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HomeMy WebLinkAbout2004-05-05 Council Minutes-- - AGENDA KENAI CITY COUNCIL - REGULAR MEETING MAY 5, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt w-ww.ci.kenai.ak.us ITEM A: CALL TO ORDER 11. 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. ITEM C: ITEM D: SCHEDULED PUBLIC COMMENTS (10 minutes) Sadie Moore -- ICAN Program, Community At -Reach Program REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS PUBLIC HEARINGS 1. Ordinance No. 2037-2004 -- Amending KMC 23.40.080 to Provide for a Five Year Maximum Period of Reemployment for Those Persons Participating in the PERS Opt -Out and Reemployment Provisions of AS 39.35.150(b). a. Remove from table. b. Consideration of ordinance. C. Substitute Ordinance No. 2037-2004 -- Amending KMC 23.40.080 to Provide for a Five Year Maximum Period of Reemployment for Those Persons Participating in the PERS Opt - Out and Reemployment Provisions of AS 39.35.150(b). 2. Ordinance No. 2038-2004 -- Finding That Certain City -Owned Airport Land, Described as Tract A, Baron Park No. 12 (Preliminary Plat), Consisting of Approximately 16 Acres Adjacent to Marathon Road, is Not Required for a Public Purpose and Can Be Sold, Providing a Deed of Release is Obtained from the Federal Aviation Administration. 3. Ordinance No. 2039-2004 -- Finding That Certain City -Owned Airport Land, Described as Baron Park No. 6, Consisting of Approximately 15 Acres Adjacent to Marathon Road, is Not Required for a Public Purpose and Can Be Sold. 4. Ordinance No. 2040-2004 -- Amending KMC 7.05.010 to Provide for a Flat Tax on Aircraft. 5. Resolution No. 2004-18 -- Increasing the Water and Sewer Rates and Deposits. 6. Resolution No. 2004-19 -- Awarding the Bid to Norris & Sons for 8,000 Cubic Yards of Street Maintenance Sand for the Total Amount of $43,920. 7. Resolution No. 2004-20 -- Transferring $2,500 in the General Fund for a Reception for Northern Dynasty Ltd. and the Pebble Mine Project. 8. Resolution No. 2004-21 -- Transferring $30,000 in the Water and Sewer Fund for Construction of a Vactor Truck Dump Station. 9. Resolution No. 2004-22 -- In Support of the Immediate Construction of a Fiber Optic Cable Linking Anchorage, Kenai, Homer and Kodiak. 10. Resolution No. 2004-23 -- Approving a Contract to Quality Electric for the Project Entitled Kenai Municipal Airport Security System - 2004 for Individual Lump Sum Amounts Totaling $28 1, 101 Which Includes the Basic System and Additive Alternates 1 Through 4. 4 1 1. Liquor License Renewal -- Mr. D s/Beverage Dispensary Tourism ITEM E: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning 8v Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce e. Arctic Winter Games f. Stranded Gas Committee ITEM F: MINUTES 1. *April 19, 2004 Budget Work Session Notes. 2. *Regular Meeting of April 21, 2004. 3. *April 27, 2004 Budget Work Session Notes. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS ITEM I: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 2041-2004 -- Finding Certain City -Owned Land, Described as Tract A-5, Dena'ina Point Estates, Consisting of 9.630 Acres, is Not Required for a Public Purpose and Can Be Sold. 4. *Ordinance No. 2042-2004 -- Increasing Estimated Revenues and Appropriations by $672 in the General Fund Library Department for a State Grant. 5. *Ordinance No. 2043-2004 -- Increasing Estimated Revenues and Appropriations by $30,000 in the Airport Terminal Enterprise Fund for Short Term Parking Lot Renovations. 6. *Ordinance No. 2044-2004 -- Amending Title 14 of the Kenai Zoning Code by Adopting KMC 14.20.175 for the Regulation of Adult Businesses. 7. Discussion -- Schedule Joint Work Session with Kenai Visitors 8s Convention Bureau Board of Directors. 8. Discussion -- Lawton Acres Preliminary Review. 9. Discussion -- Improvements to Airport Lots 5 and 6, FBO Subdivision. 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 - Annual evaluations of City Attorney and City Clerk. ITEM M: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING MAY 5, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 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. RnT.T. V.AT.T. Roll was taken by the City Clerk. Present were: Blaine Gilman Rick Ross John J. Williams, Mayor James C. Bookey, III Linda Swarner Joe Moore Pat Porter A-3, AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: SUBSTITUTE PAGES: Item D-5, Resolution No. 2004-18, Pages 1 and 7 of Public Utility Regulations and Rates ADD TO: I-8, Discussion/Lawton Acres Preliminary Review -- 5/4/04 Brief analysis of the feasibility of rezoning and developing the parcel between Lawton Drive and the Spur Highway. ADD TO: J-1, Mayor's Report -- Draft letter of no objection to State Pipeline Coordinator's Office regarding Happy Valley Extension Amended Right -of -Way Lease application. MOTION: Council Member Bookey MOVED to approve the agenda as amended and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, A-4, CONSENT AGENDA MOTION: KENAI CITY COUNCIL MEETING MAY 512004 PAGE 2 Council Member Bookey MOVED to approve the consent agenda as presented and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) Mayor