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HomeMy WebLinkAbout2002-06-05 Council Minutes1 AGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 51 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /www.cl*.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B ITEM C: SCHEDULED PUBLIC COMMENTS (10 minutes) PUBLIC HEARINGS 1. Ordinance No. 1956-2002 -- Amending Title 14 to Establish an Education Zone and Change Several Sections of the Kenai Municipal Code to 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. 2. 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. 3. Ordinance No. 1958-2002 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2002 and Ending June 30, 2003. 4. Resolution No. 2002-28 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 2, 2002 and ending June 30, 2003. 5. Resolution No. 2002-29 -- Transferring $10,000 in the General Fund Non -Departmental Department for Purchase of a Copier. 6. Resolution No. 2002-30 -- Transferring $32,000 in the Police Department for the Purchase of a Patrol Vehicle. -1- 7. Resolution No. 2002-31 -- Directing the Continuation of the Project Entitled Pillars Local Improvement District and Designating What Improvements are to be Included in this Project. 8. Resolution No. 2002-32 -- Awarding the Bid to Hanson's Roofing for Kenai Wastewater Treatment Plant Roof Repairs - May 2002 for the Total Amount of $34,750. 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 b. Kenai Convention & Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce *Regular Meeting of May 15, 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. 1959-2002 -- Increasing Estimated Revenues and Appropriations by $57,255.85 in the Wellhouse No. 4 Capital Project for the Balance Remaining on a State Grant. 4. Approval -- Consent to Assignment for Security/John P. and Karin L. Gensel, d/b/a Creative Childcare LTD. 5. Discussion -- Local Improvement District -- Basin View Subdivision (Dolchok Lane, Kim-N-Ang Court and Cub Court)/Report to Council. ITEM I: REPORT OF THE MAYOR -2- ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - Personnel issues. ITEM L: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING JUNE 5, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http:Z Zwww.cl*.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2, ROLL CALL Roll was taken by the City Clerk. Present were: Bookey, Swarner, Moore, Porter, Bannock, Jackman, and Williams. A-3, AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-1, David Larson -- Removal of slash left from land clearing. ADD TO: I-1, Report of the Mayor -- Kenai Peninsula visitor map advertisement. Councilman Bannock also requested C-4 (mill rate setting) be heard before C-3 (budget ordinance) in order to see how much revenue the city would have before passing the budget. 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 Mayor Williams noted the following request: INCLUDE THE FOLLOWING CHANGE TO THE MAY 159 2002 COUNCIL MEETING MINUTES WITH THE APPROVAL MOTION: Page 3, Paragraph beginning with "Councilman Moore," third line... "Snow reported [SHE HAD MET AT THE SITE WITH] Lt. Kopp, Bob Frates, Director of Parks 8s Recreation, Mr. Perrizo (the owner of the KENAI CITY COUNCIL MEETING JUNE 52 2002 PAGE 2 adjacent property), Robert Ruffner of the Kenai Water Shed Forum, and three representatives of Alaska Fish and Game[.] met at the site [SNOW EXPLAINED THEY HAD] and viewed the area very early that morning and had talked about sign placement, problems Mr. Perrizo might experience, and parking. MOTION: Councilwoman Swarner MOVED for approval of the consent agenda as amended and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-19 David Larson -- Removal of slash left from land clearing. Larson reported his address as 1217 Lilac Lane, Kenai and stated his concern and protest for the slash pile left to rot behind his property. He noted the pile was approximately 12 feet high and 50 feet long. Larson noted, the stumps and slash was on private property, is a fire hazard, and was created last summer when the property owners were clearing the property. Larson read the following letter into the record: May 13, 2002 Kenai City Council To Whom It May Concern: We, the undersigned, protest the huge pile of slash that was piled up behind our house last year and then left to rot. This gigantic mess is not only an eyesore but also a major fire hazard. We work hard to keep our home and property neat and clean, and would like to request that whomever is responsible for this be required to clean it up immediately. Thank you. Sincerely, s/ Glynna L. McGarry s/John E. McGarry 1215 Lilac Lane Kenai, AK 99611 (907)283-6251 Larson continued, there is also a house across the street from his home which has been burned out for over a year which he thought would have been removed by now. KENAI CITY COUNCIL MEETING DUNE 512002 PAGE 3 He noted, he was told by the assessor that until those items would be cleaned up, the value of his property would not increase. He asked council when the burned -out house would be removed and whether they would take action to have slash piles removed. City Manager Snow reported she was unaware of the concern, but would contact the property owners tomorrow. She was requested to report back to council. City Planner Kebschull noted a contractor had been into City Hall making arrangements for removing the burned building, which would be done in the very near future. Councilwoman Porter questioned City Attorney Graves whether there is an ordinance that would cover removal of slash and Graves stated it may be covered as a fire hazard or could fit into the junk ordinance. He will investigate the issue. Councilman Moore stated his concern for the fire hazard and suggested it be dealt with as soon as possible. Acting Fire Chief Tilly stated he was unaware of the pile and that the Fire Wise program did on -site burning of slash left during their forestry project. