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HomeMy WebLinkAbout2004-05-19 Council Minutes`> AGENDA KENAI CITY COUNCIL - REGULAR MEETING MAY 1% 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z Zwww.ci.kenal*.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) 1. Representative Kelly Wolf -- Officer John Watson Citation 2. Commendation for Valor -- Presentation by Chief Kopp to Kenai Fire Department Paramedic Engineer John Wichman. 3. Anjani Salonen and Kari Palm -- Senators Stevens 8v Murkowski Internships/Request for Support. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. 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. 2. Ordinance No. 2042-2004 -- Increasing Estimated Revenues and Appropriations by $672 in the General Fund Library Department for a State Grant. 3. Ordinance No. 2043-2004 -- Increasing Estimated Revenues and Appropriations by $30,000 in the Airport Terminal Enterprise Fund for Short Term Parking Lot Renovations. 4. Ordinance No. 2044-2004 -- Amending Title 14 of the Kenai Zoning Code by Adopting KMC 14.20.175 for the Regulation of Adult Businesses 5. Resolution No. 2004-24 -- Awarding a Contract to for the Management and Administration of a Summer Flea Market at the Kenai Multipurpose Facility. 6. Resolution No. 2004-25 -- Awarding a $19,800 Contract to Edwin L. Goggia for Professional Services at Vintage Pointe Manor. 7. Resolution No. 2004-26 -- Transferring $4,000 in the Recreation Department to Purchase a Used Pickup. 8. *Liquor License Transfer -- From Don Jose's, d/b/a Don Jose's Restaurant & Cantina to Carter Enterprises, Inc., d/ b / a Dona Jose's Restaurant & Cantina. 9. *Restaurant Designation Permit Application -- Carter Enterprises, Inc., d/b/a Don Jose's Restaurant & Cantina. 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 & 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. *Work Session Notes of May 3, 2004 2. *Regular Meeting of May 5, 2004. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS 1. Discussion -- Lawton Acres ITEM I: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified f 1 2 . Purchase Orders Exceeding $2,500 3. Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. 4. *Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $125,000 in the Congregate Housing Enterprise Fund to Repaint the Building Exterior. 5. *Ordinance No. 2047-2004 -- Increasing Estimated Revenues and Appropriations by $5,000 in the Council on Aging - Title III Fund for Food and a Computer. 6. Approval -- Removal of Plat Note Restriction for Lots 7, 8, 9 and 10, Block 4, Strawberry Hill Estates, KPB File 2004-097; KPBPC Resolution No. 2004-16. 7. Approval -- Lease Application/Division of Forestry -- Lot 4, FBO Subdivision No. 7. 8. Approval -- Lease Application/David Schilling, d/b/a Schilling Rentals -- Lots 13 & 14, Block 1, Cook Inlet Industrial Air Park. 9. Approval -- Lease Application/Mike Spisak, d/b/a Bellair, Inc. -- Tract A, General Aviation Apron No. 2. 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 MAY 199 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.ken.ai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER 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. IPnT.T. PAT.T. Roll was taken by the City Clerk. Present were: John J. Williams, Mayor James C. Bookey, III Joe Moore Pat Porter Rick Ross A-3, AGENDA APPROVAL Linda Swarner Blaine Gilman Mayor Williams requested the following changes to the agenda: ADD AS: B-4, Richard Warrington -- Traumatic Brain Injury Awareness Month REMOVE: D-5, Resolution No. 2004-24 -- Awarding a contract for the management and administration of a summer flea market at the Kenai Multipurpose Facility. ADD TO: H-1, Lawton Acres Discussion -- N. Carver memorandum regarding appeal process timeline information. ADD TO: I-9, Lease Application/Mike Spisak, d/b/a Belair, Inc. R. Cronkhite memorandum regarding Tract A, General Aviation Apron No. 2. MOTION: Council Member Bookey MOVED to approve the agenda as amended and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA --� KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 2 MOTION: Council Member Bookey MOVED for approval of the consent agenda as presented and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Representative Kelly Wolf -- Officer John Watson Citation Representative Wolf presented Police Chief Kopp with a Memoriam to Officer John Watson from the State of Alaska 23rd Legislature. B-2. Commendation for Valor -- Presentation by Chief Kopp to Kenai Fire Department Paramedic Engineer John Wichman. Chief Kopp presented Kenai Fire Department Paramedic Engineer John Wichman with a Commendation for Valor and noted, Wichman put his life directly in harm's way when he approached then fallen Officer Watson and ascertained his injuries. Kopp added, thanks often go unspoken with the work the Police and Fire Departments do and it was important to publicly thank Wichman and the professionalism of the Kenai Fire Department. B-3. Anjani Salonen and Kari Palm -- Senators Stevens 8v Murkowski Internships/Request for Support. Salonen and Palm explained they had been selected to serve as interns for Senators Murkowski and Stevens during the summer and indicated they had to raise enough money to cover expenses for transportation, food, scheduled activities, etc. while in Washington, DC. They requested a donation from council. MOTION: Council Member Bookey MOVED for council to make a contribution of $500 from the General mind Contingency and Council Member Porter SECONDED the motion. Council Members Swarner and Moore reported they would not support the donation because funds were not included in the budget for this purpose and because other groups had made requests for donations and were turned down for the same reasons. VOTE: Williams I Yes -Bookey Yes I Swarner I No KENAI CITY COUNCIL MEETING MAY 1 % 2004 PAGE 3 Moore No Porter Yes Gilman No Ross Yes MOTION PASSED. Mayor Williams requested the interns give a report of their experience upon their return. B-4. Richard Warrington -- Traumatic Brain Injury Awareness Month Warrington noted the Eighth Annual Traumatic Brain Injury Awareness walk would be held on June 5 and funds received through the walk would be used to purchase helmets (which are then donated) and supplies for informational material. Warrington provided copies of an executive proclamation from Governor Murkowski announcing June as Traumatic Brain Injury Awareness Month and registration information for the Awareness walk. Warrington urged everyone's participation in the walk. