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HomeMy WebLinkAbout2002-12-18 Council MinutesAGENDA KENAI CITY COUNCIL -- REGULAR MEETING DECEMBER 18, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt : Z Z www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and 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. Tim Wisniewski, Dick Hultberg, Jack Castimore, Dale Sandahl -- Proposed Playing Field Complex/ Section 36 ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS 1. Ordinance No. 1979-2002 -- Increasing Estimated Revenues and Appropriations by $195,153 in the General Fund for Transfer to the Debt Service Fund. 2. 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. 3. Ordinance No. 1981-2002 -- Increasing Estimated Revenues and Appropriations by $12,223 in the Council on Aging Fund for Purchase of a Vehicle. 4. 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. -1- 5. Resolution No. 2002-79 -- Formally Accepting an Increase to ADEC Grant No. 47547 from the State of Alaska, Department of Environmental Conservation in the Amount of $950,000 for Well House No. 4 and Water Mains. 6. *Liquor License Renewal -- Peninsula Oilers/Recreational Site -- Seasonal. ITEM E: 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 1. *Regular Meeting of December 4, 2002. 2. *Council Work Session Notes of November 18, 2002. ITEM G: ITEM H: ITEM I: 1. CORRESPONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 2002-1983 -- Adding KMC 7.15.035 to Allow for the Solicitation and Award of Construction Contracts by Competitive Sealed Proposal. 4. *Ordinance No. 2002-1984-- Amending KMC 14.20.280(c) to Remove the Requirement that Notification of Public Hearings Be Sent Via Certified Mail 5. Discussion-- Report to Council/McCollum-Aliak Drive Proposed LID 6. Discussion -- Rental Car Fees and Taxes -2- ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTR.ATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -- None Scheduled ITEM M: ADJOURNMENT -3- KENAI CITY COUNCIL -- REGULAR MEETING DECEMBER 18 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:04 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Williams, Swarner, Moore, Porter, and Bannock. Absent was: Bookey and Jackman A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-3, Persons Scheduled to be Heard -- T.J. Cox and August Lindal regarding Close -Up Program at KCHS. MOTION: Councilwoman Swarner MOVED for approval of the amended agenda and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. A-4, CONSENT AGENDA MOTION: Councilwoman Swarner MOVED for approval of the consent as presented and Councilman Bannock SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) KENAI CITY COUNCIL MEETING DECEMBER 18 2002 PAGE 2 B-1, Tim Wisniewski, Dick Hultberg, Jack Castimore, Dale Sandahl -- Proposed Playing Field Complex/ Section 36 Jack Castimore, Vice -Chair, Parks & Recreation Commission -- Castimore noted the Commission developed the proposed development plan for a future playing field complex due to concerns of future soccer, softball, and baseball field needs as well as Commission and community interest in developing dirt bike trails for recreational purposes. The Commission's efforts in developing the plan was to address the future. Dale Sandahl, Parks & Recreation Commission Member, 3560 Kenaitze Court, Kenai -- Sandahl referred to council comments made at a recent council work session to rethink the use of Section 36 property for the proposed complex due to possible contamination problems. He added, the Commission was confused by comments the land could not be disturbed and used for what the Commission had invested time and effort in developing. He asked if the property had been tested. Attorney Graves reported he and Public Works Director La Shot have discussed the issue and noted, if excavation is done and bad substances are found, the find must be reported to DEC and DEC would direct the city to clean up the site at the city's expense. He added, Administration would prefer adding material on top of the current site as drilling test holes could have unintentional consequences. He added, the property would need to be developed carefully. Graves noted he would be attending a seminar on the Brown Fields Redevelopment Act and will be contacting DEC about what can and cannot be developed on the site. Mayor Williams explained the dump was used for 30 years and much of that time, there were no rules of what could be placed there. He added, the city could not afford to find there are contaminated soils and be responsible for cleaning the site. Sandahl stated, it was then his understanding the Commission's direction would not be to look for another site until getting a definitive answer from Administration. Williams added, the project would also have to be funded and that would be in the future. However, at this time it would be safe to allow Graves time to investigate the issue first. Richard Hultberg, Parks & Recreation Commission, 1618 Fathom Drive, Kenai -- Noted there is a large interest to develop