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HomeMy WebLinkAbout2004-06-02 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 2, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : www. ci. kenai. ak. u s ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Cliff Evert -- Use of Airport Lands/Request for Assistance ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. a. Substitute Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. 2. Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $125,000 in the Congregate Housing Enterprise Fund to Repaint the Building Exterior. a. Substitute Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $148,500 in the Congregate Housing Enterprise Fund to Repair the Building's Exterior. 3. 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. 4. Resolution No. 2004-27 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. } 5. Resolution No. 2004-28 -- Awarding the Bid to Hansen Painting Inc. for Vintage Pointe Manor and Senior Center Exterior Stripping and Painting - 2004 for the Total Amount of $165,000. 6. Resolution No. 2004-29 -- Transferring $10,590 in the Airport Land System Special Revenue Fund for Engineering and Design for Airport Land Development. ITEM E. COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention 8. Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce e. Arctic Winter Games f. Stranded Gas Committee I ITEM F: MINiJTES 1. *Special Meeting of May 18, 2004. 2. *Regular Meeting of May 19, 2004. 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. 2048-2004 -- Amending KMC 7.10.010 and 7.10.020 by Increasing the Sales Tax Rate from Three Percent (3%) to Four Percent (4%). 4. *Ordinance No. 2049-2004 -- Increasing Estimated Revenues and Appropriations by $12,000 for a Federal Grant for Wetlands Protection. 5. Approval -- Lease Application/Mike Spisak, d/b/a Bellair, Inc. -- Lots 5 and 6, Block 1, F.B.O. Subdivision. 6. Discussion -- Streamlining of Commission/Committee Reports 7. Discussion -- Municipal Advisory Group -- Stranded Gas Resolution No. 2004-01. ITEM J: REPORT OF THE MAYOR ITEM K: 1. 2. 3. ADMINISTRATION REPORTS City Manager Attorney City Clerk DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -- Recreation Center Litigation and City Manager Contract. ITEM M• ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING JUNE 2, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www. ci . kenai . ak. u s 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. ROLL CALL Roll was taken by the City Clerk. James C. Bookey, III, Vice Mayor Linda Swarner Joe Moore Pat Porter Blaine Gilman Rick Ross John J. Williams, Mayor A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-2, Terrence Carlson, Boy Scout Troop 151 -- Request for financial assistance for his Eagle Scout Project. ADD TO. I-5, Lease Application, Mike Spisak, d/b/a Bellair, Inc. -- Report and cost estimate, Lots 5 8s 6, Block 1, FBO Subdivision. MOTION: Council Member Bookey MOVED for approval of the agenda as amended and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4, CONSENT AGENDA MOTION: Council Member Bookey MOVED to approve the consent agenda as presented and jCouncil Member Swarner SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING } JUNE 2, 2004 PAGE 2 ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Cliff Evert -- Use of Airport Lands/Request for Assistance Cliff Evert, 2106 Airport Road, Fairbanks -- Evert explained, he read with interest, the newspaper article relating to the efforts of the city to make airport land available for another prospective lessee. He noted, his company has been a lessee of the city and have found the area they lease no longer sufficient to support their operations. He also noted the amount of employees who live, pay taxes, rent, etc. in city. Airport Manager Cronkhite further explained Evert had filed a lease application for un- subdivided airport land on which to place a hangar and would like the city to help in their efforts. She added, the lease application was being processed through the commissions, etc. Rob Evert -- Evert explained they wanted to further develop their Kenai market and offer FBO services, including staging cargo much like what they did in Kenai in the 1980's. He noted they serve a lot of flights going to Illiamna and Lake Clark as well as do a lot of pilot training. He added, they would prefer doing this work in Kenai as the Anchorage area is much more congested. Evert also stated, this business would be year around. Cronkhite noted, the property of interest to Evert is un-subdivided property north of the Forestry lot. She added, she felt it was an appropriate area for development of the type described; the size of the lot will allow planes to be pulled onto the lot; there's space for a hangar or a fuel farm; administration would work to coincide the process