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HomeMy WebLinkAbout2005-11-16 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 16, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z Z www. ci. kenai. ak. u s ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Ken Duff, Ex. Director, Frontier Community Services -- Frontier Community Services Building Project. 2. Rhonda Ogelsby/Kenai Kennel Club -- Section 36/Request for Space -- Dog Park/ Section 36. 3. Comments/Wal-Mart (3 minutes/speaker) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS 1. Ordinance No. 2131-2005 -- Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. 2. Ordinance No. 2132-2005 -- 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. 3. 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. 1 (Clerk's Note: A motion for approval of Resolution No. 2005-48 is on the � table.) 4. Resolution No. 2005-49 -- Opposing Integration of the Halibut Charter Fishery into the Existing Commercial IFQ System. 5. Resolution No. 2005-50 -- Opposing the Proposed Mixing Zone Revisions to the Alaska Water Quality Standards. ITEM F: MINUTES 1. *Regular City Council Meeting of November 2, 2005. ITEM G: OLD BUSINESS 1. Discussion -- Proposed Sale of Wetlands/The Conservation Fund. (Clerk's Note: A motion to sell Parcels 4, 5, and 6 is on the table.) 2. Approval -- Appointment of Mini -Grant Steering Committee ITEM H: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2133-2005 -- Increasing Estimated Revenues and Appropriations by $36,370 in the Airport Land Fund for Repairs at the Flight Service Station. 4. *Ordinance No. 2134-2005 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a State Library Grant. 5. Approval -- Assignment/ Security Assignment of Lease and Amendment to Lease -- Lot 2, Block 1, Gusty Subdivision/Thomas Wagoner to Ma 8� Pa Alaskan Treasures, Inc. 6. Approval -- Vacation of the South 33-Foot Right -of -Way Easement Adjacent to Government Lot 94 and Vacate the North 33-Foot Right -of - Way Easement Adjacent to Government Lot 105, Reserving a 30-Foot Easement, 15 Feet Both Sides of the Property Line Between Government Lots 94 and 105 for Utilities. Original Patent No. 53348, Recorded in Book 31, Page 236 Kenai Recording District; Within Section 34, Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of Kenai and the Kenai Peninsula Borough. KPB File No. 2005-256; Petitioners: Edmund C. and Iris B. Enders of Anchorage and John J. Williams of Kenai, Alaska; Location, City of Kenai. 7. Approval -- Lease Application/ Tract B-1, Baron Park No. 10; Tract C, Baron Park No. 5; and, Lot 1, Baron Park No. 5 -- Lounsbury and Associates, Inc. on Behalf of Wal-Mart Stores, Inc. 8. Discussion -- Peninsula Art Guild/Request for Funding ITEM I: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8v Recreation Commission 6. Planning 8, 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: ADMINISTRATION 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 16, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z Z vvww. ci.kenai. ak.u.s 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: Joe Moore Linda Swarner Cliff Massie Rick Ross Robert Molloy Mike Boyle Pat Porter, Mayor A quorum was present. Also Present: Les Krusen, Student Representative A- 3 . AGENDA APPROVAL Mayor Porter requested the following changes to the agenda: ADD AS: B-1, Persons Scheduled to be Heard -- Senator Tom Wagoner. SUPPLEMENTAL INFORMATION FOR: Item E-3, Resolution No. 2005-48 -- KK memorandum related to Set Net Drive LID. SUPPLEMENTAL INFORMATION FOR: Item E-3, Resolution No. 2005-48 -- J. Whannel letter noting a subsequent decision not to support the formation of the assessment district. REMOVE: Item E-4, Resolution No. 2005-49 MOVE: Item H-7, Lease Application / Lounsbury & Associates for Wal-Mart Stores, Inc. -- Hear KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 2 Immediately following Item B-3 (public comments) ADD AS: Item H-9, Scheduling of Board of Adjustment Hearing -- Appeal submitted related to the Lease Application/Lounsbury & Associates for Wal-Mart Stores, Inc. -- Hear immediately following H-7. ADD TO: K-1, City Manager's Report -- Draft City of Kenai Capital Improvements Plan 2006-2011 MOTION: Council Member Ross MOVED to approve the agenda with the list of changes, except to move H-7 and H-9 before H-3. Council Member Boyle SECONDED the motion. VOTE: t *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. MOTION: Council Member Moore MOVED .to approve the agenda as amended and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: Council Member Moore MOVED for approval of the consent agenda and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Senator Tom Wagoner -- Wagoner reported Agrium's Blue Sky coal gasification and power plant plan for putting their plant back on at full capacity. He KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 3 noted, the plan, if successful, would relieve the pressure for producing gas in Cook Inlet, however he did not believe it would alleviate the fear of running out of gas. Wagoner added, the spur line from the North Slope to Palmer would still be needed. B-2. Ken Duff, Ex. Director, Frontier Community Services -- Frontier Community Services Building Project. Referred to a previous visit in which he discussed the possibility of developing administrative and professional offices on city donated land in the same area as the proposed assisted living facility. At that time, council requested architectural drawings and additional information be prepared and presented to council. Duff distributed architectural renderings of their planned facility and noted, their concept included an exercise trail to be placed between the Frontier Community Services (FCS) facility and the assisted living facility to tie them together. A brief discussion followed in which it was noted the city code allows land to be donated to 501(3) (c) organizations and FCS fell into that category; FCS would have to do the same as was indicated to the Senior Connection in that the encumbrances on the property would have to be brought current. Council Member Molloy stated his concern of donating that large a piece of property; what design considerations had been given to traffic issues that would occur and who would pay for the costs to resolve the issues; there would be no sales or property tax revenues from the property if it were donated; and, suggested a lease or sale be considered