HomeMy WebLinkAbout2018-06-20 Council MinutesKENAI CITY COUNCIL -REGULAR MEETING
JUNE 20, 2018-6:00 P .M.
KENAI CITY COUNCIL CHAMBERS
210 F I DALGO AVE ., KENAI, AK 99611
VICE MAYOR TIM NAVARRE, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on June 20 , 2018 , in City Hall Council
Chambers , Kenai , AK. Vice Mayor Navarre called the meeting to order at approxi ma tel y 6:00
p .m.
1 . Pledge of Allegiance
Vice Mayor Navarre led those assembled in the Pledge of Allegiance .
2 . Roll Call
There were present:
Brian Gabriel , Mayor (telephonic)
Henry Knackstedt
Jim Glendening
Glenese Pettey
A quorum was present.
Also in attendance were :
Paul Ostrander, City Manager
Scott Bloom , City Attorney
Jamie Heinz, City Clerk
3. Agenda Approval
Robert Molloy
Tim Navarre
Mike Boyle (telephonic)
Vice Mayor Navarre noted the following modifications to the agenda :
Add to item D .3. Ordinance No. 3026-2018
• Analysis Memo from the City Attorney
Add to ite m D.4 . Ord inance No. 3027-2018
• Analysis Memo from the City Attorney
Add to item D.10. Resolution No . 2018-33
• Amendment Memo
Add to item G .3 .
Add to item G.4.
Add to item G .5 .
Remove G.6. from the
Consent Agenda:
Swap D.4. with D.3.
MOTION:
Special Use Permit to Alaska Air Fuel
• Memo Re. Airport Commission
Recommendation
Special Use Permit to HDL Engineering
• Memo Re . Airport Commission
Recommendation
Special Use Permit to Reddi Towing & Salvage
• Memo Regarding Airport Commission
Recommendation
Amending an Employment Agreement
Between The City of Kenai and the City
Attorney, Scott Bloom
To consider Ordinance No. 3027-2018
before Ordinance No. 3026-2018 .
Council Member Molloy MOVED to approve the agenda with the requested rev isions to the
agenda and packet and requested UNANIMOUS CONSENT. Council Member Knackstedt
SECONDED the motion.
VOTE: There being no objections , SO ORDERED.
4. Consent Agenda
MOTION:
Council Member Knackstedt MOVED to approve the consent agenda as amended during
approval of the agenda and requested UNANIMOUS CONSENT. Council Member Molloy
SECONDED the motion .
Vice Mayor Navarre opened the public hearing ; there be ing no one wishi ng to be heard, the public
hearing was closed.
VOTE: There being no objections, SO ORDERED.
*All items listed with an asterisk (*) are considered to be routine and non-controv ersial
by the council and will be approved by one motion . There will be no separate
discussion of these items unless a council member so requests , in which case the item
will be removed from the consent agenda and considered in its normal sequence on
the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS
1 . Chris Parker, K+A Design Studios and Mark Blanning, Wince-Corthell-Bryson -
Airport Terminal Rehabilitation Project Update
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June 20 , 2018
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Chris Parker with K+A Design Studios and Mark Blanning with Wince-Corthell-Bryson provided
an overview of the Airport Terminal Rehabilitation project noting the terminal had not undergone
a major renovation in fifty years. Some changes included a communication room , service animal
relief area , moving the parking kiosk inside , adding electronic device charging stations , creating
larger offices for the airlines, modifying car rental areas. It was also noted that cost estimates
were expected soon which would determine whether funding was sufficien t.
C. UNSCHEDULED PUBLIC COMMENTS
Ron Carlson spoke about starting a small gunsmith business from his home, however, he
discovered he lives in a zone where no home occupations were allowed. He asked for an
amendment to the zoning code so he could get his home business started .
Mike Soriski spoke about a cul-de-sac in his neighborhood where illegal activities such as drugs
and trash dumping are taking place. He asked for the City 's help with someth in g such as j ersey
barriers to block the cul-de-sac during the summer months.