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS Assembly Member Betty Glick reviewed actions taken at the May 18, 2004 Assembly meeting, noting in particular the Assembly unanimously adopted the City of Kenai Comprehensive Plan; held the first public hearing on their ordinance to raise the sales tax cap, noting the majority of those offering testimony opposed the increase; and, the first public hearing was held to establish a Nikiski Law Enforcement Service Area which received generally favorable comments. ITEM D. PUBLIC HEARINGS D-1, 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. MOTION: Council Member Bookey MOVED for the adoption of Ordinance No. 2041-2004 and Council Member Porter SECONDED the motion. There were no public comments. Council Member Bookey noted severe covenants were attached to the Section 36 residential lots. He stated his concern the applicant may be able to change the direction of his plan for a commercial use of the property and make it residential and not have the same strict covenants. Brian Robert Lowe -- Lowe was noted as the person proposing to purchase the property. Bookey asked him if he was fairly positive he will move ahead in the � KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 4 commercial project and Lowe answered yes. He stated his intended use of the property would be for a restaurant and probably a hotel. Discussion followed in which it was noted the property would go to bid for purchase; it is currently zoned residential, but has no covenants attached; to use the property for a commercial enterprise will require a conditional use permit, and, most of the properties within the 300 feet who would receive notification are owned by the city. VOTE: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. D-2, Ordinance No. 2042-2004 -- Increasing Estimated Revenues and Appropriations by $672 in the General Fund Library Department for a State Grant. MOTION: Council Member Moore MOVED for the adoption of Ordinance No. 2042-2004 and Council Member Swarner SECONDED the motion. There were no public or council comments. VOTE: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. D-3, Ordinance No. 2043-2004 -- Increasing Estimated Revenues and Appropriations by $30,000 in the Airport Terminal Enterprise Fund for Short Term Parking Lot Renovations. MOTION: Council Member Porter MOVED for approval of Ordinance No. 2043-2004 and Council Member Moore SECONDED the motion. KENAI CITY COUNCIL MEETING MAY 192 2004 PAGE 5 Tim Navarre -- State he believed the renovations to the parking area were a good idea, but felt an additional exit be placed onto Airport Way and suggested the drive lanes be made wider instead of a wider walkway. Airport Manager Cronkhite stated the initial idea was to make the first row of short- term parking have no charge and after discussing the issue more, it was suggested to allow the first two rows of short-term parking be no fee. She noted, they were observing and keeping counts of current short-term parking use. VOTE: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. j D-4. Ordinance No. 2044-2004 -- Amending Title 14 of the Kenai Zoning Code by Adopting KMC 14.20.175 for the Regulation of Adult Businesses MOTION: Council Member Swarner MOVED to adopt Ordinance No. 2044-2004 and Council Member Porter SECONDED the motion. There were no public comments. Council Member Swarner noted the development of the ordinance began in October and had been through reviews and public hearing processes at the Planning 8. Zoning Commission and now was before council for consideration. VOTE: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. D-5. Resolution No. 2004-24 -- Awarding a Contract to for the Management and Administration of a Summer Flea Market at the Kenai Multipurpose Facility. KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 6 Removed from the agenda. City Manager Snow explained no proposals had been received and Administration was revisiting the issue. D-6. Resolution No. 2004-25 -- Awarding a $19,800 Contract to Edwin L. Goggia for Professional Services at Vintage Pointe Manor. MOTION: Council Member Swarner MOVED to approve Resolution No. 2004-25 and requested UNANIMOUS CONSENT. Council Member Porter SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. D-?. Resolution No. 2004-26 -- Transferring $4,000 in the Recreation Department to Purchase a Used Pickup. MOTION: Council Member Swarner MOVED for approval of Resolution No. 2004-26 and requested UNANIMOUS CONSENT. Council Member Bookey SECONDED the motion. There were no public comments. Finance Director Semmens explained the cost of renting vehicles had increased substantially since last year and money would be saved to purchase a used truck for $4,000 and rent the second truck. Snow noted, a search had been made to find a second used truck to purchase, but one had not yet been found. If a second truck is found, a resolution will be brought forward for a purchase. Snow also noted, the shop foreman inspected the truck and believed it could serve for three to five years. VOTE: There were no objections. SO ORDERED. D-8, Liquor License Transfer -- From Don Jose's, d/b/a Don Jose's Restaurant Cantina to Carter Enterprises, Inc., d/b/a Dona Jose's Restaurant Cantina. Approved by consent agenda. � KENAI CITY COUNCIL MEETING MAY 192 2004 PAGE 7 D-9, Restaurant Designation Permit Application -- Carter Enterprises, Inc., d/ b / a Don Jose's Restaurant & Cantina. Approved by consent agenda. BREAK TAKEN: 8:06 P.M. BACK TO ORDER: 8:25 P.M. ITEM E: COMMISSION / COMMITTEE REPORTS E-1. Council on Aging -- Swarner reported the meeting summary was included