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HomeMy WebLinkAbout2005-11-02 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 2, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt :Z Z,www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: 1. 2. 3. ITEM C: ITEM D : ITEM E: 1. 2. SCHEDULED PUBLIC COMMENTS (10 minutes) Bill Coghill, Mikunda Cottrell & Co -- Financial Statement Kenai Historical Society Representative -- Possible Cabin Acquisition/Ladd Estate. Jessica Bookey -- Use of Library/ Support of Proposed Expansion. UNSCHEDULED PUBLIC COMMENTS (3 minutes) REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS PUBLIC HEARINGS Ordinance No. 2128-2005 -- Increasing Estimated Revenues and Appropriations by $6,200 in the General Fund for a Library Grant. Ordinance No. 2129-2005 -- Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys & Girls Club State Grant. 3. Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishes Rules for Council Members to Telephonically Participate in Council Meetings. 4. Resolution No. 2005-48 -- Directing the Continuation of the Project Entitled "Set Net Drive (From VIP Drive to Watergate Way)" and Designating What Improvements Are to be Included in This Project. 5. 6. 7. ITEM F: 1. ITEM G: 1. ITEM H: 1. 2. 3. 4. *Liquor License Transfer -- George 8s Ekaterina Pitsilionis, d/b/a Pizza Paradisos to George Pitsilionis, d/b/a Pizza Paradisos. *Liquor License Transfer -- Kenai Golf Course, Inc., d/b/a Kenai Golf Course Caf6 to George Lagoutaris & Christina Lagoutaris, d/ b / a Katrina's Greek & Italian Restaurant. *Application for Restaurant Designation Permit -- George Lagoutaris & Christina Lagoutaris, d/b/a Katina's Greek 8v Italian Restaurant. MINUTES *Regular City Council Meeting of October 19, 2005. OLD BUSINESS Discussion -- Proposed Sale of Wetlands/The Conservation Fund. NEW BUSINESS Bills to be Ratified Approval of Purchase Orders Exceeding $15,000 *Ordinance No. 2131 -- Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. *Ordinance No. 2132 -- Increasing Estimated Revenues and Appropriations by $5,000 in the General Fund for a Donation Made by Tesoro Petroleum Co. to be Used for the Town Clock. 5. Approval -- Assignments of Shore Fishery Leases -- Tract 3 Shore Fishery Plat No. 71 and Tracts 5 & 6, Shore Fishery Plat No. 71 /From Randale Canady to Kenai Salmon Company, Inc. 6. Approval -- Assignment/Amendment of Lease -- Lot 7, Block 2, Fidalgo Commercial Center -- From Commercial Development to William Borchardt. 7. Discussion -- Amendment of City of Kenai Mini -Grant Overview/Procedures -- Possible Steering Committee Amendment. 8. Discussion -- McCollum/Aliak Drive L.I.D. -- City Manager Report to City Council. ITEM I: 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 J: REPORT OF THE MAYOR ITEM K: ADMINISTR.ATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 2, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : Z Z..www.ci.kenai.a.k.us MAYOR PAT PORTER, PRESIDING MINUTES 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: Pat Porter, Mayor Joe Moore Linda Swarner Cliff Massie Rick Ross Bob Molloy Mike Boyle A quorum was present. Also Present: Les Krusen, Student Representative A-3, AGENDA APPROVAL Mayor Porter requested the following changes to the agenda: SUPPLEMENTAL INFORMATION: B-1, Bill Coghill -- Comprehensive Annual Financial Report and Federal Single Audit Report. SUPPLEMENTAL INFORMATION: E-4, Resolution No. 2005-48 (KMC 16.10.070 and Set Net Drive aerial photo) ADDITION TO: I-4, Library Commission Report -- Application of Blaine Gilman for placement on Library Commission. ADDITION TO: Item J, Mayor's Report -- Information related to Halibut Charter IFQ proposal (request for resolution in opposition). KENAI CITY COUNCIL MEETING l NOVEMBER 2, 2005 PAGE 2 MOTION: Council Member Massie MOVED for approval of the agenda with the additional information indicated. Council Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, A-4, CONSENT AGENDA Council Member Molloy stated a conflict of interest on Item E-5 and requested recusal from the action to be taken. There were no objections from Mayor or Council Members. MOTION: Council Member Molloy MOVED to approve the consent agenda as presented and Council Member Boyle SECONDED the motion. Council Member Massie requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Bill Coghill, Mikunda Cottrell & Co -- Financial Statement Bill Coghill referred to of the City's Federal Single Audit Reports, dated June 30, 2005 and also reviewed the Comprehensive Annual Financial Report which were distributed at the beginning of the meeting. He noted the total assets of the city to be $143 million. In reviewing the audit report, Coghill the federal audit was found to be clean with no exceptions or questioned costs. He also noted, there was no state audit required as the city had received no grant funds large enough from the state to require an audit. Acting City Manager/ Finance Director Semmens noted statistical information was included in this year's report due to the city's early implementation of the GASB44 requirements. B-2. Kenai Historical Society Representative -- Possible Cabin