D. PUBLIC HEARINGS
1. Ordinance No. 3024-2018-Increasing Estimated Revenue and Appropr ia tions in the
General and Airport Special Revenue Funds for FY2018 Fire Department Overtime in
Excess of Budgeted Amounts . (Administration)
MOTION:
Council Member Molloy MOVED to enact Ordinance No . 3024-2018 and Coun ci l Member
Knackstedt SECONDED the motion.
Vice Mayor Navarre opened the public hearing . There being no one wishing to be heard , public
comment was closed .
Administration was thanked for allocating a percentage of the increase to the Airport Fund.
Clarification was provided that the FY19 budget was developed us i ng a five year average and
administration was reviewing operational changes it mitigate future overages .
VOTE:
YEA: Molloy, Gabriel, Navarre , Glendening, Knackstedt, Pettey, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
2. Ordinance No. 3025-2018 -Amendi ng Kenai Municipal Code 14.20 .33 0 -Standards
for Commercial Marijuana Estab li shments and Amending Kena i Municipal Code
Chapter 14.22.010 -Land Use Table , to Prohib it Standa rd Marijuana Cultivation
Fa ci lities in Residential Zones . (Administration)
MOTION:
City o f Ken ai Council Meeting
June 20, 2018
Page 3 of 13
Council Member Knackstedt MOVED to enact Ordinance No . 3025-2018 and Council Member
Glendening SECONDED the motion .
Vice Mayor Navarre opened the public hearing ; there being no one wishing to be heard , public
comment was closed .
It was noted that the Planning and Zoning Commission supported the changes unanimously.
Support for the changes was expressed given the input from neighborhoods .
VOTE:
YEA: Molloy, Gabriel, Boyle, Navarre , Glendening, Knackstedt, Pettey
NAY:
MOTION PASSED UNANI M OUSLY.
3. Ordina nce No. 3027-2018 -Authorizing the Sale of Real Property Described as
Lot Four (4)A, Block Three (3), Cook Inlet Industrial Air Park Subdivision, 2014
Replat, City-Owned Airport Land Located Outside the Airport Reserve , to Schill ing
Rentals, a Partnership Owned by David and Michael Schilling . (Administration)
[Clerk 's Note: This item was moved during Approval of the Agenda to be take up before Ordinance
No. 3026-2018.]
MOTION:
Council Member Molloy MOVED to enact Ordinance No. 3027-2018 and Council Member
Knackstedt SECONDED the motion .
Vice Mayor Navarre opened the public hearing.
Duane Bannock thanked administration and Council for hearing past concerns and working to
bring forth this ordinance; requested two additional terms and conditions that had been allowed
for in two previous transactions.
There being no one else wishing to be heard, public comment was closed .
Vice Mayor Navarre passed the gavel to Council Member Knackstedt.
MOTION TO AMEND:
Vice Ma yor Navarre MOVED to amend by adding a new whereas clause at the end that reads as
follows , "the City has received a good faith deposit from the purchaser to cover City expenses
related to the sale and in fairness and at the request of the purchaser who was ready to purchase
the property when a recent appraisal was valid , the City should cover the new appraisal cost ,"
and add a new subsection b to section 3 of the ordinance to read as follows , "Notwithstanding
KMC 21.15.190 , the City will pay the appraisal cost for the property and apply the good faith
deposit pro vided b y the purchaser to the other related Ci ty expenses and the purchase price,
however, should the purchaser not complete the sale with in twelve months of the appraisal date,
the purchaser shall pay the appraisal cost consistent with City code ," and remove the period and
C ity of Kenai Cou ncil Meeting
J une 20 , 2018
Page 4 of 13
add a semicolon, the word , "and ," and a comma to the end of the now second to last whereas
clause, and Council Member Pettey SECONDED the motion .
It was suggested that it was important for the City, when dealing with the public, to treat everyone
the same ; however, sometimes each situation is a little different. It was pointed out that in the
private sector there are negotiations on closing costs . Negotiation factors such as payment of
taxes, utilities , and lease payments were discussed.