in the packet and noted there was no quorum for the last scheduled meeting E-2. Airport Commission -- No report. E-3. Harbor Commission -- Bookey reported a special meeting would be held on June 7 due to the Commission's lack of quorum for the May 10 meeting. E-4. Library Commission -- No report. E-5. Parks & Recreation Commission -- Council Member Ross referred to information he included in the packet as well as the May 6, 2004 meeting summary and reviewed actions taken by the Commission, including development of a proposal for placement of nine -hole Disc Golf equipment on the back portion of the East Kenai Trail system; a request by the Commission for administration to discuss a cooperative development plan with KCHS for further development and utilization of the trail system in conjunction with trail running events; and, discussion of the request for proposals for a flea market at the multipurpose facility. Additionally, he reported the Commission requested a special meeting be held in June for them to discuss these issues further. Snow reported three requests for flea market proposal packets were picked up, two from community clubs and one from a private entity. No proposals were submitted. She noted, administration had discussed concerns expressed and suggested reducing the number of weekends to one or two a month. A new draft request for proposals has been submitted to her for review and she requested suggestions from council for making the suggested use more attractive. A brief discussion followed in which it was suggested less dates be required, but to move ahead as quickly as possible. Snow reported, they hoped to re -advertise the request for proposals and have them out as soon as possible. E-6. Planning & Zoning Commission -- Ross reported on the actions taken 1 at the May 12 Commission meeting, including a public hearing held on the All -Hazard -� KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 8 Mitigation Plan which was recommended for passage by council. Other items were forwarded to council for consideration and were included on this agenda as items 6, 7, 7and 9. E-7, Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Swarner reported the meeting summary was included in the packet and Volunteer Planting Day was scheduled for May 29. A letter of resignation from the committee was received from Colleen Canady and also included in the packet. E-7b. Kenai Convention & Visitors Bureau Board -- Michelle Glass, KVCB Director reported on activities taking place at the Center, including exploration of combining efforts by the KVCB and the Kenai Chamber; Art Show activities; their summer educational and interpretative programs; 2005 art show theme chosen to be "Alaska Native Arts Now"; information from her to include in the June 2 council packet relating to the joint work session scheduled for June 15 between the KVCB Board and council; their intention to apply for a "grant-in-aid" to fund the hiring of a consultant relating to future expansion of the museum; summer hours; and, scenic by -way status. Bookey reported he received a resolution from the Economic Development District supporting the scenic by -way proposal and requested direction from council relating to whether to support the resolution or not. After a brief discussion and explanation of requirements of municipal governments in relation to the scenic by -way designation, council's consensus to Bookey was to state to the EDD the city has no objection to supporting the concept and idea of the scenic by -way designation. E-7c. Alaska Municipal League Report -- Swarner reported the AML Legislative Committee and Alaska Conference of Mayors summer meetings will be held in Kenai August 19, 20 and 21 at the Challenger Center. A reception will be hosted by the city and AML at the KVCB. E-7d, Kenai Chamber of Commerce -- Chamber President Tim Navarre reported on activities taking place at the Chamber, including preparations for the Fourth of July Parade and festivities; the on -going efforts for donations to the John Watson Memorial Fund; on -going discussions with KCVB to combine efforts with the Chamber; and, advertising the recently vacated executive director position. E-7e. Arctic Winter Games -- Council Member Moore reported on activities taking place, including the Committee's non-support of adding Council Member Bookey as an additional alternate for the city. E-7f. Stranded Gas Committee -- Ross reported on activities taking place with the Committee including: -- KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 9 • He would be attending the next meeting in Anchorage and will submit the city's economic impact information. • The Committee continues to work on their draft resolution giving guidance to the state negotiators who are working with the pipeline proposers on the Payment in Lieu of Taxes (PILT) issue. He added, currently there is one proposal submitted by BP and two other Canadian companies who have indicated they will be submitting proposals and have agreed to front -forward funds on the preliminary studies. • The Port Authority has withdrawn their proposal under the Stranded Gas Act and will be working their own issues with the pipeline as to intersect points, etc. • At their Friday's meeting, they will receive a major presentation on access issues, trading hub designations, etc. which could have a direct impact on gas distribution inside the state for industrial purposes. • The Alaska Legislatures has extended the authority of the Alaska Natural Gas Authority (ANGA) to allow them to study a spur route from Fairbanks down through either the railroad or transmission corridor. Casey Reynolds reported a reception for the Pebble Mine group will be held at the KVCB on June 14 with approximately 200 people being invited. Expenses for the reception will be shared between the City of Kenai, Kenai Peninsula Borough and Kenai Chamber. ITEM F: MINUTES F-1. Work Session Notes of May 3, 2004 -- Approved by consent agenda. F-2. Regular Meeting of May 5, 2004 -- Approved by consent agenda. ITEM G: CORRESPONDENCE -- None. ITEM H. OLD