Acquisition/ Ladd Estate. George Ford, 526 Ash Avenue, Kenai -- Mr. Ford explained the Kenai Historical Society had been contacted by the executors of the estate of Clarence Ladd and asked if the Society would be interested in receiving the Dolchok cabin as a gift from the estate. He added, the estate was planning to remove the cabin from the Old Town lot and the only stipulation of the Society receiving the cabin was that a plaque noting it was a gift from the estate to the Society be placed on the cabin. KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 3 Ford further explained, the Society was very interested in accepting the cabin and preserving it (it was built in 1922); the Society has no land on which to place the cabin; and, if the city is interested in moving the cabin to a city lot in Old Town, the Society would be willing to donate $2,000 toward the relocation. Ford noted also, an old cabin and cannon now situated at Fort Kenay, which had been left to the Society, but were not available for the public to see, as well as two additional cabins that he understood belonged to the city should be considered to be moved as well. Ford stated, the Society would transfer title of the cabin and cannon to the city if it so desired. Ford suggested the cabins/ cannon be placed on city land adjacent to the Kenai Chamber of Commerce. City Attorney Graves noted, in the 90's two of the cabins that were situated at Fort Kenay, were transferred, along with the Fort, to the Russian Church. The City retains a right of purchase if the Church no longer wants the cabins. Mayor Porter suggested the issue be turned over to administration to formulate a plan and estimate of costs to move the Ladd cabin. In addition, the city manager was requested to write a letter to the Church and asking the possibility of moving the cabins/cannon from their site to another site for the Historical Society after investigating the true ownership of the items. B-3. Jessica Bookey -- Use of Library/Support of Proposed Expansion. Jessica Bookey, P.O. Box 406, Kenai -- Bookey spoke in support of the Kenai Library; its importance to the community; its being a safe and loving environment; and its need for additional space. She thanked the library staff for enriching the community and requested council to consider the library's many attributes with regard to preparation of the budget. ITEM C: UNSCHEDULED PUBLIC COMMENTS C-1. Ricky Gease, Director, Sportfishing Association, 4289 Beaver Loop Road, Kenai. Gease reviewed information included in the packet relating to a request from the Homer Chamber of Commerce for a resolution opposing the Halibut Charter IFQ. He explained, the proposed IFQ would privatize a public resource, impacting chartering businesses on the Peninsula and other areas through the high cost to the businesses the quota would require, most likely causing businesses to close, and how the trickle - down effect would be devastating to communities. Gease urged the council to forward a resolution in opposition to the Halibut Charter IFQ. l Council requested a resolution be brought forward for consideration at the November I 16, 2005 meeting. KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 4 ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS -- None. ITEM E: PUBLIC HEARINGS E-14, Ordinance No. 2128-2005 -- Increasing Estimated Revenues and Appropriations by $6,200 in the General Fund for a Library Grant. MOTION: Council Member Massie MOVED for approval of Ordinance No. 2128-2005 and Council member Swarner SECONDED the motion. There were no public or council comments. VOTE: . ) *Student Representative Krusen: Absent Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes MOTION PASSED UNANIMOUSLY. E-2. Ordinance No. 2129-2005 -- Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys 8. Girls Club State Grant. MOTION: Council Member Moore MOVED to adopt Ordinance No. 2129-2005 and Council member Massie SECONDED the motion. There were no public or council comments. VOTE: *Student Representative Krusen: Absent Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 5 Boyle Yes MOTION PASSED UNANIMOUSLY. E-3., Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishes Rules for Council Members to Telephonically Participate in Council Meetings. MOTION: Council Member Moore MOVED for adoption of Ordinance No. 2130-2005 and Council Member Swarner SECONDED the motion. There were no public comments. Discussion followed in which Attorney Graves noted the cities contacted had different numbers of members allowed to be physically absent, but telephonically participate. He stated he picked three members because he based the ordinance on the Ketchikan Gateway Borough ordinance. Council Member Molloy stated his concern in allowing the quorum being established by telephonic participation and noted, if there was not a quorum physically present, the meeting should probably be postponed. Ross agreed, and added, his concern with having three members participating telephonically and suggested it be reduced to two as well as reducing the number of meetings allowed for a member to participate telephonically be reduced to two from