a BMX Bike Trail for recreational use as well as for holding competitions. He explained there had been a volunteer effort to develop the trails, but that effort had dwindled. Hultberg noted, he felt there was a lot of opportunity for Kenai to be a tournament destination for a variety of sporting events, i.e. biking, soccer, etc. in addition to softball and Little League Baseball. Whether a design cost estimate had been prepared was asked and Parks & Recreation Director Frates noted, the first step would be to determine whether the property could KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 3 be used. Williams noted, funding was short and there were other projects already a concern, i.e. library expansion, maintenance shop expansion, etc. and he added, the city voters were not willing to vote in favor of bonds. Sandahl stated they understood funding was a concern and suggested the project could be done in stages, well in the future, and possibly with volunteer assistance. B-2. T.J. Cox and August Lindal -- Close -Up Program at KCHS. Cox reported the Close -Up Program at KCHS had been active since 1971 with groups of students traveling to Washington, DC each year to visit the Capital, monuments, etc. Cox explained the costs involved to participate in the trip and requested a donation from council to aid the program. Council discussed the prospects of donating toward the program and it was noted there were funds available in their travel budget which were not used for attending the NLC Conference, etc. MOTION: Councilwoman Porter MOVED to contribute $500 toward the Close -Up Program at KCHS and Councilman Bannock SECONDED the motion. Discussion followed. Swarner noted she supported the efforts of the Close -Up Program, but objected to making a donation for something not included in the budget. Councilman Moore agreed and noted council had removed smaller amount donations from their budget and couldn't support the expenditure. Bannock stated he supported the donation as he felt it, like the Youth Court donation, was good for the community and urged council to support the donation. Porter also supported the donation, noting it is a great program for young adults. Moore noted, council had received a number of requests for donations by letter, for which funds had not been included in the budget, and the issue was not debated and donations were not given. He added, it was difficult to support this request when the others were not funded. Moore noted, he was aware of other groups that may want to request funds as well. VOTE: Williams Yes Bookey Absent Swarner No Moore No Porter Yes Bannock Yes Jackman Absent MOTION FAILED. KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 4 Moore noted the council would begin budget work sessions in April and invited Cox and Lindal to make a request at that time for consideration. ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS Assembly Vice President Betty Glick reported on actions taken by the Assembly at their December 10 meeting. Among other items, she noted: • The Assembly reviewed the capital request Borough priority list for presentation to the Legislature. A resolution supporting the list will be before the Assembly for consideration at their next meeting. The Assembly will be modifying the format next year to make it less cumbersome. • The amendment to the borough's sales tax ordinance received its last public hearing and was passed with several amendments, including one referring to sales tax for recreational uses. • A resolution of support for a dental clinic for the under- and uninsured was withdrawn due to notice received from the Department of Health 8z; Social Services indicating another funding source. It was also noted, if the borough does participate for this clinic it would do so through the Hospital Service Area. BREAK TAKEN: 8:07 P.M. BACK TO ORDER: 8:24 P.M. ITEM D. PUBLIC HEARINGS D-1. Ordinance No. 1979-2002 -- Increasing Estimated Revenues and Appropriations by $195,153 in the General Fund for Transfer to the Debt Service Fund. MOTION: Councilwoman Swarner MOVED to adopt Ordinance No. 1979-2002 and Councilman Bannock SECONDED the motion. There were no public or council comments. Finance Director Semmens explained, the transfer would cover a deficit occurring from past non-payment of assessments. VOTE: Williams Yes Bookey Absent Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Absent KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 5 MOTION PASSED UNANIMOUSLY. D-2. 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. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1980-2002 and Councilwoman Porter SECONDED the motion. There were no public or council comments. VOTE: Williams Yes Bookey Absent Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Absent MOTION PASSED UNANIMOUSLY. D-3. Ordinance No. 1981-2002 -- Increasing Estimated Revenues and Appropriations by $12,223 in the Council on Aging Fund for Purchase of a Vehicle. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1981-2002 and Councilman Moore SECONDED the motion. There were no public or council comments. VOTE: Williams Yes Bookey Absent Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Absent MOTION PASSED UNANIMOUSLY. D-4. Ordinance No. 1982-2002 -- Amending KMC 23.30.050(d) to Allow Management Greater Workforce Scheduling Flexibility by Changing the Normal Work Period to Fort Hours a Week Rather Than "For Hours y "Forty u KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 6 Per Week/ Eight Hours Per Day" and Allowing Management More Discretion in Adjusting Operating Hours. MOTION: Councilwoman Porter MOVED for approval of Ordinance No. 1982-2002 and Councilman Bannock SECONDED the motion. There were no public comments. Williams explained, if passed the ordinance would allow the city manager flexibility to schedule work hours. City Manager Snow was asked if there would be potential cost savings and she noted, without some trial scheduling in some of the departments, she was not able to state there would be. VOTE: Williams Yes Bookey Absent Swarner Yes Moore Yes Porter Yes Bannock Yes Jackman Absent MOTION PASSED UNANIMOUSLY. D-5, Resolution No. 2002-79 -- Formally Accepting an Increase to ADEC Grant No. 47547 from the State of Alaska, Department of Environmental Conservation in the Amount of $950,000 for Well House No. 4 and Water Mains. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2002-79 and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. There were no public comments. Public Works Manager Kornelis explained, two grants were received from DEC which will be combined to increase an existing grant. Snow noted, this is a 50% matching grant and the city would have to provide $950,000 which would drain the water fund. It was noted the water/sewer rates had not increased since 1993. Williams requested administration compare the water/sewer rates with other cities on the Peninsula as well as other areas of the state. VOTE: There were no objections. SO ORDERED. � J KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 7 D-6, Liquor License Renewal -- Peninsula Oilers/Recreational Site -- Seasonal. Approved by consent agenda. ITEM E: COMMISSION / COMMITTEE REPORTS E-1. Council on Aging -- Councilwoman Swarner reported the following items: • The unapproved minutes were included in the packet. • A correction was needed to the minutes to the date of the New Year's party, i.e. December 31 instead of January 1. • The Senior Connection continues their work on the assisted living facility grant situation. • Betty Nelson resigned from the Council on Aging. City Clerk Freas was requested to send a thank -you letter to Nelson for her dedication to the Council on Aging. Williams noted there would be a meeting regarding assisted living potentials for partnering, etc. on Friday at 9:00 a.m. in the Clerk's Conference Room. E-2. Airport Commission -- No report. Williams requested Airport Manager Cronkhite be informed the new State of Alaska Director of Airport Security would like to meet with Cronkhite and the Airport Commission (and maybe council) in the near future. E-3. Harbor Commission -- Public Works Manager Kornelis reported the Commission met on December 9 and discussed the coastal trail and information garnered from a meeting with the Corps of Engineers. The Commission's next meeting is scheduled for January 6. Kornelis added, administration plans to keep in contact with the Corps and not let the project lose momentum. City Manager Snow noted the Corps wants to move forward with the project, however the other agencies could object to it if they don't have the information they feel they need. She requested comments from council: • Williams stated, after 20 years in regard to this project, he didn't feel the agencies would allow the project to go forward no matter how much information they have. • Swarner stated she noticed there were different representatives for the different agencies at the recent meeting. She added, every time a new person is involved, they want additional information. Swarner continued, one of the agencies wants information for below the bridge and all the studies have been about the river above the bridge. She suggested the agencies could get copies of studies done by the KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 8 Watershed Forum. Kornelis noted, those studies would be available, however they are mostly about hydrocarbon, chloroforms, etc.; quality instead of biology. Swarner asked if a letter could be requested stating exactly what information they want. Kornelis explained, he has a list of every study, etc. that has been done. Peratrovich, Nottingham & Drage had done a strategy of how to answer questions that could be asked. Now the agencies have more questions. He added, the Corps is looking at biology, hydrocarbons and sedimentation. The Corps will be signing the permit. He also noted, the EPA has concerns. • Councilman Bannock suggested a list of all the reports done in the last 20 years be submitted and indicate all the studies had been