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HomeMy WebLinkAbout2001-04-04 Council PacketKenai City Council Meeting Packet April 4, 2001 AGENDA KENAI CITY COUNCIL- REGULAR MEETING APRIL 4, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http' //wwW.ci.kenai.ak.us ITEM A: CALL TO ORDER,, 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *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. ITEM B' SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: PUBLIC HEARINGS o Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations'by $4,607,137 in the ARFF/SRE Capital Project Fund. ao c, Motion to Adopt Motion to Substitute Substitute Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,130,973.70 in the ARFF/SRE Capital Project Fund. Consideration of Ordinance. , e Ordinance No. 1902-2001 -- Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund and Multipurpose Facility Capital Project Fund for Engineering Design of Upgrading the Facility for Refrigerated Ice and Miscellaneous Improvements. Ordinance No. 1903-2001 -- Transferring $25,000 in the Airport Land System Special Revenue Fund and Increasing Estimated Revenues and Appropriations by $25,000 in the Comprehensive Plan Fund. , Ordinance No. 1904-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, As Shown on the Attached Exhibit A Map, Are Not Required for a Public Purpose. -1- Se o , . . ITEM D: . 2. 3. 4. 5. 6. 7. ITEM E: o ITEM F: ITEM G: o ITEM H: . Ordinance No. 1905-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, as Shown on the Attached Exhibit A, Are Not Required for Public Purpose. Resolution No. 2001-19 -- Approving a Contract to G&S Construction, Inc. for the Project Entitled Kenai Airport ARFF/SRE Facility -2001 for the Total Amount of $3,716,383. Resolution No. 2001-20 -- Awarding a Contract for Construction Administration Services on the Project Entitled, Kenai Airport ARFF/SRE Facility to RIM Architects for the Not-To-Exceed Amount of $276,698. Resolution No. 2001-21 -- Awarding a Contract for Professional Design Services for the Project Entitled Multipurpose Facility Refrigeration to Architects Alaska/K lauder & Company Associated Architects for the Not- to-Exceed Amount of $90,000. Resolution No. 2001-22 -- Transfemng $3,500 in the Wellhouse No. 4 Capital Project Fund for Survey Work to Locate Existing Water Wells. COMMISSION/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report MI1COTES *February 15,2001 City Council Work Session Notes *February 22,2001 City Council Work Session Notes *Regular Meeting of March 21,2001. CORRESPONDENCE OLD BUSINESS Discussion -- Sale of Block 3, Five Irons Heights Subdivision , NEW BUSINESS Bills to be Paid, Bills to be Ratified -2- . o Purchase Orders Exceeding $2,500 *Ordinance No. 1906-2001 -- Amending KMC 7.25.020 to Increase the Amount Allowed to be Transferred in Line Item Accounts Within a Fund Without Council Approval From Less Than $1,000 to Less Than $2,500 and Removing the Limitation on Transfer Authority From Personal Services. . Approval -- Assignment of Lease/Lot 2, Block 5, Cook Inlet Industrial Air Park -- From M.J. Grimm and R.J. Johnson to R.J. Johnson. , . Approval -- Assignments of Shore Fishery Leases/Tract A, City of Kenai Shore Fishery No. 1 and Tract B, City of Kenai Shore Fishery No. 1 -- From Kendall H. Carlson (Tract B) and Thad A. Carlson (Tract A) to Boyd O. Campbell. Discussion -- Schedule Work Session Regarding City Manager Search . Discussion -- Reschedule July 4, 2001 Council Meeting. ITEM I: ,,, ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION ,, 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM K: ADJOURNMENT -3- MAYOR'S REPORT APRIL 4~ 2001 REGULAR COUNCIL MEETING ADD AS: CHANGF_~ TO THE AGENDA B-1, Fred Braun -- Kenai Visitors & Convention Bureau regarding 2001' A Fish Odyssey REOUESTED BY: CLERK CONSENT AGENDA MAYOR'S REPORT Z 0 Z 0 ~0 ~~ > > Suggested by: Administration City of Kenai ORDINANCE NO. 1901-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $4,607,137 IN THE ARFF/SRE CAPITAL PROJECT FUND. WHEREAS, past appropriations to this project total $1,004,072.30; and WHEREAS, the site work portion of the project is complete and the City now desires to construct the building and associated work; and WHEREAS, the FAA has indicated they will participate with 93.75% of the funding. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Taxiway Extension North Capital Project Fund Increase Estimated Revenues: Federal Grant Transfer from Airport Land System $4,319,191 287,946 4,607,137 Increase Appropriations' Engineering Construction $ 250,000 4,357,137 $4,607,137 Airport Land System Fund Increase Estimated Revenues: Appropriation of Fund Balance $287,946 Increase Appropriations: Land-Transfer to Capital Project $287,946 Ordinance No. 1901~2001 Page Two PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21~t day of March, 2001. JOHN J. WILLIAMS, MAYOR ATTEST: CarOl L. Freas, City Clerk Introduced: Adopted: Effective: March 7, 2001 March 21,2001 March 21,2001 Approved by Finance: ~~. (03 / 02 / 2001) jl SUBSTITD'r~: Suggested by- Administration City of Kenai ORDINANCE NO. 1901-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $4,130,973.70 IN THE ARFF/SRE CAPITAL PROJECT FUND. WHEREAS, past appropriations to this project total $1,004,072.30; and WHEREAS, the site work portion of the project is complete and the City now desires to construct the building and associated work; and WHEREAS, the total project cost is estimated to be $4,935,046; and WHEREAS, appropriating a contingency of $200,000, initially funded by the Airport Land System Special Revenue Fund, is appropriate for this project; and WHEREAS, the FAA has indicated they will participate with 93.75% of the funding as follows: 2000 Entitlement 8 / 1 / 2000 Discretionary 3 / 2001 2001 Entitlement 3/2001 2002 Entitlement (when available after 10 / 2001) $ 671,853.00 1,900,000.00 1,333,956.00 720,796.00 $4,626,605.00 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Airport Land System Fund Increase Estimated Revenues: Appropriation of Fund Balance Increase Appropriations: Land-Transfer to Capital Project $176~201.70 $176~201.70 ARFF/SRE Capital Proiect Fund Increase Estimated Revenues: Federal Grant Transfer from Airport Land System Increase Appropriations: Administration Engineering Construction $3,954,772.00 176,201.70 $4:130~973.70 $ 184,018.00 295,549.00 3,651,406.70 $4:130,973.70 Ordinance No. 1901-2001 Page Two PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of April, 2001. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: March 7, 2001 April 4, 2001 April 4, 2001 Approved by Finance: Suggested by: Administration City of Kenai ORDINANCE NO. 1902-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $100,000 IN THE GENERAL FUND AND MULTIPURPOSE FACILITY CAPITAL PROJECT FUND FOR ENGINEERING DESIGN OF UPGRADING THE FACILITY FOR REFRIGERATED ICE AND MISCELLANEOUS IMPROVEMENTS. WHEREAS, it is in the best interest of the City of Kenai to upgrade the Multipurpose Facility to have refrigerated ice; and WHEREAS, cost for engineering design of this project is estimated to not exceed $100,000; and WHEREAS, funds are available in the General Fund fund balance for transfer to the Multipurpose Facility Capital Project Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance $100.000 Increase Appropriations: Non-Departmental - Transfers $100:000 Multipurpose Facility Capital Project Fund Increase Estimated Revenues: Transfer from General Fund $100.000 Increase Appropriations: Engineering $100,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4th day of April, 2001. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk Approved by Finance: (03/16/2001) jl Introduced: Adopted: Effective' March 21,2001 April.4, 2001 April 4, 2001 Suggested by: Administrat City of Kenai ORDINANCE NO. 1903-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $25,000 IN THE AIRPORT LAND SYSTEM SPECIAL REVENUE FUND AND INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $25,000 IN THE COMPREHENSIVE PLAN FUND. WHEREAS, the Professional Services budget for the Airport Land System Special Revenue Fund Land Department included $20,000 for integration of the airport master plan and $5,000 for a noise area review; and WHEREAS, these amounts need to be transferred to the Comprehensive Plan Fund to facilitate accounting for the project. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the following transfer be made, and estimated revenues and appropriations be increased as follows' Section 1' Airport Land System Special Revenue Fund From: Land- Professional Services To: Land - Transfers Out Section 2: $25:000 $25:000 Comprehensive Plan Fund' Increase Estimated Revenues: Transfer from Airport Land System Special Revenue Fund Increase Appropriations' Professional Services $25:000 $25,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4t~ day of April, 2001. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk Approved by Finance: (03/14/2001) jl Introduced: Adopted: Effective' March 21,2001 April 4, 2001 April 4, 2001 Suggested by: CITY OF KENAI OItDINANCE NO. 1904-~001 Administrat,. AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, FINDING THAT CERTAIN CITY-OWNED LANDS LOCATED IN INLET WOODS SUBDIVISION, AS SHOWN ON THE ATTACHED EXHIBIT A MAP, ARE NOT REQUIRED FOR A PUBLIC PURPOSE. WHEREAS, the City of Kenai has title to the properties listed below and shown on the attached Exhibit A map; and , Lot Eight (8), Block Eleven (11), according to the Plat of INLET WOODS SUBDIVISION, PART ONE, f~ed under Plat No. 84-279, in the Kenai Recording District, Third Judicial District, State of Alaska. 2~ Lot Twelve (12), Block Thirteen (13) according to the Plat of INLET WOODS SUBDIVISION, PART ONE, filed under Plat No. 84-279, in the Kenai Recording District, Third Judicial District, State of Alaska. WHEREAS, KMC 22.05.010 requires that the Council determine whether certain City- owned properties are needed for a public purpose, stating, "Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are not required for a public purpose."; and WHEREAS, the Parks and Recreation Commission, the Planning and Zoning Commission and the City Administration recommend that Lot 8, Block 11 and Lot 12, Block 13 be made available for sale; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Lot 8, Block 11 and Lot 12, Block 13 located in Inlet Woods Subdivision, as shown on the attached Exhibit A, are not required for a public purpose. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 4t~ day of April 2001. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk (3/5/2001)kh Introduced: Adopted: Effective' March 21,2001 April 4,2001 May 4, 2001 Exh-ibit A B11, L8 & B13, L12' FUTURE PHASE ~S PARSON'S HMSTD. NO. 2 TR. 2 VE. C-laiD-IAI 11 2J3-~ BACKWOOD AVE. · 14 1~ 13 2 12 3 - 2 SUBD. DR. WOODSIDE AVE. Redoubt Avenue TR. 16A I LU Z LU (' I Subject Lots r I Surrounding Properties Wetlands _ Suggested by: Administra CITY OF KENAI ORDINANCE NO. 1905-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, FINDING THAT CERTAIN CITY-OWNED LANDS LOCATED IN INLET WOODS SUBDIVISION, AS SHOWN ON THE ATTACHED EXHIBIT A, ARE NOT REQUIRED FOR A PUBLIC PURPOSE. WHEREAS, the City of Kenai has title to the properties described as Lots Eighteen (18) through Twenty-seven (27) inclusive, Block Twelve (12) according to the Plat of INLET WOODS SUBDIVISION, PART ONE, filed under Plat No. 84-279, in the Kenai Recording District, Third Judicial District, State of Alaska; and WHEREAS, the City has received a request by an applicant asking that the referenced properties be made available for sale; and WHEREAS, KMC 22.05.010 requires that the Council determine whether certain City- owned properties are needed for a public purpose, stating, "Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are not required for a public purpose."; and WHEREAS, the Parks and Recreation Commission and the Planning and Zoning Commission recommended that Lots Eighteen (18) through Twenty-seven (27) inclusive, Block Twelve (12) be retained for public use; and WHEREAS, the City Administration recommends that Lots Twenty-one (21) through Twenty-five (25) inclusive, Block Twelve (12) be reserved for street drainage retention; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Lots Eighteen (18), Nineteen (19), Twenty (20), Twenty-six (26), and Twenty- seven (27), Block Twelve (12) located in Inlet Woods Subdivision, as shown on the attached Exhibit A, are not required for a public purpose. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 4th day of April 2001. JOHN J. WILLIAMS, MAYOR ATTEST' Carol L. Freas, City Clerk Introduced' Adopted: Effective: March 21,2001 April 4, 2001 May 4, 2001 (3/6/2001)kh Exhibit A B12, L18 -20 & 26 - 27 rURE PHASE BACKVVOOD AVE. ~ 14 I~ '1 13 2" 12 3-- ~ (10) ~ 10 ~~ 5 I 2 3 4 5 11) ~11 -8_ ..-.~7 6 · D DR. LU Z HMSTD. 2 LU WOODSIDE AVE. Redoubt Avenue TR. 16A TR. 31 2 Z SUBD. ~ Lots for Sale Surrounding Properties Wetlands __ CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ M emoranClum Date: To: From: March 28, 2001 Mayor John J. Williams and City Council Members Richard A. Ross, City Manager~ Ordinance 1905-2001 - Inlet Woods Block 12 The City Administration recommends that Inlet Woods Lots 21 through 25 of Block 12 be retained for a public purpose. We recommend that Lots 18, 19, 20, 26 and 27 of Block 12 be declared as not needed for a public purpose. The recommendations and discussions of both the Planning and Zoning Commission and the Parks and Recreation Commission were considered in making this decision. In doing this, Mr. La Shot, Mr. Frates and I went to the site and reviewed the issues raised. The subdivision drainage issue is satisfied by the retention of Lots 21 through 25. Storm drainage pipes enter Lots 21 and 25. Potential park development in this area can be accomplished through several means that would allow for continuation of the pOnd as a central feature of any future park. One option is to allow contractors, under city supervision, to dispose of clean fill in selected areas to shape and contain the pond while adding to the present useable land area. The park area created would be approximately 2.2 acres, or 400+ feet by 244+ feet in dimension. This is more than adequate as a neighborhood park in our estimation. Lots 18, 19, 20, 26 and 27 are not needed in our estimation for either of these purposes~ drainage or future park use. They, in fact, have water and sewer utilities stubbed to them for residential development. RAR/sp H.IBG. 130. GO H 4 N C) 0 .J #,6G ,60. CIO 14 . H,,, Gl;, 60. O0 H IVl. i9.;" .. E;O. CiO H C) MOTION: Commissioner Glick MOVED to approve PZ01-10 and Commissioner Morse SECONDED the motion. There was no public comment. Commissioner Bryson indicated it appeared to be the situation when there is double lot frontage on modest-sized lots. VOTE: Bryson Yes' Nord Yes Goecke Yes Erwin Morse Yes Yes Glick dackman Yes Yes MOTION PASSED UNANIMOUSLY. ITEM 5' OLD BUSINESS -- None , , ITEM 6' NEW BUSINESS ,.. Request that Inlet Woods Subdivision lots be made available for sale. Determine if needed for public purpose. Chairman Goecke drew attention to the Parks & Recreation Commission recommendation regarding the lots in Inlet WOods Subdivision. The recommendation was contained in the unapproved minutes included in the meeting packet. · Public Works Manager La Shot explained it would be the recommendation of Administration that Lots 21 through 25 be retained for drainage purposes. This would still leave seven lots that would not be affected by the pond. . Commissioner Nord reported the Beautification Committee had also discussed this particular area in great detail in regard to retaining it for a future park. Nord thought 'that perhaps not all lots should be retained for park use, however those located on the east side may be suitable. Commissioner Jackman asked if the area was suitable for a park and if that was the reason it was being held. La Shot replied, if the five lots were withheld, the City Manager would entertain giving the person the other lots and a use permit to go in and put fill and material around the edge of the pond so that it can be seeded. If that happens, then perhaps it would be suitable fOr.park use. Nord clarified, she was in favor of having lots 21 through 27 retained for a park so there could be some area for playground toys. Jackman asked if Administration thought there was ample space for such equipment. La Shot answered, he couldn't speak for Parks and Recreation, but PLANNING & ZONING COMMISSION MEETING MARCH 14,2001 PAGE 2 thought they did envision a larger area than just the five lots. La Shot continued, there had been no views from the City Administration on the issue other than all lots not affected by water should be made available for sale. Commissioner Bryson concurred with Parks and Recreation in that a buffer area is needed on both sides. MOTION: Commissioner Bryson MOVED to concur with the Parks and Recreation Commission that Lots 18 through 27 be retained for public purpose. Chairman Goecke stated that he wasn't totally convinced that he liked the idea of a pond being accessible for kids. Goecke considered the pond a safety hazard. Jackman again asked for clarification on whether the Commission should first determine whether the lots should be sold first then decide which ones should be held for public purpose. Goecke replied that if part of what the Commission did was against what Council decides, it wouldn't make any difference. Goecke added, the Commission should determine whether or not the lots should be made available for sale but the viewpoints should also be made known. Commissioner Bryson called for point of order, as there was a motion on the floor without a second. Commissioner Nord SECONDED the motion. Bryson stated, the safety concerns were well founded, as there had been a problem with ignoring ponds. Bryson pointed out that there is no park development plan included, but thought that when there is one, consideration would be given to the pond and the safety issues. Councilman Frazer stated he talked with the proposed purchaser and it was noted the dirt from the pond area was hauled out and mounded on Lots 1-5 of Block 11. The proposed purchaser intends to move the dirt back to the pond area. Frazer added, the drainage in that area didn't make the pond; it was just where the rainwater drains. Frazer continued, another consideration would be if all of the lots on the backside were taken out, the remaining utilities would have to come down Backwood Avenue to serve Lots 14 and 1 in Block 10, and 1 through 5 in Block 11. Frazer added, the cost of those utilities would be borne by those lots instead of both sides of the street, so there would be some side effects on how these particular lots are treated. Goecke stated the cost of running power would be pretty minimal considering what's already there. Bryson stated the water and sewer was already in, the road was paved and street lights were in so it was likely they would run the shallow utilities along the side that they're serving rather than cut across so there wouldn't be much of a cost difference. Discussion took place on the lots requiring utilities and it was determined PLANNING & ZONING COMMISSION MEETING MARCH 14, 2001 PAGE 3 there wouldn't be many that are affected. Further discussion took place on the depth of the pond and what those levels were at certain times of the year. VOTE: Erwin lYes Morse No Goecke Yes Glick Jackman Yes Nord Yes No Bryson Yes MOTION PASSED. ITEM 7: PENDING ITEMS-- None ITEM 8. CODE ENFORCEMENT -- None ITEM 9- REPORTS 9-a. City Council- Councilman Frazer reported that the agenda from the last council meeting was in the packet and he was available to answer any questions. 