HomeMy WebLinkAbout2002-12-04 Council MinutesITEM A:
AGENDA
KENAI CITY COUNCIL - REGULAR MEETING
DECEMBER 4, 2002
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
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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)
PROCLAMATION: KCHS Cheerleading Squad - State Champions/Spirit
Coaches Association State Competition, Small Varsity Division.
1.
2.
ITEM C:
ITEM D:
1.
2.
3.
4.
ITEM E:
1.
Jeff Sinz, Kenai Peninsula Borough -- Amendments to Kenai Peninsula
Borough Sales Tax Ordinance.
James Carter, Economic Development Council -- Economic Outlook
Forum December 6 & 7.
REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS
PUBLIC HEARINGS
Ordinance No. 1978-2002 -- Increasing Estimated Revenues and
Appropriations by $203,671 in the Street Improvement Capital Project
Fund.
Resolution No. 2002-76 -- Closing the 1974 Debt Service Fund.
Resolution No. 2002-77 -- Closing the Dock Facility Fund.
Resolution No. 2002-78 -- Transferring $8,800 in the Airport Terminal
Enterprise Fund for Elevator Equipment.
COMMISSION/ COMMITTEE REPORTS
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 8. Visitors Bureau Board
C. Alaska Municipal League Report
d. Kenai Chamber of Commerce
ITEM F: MINUTES
1. *Kenai City Council Work Session of November 4, 2002.
2. *Regular Meeting of November 20, 2002.
ITEM G: CORRESPONDENCE
ITEM H: OLD BUSINESS
ITEM I: NEW BUSINESS
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $2,500
3. *Ordinance No. 1979-2002 -- Increasing Estimated Revenues and
Appropriations by $195,153 in the General Fund or Transfer to the Debt
Service Fund.
4. *Ordinance No. 1980-2002 -- Replacing the Tables Referred to in the
Personnel Regulations at KMC 23.55 to Establish a New Salary Structure
to Comply with Minimum Wage Requirements.
5. *Ordinance No. 1981-2002 -- Increasing Estimated Revenues and
Appropriations by $12,223 in the Council on Aging Fund for Purchase of
a Vehicle.
6. *Ordinance No. 1982-2002 -- Amending KMC 23.30.050(d) to Allow
Management Greater Workforce Scheduling Flexibility by Changing the
Normal Work Period to Forty Hours a Week Rather Than "Forty Hours
Per Week/ Eight Hours Per Day" and Allowing Management More
Discretion in Adjusting Operating Hours.
7.
ITEM J:
ITEM K!
Approval -- Special Use Permit/Alaska's Best Travel -- Lease of Airport
Terminal Office Space, Space 34A.
REPORT OF THE MAYOR
ADMINISTRATION REPORTS
1. City Manager
2. Attorney
3. City Clerk
ITEM L: DISCUSSION
1. Citizens (live minutes)
2. Council
EXECUTIVE SESSION - None Scheduled
ITEM M: ADJOURNMENT
KENAI CITY COUNCIL - REGULAR MEETING
DECEMBER 4, 2002
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
VICE -MAYOR JAMES BOOKEY, PRESIDING
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MINUTES
ITEM A: CALL TO ORDER
Vice -Mayor Bookey called the meeting to order at approximately 7:03 p.m. in the
Council Chambers in the Kenai City Hall Building.
A-1.
PLEDGE OF ALLEGIANCE
Vice -Mayor Bookey led those assembled in the Pledge of Allegiance.
A-2, Roll Call
Roll was taken by the Deputy Clerk.
Present: Jackman, Bookey, Swarner, Moore, Porter, Bannock
Absent: Williams
A-3. AGENDA APPROVAL
MOTION:
Councilwoman Swarner MOVED to approve the agenda as presented and Councilman
Moore SECONDED the motion. There were no objections. SO ORDERED.
A-4, CONSENT AGENDA
MOTION:
Councilwoman Swarner MOVED to approve the consent agenda as presented and
Councilwoman Porter SECONDED the motion. There were no objections. SO
ORDERED.
ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes)
PROCLAMATION: KCHS Cheerleading Squad - State Champions/Spirit
Coaches Association State Competition, Small Varsity Division.
Vice -Mayor Bookey read and presented the KCHS cheerleading squad a proclamation
in congratulations for winning the State Championship in the Small Varsity Division.