paid for by the city and now it's their turn to find the answer. He added, he believed the city should go on the offense. E-4. Library Commission -- Councilman Moore reported the minutes of the December meeting were included in the packet. The next Commission meeting will be held on January 7. He noted, the annual open house was a great success and commended the efforts of the Friends of the Library, Commission and staff in making it such a success. E-5. Parks & Recreation Commission -- Councilwoman Porter reported the following: • Minutes of the December meeting were included in the packet. • The main topic was the proposed sports complex using Section 36 property (discussed at the beginning of this meeting) . • Effort is being made to acquire additional skateboard equipment and to move the park closer to the softball fields, which will require a conditional use permit. Parks & Recreation Director noted the warm-up shacks at the hockey rink should be completed by the weekend. Swarner asked if there would be outside lights directed at the parking lot at the facility and it was explained lights are on the building, but due to some electrical problems they had not been lit. However, those problems had been corrected and the lights were now working. Frates reported he would probably have a use report on the facility in the next packet. Williams reported a luncheon would be held at the Challenger Center for the advance party of the Arctic Winter Games on January 17. A decision of whether the Games would be held on the Peninsula could be made within a week after that visit or as late as March. E-6. Planning & Zoning Commission -- Councilman Bannock reported the following items: KENAI CITY COUNCIL MEETING DECEMBER 18 2002 PAGE 9 • A resolution recommending amendment of the Kenai Municipal Code to delete the requirement of certified mailings for public hearings. This item will before council as a public hearing at the January 2 meeting. • A variance for off-street parking was approved with a caveat that if a problem arises, the matter will be readdressed. 0 Buildings were found to be misaddressed along Frontage Road (initial addressing was made 30 years prior using Spur Highway addresses) and will be changed. E-7. Miscellaneous Commissions and Committees E-7a. Beautification Committee -- No meeting, no report. E-7b. Kenai Convention & Visitors Bureau Board -- It was noted minutes of past meetings and a report were included in the packet. E-7c. Alaska Municipal League Report -- No report. E-7d. Kenai Chamber of Commerce -- No report. ITEM F! MTNTTTPq F-1. Regular Meeting of December 4, 2002 -- Approved by consent agenda. F-2. Council Work Session Notes of November 18, 2002 -- Approved by consent agenda. ITEM G: CORRESPONDENCE -- None. ITEM H: OLD BUSINESS -- None. ITEM I: NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, I-2., Purchase Orders Exceeding $2,500 MOTION: KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 10 Councilwoman Swarner MOVED to approve the increase to the existing purchase order and Councilman Moore SECONDED the motion. It was noted the purchase order was increased because the anticipated cost came in higher when construction started due to the volunteers recommending expansion of the shacks. The funds were for materials only and would come from the project fund. VOTE: There were no objections. SO ORDERED, I-3, Ordinance No. 2002-1983 -- Adding KMC 7.15.035 to Allow for the Solicitation and Award of Construction Contracts by Competitive Sealed Proposal. Introduced by consent agenda. Ordinance No. 2002-1984-- Amending KMC 14.20.280(c) to Remove the Requirement that Notification of Public Hearings Be Sent Via Certified Mail. Introduced by consent agenda. I-5. Discussion-- Report to Council/McCollum-Aliak Drive Proposed LID City Manager Snow reported a new L.I.D. request had been received with 25 properties identified and 13 of the property owners signed the petition. Administration recommended the city provide 70%, the owners 25%, and the General Fund five percent of the construction costs. She noted, the revised summary of street improvements for FY2004 indicates the completion of this project would be contingent upon the receipt of state matching grant money. Snow also reported, due to the roads in this proposed L.I.D. being irregularly shaped, council may want to base the preliminary assessment roll costs on another formula, i.e. linear foot instead of square foot. Public Works Manager Kornelis explained, the amount of state funding to be received by the city will depend on whether the Legislature uses the same formula as in the past. He added, the amount of state funding would be known in July, 2003. Discussion followed in which hesitancy was expressed to bring the project forward without knowing the amount of funding to be received from the Legislature. Snow suggested the resolution to proceed could be written to state the project would continue contingent on funding being received. KENAI CITY COUNCIL MEETING DECEMBER 18 2002 PAGE 11 Swarner