9-b. Borough Planning- Commissioner Bryson gave a report on the KPB Planning meeting held on Monday, March 12. 9-c. Administration- Public Works Manager La Shot announced the RFP for the request for proposals for the update to the comprehensive plan had been sent out. ITEM 10: , PERSONS PRESENT NOT SCHEDULED -- None ITEM 11' INFORMATION ITEMS 11-a. Wince-Corthell-Bryson correspondence regarding ADOT/PF Kenai River Bridge Access Road Pathway. ITEM 12: COMMISSION 'COMMENTS ~ QUESTIONS Commissioner Jackman stated she thought the Commission's decision to not put lots up for sale in Inlet Woods properly addressed the safety issue concerns addressed during the Commission's discussion of the matter. She recommended that if those lots should be made available for sale, those issues be addressed. Jackman stated it was the duty of the Commission to come up with solutions to the problem and to have more positive guidance. Jackman reported she would not be present at the March 28th meeting. PLANNING & ZONING COMMISSION MEETING MARCH 14, 2001 PAGE 4 Discussion - Skateboard Park / Design and Equipment Frates reported the School District had liability concerns in regard to the KCHS students fabricating skateboard park units at the Commission's last meeting and as a would not be building the equipment. Steiner reported many of the students were very discouraged that the school was unwilling to support the project. Frates noted the students would be building one unit but it just wouldn't be available for the city's use. It was reported Representative Mike Chenault was very interested in the skateboard project and would be meeting with city officials soon to discuss it. Councilwoman Porter suggested a meeting with the parents be scheduled as well to determine whether there will be support from them for the project. A lengthy discussion ensued regarding a location for the skateboard park. Frates recommended it be temporarily located at the south'side of the Recreation Center, along the gym. In this location, the program could be better monitored, would be close to the police and fire departments, and the Teen Center snack bar would be accessible. Frates made it clear the skateboard park would not be supervised but it would be monitored. MOTION: Commissioner Gifford MOVED to recommend the skateboard park be temporarily located at the Teen Center. Student Representative Steiner SECONDED the motion. There were no objections. SO ORDERED. ITEM 6: NEW BUSINESS Discussion- Kenai Multipurpose Facility/Refrigeration Alternatives and Considerations. Frates referred to a memorandum included in the meeting packet discussing various refrigeration alternatives and considerations for the multipurpose facility. Discussion took place on commercial versus industrial systems and what may work best for the facility. Discussion took place on the City buying out the LLC. Councilwoman Porter commented it had been discussed and would eventually happen. Commissioner Sandahl stated he believed buying out the LLC should be a top priority. Discussion -- Inlet Woods Subdivision Lots Frates drew attention to the memorandum from Klm Howard (distributed at the beginning of the meeting) reporting a request that had been made asking if Lots 18-27 in Inlet Woods Subdivision could be made available for sale. The Parks Commission PARKS & RECREATION COMMISSION MEETING MARCH 1, 2001 PAGE 2 was asked to review the lots in question and to determine whether they believed the lots are needed for public purpose or if they could be sold. A lengthy discussion ensued regarding whether or not the lots were needed for public purpose. Frates reminded the Commission that a motion was made on the issue on January 6, 2000 that stated any lots deemed unsuitable for building as a result of swampy area, should be recommended for use as a neighborhood park. Much discussion took place at that time with regard to the exact location of the low area and where the pond was situated. Frates pointed out the map included as Exhibit A accurately reflected exactly where the pond and low area was situated. It was noted that it was the comer lots the Commission considered for a park. Frates reported the Public Works Manager indicated there was a lot of junk in that area. Porter asked if it was Mr. Hall who was interested in pUrchasing the lots and Frates confirmed that it was. Porter reported Hall had submitted a request to purchase 56 lots in the back of Inlet Woods Subdivision and had already submitted his earnest money. Porter thought the appraisal of the properties would be coming received soon. Frates also drew attention to the black area on the map (Exhibit A) which is a very low area and the drainage from the swamp runs into that area. Frates added, in the summer that particular area would be full of water and it freezes over in the winter. Frates continued, the Public Works Manager indicated the area would never be filled back in as that drainage is required. With that in mind, Frates asked the Commission if a piece of playground equipment or a park should be located next to the pond. MOTION: Commissioner Sandahl MOVED to recommend Lots 18-27 in Inlet Woods Subdivision be made available for sale. Commissioner Castimore SECONDED the motion. VOTE: Baxter Castimore Absent Gifford Yes Wisniewski Yes Steiner No i Sandahl No No Hultber§ Absent MOTION FAILED. Porter confirmed that it was the recommendation of the Parks and Recreation Commission that the lots not be sold. Sandahl stated that was correct. Discussion continued and Steiner noted that an area like that would have a lot of mosquitoes. Wisniewski stated the area almost looked like a gravel pit. Castimore suggested Hall might want those lots in order to backfill them and added, the overburden from that area would be buffed and not hauled off to the dump. Castimore thought the lots should be sold. PARKS & RECREATION COMMISSION MEETING MARCH 1, 2001 PAGE 3 lots were not needed for public purpose. Discussion again took plaCe on the number of lots that Hall requested to purchase. Porter noted the original number was 56 but that had increased with the lots being discussed. Wisniewski asked if Hall would even consider setting aside an area for a park in that area. Frates stated that he didn't know and Sandahl suggested Frates have the City Engineer have a recommendation for Council in terms of potential problems in that particular location. It was noted the issue would go to Planning and Zoning and then to Council, so many factors would be considered. Porter noted she would find out why Hall wants the lots. Councilwoman Porter drew attention to Lots 8 and 12 which were also discussed in the memo. The COmmission was asked to deterrn_ine whether or not those lots could be sold or if they were required for public purpose. During discussion it was noted those iMOTION: Commissioner Castimore MOVED to recommend Lots 8 and 12 be made available for sale. Commissioner Sandahl SECONDED the motion. VOTE: sandahl [Yes [ Castimore Yes Steiner Yes Hultber§ [Absent [Baxter Absent Gifford Yes Wisniewski [Yes [ MOTION PASSED UNANn~OUSLY. ITEM 7- REPORTS 7-a. Commission Chair- Wisniewski stated consideration should be given to rebuilding and relocating the recreation facility within the next five years and that perhaps the new facility could be located by the multipurpose facility. Discussion took place on the needs of the growing community and the benefits of having a new facility. It was suggested this item be added to the five-year plan. Frates was asked to have a list of items for review at the next meeting. 7-b. Director -- Director Frates reported the following items: · The Volunteer Reception would be held in April, however, a specific date had not been set. He suggested a proclamation for the Buffington family presented at the reception. · A meeting was held with the Chamber Director to discuss the Kenai/Soldotna Chamber clean-up. A substantial donation was made by Unocal in support of the program. The clean-up proposal was well received and everyone will participate. The clean-up day will be held in May and there will be prizes. PARKS & RECREATION COMMISSION MEETING MARCH 1, 2001 PAGE 4 Suggested by: Administrauon CITY OF KENAI RESOLUTION NO. 2001-19 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A CONTRACT TO G & S CONSTRUCTION, INC. FOR THE PROJECT ENTITLED KENAI AIRPORT ARFF/SRE FACILITY - 2001 FOR THE TOTAL AMOUNT OF $3,716,383. WHEREAS, the following bids were received on March 9, 2001' Bidder G '& S Construction, Inc. Schedule A Building $3,612,428.17 Schedule B Earthwork Paving $103,954.83 Zubeck, Inc. $4,519,000.00 $113,948.50 Dawson Construction, Inc. $3,683,445.00 $115,554.76 Ahtna Enterprises Corporation Blazy Construction $3,885,000.00 $4,077,511.00 $4,293,163.00 Engineer's Estimate $125,939.00 $122,928.40 $129,675.00 Total A & B $3,716,383.00 $4,632,948.50 $3,798,999.76 $4,010,939.00 $4,200,439.40 $4,422,838.00 WHEREAS, G & S Construction, Inc.'s bid is the lowest responsible bid and award to this bidder would be in the best interest of the City; and, WHEREAS, this resolution is contingent upon FAA funding and approval; and, WHEREAS, the recommendation from the Administration is to award the contract to G & S Construction, Inc. for the total cost of $3,716,383; and, WHEREAS, sufficient monies have been appropriated by Ordinance No. 1901-2001. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for the project entitled Kenai Airport ARFF/SRE Facility be awarded to G & S Construction, Inc. for the total amount of $3,716,383. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of April, 2001. JOHN J. WILLIAMS ATTEST: Carol L. Freas, City Clerk~ ~,, Approved by Finance: Suggested by: Administration CITY OF KENAI RESOLUTION 2001-20 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR CONSTRUCTION ADMINISTRATION SERVICES ON THE PROJECT ENTITLED KENAI AIRPORT ARFF/SRE FACILITY TO RIM ARC'HITECTS FOR THE NOT-TO-EXCEED AMOUNT OF $276,698. WHEREAS, this contract is to provide construction administration services; and, WHEREAS, the contract award is contingent upon FAA approval and funding; and WHEREAS, the Council of the City of Kenai has determined that the award to RIM Architects would be in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for Construction Administration Services for the project entitled Kenai Airport ARFF/SRE Facility be awarded to RIM Architects for the not-to- exceed amount of $276,698. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this fourth day of April, 2001. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk APproved by Finance: ~J~(~/ CITY OF KENAI RESOLUTION 2001- 21 Suggested by: Administri. ~'" ~ A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR PROFESSIONAL DESIGN SERVICES FOR THE PROJECT ENTITLED MULTI-PURPOSE FACILITY REFRIGERATION TO ARCHITECTS ALASKA/KLAUDER & COMPANY ASSOCIATED ARCHITECTS FOR THE NOT-TO-EXCEED AMOUNT OF $90,000. WHEREAS, Architects Alaska/K lauder & Company Associated Architects' proposal dated March 28, 2001 has been reviewed by the City Administration; and, WHEREAS, this contract is to provide a complete architectural, engineering, and construction bid package; and, WHEREAS, construction administration services will be negotiated after design completion; and, WHEREAS, sufficient funds have been appropriated to award this project by Ordinance 1902-2001; and, WHEREAS, the Council of the City of Kenai has determined that the award to Architects Alaska/K lauder as Company Associated Architects would be in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for professional design services for the project entitled Multi-Purpose Facility Refrigeration be awarded to Architects Alaska/K lauder as Company Associated Architects for the not-to-exceed amount of $90,000. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 4th day of April 2001. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Cler~,;~ Approved by Finance: Suggested by: Administrah~,,, City of Kenai RESOLUTION NO. 2001-22 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALAStC~ TRANSFERRING $3,500 IN THE WELLHOUSE #4 CAPITAL PROJECT FUND FOR SURVEY WORK TO LOCATE EXISTING WATER WELLS. WHEREAS, survey work is required to locate existing water wells for the Wellhouse #4 project; and WHEREAS, this survey is required to complete the ground water study; and WHEREAS, funds are available in the capital project construction account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: Wellhouse #4 Capital Project Fund From: Construction $3,500 To: Engineering $3,500 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4th day of April, 2001. ATTEST' JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk Approved by Finance: (3/29/2001) jl · m · CITY OF KENAI PLANNING & ZONING COMMISSION AGENDA KENAI CITY COUNCIL CHAMBERS March 14, 2001 - 7:00 p.m. http: #www. cl. kenai, ak. us 1.' CALL TO ORDER: a. Roll Call b. Agenda Approval c. Approval of Minutes: February 28, 2001 d. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission 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. 2. SCHEDULED PUBLIC COMMENT: 3. CONSIDERATION OF PLATS: 4. PUBLIC HEARINGS: a. PZ01-10~An application for a Variance Permit from rear setback requirements for the property described as 1301 Equinox Way (Lot 16, Block 9, Inlet Woods Subdivision), Kenai, Alaska. Application submitted by Jason and Angie Daniels, P.O. Box 2295, Soldotna, Alaska. 5. OLD BUSINESS: e NEW BUSINESS: a. Request that Inlet Woods Subdivision lots be made available for sale. Determine if needed for public purpose. 7. PENDING ITEMS: 8. CODE ENFORCEMENT: e REPORTS: a. City Council b. Borough Planning c. Administration 10. PERSONS PRESENT NOT SCHEDULED: 11. INFORMATION ITEMS: 12. COMMISSION COMMENTS & QUESTIONS: 13. ADJOURNMENT: CITY OF KENAI PLANNING/k ZONING COMMISSION KENAI CITY 'COUNCIL CHAMBERS FEBRUARY 28, 2001 - 7:00 P.M. CHAIRMAN RON GOECKE, PRESIDING MINUTES ITEM 1' CALL TO ORDER Chairman Goecke called the meeting to order at 7'00 p.m. 1-a. Roll Call Members Present: Carl Glick, Phil BrySon, Ron Goecke, Barb Nord, Donald Erwin, Mike Morse, Amy Jackman Others Present- Councilman Bill Frazer, Public Works Manager Jack La Shot, Contract Secretary Barb Roper 1 -bo Agenda Approval MOTION: Commissioner Glick MOVED to approve the agenda and requested UNANIMOUS CONSENT. Commissioner Morse SECONDED the motion. There were no objections. SO ORDERED. I'ce Approval of Minutes: February 28, 2001 MOTION: Commissioner Bryson MOVED to approve the minutes of February 28,2001 and requested UNANIMOUS CONSENT. Commissioner Glick SECONDED the motion. There were no objections. SO ORDERED. 