instead. It was noted the city had donated property in the past to Habitat for Humanities, for the Juvenile Detention Facility, etc. It was also noted, the council had already passed a resolution in support of donating the property and the design concerns would be addressed during the permitting and planning stages. Concurrence of council was for FCS to work with city administration on the project, knowing direction to proceed would not mean a commitment, but bringing back a plan for council to review and consider. B-3. Rhonda Ogelsby/Kenai Kennel Club -- Section 36/Request for Space -- Dog Park/ Section 36. Ogelsby referred to information included in the council packet, noting the Kenai Kennel Club hoped to build a dog park adjacent to the Section 36 property, starting out with a fenced and grassed area for holding agility trails and large dog trials; during the trials, there are generally 750 dogs, 100 recreational vehicles, and several hundred people in attendance; and, they also hoped to develop a walking trail and skijoring trail in the future. Ogelsby added, the Club would maintain the area and collect waste, however the rules of the park would be for the dog owners to clean up after their pets. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 4 It was reported the Parks & Recreation Commission recommended approval for the concept after reviewing the layout, design, fencing, and whether or not the dog park would be the best use for the property and, though residents of the Evergreen Street area were not individually invited to attend the Commission meeting when the dog park was discussed, residents of the area were in attendance at the meetings when the issue was discussed but made no comments. Reference was made to the two issues needing to be considered, i.e. moving the Fire Wise site and rezoning the property from Rural Residential to Recreation. Ogelsby noted, the area they were interested in using would be north of the Fire Wise site, however they would like to use the Fire Wise site for parking. Administration was requested to work with the Parks & Recreation Commission, Kenai Kennel Club and the borough to resolve the issues. H-?. Approval -- Lease Application / Tract B-1, Baron Park No. 10; Tract C, Baron Park No. 5; and, Lot 1, Baron Park No. 5 -- Lounsbury and Associates, Inc. on Behalf of Wal-Mart Stores, Inc. Mayor Porter explained the issue would be opened for public comment, however comments would be kept to three minutes; since the city had received an appeal of the Planning & Zoning Commission's actions on the lease application, council would not answering any questions; if there were questions of the public, they should direct those questions to administration after the meeting; and, after the Board of Adjustment hearing, the lease application could come back to council for consideration and, there would not be public comments taken at that time. Porter offered a statement in reference to comments represented on a website related to her knowledge and disposition of the lease application. MOTION: Council Member Moore MOVED for approval of the lease application of Tract B-1, Baron Park No. 10 Tract C, Baron Park No. 5; and, Lot 1, baron Park No. 5 by Lounsbury and Associates, Inc. on behalf of Wal-Mart Stores, Inc. Council Member Ross SECONDED the motion. The floor was opened for public comment. Tom Adams, Lounsbury and Associates -- Reported his position as a civil engineer working for Lounsbury and Associates and that Lounsbury and Associates is the Wal- Mart Stores representative for Alaska. Adams reported he was in attendance to listen � to comments and concerns and begin the process through the lease application KENAI CITY COUNCIL MEETING r NOVEMBER 16, 2005 PAGE 5 approval. It was also noted, they were not currently in a position to address ingress/egress concerns made at the Planning 8v Zoning Commission hearing; no field studies had yet been made; studies, etc. would not proceed within a lease agreement; and, when a landscape/ site plan is produced, it would be reviewed in a public meeting. Nancy Speedy, 1602 Pine Circle, Kenai -- Spoke in support of the development of a Wal-Mart Store -- good for the city's economic base and for her and her family's future. Kelly Gifford, 312 Rogers Road, Kenai -- Spoke in support of the development and requested council to do what would be needed to make the city a little richer and bring business to Kenai. Heather Rash, 48840 Knudsen Street, Kalifornsky Beach Road -- Spoke in opposition of the development noting more shops and retail businesses were needed in Kenai, but not Wal-Mart because grocery stores were already available; Wal-Mart quality is low; employees are not treated well; and there are other options available. Rash left a movie for council to watch and urged them to consider all the factors in making their decision. Jason Carroll, 407 Eadies Way, Kenai -- Stated his support of the develop noting, he is the manager of First National Bank, and he talked with business people regarding the proposed develop; the businesses approved his speaking for them. Carroll noted it was false to say that small businesses are against the Wal-Mart development as only very few he spoke to did not support the development. Bekkie Jackson, 1528 Toyon Way, Kenai -- Submitted a letter signed by 25 people with whom she worked stating their strong support of the development and urged council to approve the lease application. Joel Caldwell, 48405 Bernice Avenue, Soldotna -- Stated his support of the development, noting he was grateful Home Depot opened a store in Kenai and was looking forward to spending money in Kenai and not traveling to Anchorage to go to a Wal-Mart store. Roy Wells, 410 Lawton Drive, Kenai -- Spoke in support of the development on behalf of the Kenai Chamber of Commerce and comments included: the residents he spoke with were mostly in support; free enterprise is a right; concerns of lack of retail shopping in Kenai; people need compelling reasons to come to Kenai and additional shops will bring clientele to Kenai; now would be the time to have a say in the aesthetics of the development; now would be the time for local businesses to make a game plan; better to have the development in the city than outside; and, tax revenue from sales would help the city. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 6 Tom Wagoner, 4040 Primrose Place, Kenai -- Stated his support of the development, noting more competition is better for business; other businesses in Kenai do not provide benefits to employees; and, remembering concerns with PERS and lack of municipal assistance, the council should do what is best for the city, i.e. providing more revenue to the city. Scott Romain, 425 Rogers Road, Kenai -- Stated his support of the development and noted he is a local realtor; other realtors he spoke with were in support of the development; because Wal-Mart has stated they plan to build somewhere on the Peninsula, he believed it should be in Kenai; Wal-Mart would provide jobs for all ages; and, he congratulated Lounsbury and Associates for choosing Kenai. Chad Botirius, 47785 Michelle Avenue (Kalifornsky Beach Road), Soldotna -- Spoke in opposition to the development, noting he believed the property would be better used for Frontier Community Services and he believed Wal-Mart would bring low wages, no health care, no careers and, questioned what economic benefit the development would bring to Kenai. Ernie Lucas, 1520 Windward Way, Inlet Woods, Kenai -- Stated his strong support for the Wal-Mart development. Mary Morgan, 602C Peninsula Avenue, Kenai -- Stated she was not totally for the development or totally against it and submitted a newspaper article discussing Wal- Mart. Laura Sievert, 3329 Beaver Loop Road, Kenai -- Stated her strong support of bringing more shopping to Kenai, though was concerned how the facility would fit into the Kenai Economic Development Strategy; the development would be so large, it would transform the community; stated concerns of traffic, landscaping, and the size strangling small businesses and maybe force them out of business. She urged council to consider carefully the pros and cons and to keep the public informed. Peter McKay, 55441 Chinook Road, Kenai -- Stated his opposition to the development and reported some statistical information. Margaret Menting, 50375 Onslow, Kenai -- Stated her opposition to the Wal-Mart development, however if it was to come to the area, she wanted it to be in Kenai; noted concerns of water/ sewer, electrical and traffic problems; also concerned with the possibility of chemicals stored outside of the building leaking into the river. Jim Fassler, 36814 Cheechako News Drive, Kenai Peninsula Borough -- Stated his opposition to the project due to the treatment of the employees and unkempt stores; KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 7 has no problem in coming to Kenai to shop; and, urged council to look for other retailers instead of Wal-Mart. Joe Ray Skrha, 2455 Watergate Way, Kenai -- Stated his opposition to the Wal-Mart development and submitted a petition. He also stated his concerns with treatment of those who manufacture garments, etc. that are sold in Wal-Mart stores. Janice Nightingale, 49845 Otter Court, Nikiski -- Stated her opposition to the development, noting concern for local businesses and how Wal-Mart employees will be able to support their families due to wages offered. Glenda Feeken, 10672 Kenai Spur Highway, # 109, Kenai -- Spoke in support of the development, noting she spoke to all her customers and all were very excited; Wal-Mart is a very big corporate donor; having Wal-Mart in Kenai will attract other businesses. Debbie McKay, 55441 Chinook Road, Kenai (Nikiski) -- Spoke in opposition to the development, noting concerns related to detention areas near the river; fair market value; increase in traffic; snow removal and storage; and sub -lot leasing. 1 Attorney Graves explained the FAA requirements for fair market value rate determination; referred to estimated sales tax revenues reported in Finance Director Semmens' memorandum; and, explained snow storage and landscaping would be considered later on as part of the process. Fred Braun, Nikiski -- Spoke in support of the development and commented, Wal- Mart had been investigating the possibility of opening a store in Kenai for the last four years; felt it important to keep them in Kenai; if they had chosen another site, he believed more people would be complaining why they did not choose Kenai; and, though there are downsides to the development, there are more upsides. Trish Kopp, 1340 Chinook Drive, Kenai -- Spoke in support, noting Wal-Mart and Home Depot are two of the top businesses nationally; there are people not looking for career jobs; and, there will be employment for the young people in Kenai. Ozzie Osborne, 14360 Kenai Spur Highway, Kenai -- Stated his support of the development, noting he did not believe low wages or work hours was a concern of the city. Duane Bannock, 7450 Flintlock, Anchorage -- Spoke in support of the development and noted similar concerns were voiced when KMart decided to move into Kenai; KMart affected the city economically; the development will be important to the economic future of Kenai. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 8 Craig Fanning, Salvation Army, Kenai -- Stated support of the development and noted, he is not a Wal-Mart shopper, however represents people that desperately need them and need the ability to spend their money carefully and Wal-Mart will offer them that ability. Also, he has relatives who work for Wal-Mart and are very happy and believe them wonderful employers. Leon Quesnel, 516 Hemlock Avenue, Kenai -- Spoke in support of the development, saying he looked forward to Wal-Mart in Kenai. Rick Baldwin, 3080 Kim-N-Ang Court, Kenai/Chair of KEDS Action Team -- Reported the Team met to consider whether the lease application should be addressed by their board and if so, how in relation to the Kenai Economic Development Strategy. The Team unanimously recommended the city should grant the application and believed Wal-Mart an opportunity for revitalizing the community. Steve Hillyer, 381 Senior Court, # 109, Kenai -- Spoke in support of the development, noting people would come to Kenai to shop at Wal-Mart and other businesses instead of going to Anchorage; believed the development would be an advantage; and, believed the 'anti' crowd a minority and those in support a tremendous majority. Ray Sagorski, 8480 Kenai Spur Highway, Kenai -- Urged council to use economics and logic in making its decision. Tim Navarre, 608 Ponderosa, Kenai -- Spoke in support of the development, noting he believed esthetics should be considered and the development would help the appeal of the community; suggested the city should consider helping small businesses to plan for the