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HomeMy WebLinkAbout2002-09-18 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 18, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www. ci. kenai. ak. u s BOARD OF ADJUSTMENT HEARING: Appeal of Planning &Zoning Commission Denial of application for a Conditional Use Permit for a retail business to operate a pet grooming business on the property known as 1802 Fourth Avenue (Lot 6, Block 2, Spruce Grove Subdivision), Kenai, Alaska. Appeal submitted by Nancy Henrickson. ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Byron K. Huffman, FAA Alaskan Region Airports Division Manager -- Presentation of Grant Offers for 2003. 2. Bill Coghill, Mikunda, Cottrell & Co. -- Presentation of Single Audit Report and City of Kenai Financial Statement. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1963-2002 -- Amending KMC 12.20.030 to Prohibit the Storage of Slash for More Than Suety (60) Days on Property Within the City of Kenai. a. Substitute No. 1963-2002 -- Amending KMC 12.20.030 to Prohibit the Storage of Slash for More Than 120 Days on Property Within Certain Areas of the City of Kenai. 2. Ordinance No. 1972-2002 -- Increasing Estimated Revenues and Appropriations by $3,159.95 in the General Fund for New Desk Tops at Officer Report Writing Stations. l 3. Ordinance No. 1973-2002 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund, Water and Sewer Fund, and ARFF/SRE Capital Project Fund for Communications Equipment. a. Motion for Introduction b. Motion for Second Reading (Requires a Unanimous Vote) C. Motion for Adoption 4. Resolution No. 2002-63 -- Approving a Contract to Motorola for the ARFF/SRE Communications Upgrade for the Total Amount of $264,769. 5. Resolution No. 2002-64 -- Adopting an Alternative Allocation Method for the FY03 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Cook Inlet. 6. Resolution No. 2002-65 -- Directing the Continuation of the Project Entitled "Schooner Circle Paving District" and Designating What Improvements are to be Included in this Project. 7. Resolution No. 2002-66 -- Setting the Public Hearing Date on 'the Proposed Toyon Way Paving District. 8. Resolution No. 2002-67 -- Awarding a Five -Year Contract for the Kenai Municipal Airport Vending Machine Concession to Tyler Distributing Company, Inc. 9. Resolution No. 2002-68 -- Prioritizing Capital Projects in the Community for Submission to the State of Alaska for FY 2004 Finding Under the Capital Project Matching Grant Program (AS 37.06). ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8. Recreation Commission 6. Planning 8v Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention 8v Visitors Bureau Board C. Alaska Municipal League Report d. Kenai Chamber of Commerce ITEM E: MINUTES 1. *Regular Meeting of September 4, 2002. ITEM F: CORRESPONDENCE 1. *9/ 13/02 David C. Wartinbee letter regarding personal tax on airplanes. 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. 1974-2002 -- Amending KMC 14.20.200 (Accessory Structures) to Clarify Which Accessory Structures May Be Built Within the Setback and How Close Such Structures May Be Built to Lot Lines. 4. *Ordinance No. 1975-2002 -- Increasing Estimated Revenues and Appropriations by $955,000 for Airport Grants. 5. Discussion -- Vacation of the Westerly Three -Foot Portion of the 33-Foot Access Easement Along the East Boundary of Government Lots 51 and 61, Adjacent to the 30-Foot Portion to be Dedicated as Candlelight Drive, All Within Section 34, Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of Kenai and the Kenai Peninsula Borough; KPB File No. 2002-166. 6. Discussion -- Schedule Work Session with Airport Commission, ERA Aviation and Council to Discuss Airport Marketing. 7. Discussion -- Proposed Ordinance Amending KMC 7.10.050, Which Incorporates by Reference the Borough Sales Tax Code by Adding a Section Excluding KPB 5.18.200(a)(16), Which Provides a Sales Tax Exemption for Senior, Disabled Veteran, and Disabled Resident Rental Housing, From the City Sales Tax Code. ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM L: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 18, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt wwcr.ci.kenai.ak.us BOARD OF ADJUSTMENT HEARING: Appeal of Planning 8s Zoning Commission Denial of application for a Conditional Use Permit for a retail business to operate a pet grooming business on the property known as 1802 Fourth Avenue (Lot 6, Block 2, Spruce Grove Subdivision), Kenai, Alaska. Appeal submitted by Nancy Henrickson. ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 8:04 p.m. (immediately following the Board of Adjustment hearing) 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 prior to the Board of Adjustment hearing. A-2. ROLL CALL Roll was taken by the City Clerk prior to the Board of Adjustment hearing. Present were: Bookey, Swarner, Porter, Bannock, Jackman, and Williams. Absent was: Moore A-3, AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD TO: B-2, Persons Scheduled to be Heard/Bill Coghill -- Management Letter ADD AS: D-7b, Kenai Convention & Visitors Bureau -- Activity Update ADD TO: H-6, Scheduling of Council/Airport Commission/ERA Aviation Work Session -- CLF memorandum regarding ERA available dates. ADD TO: H-7, Discussion regarding proposed amendment to the city Sales tax code to exclude KPB 5.18.200(a)(16) (providing a sales tax exemption for senior, disabled veteran, and disabled resident rental housing -- copies of the KPB ordinance allowing the exemption and a proposed ordinance amending other provisions of the KPB sales tax code. MOTION: KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 2 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 MOTION: Councilwoman Swarner MOVED for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Byron K. Huffman, FAA Alaskan Region Airports Division Manager -- Presentation of Grant Offers for 2003. Huffman noted, his Division works in conjunction with their sponsors to plan, program and develop airports and provide approximately 94% of the funding for airport improvements in the State. Over the last ten years, the administration of the airports improvement program has awarded grants of $148 million to sponsors in Alaska, of which the City of Kenai has received $21.1 million. Huffman then presented the City of Kenai three grants totaling approximately $900,000 and an additional $750,000 as a part of the multi -year grant for the operations facility -- approximately $1.6 million AIP funding this year. Those grants will be used for conducting an environmental assessment of the main runway extension and runway safety area improvements ($35 1,000); improving the security fencing, installation of access control gates and closed-circuit television system on the airport (multi -year grant $328,000 this year and approximately $600,000 in FY03); and, acquiring snow removal equipment ($215,000). B-2. Bill Coghill, Mikunda, Cottrell & Co. -- Presentation of Single Audit Report and City of Kenai Financial Statement. Coghill briefly reviewed the audit reports and financial statement received from Mikunda Cottrell and noted: • Sales tax increased by eight percent (approximately $360,000 increase). • Interest earnings are down almost $970,000 from the last year due to declining interest rates and less money to invest. • Revenues were up approximately $250,000 over the budget amounts. • Expenditures were under budget, resulting in an unappropriated fund balance of about $5.1 million (about the same from last fiscal year). 0 Other funds were healthy. KENAI CITY COUNCIL MEETING � SEPTEMBER 18, 2002 PAGE 3 • General Fund expenditures were up due to purchase of land from the Airport Land Fund for the Youth Detention Center and the buy-out of Phase I Multipurpose Facility. • Bonded debt is $460,000 and a liability of $1.4 million for spill cleanup has been recorded, however it is unknown what the amount will be for actually doing the cleanup. Coghill also noted, the reporting format will change next year due to the new governmental accounting standards. An evaluation will be included to summarize all the activities of the City into a statement of net assets and changes in net assets, including infrastructure, which can be depreciated. He added, next year's report, he felt would point out some very interesting facts about the city and they would be favorable. Coghill also explained the city has a Debt Service Fund which has no debt, but does have assets (uncollected special assessments). He suggested the Debt Service Fund be removed and the assets moved to the General Fund as there is no reason to have the fund without any debt. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1963-2002 -- Amending KMC 12.20.030 to Prohibit the Storage of Slash for More Than Sixty (60) Days on Property Within the City of Kenai. MOTION: Councilwoman Porter MOVED for approval of Ordinance No. 1963-2002 and Councilman Bannock SECONDED the motion. C-1.a. Substitute No. 1963-2002 -- Amending KMC 12.20.030 to Prohibit the Storage of Slash for More Than 120 Days on Property Within Certain Areas of the City of Kenai. MOTION TO AMEND: Councilwoman Porter MOVED to approve Substitute No. 1963-2002 (identified as C- 1 a) and Councilman Bannock SECONDED the motion. VOTE ON MOTION TO AMEND: There were no objections. SO ORDERED. There were no public comments: Porter encouraged passage of the ordinance as she felt and ordinance is needed to work with when slash problems arise. Bookey explained he felt more comfortable about the ordinance with the amendment including KENAI CITY COUNCIL MEETING SEPTEMBER 18 2002 PAGE 4 lot size and zones. He requested the ordinance be reviewed in one year. It was also confirmed, the city would be able to comply with the ordinance as it is now written. Porter requested the ordinance be noted in the next newsletter. VOTE: Bookey Yes Swarner Yes Moore Absent Porter Yes Bannock Yes Jackman Yes Williams Yes F I MOTION PASSED UNANIMOUSLY. C-2. Ordinance No. 1972-2002 -- Increasing Estimated Revenues and Appropriations by $3,159.95 in the General Fund for New Desk Tops at Officer Report Writing Stations. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1972-2002 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: Bookey Yes Swarner Yes Moore Absent Porter Yes Bannock Yes Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1973-2002 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund, Water and Sewer Fund, and ARFF/ SRE Capital Project Fund for Communications Equipment. C-3a. Motion for Introduction MOTION: Councilwoman Swarner MOVED for introduction of Ordinance No. 1973-2002 and Councilwoman Jackman SECONDED the motion. There were no objections. SO ORDERED. � C-3b. Motion for Second Reading (Requires a Unanimous Vote) KENAI CITY COUNCIL MEETING � SEPTEMBER 18, 2002 PAGE 5 MOTION: Councilwoman Swarner MOVED for the second reading on Ordinance No. 1973-2002 and requested UNANIMOUS CONSENT. Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED, C-3c. Motion for Adoption MOTION: Councilwoman Swarner MOVED for the adoption of Ordinance No. 1973-2002 and Councilwoman Porter SECONDED the motion. There were no public or council comments. VOTE: Bookey Yes Swarner Yes Moore Absent Porter Yes Bannock Yes Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. C-4, Resolution No. 2002-63 -- Approving a Contract to Motorola for the ARFF/ SRE Communications Upgrade for the Total Amount of $264,769. MOTION: Councilwoman Jackman MOVED to approve Resolution No. 2002-63 and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. It was noted the funding for the upgrade was received through AIP grants in FY2001-2002. Police Chief Kopp explained this was a sole -source purchase because public safety is a focus of the supplier's vendor market. Also, the city was currently using Motorola equipment and now doing an upgrade; it was necessary to continue with Motorola equipment. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 6 C-5. Resolution No. 2002-64 -- Adopting an Alternative Allocation Method for the FY03 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Cook Inlet. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-64 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-6. Resolution No. 2002-65 -- Directing the Continuation of the Project Entitled "Schooner Circle Paving District" and Designating What Improvements are to be Included in this Project. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-65 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. Lynn Anthony Milionta, 2610 Watergate Way, Kenai -- Reported he and his wife were surprised to receive the letter regarding the proposed paving project. He discussed the matter with a neighbor several summers ago. Neither he or his wife are fundamentally opposed to the paving of Schooner Circle, but it was the assessment that concerned him. He noted, he felt the assessment for their property was higher for a perceived value that was less and didn't feel it was equitable. Milionta explained, their property faces on Watergate Way and Schooner comes along side of their property. Because their lot is long and the assessment is based on total acreage, the cost to them is the highest. Milionta stated he believed there could be a more equitable solution which could be discussed between he and his neighbors. He added, the portion of his property facing Schooner Circle includes a treed barrier which is valuable to the neighbors and the children playing there and they have no plan in improving that portion of the lot (which lowers that value) . Milionta requested time to speak with his neighbors in regard to other equitable ways to split the cost for the paving. It was confirmed by City Attorney Graves, the resolution indicated basing the assessments on a square footage and if the allocation were changed, the resolution would need to be amended. He added, the code specifies allocation on a square footage basis unless council determines otherwise. KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 7 Geri Chivers -- Stated she has talked with other neighbors about splitting the cost of Milionta's portion between them because he will not receive any benefit from the paving. She has not yet spoken to all the neighbors at this time. There are only four property owners using the circle. Williams noted, after speaking with Attorney Graves, in order to have a clear understanding of what they are proposing and to be part of the record, Graves will assist the property owners in formulating a letter delineating their request. MOTION TO TABLE: Councilwoman Porter MOVED to table Resolution No. 2002-65 for 30 days (the second meeting of October) and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. C-7. Resolution No. 2002-66 -- Setting the Public Hearing Date on the Proposed Toyon Way Paving District. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-66 and requested UNANIMOUS CONSENT. Councilwoman Jackman SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-8. Resolution No. 2002-67 -- Awarding a Five -Year Contract for the Kenai Municipal Airport Vending Machine Concession to Tyler Distributing Company, Inc. MOTION: Councilwoman Jackman MOVED for approval of Resolution No. 2002-67 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. l KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 8 C-9. Resolution No. 2002-68 -- Prioritizing Capital Projects in the Community for Submission to the State of Alaska for FY 2004 Funding Under the Capital Project Matching Grant Program (AS 37.06). MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-68 and requested UNANIMOUS CONSENT. Councilwoman Jackman SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. ITEM D: COMMISSION / COMMITTEE REPORTS