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HomeMy WebLinkAbout2003-04-02 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 2, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt w-ww.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. ELECTION OF COUNCIL MEMBER 4. Oath of Office -- New Council Member 5. Agenda Approval 6. Consent Agenda *All items listed with an asterisk (*) were considered routine and non- controversial by the council and would be approved by one motion. There would be no separate discussion of these items unless a council member so requests, in which case the item would 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. Jack Brown -- Arctic Winter Games ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. Ordinance No. 1996-2003 -- Increasing Estimated Revenues and Appropriations by $315,975 in the General Fund to Transfer Inlet Woods Settlement Proceeds to the Debt Service Fund. 2. Continuation of Public Hearing/ Resolution No. 2003-11 -- Directing the Continuation of the Project Entitled "McCollum/Aliak Paving L.I.D." and Designating What Improvements were to be Included in This Project. 3. Continuance of Public Hearing/Resolution No. 2003-16 -- Increasing the Water and Sewer Rates. 4. Resolution No. 2003-19 -- Transferring $8,000 in the Airport Land System Revenue Fund for Overtime. - 1- 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 ITEM F: MINUTES 1. *Minutes from February 20, 2003 Work Session. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS ITEM I: 1. 2. 3. 4. 5. 6. ITEM J: ITEM K: 1. 2. 3. NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 Discussion: Set date for budget work session. Discussion: Dip net parking and boat launch fee increase. *Ordinance 1999-2003 -- Amending KMC by Adding Chapter 12.40 that Eliminates Smoking in Public Places and Workplaces Except Private Clubs. *Ordinance 2000-2003 -- Increasing the Council on Aging Title III Fund by $50,000 for the Purchase of Food. REPORT OF THE MAYOR ADMINISTRATION REPORTS City Manager Attorney City Clerk -2- ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT -3- ITEM A: KENAI CITY COUNCIL - REGULAR MEETING APRIL 2, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt w wcr.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING CALL TO ORDER MINITTRS Mayor Williams called the meeting to order at approximately 7:03 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Bookey, Swarner, Moore, Porter, Jackman and Williams. A-3, ELECTION OF COUNCIL MEMBER Mayor Williams noted that pre-printed ballots were available for the election of the new council member and explained the rules. Members would cast a ballot then pass them to the clerk who then record the ballot and advise accordingly. The members would continue to cast ballots until four (4) successful votes were cast for a single candidate who would then be declared the new Council member and sworn in. Williams noted the successful candidate would fill the seat until the election in October where the seat would stand for election for atwo-year term. Attorney Graves added, the Clerk would read off the candidates vote totals, she would not read who voted for whom, although the ballots would be retained per Code. Councilman Moore disclosed a financial relationship with candidate Blaine Gilman. Graves stated he did not see a financial conflict of interest, as the vote would not affect Moore financially. The five candidates for the open seat were Hal Smalley, Barry Eldridge, Carol Brenckle, John "Ozzie" Osborne, and Blaine Gilman. Williams called for the first vote; council voted and the Clerk read the results. BALLOT # 1 KENAI CITY COUNCIL MEETING APRI L 2 2003 03 PAGE 2 OF 20 Hal Smalley 1 Barry Eldridge 1 Carol Brenckle 1 John "Ozzie" Osborne 0 Blaine Gilman 3 BALLOT # 2 Hal Smalley 1 Barry Eldridge 0 Carol Brenckle 2 John `Ozzie" Osborne 0 Blaine Gilman 3 BALLOT # 3 Hal Smalley 1 Barry Eldridge 0 Carol Brenckle 2 John "Ozzie" Osborne 0 Blaine Gilman 3 BALLOT # 4 Hal Smalley 1 Barry Eldridge 0 Carol Brenckle 2 John "Ozzie" Osborne 0 Blaine Gilman 3 Williams requested an at -ease to consult with the Attorney. Williams advised, if the next vote came up the same with the previous three, he would ask council to consider postponing the vote until the next meeting unless council wants to do more than one more vote. Councilwoman Porter and Councilwoman Swarner indicated they would like the vote to continue. Councilman Bookey asked the attorney about the legal ramifications and Graves stated, without four votes another member could not be appointed and didn't think the Court would make the council appoint someone if a deadlock was reached. Graves added, he advised the Mayor the voting could continue or be postponed until the next meeting if council thought that would help the situation. Moore indicated he would vote one more time and if it was still deadlocked then the vote should be postponed until the next meeting. Jackman stated if the next vote was the same then the top three in deadlock should be re -interviewed and vote KENAI CITY