1 -do Consent Agenda - None ITEM 2' SCHEDULED PUBLIC COMMENT-- None ITEM 3' CONSIDERATION OF PLATS -- None ITEM 4: PUBLIC HEARINGS PZ01-10 -- An application for a Variance Permit from rear setback requirements for the property described as 1301 Equinox Way {Lot 16, Block 9, Inlet Woods Subdivision), Kenai, Alaska. Application submitted by Jason and Angle Daniels, P.O. Box 2295, Soldotna, Alaska. MOTION: Commissioner Glick MOVED to approve PZ01-10 and Commissioner Morse SECONDED the motion. There was no public comment. Commissioner Bryson indicated it appeared to be the situation when there is double lot frontage on modest-sized lots. VOTE: Bryson Yes Erwin Yes Glick Yes Nord Yes Morse Yes Jackman Yes Goecke Yes MOTION PASSED UNANIMOUSLY. ITEM 5: OLD BUSINESS-- None ITEM 6' NEW BUSINESS Request that Inlet Woods Subdivision lots be made available for sale. Determine if needed for public purpose. Chairman Goecke drew attention to the Parks & Recreation Commission recommendation regarding the lots in Inlet Woods Subdivision. The recommendation was contained in the unapproved minutes included in the meeting packet. Public Works Manager La Shot explained it would be the recommendation of Administration that Lots 21 through 25 be retained for drainage purposes. This would still leave seven lots that would not be affected by the pond. Commissioner Nord reported the Beautification Committee had also discussed this particular area in great detail in regard to retaining it for a future park. Nord thought that perhaps not all lots should be retained for park use, however those located on the east side may be suitable. Commissioner Jackman asked if the area was suitable for a park and if that was the reason it was being held. La Shot replied, if the five lots were withheld, the City Manager would entertain giving the person the other lots and a use permit to go in and put fill and material around the edge of the pond so that it can be seeded. If that happens, then perhaps it would be suitable for park use. Nord Clarified, she was in favor of having lots 21 through 27 retained for a park so there could be some area for playground toys. Jackman asked if Administration thought there was ample space for such equipment. La Shot answered, he couldn't speak for Parks and Recreation, but PLANNING & ZONING COMMISSION MEETING MARCH 14, 2001 PAGE 2 thought they did envision a larger area than just the five lots. La Shot continued, there had been no views from the City AdminiStration on the issue other than all lots not affected by water should be made available for sale. Commissioner Bryson concurred with Parks and Recreation in that a buffer area is needed on both sides. MOTION: Commissioner Bryson MOVED to concur with the Parks and Recreation Commission that Lots 18 through 27 be retained for public purpose. Chairman Goecke stated that he wasn't totally convinced that he liked the idea of a pond being accessible for kids. Goecke considered the pond a safety hazard. Jackman again asked for clarification on whether the Commission should first determine whether the lots should be sold first then decide which ones should be held for public purpose. Goecke replied that if part of what the Commission did was against what Council decides, it wouldn't make any difference. Goecke added, the Commission should determine whether or not the lots should be made available for sale but the viewpoints should also be made known. Commissioner Bryson called for point of order, as there was'a motion on the floor without a second. Commissioner Nord SECONDED the motion. Bryson stated, the safety concerns were well founded, as there had been a problem with ignoring ponds. Bryson pointed out that there is no park development plan included, but thought that when there is one, consideration would be given to the pond and the safety issues. Councilman Frazer stated he talked with the proposed purchaser and it was noted the dirt from the pond area was hauled out and mounded on Lots 1-5 of Block 11. The proposed purchaser intends to move the dirt. back to the pond area. Frazer added, the drainage in that area didn't make the pond; it was just where the rainwater drains. Frazer continued, another consideratiOn would be if all of the lots on the backside were taken oul;, the remaining utilities would have to come down Backwood Avenue to serve Lots 14 and 1 in Block 10, and 1 through 5 in Block 11. Frazer added, the cost of those utilities would be borne by those lots instead of both sides of the street, so there would be some side effects on how these particular lots are treated. Goecke stated the cost of running power would be pretty minimal considering what's already there. Bryson stated the water and sewer was already in, the road was paved and street lights were in so it was likely they would run the shallow utilities along the side that they're serving rather than cut across so there wouldn't be much of a cost difference. Discussion took place on the lots requiring utilities and it was determined PLANNING & ZONING COMMISSION MEETING MARCH 14,2001 PAGE 3 there wouldn't be many that are affected. Further discussion took place on the depth of the pond and what those levels were at certain times of the year. VOTE: Erwin Yes Glick Yes Morse No Jackman No Goecke Yes Nord Bryson Yes Yes MOTION PASSED. ITEM 7: PENDING ITEMS -- None ITEM 8: CODE ENFORCEMENT -- None ITEM 9' REPORTS 9-a. City Council- Councilman Frazer reported that the agenda from the last council meeting was in the packet and he was available to answer any questions. 9-b. Borough Planning- Commissioner Bryson gave a report on the KPB Planning meeting held on Monday, March 12. 9-¢. Administration - Public Works Manager La Shot announced the RFP for the request for proposals for the update to the comprehensive plan had been sent out. ITEM 10' PERSONS PRESENT NOT SCHEDULED -- None ITEM 11' INFORMATION ITEMS 11-a. Wince-Corthell-Bryson correspondence regarding ADOT/PF Kenai River Bridge Access Road Pathway. ITEM 12- COMMISSION COMMENTS/h QUESTIONS Commissioner Jackman stated she thought the Commission's decision to not put lots up for sale in Inlet Woods properly addressed the safety issue concerns addressed during the Commission's discussion of the matter. She recommended that if those lots should be made available for sale, those issues be addressed. Jackman stated it was the duty of the Commission to come up with solutions to the problem and to have more positive guidance. Jackman reported she would not be present at the March 28th meeting. PLANNING & ZONING COMMISSION MEETING MARCH 14, 2001 PAGE 4 Commissioner Nord reported she would not be present at the March 28th meeting. Commissioner Morse agreed with Jackman regarding Inlet WOods and thought the Commission should recommend the property be made available for sale and then deal with the safety issue. Morse noted, there was a lot more property back there that might be more suitable for a park. Commissioner Nord addressed the safety issue in Inlet Woods and pointed out there were safety issues all over the country as well as many parks with water and ponds. Nord stated she envisioned the area being seeded and the pond is nice looking when there is water. Nord thought the area was a nice location for a park. Chairman Goecke agreed and thought that Council would read the minutes and their concerns would be brought to their attention. ITEM 13: ADJOURNMENT Commissioner Glick MOVED for adjournment. ORDERED. The meeting adjourned at 7'40 pm. Respectfully submitted, There were no objections. SO Barbara Roper, Contract Secretary PLANNING & ZONING COMMISSION MEETING MARCH 14, 20© 1 PAGE 5 KENAI CITY COUNCIL WORK SESSION FEBRUARY 15, 2001 CITY MANAGER SEARCH Council Present: Williams, Bookey, Swarner, Moore, Porter,' Bannock and Frazer Staff Present: Freas, Ross, Graves Others: Hal Smalley Council reviewed information received from AML ("How to Hire a Manager" from the AML, Newly Elected Officials Handbook) and "Format for Applicant Resume"; and "Criteria Sheet for Executive Director/Program Director Review" from the Kenai Peninsula College. Handout Comments' · The College's criteria sheet can be patterned after the job description used, adding the qualifications desired as the minimum standard. The AML information included an assessment suggestion' As part of the interviews, each candidate be given the same task and each present their findings to council and audience. Council liked this suggestion. . "Don't Ask" questions were reviewed. Scoring Comments' - . Bookey stated he would probably use his gut feeling in scoring candidates, however use a scoring mechanism as a guideline. · Scoring can be used to see whether the candidate qualifies for the job description and then the gut feeling is noted. · Moore noted he found the previous scoring mechanism very cumbersome, however in the end, his findings were close to everyone else, even though some didn't use the scoring mechanism. ~ Porter stated she never used a scoring system when doing her hiring. She was concerned that if a scoring mechanism was used, council would be tied into it and a candidate could compare scores and challenge the choice made. · Williams suggested using scoring for the first go-around and use the scoring mechanism to remember items about each candidate for later in the search. · Frazer suggested council needed to know what type of manager they were wanting in order to know how to score a person, i.e. marketing of the city, people skills/employee manager, financial, nuts and bolts type, etc. . Porter stated she believes council is looking for a manager/leader and some of the qualities that make a good leader. · · Ross stated leadership is vision (political leader) and finding consensus (manager leader). . Frazer stated references and background checks will bring out information that cannot be garnered from interviews and a scoring system. He agreed with Ross and believed they were looking for a manager that can handle people and get the consensus of the department heads, etc. · ' Bannock stated he had been frustrated with the previous scoring system. If they can all agree with the qualities for which they were searching, a simple one- page list could be developed with them included and used in the first phase of the search. The greater the number of applications received, the more broad range the first phase review would be. After the first phase is completed and council has the CITY COUNCIL WORK SESSION FEBRUARY 15, 2001 PAGE 2 number of applicants they want to go into a second phase, then review each application individually and much closer. · Ross noted he was reviewing the applications as they are received, determine whether they meet the minimum requirements. The applications are being kept in separate binders, those who meet minimums, those who don't. If when council reviews them, they each have the ability to move applications from the "not meet" to the "meet" binders. · ~ Swarner agreed with Bannock and suggested a one-page list be developed to be used during the process. She noted she would not be looking as heavily on municipal management experience as was done the last time because it's the management style and experience that is important. · Attorney Graves noted he believed a court would direct the city to release scoring sheets as public information. What type of manager desired:. . 2. 3. 4. Implement policy of council Supervision of department heads to deliver services Be an ombudsman to the public Resources for budget' management Use the first three things for the score sheet and other abilities (selling the city, involvement in Chamber, etc.) would be the tie-breakers. Skill-based questions will be used after that for interviewing (discuss the worst situation you were involved with a city council and how did you resolve it). In the past, problems have been with managers who couldn't do one of the things or a combination of the three. If more than 30 applicants, have the city manager review and sort them. If less than 30 applicants, council will review every one. As long as council gives him criteria, Ross will make a group pick, but wants council to look at the others too and be able to add applications back in. Graves will work with Ross in reviewing and sort out the top 30. Bannock asked if an applicant didn't pass every one of the tests by omission, would the council ask the person to provide more information. Porter stated she would not. Bookey stated only if the person was one of his top five and it would be up to a council member to convince other council members why to pursue someone not in the top five. Graves stated it would be appropriate to ask an applicant to expand on an issue. Ross suggested another option would be to hire a firm who generates specific reports. Kevin Ritchie (AML) has agreed to research it and would be doing some checking. Doing this could narrow down a group of four or five. Ross noted, after an application is received and found the person meets the minimum qualifications, a letter requesting supplemental information is sent. When the elimination process gets down to two/three individuals, an invitation would be made for the applicants to come to Kenai and bring a presentation for review. Ross CITY COUNCIL WORK SESSION FEBRUARY 15, 2001 PAGE 3 suggested the skill-baSed interview be done and then request a presentation be made on a specific subject, giving the applicant three or four hours to develop the presentation because the person should be knowledgeable about the town, the budget, etc. Ross stated he felt encouraged council would be able to find a good city manager. The city is in good financial shape; he's leaving the position because he wants to; there's a great atmosphere with council and employees, etc. Ross added, he was not aware of any big problems in the future other than the gravel pit situation on Beaver Loop and he has requested staff members to put together the issues and problems, narrow them down, and then speak to them during the update of the Comprehensive Plan. He also noted there are some overlapping grants that affect Municipal Park, but unless the Park is changed from a park in the next 20 years, he didn't think it was necessary to change anything at this time. Ross also noted there were still some DEC issues on the airport lands and shop yards. Porter asked, when getting down to discussing applicants in order to make a hire, are those discussions open to the public. Answer was yes, however if an executive session is used, an applicant has the right to be present during the executive session. Breakfast with Indust .ry Representatives: Williams noted he added several more to the invitation list, i.e. CIRCAC and CISPRI, Chamber officers, etc. Approximately 20 RSVP's had been received. It was noted there was no agenda for the breakfast, only a meet and greet situation. Swarner suggested keeping the group small and industry-based and have other breakfasts, etc. with other groups. Cunningham P .ark:. Williams reported he and Bookey met with owners of adjoining properties of Cunningham park to discuss purchase prices, etc. and then sent an informational letter to Representative Eldon Mulder in regard to acquisition of properties at Cunningham Park and the development of a boat ramp. Spur Highway Discussion: A very brief and general discussion followed in regard to the possibility of rezoning the Kenai Spur Highway, developing a core center of town, etc. Notes transcribed and submitted by: Carol L. Freas~ City Clerk KENAI CITY COUNCIL WORK SESSION FEBRUARY 22, 2001 Council Present: Staff. Present: Others Present: Bookey, Frazer, Porter, Moore, Swarner, Williams and Bannock Freas, Ross, Graves, La Shot, Komelis, Frates, Semmens Emily DeForest, Ethel Clausen, Leo Oberts, Rick Baldwin, Nate Kiel, Joel Anderson (ice rink consultant) Williams Opened the work session to explain the council scheduled the work session in order to discuss several capital improvement ideas prior to the budget work sessions. A memorandum was distributed with information on paving the parking areas of the Challenger Center and Multipurpose Facility, as well as refrigeration costs and alternatives. Multipurpose Facility/Ice Refrigeration: Joel Anderson was introduced and he explained he has been a consultant since 1978 and had contracted to do five finks in Alaska and 300 rinks over his career. He noted he had also worked on the Soldotna rink when it was updated. Anderson's comments included: · The multipurpose facility structure provides protection from weather and also has the advantage of cold weather helping to hold ice. · The cost estimates (included in the memo) were~accurate and close. * Commercial systems offer a cheaper first cost; are assembled in a rack; don't have as long a life expectancy; are not as durable; cost of replacement comes much sooner; and he didn't recommend them. · A refrigeration .system uses natural gas for running the engines and would be an assist system for ice; the amount of energy is high to start up. The Alaska systems he's installed were all industrial. · Outdoor temperature requirements for refrigerating ice has to be below 60 to 70 degrees. Synthetic ice is typically used in practice training rooms or displays for trying on skates. It is not normally used for regular use. · A commercial package has a five to seven year life by the manufacturer, but when good care is taken, it can last ten to fifteen years. This method uses a portable mat which is installed on either sand or on a concrete slab. The biggest issue is it doesn't lay flat after a few years and has to be moved each year and stored. · An industrial system offers a 30 year life, however some have lasted 40 to 50 years. This system is more costly to install, but has a much longer life. Direct refrigeration uses refrigerant and is installed into the floor. A problem arises if the refrigerant leaks out of the piping as it is acidic and eats the concrete. · Either direct or indirect refrigeration can be used in conjunction with an industrial system. · It would take approximately 24 weeks to install an industrial system. KIENAI CITY COUNCIL WORK SESSION FEBRUARY 22,2001 PAGE 2 Discussion followed regarding the LLC involvement with the facility and the process of removing them from responsibilities involved with the facility; whether it would be feasible to put a bond proposition on the ballot for $5 million to pay for the refrigeration, remove the LLC, build an expansion to the library, etc.. Discussion also took place of whether it would be necessary to hold a special election or wait until the October election. Councilman Bannock distributed a copY of a step plan he developed. He explained his plan would allow the city to move forward, first installing refrigeration in the facility to allow the LLC to sell ice so they wouldn't go backwards in their debt responsibilities, and there would be less urgency for the city to buy out the LLC. He added, he didn't believe a bond proposition would be successful and was concerned that if one~ failed, it would eliminate other options. Council discussion included: · It was suggested, because the .Borough's mil rate would decrease one mil, the city could raise its mil rate by one, which wouldn't show a large increase to property owners. · Ross reported he didn't think there was a need for a mil rate increase and felt comfortable the FY2002 operating budget could be maintained within the current mil rate. · The Inlet Woods bonds will be paid off in FY 2005. · Even if the LLC continues to maintain the ice etc., the city would still have expense responsibilities in utilities, employee time, etc. · Several of the council felt it was very important to buy out the LLC as soon as possible as the facility is a city facility, even though there is no obligation to buy them out. · It was suggested, with removing the LLC and the city doing the ice maintenance, scheduling, fee collection, and marketing,' one additional employee may need to be hired in the Parks Department. · It was noted, with refrigeration, hockey tournaments, camps, etc. could be held in Kenai which would be an increase in sales tax. Ross was requested to investigate impacts to the General Fund if the LLC is bought out; and the city installs refrigeration. Anderson is to furnish Parks &, Recreation Director Frates with operation costs in Alaska for outdoor rinks. Bond Propositions' Discussion followed in regard to the possibility of placing a bond issue on the October ballot that could include funds for the refrigeration and buying out the LLC; a library expansion (3,000-4,000 sq. ft.); paving of roads; and city's portion of coastal trail development. KENAI CITY COUNCIL WORK SESSION FEBRUARY 22,2001 PAGE 3 Pros and cons of several bond requests versus one larger bond request for several items was discussed. It was suggested that if one larger bond, those supporting of refrigeration would vote in favor and at the same time vote for a library expansion, etc. and visa versa. Advantages of putting a bond issue on the ballot were stated as (1) the city's debt load is low; .