HomeMy WebLinkAbout2002-11-04 Council PacketKenai
City Counci 1
Work Session
Revenues & Expenses / General
November
4, 2002
KENAI CITY COUNCIL WORK SESSION
NOVEMBER 4, 2002
KENAI CITY HALL
7:00 P.M.
GROUP "B" TOPICS:
REVENUF~ ~k EXPENSES[ GENERAL
o
2.
3.
4.
5.
6.
7.
8.
Personal property taxes
Senior housing rent increases
Dock operations
Deferred building maintenance
Old library and jail status
Boys & Girls Club Partnering
DOTP&F Maintenance Reductions
Maintenance of airport terminal
ADDITIONAL INFORMATION:
.
10/21 / 02 Work Session Notes
CITY OF KENAI
"Oil Capital of Alaska"
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE: 907-283-7535
FAX: 907-283-3014
MEMORANDUM
TO-
FROM:
Mayor Williams and City Council Members
Linda L. Snow, City Manager
DATE:
September 13, 2002
RE: Vintage Point Rent Increase
Pursuant to Council direction during FY04 budget discussions and in accordance
with KMC 7.15.100, the attached Vintage Point rent increases are scheduled to
become effective on January 1, 2003. The Council on Aging has reviewed the
recommended fees and voted unanimously to recommend them for
implementation. As you know from budget discussions, 'the rental rates were
raised by nine dollars in 1995 and have not been increased since.
Last year's rental revenue was $229,108. We are projecting increased revenue of
$22,952.00 as a result of these increases.
KENAI SENiOr CENTER
Helping People Age with Dignity
CITY OF 'KENAi
MEMORANDUM
TO:
FROM:
Linda Snow
City Manager
Rachael Craig Ct/
Senior Center Director
DATE:
September 8, 2002
REFERENCE:
Suggested Vintage Pointe Rent Increase
The Council on Aging met on Thursday, August 1, 2002. The Council on Aging voted
unanimously to suggest the following Vintage Pointe Senior Housing rental increase'
All one bedroom apartments would rent for $525.00, plus tax.
This increase would raise one bedroom apartments to all the same rate and the range of
increase would be from $11.00 to $71.00. We have ~ 1' one bedroom units.
All two bedroom apartments would rent for $595.00, plus tax.
This increase would raise two bedroom apartments to all the same rate and the range of
increase would be fi'om $21.00 to $69.00. We have .5 two bedroom units.
All one and a half bedroom apartments would rent for $585.00, plus tax.
This increase would raise one and half bedroom apartments to all the same rate, an
increase of $35.00. We have 3 one and half bedroom traits.
This would bring all the apartments to meet average market value on the Kenai Peninsula
Borough based from the AHFC Alaska rental survey 2002. Our apartments include gas
heat, water, garbage and cable. The tenants pay for electricity. There are six different
sized units. They range from 586 sq. t~. to 826sq ft.
I suggest we send letters to each of the residents making them aware of the rental
increase with rates going into effect January 1, 2003.
361 SENIOR COURT · KENAI, ALASKA 99611
TELEPHONE: (907) 283-4156 · FAX: (907) 283-3200 · E-mail: senior@ci.kenai.ak, us
KENAI SENIOR CENTER
Helping People Age with Dignity
CITY OF' KENA!
MEMORANDUM
TO:
FROM:
Linda Snow
City Manager
Rachael S. Craig
Senior Center Director
DATE:
October 29, 2002
REFERENCE:
Suggested Vintage Pointe Rent Increase
Rental Fees at the Senior Center
The Council on Aging met and voted unanimously to increase the rentals at Vintage
Pointe Senior Housing and the rental fees at the senior center.
I would like to make a suggested rate increase of $60.00. With a $60.00 increase the
revenue for the year would be $272,700.00 as compared to the current revenue of
$239,088.00; a difference of $33,612.00. The increase would bring all the apmments to
be the above average market value on the Kenai Peninsula Borough upon the AHFC
Alaska rental survey 2002. Our apartments include gas heat, water, sewer, garbage, and
cable; with the residents paying for electricity. There are six different sized units. They
range from 586sq. fi. to 826sq. fi. We all need to realize, the seniors are now exempt of
tax on their rental units.
I would recommend we send letters to each of the residents at Vintage Pointe Housing
making them aware of the rental increase that would become effective on January 1,
2003.
361 SENIOR COURT · KENAI, ALASKA 99611
TELEPHONE: (907) 283-4156 · FAX: (907) 283-3200 · E-MAIL: senior@ci.kenai.ak.us
The Council on Aging also voted unanimously to increase the rental fees of the senior
center. The following rates were suggested:
Current Rates
Suggested Increase
Main Dining Room
Kitchen
Podium
TV/VCR
Dividers
Dance Floor
Dishes (each place setting)
Each Additional Service Call
All of these include tax
Deposit-Dining Room
Deposit-Kitchen
$250.00 $300.00
$ 15.00 $ 20.00
$ 20.00 $ 50.00
no charge $ 50.00
no charge $ 50.00
$ 1.00 $ 1.25
$ 25.00 $ 50.00
$150.00 $175.00
$ 50.00 $ 90.00
These increased charges would become effective immediately to everyone who rents the
facility from November 1, 2002. Contracts that have been signed and in our possession
for rentals for the rest of 2002 and 2003 will be honored at the current rate.
Discussion -- Dock Restrictions
Kornelis requested the Commission briefly review a copy of the Bureau of Land
Management land deed for the area around the Kenai Dock; this deed has many
restrictions and allows only for small boat landing. Councilman Bookey informed the
Commission of past efforts to establish more uses in the area (outboard motor repair,
refreshment vendors, etc), and all requests have been denied.
~5-c. Discussion -- Kenai City Council Resolution Supporting a Separated
Pathway Along Bridge Access Road.
Kornelis informed the Commission of four minor changes in the verbiage of Resolution
2002-28 reaffirming its support of the State of Alaska DOT/PF in its effort to properly
construct a safe, separated pedestrian and bike path along the Bridge Access Road.
Councilman Bookey informed the Commission of the passage of this resolution at the
July 3, 2002 Council meeting.
ITEM 6:
NEW BUSINESS --None
ITEM 7: REPORTS
7-a. Director-- Kornelis reported on the following:
· Dip netting is opening Wednesday, July 7, 2002 from 6 am to 11 pm.
· The new Dock Rate Schedule went into effect on June 24, 2002. An Iron
Ranger will be placed at the parking area and a charge off $10.00 for launching and
$5.00 per extra vehicle will be collected and monitored by Kenai Dock employees,
Police Officers, and seasonal Parks and Recreation employees. The money collected
will go largely to paying for Port-a-Potties. Additional attention will be given to the
South Side area to help avert any concerns with the new rate schedule.
· The used-oil dumping fee is $1.00 per gallon. Kornelis stated that if the
City does not provide a service for this, oil if often left in dumpsters. The city shop
then burns the oil collected in the winter months.
7-b. Dock Foreman -- No report
7-c. City Council Liaison - Councilman Bookey provided a recap of recent
Council action items.