COUNCIL MEETING APRIL 2 2003 PAGE 3 OF 20 again at another meeting. Porter stated she was not in favor of another interview process since all candidates already went through the process. Jackman disagreed, stating that council members were required to sit before their constituents in more than one meeting. Williams asked Jackman why she wasn't at the interview work session and Jackman replied she had a family emergency. Council agreed to vote one more time. BALLOT #5 Hal Smalley 0 Barry Eldridge 0 Carol Brenckle 3 John "Ozzie" Osborne 0 Blaine Gilman 3 Tie Williams requested an at -ease so additional ballots could be prepared. At -ease at 7:26. Meeting resumed at 7:35. BALLOT # 6 Hal Smalley 0 Barry Eldridge 0 Carol Brenckle 3 John "Ozzie" Osborne 0 Blaine Gilman 3 Tie Moore suggested the vote be postponed until the next meeting. After discussion the general consensus was to continue. BALLOT #8 Hal Smalley 0 Barry Eldridge 0 Carol Brenckle 3 John "Ozzie" Osborne 0 Blaine Gilman 3 Tie KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 4 OF 20 Williams requested a recess while the two candidates prepared to make a 5-minute presentation. At -ease at 7:36 p.m. Meeting resumed at 7:52 p.m. Williams stated, the code requires council cast a vote until the majority have chosen a candidate and it does not allow for the toss of a coin. Williams requested the two candidates give a presentation and begin in alphabetical order. Carol Brenckle introduced herself. She stated, Kenai was at a crossroads with some very difficult decisions and that much analysis, thought and research was required before doing so. Brenckle stated, this council had always been very careful in terms of evaluating the issues before it and it was going to become even more difficult as the issues become more complex. Brenckle said she believed her education and training would assist her in assisting the City of Kenai and its residents. Blaine Gilman introduced himself. Gilman stated the key issue for the City of Kenai at this time was the budget and he knew he had different views that many of the members have. He said he believed in a balanced budget but knew it would not be possible this year because of the hole left by K-Mart. Gilman stated he wanted to balance the budget without reducing too many services and wouldn't be afraid of raising the mill rate but at the same time there were legitimate government services within the city that could be reduced or perhaps eliminated. Gilman stated, during his interview there were three primary issues with the budget needing to be discussed which included what level of a mill rate increase the city can bear, how much can the city afford to pay out of the reserve, and how much can be cut from city government and still have a city serving the needs of the citizens. Gilman indicated his favorite city service was the library, and his family used it often. Gilman stated he wanted to work with the council and felt he had a lot to add. Gilman added, he wasn't pessimistic about the future of Kenai and had a vision that in 15 years the city would continue to be a vibrant economy and he welcomed the support. The Mayor called for another vote of the Council BALLOT # 8 Hal Smalley 0 Barry Eldridge 0 Carol Brenckle 3 John "Ozzie" Osborne 0 Blaine Gilman 3 Tie KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 5 OF 20 Williams suggested the balloting be postponed until the next meeting on April 16, 2003. With no member voting against the suggestion, the election would take place at the April 16th meeting. It was decided all five names would remain on the ballot. No objections. No further discussion. A-4. Oath of Office - New Council Member - Postponed until April 16, 2003. A-5, Agenda Approval MOTION: Councilman Bookey MOVED to approve the agenda and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. A-6, Consent Agenda MOTTON Councilman Bookey MOVED to approve the consent agenda and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Jack Brown -- Arctic Winter Games Jack Brown, P.O. Box 7073, Nikiski, Alaska - Brown began by thanking Williams for his work on the proposal for the Arctic Winter Games and reported the following: • Kenai Peninsula Borough has been awarded the Arctic Winter Games. • Mayor Dale Bagley, the Borough Attorney and Jack Brown were going through the contract at this time and would present it to the International Committee for their review this coming weekend. • The enclosure of the Kenai ice rink created some interest and concern. Broom stated the amendment to the contract basically says the enclosure of the ice rink, the change room and shower facility would either be temporary for the purpose of the Games or permanent. Brown wasn't sure if the International Committee would buy off on that amendment. He, Tim Navarre and Bill Popp were planning a trip to Washington, D.C. to request funding for the various projects. • April 16th was the official day of the signing ceremony. The intent was to have it at the Kenai Central High School at 2:00 p.m. The President of the Arctic Winter Games