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1956-2002 -- Amending Title 14 to Establish an Education Zone and Change Several Sections of the Kenai Municipal Code to 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. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1956-2002 and Councilman Moore SECONDED the motion. Debbie Sonberg -- 410 Cinderella, Kenai. Encouraged passage of the ordinance as she felt it would be good for that area of town and would help protect the schools and surrounding community. Bannock explained, the ordinance would not rezone the area, but would create the zone. After passage of this ordinance, a possible rezone of areas could be considered. He, added, schools now require conditional use permits and passage of the ordinance would eliminate that need. By creating a school zone and rezoning that school/location, it would eliminate the need for a conditional use permit. Kebschull stated, also all the structures are handled as commercial structures. With the new zone, a lot of the permitting processes now required of educational buildings will .be alleviated. KENAI CITY COUNCIL MEETING DUNE 512002 PAGE 4 Councilman Bookey referred to the first whereas in the ordinance and asked if the ordinance would allow the borough school and university lands within the same ordinance. Kebschull explained, parcels would be reviewed under the rezoning process. In regard to the Challenger Center, it is a permitted use in the light industrial zone in which it is located, however it could be rezoned to the educational zone if it was felt necessary. Porter asked if the Kenai Elementary building would need to be rezoned and Kebschull explained it was already a permitted use in a commercial zone and it would not be necessary to rezone. Bannock stated he would not support the ordinance because it would officially create what he felt was spot zoning. With passage of the ordinance and future rezoning, it would take away the conditional use permit process. He added, he believed zones should be large and this would cause smaller zones, or spot zoning. Bannock stated, the problem the ordinance was trying to correct could already be corrected through the conditional use permit process. Bookey noted the borough had school lands in the city dedicated as school lands. He asked why there was not an ordinance to cover all the educational lands. He asked why the ordinance was being offered. Attorney Graves explained no decision was being made of what lands would be put in the zone at this time as there could be a wide variety. Each area would have to be changed if the zone is added. Williams noted the university sells lands and they are not always used for educational facilities. Bannock stated he believed the only thing being done was substituting the need for a conditional use permit and which would not resolve all the issues in the zoning code. If a new school was established and it was not in an educational zone, an application could be made to change the zoning of the property or apply for a conditional use permit. Kebschull noted, currently Sears Elementary could make renovations to the building, but to add on to the building, a building permit could not be issued without a conditional use permit. Ozzie Osborne, Planning & Zoning Commission -- Explained the ordinance wouldn't rezone anything, but put the zone in place for properties to be rezoned if needed. The local schools could be placed in the zone to their borders and would bypass unnecessary requirements. Bannock asked if a request is made to rezone Sears Elementary, would it be considered spot zoning. City Attorney Graves explained the Alaska Supreme Court set the standard in Alaska for spot zoning: over 13 acres it is not presumptively considered spot zoning; under three acres it is presumptively spot zoning; and in between depends on a variety of factors. KENAI CITY COUNCIL MEETING DUNE 512002 PAGE 5 Williams stated, that since the ordinance only allows for the creation of a recreation zone and no specific zoning would be done at this time, he suggested going forward with the ordinance and address the issue of individual zones as they arise. VOTE: Bookey No Swarner Yes Moore Yes Porter No Bannock No Jackman Yes Williams Yes I i MOTION PASSED, C-2, 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. MOTION: Councilman Bannock MOVED for adoption of Ordinance no. 1957-2002 and Councilwoman Jackman SECONDED the motion. There were no public comments. Bannock explained a resolution with the same information was unanimously passed by the Planning 8, Zoning Commission. Kebschull noted the permit holders were in compliance with their yearly reports. VOTE: -Bookey Yes Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. C-4, Resolution No. 2002-28 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 2, 2002 and ending June 30, 2003. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-28 and Councilman Bannock SECONDED the motion. KENAI CITY COUNCIL MEETING DUNE 5, 2002 PAGE 6 Assemblyman Bill Popp -- Reported the borough had adopted their 2003 budget and reduced the mill rate in cities one-half mill and increased the mill rate one-half mill for areas outside of cities. Tom Wagoner -- 4040 Primrose Place, Kenai. Reported he owns a commercial building in Kenai and his insurance costs rose 40 points. He added, the impact of a mill increase would be pushed on to renters and just because the Borough Assembly lowered the mill rate did not give the city a reason to increase their rate. Wagoner continued, he believed the council had more work to do and he obj ected to a raise in the mill rate at this time. Dr. Pete Hansen -- Hansen read the following letter into the record: My name is Pete Hansen, I live in the City of Kenai at 418 Rogers Road, and I have lived here 34 years. I own property in Kenai including my home, a commercial office building, and residential rentals. I am opposed to the City of Kenai raising the property tax mill rate for the following reasons: 1. Last year the borough reassessed all the properties I mentioned above and the value of each was increased. In the case of the commercial building, it was increased several hundred thousand dollars. My taxes will be considerably higher this year because of it. 2. New businesses are going up in Kenai such as the new development on Kenai Plaza next to Carrs-Safety... and the recently opened Alaska Industrial hardware which is drawing contractors and homeowners from all over the Peninsula. Both property tax and sales tax income to the City of Kenai this year should increase as a result of these investments made in our town. 3. Kenai is known for its consistency in having one of the lowest property tax rates in the State of Alaska. It seems prudent to maintain this rate without a change, at a time when we are seeing this sudden growth of new businesses... buildings and businesses that may have come here because of our low rate structure, and the stable government and fiscal policies this council has previously set. 4. The City earned less revenue on its savings and investments last year, and I believe this was because of the state of our national economy. This change in our economy also affected the savings and investments of our taxpayers... which means they have had to tighten their purse strings... and I believe the city needs to do the same of for this next year, utilizing a bit of the city s savings until our economy recovers... and I believe that is about to happen. � KENAI CITY COUNCIL MEETING DUNE 5, 2002 PAGE 7 Thank you for listening. David Larson -- Stated he opposed a mill rate increase based on his earlier comments (lower assessment due to junk, neighboring properties, slash endangerments, etc.) . He added, should other properties not be increasing due to the assessment value because of adjacent properties, he believed it would be better to investigate with the Borough Assessor the location of those properties and whether or not that would offset any needed increases. He added, he didn't have a problem paying his fair share, but didn't think it was necessary to raise the levy if there were other properties that could generate more revenue if problems around them could be resolved. Williams noted, the reassessment of properties within the city generated an increase of $36,000 in property taxes; only 15% of the city budget is from property taxes; this increase would cover only ten percent of the budget shortfall. James Baisden -- 1009 Inlet Woods Drive, Kenai. Baisden stated he supported a mill rate increase and noted he owns properties in Kenai and in other areas and gets more service in the city with a lower mill rate and less service in other places where there is a higher mill rate. John Steinbeck -- 1601 Tanaga Avenue, Kenai. Stated he opposed the raising of the mill rate and thought the budget should be approved the way it is and then try to find another way instead of raising the mill rate to increase revenues. He suggested a sales tax increase and get more businesses in Kenai to raise more sales tax. Steinbeck stated he opposed a mill rate increase. Debbie Sonberg -- Questioned a comment that the city should tighten its belt and asked if that had not already been done. Williams explained administration had been working on the budget to cut about $160,000 from the $330,000 deficit. After those cuts, there will be more deficit. He also noted, since the last mill rate adjustment in 1993, funds from the State had declined steadily. Ozzie Osborne -- 14400 Kenai Spur Highway, Kenai. Stated he would be retiring in the near future and, like the city, he will have to make changes when his income declines and make cutbacks. Kathy Lopeman -- 4586 Kenai Spur Highway. Explained she was on the fence as far as a mill increase was concerned, but thinks the general public will be in danger of losing city employees to other jobs with better benefits if benefits are cut, etc. due to cuts in the city budget. Suggested other areas, like fee increases, that could be done instead of cutting the benefits of the city workers. Williams noted there was no cost of living increase in the budget and many of the employees won't receive any pay raise and some will get step increases. A raise in the 1 KENAI CITY COUNCIL MEETING DUNE 51 2002 PAGE 8 employee salaries was not a part of whether or not the budget is in the red. The issue had not been addressed. Mark Schrag -- Stated he wanted to discourage the do-nothing approach (no cuts, no