Williams read a proclamation supporting National Police Week and Peace Officers Memorial Day. He noted, he and Vice Mayor Bookey would be traveling to Washington, DC to attend the memorial services and would also meet with congressional delegation representatives on several issues. KPD Officer Scott McBride, Mrs. Kathy Watson and her daughter would also be traveling to DC to participate in the Police Week conference and attend Peace Officers Memorial Day events. BREAK TAKEN: 7:10 P.M. BACK TO ORDER: 7:21 P.M. B-1. Sadie Moore -- ICAN Program, Community At -Reach Program -- Not present. B-2. Michelle Glass, KVCB Report -- Mayor Williams moved this item forward. Glass gave a brief update of activities taking place at the Visitors Center. She noted they estimated 1,000 attendees at the recent art show opening; 13 pieces of art were sold; they raised $4,000 with their silent auction raffle; they will be hosting a Republican Party Conference on May 10; and offered the use of the Center for the Pebble mine reception being planned by the city. Glass also suggested June 8 or 15 as dates for the joint work session between the council and the KVCB Board of Directors. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS C-1, Assembly Member Betty Glick gave a report of actions taken at the Assembly's May 4 meeting. One issue she emphasized was their introduction of an ordinance to raise the sales tax cap from $500 to $1,000. If the ordinance is passed, it will become effective January 1, 2005. She noted, she did not think it was necessary to raise either the Borough's mil rate or the sales tax. Glick requested a recommendation from the council in this regard. Council Member Gilman stated he supported raising the sales tax cap and noted, the city could use the additional revenue. Council Member Bookey stated he agreed with Glick and added, he believed it would be counterproductive to raise the cap. Glick noted, the Legislature was considering the setting of a state sales tax and if it is passed, there will be impact to municipalities as well. KENAI CITY COUNCIL MEETING MAY 512004 PAGE 3 Council Member Ross stated, if the cap does not need to be raised, then don't raise it; if it's a choice of raising the mil rate or the sales tax cap, he suggested raising the sales tax cap. Williams stated he understood it was an option and he preferred the cap being raised in addition to a mil rate increase. He noted the hospital project as a reason for his suggestion. ITEM D: PUBLIC HEARINGS D-1, Ordinance No. 2037-2004 -- Amending KMC 23.40.080 to Provide for a Five Year Maximum Period of Reemployment for Those Persons Participating in the PERS Opt -Out and Reemployment Provisions of AS 39.35.150(b). D- la. Remove from table. MOTION: Council Member Porter MOVED to remove Ordinance No. 2037-2004 from the table and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED, D-lb. Consideration of ordinance. D-lc. Substitute Ordinance No. 2037-2004 -- Amending KMC 23.40.080 to Provide for a Five Year Maximum Period of Reemployment for Those Persons Participating in the PERS Opt -Out and Reemployment Provisions of AS 39.35.150(b). MOTION TO SUBSTITUTE: Council Member Porter MOVED for approval of Substitute Ordinance 2037-2004 and Council Member Moore SECONDED the motion. There were no public comments. Council Member Moore noted he requested the ordinance be tabled at the April 21 council meeting due to Finance Director Semmens' being out of town. He requested Semmens speak to the ordinance. Finance Director Semmens referred to his memorandum which was included in the packet. He also reported, while attending a meeting in Sitka relating to PERS, he discussed council's concerns with a PERS representative. Comments he received included: 1) the back -end costs will not exceed the front-end savings; and, the city should absolutely do the opt -out program because the dollars are so compelling, it is impossible to see anything in this scenario that would overcome the savings. KENAI CITY COUNCIL MEETING MAY 52 2004 PAGE 4 Semmens also noted, his opinion was in his memorandum and he believed the five- year contract term would be not be an incentive for employees to participate. A lengthy discussion followed and comments included: • If council approves a COLA increase, those opting out would receive the COLA increase and all other benefits offered by the city, other than medical insurance and PERS. • The City pays Medicare on all employees who are not exempt. • Concerns of participating in the PERS opt -out program when PERS is in financial trouble as it could impact the city. • With the substitute, after five years, those who participated in the program will be able to continue working for the city, but will have to go back into the PERS program. • This is not an employee benefit program or an entitlement, and the program should be treated as a management tool. • Another council could amend the code (and this program) before the program expires. • Semmens noted his memorandum referred to eight employees being eligible for the program and there are actually seven. Of the seven, he was aware of three being interested