International Committee would attend. Senator Murkowski would be in KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 6 OF 20 town that day and would be invited to attend the ceremony. This would be a historic event where all the communities on the Peninsula came together to work for a public purpose. Moore asked who would sign the contract and Brown responded, Mayor Bagley would. Discussion took place on the location of the signing, and Brown stated it was voted unanimously it be held at Kenai Central High School because of their hard work. Brown added, at the end of school there would be an all -school assembly with the invited guests to join. Porter reminded council April 16thwas Government Day for many of the KCHS students. Mayor Williams provided the schedule of events for that day. Brown thanked Councilwoman Swarner and the City of Kenai for their help with the "Kenai Wild" program and the efforts in having it displayed at Harvard University. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS Assemblywoman Betty Glick reported the following based on activities at the April 1, 2003 Assembly meeting: • Mayor Williams made a presentation regarding the Challenger Learning Center and what some of the potential problems were and what the Borough can do to help. • Chief Shirley Gifford made a presentation on the Local Emergency Planning Commission and the efforts to develop a plan to prepare for any type of disaster. It was possible other local entities would be asked to host a presentation in the future. • The Assembly approved the purchase of four lots in the City of Soldotna for a Central Emergency Services facility. Mayor Williams noted Mayor Bagley expressed some displeasure over the fact the City of Kenai had not made a proposal nor had any communication with him regarding the issue. The City Manager checked the record and noted there had been correspondence via e-mail to Mayor Bagley but the city had received no reply. Williams added, the City Manager would contact the Mayor on April 3rd and would prepare a proposal. The Assembly would receive copies. Glick acknowledged the Assembly and the Mayor did receive a letter from the City of Kenai inviting them to the tour at the PRISM facility. • The negotiated lease for a 30-acre parcel of land was approved for Aardvark Pumping. Glick acknowledged the letter of support from the City of Kenai. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 7 OF 20 • The Assembly approved the ordinance to clarify the emergency services communication system and to revise the membership of the El 1 Board. • The Assembly approved the contract for the design to build room - remodeling services at CPGH. • The Assembly approved reallocating $1,890,474 for work on Soldotna Middle School classroom renovation, Nanwalek roof drainage improvements, Skyview High School water tank, Ninilchik pool repairs and Sears Elementary fire alarm system. Although the use of these unexpended bond funds had been approved by the Assembly it still needed to be approved by the School Board. • There had been some funding from the Department of Community and Economic Development dealing with Safe Communities. This would be utilized by the different emergency services personnel. • An ordinance was introduced accepting and appropriating a grant from the Alaska Division of Homeland Security in the amount of $1-4,000 for developing community emergency response teams. This ordinance would be up for public hearing on May 6tn. • Ordinance 2002-19-37 was introduced accepting and appropriating a grant in the amount of $27,937 from the Alaska Division of Homeland Security for updating the Borough's disaster emergency operations plan. • A resolution was introduced supporting SB-136 to raise the current optional residential tax exemption from $10,000 to $50,000. • A resolution was introduced by Assemblyman Paul Fischer to amend the sales tax code to exempt a portion of gasoline and diesel fuels from sales tax. This issue had been brought up in 1999 but it didn't go anywhere. It was Fischer's intent to put the tax on the gas before the State and Federal taxes were added. The ordinance would come up for consideration on May 20th so the cities could consider the potential impacts. The Assembly requested updated figures to include the Administrative costs. • A previous agenda had a proposal for another service area in the Lowell Point area and the ballot composition stated the mill levy would be no more than 1.75, which implied that those who vote on the issue were actually the ones who set the mill levy. The reality of the situation was, even though a service area was created with a specific mill levy, the Assembly could raise the mill levy during budgetary proceedings if it was perceived that additional money was needed to provide services. The ordinance simply clarified mill levies for service areas would be set by the Assembly during a budgetary process. • The Alaska Municipal League sent out a communication regarding a request for State gas revenue sharing letters. There was $750,000 in grants available through the Assistance to the Fire Fighters Grant Program and interested parties were to contact FEMA. Williams confirmed the communication had been received. 