with approval of the lease application, acquisition of a property appraisal, etc.; the subject property is forested, and, there is approximately two to three feet of overburden on the property and the water table is high. Evert noted, their initial estimate for clearing the overburden and excavation was approximately $375,000 and that they would do some of the work in-house as they have experience in this area, however the city would want to participate in issues with the utilities, storm drains, underground equipment, etc. They are interested in moving ahead with the project and perhaps the city would partner with the project. Williams noted council's interest in seeing the lease application proceed. B-2. Terrence Carlson, Boy Scout Troop 151 -- Request for Assistance / Eagle Scout Project. Mr. Carlson explained he is working toward an Eagle Scout designation and his project is to place mile and half -mile signs along the Unity Bike Trail. He has KENAI CITY COUNCIL MEETING DUNE 22 2004 PAGE 3 requested a mini -grant from the City of Soldotna and requested a donation from the City of Kenai. Carlson also noted, the Department of Transportation is providing the sign posts. The donated funds from Kenai and Soldotna would be used toward the cost of having the signs made, tool rental and feeding volunteers. MOTION: Council Member Swarner MOVED to supply Mr. Terrence Carlson with $150 out of this year's Legislative budget for his Eagle Scout project and Council Member Porter SECONDED the motion. There were no objections. SO ORDERED. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS No report. ITEM D: PUBLIC HEARINGS D-1, Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. D- la. Substitute Ordinance No. 2045-2004 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. MOTION: Council Member Porter MOVED for approval of Substitute Ordinance No. 2045-2004 and Council Member Swarner SECONDED the motion. Kristine Schmidt -- Requested council to adopt the budget without the add-ons discussed at their last meeting. She explained, she would like to "hold the line" with the original budget working toward a balanced budget without drawing on the General Fund. She suggested preparing a long-term financial plan during the next year. She also noted she is opposed to a raise in the sales tax as she felt it regressive and it impacts low-income people more than others. Mayor Williams noted the General Fund budget would be balanced after the lapse. MOTION TO AMEND: Council Member Swarner MOVED to amend the budget to include setting the council and mayor salaries back to the original amount of $500 and $1,000 which would become effective after the next election. Council Member Porter SECONDED the motion. KENAI CITY COUNCIL MEETING JUNE 2, 2004 PAGE 4 Finance Director Semmens stated the difference to the budget would be approximately $9,000. Council Member Bookey stated he was comfortable with the decreased salaries and would not support the motion. VOTE: -Bookey No Swarner Yes Moore No Porter No Gilman No Ross No Williams No MOTION FAILED, MOTION TO AMEND: Council Member Swarner MOVED to increase the Beautification budget for specifically the Leif Hansen Memorial Park for the purchase of a clock in honor of Mayor Williams in the amount of $5,000. Council Member Moore SECONDED the motion. Williams noted he was not aware what the cost of installation would be. Council Member Porter noted there had been many comments relating to needing a center of town and felt in many towns, the clock tower is the center of town. VOTE: Council Member Moore requested UNANIMOUS CONSENT. Council Members Ross and Gilman Objected. Williams stated there had been discussion over the years to place antique -type street lights in Old Town. He believed the Chamber or the Memorial Park would be the best place and in the future, with a clock in the Park, lights could be placed around the Park to set it off. He stated he would support the motion as he had for 18 years. -Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman No Ross No Williams Yes MOTION PASSED, Council Member Moore explained he had reviewed items cut from the previous budgets and one of the department line items has been building maintenance. He stated a specific project would be to place venting in the multipurpose facility to circumvent the continued condensation problems there. The estimated cost would be ppY a roximatel $30,000. r KENAI CITY COUNCIL MEETING DUNE 2, 2004 PAGE 5 MOTION: Council Member Moore MOVED to add $30,000 in the building maintenance budget for venting at the multipurpose facility. Council Member Porter SECONDED the motion. Council Member Ross suggested the cost for this work be taken from the multipurpose facility's Capital Project Fund and General Fund Contingency instead of adding to the budget. Bookey also suggested funds from the Arctic Winter Games, if awarded, could be used as well. Moore agreed with Ross and Bookey. WITHDRAWAL OF MOTION: Council Member Moore withdrew his motion and Council Member Porter withdrew her second. VOTE ON MAIN AMENDED MOTION: -Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes MOTION PASSED UNANIMOUSLY. D-2. Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $125,000 in the Congregate Housing Enterprise Fund to Repaint the Building Exterior. D-2a. Substitute Ordinance No. 2046-2004 -- Increasing Estimated Revenues and Appropriations by $148,500 in the Congregate Housing Enterprise Fund to Repair the Building's Exterior. Council Member Swarner MOVED to adopt Substitute Ordinance No. 2046-2004 and Council Member Porter SECONDED the motion. There were no public comments. Public Works Manager La Shot explained change in the cost was requested by the contractor and could be because wage rates may not have been considered. It was noted, funds were available in the Enterprise Fund and the change in cost would increase the amount of pay -back to the Fund by $24,000. La Shot also reported, because of the difficulty of the job, this contractor was considered the expert in the area. Williams noted, he discussed alternatives with administration, i.e. vinyl siding. However, the siding would be approximately double in cost but may need to be considered in the future. KENAI CITY COUNCIL MEETING DUNE 2, 2004 PAGE 6 VOTE: Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes MOTION PASSED UNANIMOUSLY. D-3, 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. MOTION: Council Member Swarner MOVED for adoption of Ordinance No. 2047-2004 and Council Member Moore SECONDED the motion. There were no public or council comments. VOTE: -Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes MOTION PASSED UNANIMOUSLY. D-4, Resolution No. 2004-27 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005. MOTION: Council Member Bookey MOVED for approval of Resolution No. 2004-27 and Council Member Swarner SECONDED the motion. Bob Peters, Old Town -- Stated his appreciation for the purchase of a used vehicle for the Parks & Recreation Department and added, he supported the purchase of used equipment. He noted his objection to raising the mil rate. It was noted, the resolution directed the mil rate to remain the same as last year. �KENAI CITY COUNCIL MEETING DUNE 21 2004 PAGE 7 MOTION TO AMEND: Council Member Bookey MOVED to reduce the mil rate by one-half mil, to 4.5 mils. Council Member Moore SECONDED the motion. Bookey explained he based this mil rate reduction on the affect a reduction would have on the public and especially the core business people because they are those who pay the highest amount in property taxes. Moore stated he would support the amendment as he believed council may have overreacted in generating the FY2004 budget and the 1 1/2mil increase was too much, though it was not possible to know the direction the budget would take at that time. Gilman stated his support for the reduction and noted, he believed the future years would bring more demands on the mil and sales tax levels. He stated, he believed the city will be facing a fiscal gap and council needs to give consideration to the fairest and most appropriate tax structure. Ross stated, he believed the lapse will be more than projected and noted, there was approximately $ 1 million more in fund balance than was projected in last year's budget. Ross added, he would support the reduction though he believed the budget would be balanced even without the reduction. Williams noted the undesignated fund balance was above what had been projected and the one-half mil reduction would leave +$6 million in fund balance. Williams stated he would support the reduction. Bob Peters, Old Town -- Stated his support of the mil rate reduction and added, he appreciated what the council does for the citizens of Kenai. Tim Navarre, Kenai -- Agreed the city should be frugal and do what it can to enhance the city, but with a lesser cost. He suggested the mil rate remain at the current amount in order to build the fund balance so funds might be available if a large project occurs and funds might be in place to cover the cost instead of tapping into the reserves. VOTE ON AMENDMENT: -Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman No Ross Yes Williams Yes MOTION PASSED, VOTE ON MAIN AMENDED MOTION: .