D-1. Council on Aging -- Swarner reported she and Senior Director Craig would attend a workshop regarding predevelopment grants for assisted living facilities at the end of the week. D-2. Airport Commission -- No report. D-3. Harbor Commission -- Kornelis reported the Commission met on September 9. They have been reviewing revenue concerns for the dock and will have a recommendation for council's review at their October work session. Kornelis added, the Commission particularly interested in the possibility of assigning the personal property tax on boats to the dock fund, as well as parking fees and fish tax. Porter noted, in the meeting minutes reference was made to the Parks &s Harbor Commissions working together and Kornelis noted, the dip net parking fees go to the General Fund and the Parks & Recreation Department collects the fees. Porter suggested the Parks &. Harbor Commissions meet together to discuss concerns they may have. D-4. Library Commission -- Director Jankowska noted the meeting minutes were included in the packet. It was noted the October meeting had been cancelled and an application from Megon Coon was included in council's packet for appointment to the Commission. Council had no objections to Coon's appointment. D-5. Parks & Recreation Commission -- Porter reported there was no quorum, although a work session was held at which time the possibility of placing a small gazebo in the cemetery was discussed with Frank Getty, who has been doing a lot of volunteer work at the cemetery, along with his son. Those commission members present had no objections. Getty reported he had received some donated funding for KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 9 the materials. Porter also noted Getty would like water brought into the cemetery for watering purposes. Williams suggested conduit and hose could be placed through a culvert from across the street which would bring a water source closer and out of the way of traffic. Director Frates reported that was presently being done. D-6. Planning & Zoning Commission -- Bannock reviewed actions taken at the September 11 meeting and noted the draft minutes of the meeting were included in the packet. Williams suggested council consider requesting the Borough to transfer ownership of 20 acres of property in the Lawton Drive area. The property is where the test water well is located. The city could develop the road from Swires to Lawton Drive and open it as an alternate route into town; tie two dead-end water lines together, etc. Williams suggested the city put the Borough on notice of the city's interest. D-7. Miscellaneous Commissions and Committees D-?a. Beautification Committee -- Swarner reported the minutes of the meeting were included in the packet and noted the following: • A request was made by the KVCB to move and relocate some of the trees in the planters at the Center and replace them with shrubs. • A request was made from the Chamber to place 54" king salmon replicas in concrete planters throughout town as a fundraising effort. She noted, the Committee didn't feel they had adequate time to review the request as there was no information included in their packet for review prior to the meeting and they wanted to discuss the matter further at their October meeting. Swarner reported pictures of the fish replicas were included in the packet. She also noted the Committee had concerns about signs, whether they would be allowed by the sign code, the ability to read them from a distance, whether they would be considered off -premises advertising, etc. Carol Bannock, Kenai Chamber of Commerce -- Noted the following: • The Chamber needs and indication from the city whether they could proceed with the project in order for them to make their requests for sponsors whose fiscal years end in December and who would soon be considering their budgets for their new fiscal year. • The sponsor purchase price will include $100 to be forwarded to the city to go toward purchase of plants for the planters. • Which planters to be used did not need to be decided at this time. MOTION: Councilwoman Porter MOVED to allow the Chamber to work with the City of Kenai to establish the Hooked on Kenai fish project and Councilwoman Jackman SECONDED ,I the motion. KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 10 Discussion brought forward the following comments: • Case law did not indicate the signs to be used would be considered "off premises" advertising. The Parks 8. Recreation Department and Beautification Committee should continue their flower program (choosing, planting, and maintenance) . • Report council's actions to the Committee to keep them included in the program. VOTE: There were no objections. SO ORDERED. D-7b, Kenai Convention 8s Visitors Bureau Board -- Bookey reported a meeting was scheduled for September 23. He also noted an activity report was added to the agenda at the beginning of the meeting. D-7c. Alaska Municipal League Report -- Reported he would be visiting the Kenai Middle School in order to discuss the AML's "If I were mayor..." writing contest. D-7d. Kenai Chamber of Commerce -- Carol Bannock reported tickets for the "Hooked on Kenai Wild" festival were available for sale at the Chamber ITEM E: MINUTES E-1. Regular Meeting of September 4, 2002 -- Approved by consent agenda. ITEM F: CORRESPONDENCE F-1. 