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HomeMy WebLinkAbout2002-05-15 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING MAY 15, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z Zwww.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 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. Mike Siegfreid -- Central Peninsula General Hospital/Survey Update ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1954-2002 -- Amending the Employee Classification List at KMC 23.50.010(c) to Include Chief Animal Control Officer and Assistant Animal Control Officer and KMC 25.50.010(d) to Include a Buildings Maintenance Lead Technician, a Water and Sewer Lead Operator, and to Change the Class Titles of Water and Sewer and Sewer Treatment Classifications. 2. Ordinance No. 1955-2002 -- Increasing Estimated Revenues and Appropriations by $16,000 in the General Fund to Implement a Plan to Better Control the Personal Use Fishery Impacts on the South Side of the Kenai River. ITEM D: 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 -1- b. Kenai Convention 8. Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce TTRM Re MTNTTTF..0 1. *Regular Meeting of May 1, 2002. 2. *Board of Adjustment Hearing of May 1, 2002. 3. *Budget Work Session of April 9, 2002. 4. *Budget Work Session of April 10, 2002. 5. *Budget Work Session of April 11, 2002. 6. *Budget Work Session of April 16, 2002. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1956-2002 -- Amending Title 14 to Establish an Education Zone and Change Several Sections of the Kenai Municipal Code to g p Include the New Education Zone as Noted on Attachment A. Code Sections Affected are: 14.20.030(a); 14.20.075(b); 14.20.220(c); 14.22.010 (Land Use Table); 14.24.010; and 14.25.020. 4. *Ordinance No. 1957-2002 -- Amending KMC 14.20.154(a)(2) to Eliminate the 150 Feet Buffer Between the Surface Extraction of Natural Resources and the Adjoining Property if the Adjoining Property is Also a Permitted Site for the Surface Extraction of Natural Resources. 5. Ordinance No. 1958-2002 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2002 and Ending June 30, 2003. ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: DISCUSSION Citizens (five minutes) -2- 2. Council EXECUTIVE SESSION - None Scheduled ITEM L: ADJOURNMENT -3- KENAI CITY COUNCIL REGULAR MEETING MAY 15, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z Z 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 7:04 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: Jackman, Williams, Bookey, Swarner, Moore, Porter and Bannock. A- 3 . AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-2, Representatives from Central Peninsula Habitat for Humanity -- Thank you for city participation and support. ADD AT: D-7d, Kenai Chamber of Commerce -- Thank -you letter for city's involvement in "Hooked on Kenai" promotion. MOTION: Councilwoman Swarner MOVED to approve the agenda as amended and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA There were no changes to the consent agenda. MOTION: Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. � ITEM B: SCHEDULED PUBLIC COMMENTS KENAI CITY COUNCIL MEETING MINUTES MAY 152 2002 PAGE 2 Williams noted the Hospital representatives were not yet available to make their presentation and it would be held later in the meeting. B-2. Representatives from Central Peninsula Habitat for Humanity - Thank you for city participation and support. Mike Dimmick, President, and Susan Hatch, Executive Director, of Central Peninsula Habitat for Humanity, thanked the City for its support through the last ten years. Dimmick stated Central Peninsula Habitat for Humanity recently completed its tenth year on the Peninsula and its tenth house. In recognition of assistance by the City of Kenai, Hatch presented Mayor John Williams with a plaque made by local artist Libby Berezin. Hatch also presented a plaque to Jack La Shot, Public Works and Planning 8v Zoning Manager, and expressed her gratitude for his help over the years. Mayor Williams said he had worked on three Habitat houses himself in the past. He stated he saw the value of their efforts and that he believed Habitat to be a worthwhile organization. ITEM C: PUBLIC HEARINGS C-10 Ordinance No. 1954-2002 -- Amending the Employee Classification List at KMC 23.50.010(c) to Include Chief Animal Control Officer and Assistant Animal Control Officer and KMC 25.50.010(d) to Include a Buildings Maintenance Lead Technician, a Water and Sewer Lead Operator, and to Change the Class Titles of Water and Sewer and Sewer Treatment Classifications. MOTION! Councilwoman Swarner MOVED for adoption of Ordinance No. 1954-2002 and Councilman Moore SECONDED the motion. There were no public comments. Councilwoman Swarner asked if putting the Animal Control Officers into the Public Safety category would allow them to retire early as the police do and Chief Morris answered no. VOTE: Williams Yes Moore Yes Jackman Yes -Bookey Yes Porter Yes Swarner Yes Bannock Yes KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 3 MOTION PASSED UNANIMOUSLY. C-2, Ordinance No. 1955-2002 -- Increasing Estimated Revenues and Appropriations by $16,000 in the General Fund to Implement a Plan to Better Control the Personal Use Fishery Impacts on the South Side of the Kenai River. MOTION: Councilwoman Porter MOVED to adopt Ordinance No. 1955-2002 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Moore asked if there would be signage to control traffic on the south side of the river. Snow replied there would be. Porter asked for a review of the site visit. Snow reported Lt. Chuck Kopp, Bob Frates, Director of Parks & Recreation, Mr. Perrizo (the owner of the adjacent property) , Robert Ruffner of the Kenai Water Shed Forum, and three representatives of Alaska Fish and Game met at the site and viewed the area very early that morning and had talked about sign placement, problems Mr. Perrizo might experience, and parking. Frates reported their thinking was to permit people to go beyond the barricaded area but only to pick up their fish and their gear. People would not be allowed to park