0 Glick thanked the city for hosting the tour/ meeting on April 1, 2003. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 8 OF 20 Williams asked if Glick was familiar with HB-91 that had to do with the Public Employee Retirement System. Glick responded she was, but the Assembly had taken no position on the bill. Williams asked council for permission to write a letter of objection to the Legislature regarding HB-91. Williams also requested Finance Director Semmens give an explanation of what the affect of HB-91 would be. Semmens reported HB-91 adds five years of health insurance and benefits to peace officers who were in the PERS system and this would increase the cost of the employer's contribution. Semmens added, the peace officers' rate of 7.5% did not change, but the employers' rate covers that cost. Initially the rate was projected to be .18%. The fiscal note that PERS attached to the bill set that rate but it also only stated the cost to the State of Alaska, it did not include the cost to municipalities so the legislators were not necessarily aware of the cost involved. Semmens also noted the PERS Board announced the PERS rate would increase by five percent in 2005 and another five percent in 2006, so it was surprising they would support HB-91 knowing those increases were imminent. Semmens did not feel the city should incur those additional expenses for PERS benefits. Semmens explained how the health benefits were applied to the retirement. After a general discussion, the council agreed to have Williams write a letter objecting to HB-91. Assemblymember Glick reiterated, the AML was requesting letters regarding the State gas tax revenues sharing. ITEM D: PUBLIC HEARINGS D-1, Ordinance No. 1996-2003 -- Increasing Estimated Revenues and Appropriations by $315,975 in the General Fund to Transfer Inlet Woods Settlement Proceeds to the Debt Service Fund. MOTION Councilman Bookey MOVED to adopt Ordinance 1996-2003 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: -Bookey Yes Swarner Yes Moore Yes Porter Yes Jackman Yes Williams Yes KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 9 OF 20 MOTION PASSED UNANIMOUSLY. D-2. Continuation of Public Hearing/Resolution No. 2003-11 -- Directing the Continuation of the Project Entitled "McCollum/Aliak Paving L.I.D." and Designating What Improvements were to be Included in This Project. MOTION: Councilwoman Porter MOVED to adopt Resolution 2003-11 Councilman Bookey SECONDED the motion. Public Works Manager Kornelis explained the pre -engineering cost estimate noting the City of Kenai would pay 75% ($251,250) and the property owners would pay 25% or $83,700. Kornelis also explained the various options and, using the drawing included in the packet, explained Options 1 through 4. Swarner asked about the Kenai Lions Club lot, noting it was a very small lot and with the cost of the paving, the current assessment goes from $700.00 to $10,045. Williams stated it was his intent to ask the council to eliminate the Kenai Lions Club lot from the discussion and for the city to assume the cost of the lot. Williams explained the unusable lot was originally donated to the Lions Club and it was only used for a sign. Williams added, the Kenai Lions Club had done a tremendous amount of community service work. MOTION: Councilwoman Porter MOVED that the City assume the cost of the Kenai Lions Club lot. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. Kornelis continued to explain the four options. Kornelis pointed out, once the project was bid there could be a vast difference in figures. Bookey stated the resolution was postponed twice already and the right-of-way issues made him nervous. Bookey asked if the survey costs were going to be split 7 5 / 2 5 so the public knows they were going to g g be assessed for that part as well. Kornelis replied, the entire project was part of the assessment. Bookey continued, there were a lot of questions needing answers and he was not comfortable in making any decisions at this time. Moore stated this was a very confusing L.I.D. and each time the issue was discussed, more questions were raised, including the actual square footage of each lot until it was surveyed. Kornelis stated the only people who would be assessed were those who KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 10 OF 20 would benefit from the project, but Lot 53 accesses Spur Highway directly, so it was not included. Pat Faulkenburg, Kenai, Alaska, expressed concern the Quades would lose a lot of property because they don't have a very big lot. Kornelis again explained the drawing and a short discussion took place regarding the various lots, the rights -of -way and who may be affected. Williams provided a history of the lots in the area. Porter asked how the square footage on the lots could be obtained without a lot of expense. Kornelis replied, he felt the numbers were fairly accurate. Kornelis