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HomeMy WebLinkAbout2001-04-04 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 4, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /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) ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,607,137 in the ARFF/SRE Capital Project Fund. a. Motion to Adopt b. Motion to Substitute Substitute Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,130,973.70 in the ARFF/ SRE Capital Project Fund. C. Consideration of Ordinance. 2. Ordinance No. 1902-2001 -- Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund and Multipurpose Facility Capital Proj ect Fund for Engineering Design of Upgrading the Facility for Refrigerated Ice and Miscellaneous Improvements. 3. Ordinance No. 1903-2001 -- Transferring $25,000 in the Airport Land System Special Revenue Fund and Increasing Estimated Revenues and Appropriations by $25,000 in the Comprehensive Plan Fund. 4. Ordinance No. 1904-2001 -- Finding That Certain City -Owned Lands Located in Inlet Woods Subdivision, As Shown on the Attached Exhibit A Map, Are Not Required for a Public Purpose. -1- 5. Ordinance No. 1905-2001 -- Finding That Certain City -Owned Lands Located in Inlet Woods Subdivision, as Shown on the Attached Exhibit A, Are Not Required for Public Purpose. 6. Resolution No. 2001-19 -- Approving a Contract to G&S Construction, Inc. for the Project Entitled Kenai Airport ARFF/SRE Facility -2001 for the Total Amount of $3,716,383. 7. Resolution No. 2001-20 -- Awarding a Contract for Construction Administration Services on the Project Entitled, Kenai Airport ARFF/ SRE Facility to RIM Architects for the Not -To -Exceed Amount of $276,698. 8. Resolution No. 2001-21 -- Awarding a Contract for Professional Design Services for the Project Entitled Multipurpose Facility Refrigeration to Architects Alaska/Klauder 8v Company Associated Architects for the Not - to -Exceed Amount of $90,000. 9. Resolution No. 2001-22 -- Transferring $3,500 in the Wellhouse No. 4 Capital Project Fund for Survey Work to Locate Existing Water Wells. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8v Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b . Kenai Convention & Visitors Bureau Board C. Alaska Municipal League Report ITEM E: MINUTES 1. *February 15, 2001 City Council Work Session Notes 2. *February 22, 2001 City Council Work Session Notes 3. *Regular Meeting of March 21, 2001. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS 1. Discussion -- Sale of Block 3, Five Irons Heights Subdivision ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified -2- 2 . Purchase Orders Exceeding $2,500 3. *Ordinance No. 1906-2001 -- Amending KMC 7.25.020 to Increase the Amount Allowed to be Transferred in Line Item Accounts Within a Fund Without Council Approval From Less Than $1,000 to Less Than $2,500 and Removing the Limitation on Transfer Authority From Personal Services. 4. Approval -- Assignment of Lease/Lot 2, Block 5, Cook Inlet Industrial Air Park -- From M.J. Grimm and R.J. Johnson to R.J. Johnson. 5. Approval -- Assignments of Shore Fishery Leases/Tract A, City of Kenai Shore Fishery No. 1 and Tract B, City of Kenai Shore Fishery No. 1 -- From Kendall H. Carlson (Tract B) and Thad A. Carlson (Tract A) to Boyd O. Campbell. 6. Discussion -- Schedule Work Session Regarding City Manager Search 7. Discussion -- Reschedule July 4, 2001 Council Meeting. ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING APRIL 4, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A. CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 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, Bookey, Swarner, Moore, Porter, Bannock, and Frazer A-3. AGENDA APPROVAL , Mayor Williams requested the following changes to the agenda: ADD AS: B-1, Fred Braun -- Kenai Visitors & Convention Bureau regarding 2001: A Fish Odyssey MOTION: 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 There were no changes to the consent agenda. MOTION. Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 2 ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Fred Braun -- Kenai Visitors &Convention Bureau/2001: A Fish Odyssey Braun reported the "2001: A Fish Odyssey" art show would begin on May 1 at the Kenai Visitors & Cultural Center (KVCC) and a grand opening reception would be held on May 4. He invited the council and audience to attend. He also reported 115 artists from Alaska and other states would be submitting their work for the art show. He explained the Center was soliciting sponsorships to help defray costs involved with the show and requested the city donate $1,000 for a Red Salmon sponsorship. Funds received from entrance fees for the exhibit would be used to help to purchase the fish mount exhibit now at the Center. Braun also explained sponsors of the art show would receive free passes, posters of the exhibit, and would be recognized in the advertising of the show. In an effort to better advertise the art show, the Center is working with other tourism contacts, requesting local businesses for their support through window decorations in the fish odyssey theme, and both the Kenai and Soldotna Chambers would be using the theme for the Fourth of July and Soldotna Days parades. MOTION: Councilman Bookey MOVED to support the art show at the Red Salmon entry for $1,000 and Councilwoman Porter SECONDED the motion. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. A short discussion took place in regard to the origin of the metal bear statute placed at the Kenai Chamber cabin. It was noted the metal sculpture was designed by Richard Turnbull in the early 1980's. It was originally placed as an exhibit but became permanent and then purchased by the Chamber through a fundraiser prompted by Ed Garnett. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,607,137 in the ARFF/ SRE Capital Project Fund. KENAI CITY COUNCIL MEETING MINUTES APRIL 4 2001 PAGE 3 C-1 a. Motion to Adopt MOTION: Councilwoman Swarner MOVED to adopt Ordinance No. 1901-2001 and Councilman Bannock SECONDED the motion. C- lb. Motion to Substitute -- Substitute Ordinance No. 1901-2001 -- Increasing Estimated Revenues and Appropriations by $4,130,973.70 in the ARFF/ SRE Capital Project Fund. MOTION TO SUBSTITUTE: Councilwoman Swarner MOVED to substitute Ordinance No. 1901-2001 (marked as C-1 b in the packet) . Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. There were no public or council comments. C-1 c. Consideration of Ordinance. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. C-2., Ordinance No. 1902-2001 -- Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund and Multipurpose Facility Capital Proj ect Fund for Engineering Design of Upgrading the Facility for Refrigerated Ice and Miscellaneous Improvements. MOTION: Councilwoman Porter MOVED for approval of Ordinance No. 1902-2001 and Councilman Frazer SECONDED the motion. There were no public or council comments. VOTE: KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 4 Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1903-2001 -- Transferring $25,000 in the Airport Land System Special Revenue Fund and Increasing Estimated Revenues and Appropriations by $25,000 in the Comprehensive Plan Fund. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1903-01 and Councilman Moore SECONDED the motion. There were no public or council comments. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. C-4. Ordinance No. 1904-2001 -- Finding That Certain City -Owned Lands Located in Inlet Woods Subdivision, As Shown on the Attached Exhibit A Map, Are Not Required for a Public Purpose. MOTION: Councilman Frazer MOVED for adoption of Ordinance No. 1904-2001 and Councilman Bannock SECONDED the motion. There were no public comments. City Manager Ross reported the two lots were received through foreclosures. A Clerk's Deed was received initially and subsequently a quit claim deed was received in order to make the lots available for sale. Ross also noted, the city would be receiving other foreclosure lots in the near future. City Attorney Graves explained, Clerk's Deeds for the properties would not support insurable titles. The former owners were contacted and quit claim deeds were received allowing the titles to be insurable. Referencing Ordinance No. 1905-2001, Graves explained those lots were cleared by the court and had clear titles. KENAI CITY COUNCIL MEETING MINUTES APRIL 4 2001 PAGE 5 VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. C-5. Ordinance No. 1905-2001 -- Finding That Certain City -Owned Lands Located in Inlet woods Subdivision, as Shown on the Attached Exhibit A, Are Not Required for Public Purpose. MOTION: Councilman Moore MOVED to adoption Ordinance No. 1905-2001 and Councilman Frazer SECONDED the motion. Moore noted he supported administration's recommendation but had concerns that perhaps the matter should be returned to the Planning 8, Zoning and Parks & Recreation Commissions since they both voted to retain Lots 18-27 and not make them available for public use. He suggested administration prepare a memorandum explaining their reasons for making Lots 18, 19, 20, 26 and 27 available for sale so the commissions have the opportunity to concur. Porter agreed and added, the commissions gave a lot of thought to the matter and she attended the meeting when the Parks 8v Recreation Commission discussed the issue and they were quite adamant about their decision. Ross referred to his memorandum included in the packet and explained the Planning & Zoning Commission's confusion in their discussions was in regard to drainage. He noted, the drainage pipe comes in on Lots 25 and 21. The pipe could be extended to shape the pond back into the other lots and fill added around the area for future development of a park. He added, the area would include over two acres of park with a pond in the middle. Bannock reported he spoke with one of the Planning & Zoning commissioners who voted to keep all the lots for public use. After showing him Ross' memorandum, the commissioner said he wouldn't have a problem with keeping only Lots 21-2 5. Bannock stated he believed Lots 18-20 and 26-27 were very desirable lots on which to build and strongly recommended they be made available for sale. Frazer stated he agreed with Bannock and added, he attended the Planning 8, Zoning Commission during which the matter was discussed. He noted, there were issues of safety and drainage discussed during the meeting, but believed administration had thoroughly researched the matter and that the lots should be made available for sale. KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 6 Porter noted she had no problem with administration's plan, but as a courtesy, felt the commissions should be given the opportunity to review the matter again. Bookey stated he wanted to go forward with the ordinance. Moore asked how the ordinance would affect the upcoming sale as the lots had not yet been appraised. Ross noted, these lots would be appraised separately. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: No Bannock: Yes Frazer: Yes MOTION PASSED. C-6, Resolution No. 2001-19 -- Approving a Contract to G&S Construction, Inc. for the Project Entitled Kenai Airport ARFF/SRE Facility -2001 for the Total Amount of $3,716,383. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-19 and Councilwoman Porter SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-7, Resolution No. 2001-20 -- Awarding a Contract for Construction Administration Services on the Project Entitled, Kenai Airport ARFF/ SRE Facility to RIM Architects for the Not -To -Exceed Amount of $276,698. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-20 and Councilman Frazer SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 7 C-8. Resolution No. 2001-21 -- Awarding a Contract for Professional Design Services for the Project Entitled Multipurpose Facility Refrigeration to Architects Alaska/ Klauder & Company Associated Architects for the Not - to -Exceed Amount of $90,000. MOTION: Councilman Frazer MOVED for approval of Resolution No. 2001-22 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-9. Resolution No. 2001-22 -- Transferring $3,500 in the Wellhouse No. 4 Capital Project Fund for Survey Work to Locate Existing Water Wells. MOTION: Councilman Bookey MOVED for approval of Resolution No. 2001-22 and Councilwoman Swarner 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 -- Porter reported no meeting had been held, however tickets were available for Friday's Mystery Night Dinner fundraiser. D-2. Airport Commission -- Swarner reported the next meeting would be held on Thursday, April 12. She also noted, she attended a portion of the FAA meeting held at the PRISM building regarding airport incidents. D-3. Harbor Commission -- Bookey reported the next meeting would be held on Monday, April 9. D-4. Library Commission -- Moore reported a meeting was held on April 3 } and a report from the Library Director revealed the State's library database was again being threatened by the budget process and encouraged council members to send KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 8 messages in support of the funding to the legislators. He also reported the Friends of the Library were considering using some of their funds to purchase a new microfilm reader/printer for the library. Moore also reported the Commission discussed the proposed library expansion and unanimously passed a motion to accept the council's proposal of $1 million for a library expansion and the amount be set aside in the capital improvement fund. Ross reported Public Works Manager La Shot, Commission Chair Bob Peters, and he met in regard to the proposed expansion. La Shot will attend the next Commission meeting to discuss the Commission/Library's plans and how they would fit into the council's message and then based on that, La Shot will negotiate with Architect Bill Kluge for a set amount to prepare design schematics which would be reviewed by the Commission and then forwarded to council for review and approval. Council would then decide whether to proceed with architect/ engineering for the project. Ross added, it was reported to him the Library Commission wants to take the opportunity to see if they can leverage that type of work to get foundation funds to match what the city would offer for the project. D-5. Parks & Recreation Commission -- Frazer reported the next meeting would be held on Thursday, April 5. D-6. Planning & Zoning Commission -- Bannock reported the Commission unanimously supported the combining of Inlet Woods lots (previously discussed by council) to allow for larger homes to be built. He also reported the commission briefly discussed the Board of Adjustment hearing held in regard to properties at Anglers' Acres and proposed language to amend the code to include a definition for "lodge." Moore asked if the Commission supported the combining of lots in Inlet Woods and Bannock noted they were in full support of the action. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the next meeting would be held on April 10, 2001. D-7b, Kenai Convention & Visitors Bureau Board -- Fred Braun updated council as follows: • Revenues from fundraising efforts (bingo,- etc.) were up. • Another key employee resigned and took a job offering a benefits package. • Executive Director Tarr was asked to research benefit packages and report costs, etc. to the Board. 0 Inquiries increased which also raised their printing and postage costs. > KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 9 • They are enjoying a very strong membership this year and are looking forward to a busy season. A general discussion followed in regard to benefit packages and whether the possibility of a pool of non -profits could be formed to acquire benefit packages or if the Center could join the same insurance pool as the city without including the Center's employees as city employees. Frazer offered help with insurance contacts. D-7c. Alaska Municipal League Report -- Bannock reported he recently traveled to Juneau on company business, but while there visited with Representatives Lancaster and Chenault and discussed issues in regard to potential funding for the city's coastal trail/ bluff erosion project; concerns about the proposed private prison at Wildwood; and the city's Capital Improvement Project list in regard to the request for funding to offset dip net fishery costs to the city. BREAK TAKEN: 8:10 P.M. BACK TO ORDER: 8:25 P.M. ITEM E: MINUTES E-1. February 15, 2001 City