there. Snow noted, the fee would be $5.00 per vehicle, which was the same amount charged on the north side as well as an "iron ranger" to collect the money and personnel to check for the tags on the windshields. Discussion followed about increasing the rate to $10.00 on the south side or possibly on both sides. Bookey asked Attorney Graves if the City had the right to keep people from driving on certain areas of the beach. Graves responded, "There is a right to access to the beach below the high tide mark, but communities have authority to restrict vehicular traffic to the beach if there are safety or ecological reasons." The discussion that followed established the following about the south side beach project: • Fish & Game and ATV through the Borough would be available for enforcement; • Fish & Game had grants available and would help with the initial start- up costs, which include costs for signs, fences and the iron ranger; KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 4 • The costs were mostly one-time costs; • Port -A -Potties would be available; • The policy for trash would be the same as last year, "You pack it in you pack it out," and there would be signage to that effect; • The parking fee would be determined by Administration and reviewed by Council next year; and • Fish & Game put in writing its offer of $5,000 toward the project and they have offered personnel to support the project. VOTE: Williams Yes Moore Yes Jackman Yes Bookey No Porter Yes Swarner Yes Bannock Yes MOTION PASSED, ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging - Councilwoman Swarner reported the last meeting was on May 2 and the minutes were in the packet. She noted the Mystery Dinner was moved to September. Swarner added, the next Council on Aging meeting falls on July 4 and asked if Council objected to canceling the meeting. There were no objections. D-29 Airport Commission - Councilwoman Jackman reported the minutes of the last meeting were in the packet. She said the Commission was working on a survey that was provided in draft form by the Airport Manager. A copy of the draft would be available at the air fair, and the completed survey would be in the next packet. The fair would be held on June 8 and would include a barbecue, she said. Jackman said the Commission also made a suggestion to name a right-of-way "Gee Bee" after an aircraft. A discussion followed regarding the recent increase in airfares by ERA. D-39 Harbor Commission - Councilman Bookey reported the last meeting was held on May 6. He noted, the dock opened on May 1, which was later than the year before due to weather conditions, new bumpers would be installed at the next low tide, and several pilings must be replaced due to ice damage. Bookey also reported the Commission discussed the dock losing $70,000 a year and council's investigating whether to close the dock or privatize it. He noted, a suggestion KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 5 from the Commission was to check out the competitive rates for launch fees. The number of launches last year was an estimated 3,000. Mayor Williams asked if there had been any more discussion from the contractors on the bluff erosion project in the last couple of weeks. Bookey responded he was not aware of any. Snow stated Kornelis told her the previous week he had been in contact with the Corps of Engineers who was trying to contract with Petratrovich, Nottingham, & Drage, Inc. (PND) through Tryck, Nyman & Hayes. She said Dave Casey of the Corps of Engineers met with agency personnel who would involve him closely in the project. Mayor Williams said he noticed an article in the Anchorage Daily News that talked about Kenai River water samples. Because there was an "impending crisis" on the Kenai River, Williams suggested there could be some monies available to the City to investigate the pollution, where it is coming from and what can be done about it. Williams suggested the City investigate the possibility of funding. D-4. Library Commission - Councilman Moore reported the next meeting would be held on June 6. He noted, the summer reading program was scheduled for June 1 through July 8, with this year's theme being "Good books are good friends." The Friends of the Library have scheduled their annual book sale for June 13 for pre - sale and June 14 and 15 for the general public. Moore also reported over 7,800 people used the Library in April and the Commission was continuing to work on their grant options, building a database of information. D-5. Parks & Recreation Commission - Councilwoman Porter reported the following from the Commission's last meeting: The Commission discussed the Section 36 development of the baseball, softball, BMX, skateboard and soccer fields. They recommended Council accept the proposed Section 36 plan with the revisions the Commission made. She added, Council now needed to decide whether to take action on the plan and decide where to get the money. The Commission discussed the Boys 8. Girls Club acceptance of the summer recreation program from the City of Kenai. They were unanimous in their suggestion Council transfer the program to the Boys & Girls Club effective January 1, 2003. The Commission recommended the skateboard park be moved near the multi -purpose facility. Porter asked Bob Frates for signage for the skateboard park and Frates said the signage was small and was located in the kiosk by the pop machine. D-6. Planning & Zoning Commission - Councilman Bannock reported: • The Commission granted a variance permit at 1609 Aliak Drive; KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 6 • They passed a resolution establishing an education zone; it will be up for a public hearing at the June 5 Council meeting; • They approved a code change, which would eliminate the 150' buffer between the subsurface extraction of natural resources and the adjoining properties if the adjoining property is also a permitted site for the subsurface extraction of natural resources (e.g. gravel pits) . That item will be up for public hearing at the June 5 Council meeting, as well; and, • The Commission approved a home occupation permit for a day care facility in the VIP Subdivision. Mayor Williams asked by what authority Administration gave the gravel pit owners a timeline of five years in which to come into compliance. Snow stated the Code states the Administration shall give a reasonable amount of time for compliance and Attorney Graves answered by comparing the situation to someone receiving a warning about a zoning violation and being given 30 days to comply. "It's prosecutorial discretion," he said. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Councilwoman Swarner reported the last meetingwas on M 14 " May She said this year's theme was United We Stand, featuring red, white and blue flowers, and the major planting day was scheduled for May 25. Swarner noted, a plaque at the Leif Hansen Memorial Park had been heavily vandalized and needed to be replaced. The cost would be $200 and was covered by the current budget. Marilyn Dimmick invited "any and all volunteers" to the planting day and barbeque on May 25 at 10:00 a.m. She said the Committee hoped to get all City flowerbeds planted in one day. The barbeque would be provided by the Kenai Fire Department, Swarner said. D-7b. Kenai Convention & Visitors Bureau Board - Councilman Bookey said they met on May 13 and discussed the Arctic Winter Games. D-7c. Alaska Municipal League Report - Mayor Williams noted the Legislature was extended by two days for the first time in Alaska's history. D-7d. Kenai Chamber of Commerce - Mayor Williams pointed out the letter in the packet thanking the City for the space at the Kenai Airport for the "Hooked on Kenai" banners. Councilwoman Porter asked when the City's banners would be hung and Frates stated it would be three to four weeks before the banners would be received. BREAK TAKEN: 8:00 P.M. KENAI CITY COUNCIL MEETING MINUTES MAY 151 2002 PAGE '7 BACK TO ORDER: 8:20 Peme TTEM B B-1. Mike Siegfreid -- Central Peninsula General Hospital/Survey Update Mayor Williams introduced Jay Siegfreid from the Central Peninsula General Hospital (CPGH), Bonnie Nichols from the Public Relations Department, Dr. Kelley and Diana Zirul from the hospital board, and Dr. Zirul. Dr. Kelley gave a sketch of the hospital services available in Kenai that have changed in recent years. He noted a survey was conducted to learn how people in the area feel about CPGH and asking what services people would like to see added. This "Wish list" had been used to some degree in strategic planning by the Board, he reported. Kelley told Council the CPGH and the Kenai Health Center now have the building in Kenai on Barnacle Way, which provides services by the Health Center, CPGH and Serenity House. Those services include: • Imaging: mammography, bone densitometry, EKG's, x-rays, lab services; Rotating specialty clinics; 0 Physical therapy, occupational therapy; cardiac rehabilitation being planned; • Serenity House (for substance abuse) is located on K Beach it is a residency program and is working well, even though financially a loss; and Community education: monthly dinner meetings at Paradisos to provide information to the public. Of the 415 people surveyed, there was a lot of support for expanding medical services in the community, Kelley explained. The survey responses were summarized in a handout provided in Council's packet. The hospital Board, Kelley said, has nearly completed a long process of examining the health care needs of the community with regards to the physical space. Surveys had been obtained from consultants and consumers, employees and physicians which will then be used to develop a plan. Williams asked Kelley if a cost had been determined yet that would appear on the ballot. Kelley noted a ballpark figure might be $60 million however, they had not come to a final conclusion as to what form it would take and a timeline has not been set. Williams noted Council was interested in attracting seniors and youth to Kenai. He mentioned programs currently being proposed for Kenai through the COP program: juvenile treatment center and the juvenile detention facility. Williams also said he KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 8 hopes to see dialysis services offered on the Peninsula. Kelley said dialysis is extremely expensive, but the Board is aware of the need. ITEM E: MINUTES E-1., Regular Meeting of May 1, 2002 -- Approved by consent agenda. E-2. Board of Adjustment Hearing of May 1, 2002 -- Approved by consent agenda. E-3. Budget Work Session of April 9, 2002 -- Approved by consent agenda. E-4. Budget Work Session of April 10, 2002 -- Approved by consent agenda. E-5. Budget Work Session of April 11, 2002 -- Approved by consent agenda. E-6. Budget Work Session of April 16, 2002 -- Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION! Councilwoman Swarner MOVED to pay the bills and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-2, Purchase Orders Exceeding $2,500 MOTION. Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and asked for unanimous consent. Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED, H-5, Ordinance No. 1958-2002 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2002 and Ending June 30, 2003. MOTION! Councilwoman Swarner MOVED to introduce Ordinance No. 1958-2002 and Councilwoman Jackman SECONDED the motion. Councilman Bookey reminded the audience this ordinance was not up for adoption, only for introduction and discussion. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 9 (Begin verbatim) Bannock: Thank you, Mr. Mayor. I have just a couple of comments I'd like to make and then I've prepared a small worksheet that I'd like to pass out to go along with my comments. The ordinance that's before us tonight is in the form and fashion that we left it roughly one week ago. We spent five different nights together, getting to this point. Who knows how much time and effort the Administration collectively has put into it. But I don't truly believe that when we left the meeting last Tuesday night that anybody was really happy about all of it. So I spent the greater part of last week trying to establish just a plan that will, to use the words of the good Senator Halford, a plan that makes anybody real happy but nobody real unhappy has got to be a real good plan. I don't know if that's a wise proverb or not, but I'd like to attempt something. And so if I may pass a couple of these out. (Handed out paper.) The first part of it is a simple review of where we are at right now. The general fund as originally proposed, the way our budget book was written, showed an $8,649,317 expenditure. After five budget sessions, we whittled that all the way down to $8,643,481. That's against a projected revenue of $7.9 million that shows a projected budget deficit of $653,058. Now, the next line the projected lapse 4%--that $332,392 is from the budget book. After reviewing for about the 84th time this afternoon, that number is actually incorrect now. That's the number that came out of the draft book, but it represents a 4% lapse of the very top line, so that number is off 4% of the $67000) OK? But in the big picture, pretty inconsequential. That leaves us with this ordinance in front of us tonight, Ordinance 1958-2002, with a net negative deficiency of $330,666. OK? Could I get an agreement from the Finance manager that those numbers look right. Semmens: They're close —very close. Bannock: OK. Thank you for that. Within a million! OK. Here we go. Now you can turn it over because here is the plan. My plan reads simply like this. I propose that we set the general fund spending limit from the adjustment value after five work sessions of $8,643,481 to a not -to -exceed value of $8,483,48 1. This represents a net decrease of $165,000, or roughly one-half of the originally proposed deficit. The Administration is charged with making the necessary adjustments with the following items for consideration: no mill rate increase; no negative adjustments to life, health or safety issues; and then the big one the measurement of success will be how many residents cannot see or feel the difference. Now a really spiteful Administration would say, "Fine. Well lay off the police department." Or, "Fine. Well cut the budget. Well eliminate (unintelligible)." That would drastically fail test number three. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 10 The numbers would then be the column that you see right there. The general fund amended, our projected revenue does not change. That puts us in the tank $500,003. The amended lapse figure goes back in at $325,000. Thus, we have an adjustment deficit amount of $177,300. I tried to weigh some of the comments that were made at our final meeting. There were comments from, "We don't want to have any red money, red ink;" "We can handle $300,000 worth of red ink;" "We want the Administration to do the very best that they can" all kinds of different comments. So what I have proposed with this, and then if the Mayor is willing, I will offer it up as an amendment in just a. couple of moments, is a plan that challenges the Administration to do just that. I did give a copy of this to Ms. Snow yesterday. She came to work today, so either she thinks it has no chance or she thinks it is a doable plan. One or the other. To speak philosophically to it, our red ink is not because of a tax problem. Our red ink comes from one major place. It comes from Mr. Semmens' inability to get us 10% return on our money. (laughter) Just kidding. But it does, in fact, come from the fact that our interest revenues are down. Nothing, no other categories are down. No other spending limits are up. Approximately 2-1/2 years ago, it might have even been three, the former City Manager put together a plan that he showed the majority of this particular Council here tonight that projected a mill rate increase next year. While we have had some unforeseen changes, particularly in our interest revenue, from that day to this day, it is still my opinion that that shortfall can be made up with cuts and that that shortfall can be made up with cuts that pass test number three —how many residents cannot see or feel the difference. Now, clearly, the seven of us couldn't do it. Any four of us could not come together with what those cuts may or may not be. But I would submit to you that I truly feel that our Administration can, if they are given that direction. And in closing, I told the City Manager when I brought this to her that, quite frankly, she brought this upon herself because of a comment that she made. She said, "You know what? You're the Council. If you tell us we have to have a zero budget, a no deficiency budget, we can create it. It'll hurt, but we can create it." I'm not interested in doing that. With that being said, Mr. Mayor, I would propose an amendment to Ordinance 1958- 2002 that the item marked general fund $8,643,481 be changed to read $8,483,48 1. Williams: There is an amendment on the floor that (unintelligible) the amendment. It does need a second. Bookey: For discussion, I'll second. Williams: It's been seconded for discussion, for discussion purposes. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 11 Bookey: These are awful close to the numbers that I proposed at our last meeting. I think this is a very doable, acceptable way to handle this. I've said it almost through the whole budget. We've argued and fought and twisted and turned on this budget. I believe that probably this is the only real, true, easy way and not even an easy way but a true way to get through this. So, I would accept this and I would support this. Bannock: I'm sorry, I do need to come back to one thing. I did find one more error. In the top line of my paragraph where it says, "I propose we set the general fund spending limit," please strike "spending." It should not say "spending limit." It just says "limit" because it is not my intent to we had a good discussion in regards to the Administration being able to raise money so forgive me for not changing that. It reads in the ordinance as a general fund and the amendment is to be the same. Strike "spending." Thank you. Moore: Let's look into the future a little bit. If we were to do this, cut this general fund limit to the amount as Mr. Bannock