(2) the oil industry was looking positive; (3) the mind set of the community is different than in the past in regard to bonding. The suggested bond amount included: Library expansion Refrigeration / LLC Coastal Trail Paving $1.5 milliOn 1.1 1.5 1.9 $6.0 million Concerns were made about a bond issue of that amount and whether to group them together or keep them separated. It was suggested council discuss the matter with the public to see what reactions are received. Employee Residency: Swarner explained she requested City Attorney Graves to research the possibility of requiring city employees to live in the city limits. She noted, her question came as a result of a discussion she heard during the NLC Conference she recently attended. A brief discussion followed where it was noted the question was not a new one for the city as there had been a requirement prior to 1972. The policy was changed in 1972 or 1973 because the field of recruitment and selection was lowered by limiting the pool of applicants. If considered, the requirement would be for future hires and would not affect current employees. The work session ended at approximately 9:30 p.m. Notes transcribed and submitted by: Carol L. Freas, City Clerk AGENDA KENAI CITY COUNCIL- R~GULAR MEETING MARCH 21,2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http' //www. ci.kenai.ak.us ]COUNCIL STAFF MEETING: 6:00 P.M., Council Chambers] ITEM A: CALL TO ORDER 1. Pledge of Allegiance' 2. Roll Call 3. Agenda Approval 4. Consent Agenda *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. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) . Tim Navarre -- Proposed Privately-Owned Prison at Wildwood ITEM C' PUBLIC HEARINGS , Ordinance No. 1893-2001 -- Repealing the Current Sign Code, KMC 14.20.220 and Replacing It With a New Sign Code, KMC 14.20.220. a. c. Motion to Adopt Motion to Substitute Substitute Ordinance No. 1893-2001 -- Repealing the Current Sign Code, KMC 14.20.220 and Replacing It With a New Sign Code, KMC 14.20.220. Consideration of Ordinance. . Ordinance No. 1894-2001 -- Amending KMC 14.20.105(i) (Townsite Historic (TSH) Zoning DistriCt) to Reflect a Change in the Numbering of the New Sign Code KMC 14.20.220 Which is referenced in KMC 14.20.105(i). , Ordinance No. 1900-2001 -- Finding That Certain City-Owned Land Described as Block 3, Five Irons Heights Subdivision, Consisting of 4.391 Acres, as Shown on the Attached Exhibit A, is Not Required for a Public Purpose. , Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,607,137 in the ARFF/SRE Capital Project Fund. , , , ITEM D: . 2. 3. 4. 5. 6. 7. ITEM E: , ITEM F: ITEM G: ITEM H: o . . Co Motion to Adopt Motion to Substitute Substitute Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,130,973.70 in the ARFF/SRE Capital Project Fund. Consideration of Ordinance. Resolution No. 2001-18 -- Requesting FY 02 Safe Communities Funding From the Department of Community and Economic Development. Resolution No. 2001-19 -- Approving a Contract to G&S Construction, Inc. for the Project Entitled Kenai Airport ARFF/SRE Facility -2001 for the Total Amount of $3,716,383. Resolution No. 2001-20 -- Awarding a Contract for Construction Administration Services on the Project Entitled, Kenai Airport ARFF/SRE Facility to RIM Architects for the Not-To-Exceed Amount of $276,698. COMMISSION[ COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report MINUT~ *Verbatim of March 6,2001 Board of Adjustment Hearing. *Regular Meeting of March 7, 2001.' CORRF~PONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 1902-2001 -- Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund and Multipurpose Facility Capital Project Fund for Engineering Design of Upgrading the Facility for Refrigerated Ice and Miscellaneous Improvements. , . *Ordinance No. 1903-2001 -- Transferring $25,000 in the Airport Land System Special Revenue Fund and Increasing Estimated Revenues and Appropriations by $25,000 in the Comprehensive Plan Fund. *Ordinance No. 1904-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, As Shown on the Attached Exhibit A Map, Are Not Required for a Public Purpose. , *Ordinance No. 1905-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, as Shown on the Attached Exhibit A, Are Not Required for Public Purpose. o Approval-- Special Use Permit/Department of Natural Resources, Division of Forestry/Kenai Municipal Airport. Staging Site Aircraft Loading and Parking , Approval-- Lease Application/State of Alaska, Division of Forestry-- Unsurveyed Lot Approximately 392' x 400' Adjacent to the Future Crash/Fire/Rescue Facility at the Kenai Municipal Airport. , Approval-- Sale of 53 Undeveloped Lots in Inlet Woods Subdivision. 10. Discussion -- Alaska Small Business Conference 11. Discussion -- Multipurpose Facility Refrigeration Project Scope ITEM I: ADMINISTRATION REPORTS 1, Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM K: ADJOURNMENT ,, KENAI CITY COUNCIL- REGULAR MEETING MARCH 21,2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www, ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7'08 p.m. in the Council Chambers in the Kenai City Hall Building. A-X. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Moore, and Bannock. Present were' Frazer, Williams, Bookey, Swarner, Absent was: Porter A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-l, Pete Sprague -- Juvenile Detention Facility POSTPONE TO APRIL 4, 2001' C-4 and C-4b, Ordinance No. 1901-2001 C-6, Resolution No. 2001-19 C-7, Resolution No. 2001-20 -- Due to additional time needed for pre-award contract requirements. MOTION: Councilwoman Swarner MOVED to approve the agenda as amended and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 2 Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED.- ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) B-1. Pete Sprague -- As a member of the Kenai Peninsula Borough Assembly and Chair of the Juvenile Detention Facility Committee, Sprague reported Senator Ward had recently introduced SB 150 to appropriate $250,000 for engineering and design of the facility and $4',400,000 to construct it. The bill had been referred to the Finance Committee. He noted that whatever support the city would offer in regard to the bill would be greatly appreciated and thanked Lt. Jeff Kohler {Kenai Police Department) for his participation on the Committee. When asked if the bill included funds for operation of the facility, Sprague noted the issue had not yet been addressed, Councilman Moore noted council met with Lt. Governor Ulmer the week prior to this meeting and she had also voiced concerns that funding the operation of the facility was still needed. Moore suggested those concerns be forwarded to Senator Ward and request he amend his bill to include funding for operation of the facility. Williams suggested he and City Manager Ross write a letter and make the request. Tim Navarre -- Proposed Privately-Owned Prison at Wildwood. Navarre reviewed efforts being taken to investigate the possibility of a privately-run prison being built on the Kenai Peninsula. He noted, the issue was brought forward by the Kenai Natives Association, Inc. and efforts were being made to have the Legislature change their designation for the prison site from Delta Junction to the Kenai Peninsula. Navarre added, a Request for Qualifications was held to choose a team. Four bids were received and more than one included local contractors. The Assembly picked one and are now looking at a site at Wildwood. The Assembly has set three public hearings for their ordinance, as well as a public hearing before their Planning Commission. He invited council members and adrnJnis~afion to attend the special public hearing to be held at the Kenai Senior Center on March 27. Navarre urged the city's help in investigating the impact the prison would have on the city's water and sewer system. He noted, there had also been discussion of building a connecting road along the back of the airport to the Wildwood site in order to lessen the impact to the community when transporting prisoners. Navarre stated he would entertain the possibility of having a member of the city council to attend their meetings and brought a binder with copies of accumulated correspondence, etc. in regard to the prison project to be kept in the City Clerk's office and available for review. Updates of materials will also be forwarded as they become KENAI CITY COUNCIL ME~ING MARCH 21,2001 PAGE 3 available. He also noted, he appreciated the city's wanting the Commissioner of Corrections to meet with council and administration and suggested a joint meeting could be held to facilitate other experts or request certain studies. Navarre stated a lot more facts will be investigated. Bill Popp -- Explained there had been a perception that the BorOugh Assembly had been trying to fast track the project. He disagreed with .that perception and explained the project had a long way to go and they were trying to get the authority from the Legislature to place the prison at the Wildwood site. He added, what looked like a fast ' track actually wasn't, but a different way of achieving the same end, which was the construction of the prison if it was the will of the Kenai Peninsula Borough and the citizens of the borough. Popp noted, nothing would happen until the Legislature changes the location (SB 149). Navarre -- Explained concern had been voiced of whether halfway houses would be involved with placing the prison at Wildwood. He noted, there was nothing tied to the prison that says halfway houses would be required. A question and answer period followed with the following information noted: · Factual information in regard to the cost of beds in a state-run versus · privately-run facility had not been received by the Borough to date, but when it is received, they will forward it to the city. · One of the requirements of the state is to provide in-state beds by a certain date, however some waivers were granted and new requirement standards of policy is expected. · The state has to show a good-faith effort in meeting the deadline requirement, however 2003 is not a hard and fixed deadline. Councilman Bannock stated he believed"the development of another prison is the best defense in not having halfway houses because it would decrease the overcrowding of prison population and the need to move prisoners out into the public through halfway house programs. Navarre noted, there, had not been any packed houses in regard to public hearings held, he appreciated the city's not overreacting to the issue, and looked forward to working with the city in finding the fight solution. Ross asked what the time line was for when social impacts, water/sewer requirements, etc. will be discussed as the city would have to make a decision of whether to support the project or not. Navarre suggested city and borough administration discuss the matter together. Ross asked if the issue was at the stage that Police and Public Works should be working with borough administration to bring back information to the council for decision-making purposes. Navarre stated there was still lots of time and that the borough was not waiting until legislation was signed (to change the site) before starting to investigate the issue. He added, it would now be a good time to start staff discussions regarding water/sewer, land uses, etc. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 4 Williams explained the council was taking a slow approach, the suggested site is out of the city limits, and it may or may not impact the city water/sewer system. He added, thus far, there had not been an overwhelming outcry and he hoped there would be some major hearings to take public input. Williams also noted, council was waiting for information in regard to the state's specifications, whether it would be a minimum/medium facility, impacts to the city's utilities, etc. before taking a position. Williams stated he applauded the slow, methodical approach the borough was taking. On another matter, Williams requested permission from council to offer the use of the Senior Center at no charge for a gathering to remember Hugh Malone who had recently passed away. Council had no objections. ITEM C: PUBLIC HEARINGS C-1o Ordinance No. 1893-2001 -- Repealing the Current Sign Code, KMC 14.20.220 and Replacing It With a New Sign Code, KMC 14.20.220. C-la. MOTION: Motion to Adopt Councilman Bannock MOVED to adopt Ordinance No. 1893-2001 and Councilman Frazer SECONDED the motion. C-lb. Motion to Substitute -- Substitute Ordinance No. 1893-2001 -- Repealing the Current Sign Code, KMC 14.20.220 and Replacing It With a New Sign Code, KMC 14.20.220. MOTION TO SUBSTITUTE: Councilman Bannock MOVED to substitute the ordinance with Ordinance No. 1893- 2001 marked as C-lb and Councilman Frazer SECONDED the motion. C-lc. Consideration of Ordinance. There were no public comments. The following issues were discussed: · Off-premises signs, i.e. garage sales, parades, non-profit businesses advertising {Thrift Store, Boy Scout Breakfast, school carnivals, etc). It was explained, Item (b)(1)(F) and (M) had not changed from the current code, but had not been enforced. Concern was noted that the requirement existed, but was not enforced. Having the garage sale sign include the name and address of the person hosting the sale on the sign was a good idea. It was noted that off-premises signs are illegal unless there is a variance acquired, which is the same as the current code (and included garage sale signs, etc.). There was also desire to allow off-premises signs that would be advertising events for one or two days (school carnivals, etc.) ' -KEN~ CITY COUNCIL MEETINGMARCH 21,2001 -PAGE 5 · Item (c)(3)(H) -- It was noted a review of the language was needed and minor corrections made to read more clearly. · Request was made to disallow signs (political, non-profit, etc.) placed at city parks. Concern was stated that if posting a sign in a park was illegal, how would temporary signs be addressed for picnics, political rallies, Union Labor Day picnics, etc. · Attorney Graves noted, prohibited signs are prohibited by use and by the type of sign and he preferred adding a proviso that garage sale signs are permitted within the time limit set forth in the code. A break was taken to allow time for the development of language to add to the ordinances to allow garage sale signs, school carnivals signs, etc. BREAK TAKEN: 8:15 P.M. BACK TO ORDER: 8:35 P.M. · Off-premise§, non-commercial signs. Attorney Graves explained off- premises signs to advertise school carnivals, etc. would be considered non-commercial event sign and are allowable. · Reader-board signs. It was explained that as long as they were a commercial and advertising a non-commercial venture, they would be legal. · Electronic, computer-driven reader-board signs on educational institutions. They are prohibited in residential zones without a variance and are limited to 32 square feet and allowed in commercial and industrial zones. Signs are addressed by zone. · In most cases, there are generally enough provisions for a person to request a variance or conditional use permit, if the sign desired does not match the specifications of the code. Additionally, those objecting to the placement of a sign in an area would have the ability to speak to their objections in a public forum. MOTION TO AMEND: Councilwoman Swarner MOVED to amend Item (b)(2)(F) to read, "Temporary signs of not more than five {5) square feet advertising such items as "yard see," garage see," "house for sale," or "open house," may be displayed for one week..." Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. MOTION TO AMEND: Councilwoman Swamer MOVED to amend Item (b)(3)(M) to read, "No off premises commercial advertising signs, except as allowed in Section (b)(1)(F), including billboards except at an outdoor sporting event, sports facility, or sports field." Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 6 MOTION TO AMEND: CouncilwOman Swamer MOVED to amend Item (c)(1)(G) as follows: "Temporary signs of not more than five (5) square feet advertising such items as "yard sale, .... garage sale, .... property for sale," "open house," or "lemonade" may be displayed for one week..." Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. It was requested to use "property for sale" instead of "house for sale" in Item (b)(1)(F) as well. There were no objections. MOTION TO AMEND- Councilwoman Swarner MOVED to amend Item (c)(3)(N) as follows: "No off premises commercial advertising signs, except as allowed under Section (c)(1)(G), including billboards except an outdoor sporting event, sports facility or sports field. Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. VOTE ON MAIN AMENDED MOTION: VOTE: Frazer: Swarner: l~annock: Yes Yes Yes Williams: Moore: Yes Bookey: Yes Porter: MOTION PASSED UNANIMOUSLY. Yes Absent C-2. Ordinance No. 1894-2001 -- Amending KMC 14.20.105(i) (Townsite Historic (TSH) Zoning District) to Reflect a Change in the Numbering of the New Sign Code KMC 14.20.220 Which is referenced in KMC 14.20.105(i). MOTION: Councilman Bannock MOVED for adoption of Ordinance No. 1894-2001 and Councilman Frazer SECONDED the motion. There were no public or council comments. VOTE: Frazer: Swarner: Bannock: Yes Yes yes Williams' Yes Moore: Yes IBookey: Porter: Yes Absent KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 7 MOTION PASSED UNANIMOUSLY. Ordinance No. 1900-2001 -- Finding That Certain City-Owned Land Described as Block 3, Five Irons Heights Subdivision, Consisting of 4.391 Acres, as Shown on the Attached Exhibit A, is Not Required for a Public Purpose. MOTION: Councilman Bannock MOVED for adoption of Ordinance No. 1900-2001 and Councilman Frazer SECONDED the motion. There were no public comments. It was questioned v~hat kind of development was planned for the property. Ross explained, the person requesting the property be made available for sale was not specific and that if council approved the resolution, the next step would be to bring sale documents to them for approval. Ross also noted, the property was presently zoned recreation and would require a minimum lot size of 20,000 square feet, which would allow up to three-family homes per lot or up to 27 residences on the four+ acreage, without going to Planning & Zoning Commission for pre-approval, other than their approval of the plat. Concern was expressed there was no information as to what was planned to be developed on the property. Ross explained, passage of the ordinance would not authorize the sale, only make the properties available for sale. Council would have another opportunity to discuss the use of the property or place restrictions on it. If the property is put up for sale, it would be by competitive bid. Graves noted council could sell the property as fee-simple with a reversionary clause and stipulate it must be developed within a certain amount of time or as the property owner, council could include covenants on the plat restricting development. Because the terms of a sale had not yet been set, administration could draw up covenants, have the zoning changed, etc., prior to the sale. Discussion followed in which Frazer emphasized the property was very desirable for residential development and he didn't understand the hesitancy to make it available for sale. Bookey stated his concerns were not making it available for sale, but whether the city would be getting the highest and best use of the property as well as wanting the property to be developed within a set amount of time so the property could not be held for a long period without development. At this time, that information was not available. The bid would require fair market value for a recreational zone, but it was not known what that value' would be if it were a residential zone. RoSs noted this portion of the golf course properties was not included in the BOR restrictions. When the sales documents are prepared, the zoning, how it should be developed, restrictions, covenants, etc. could then be discussed, as well as have the applicant (who may not be the winning bid) explain his plans for the property. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 8 ' Whether a full-size water main or service lines would be needed for taking water service to the property would need to be reviewed. VOTE: Frazer: lYes Swarner: Yes Bannock: . Yes Williams: Moore: Yes Booke¥: Yes Yes Porter: Absent MOTION PASSED UNANIMOUSLY. C-4. Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,607,137 in the ARFF/SRE Capital Project Fund. Postponed until April 4, 2001. Motion to Adopt Motion to Substitute Substitute Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,130,973.70 in the ARFF/SRE Capital Project Fund. Postponed until April 4, 2001. Resolution No. 2001-18 -- Requesting FY 02 Safe Communities Funding From the Department of Community and Economic Development. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-18 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. Resolution No. 2001-19 -- Approving a Contract to G&S Construction, Inc. for the Project Entitled Kenai Airport ARFF/SRE Facility -2001 for the Total Amount of $3,716,383. Postponed to April 4, 2001. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 9 Resolution No. 2001-20 -- Awarding a Contract for Construction Administration Services on the Project Entitled, Kenai Airport ARFF/SRE Facility to RIM Architects for the Not-To-Exceed Amount of $276,698. Postponed to April 4,2001. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging-- Director Kelso noted the minutes of the March 12 meeting were included in the packet. She reported that during the meeting, the suggested meal donation was raised to $4.00 a meal and that the idea of an assisted living facility being built in the community was still strong in the minds of the seniors. D-2. Airport Commission -- Councilman Frazer reported he attended the meeting for Councilwoman Swarner and the minutes of the meeting were included in the packet. He noted a lease and two Special Use Permit applications, submitted by the Department of Forestry, were recommended for approval. · Swarner noted she spoke to the Airport Manager in regard to a recent seminar she attended regarding strategic and visual planning. D-3. Harbor Commission -- Councilman Bookey reported the minutes of the March 12 meeting were included in the packet and the main topics of discussion were goals and objectives, as well as the Kenai Coastal Trail and dip net bill submitted by Representative Lancaster. D-4. Library Commission -- Councilman Moore reported the minutes of the March 6 meeting were included in the packet and the next meeting will be held on April 3,2001. D-5. Parks & Recreation Commission -- Councilman Frazer reported the minutes of the March 1 meeting were included in the packet and the next meeting will be held on April 5. D-6. Planning/l~ Zoning Commission -- Frazer reported he attended the meeting for Councilman Bannock at which a variance request had been approved. The Commission also discussed at length whether certain lots in the back of the Inlet Woods Subdivision needed to be kept for public purpose. City Manager Ross. explained the Commission chose to retain Lots 18-27 for public purpose, as did the Parks & Recreation Commission. He noted there were concerns the lots would be needed for drainage purposes for the pond that exists on the front of several of those lots. Ross reported he, Frates and La Shot looked at the property and recommended Lots 21-25, Block 12 be retained for public purpose (street drainage) and Lots 18-20 and 26-27, Block 12 be made available for sale. He noted, retaining KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 10 the five lots would allow drainage and an area for a park with a pond. agreed with administration's recommendation. Moore stated he D-7. Miscellaneous Commissions and Committ~s D-Ta. B~autiflcation Committ~ -- Councilman Frazer reported he attended the meeting for Councilwoman Swarner and noted the minutes of the meeting were included in the packet. He reported the Committee discussed a 2001 planting schedule, the City/Chamber clean-up to be held in May, and the Yard-of-the-Week program. D-Tb. Kenai Convention & Visitors Bureau Board-- Councilman Bookey reported the next Board meetin§ will be held on March 27. He also noted Executive Director Tarr apologized that due to staff shorta§e, she had not yet submitted their annual report and that a lot of effort was bein§ put into the "2001' A Fish Odyssey" program. D-7c. Alaska Municipal League Report -- Williams reported the AML had a dele§ation of nine members who attended the NLC Conference in Washington, DC. ITEM E: MINUTES E-1. Verbatim of March 6, 2001 Board of Adjustment Hearing. Regular Meeting of March 7, 2001. Approved by consent agenda. ITEM F: CORRESPONDENCE-- None. ITEM G: OLD BUSINESS-- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE I1 Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. H-3o Ordinance No. 1902-2001 -- Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund and Multipurpose Facility Capital Project Fund for Engineering Design of Upgrading the Facility for Refrigerated Ice and Miscellaneous Improvements. Introduced by consent agenda. H-4o Ordinance No. 1903-2001 -- Transferring $25,000 in the Airport Land System Specie Revenue Fund and Increasing Estimated Revenues and Appropriations by $25,000 in the Comprehensive Plan Fund. Introduced by consent agenda. Ordinance No. 1904-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, As Shown on the Attached Exhibit A Map, Are Not Required for a Public Purpose. Introduced by consent agenda. H-~o Ordinance No. 1905-2001 -- Finding That Certain City-Owned Lands Located in Inlet Woods Subdivision, as Shown on the Attached Exhibit A, Are Not Required for Public Purpose. Introduced by consent agenda. H-7o Approval-- Special Use Permit/Department of Natural Resources, Division of Forestry/Kenai Municipal Airport. Ross reported both Special Use Permits had been reviewed and recommended for approval by the Airport Commission. Frazer noted, the permits and leased land (Item H-81 will be used for storage/staging, etc. of f'a'e suppression materials normally kept in Palmer. The Division of Forestry wants to have a presence in the area due to increased fire danger from the large beetle-kill spruce trees. H-7a. Staging Site MOTION: Councilman Bookey MOVED to approve the Division of Forestry's application for a Special Use Permit for a staging site at the Kenai Airport. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 12 Aircraft Loading and Parking MOTION: Councilman Bookey MOVED to approve the Division of Forestry's application for a Special Use Permit for aircraft loading and parking at the Kenai Airport. Councilman Moore 8F~ONDED the motion. There were no objections. $O ORDERED. H-8. Approval -- Lease Application/State of Alaska, Division of FOrestry --Un- Surveyed Lot Approximately 392' x 400' Adjacent to the Future Crash / Fire / Rescue Facility at the Kenai Municipal Airport. MOTION: Councilman Bookey MOVED to approve the Division of Forestry's application to lease the un-surveyed lot approximately 392' x 400' adjacent to the future Crash/Fire / Rescue Facility at the Kenai Municipal Airport. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-9. Approval -- Sale of 53 Undeveloped Lots in Inlet Woods Subdivision. Ross explained, the city received an application requesting the sale of 53 undeveloped lots in Inlet Woods Subdivision be initiated and noted portions of the appraisal report, subdivision covenants, and proposed sale documents were included in the packet. Swarner questioned whether the documents were stating zero lot line development would be allowed (page 8) and it was explained to her the covenants wouldn't modify zoning requirements and that all zero lot line development required conditional use permits in accordance with the Land Use Table. Concern was expressed the property would be purchased, tied up and not developed. Ross explained, administration attempted to protect the city in that it required a cash sale. He added, it would be difficult to include a requirement in a development table of how long a developer can hold onto property before it must be developed. A cash sale will force development of the property. MOTION: · Councilman Frazer MOVED to approve the sale of the 53 undeveloped lots in Inlet Woods as laid out in the sale documents by administration. Councilman Bannock SECONDED the motion. Bookey stated he would support the motion, but would be very disappointed if it 'would become a speculation situation. He added, he didn't believe development would be tied up and not developed in this instance, but believed the city should seriously investigate a required period of time for development. Moore stated he would also KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 13 support the sale because he believed development would take place and that · comments at the recent economic forum encouraged development of those lots. VOTE: Fr_azer: Yes Williams: [Yes Swarner: Yes Moore' I Yes Bannock: Yes B.ookey: Porter: Yes Absent MOTION PASSED UNANIMOUSLY. H-10. Discussion -- Alaska Small Business Conference Williams referred to information included in the packet regarding the Alliance North 2001 two-day conference (hosted by Senator Ted Stevens), designed to help small business owners become competitive in securing federal, state, and local government contracts. Williams suggested the city co-sponsor a table with the Kenai Chamber of Commerce at the conference and there were no objections from council. He also requested Ross talk with the Chamber Board to see if they would be interested in co- sponsoring a table. H-11. Discussion-- Multipurpose Facility Refrigeration Project Scope Ross referred to the memorandum from Public Works Manager La Shot which was included in the packet and discussed the basic bid and additive alternates, as well as the proposed project schedule for installing an industrial refrigeration system in the multipurpose facility. Consensus of council was for administration to proceed as outlined. ITEM I: ADMINISTRATION REPORTS,. Mayor -- Williams noted the following items: · Kenai Alternative High School request for donation toward graduation expenses. Council had no objections to forwarding the $300 included in their budget for this purpose. · Kenai Coastal Trail -- He and Vice Mayor Swamer traveled to Washington, DC to attend the NLC Conference and also met with Senator Stevens and staff members of Senator Murkowski and Congressman Young in regard to CARA funding for the Kenai Coastal Trail. Williams noted there were two different agendas in regard to appropriations and CARA funding between Stevens and Murkowski, although he felt Stevens was sympathetic to the city's needs. Williams continued, the amount of CARA funding thought to be available through the state had already been earmarked for other projects and of that amount, approximately $800,000 was left. It is now understood, full funding for the project KENAI CITY COUNCIL MEETING MARCH 2 l, 2001 PAGE 14 would now need to come from the Corps of Engineers (refer to it as an emergency · situation) and Department of Transportation (it will need to be designated as a trail or road project). Members of city administration, Paul Fuhs, Murkowski and Young staff (bringing the power of their offices) are to meet with Corps representatives to discuss the possibilities of getting help for the city's immediate needs. · Boat ltamp/Kenai River -- A packet of information deScribing the city's long desire to construct a boat ramp on the lower part of the Kenai River had been forwarded to several state legislators in regard to funding for the engineering. Williams noted he was disappointed to know only $800,000 was left of the state's CARA money and there was no guarantee further CARA funding would come available out of the next legislative session. He added, he believed the city needs to convince the Corps the project has to be done (pointing out the immediate danger of infrastructure, buildings, etc. that will be destroyed if restoration does not take place). Ross explained, CARA is no longer a set-aside to the states, but an annual funding program from the federal government. The project can be a named project in the future. Project funding could be received through several sources, i.e. the city will ask the Corps for funding as an erosion/stabilization project; CARA for the protection of public property and also protection and conservation of the wetlands around No-Name Creek; EDA for economic development of businesses in regard to the project; and TRAC funding from the Department of Transportation for the trail. Williams stated it was his understanding that if there was no assistance received from the Corps the city should return to Murkowski for assistance and that the city was still on track with the original plan for requesting funding. A meeting with Corps of Engineers in Anchorage would be held on Tuesday, March 27. Williams stated he would attend, as well as Paul Fuhs and Public Works Manager La Shot (for Komelis). I-2. City Manager -- Ross reviewed the following: · He will attend the meeting with environmental agencies on the unity trail which will be held on March 27 at Kenai City Hall. · He discussed south shore issues with Robert Ruffner (Kenai Watershed Forum). There is a possibility funding may be available for signage for placement in that area. · · The costs for advertising the Senior Center Director position opening came to. approximately $1,300. He approved a transfer of $999, allowed by code, and would approve another in the amount of $400 to cover the costs. Ross stated he would begin the process to amend the code to allow administrative transfers up to $2,500 unless there were objections from council. There were no objections stated. · Scott Walden was appointed Kenai Fire Chief. · .. He will be out of town March 15 and 16. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 15 · Williams thanked Finance Director Semmens for his help in building the presentation he made at the coastal communities conference he attended in British Columbia. He noted, the conference was much like the Alaska Municipal League and he learned more than what he presented. I-3. Attorney-- Attorney Graves reported the following: * A proposed definition for a "lodge, hotel and guide service" will be forwarded to the Planning & Zoning Commission in their next packet. · A memorandum was included in council's packet and would also be forwarded to the Planning & Zoning Commission in regard to SB78, a bill designed to limit municipalities' ability to regulate amateur radio antennas. · He will be attending a class on computer-aided research on March 28. I-4. City Clerk -- Clerk Freas noted the following: · Invitations to the' Volunteer Reception were on the table for council. · A notice regarding the AML Legislative Committee Meeting to be held in Juneau March 28-29 was on the table for council. · Census 2000 population information was also on the table for council. It was also noted, the city's population was numbered at 6,942, less than what the State Revenue Sharing Determination numbers. I-5o Finance Director-- No report. I-6. Public Works Managers La Shot: Reminded council of the Kenai River Bridge Access Road Pathway meeting to , be held on March 27 at Kenai City Hall. I-7o Airport Manager Acting Airport'Manager Davis reported the flooring contractor reviewed the job and will be ordering materials. The work should begin April 6. ITEM J' DISCUSSION J-Xo Citizens-- None J-2. Council Bookey-- No comments. Swarner-- Requested administration to investigate the trailer on Redoubt Avenue with trailer skirting in regard to junk vehicles in the yard. Swarner also thanked council to a/low her to travel to Washington, DC for the NLC Conference. She particularly enjoyed the leadership seminar she attended and urged council to give some thought to what they would like the city to look like and how to make it happen. KENAI CITY COUNCIL MEETING MARCH 21,2001 PAGE 16 Moore -- No comments. Bannock -- Thanked council for passing the new sign code ordinance and complimented the Planning & Zoning Commission and administration for their efforts. Frazer-- No comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10'35 p.m. Minutes transcribed and prepared by'. Carol L. Freas, City Clerk CITY OF KENA! 