BUSINESS H-1. Discussion -- Lawton Acres A lengthy discussion took place in which comments included: • Reference was made to the memorandum regarding the appeal process timeline (added at the beginning of the meeting) and it was noted if all appeal processes are taken, it could take from eight to 12 months to have a final conclusion to the issue. • Reference was made to the memorandum included in the packet which noted the city will need a preliminary plat to include with their rezone application. It was also noted, administration recommended, if council decides to proceed with a - -� KENAI CITY COUNCIL MEETING � MAY 192 2004 PAGE 10 preliminary plat, any rezone should be contingent upon the plat being finalized and recorded. • Department of Transportation indicated they would have no problem with access to lots on Lawton Acres from the highway. The permit would include a drawing of where the driveways would be placed. The standard for driveways is at least 260' apart. MOTION: Council Member Porter MOVED to proceed with the rezoning/replatting of Lawton Acres based on the preliminary plat and Council Member Moore SECONDED the motion. Discussion continued relating to the steps in the process, i.e. submitting a preliminary plat to the Borough Planning Commission, an application to rezone to the City Planning 8. Zoning Commission, etc. It was suggested the preliminary plat (with actual dimensions, lot lines, driveways, etc.) be brought back for council review prior to sending it to the Borough. VOTE: Williams Yes Bookey No Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED, BREAK TAKEN: 9 :47 P.M. BACK TO ORDER: 10:06 P.M. Due to the lateness of the hour, Mayor Williams requested to move Items I-8 and I-9 to be heard after Item I-2. Council had no objections. ITEM I: NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: Council Member Bookey MOVED to pay the bill and Council Member Moore SECONDED the motion. There were no objections. SO ORDERED, I-2. Purchase Orders Exceeding $2,500 -- KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 11 MOTION: Council Member Bookey MOVED to approve the purchase orders exceeding $2,500 and Council Member Moore SECONDED the motion. A brief discussion took place relating to the adding funds to a current purchase order to Geonorth. Public Works Manager Kornelis explained the increase was related to software compatibility problems. VOTE: There were no objections. SO ORDERED. I-81 Approval -- Lease Application/ David Schilling, d/ b / a Schilling Rentals -- Lots 13 8v 14, Block 1, Cook Inlet Industrial Air Park. Snow referred to a memorandum included in the packet relating to the lease application. She also noted a letter from the Alaska Court System about development of the court area and its planned expansion of the facility. The expansion will not impact the lots for which this lease application has been submitted. Snow added, if council approves the lease application, administration will proceed with ordering the required appraisal. Snow also stated the Court System's letter indicated, when they do expand to the front of the property, it will remove some parking spaces and they will want to talk with the city about future parking areas for them at that time. Ross also reported the issue was before the Planning 8. Zoning Commission who approved the application with a notation, based upon whatever development occurs there, it may necessitate a replat and he believed Schilling was aware of the issues and alternatives if he does not want to replat. MOTION: Council Member Gilman MOVED to proceed with the lease application and Council Member Porter SECONDED the motion. David Schilling, Applicant -- Stated he will be able to place his first proposed building on the lot in a way to allow the second lot to be used for parking until he's ready to develop that lot. Schilling added, he wants to begin construction next year and the following year develop the second lot. Williams suggested Schilling contact the Court System and discuss the matter further. VOTE: i KENAI CITY COUNCIL MEETING MAY 1 % 2004 PAGE 12 There were no objections. SO ORDERED, I-9. Approval -- Lease Application/ Mike Spisak, d/ b/ a Bellair, Inc. -- Tract A, General Aviation Apron No. 2. City Manager Snow referenced the memorandum and lease application with attachments that was included in the packet as well a memorandum from Airport Manager Cronkhite which was added to the agenda at the beginning of the meeting. Snow reported the Airport Commission held a special meeting on May 9 to review the application and the motion to recommend council approval of the lease failed; the application then came to council and council recommended to go forward with the lease application for Tract A; and, the Planning 8. Zoning Commission met on May 12 and reviewed the application and determined the proposed use of the property complied with the city zoning requirements but not the Airport Master Plan and subsequently voted to recommend the lease be denied by council. Snow continued, in the interim, comments were received from FAA and conversations were held between Airport Manager Cronkhite and Mr. Spisak. She noted, the FAA indicated necessary changes would be needed for Tract A (included in the memorandum from Cronkhite), involving changes to the Building Restrict Line (BRL) and the Airport Layout Plan, as well as concerns with air space. Cronkhite estimated costs of $30,000 (Airport funds) to resolve the issues, i.e. for consultant efforts to accomplish the items listed. FAA indicated a best -case time frame for resolution would be September and more realistic time would be six months. She added, from conversations with Spisak, that timeline would not meet his deadlines. Snow explained, Spisak had actually submitted two lease applications, i.e. Tract A and Lots 5 8. 6, Block 1, FBO Subdivision. Spisak indicated, if the development of Tract A would not work out, though this was his preference, he would consider to move forward on Lots 5 & 6. Because Lots 5 8. 