ITEM 8:
COMMISSIONER COMMENTS/QUESTIONS
Commissioner Simon requested another attempt be made to obtaining permission from
the Bureau of Land Management (BLM) for harbor property developments. Councilman
Bookey stated he would put this item on the agenda for Council discussion to see if
there is interest in pursuing dialog with BLM.
HARBOR COMMISSION MEETING
JULY 8, 2002
PAGE 2
KENAI HARBOR COMMISSION MEETING
AUGUST 12, 2002
KENAI COUNCIL CHAMBERS
7:00 P.M.
CHAIRMAN TOM THOMPSON, PRESIDING
MINUTES
ITEM 1:
CALL TO ORDER/k ROLL CALL
Commissioner Thompson called the meeting to order at 7'00 p.m.
confirmed as follows-
Roll was taken and
Present:
Thompson, Eldridge, Spracher, Rogers, Simon (in at 7'03 p.m.),
Foster (in at 7:15 p.m.), Barrett (in at 7'35 p.m.).
Others Present:
Councilman Bookey, Public Works Director Komelis, Dock
Manager Freden, Dockhand Lyn Disque, and Department
Assistant Harris
Public:
Randy Meier (R&J Seafood), Chris Garcia (Kenai), Richard King
(Mayflower Fisheries), Leonard Efta (Kenai), John Efta (Kenai)
ITEM 2:
AGENDA APPROVAL
MOTION:
Commissioner Eldridge MOVED to approve the agenda as presented and Commissioner
Rogers SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
APPROVAL OF MINUTES -- July 8, 2002
MOTION: '
Commissioner Spracher MOVED to approve the minutes as presented and
Commissioner Rogers SECONDED the motion. Chairman Thompson requested a
change in the first motion of the minutes of July 8, 2002 to reflect his absence. There
were no objections. SO ORDERED.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None
ITEM 5: OLD BUSINESS
--~a. Discussion -- Boating Facility Operating Alternatives
Chairman Thompson opened the discussion to public testimony.
Randy Meier- Co-Owner of R&J Seafood:
Meier informed the Commission of his upcoming lease expiration on September 30.
Due to the upcoming expiration, Meier stated he is unsure of his intent to renew his
lease due to the current financial instability of the Kenai Dock. The following dialogue
took place:
· Komelis provided a brief financial history of the Kenai Dock stating it
originally was a self-sustaining entity. Due to many variables, the dock has been
costing the City of Kenai an average of $70,000 a year for the last several years. The
City Council and Harbor Commission has begun looking at alternatives to cut the
deficit. But, no decisions have yet been made regarding a solution to the dock.
· Meier requested reviewing the financial records of the dock for the last
several years and was informed the public would be welcome to view these documents.
Additionally, Komelis stated that administration is completely open to any and all
suggestions.
· Meier inquired as to the possibility of obtaining federal funding or grants
to help with operating and maintenance costs to run the dock. Kornelis explained the
dock was originally built on grant funds, which have exclusion clauses regarding
money towards maintenance. Since the dock began losing money, the funds to make
up for the losses have come out of the general fund. Taxes collected on boat taxes, fuel
tax, Borough personal property tax, marine tax, and the federal highway tax all return
to the general fund.
· Meier suggested a change to the traffic flow at the dock ramp might
increase users. He stated the current ramp conditions are too small for the amount of
people using the facility. Komelis stated he has applied for a grant to add two
additional ramps, but has not yet received any notification.
· Meier inquired as to the possibility of obtaining land/facilities from
Dragnet.
The Commission discussed the possibility of trying to obtain permission from the
Bureau of Land Management for concessions or other possible money making ventures
at the dock. To date, BLM has been extremely restrictive, but the City Manager is once
again looking into seeking permission.
Chris Garcia (Kenai):
Garcia addressed the Commission and inquired if the City plans to sell or lease the
dock. Komelis stated, selling the dock is not an option, but will look at leasing the
dock, though maintenance could be'an issue.
Richard King [Mayflower Fisheries)'
King informed the Commission he has compiled a catalog of grant applications that
could possibly be used for the dock. He stated most, though, require a non-profit
group as the applicant. He suggested looking to the Kenaitze Tribe and the United
Cook Inlet Drift Association (UCID^I as possible .applicants on behalf of the dock. King
encouraged all to call him to discuss these possibilities and stated he would be willing
HARBOR COMMISSION MEETING
AUGUST 12, 2002
PAGE 2
to help in any way possible. King stated the next UCIDA meeting is September 13.
The Commission suggested inviting a member of UCIDA to the next Harbor
Commission meeting to discuss options.
Leonard Efta (Kenai)'
Efta stated all fishermen pay a boat parking tax, which is in addition to the Borough
property tax, but the fishermen don't seem to get much in return.
John Efta (Kenai)'
Efta requested a breakdown of dock expenses (labor, utilities, maintenance, etc).
Komelis stated he and anyone else is welcome to come to City Hall and can receive
copies of all the f'mancial documents they would like.
Lyn Disque (City_ of Kenai Dockhand):
Disque stated he and Swede Freden have kept an informal list of expenses for the last
several months and stated he finds it interesting that both taxes and revenue have
increased; yet the dock still loses money. Additionally, he stated the whole program
and intent of the dock has been changed as it was originally supposed to be a stand-
alone facility.
Swede Freden (Dock Foreman)'
Freden stated the dip netting has generated a lot of revenue, but a four-lane road and
launch area would make much more money. He stated people have a hard time
launching, turning around, and getting into the facility itself.
ITEM 6'
NEW' BUSINESS -- None
ITEM 7: REPORTS
7-a. Director-- Komelis reported on the following:
· Komelis provided the Commission with copies of the recent Peninsula
Clarion articles regarding the bluff erosion.
been pulled.
remaining.
occurred during the recent dipnetting fishery.
Dock Foreman- Freden reported on the following:
The majority of buoys for R&J, Richard, King, and the City of Kenai have
Three floats from the back of the dock have been pulled; two are
The majority of people had no problem paying, and few problems
Most problems occurred during low tide.
HARBOR COMMISSION MEETING
AUGUST 12, 2002
PAGE 3
KENAI HARBOR COMMISSION MEETING
SEPTEMBER 9, 2002
KENAI COUNCIL CHAMBERS
7:00 P.M.
CHAIRMAN TOM THOMPSON~ PRESIDING
MINUTES
ITEM 1:
CALL TO ORDER & ROLL CALL
Chairman Thompson called the meeting to order at 7:00 p.m.
confirmed as follows:
Roll was taken and
Present: Eldridge, Foster, Barrett, Simon, Spracher, Thompson
Absent: Rogers
Others Present: Finance Director Larry Semmens, Public Works Director Komelis,
Dock Manager Freden, Dockhand Lyn Disque, and Contract Secretary Roper
Public' Randy Meier (R&J Seafoods)
Komelis announced Councilman Bookey would not be at the meeting but he wanted to
pass on to the Harbor Commission would have one more meeting before the budget
work sessions, begin in October.
