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HomeMy WebLinkAbout2005-06-01 Council Minutes1 ITEM A: AGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 1, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us 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: 1. 2. ITEM C: ITEM D: ITEM E: ITEM F! SCHEDULED PUBLIC COMMENTS (10 minutes) Aurora Borealis Students -- International Robotics Competition Frontier Community Services -- James Duff UNSCHEDULED PUBLIC COMMENTS (3 minutes) REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS REPORTS OF KENAI CONVENTION & VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE PUBLIC HEARINGS 1. Amended Ordinance No. 2102-2005 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2005 and Ending June 30, 2006. 2. Ordinance No. 2103-2005 -- Amending the Fine Schedule in KMC 13.10.015 by Adding Negligent Driving, Failure to Yield to an Emergency Vehicle, and Violations of Airport Parking Regulations to the List of Minor Offenses on the Fine Schedule that Can be Disposed of Without a Court Appearance. 3. Resolution No. 2005-16 -- Expressing Support for KPB Ordinance 2005-19; Repealing KPB 2.56.005 and Enacting KPB 2.56.006, Adopting the 2005 Kenai Peninsula Borough Comprehensive Plan. (Postponed from May 18, 2005 meeting.) 4. Resolution No. 2005-24 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2005 and Ending June 30, 2006. 5. Resolution No. 2005-25 -- Transferring $7,500 In the General Fund for Repair of the Fine Arts Building. 6. Resolution No. 2005-26 -- Awarding the Bid to Denny's Construction, Inc. for Concrete Repairs - 2005 for the Total Amount of $22,520. ITEM G: MINUTES ITEM H: OLD BUSINESS 1. Discussion/Approval -- Display of Boat K-6 at Kenai Landing. ITEM I: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $2,500 3. Discussion -- Proposed City of Kenai Mini -Grant (postponed from May 18, 2005 meeting). 4. Discussion/Approval -- SOAR International Ministries, Inc.-- Lot 3, Block 1, General Aviation Apron: 1) Amendment to Lease Changing the Use; and 2) Request to Sublease to Air Supply Alaska, Inc. 5. Discussion -- Conoco/Phillips' Multi -Purpose Facility Naming Proposal. ITEM J: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report C. Arctic Winter Games d. Stranded Gas Committee ITEM K: REPORT OF THE MAYOR �1 ITEM L: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM M: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM N: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING JUNE 1, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Cliff Massie Rick Ross Blaine Gilman James N. Butler, III Pat Porter, Mayor Joe Moore, Vice Mayor Absent was: Linda Swarner A quorum was present. A- 3 . AGENDA APPROVAL MOTION: Council Member Moore MOVED for approval of the agenda as presented and requested UNANIMOUS CONSENT. Council Member Ross SECONDED the motion. There were no objections. SO ORDERED, A-4, CONSENT AGENDA MOTION: Council Member Moore MOVED for approval of the consent agenda as presented and Council Member Butler SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS 1 B-1. Aurora Borealis Students -- International Robotics Competition KENAI CITY COUNCIL MEETING JUNE 1 2005 PAGE 2 Students representing the Aurora Borealis Charter School gave a brief presentation of their program created and performed at the International Robotics Competition earlier in the year. The topic for which they won their award was access of the disabled onto guide boats. Mayor Porter read a proclamation honoring the efforts of the students and their teachers. BREAK TAKEN: 7:15 P.M. BACK TO ORDER: 7:25 P.M. B-2. James Duff, Frontier Community Services -- Mr. Duff stated his address as 259 West Rockwell, Soldotna. Duff offered a brief background of the services Frontier Community Services offer the Kenai Peninsula, noting they are the seventh largest employer on the Peninsula and the fourth largest employer of Soldotna. Duff explained, because of the growth of their organization, they are planning to build a facility to house all their administrative offices and would also like to include in the building a day care center for disabled children. Duff noted their interest in the city's donating a portion of property in the Mommsen Subdivision as a site. With the property, they then can apply for a USDA 40-year loan. City Manager Snow reported the property Duff identified is a 77-acre piece of property. She noted, the Senior Connection had also identified using a portion of the acreage for a site for an assisted living facility. Council requested administration to work with Mr. Duff in preparing a more detailed proposal to bring back