6 need fill and lease lot improvements, administration felt the $30,000 estimated for making changes to the BRL, etc. on Tract A could be used instead toward improvements for Lots 5 8s 6. If council approved, the work could begin in the very near future. A lengthy discussion followed with comments including: The lease application for Tract A was reviewed by the Planning & Zoning Commission and they unanimously voted to not recommend approval. The Commission heard extensive comments on the drainage issues, the property size and development plan, the BRL, Master Plan and Airport Plan issues. It was noted, even if the issues could be surmounted, the project would be delayed well into the future. • The front half of Tract A is currently identified in the Airport Master Plan as "for lease." 1 Mike Spisak, Bellair, Inc. -- Spisak noted the following: ,\ KENAI CITY COUNCIL MEETING y MAY 19, 2004 PAGE 13 • He prefers Tract A because of the location. • He's in the process of starting a scheduled air carrier business in Kenai and wants to use the property for their maintenance business. • He doesn't believe moving the BRL would be a problem. • On the lease application drawing, they indicated development on the west side of Tract A as their initial development. • The quicker they build their structure, the quicker their business will open in Kenai. • Expansion on the Willow Street side of Tract A is not planned at this time. • Indicated his preference between developing Tract A, including having to wait for the approvals, changes of the BRL, etc. or developing Lots 5 8. 6 after it being brought to grade, Lots 5 8s 6. Airport Manager Cronkhite noted the following: • FAA reviews the appraisal once it is submitted and then approves or disapproves the appraisal. • FAA indicated to her, because the Airport Master Plan and the Layout Plan show Tract A to be used for future ramp development, they would not look kindly at later the city requesting a grant to buy the property back because of ramp expansion needs. • FAA also considers what is the highest and best use of the property. • If the Master and Lay Out Plans are updated and the designation of the property being set aside for ramp expansion removed, there is no guarantee FAA would agree with that planning process. • Changing the BRL requires review and process by FAA as well as the review of the adj acent property. • Because of the time it takes to acquire an appraisal and then FAA's review, she believed three months time in which to clear the noted issues would be unrealistic. • With a large piece of street -front property with no development plan, a large portion of ramp -adjacent property designated for vehicle parking, it would be highly likely it would not be designated as the highest and best use for the property. Ross stated he concurred with Cronkhite and believed if the reviews went forward, etc., he believed it would take an extended period to proceed through the review processes and a there was a very good probability of denial by FAA. Cronkhite was asked how long it would take to fill Lots 5 & 6. She explained, the city could strip the rest of the overburden with its equipment, etc., but the city does not own the material required to bring the lots to the grade Spisak discussed and, negotiations would be required between the city's engineer and Spisak as to what -1 appropriate grade is because of the drainage from the ramp and Willow Street. KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 14 Cronkhite added, it was administration's thought, during the six-month time it would take to get the appraisal completed, reviewed, and approved by FAA, the work on the property could begin and gravel added, however a transfer would be required to purchase gravel (which was not part of her original proposal) . Cronkhite also noted: • The $30,000 would not bring the properties to grade. • An appraisal would be done after the dirt work is completed and to expedite the timeline, administration discussed receiving approval from council to begin work on the lot with city equipment and concurrently doing the paperwork, negotiations, etc. to hire gravel to be brought in to continue the process; and, at the same time call a special meeting of the Airport Commission to approve the lease on Lots 5 & 6; have Planning 8v Zoning Commission review and approve the lease application; and, order an appraisal for Lots 5 8. 6. • Doing the dirt work on the property ahead of approval of the lease application by the council would not hurt the property but would add value. • The city's improving lots in order to lease them has not been done in the past. They have always been leased "as is." • The city received a previous lease application for Lots 5 & 6, however that applicant felt another lot would be less costly to develop and the lease application for Lots 5 8. 6 was withdrawn. Spisak noted he would consider "to grade" as level with the ramp. Bookey stated $30,000 would not bring the lots to the condition Spisak was wanting and Spisak would have to add to the $30,000 to bring it to grade. Spisak stated he had not seen where the $30,000 was the dollar amount discussed. Bookey stated he believed an estimated cost could be +$100,000 and was not wanting the city to spend that amount. Bookey stated he was concerned the council and Spisak were not discussing the same level of development, i.e. the city's suggesting a patch for Spisak to get his planes in and off the ramp and Spisak was suggesting the city bring the lots up to almost "build -ready" condition. Discussion followed related to drainage concerns on the property. Spisak stated he didn't believe making modifications would be too problematic and offered his modification concept. Public Works Manager La Shot explained the drainage concerns were much more complicated, i.e. it's a large drainage basin for the ramp and taxiways. He added, he would consider Lots 5 & 6 as already improved in comparison to Tract A as Tract A would require materials removed prior to development. La Shot also noted, to what grade Lots 5 & 6 will need to be brought and impacts to the adjacent lots as far as drainage, etc. will need