� KENAI CITY COUNCIL MEETING DUNE 22 2004 PAGE 8 -Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes MOTION PASSED UNANIMOUSLY. BREAK TAKEN: 8:26 P.M. BACK TO ORDER: 8:42 Pome D-5. Resolution No. 2004-28 -- Awarding the Bid to Hansen Painting Inc. for Vintage Pointe Manor and Senior Center Exterior Stripping and Painting - 2004 for the Total Amount of $165,000. MOTION: Council Member Swarner MOVED for approval of Resolution No. 2004-28 and Council Member Porter SECONDED the motion. There were no public comments. Finance Director Semmens noted, funds for the project will be used from both the Congregate Housing Enterprise Fund and building maintenance budget. Public Works Director La Shot explained, the funds being used from the maintenance budget were excess, as all the other planned projects for the fiscal year had been completed. A brief discussion took place on the process to be used for the work as well as the collection of funds in the Enterprise Fund. VOTE: Bookey Yes Swarner Yes Moore Yes Porter Yes Gilman Yes Ross Yes Williams Yes MOTION PASSED UNANIMOUSLY. D-6. Resolution No. 2004-29 -- Transferring $10,590 in the Airport Land System Special Revenue Fund for Engineering and Design for Airport Land Development. MOTION: Council Member Moore MOVED for approval of Resolution No. 2004-29 and requested UNANIMOUS CONSENT. Council Member Bookey SECONDED the motion. There were no public or council comments. KENAI CITY COUNCIL MEETING JUNE 2, 2004 PAGE 9 VOTE: There were no objections. SO ORDERED. ITEM E: COMMISSION/COMMITTEE REPORTS E-1. Council on Aging -- Swarner reported the next meeting was scheduled for July. It was also noted, the Senior Connection would be hosting their pie booth at the Fourth of July festivities and the parade would begin at 2:00 p.m., Sunday, July 4. E-2, Airport Commission -- Moore reported a special meeting had been held on May 26, 2004 to review the Spizak/Bellair, Inc. lease application. E-3. Harbor Commission -- Bookey reported the next meeting was scheduled for Monday, June 7, 2004. E-44, Library Commission -- Gilman reported a meeting was held June 1 at which the Commission approved their goals and objectives; discussed exploring the potential of working with the Court System related to housing books; and, library expansion. Library Director Jankowska reported the commissioners also expressed gratitude for the additional funds in the Library budget to allow extra hours. E-5. Parks & Recreation Commission -- Ross reported the next meeting was scheduled for June 3, 2004. E-6. Planning & Zoning Commission -- Bookey reported the minutes of the May 26, 2004 meeting were included in the packet and gave a brief review of actions taken. Williams noted there were two applications for possible placement on the Airport Commission included in the packet. He stated he would forego appointment until he has an opportunity to speak to one of the applicants. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Swarner reported the volunteer planting day was well attended and a lot of work was completed. She noted applications included in the packet for possible placement on the Committee. Swarner suggested the appointment of Susan Hatch. Williams had no objections and the appointment was made. E-7b. Kenai Convention & Visitors Bureau Board -- Michele Glass, Director of the KCVB reported the minutes of their last meeting were included in the packet. � KENAI CITY COUNCIL MEETING 1 JUNE 2, 2004 PAGE 10 She noted, the Center had gone into their summer operation hours, i.e. now open seven days a week. E-7c. Alaska Municipal League Report -- Swarner reported the summer Legislative Committee and Alaska Conference of Mayors meetings would be held at the Challenger Center in August. Williams reported a reception had been scheduled for the evening of August 19 at the Visitors Center. Marion Nelson -- Noted the City of Homer would be competing with the City of Kenai relating to the Pebble Mine group. E-7d. Kenai Chamber of Commerce -- Chamber President Tim Navarre noted the following: • Complimented Williams on his state -of -the -city address made at the Chamber luncheon. • The Chamber continues work with planning the Fourth of July festivities. • The Chamber will be participating with the city for the Pebble Mine group reception. • The Chamber continues to meet with representatives from the KVCB to discuss the opportunity to work together or merge. E-7e. Arctic Winter Games -- Moore reported the minutes of several past meetings were included in the packet. He also noted, the board approved the allocation of federal funds of which $50,000 was earmarked for the multipurpose facility. Navarre suggested the city plan for what they want to use the funds and submit the information to the AWG. City Manager Snow was requested to contact the AWG director regarding the funds and whether a formal request is required, etc. E-7f. ITEM F: F-1, F-2. ITEM G: ITEM H: ITEM I: Stranded Gas Committee -- No report. MINTITRS Special Meeting of May 18, 2004 -- Approved by consent agenda. Regular Meeting of May 19, 2004 -- Approved by consent agenda. CORRESPONDENCE -- None. OLD BUSINESS -- None. NEW BUSINESS Bills to be Paid, Bills to be Ratified KENAI CITY COUNCIL MEETING JUNE 212004 PAGE 11 MOTION: Council Member Bookey MOVED to pay the bills and