three. He added, he believed council should be encouraged to be physically present and did not believe the public would be well represented if members were not physically present. MOTION TO AMEND: Council Member Ross MOVED to amend Section (b) to state "no more than the first two members..." and Council Member Moore SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Krusen: Absent Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy -Yes Boyle No MOTION PASSED. MOTION TO AMEND: KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 6 Council member Ross MOVED to amend Section (n), to read "...Each Council Member may attend a maximum of two meetings by teleconference..." Council Member Molloy SECONDED the motion. Moore stated his preference the council would not be locked into two meetings and be allowed more than two with council approval. Council Member Boyle stated his preference to allow for three or perhaps four times a year to participate telephonically as it would allow a council member who must be out of town to still participate. Massie stated his agreement with Ross, i.e., that members should use the ordinance sparingly. VOTE ON AMENDMENT: *Student Representative Krusen: Absent Porter. Yes Moore No Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle No MOTION PASSED, MOTION: Council Member Molloy MOVED to amend Section (i) by deleting "...provided that if the member participating by telephone is necessary to achieve a quorum, the meeting shall be at ease, recess or adjourn as necessary until the telephone connection is established or restored." Council Member Massie SECONDED the motion. Molloy explained, this would eliminate making a quorum by telephone participation. Boyle stated, if the amendment was approved, Item (e) would become moot. Moore noted, it would require four members physically present to constitute a quorum. VOTE: *Student Representative Krusen: Absent Porter Yes Moore No Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes MOTION PASSED, MOTION TO AMEND: KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 7 Council Member Molloy MOVED to remove the word "quorum" from Item (e) and Council Member Swarner SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Krusen: Absent Porter Yes Moore No Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes MOTION PASSED, Mayor Porter passed the gavel to Vice Mayor Moore. MOTION TO AMEND: Mayor Porter MOVED to amend by removing Item (1) and Council Member Molloy SECONDED the motion. Porter explained, if a council member is participating telephonically, that person should not be allowed to participate in discussions that could be involved in an executive session because of the possible lack of security, i.e. others could listen in on the proceedings. Attorney Graves explained, under the Open Meetings Act, the ordinance was needing a provision to require the audience being able to hear what those participating by telephone are saying. He suggested deleting, "...provided that in executive session the remarks shall be audible only to those included in the executive session." Porter stated it was her intent to not allow telephonic participation during an executive session. RESTATEMENT OF MOTION: Porter, with the concurrence of Molloy, restated her motion to amend Section (1) by deleting, "...provided that in executive session the remarks shall be audible only to those included in the executive session." Moore asked if it was Porter's intent to not allow members who may be participating telephonically in a regular meeting to be excluded from participating in an executive session. Porter stated that was the intent of her motion. Moore stated he would not KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 8 support the motion as it would be the responsibility of those participating telephonically to be sure they were in a secure area and using a secure telephone line. Swarner stated she would not support the amendment as she felt council members acknowledge in taking the oath their responsibility to be participating in a secure area, using the most secure means of telephone available, etc. Ross agreed, and stated he believed a member participating in other parts of a meeting should participate in an any executive session that may also take place as part of that meeting. Massie agreed with both sides and added, he believed a member should not be participating from a cellular phone. VOTE ON AMENDMENT: *Student Representative Krusen: Absent Porter Yes Moore No Swarner No Massie Yes Ross No Molloy Yes Boyle No MOTION FAILED. VOTE ON MAIN MOTION AS AMENDED: *Student Representative Krusen: Absent Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes MOTION PASSED UNANIMOUSLY. Swarner requested the ordinance be returned to council for review in one year. There were no obj ections from council. E-4. Resolution No. 2005-48 -- Directing the Continuation of the Project Entitled "Set Net Drive (From VIP Drive to Watergate Way)" and Designating What Improvements Are to be Included in This Project. MOTION: Council Member Moore MOVED for approval of Resolution No. 2005-48 and Council ,r} Member Ross SECONDED the