in participating in the program, one employee paid from the Water/ Sewer Fund. If the employee decides not to participate, the draft budget will have to reflect the change. • Porter explained her reason for bringing the ordinance forward was due to concerns she received from other employees who do not think it is fair to them and with the PERS program in trouble, she was not comfortable with paying in and then opting out. • City Manager Snow reported, after talking with employees, she believed only four who are eligible would take advantage of the program. They view their paying PERS and health insurance, as well as the city, as a disincentive. She agreed the program should be viewed as a management tool not an employee benefit. Referring to other comments of participation in the program developing another tier in employment, she noted, there are already existing tiers between employees. • Snow noted, theoretic and public concerns are important, but when they are compared to dollar savings and opportunity to the city and employee, she finds on the side of the employee and the city. • City Attorney Graves explained, if an employee participates in the program, they must take a mandatory leave of absence, cash out their leave, opt out of the PERS program, and then rejoin the city (which is what North Pole and Fairbanks did) . In that way, which is consistent with Council Member Ross' interpretation, the person would return at the same wage and level of benefits, but the health insurance program could be different than one they participated in prior to opting out. He added, that would be made clear because there is a probability the health insurance program five ears in the future could be significantly different P g y gn y Brent than the current one. KENAI CITY COUNCIL MEETING MAY 51 2004 ` PAGE 5 VOTE: Gilman No Ross Yes Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes MOTION PASSED, D-2, Ordinance No. 2038-2004 -- Finding That Certain City -Owned Airport Land, Described as Tract A, Baron Park No. 12 (Preliminary Plat), Consisting of Approximately 16 Acres Adjacent to Marathon Road, is Not Required for a Public Purpose and Can Be Sold, Providing a Deed of Release is Obtained from the Federal Aviation Administration. MOTION: Council Member Bookey MOVED to adopt Ordinance No. 2038-2004 and Council Member Swarner SECONDED the motion. There were no public comments. Council Member Gilman disclosed a conflict of interest and requested to abstain from the vote. His request was approved by Mayor Williams. Bookey stated the request was reviewed by the Planning & Zoning Commission and they found the property not needed for public purpose. Council Member Moore noted, though it is airport lands, the request was not reviewed by the Airport Commission. He noted concerns that if the property is sold, the funds go into the Airport Trust Fund and are not available for use, other than the interest. However, if properties are leased, those funds are available for use. As the Airport Fund balance diminishes, he believed the consequences in selling airport property should be discussed further. Williams asked if the Airport Trust Fund can be used for improvements of lands, i.e. utilities, roads, etc. Finance Director Semmens stated administration was researching the issue. They have requested a clarification from FAA and when that is received, the information will be forwarded to council. VOTE: Gilman Abstained Ross Yes Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes KENAI CITY COUNCIL MEETING MAY 52 2004 PAGE 6 MOTION PASSED UNANIMOUSLY. D-3. Ordinance No. 2039-2004 -- Finding That Certain City -Owned Airport Land, Described as Baron Park No. 6, Consisting of Approximately 15 Acres Adjacent to Marathon Road, is Not Required for a Public Purpose and Can Be Sold. MOTION: Council Member Bookey MOVED for adoption of Ordinance No. 2039-2004 and Council Member Swarner SECONDED the motion. Jim Murphy, 11306 West Circle, Anchorage -- Explained he works for North Star Behavioral Health System and spoke in favor of the ordinance and noted, it was their intention for their facility to be available for Alaskan children needing care who now get sent out of state; to provide the families visitation of their children instead of having to go out of state as they do currently; and, they believed their facility will be good for commerce, i.e. paying taxes, provi .ding jobs during construction and after. Moore referred to the same concerns he had in selling the property and its impact to the Airport Fund as he did with Ordinance No. 2038-2004. Council Member Gilman disclosed a conflict of interest and requested to abstain from the vote. His request was approved by Mayor Williams. VOTE: Gilman Abstain Ross Yes Williams Yes Bookey es Swarner Yes Moore Yes Porter Yes MOTION PASSED UNANIMOUSLY. BREAK TAKEN: 8:29 P.M. BACK TO ORDER: 8:47 P.M. D-4, Ordinance No. 2040-2004 -- Amending KMC 7.05.010 to Provide for a Flat Tax on Aircraft. MOTION: Council Member Moore MOVED to adopt Ordinance No. 2040-2004 and Council Member Swarner SECONDED the motion. KENAI CITY COUNCIL MEETING MAY 52 2004 PAGE 7 Henry Knackstedt, 1602 Barabara