impact of the new store; stated he believed the city has a responsibility to be proactive instead of reactive; and, stated he believed the development would be better for the community and small businesses. Bill Osborn, 450 Rogers Road, Kenai -- Spoke in support of the development, saying he believed Kenai would be moving ahead on the Peninsula and Kenai would grow if new businesses come to town. Tom Adams, Lounsbury and Associates -- Adams stated they were at the meeting to hear comments as part of the process; they would address the design/landscaping comments after the lease application has been approved; the social issues would have to be answered by the community; and urged all to be educated on the process. Adams also explained, the lease application was the beginning of the process; if the city chooses to deny the application, the questions presented during comments would -,�KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 9 not be reviewed; if the lease application would be approved, they would engage the assistance of a landscaping architect, traffic engineers, etc. and return with a fully developed plan. End of public comments. BREAK TAKEN: 9:14 P.M. BACK TO ORDER: 9:31 P.M. Council noted the need to set a Board of Adjustment hearing on the appeal of recommendations taken by the Planning & Zoning Commission related to the lease application. Council scheduled the Board of Adjustment hearing for December 6 at 6:00 p.m. in the Kenai City Council Chambers. Council Member Ross stated the lease application could be included on the December 7, 2005 council meeting agenda and could be postponed if no decision would be made on the appeal. MOTION: Council Member Ross MOVED to postpone the vote on the lease approval until December 7 and Council Member Swarner SECONDED the motion. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle I Yes Porter Yes MOTION PASSED UNANIMOUSLY. H-9. Scheduling of Board of Adjustment Hearing -- Appeal submitted related to the Lease Application/Lounsbury 8s Associates for Wal-Mart Stores, Inc. See discussion in Item H-7 above. ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) Holly Norwood -Stated she was a candidate for city manager and came to thank the } council for review her materials. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 10 ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS -- No reports. ITEM E. PUBLIC HEARINGS E-1. MOTION: Ordinance No. 2131-2005 -- Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. Council Member Molloy MOVED to approve Ordinance No. 2131-2005 and Council Member Swarner SECONDED the motion. There were no public or council comments. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Mollo Yes Bo le Yes Porter Yes MOTION PASSED UNANIMOUSLY. E-2. Ordinance No. 2132-2005 -- 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. MOTION: Council Member Massie MOVED for approval of Ordinance No. 2132-2005 and Council Member Swarner SECONDED the motion. There were no public comments. Porter reported the base of the clock had been completed and the arrival of the clock works was expected in the next few days. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes �KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 11 Porter Yes _F_ MOTION PASSED UNANIMOUSLY. E-3, 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. (Clerk's Note: A motion for approval of Resolution No. 2005-48 was placed on the table at the November 2, 2005 council meeting.) MOTION: Council Member Molloy MOVED to remove Resolution No. 2005-48 from the table and Council Member Massie SECONDED the motion. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. There were no public comments. Acting City Manager Kopp referred to the Kornelis memorandum provided in the packet and a memorandum distributed at the beginning of the meeting. Reviewing the information, it was noted there were three undeveloped properties in the Set Net Drive proposed local improvement district; the code indicated, "no assessment could be levied in excess of 25% of the fair market value of property after giving effect to the benefit accruing from the work or action for which assessed"; because the code conflict with the policy of council for 50% of all local improvement district costs to be paid for by the owners, several options were offered to council: • City could pay the extra $18,223 from grant funds. • Council could approve a slight change in policy to allocate costs on square foot basis plus an extra charge for the $18,223 to other eight property owners. • City could decide not to do the project. 0 Council could change KMC to do away with the 25% limit. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 12 Kopp noted, he and the city attorney were developing an ordinance to address the 2 5 % limit. Ross stated, because the city had paid for costs as a result of the cap in past improvement districts, he believed the same should be done for this district and council could address a code change in the future. Moore noted his agreement. MOTION: Council Member Ross MOVED, as a result of the 25% cap, the city pay from its funds the additional $18,233 for the project and Council Member Boyle SECONDED the motion. Ross clarified, the costs would be paid from the grant funds. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes I Molloy Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. E-4, Resolution No. 2005-49 -- Opposing Integration of the Halibut Charter Fishery into the Existing Commercial IFQ System. Removed from the agenda. E-5. Resolution No. 2005-50 -- Opposing the Proposed Mixing Zone Revisions to the Alaska Water Quality Standards. MOTION: Council Member Swarner MOVED for approval of Resolution No. 2005-50 and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 13 ITEM F: MINUTES F-1, Regular City Council Meeting of November 2, 2005. Approved by consent agenda. ITEM G: OLD BUSINESS G-1. Discussion -- Proposed Sale of Wetlands/The Conservation end. (Clerk's Note: A motion to sell Parcels 4, 5, and 6 was placed on the table at the November 2, 2005 council meeting.) MOTION: Council Member Molloy MOVED to remove the motion to sell Lots 4, 5, and 6 from the table and Council Member Swarner SECONDED the motion. Council Member Molloy stated his support of the motion to approve the sale and noted, he believed the properties were not suitable for development because of the wetlands and the sale would bring revenue to the city. Brad