motion. KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 9 The floor was opened for public comment. Joe Corpus (Ruby Bingham, 2610 Watergate Way, Kenai -- Mr. Corpus noted he and his wife sent a letter of objection to the project as far as their property was concerned; they felt the assessment was wrong; they as homeowners, should not be assessed on square footage when only the corner of their property was on Set Net Drive; the majority of their property is on Watergate Way; they own the lot along Watergate Way as well as a lot on Set Net Drive where their house is now situated. Corpus added, if they ever build on the now empty property, the house would front on Watergate Way, and whether Set Net Drive is paved or not would not matter to them as they do not access their property from Watergate. Corpus suggested, if they were to be assessed, they believed the correct assessment would be based on the frontage actually facing Set Net Drive. Corpus also stated he had never heard of an assessment based on square footage for an improvement on a road. Acting City Manager Semmens referred to the preliminary assessment roll which was included in the packet. He noted: • The Corpus/Bingham property was listed as No. 6 and the value of the Corpus unimproved property was listed as $14,500. • The Code states an assessment may not be levied greater than 25% of the fair market value of the property. • The Corpus property, as well as two additional unimproved lots valued at $14,500, would be charged more than 25% of the assessed value. • Three parcels would not comply with the code. • A similar situation occurred with the assessment district for Schooner Circle and involved the property owned adjacent. With that LID, the other owners agreed to pay an amount higher than they otherwise would have in order to have the street paved. The same thing could happen with this LID, but no proposal to that effect had been made. • Council could choose to assess this property on a different basis, i.e. a lineal foot basis, however the normal assessment is based on square feet, however, the code provision did not preclude an assessment based on a different basis. • Council could choose to fund the shortfall (which could be more after the project is completed); council could choose to use the grant funds to cover the cost of the project which was not assessable to the three properties; or, council could choose not to go forward with the project. Molloy asked if the code required assessment on a square footage basis and Attorney Graves noted the code included wording to allow council to develop a different method of assessment. KENAI CITY COUNCIL MEETING �. NOVEMBER 2, 2005 PAGE 10 Discussion continued in which concern was expressed the preliminary assessment roll was brought forward if it was against the code. Semmens noted, what could be done is assess the property to the 25% of value and then the city fund the excess or, as done in the Schooner Circle LID, the other owners could agree to pay a different amount. He added, in the past, other methods have been used, i.e. all the parcels paid an equal amount regardless of lot size and where one parcel was limited to ten percent and the remaining lot owners paid the difference. Semmens recommended council at least consider a lineal foot calculation to see if that type of calculation would bring the assessment on these parcels within the 25%. Ross noted, though Corpus did not use Set Net Drive to access his unimproved lot, he could sell the lot and a new owner could decide to access the lot from Set Net and be benefited by the paving. Ross added, his concern with changing from square footage was that the area in question did not have uniform lot sizes, and it was difficult for him not to want to use the square footage calculation. Corpus asked if he could appeal to the 25% assessment of the lot because it was unimproved. Ross agreed the city could not exceed the 25% of the assessed value. } Ross stated he did not object to other calculations being prepared and not exceed the 25% of assessed valuation, but was not in favor of changing the calculation for one lot. Semmens noted, that would mean the municipal match grant share, instead of being half of the project ($110,000), would be approximately $18,000 more. Ross agreed and added, it would affect other lots situated in the same the Corpus lot was, i.e. unimproved property would be assessed at not exceeding the 25% which he did not believe would create inequities against those with residences. MOTION TO TABLE: Council Member Swarner MOVED to table the resolution until the next scheduled meeting with information brought back to council. Council Member Moore SECONDED the motion. Ross asked if there was a time issue on the resolution and Graves noted, there was a time issue to start the public hearing and suggested asking for further public testimony. There was no other requests to speak from the public. VOTE ON MOTION TO TABLE: *Student Representative Krusen: Absent Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 11 MOTION PASSED UNANIMOUSLY. E-5. Liquor License Transfer -- George 8a Ekaterina Pitsilionis, d/b/a Pizza Paradisos to George