proposes, and then next year raise the mill rate, as Mr. Bannock proposes or is in the plan what does that do to our, to next year's budget? Do we have a surplus? We won't have a surplus. If we raise the mill rate by one mill, that's $375,000-1 think we're in the black with this same budget. So what? Do we say, "Thanks, we're in the black," or (pause) (unintelligible) the general fund or I mean ...? I'm just looking, you know this is going to set a precedence for what happens next year so we need to think ahead. Bookey: But I don't see us setting a precedent for going into the black because our projected budget deficit right now without lapse is $663,000. Depending on what our lapse is —I mean, lapse can go either way on us. Moore: I was including the lapse. I'm looking at the bottom line, the $177,300 in the red. Swarner: Well, I too had much soul searching after this last budget session and I came up with a few things that I thought we could do kind of without (unintelligible), or what ever. And I looked at the budget in the budget sessions as a person in a family or business situation. If you didn't have as much money coming in, what do you do in your personal lives? Personally, I would cut back on things or put decisions to purchase things on hold. Whether that would be your contingency to cut or just take part of that? Travel, is all the travel really necessary? And furnishings? There's been talk about remodeling upstairs. Our snacks? You know, if you have less money coming in, you cut out snacks. I mean that's something that hits us personally. Um, any computer purchases be delayed unless absolutely necessary. And then I also put down, and this would be city-wide, any advertisements in the newspaper, let's try to be more creative if —I know there are some legal requirements but is there some way that we can change them? Be less wordy? Smaller size? So we don't have to pay so KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 12 much in advertisement. You know, whether it's job searches, legal notices, whatever. But that's how I looked at the budget, too. Jackman: I'm still not real comfortable with a mill rate increase at this time. I feel like we should be able to trim some of the fat, as I've been saying, and get it down as far as we can go. Well, while I have to agree with Councilwoman Swarner that those are great ideas and I definitely do agree with her, those are areas that we can cut. I think there are many more areas that we can cut, many more suggestions or ideas that some of the other Council does have. I am very comfortable with Councilmans Bannock's proposal. So, I am willing to support this proposal. Williams: All right. My turn. Now we go to the other side of the house. I'm not comfortable with it. I haven't been comfortable with it. The only way ... Let me start by saying that in going back over the budget for the last six years, as we all know, we have been deficit spending. Deficit spending on the budget in fact that the Administration brings to us, knowing full well that we had some pretty good reserves to back us up in case things went wrong. I'm no longer willing to start a budget season out in the red. I'm no longer willing to look at deficit spending. And there's only one way to not deficit spend and that is to take some big chunks out of this budget as I had said last week. I laid out $170,000 in really mean cuts. I didn't quite get to $330,000, and I'm really not willing to do that. I don't want to see those mean cuts made. Now, deficit spending is not good now and Councilman Moore talked about what happens in the future. If we deficit spend this year, we will wind up deficit spending next year because I will guarantee you that the question as to whether or not we raise the mill rate will be before us next year and we will be running over it just like we are now. Now I proposed last week taking this amount of cuts, and I mean pure cuts, not saying to the Administration, you know, "Go around, look and see what you can do about cutting this" but taking cuts and adding half a mill. I'd also propose taking no cuts and adding a full mill. Now during the week I had asked the Finance department to prepare a little historical record of the mill rate versus revenue from other sources in this community and if you 11 turn the page to J 1 to the second page I'd like to go over some of these with you just to show you what brings me to some of my conclusions. Right now, if we continue to deficit spend and draw from the kitty, we are in exactly the same position that the State of Alaska is in with regards to deficit spending and using its constitutional budget reserve. The constitutional budget reserve is going down, and our reserve is going down. Now if you'll look at this little schedule here, I draw your attention to 1980-1976 in which our mill rate within the City of Kenai was 16.75 mills in the City of Kenai 1976. At that time, we were drawing $319,8 10 in municipal assistance and revenue sharing from the State of Alaska; we had the KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 13 highest mill rate in our history at 16.75. I then bring your attention to - 1985 when our mill rate went down to 1.9 mills and our municipal assistance and revenue sharing from the State of Alaska went to $1,680,000. Now that was the lowest mill rate we ever had and we were solely and totally dependent upon the State to run our city to the tune of $1,680,000. This entire community for many, many years all the way from 1981 through 1989 literally was accepting money to run our entire city from the state. The highest point amounted to approximately $235 for every man, woman and child in the City of Kenai. It was an augment to your permanent fund and everything else the State was giving you. Now I draw your attention to the very top figure, year 2002 with a 3.5 mill rate, municipal assistance and revenue sharing at $303,000. Now if you look at that $303,000 and our 3.5 mill rate, you compare it to our $319,000 and 16.75 mill rate in 1976, you will find that we are no where near where we were in those days when we were paying our own way