9/ 13/02 David C. Wartinbee letter regarding personal tax on airplanes. Wartinbee discussed his letter which was included in the packet regarding his objections to paying personal property tax on his airplane and how the city's continuing to charge the tax affects airport and city businesses. He suggested the city lift the tax. He noted, he believed lifting the tax would bring many other planes to the airport for parking, etc. With more planes parking at the airport, auxiliary businesses, i.e. mechanical, hangars, etc. would be more likely to want to build/ rent space at the airport. He added, because people are choosing to park their planes at other sites, the city is losing out on tie -down fees, local shopping, restaurant usage, etc. A lengthy discussion followed and it was explained: • When the borough exempted the personal property tax on planes and boats, it raised taxes on cars. KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 11 • Wartinbee and other pilots should consider what the Kenai Airport offers them, even with the fees and taxes charged. • The issue could be also be discussed at one of the council's policy work sessions. • Taxes on planes go to the General Fund, not the airport. When revenues are down, the costs go to the taxpayers. Should the taxpayers bear the burden? 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 requested UNANIMOUS CONSENT. Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED, H-3. Ordinance No. 1974-2002 -- Amending KMC 14.20.200 (Accessory Structures) to Clarify Which Accessory Structures May Be Built Within the Setback and How Close Such Structures May Be Built to Lot Lines. Introduced by consent agenda. H-4. Ordinance No. 1975-2002 -- Increasing Estimated Revenues and Appropriations by $955,000 for Airport Grants. Introduced by consent agenda. H-5. Discussion -- Vacation of the Westerly Three -Foot Portion of the 33-Foot Access Easement Along the East Boundary of Government Lots 51 and 61, Adjacent to the 30-Foot Portion to be Dedicated as Candlelight Drive, All Within Section 34, Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of Kenai and the Kenai Peninsula Borough; KPB File No. 2002-166. } KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 12 Phil Bryson, Kenai Planning 8s Zoning Commission Vice -Chair and City's Representative to Borough Planning Commission, 1205 Third Avenue, Kenai -- Bryson explained this is the third of three actions taken on the property: (1) in the past the property operated as a business with a conditional use (over 30 years ago); (2) a fuel storage facility was constructed on the property and through time a concrete containment was constructed for it and a cover to keep the weather from the area; (3) in the recent past, one or more buildings were constructed with building permits (last permit was dated 1994 and issued when it was observed there was construction going on in the area) . During the last construction, a building was constructed across the property line and trespassing the adjoining property. Subsequently, there's a petition to vacate the access easement in order to remove a cloud on the property for the building that is in the city right of way. The borough proposed to vacate it so that a 30-foot right-of-way would remain and vacating the three-foot portion. Bryson noted, for vacations, there are usually topographic issues, i.e. gullies, excessive grade, to address trespass issues, etc. He added, in general he was not opposed to vacations to address trespass issues, however the ramifications of what is proposed by the borough would be that it would set a precedent by providing for the minimum acceptable situation to solve the problem. Bryson continued, the property owner is subdividing the property and creating lots away from the area where the trespass is located. Bryson stated, at the Borough Planning Commission meeting, it was asked if only footprint situations are vacated and the agent of the petitioner stated straight lines were easier to deal with. Bryson explained, to him the issue was precedence and noted, there are 256 original government lots and this precedent would allow owners of those government lots to ask for the same type of vacations for one or both sides of their property. Bryson noted, council could either allow the vacation or veto it. Bannock noted, the Planning & Zoning Commission voted unanimously to recommend council exercise their option to veto. He noted reasons the Commission made their decision as follows: • The owner does not own the right of way. • The vacation of the strip along the government lots would equal approximately 1,350 sq. feet of city property. • Why should the city give up city right-of-way because someone built a building in the wrong place. Williams asked if the owner of the building/ property could negotiate with the city to continue use of the trespassed right-of-way and Attorney Graves noted, the city has leased a portion of a right-of-way on airport property which was not being used. He added, because there is precedent, he believed it was doable, however he didn't think KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 13 the city would want to make