ITEM 2'
AGENDA APPROVAL
MOTION:
Commissioner Barrett MOVED to approve the agenda as presented and Commissioner
Eldridge SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
APPROVAL OF MINUTES -- August 12, 2002
MOTION:
Commissioner Barrett MOVED to approve the minutes as written and Commissioner
Spracher SECONDED the motion. There were no objections. SO ORDERED.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None
ITEM 5:
OLD BUSINESS
Discussion -- Boating Facility Operation Alternatives and Budget Review
Chairman Thompson opened the discussion to the boating facility budget information
that was included in the packet. Komelis provided an explanation of the budget
information and drew attention to the funds that were transferred from the General
Fund due to shortages in the boating facility budget. Komelis added, in 2003 the
money would come from the fund balance rather than the General Fund. Komelis
also explained the expenditures for dock operations. ~.
/-
Commissioner Barrett asked if the parking fees from the dip net fishery could be
credited to the Harbor budget. Finance Director Semmens indicated they can but it
would require a policy change. Semmens continued, the reason the revenue from the
parking fees go to the General Fund is because the fund is responsible for the expenses
incurred for the fishery. If there were a policy change to have the monies credited to
the harbor budget, then the harbor would have to take responsibility of the expenses.
It was noted, revenue for this year was approximately $37,000.00.
Commissioner Eldridge asked if the fish tax revenue also went to the General Fund.
Semmens confirmed they did because the General Fund paid for the expenses. It was
asked if the personal property tax on boats also went to the General Fund and
Semmens indicated all property taxes go to the General Fund. It was noted the total
revenue from boat personal property taxes was $26,000. Semmens added, $18,000 of
that figure was from commercial boats.
MOTION:
Commissioner Eldridge MOVED. to recommend, to Council the fish tax revenue and
personal property taxes on boats be allocated to the boating facility rather than the
General Fund. Commissioner Barrett SECONDED the motion.
Commissioner Barrett asked if the parking fees shouldn't be included in the motion
and Commissioner Eldridge recommended the two be kept separate.
VOTE:
There were no objections. SO ORDERED.
MOTION:
Commissioner Simon MOVED to recommend to Council the revenue from the parking
fees be allocated to the boating facility rather than the General Fund. Commissioner
Barrett SECONDED the motion.
VOTE:
There were no objections. SO ORDERED.
Commissioner Simon indicated she wasn't pleased with the lack of communication
between the Parks and Harbor Commissions and felt a ioint meeting should be
scheduled to discuss the dip net fishery and the operatLng costs involved. Simon
added, the recreational fishery activity is up and the commercial activity is down so the
City should make more provisions to deal with the demand. Simon recommended
more effort be made to go after grants and/or go to the State for more funding.
HARBOR COMMISSION MINUTES
SEPTEMBER 9, 2002
PAGE 2
Kornelis pointed out the Parks Department is very active with the dip net fishery as
they provide the staff to collect parking fees, clean the restrooms, empty the trash
dumpsters, etc. The Police Department provides an officer. Kornelis added, the State
also provides financial assistance each year for various items such as the kiosk, port-a-
potty maintenance, and the four-wheelers that allow the officers to police the dip net
areas.
Commissioner Barrett asked if the City could request funds as a federal economically
depressed area. Komelis replied, the City would not qualify due to the number of
residents with high-income levels. Simon stated Senator Ted Stevens was successful
in obtaining money to help the fishermen in the state regroup, perhaps the City should
contact the congressional office representative to see if some of those funds could be
obtained for Kenai.
Chairman Thompson stated, while reviewing the expenditures versus revenue, it
appeared that the dock did okay. Komelis noted there were a lot of expenses that are
not shown because of the budget year (July 1,t to June 30th); there are many other
expenses needing to be paid in the spring.
Thompson asked if there were any dock lease payments not yet collected. Komelis
noted the payment for the two leases had been paid. The amount paid was
$23,500.00. Discussion took place on the current leases and what would happen
should the City decide to lease the dock. Komelis stated that was a real problem and
the current lessee has commitments to buy and sell fish and would need a solid lease
term for planning purposes. It was noted the current lessee is not interested in a one-
year lease.
Discussion continued on the following topics:
· Commissioner Eldridge stated he wanted the facility to remain available
for the public and was not interested in a long-term lease should the City take that
route. Eldridge felt the term of the leases should be kept at three to five years.
· Eldridge thought the City should go out with an RFP to lease the boating
facility to determine whether or not there is any interest. Eldridge added, the RFP
should be for the dock and cranes only and the ramps should remain the responsibility
of the City. Eldridge continued, it appeared the most expense on the dock comes from
staffing it and that would be eliminated should someone come forth wanting to take
over. Several liability and safety questions were raised and discussed. Commissioner
Simon thought this was becoming a privatization issue for the dock and didn't think
anyone would actually bid the work and pay the City for something that has not
generated a lot of revenue.
· Commissioner Barrett asked about the feasibility of adding additional
ramps and lanes at the dock. Komelis replied, it was very unlikely and grants had
been applied for in the past. A lengthy discussion ensued regarding the current
congestion at the dock and possible solutions to the problem.
HA~OR COMMISSION MINUTES
SEPTEMBER 9, 2002
PAGE 3
· Commissioner Simon suggested a motion to support the feasibility of
adding two additional ramps at the dock be made. It was noted this was reviewed
previously and many problems wer~. encountered with the Corps and lack of property
in the area. Commissioner simon withdrew her motion.
Commissioner Simon suggested Dragnet Fisheries be contacted to see if
they would provide some of their property to accommodate an expansion of the parking
lot.
· Commissioner Barrett asked if aerie maps of the dock area could be
made available to provide a better idea of how an expansion could be made. Komelis
answered maps would be made available.
· Commissioner Eldridge thought there' were other groups within the
community who might be interested in the Dragnet property, the Arts Council being
one. Perhaps the City could joint venture with one of them to obtain a portion of the
property to accommodate an expansion.
Commissioner Simon asked about generating interest to use the dock for
other purposes such as timber. It was noted the dock is not designed to accommodate
the barges that would be needed to haul timbers.
· Commissioner Simon suggested if a date was set to shut the dock down it
might be the motivation needed to come up with a solution. Closing the dock was an
option that was suggested but not discussed in detail.
Randy Meier, R/hi Seafoods -- Indicated he is interested in continuing the lease but
not on a year-to-year basis as his business requires more time, but not a 25-year lease.
Meier asked, if the dock was privatized, what would be required from the lessee with
regard to maintenance, etc. Meier stated he didn't think anyone would come forward
to take over the dock. Semmens stated, if the dock was privatized the company would
not provide the same level of service the City provided. Semmens added, a company
may be able to run the dock at a breakeven point or actually pay the City if the level of
service was established before the dock was leased. Discussion took place on the other
users on the dock and Dock Manager Freden indicated it was very sporadic at best.
Freden added, a tie-up fee could be another source of revenue for the City, however, it
would be difficult to monitor but it could be done.
Commissioner Eldridge asked if there would be a reduction in expenses if the time of
operation were limited outside the dip net season. Freden stated he didn't think there
would be much of a savings as the start-up and shutdown procedures needed to be
handled properly to eliminate any further maintenance costs. He added, he thought
the only area that could provide a cutback would be to shorten the season by closing
the dock in mid-August after the commercial fishing season.