to council for consideration. ITEM C: UNSCHEDULED PUBLIC COMMENTS Kristine Schmidt -- Schmidt noted the following: • Commented on Item 5 and the possibility of corporate sponsorship and naming of buildings. Schmidt spoke in opposition to the possibility, asking whether this particular request would comply with a written policy, etc. • Asked if the Frontier Community Services proposal would fit within the Comprehensive Plan, whether placing a facility at that site would be compatible to the area, and suggested the facility would be better placed in downtown Kenai. • Stated her disappointment the mil rate was not decreased. • Requested cost-cutting efforts be made for next year's budget. KENAI CITY COUNCIL MEETING JUNE 1, 2005 PAGE 3 Tim Dillion, General Manager, Arctic Winter Games -- Dillion gave a brief update of the Games' efforts in acquiring funding, noting several grants were funded and funds will be received through the State's budget. Dillion invited all to attend a 'business after hours' event on June 17. ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS -- None. ITEM E: REPORTS OF KENAI CONVENTION & VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE Mya Renken, Director, Kenai Convention & Visitors Bureau -- Renken updated council on events taking place at the Center. ITEM F: PUBLIC HEARINGS F-1, Amended Ordinance No. 2102-2005 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2005 and Ending June 30, 2006. MOTION: Council Member Ross MOVED to adopt Amended Ordinance No. 2102-2005 and Council Member Moore SECONDED the motion. There were no public comments. City Manager Snow noted the amendments to the ordinance as: • Adding $31,000 for dust control application. • Adding $25,000 for a permanent restroom at the North Spruce beach. • Adding $6,000 to the library budget for the purchase of books. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. F-2. Ordinance No. 2103-2005 -- Amending the Fine Schedule in KMC 13.10.015 by Adding Negligent Driving, Failure to Yield to an Emergency Vehicle, and Violations of Airport Parking Regulations to the List of Minor -\ KENAI CITY COUNCIL MEETING DUNE 11 2005 PAGE 4 Offenses on the Fine Schedule that Can be Disposed of Without a Court Appearance. MOTION: Council Member Ross MOVED for the adoption of Ordinance No. 2103-2005 and Council Member Butler SECONDED the motion. There were no public comments. City Attorney Graves gave a brief history of the fine schedule being included in the Kenai City Code. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. F-3. Resolution No. 2005-16 -- Expressing Support for KPB Ordinance 2005-19; Repealing KPB 2.56.005 and Enacting KPB 2.56.006, Adopting the 2005 Kenai Peninsula Borough Comprehensive Plan. (Postponed from May 18, 2005 meeting.) MOTION: Council Member Butler MOVED to adopt Resolution No. 2005-16 and Council Member Ross SECONDED the motion. There were no public comments. MOTION TO AMEND: Council Member Butler MOVED to amend the last 'whereas' changing the reference to the borough's last public hearing date from May 17, 2005 to June 21, 2005. Council Member Gilman SECONDED the motion. Council Member Ross stated he would not support the ordinance due to comments provided from administration; because some of the amendments requested by the city were not included in the final draft; and, some due to some ill-defined language relating to the riparian area buffer zone suggested increase from 50 to 100 feet. VOTE ON AMENDMENT: T� KENAI CITY COUNCIL MEETING JUNE 1 2005 PAGE 5 Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore TYes MOTION PASSED UNANIMOUSLY. VOTE ON MAIN AMENDED MOTION: Swarner Absent Massie No Ross No Gilman No Butler No Porter No Moore No MOTION FAILED UNANIMOUSLY. F-4. Resolution No. 2005-24 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2005 and Ending June 30, 2006. MOTION: f Council Member Massie MOVED for adoption of Resolution No. 2005-24 and Council Member Gilman SECONDED the motion. There were no public or council comments. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes ::j I MOTION PASSED UNANIMOUSLY. F-5. Resolution No. 2005-25 -- Transferring $7,500 In the General Fund for Repair of the Fine Arts Building. MOTION: Council Member Butler MOVED for adoption of Resolution No. 2005-25 and Council Member Moore SECONDED the motion. There were no public comments. KENAI CITY COUNCIL MEETING JUNE 11 2005 PAGE 6 MOTION TO AMEND: Council Member Ross MOVED to amend the title and first whereas to refer to the Historical Society Building instead of Fine Arts Building. Council Member Moore SECONDED the motion. There were no objections. SO ORDERED, George Ford, 526 Ash, Kenai -- Ford indicated he is a member of the Kenai Historical Society Board and explained the board had been considering the need for repairs for some time because they are very interested in conserving the building. Ford stated the outside of the building is in very poor condition and they are hoping the exterior work could be done during the summer to prevent further deterioration. Public Works Manager La Shot indicated bids for replacing the siding had been received and it is believed the work can be done for the $7,500. He added, the Historical Society, with volunteers, have stated they would remove the old siding, remove the old windows and install new windows. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. F-6, Resolution No. 2005-26 -- Awarding the Bid to Denny's Construction, Inc. for Concrete Repairs - 2005 for the Total Amount of $22,520. MOTION: Council Member Ross MOVED for approval of Resolution No. 2005-26 and Council Member Massie SECONDED the motion. There were no public comments. Public Works Manager Kornelis indicated there were 21 different locations and the work would include sidewalk and curb concrete repairs. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes KENAI CITY COUNCIL MEETING DUNE 12 2005 PAGE 7 MOTION PASSED UNANIMOUSLY. ITEM G: MINUTES ITEM H: OLD BUSINESS H-1. Discussion/Approval -- Display of Boat K-6 at Kenai Landing. Attorney Graves referred to information included in the packet and reported the following: • The donor, Jeff Jefferson, does not dispute the city owns the boat. • The initial boat donation was unconditional, however a subsequent monetary donation indicated some of the funds were to be used to maintain the boat. • Jefferson would like the boat to be displayed at Kenai Landing. • Because the boat was donated to the city unconditionally, Council has the authority to display it at Kenai Landing and an agreement for displaying it there could be prepared similar to the one developed for their displaying of the city's cannery equipment. • He is aware of the city donating property to non -profits, but not of donating to a private organization. In discussion of the issue, Council Member Gilman stated he agreed the city should give up the boat because of its neglect. He noted, he believed the boat, if it were to be placed at Kenai Landing, would receive the maintenance it required; the donor wanted the boat to be maintained; the city did not maintain it; the boat should be placed at Kenai Landing with the conditional Kenai Landing maintains it. Council Member Massie concurred with Gilman and noted, he felt Kenai Landing would do a better job of maintaining the boat and agreed the boat should be placed at Kenai Landing. Sue Carter, 36875 Chinulna Drive, Kenai -- Carter explained she was the executive director of the Visitors Center at the time of the transaction. She asked if the monetary donation ($300) for maintaining the boat was in writing. Graves read from a letter signed by Visitors Bureau President, Fred Braun related to the donation for maintaining the boat. Carter also noted: • It was her understanding, the Bureau received the monetary donation and they then contracted for refurbishing the boat. KENAI CITY COUNCIL MEETING DUNE 1, 2005 PAGE 8 • Her concern was that many gifts had been accepted on behalf of the city, as was the boat, and moving the boat could set a precedent and indicate to family members of those who previously donated items, they could remove their donated items for placement elsewhere. • It was her understanding the Bureau's intent is to have the boat refurbished and repaired and would like to keep the boat at the Center given the history of the commercial fishing industry to the city. • Hopes the Council would take additional time in considering the issue before giving up donated items. Dan Van Zee, 37035 Nicholas Lane, Soldotna -- Van Zee (Kenai Landing staf fl distributed some pictures of the boat, noting its present condition. Van Zee noted, the following: • The city did not live up to the expectations of the donee. • The city was responsible for care of the boat. • He feels the boat really belongs at Kenai Landing, but understood the city owns the boat. • He agreed a precedent could be set and they would consider a long-term lease because they would not want to invest funds into the refurbishing if the city decides to take the boat back. • Kenai Landing has spent approximately $5,000 in developing a display area which was done before the concern of who owned the boat came to light. • He is aware of other discussions of the years related to refurbishing of the boat by the Bureau Board. • The