in the community. Fortunately for us, we have some heavy reserves and we've had a lot of heavy interest (unintelligible) because of the millions that were given to us by municipal assistance and revenue sharing. My point to make here is that two things: We're going to start paying our own way more and more or we're going to start doing more with the things that this community is giving to its people —this city is giving to its people in the form of services. Either we can pay for them what we want or we pay for what we don't need, and we don't pay for what we don't have. In other words, we're not going to keep giving money away. I'm no longer interested in going into a deficit spending mode. I am interested the budget the way that the Administration prepared it because I've been through that budget, and it is slim. As to Councilwoman Jackman's comment about fat, I'd like to have you show me where the fat is. Now on several occasions I have said, generally and publicly, don't come to me and tell me "cut the budget." Come to me and tell me "take this out of the budget." Show me where you're going to cut the budget. Now I've been through the budget. I know where there are some things to cut. I'm not interested in cutting them. I'm not interested in cutting them. There are some things there, but I don't like to hear the same old rhetoric of cut the budget, cut the budget. Show me where to cut the budget. So with that, a plan that does not include a balanced budget, totally black, if it takes a mill rate increase is not acceptable to me. Bannock: Thank you. That's a good challenge, so I'm glad I dropped this off with the City Manager yesterday. So I would ask her in regards to this plan that I proposed, can that be done? I'll put her on the spot. Snow: I can say on the spot that it can be done. It's not impossible to do. It can certainly be done. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 14 Williams: Will it be acceptable to this total Council when those cuts be made? That's the next question. Bannock: That's why clause number three is written right there. Williams: Some of these cuts that the City manager will have to make will not be acceptable to me. Porter: I think that all of us have been really frustrated with. the budget process. However, I don't feel like the five nights that I spent were wasted. I think we came up with a lot of suggestions of ways that we might want to go in the future. So I choose not to look at them as wasted. I do think that there are things in this budget that we could take a little bit of bite out of. I don't like —I actually was kind of thinking that this was a great idea but the more I see the red, the more I don't like that. I don't do that in my own home. And I have received absolutely no comments from anybody in the general public except for one regarding not raising the mill rate. I did have an individual, very well known in this community, that said to me that they had read what I had said in the paper that we needed to have a balanced budget that if it meant raising the mill rate a portion that we needed to be in the black. And that's just kind of how I feel about it. I just think that that's responsible. We've done spending and dipping into the savings account for many, many years and where do you stop that? Williams: Let me make one other comment with regards to paying our own way. I was here when we didn't have any money. I was also here when we didn't have a City Hall; we didn't have a police department; we didn't have a fire department; we didn't have a library; we didn't have an animal control shelter; we didn't have a visitors' center; we didn't have senior housing. I was here when we didn't have any of that stuff. I was paying big taxes. I paid just as much taxes as anybody else except the ones that owned multi -million dollar buildings. I chose to stick it out. I didn't leave town, cut and run, like a lot of other people did. I stayed here. I invested my money here, and I built here. I'm still here. All right? We built all of these things because these are the things that we wanted; these are the things the community wanted. Now, everybody that suffered through all of those years and paid for all of these things and built all of these things managed to do it. Now, these things are still here; these things still need to be operated; they still need to be run, and the community is growing and still needs them even more than they did then. So, therefore, those that are here today need to take the responsibility of paying for the operation of this community the way it is today. Just like we paid to build this community and paid to run this community all the last 30 years that I have been here and most of you have been here. That's my other point to make. I had a guy come up to me —I had two people come up to me and complain about the mill rate. One of them I'll tell you publicly, Ron KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 15 Dolchok came to me and he didn't say, "Don't raise my taxes." He said, "Oh, you're gonna raise my taxes." And I said, "Yes I am, Ron, if I have my way about it." The other gentleman, I don't know what his name is, but he said to me today and I just, I caught it, it really amazed me. He sat down next to me and he said, "I just moved here, and you want to raise my taxes." How long has he been here? Two years. Yes, you just moved to this community because you obviously like this community and like what's here. "I just moved here. You're gonna raise my taxes." Well, if you want to live here and enjoy these amenities that we have, these amenities are gonna have to be paid for. And I'm not willing to pay for them with red ink. That's my other point to make. Thank you. Bookey: That's amazing. I've been here ten years, and we've done deficit spending every year I've been here. You've supported that every year. Williams: It's time to stop. Bookey: I tried to stop this red ink three years ago and I couldn't get this Council to even discuss it. Williams: Yup, you did. Bookey: And I am not willing to put the public in what I would consider a disadvantage on this budget