Drive, Kenai -- Knackstedt noted he is the chair of the Airport Commission and reported the Commission had discussed the aircraft tax for some time and hoped the passage of the ordinance would generate more revenue at the airport. He added, the amendment to the code would also place the Kenai Airport on the same playing field of other airports. They also felt that if a user is operating in Kenai, they will also be buying fuel, buying groceries, etc. Danny Brewer, 1300 Lawton Drive, Kenai -- Explained he is a leaseholder at the airport and airplane owner. He noted, having a tax in Kenai is a big disadvantage when other areas around the city have no tax at all. Brewer stated he had heard from a mechanic who was afraid to move his business to Kenai because he was afraid his clientele would not follow him here. With the change in the borough code and if the city's code is amended, Brewer stated he was considering bringing in larger aircraft to deliver across the Inlet and doing winter operations. He added, the taxes are a deterrent. Porter stated she would support the ordinance. She noted, her family owns a plane which is parked at the airport or float plane basin. She spoke with the City Attorney who felt she had no conflict in regard to voting on the ordinance. Tom Thibodeau, P.O. box 362, Kenai -- Thibodeau stated he lives out of the city but has been flying out of the Keni Airport for 30 years. He believed a change in the ordinance would encourage growth on the airport and the area. A lengthy discussion followed which included the following comments: • Ross referred to Semmens memorandum included in the packet which recommended the council consider options to the proposed ordinance that would include a flat tax for each category. He suggested administration develop options and send them back to the Airport Commission for further review. He noted, the ordinance was not time sensitive. • Semmens noted, if the ordinance is passed prior to December 31, 2004, it would be effective at that time. Owners and business people would benefit with the earliest resolution of the issue. Passage of the ordinance would affect the 2006 revenues. 0 Cronkhite noted local aircraft owners were not aware that the change in the borough's tax would effect the city's tax; the Commission felt there would be advantages to economic development of the area if the tax becomes effective earlier; and, they would like to use it as a marketing tool. • Moore stated he believed amending the tax ordinance would be an incentive for aircraft owners, airport related businesses, etc. to come to Kenai. • Porter stated she believed the projected loss of aircraft tax would be made up by an increase in sales tax by people who will bring their planes to Kenai. KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 8 • Gilman stated he would support the ordinance because he felt it a good investment to get more commercial revenue at the airport. • Bookey stated he would support the ordinance but believed other special interest groups will come forward requesting like consideration. • Swarner stated she strongly supported the ordinance. She added, if it doesn't work, council can revisit the issue. • Williams stated he would support the ordinance. • Ross agreed with Bookey in regard to other groups coming forward. He again suggested options be developed for the Airport Commission to review and consider. VOTE: Gilman Yes Ross No Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes MOTION PASSED, D-5., Resolution No. 2004-18 -- Increasing the Water and Sewer Rates and Deposits. MOTION: Council Member Porter MOVED to approve Resolution No. 2004-18 and Council Member Moore SECONDED the motion. Bob Peters, Old Town, Kenai -- Stated he supported the increase last year. Suggested finding other means to find funding for the Sewer Treatment Plant needs. Williams explained an increase was made in the last fiscal budget to follow the recommendation made in the study of water/ sewer rates, future projects, etc., however the increase was half of what was suggested. Council's intention was to raise the rates again this year to bring them to the recommended level. Public Works Manager Kornelis reviewed improvements needing to be made, i.e. arsenic removal, water tank renovations, loops with Well House No. 4, STP improvements, etc. A brief discussion followed regarding the amount of rate changes, etc. It was noted an increase in the deposit, water/ sewer rates, and meter fees, etc. were included in the amendments. 