original donor believes the boat should be at Kenai Landing where it would be maintained. • There is concern moving the boat could also destroy it and if that would be the case, they would not want to move the boat. Graves indicated, if council is interested in displaying the boat at Kenai Landing, a proposal of either a long-term lease or special use permit should be developed and brought to council for consideration. Discussion followed by council and comments included the conditional of the boat should be maintained; agreement in that the city owns the boat; and, a precedent should not be set for donated items. Additionally, some members of the council felt the boat should stay at the Center and the city provide funding to have the boat repaired. MOTION: KENAI CITY COUNCIL MEETING DUNE 11 2005 PAGE 9 Council Member Ross MOVED to direct Administration to look into the feasibility of a special use permit tied to restoration of the boat and display at Kenai Landing. Council Member Gilman SECONDED the motion. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler No Porter No Moore No MOTION FAILED. MOTION TO TABLE: Council Member Gilman MOVED to table the issue until the June 15, 2005 council meeting and Council Member Ross SECONDED the motion. VOTE: Swarner Absent Massie Yes Ross No Gilman Yes Butler Yes Porter No Moore No MOTION FAILED. MOTION: Council Member Ross MOVED to direct Administration bring the issue back to council with an estimate of repair costs if the city were to do the repairs. Council Member Moore SECONDED the motion. Council Member Butler suggested the motion include "and evaluate whether the boat is movable or not." Ross and Moore stated they had no objection to include that wording to the motion. Rewording of the motion: To direct Administration to bring the issue back to council with an estimate of repair costs if the city were to do the repairs and evaluate whether the boat is movable or not. VOTE: KENAI CITY COUNCIL MEETING JUNE 11 2005 PAGE 10 Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. ITEM I: NEW BUSINESS I-1. Bills to be Ratified MOTION: Council Member Moore MOVED to ratify the bills and Council Member Ross SECONDED the motion. VOTE: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. I-2. Approval of Purchase Orders Exceeding $2,500 MOTION: Council Member Massie MOVED to approve the purchase orders exceeding $2,500 and Council member Moore SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. BREAK TAKEN: 8:29 P.M. BACK TO ORDER: 8:41 P.M. 1-3. Discussion -- Proposed City of Kenai Mini -Grant (postponed from May 18, 2005 meeting). Nate Kiel, 404 Lawton Drive, Kenai -- Kiel noted he is a government/ civics teacher at Kenai Central High School and a part of the curriculum is for the students to work ten to 60 hours on a civic project in the community, either with the municipality or a non-profit organization. He believed a mini -grant program would be very helpful for � KENAI CITY COUNCIL MEETING � JUNE 12 2005 PAGE 11 students who have a good idea for a project, but no funds with which to carry it out He encouraged council to consider the program. Porter explained she brought the concept forward because she believed it would allow opportunities for getting projects done for the community by high school students or other members of the community. A brief discussion took place in which council comments generally concurred with the concept, however some of the language would need to be amended, the funds should be taken from the Legislative budget (though none were identified for this purpose in the FY2006 budget) , and funds awarded would need to be people who live in the city and the project would benefit the City of Kenai. Consensus of council was to refer the mini -grant issue to administration for amending and it be returned to council for final review. I-4. Discussion/Approval -- SOAR International Ministries, Inc.-- Lot 3, Block 1, General Aviation Apron: 1) Amendment to Lease Changing the Use; and 2) Request to Sublease to Air Supply Alaska, Inc. City Manager Snow reported, as the memorandum included in the packet indicated, SOAR International Ministries wishes to sublease to Air Supply Alaska, Inc. She noted, representatives from both organizations were in attendance, i.e. Eric Mayer (SOAR) and Shane Bolin (Air Supply Alaska) . Snow added, the lease currently states the use as charter operations and operations and maintenance of aircraft used in scheduled commuter service. She stated, SOAR is requesting the change of use to hangar and office facility, air cargo services, maintenance and operation of aircraft, including fueling. Snow added, the