stated she felt this should be the next street to be paved but she didn't want to get residents' hopes up if funding is not available. Williams stated he wanted all of the resolutions to include the same wording, i.e. that the final project is contingent upon receiving state funding. Williams also noted he would insist all right-of-ways be finalized and all owners of properties with right-of-way issues be informed that parts of their properties will be replatted, etc. Kornelis noted, he had included additional funding in his budget for right-of-way dedication, etc. Council also indicated their preference the resolution for the public hearing be held as long as allowable to be closer to the date when it will be known the amount of funding to be received from the Legislature. MOTION: Councilman Bannock MOVED to direct administration to continue as outlined in the memorandum (included in the packet) and Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED, I-6, Discussion -- Rental Car Fees and Taxes Councilman Bannock requested to step down from the dais to speak to the issue and permission was granted. Duane Bannock, Kenai Chrysler Center -- Bannock referred to the City Attorney memorandum included in the packet, along with two proposed ordinances; one for an off -airport rental car fee and one for a citywide rental car tax. Bannock noted his comments were in regard to an off -airport rental car tax. He stated, it was his opinion this issue came to the council at this time due to non -truth. Bannock explained, the "Great Alaska Car Company," is an off -airport car rental company and is a division of the Kenai Chrysler Center and does lots of business in Kenai Peninsula, Anchorage, Homer, Seward and Juneau. Information brought to the Commission indicated the on -airport vendors pay tax on rentals and the off -airport companies do not. He added, the on -airport companies have a lease agreement with the city which stipulates their rent is based on $1.65/sq. ft. for booth space and ten percent of the gross revenues in rentals. He added, he believed there was a dramatic difference between rent and fee. Bannock continued by noting the Airport Commission has been led to believe this is an unfair fee that is charged to the concessionaires (on -site car rental companies) and he believed it is not a fee, but a rent and it is paid from the profits. He added, the Airport Manager has suggested new sources of revenue source need to be found and they were identified as a parking lot fee (the Manager's recommendation was to not do anything with the parking fees because enplanements are down due to ERA Aviation's rates and that travelers may decide not to use the airlines and drive if additional costs KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 12 are required) and off -airport car rental fees because they use the parking lot for storing cars, using the facility for free and taking revenue from the people paying rent. Bannock distributed a rental receipt from Hertz and noted, they were not paying rent, but charging their rent to the client. He suggested other businesses, i.e. hotels, taxicabs, etc. might want to charge a similar fee to recoup their costs. Williams stated, in the traditional sense of the word, rent is something you pay for the use of a space, i.e. office, storefront, etc. The city rents a square foot area to a car rental company. He added, he differed with Bannock's comment the airport concession fee is rent because rent, in a traditional sense, drawn from the gross revenues, is not rent for a traditional space, i.e. square foot, storefront, etc., it is a fee being charged against the gross revenue of the car rental. Williams continued, he also believed administration understands what the airport concession fee is as being stated as the ten percent of gross rent. Attorney Graves explained, the terminology in the lease agreement is used interchangeably at various points. However, one section refers to it as rent. He referred to the concession agreement and noted paragraph 2 talks about the ten percent fee; paragraph 1 speaks of the $1.65/sq. ft. ; and paragraph 3 states, "...in addition to the rent specified above, lessee agrees to pay `x'." He added, though the terminology is lose, he and the Finance Director historically consider it to be a rental package. Finance Director Semmens agreed and added, he believed the ten percent clearly, under the lease, is part of the rent. He noted, it is another method of paying rent. Bannock stated the suggestion that it is unfair to the on -site concessionaires to pay the fee is wrong. Porter stated she felt it was a fee the council is charging a person who is renting a car and the money would come back to the city. Swarner asked how and what facilities the Great Alaska Car Company uses at the airport. Bannock answered, the parking lot (leaving a car in the no -fee parking lot for a renter) and the renter dropping the car off in the parking lot when leaving on a flight from the city. He added, there are times the cars are