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HomeMy WebLinkAbout2004-03-03 Council Minutes� AGENDA KENAI CITY COUNCIL - REGULAR MEETING MARCH 3, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt 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: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: REPORTS OF KPB ASSEMBLY9 LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. Ordinance No. 2035-2004 -- Increasing Estimated Revenues and Appropriations by $5,000.00 in the General Fund for a Grant for Police Training. 2. Ordinance No. 2036-2004 -- Amending KMC 1.90.040 by Adding KMC 1.90.040(c) that Imposes a Limit of Three Three -Year Terms Upon Serving on City Commissions or Committees Except for the Planning and Zoning Commission. 3. Resolution No. 2004-10 -- Emphasizing the Importance for the Alaska Legislature to Provide Adequate Funding for the Alaska Department of Fish & Game to Continue Essential Management of Alaska's Wild Fish and Game Populations. a. Remove from table. b. Consideration of resolution. 4. Resolution No. 2004-11-- Transferring $15,000 From Engineering to Equipment in the Multipurpose Facility Capital Project Fund to Purchase a Zamboni Ice Surfacing Machine. 5. *Liquor License Renewals • One Stop Liquors #2319/Package Store • Eagles #3525/Club ITEM E: 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. Kenai Convention 8- Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce e . Arctic Winter Games ITEM F: 1. 2. ITEM G: ITEM H: ITEM I: 1. *Regular Meeting of February 18, 2004. *February 18, 2004 Board of Adjustment Hearing Verbatim CORRESPONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Approval -- Lease Application of John C. & Marie L. Parker 8v 20 / 20 International, Inc. / Lot 11, Block 1, FBO Subdivision. 4. Approval -- Lease Application of Arctic Barnabas Ministries, Inc./Lots 8 & 9, Block 5, General Aviation Apron. 5. Discussion -- Sales Tax and Mill Rates 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 MARCH 3, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : Z Z www.ci.ken.ai.ak.us MAYOR JOHN J, WILLIAMS, PRESIDING MINUTE`S Mayor Williams 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 Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Linda Swarner Joe Moore Pat Porter Blaine Gilman Rick Ross John J. Williams, Mayor James C. Bookey, III, Vice Mayor A-3. AGENDA APPROVAL MOTION: Council Member Swarner MOVED to approve the agenda as presented and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED, Mayor Williams noted copies of a follow-up letter to Senator Stevens regarding the HUD Difficult to Develop Area designation. A-4. MOTION: CONSENT AGENDA Council Member Swarner MOVED to approve the consent agenda as presented and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED. Williams noted Michelle Glass, the newly appointed Executive Director of the Kenai Visitors & Convention Bureau was in the audience and welcomed her to Kenai. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. ITEM C: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 2 Assembly Member Glick noted the next Assembly meeting was scheduled for March 16. She reported she had just returned from Washington, DC where she attended a National Association of Counties (NACo) conference along with President Sprague and Assembly Member Long. She noted, Sprague and Long would be meeting with the congressional delegation to present them with the Assembly's federal priorities list. ITEM D: PUBLIC HEARINGS D-1, Ordinance No. 2035-2004 -- Increasing Estimated Revenues and Appropriations by $5,000.00 in the General Fund for a Grant for Police Training. MOTION: Council Member Swarner MOVED for approval of Ordinance No. 2035-2004 and Council Member Porter SECONDED the motion. There were public or council comments. l VOTE: Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes FBookeyYes I i MOTION PASSED UNANIMOUSLY. D-2, Ordinance No. 2036-2004 -- Amending KMC 1.90.040 by Adding KMC 1.90.040(c) that Imposes a Limit of Three Three -Year Terms Upon Serving on City Commissions or Committees Except for the Planning and Zoning Commission. MOTION: Council Member Porter MOVED for approval of Ordinance No. 2036-2004 and Council Member Ross SECONDED the motion. There were no public comments. Council Member Porter, who suggested the ordinance, requested council to defeat the ordinance due to some concerns that had been brought to her attention. She noted, she planned to bring another ordinance forward to deal with the issue in a different manner. VOTE: KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 3 Swarner No Moore No Porter No Gilman No Ross No Williams No Bookey No MOTION FAILED UNANIMOUSLY. D-3. Resolution No. 2004-10 -- Emphasizing the Importance for the Alaska Legislature to Provide Adequate Funding for the Alaska Department of Fish & Game to Continue Essential Management of Alaska's Wild Fish and Game Populations. D-3a. Remove from table. MOTION: Council Member Gilman MOVED to remove Resolution No. 2004-10 from the table and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. D-3b. Consideration of resolution. MOTION: Council Member Moore MOVED for approval of Resolution No. 2004-10 and Council Member Swarner SECONDED the motion. There were no public comments. Council Member Moore explained he was the sponsor of the resolution and was absent from the last meeting. He