1 VOTE: -� KENAI CITY COUNCIL MEETING MAY 512004 PAGE 9 Gilman Yes Ross Yes Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes MOTION PASSED UNANIMOUSLY, D-6. Resolution No. 2004-19 -- Awarding the Bid to Norris 8. Sons for 8,000 Cubic Yards of Street Maintenance Sand for the Total Amount of $43,920. MOTION: Council Member Bookey MOVED for approval of Resolution No. 2004-19 and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. It was noted the company has been successfully used in the past. VOTE: There were no objections. SO ORDERED, D-7. Resolution No. 2004-20 -- Transferring $2,500 in the General Fund for a Reception for Northern Dynasty Ltd. and the Pebble Mine Project. MOTION: Council Member Porter MOVED for approval of Resolution No. 2004-20 and Council Member Bookey SECONDED the motion. There were no public comments. It was noted no date had been set for the reception as it was still in the planning stages. VOTE: There were no objections. SO ORDERED, D-8, Resolution No. 2004-21 -- Transferring $30,000 in the Water and Sewer Fund for Construction of a Vactor Truck Dump Station. MOTION: Council Member Bookey MOVED for approval of Resolution No. 2004-21 and Council Member Moore SECONDED the motion. KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 10 There were no public comments. It was noted, the paving would be completed during next year's budget. VOTE: There were no objections. SO ORDERED, D-9, Resolution No. 2004-22 -- In Support of the Immediate Construction of a Fiber Optic Cable Linking Anchorage, Kenai, Homer and Kodiak. MOTION: Council Member Porter MOVED for approval of Resolution No. 2004-22 and Council Member Moore SECONDED the motion. There were no public comments. Williams referred to the support letter prepared in September which was included in the packet. He noted, the resolution was generic in terms, like the support letter. A brief discussion took place relating to the advantage for the area if the cable is constructed. VOTE: There were no objections. SO ORDERED. D-10. Resolution No. 2004-23 -- Approving a Contract to Quality Electric for the Project Entitled Kenai Municipal Airport Security System - 2004 for Individual Lump Sum Amounts Totaling $28 1, 101 Which Includes the Basic System and Additive Alternates 1 Through 4. MOTION: Council Member Moore MOVED for approval of Resolution No. 2004-23 and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no public comments. Airport Manager Cronkhite explained the proposal process, evaluation of the proposals, and the negotiated price in relation to the design/build procedure. She noted, a design/build project is not always decided on price; depending upon the point in the process, some price information is not public information because it's a negotiation; the price is heavily weighted in the evaluation process; and, the technical support is local, the camera technicians are local (within 30 minutes notice) which was very advantageous to the police department about their proposal. Cronkhite also noted, the FAA has approved the award. -� KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 11 VOTE: Gilman Yes Ross Yes Williams Yes Bookey es Swarner Yes Moore Yes Porter Yes MOTION PASSED UNANIMOUSLY. D-11. Liquor License Renewal -- Mr. D's/Beverage Dispensary Tourism Approved by consent agenda. ITEM E: COMMISSION / COMMITTEE REPORTS E-1. Council on Aging -- Council Member Swarner reported the next meeting was scheduled for May 6 and the group would be discussing adding a no -smoking rule to the Vintage Pointe rules and regulations, including the apartments. E-2. Airport Commission -- Council Member Moore reported the Commission held a special meeting on April 29 and the meeting summary was included in the packet. He noted, they met to review a lease application for airport property. The issue would be discussed by council later in the meeting. E-3. Harbor Commission -- Council Member Bookey reported the next scheduled meeting is Monday, May 10. E-4. Library Commission -- Council Member Gilman reported the next scheduled meeting is June 1. E-5. Parks & Recreation Commission -- Council Member Ross reported the next scheduled meeting is May 6. E-6. Planning & Zoning Commission -- Council Member Ross reported the minutes of the April 28 meeting were included in the packet. He noted actions taken, including the Commission's passage of their recommending resolution related to adult -oriented businesses. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Council Member Swarner reported the next scheduled meeting is May 11 and planting day will be held on May 29. E-7b. Kenai Convention 8s Visitors Bureau Board -- Reported earlier in the meeting. KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 12 E-7c. Alaska Municipal League Report -- Swarner noted she would participate in a teleconference meeting on economic development on May 10. E-7d. Kenai Chamber of Commerce -- Tim Navarre, Chamber President reported the following items: • The KEDS meetings were progressing very well and discussions now were taking place on planning for Millennium Square. • Donations for a large memorial to honor Officer Watson are being accepted. • Due to the director and assistant leaving the Chamber's employment, a dialog had opened up between the Chamber and the KVCB to see if there is interest, compatibility, etc. to merge the two entities. Kathy Moore, Chamber Assistant reported the following: • The Chamber was participating in the Peninsula Air Fair to be held on May 22. • She accepted a position with the Arctic Winter Games as their Volunteer Manager. • Stated she felt it very important the City and Chamber keep an open dialog and the City support and appreciate the Chamber's efforts. E-7e. Arctic Winter Games -- Council Member Moore reported the next scheduled meeting