Clarification was provided that the lessee was to pay for the appraisal pursuant to Resolution No .
2018-12 and Kenai Municipal Code 21.15 .190 which was last amended in 2007. It was also
confirmed that the lessee approached the City for the purchase of the property after Resolution
No. 2018-12 was adopted .
It was pointed out that the amendment would show goodwill toward the community and both
parties negotiated in fairness and clarification provided that prior to 20 18 , an appra isal was
obtained in 2015 and was paid for by the City. It was reiterated that the resolutions adopted in
February created equality and fairness for the ten properties identified .
VOTE ON THE AMENDMENT:
YEA: Navarre , Glendening , Pettey
NAY: Molloy, Gabriel, Knackstedt, Boyle
MOTION FAILED.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend by adding a new whereas clause at the end that reads as
follows, "the City has received a good faith deposit from the purchaser to cover City e xpenses
related to the sale and in fairness and at the request of the purchaser who was ready to purchase
the property when a recent appraisal was valid , the City should cover half of the new appraisal .
cost," and add a new subsection b to section 3 of the ordinance to read as follows ,
"Notwithstanding KMC 21 .15 .190, the City will pay half the appraisal cost for the property and
apply the good faith deposit provided by the purchaser to the other related City expenses and the
purchase price, however, should the purchaser not complete the sale within twelve months of the
appraisal date, the purchaser shall pay the full appraisal cost consistent with City code ," and
remove the period and add a semicolon , the word , "and ," and a comma to the end of the now
second to last whereas clause , and Council Member Glendening SECONDED the motion .
It was reiterated that in other real estate deals the purchasers and sellers could negotiate to make
the deals fair and equitable ; sending the message that the City was open for business .
It wa s noted that in typical commercial de als , the purchaser pays for the apprai sa l.
VOTE ON THE AMENDMENT:
YEA: Na varre , Glendening , Pettey
NAY: Molloy, Gabriel, Knackstedt , Boyle
MOTION FAILED.
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June 20 , 2018
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Appreciation was expressed for administration 's work; gratitude expressed for purchasers coming
forward and investing in the City .
VOTE ON THE MAIN MOTION :
YEA : Molloy, Gabriel , Navarre, Glendening , Knackstedt, Pettey
NAY: Boyle
MOTION PASSED.
4. Ordinance No. 3026-2018 -Authorizing the Sale of Real Property Described as
Lot Six (6) A, Block One (1 ), Gusty Subdivision, according to Plat 86-76, City-
Owned Airport Property Located Outside the Airport Reserve to Pingo Properties ,
Inc. and Geoffrey M. Graves. (Administration)
[Clerk 's Note : This item was moved during Approval of the Agenda to be take up after Ordinance
No. 3027-2018.]
MOTION:
Council Member Molloy MOVED to enact Ordinance No. 3026-2018 and Council Member
Glendening SECONDED the motion.
Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public
comment was closed.
It was clarified that the needed avigation easement was appropriately addressed.
Gratitude was expressed for the purchasers investment in the City.
VOTE:
YEA: Molloy, Gabriel, Navarre, Glendening , Knackstedt, Pettey
NAY: Boyle
MOTION PASSED.
MOTION:
5. Ordinance No. 3028-2018 -Amending Kenai Municipal Code 23.25 .060 -
Overtime , 23.30.050 -Business Hours and Hours of Work, and 23.40 .020 -
Holidays to Eliminate the Shift Schedule for the Sewer Treatment Plant
Employees . (Administration)
Council Member Knackstedt MOVED to enact Ordinance No. 3028-2018 and Council Member
Molloy SECONDED the motion .
Vice Mayor Navarre opened the public hearing; there being no one w ishing to be heard, public
comment was closed .
An overview of the shift requirements and the staff requested shift changes was provided .