Council Work Session Notes Approved by consent agenda. E-2. February 22, 2001 City Council Work Session Notes Approved by consent agenda. E-3. Regular Meeting of March 21, 2001. Approved by consent agenda. - ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1. Discussion -- Sale of Block 3, Five Irons Heights Subdivision Ross reviewed a memorandum included in the packet and noted it contained several issues which council would have to decide upon in regard to restrictions they may want to include on the property and zoning concerns (he pointed out the property was currently zoned Recreational which would allow commercial businesses on the properties) which were items needing addressed prior to preparation of the appraisal. l KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 10 Ross also reported he met with the requestor of the sale (Shawn Anderson) and was told he had a development schedule available for council review and would not object to a cash sale. Ross also stated council would need to decide upon whether it will be the responsibility of the developer to install utilities. Shawn Anderson: Explained the property would be developed as upscale residential homes and there would be no commercial structures. He stated it was very important the appraisal be done within the next three weeks so that he could proceed with plans, etc. Discussion followed as to whether Anderson's plan for developing a residential area would include single or multi -family dwellings or townhouses. It was pointed out, the property was currently zoned recreation which would allow tri-family dwellings or a total of 24 units. Anderson noted, the structures he would build would all be high - end residential, his developmental plan had a target market, and he had no objections to covenants being placed on the property (he noted he considered other golf course lots previously, but decided not to purchase because there were no covenants and didn't want to build an upscale structure and have something built next door that might detract from the value), and would be willing to work with the city in the future. Williams noted, council also wanted the property to be used at its highest and best use for both the developer and the city. Ross explained the items required in order to go forward with the appraisal: • What restrictions would be put on the deed, i.e. covenants, structure sizes/types, no commercial, etc. as that would have a bearing on the appraisal. • Whether the developer will be responsible for placement of utilities (gas, electric, phone, upgrade of the road, etc.) or if the property would be sold "as is." • Whether the city will need to participate in extension of the sewer/water line placement. Ross also noted he did not anticipate notification of possible legislative funding before the end of May. Swarner noted, the property would be worth more if the water/ sewer were placed and she was definitely interested in covenants being placed on the property, including building size, architectural review committee of the neighbors, etc. Bookey noted, since he had been on council, it was council's desire to get the best value from the property and that the property is developed correctly. Bookey stated he thought deed restrictions should be placed on the property instead of covenants because once the property is sold, the owner (prior to development) could change the covenants, but deed restrictions would stay. Bookey added, he wanted time -specific restrictions included for the development of the properties as well. In regard to Swarner's comments, Frazer stated building size restrictions would be acceptable, but didn't know if putting the city in an architectural review situation would be appropriate. He added, the city needed to do whatever was needed to KENAI CITY COUNCIL MEETING MINUTES APRIL 4 2001 PAGE 11 proceed with the appraisal and didn't think he wanted to go further than a timeline on the building development and building size restrictions; didn't think the city should get involved in architectural reviews as standards would have to be developed; thought the water line issue could be dealt with at a later time; and do the minimum in order to proceed with the appraisal, etc. Swarner noted, it was not known whether Anderson would be the successful bidder and she felt it was very important to put restrictions on the property now. She added, the city would not have to get involved with architectural reviews as that would be developed by the neighborhood. Williams added, unless the deed restrictions were established prior to the sale, the buyer would be the architectural review and covenant committee. Referring to Ross' memorandum, Bannock noted he felt the council needed first to decide whether they wanted to sell the property. He added, he believed there was commitment and the property should be sold. Council attended to the questions by paragraph: Paragraph No. 2 : Williams referred to Paragraph No. 2 of the memorandum and asked Anderson his intention in regard to a term or cash sale with a reversionary clause included. Anderson noted he would like to do a cash sale, if that would show his willingness to go forward with the development. Williams noted, pending the appraisal and outcome of other discussions, the buyer was ready to do a cash sale and asked if the council wanted to proceed with a cash sale. Council's consensus was yes, to go forward with a cash sale. Paragraph No. 3 : Should the developer have the sole responsibility of installing