continued, the proper way to get the exact square footage was to hire a certified surveyor and the cost would probably be under $1,000.00. Moore stated he felt there was more work to do, but the decision on square footage or linear footage needed to be made at this meeting. Williams commented, once the understanding of the total cost was made, then the issue would come back for allocation and everyone would have the option then to object and stop the project. Bookey asked what would happen if the money was appropriated for the first phase and the number was not acceptable to the public. Williams stated the project would be stopped. Kornelis pointed out the Council can stop the project, not the public. Swarner asked if the expenditures for the survey would be taken out of the road improvement fund and Williams replied it would. Porter called for question on Resolution 2003-11 and Kornelis reminded council the resolution, as it was written, was for Option 2. Williams allowed more public hearing and Porter withdrew her call for question. Janine Espy, 403 McCollum Drive, Kenai, Alaska - Ms. Espy stated she reviewed the new options of the assessments and thanked the city for the work in preparing them. Espy continued, she and her husband originally were in favor of the linear foot option but after review of the others, she encouraged council to consider Option 4. Espy noted, although she would incur more cost, it would most fair to the neighbors. Espy added, she was concerned with how this issue was being handled as it seemed to have pitted neighbors against each other. Barbara Waters, 311 Kulula Place, Kenai, Alaska - Waters stated she was speaking on behalf of the elders of the Grace Brethren Church. Waters stated she also appreciated all the work done on the L.I.D. She said the Church had also asked for linear feet in the past, which would be Option #2. However, after review and concurring with many of the neighbors, she had been authorized to suggest that Option #4 be accepted. Waters added, speeding on McCollum was terrible already and KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 11 OF 20 she felt it would get worse with a paved road. Since they are a church and a neighborhood with several small children, they were requesting signage placed indicating there were children present. Waters also asked for additional police coverage. Waters reiterated they strongly encouraged Option #4. Williams stated it went without question proper signage would be installed. Kornelis stated "Children Present" was not a legal sign, but pedestrian and stop signs could be used. JoAn Buzzell, 11-3 Aliak Drive, Kenai, Alaska - Buzzell stated she had also been in favor of the linear footage but was willing to go along with Option #4 if that was what the neighbors prefer. Buzzell added, speeding signs would be required on McCollum and Aliak as kids tear through there at unreasonable speeds at all hours of the day and night. No further public comment. Porter asked if all neighbors saw the various options. After a general discussion, it was unsure whether all neighbors were aware of all options. AMENDED MOTION: Councilwoman Porter MOVED to amend Resolution 2003-11 to change it to Option #4. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, VOTE ON MAIN MOTION: -Bookey Yes Swarner Yes Moore Yes Porter I Yes I Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. BREAK TAKEN: 9:30 P.M. BACK TO ORDER: 9:40 P.M. D-3. Continuance of Public Hearing/ Resolution No. 2003-16 -- Increasing the Water and Sewer Rates. MOTION KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 12 OF 20 Councilwoman Jackman MOVED for continuation of the public hearing for Resolution 2003-16 and Councilwoman Swarner SECONDED the motion. Williams pointed out the packet included the rate studies, finance plans and a report by consultant CH2M Hill. Williams explained the resolution called for a 15% increase in water rates and a 17.8% increase in sewer rates in an effort to assure adequate resources for the water and sewer fund for FY-2004. Williams pointed out there had not been a raise in the water and sewer rates for ten years. Williams added, with inflation, the age of the plant and equipment, and the additional well, the enterprise funds were slowly depleted. Williams explained the enterprise funds. There were no public comments. Bookey stated he received a call from an individual who owns two car washes in town who said a 30 to a 35% rate increase would be very detrimental. This individual was out of town so asked Bookey to request the increases be done in smaller increments, such as ten percent on water and 12.5% on sewer for the next two years then look at it again. Bookey stated he would not support the resolution as it was and felt the city should have kept better track of the funds and not let it get to this point. Porter stated she didn't think it was time for such a large increase and it should be gradually eased into. Moore asked what Administration would have done without having the study. Semmens replied, in the 2003 budget transmittal letter