will be held May 13. E-7f. Stranded Gas Committee -- Council Member Ross reported the following: • The Committee continues to meet. • One formal proposal has met the criteria of the Act and there are two others filed from Canadian companies and one from the Port Authority. • City administration is gathering data, doing economic impacting assessment, reviewing revenue streaming in relation to Payment in Lieu of Taxes (PLT). • He will bring the Committee's resolution forward in June that essentially sets out guidelines to the state negotiators in reference to PLT, justification for it, how they think it should be applied, as well as some definition to them on what fees, taxes, etc. should be considered regarding PLT. Neither the companies involved or the state have been able to provide the economic justification for a PLT through the construction phase. BREAK TAKEN: 10:19 P.M. BACK TO ORDER: 10:30 P.M. ITEM F• MINUTES KENAI CITY COUNCIL MEETING MAY 512004 PAGE 13 F-1. April 19, 2004 Budget Work Session Notes -- Approved by consent agenda. F-2. F-3. agenda. ITEM G: ITEM H: ITEM I: Regular Meeting of April 21, 2004 -- Approved by consent agenda. April 27, 2004 Budget Work Session Notes -- Approved by consent CORRESPONDENCE -- None. OLD BUSINESS -- None. NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: Council Member Bookey MOVED to pay the bills and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED. I-2. Purchase Orders Exceeding $2,500 MOTION: Council Member Bookey MOVED to approve the purchase orders exceeding $2,500 and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. I-3, Ordinance No. 2041-2004 -- Finding Certain City -Owned Land, Described as Tract A-5, Dena'ina Point Estates, Consisting of 9.630 Acres, is Not Required for a Public Purpose and Can Be Sold. Introduced by consent agenda. I-4. Ordinance No. 2042-2004 -- Increasing Estimated Revenues and Appropriations by $672 in the General Fund Library Department for a State Grant. Introduced by consent agenda. Ordinance No. 2043-2004 -- Increasing Estimated Revenues and Appropriations by $30,000 in the Airport Terminal Enterprise Fund for Short Term Parking Lot Renovations. KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 14 Introduced by consent agenda. I-6. Ordinance No. 2044-2004 -- Amending Title 14 of the Kenai Zoning Code by Adopting KMC 14.20.175 for the Regulation of Adult Businesses. Introduced by consent agenda. I-7. Discussion -- Schedule Joint Work Session with Kenai Visitors 8s Convention Bureau Board of Directors. Council selected June 15, at 7:00 p.m. in the Council Chambers for a joint work session with the Kenai Visitors 8v Convention Bureau Board of Directors. I-8. Discussion -- Lawton Acres Preliminary Review. A lengthy discussion took place which included the following comments: • Council noted a telephone message received by the City Clerk from Kim Beck who stated she lives along Lawton, between Rogers an Walker, and expressed her opposition to rezoning Lawton Acres. Beck was informed the present discussion was preliminary and if council wishes to continue with the process, public hearings to rezone the area would take place at both the Planning & Zoning Commission and Council levels. • Council reviewed a memorandum included in the packet from Public Works representatives which included a brief analysis of the feasibility of rezoning and developing the parcel and a suggested simple development plan that pointed out various restrictions. The memorandum also reported discussions with the State about accessing the property. • Council also reviewed Attorney Graves' memorandum regarding spot zoning which was included in the packet. • Council Members Swarner and Bookey reported they had received comments from residents who opposed a rezone. • Council Members Porter and Gilman stated they had received no calls relating to the issue. Nate Kiel, 404 Lawton Drive, Kenai -- Stated he had been to several meetings on the issue and felt the council was listening to his concerns and was impressed by their pro -development stance. Because public opinion could have changed over the years, he didn't believe responsible development of small businesses in this area would be a negative impact, he encouraged council to move forward with the issue to at least find out how the community feels. He added, he would not be interested in developing a business in that area if access would need to be from Lawton Drive. - .KENAI CITY COUNCIL MEETING MAY 512004 PAGE 15 Other comments included: • Williams stated he believed it may be difficult to obtain approval from the state for highway access. • A buffer zone requirement could be included on the plat, but the city would have to be ready to enforce it, or the buffer zone portion of the property could remain in the city's ownership and control with utility easements through the property. Administration was requested to prepare a landowners packet of information for review by council (including an outline of what is being considered, suggested accesses, water/sewer information, buffers, estimated cost, etc.) as a discussion item prior to the council petitioning a rezone of the