revenue enhancement, etc.) and would support a small mill increase. He added, if it is done now, it could be less pain later. Blaine Gilman -- 216 Suzieanna Lane, Kenai. Gilman stated his concern was spending down the surplus and thought it should be more of a surplus. He noted the state budget would have less funds available and will put more cost to the municipalities. Gilman also noted there is a petition to have a proposition placed on the borough ballot to give an exemption for groceries which would cut approximately $ 1 million from the city's revenues. If this is done, it would be more serious. Gilman suggested an increase of one mill which he believed would be the responsible thing to do. He urged council to do the right thing. Williams noted council had not discussed the issue of the petition with Graves or Snow. He noted, if the proposition would pass, it would cost approximately $ 1 million in revenues to the city, or about three mills. He suggested voters strongly consider that when the matter comes to a vote. Terry Linebarger -- Crowe Court. Linebarger supported a one -mill increase. He noted, he wanted the city to continue to grow and felt the issue needed to be addressed now. Jim Williamson -- 1600 Woodside Avenue Kenai. Stated objection to any mill increase. Bob Peters -- Old Town, Kenai. Stated he would prefer an increase in the sales tax and agreed there are other sources than raising the mill rate. He added, he didn't think raising the mill rate would dissuade people and businesses from coming to Kenai. Peters added, he thinks businesses will pass the increase on to their customers and people will pay higher costs and stay here. Bannock explained he believes it is council's job to make sure assessed values increase; is concerned what would happen if the city raises its mill rate and then the borough raises theirs again; and that he believes there are prospects for Kenai and Alaska. Bookey stated he felt times were better today than they had been for five years and he didn't believe a mill rate increase was needed at this time. He added, he wanted to keep the mill rate at its present level. Bookey stated all the city's future budgets will be low and tight and he hoped the mill rate would remain the same. KENAI CITY COUNCIL MEETING JUNE 512002 PAGE 9 Porter stated, after taking five work sessions to review the budget; reviewing the budget for many hours; and thought it was a good thing for administration to be directed to cut $160,000 from the budget. However, because there was still $1602000 that was not cut to balance the budget; because she didn't like a deficit budget; because $40,000 was taken from the maintenance budget and has found paint chipping from facility walls, the city shop needs replacing, etc.; because the employees had not received a cost of living increase for two years; insurance costs are increasing, etc., she feels it is necessary to raise the mill by one-half mill. Swarner noted she had reviewed several past year budgets and noted a mill increase had been planned for 2002 and 2003. Semmens explained the increase projection was changed because there was optimism the economy was doing better. Swarner stated she would support a mill increase as it would be better than having deficit spending. Moore stated he polled the public through emails, telephone calls, in the grocery store, etc. He had 25 individuals justify a one mill crease and 11 people say no. Moore stated, with expenses rising, etc. he could justify a one mill increase and would support the mill rate being increased to 4.5. MOTION TO AMEND: Councilman Moore MOVED to amend the mill rate and increase it to 4.5 and Councilwoman Swarner SECONDED the motion. Bookey stated he could support a mill rate increase if they were operating from a balanced budget for the last ten years. Also, if there were no reserves, he would support an increase. However, he felt they city would be headed in the wrong direction to raise the mill rate at this point. Jackman stated she felt . council owed it to the citizens of Kenai to cut where it can before raising the mill rate. She added,, she felt there would be substantial increases to revenue if user fees are increased. Jackman stated she wanted to wait another year before raising the mill rate. Porter stated she would vote no on a one -mill increase as she preferred an increase of one-half mill. Williams suggested a one-half mill increase as a compromise because with proposed cuts administration will do, the deficit will be covered. He added, a full mill rate increase was delayed until next year and would be in next year's budget. Williams added, if the budget is balanced, consideration should be given to pay adjustments for the employees. Moore stated he was concerned about what cuts would be made by administration. He added, it may just be a delay and if the mill rate is raised one-half mill this year, they may have to raise it again next year. KENAI CITY COUNCIL MEETING JUNE 51 2002 PAGE 10 Swarner stated her concern there would be less lapse in the budget to help cover the deficit. Swarner added, she felt the mill rate should be increased by one mill and set it at 4.5 mills. Williams stated he would rather increase the rate by one-half mill. VOTE ON AMENDMENT: Bookey No Swarner Yes Moore Yes Porter Yes Bannock No Jackman No Williams No MOTION FAILED. Porter offered a motion to increase the rate by one-half mill, but it failed to get a second. VOTE ON MAIN MOTION: Bookey Yes Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Yes Williams No MOTION PASSED, BREAK TAKEN: 8:44 P.M. BACK TO ORDER: 9:05 P.M. C-3. 