Chairman Thompson thought a more thorough breakdown of costs at the dock should
be made available in order to better determine what option would be best for leasing
the dock. He added, consideration needed to be given to the liabilities involved by
privatizing the dock to include regulatory responsibilities on and offshore.
I-L~RBOR COMMISSION MINUTES
SEPTEMBER 9, 2002
PAGE 4
Commissioner Simon thought an analysis should be made of how the dip net fishery
would be affected if the dock were privatized. It was noted this would be a negotiable
issue.
Commissioner Barrett asked if the legal department could provide something for the
next meeting that would outline the legal exposure at the dock. Komelis stated he
would discuss this with the City Attorney.
Discussion took place on the expenditures of'the dock and Meier asked if he could
contact Komelis to discuss the actual cost involved in running the dock. Komelis
indicated that information could be made available.
Chairman Thompson summarized the options as follows:
· Continue dock operations "as is" with current leases.
· Lease the dock out to private industry and keep the ramps as a City
responsibility.
· Close the dock.
· Revenue from the fish tax, property tax, and parking fees from the dip net
fishery be allocated to the harbor budget rather than the General Fund.
· Shorten the period of operation.
· Consider expansion via access to Dragnet or the Nature Conservatory
properties.
Chairman Thompson summarized the information required by the Harbor Commission
for further discussion at their next meeting so firm recommendations could be made to
the City Council as:
· Provide a more thorough cost of dip net fishery expenses.
· Obtain a legal opinion regarding the responsibility of the City and a
contractor should the dock be privatized, keeping in mind the regulatory issues.
· Contact with Dragnet or the Nature Conservatory regarding expansion of
the dock for ramps, turn-around lanes and parking.
· Commissioner Simon will meet with Komelis to review potential grants,
provide aerial maps of the dock area, and if possible, identify the property owners in
the area.
· Provide the meeting packet as early as possible before the next meeting
for review purposes.
· Have the boating facility current fee structure as an agenda item for the
next meeting.
ITEM 6:
NEW BUSINESS -- None
ITEM 7: REPORTS
Director-- Komelis reported the following:
HARBOR COMMISSION MINUTES
SEPTEMBER 9, 2002
PAGE 5
KENAI HARBOR COMMISSION MEETING
OCTOBER 7, 2002
KENAI COUNCIL CHAMBERS
7:00 P.M.
CHAIRMAN TOM THOMPSON~ PRESIDING
MINUTES
ITEM 1:
CALL TO ORDER/k ROLL CALL
Chairman Thompson called the meeting to order at 7:00 p.m.
confirmed as follows:
Roll' was taken and
Present:
Absent:
Others Present:
Eldridge, Rogers, Foster, Barrett, Simon, Thompson
Spracher
Councilman Bookey, Public Works Director Komelis, and Contract
Secretary Roper
ITEM 2:
AGENDA APPROVAL
Commissioner Simon requested a discussion on Coastal Trail Culverts be added under
New Business.
MOTION:
Commissioner Eldridge MOVED to approve the agenda with the addition and
Commissioner Barrett SECONDED the motion. There were no objections. SO
ORDERED.
ITEM 3:
APPROVAL OF MINUTES -- September 9, 2002
MOTION:
Commissioner Eldridge MOVED to approve the minutes as written and Commissioner
Barrett SECONDED the motion. There were no objections. SO ORDERED.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None
ITEM 5: OLD BUSINESS
~-a. Discussion -- Boating Facility
~ * Operation Alternatives
* Privatization/Legal Exposure
Commissioner Simon provided an overview of a subcommittee meeting held on
September 25, 2002. The following options were suggested and discussed:
· Continue dock operations status quo -- Simon stated she liked the idea
of continuing the dock as is, using the General Fund to pick up the shortfall, and on
an operations level, continue operating the dock with various measures to enhance
revenues and decrease expenses. Simon asked if there were any other options and
Thompson suggested leasing the dock to a private operator as an option and closing
the dock, the final option.
Reallocate revenues generated at the harbor to the boating facility
rather than the Oeneral ~h,tnd. Bookey indicated no discussion had taken place by
council to this regard, however, the budget hearing process would begin next week and
that's where the discussions will take place. Commissioner Foster stated what
probably needed to be done was def'ming exactly what the harbor area is; it may then
be easier to determine what revenues should be reallocated. Bookey agreed and
added, since Parks is involved in some of the areas, this should be a key issue.
· Enhance revenues-- Foster suggested all revenues go to the General
Fund and the Fund pay for the dock. Bookey stated that would be his pitch to Council
adding, he had two directions to go in: {1) segregate the funds to show the boating
facility can be profitable or at least a break-even operation; and (2} show the dock is an
intricate part of the community needing to be funded 100% by the General Fund.
Bookey added, he would not want to see privatization of the dock as it would do
nothing for the City. He also noted the Salamatof Dock was originally intended to be a
public dock but the city lost it for 99 years due to privatization and he did not want the
same thing to happen with the city dock.
Thompson suggested the revenue from the personal taxes on the boats and the fish tax
could be applied back to the harbor. Bookey stated he wants Council to understand,
without the dock, those two sources of revenue would not be available and
consideration needs to be given to at least crediting the deficit at the dock. (It was
noted the dock is a special revenue fund rather than an enterprise fund.) Komelis
explained the difference was depreciation is not taken out. Eldridge noted the finance
director indicated that might change next year.
· Decrease expenses -- Thompson noted, the use of noncommissioned
officers handled the policing of the dock area during the dipnet fishery was a great
savings in labor costs. He suggested a private contractor might lease the dock for a
period of time with some substantial labor savings to the City. Komelis noted the
noncommissioned officer salary was not an expense of the Harbor. Thompson stated
he used that as an example of how a private contractor may provide labor at a lower
rate than the City.
Replacement of the current dock manager (Freden) for someone at a lower salary was
discussed. Komelis explained, the Freden's salary isn't high compared to other
positions within the City structure. Bookey noted, Freden's experience level is worth a
lot to the City and one would have to be careful when talking about utilizing a less
experienced employee as that could end up costing the City a lot more money because
of the inexperience. Bookey added, there are situations at the dock with a lot of
HARBOR COMMISSION MEETING
OCTOBER 7, 2002
PAGE 2
liability such as the fueling operation, spill situations, dealing with the floats, etc.
Simon noted she raised the question as she felt it needed to be discussed. Bookey
agreed it should be discussed but Freden's experience is invaluable to the City.
Make the dock work at a break-even point.
· Dock Expansion -- Discussion followed regarding ext~ansion of the dock
and various funding sources to purchase the Dragnet property. Displaying an
enlarged aerial photo of the dock area, Simon stated Mr. Jim Walsh is acting as an
intermediary for Dragnet and she would contact him to check the status of the
property. Bookey thought a group was negotiating with Dragnet for purchasing the
property at this time.
Simon suggested perhaps the area past the Warren Ames Bridge and down river could
be marketed more or sold because of the beautiful views. It was noted there was very
little property available in that area. Simon also suggested (if appropriate) she contact
the Congressional Office regarding availability of grant funds made available by
Congress for economically displaced fishermen to use toward the purchase of the
Dragnet property for use as a restaurant or other economic venture. Bookey noted, all
the ideas were great, but the City is unable to fund anything for the next two to three
years. Bookey added, it would also be difficult to provide the funds for the necessary
manpower.
