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HomeMy WebLinkAbout2003-02-05 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 5, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS httZ,.www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Betsy Arbelovsky -- Community Care Foundation ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. Public Hearing -- Regulating Smoking in Eating Establishments 2. Ordinance No. 1987-2003 -- Amending KMC 23.50.010 to Change the Range of the Police Trainee While Attending the Public Safety Academy at Sitka to a Range 2. 3. Ordinance No. 1988-2003 -- Amending KMC 7.15.050 to Increase the Purchasing Limit Without Competitive Bidding for Construction or Maintenance Projects to $20,000. 4. Ordinance No. 1989-2003 -- Increasing Estimated Revenues and Appropriations by $1,900,000 in the Wellhouse No. 4 Capital Project Fund and $950,000 in the Water and Sewer Special Revenue Fund. 5. Ordinance No. 1990-2003 -- Amending the Land Use Table in KMC 14.22.010 to Change Day Care Centers From "C" (Conditional Use) to "P" (Principal Permitted Use) in the CG (General Commercial), CC (Central Commercial) and IL (Light Industrial) Zones. 6. Resolution No. 2003-06 -- Supporting the Approval of the Tri-Borough Position Paper for Federal Outer Continental Shelf Oil and Gas Leasing Program, 2002-2007. 7. *Liquor License Renewals Pizza Paradisos -- Beverage Dispensary Kenai Joe's -- Beverage Dispensary BPO Elks Lodge #2425 -- Club Peninsula Moose Lodge # 1942 -- Club The Rainbow Bar -- Beverage Dispensary ITEM E: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8s Recreation Commission 6. Planning 8s Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention 8v Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce ITEM F: MINUTES 1. *Regular Meeting of January 15, 2003. 2. *December 12, 2002 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. 1991-2003 -- Increasing Estimated Revenues and Appropriations by $779.25 in the General Fund for Drug Asset Forfeitures. 4. *Ordinance No. 1992-2003 -- Increasing Estimated Revenues and Appropriations by $24,876.90 in the General Fund for an Alaska Highway Safety Grant to Purchase Video Cameras. 5. Approval -- Vacation of the Westerly Three -Foot Portion of the 33-Foot Access Easement to Accommodate the Existing Building, All Within Section 34, T6N, R 11 W, Seward Meridian, Alaska, the city Kenai and the Kenai Peninsula Borough -- Da vid avid Yragui, Petitioner ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTR.ATION 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 FEBRUARY 5 00 ,2 3 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:05 p.m. in the Council Chambers in the Kenai City Hall Building. Williams requested a moment of silence in remembrance of the crew and families of the Columbia Space Shuttle. A-1, PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2., ROLL CALL Roll was taken by the City Clerk. Present were: Moore, Porter, Bannock, Jackman, Williams, Bookey and Swarner. A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: MOVE: E-7d (Chamber of Commerce Report) to be heard before E-1. ADD AT: ITEM J: House Bill No. 4/relating to publicly owned Correctional facilities (see page 2, line 5) ADD AT: ITEM K-1: 1 / 31 / 03 Memorandum regarding Kenai River Bluff Erosion Study/Project Status from Patrick Fitzgerald. MOTION: Councilman Bookey MOVED for approval of the agenda as amended and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, A-4. CONSENT AGENDA MOTION: Councilman Bookey MOVED to approve the consent agenda as presented and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 2 ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Betsy Arbelovsky -- Community Care Foundation Arbelovsky reviewed information included in the packet regarding the formation of a Community Care Foundation for the Central Peninsula. She noted, the Foundation would be a resource to support non -profits and their grass roots efforts. She also noted, a survey was included in the packet and she encouraged everyone to complete it and return it to her office. Arbelovsky noted the types of funds within a Foundation as: Unrestricted funds (gifts to the Foundation to be used in accordance with Foundation guidelines to benefit the Central Peninsula); specific are of interest funds (the donor specifies the cause or area of interest and designates criteria for grant awards, etc.); donor advised funds (the donor designates the committee who will disperse the funds as well as the criteria for giving); specific organization designated funds (the donor designates specific non- profits or other organizations who will benefit from the fund); scholarship/fellowship funds (the donor designates the criteria for award); and stand-by foundations (the donor sets up a fund with at least $5,000 and includes the fund in their estate planning). She also noted, the Foundation will not be in competition with United Way. Arbelovsky also reported they are looking for volunteers to serve on their board. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS Assemblywoman Betty Glick reviewed actions taken by the Assembly at their meeting of February 4, 2003. Highlights of the comments were as follows: • Assembly finalized their federal priority list. • Received an update from their lobbyist who reported the transportation appropriation bill included $500,000 for the Kenai River Trail Improvement; $ 1 million for Kenai Peninsula road improvements; and in the energy and water appropriations bill, $185,000 for the Corps of Engineers to begin studying the Kenai River bluff erosion which can provide the justification for further erosion protection in future years. Williams stated administration would have to investigate whether the wording is correct as he believed it should be ongoing funding. Glick also reported the bill also included funding for the Boys & Girls Club; Alaska Seafood; CIRCAC; Kenai River Center; Kenai Stream Bank Restoration. • An update from the Alaska State Troopers regarding their coverage on the Peninsula. • Passage of a resolution requesting the State of Alaska, Division of Parks 8v Outdoor Recreation include personal property tax compliance as a requirement to qualify for Kenai River guide permits. KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 3 • Passage of a resolution supporting the Outer Continental Shelf Oil 8s Gas Lease Sales 191 and 199. • The Emergency Management Office is hoping to develop an emergency operations facility off the Kalifornsky Beach Road to incorporate all dispatch and emergency services. Most of the discussions came from the Homeland Securities perspective. She noted, the building is on the Borough's Federal priority list. In the discussions, concern was stated that the space available for a command center in the PRISM building was too close to the airport. She added, it was noted neither Kenai or Homer were represented in the Public Safety Transition Committee meeting at which the matter was discussed. ITEM D: PUBLIC HEARINGS D-1, Public Hearing -- Regulating Smoking in Eating Establishments Williams noted, this was a public hearing to learn whether there was interest in the community for the council to direct an ordinance be developed for their consideration. Greg Daniels, 426 Rogers Road -- Reviewed statistics in regard to smoking and health issues related to smoking. Daniels stated he supported the council developing an ordinance as he felt it would be a really good thing to do for the community and the health and welfare of its citizens. Bill Osborne, 443 Rogers Road, Kenai -- Stated he believed it was time the council investigated the issue and protect the citizens of the city. John Parker, Third and Forest, Kenai -- Stated he is an employee of the city, but was speaking as a private citizen. Parker stated he supported the development and passage of an ordinance. He noted, when a person who smokes goes out to dinner, they do not infringe on other smokers, but infringe on non-smokers' rights to breathe clean air. Bryan Templeton, 1209 Fourth Avenue, Kenai -- Stated he is a smoker and agrees non-smokers have the right not to breathe second-hand smoke, but also, smokers have the right to smoke and he believes, businesses have the right to decide whether or not they will allow smoking in their establishment. He added, there have not been any studies that state with certainty second-hand smoke harms. Templeton also stated, people can choose not to go to establishments if they don't want to breathe smoke. Tim Navarre, 608 Ponderosa, Kenai -- Stated he is anti -smoking and agrees there should be an ordinance. He added, he spoke with a number of restaurant owners and most did not have a problem in passage of such an ordinance. Navarre added, he did KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 4 believe an ordinance should include time for the establishments to make any necessary alterations. Mike Retone, 47074 Wildberry Court, Kenai -- Stated he is a junior at Kenai Central High School and would support the passage of an ordinance. As a student and participant in the D.A. R. E. program, he has learned the importance of saying no to drugs, alcohol and cigarettes and feels no -smoking in an establishment would enhance it as a place for people to gather and enjoy. Roy Wells, 410 Lawton Drive, Kenai -- Stated his support of an ordinance for the health and well being of its citizens. Brandi Olson, 39395 Breadman Street, Sterling, AK, Grants Coordinator, Tobacco Control Alliance of the Peninsula -- Stated she believes passage of a non-smoking ordinance would be a good start and she applauded the council's efforts in moving in this direction. She encouraged the city to use her as a resource person and to help develop an ordinance. Emily Neeman, 1635 Northwestern