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 for adoption of Ordinance No. 1958-2002 and Councilman Bannock SECONDED the motion. Finance Director Semmens noted the total budget would be $13,047,45 1. Snow noted the budget process from the first meeting with the department heads to the point when council directed her to cut approximately $160,000 from the budget with full authority to administration to make the cuts and said they would accept those cuts whatever they would be. She stated she and Semmens reviewed the budget and pulled out large -cost items and listed those items that would be cut: • Dock area -- $54,000 may be able to cut, but it would cut into the fund balance there. Williams asked if it was a real cut or contingency and Snow stated that would be left up to council. KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 11 • General Fund Contingency -- $48,000-50,000 -- monies used during the year for unanticipated costs. The concern is, administration may have to come to council for items that come up and are not budgeted. • General Fund -- $30,000 for copiers -- a copier will be purchased from the current budget (funds already are available) . • Land -- $5,000 • Shop -- Cost of a nose plow • Streets -- experimental snow removal project • Finance -- $5,000 professional services for consultant services. • Buildings -- $10,000 ADA funds not always spent but if something happens, administration will have to come back to council. • Lands -- professional services Snow added, council gave direction to examine user fees (when were they last raised, suggested increases, etc.) and work has begun on that issue. She added, she has divided the pile for work session purposes. Snow noted it will take time to make all the increases as some can be done administratively and others will have to be done by ordinance. She added, how much money will be raised through the increases was not known. Williams noted, administration did what was asked, but council may have to revisit taking money from contingency. Moore asked Semmens to identify any of the cuts that would be shifting of expenses from one year to the next. Semmens noted two items: the Police SUV and the copier, which were on this meeting's agenda for consideration. Moore asked Semmens to identify those cuts mentioned that would be shifting expenditures from one year to the next. Semmens noted there were two items moved from the new budget to the current budget (copier and SUV) . The General Fund transfer to the dock could be shortened in order for the dock fund to have a deficit instead of a zero deficit ($54,000) which would use all their fund balance. He added, that would mean, in the subsequent year, there would be something to be reckoned with at the dock. Moore asked if the deficit fund balance have an effect on the city's bond rating and Semmens explained, the city could not run a deficit budget in perpetuity and a plan would be needed and that would be what it is currently; to transfer money from the General Fund. Bannock stated the dock could continue to be fed or council could readdress and privatize it. VOTE: Bookey Yes Swarner Yes Moore No Porter Yes Bannock Yes Jackman Yes Williams No KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 12 MOTION PASSED. Williams thanked administration for their hard work and efforts. He added, he was sorry the employees' salaries could not be adjusted this year. C-5. Resolution No. 2002-29 -- Transferring $10,000 in the General Fund Non -Departmental Department for Purchase of a Copier. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-29 and requested UNANIMOUS CONSENT. There were no public comments. Jackman stated a conflict with the issue and stated she would abstain from voting. VOTE: .Bookey Yes Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Abstain Williams Yes MOTION PASSED UNANIMOUSLY. C-6, Resolution No. 2002-30 -- Transferring $32,000 in the Police Department for the Purchase of a Patrol Vehicle. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2002-30 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Bannock stated a conflict with the issue and that he would abstain from voting. VOTE: -Bookey Yes Swarner Yes Moore Yes Porter Yes Bannock Abstain Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. � KENAI CITY COUNCIL MEETING DUNE 5, 2002 PAGE 13 C-7, Resolution No. 2002-31 -- Directing the Continuation of the Project Entitled Pillars Local Improvement District and Designating What Improvements are to be Included in this Project. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-31 and requested UNANIMOUS CONSENT. Councilwoman Porter SECONDED the motion. Tom Moore -- 1220 Chinook, Kenai. Thanked council for proceeding with the request for paving. He noted, of the 22 lots, there were 17 signatures on the petition. Moore stated they were looking forward to the project. Snow stated administration would be using the 2002 borough assessment calculations in the final cost estimate and the property owners' share will adjust up. Whether street lights were included in the project was discussed and concern was noted there are none in the subdivision. Tom Moore stated they had not considered street lights when the petition was distributed to the property owners and he did not feel comfortable speaking for all the property owners. Public Works Director Kornelis noted, if there is secondary power in the area, it would be inexpensive to place one street light at the corner where the school bus stops to pick up and drop off children. However, if there is no secondary power, it would be much more expensive. Williams stated lights could be considered later. VOTE: There were no objections. SO ORDERED, C-8. Resolution No. 2002-32 -- Awarding the Bid to Hanson's Roofing for Kenai Wastewater Treatment Plant Roof Repairs - May 2002 for the Total Amount of $34,750. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2002-32 and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING DUNE 51 2002 PAGE 14 ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- Swarner reported the next meeting was scheduled for June 6, 2002 at 10:00 a.m. at the Senior Center. D-2. Airport Commission -- Jackman noted a copy of the airport pilot survey was included in the packet for council's review. She added, the survey would also be available for pilots at the air fair scheduled for Saturday, June 8. Jackman stated, changes to the survey may be made if necessary after the air fair and then it will be mailed to the 750 pilots on the Central Peninsula. D-3. Harbor Commission -- Bookey reported the next meeting was scheduled for June 10. D-4. Library Commission -- Moore reported a meeting was held on June 4 at which time the director reported there was a drop in circulation; the summer reading program is in progress; the "Hooked on Kenai" fish was decorated with the title "Food for Thought"; the grant writing efforts being made; and the Friends book sale would be held on June 14 and 15. Moore also noted, the Commission would like council to cancel their July meeting and council had no objections. D-5. Parks & Recreation Commission -- Porter reported a meeting would be held on June 6. Moore reported the ice rink had been very busy due to the hockey camp taking place and through a conversation with the ice maintenance contractor and learned he would have no problem in keeping the facility open until 11:00 p.m. and the extra cost would be $100 a day for the additional three hours. Moore added, the ice would be in until June 12 and asked if the hours could be added. Swarner stated she had stopped by and noted the use. She also noticed there were no vendors. Swarner added, she would also like the facility open for the public to rent or for open skate. She noted she was concerned about a barrel of charred wood and requested administration to investigate the issue. Swarner said she had received complaints of noise from the skateboard park, but none for the evening skating. Williams stated he had also noticed the charred wood and other trash in the area, as well as gravel being thrown onto the asphalt and suggested a traffic bumper be placed to encourage people to use the roadway and not the gravel area. Moore asked if council had any objections to keeping the facility open until 11:00 p.m. Director Frates stated he wanted to discuss the matter with the contractor first and KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 15 noted there was a demand for selling ice. Bookey stated he had no objections to keeping the facility open if the ice can be rented and charge $150/hour, trying it for a week to see if there's interest. D-6. Planning & Zoning Commission -- Bannock noted the minutes of the May 8 and 22 meetings were included in the packet. After reviewing actions taken, Bannock reported the Commission was investigating whether the recreation zone should be rewritten to better accommodate uses a recreational zone now receives. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the next meeting was scheduled for June 11. She noted they had a successful planting day on May 25 and thanked the Kenai Firefighters' Association for the barbecue they hosted for all the volunteers. D-7b. Kenai Convention & Visitors Bureau Board -- No report. D-7c. Alaska Municipal League Report -- Williams noted the Legislature would be having special sessions and there may be additional issues brought up during those sessions. Williams also reported the summer AML Legislative Committee meeting will be held in Bethel, July 25-26 and requested council to notify him if they are interested in attending. D-7d. ITEM E: E-1, ITEM F: ITEM G: ITEM H: Kenai Chamber of Commerce -- No report. MINUTES Regular Meeting of May 15, 2002. -- Approved by consent agenda. CORRESPONDENCE -- None. OLD BUSINESS -- None. NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, H-2. Purchase Orders Exceeding $2,500 KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 16 MOTION: Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and requested UNANIMOUS CONSENT. Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED, H-3, Ordinance No. 1959-2002 -- Increasing Estimated Revenues and Appropriations by $57,255.85 in the Wellhouse No. 4 Capital Project for the Balance Remaining on a State Grant. Introduced by consent agenda. H-5. Approval -- Consent to Assignment for Security/John P. and Karin L. Gensel, d/b/a Creative Childcare LTD. City Attorney Graves reported administration recommended approval of the consent to assignment. MOTION: Councilwoman Swarner MOVED to approve the Consent to Assignment for Security/John P. and Karin L. Gensel, d/b/a Creative Childcare LTD to the First National Bank of Anchorage as noted in the documents and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-6. Discussion -- Local Improvement District -- Basin View Subdivision (Dolchok Lane, Kim-N-Ang Court and Cub Court)/Report to Council. Bookey stated the issue of paving this area had been before council in the past and he had some concerns of buried materials in the roadway which would make the job more costly. Kornelis stated exploratory excavation had been done in the past and some bury had been found. He added, the final cost of the project is what is split 75 / 25 by the city and property owners. If additional work is required in regard to buried materials, it would be included in the cost of the total project. Kornelis also noted the code states the cost is based on square footage of the property. Because the lots in the area include wetlands, administration was recommending calculating the cost on an equal basis. Council had no objections to proceeding with the project and bringing a resolution forward to set a public hearing date (probably August 7). ITEM I: REPORT OF THE MAYOR -- Williams reported the following: • A reception would be held at the Visitors Center on June 6 at 4:00 p.m. for Tom O'Hara, a consultant for the Arctic Winter Games Bid Committee. KENAI CITY COUNCIL MEETING DUNE 512002 PAGE 17 • Referred to the information added to the agenda for purchase of advertising space in a Kenai Peninsula visitor's map. Williams asked if council wanted to purchase space. Consensus was to not purchase advertising space on the map. • Noted the Boy Scouts of America, Troop 152 letter included in the packet thanking the City for their support. ITEM J: ADMINISTRATION REPORTS J-1, City Manager -- Snow reported the following: • Referring to a memorandum included in the packet regarding the airport terminal flooring proposed resolution of the tile installation concerns. Snow explained a meeting was held with the contractor and a settlement was negotiated, with which she agrees, and administration believes if half of the funds that were allocated in the fund for profit ($7,500) would be appropriate and in the best interest of the city. She added, they felt it could be more expensive to pursue a higher judgment than that due to the conditions of the bid, etc. • Due to a lot of discussion at the Harbor Commission to set a parking - only fee, she was setting one at $5.00 per day which would be a new fee for those users of the dock who are parking a vehicle only. The launch fee of $10.00 a day will continue as well. • Referred to a memorandum included in the packet from Semmens regarding a banking RFP. Semmens explained, due to the budget process taking more time than typical and because the financial statement/ audit would be taking place at the time he expected to put out the RFP, he felt it would be better to delay the issue. He noted, he had discussed the matter with Wells Fargo Bank and they had no objections to extending the present contract. He now plans to issue the RFP in November with a February or March implementation date. • Welcomed Chuck Kopp to his first council meeting in the capacity of Chief of Police. Porter asked Snow to review the landscaping review process as there are new buildings, etc. that are only planting grass instead of doing more beautification to their properties. She also suggested paving as a requirement for new businesses. Bannock noted, the Planning 8, Zoning Commission reviews site plans and there are criteria in place. He added, if more specific criteria are wanted (how many trees, etc.), amendments to the code would need to be made. Kebschull explained the code was changed approximately one year ago to have the landscaping/ site plans reviewed administratively so not to hold up building permits. She noted, the ordinance is very lacking in that it only requires five percent landscaping and is non-specific. She added, there is no paving requirement in the ordinance. Kebschull agreed the code needed to be updated, but she didn't think it should be subjective and specific criteria should be included. Administration was requested to examine the issue. KENAI CITY COUNCIL MEETING DUNE 52 2002 PAGE 18 Bannock stated his disappointment regarding the airport flooring proposed settlement. He stated he would rather the job be fixed or find another resolution. Discussion followed in which Williams noted the floor at the terminal was not built or prepped for tile and the contractor was unaware of it when he reviewed the floor prior to the bid and the city did not pull the carpet up to show it. Williams added he believed it was as much the fault of the city as the contractor. Bookey stated he believed the contractor should have said something about the problem after the carpet was removed. Attorney Graves explained, when they met, the contractor brought his bid sheet notes because the city wanted to know what portion of the project was the the and what portion was the carpet. Public Works Manager La Shot estimated approximately $40,000 was the tile work cost. The contractor showed he spent approximately $38,000, including materials, profit, labor, etc. Graves added, they broke down the function of tile into three areas, i.e. esthetics, maintenance and functionality. The project engineer and La Shot said they had only a problem with esthetics as the maintenance and functionality were not perfect, but acceptable. Graves stated it was difficult to calculate the worth of esthetics as there is no formula to determine that or damages for it. He added, if the matter would go to court, the court would assign a damage amount