not picked up and are left in the parking lot and should be towed. Porter asked if the- cars are ever towed and Bannock answered, not since 1997. Porter noted, if the city can't enforce the towing of vehicles, how could the off -airport car rental businesses be tracked. Williams noted, the memorandum indicated the fee would be collected by the city because the borough would not collect it. Bannock stated, his company was taking advantage of the free public parking lot. He added, forget about free and suggested the city initiate a pay parking lot so if he wants to leave a car there he pays. Williams noted, the parking lot clearing was begun in order to plow the parking lot in the winter. KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 13 Councilman Moore asked how his customers get the keys to the vehicle that is left in the parking lot, i.e. is he using the airport to transfer keys to the vehicle. Bannock answered, on occasion they use the employees at ERA for key exchange. He added, the airport is not giving anything up for him to be able to do what he does. Moore asked where the rental paperwork is signed, etc. and Bannock noted, they use credit cards and e-commerce. Williams noted, it is a policy call for the council whether to implement a fee. Porter stated she didn't think she could support the ordinance because of the enforcement of it. She added, she didn't think the airport is big enough to deal with it. Bannock noted in the last Airport Commission meeting, the Commission understood the issue would now go to the council. Acting Airport Manager Bondurant noted, the Commission would be discussing the ordinance at their next meeting. Bannock added, the Commission thinks they are recommending Option I. Swarner asked how many other rental car companies is he aware of that operate on the Peninsula and Bannock answered, he was not sure. Williams suggested finding out if there are other off -airport car rental companies using the airport and how difficult it would be to enforce the ordinance. He added, he believed the Commission should discuss it further as well as they had not seen the ordinance draft. Porter stated she was bothered by the airport concession fee on the Hertz receipt. She noted, it was the presentation of the wording. Williams noted it is not the city's responsibility to dictate how the individual companies identify charges in their billings. He added, it is a method Hertz Rent -a -Car uses to track the costs on behalf of the customer. Bannock questioned what the gross amount is on the billing and what amount was due to the city. Williams directed the issue return back to the Airport Commission for further discussion and the City Attorney examine the contracts to see if wording changes are needed and allow administration to discuss the interpretation and decide whether they are agreeable to the funding as it applies. Swarner noted the receipt does not refer to an ACF (airport concession fee) . Bannock noted, that is the Commission's concern: the on -airport concessionaires pay it and his company does not. Bannock suggested the wording be revenue enhancement. He added, there are no costs going up associated with off -airport rental car parking and it is free money. Porter asked if there are other companies billing for an airport concession fee and Williams stated he believed the concessionaires should have broad discretion of what they want to call it as one company may be called something else by another company. He noted, this company is using that wording to define that charge and it could be defined differently by another company. KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 14 Graves added, he and Snow discussed including language of how fees can be represented on billings and how they are charged, and will be discussing it further when the lease agreements come up for renewal. Porter asked if an addendum can be added to the lease if it is an issue and Graves answered, an addendum is a modification to their contract and requires their consent. He added, there is an issue of whether they have been paying the proper gross and Semmens is investigating it. Moore stated he would concede the ten percent is part of the rent. Williams noted, it is a payment in lieu of rent based on the special area in which the service is being rendered, i.e, the airport. Bannock noted, his company is not afforded parking spaces. He added, the advantage of conducting business from the airport are physical presence, space, parking space by the back door and parking lot spaces. Williams suggested, they could rent parking spaces at the rental car parking lot. Bannock noted, discussion at the Commission meeting indicated they could rent a long-term parking permit, however the Airport Manager didn't feel they would ask for that. Williams asked if there is area in the rental parking lot to rent spaces and Bondurant answered yes. Williams asked Bannock why they haven't asked to rent spaces in the rental car parking lot and Bannock answered he didn't think it was