· Leases -- Thompson suggested use of short-term leases as an option and
Barrett thought it would be fine as long as they remained very short-term. Foster
suggested short-term leases on some of the liabilities at the dock such at the fueling
facility.
Eldridge suggested another consideration would be to go out with some RFP's to lease
a couple dock sites, lease the dock, and the operation of the fueling facility. Eldridge
added, the proposals would be evaluated and the City could accept the best one. It
was noted these would be three to five-year leases. Bookey indicated this would be one
of the conversations Council would have regarding the boating facility.
Komelis referred the Commission to the spreadsheet included in the packet outlining
the' revenue generated from the dock operations to identify the impact if the dock
operations, including the fueling, . would be leased out, excluding the ramps.
· Increase Launch and Parking Fees -- Barrett suggested increasing the
launch and parking fees at the dock and Kornelis stated he thought that could be done
without too much ramification. Discussion ensued regarding the additional revenue
the City would receive with the increases and Bookey stated, if the revenues were
redirected to the boating facility rather than to the General Fund, the dock could
operate status quo. Barrett recommended the dip net parking fees be increased as well
and Thompson suggested season passes -for the dip net fishers could be another
HARBOR COMMISSION MEETING
OCTOBER 7, 2002
PAGE 3
option. Komelis stated he would recommend the pay station be moved to the road at
the entrance next year as that would reach more users.
The list of options was amended as follows'
fees.
· Continue dock operations status quo.
· Justify the revenues going to the General Fund and rea_llocate them to
the boating facility. · Increase or enhance dock revenue.
· Decrease services.
· Expand dock operations.
· Pursue grants.
· Consider three to five-year private leases, excluding ramp and parking
Increase fees from $10 to $15.
Bookey suggested the items be prioritized and included in a motion for Council's
consideration and Komelis suggested the recommendation include increasing the
launch fees as well.
MOTION:
Commissioner Foster MOVED to maintain current dock operations, attempt to increase
.the revenue at the dock, cut the liabilities wherever possible, increase the fees, and
bring some of the other revenues of the other harbor related activities under one
umbrella. Commissioner Eldridge SECONDED the motion.
A very lengthy discussion followed on how the motion could be amended. Bookey -
recommended a short recess to finalize the motion.
MEETING RECESSED AT 8:19 P.M.
MEETING RESUMED AT 8:34 P.M.
Commissioner Foster withdrew his motion with concurrence from Commissioner
Eldridge, who seconded.
MOTION:
Commissioner Simon MOVED to recommend to Council to continue dock operations as
in the past, leasing a portion of the dock and maintaining the city's management over
that portion the same as it is at present; credit the boating facilities fund with all
harbor-related revenues, including the north and south side dipnet parking fees, boat
taxes, and fish taxes; and recommend increasing the fees for launching and parking.
Commissioner Eldridge SECONDED the motion.
HARBOR COMMISSION MEETING
OCTOBER 7, 2002
PAGE 4
VOTE:
Eldridge
Barrett
Thompson
Yes
Yes
Rogers
Simon
Yes
Yes
iFoster
Spracher
Yes
Absent
MOTION PASSED UNANIMOUSLY.
Bookey stated he liked the motion but more than likely the Council would say the fish
tax and other revenues have other expenses, so the harbor may only get a Portion.
Eldridge stated the Commission had discussed other means of access and egress at the
dock to enhance its usability and since the Dragnet property is available, the City
should consider purchasing it to enhance economic development and perhaps install
more ramps.
MOTION:
Commissioner Eldridge MOVED the City Council pursue having some type of economic
development committee look at the Dragnet property and, working with the Arts
Council, Harbor Commission, and Economic Development, determine some uses for
that land where the City may obtain industrial development grants so that the facility
doesn't have to stand by itself, landlocked as it is with only one means of access and
egress and to also make the waterfront more attractive and useable. Additionally,
Eldridge recommends that consideration be given to additional dock access and egress.
Commissioner Simon SECONDED the motion.
Eldridge added, something should be done now with regard to obtaining the Dragnet
property as it is available and the price is a bargain at $750,000. Foster stated there is
probably already some revenue related to the Dragnet property with the trailers, boats,
buildings being leases, etc.
Simon asked if it would be appropriate for her, as a Harbor Commissioner, to contact
the congressional office regarding availability of grant funding and Komelis
recommended contact go through the City Manager or the Mayor. Bookey stated this
was discussed previously and if Simon wanted to do this as an individual, she could
but not as a Harbor Commissioner. Bookey recommended it be discussed at this level
and then it go to Council. Council would give direction to Administration if they. choose
to pursue the issue. Simon indicated she would research this as an individual and
report back to the Commission.
VOTE:
There were no objections. SO ORDERED.
HARBOR COMMISSION MEETING
OCTOBER 7, 2002
PAGE 5
posChairman Thompson drew attention to the memo from the City Attorney regarding the
legal exposure should the dock be privatized. It was noted the City has discussed the
sible overlap of insurances with lessees.
ITEM 6: NEW BUSINESS
Discussion -- Coastal Trail Culverts- Environmental Impacts
Simon provided photos of the culverts used at the Beaver Creek project and explained
she was brainstorming ways of building the coastal trail and she thought the same
culverts used in Beaver Creek could be utilized at the Coastal Trail project. Simon
suggested, this design feature be discussed with the engineers on the coastal trail. She
continued, only a small portion of the bluff erosion and erosion control project would
actually be in the actual flow of the Kenai River and it might be conceivable to actually
build a trail on top of culverts such as those at Beaver Creek. With the culverts placed
parallel to the bluff, the flow of the Kenai River could go through and provide for
habitat for f'mgerlings and fry.
Thompson stated he thought the Commission would be out of sequence in discussing
the issue at this point, as the Corps should be involved. Thompson recommended the
issue be set aside until the Corps' status of the project is known.
ITEM 7: REPORTS
7:a. Director-- Komelis reported the pilings would be pulled and the dock
closed for the winter on October 8, if weather allows.
Dock Foreman -- No report
7:¢. City Council Liaison -- Bookey noted the following:
· The first budget meeting will be held on October 14. He invited the
Commission to attend.
· The Council was happy Proposition 4 failed and explained some of the
problems if it had passed.
ITEM 8:
,,
COMMISSIONER COMMENTS! QUESTIONS
· Eldridge asked if a meeting was scheduled for the coastal trail and
Kornelis reported he was not aware of any. Barrett suggested use of the Visitors
Center when a meeting is scheduled.
· Barrett thanked Simon and the other Commissioners who prepared the
report of options.
Kornelis noted the November Harbor meeting falls on a City holiday and
HARBOR COMMISSION MEETING
OCTOBER 7, 2002
PAGE 6
MEMORANDUM
CITY OF KENAI
211) FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
TO:
FROM:
DATE:
SUBJECT:
Linda Snow, City Manager
Jack La Shot, Public Works Manager
October 31, 2002
Building Maintenance Schedule
Attached is an updated Five-Year Building Maintenance Projected Schedule used to
help formulate the Building Department budget each year. This list was prepared
quickly for the November 4th work session and may change before the next budget
session as we examine our building maintenance needs in greater detail. Only
maintenance potentially affecting-the general fund is considered.