gas, electric and telephone extensions to the property? Council's consensus was yes. Paragraph No. 4 : Should the developer have the responsibility to extend full-size water line along the entire front portion of the property with the thought the city may want to tie into it with the water line at a later time. Bannock explained, if they were at the negotiation portion of the sale, the city should require the developer to install the same system (believed it to be a 12" main) for the whole length so that sometime in the future there could be a simple continuation of the line. He noted, that would double the cost of running the line in the area, however the city could participate either in the sale price or later -to -be -determined price (at sale time) because the city would be making an investment in itself. Williams referred to placement of water/ sewer lines to Thompson Park and asked if the property, would be assessed for water/ sewer. Ross suggested it would be a judgment call of council and that sometimes the costs of placing the mains have been the responsibility of the developer. He added, arguments could be made that placement of the lines would benefit other than the subdivider's property and he KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 12 discussed with Anderson the possibility of the developer approaching the Borough to find out if they had plans for their adjoining land. Ross continued, if council decided to participate, he would tell the appraiser the level of participation and that would be reflected in the value of the property. However, he wouldn't tell the appraiser to appraise the property to reflect the developer bearing the cost for the water improvements to the property, knowing that in the future the city would be rebating the costs to the developer. Doing that would reflect costs to the taxpayers when putting in the system and a decreased land value for not having the system in place at the time of appraisal. Williams noted there was benefit to the property because the sewer line was already installed. In Thompson Park, the city paid for placing the line to the subdivision and then the property owners paid 25% of the costs through assessments. Williams stated the city would become the beneficiaries of a full-size 12" line through the whole property and going to a point that someday the city may tie onto it. He asked, how much should the city pay for that beneficial portion of the project. Bookey stated, normally, when tying into a development situation, the DEC requires the line to remain the same size. Williams asked what the city's participation should be and Bookey stated he didn't think the city should have to participate unless it wanted to do the whole water line project and then reflect those costs in the appraisal. He added, if he were the developer, he would want to install the water line himself. Frazer asked what the estimated cost would be to install the water line. He suggested asking Anderson his thoughts if the city required the water line installation as part of the development. Then, if it becomes an issue, the sale price of the lot would reflect the city's participation. Williams noted a developer would be able to install the water line at a lower cost than the city could. He questioned whether the city would be circumventing the laws requiring to pay Davis/Bacon wages if it takes control of the water line because the city would be gaining a benefit. The answer given was no, there would be no Davis/Bacon problems and it would be beneficial to the developer to install the line. Bookey noted there would be no problem with a developer installing the line, but it would have to be done to DEC and city standards. Williams suggested the city could say the responsibility would be the developer's, but the installation, etc. would have to be to the city's specifications. Ross noted, that would be reflected in the appraisal and in the sale documents. Public Works Manager Kornelis stated he would estimate the cost of installation to be between $75,000 to $130,000. Frazer noted, if the appraisal of the property were lowered because of those costs, the developer would be repaid for those costs through the price he receives for the structure built. Frazer suggested the installation of the water line be the developer's responsibility. j Council's consensus was that it would be the developer's responsibility to install the water main to the city's specifications. KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 13 Road Upgrade: Ross stated that along with the water main, the developer would have the responsibility of bringing the road to city specifications. It would be the developer's choice whether the road would be paved or graveled. Ross noted, if the appraisal reflects that the city is requiring the developer to bring the road up to specifications, then that would be reflected in the sale documents. However, the appraisal instructions and the sale documents would then reflect in the appraisal of the land. Williams asked if council wanted the responsibility of paving the street, to the city's specifications, to be the developer's. Bannock stated he believed it was important to remember the more requirements added for the developer to do, would lower the appraisal price. Ross agreed, but the subdivision would be brought up to a grade and probably would save taxpayers 25% of the cost that it would cost a private developer to do it and raise the appraisal on the developer's finished product, which