City of Kenai Council Meeting
June 20, 2018
Page 6 of 13
VOTE:
YEA: Molloy, Gabriel , Navarre, Glendening , Knackstedt , Pettey, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
MOTION :
6. Ordinance No. 3029-2018 -Increasing Estimated Revenues and Appropriations
in the General and Airport Land Sales Permanent Funds to Transfer Earnings in
Excess of Budgeted Amounts to the City 's General and Airport Special Revenue
Fund . (Administration)
Council Member Knackstedt MOVED to enact Ordinance No. 3029-2018 and Council Member
Molloy SECONDED the motion .
Vice Mayor Navarre opened the publ ic hearing ; tbeing no one else w ishing to be heard , public
comment was closed.
VOTE:
YEA: Molloy, Gabriel, Navarre, Glendening , Boyle , Knackstedt, Pettey
NAY :
MOTION PASSED UNAN I MOUSLY.
MOTION:
7 . O rd ina nce No . 3030-2018 -Increas ing Estimated Revenues and Appropriations
in the Municipal Roadway Improvement Capital Project Fund by the Proceed
Amount from the Sale of Tract A, Dragseth Subdivision 2016 Addition, according
to the Official Plat thereof, Under Plat No . 2016-22 , Filed in the Kena i Recording
District, Third Judicial District, State of Alaska , including All Improvements thereon
as Previously Approved in Ordinance No. 2957-2017 (Substitute). (Administration)
Council Member Molloy MOVED to enact Ordinance No . 3030-2018 and Council Member
Knackstedt SECONDED the motion .
Vice Ma yor Navarre opened the public hearing ; there being no one wishing to be heard , public
comment was closed .
Confirmation was provided that all transactions with the property had concluded with this sale and
the ordinance made proceeds available for ex penditure. It was noted that administration was
looking to ex pand the grant language to allow funds to be spent on the North Beach .
VOTE:
YEA:
NAY:
City of Ke nai Council Meeti ng
June 20 , 20 18
Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle
Page 7of 13
MOTION PASSED UNANIMOUSLY.
MOTION :
8. Ordinance No. 3031-2018 -Amending Kenai Municipal Code 23.10 .020-
Unclassified Service, to Allow Greater Flexi bility in Certain City Benefits Received
by the City Manager, Attorney, and Clerk , for Purposes of Recruitment and
Retention. (Council Member Molloy)
Council Member Molloy MOVED to enact Ordinance No. 3031-2018 and Council Member
Knackstedt SECONDED the motion .
Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard , public
comment was closed.
It was pointed out that the need for th is change was discovered in the recent performance
evaluations .
VOTE:
YEA: Molloy, Gabriel , Navarre , Glendening , Knackstedt, Pettey, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
MOTION:
9. Ordinance No. 3032-2018 -Increasing Estimated Revenue and Appropriations in
the Water & Sewer Fund tor Ut ility Costs in Excess of Budgeted Amounts.
(Administration)
Council Member Knackstedt MOVED to enact Ordinance No. 3032-2018 and Council Member
Molloy SECONDED the motion .
Vice Mayor Navarre opened the public hearing ; there being no one wishing to be heard , public
comment was closed.
Clarification was provided that the excess was in electricity only due to three large blowers
oxygenating the plant to deal with the ammonia issue discovered in the last year. It was noted
that probes had been purchased to also help with ammonia levels and will be installed soon ;
further noted that the excess came to light after the FY19 budget was set so something may be
needed in the future, too .
VOTE:
YEA: Molloy, Gabriel , Navarre, Glendening , Knackstedt, Pettey, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
City of K enai Cou ncil Meeting
June 20, 2018
Page 8 of 13
MOTION:
10 . Resolution No. 2018-33 -Consenting to the Vacation of Beluga Drive West Right-
of-Way and a Fifteen Foot (15 ') Utility Easement within the Proposed Beluga
Subdivision 2015 Replat Right-of-Way Vacation Plat. (Administration)
Council Member Knackstedt MOVED to adopt Resolution No . 2018-33 and Council Member
Glendening SECONDED the motion .
Vice Mayor Navarre opened the public hearing ; there being no one wishing to be heard , public
comment was closed .