Avenue, Anchorage, American Cancer Society -- Stated she is the Alaska Advocacy Manager and works on public policies relating to cancer issues. Neeman stated she has been working with a lot of communities who are discussing non-smoking ordinances. She stated her support of the council in discussing this health issue and encouraged council to move forward with the formation of an ordinance with patience and careful consideration for the impact it will have on the community (positive health effects) . They have learned that after this type of policy is in place, after a public education campaign, the public supports the ordinance. Don Jose's Representative -- Stated council will have to do what they have to do. He personally doesn't like people deciding what he can and cannot sell in his business, but they can't fight it anymore. He also noted, the owner's restaurant in Anchorage has not had many negative effects from Anchorage's ordinance. George Pitsilionis, Paradisos Restaurant -- Had no obj ections to the development of an ordinance. Councilwoman Porter stated she visited all the restaurants in Kenai. She encouraged council to request Attorney Graves to work with the representatives from the American Cancer Society and Tobacco Alliance to develop an ordinance. In her discussions with Graves she was told an ordinance could be divided into three sections with definitions: bar, restaurant and bar/restaurant. Swarner suggested Graves work with the restaurant owners to indicate in the ordinance a workable length of time for the ordinance to become effective in case alternations to premises will need to be made. KENAI CITY COUNCIL MEETING FEBRUARY 5 00 ,2 3 PAGE 5 Jackman stated her concern how far the ordinance would go and to what lengths the bar/restaurant owners would have to go to accommodate requirements of an ordinance. Williams suggested an ordinance could be drafted and several hearings could be held to be sure the wording is acceptable. Greg Daniels -- Stated he felt it very important bar/ restaurant owners are required to have a 100% smoke -free restaurant, which may mean a door separating the bar from the restaurant. Williams noted, the enforcement of a law can be a problem with the budget constraints the city faces this year. He added, he hoped the citizens will help by policing themselves. BREAK TAKEN: 8:30 P.M. BACK TO ORDER: 8:50 P.M. D-2, Ordinance No. 1987-2003 -- Amending KMC 23.50.010 to Change the Range of the Police Trainee While Attending the Public Safety Academy at Sitka to a Range 2. MOTION: Councilman Bookey MOVED for the adoption of Ordinance No. 1987-2003 and Councilwoman Porter SECONDED the motion. There were no public comments. City Manager Snow explained the Fair Labor Standards Act requires trainees at the police academy to be paid overtime for those hours above forty per week in actual training and payment of the overtime at the Range 13 pay scale is very costly and utilizes a large portion of the police training budget and overtime expense. VOTE: Moore Yes Porter Yes Bannock Yes Jackman Yes Williams Yes Bookey Yes Swarner Yes MOTION PASSED UNANIMOUSLY. D-3. Ordinance No. 1988-2003 -- Amending KMC 7.15.050 to Increase the Purchasing Limit Without Competitive Bidding for Construction or Maintenance Projects to $20,000. MOTION: KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 6 Councilman Bookey MOVED for adoption of Ordinance No. 1988-2003 and Councilwoman Porter SECONDED the motion. There were no public comments. Williams explained, the ordinance would raise the purchase limit without going to competitive bid from $10,000 to $20,000. Bookey stated he would support the ordinance but cautioned administration to abuse the ordinance. He added, he wanted the city to still give its best effort to get the best price, etc. and if he sees abuse, he will want to change the limit back to what it is currently. Porter stated she would not support the ordinance. Swarner stated she would not support the ordinance due to constraints on the budget. Moore stated he would support the ordinance. He noted, in the past there had been times when work that could have been a single job, had been divided to maybe avoid the bidding process. He added, he also saw that as a way to expedite the project. He asked Public Works Manager La Shot if the elevation of the limit would alleviate this problem as well. La Shot stated, raising the limit would help in times when it would help to hire someone in a timely fashion without going through the bidding process. He added, the last time the limit was raised was in 1988 and purchasing power of that limit ($10,000) had certainly changed. Williams noted, still no funds would be able to be used without council first appropriating it. Administration currently cannot spend more than $2,500 without council's authorization. He added, council would still be in control of funds to be spent and the amendment