HomeMy WebLinkAbout2001-02-22 Council Minutes - Work SessionKENAI CITY COUNCIL
WORK SESSION
FEBRUARY 22, 2001
Council Present: Bookey, Frazer, Porter, Moore, Swarner, Williams and Bannock
Staff. Present: Freas, Ross, Graves, La Shot, Kornelis, Frates, Semmens
Others Present: Emily DeForest, Ethel Clausen, Leo Oberts, Rick Baldwin, Nate
Kiel, Joel Anderson (ice rink consultant)
Williams opened the work session to explain the council scheduled the work session in
order to discuss several capital improvement ideas prior to the budget work sessions.
A memorandum was distributed with information on paving the parking areas of the
Challenger Center and Multipurpose Facility, as well as refrigeration costs and
alternatives.
Multipurpose Facility/Ice Refrigeration:
Joel Anderson was introduced and he explained he has been a consultant since 1978
and had contracted to do five rinks in Alaska and 300 rinks over his career. He noted
he had also worked on the Soldotna rink when it was updated.
Anderson's comments included:
• The multipurpose facility structure provides protection from weather and
also has the advantage of cold weather helping to hold ice.
• The cost estimates (included in the memo) were accurate and close.
• Commercial systems offer a cheaper first cost; are assembled in a rack;
don't have as long a life expectancy; are not as durable; cost of replacement comes
much sooner; and he didn't recommend them.
• A refrigeration system uses natural gas for running the engines and
would be an assist system for ice; the amount of energy is high to start up.
• The Alaska systems he's installed were all industrial.
• Outdoor temperature requirements for refrigerating ice has to be below
60 to 70 degrees.
• Synthetic ice is typically used in practice training rooms or displays for
trying on skates. It is not normally used for regular use.
• A commercial package has a five to seven year life by the manufacturer,
but when good care is taken, it can last ten to fifteen years. This method uses a
portable mat which is installed on either sand or on a concrete slab. The biggest issue
is it doesn't lay flat after a few years and has to be moved each year and stored.
• An industrial system offers a 30 year life, however some have lasted 40 to
50 years. This system is more costly to install, but has a much longer life.
• Direct refrigeration uses refrigerant and is installed into the floor. A
problem arises if the refrigerant leaks out of the piping as it is acidic and eats the
concrete.
• Either direct or indirect refrigeration can be used in conjunction with an
industrial system.
0 It would take approximately 24 weeks to install an industrial system.
KENAI CITY COUNCIL WORK SESSION
FEBRUARY 22, 2001
PAGE 2
Discussion followed regarding the LLC involvement with the facility and the process of
removing them from responsibilities involved with the facility; whether it would be
feasible to put a bond proposition on the ballot for $5 million to pay for the
refrigeration, remove the LLC, build an expansion to the library, etc.. Discussion also
took place of whether it would be necessary to hold a special election or wait until the
October election.
Councilman Bannock distributed a copy of a step plan he developed. He explained his
plan would allow the city to move forward, first installing refrigeration in the facility to
allow the LLC to sell ice so they wouldn't go backwards in their debt responsibilities,
and there would be less urgency for the city to buy out the LLC. He added, he didn't
believe a bond proposition would be successful and was concerned that if one failed, it
would eliminate other options.
Council discussion included:
• It was suggested, because the Borough's mil rate would decrease one mil,
the city could raise its mil rate by one, which wouldn't show a large increase to
property owners.
• Ross reported he didn't think there was a need for a mil rate increase
and felt comfortable the FY2002 operating budget could be maintained within the
current mil rate.
• The Inlet Woods bonds will be paid off in FY 2005.
• Even if the LLC continues to maintain the ice etc., the city would still
have expense responsibilities in utilities, employee time, etc.
• Several of the council felt it was very important to buy out the LLC as
soon as possible as the facility is a city facility, even though there is no obligation to
buy them out.
• It was suggested, with removing the LLC and the city doing the ice
maintenance, scheduling, fee collection, and marketing, one additional employee may
need to be hired in the Parks Department.
• It was noted, with refrigeration, hockey tournaments, camps, etc. could
be held in Kenai which would be an increase in sales tax.
Ross was requested to investigate impacts to the General Fund if the LLC is bought
out; and the city installs refrigeration. Anderson is to furnish Parks & Recreation
Director Frates with operation costs in Alaska for outdoor rinks.
Bond Propositions:
Discussion followed in regard to the possibility of placing a bond issue on the October
ballot that could include funds for the refrigeration and buying out the LLC; a library
expansion (3,000-4,000 sq. ft.); paving of roads; and city's portion of coastal trail
development.
KENAI CITY COUNCIL WORK SESSION
FEBRUARY 227 2001
PAGE 3
Pros and cons of several bond requests versus one larger bond request for several
items was discussed. It was suggested that if one larger bond, those supporting of
refrigeration would vote in favor and at the same time vote for a library expansion, etc.
and visa versa. Advantages of putting a bond issue on the ballot were stated as (1) the
city's debt load is low; (2) the oil industry was looking positive; (3) the mind set of the
community is different than in the past in regard to bonding.
The suggested bond amount included:
Library expansion $1.5 million
Refrigeration/LLC 1.1
Coastal Trail 1.5
Paving 1.9
$6.0 million
Concerns were made about a bond issue of that amount and whether to group them
together or keep them separated. It was suggested council discuss the matter with the
public to see what reactions are received.
Employee Residency:
Swarner explained she requested City Attorney Graves to research the possibility of
requiring city employees to live in the city limits. She noted, her question came as a
result of a discussion she heard during the NLC Conference she recently attended.
A brief discussion followed where it was noted the question was not a new one for the
city as there had been a requirement prior to 1972. The policy was changed in 1972
or 1973 because the field of recruitment and selection was lowered by limiting the pool
of applicants. If considered, the requirement would be for future hires and would not
affect current employees.
The work session ended at approximately 9:30 p.m.
Notes transcribed and submitted by:
e4,1� e�evl., t-,,
Carol L. Freas, City Clerk