Council Member Swarner 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 iTNANIMOUS CONSENT. There were no objections. SO ORDERED, I-3. Ordinance No. 2048-2004 -- Amending KMC 7.10.010 and 7.10.020 by Increasing the Sales Tax Rate from Three Percent (3%) to Four Percent (4%). MOTION: Council Member Gilman MOVED for the introduction of Ordinance No. 2048-2004 and Council Member Porter SECONDED the motion. Williams stated he would first hear comments from council and then open the floor for public comment. Gilman explained it would be his intention to table the ordinance after discussion and public comment for several months in order for the public, including the merchants, to have time to weigh the effect, etc. Gilman stated, he believed the mil rate should be decreased, however, funds were needed to run the city; the council needs to discuss what the appropriate tax structure is for the city; he believes, instead of changing the mil rate to coincide with what is needed for running the city, the sales tax should be raised; and, he believes sales tax is fairer to the citizens. Kristine Schmidt -- Schmidt explained, due to her past employment with the Borough, she was very familiar with the tax codes; she spoke in opposition of the sales tax cap increase recently at the Borough Assembly meeting; feels sales tax is most regressive; suggested, before raising the sales tax, look at the tax equity issue; and, an increase in sales tax would impact her clients, of whom many are low income. Robert Molloy, 110 South Willow (business), Kenai -- Stated he opposes raising the sales tax as it would have a negative impact to people paying rent (who are often low income) and to landlords. He added, the exemption issue at the Borough also needs to be reviewed. KENAI CITY COUNCIL MEETING JUNE 2, 2004 PAGE 12 Tim Navarre, Ponderosa Place, Kenai -- Stated he supports the increase but believed it is needed to energize the city; would like to see a capital budget reserve to build a convention center, bluff erosion project, etc. Carol Brenckle -- Stated she believed it might not be a good time to raise the sales tax as it would be an advantage for businesses to locate in Kenai because of a lower sales tax, as well as other advantages. Bob Peters, Old Town -- Stated he supported a sales tax increase and would like to see the reserve increased. He added, he did not believe merchants would go out of business or residents would go to other areas to shop because of the difference in the taxes. Peters also stated he thought a seasonal tax would be workable. Julie Niederhauser -- Stated her husband works at Safeway and is very opposed to an increase in sales tax. She added, the city needs to encourage businesses and a variety of businesses to come to town. Council comments included: • Bookey stated he visited nine businesses and showed them a copy of the proposed ordinance. All he spoke to opposed an increase. He personally objected to an increase, but felt it was important to move ahead with public hearings, etc. However, he felt there would be major objection from the public. • Ross stated he hoped the ordinance would not go forward as he had received more input from the public than on any other issue; he does not think the funds are needed; bonding is what is used for large capital projects; he believed an increase above the other areas would be detrimental and unsettling; and, he wanted to kill the ordinance. • Porter stated she would not support an increase now or later as she believed it will encourage more citizens to shop outside of the city for supplies that are already available in Kenai. • Moore stated he could not think of any reason to support an increase and a one percent increase over the Soldotna sales tax would be detrimental to Kenai and its businesses. • Swarner stated, when she discussed the ordinance with business people and received all negative comments. She added, she agreed shoppers would go elsewhere and she would only support a four percent increase if the Legislature would pass a state sales tax on which the city would add its tax. • Gilman stated he was not surprised by the reaction; felt the citizens of the city, state, borough were unwilling to pay for services; he would like to have a discussion with merchants as to what they want to pay for city services; would like to hear comments from consumers; there needs to be a system which will sustain city government; disagrees with reacting by reducing or increasing the mil rate; felt the KENAI CITY COUNCIL MEETING JUNE 2 2004 PAGE 13 time to discuss the issue is after the budget is passed; and, wanted to table the ordinance in order to gather input from the public. MOTION TO TABLE: Council Member Gilman MOVED to table Ordinance No. 2048-2004 for two months and Council Member Swarner SECONDED the motion. VOTE: -Bookey No Swarner Yes