MOTION TO AMEND:
Council Member Molloy MOVED to amend by adding a new section 2 to read , "approval
contingent on final plat granting two (2) thirty foot (30 ') utility easements as shown on the attached
exhibit," attach the new exhibit , and renumber the last section to section 3 , and requested
UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion .
VOTE ON THE AMENDMENT: There being no objection; SO ORDERED.
VOTE ON THE MAIN MOTION:
YEA: Molloy, Gabriel , Navarre, Boyle, Glendening, Knackstedt, Pettey
NAY:
MOTION PASSED UNANIMOUSLY.
MOTION:
11 . Resolution No. 20 18-34 -Awarding a Professional Services Agreement for
Ambulance Billing Services to Systems Design West, LLC. (Administration)
Council Member Knackstedt MOVED to adopt Resolution No. 2018-34 and requested
UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion.
Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard , public
comment was closed .
Administration was thanked for including the methodology for selection and not selecting on cost
alone.
VOTE:
MOTION :
City of Ke nai Council Meeti ng
June 20, 20 18
There being no objections, SO ORDE RED.
12. Resolution No. 2018-35 -Authorizing a One-Year Extension of a Professional
Services Agreement with Boys and Girls Club of the Kenai Peninsula for Facility
Management Services (July 1, 2018 to June 30, 2019) at the Kenai Recreation
Center. (Administration)
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Council Member Knackstedt MOVED to adopt Resolution No . 2018-35 and requested
UNANIMOUS CONSENT. Council Member Glenden ing SECONDED the motion .
V ice Mayor Navarre opened t he public hearing ; there being no one wishing to be heard, public
comment was closed .
VOTE:
MOTION:
There being no objections , SO ORDERED.
13. Resolution No. 2018-36-Authorizing a Budget Transfer within the General Fund
Street Lighting, Buildings , and Boating Facility Departments for Street Light
Repairs in Ex cess of Budgeted Amounts and Authorizing a Purchase Order to
Legacy Electric in the Amount of $3 4,000 for Completion of the Repairs .
(Administration)
Council Member Knackstedt MOVED to adopt Resolution No . 2018-36 and requested
UNAN IMOUS CONSENT. Council Member Molloy SECONDED the motion .
Vice Mayor Navarre opened the public hearing; there being no one wish ing to be heard , public
comment was closed.
VOTE: There being no objections, SO ORDERED.
14. Resolution No. 2018-37 -Awarding an Agreement to Crowley Fuels , LLC for the
Fuel Furnish and Delivery 2018 Invitation to Bid . (Administration)
MOTION:
Council Membe r Molloy MOVED to adopt Resolution No. 2018-37 and requested UNANIMOUS
CONSENT. Council Member Knackstedt SECONDED the motion .
Vice Mayor Navarre opened the public hearing ; there being no one wish ing to be heard , p ublic
comment was closed .
VOTE: There being no objections, SO ORDERED.
E. MINUTES
1. *Regular Meeting of June 6 , 2018
Approved by the consent agenda.
F. UN F IN ISHED BUSINESS -None .
G . NEW BUSINESS
1. *Action/Approval -Bills to be Ratified .
Approv ed by the consent agenda.
City of Kenai Council Meeting
J une 20 , 2018.
Page 10 of 13
2. Action/Approval -Purchase Orders over $15 ,000 .
MOTION:
Council Member Molloy MOVED to approve the Purchase Orders over $15,000 as listed and
requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion .
VOTE: There being no objections , SO ORDERED.
3. *Action/Approval -Special Use Permit to Alaska Air Fuel for Aircraft Parking on the
Apron. (Administration)
Approved by the Consent Agenda.
4. *Action/Approval -Special Use Permit to HDL Engineering for Soils Test Lab and
Equipment Storage . (Administration)
Approved by the Consent Agenda .
5. *Action/Approval -Special Use Permit to Reddi Towing & Salvage, LLC for an
Impound Lot. (Administration)
Approved by the Consent Agenda .
6. *Action/Approval -Amending an Employment Agreement between the City of Kenai
and City Attorney Scott Bloom . (City Attorney)
[Clerk's Note: This item was removed from the Consent Agenda during Approval of the Agenda]
MOTION :
Council Member Knackstedt MOVED to amend the City Attorney 's employment agreement and
Council Member Molloy SECONDED the motion .