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ M emoranClum Date: To: Froml March 29, 2001 Kenai City council Richard A. Ross, City Manager Sale of Block 3, Five Irons Heights Subdivision The parcel cited above has been declared not needed for a public purpose. A request for initiation of public sale of the property has been received. Prior to ordering of the appraisal and preparation of sale documents Council needs to give direction on several issues, including whether they want to sell the property at this time. o , Council has discussed that covenants may be needed to assure, proper development of the parcel. Other than building size, what other specific covenants would' we want to develop and record against the property prior to appraisal and sale? Any covenants or deed restrictions need to be developed and recorded prior to appraisal. The initiator of the sale request does not have a defined and specific development schedule for the property. Some on Council have indicated that a sale should result in development and not a speculative holding of the property. In the case of the 53 lots in Inlet Woods a requirement of a cash sale was an attempt to achieve this result. The sale applicant of Block 3, Five Irons Height Subdivision stated a preference for a sale on terms. Does Council want to authorize a term sale of the property? Does Council want a cash sale with a development reversionary clause as was suggested at the last meeting?. Discussions in Paragraph 4 should be considered in making this decision. o Gas, electric and phone extensions are generally the responsibility of the developer. The City as the developer and sub-divider of Blocks 1 and 2, Five Irons Heights Subdivision, provided utilities, and the appraisal of the properties reflected this. In the case of Block 3, selling it "as is" would result Kenai City Council March 29, 2001 Page 2 of 3 o in an appraisal that reflects developer costs to be incurred. The Inlet Woods sale presently underway is an example of that. The Administration's recommendation is that the City proceed on the basis that the buyer of the property is the developer for purposes of those utility extensions. Does Council concur? The City Administration recommended to the City Council that this parcel be withheld from the 1998 Five Iron Heights Subdivision property sales. This was based on the high development costs associated with utility extensions, specifically water main line extension. It was our recommendation that we wait until after Wellouse 4 was developed and the main line extended as part of a DEC funded project before this property was put on the market. It is still the Administration's plan, and may be in the scope of the present $1.4 million capital project request for DEC funding, to have the water main extended down Lawton and up Swires Road for system tie in. This is planned regardless of the location of a new wellhouse. When this will occur is unknown, but there is growing legislative interest and support as it also impacts the proposed prison project. This background forms the basis for the following policy issues Council must decide that will affect the appraisal, sales documents, and timing of the sale of this property. (a) If an appraisal of the property "as is" is based on the buyer assuming responsibility for all development costs - road improvements, water main, and utility extensions, the appraisal will be lower than if these facilities were present. If sold on that basis, appraisal instructions and sale documents should clearly spell out that the buyer is responsible for installing these improvements and that they are to be installed at the buyer's expense. This would avoid confusion as to the City's financial participation, and the taxpayers possibly paying twice - once through reduced property value and the second through development participation. (b) If the sale is a non-cash sale that does not have a strong development . schedule, with a reversionary clause, what would prevent a speculative buyer from acquiring the property at a reduced appraisal value, and then waiting for the planned water line development? If the water line is fimded by DEC this would greatly enhance the property value to the buyer at a potential monetary loss to the City. (c) As was discussed at your last meeting, a declaration of the property as not needed for public purpose does not require you to sell the property at this time. Council could delay this decision until after determination of Kenai City Council March 29, 2001 Page 3 of 3 funding of the capital projects request is received. If Council determines to wait, the Administration would recommend that the appraisal also be delayed pending that decision. When the funding decision will be made is an unknown, but will no doubt be toward the end of this legislative session. The initiator of the sale request was also referred to Mr. Bright, Planning Director of the Kenai Peninsula Borough, to ascertain if they have development plans for Borough property across the street from the subject parcel. If Council determined to proceed with an "as is" appraisal and sale in which the buyer was responsible for improvements, there could be a cost savings to the successful buyer if the Borough participated in those development costs that also appreciated their property. z 0 0 I. IJ ~1 0 I.IJ IJ.I IJ.I 0 n, 0 LLI Z T 0 < z iii I-- z -f 0 n,' z 0 0 z z L~ 0 0 z LLI 0 0 · 0 n,' 0 2: · 0 i 0 o LU IJJ 0 iii iii w w w w Iii Z c~ i-c~ On,' Will I-- 0 LJJ r~ I-- W LIJ Suggested by: Administration CITY OF KENAI ORDINANCE NO. 1906-2001 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 7.25.020 TO INCREASE THE AMOUNT ALLOWED TO BE TRANSFERRED IN LINE ITEM ACCOUNTS WITHIN A FUND WITHOUT COUNCIL APPROVAL FROM LESS THAN $1,000 TO' LESS THAN $2,500 AND REMOVING THE LIMITATION ON TRANSFER AUTHORITY FROM PERSONAL SERVICES. WHEREAS, KMC 7.25.020 a/lows transfers of less than $1,000.00 in line item accounts within a fund without authority of council; and WHEREAS, that dollar amount was established in 1981 and has not been increased since then; and WHEREAS, in order to give the City Manager more flexibility in managing unexpected overtime expenditures, the limitation on transfers for personal services should be removed. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, Alaska, that KMC 7.25.020(a) is amended as follows: 7.25.020 City budget control. (a) After approval by the Finance Director as to availability of unencumbered balances, transfers in amounts less than [ONE THOUSAND ($1,000.00)] two thousand five hundred ($2,500) dollars may be made in line item accounts within a Fund without approval by the City Council. The City Clerk may make such transfers within the Department of the City Clerk, and the City Attorney may make such transfers within the Department of Law. The City Manager may make such transfers in all other areas except in the Legislative Department. [HOWEVER, NO TRANSFERS UNDER THE AUTHORITY GRANTED HEREIN MAY BE MADE TO OR FROM ACCOUNTS PERTAINING TO PERSONAL SERVICES.] PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18t~ day of April 2001. ATTEST: John J. Williams, Mayor Carol L. Freas, City Clerk Introduced: Adopted: Effective: April 4, 2001 April 18, 2001 May 18,2001 CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ Memorandum Date: To: From: March 29, 2001 Richard Ross, City Manager ~' Klm Howard, Assistant to City Manager Assignment of Lease- M. J. Grimm and R. J. Johnson - Lot 2, Block 5, Cook Inlet Industrial Air Park Ronald J. Johnson has requested approval of the attached Assignment of Lease. The property is located on Airport Drive. Mrs. Grimm is apparently quite ill and Mr. Johnson has Power of Attorney (a copy of which is on file at City Hall). The lease states any assignment requires the written consent of the City. The City Attorney has reviewed the documents and has no objections. The lessee is current in payments to the City and Borough. Does the Kenai City Council approve the Assignment of Lease? Cc' Ronald J. Johnson Attachments /kh Ronald J. Johnson Post Office Box 529 Kenni, Aknska 99611 Monday, March 26, 2001 Rick Ross City Manager City of Kenai 210 Fidalgo Street, Suite 200 Kenai, AK 99611 RECEIVED. mil ciTY' OF KENAI ADMINISTRATION RE: Lot 2, Block 5, Cook Inlet Industrial Air Park lease renegotiation Dear Mr. Ross, This letter is to request that M. J. Grimm be removed from the lease agreemem. Attached please find a copy'ofher Power of Attorney executed for this and other purposes. Please advise if any additional information is required. Thank you for you kind consideration. Fon 907 283 7755 e-mini ronj~ak-rep, com Fax 907 283 8103 ~ R. Graves , ~ily Nton~y CITY OF KENAI 210 F'idalgo Avenue Suite 200 Kenal, Alaska 99611-7794 (907) 283-7535 x225 FAX (907) 283-3014 CITY OF KENAI CONSENT TO ASSIGNMENT The Assignment of that certain lease dated April 21, 1977, and recorded , in Book 109, Page 881, Kenai Recording District, from M. J. GRIMM and R. J. JOHNSON, whose address is P. O. Box 529, Kenai, Alaska 99611, to R. J. JOHNSON, whose address is P.O. Box 529, Kenai, Alaska 99611, covering the following-described property: Lot Two (2), Block Five (5), Cook Inlet Industrial Air Park, according to Plat NO. K-1448; Recording District, Third Judicial · District, State of Alaska is hereby ACKNOWLEDGED AND APPROVED, subject to the same term: and conditions as contained in the original lease above-described. This Consent is given by the City of Kenai without waiving any right or action, or releasing the Assignor from any liability or responsibility under the aforementioned Lease, and does not relieve the Assignee from the condition requiring the City's approval for any subsequent sublease or assignment. Dated this day of ,2001. STATE O F ALASKA THIRD JUDICIAL DISTRICT Richard A. Ross City Manager THIS IS TO CERTIFY that on this day of ,2001, RICHARD A. ROSS, City Manager of the City of Kenai, Alaska, being known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires' A_~SIGNMENT OF LEASE This assignment is entered into between M.J. GRIMM and R.J. ,JOHNSON, P.O. Box 529, Kenai, Alaska 99611 (Assignors) and R.J. JOHNSON, P.O. Box $29, Kenai, Alaska 99611 (Assignee). Assignors do hereby assign and transfer all of their interest in the leasehold estate as evidenced by that certain Lease Agreement with the CITY OF KENAI as Lessor, dated April 21, 1977, and recorded dune 20, 1977, at Book 109, Page 881, Kenai Recording District, and covering the following- described property' Lot Two (2), Block Five (5), Cook Inlet Industrial Air Park, according to Plat No. K-1448; to Assignee to have and to hold the same from the date hereof, for and during all Of the remainder yet to come of the term of said Lease Agreement. Assignee agrees to comply fully with all the terms and provisions of the Lease, and to hold the Assignor harmless from any liability arising thereunder. IN WITNESS WHEREOF, the said Assignors have hereunto set their hands and seal this _ day of _, 2001. ASSIGNORS' By: M. J. Grimm By: R. J. Johnson ASSIGNEE' By' R. J. Johnson Cary R. Graves City Attorney CITY OF KENAI 210 F~lalgo Avenue Suite 200 Kenm, Alaska 99611-7794 (907) 283-7535 x225 FAX (907) 283-3014 Assignment of Lease - Page 1 of 2 STATE O F ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFY that on this _ day of ,2001, _, being personally known to me or having ~roduced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument. Notary Public for Alaska My Commission Expires: STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS I8 TO CERTIFY that on this day of ,2001, , being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument. Notary Public for Alaska My Commission Expires' STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFY that on this day of ,2001, _, being personally known to me or having produced satisfactory evidence of identification, appeared before me and.acknowledged the voluntary and authorized execution of the foregoing instrument. !R. Groves CITY OF' K£NAI 210 ~ Av~ S~ 2~ K~, ~ 9~1 ~ (~?) ~-~4 Assignment of Lease - Page 2 of 2 Notary Public for Alaska My Commission Expires: CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 M emoranClum Date: To.' From: March 29,2001 Richard Ross, City Manager Kim Howard, Assistant to City Manager Ass/gnrnents of Shore F/shery Leases- Tract A, City of Kenai Shore Fishery No. 1 ~¢t B, City of Kenai Shore Fishery No. I At the December 12, 2000 meeting, Council approved Assignments of Shore Fisher~ Leases for the above-described properties from Thad A. Carlson and Kendall H. Carlson to Ted d. Crookston. However, those transactions were never finalized. Attached is a new request for approval of the assignments to Boyd O. Campbell under the same terms. The leases state, "Lessee with City's prior written consent, which will not be unreasonably denied, may assign for other than collateral purposes, in whole or in part, its rights as Lessee hereunder." The City Attorney has reviewed the agreements and has no objections. The parties are current in all payments to the City and taxes to the Borough. If Council approves the transfers, the Consents to Assignment of Shore Fisher~ Lease agreements can be signed. Cc' Thad A. Carlson Chris Rodriguez, First American Title Attachments /kh 03/27/2001 12:53 4357525584 THAD A CARLSON PAGE 01 March 26, 2001 FROM: Kendall H. and Thad A. Carlson 567 East 1100 North Logan, Utah 84341 TO. Kenai City c/o Klm Howard 210 Fidalgo Ave., Ste 200 Kenai, AK 99611-7794 SUBJECT: Change of buyer for Shore Fishery Leases. ~ We are requesting aooroval for assignment of Fishery Lease's from KENDALL H. CARLSON (Tract B) and THA~ A. CARLSON (Tract A) ~o BOYD O. CAMPBELL. Kendall is selling his fish site, tools, equipment, permits and'leases to Boyd with a tentative closing: ct~te of April 15, 200 I. Please attach your copy of Tract A and B for the councils information. Thc assignment would be effective upon closing. Boyd is a retired plumber and lives in Logan, UT. He and Beverly own a summer home on the Kcnia River twelve and a half miles from Soldotna on the Funny River Road. Beverly (Bunny) is our cousin and they arc familiar with the fish ol~ration. Boyd's partner is Tim (', [zatt who has worked for us ibr thc past thirteen years, and is familiar with thc fishing business. Tim lived in Wasilla for four years prior to working for us. Hc is a Real Estate Broker in St. George, Utah. Tim owns property in Deep Creek, AK. Peggy Vannatta and Chris Rodrequez at First American Tide arc handling the closing for us in Kenai. Recording will follow closing. If you have an)' questions, please contact us at the above address at (435) 752-1680. Sincerely, KENDALL Il. CA R LSON CITY OF KENAI CONSENT TO ASSIGNMENT OF SHORE FISHERY LEASE Assignment of that certain lease dated March 1, 1996 and recorded in Book 0480, Page Kenai Recording District, from THAD A. CARLSON, whose address is 567 East 1100 Logan, Utah 84321, to BOYD O. CAMPBELL, whose address is 1648 NOrth 1770 Logan, Utah 84341 covering the following-described property: Tract A, City of Kenai Shore Fishery No. 1, as shown on Attachment "A", in the Kenai Recording District, Third Judicial District, State of Alaska hereby ACKNOWLEDGED AND APPROVED, subject to the same terms and conditions as · in the original lease above-described. .s Consent is given by the City of Kenai without waiving any fight or action, or releasing the ~r from any liability or responsibility Under the aforementioned Lease, and does not relieve Assignee from the condition requiting the City's approval for any subsequent sublease or · Dated this ~___ day of ,2001. Richard A. Ross City Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFY that on this _~__ day of ,2001, RICHARD A. ROSS, City Manager of the City of Kenai, Alaska, being personally known to me or having ,'d satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires' '~ R. Graves CITY OF KENAI 210 Fidalgo Avenue ~ AJaska 99611.7794 (gO7) 283-7636 x22S FAX (907) 283-3014 LIMITS · .o $89'56'01°W TRACT 1427,4.(Y ?R. ACT ' o 35B.5,.3 ~"~' IdHWL' -' t ANO BELIEVE- tT TO B¢. AN ACCURA? I SHORE FISHERY TRACT. TRACT NAME ADDRESS &: 5"IGN~' TRACT ' ;==" ":' ='~""' Attachment "A" . · · . o . o .. CITY OF KENAI CONSENT TO ASSIGNMENT OF SHORE FISHERY LEASE Assignment of that certain lease dated March 1, 1996 and recorded in Book 0480, Page Kenai Recording District, from KENDAL H. CARLSON, Individually, whose address is North State 20, Richmond, Utah 84333, to BOYD O. CAMPBELL whose address is 1648 North 1770 East, Logan, Utah 84341, covering the following-described property: Tract B, City of Kenai Shore Fishery No. 1, as shown on Attachment "A", in the Kenai Recording District, Third Judicial District, State of Alaska hereby ACKNOWLEDGED AND APPROVED, subject to the same terms and conditions as ~ntained in the original lease above-described. .s Consent is given by the City of Kenai without waiving any fight or action, or releasing the ~r from any liability or responsibility under the aforementioned Lease, and does not relieve Assignee from the condition requiting the City's approval for any subsequent sublease or · Dated this~ day of ,2001. Richard A. Ross City Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFY that on this ~~_ day of ,2001, RICHARD A. ROSS, City Manager of the City of Kenai, Alaska, being personally known to me or having ~duced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires' a~/R. Grave~ . City Altorney CITY OF KENAI 210 Fidalgo Avenue Suite 2OO '(9O7) 283-7,535 x225 FAX (9O7) 283-~4 · .,i.e.- Ti' LIMITS '. \ sBg'56'Ol"W TRACT . ' ......~,~ 1427.40' .)SB.~O ~v. /t MHWL. ..,9' HAVE I AND .==': l~"~,: ~T- '. SHOR--_-'~HERv "' TRACT "JAM~ . '% Attachment "A" 5;.