You asked for a yearly level cost that could be used for this work. I averaged actual
expenses from 2000 through projected 2009 expenses. The average was about
$84,000. Adjusting up somewhat, for inflation, $90,000 would appear to a number that '
could be used annually for a few years until newer General Fund buildings start needing
major repairs. Also, normal repair and maintenance costs and contingency are not
included. Let me know if you need anything else.
FIVE'YEAR BUILDING MAINTENANCE
PROJECTED SCHEDULE
The following is the list.of specific items and buildings' projected five-year maintenance
schedule.
FAClLITY_._~_~J NEE ~ COST
PSB
Re aint interior
~terior
Re aint exterior
Flood coat roof
Re lace windows
Re lace car et
Rec. Center
Re lace car et
R_..~.~.paint interior Repaint exterior
Re aint exterior
Re lace lumbin fixtures
Recoat & rebuild m floor
Recoat & rebuild m floor
Flood coat roof
Replace Air Handling
Units in Racquetball
Courts 1 & 2
2004
2009.
2006
2005
2004
2009
2004
2003
1997
1973
1999
2007 2001
2006 2001
2005 2002
2008 2005
2009 1980
20._.~04 2001
2007 2004
2007 2000
2005 1980
6,00O
6,000
7,O0O
25,000
9,000
45,000
18,000
9,000
6,000
6,000
11,000
20,000
20,OOO
15,000
40,000
Five-year Building Maintenance
Page 1
October 2002
YEAR TO BE YEAR LAST
FACILITY NEEDED REPAIR DON~ DON~
COST
Visitors Center Replace carpet , 2008 1992 35,000
,,, Repaint interior, 2006 2001 6,000
Repaint exterior 2009 2003 10,000
, ,
Senior Center Repaint interior 2005 2000 5,000
Repaint exterior 2005 , 2001 5,000
Repaint exterior 2009 2005 5,000
Upgrade air handlin[I units 2006 1981 8,000
Re-lamp 2004 1981 17,000
Replace carpet 2006 2001 25,000
Five-year Building Maintenance
Page 2 October 2002
Memoranclum
Date:
To.'
From:
Rte
October 30, 2002
Linda L. Snow, City Manager
,\/
Kim Howard, Assistant to the City Manager Cta
Kenai Historical Society and Peninsula Arts Guild Buildings
You asked me to provide information on the values of the above referenced properties. Both
buildings are situated on a portion of Lot 3, Block 17, Old Town Kenai. A GIS map is
attached.
I contacted the Borough and the assessed values are as follows:
Kenai Historical Society Building
$ 32,000 (as of January 2002)
Peninsula Arts Guild Building
$ 83'000 (as of January 2002)
Lot 3, Block 17, Old Town Kenai (1.99 acres)
$126,000 (raw land value w/o
improvements; hasn't be re-assessed
in many years)
The Kenai Historical Society (former library building) lease was for 1 year, continuing as a
tenancy at will, subject to cancellation by either party on 30 days notice. The term of the
Peninsula Arts Guild (former fire hall and jail) expires June 30, 2015.
Annual rent for both leases is $1.00. Each lease includes the building, along with the grounds
beneath the building and the grounds immediately adjacent to the building to provide ingress
and egress to and from all portions of the exterior of the building for purposes of repair and
maintenance.
Bob Springer told me there is enough property around each building to meet setbacks if the
property were to be replatted.
Marilyn Kebschull noted the buildings are listed in the Kenai Townsite Historic District
Survey Report prepared in 1996. They are identified as "Selected Buildings Adjacent to
the Kenai Townsite Historic District" and have been assigned Alaska Heritage Resources
Survey numbers. She explained that if a sale occurs, DNR's Office of History and
Archeology should be notified A few pages of that report are attached for your
information.
Attachments
/kh
Property/Assessment Report
Tax id: 4710105
City of Kenai
Lot Size: 1.9900 Acres
Generated: 10/29/02
Assessed Value: $241,000
w E
S
.
GI$ · DATABASE · CAD
810
PENINSULA AVE.
BROAD WAY
SUBD.i 21-A 20 1
~o4 j8o21 ~
i805 / 801
xX ..- / · ~
"¥' / 900 COOK AVE.
"^ 6~
,,,(15) ~ ,
____ RI'VE/~VIEW blt. ~--~ 804
Owner(s)
PENINSULA ARTS GUILD
Property Address
816 COOK AVE
KENAI AK
99611
Year Built
Structures
Area Bedrooms/Bathrooms
1950 3872 SqFt 0.0/0.0
1950 1496 SqFt 0.0/0.0
Mailinq Address
210 FIDALGO AVE STE 200
KENAI AK
99611-7750
Legal Description
KN0002970 T05N R11W S05 ORIGINAL TOV~
E OF KENAI LOT 3 BLOCK 17
City Zoninq
CENTRAL COMMERCIAL
Tax Assessment
Assessed Structural Value .... $0
Assessed Land Value ........ $126,000
~NSIT
Assessed Special Value ..... $115,000
Total Assessed Value ........$241,000
Exempt Value ............... $241,000
Ma_D# :' J AHRS#: KEN- 281
Property _Type: Other- Government
Prop.ert_v .N.ame: Civic League Building
Address ~ 818 Cook Avenue
Legal D~scrip. tion: Original Townsite, Lot 3, Block 17
Date of Construction_: 1954
Condi t ion :. Good
Descri_DtiQn= The frame building measures 60' by 28'2". It sits on a
concrete perimeter sill. The roof is a gable covered with standing-
seam metal roofing. The eastern section of the roof (approximately
one-quarter of the whole roof) has a higher ridgeline and greater roof
overhang than the corresponding western section. Roof extensions
protect two single doors on the facade (west elevation). Siding is
asbestos shingle. Five large jalousie windows admit light into the
facade of the western portion of the building. A similar window is
cut into the eastern portion of the south elevation.
History snd Ph_vsical Changes: The building was constructed in 1954
with volunteer labor. The J. H. Pomeroy Construction Company (the
construction contractor for the Wildwood Army Base) donated building
materials. The property served as a community center, housing many
public facilities m'!d groups. The public library ~u'~d courthouse were
located here, and the building was also used for church services and
as a schoolroom. Evening meetings such as the Civic Lea~e
(forerunner of today,s city management) and Homemakers Club were held
in the building. When Kenai incorporated in 1950, the west; end of
the Civic League building provided heated storage for the city's fire
truck. The two east room housed the health nurse m'~d the first city
offices. A preschool now operates in the building.
Outbuildinas: None
_
Integrity: N/A; the building's exterior appearance has changed only
slightly from its original appearm'~¢e, however.
Associated Historic Tbeme~ None; associated with Kenai's Post-War
Community Growth period.