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend the City Attorney 's employment agreement by
increasing the compensation for FY19 by $3,000 over his FY18 salary. Council Member Molloy
SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
UNAN IM OUS CO N SENT was requested on the main motion .
VOTE : There being no objections, SO ORDERED.
7. *Ordi nance No. 3033-2018 -Appropr iating Transfers for FY2019 Budgeted Capital
Projects in the Public Safety Cap ital Proj ect Fund , the Kenai Recreation Center
Improvements Capital Project Fund , the V intage Pointe Manor Capital Project Fund ,
and the Water and Sewer Capita l Project Fund. (Administration)
Introduced by the consent agenda and public hearing set for July 5, 2018.
City of Kenai Council Meeting
June 20 , 2018
Pa ge 11 of 13
[Clerk 's Note : Mayor Gabriel and Council Member Boyle left the meeting at 8:28 p .m.]
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging -June meeting canceled ; next meeting July 12
2. Airport Commission -No report due to no quorum; next meeting July 12 .
3. Harbor Commission -It was reported that on June 11 representatives from United
Cook Inlet Drifters Association expressed concern about the wake signage and
identified locations for additional signage ; next meeting July 9. It was noted the Rules
and Responsibilities Sub-committee met on June 12 and developed a framework for
their process and reviewed much of Title 11 for initial recommendations for change.
4 . Parks and Recreation Commission -No report due to no quorum ; held a work session
to tour Tsalteshi Trail system; next meeting August 2 .
5. Planning and Zoning Commission -It was reported that on June 13 , the Commission
reviewed a Conditional Use Permit for a commercial marijuana retail store, a land
lease application , approved a corrected Conditional Use Permit, and conducted a
completeness review for a Conditional Use Permit for resource extraction ; next
meeting June 27.
6. Beautification Committee -No report; next meeting September 10 .
7. Mini-Grant Steering Committee -Next meeting July 6.
I. REPORT OF THE MAYOR
Vice Mayor Navarre reported he attended Chamber of Commerce awards luncheon and
recognized all recipients.
J. ADMINISTRATION REPORTS
1. City Manager -P. Ostrander reported on the following :
City of Kenai Council Meeting
June 20, 2018
• Asked if a Council Member would be on the terminal design committee;
• Pointed out bonding levels for city manager, city clerk , and finance director and
encouraged looking at changes;
• Noted patrols for no wake zone during high tide would be reduced to traditionally
busy times;
• Findings from fact-finding trip on the river; noted Kenai Municipal Code leaves no-
wake signage to manager and likely wouldn't put signs up after what was
witnessed ; would put safety information on the app and at the dock ;
• Provided an update on the deadlines for the Bluff Erosion Project ;
• Noted an Alaska LNG meeting in Nikiski where they advised of the selected
bypass route which was the most constructible and least impactful ;
• Reviewed old town area for congested parking ;
• Noted funding for the Flight Service Station Remodel project was proceeds from
the FAA's lease payments.
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2. City Attorney -No report.
3. City Clerk -J . Heinz provided an overview of recent Northwest Clerk's Institute
training.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
None.
2 . Council Comments
Council Member Pettey appreciated public property was go ing into private hands and the City
was open for business.
Council Member Glendening attended the Annual Air Fair where he helped grill.
Council Member Knackstedt appreciated the food ; thanked airport manager for her help at the
Annual Air Fair.
Vice Mayor Nava rre noted the success of the Annual Air Fa ir; provided notice he would be
participating telephonically in the July 5 meeting.
l. EXECUTIVE SESSION -None .
M. PENDING ITEMS -None.
N. ADJOURNMENT
There being no further business before the Council , the meeting was adjourned at 9 :15 p.m ..
I cert ify the above represents accurate minutes of t he Kenai City Council meeting of June 20,
2018.
City of Kenai Council Meeti ng
J une 20, 2018
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