because it would not be economical to continue having the contractor redo the project if it could not be done correctly. Graves stated, they reached a number they felt was in good faith and the contractor will lose money on the tile portion of the project. Airport Manager Cronkhite added, the contractor incurred more cost because he purchased additional tile and then replaced several sections. Bookey stated he was unhappy with the resolution amount and that the contractor should have mentioned the problem with the sub -floor. Bookey also noted, the contractor used an apprentice who was not as familiar with technique, etc. Williams stated he had no problem with the resolution and Bookey stated he did. There were no other objections stated. J-2. Attorney -- Graves reported there had been some questions raised in regard to the petition to eliminate taxes on non -prepared foods, i.e. its appropriateness and if the Borough has the authority to revoke a home -rule municipality tax. He added, he wanted to investigate the issue and would try to get information back to council next week or in the packet for the next council meeting. Council had no objections. Graves also reported he would be out of the office on Thursday and Friday and would be at the Chamber's booth at the airport next Wednesday. J-3, City Clerk -- Freas reported she had received a petition for a special assessment district for paving Schooner Circle in the VIP Subdivision. She noted she would forward the information to the city manager to continue the process. KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 19 ITEM K: DISCUSSION K-1. Citizens -- None. K-2, Council Bookey -- Stated he had received a complaint over Memorial Day weekend that there was a problem with the fuel station at the float plane basin and asked if the problem had been repaired. Cronkhite reported the problem had been fixed. Bookey asked why it had not been repaired for the Memorial Day weekend and Cronkhite stated it was broken and the parts were not available for repair prior to that weekend. She added, the station was shut down during the winter and problems with the filters were discovered when it was being readied for the summer use. There were problems in getting filters for the repair and a notice was placed on the pump and directing users where and how to obtain fuel. Bookey stated, for all issues of the city, taking care of minor details like this, the big things fall into place on their own. He added, he was disappointed there was no fuel available for users. Airport Manager Cronkhite explained when the fuel station had been shut down in the fall the pump was working. Swarner -- • Asked the progress of removing spruce bark beetle -killed trees in the city. Acting Fire Chief Tilly reported the Department had checked the gully areas, thick forested areas within the city and sent out letters to property owners telling them to contact the Borough for removal. Swarner requested they check trees along Lawton Drive. • Asked how far on properties do the front loaders go when removing snow and Kornelis noted the right-of-ways within the city vary and explained the snow removal process for cul-de-sacs and vacant lots, etc. • Asked how often the striping is done on city streets and Kornelis answered, there was no definite schedule. It is done when the paint is worn away. Moore -- Stated he would be absent for the June 19 council meeting. Porter -- • Requested Kornelis to check when the slash pile would be removed from Redoubt which was to be done during last year's highway upgrade project. • Noted the Public Works Project Report indicated a City Hall renovation project and asked if it was for the upstairs of City. Hall. Snow reported it could be work for one office that council had previously approved, or it could have to do with the heating system. Swarner requested a note back indicating what the project was to entail. • May not be in attendance of June 19, 2002 meeting. KENAI CITY COUNCIL MEETING JUNE 5, 2002 PAGE 20 Bannock -- Noted the work being done at the Kenai Cemetery by Frank Getty and his son. It was requested a letter be sent to the Getty's thanking them for their efforts. • Thanked Snow and Semmens for their hard work on the budget. He noted he received emails in regard to the budget work sessions, etc. and comments had been made the writers felt he was trying to make the city manager look bad. Bannock stated he had complete confidence in Snow and glad she and Semmens work for the city. Jackman -- Congratulated Kopp on his appointment as Chief of Police. Williams Asked the progress of the coastal trail project and Kornelis stated they were still awaiting a response from Peratrovich, Nottingham 8, Dra e as to the g g Corps using them as a consultant through Tryck, Nyman & Hayes. EXECUTIVE SESSION - Personnel issues. MOTION: Councilwoman Porter MOVED to convene in an executive session of the council of the City of Kenai concerning matters that tend to prejudice the reputation and character of another. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. EXECUTIVE SESSION: 10:55 P.M. BACK TO ORDER: 11:13 P.M. Porter reported, during the executive session, the council addressed the issue of possible increases for the city manager, city attorney and city clerk and determined at this time they will remain status quo. ITEM L: ADJOURNMENT The meeting adjourned at approximately 11:14 p.m. Minutes transcribed and prepared by: i9 Do, Carol L. Freas, City Clerk