to be determined. Gilman asked if the city was restricted to use only earnings from the Airport Trust Fund because of FAA regulations or city ordinance. Attorney Graves explained, the city ordinance restricts use of the corpus of the Trust Fund. Administration has KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 15 requested information from FAA, i.e. if the city removes the restriction, would it comply with FAA guidelines. To date, no response has been received from FAA. Gilman stated his desire to receive an opinion as soon as possible because the funds could be used to develop airport properties and make the airport more marketable. Swarner noted, because the city would not improve the lots for the previous applicant, she would not agree to doing so for this applicant. Cronkhite noted there was a large hangar difference between the two proposed uses, i.e. one for a personal use helicopter han p g and Spisak' s proposed use is for something the city has marketed for and reduced taxes to attract. Finance Director Semmens noted Spisak, if the lease is approved, etc., would be paying six percent interest on the lease value which would be more than what the Airport Fund is acquiring in interest rates. Porter stated her desire to accommodate Spisak in order for the business to be situated in Kenai, which would bring employees, taxes, etc. Ross stated the city has enhanced property before, i.e. water/ sewer system on Millennium Square property, paving Marathon Road, etc. Gilman stated he supported the city's using the funds to improve the lots. Ross stated he believed it would be an investment in the marketability of the property. Cronkhite noted the costs first envisioned to put toward the improvements on the property was $30,000 and that amount had escalated to $100,000 of airport funds. She noted, at this time she did not know what "to grade" would entail or what the total cost would be to bring it to ramp grade. It was also noted, to do the improvements in a timely manner, it would require contracting out the work, which would also require bids and specifications and a timeframe of up to three months, plus a higher cost as a capital project. MOTION: Council Member Ross MOVED to approve the lease application for Tract A to Mike Spisak, Bellair, Inc. and Council Member Gilman SECONDED the motion. Discussion on the motion followed and comments included: • A suggestion to table the motion instead of voting it down in order to allow time to prepare documents for improvements to Lots 5 & 6 and to allow time to receive an opinion from FAA as to whether changes to Tract A as discussed earlier could be made. • To prepare bid and specification documents, bid the job to improve Lots 5 & 61 if council authorized $100,000 to do the job during this meeting would take approximately two months. • Spisak suggested a deferment by offered by council to get the job done, } however it was noted, FAA could be asked if it would be allowable but it was ver y doubtful they would approve the request. KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 16 Discussion of the advantages to tabling or voting down the motion to approve the lease application for Tract A continued. It was noted, from the discussion, Spisak stated leasing of Tract A would not work in his time frame. Spisak was asked again if he believed his decision on that point would change and he answered, only if Lots 5 8s 6 were not improved. MOTION TO TABLE: Council Member Gilman MOVED to table Item I-9 and Council Member Moore SECONDED the motion. VOTE: Williams Yes Bookey Yes Swarner No Moore Yes Porter Yes Gilman Yes Ross No MOTION PASSED, MOTION: Council Member Bookey MOVED to direct administration to proceed with hiring the engineer, acquiring cost estimates, doing the preliminary design and putting together a time table all to be before the council at the June 2, 2004 council meeting. Council Member Moore SECONDED the motion. MOTION TO AMEND: Council Member Bookey MOVED to amend the motion to include council's approval to authorize any necessary special commission meetings relating to this matter. Council Member Moore SECONDED the motion. There were no objections. SO ORDERED. VOTE ON MAIN AMENDED MOTION: There were no objections. SO ORDERED. BREAK TAKEN: 11:49 P.M. BACK TO ORDER: 11:55 P.M. Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. MOTION: -_� KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 17 Council Member Bookey MOVED to introduce Ordinance No. 2045-2004 and Council Member Swarner SECONDED the motion. MOTION TO AMEND: Council Member Gilman MOVED to amend Ordinance No. 2045-2004 setting the salary of the City Clerk at $61,454, the City Attorney's at $98,196 and the City Manager's at $98,440 and to be effective July 1, 2004 and that the required appropriations be included in the FY 2005 budget ordinance when it is considered for action. Council Member Porter SECONDED the motion. VOTE ON AMENDMENT: Williams Yes Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED UNANIMOUSLY. Bookey suggested adding a police officer position to the budget. Snow explained, an additional police officer position was requested during the preparation of the budget and was included in administration's first several drafts. It was removed from the budget document forwarded to council, but it was felt council should be advised administration felt the position was justified. Chief Kopp indicated his justification for the position was based on officer safety, public safety, statutory and criminal requirements, doubling of case loads due to increased population growth, geographic diversity, new paperwork requirements, etc. A lengthy discussion followed in which costs for an additional officer were reviewed, i.e. approximately $80,000 including salary and benefits, no additional vehicle, etc. MOTION TO AMEND: Council Member Bookey MOVED to amend the General Fund budget by adding $80,000 to fund another police officer and Council Member Porter SECONDED the motion. Williams stated he believed the request was untimely and would not support it. Ross stated he agreed