property (the portion of property up to the Conservation Zone as shown by administration's proposed plat) to the Planning 8v Zoning Commission. Council will decide what zone to include in the petition to the Commission. I-91 Discussion -- Improvements to Airport Lots 5 and 6, FBO Subdivision. Airport Manager Cronkhite referred to her memorandum included in the packet and explained she had been contacted by Mike Spisak of Bellair, Inc. regarding the possibility of leasing airport property on which to move his business. He submitted an application originally for property adjacent to the airport terminal (Tract A) . This property was earmarked for additional ramp area to the terminal by the Airport Master Plan. Cronkhite explained that piece of property was also used as a snow dump and is integral to the overall drainage system for the south ramp. She noted, the Airport Commission recommended denial of the lease application for the reasons Cronkhite reported. Cronkhite added, she suggested Lots 5 and 6 as an alternate and in talking with Spisak, learned he had some concerns about the amount of dirt that would need to be brought onto those lots for use. She indicated the airport had equipment and sand to begin bringing the lots up to grade. Cronkhite noted Spisak telephoned her the next day and said he would be submitting an application for Lots 5 and 6, if the improvements are made by the city. She indicated that could not be done without the direction of Administration and Council. Cronkhite noted John Parker had previously applied for Lots 5 and 6 but had not been offered the improvements being made; Spisak stated he would not be interested in these lots without the improvements. Dwight Kramer -- Introduced himself as a friend and associate of Spisak and indicated Spisak had recently purchased property on the Peninsula, is building a home here, and wants to move his business from Anchorage to Kenai. He noted, that if the city is willing to bring the level of the two lots up to the same level as the other �KENAI CITY COUNCIL MEETING MAY 512004 PAGE 16 adjacent properties, that's what he is request. If that's not possible, he would like Tract A and he would be responsible for full development of the portion of Tract A on which he wants to build a hangar, realizing there are drainage problems that will need to be dealt with and Spisak would be willing to bear the expense of tying into the culverts and taking care of the drainage problems in the course of construction. Kramer also noted, it was offered to backfill Lots 5 and 6 with city sand, but Spisak would like an additional binder (gravel, etc.) so that it is more appropriate for construction. Additionally, Spisak wants to place a hangar on the property and wants to begin construction this summer. He would like to build on the front portion of Tract A, which is a portion set aside by the Airport Master Plan for future ramp development or expansion. Cronkhite noted, an estimated cost for bringing Lots 5 and 6 to grade was approximately $55,000. Bookey stated he spoke with Spisak and he indicated his preference was Tract A, though he did not want to do full market value for the front property and he explained FAA mandates that requirement and it could not be changed. He added, Spisak has a development plan to use all of Tract A though he would not be able to complete development would have to be done in phases over a two or three year period; and he felt Tract A would be the better location for a successful business at the airport. Bookey added, he felt the Master Plan could be amended to accommodate the leasing of this property and he also noted the comments relating to the other lots and that the city did not offer to improve the lots for the previous applicant and wants the city to be fair. Snow noted, it was her understanding Spisak's initial application was for a portion of Tract A and not all of it. Cronkhite noted, the Airport Commission's denial was based on their impression Tract A was to be reserved for terminal and/or jet ramp expansions. Discussion followed relating to a building retention line on the property, which could be moved; the issue can go before the Planning & Zoning Commission if council wants to pursue it; the matter would come back to council for consideration after reviewed by the Commission; and, to relocate the building retention line would include the city's cost for the engineering. MOTION: Council Member Gilman MOVED to ask the Planning & Zoning Commission to consider Tract A for this gentleman with the consideration of re -subdividing. Council Member Porter SECONDED the motion. There were no objections. SO ORDERED, ITEM J: REPORT OF THE MAYOR -- Mayor Williams noted the following: • Referred to a letter received from Mayor Bagley requesting a list of names for consideration to be appointed to the Planning Commission due to the term KENAI CITY COUNCIL MEETING MAY 52 2004 PAGE 17 expiration of Phil Bryson. Williams suggested a letter be forwarded with only Phil Bryson's name included as the council's choice. MOTION: Council Member Bookey MOVED to recommend Phil Bryson as the city's choice for appointment to the