memorandum stated fueling had been a traditional use on the property and a description of the tanks in service and when they had been in service was included in the memo, along with a description of the area was also included in the memorandum. Snow added, SOAR met with the Fire Marshall and a letter from the Fire Marshall was included in the packet for council review. She noted, the proposal had been reviewed by the city attorney and he had no objections. Additionally, the parties are in compliance with the borough and the city. MOTION: Council member Moore MOVED for approval of the transfer of the lease and Council Member Ross SECONDED the motion. Moore stated concern of the significant change in the lease for the use of the area and noted the original lease with SOAR stated the tenant shall maintain all applicable KENAI CITY COUNCIL MEETING JUNE 1, 2005 PAGE 12 insurance. He asked if the same verbiage relating to insurance would be included in the transfer, noting there would be additional liability with fuel tanks than just parking airplanes. City Attorney Graves explained, SOAR would have to continue with their current insurance requirements as required in their current lease. He added, their lease would still be in effect and they would still have to provide that insurance and provide the proof of insurance. Moore asked if that would include coverage for storing on -site fuel/fuel tanks. He added, he thought it would probably be more expensive to store fuel on -site than to park airplanes. Graves explained, he would have to check their liability policy to see if it included an exclusion for fuel spills. He added, they have a general liability policy, but he was not aware if it would specifically exclude fuel spills as he had not seen the language of the policy. He added, the proof of insurance noted the coverage for ordinary liability. Moore asked Graves if he knew if the new lessee would have insurance coverage for storing fuel tanks. Graves answered, the city does not monitor the insurance requirements between the lessee and the sub -lessee. The city monitors insurance requirements between the city and the lessee. Council Member Gilman stated his understanding of general liability insurance coverage would be an absolute environmental exclusion as part of it so that if there was a spill, it would be very expensive to clean up and there should be the appropriate type of insurance in place to cover that type of risk. He added, before council does this, it should be confirmed that type of insurance policy is in place. He added, he did not believe the general liability policy being offered by the lessee would provide that type of coverage. He added, he would be surprised if it did. Gilman stated, he did not believe it was a hypothetical risk, but a real risk that is out there. Ross requested the principles respond to the issue. Mike Kelly, 52590 Suzeanne, Nikiski. Kelly explained they would not be bringing any fuel tanks on site. He explained, they would have a fuel tank, which was there from the previous sub -lessee for jet fuel for one of their aircraft, and would also have a fuel trailer on the airport at a different location, with 100, to fuel small aircraft. Kelly stated, they would not be setting up a big fueling operation. Referring to Shane Bolin's letter, the possibility of hauling fuel was mentioned because the aircraft they have has that capability. However, they were not certain they would be doing that because it is not a primary focus of their business (this would be a fuel truck and not a tank) . He added, in essence, they would be conducting a very typical fueling operation for anyone having an aircraft on the airport. Porter asked if they were planning on having a fuel truck and not storing fuel there. Kelly answered, the fuel truck would be on site as well as the fuel trailer. KENAI CITY COUNCIL MEETING JUNE 12 2005 PAGE 13 Gilman asked if a fuel spill occurred by the fuel truck on their property, would he have sufficient insurance coverage for that type of clean-up risk. Kelly answered no, they do not have that type of insurance for covering that kind of risk. He added, it was his understanding, as far as airport operations, he would be surprised that anyone out there fueling aircraft would have that type of coverage. Member Ross asked if there was a requirement on the fuel tankers at the airport, that when they are parked they are in a containment area. Acting Fire Chief Tilly referred to the memorandum included in the packet from Fire Marshall Baisden who indicated they follow the NFPA Standards 407 for aircraft fueling services. He added, he could not cite the