the city would benefit from as well. Consensus of council was yes, the developer is responsible for paving the road to the city's specifications. When asked if this --requirement was normal, Anderson stated it would be acceptable as long as the cost is reflected in the appraisal. Paragraph # 1: A lengthy discussion regarding covenants or deed restrictions took place. Swarner stated she believed there should not be commercial use allowed and a house size restriction. Council agreed the property should be restricted to non-commercial use. Williams asked comments regarding building size restrictions. Porter asked Anderson what square footage of buildings he was anticipating to build. Anderson stated he had no objections to size restrictions, as long as it was a minimum -size restriction. He added, he is developing an architectural plan and had made no specific decisions as to type of structures he would build. After the appraisal is begun, he would return to discuss types of structures if council wished. He added, he was planning high -end homes and maybe townhouses. Williams asked Fred Braun (in the audience), if it would make a difference in the value of the property if the developer had the right to do anything he wished in regard to building single-family, townhouse or multi -family structures. Braun answered, the appraiser would address that and look at the size of the homes. If there are no guidelines given, it would probably lower the appraisal. Williams noted the present zoning would allow up to tri-plexes on each lot and asked if it would make a difference to the appraiser if he knew what type of structures would be built. Braun stated he believed it would be addressed in an appraisal. Ross stated Braun was probably right when speaking of the finished product, however the appraiser would be noting what type of structures are permissible for the zone. He 1 KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 14 added, what he needed to know was if there would be a restriction added that no tri- plexes would be allowed, etc. If so, he would relay that information to the appraiser and note that a deed restriction had been added. Ross added, the appraisal of the land would reflect the zone, what is permissible in the zone, and any deed restrictions included. Bookey asked if the appraiser would review the property as one lot and Ross answered the appraiser would review the property as the maximum square footage of the property and into how many lots it could be divided. Bookey stated he didn't want tri-plexes built and suggested a deed restriction be included that would define what type of buildings they would want to see developed. Bannock noted, it was not a normal occurrence that the council required knowledge of what a developer would be building on property prior to an appraisal of the property being done. He added, the recreational zone is unique in that it allows mixed use, i.e. commercial and residential. Council made a decision to exclude allowance of commercial with a deed restriction. He suggested not asking potential developers what they planned to build so the appraisal could proceed. Bookey stated he didn't want a developer to plan on building structures that later on council might restrict. Bannock explained the code allowed from one to 24 dwellings on the property and that would be how the property would be appraised. Williams noted, there was concern by some council members that 24 dwellings (tri-plexes) not be allowed. Frazer stated he didn't want to restrict the property to single-family residences due to interest he had received by constituents. He suggested placing a minimum -size for structures which could still assure that upscale homes would be built on the property. Williams stated there was also a problem with the difference between a tri-plex, townhouse and condominium. Graves noted that if a tri-plex is built but units sold individually, would they really be townhomes which would require a conditional use permit. Frazer suggested each individual unit be required to be 2,000 square feet however there was concern that would hamper the developer's choice of design. Bannock asked Ross if he had enough information to give to the appraiser for an appraisal. Ross answered, based on what was decided on the utilities there would not be a problem. He understood council to say there would be a deed restriction on no commercial recreation which he would inform the appraiser. With that, he had the necessary instructions for the appraiser, however if council wanted to add deed restrictions in regard to the zoning, he would need to pass that information on to the appraiser. Limiting structures to square footage, etc. was not something the appraiser would be reviewing. Williams stated he believed the developer needed to understand that if a tri-plex is built, a question may arise of whether the structure would be called a condominium or townhouse and could influence the amount he would want to offer for the property. Ross noted several of the issues brought up could be discussed at the time of approving the sales documents (under what conditions the city would sell the KENAI CITY COUNCIL MEETING MINUTES ' APRIL 4, 2001 PAGE 15 property) . For the appraisal he needed to know if council would be more restrictive than the zoning and who would be responsible for installation of utilities. He added, additional restrictions (floor space, conditional use for townhouses, etc.) could be added to sales documents and deed