would only allows administration to move away from the bidding process. Bannock noted, if the ordinance would pass, there would be two levels; purchase of supplies, materials, equipment, or contractual services and construction or maintenance projects. He asked the driving factor for making the amendment. City Manager Snow answered, the driving force was discussion from council at their January 2 meeting when the design/build ordinance was before council. During the discussion, council decided there were many reasons why they objected to the design/build ordinance and it was suggested a simpler solution might be to raise the amount before going to bid. An example was the force account used in-house for the remodel of the downstairs office. Bannock asked if the amendment to the ordinance would be good for construction and maintenance, why would it not be good for supplies, materials, equipment and other contractual services. Williams stated he believed it was singled out during a discussion he and a couple other council members had with the attorney when insurance was requested to be in the ordinance to only address the construction or maintenance projects. KENAI CITY COUNCIL MEETING FEBRUARY 5 2003 PAGE 7 Bookey stated as an example, the water/ sewer tie-in work needed to be done separately by the same contractor. He noted, it was the best thing for the city to do and saved money, but left a concern for him that it should have gone to bid and done as one project. Bookey added, raising the limit with the ordinance would eliminate that concern. Council will still have the ability to say no. Jackman stated she was concerned raising the limit would be a license for abuse. Porter stated she felt it was a good idea to have a limit and go to bid and get the best price for the community. Finance Director Semmens stated he fully supported the ordinance as there are several lines of approval any purchase goes through. He noted, any purchase over $30 has to have a purchase order. Council sees those of $2,500 and over, but he reviews all of them. He routinely asks the questions council thinks are not being asked, i.e. local purchase, lowest price, etc. Semmens also noted, there is a cost in going to bid, i.e. preparation of bid documents, advertisement, a great amount of time of review by contractors, contractor response to bids, etc. Typically, for a $10,000 job, there is not a lot of margin in bid amounts. Semmens emphasized, there are very good controls on purchasing in the City of Kenai. Bannock stated he didn't think it was about the purchase, because by the time the purchase order gets to Semmens, the decision of purchase has already been made. Semmens noted, he is the person who approves the purchase. Bannock stated, the raise would not have been needed to solve the perceived problem with the water/ sewer tie-in project, it would raise the limit to hide the perceived problem. He noted his previous question of why, if it is good for construction and maintenance, why not for supplies, materials, equipment or contractual services. MOTION: Councilman Bannock MOVED to strike the entire second line of subparagraph (1) and change $10,000 to $20,000 to read, "Supplies, materials, equipment, or contractual services whose cost does not exceed $20,000 in a single transaction;" Councilwoman Porter SECONDED the motion. Williams stated he believed supplies, materials, equipment is different than contractual services. Semmens noted, all bid specifications are different and a construction job would require more, but some supplies, materials, and equipment are also specified and calls are made to find the best price. Williams stated, he believed the ordinance would allow more efficiency in City Hall to obtain a price or purchase an item. VOTE ON AMENDMENT: KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 8 Moore No Porter No Bannock Yes Jackman No Williams No Bookey No Swarner No MOTION TO AMEND FAILED. VOTE ON MAIN UNAMENDED MOTION: VOTE: Moore Yes Porter No Bannock No Jackman No Williams Yes Bookey Yes Swarner No MOTION FAILED. D-4, Ordinance No. 1989-2003 -- Increasing Estimated Revenues and Appropriations by $1,900,000 in the Wellhouse No. 4 Capital Project Fund and $950,000 in the Water and Sewer Special Revenue Fund. MOTION: Councilwoman Porter MOVED for approval of Ordinance No. 1989-2003 and Councilman Bannock SECONDED the motion. There were no public comments. La Shot explained the funds would be used for the City's ongoing water improvements program. He added, the last exploratory well did not work out and they would be trying again on the east side of town. Williams noted, the funds were received from a state grant. VOTE: Moore Yes Porter Yes Bannock Yes Jackman Yes Williams Yes Bookey Yes Swarner I Yes MOTION PASSED UNANIMOUSLY. D-5. Ordinance No. 1990-2003 -- Amending the Land Use Table in KMC 14.22.010 to Change Day Care Centers From "C" (Conditional