Elementary school, noted a recent classroom project where students planted lilacs near the gazebo at Wildflower Field on Arbor Day as a lesson in conserving green space in perpetuity. Vivian Terry was provided clarification that the deed restriction mentioned in the ordinance would August 2, 2017 There being no one else wishing to be heard, public comment was closed Administration noted a financial impact analysis had been prepared and had been put into terms of mill rate; also addressed financial impacts to the Airport Fund. It was also explained that there had been an attempt to outline established priorities for the use of the fund balance and encouraged caution using the fund balance in the tough economic times. It was reiterated that use of the funds to purchase the property fell within the fund balance policy. How the expenditure and reduction of the fund balance affected the Bluff Erosion Project and other capital projects was discussed. It was noted it that it was difficult to monetize quality of life and drawing people to live here; the rezoning failures of the property were reiterated. MOTION TO AMEND: Council Member Molloy MOVED to amend Section 5 by inserting $600,000 as the value to appropriate from the Fund Balance and increase the Land Administration — Land Fund by the same amount. The motion failed for lack of a second. Administration's development of a plan to dispose of City -owned property, fair and equitable treatment of neighborhoods, and the cost of creation and maintenance of parks were considerations noted. The utilization of capital reserves with an uncertain future and ensuring the best and highest use for the property were other considerations noted, as was the current economic climate. VOTE ON THE MAIN MOTION: YEA: Molloy NAY: Knackstedt, Gabriel, Pettey, Navarre, Glendening MOTION FAILED. 2. Ordinance No. 2971-2017 — Amending Kenai Municipal Code Section 1.15.060 - Motions, to Provide for Deferring a Motion or Agenda Item Beyond the Next Meeting. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2971-2017 and the motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was clarified that the Code amendment would bring the practice of deferring motions beyond the next meeting into the Code, which supersedes Robert's Rules. City of Kenai Council Meeting Page 4 of 13 August 2, 2017 VOTE: YEA: Knackstedt, Glendening, Gabriel, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Ordinance No. 2972-2017 — Appropriating Funds in the Airport Fund, Accepting a Grant from the Federal Aviation Administration and Appropriating Funds in the Airport Equipment Capital Project Fund for the Purchase of Snow Removal Equipment (SRE) — Loader with Attachments and a Multi -Purpose Broom. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2972-2017 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. It was noted that the FAA was providing a grant of over $1 million leaving approximately $68,000 remaining for the City's portion. VOTE: YEA: Glendening, Knackstedt, Gabriel, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. 4. Resolution No. 2017-48 —Awarding an Agreement for Construction of Kenai Animal Control Shelter Flooring Renovation. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-48 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Unanimous Consent was objected to. It was pointed out that the building was no longer owned by the City due to the lease agreement. The lease agreement terms were reviewed; Administration noted alternative terms for the lease would be considered. VOTE: YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Glendening NAY: City of Kenai Council Meeting Page 5 of 13 August 2, 2017 MOTION PASSED UNANIMOUSLY. 5. Resolution No. 2017-49 — Awarding an Agreement for Construction of Kenai Public Safety Building Boiler Replacement. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-49 and the motion was SECONDED by Council Member Molloy. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration provided an overview of the design, the use of the specific boiler, warranties, maintenance, and the contractor that provided the lowest bid. VOTE: There was no objection; SO ORDERED. 6. Resolution No. 2017-50 — Providing for The Submission to the Qualified Voters of the City of Kenai, at its Regular Election of October 3, 2017, the Advisory Question of Whether the City should use General Funds or General Fund Land for the Purchase of or Trade for Airport Land Commonly Referred to as "Lawton Acres", which is Airport Land Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1A Section 33,T6N, R1 1W, Seward Meridian. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2017-50. The motion died for lack of a second. 7. Resolution No. 2017-51 — Accepting and Adopting the 2017 Airport Master Plan. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-51. The motion was SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted that the document was a good document though some portions were older as it was completed in phases and it was suggested that a supplement be started in approximately three years. VOTE: There was no objection; SO ORDERED. 8. Resolution No. 2017-52 —Amending the Financing Terms and Purchasing Party for the Sale of Tract A, Dragseth Subdivision 2016 Addition, According to the Official Plat Thereof, Under Plat No. 2016-22, Filed in the Kenai Recording District, Third Judicial District, State of Alaska, Including All Improvements Thereon as Previously Approved in Ordinance No. 2957-2017 (Substitute). City of Kenai Council Meeting Page 6 of 13 August 2, 2017 MOTION: Council Member Knackstedt MOVED to approve Resolution No. 2017-52. The motion was SECONDED by Council Member Navarre who requested UNANIMOUS CONSENT. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration clarified that the terms were being amended to essentially the same as the originally negotiated terms; also clarified that the balloon payment funds would be received for utilizing with the remaining grant funds within the required timeframe for the grant. VOTE: There was no objection; SO ORDERED. 9. Resolution No. 2017-53 — Supporting Kenai Peninsula Borough Ordinance 2017-17, Establishing an 8 Percent Areawide Sales Tax on Temporary Lodging and Providing for an Exemption of up to 4 Percent of the Levy on Temporary Lodging Within the Boundaries of Cities in The Borough that Levy a Similar Sales Tax in Addition to an Existing General Sales Tax, Subject to Approval by the Voters in the Regular Election on October 3, 2017. A19111118 in Council Member Navarre MOVED to adopt Resolution No. 2017-53 and the motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing. Bob McIntosh spoke against the resolution, noting he was against the ordinance as it seemed to put the cities at a disadvantage because the language gives the entire levied tax to the Borough if a City didn't implement its own tax and he didn't think it was fair. There being no one else wishing to be heard, public comment was closed. It was noted that the borough had amended their ordinance amending the rate. MOTION TO AMEND: Council Member Molloy MOVED to amend the seventh whereas clause to read, "Whereas, this Resolution of support does not obligate the City to enact a bed tax but if a majority of Borough qualified voters approve Ordinance 2017-17 as amended on the October 3, 2107 Kenai Peninsula Borough ballot, then the City must enact its own bed tax in order to participate in the borough - wide rate of 6% with 3% remitted to the City of Kenai," and the motion was SECONDED by Council Member Navarre. MOTION TO AMEND THE AMENDMENT: Council Member Molloy MOVED to amend the amendment by replacing the words, "borough - wide rate of 6% with 3%," with the words, "City's exemption share in the borough -wide rate," and the motion was SECONDED by Council Member Knackstedt. City of Kenai Council Meeting Page 7 of 13 August 2, 2017 VOTE TO AMEND THE AMENDMENT: YEA: Knackstedt, Glendening, Gabriel, Pettey, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. UNANIMOUS CONSENT was requested on the motion to amend. VOTE TO AMEND: There being no objection; SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend by replacing 8% with 6% and 4% with 3% in every other instance in the document and the motion was SECONDED by Council Member Knackstedt. DIVISION OF THE QUESTION: Council Member Navarre required the division of the question with the resolved statement taken separately from the rest of the resolution. A brief at ease was taken for the Acting City Clerk to confer with Council Member Navarre and the City Attorney. After reconvening the meeting, the division of the question and the motion to amend the percentage amounts were withdrawn. MOTION TO AMEND: Council Member Navarre MOVED to amend the fourth whereas clause to read, "Whereas, under the Borough Ordinance, a bed tax rate would be established and would apply to "temporary lodging," defined as "a service to provide any lodging of less than one month," and would include motels, hotels, and bed and breakfasts within the City of Kenai," the fifth whereas clause to delete the first instance of "4%," replace the words "rate of 8%" with the words, "bed tax," and replace the second instance of "4%" with "50%," and