because these seven members of this Council have spent over $3 million on a hockey rink out of the general fund budget reserves. If that's the case, shame on all of us. We should have been saving that money. I'm not saying that was a wrong move, but doggone it, John, it's not fair. We have had this budget proposed to us and sat down with a previous City Manager and we all discussed and looked at putting this ahead for the following budget —a budget increase of one mill. Everybody I have talked to in the last three years, I've indicated to them in all good faith that that's what I would intend to do and hope to maintain that. And there's no reason why we cannot spend another $177,000 in red ink this year for one more year to give the advantage to go on down the road. Porter: Basically, I just have one other thing I want to say. The general public was not aware that we were even going to discuss this tonight. Therefore, I guess we can go on notice as saying if our general public has a real big issue on this, which I haven't witnessed and it certainly has been in the newspaper front page numerous times then I guess they have a chance to speak to that at our next council meeting when it is scheduled for public hearing. Maybe that is when we should address it. And I also understand that yes we did have from what I understand, I don't think I was on the Council you did have some advice to hold the mill rate until next year. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 16 We also had some advice that the city employees deserved a raise this year. We're not addressing that. Williams: That's true. Now, let me remind you of one other issue that will go hand in hand with the budget, we must set the mill rate at the next budget. Well do that by resolution, is that correct? If we do not set the mill rate ... (unknown): Next "meeting." Williams: Next meeting. If we do not set the mill rate, it will be automatically set for us. If we do not advise the borough of a change, the mill rate will be exactly as it is now. They will go into it with exactly the same. The ordinance says that we must have this budget prepared and ready for passage a minimum of 20 days before July 1, before it takes effect. Twenty days. If we do it on the 5th, that gives us 25 days. So. The Administration will bring a resolution to us next week setting the mill rate. What shall we advise the Administration to do with that resolution. Bookey: I'm status quo-3 1/2. Williams: Are you willing to put that into a motion? Swarner: We have a motion already on the table. Williams: That's true. Bannock: (unintelligible) to the motion. The motion is specific to the dollar amount of the general fund. It is not specific to the mill rate; it's specific to the general fund amount. However, my formula that I presented to you is based on just that so it doesn't mean that you couldn't pass my amendment and raise the mill rate, but the program that I presented to you is assuming a 3.5 mill rate. Williams: We have motion on the floor to amend the budget as presented by Councilman Bannock, so we can vote on the amendment. We cannot, of course, vote on the ordinance, but we can vote on the amendment. Is there any further discussion? Swarner: I have a question, I guess. Councilman Bannock, did you have do you want to see where the cuts would be prior to voting on the budget at the next council meeting? Bannock: I did not ask the Administration for it. I did not have a plan for it. One of the reasons why I came with this theory, with no disrespect for the comments made by Mrs. Porter it's kind of sick but I didn't mind sittingthrough those g live meetings, KENAI CITY COUNCIL MEETING MINUTES MAY 152 2002 PAGE 17 either, but the fact of the matter is we couldn't get it done. There were a lot of things identified. The Mayor identified several large cuts. The fact of the matter is though, collectively we couldn't do it, or we chose not to do it. I've given the responsibility I've offered up the responsibility to the City Manager. The City Manager says it can be done. I'm confident in that, and I told her, with no disrespect, this third paragraph here, this third line, a very spiteful person would do something that would cause our chambers to be packed with people saying, "We want our streets plowed" or something like that. I've got no concerns that that's going to take place. I'm confident in the abilities of our City Manager. If we're not confident in the abilities of our City Manager, we should move to replace her. Swarner: Ok. So then I guess that I assume then that you do not, that you just want to see the total number changed by the next council meeting, and then after the budget goes into effect the first of July, it would be more addressed by the City Manager. Bannock: By the City Manager, not by the Council. I'm done going through line item by line item. Done with that for this year. Williams: And let me say, I can say unequivocally that if the City Manager brings some of the cuts that are going to be required under your plan or any plan that requires cutting $330,000... Bannock: Incorrect, Sir. That's not correct. If you go to the middle paragraph, this represents a net decrease of $165,000 or roughly one-half of the proposal. Now what's important to remember about that that's not all cuts because it can be made up with other revenue other than mill rate. So, it is incumbent upon the Administration to shrink the red ink. Williams: But, now let me finish. Under your plan or any plan that cuts either $177,300 or $330,000, I can guarantee that this Council is not going to be happy with some of those cuts and is going to wind up putting some of them back. Now you're going to put them back because you'll have people here who are saying, "I want that back." I won't believe that there are any cuts that can be made that big that can balance this budget Bannock: I didn't say balance it. Williams: It's my turn, all right? That can balance this budget and bring it into the black, as I'm proposing, because I don't want to see any red ink at all, without some major cuts that are gonna be felt and not