restrictions and probably would not have a land - value bearing on the appraisal. He noted, those items would reflect in the appraisal of what is developed. Williams stated concern the developer understood that it would be up to the Planning & Zoning Commission whether a conditional use permit would be given. Ross stated an appraiser could not use "townhouse" in an appraisal as it was not permitted in the zone. Anderson stated he understood he would have to come back for a conditional use permit for that type of structure. Frazer noted, the developer could decide not to bid on the property after the sales documents are approved by council (with restrictions added) . Williams stated he wanted the developer to understand that clearly. Bookey agreed and added, he wanted to add a time restriction for development of the property. Ross stated he would bring that concern to the appraiser but didn't know if it could have an impact on the appraisal if a strong developmental clause was included on the sale with a reversionary feature in it. Bookey added, all the city's commercial property in downtown Kenai is leased, developed and then sold which could be another option to consider. MOTION: Councilman Bannock MOVED to direct administration to get an appraisal on this piece of ground and take us to the next step. Councilman Frazer SECONDED the motion. Williams asked Ross if there was any other information needed in order to go forward with an appraisal. Ross reviewed the instructions to give to the appraiser as follows: • Developer will install the waterline (12" main) • Developer will bring the road up to specifications and pave • There will be a deed restriction to further restrict zoning by saying no commercial recreational use. Bannock suggested that to insure there are no golf shops, hair salons, etc., the restriction should say "non-commercial" use. Graves agreed and stated he understood council wanted no commercial activity at all. Council agreed. Ross noted he would also add "cash sale." Swarner asked how long it would take to get the appraisal, etc. Ross stated he believed it would take approximately four weeks for the appraisal and while it is being done, he would have sales documents prepared and brought to council for their review KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 16 at the next council meeting. Council could then consider other restrictions they may want to add to the property. They would then be added upon receipt of the appraisal. Swarner noted to Anderson that it would take longer than the three weeks he stated was his time line at the beginning of the meeting. Anderson stated that if the appraisal was to proceed, it would be council's good faith to him that the property would be sold. With that, he would be willing to wait. Bookey added, just because council would go forward with the motion and the appraisal is done, there may be deed restrictions added and it was not a guaranteed sale at this point. Frazer noted, neither was it a guaranteed purchase. Anderson indicated he understood. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. ITEM H: NEW BUSINESS H-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. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-3, Ordinance No. 1906-2001 -- Amending KMC 7.25.020 to Increase the Amount Allowed to be Transferred in Line Item Accounts Within a Fund Without Council Approval From Less Than $1,000 to Less Than $2500 and Removing the Limitation on Transfer Authority From Personal Services. Introduced by consent agenda. � KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 17 H-4. Approval -- Assignment of Lease/ Lot 2, Block 5, Cook Inlet Industrial Air Park -- From M.J. Grimm and R.J. Johnson to R.J. Johnson. MOTION: Councilwoman Porter MOVED to approve the Assignment of Lease, Lot 2, Block 5, Cook Inlet Industrial Air Park, from M.J. Grimm and R.J. Johnson to R.J. Johnson and Councilman Bannock SECONDED the motion. It was noted administration reviewed the assignment and it was found to be in order. VOTE: There were no objections. SO ORDERED. H-5. Approval -- Assignments of Shore Fishery Leases/Tract A, City of Kenai Shore Fishery No. 1 and Tract B, City of Kenai Shore Fishery No. 1 -- From Kendall H. Carlson (Tract B) and Thad A. Carlson (Tract A) to Boyd O. Campbell. Ross explained an assignment for this lease had been before council in the past, however that assignment fell through and was explained in the memorandum included in the packet. The assignment was before them again with a different buyer. MOTION: Councilman Bannock MOVED to approve the Assignments of Shore Fishery Leases, Tract A, City of Kenai Shore Fishery No. 1 and Tract B, City of Kenai Shore Fishery No. 1, from Kendall H. Carlson (Tract B) and Thad A. Carlson (Tract A) to Boyd O. Campbell. Councilman Frazer SECONDED the motion. VOTE: There were no objections. SO ORDERED, H-6. Discussion -- Schedule Work Session Regarding City Manager Search Ross reported 35 applications were received and one was withdrawn. Of the remaining applications, 15 completed the application process, including the supplemental information requests. The applications were available for council to review and he encouraged council to review the applications and make their selections prior to making reference calls, etc. l KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 18 Council set a work session for Wednesday, April 11 at 7:00 p.m. at the Kenai Senior Center if available and if not, the Kenai Visitors Center to review