-IERY · '~ ~CCURA~ April 2001 C'ZT~ ¢OUNC'J~L, COMMTS$'r'oN, COMM~'TTEE MEET'ZN~, SCHEDULE 15 22 Harbor Commis- sion, 7p, Coun- cil Chambers 16 23 30 3 Library Commis- sion, 7:30p, Library ]0 Beautification Committee, 7p, Council Chambers Budget Work Session, 7p, Kenai Senior Center 17 Budget Work Session, 7p, Kenai Senior Center 24 Budget Work Session, 7p, Kenai Senior Center (if needed) 4 CITY COUNCIL MEETING, 7p, Council Chambers 11 Planning & Zoning Comm- ission, 7p, Council Chambers 5 Parks & Recre- ation Commis- sion, 7p, Coun- cil Chambers 12 18 CITY COUNCIL MEETING, 7p, Council Chambers Airport Commis- sion, 7p, Coun- cil Chambers 19 25 Planning & Zoning Comm- ission, 7p, Council Chambers 26 Marc] S MT WT F S 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 13 20 27 Volunteer Recep. tion, 6-8p, Kenai Senior Center 14 21 28 May S MT WT F S 6 7 8 9 1o 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Pdnted by Calendar Creator Plus on 03/29/2001 . ,Tul¥ 2001 CZTY COUNC"ZL, COMMZ$$ZON, COMMTTTEE MEET'J:N6 SCHEDULE 15 22 3 Library Commis- sion, 7:30p, Library 9 Harbor Commis- Beautification 16 23 sion, 7p, Coun- cil Chambers Committee, 7p, Council Chambers 17 24 4 HOLIDAY/CITY OFFICES CLOSED CITY COUNCIL MEETING, 7p, Council Cham- bers (Reschedule?) 11 Planning & Zoning Comm- ission, 7p, Council Chambers 18 CITY COUNCIL MEETING, 7p, Council Chambers 5 Parks & Recre- ation Commis- sion, 7p, Coun- cil Chambers 12 Airport Commis- sion, 7p, Coun- cil Chambers 19 6 . 13 20 14 21 28 25 Planning & Zoning Comm- ission, 7p, Council Chambers 26 27 29 30 31 June S MT WT F S 3 4 5 6 7 8 9 1o 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 August S MT WT F S 5 6 7 8 9 1o 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Printed by Calendar Creator Plus on 03/29/2001 enai-Soldotna Women's Resource, & Crisis Center March 21, 2001 Mayor John Williams & City Council Representatives City of Kenai 210 Fidalgo Ave., Suite 200 Kenai, AK 99611 ~.' '-',:- Ty CLERK , Dear Mayor Williams & City Council Representatives, The Central Peninsula Domestic Violence/Sexual Aasault Task Force would like to cordially invite you to attend the Victim Impact Trainers Seminar on April 25 through April 27, 2001 at the Kenai River Center. This seminar is sponsored by the Department of Corrections. For your convenience please find enclosed a brochure outlining the seminar. registration form included. We request you register by April 17, 2001. Please use the We hope to see you at the Seminar. Sincerely, Cheri Smith CPDV/SA Task Force Enclosures: I brochure 325 South Spruce Street Kenai, Alaska 99611 Business Line... 283-9479 Crisis Line... 283-7257 all Department of Corrections Adult Probation 120 Trading Bay Drive Kenai, Alaska 99611 · o o ~ o ~ ~ ~) o ~ "" 0 "'q (1) 0 (1) 0 (1) ' mmmmmmmmm ~m,mm o m DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES OFFICE OF THE COMMISSIONER TONY KNOWLES, G 3132 CHANNEL DRIVE JUNEAU, ALASKA 99801-7898 TEXT' (907) 465-3652 FAX: (907) 58C~8365 PHONE: (907) 465-3900 March 22, 2001 Audrey Johnson North Peninsula Community Council P.O. Box 7011 Nikiski, Alaska 9963 5 Dear Ms. Johnson: Thank you for your letter concerning highway maintenance in the North Kenai/Nikiski area and the upcoming rehabilitation of the North Kenai Road. Governor Knowles asked me to respond to your concerns. Let me assure you that the Department of Transportation and Public Facilities is providing the best maintenance coverage it can within the resources it has available. In recent years, due to Legislative budget cuts, the Nikiski Maintenance Station went from a 3-person station to being closed outfight in 1999, and then to returned to a 3-person station last year, when the Legislature restored funding it had cut the previous year. As part of the closure of the station, the Department mined in some of our maintenance equipment to help meet the operating budget constraints. The Nikiski station is currently operating with 3 persons on the following shifts' One person working 7 AM to 5:30 PM Sunday through Wednesday · One person working 7 AM to 5:30 PM Wednesday through Saturday One person working 10 PM to 8:30 AM Monday through Thursday Only the day shift on Wednesday has two persons working. Additional maintenance .effort is provided through overtime or with assistance from the Soldotna Maintenance Station. The equipment currently located at Nikiski consists of one grader and one sander/plow truck. Prior to the closure of the Station, there were one grader and two sander/plow trucks. The two pieces of equipment currently at Nikiski are sufficient for the available staff. 25A- T34LH Audrey Johnson Page 2 March 22, 2001 In 2000, we were able to reopen the Nikiski Station after the Legislature reinstated funding for it and three other stations that were closed the previous year. We have cut administrative staff and operators, turned in equipment, and cut back on summer maintenance to meet'the reduced budget. We have also been aggressive in paving gravel roads, purchasing larger and more efficient equipment, and transferring upgraded roads to local governments all in an effort to reduce operating costs while maintaining an acceptable level of service. However, as more roads are reconstructed with additional travel lanes and wider shoulders, our maintenance responsibilities continued to grow, but our annual maintenance funding from the Legislature has not kept pace. If funding reductions continue, there is not much more we can do other than stop maintaining certain roads and closing maintenance facilities. This is not just a Nikiski problem; these are issues facing the Department and the traveling public statewide. " You also expressed concerns regarding the upcoming rehabilitation project on the North Kenai Road between the Bridge Access Road and Mile 22. It is my understanding that engineering tests have shown the embankment to be in very good condition. The pavement is old and failing in places. Maintenance forces have placed large patches on various sections of the road. Under our current construction project for this summer, the contractor will be required to fix all potholes and remove all cold patches. Once this is accomplished, they will place a 2-inch leveling course of asphalt over the entire length of the highway. They will then come back and place an additional 2 inches of asphalt as the final surface course. The end product will be at least 4 inches of new asphalt road surface, which is normally an appropriate method of rehabilitating the road. However,' in light of your concerns, I have asked Central RegiOn staff to survey the road again this spring to see how it fared over the winter. Based upon this review, we will decide whether the construction work needs to expand to include removing the existing pavement. I will have senior people conducting this review and they will set up a meeting with you to discuss the project and maintenance issues with you. In the interim, if you have any questions please contact David Eberle, Regional Director, Central Region of ADOT&PF. He may be reached at 907-269-0770. Thank you for. your concerns. Sincerely, 'ns, P.E. Commissioner Audrey Johnson Page 3 March 22, 2001 CC' Tony Knowles, Governor Senator John Torgerson Senator Jerry Ward Representative Mike Chenault Representative Ken Lancaster Mayor Dale Bagley, Kenai Peninsula BOrough Mayor John Williams, City of Kenai Jack Brown, Kenai Peninsula Borough Assembly INFORMATION ITEMS KENAI CITY COUNCIL MEETING APRIL 4, 2001 o 3/15/01 Governor Knowles thank-you note for plant. . 3 / 14 / 01 Rep. Lancaster thank-you letter for support of HB 93. . 3/15/01 ti. Shea thank-you letter for donation toward the Kenai River Festival 2OO 1. . 3/2001 Resource Development Council, Inc., Resource Review. GOVERNOR TONY KNOWLES March 15,2001 Dear Kenai City Council Members and Administration, Thanks for the wonderful plant and positive wishes for the outcome of the current Legislative session. I hope we can work with the folks downstairs towards constructive resolutions to Alaska's current issues and needs. Thanks again for your thoughtfulness. Sincerely, SESSION ADDRESS: State Capitol Juneau, Alaska 99801-1182 Phone (907) 465-2693 Toll Free 800-463-2693 Fax 907-465-3835 las a State £egisiature [NTERh'vI ADD~ 35477 Suite 101-B f Soldotna, Alaska Phone 907-260-5236 Fax 907-260-3044 (foh~ Williams, Mayor ~Kenai City Council Members City of Kenai 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 Dear John and Council Members: I want to thank you for the City of Kenai Resolution 2001-12 supporting House Bill 93. The bill had its first hearing on Monday, .March 14 and I used the resolution and the costs as part of my testimony. The bill did pass out of committee and will next surface in Resources. I appreciate the support from you and the City Council. If I can be of further assistance, let me know. Cordially, ~n L/~ancaster, Representative E-Mail: Representative_~Ken_Lancaster~legis.state.ak. us Cooper Landing · Bear Creek · Funny River · Hope · Moose Pass · Ridgeway o.Seward · Soldotna · Sterling Listening to you - Getting things done. KEN/II PO BOX,293? SOLDOTNA, ALASKA 99669 (907) 260-5449 ~,KENA{~ATE~HED,ORG March 16th, 2001 Mayor John Williams & City Council Members City of Kenai 210 Fidalgo Ave., Suite 200 Kenai AK 99611 Thank you! On behalf of the Kenai River Festival Organizing Committee, we would like to thank you for your support and generous donation of Sa00 towards Kenai River Festival 2001. Your donation will go a long way in keeping the Festival a vital part of our community. Please stop by the Festival which will be held on June 9th and 10th from l lam-6pm on Sat and noon to 7pm on Sun. The festival is located on the City of Kenai green strip, next to the ball fields on main street (across the hwy from the Kenai Visitor and Cultural Center). For the 2nd year in a row, we will be holding the Run for the River, foot race and walk which will be held Sat. at 10am. Additionally, the Kenai River Folk Dancers are again having an early evening Contra Dance on Saturday. We would love to see you there! Thank you again for your support. Without your help this great and growing festival would not be possible. Kelly Shea Fund Raising Committee for Kenai River Festival 2001 Kenai Watershed Forum P.O. Box 2937, Soldotna, AK 99669 P.S. The Kenai Watershed Forum is a 501(c)(3) tax-exempt institution (Tax ID ~t91-1829284) and this letter serves as a receipt of your donation in return for which you receive neither goods nor services. "GITIZENS WORKING TOGETHER FOR GOMMUNITY VITALITY IN A HEALTHY WATERSHED" · Phillips Alaska, Inc. 1 A periodic publication of the Resource Developm~l~o,uncil, Inc. Prudhoe Bay ca numbers are high Reco rd Ca ri bo U'' Recent surveys of the Central Arctic caribou herd near Prudhoe Bay shows herd numbers at their highest level ever. The Alaska Department of Fish and 'Game reports that the herd is now at ~..~27,128 animals, which compares to 19,700 in 1997 and a previous high of 24,000 in 1992. Some biologists believe caribou herd numbers are part of a natural fluctuating cycle. "In Alaska, some herds do appear to go up and down - some on a 20 year cycle while other herds fluctuate fairly erratically," said Pat Valkenberg, a research coordinator at Fish and Game. "Other herds, such as the Porcupine, have been remarkably stable," Valkenberg said. Caribou biologists agree that the fluctuations in herd numbers are at least partially weather-related and there's little doubt that predation plays a significant role. Most of the Arctic herds calve along the North Slope to escape wolves and other predators, as well as seek relief from insects. In general, caribou herds are doing well across Alaska. Caribou, at over "one million strong, outnumber humans ~in Alaska. The Central Arctic herd has grown more than seven fold since Prudhoe Bay development began in the mid- 1970s. Caribou from the Central Arctic herd graze in the Prudhoe Bay field. According to a recent state survey, herd numbers have increased seven fold since field develop- ment began 30 years ago. Central Arc~c Herd Population 1974 1978 1981 1983 1985 1938 1992 1995 1997 2000 'po-rt defines l's economic / ,/ m pact on state Spending tops $2.1 mil/ion annually A new study released last month revealed that the oil industry spends approximately $2.1 billion annually in Alaska, about equal to what the State 'spends through its general fund. The report, "The Economic Impact of the Oil and Gas Industry on Alaska," is the first statewide study that accurately captures oil and gas industry employment and spending impacts, it was commissioned by the Alaska Oil and Gas Association and the Alaska Support Industry Alliance. The study itself was conducted by Information Insights in Fairbanks and The McDoweli Group of Juneau. Key findings shOwed the industry directly spends $422 million on .. paYroll in Alaska and $1,7'billion on goods and services within the state. Overall, the' spending generates 33,600 jobs, .$1.4 billion in payroll and valued added to the Alaska economy of $1.8 billiOn, fOr a total output of $3.1 billion. The...' industry accounts for 20 percent 'of private sector payroll. Regionally, oil and gas is the largest industry in Anchorage, Fairbanks, Kenai and Vaidez, Activity from the industry creates more jobs for Mat-Su residents than .any other (Continued to. page-4) Message. from the EXecutive Director. by 'l'add Owens Barrow hosts 2nd Arctic economic summit Editor's Note: The following are comments Tadd Owens presented at the 2nd Arctic Economic Development Summit held in Barrow February 21-22. See page 6 for additional summit coverage. The Resource Development Coun- cil is proud to play a part in this very important event. As everyone knows, Alaska currently faces a host of challenges and difficult issues. How should a state long-term fiscal plan be constructed? How do we move forward on subsistence issues? How can we strengthen the ties between urban and rural Alaska? What obstacles exist to keep us from diversifying Alaska's economy? How do we improve our standard'of living? Can we grow the Resource Review is the official periodic publica- tion of the Resource Development Council (RDC), Alaska's largest privately funded nonprofit eco- nomic development organization working to de- velop Alaska's natural resources in an orderly manner and to create a broad-based, diversified economy while protecting and enhancing the envi- ronment. Executive Committee Officers president ........................... :.;. Robert B. Stiles Sr. Vice President ......... Charles W. Johnson ViCe: President ............................ Mark Hanley Secretary ........................................ Uwe Gross Treasurer ........................... , ..... ; ........... Stan Fcc PaSt President ............... '. ........... :.. Jim Branch · Staff : .~:; .... Executive Director .' ...................... :TaddOwens Deputy Director .... : ............ :_ CatI..R..Portrnan Projects Coodinator ..................... jason Brune Finance/Membership.. .......... :.,Billie Rae Gillas RDCis located at 121 W. Fireweed. Suite 250, Anchor- age~.:AK 99503, (907) 276-0700. Fax:.276;3887. Material in this publication may be reprinted without permission provided appropriate credit, is giVen. RDC,s' e, mail .address: reso, urces @ akrdc.org RDCs web. site address: www.akrdc.org Writer & Editor Carl:.Portman North Slope Borough Mayor George Ahmaogak said that development /n the Arctic must continue to be balanced with subsistence and preservation of traditional lifestyles. state's economy without compromising Alaska's unique heritage? I do not pretend to know the answers to these questions. It is my opinion, however, and the position of the Resource Development Council that these issues are best addressed together. From Ketchikan to Kiana, Anchorage to Barrow, Alaskans must work in concert to shape our state's future. As a statewide organization representing communities, industry, labor and Native regional and village corporations, RDC is well-suited to serve as a forum for spirited debate of these issues, to act as a clearinghouse of information and to work as a partner with our members in meeting the state's challenges. Urban and rural, public sector and private, Native and non-Native we must all continue to search for ways to better the quality of life for all Alaskans. Will we always agree? No. Will there be easy solutions? No. But by respecting each other and striving to understand each other's issues, we will move forward. I applaud the North Slope and Page 2 / RESOURCE REVIEW / March 2001 Students from Hopson Middle School in Barrow entertain summit delegates with a traditional Native dance. Northwest Arctic Boroughs for their work to organize and sponsor this summit. RDC has a long history of effectively partnering with the communities of the North Slope and Northwest Alaska We stand ready to serve and support your efforts to develop and diversify your regional economies. And we look forward to working with you to meet the challenges of the 21 st century. RDC is extremely proud to be a part of the Arctic Economic Development Summit. Quyanaqpaq. Thank you. Tadd Owens poses at a famous Barrow landmark on the shores of the Arctic Ocean. Thoughts from the 'resident · by Bob Stiles Alaska needs long-term fiscaiplan Last year's high oil prices mean the state will likely end the fiscal year with a budget surplus, but the good news won't last for long. With oil prices now falling to around $25 per barrel and expected to drop more, state revenue officials expect budget shortfalls to rule again, draining the $2.7 billion Constitutional Budget Reserve to zero in five years. With oil prices likely to average $24.28 a barrel for the new fiscal year begin- ning July 1, the state will need to tap $514 million from the fund. The draw from the budget-balancing reserve will top $716 million during the next budget cycle when oil prices are expected to fall to $22 a barrel. .. As prices moderate to lower levels, "~ ..,,!he CBR will eventually be exhausted, )'orcing the state to find a different means ~"to balance the budget and pay its bills. Recent high prices gave Alaska some breathing room, but the handwriting has been on the wall for some time. Just as we do with our personal financial affairs, Alaska needs to take action today to provide for its future. We need to have a serious discussion on a long- term fiscal plan and take action to en- sure our state is ready for the inevitable. There is no better time than now to craft the plan. Ideally, a well-balanced fiscal plan would encourage economic stability and maintain investor confidence in Alaska. The lack of a fiscal plan actually dis- courages