a long-term lease. Williams noted, in the future accounting reporting, the right-of-way would be considered an asset. Bryson added, on the preliminary plat forwarded to the Borough, the structure was indicated as a fuel storage building and in testimony it was described as a fabrication building. He added, it appears a portion of the building was already existing on BLM Lot 61 which was not part of the conditional use property. MOTION: Councilman Bannock MOVED for the City of Kenai, in accordance with AS 29.40.140 exercise its right to veto the decision of the Borough Planning Commission of the property marked Item H- 5 on the agenda and Councilwoman Swarner SECONDED the motion. VOTE: Bookey Yes Swarner Yes Moore Absent Porter Yes Bannock Yes Jackman Yes Williams Yes MOTION PASSED UNANIMOUSLY. H-6. Discussion -- Schedule Work Session with Airport Commission, ERA Aviation and Council to Discuss Airport Marketing. Council set a work session for October 15, 2002 to begin at 7:00 p.m. in the Council Chambers. H-7. Discussion -- Proposed Ordinance Amending KMC 7.10.050, Which Incorporates by Reference the Borough Sales Tax Code by Adding a Section Excluding KPB 5.18.200(a)(16), Which Provides a Sales Tax Exemption for Senior, Disabled Veteran, and Disabled Resident Rental Housing, From the City Sales Tax Code. A lengthy discussion took place in which the following comments were made: • The Borough rental tax exemption will take effect on October 1 and the city cannot take action on an ordinance prior to that deadline without holding a special meeting. The state statutes allow for a 30 day period. • Homer and Seward have chosen not to fight the issue due to the timeframe of the borough's ordinance taking effect. • The city will lose approximately $15,000 in sales tax if it goes ahead with the exemption and approximately $7,000 of that would be from senior housing. l l KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 14 • If the city goes forward with it, it will be a loss to the General Fund, however if it does not, people will move which would also be a financial concern. • The City is at a political disadvantage and the issue is tied to the election. • Writing a letter to the borough, expressing the city's concerns should be signed by all the council members. • If council wants to attack right away, a special meeting could be held and the ordinance introduced and passed on the same night. • The city code adopts the borough tax code; council may want to amend the Kenai code in order to make its own exemptions (like Seward) . BREAK TAKEN: 11:14 P.M. BACK TO ORDER: 11:30 P.M. Bookey suggested not taking action at this time, wait until after the election, and revisit the issue if council feels it is necessary. He noted, there are other tax concerns that may be brought forward after the election and will need council's consideration. He suggested council could discuss the issue further during one of the policy work sessions. He requested administration to investigate Seward's code and bring the information back to council as soon as possible. It was also noted, Williams and Bannock should write a letter and bring it back to council for review at the next council meeting. ITEM I: REPORT OF THE MAYOR -- Williams noted he would be attending an Economic Development District Board of Directors meeting in the morning and requested a council member consider taking over that responsibility. ITEM J: ADMINISTRATION REPORTS J-11 City Manager -- Snow commented on the following: • The staff reports were included in the packet. • She will be out of town from September 27 through October 5 and Finance Director Semmens will be acting city manager during her absence. • Suggested discussing senior rents at a later date. Swarner suggested the senior rent issue be discussed at a policy meeting and council had no obj ections. Porter requested the leases for the Art Guild and Historical Society be reviewed at the policy work sessions as well. Council had no objections. J-2. Attorney -- Graves reported the following: • For the second year, they would be attempting to attach approximately $22,000 from Permanent Fund Dividends from 208 individuals. Of that amount, approximately $17,000 would come to the city. KENAI CITY COUNCIL MEETING SEPTEMBER 18, 2002 PAGE 15 J-3. ITEM K: He will be out of town September 26 and 27. City Clerk -- No report. DISCUSSION K-1. Citizens -- None. K-2, Council Bookey -- Noted some updating was needed on the city's webpage. Swarner -- Noted she received a comment regarding difficulty to see around the lift station at Walker Lane. Porter -- Asked how voting went at the Senior Center as a new polling site and Director Craig stated it was favorable. Bannock -- Invited everyone to a post -election gathering at the Chrysler Center on October 1. Jackman -- No comments. Williams -- Noting the letter from the Kenai Peninsula Economic Development District requesting sponsorships for Vista Volunteer training, he suggested inviting the volunteers to spend time with city administration for insight into running a city government. EXECUTIVE SESSION - None Scheduled ITEM L: ADJOURNMENT The meeting adjourned at approximately 11:47 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk APPROVED BY COUNCIL