particular reference, but from what he had seen on the airport, he had not noticed any fuel trucks being stored in a containment area. Butler stated, typically when there is a fuel release a dam is not built around underneath it because of the volatile nature of the substance. He noted, he appreciated SOAR's intent, felt it was a great idea, and the airport is an important asset. The council with the Planning Commission tries to make things work there and have come to an interesting crossroads where they are learning about new risks and how businesses do things. He suggested administration work with the parties to see if there is a way to identify something more specific than the language in No. 11 which states "The Tenant shall maintain all applicable insurance" and see if that applicable insurance could at least bring some level of pollution risk which would fall to the city if in the event there is a 1,000 release of fuel on the ground out there. He added, he wanted to be sure council is communicating it and see this thing happen, but wants to make sure the council balances the risk as much as possible for the city. Moore stated he expected a quick answer from the city attorney saying, yes it would be covered and then move on. He added, he was not aware if other lessees have to carry insurance for their fuel trucks and on -site storage. Moore stated he would amend his motion. MOTION TO AMEND: Council Member Moore MOVED to amend by approving the sublease contingent upon the administration's satisfaction that the sub -lessee is appropriately insured for the activities he's going to conduct at the airport. Council Member Ross SECONDED the motion. Kelly asked if council was proposing they carry the same insurance as comparable operators or something in addition to and above other people who are operating at the airport. Porter stated, it was her understanding it would be at least the same as other people have currently at the airport or council would re -look at all of them. KENAI CITY COUNCIL MEETING JUNE 12 2005 PAGE 14 Graves stated a lot of the airport leases would have to be reviewed because it was his understanding this would not be a type of coverage historically a lot of the operators have there. Porter requested the motion to amend be re -read. City Clerk Freas noted she would have to listen to the tape for accuracy, but stated her notes indicated it was a motion to amend and it was to approve it contingent upon the administration being satisfied that appropriate insurance coverage was available. Moore noted, "obtained for the activities to be conducted." Moore stated, some members of council had dealt with fuel contamination all over the city and the expense in cleaning it up. He added, he does not take it lightly and felt there was a potential liability for cleanup. Ross stated he agreed with Moore's concerns, but noted, the cost of the insurance could be prohibitive. He added, he understood Butler's point relating to containment area and volatility, however containment area is used elsewhere in the industry for parking of tanker fuel trucks (on the Moose Range, U.S. Forest Service requires it) and it is an easier way to deal with it than trying to do it through insurance because it is almost impossible to acquire. Instead, bladder containment areas are used and is where the vehicle is stored overnight. He noted, it is an easier way to deal with it, it is far less expensive, and is something a small operator can afford. Gilman stated he was concerned about the risk and did not know what insurance was available or its cost and would be really concerned if the city's insurance would not pick it up. He used an example: There's a spill at the site; their (SOAR) insurance does not cover it; they can't afford to pay for it because it's a $150,000 clean-up or something; and then the city goes to its insurance carrier and finds the city does not have coverage either. He added, if that type of situation happens, the council needs to be apprised of it in order to make an acceptable decision of whether council wants to have that type of activity on the airport. Ross stated if the issue cannot be resolved related to the insurance, administration could come back to council with an alternative, i.e. bunkering for overnight, etc. He added, for the time being, he was satisfied Moore's motion would 'get the ball rolling' looking in the right direction. He added, if it is found it is not the way to proceed, administration could come back to council and it was not a 'no' to the parties either, but saying council is willing to look at it. City Manager Snow requested clarification, i.e. if in the