Pitsilionis, d/b/a Pizza Paradisos. Approved by consent agenda. E-6. Liquor License Transfer -- Kenai Golf Course, Inc., d/ b/ a Kenai Golf Course Cafe to George Lagoutaris 8, Christina Lagoutaris, d/ b / a Katrina's Greek & Italian Restaurant. Approved by consent agenda. E-?. Application for Restaurant Designation Permit -- George Lagoutaris & Christina Lagoutaris, d/ b / a Katina's Greek & Italian Restaurant. Approved by consent agenda. ITEM F: MINi7TRS F-1. Regular City Council Meeting of October 19, 2005 -- Approved by consent agenda. ITEM G: OLD BUSINESS G-1. Discussion -- Proposed Sale of Wetlands/The Conservation Fund. Ross stated his opposition to selling the identified wetlands as it would tie the lands up in perpetuity, it was not known what the needs of the community would be in 100 years or the condition of the property and he believed it not in the city's best interest to make the sale. He also noted, the lands could be of interest for negotiating or use by the city at some point. Swarner stated she had no objection to selling the land to The Conservation Fund, however did not approve of comments included in the July 8, 2005 correspondence from Brad Meiklejohn (representing the Fund) to Public Works Manager Keith Kornelis in which Meiklej ohn stated the Fund would not be the long-term owner and it would most likely donate the lands to the State of Alaska for inclusion in the Kenai River Special Management Area. Swarner added, she would not support any lands being put into the Kenai River Special Management Area. KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 12 Moore agreed with Ross and Swarner's comments and noted, the council fought to keep city properties out of the Management Area and he would not support any sale of property to the Fund if the intent was to give it to the Management Area. MOTION: Council Member Swarner MOVED the city sell Parcels 4, 5, 6 as indicated on the map (noting Parcel 6, $1,000, 2.04 Acres; Parcel 5, $27,500, 61.37 Acres; Parcel 4, $820002 14.63 Acres) . Council Member Massie SECONDED the motion. Boyle noted his reluctance to vote on the issue as he did not have the previously distributed information and map available to him. Swarner stated, because action was not required until November 30, she had no objection to postponing action on the issue in order for the new members to review previous information. MOTION: Council Member Swarner MOVED to postpone the issue until the next council meeting and Council Member Boyle SECONDED the motion. VOTE: *Student Representative Krusen: Absent Porter No Moore No Swarner Yes Massie Yes Ross No Molloy Yes Boyle Yes MOTION PASSED, ITEM H: NEW BUSINESS H-1. Bills to be Ratified MOTION: Council member Swarner MOVED to ratify the payments over $15,000 and requested UNANIMOUS CONSENT. Council Member Moore SECONDED the motion. There were no objections. SO ORDERED. H-2. Approval of Purchase Orders Exceeding $15,000 -- None. KENAI CITY COUNCIL MEETING NOVEMBER 2 2005 PAGE 13 H-3., Ordinance No. 2131 -- Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. Introduced by consent agenda. H-4. Ordinance No. 2132 -- Increasing Estimated Revenues and Appropriations by $5,000 in the General Fund for a Donation Made by Tesoro Petroleum Co. to be Used for the Town Clock. Introduced by consent agenda. H-5. Approval -- Assignments of Shore Fishery Leases -- Tract 3 Shore Fishery Plat No. 71 and Tracts 5 & 6, Shore Fishery Plat No. 71 /From Randale Canady to Kenai Salmon Company, Inc. MOTION. Council Member Swarner MOVED for approval of the assignments of Shore Fishery Leases, Tract 3 Shore Fishery Plat No. 71 and Tracts 5 & 6, Shore Fishery Plat No. 71 as outlined in H-5 in the packet and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED. H-6. Approval -- Assignment/Amendment of Lease -- Lot 7, Block 2, Fidalgo Commercial Center -- From Commercial Development to William Borchardt. MOTION: Council Member Swarner MOVED for approval of the Assignment/Amendment of Lease as outlined in Item H-6 in the packet and requested UNANIMOUS CONSENT. Council Member Moore SECONDED the motion. Moore, referring to information in the packet memorandum noting inadequacy of insurance requirements in older leases, he asked why the city was waiting for assignments to come forward before amending the lease insurance requirements. Graves explained, if the insurance requirements are in the lease documents, the city could not unilaterally amend the lease; it must be done by mutual consent; the only time the city has real leverage is when an assignment is requested; and, at that time the city has the opportunity to state the assignment could be approved, but the city wants to change the insurance requirements. Moore stated his concern it was not good business practice under which to be operating and asked if wording could be included that adequacy of insurance would be KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 14 reviewed on an annual basis. Swarner questioned how often the lease rate is reviewed and Graves answered every five years. She asked if at the five-year review, the insurance rate could be reviewed as well. Graves noted, if