the resolved statement by deleting,"8%," and replacing "4%" with "50%," and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. VOTE: There was no objection; SO ORDERED. MOTION TO AMEND: Council Member Knackstedt MOVED to amend the title by deleting the words, "eight percent," and by replacing the word "four' with the word "fifty," and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. VOTE: There was no objection; SO ORDERED. UNANIMOUS CONSENT was requested on the main motion. VOTE ON THE MAIN MOTION: There was no objection; SO ORDERED. City of Kenai Council Meeting Page 8 of 13 August 2, 2017 E. MINUTES 1.'Regular Meeting of July 5, 2017 Meeting minutes approved by the consent agenda. UNFINISHED BUSINESS Ordinance No. 2969-2017 — Amending Kenai Municipal Code Title 24 — Municipal Cemetery, to Update Procedures for Development of Cemetery Regulations and Opening and Closing of Graves, and to Provide Regulations in the Cemetery Regulations Appendix for Columbarium Niches, Marker or Headstone Deposits, and Other Housekeeping Changes. [Clerk's Note: This item was postponed to this meeting from the July 5 meeting. A motion to amend is on the floor.] The amendment motion from the July 5 meeting was read into the record. Due to the Attorney's suggested amendment, it was requested that the amendment motion be voted down. VOTE ON THE AMENDMENT: YEA: Glendening NAY: Knackstedt, Gabriel, Pettey, Navarre, Molloy MOTION FAILED. MOTION TO AMEND: Council Member Knackstedt MOVED to amend Section 3 by replacing the word "his" with the word "their," and amending the last sentence to read, "Opening and closing of graves shall be conducted by a contractor or business licensed and insured in the State of Alaska as an embalmer, funeral director or mortuary establishment." The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. VOTE ON THE MAIN MOTION: YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Boyle, Glendening NAY: MOTION PASSED UNANIMOUSLY. 2. Resolution No. 2017-43—Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Cemetery Fees. [Clerk's Note: This item was postponed to this meeting from the July 5 meeting. A motion to adopt is on the floor.] MOTION TO AMEND: City of Kenai Council Meeting Page 9 of 13 August 2, 2017 Council Member Knackstedt MOVED to amend by changing the effective date in Section 3 to September 1, 2017 to match the effective date of Ordinance No. 2969-2017. The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There was no objection; SO ORDERED. UNANIMOUS CONSENT was requested on the main motion. VOTE ON THE MAIN MOTION: There was no objection; SO ORDERED. 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. 2973-2017 — Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books. Introduced by the consent agenda and public hearing set for August 16, 2017. 4. *Ordinance No. 2974-2017 — Accepting and Appropriating a Grant from the United States Department of Transportation Passed Through the State of Alaska Department of Transportation and Public Facilities for the Reduction of Fatalities and Injuries on Roadways. Introduced by the consent agenda and public hearing set for August 16, 2017. 5. *Ordinance No. 2975-2017 — Appropriating Funds in the Airport Fund, Accepting a Grant From the Federal Aviation Administration and Appropriating Funds in the Airport Capital Project Fund for the Terminal Building Rehabilitation Project and Awarding a Contract to Wince-Corthell-Bryson Consulting Engineers for Design Services. Introduced by the consent agenda and public hearing set for August 16, 2017. 6. *Ordinance No. 2976-2017 — Increasing Estimated Revenues and Appropriations by $15,371 in the Airport Fund and in the Airport Improvement Capital Project Fund for the 2016 Airport Fencing Rehabilitation Project. Introduced by the consent agenda and public hearing set for August 16, 2017. 7. *Ordinance No. 2977-2017 — Amending Kenai Municipal Code Sections 14.20.151 — Application for Conditional Use Permit for Surface Extraction of Natural Resources, 14.20.152 — Review of Application, 14.20.153 — Public Hearing, 14.20.154 — Issuance of Permit, 14.20.155 — Operation, 14.20.156 — Yearly Review, 14.20.157 — City of Kenai Council Meeting Page 10 of 13 August 2, 2017 Termination, 14.20.158 — Amendment or Transfer, to Allow the City Planner to Determine Application Completeness and Making Other Housekeeping Changes. Introduced by the consent agenda and public hearing set for August 16, 2017. 8. *Ordinance No. 2978-2017 — Increasing Congregate Housing Fund Estimated Revenues and Appropriations to Provide Repair and Maintenance Funds That Were Inadvertently Omitted from the Funds FY2018 Budget. Introduced by the consent agenda and public hearing set for August 16, 2017. 