added, he understood there were some questions at the last meeting and the resolution was tabled. He noted, it was not his intention to analyze the state's budget, but to show support for the commercial and sport fishing industries in Cook Inlet. He added, biological information is critical and any loss of funding in that area would be very bad for Kenai and the state as well. Council Member Gilman noted he had requested the resolution be tabled until this meeting for action because of questions he had. He added, he had since read the resolution more closely and felt comfortable with the resolution as it was asking only for the Legislature to provide adequate funding for the department. VOTE: Council Member Moore requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 4 D-4. Resolution No. 2004-11-- Transferring $15,000 From Engineering to Equipment in the Multipurpose Facility Capital Project Fund to Purchase a Zamboni Ice Surfacing Machine. MOTION: Council Member Moore MOVED for approval of Resolution No. 2004-11 and Council Member Swarner SECONDED the motion. There were no public comments. Finance Director Semmens noted there was approximately $29,000 of unencumbered balance in the capital budget. Moore stated his concern for the condition of the building due to ice damming on the roof. He asked if the condition was from a design flaw and added, he believed the condition of the building more important than the purchase of an extra Zamboni. Parks & Recreation Director Frates stated he was not aware of a design flaw, however he, Public Works Manager La Shot and building maintenance personnel had met with the architect and a number of options were discussed and they would be considering the most cost effective, i.e. adding insulation, lowering the temperature, etc. Moore stated he would not support the resolution without knowing there will be something done to prevent the damming. He added, he believed the building was more important and doubted funds would be in the next budget to make modifications to cure the damming. Ross stated he agreed with Moore. Frates explained the opportunity to purchase the extra machine would satisfy a need for a back-up if the present machine breaks down, protecting the ability to collect revenue for use of the ice rink, as well as have a second machine available for use during the Arctic Winter Games. He also noted the summer ice camp would not be held in Kenai this summer but would be held at the Soldotna Sports Center because this expanded camp format would need classrooms as well as ice. Williams stated he was also concerned for the need of building corrections but also felt an extra machine was also needed. He noted, a new Zamboni would cost approximately $75,000 and the dripping of ice from the ceiling causing problems with the ice surface requires more Zamboni use. Williams added, if the city is able to purchase the machine for $15,000, he felt it should be purchased and would support the resolution. City Manager Snow added, the city is aware of the value of the Zamboni; city personnel have examined the machine; it is the same type and model of the city's current machine; the bid has been extended until March 18; it's the Sports Center's original machine; and, she is aware of three other interested bidders. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 5 Finance Director Semmens stated he looked at the funds left in the capital budget as a revenue protection in that if the current machine breaks down, the users of the facility would go to the competitors. He added, for less than $15,000, the city could protect the revenue stream and guarantee good ice. Semmens noted, there was no guarantee the city would have the winning bid, however he did discuss with the Soldotna City Manager their not putting the equipment out for bid. Director Frates also noted the machine is a 1974 model but received a new engine in 1993. Currently, it has only 50-60 hours on the new engine. Moore requested administration to bring back a plan to resolve the problem with ice damming at the ice rink and asked if a repair could be done for the remaining funds in the capital project fund. VOTE: Swarner Yes Moore Yes Porter Yes Gilman No Ross Yes Williams Yes -Bookey Yes MOTION PASSED, D-5, Liquor License Renewals • One Stop Liquors #2319/Package Store • Eagles #3525/Club Approved by consent agenda. ITEM E: COMMISSION / COMMITTEE REPORTS E-1. Council on Aging -- Council Member Swarner reported a vacancy on the Council on Aging due to the death of Member Donna Higley. Swarner also noted the Council would meet next on March 4 at 10:00 a.m. E-2. Airport Commission -- Council Member Moore reported the meeting summary was included in the packet. He referred to discussion relating to the Fish 8� Wildlife Service hangar which had been transferred to city ownership. Moore reported the Commission held a lengthy discussion about what should be done with the hangar, i.e. put it to standard competitive bid, do a request for proposals, keep the building and lease the tie down and hangar spaces, or sell the building through a bidding process and the highest bidder have the first right to lease the property. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 6 Airport Manager Cronkhite offered additional information relating to the Commission's discussion; Attorney Graves discussed Title 21 and constraints it would have on how the building/ property could be sold/ leased, etc. Williams stated he would rather sell the building and lease the land and Ross suggested advertising the lease of the property and note the building is for sale. Porter requested administration to work with Ross' suggestion. There were no objections stated by council. Cronkhite also gave an update of Transportation Security Administration activities relating to passenger and baggage screening. E-3. Harbor Commission -- Council Member Bookey reported the next meeting will be held on March 8. He also noted there are two vacancies on the Commission. EA, Library Commission -- No report. E-5. Parks & Recreation Commission -- Council Member Ross reported the Commission would meet next on March 4. E-6. Planning & Zoning Commission -- Ross reported the Commission met on February 25 and reviewed actions taken, i.e. preliminary plat approval and recommendations for Council approval of two lease applications for airport land. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Swarner noted a meeting was scheduled for March 9. Parks & Recreation Director Frates reported fliers were sent out relating to summer use of community garden plots. Frates was asked if his budget reflected any special costs involved with maintenance of the garden plots and he noted he included funds to purchase a garden tractor which was not specific to the community garden. Porter stated she would prefer the funds be used for placing additional sidewalks at Memorial Park. Moore noted, council had directed Administration to establish a program which would include the city maintaining the grounds. Frates also noted a fee would be charged for the plots and a program was proposed to reduce or eliminate the fee through volunteering of services by the users. E-7b. Kenai Convention & Visitors Bureau Board -- Council Member Porter reported an election of officers was held at the Board's last meeting and they are busy with planning the upcoming art show. Michelle Glass, the newly hired executive director, also reported on activities at the Center and noted the next Board meeting would be held on March 22. � KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 7 E-7c. Alaska Municipal League Report -- Swarner reported the Economic Development Legislative Committee recently met and also noted there were openings on the Coastal Management Task Force. Williams noted an article in the latest Touchstone relating to PERS 8v TERS programs and their under funding. He noted, this was a concern for city employees, current and retired, as their benefits could be reduced. E-7d. Kenai Chamber of Commerce -- Executive Director Canady gave a brief report of activities and upcoming events of the Chamber. Due to a Soldotna Chamber activity scheduled for March 17, Clerk Freas was requested to reschedule the council/staff meeting to be held at 6:00 p.m. that evening to be held prior to the first April meeting. E-7e. Arctic Winter Games -- Council Member Moore reported a contingent of representatives from the Peninsula were attending the 2004 Games in Alberta, Canada. Reports he had been receiving were the group was learning a lot and would be bringing a lot of information back to use in planning the 2006 Games. BREAK TAKEN: 8:32 P.M. BACK TO ORDER: 8:44 P.M. ITEM F: MINUTES F-1. Regular Meeting of February 18, 2004 -- Approved by consent agenda. F-2. February 18, 2004 Board of Adjustment Hearing Verbatim -- Approved by consent agenda. ITEM G: CORRESPONDENCE -- None. ITEM H: OLD BUSINESS -- None. ITEM I: NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: Council Member Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. Council Member Porter SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 8 I-2. Purchase Orders Exceeding $2,500 MOTION: Council Member Swarner MOVED to approve the purchase orders exceeding $2,500 and Council Member Porter SECONDED the motion. It was reported the color printer on the list would be used in place of using an outside vendor for printing of the Comprehensive Plan and would be at a lesser cost. VOTE: There were no objections. SO ORDERED. I-3. Approval -- Lease Application of John C. 8- Marie L. Parker & 20/20 International, Inc. / Lot 11, Block 1, FBO Subdivision. MOTION: Council Member Porter MOVED for approval of the lease application of John C. 8� Marie L. Parker 8. 20 / 20 International, Inc./Lot 11, Block 1, FBO Subdivision and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED, I-4. Approval -- Lease Application of Arctic Barnabas Ministries, Inc./Lots 8 & 9, Block 5, General Aviation Apron. MOTION: Council Member Porter MOVED for approval of the lease application of Arctic Barnabas Ministries, Inc./Lots 8 & 9, Block 5, General Aviation Apron and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. Airport Manager Cronkhite reported access to this and other lots in this area would be resolved with paving improvements being designed by Wince-Corthell-Bryson. She noted, the estimate for the project will probably increase with the addition of Lots 8 8s 9 access, but the costs will be FAA refundable. Jack Caldwell, Barnabas Ministries, Inc. -- Reported they are speaking with three other local volunteer organizations who are interested in sharing office space in the building; it is not their intent to use their facility as a commercial shop; and, they