Borough Planning Commission and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. • Referred to the draft letter added to the agenda stating the city's support of the Amended Right -of -Way Lease for the Happy Valley Extension. Council had no objections in forwarding the letter. ITEM K: ADMINISTRATION REPORTS K-1. City Manager -- City Manager Snow reported the following: • She spoke with Lorne Smith at Arctic Winter Games about the dog mushing venue for the Games due to some concern about using the Kenai Golf Course. He had been contacted by the Dog Sled Association who use an area in the vicinity of the Soldotna Airport and the venue will be moved there. • AWG is working with Cronkhite relating to signage and flag poles. The matter will come back to council for consideration. • The Planning & Zoning Commission will review the All Hazard Mitigation Plan and it will then come to the council for consideration. • She gave an update related to the telephone system at the Public Safety Building. • Public Works Director Kornelis received permission for the city to remove the snow fencing left at the lake along Marathon Road. The fencing was removed. • Public Works Manager La Shot spoke with the owners of the Glad Realty building and learned it is there intent to move the building, probably in the next month. The owner will secure the building. • FAA land transfer on the Millennium Square property was completed. • Cemetery Clean -Up will take place on May 15. • A long term lease application was received from a person interested in building a new office building complex on property adjacent to the court house. Williams stated council would have to consider whether lots should be saved for future expansion of the court house when the application comes for their review. Williams reported the boat launch improvement grant would not include enough funds to extend the road and build the launch. He asked if the land could be acquired. Kornelis reported he had been discussing the matter with representatives of the property and they need to have equal value in a trade. He is reviewing appraisals, etc. tot and put something together of equal pieces and values. try p g g q . KENAI CITY COUNCIL MEETING MAY 52 2004 PAGE 18 K-2. Attorney -- Attorney Graves reported foreclosure process had begun on the Katmai Hotel. The bank has agreed to pay back lease amounts owed. He received a call from someone interested in the property. K-3. City Clerk -- Clerk Freas read into the record the following telephone poll information: TO: Mayor Williams and Council Members FROM: Linda L. Snow, City Manager DATE: April 22, 2004 SUBJECT: Telephone Poll Administration is requesting Council to approve a purchase order to Alaska Communications System for the purpose of phone system repair and/or replacement at the Kenai Police Department/Public Safety Building. The purchase order is in the amount of $15,008.00. (Resolution No. 2004-16 was approved at the April 21, 2004 council meeting and it was an oversight a corresponding purchase order was not included on the Purchase Orders Exceeding $2,500 list.) The poll was authorized by Linda L. Snow, City Manager; signed by Robin Feltman from the Finance Department; and, attested by Carol L. Freas, City Clerk. The vote was: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. The poll was taken by Carol L. Freas, City Clerk. ITEM L: DISCUSSION L-1. Citizens -- None. L-2. Council KENAI CITY COUNCIL MEETING MAY 512004 PAGE 19 Bookey -- Asked how and when the opening of proposals for the flea market would take place. Frates noted the deadline for receipt of proposals was May 14 and he had received two calls relating to the request. Swarner -- Reported she attended a Cooper Landing Chamber meeting where it was announced the Kenai Peninsula Tourism Marketing Council announced "Packaging the Kenai" Regional Tourism Conference will be held in Cooper Landing, May 21-23, 2004. Moore -- No comments. Porter -- No comments. Gilman -- Suggested a future discussion with the congressional delegation would be to remove the regulations on the Airport Trust Fund through a congressional action. Williams noted he had discussed it briefly and because the city receives lots of benefits in being aligned with the FAA, it may not be good to pursue Gilman's suggestion at this time. Ross -- No comments. EXECUTIVE SESSION - Annual evaluations of City Attorney and City Clerk. MOTION: Council Member Gilman MOVED to go into executive session to evaluate the City Attorney and City Clerk. There were no objections. SO ORDERED, EXECUTIVE SESSION: 12:04 A.M., MAY 6, 2004 BACK TO ORDER: 12:24 A.M. MOTION: Council Member Gilman MOVED to call a special council meeting on May 18, 2004 at 7:00 p.m. for the purpose of conducting evaluations of the City Attorney, City Clerk and City Manager. Council Member Bookey SECONDED the motion. There were no objections. SO ORDERED, ITEM M: ADJOURNMENT MOTION: Council Member Ross MOVED to adjourn. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MAY 5, 2004 PAGE 20 The meeting adjourned at approximately 12:25 a.m., May 6, 2004. Minutes transcribed and prepared by: Carol L. Freas, City Clerk