9. Action/Approval — Mayoral Nomination and Council Confirmation of Clyde Crandall to the Harbor Commission. MOTION: Council Member Knackstedt MOVED to confirm the appointment nomination of Clyde Crandall to the Harbor Commission. The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. Mr. Crandall's application was read into the record. VOTE: There being no objection; SO ORDERED. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging — No report; Next meeting August 10. 2. Airport Commission — It was reported that at their July 13 meeting the Commission discussed the Master Plan and recommended its approval; discussed Lawton Acres ordinance and made a recommendation; next meeting August 10. 3. Harbor Commission — It was reported that at their July 10 meeting the Commission met and elected a new Chair and Vice Chair, postponed consideration of the Landscape Site Plan ordinance to August, and discussed the former no wake zone at the mouth of the river; Next meeting August 7. 4. Parks and Recreation Commission — No report; next meeting September 7. 5. Planning and Zoning Commission — It was reported that the Commission approved a plat for the Dragseth property at their July 26 meeting and postponed Hilcorp's lease application to their next meeting; next meeting August 9. 6. Beautification Committee — It was reported that on July 11 the Parks and Recreation Commission and the Beautification Committee provided a recommendation on the Landscape Site Plan ordinance; next meeting September 12. 7. Mini -Grant Steering Committee — No report. REPORT OF THE MAYOR City of Kenai Council Meeting Pagel 1 of 13 August 2, 2017 Mayor Gabriel reported on the following: • Met with the delegation from Kenai's Sister City, Akita, Japan. J. ADMINISTRATION REPORTS 1. City Manager — P. Ostrander reported on the following: • Attended an Economic Development Forum; • Interviewed and hired a Senior Center Director; • Participating in an effort with Stephanie Queen from the City of Soldotna to retain or attract young people; • Finalizing MOU's with the Kenai Chamber of Commerce on the Eagle Cam feed and selling ads for the Dipnet App; • Reported that initial results showed dipnet fishery revenues were down; • Reported that the comment period for the Bluff Erosion Project was open until July 21 and a majority of the comments had been positive. 2. City Attorney — No Report. 3. City Clerk — J. Heinz reported on the following: • Lifted the conditional protest on Peninsula Botanicals, LLC; • In soft start phase on PEAK Agenda Management and would continue moving forward; • Attended the "How to Run for Local Office' workshop provided by the Kenai Peninsula Borough Clerk and League of Women Voters; • Reported the Candidate filing period for City Council opened on August 1, and continued through August 15. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments Vice Mayor Navarre thanked those that testified throughout the process regarding Lawton Acres. Council Member Knackstedt noted it was his 31" Anniversary. Council Member Pettey echoed Vice Mayor Navarre. Council Member Glendening thanked the City Manager and staff on their attention to items on the agenda; noted Alaska's GDP was down. L. EXECUTIVE SESSION 1. Review and Discussion of Candidates, Interview Questions, and Interview Dates for the City Clerk Position. [AS 44.62.310(C)(2)(3) a Subject that Tends to Prejudice the Reputation and Character of an Applicant and Matters which by Law, Municipal Charter, or Ordinance are Required to be Confidential.] City of Kenai Council Meeting Page 12 of 13 August 2, 2017 MOTION: Council Member Molloy MOVED to convene in executive session to discuss candidates, interview questions, and interview dates, for the City Clerk position, a subject that tends to prejudice the reputation and character of an applicant and matters which law, municipal charter, or ordinance are required to be confidential per AS 44.62.310(C)(2)(3) and requested the City Manager be available and the motion was SECONDED by Council Member Navarre. VOTE: YEA: Gabriel, Knackstedt, Navarre, Pettey, Molloy, Glendening NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in regular session and noted interview questions were approved; thanked the City Manager for assembling the packets for the interviews. M. PENDING ITEMS — None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 10:35 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of August 2, 2017. City Clerk City of Kenai Council Meeting Page 13 of 13 August 2, 2017