consistent with the Airport Master Plan. Williams noted, the Master Plan could be amended. Bannock stated he would love to parking lot spaces at the airport. Williams asked if Bannock has approached the Airport Manager to this regard and Bannock stated it had not been a necessity. Bondurant noted, the concessionaires are given 15 spaces with their agreement and can make arrangements to rent additional spaces. Williams stated the city would rent Bannock spaces for ten percent of their gross and Bannock stated it wasn't necessary as he could park for free at this time. Williams noted the council could direct that no rental car company park in the free parking lot and only in the rental car parking lot and be charged ten percent of their gross. Bannock stated he is willing to do that. Porter noted, the city is not dealing with only the Great Alaska Car Company and should make the decision on the problem on what's good for the airport and the easiest to enforce without adding personnel. Williams noted the issue would be returned to administration and the Commission. ITEM J: REPORT OF THE MAYOR -- Mayor Williams reported the following: • Councilwoman Jackman was attending the dental clinic meeting at the Borough building and was not in attendance at the council meeting. • Will meet with Senator Stevens on December 28. • Sent a letter to Governor Murkowski requesting him to strongly consider the appointment of Mead Treadwell as his replacement to the U.S. Senate. KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 15 • A meeting with the area legislators has been set for January 7 at 2:00 p.m. in the council chambers. ITEM K: ADMINISTRATION REPORTS K-1. City Manager -- City Manager Snow reported the following: • Reports of the Department Heads were included in the packet. • A copy of the approved Airport Capital Improvement Project List was included in the packet. • The new grader was received. • The shop area was expanded by moving the building maintenance area into the warm storage building at a very small cost to the city. • Pictures of the upgraded emergency communications/dispatch center at the Kenai Police Department were provided to council for review. K-2. Attorney -- Attorney Graves reported he investigated council's question of what authority the DOT has to place rock in washed away roads, etc. in regard to the continued studies required for the city to move forward on the bluff erosion project. He noted, Nationwide Permit No. 3 allows them to repair existing roadways and structures and an exemption under Section 404 of the Clean Water Act allows repairs after a storm or discrete event without going through the permit process. He again noted he would be attending a seminar on the Brown Fields Redevelopment Act in the near future. K-3. City Clerk -- Clerk Freas reported she had forwarded the council's three preferred dates for a joint work session with the Soldotna City Council to the Soldotna City Clerk. She requested the Soldotna Council indicate which date they would prefer. As soon as this information is received, she will contact the council. ITEM L: DISCUSSION L-1. Citizens -- None. L-29 Council -- Bookey -- Absent Swarner -- Noted the following: • Thanked the Library for their successful open house. • Thanked administration for supplying her with information for her presentation at the recent Economic Development Forum. • Asked if council wanted to participate in the "Caring for the Kenai" program and if they did, whether they wanted to offer an award and what the KENAI CITY COUNCIL MEETING DECEMBER 18, 2002 PAGE 16 parameters should be. Council had no objections to the city participating; parameters to be as it was last year (Kenai River within the Kenai City Limits) ; offering a $50 certificate to the Teen Center; and Swarner will be the contact. • Requested an ordinance be prepared to change the assessment rate for property owners from 25% to 50%. There were no council objections. • Wished everyone a Merry Christmas. Moore -- Noted the following: • He attended the Economic Development Forum and complimented Swarner on her presentation. • Asked if the city needed dirt to be collected for spreading out over the Section 36 property. Kornelis noted, the city would have no problem in getting dirt. Williams noted, if developers or contractors hauled dirt in, the city would have to inspect the loads to be sure stumps and debris were not included in the dirt. Porter -- Requested council to donate a gift for a door prize at the employee appreciation dinner. Bannock -- No comments. Jackman -- Absent. Williams -- Noted the following: • The Airport Enplanement Report indicated the enplanements were lower than they had ever been in 20 years. EXECUTIVE SESSION -- None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at approximately 10:31 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk APPROVED BY COUNCIL -4�a&916 COUNCIL MEETING OF: / . +. uag' ■i■��� ' f/o a BOOKEY SWARNER • ' PORTER BANNOCK■■���1 0 oWl 0 1 'kq reTel 5m 0 oWl 0 1 'kq reTel 5m 5m JACKMAN ram