the insurance rate is set firmly in the contract, only the lease renegotiation rate is reviewed. He added, after Titles 21 and 22 are rewritten, the leases will be rewritten at that time as well and the insurance rate concerns could be reviewed at that time too. VOTE: There were no objections. SO ORDERED. H-7. Discussion -- Amendment of City of Kenai Mini -Grant Overview/ Procedures -- Possible Steering Committee Amendment. Porter explained she requested the issue be brought to council and requested an amendment be made to the selection of the steering committee. She noted, as currently written, the procedures require the council to approve the appointment of the steering committee. She suggested deletion of the first portion of the paragraph as she found it too cumbersome in appointing specific people as they may not always be available at the time an application may need review. Porter requested the steering committee consist of the Mayor, a member of the Kenai Economic Development group, a representative from the Kenai Central High School and the Chamber of Commerce. All four groups would participate, but the people may change as to who would actually be reviewing the applications and the mayor would appoint the committee members. Moore stated, because city funds would be expended, he believed the council should be involved in approving the committee. Porter suggested council approve the appointments, and at least three of the four be represented when reviewing applications in case a member will not be available. Council had no objections to that suggestion and Porter stated she would bring forward names of representatives from the group for appointment by council. H-8. Discussion -- McCollum/Aliak Drive L.I.D. -- City Manager Report to City Council. Acting City Manager Semmens noted the report required by code related to the formation of this assessment district was included in the packet and the estimated cost of the project was at $440,000. It was also noted, no formal action was necessary at this meeting, however the process would move forward through a resolution to set a public hearing after the preliminary assessment roll is submitted to the City Clerk. ITEM I: COMMISSION / COMMITTEE REPORTS KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 15 I-1. Council on Aging -- Boyle reported the next meeting was scheduled for November 3. I-2., Airport Commission -- Swarner reported a new vehicle parking program had begun at the airport. I-3. Harbor Commission -- Massie reported the next meeting was scheduled for November 7. I-4. Library Commission -- Molloy reported a meeting was held November 1 and reviewed actions taken. He noted, the top applicant for the library director would be at the library on November 7 to meet the commission and members of the Friends of the Library. Porter noted the inclusion of two applications for consideration as appointments to the Commission: Rebecca Gilman and Blaine Gilman. Porter suggested the appointment of Rebecca Gilman. There were no objections from Council. I-5. Parks & Recreation Commission -- Moore reported a meeting was scheduled for November 4. I-6. Planning & Zoning Commission -- Ross reported the minutes of the October 26 meeting were included in the packet and reviewed actions taken. Porter noted a seat was available on the Commission and suggested Ryan Lawrence, a current member of the Parks 8s Recreation Commission be appointed (the application was included in the packet). Council had no objections. I-7. Miscellaneous Commissions and Committees I-7a. Beautification Committee -- Swarner reported the next meeting would be held on November 8. I-7b. Alaska Municipal League Report -- Swarner noted the Fall Conference would be held in Anchorage November 9-11. I-7c. Arctic Winter Games -- Director Frates reported the next meeting would be held November 10; the International Committee had visited, met and discussed the progress of the event; the bleachers had arrived and bids for setting up the bleachers were available; choosing of a contractor was expected to take place during the next week; and, security camera options would be reviewed in the near future. I-7d. Stranded Gas Committee -- No report. ` KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 16 ITEM J: REPORT OF THE MAYOR -- Mayor Porter reported: • Reminded council of a work session scheduled for November 12 to review applications for the city manager position. • Reminded council of a work session scheduled by the airport consultant for November 18 beginning at 3:00 p.m. She noted, moving the session to 1:00 p.m. had been requested. Council had no objections to moving the session to 1:00, however it was noted several may not be in attendance until later in the afternoon. • Asked to reschedule the review of video by Paul Gray "Exploring Kenai" for 12:30 p.m. on November 18. There were no objections. • She and Council Member Moore participated in a question/answer session on the radio. • Referred to a memorandum included in the packet from Finance Director Semmens related to health insurance. Semmens reviewed the memorandum with council and stated, though he did not believe