A_D_Dearanc~ at End of.. perio.d of Significance: N/A
149
Contributing/Non-Contrib,ut~,ng'. Since the Kenai Civic League building
is not yet fifty years old 'and initial research did not provide
evidence of Exceptional Importance by National Register standards, it
would not be a contributing property if located within the KTHD. Its
size and style are incompatible with historic buildings in the KTHD.
Historical Significance: This property is an excellent example of a
municipal building constructed during the period of community growth
in Kenai that followed World War II.
150
F&gure 64. Kenai Civic
courtesy Pegg~ Arness.
Center, south elevation, c.1954.
Photo
F&gure 65. (former) Kenai Civic Center, (now) Kenai Co-operative Pre-
School, south elevation, 1995. Photo by S.H. Elliott.
151
~ K AHRS #_: KEN- 282
Property Type: Other: Government
Property Name.: Kenai Firehall& Jail
Address: 816 Cook Avenue
Legal Description..-. Original Townsite, Lot 3, Block 17
Date of C.onstruc.tion: 1955 and 1957
condi tion: Good
Descrip..tion.-. This concrete block building has an L-shaped plan. It
measures 62' on the facade and 90' deep and 32'4" across the rear
elevation. A single metal door and metal double doors are located on
the facade (south elevation). Large square wood-shingled areas with
centered, fixed-glass single-pane windows flank the single door. Two
barred windows are located near the back of the building. The roof is
flat with a parapet; the foundation is concrete slab.
History and Physical ...Changes.: using mostly volunteer labor, the
Fireball was constructed in 1955. Four evenly spaced overhead doors
for vehicles, and a standard entry door were originally located on the
facade. In 1957, the Jail was added to the rear of the building.
After the Kenai Police and Fire Departments moved to a new facility in
1973, the building was leased for one dollar per year to the newly-
formed Kenai Arts Council. In 1980 the building was renovated into a
gallery and artists' 'workshop. At this time, two of the Fireball
doors were infilled with concrete block and two other doors were
infilled with a window surrounded with wood shingles.
0.utbuildings: None
Integrity: N/A; the current exterior appearance of the Fireball &
Jail, however, is only slightly changed from its original appearance.
Although the four large overhead door openings have been infilled, the
building has sustained no other alterations, and the infilling can be
removed if necessary.
Associated Hi9~Qric Theme~ None; associated with Kenai ' s Post-War
Community Growth period.
A_Dpearanc,e a~ En4 of, PeriQd ~f Significance.- N/A
Contributing/Non-Contributing: Since the Kenai Fireball and Jail is
not yet fifty years old and initial research did not provide evidence
of Exceptional Importance by National Register standards, it would not
be a contributing property if located within the KTHD. Its size and
style are incompatible with historic buildings in the KTHD.
152
His...torical Si~n.ificance: This property is an excellent example of a
mLu~icipal building constructed during the period of community growth
in Kenai that followed World War II.
Figure 66. (former) Kenai Firehall & Jail, (now) Kenai Fine Arts
Gallery, south and west elevations, 1995. Photo by S.H. Elliott.
153
CiTY OF KENAI
KENAI PARKS & RECREATION
227 CAVIAR ST. KENAI, ALASKA 99611-7794
TELEPHONE 907-283-3855 1 907-283-7926
FAX 907-283-4675
KENAI
All America City
MEMORANDUM
TO:
FROM:
DATE:
Linda Snow, City Manager
Robert J. Frates, Parks & Recreation Directo~
October 16, 2002
Boys & Girls Club Teen Program
Keith Randall, Operations Director for the Boys & Girls Club, and I have met several
times to discuss matters related to combining our Teen Programs. We both recognize the
tremendous benefits of providing a shared program and look forward to the challenge.
The following is an outline of major goals jointly worked on in terms of an understanding
between both parties. If you see something we have lei~ out please let me know.
The City of Kenai Will:
.
.
Provide shared space in the Teen Center to house Boys & Girls Club Teen
Programs.
Work with the Club staff to ensure programs run smoothly.
Provide janitorial and maintenance for the facility.
Provide space for a computer lab including imemet connection.
Name the Boys & Girls Clubs of the Kenai Peninsula as an additional insured on
the City's liability insurance policy.
The Boys & Girls Club of the Kenai Peninsula will:
1. Provide youth development programming (education and career development,
health and life skills, the arts, character and leadership development) for teens.
2. Work cooperatively with the Teen Center Director to ensure that B&G club
activities complement other uses of the facility.
3. Provide a BGCKP staff member 25 hrs/week.
.
Ensure that all teens are able to participate in BGCKP activities: - Fees will be affordable.
- Scholarships will be offered.
- No teen will be turned away.
5. Name the City of Kenai as an additional insured on the Boys & Girls Clubs of
the Kenai Peninsula liability insurance policy.
6. Keep all records associated with Boys & Girls Club membership and attendance.
The City of Kenai and the Boys & Girls Clubs will:
o
Cooperatively develop'
- behavioral expectations and consequences for Teen Cemer.
- programs, activities, special events, etc. for all local teens.
- momhly and yearly calendar of events.
- plan for purchasing needed equipment and supplies.
- ownership agreement for jointly purchased equipment.
Furthermore, the following is a suggested time-line for implememation:
1. October 17, 2002 - Meet with and discuss proposal with B&G Club Board of
Directors.
2. November 7, 2002 - Meet with and discuss proposal with Parks & Recreation
Commission.
3. November 20, 2002 - Review and discuss implementation at City Council.
4. December 1, 2002 - Implementation date.
Keith will also be meeting with Tina and the B&G Club Board concerning the use of the
Teen Center for their Summer Program. Keith was planning on having a proposal
together for that toward the end of November.
I would be happy to discuss any of these matters with you at your convenience. Thanks -
we are excited about the opportunities!
1-2002 MON 04: 29 PM PENINSULi~ D ISTI~ ICT
Ffi~ NO,
9072625343
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
CENTRAL REGION- D/V/S/ON OF MAINTENANCE & OPERA TION$
TONY KNOWLE$, GovERNOR
/
/
·
/
4111 A VIA TION A VENUE
P. O. 196900
ANCHORAGE. ALA$ff~ 99519.6900
[907) 269-02'60 (FAX 248.15731
October 21,2002
Mr. Kei[h Kornelis
210 Fidalgo Ave., Suite 200
Kenai, AK 99611
Fax' 283-3014
............ .~O Box 1327
· , ~oldotna, AK 99669
, /
PROJECT:
Dear Mr. Kornelis:
Due to the closure of the Ninilchik Station, North Kenai Station will extend their
maintenance of the Kenai Spur Highway to Sports Lake Road.
North Kcnai Station's first priority will be to plow and sand thc Kcnai Spur Highway.
Once that is completed, the side roads will be plowed and sanded. Roads that are school
bus routes and those that have the heaviest traffic will take precedence over less traveled
side roads.
Carl High
Peninsula District Superintendem
KENAI CITY COUNCIL WORK SESSION
OCTOBER 21, 2002
CITY COUNCIL CHAMBERS
7:00 P.M.
