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HomeMy WebLinkAbout2002-11-04 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION NOVEMBER 4, 2002 KENAI CITY HALL 7:00 P.M. GROUP "B" TOPICS: REVENUES & EXPENSES / GENERAL 1. Personal property taxes 2. Senior housing rent increases 3. Dock operations 4. Deferred building maintenance 5. Old library and jail status 6. Boys 8v Girls Club Partnering 7. DOTP&F Maintenance Reductions 8. Maintenance of airport terminal ADDITIONAL INFORMATION: 9. 10/21/02 Work Session Notes KENAI CITY COUNCIL WORK SESSION NOVEMBER 4 2002 KENAI CITY HALL 7:00 P.M. MAYOR JOHN J. WILLIAMS, PRESIDING Council Present: Williams, Bookey, Bannock, Moore, Porter, Jackman, Swarner Staff Present: Freas, Graves, Snow, Walden, Kornelis, Issac, Diorec, Bookey, La Shot, Dye, Craig, Semmens, Frates, Freden, Prior, Kopp Others Present: J. Spracher, G. Foster and J. Barrett (Harbor Commission members). Williams called the work session to order at approximately 7:01 p.m. He noted the Chamber had met with several city representatives and community members earlier in the day regarding the chance the "City of Lights" event traditionally held the day after Thanksgiving being filmed for a program on the "House & Garden" television network. It was noted there would be need for additional lighting on city buildings and the parade would be expanded. It was questioned why there were not more pole lights toward the east end of town and Parks & Recreation Director Frates explained those poles did not have the necessary transformers required. Williams requested cost investigated for adding transformers to poles at that end of town. GROUP "B" TOPICS: REVENUES & EXPENSES / GENERAL Item 1: Personal property taxes Finance Director Semmens distributed copies of his 10/ 15/0l memorandum regarding personal property tax noting a list of assessed values of personal property taxed by the Borough was attached. He also distributed a 11 / 1 / 02 memorandum that defined details and potential impacts of changes to the tax on personal property in the city. A lengthy discussion followed with comments including: • Kenai, Seldovia and Seward are the only Peninsula cities without an exemption on personal property tax. • Porter stated she was not interested in giving an exemption on just airplanes but wanted to give an exemption to be even with other communities as she felt it would be a selling point for Kenai. • Bookey asked how the loss in revenue of $65,000 with an exemption on aircraft would be recouped. He also stated he felt an exemption should be given for boats and other personal property if it is offered for aircraft. Because the difference in tax received to the city for an exemption on aircraft would be approximately $7,000, he did not feel that type of exemption was worth talking about. • Swarner stated she would prefer, if there is an exemption, it be across the board. • Moore stated, because the only group heard from was from aircraft owners, he was not prepared to do anything with personal property tax. • Bannock agreed and noted, the difference in tax revenue would have to be made up by property owners. COUNCIL WORK SESSION NOVEMBER 4, 2002 PAGE 2 A flat tax was suggested instead of an exemption as it was felt the perception would be more acceptable and because the Airport Commission had requested a flat tax be established, consideration should be given to that suggestion. Council requested the following from Administration: • Attorney Graves to prepare a memorandum defining the legal ramifications of offering an exemption on aircraft. • Finance Director Semmens to prepare a memorandum noting the financial ramifications to offering an exemption on aircraft. • Forward the memoranda to the Airport Commission for review and recommendation. Item 2. Senior housing rent increases Upon review of the information included in the packet of information council's consensus was to go forward with the senior housing rent increases as set forth in the October 29, 2002 memorandum from Senior Center Director Craig to City Manager Snow, i.e. $60.00 increase above the current rent charge for each apartment, plus tax. Porter suggested the rate increases be reviewed bi-annually and council had no objections. Council also agreed with the Senior Center rental increases also included in the October 29 memorandum. Item 3: Dock operations Bookey reported the Commission reviewed the dock funding, etc. very thoroughly and referred to minutes of several meetings which were included in the packet. The Commission's consensus was noted as: "... recommend to Council to continue dock operations as in the past, leasing a portion of the dock and maintaining the city's management