with Bookey and Porter and stated he would support the request. VOTE: KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 18 Williams No Booke Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED. Discussion followed related to personnel costs for Sunday openings at the library. Finance Director Semmens stated calculations revealed a 24-hour a week person would not be necessary through scheduling changes and with the 290 temporary hours already included in the budget. He stated costs would be $13,443. MOTION TO AMEND: Council Member Gilman MOVED to amend the library budget to include $13,443 to open the library on Sunday and added, he wanted the money earmarked to that purpose and noted he had discussed this with City Attorney Graves who confirmed that would be allowed. Council Member Porter SECONDED the motion. Williams stated he would not support the motion as he believed administration should be allowed the latitude of deciding the best benefit of hours, funding, etc. Gilman stated he had been listening to constituents who, with their children, would like the library open on Sundays. Porter stated she believed the government is to serve the public and not the employees and the council should accommodate the general public and the employees. VOTE: Williams No Booke Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes MOTION PASSED. MOTION TO AMEND: Council Member Ross MOVED to add $65,000 to the Public Works budget for dust control and Council Member Moore SECONDED the motion. Semmens noted $65,000 was included on the list of items discussed during budget work sessions and was already added into the budget. WITHDRAWAL OF MOTION: KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 19 Ross withdrew his motion and Moore withdrew his second. Tim Navarre, President, Kenai Chamber of Commerce -- Navarre stated, after the last council meeting, he discussed with members of council including funding in the budget for assistance to the Chamber. Because he felt the additional police officer was justified, he did not want to go forward with the request for Chamber funding. He added, he would prefer the council hold the line on other costs and provide services. Navarre stated the Chamber would continue to locate funding sources and if they need help, they will come back and make a request to council. Gilman offered a motion to add $30,000 to the budget for the Kenai Chamber of Commerce. However, there was no second and the motion died. MOTION TO AMEND: Council Member Porter MOVED to amend the budget in the amount of $25,000 to allow the Recreation Center to be open on Sunday and to reinstate that program up to the level it used to be. Council Member Gilman SECONDED the motion. Porter stated, in her discussions with City Manager Snow and the Boys 8. Girls Club Director, the amount of $30,000 was discussed, however she felt the amount could be less. Snow stated, the $30,000 was a rounded -off amount to cover 52 weeks ($58 1 /week). She added, historically Sunday openings at the Recreation Center had been seasonal, i.e. closed during the summer. Frates confirmed the Teen Center was always open on Sundays, however the downstairs was closed for the summer months (open September through May) . WITHDRAWAL OF MOTION: Porter withdrew her motion and Gilman the second. Porter stated she may bring the motion forward at the June 2 meeting, however. I-4. Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $125,000 in the Congregate Housing Enterprise Fund to Repaint the Building Exterior. Introduced by consent agenda. I-s. Ordinance No. 2047-2004 -- Increasing Estimated Revenues and Appropriations by $5,000 in the Council on Aging - Title III Fund for Food and a Computer. Approved by consent agenda. KENAI CITY COUNCIL MEETING MAY 1 % 2004 PAGE 20 I-6, Approval -- Removal of Plat Note Restriction for Lots 7, 8, 9 and 10, Block 4, Strawberry Hill Estates, KPB File 2004-097; KPBPC Resolution No. 2004-16. MOTION: Council Member Ross MOVED for approval of the removal of the plat note restriction for Lots 7, 8, 9 and 10, Block 4, Strawberry Hill Estates and Council Member Moore SECONDED the motion. It was explained council could veto the request for removal of plat note restrictions or if they take no action, that would approve the removal. Ross reported the issue was reviewed by the Planning & Zoning Commission who unanimously approved the removal of the plat restrictions. He added, the Department of Transportation and Borough Planning Commission also approved the removal. Ross reported, it is a driveway which has existed since 1984. VOTE: Council had no objections. SO ORDERED, I-7, Approval -- Lease Application/Division of Forestry -- Lot 4, FBO Subdivision No. 7. MOTION: Council Member Bookey MOVED for approval of the lease application to the Division of Forestry for Lot 4, FBO Subdivision No. 7 and Council Member Moore SECONDED the motion. Ross reported the lease application was reviewed by the Planning & Zoning Commission who unanimously approved it. VOTE: There were no objections. SO ORDERED. ITEM J: REPORT OF THE MAYOR -- No report. ITEM K. ADMINISTRATION REPORTS K-1. City Manager -- City Manager Snow noted the following: • Referred to a letter included in the packet requesting the purchase of the old concrete piling located on the corner of Spur View Road and Frontage Road. She KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 21 noted, the Code allows the city manager to sell items when competitive bidding is not required with notice to and approval of the council (KMC 7.15.070). In checking with other city departments, she learned the city has no use for the piling. If council had no objections, she would set a nominal fee and sell it. Bookey stated he had no objections to making the sale, but had experience in removing other pilings that had been on the property, and was aware the piling was set deep into the ground and it would require excavation to remove it. He suggested whoever removes it be licensed, bonded, insured, etc. and the hole left be filled in as well. Council voiced no objections to the sale. • Referred