will house at least two aircraft of theirs in the facility. VOTE: KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 9 There were no objections. SO ORDERED, I-50 Discussion -- Sales Tax and Mill Rates A lengthy discussion took place relating to tax option information included in the packet prepared by Finance Director for Council Member Gilman. Gilman explained his concern that with the increased cost of government, there would be continued pressure to spend out of the unrestricted general fund. Gilman suggested the council begin discussing these concerns early in order to receive comments from the public. Gilman explained his suggestion to raise the sales tax one percent, lower the mill rate one percent, and eliminate personal property tax (putting the airport on the same level as other Peninsula airports) . Gilman continued, by increasing the sales tax and reducing the mill rate, he believed more businesses would move into the city. Then, as the city grows, the sales tax would grow. He added, he believed sales tax is the fairest tax because it includes all consumers and an increase in the mill rate will not generate as much revenue. Gilman stated, he believed if something is not done, the city will be facing a $500,000 gap this budget period. Discussion followed in which the comments included: • The city hold a town meeting to address the issue and talk with the largest merchants in the community. • Until current revenue projections as well as those for the next three to five years is available, a discussion would be premature. • Concerns a raise in sales tax would encourage people to shop in other areas, i.e. the public perception would be saving one percent in sales tax. • A raise in sales tax has the biggest potential for revenue growth. • The matter should be discussed with the business sector. • Discuss a raise in the $500 cap in Kenai. • If there is to be a mill rate increase, it must be adopted by June 15; changes in sales tax is more flexible. • The city is not in a crisis situation and administration will not be recommending a raise in taxes. • The surpluses in this year's budget will cover deficits in next year's budget. Williams stated he believed the council's first budget work session in April will better identify concerns and that council needed to look toward the future in budgeting instead of year to year. Swarner requested administration to track sales tax legislation as a state sales tax would have a big effect on the city. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 10 ITEM J: REPORT OF THE MAYOR -- Mayor Williams reported the following items: • Referred to the DOT letter relating to a sign and flower boxes in the right of way at the Big Dipper Car Wash which was written in response to the city's letter. Williams noted, the lengthy letter ended with their willingness to consider issuing a beautification permit. Gilman suggested a copy of the letter be forwarded to the Governor's Chief of Staff. No objections were stated. • Former Representative Mike Navarre gave a presentation at the day's Chamber of Commerce luncheon about the POMV and his participation in the "Alaska 55." • Hearings were held in Nikiski regarding the extension of the road. The public was very supportive. • Noted the draft letter relating to the conditional use permit application for Kenai Landing, Inc. prepared by City Attorney Graves. • Reported he was contacted regarding EADS interest in developing a facility in Kenai. City Manager Snow reported she had not received any response from her last correspondence with the company. ITEM K: ADMINISTRATION REPORTS K-1, City Manager -- City Manager Snow reported the following: • On request of council, she contacted the Regional Branch at the Corps of Engineers and asked what would happen upon their completion of studies relating to the bluff erosion/restoration project. She learned administration is to receive a report from the Corps in July and then council and administration will need to evaluate where to go from there. She reminded council no engineering funds were included in the budget and council will need to consider whether it would want to continue the work perhaps as a capital project. When the report is received, the city will need to analyze them and though an analysis could be done in-house, she felt it important to have experts do this work. Williams asked if there had been funds included in the new budget for that purpose. Snow answered no and explained, she believed it would take most of the summer and the rest of the year to hold preliminary meetings and determine whether the permitting time clock should start. This would give an opportunity to see if any federal funds are acquired for the project. Williams stated the indications were a limit will be placed on the funds included in the omnibus bill and emphasis will need to be made of the city's desire to have funds included in that bill, but also give the congressional delegation an opportunity for a backup plan, i.e. put it in the Corps projects bill, etc. He suggested the delegation be informed the city would need $500,000 immediately for continuation of the permitting process and $7 to 14 million for the remaining portion of the project. Williams KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 11 suggested additional travel may be required by city representatives when the Corps bill comes forward to lobby for this project. He added, the council must address this issue in funding their budget for the new year. Williams requested a chart be prepared showing what the Legislative budget (including travel) has been over the last ten years. • Four city employees had requested reemployment agreements with the city in the PERS opt out program. Savings will be effected in the city's PERS and insurance costs. 