Moore No Porter No Gilman Yes Ross No Williams Yes MOTION FAILED, MOTION: Council Member Gilman MOVED to withdraw his motion for introduction of Ordinance No. 2048-2004 with consent of the second. Council Member Porter SECONDED the motion and agreed to remove her second to the motion to introduce. City Attorney Graves explained, because the motion to introduce the ordinance had not been voted and the motion to table had failed, and with the withdrawal of the motion to introduce would deem the ordinance dead. VOTE: There were no objections. SO ORDERED, I-4. Ordinance No. 2049-2004 -- Increasing Estimated Revenues and Appropriations by $12,000 for a Federal Grant for Wetlands Protection. Introduced by consent agenda. I-5. Approval -- Lease Application/ Mike Spisak, d/ b / a Bellair, Inc. -- Lots 5 and 6, Block 1, F.B.O. Subdivision. Bookey reported the Airport Commission reviewed the lease application and unanimously recommended it be approved by council. Phil Bryson, Wince-Corthell-Bryson, 1205 Third Avenue, Kenai -- Bryson referred to the letter which included a cost estimate the development of Lots 5 and 6 and was added to the agenda at the beginning of the meeting. Bryson explained, KENAI CITY COUNCIL MEETING JUNE 2, 2004 PAGE 14 • His company was requested to prepare a preliminary cost estimate for correcting drainage deficiencies and bring the subject lots to an elevation suitable for lease development utilizing both the Apron and Willow Street frontages. • The elevations were of primary concern. • The cost estimate was prepared with basic costs and two alternatives, of which one of the alternatives would need to be done. • The drainage work could address drainage issues on the property leased by Federal Express as well. Airport Manager Cronkhite explained the improvements to the property would be recovered through the lease payments (sup percent of whatever the cost of the improvements) on the properties and encouraged the lessee's signature on the agreement first. City Attorney Graves stated it was his understanding council's intent was to have the property appraised as improved and the lease rate would reflect the improvements. Council's comments during discussion included: • Ross stated he concurred with Graves. • Semmens informed council the funds to be used for the improvements would come from the Airport Fund and the lease payments would go back into the Airport Trust Fund. The corpus of the Trust Fund would not be used for the work. • The agreement would include a development schedule which would give a certain amount of time in which the lessee would need to develop the property, if the improvements are not made within the specified timeframe, the remedy would be to rescind the lease. The city would recover the improved lots and the properties would then be available to lease to someone else. • Council is, through this meeting's action, only considering the lease application. • Approval of funds to do the improvements will be a separate action. • The applicant will be able to review the cost estimates and could decide he no longer wants to lease the properties. • There will be further negotiation with the applicant relating to the lease and the lease will come back to council for final consideration. MOTION: Council Member Moore MOVED to approve the lease application on Lots 5 and 6, Block 1, FBO Subdivision and Council Member Bookey SECONDED the motion. VOTE: -Bookey Yes Swarner Yes Moore Yes Porter I Yes Gilman I Yes J Ross Yes KENAI CITY COUNCIL MEETING DUNE 2, 2004 PAGE 15 Williams Yes MOTION PASSED UNANIMOUSLY. Discussion -- Streamlining of Commission/Committee Reports Porter suggested the council meeting agenda be restructured to allow members of the public (who are attending the meeting to make reports) to not have to sit through so much of the meeting and be able to leave at an earlier hour. Discussion followed and the agenda was restructured. I-7. Discussion -- Municipal Advisory Group -- Stranded Gas/Resolution No. 2004-01. Ross referred to a copy of the first resolution of the Municipal Advisory Group (MAG) and explained there would probably be up to 12 additional resolutions coming from the group for individual councils to review, etc. He requested council's direction as to whether they agreed with the resolution or not in order for him to pass the information on to the MAG. Ross also reported the MAG would be discussing regulatory issues as well as other gas issues during the life of the group. MOTION: Council Member Porter MOVED to support the Municipal Advisory Group Resolution No. 2004-01. Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM J: REPORT OF THE MAYOR -- Williams noted two letters included in the packet, i.e. Kay Shearer invitation to the dedication of the Steve Shearer Memorial sign at the softball field on July 9, 2004 at 5:30 p.m., and Senator Murkowski's letter relating to the bluff erosion/ restoration project. ITEM K: ADMINISTRATION REPORTS K-1. City Manager -- Snow reported the following items: • A flatbed truck was selected from the GSA in Anchorage for use by the Parks & Recreation Department. • The flea market request for proposals was amended to allow for a monthly market and language was included to allow the city to award a joint proposal. The issue will be returned to the Parks 8. Recreation Commission for their review. • The city received a donation of property for the bluff stabilization project, i.e. the remainder of Government Lot 7. KENAI CITY COUNCIL MEETING JUNE 2, 2004 PAGE 16 K-2. Attorney -- City Attorney Graves reported the PERS opt -out agreement was amended and finalized according to the last ordinance amendment. Williams noted the copy of the city of Bethel's helmet ordinance which was included in the packet. He requested council to review it and think about whether a like ordinance should be brought forward for council's consideration. K-3. City Clerk -- No report. ITEM L. DISCUSSION L-1. Citizens -- Tim Navarre -- Requested the unfinished building along Bridge Access be reviewed, i.e. does it have a building permit, why it has not been completed to date, etc. Ozzie Osborne, 14400 Kenai Spur Highway, Kenai -- Referred to a previous conversation relating to Kenai citizens shopping out of the city. He noted, some shop in the other stores for groceries as well as other items because they are in one place. He also noted it was difficult to hear the proceedings due to the sound system. L-2. Council Bookey -- No comments. Swarner -- Reported the following: • She, Marion Nelson and City Clerk Freas were updating the Milepost advertisement which was available for other council members to review in the Clerk's office. • Suggested the Department of Transportation be contacted to remove gravel in the middle of the road. • Noted there were areas on the bike trail where sand needs to be removed. Moore -- No comments. Porter -- Porter commented on the following: • Suggested benches be placed along the bike trail for people to stop, sit and rest. • Requested the former radio station building along Spur Highway be considered for razing. • Requested the junk vehicles parked on property across from the old radio station building be researched, etc. to have the vehicles removed. KENAI CITY COUNCIL MEETING DUNE 2, 2004 PAGE 17 • Suggested sidewalks be cleaned at corners. • Junk vehicles are situated on Eadie's property as well as the vacated lumber yard. 0 Suggested council discuss whether they want to include any bond propositions on the next ballot. Williams suggested the city may need to use bonding authority for the bluff erosion/restoration project. He stated he would like to wait on any bond issues until after they receive a report from the Corps of Engineers. • Requested the Parks 8v Recreation Commission address the placement of a gazebo at the cemetery, i.e. contacting plot owners to consider donations toward the cost. • Asked if a card gate would be placed at the float plane basin. Airport Manager Cronkhite stated there will be two placed. The request for proposals will be advertised in the near future with a bid award the beginning of August. Gilman -- Reported he would not be at the next council meeting. Ross -- No comments. Williams -- Williams commented on the following: • Asked if there was any prohibition to used car lots being situated in Old Town. Attorney Graves stated he would research the question and report back. • Due to the recent report in the newspaper relating to a grave that caved in at the cemetery, he suggested the inclusion of vault requirements in the planned addition to the cemetery be discussed and considered. EXECUTIVE SESSION -- Recreation Center Litigation and City Manager Contract. MOTION: Council Member Bookey MOVED to convene in an executive session of the council of the City of Kenai concerning matters that could prejudice the reputation and character of another, i.e. the continuation of the evaluation of the City Manager's contract and Recreation Center litigation. Bookey requested City Manager Snow and City Attorney Graves be present. Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. EXECUTIVE SESSION CONVENED: 114.16 P.M. BACK TO ORDER: 11:47 P.M. Council Member Bookey reported, during the executive session, the council made a decision on the litigation on the Recreation Center and has been given to the attorney to go through and follow and the other was the renewal of the contract with the City KENAI CITY COUNCIL MEETING JUNE 22 2004 PAGE 18 Manager has been given direction and will be finished and will be brought back to council for approval. ITEM M: ADJOURNMENT The meeting adjourned at approximately 11:47 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk y:3