he advised of the water and sewer study and at that time expected substantial increase to the rates. Semmens added, this proposed increase should not come as a surprise as he had talked about it for at least a year. Semmens explained some of the increases with cost, population and improvements and noted this was all done without any rate increases. However, $1.2 million was taken out of the fund for various projects and now the Fund doesn't have adequate resources. Semmens also mentioned the regulation changes to water standards so money would need to be spent to treat the water in the city. Semmens pointed out the consultant recommended a 30 to 35% increase, but it appeared the consensus was to raise the rates in stages. Semmens encouraged council to not make the stages so small that they wouldn't generate the money necessary to do the capital projects when they arise. Semmens stated, if his projections were correct, the fund would end up with a $350,000 balance at the end of 2004. Moore asked if this included the projected lapse and Semmens answered, there was no lapse in the General Fund. The budget was not slashed in the water and sewer fund. Semmens continued, it was cut back as much as thought prudent and noted this was totally separate from the General Fund. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 13 OF 20 Swarner asked why Administration didn't ask for the increase two years ago. Semmens replied, the rate increases were never going to be popular but the main reason it wasn't brought forward two years ago was there was a fund balance of $1.2 million. Semmens explained what was expended from fund balance. Swarner thought better planning should have taken place. Jackman asked about increasing the rates by ten percent over a five-year period. Semmens answered, some was better than none; but with the capital project schedule, the money may not be available for them. Williams stated there had been a tremendous amount of work in the systems over the past ten years but never raised the water and sewer rates. Williams added, he appreciated the business owners being concerned about cost; but if the city raises the rates, the business owners can raise their rates as well. Williams continued, the city was suffering from the same issues of increase in insurance rates, health costs, etc. Williams commended Administration for coming back with a 15 and 17% increase. Bookey stated everybody in the community was in the same boat so when rates were raised in one area it was passed down the line; there was a point of no return and that's what several of the business people were concerned about. Bookey added, in the past everything was done with cash and that doesn't necessarily have to continue with this project as there were bonding issues that could take place. Williams, in response to Bookey's comments, stated there were changes all across the board but at some point in time council would have to make a decision without regard to the wishes of those who want everything as cheaply as they could possibly get it. Williams added, the council shouldn't shirk their responsibility in public health and safety. Y Bookey stated it was difficult for him to put more on the backs of the public at this time and he didn't see that it should happen at this point. John Mellish, Kenai, Alaska - Mellish reported he had commercial property and a personal home within the City of Kenai and agreed a good water and sewer system was needed. Mellish said personally he'd say go for the 30 to 35% and he would be forced to raise his rates and that would be difficult for his tenants. Mellish continued, you couldn't run the water and sewer bare bones then later have to find money for repairs and maintenance so he thought the rates should be increased now and not later. MOTION TO AMEND: Councilwoman Swarner MOVED to amend Resolution No. 2003-16 to increase water by 10% and sewer by 12%. Councilman Bookey SECONDED the motion. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 14 OF 20 VOTE ON AMENDED MOTION: Bookey Yes Swarner Yes Moore Yes Porter Yes Jackman Ye 1 Williams No AMENDMENT PASSED. Moore stated he didn't want the council to be viewed as cutting corners in lieu of safety and noted it appeared the rates were increased so the projects could be funded by cash. Semmens responded, the study said if debt financing was used to fund a portion of the projects then it was recommended the rates be increased 30 and 35%. Semmens continued, if it was going to be done with cash then the recommendation was to increase the rates 90 and 100%, so it was not the intent to do the projects with cash. Williams provided a report on the proposed operating budget of the Water and Sewer Fund. VOTE ON MAIN MOTION: Bookey Yes Swarner Yes Moore Yes Porter Yes Jackman Yes Williams No MOTION PASSED, D-4, Resolution No. 2003-19 -- Transferring $8,000 in the Airport Land System Revenue Fund for Overtime. MOTION: Councilwoman Swarner MOVED to approve Resolution No. 2003-19 and requested UNANIMOUS CONSENT. Council member Jackman SECONDED the motion. There