the code required council's input to allow administration to change the insurance plan but he would rather council be on board if a change is made; he will need a decision by the first meeting in December; and, he would be meeting with representatives from Blue Cross and members of the employee insurance committee next week to discuss the issue further. Ross suggested, after Semmens meets with Blue Cross and the employees, a work session be set for council to review the options. Council consensus was for administration to bring costs and options to them for review either through a work session or as a meeting agenda item. • She invited council to attend a presentation being made on December 1 by a representative from a branding company. She noted members of the Chamber of Commerce and the KEDS group had also been invited. The presentation would take place at 3:00 at the Visitors Center. ITEM K: ADMINISTRATION REPORTS K-1, City Manager -- Semmens noted Information 3 included purchase orders in the amount of $2,500 to $15,000 as requested by council. He also noted Acting City Manager Kopp would be back in the office on Monday. K-2. Attorney -- Graves referred to his memorandum in the packet noting amounts collected from Permanent Fund Dividend attachments for unpaid traffic fines. He added, it appeared the total collections for the city would be at least $25,000 or 83% of what was possible this year. K-3. City Clerk -- No report. ITEM L: DISCUSSION KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 17 L-1, Citizens -- Mya Renken, 41052 Kalifornsky Beach Road, Kenai -- Reported she is the Vice Chair of the KEDS Team and thanked Andy Varner for his assistance in transitioning the group from planning to an action team. She wished Varner well in his new position. Renken also reported Emily DeForest was elected Queen of Kenai. L-2, Council Porter -- Requested administration to investigate whether funds would be available in the airport supplemental plan project fund for the consultant to review plans for future development along the highway, i.e. Lawton Acres, etc. Administration was requested to report back with the information at the November 16 meeting. Moore -- No comments. Swarner -- • Questioned progress of Wellhouse No. 4. Semmens reported Public Works Manager Kornelis was working with the testing companies related to the removal of arsenic. Swarner requested Kornelis forward a report on the status of the issue. • Asked when a new VISTA Volunteer would be chosen and VISTA Volunteer Varner stated January. • Reported she would be meeting with representatives of the Rasmuson Foundation while attending the AML Conference. She requested she be informed of ideas for more projects that could be funded by the Foundation. Massie -- Noted there had been a number of comments related to the Wal-Mart lease application on the radio talk show and there were some misconceptions and lots of ideas stated. He asked, since it would be the biggest project for some time in Kenai, if there were plans to inform the public on the project, i.e. site plan, etc. in order to educate the public. Porter noted information could be acquired at city hall at any time; council could be called; and the issue would be before the Planning 8v Zoning Commission. She asked if Massie was suggesting a town meeting and Massie said he believed something like that would be good where people would be more comfortable to ask questions. Porter noted, there would be two public processes in which to review the issue and was not in agreement to hold a town meeting as it is has not been done for other t businesses moving into the city. She added, she and Moore had been on the radio, KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 PAGE 18 there had been articles in the paper, phone calls, electronic mail, etc. Porter noted, public hearings would be held at the Planning 8. Zoning Commission meeting as well as council and felt there was plenty of public access. Ross -- Asked if the Wal-Mart issue was required to go to the Airport Commission for review and was told it did not. Molloy -- • Thanked Andy Varner for his assistance and efforts on the KEDS group. • Thanked council members for meeting with him individually to help him get up to speed on issues before them. 9 Thanked administration for providing him with information to make it more easily accessible to the public. He noted, he received the electronic file for the proposed site plan, etc. and he placed it on his personal web page. • He suggested in some point of the Wal-Mart lease process, an opportunity could be made for a public work session on the issue. He added, he agreed with Massie's comments. Boyle -- No comments. EXECUTIVE SESSION -- None Scheduled ITEM M: ADJOURNMENT There being no further business before the Council, the meeting adjourned at approximately 10:24 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk *The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast prior to the official council vote and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes. Student representatives may not move or second items during a council meeting. APPROVED BY COUNCIL