Use) to "P" (Principal Permitted Use) in the CG (General Commercial), CC (Central Commercial) and IL (Light Industrial) Zones. KENAI CITY COUNCIL MEETING � FEBRUARY 5, 2003 PAGE 9 MOTION: Councilman Bannock MOVED for adoption of Ordinance No. 1990-2003 and Councilman Bookey SECONDED the motion. There were no public comments. Bannock reported the Planning & Zoning Commission approved the resolution and recommended it for approval by the council. VOTE: Moore Yes Porter Yes Bannock Yes Jackman Yes Williams Yes Bookey Yes Swarner Yes MOTION PASSED UNANIMOUSLY. D-6, Resolution No. 2003-06 -- Supporting the Approval of the Tri-Borough Position Paper for Federal Outer Continental Shelf Oil and Gas Leasing Program, 2002-2007. MOTION: Councilwoman Porter MOVED for approval and Councilwoman Jackman SECONDED the motion. Blaine Gilman -- 216 Susieanna, Kenai. Stated he supported the lease sales but felt the resolution was diluted with the discussion about the tri-borough position paper and suggested the resolution be amended to state the council supports the oil and gas sale with positive aspects in the whereas paragraphs. Gilman submitted a draft resolution which he felt better supported the oil and gas lease sales for council's review and consideration. Williams noted the city's resolution was written to support the tri-borough paper. He also reported he attended a public hearing on the lease sales and 99% of the public comments were in support of the sales. Bill Popp, Oil & Gas Liaison/Kenai Peninsula Borough -- Popp reported the Assembly had passed a resolution at their February 4 meeting but made some withdrawals to avoid some subsistence activities and critical habitat areas. They believe, they are in the first of three broad steps in regard to selling leases in the Outer Continental Shelf, i.e. deciding whether or not to go forward with the sales, provide access to the resource and to see if there is resources available in the areas; exploration; and development of production. Popp explained, the Minerals Management Service as referred to in the tri-borough paper, has the ability to control off -shore loading; control conflicts between KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 10 commercial, sport and subsistence activities; and, has full ability to identify habitat areas and can take steps to avoid issues with those areas. However, the Service does not have the authority to approve spill response/prevention plans or write checks. The Borough believes those issues will be dealt with through additional actions with other federal agencies. Their resolution reflects the Borough's belief the Mineral Management Service has gone as far as it can in the scope of its authority to address the tri-borough paper. Their resolution also indicates the importance of the sale and development of these leases to the economy of the Borough. Williams stated concerns the resolution as presented could delay the lease sales because it asks Congress to create new law to allow for revenue sharing within the three boroughs and though it speaks of local government, it only addresses local government under the borough status and does not address cities to be impacted. Popp stated, those issues had been raised during their discussions by those opposed to the resolution, i.e. until all of the provisions of the tri-borough paper were addressed in detail and in final form, the borough should oppose the lease sale. Williams stated he felt that was the concern of Gilman and his suggested resolution. Popp stated, in reading Gilman's draft, he could not see anything to disagree with in the wording. Bannock stated he felt the leases needed to go forward and he felt the tri-borough paper was separate from the oil and gas sales. He felt the resolution suggested by Gilman was better and suggested the tri-borough resolution be substituted with Gilman's draft. MOTION: Councilwoman Porter MOVED to substitute Resolution No. 2003-06 with the suggested draft of Gilman and Councilwoman Swarner SECONDED the motion. Bannock requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. D-7, Liquor License Renewals Pizza Paradisos -- Beverage Dispensary Kenai Joe's -- Beverage Dispensary BPO Elks Lodge #2425 -- Club Peninsula Moose Lodge # 1942 -- Club The Rainbow Bar -- Beverage Dispensary Approved by consent agenda. ITEM E: COMMISSION / COMMITTEE REPORTS KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 11 E-7d., Kenai Chamber of Commerce Chamber President Brewer apologized for the recent comments in a newspaper article regarding the relationship between the City and the Chamber. She clarified, the Chamber did not have secret meetings; have an economic development committee to work with the business members and community leaders for bringing potential businesses to the city; and the city and Chamber need to work together. Roy Wells, Lawton Drive -- Spoke of the community and