liked by this community. Bannock: Forgive me for interrupting you, but you were speaking to the plan, and my plan does not balance it. My plan is specific to $165,000 of cuts and/or increases in KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 18 something other than the mill rate. And we spent a tremendous amount of time discussing increases. Again, those increases are made by the City Manager, ratified by the Council. Now, I truly doubt, Sir, that she's gonna come with $165,000 worth of fee increases. I truly doubt that. However, I truly feel that in the combination of increased fees and cutting, we can satisfy this three-part test. Williams: Futher comment? (No comments.) All right. The question is on the amendment as proposed by Councilman Bannock. Clerk, call the roll. VOTE ON AMENDMENT: Williams No Moore No Jackman Yes Bookey Yes Porter No* Swarner Yes Bannock Yes *Porter: I'm voting no, but I'm only voting no not because I like all of this because I just don't like the black —I mean the red. MOTION PASSED. Williams: All right. The amendment carries four to three. The Administration will bring a budget to us next week that reflects the numbers as shown on Councilman Bannock's paper. Now, that's just the amendment. Now we have to vote on the introduction. Bannock: Ask for unanimous consent. Williams: Unanimous consent has been asked for. Are there any objections? Swarner: Don't we have to have a roll call for introduction? Williams: I don't think so. No. Graves: That's why it can be put on the consent agenda. For the final passage, it can't be unanimous consent... Williams: From the chair, I'll object. I want to vote on this issue. Moore: Just curious, since this is kind of uncharted waters for me, what happens if we fail to introduce the ordinance? Graves: Then, if you wanted to have a budget on time, you might have to try to pass it in one meeting with the process of second reading. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 19 Bookey: I can assure that won't pass because it only takes one objection to have it even happen. That's doomed before we even start. VOTE ON AMENDED MAIN MOTION: Williams No Moore Yes Jackman Yes Bookey Yes Porter Yes Swarner Yes Bannock Yes MOTION PASSED, Williams: All right. The budget is introduced. Now, the Administration will bring back a budget next week reflecting these numbers as shown by Councilman Bannock. The one thing that I hope would come out of this is that the Administration doesn't try to adjust the budget by reshaping the 4% roll back the lapse portion of the budget. I hope we don't tamper with that because that's not exactly an interesting portion. It will be an interesting meeting next week. Now, I would ask the Council once again to go out and talk to the constituents because I, like most of you, haven't had an outcry from the general public on this issue. In fact, I was on the radio today; I've been on the radio in the past; I've been quoted in the newspaper; and I haven't had anybody calling my house and beating down my door and coming to my office about this mill rate increase. I would ask you to go and poll your constituents. (End verbatim) ITEM I: REPORT OF THE MAYOR Williams asked Council how they would feel about building a website around the question, "What shall we do with Millennium Square?" with the intent to gather information from the public about what they would like to see. Bannock suggested asking the Clarion to pose the question on their website for the City and Williams asked the Clarion reporter present to ask if this would be possible. ITEM J: ADMINISTRATION REPORTS J-1. City Manager -Snow reported the City's summer recreation program costs the City money to operate. The four summer -hires and equipment cost approximately $23,000. Up to 200 children participate in the program. Other options in Kenai are private day care (averaging $3.00/hour), the Boys &Girls Club (averaging $.80 / hour), and the City of Kenai Program (free). She proposed $1.00/hour, which would be $120 per session per child with additional children in one family paying $100 per child. Discussion followed regarding families who couldn't afford to pay. KENAI CITY COUNCIL MEETING MINUTES MAY 15, 2002 PAGE 20 Council left the decision to Administration, asking that families who can't pay not be turned away. J-2. Attorney - Attorney Graves advised Council he would be out of the office all of next week. J-3. City Clerk - Clerk Freas advised she would be attending a conference from May 17 through May 27. ITEM K: DISCUSSION K-1® Citizens John Steinbeck -- Steinbeck stated businesses in Kenai could not take a mill increase and added, he would speak to this at the next council meeting. Bob Peters -- Peters stated his agreement with the Mayor and that he would like to see a sales tax and that Council should raise the mill rate by a "mill or two." He stated Council should make the budget cuts and not the City Manager. He suggested Council put more money in the bank. K-2 ® Council - Bookey -- No comments. Swarner -- Swarner noted the following: • The lettering on the blue highway signs is too small to be seen very far away and suggested larger print be used. • Suggested a painting, by a local artist, at the Visitors Center art show be purchased and hung in the City Clerk's office. She added, the painting costs $2,000 and requested council's consideration of the purchase. Moore -- No comments. Porter -- Porter noted the following: • She agreed with Peters that the citizens of Kenai do have a good deal as the mill rate in Homer is 5.5 mills and the mill rate in Soldotna is 4.25. • Asked Council when an executive session could be scheduled to address pay increases for the exempt employees. Porter proposed it be on the next agenda. Bannock -- requested Administration send flowers and a card to the family of Sally Bailie who passed away last week. KENAI CITY COUNCIL MEETING MINUTES � MAY 159 2002 PAGE 21 Jackman -- No comments. Williams -- No comments. EXECUTIVE SESSION - None Scheduled ITEM L: ADJOURNMENT The meeting adjourned at 10:14 p.m. Mi tes trans 'be d prepared by: Shery adilla, Acting City Clerk