In addition, Bookey congratulated Coach Kelly Gifford for being named Coach of the
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 2
Year. The squad performed a brief cheer and the meeting took a break for cake and
refreshments.
BREAK: 7:10 P.M.
BACK TO ORDER: 7:25 P.M.
B-1, Jeff Sinz, Kenai Peninsula Borough -- Amendments to Kenai
Peninsula Borough Sales Tax Ordinance.
Sinz presented the Council with a summary of the sales tax committee suggestions,
the ordinance itself, and a summary listing of each specific change, which served as a
guideline to the PowerPoint presentation outlining amendments to the Kenai
Peninsula Sales Tax Ordinance (ORD 2002-39) .
Sinz provided a history of the Kenai Peninsula Ordinance and stated there had been
91 individual ordinances since it became effective on July 1, 1965; 48 of those
ordinances had been enacted, though many attempts have been made to take a broad
look and make significant revisions. The reviewing committee was appointed by then
Assembly President Navarre and is comprised of three Assembly members and three
borough administration representatives who proposed fifteen changes to the
ordinance.
The following proposed amendments were discussed by Sinz:
5.18.140 Clarifies the Mayor has authority to determine appropriate
application of fees.
5.18.200 A Clarifies that the health care exemption applies to human health
care and prescriptions for human by persons.
5.18.200 (A) (17) Establishes exemption for childcare and adult daycare services.
Eliminates current unnatural competition between for -profit and
not -for -profit entities.
5.18.200 (A) (18) Clarifies exempt status of services performed under warranties
and service agreements.
5.18.200 C. Limits tax exempt seller, status on 501(c) corporations when
competing with for -profit entities. Requires all exempt 501(c)
sellers first be approved by borough.
5.18.210 Makes lodging and meals eligible for resale treatment.
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 3
5.18.225 To reduce cost of owner/builder card from $200 to $100 and to
make services exempt when purchased with owner builder card.
5.18.240 Requires that resale card recipients be in full compliance with all
provisions of sales tax code.
5.18.400 B. Clarifies that vending machine sales are taxable on a per
transaction basis.
5.18.420 & 430 Clarifies tax rate on installment sales and vehicle leases is that in
effect at time of sale.
5.18.430 Tax services based on the invoicing practice of the provider.
5.18.430 & 900 Tax recreational sales on a per person per day basis.
5.18.450 Clarifies the point of sale of goods is generally the retail outlet
from which they were sold.
5.18.500 Makes quarterly filing the standard and increase flexibility of
administration to approve business specific sales tax return filing
schedules.
5.18.900 Definitions added and/or amended to provide clarity. (Utilities,
recreational sales, vending machines).
Added Amendment: Sales of all newspapers are tax-exempt within Borough regardless
of method of purchase.
Areas not changed at this particular time included a seasonal sales tax, 5% Borough
tax change, utility exemptions, food sales exemptions, alcohol and tobacco sales made
by non-profit organizations taxable, and rental exemptions.
Councilman Moore inquired as to the criteria required for a corporation to be
classified as a 501(c). Sinz replied the Borough will be developing policies for this
issue, but some criteria will involve reviewing the fundraising activities of the
organization and the degree of competition with for -profit entities.
Councilman Bannock requested additional information regarding 5.18.200 (A) (18).
Bannock was specifically inquiring about the last line reading "Any portion of a repair
paid by the customer through a deductible or other means is not exempt under this
section." Bannock stated this new addition hinders the clarification effort as a
different rate of tax could potentially be paid; additionally, he wondered why the
deductible was an issue. Bannock stated he felt this was inequitable. In response to
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 4
Bannock, Sinz stated he would be happy to reconsider the verbiage and content of this
amendment and that the true intent was to prevent double taxation. Sinz encouraged
Bannock to discuss this issue with him.
Councilwoman Swarner asked when these amendments would come into effect and
was told the original target date was January 2003, but due to revisions and other
reconsiderations the new target date is April 1, 2003. Swarner also inquired about the
cap issue and was told the Borough intends to investigate a cap increase in the
upcoming months.
B-2. James Carter, Economic Development Council -- Economic Outlook
Forum December 6 & 7.
Carter provided the Council with an agenda and schedule for the Economic Outlook
Forum and invited all to attend on December 6 & 7 at the Kenai Peninsula College.
Carter reminded the Council that last year the city helped cover some of the expenses
of the Forum and if such help could be offered this year, the EDD would be very
appreciative.