to Semmens report and relating to insurance pools. Semmens discussed quotes expected from two insurance pools for property and general liability insurance. Because AML/JIA has historically quoted higher, the city has used APEI. Both provide similar insurance, but AML/JIA functions more like a sharing arrangements than the other. He asked if council would have any objections to switching to AML/JIA if the price is less. Semmens explained the differences between the two pools and past experiences. No objections were stated to consider switching insurance pools if the price is amenable. • Referred to the memorandum included in the packet from Public Works Manager Kornelis relating to the boating facility exit road. Snow reported the requested reappropriation of funds had been approved by the Legislature, but had not been signed by the Governor. She noted, one of the components of the boating facility project is a possible land trade with the Conservation Fund. Snow requested council's direction whether to proceed as listed in the memorandum. It was suggested the issue be discussed at a future meeting after the Harbor Commission reviews the issue. Swarner referred to the Airport Manager's report regarding Federal Express and stated concerns with the issue. Cronkhite explained, she had learned Federal Express has some concerns with the Ron's Rent -All property and she was continuing discussions both parties' representatives. She added, she had contacted the engineer doing the design work on the access to the property and indicated it was not a high priority at this time; she contacted the FAA with the information; and, awaiting notification the Federal Express issue has been resolved will not impact the access to the other two lots included in the access issue because the development on those lots is not planned until next year. K-2. Attorney -- Attorney Graves reported the Alaska curfew law had been resolved by the Alaska Supreme Court and he and Chief Kopp were reviewing the city's curfew ordinance to bring it to closer compliance with the Alaska law. The amendment ordinance will be brought forward in the near future. K-3. City Clerk -- City Clerk Freas noted: • A Special Parks & Recreation Commission meeting had been scheduled for Thursday, June 3 at 7 p.m. in the Council Chambers. KENAI CITY COUNCIL MEETING MAY 19, 2004 PAGE 22 • A Special Harbor Commission meeting had been scheduled for Monday, June 7, 2004 in the Council Chambers. • Requested a council member to be assist in planning the Milepost advertisement. Council Member Swarner volunteered. ITEM L: DISCUSSION L-10 . Citizens Bob Peters, Old Town -- Stated his appreciation of the council's efforts. L-2. Council Bookey -- Stated he felt it an honor and privilege to have gone to Washington, DC to represent the City of Kenai in participating in the Police Week and Police Memorial activities. He also thanked Mayor Williams for his efforts in introducing him to meetings with congressional delegation representatives, etc. Swarner -- Noted the following: • Noticed a sign for properties to rent instead of lease on Trading Bay which have a city phone number for a contact on it. • Noted what appears to be junk deposited on the Professional Building lot. • Haller junk yard is looking good. • Suggested the old Swanson building at Spruce and Spur could be condemned and razed. • A car without tires is situated in front of the Salvation Army store. • Asked for a report on the Sean Anderson property development and Snow noted a letter had been sent by certified and regular mail to Anderson. The return receipt had not been received to date. Swarner requested council be emailed with the date the letter had been sent. • Noted she received no responses from an email she sent to other council members regarding the placement of a memorial tree in Memorial Park for Officer Watson and requested administration locate funds for this purpose. • The Three Bears grand opening is scheduled for June 12. • The Kenai Watershed Forum has scheduled the Kenai River Festival for June 12 and 13. • Hunger Awareness Day is June 3 and elected officials are encouraged to serve soup at the Food Bank. Williams noted Chief Kopp was coordinating with the Watson family in regard to placement of a memorial in the park which was agreed to as part of a package effort by the community, Kenai Chamber, etc. and if the council decides a tree and plaque KENAI CITY COUNCIL MEETING MAY 192 2004 PAGE 23 should be a part of the package, it may be able to be worked in. Swarner stated she would like a tree planted as well. Moore -- Stated he was surprised by changes made to the budget during the meeting and reminded those present of the Air Fair scheduled for Saturday, May 22. Porter -- • Requested council discuss streamlining the commission/committee report portion of the agenda. • Noted a lot of beetle -killed trees on the right-hand side of Rogers Road. Gilman -- No comments. Ross -- Stated he appreciated Williams' and Bookey's efforts in Washington, DC. Williams -- Reported he and Bookey met with representatives of the congressional delegation while in Washington, D.C. They discussed the bluff erosion/restoration project and collectively concluded the project should follow Senator Murkowski's suggestion to designate the project as a Corps of Engineer project. If a change were made in the project direction, it could slow the process or cause additional funding concerns. He added, as a Corps project, the city would still have to offer in -kind contributions amounting to approximately $4 million. However, efforts would be made to include past city expenses, value of lost private bluff property, value of bluff property to be purchased by the city, etc. in the city's in -kind contributions. Consideration could be made to bond for the remaining in -kind requirements. Williams added, he felt the project was proceeding. EXECUTIVE SESSION -- None scheduled. ITEM M: ADJOURNMENT The meeting adjourned at approximately 1:19 a.m., May 20, 2004. Minutes transcribed and prepared by: Carol L. Freas, City Clerk AM.OVW fly cwtxx