MAYOR JOHN J. WILLIAMS, PRESIDING
Council present:
Council absent:
Staff present:
Williams, Bookey, Moore, Jackman, Bannock, and Porter
Swarner
Snow, Graves, Freas, Walden, Craig, Semmens
The work session began at approximately 7:00 p.m. Finance Director Semmens
reviewed handouts provided to the council which included a General Fund budget
projection; reserve levels from FY92-estimated FY03; General Fund deficit/surplus;
General Fund budget revenue projections, 2000-2008; salaries and benefits; and
insurance history.
Other information provided included notes of the October 14, 2002 work session; AML
Salary Survey, wages and benefits comparison and a Schedule of COLA vs. CPI.
Revenues & Expenditures
ITEM 1:
General Fund Overview/Status Report
Semmens reviewed the handouts with the council and noted the projections were very
early; it is known the property tax will be $380,000,000; and he felt the sales tax
projection would be within $100,000 of the projection. Semmens also noted Revenue
sharing and Safe Communities funds were known; he cut the interest by $50,000
(based on four percent earnings); and the sale of Inlet Woods properties brought the
"other" balance up.
ITEM 2: General Fund Balance Minimum
Bookey noted he had a long discussion with Semmens during the day which helped
him in determining what he would like to have as a minimum balance. He noted,
there is $4.3 in unencumbered balance in the General Fund as well as other areas of
funds within the budget. He would like to have approximateIy $7 million as a budget
reserve, which is already there, plus the equipment reserve fund. Bookey stated he
would like to explore setting up a roads replacement/repair fund and a building
maintenance repair fund and still maintain the cash reserve.
The subsequent discussion brought forward the following comments:
· $5 million would be a good balance for the undesignated reserve.
· A balance of more than one-half a year's budget should be in the balance
with which to work.
· There were no objections to setting up a road replacement/repair or
building maintenance reserve funds at this point.
KENAI CITY COUNCIL WORK SESSION
OCTOBER 21, 2002
PAGE 2
Because Administration reported they were already investigating a ten-year
maintenance formula, further discussion on setting up the funds would be held where
the items are currently listed on the topics of discussion
Consensus of council was to try for having $5 million in the unreserved balance with
$4.75 as the bottom. City Manager Snow noted that was where the balance is
currently and means no appropriations can be made or cuts would have to be made
from somewhere else in the budget.
Semmens also noted a one-mill increase was planned for the 2003-04 budget; sales
tax is projected to be up two percent; the interest rate probably won't as projected at
2004; the fish tax is an unknown and the expenditures include a three percent
increase over the prior year.
ITEM 3:
Employee Wages ll~ Benefits
Employee Health Insurance: Discussion followed regarding health insurance. The
following comments were noted:
· The city is now funding 100% of the employees' health insurance.
It was suggested council give direction on the level of insurance costs
employees will have to pay.
· A COLA increase will need to be reviewed.
Health insurance costs will be a significant effect on the budget.
Council held a brief discussion on health insurance wherein Bannock suggested a
cafeteria plan should be reviewed as he felt everyone is equal and it would allow a
better standard. City Attorney Graves reported an employee committee was already
reviewing the health care issue and because it is an extremely touchy subject, he
suggested council may want to wait for recommendations from the committee before
determining a funding level.
Consensus of council was to wait until after a recommendation is received from the
employee committee before making any funding determinations for employee health
insurance.
Wages: Council reviewed the AML survey of wages and benefits comparison included
with the handout information. Comments included:
The social security option was capped at $36,000. Today there is no cap
and employees and City of Kenai employees have lost ground. Some feel the city
should pay into the supplemental benefit program to make up for the difference and
some don't feel the city is obligated to do so.
· It should be factored in that a COLA is taxable and benefits are not.
· The insurance committee has also been discussing this topic and feel it
matters more to get a COLA.
KENAI CITY COUNCIL WORK SESSION
OCTOBER 21, 2002
PAGE 3
Consensus was for administration to track the committee's discussions/findings in
regard to insurance and wage concerns.
ITEM 4: Revenue:
Mill Rate/Sales Tax/Rates, Fees, Charges/Grants,
Loans, Bonds
It was noted the projection included a raise of one mill ($350,000) and user fees and
rental rates are being discussed and proposed. Because the raise of one mill was
discussed last year and noted it would take place this year, Bookey felt it wouldn't be
a problem to make the raise, however he didn't want to raise it more than one mill.
Williams stated he thought a one-mill raise would work and Bannock stated he wasn't
sure a mill increase would be needed. He suggested, in order to sell a tax increase,
the city should say what it is that will be done with the raise.
Williams noted, a mill increase had been programmed and he could see no way in
which the city could continue in the direction it is going, and take care of the
employees, without raising the mill rate.
Other comments included:
· A one-percent COLA increase would equal $50,000. Though concern was
noted that a COLA would use up most of a one-mill increase, Porter and Williams
agreed they could not continue ignoring the employees year after year. Bannock noted
there are a lot of factors going into an employee, i.e. on-time paychecks, insurance,
etc. and felt it was not fair to say the employees had been ignored. Williams noted, the
employees had been skipped over for the last four of six years.
· Referring to the chart included in the information distributed, it was
noted approximately 80% of the employees took a step increase within the last two
years and less than 20% of the employees had capped out. Within a two-year period,
80% of the employees received a bigger paycheck.
· Step increases are included in the pay scale for loyalty, reward, and
longevity.
· Employees need to understand there would only be so much revenue
received and there are other city expenses that will need to be addressed than just a
COLA.
· A request was made to find out from Public Works by Wednesday why
the water is so dirty at his end of town.
· No complaints have been reported from the recent increase of fees.
Council will discuss bonding and low interest loans when they talk more about capital
improvements, etc. at one of the later work sessions. It was noted, current financial
conditions are prime for taking on debt and the amount of support the borough's
propositions for bonding received may indicate support for the city bonding for
project(s).
KENAI CITY COUNCIL WORK SESSION
OCTOBER 21, 2002
PAGE 4
Council requested the following information be made available for the November 4
work session:
Building maintenance schedule.
· Assessed value/opinion of value on the old library/jail building (discuss
whether to sell or whether to give them to the non-profits that are now leasing the
buildings).
· Minutes of the last several Harbor Commission meetings.
· Invite Harbor Commission members to attend the work session.
Personal property tax -- will be discussed further.
Snow also noted there was no actual letter from DOT regarding road maintenance
through Kenai; it was his letter to him and their phone call back to him.
Snow recapped council's discussions and direction to administration' · Include information on deferred maintenance
· Stay within $4.7 million as a fund balance amount.
· Continuing working with employees regarding health insurance and
wages; bring whatever decision is available.
Include a one mill increase for the upcoming budget.
Snow noted, what council has discussed and offered direction on has been very
informative.
The work session ended at approximately 9:14 p.m.
Notes prepared by:
Carol L. Freas, City Clerk
PUBI_I:¢ NOTICE
The Kenai City Council will meet in a work session on November 4, 2002 in
the Kenai City Council Chambers at 210 Fidalgo Avenue, Kenai, at 7:00
p.m. The work session will be held to discuss policies of the City of Kenai.
The public is invited to attend. If you have questions, please contact the
City Clerk at 283-7535, extension 231.
Carol L. Freas, City Clerk D683//211