Carter stated many topics will be covered this year to help small businesses gain a
better knowledge of small business needs and to better understand and aid in the
creation and education of starting and sustaining businesses in the Kenai area.
Carter stated providing forums provides very useful insight to community needs.
ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS
Assemblywoman Glick stated she had nothing new to report; the next Assembly
meeting is December 10, 2002 and a report on that meeting will be provided at the
following Council meeting.
ITEM D: PUBLIC HEARINGS
D-1. Ordinance No. 1978-2002 -- Increasing Estimated Revenues and
Appropriations by $203,671 in the Street Improvement Capital Project
Fund.
MOTION:
Councilwoman Swarner MOVED to approve Ordinance No. 1978-2002 and
Councilwoman Porter SECONDED the motion.
There were no public or council comments.
KENAI CITY COUNCIL MEETING
DECEMBER 4 2002
PAGE 5
VOTE:
Jackman
Yes
Williams
Absent
Bookey
Yes
Swarner
Yes
Moore
Yes
Porter
Yes
Bannock
Yes
MOTION PASSED UNANIMOUSLY.
D-2, Resolution No. 2002-76 -- Closing the 1974 Debt Service Fund.
MOTION:
Councilman Moore MOVED to approve Resolution No. 2002-76 and Councilman
Bannock SECONDED the motion.
There were no public comments.
Councilman Moore asked Finance Director Semmens to explain the proposed
resolution. Semmens stated this debt service fund was established to pay on a bond
issue financed in 1974. To date, all but the assessments have been paid but will be
covered when the area is sold. Closing the debt service fund will present no impact to
the city whatsoever.
VOTE:
Jackman
Yes
Williams
Absent
Bookey
Yes
Swarner
Yes
Moore
Yes
Porter
Yes
Bannock
Yes
MOTION PASSED UNANIMOUSLY.
D-3, Resolution No. 2002-77 -- Closing the Dock Facility Fund.
MOTION:
Councilwoman Swarner MOVED to approve Resolution No. 2002-77 and requested
UNANIMOUS CONSENT. Councilwoman Porter SECONDED the motion. There were
no objections. SO ORDERED.
D-4, Resolution No. 2002-78 -- Transferring $8,800 in the Airport Terminal
Enterprise Fund for Elevator Equipment.
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 6
MOTION.
Councilwoman Jackman MOVED to approve Resolution No. 2002-78 and requested
UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There
were no objections. SO ORDERED.
ITEM E: COMMISSION / COMMITTEE REPORTS
E-1. Council on Aging -- Councilwoman Swarner stated the next Council on
Aging meeting would be held at 10 a.m. December 5, 2002.
E-2. Airport Commission -- Councilwoman Jackman reported the minutes
from the last Airport Commission meeting were included in the packet and the
December 12, 2002 meeting will be held at the new Airport Operations Facility.
E-3. Harbor Commission -- Vice -Mayor Bookey reported the next Harbor
Commission meeting is scheduled for December 9, 2002.
E-4, Library Commission -- Councilman Moore reported the following:
• Library circulation is up 13% compared to last year.
• The Open House is scheduled for December 12 from 4-7 p.m.
• Writers Night is scheduled for March 6, 2003.
• The Library Commission discussed its plans for planning a visioning
session which would invite suggestions from the community, commissioners, and all
who are interested in providing input to how, and in which areas, the library should
focus. Moore stated Library Director Jankowska would be making arrangements for
this work session (tentatively planned for January 2003) . Moore will inform the
Council when additional information is known.
E-5. Parks & Recreation Commission -- No report
E-6. Planning & Zoning Commission -- No report
E-7. Miscellaneous Commissions and Committees
E-7a. Beautification Committee -- Councilwoman Swarner requested Council
cancel the December 10, 2002 Beautification Committee meeting; there were no
objections. The next regularly scheduled Beautification meeting will be February 11,
2003.
E-7b, Kenai Convention 8& Visitors Bureau Board -- No report
E-7c. Alaska Municipal League Report -- No report
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 7
E-7d. Kenai Chamber of Commerce -- No report
ITEM F: MINUTES
F-1. Kenai City Council Work Session of November 4, 2002 -- Approved by
consent agenda.
F-2.
agenda.