new investment in our state and could ultimately undermine the economy by forcing business to go else- where, especially industries that are fearful of additional tax burdens. Broad-based taxes, including an income or sale tax, cutting the budget, and reducing Permanent Fund divi- dends could be part of the fiscal plan, but these actions do not bring new money into the system. The annual earnings reserve from the Permanent Fund could be a source of new money without affecting the size of the divi- dend, bringing in about $250 million a year. The proposed North Slope natural gas pipeline project could be another source of new money, generating about Cliff Taro, RDC board member, passes RDC Board member Cliff Taro passed away in Ketchikan January 3. He was born March 22, 1919 in Everett,. Washington. Mr. Taro first came to Alaska in 1943 as a sergeant in the U.S. Army Transportation Corps. He was stationed at Excursion Inlet near Juneau where he received first-hand experience and an interest in stevedoring. Mr. Taro graduated from the U.S. Army Transportation Officers School. After f~)ur years in the Army, he went to work for Everett Stevedoring in. 1946. He married his wife Nan in 1949 and they moved to Ketchikan in 1952, where they started Southeast Stevedoring Corp. Cliff Taro's accomplishments, interests and awards have been many and varied. In the interest of industrial safety for his employees, he was a member of the Marine Section of the National Safety Council for more than 25 years, as well as serving on the Board of Governors of the National Maritime Safety Association. --~)\lad Cliff was a member of the Alaska State Chamber of Commerce for 40 years, served on its board of directors for seven years and was vice president and president. He was awarded the "Outstanding Alaskan Award" and was elected to the Alaska Business Hall of Fame. He was the 2000 Ketchikan Chamber of Commerce Citizen of the Year. · $200 million to $400 million a year. Another source of new funds could be an increase in taxes on natural re- source industries, but that is risky as new taxes could put a chill through these sectors, discouraging new in- vestments. Eventually we'll need to come to grips with a plan that includes a mix of revenue sources and Perma- nent Fund earnings. The lack of a fiscal plan was among the chief concerns expressed by the state's movers and shakers in a recent survey of Alaska's top business groups, ranging from Commonwealth North and the State Chamber of Commerce to the Alaska Miners Association and RDC. Having accomplished the survey, these groups are working together toward the ultimate goal of creating a workable economic plan or a long-term fiscal policy. We should all be concerned about our state's slow growth, the lack of good jobs for our young people, erod- ing salaries and a lack of an economic strategy or fiscal plan. We Alaskans can find solutions to these problems. We have the tools, but do we have the will when oil prices are at $25 to $30 a barrel? It will take hard work to find the right solutions to these problems. If we fail, severe spending cuts and tax hikes could wreck the economy and send us into an entirely avoidable recession. Work on a long-range fiscal plan is one of RDC's top. priorities. We fully recognize that while there has been a fading sense of urgency to provide for additional reliable sources of income in light of higher oil prices, the problem has not vanished. It's about to come out of remission and look us directly in the face. Community groups like RDC, the State Chamber, Commonwealth North, the Alliance and many other organiza- tions from Barrow to Ketchikan will need to step forward. The first step is to engage in constructive dialog. Let's roll up our sleeves and get moving while there's still some breathing room. March 2001 / RESOURCE REVIEW / Page 3 Oil industry's economic footprint on Alaska outlined in new report (Continued from page 1) industry. More than one in four jobs in Kenai are oil and gas related. The industry accounts for 17 percent of Valdez area employment and 28 percent of the area's payroll. The new research was sparked by a similar study done for the Fairbanks area a year ago. "We knew that oil and gas plays a significant role in local economies across Alaska, but the results of the Fairbanks study were a real surprise," said AOGA Executive Director Judy Brady. :'The new statewide study reports regional impacts for Anchorage, Fairbanks, Kenai, Mat-Su, and Vaidez. with results that are just as eye-catching." Alliance General Manager Larry Houle said federal agencies seek this type of community impact information as they develop best interest findings and environmental impact statements for future oil and gas lease sales. In its own studies, the University of Alaska estimates that oil is responsible for 45 percent of the private economic activity across the entire state. The oil industry accounts for 75 percent of all state revenues which in turn fund public services, education and other programs. Economic Indicators From providing the vast majOrity of funds to operate state g(~vernment 'each year, to the millions it spendS' on charitable giving throughout the state, the oil industry overshadows all other non-government entities in its impacts on Alaska's economy. · Oil and Gas is Alaska's largest industry, generating 12 percent of all non-military payroll and 9 percent of all non-military jobs in the state. · The industry spends $2.1 billion annually in Alaska, roughly equal to the State's general fund budget spending. · Oil and gas activity creates 12 percent of private sector jobs and 20 percent of private sector pay- roll in Alaska. · The industry gives more than $10 million to Alaskan nonprofit organizations each year. · The average producer, company pays the highest average monthly wage in Alaska, $7,754, 2.8 times higher than the statewide average. Twenty percent of America's domestic oil production passes through the Port of Valdez. (Photo by Judy Patrick) RDC's Jason Brune testifies before the Anchorage Assembly supporting a plan that would allow Ted Stevens Anchorage International Airport to expand on to wetlands on its property. The airport won approval of the plan. RDC Photo Gaflery Photos by Jason Brune Anchorage Mayor George Wuerch and other RDC Board members meet with Andrew Lundquist on the formation cfa new domestic energy policy aimed at reducing America's reliance on foreign oil. The RDC Board met with Lundquist in Anchorage last month. Page 4 / RESOURCE REVIEW / March 2001 Key Bank President Mike Bums spoke to RDC last month on Alaska business opportunities in China. Joining Bums wer¢ Commissioner Debbie Sedwick of the Alaskz Department of Community and Economic Development and Chris yon imhof, Alyeska Resort. Editor's Note: in a 5-4 decision, the U.S. .S_..upreme Court ruled January 9th that the ""ny Corps of Engineers had nojurisdicfion ;egulate the filling of ponds on an Illinois landfill site. The decision has far-reaching impficafions for the Corps' regulation of wetlands under the Clean Water Act. For Alaska, the decision may provide a significant measure of relief on federal regulation of isolated wetlands not adjacent to navigable waters. Other environmental laws and authorities apply as a source of environmental protection. By Harold Johnson Pacific Legal Foundation In early January, the U.S. Supreme Court issued a landmark ruling limiting the scope of the Clean Water Act - or rather, insisting that federal regulators not misread the act in order to claim power that Congress didn't give them. At issue in the case of Solid Waste Agency of Northern Cook County (SWANCC) vs. Army Corps of Engineers, was the Corps' misuse of ' the federal Clean Water Act as a tool "~r a power grab, a license to second- )Jess land-use decisions that have ;- traditionally been local or private. For instance, more than a few property owners have been subjected to federal dictate merely because ruts or gullies on their land sometimes fill with rainwater, becoming "wetlands" under a fanciful bureaucratic definition. in a mandate for honesty in bureaucracy, the High Court at once called a halt to misinterpretations of the Clean Water Act and reaffirmed that land-use oversight rests primarily with local and state officials. The SWANCC case involved a proposed landfill for Chicago suburbs that is located on a former quarry where ponds and puddles sometimes form. it was these seasonal pools that the Army Corps of Engineers cited as justification, under the Clean Water Act, for intervening in the approval process. The state of Illinois had okayed _the landfill as environmentally sound. lut the Corps' intrusion scuttled the Croject. In January's SWANCC decision, a five-member majority of the Supreme High court ruling may give Alaskans regulatory relief in wetlands development Ruling may end Corps' jurisdiction on some wetlands Many wetlands in Alaska are isolated from navigable waters and exist because of permafrost. Court forced the feds out. The court did so by rejecting the Corps' rewriting of the Clean Water ACt- and warning other regulatory agencies against similar attempts to twist statutory language to expand their power. In a sense, a single word was at the root of the dispute: "navigable." The Clean Water Act gives the Corps authority over "navigable" waters. With breathtaking creativity, the Corps found in this word a warrant not only to clean up lakes and rivers, but also to regulate "streams, mudflats, sandflats, wetlands, sloughs, prairie potholes, wet meadows, lakes or natural ponds"- essentially, any puddle of water where use, or change in use, "could affect interstate commerce." How would a mere pothole or a mudflat rise to being a player in "interstate commerce," beckoning federal oversight? Under the agency's imaginative rationale, it was enough that a migratory bird might have touched down on a watery site on its way across the continent. The spinners at the Corps were brought back to earth with a thud by the SWANCC ruling. Chief Justice Rehnquist noted that the federal government's attorneys "point us to no persuasive evidence" that Congress intended "navigable" waters to mean isolated, "nonnavigable" waters. The Corps isn't the only agency that should be chastened. The Supreme Court put all federal regulators on notice against hot-rodding when it comes to interpreting their legal mandate, particularly where regulatory actions push the limits of federal authority. "Where an administrative interpretation of a statute invokes the outer limits of Congress' power, we expect a clear indication that Congress intended that result," the court declared. (Continued to page 6) March 2001 / RESOURCE REVIEW / Page 5 Wetlands ruling likely to provide regulatory relief to Alaskans (Continued from page 5) This assertive warning against regulatory excess makes SWANCC a landmark ruling. For John Braly, an executive with the California Cattlemen's Association, the slap-down of the Corps didn't come a moment too soon. Members of his group in California's Central Valley had been told they couldn't graze cattle or plant crops- "all because there were pools of winter rainwater on their ranch- land," he says. There are farmers, ranchers and other landowners across the country with similar stories. In Alaska, one effect of the SWANCC ruling is that federal intru- sion should be curbed in matters of permafrost wetlands, along with other isolated pools of water. Will clipping the Corps' wings endanger sites of genuine environmental importance, as some environmentalists warn? That concern assumes that state authorities in Alaska and elsewhere can't be trusted to protect sensitive areas. The SWANCC case itself suggests otherwise. illinois was hardly derelict in environmental responsibilities; it gave the landfill plan extensive scrutiny, including numerous public hearings, and required costly mitigation before granting approval. The SWANCC ruling nurtures an environment hospitable to freedom - by rejecting what amounts to a claim of a federal zoning power, and by telling unelected federal regulators that they must stay within the guardrails set by Congress and the Constitution. · Harold Johnson is an attorney with Pacific Legal Foundation, which filed a friend-of- the-court brief in the SWANCC case, on behalf of the California Cattlemen's Association. Mr. Johnson can be reached at HEJ@pacificlegal. org. RDC has worked closely with PLF on a number of issues impacting resource development and private property rights in Alaska. Arctic summit establishes new forward direction By Debbie Reinwand RDC Board Member Establishing forward direction and approving a variety of significant resource projects and initiatives were high on the list of those attending the 2nd Annual Arctic Economic Development Summit in Barrow on February 21 and 22. During the two days, nearly 500 people from across the North Slope and Northwest Arctic regions, as well as Anchorage and Juneau, attended part or all of the summit, which included keynote speeches by Governor Tony Knowles, Transportation Commissioner Joe Perkins, DNR Commissioner Pat Pourchot, Sen. Donny Olson and Rep. Reggie Joule. Panels examined critical topics including subsistence, rural energy solutions, education and training opportunities, the Alaska gas pipeline, and the status of existing projects. The summit endorsed nine resolutions that included: Support for opening ANWR; Support for an Alaska Highway gas pipeline route utilizing the mayor's port authority concept; Support for DeLong Mountain Terminal projects including port upgrades, airport and tank farm. The resolution also supported additional impact studies; Support for the Western Arctic Coal project; Northwest Arctic Borough Mayor Roswefl Schaeffer presents a gift he hand-crafted personally for North Slope Mayor George Ahmaogak, pictured at center. Page 6 / RESOURCE REVIEW / March 2001 Governor Tony Knowles told summit delegates that the North SIope's resources of oil and gas have made a tremendous contribution to Alaska's economy. His remarks focused on education, transportation and public health/safety. Development of a stakehold6 process for resource/economic projects that takes into account local concerns; Support for initiatives that reduce the cost of bulk fuel in the two regions; Support for education and training programs in the two regions, including the potential for alternative certification programs that would allow workers to access skilled jobs on resource/ economic projects; A commitment to preservation of traditional and cultural values; A commitment to pursuing avenues to protect the subsistence lifestyle of the two regions. The event was sponsored by the North Slope Borough, led by Mayor George Ahmaogak and Assembly President Molly Pederson, and the Northwest Arctic Borough, led by Mayor Roswell Schaeffer and Assembly President Larry Westlake. The summit provides an opportunity for Alaska business leaders, elected officials from the two regions, and th people of the North Slope and Northwest Arctic boroughs, to gather in rural Alaska to review upcoming issues and projects, and work together to reach consensus. RDC board makes the rounds in Juneau Senate President Rick Halford meets with the RDC delegation. RDC President Bob Stiles makes his point before Governor Knowles. Below, Marilyn Crockett meets with Fish & Game Commissioner Frank Rue and Ken Taylor. RDC Board members Mayor Dale Bagley of the Kenai Peninsula Borough and Mayor Sally Smith of Juneau meet with Governor Knowles and DNR Commissioner Pat Pourchot. as well as Ken Freeman, Special Assistant for business and gas development. Photos by Jason Brune Rep. Lesil McGuire and Rep. Gretchen Guess visit at an RDC luncheon forfreshman legislators hosted by Usibelli Coal Mine. RDC Board members Chuck Johnson and Ryan Lance discuss legislative issues. RDC Executive Director Tadd Owens and Board members Wendy Lindskoog and Jeff Foley discuss the need for a long-term fiscal plan with Rep. Bill Hudson. Chugach moves to intervene in roadless complaint Chugach Alaska Corporation and the Alaska Forest Association are seeking court permission to join the State of Alaska's lawsuit against the Clinton administration's regulations banning road building on 58.5 million acres of National Forest lands, including 98.9% of the 5.6 million acre Chugach National Forest. The lawsuit, filed in Anchorage Federal Court in January, seeks to permanently enjoin application of the rule by the federal government on the Chugach and Tongass National ~orests in Alaska. ~. Chugach, the Alaska Native regional corporation for coastal South- central Alaska, owns more tlqan 631,000 acres of land and mineral rights within the Chugach National Forest, making it by far the largest private landowner within the nation's second largest National Forest. Chugach obtained its landholdings within the Forest under provisions of the Alaska National Interest Lands Conservation Act. Chugach and the Alaska Forest Association, along with numerous other stakeholders, including RDC, spent three years participating in the Chugach National Forest Plan Revision process to ensure that the Forest would be managed in accordance with the federal government's promises made in ANILCA, both to private property owners and to the public at large. "The roadless rule is an insult to everyone who participated in the Plan revision process and a flagrant violation of the federal government's commitments to Alaska under AN I LCA," said Sheri Buretta, Chugach's Chairman of the Board. According to Rick Rogers, Chugach's Vice President of Lands, Resources and Tourism, "the roadless rule effectively terminates the ongoing Forest planning process by dictating only one possible land use for 98.9% of the Forest." The Alaska Forest Association, which represents 80 companies in the forest products industry, said the roadless policy would force more of its members out of business. March 2001 / RESOURCE REVIEW / Page 7 PHILLIPS Resource Development Council 121 W. Fireweed, Suite 250 Anchorage, AK 99503 ADDRESS SERVICE REQUESTED 6'1'*****'"*"*'**'*~5- DI GIT 99611 ~, OF K ..... JOHN WILLIAMS 2! 0 F! DALG© AVE .SYE £00 KENAI AK 99611-77~c4 ii,l,,i,i,,,ii,,,,,ii,,,lil,,,lt,,,il,l,,,i,,~,,,iiil,,,,ii,,i PRSRT STD J U.S. POSTAGE PAID ANCHORAGE, AK PERMITNO. 377 I I