its ability to work together in many projects. He noted, the Chamber, through its economic development committee, wants to be more visible in commerce. Wells added, he appreciated the support of the city and looked forward to working with the city. Porter suggested the council meet with the Chamber Board in a work session to discuss items of interest to both entities. Williams noted the city manager is the City's representation on the Chamber Board. He also noted a lot of work between the city, Chamber and citizens will be needed to meet the challenges the city faces with the loss of revenue from the closure of the Kmart store. Audrey Walaszek, Chamber Director -- Thanked the council for their involvement and participation in Chamber activities and added her support of the city and Chamber working together. Porter was requested to work with the Chamber in determining dates to hold a work session. E-1. Council on Aging -- Swarner reported the next meeting would be held on February 6 at 10:00 a.m. at the Senior Center. E-2, Airport Commission -- Jackman reported the next meeting was scheduled for February 13. E-3, Harbor Commission -- Bookey reported the next meeting would be held on Monday, February 10. He requested Assemblywoman Glick to forward any information she had in regard to the funding for the bluff erosion project for distribution to the Harbor Commission. E-4, Library Commission -- Moore reported the Commission met on Tuesday, February 4. During the meeting new officers were elected, i.e. Emily DeForest, Chair and Kathy Heus, Vice -Chair. Immediately following the meeting a "visioning session" was held to gather ideas of what the community wanted to see in their library, such as activities that can be implemented, grant writing, Commission members, etc. KENAI CITY COUNCIL MEETING � FEBRUARY 5, 2003 PAGE 12 E-5. Parks & Recreation Commission -- Porter reported the next meeting would be held on February 6 at 7:00 p.m. E-6. Planning & Zoning Commission -- Bannock reviewed actions taken by the Commission at their January 22nd meeting which included an approval of a conditional use permit for a dog grooming and spa; setting a public hearing for the rezoning of property to be included in the Education Zone; and setting a public hearing for the Land Use Table amendments in regard to parks and recreation. Bannock noted there is a vacancy on the Commission with the resignation of Commissioner Nord and noted applications were included in the packet for review. Bannock suggested the appointment of Amy Anderson, one of the applicants. Williams stated he would delay appointments to both the Planning & Zoning Commission and the Harbor Commission until the February 19 meeting. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Swarner reported the minutes of the January 14 meeting were included in the packet. She noted the next meeting was scheduled for Tuesday, February 11 and the Committee had two available seats. Porter requested page 2, Item 8-b be checked in regard to the Airport Triangle Park. E-7b, Kenai Convention & Visitors Bureau Board -- Bookey reported a meeting was held on January 27 at which time the current officers were re-elected (Fred Braun, President; Dan Van Zee, Vice -President; and Ron Malston, Treasurer) . The Board also discussed budgets and reported they were seeking a grant for development of a marketing program and updating their website. Other items mentioned were: • The KCVB were applying for two VISTA volunteers. • They heard an Arctic Winter Games update. • They will hold a strategic planning session. • They are actively trying to promote the Visitors Center. E-7c. Alaska Municipal League Report -- Williams reported he would be attending the Alaska Conference of Mayors meeting in Juneau, February 12 and 13. ITEM F: MINUTES F-1, Regular Meeting of January 15, 2003 -- Approved by consent agenda. F-2. December 12, 2002 Work Session Notes -- Approved by consent agenda. KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 13 ITEM G: CORRESPONDENCE -- None. ITEM H: OLD BUSINESS -- None. ITEM I: NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Bookey MOVED to pay the bills. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, I-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Bookey MOVED to approve the purchase orders exceeding $2,500. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, I-3. Ordinance No. 1991-2003 -- Increasing Estimated Revenues and Appropriations by $779.25 in the General Fund for Drug Asset Forfeitures. Introduced by consent agenda. I-4. Ordinance No. 1992-2003 -- Increasing Estimated Revenues and Appropriations by $24,876.90 in the General Fund for an Alaska Highway Safety Grant to Purchase Video Cameras. Introduced by consent agenda. I-5. Approval -- Vacation of the Westerly Three -Foot Portion of the 33-Foot Access Easement to Accommodate the Existing Building, All Within Section 34, T6N2 R 11 W, Seward Meridian, Alaska, the city Kenai and the Kenai Peninsula Borough -- David Yragui, Petitioner Bannock explained the requested vacation came before council several months ago and council vetoed the request. The vacation was amended and had now come back through the Planning & Zoning Commission, who recommended approval. KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 14 Williams stated he was not in favor of giving up a right-of-way for encroachments, in this case a building, which was illegally built on the right of way. Williams suggested the easement be leased to the applicant instead of approving the vacation. The lease should have included in it a reversionary clause if and when the building is removed. City Attorney Graves stated a precedent had been set through the city's leasing of a right-of-way for a storage facility, however there was no road involved in that instance. Graves suggested council could veto the vacation and then direct administration to discuss the matter with the applicant. Because the applicant would be leasing the right-of-way from the city, there would be no need for him to reapply for the vacation. Bannock stated his concern the encroachment would still exist. MOTION: Councilwoman Swarner MOVED to veto the vacation of the westerly three-foot portion of the 33-foot access easement to accommodate the existing building, all within Section 34, T6N, R 11 W, Seward Meridian, Alaska, the City of Kenai and the Kenai Peninsula Borough, KPB File 2003-005 and Councilwoman Porter SECONDED the motion. VOTE: Moore Yes Porter Yes Bannock No Jackman Yes Williams Yes Bookey Yes Swarner Yes MOTION PASSED. Williams stated the letter noting the veto should state the city was not going to require the applicant to remove the building from the right-of-way and will work with him in this matter. Bannock noted the city would now have an ongoing violation. Graves stated it is not unusual to work with the public to cure a violation. ITEM J: REPORT OF THE MAYOR -- Mayor Williams noted the following: • He will be traveling to Washington, DC in March to attend the NLC Conference of Cities and visit with Alaska's congressional delegation. He requested a complete update of the bluff erosion information to take with him and include the letter added to the agenda at the beginning of the meeting. Williams stated he would need four copies. • He requested administration to investigate the funds discussed by Glick earlier in the meeting. 0 Noted the fisheries tax letter included in the packet. KENAI CITY COUNCIL MEETING i FEBRUARY 5, 2003 PAGE 15 • Noted the letter from Avis regarding on -site and off -.site car rentals at the Kenai Airport. • Referred to the copy of HB4 (added to the agenda at the beginning of the meeting) in regard to publicly -owned correctional facilities. He stated he wanted to support the bill, but wanted council to let him know of their objections, if any. • Suggested the city should have a contingency plan in regard to its budget and the closing of the Kmart facility. He asked if administration wanted to have a work session to discuss the budget preparation as he felt the work council had done at the recent work sessions was now of no value. Council agreed another work session should be held as council would have some difficult decisions to make, i.e. whether a hiring freeze should be instituted and no replacement of personnel made, etc. Snow stated she and Semmens had talked about those things and would have a report to this regard to discuss with council and would like to have another work session. Council set a work session for 6:00 p.m. on February 20, 2003. ITEM K: ADMINISTRATION REPORTS K-1, City Manager -- City Manager Snow reported the following: • Referring to the Corps of Engineers letter added at the beginning of the meeting, Snow noted the Corps representative was willing to meet with the council. • Referred to the memorandum included in the packet regarding the city's banking service and noted Administration was recommending the city continue with Wells Fargo. Bookey stated he thought the banking service needed to be reviewed periodically because the service is so important and is a major work load. He added, he agreed the service should remain status quo until next year. Semmens stated he would talk with the bank to see if they want to extend their service contract for another year. In his last discussions, the bank stated they could extend the contract for about the same cost. Bookey added, he was concerned the city was ,,,.