was no public or council comments. VOTE: There were no objections. SO ORDERED. ITEM E: COMMISSION / COMMITTEE REPORTS KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 15 OF 20 E-1. Council on Aging -- Councilwoman Swarner reported the a meeting was scheduled at 10:00 a.m. on April 3rd at the Senior Center. There was no quorum at the March meeting. E-2. Airport Commission -- Councilwoman Jackman reported the following: • A joint work session was scheduled for April 10, 2003. Williams stated there would not be a joint work session on April 23 the FAA representatives would not be able to attend. The regular meeting would take place at its regular time on April loth but would be held in the City Clerk's conference room. Jackman asked if the parking issue was on the agenda again and the Airport Manager replied, it would not be on the agenda as it was uncertain whether there would be a quorum. E-3. Harbor Commission -- Councilman Bookey reported the next meeting was scheduled for Monday, April 7th in the City Clerk's Conference room. Kornelis added there was a very light agenda. E-4. Library Commission -- Council member Moore reported the following: • New computers were being received at the library from the Gates Foundation. The Library Director added, additional material was still being received and training in Anchorage was just completed. It was also noted an open house would be scheduled for late summer or early fall to demonstrate the new computer systems. • The Library Commission discussed their concerns about the budget and subsequent cuts. • Emily DeForest announced the Library received a grant from Conoco/Phillips to fund the kick-off of Turn -Off TV week, which would start on April 21 st E-5. Parks & Recreation Commission -- Councilwoman Porter reported the Commission would meet on April 3, 2003. E-6. Planning & Zoning Commission -- Councilman Bookey reported the following: • The Planning and Zoning Commission met on March 26th; it was very short and brief meeting. • He announced he would be out of town for the next Planning and Zoning meeting and Councilwoman Porter agreed to attend the meeting. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- Councilwoman Swarner reported the next regularly scheduled meeting was April 8, 2003 at 7:00 p.m. The Committee would be considering various flowers as planting season was near. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 16 OF 20 E-7b, Kenai Convention & Visitors Bureau Board -- No report. Discussion took place on the renovations being made at the Visitors Center and since the city owns the building the plans and associated costs need to be reported. E-7c. Alaska Municipal League Report -- Councilwoman Swarner reported she would be attending the conference in Juneau on April 23 and 24, 2003. E-7d. Kenai Chamber of Commerce -- Mayor Williams announced there was a new director of the Chamber. ITEM F. F-1. agenda. ITEM I: I-1. MINUTES Minutes from February 20, 2003 Work Session -- Approved by consent CORRESPONDENCE -- None OLD BUSINESS -- None NEW BUSINESS Bills to be Paid, Bills to be Ratified MOTION: Councilman Bookey MOVED to pay the bills and Councilman Moore SECONDED the motion. A brief discussion took place on the material in the packet. VOTE: There were no objections. SO ORDERED, I-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Bookey MOVED to pay the purchase orders and Councilwoman Swarner SECONDED the motion. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 17 OF 20 Moore asked the Airport Manager if the invoice was designed to take care of the north side of the fence. Cronkhite confirmed it was. VOTE: There were no objections. SO ORDERED, I-3. Discussion: Set date for budget work session. Council reviewed the information included in the packet and the current work session dates were confirmed to be April 7, April 10 and April 15. Moore requested, when the departments make their presentations, they be specific about their cuts. Semmens responded each council member received a copy of the proposed budget and he encouraged them to read the transmittal letter first. He said the letter was a summary of the major events in the budget and it would address many of the questions, but the department heads would have details. Swarner expressed concern a detailed proposal from the Boys and Girls Club hadn't been presented and there was a work session scheduled for Monday, April 7th. Williams responded the proposal would be available on Monday night. Swarner stated all she had seen was a letter and City Manager Snow indicated that was all that had been received, adding the Boys and Girls Club would do a power point presentation on Monday night. Swarner asked if they would bring samples of how other communities handle the situation and Snow stated a list of those communities was available. Swarner stated she would like to see brochures from other communities. Williams pointed out the work session schedule indicated additional meetings could be scheduled as needed and requested that copies of the budget be made available to the five council candidates and other interested individuals. E-4. Discussion: Dip net parking and boat launch fee increase. MOTION: Councilman Moore MOVED to approve the dip net parking and boat launch fee increase and Councilwoman Porter SECONDED the motion. Porter stated she thought State Parks should be asked for money as well. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 18 OF 20 E-50 *Ordinance 1999-2003 -- Amending KMC by Adding Chapter 12.40 that Eliminates Smoking in Public Places and Workplaces Except Private Clubs. Introduced by consent agenda. E-6. *Ordinance 2000-2003 -- Increasing the Council on Aging Title III Fund by $50,000 for the Purchase of Food. Introduced by consent agenda. ITEM J: REPORT OF THE MAYOR J-1, Mayor Williams reported the following: • KPICC would meet on Friday, April 4. They wanted to know if anyone was going to attend the reception and asked for RSVP's. • Judge Link's memorial service was scheduled for Saturday at 1:00 p.m. at the courthouse followed by a wake at Paradisos. • Steve Horn resigned from the Challenger Learning Center to take a position with CIRCAC. • A letter dated March 3, 2003 was received from the Division of Elections regarding the change in polling places. The letter explains some of the problems the Division had encountered in changing the polling places. • Williams drew attention to the Fax Alert regarding gas tax. ITEM K: ADMINISTRATION REPORTS K-1, City Manager Snow reported the following: • She expressed appreciation to those involved in putting together the EOC tours and the luncheon. • Chief Kopp had been reviewing the fees at the Animal Control Shelter with the Animal Control Officer and there would be a recommendation to increase the adoption fees. It was noted the fees have not been increased in over 12 years and the local veterinarians have to absorb many of the costs in sterilizing the animals. • Fish 8v Game participated with the Corps and other agencies the previous week in a project area tour. It was reported the environmental and sedimentation analyses scheduled for late March and early April would be delayed by a couple of weeks because of weather. It was also noted, time for the Corps to provide another written report and Snow would request and reiterate the need for funding information KENAI CITY COUNCIL MEETING APRIL 2, 2003 PAGE 19 OF 20 as well. A representative was willing to come to a meeting to give a presentation when Council feels it necessary. K-2. City Attorney -- Attorney Graves reported the next meeting packet would have ordinances recommending the adoption of the international fire and building codes. Also presented would be an ordinance adopting a different uniform bail schedule. K-3. City Clerk -- Acting City Clerk Padilla reported the following: • Clerk Freas would return to work on Monday, April 7th. • The work session on Monday, April 7th was originally scheduled for 7:00 p.m. and had been changed to 6:00 p.m. Semmens stated, while listening to the Borough Assembly meeting, he heard Mr. Moss state the Assembly hadn't heard anything from the cities on the gas tax issue. Semmens continued, he wasn't sure if the statement was made in an effort to alert the city to the fact this gas tax, which was estimated to be $42,000 previously, was now going to be a lot higher. Semmens stated this was a bigger issue for the City of Kenai than it was for the Borough. Semmens added, a statement was also made the Assembly was looking for consistency in the taxing by the cities and the Borough. The Borough now had requested Senator Wagoner to sponsor a $50,000 residency exemption. Semmens stated it could not be done in the City of Kenai and there seems to be great concern by council of unfairly taxing the business sector and that's exactly what a $50,000 exemption would do. It would take away from the homeowner and put it on the business owner. Semmens explained some of the problems should SB-136 was authorized. Discussion took place regarding SB-136 and the subsequent problems. Assemblywoman Glick announced the bill was heard in committee and another hearing was scheduled. Glick recommended council members check with LIO for the time. Swarner announced a constituent teleconference was scheduled for 6:00 p.m. at the LIO. Bookey asked what it would cost the city and Semmens didn't have the information available. ITEM L: DISCUSSION L-1. Citizens -- No comments. L-29 Council Bookey -- No comments. Swarner -- Reported the following: KENAI CITY COUNCIL MEETING APRIL 2 2003 PAGE 20 OF 20 • She was invited by KDLL to be in a coffee table discussion on April 9th to talk about the smoking ordinance. • Invited the Council to an open house at the Food Bank on April 4, 2003 from 4:00 p.m. to 6:00 p.m. and stated if anyone needed to do volunteer hours the Food Bank would accept them. Moore -- Thanked Padilla for filling in for the City Clerk. Porter -- No comments. Jackman -- No comments. EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at 11:10 p.m. Minutes submitted by: Sheryl r adilla, Acting City Clerk APPROVED BY couNcn: Ad x INN" DATE W CLERK