Meiklejohn, The Conservation Fund, Eagle River -- • Responding to a question of his reaction to what the city was offering, Meiklejohn stated he was disappointed and offered as a compromise, the Fund's purchase of Parcels 1, 2, 4, 5, 6 and the exemption of the panhandle on Parcel 2. • He would be willing to consider the sale of a Conservation Easement on the same lots. • The proposed exchange of Parcel 7 by the Kenai City Boat dock was not completed and the Fund was waiting to see what action would be taken with the sale; there was a possibility the exchange (for the exit road property) would not go forward. • If purchased by the Fund, the property could be placed into the Kenai River Special Management Area (KRSMA) or the Kachemak Land Trust. Discussion followed in which comments included: • Kopp stated he had not had any discussion with Meiklejohn indicating the exit road trade and the land sale were linked. • Swarner stated she would not be interested in any of the parcels going to KRSMA, though she was willing to support a conservation easement for Parcels 1 and 2. • Meiklejohn stated if there was no sale, the Fund would reconsider whether to go forward with the exchange (dock eat road). a, KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 14 VOTE ON SALE OF PARCELS 4, 5, AND 6: *Student Representative Krusen: No Porter No Moore No Swarner Yes Massie No Ross No Molloy No Boyle Yes MOTION FAILED. Council Member Massie stated he believed it was originally a good deal and was under the impression any part of the sale would be acceptable by the Fund. With the comments made related to the exit road exchange and the sale being linked, he felt the council was being held hostage. MOTION: Council Member Massie MOVED to sell everything except the panhandle on Parcel #2, i.e. Parcels 1, 2, 4, 5, 6, excepting the Parcel #2 panhandle. Council Member Boyle SECONDED the motion. Ross stated he had similar feelings as Massie and explained, he thought the trade was a deal upon which both sides had agreed; the proposed wetlands sale was a separate item; thought the trade was of mutual benefit to both groups; the linking of the two transactions disturbed him; and, he would not support the motion. Moore stated he agreed with Ross; he was concerned with the link and the Fund giving the properties to KRSMA; and, stated he would not support the motion. MOTION TO AMEND: Council Member Swarner MOVED to amend the Massie motion in that the property would not go to the State of Alaska (to eventually be in the Special Management Area) and would be held under a land trust. Council member Molloy SECONDED the motion. City Attorney Graves stated he could investigate whether a deed restriction could be included. Meiklejohn stated the Fund would find a deed restriction acceptable. VOTE ON AMENDMENT: *Student Representative Krusen: Yes Porter Yes Moore No Swarner Yes ' Massie Yes I Ross I No I Molloy Yes KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 15 Boyle I Yes I I MOTION PASSED, MOTION TO AMEND: Council Member Swarner MOVED to sell a conservation easement on Parcels 1 and 2. Council Member Molloy SECONDED the motion. Graves explained the city would maintain technical ownership of the property with a conservation easement, but the city would essentially contract with The Conservation Fund and not allow development on the land. It would be a dual responsibility of the city and the Fund to enforce the conservation easement. The property would basically remain "as is." Graves noted, with a sale, the city would not longer have the responsibility of managing the property. He noted, if council wished to go forward with the conservation easement, the price would need to be decided because prices could be different between sales and conservation easements because the Fund would be receiving less than it would with a sale. The prices included in the packet were developed for sale of the properties. Meiklejohn added, the conservation easement would be drafted and then taken to an appraiser; the appraiser would determine the percentage of the fair market value the document would be representing; the more restrictive an easement is, the greater percentage of value is represented in the easement; the commitment of the Fund and the restrictions on their funding to purchase properties, mandates the properties remain in their natural state; and, the sale of a conservation easement on Parcels 1 and 2 would be acceptable to the Fund. Student Representative Krusen stated he believed the proper management of the wetlands was essential to the health of the Kenai River and stated his support for the conservation easement sale. Ross stated he was opposed to the sale of Parcels 1 and 2; the city passed a resolution accepting the trade related to the exit road and now the negotiations had changed; and, he would vote against the motion. Molloy stated he understood the benefit of the road to the harbor and thought earlier the sale of the wetlands could be a win -win situation and would give the city revenue for other projects. Moore stated he also felt the exit road land trade was a completed deal and with the comments made by Meiklejohn, the value of Parcels 1, 2, 4, 5, and 6 had been diminished. Moore stated he would not support the motion. VOTE ON AMENDMENT: -4` KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 16 *Student Representative Krusen: Yes Porter Yes Moore No Swarner Yes Massie No Ross No Molloy Yes Boyle No MOTION FAILED. MOTION TO AMEND: Council member Swarner MOVED to delete Parcel 2 from the purchase and Council Member Moore SECONDED the motion. Public Works Manager La Shot noted, in deciding on what to do with the parcels, council should remember future trades may be needed for airport expansion, etc. VOTE ON AMENDMENT: *Student Representative Krusen: Yes Porter Yes Moore Yes Swarner Yes Massie No Ross Yes Molloy Yes Boyle No MOTION PASSED. Meiklejohn stated the Fund were interested in a large scale conservation project. Ross clarified, the main amended motion was to sell Parcels 1, 41 5, 6 with a deed restriction (the parcels would be placed in a land trust) . Meiklejohn was asked if the sale as stated would be acceptable to the Fund and he answered yes. Meiklejohn was asked if the trade of properties for development of the dock exit road would still go forward in reference to the motion as it had been amended and Meiklejohn stated yes. VOTE: *Student Representative Krusen: Yes Porter No Moore No Swarner Yes Massie Yes Ross No Molloy Yes Boyle Yes MOTION PASSED. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 17 G-2. Approval -- Appointment of Mini -Grant Steering Committee MOTION: Council Member Molloy MOVED to approve the appointments of the Steering Committee as presented and Council Member Moore SECONDED the motion. VOTE: *Student Representative Krusen: Yes Moore Yes Swarner Yes Massie Yes Ross Yes Molloy Yes Boyle Yes Porter Yes MOTION PASSED UNANIMOUSLY. ITEM H: NEW BUSINESS H-1. Bills to be Ratified MOTION: Council Member Moore MOVED to ratify the bills and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED, H-2. Approval of Purchase Orders Exceeding $15,000 MOTION: Council Member Swarner MOVED to approve the purchase orders exceeding $15,000 and requested UNANIMOUS CONSENT. Council Member Moore SECONDED the motion. There were no objections. SO ORDERED. H-3. *Ordinance No. 2133-2005 -- Increasing Estimated Revenues and Appropriations by $36,370 in the Airport Land Fund for Repairs at the Flight Service Station. Introduced by consent agenda. H-4. *Ordinance No. 2134-2005 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a State Library Grant. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 18 Introduced by consent agenda. H-5. Approval -- Assignment/ Security Assignment of Lease and Amendment to Lease -- Lot 2, Block 1, Gusty Subdivision/Thomas Wagoner to Ma 8v Pa Alaskan Treasures, Inc. MOTION: Council Member Moore MOVED to approve the Assignment/ Security Assignment of Lease and Amendment to Lease -- Lot 2, Block 1, Gusty Subdivision/Thomas Wagoner to Ma 8s Pa Alaskan Treasures, Inc., Item H-5. Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, H-6. Approval -- Vacation of the South 33-Foot Right -of -Way Easement Adjacent to Government Lot 94 and Vacate the North 33-Foot Right -of - Way Easement Adjacent to Government Lot 105, Reserving a 30-Foot Easement, 15 Feet Both Sides of the Property Line Between Government Lots 94 and 105 for Utilities. Original Patent No. 53348, Recorded in Book 31, Page 236 Kenai Recording District; Within Section 34, Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of Kenai and the Kenai Peninsula Borough. KPB File No. 2005-256; Petitioners: Edmund C. and Iris B. Enders of Anchorage and John J. Williams of Kenai, Alaska; Location, City of Kenai. Noting the information included in the packet, City Attorney Graves reported the Borough Code indicated council was not required to take any action, but if they objected to the vacation, they did have the right to veto. Council took no action. H-7. Approval -- Lease Application/ Tract B-1, Baron Park No. 10; Tract C, Baron Park No. 5; and, Lot 1, Baron Park No. 5 -- Lounsbury and Associates, Inc. on Behalf of Wal-Mart Stores, Inc. Heard after Item B-2. H-8. Discussion -- Peninsula Art Guild/Request for Funding Marcia Beauchamp/Peninsula Art Guild -- Referring to information included in the packet, Beauchamp explained the Guild had been awarded a $13,320 grant from the Rasmuson Foundation for repair of the roof at the Kenai Fine Arts Building. In addition, they wanted to take advantage of an opportunity to gain an additional $42 100 from a dollar- challenge grant toward their renovation project. Beauchamp requested the city to issue $2,000 which had been allocated to the FY 2003 budget and had not been spent and consider granting the Peninsula Art Guild an additional - KENAI CITY COUNCIL MEETING } NOVEMBER 16, 2005 PAGE 19 $4) 100 to take advantage of the dollar -challenge grant. She explained, the renovation project would include electrical upgrading, carpeting, painting, etc. Administration indicated funds were available in the Buildings fund to cover the $4) 100; issuing the funds was not time sensitive; and, with council's direction, an ordinance would be prepared to appropriate the funds. Council consensus was to move forward with the preparation of the ordinance. ITEM I: COMMISSION / COMMITTEE REPORTS I-1. Council on Aging -- Council Member Boyle reported the summary of the November 3, 2005 meeting was included in the packet and briefed those present of upcoming events at the Center. I-2. Airport Commission -- Council Member Swarner reminded those in attendance of the Airport Supplemental Plan work session scheduled for Friday, November 18 beginning at 1:00 p.m. I-3. Harbor Commission -- Council Member Massie reported a joint work session between the Harbor and Parks &, Recreation Commissions had been suggested in order to discuss the dip net fishery. Council had no objections. I-4. Library Commission -- Council Member Molloy reported the meeting summary of the November 1 meeting was included in the packet. The application of Christine Cook for appointment to the Commission was reviewed. Council had no objections to Cook's appointment. I-5. Parks & Recreation Commission -- Council Member Moore reported the meeting summary of the November 3 meeting was included in the packet. I-6. Planning & Zoning Commission -- Council Member Ross reported on actions taken at the November 9 meeting, including the Commission's recommendation for council to approve the lease application for the Wal-Mart development. I-?. Miscellaneous Commissions and Committees I -?a. Beautification Committee -- Council Member Swarner reported the meeting summary of the November 8 meeting was included in the packet. She also noted the meetings for December and January had been cancelled. I4b. Alaska Municipal League Report -- Swarner gave a brief report of events that took place at the AML Conference. f I-?c. Arctic Winter Games -- Parks & Recreation Director Frates reported the KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 20 cost of the bleachers had been approved by the AWG as well as the bleacher installation costs and security camera installation. I-7d. Stranded Gas Committee -- No report. ITEM J: REPORT OF THE MAYOR -- Mayor Porter reported she had spoke at the Veteran's Day program; reminded council of the work sessions on November 18 with Paul Gray at 12:30 and the Supplemental Plan beginning at 1:00 p.m. ITEM K: ADMINISTRATION REPORTS City Manager -- Acting City Manager Kopp reported the following: • Referring to the November 10, 2005 memorandum included in the packet from Finance Director Semmens and requesting council approval of a new health insurance program at the December 7 meeting, Kopp noted new information had been received related to health savings