over that portion the same as it is at present; credit the boating facilities fund with all harbor -related revenues, including the north and south side dip net parking fees, boat taxes, and fish taxes; and recommend increasing the fees for launching and parking." Comments included: • The "credit the boating facilities fund..." was figurative and not to be actual funds. • It was suggested the dip net fee could be raised to $50 and use a season pass, which would be easier on public safety employees. • The cost of the user fee has to relate to the cost to the city for the fishery. • Operations could be shortened when the facilities are not as busy. • The ramp cannot be used for cargo. COUNCIL WORK SESSION NOVEMBER 4, 2002 PAGE 3 • Increasing revenues would have to come mostly from boating and parking fees. • Direct Administration to run the dock under its purview with through adjustment of fee structures, etc. • There are still problems with the expenditures over revenues. • Fuel sales begin in May and sometimes last through September (as was the case this year). • If the dock is closed, the users would migrate out of Kenai. It is the only boat ramp in the lower river. The boats would leave the city and then there would be no personal property tax collected on them. Consensus of council was to direct Administration to blend the dock operations with the rest of the system and efficiently manage it. The Council will worry from where the funds will come. Keep the dock open. Item 4: Deferred building maintenance It was noted, initially $90,000 was included in the budget for building maintenance and was cut back to $40,000 during the last budget sessions. Referring to a suggestion a building maintenance fund be set up like the equipment fund, Semmens stated he believed it should stay as a normal budget item. Consensus of council: Be sure not to cut the building maintenance amounts from the budget and ensure $90,000 is set aside for maintenance each year. Item 5: Old library and jail status Whether it is the intention of the city to continue to own the buildings and lease them as they are currently was discussed. It was noted the buildings have repairs that will need to be addressed; the buildings are not worth a lot; and each time a maintenance problem arises, the lessees come to council for help as they are non -profits and have little means to address the repairs. Discussion followed whether the buildings could be sold to the non -profits, but the city continue ownership of the property. Consensus of council: City Attorney Graves was requested to investigate the matter and initiate correspondence with the current lessees as to their interest/desire to purchase the buildings. Item 6: Boys 8s Girls Club Partnering Council reviewed information included in the packet regarding the merging of the teen programs of the city and Boys 8, Girls Club which was as council had directed. Comments included: COUNCIL WORK SESSION NOVEMBER 4, 2002 PAGE 4 • Over time, this partnering would decrease the amount of city employees at the Recreation Center. • It is the desire of the city to have the Club stay permanently in Kenai. • A Kenai Advisory Group will be established. • City property availability information has been made available to the Club. • The Club wants to stay in Kenai and the city wants them to stay. • The proposed agreement between the city and the Club has been presented to the Club's Board of Directors and they are very supportive. • There will be no new expenses in blending the programs and there is a potential of less cost to the city. • It's a win/win situation in which the city has high participation in their teen programs and the Club's is low. It is felt this will be an effective way to offer teen programs for the community. Item 7: DOTP&F Maintenance Reductions Public Works Manager Kornelis referred to a letter from DOT which was included in the packet. He noted, the state will have less people with less equipment to maintain the Spur Highway. It is doubtful the state will clear any sidewalks, however that was not put in writing. He noted, the state's maintenance of the Spur Highway will not affect the city's winter maintenance program. Item 8: Maintenance of airport terminal Airport Manager Cronkhite explained the recent problems with rain water leaking from the atrium into the terminal. Caulk sealing will be done now and in the spring the caulking will be removed and the area resealed. It was also noted, the problem arises when the wind blows from the north. ADDITIONAL INFORMATION: Item 9: 10121 /02 Work Session Notes The work session adjourned at approximately 9:20 p.m. Notes transcribed and prepared by: Z. 0�, Carol L. Freas, City Clerk