------.,,getting locked into using one bank. K-2. Attorney -- Attorney Graves reported the following: • Another disbursement ($328,839.40) was made from the Bankruptcy Court in the Inlet Woods matter. • In April of 2002, the council tracked their interest rate on land sales to be the discount rate plus five percent. In January, 2003, the Federal Reserve Bank issued a new regulation which changed how to calculate the discount interest rate which raised it from %% to 21/4%, which raised the city's interest rate by 11/2 %, making it 5%% to 7%% on sales. KENAI CITY COUNCIL MEETING � FEBRUARY 5, 2003 PAGE 16 • He attended the Brown Fields Redevelopment Seminar which dealt more with the Millennium Square property instead of the old waste site. The regulation fundamentally changed the environmental law to make it more attractive for purchasers to buy contaminated property and develop it. Through an exception called the bonafide prospective purchaser, someone can buy contaminated land and not have environmental liability for the property. He added, the former owner and the polluter may have the liability, but not the new purchaser. Graves noted, the State did not adopt the changes to its environmental law, but DEC has an administrative program that does the same thing. Because of the changes in the law, one can buy environmental insurance to protect the purchaser from liability. He added, a lot of communities are doing this because they recognize what they are getting out of the deal is not the sale price, but the development of the property. Because solid waste site facilities have different rules, he called the statewide director of the solid waste site program and he and La Shot will meet with the director to develop guidelines for the potential development of the Section 36 property. Graves stated he will also do a written report to council and the Parks & Recreation Commission after developing specific guidelines. Porter requested Graves write a memorandum clarifying the parameters for council attending meetings, etc. Graves stated he would do a synopsis of the Open Meetings Act with examples. K-3. City Clerk -- Clerk Freas reported the following: • The DCED population count was included in the packet; the new count is 7,166. She asked if council wanted to appeal the count. Council had no objections to the count. • A letter from the Kenai Alternative High School requesting a donation toward their graduation ceremony was included in the packet. Freas noted, council included $300 in the Legislative budget for this purpose. Council directed the donation be made. • Thanked the council for the employee appreciation dinner and the Kenai Fire Department employees who were involved in the preparation of the special presentation made at the dinner. ITEM L: DISCUSSION L-1, Citizens Tim Navarre, 608 Ponderosa, Kenai -- Navarre noted the following: • Thanked council for the passage of the resolution regarding the oil and gas sales. • In regard to the vacation of the easement, when he was on the Borough Assembly, he didn't give rights -of -way away either. KENAI CITY COUNCIL MEETING FEBRUARY 5, 2003 PAGE 17 • Suggested council reconsider the amending of the level of competitive bidding for construction or maintenance projects which council had failed earlier in the meeting. He noted, the Borough had raised their level to $50,000. Raising the limit would actually save money and time. L-2. Council Bookey -- No comments. Swarner -- • Referred to Information Item No. 2, drafts of a letter to President Bush or a resolution requesting first responder funding be disbursed. Council directed the letter be sent. • Stated she attended the Library visioning session and was pleased with the attendance and the suggestions made. Moore -- No comments. Porter -- • Asked if the joint letters with the Soldotna Council had been sent. It was reported draft letters were prepared and forwarded to the Soldotna City Manager. The City Manager was out of town and upon his return, the letters would be finalized. • Noted she spoke with the Airport Manager Cronkhite regarding vehicles left in the terminal parking lot with flat tires, etc. Cronkhite reported the vehicles to which Porter was referring had current long-term permits. She contacted the owner of the vehicle with the flat tire and was told they would be repairing the tires, etc. when they were next in Kenai. It was also suggested the permits include a clause about keeping vehicles in drivable condition while parked at the terminal. • Asked if the city could work with car dealers to encourage them not to park their vehicles on the grass on the right-of-ways as it kills the grass. Bannock -- No comments. Jackman -- No comments Williams -- Referring the memorandum from the Corps added to the agenda, he noted analysis #2 mentioned "...will continue to develop..." indicating long term; and analysis #3 stated, "...a draft reconnaissance report..." also indicates long term. Williams stated his concern the project will be delayed further and added, he would bring it to the attention of Senator Stevens during his visit with him in March. EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at approximately 11: 46 p.m. Minu es transc ibed d prepared by: BY CCU C, Carol L. Freas, ity Clerk �� D CL