ITEM G:
ITEM H:
ITEM I:
� MOTION:
Regular Meeting of November 20, 2002 -- Approved by consent
CORRESPONDENCE -- None
OLD BUSINESS -- None
NEW BUSINESS
Bills to be Paid, Bills to be Ratified
Councilwoman Swarner MOVED to pay the bills and Councilman Moore SECONDED
the motions. There were no objections. SO ORDERED.
I-2. Purchase Orders Exceeding $2,500
MOTION:
Councilwoman Swarner MOVED to approve purchase orders exceeding $2,500 and
Councilwoman Jackman SECONDED the motion. There were no objections. SO
ORDERED,
I-3. Ordinance No. 1979-2002 -- Increasing Estimated Revenues and
Appropriations by $195,153 in the General Fund or Transfer to the Debt
Service Fund.
Introduced by consent agenda.
I-4. Ordinance No. 1980-2002 -- Replacing the Tables Referred to in the
Personnel Regulations at KMC 23.55 to Establish a New Salary Structure
to Comply with Minimum Wage Requirements.
Introduced by consent agenda.
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 8
I-5. Ordinance No. 1981-2002 -- Increasing Estimated Revenues and
Appropriations by $12,223 in the Council on Aging Fund for Purchase of
a Vehicle.
Introduced by consent agenda.
I-6. Ordinance No. 1982-2002 -- Amending KMC 23.30.050(d) to Allow
Management Greater Workforce Scheduling Flexibility by Changing the
Normal Work Period to Forty Hours a Week Rather Than "Forty Hours
Per Week/ Eight Hours Per Day" and Allowing Management More
Discretion in Adjusting Operating Hours.
Introduced by consent agenda.
I-7. Approval -- Special Use Permit/Alaska's Best Travel -- Lease of Airport
Terminal Office Space, Space 34A.
Councilman Bannock stated this request seems to be a special situation, with only
half of the space available being used. Airport Director Cronkhite stated the back half
is not in use, but the renter agrees to partition off the area in the event the other half
of the space is rented.
MOTION:
Councilwoman Jackman MOVED to approve the special use permit/lease of
airport terminal office space, space 34A and requested UNANIMOUS CONSENT.
Councilman Bannock SECONDED the motion. There were no objections. SO
ORDERED,
ITEM J: REPORT OF THE MAYOR
Vice -Mayor Bookey reported the following:
• Regarding the invitation to area legislators to meet with the Kenai City
Council prior to their leaving for Juneau, Council requested Tuesday, January 7, 2003
as the meeting date.
• Regarding a joint work session and dinner with the Soldotna City
Council, the Kenai City Council agreed on providing January 16, 20 or 23 as options
for meeting.
ITEM K:
ADMINISTRATION REPORTS
K-1. City Manager -- Manager Snow reported the following:
• A Corps of Engineers meeting was held earlier in the day and a baseline
survey on invertebrates, plankton, birds, etc. was discussed. The Corps has
KENAI CITY COUNCIL MEETING
DECEMBER 4, 2002
PAGE 9
formulated a tentative work plan, which is broken into three studies; biological,
hydrology, and sedimentation. Snow stated she felt the Corps is very supportive of
City of Kenai administration and the bluff erosion project; though the Alaska
Department of Fish and Game seemed less enthusiastic and helpful.
K-2. Attorney -- No report
K-3 9 City Clerk -- No report
ITEM L: DISCUSSION
L-1. Citizens
Bob Peters, Kenai, stated he too attended the earlier meeting with the Army Corps of
Engineers and agreed with Manager Snow's opinion the Corps is supportive of the City
of Kenai in general, and the bluff erosion project in particular. Peters continued by
stating he perceived the Alaska Department of Fish and Game to be `stalling' on both
the bluff erosion project and the coastal trail project.
L-2. Council
Swarner -- Stated she agreed with Peter's comments and felt the statement
from ADF&G regarding their lack of information on the lower portion the Kenai River
could be a tactic used to persuade the city to fund research projects for their use.
Moore -- Thanked Kornelis and Snow and stated they did a good job in the
earlier bluff erosion project meeting.
Jackman -- No comments.
Porter -- No comments.
Bannock -- No comments.
EXECUTIVE SESSION -- None Scheduled
ITEM M:
ADJOURNMENT
The meeting adjourned at approximately 9:10 p.m.
Minutes transcribed an prepared by:
� §Iflar-on M. Harris, Depu y Clerk
APPROVED By COUNC"
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