event administration finds it cannot be resolved in the way the motion is worded, but could be resolved by running it through the city's insurance company, relating to the requirements listed in Fire Marshall Baisden's memorandum which noted six requirements all regarding fuel KENAI CITY COUNCIL MEETING JUNE 1, 2005 PAGE 15 containment and fuel storage, if those requirements are met and the city's insurance covers other kinds of operations on the airport, that could be brought back to council for review. Several council members answered yes. Porter stated, it was her understanding the Fire Marshall set out the requirements. Kelly stated the fuel truck they were discussing is one that had been there with the previous lessee during their operation for the previous year and one-half. He added, the fuel trailer he is discussing is one for which they received approval (perhaps unknown to council) for fueling aircraft they currently have there. Kelly explained, what they were proposing for the two vehicles... if the city wants airplanes operating on the airport, they have to be fueled. He added, they appreciate and will be very good tenants as far as environmental risks, etc., however the reality is, if the city is going to run an airport and have airplanes on it, they have to have fuel. They are proposing is to run airplanes on the city's airport. Council Member Massie stated, apparently a similar fueling operation had been operating for several years and SOAR would not be doing anything different. He added, it may be good to find out what insurance coverage is available, but as far as he was concerned, council could go ahead and pass it. Porter requested the vote on the motion. Freas noted, the vote would be on the amendment to the motion. VOTE ON AMENDMENT: Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. Porter requested the main motion be reread. Freas noted, the main motion was to 'approve the transfer of the lease.' Butler requested a clarification the wording referred to "transfer" of the lease and not allowing the sublease. Freas stated she felt confident with the accuracy of her notes and had been a concern of hers at the time the motion was made as it did not refer to the amendment and the request to sublease. Moore stated he would accept that as a friendly amendment (to correct the wording of the motion to refer to the Amendment to Lease Changing the Use and 2) Request to Sublease to Air Supply Alaska, Inc.) . The maker of the second, Ross, concurred. VOTE ON MAIN AMENDED MOTION: KENAI CITY COUNCIL MEETING JUNE 12 2005 PAGE 16 Swarner Absent Massie Yes Ross Yes Gilman Yes Butler Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. Porter thanked Kelly for attending the meeting and wished them good luck with their business as it all worked out. I-5. Discussion -- Conoco/Phillips' Multi -Purpose Facility Naming Proposal. Snow referred to a memorandum and letter included in the packet which explained ConocoPhillips' desire to purchase the naming rights to the multipurpose facility: • Purchase and install signage. • Purchase naming rights from the City of Kenai of the multipurpose facility at a price of $5,000 per year for three years. • Placing an inside sign on the spectator facing wall ceiling, a lit building sign facing the front of the building, and a grounds sign outside the state right-of-way facing the highway. A brief discussion followed in which it was noted, this was a new idea and different from any other naming of a park, etc. that has been done in the past. Council requested the issue be forwarded to the Parks & Recreation Commission for a recommendation. It was noted, the issue could be added to the June 2 meeting, but advertised with the July meeting agenda. Peter Micciche, ConocoPhillips Alaska -- Micciche noted ConocoPhillips had available philanthropic and advertising funds for this project; they consider this offer being a continuation of a partnership with the City of Kenai since 1967; he would be happy to go before the Parks 8. Recreation Commission; $17,500 of the funds to the city would come from their advertising budget and some of those funds could be used toward small repairs or running the facility; noted that throughout the Kenai Peninsula School District, ballfields, gyms and hockey .rinks are surrounded with partnership signs and that is what they are offering, only in a larger size; the design of the sign could be adjusted; and, they want to be recognized as a partner. A brief discussion followed in which it was noted, the offer was for a three-year naming agreement; it is an interesting concept; ConocoPhillips has not entered into a like agreement