0 Last year Administration brought forward a resolution to raise the water/ sewer rates reflecting the findings of the study prepared for the city, i.e. a raise of 30 and 35%. At that time, the council chose to reduce the increase and suggested doing it incrementally. Snow noted she expected to prepare a resolution to raise the rates as council suggested last year. Porter referred to Ordinance No. 1995-2003, which amended the code to include the opt -out provision to the public retirement system. She noted, since it had been brought up, she had been doing a lot of thinking and wanted to request administration not enter into anymore agreements until the council has a chance to review the ordinance within the next month. Council Member Ross stated he endorsed Porter's request. He added, he was not on council when the ordinance was passed, but understood there is no criteria used by administration as to why the position should be filled by a retiree instead of going out to advertise the position. He added, he could see where this could be an organization -limiting program as far as development within the organization, exchange of ideas, etc. and wanted to have the opportunity to revisit the issue. Ross added, if nothing else, to add those employees in that status as "at -will" employees instead of tenured. Attorney Graves stated the ordinance was enacted a year prior to administration allowed anyone to participate in the program. He added, he believed there could be a moratorium as long as it would be uniformly applied across the board and not selectively applied. Graves stated, he believed council could request administration to have a moratorium until they review the criteria or until such time as they determined whether or not they want to repeal or amend the ordinance -- as long as it is a uniform moratorium and not selectively enforced. Porter stated she wanted to come back within the next month with a proposed amendment to the ordinance. She added, it was not her intention to rescind the ordinance, but to add a condition to the ordinance. Swarner asked if a motion was required and Graves stated the City Manager should be asked whether she wanted a motion or whether she is willing to commit to the moratorium. Snow stated she believed a motion was necessary as a formal record since the program was made available through an ordinance. Graves added, the city manager could say she would decide to have a moratorium or she was within her rights to request a motion from council to receive the direction. Snow requested a motion. KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 12 MOTION: Council Member Moore MOVED to request the Administration not to enter into anymore agreements until the council has the opportunity to review the ordinance, within the next months so that it's not on hold forever; a 60 day moratorium. Council Member Ross SECONDED the motion. There were no objections. SO ORDERED. K-2. Attorney -- Referred to the letter supporting a conditional use permit for Kenai Landing, Inc. and asked if council had any objections to the letter being sent. No objections were voiced by council. 3. City Clerk -- No report. ITEM L: DISCUSSION L-1, Citizens Bob Peters, Old Town -- • Referred to the ordinance to establish term limits for commission/committees and stated he thought council had previously demonstrated their lack of comfort in enforcing rules in place for limiting absences. He added, he thought it would be difficult to enforce a term limit ordinance when there are no applicants to fill vacancies as it is now difficult without term limits. • He suggested the purchase of the used Zamboni should be based on whether it would be a good deal for the city and not on lost revenue. • Stated his support of a sales tax increase. He added, he understood some of the council's concerns of how an increase would affect local business and he believed an increase would have little effect. Casey Reynolds -- Gave a brief report of the activities of the Kenai Economic Development Strategy (KEDS) group. L-2. Council Swarner -- Noted the Kenai River Council on the Arts would meet on March 13 at the Visitors Center and a "can-struction" competition was held at the Center. Items built with cans and other foods were available for review. Moore -- • Stated his concern with city email problems. • Suggested cities of Homer and Seward be contacted regarding raising of sales tax and ask if they had any concerns raised from their business community. Porter -- Stated she would be absent from the March 17, 2004 meeting. ^'1 KENAI CITY COUNCIL MEETING MARCH 3, 2004 PAGE 13 Gilman -- Encouraged everyone to support the Kenai Peninsula Borough Special Election ballot relating to funding of extra -curricular activities. Ross -- No comments. EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at approximately 10 :16 p.m. Minutes transcribed and prepared by: J't� X, "S A4f,4dI Carol L. Freas, City Clerk BY NCI ki ` �� .