accounts. He reported the high deductible plan would be raised from $1,200 to $5,000 for employee costs; January would not be a good time for a major change in the program as the employees felt more time would be needed to assess the health savings accounts and to review the entire benefit package; and, because a plan could not be chosen by December, an adjustment to the plan could be made in July. • An appropriation of $500,000 was made to the Corps of Engineers budget for the bluff restoration project to fund the next phase of the project. • Administration is corresponding with the Russian Orthodox Church regarding the relocation of cabins. • A new foundation on which to place the Claraence Ladd cabin was estimated at $4,000 and relocating the cabin would exceed $10,000. • Mary Jo Joyner accepted the Library Director job offer and should be on the job by the end of January. • A revised Capital Improvement Program Plan was distributed to council and a work session date of November 28 for review with area legislators was suggested. Council stated no objection to the work session date. • The Friendship Mission was now open (old Eadies building) . • The Katmai Motel renovation was moving along and they hoped to be open by Christmas. • The results from the Wellhouse No. 4 pilot test study were not good -- the study group reported its willingness to try a new study. • Administration has applied for an extension to the arsenic removal deadline. It is very likely the extension will be granted. • Reference was made to a memorandum included in the packet related to a request from Council Member Molloy to link his personal webpage to the city's webpage. Molloy stated he had several policy discussions with Council Member Ross KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 21 and requested the issue be included as a discussion item on a future agenda. Moore requested the issue of upgrading the city's webpage be discussed at that time as well. Council had stated no obj ections to discussing the issue in January. • Spoke with a representative from Northern Dynasties related to the city's desire to be their hub in air freight and learned Kenai is at the top of their list. K-2. Attorney -- No report. K-3. City Clerk -- City Clerk Freas reported she had received a petition from Angler Drive residents to form a local improvement district. She added, the petition was being processed. ITEM L: DISCUSSION L-1. Citizens -- None. L-2. Council -- Moore -- Asked who was representing the city on the Kenai River Special Management Area Board and was informed Public Works Manager Kornelis had been assigned that responsibility. Swarner -- Referring to the Airport Manager Report regarding the airport restaurant, she noted the many closures and non -availability of the facility was not acceptable. Massie -- Stated he felt the council had been pressured with regard to the land sale to The Conservation Fund. He added, he felt the boat launch facility was very important to the city and was why he voted for the sale. Krusen -- Reported on reactions to the lease application for the Wal-Mart development -- most were supportive and believed the application should move forward. Ross -- No report. Molloy -- Reported he appreciated attending the Newly Elected Officials seminar at the AML Conference. Boyle -- Stated he appreciated so many community members attending the meeting and reminded all, "without dissent, there is no democracy." He urged council to review the movie submitted earlier in the meeting. r Porter -- Noted there is also a movie available entitled, Why Wal-Mart Works. KENAI CITY COUNCIL MEETING NOVEMBER 16, 2005 PAGE 22 EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT There being no further business before the Council, the meeting adjourned at approximately 11:00 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. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 16, 2005 PARTIAL VERBATIM ITEM B-2, Ken Duff, Ex. Director, Frontier Community Services -- Frontier Community Services Building Project DUFF: My name is Ken Duff. I'm with Frontier Community Services and we are located at the Red Diamond Center on K-Beach Road and no, we're not a city resident yet. Okay, last May, I believe I was here and presented to the council a suggestion or a request that the City of Kenai give land to Frontier Community Services to build a campus for our administrative offices as well as our program offices and at that time, I had absolutely in the way of concepts or architectural drawings and you asked that I produce for those for you so that you had something really to base your decision on. So we, in the meantime, have contracted with Bill Kluge and have met with a number of potential funders around the state and that is what we are presenting to you this evening. I believe you have the concept paper and some of the original drawings in your packet and Bill just gave you some very nice colored presentations too. Are there specific questions then? PORTER: Does council have any questions of Mr. Duff. I'm sure he'd be happy to answer them or Mr. Kluge. I was very impressed with your presentation. Very impressed with your site plan and I personally am very excited that you're hoping to do business in the city. DUFF: We're very hopeful. PORTER: Council, any questions? Councilman Moore. MOORE: Thank you Madam Mayor. So what we're seeing, what we were handed from Mr. Kluge, was I think a day care building and an administrative building? DUFF: Yes. MOORE: Okay. And then, in the minutes from the meeting that I was given in June, our city manager reported that the property that you identified is also been identified by the Senior Connection, a 77-acre piece of property. Are we still at the same piece of property that we're speaking of there? DUFF: Yes, I believe so. They... MOORE: Okay. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 16, 2005 PARTIAL VERBATIM, ITEM B-2 Page 2 of 5 DUFF: ...I believe Bill had on the footprint where the land was that the Senior Connection was looking at and where the plan was that... MOORE: ... cause I was looking for that and maybe I missed it. (inaudible discussion) Great, I didn't read it. PORTER: Mr. Kluge, did you want to make a comment about that so the audience can hear as well? MOORE: If I could just say, the reason for my concern is that I just wanted to make sure there was room on that piece of property. KLUGE: Yes, actually Councilman Moore, we have, we have allowed room on the property for what is proposed for the assisted living project. In fact, we checked with the city to find out what they had proposed to utilize on this site prior to our, our work. We also have created a trail system for the day care center and it'd be an exercise trail in the summer and a cross-country ski trail in the winter and we're actually proposing to provide access to that senior project to that trail system and it's noted on you're A-1 drawing and I don't know how it's oriented that you have there, but it's on the left hand side. PORTER: Any other questions from council? Councilman Molloy. MOLLOY: You're plan involves the city donating... PORTER: Mr. Molloy, could you pull that... MOLLOY: ... certainly... PORTER: that's okay... MOLLOY: .. . sorry.. . PORTER: ... that's all right... MOLLOY: ...I apologize. Your plan involves the city donating the 34 acres. Have you looked at a model for financing where you, where there might be a lease or a sale by the city to the organization? KLUGE: I guess I should let Ken address that issue. PORTER: Okay... KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 16, 2005 PARTIAL VERBATIM,- ITEM B 2 Page 3 of 5 DUFF: At this time we have not. We have been at least, initially putting together numbers with the idea that the city would be donating the land to us which would help with the funders showing local contribution to the project. We're not locked in at this point with any submission for funding, so whatever the city might be interested in, then we would look how to proceed. MOLLOY: Thank you. PORTER: Just, just a reminder for council that we do have a code that allows us to make land donations to non-profit organizations which are 501(3) (c)'s and Frontier Community Services fits in that category. Councilman Ross. ROSS: The adjoining property that Senior Connection is looking at had encumbrances and assessments against it that they've applied for a grant to clear up as part of a transaction with the city. Does this property also have encumbrances and taxes owed against it? PORTER: Let me refer to the city attorney for that. GRAVES: This is basically one parcel ... I need to turn my mike on too... this is basically one parcel. A 77-acre parcel that the Senior Connection wants a piece of and Frontier wants a piece of, so the encumbrances and taxes apply to the whole parcel. PORTER: Okay, Councilman Ross, I see where you're going with this. ROSS: In follow-up, is the proposal the same as it was for Senior Connection that encumbrances and taxes owed would be part of the transaction cost borne by the recipient? PORTER: Ah, Mr. Duff, have, have you addressed that issue with the city administration? DUFF: No Ma'am, this is the first time we were aware of it but we would be very interested in sharing... PORTER: Very willing to do that? DUFF: Yes, very definitely. PORTER: Good. Thank you. Any other comments from council? Well, seeing no more comments, I would, I would imagine that you ... is council in concurrence with Mr. Duff that we should move forward with this project and allow him to work out details with the, with the city administration. Councilman Molloy. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 16, 2005 PARTIAL VERBATIM, ITEM B-2 Page 4 of 5 MOLLOY: I, I have some reservations based on the fact ... I know that you brought out that we have the authority to you know, donate to a non-profit, but, and I know that Frontier Community Services has a very valuable service that they provide to the community, but I'm not aware of the city having, and I could be wrong, but I'm not aware of the city having done a donation of that magnitude in the past... PORTER: I... excuse me... MOLLOY: . . . and, so I would be concerned about a couple things. One would be, you know, like a traffic -type issues and if there, and what kind of design considerations there might have to be for that and who would bear the cost of that also and in addition, you know, there would be, you know, no sales tax revenue or property tax revenue. So, so I would, I would like to, I would like to see also a plan where there might be a lease or, or sale that would provide some cash to the city. Thank you. PORTER: What is the pleasure of council? Councilwoman Swarner. SWARNER: Thank you Madam Mayor. Just a history lesson. We have donated land to Habitat for Humanity and some of that land was foreclosed on land, or land that was that were property taxes owed on and as I recall there was one piece of property on Wildwood Drive that is, that was donated because of that. And then there was, there was some land off of Colonial Drive as well. So, the city has had a history of donating land to non-profit organizations. PORTER: Councilman Molloy, not only has the city has a history of donating to non-profit organizations, they've also had a history of having purchased land out of the General Fund and paid it to the airport so that we could have the Senior Center located, the Juvenile Detention Center... so there have been big blocks of donated, basically donated land. But, I'd like to refer to the City Manager. He has a comment he'd like to make. KOPP: Yes Council, you'll remember about eight months ago we had a resolution before council which was approved stating council's intent to donate up to 30 acres of the 77-acre parcel. It was contingent upon the site plan being approved, that was actually followed through and developed for its proposed purpose. The good issues that Councilman Molloy raised will be addressed of course, in the permitting/planning process but Council did previously address this issue and provided a resolution of support for this project. MOLLOY: Thank you. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 16, 2005 PARTIAL VERBATIM, ITEM B-2 Page 5 of 5 PORTER: Thank you. Councilman Ross. ROSS: I take it that your direction to proceed is not a commitment of council, but a direction to proceed to bring back to us a plan for... PORTER: Correct...just, just as if we have done with the Assisted Living project. ROSS: Thank you. PORTER: Do I see four heads nodding? Okay. One, two, three, four, five, four. We, we have enough concurrence on council? Okay thank you. Would you please, thank you for coming and please work with the administration to make this project happen. DUFF: We will do that. Thank you very much for your time. PORTER: Thank you very much. END OF VERBATIM. Verbatim prepared by: Carol L. Freas, City Clerk