before; giving ConocoPhillips the right of first refusal for additional years could be renegotiated and could open the door to a significantly larger donation from another entity and allow ConocoPhillips to either match a higher amount or the higher KENAI CITY COUNCIL MEETING JUNE 1, 2005 PAGE 17 offer could be a new naming entity. Attorney Graves noted, because this concept is an intangible object, neither the Charter or Code speak to how the city would sell a license to name a facility. Consensus of council was to send the issue to the Parks & Recreation Commission for review and comment and returned to council for further consideration. ITEM J: COMMISSION / COMMITTEE REPORTS J-1. Council on Aging -- Next meeting scheduled for June 2, 2005. J-2. Airport Commission -- No report. J-3. Harbor Commission -- Next meeting scheduled for Monday, June 6, 2005. J-4. Library Commission -- Next meeting scheduled for Tuesday, June 7. J-5. Parks & Recreation Commission -- Next meeting scheduled for June 2. It was noted, there had been response received related to the Section 36 soccer field proposal. J-6. Planning & Zoning Commission -- The minutes of the May 25 meeting were included in the packet. It was noted, the next meeting will hear the rezone request for Lawton Acres. It was suggested representatives from administration be available to answer questions. J-7. Miscellaneous Commissions and Committees J-7a. Beautification Committee -- Next meeting scheduled for June 14. Porter reported the welding shop at the Kenai Central High School have communicated to her they would be willing to make, at no cost to the city, metal salmon to place in planters around town. She will follow up on the offer. J-7b. Alaska Municipal League Report -- No report. J-7c. Arctic Winter Games -- Next meeting is scheduled for Thursday, June 9. J-7d. Stranded Gas Committee -- Ross reported a meeting will be held the end of June. He also reported the next Agrium meeting was scheduled for Friday, June 3. ITEM K: REPORT OF THE MAYOR KENAI CITY COUNCIL MEETING JUNE 1 2005 PAGE 18 Porter requested direction related to the list of issues developed during the budget work sessions to address in a strategic planning session. A brief discussion took place and it was determined the format should be more formal than a work session; a facilitator is not necessary; and, a list of topics should be included in the next council packet. ITEM L: ADMINISTRATION REPORTS L-1, City Manager -- City Manager Snow reported a letter was received from James McConnell representing the Senior Connection and making a formal request for a resolution of intent to donate a portion of the 77 acres in Mommsen Subdivision for an assisted living facility site. Snow suggested if council would like to proceed with a resolution, administration would place a draft resolution in the next packet for review. City Attorney Graves noted, the recently passed ordinance requires an intended donation of property without a public sale be presented by ordinance in order for public hearings to be held. Snow noted, there would be more procedures and processes needing to be taken prior to the actual donation of property being made. Snow noted, the resolution requested would be an expression of intent which would be included with the Connection's application. Consensus of council was to prepare a draft resolution and include it in the next council meeting packet for initial review. James McConnell, 19501 Wingham Circle, Eagle River -- McConnell reported the Senior Connection was in the process of advertising a request for architectural proposals for developing a preliminary design. They mailed out approximately 16 packages to architects. They are proceeding with the city property on Mommsen and are moving ahead using grant funds of $25,000 and $10,000 put forward by the Connection for this purpose. K-2. Attorney -- No comments. K-3. City Clerk -- No comments. Finance Director Semmens reported the Legislature included $270,000 to the City for PERS payments and $290,000 for road and sewer improvements. Mayor Porter noted former City Manager Roland Lynn recently passed away. ITEM M:. DISCUSSION jM-1. Citizens -- None. KENAI CITY COUNCIL MEETING JUNE 1, 2005 PAGE 19 M-2. Council -- Moore -- Suggested, with the funds to be received for road and sewer improvements, the city's program for assessment districts be reinitiated. Massie -- No comments. Ross -- No comments. Gilman -- No comments. Butler -- No comments. EXECUTIVE SESSION - None Scheduled ITEM N: ADJOURNMENT The meeting adjourned at approximately 9:42 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk ARROVO sY couwcot { CLERf.M