the applications and begin eliminations. Clerk Freas will check the availability and notify council and advertise the site. H-7. Discussion -- Reschedule July 4, 2001 Council Meeting. It was noted the first council meeting of July fell on July 4 which is a holiday. Council was asked to reset the meeting. The meeting date was changed to Thursday, July 5 in the council chambers at 7:00 p.m. The regularly scheduled Parks 8, Recreation Commission meeting will be moved to another site. ITEM I: ADMINISTRATION REPORTS I-11 Mayor -- Mayor Williams discussed the following items: • The meeting with the Corps of Engineers in regard to the coastal trail/ bluff restoration project went well. He attended it, as well as Councilman Bookey, Public Works Manager La Shot, members of Senator Murkowski's staff, Corps staff, and Paul Fuhs (Petratrovich, Nottingham & Drage, Inc. representative) . During the meeting, the city requested to proceed with the Corps permit application process. The Corps stated they would allow that but would not have funds available for the project and it would not be considered a Corps project. Bookey stated he didn't think the project was totally hopeless and thought Fuhs did a very good job in explaining the city's concerns and requests. He added, after the permit is received and the biological concerns are dealt with, other trips to Washington, DC will be required to discuss the matter further with the congressional delegation. Williams discussed the requirement of either an environmental assessment or an environmental impact statement and their potential costs. Bookey stated he felt an environmental assessment would allow the permit to be approved. Ross was asked to contact ohs for an update. Public Works Manager Kornelis reported he had been contacted by EPA who suggested the city should take its time and answer all their questions in the process. • Noted the condition of the parking lot at the Challenger Center/multipurpose facility was very bad and asked when the paving could begin. La Shot suggested the Center's lot could possibly be paved first as there was underground utility work to be done on the other side prior to it being paved. • He and Councilwoman Swarner met with Randy Chalawsky about funding for the documentary film he wants to develop regarding homesteading on the Kenai Peninsula. However, Chalawsky wanted council to understand he did not initiate the conversation in regard to funding and the suggestion came from Swarner and himself. He added, they suggested Chalawsky contact other Peninsula KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 19 municipalities, the Municipality of Anchorage for funding, as well as the city. Williams suggested a new city video could be produced at the same time. Swarner added, Chawlasky is associated with the public television station (KAKM) and his film would be a national PBS presentation. Williams noted no funding had been included in the -draft legislative budget for a video and suggested funding could be included during the budget work sessions. I-2. City Manager -- Ross reported the following: • He attended a meeting in regard to the Unity Trail which is in the environmental assessment phase of the project. He noted, several issues came up during the meeting which the city may have to address in regard to amending the animal control ordinance to prohibit dogs from the trail which is proposed to run along the edge of the river wetlands from Kalifornsky Beach Road and Bridge Access Road. Another issue may be to require event permitting (possibly through the State of Alaska) during certain periods of the year. • He spoke with the Commissioner of Corrections who agreed to meet with council in regard to the proposed private prison to be situated at Wildwood. He noted, the borough had also suggested they meet with the Commissioner and spoke with Assembly members Navarre, Brown and Popp and asked if they would consider having a joint meeting at a Kenai location. Ross reported, there were no objections from Popp, Brown or Navarre. He added, the Commissioner would be coming to the area in late May and a meeting could be scheduled during her visit. • He will be meeting in Anchorage with Outdoor Parks and Fish 8v Game on April 6 regarding the dock and the bird viewing area. Swarner asked if there were any concerns mentioned at the trail meeting regarding four -wheeler and snow machine use on the wetlands and Ross answered they were not discussed. Williams stated the Chamber had asked if the council would be taking a position in regard to the prison as they would be developing a resolution. He noted, the answer he gave was that the city had no position until after hearing from the Department of Corrections and the Legislature makes its decision. Ross reported the City of Soldotna was putting forth a resolution dealing with private versus public prisons and if the borough had enough information to go forward with a private prison. I-3. Attorney -- No report. I-4. City Clerk -- No report. I-5. Finance Director -- No report. � I-6. Public Works Managers -- La Shot: No report. KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 20 Kornelis: Reported he and La Shot met with representatives of Livingston - Slone and Wince-Corthell-Bryson in regard to use of city utilities for the proposed prison. Kornelis noted, he and La Shot requested them to consider the consequences that will impact the city's water/sewer system, i.e. water quantity, adjustments to the water/ sewer plant, water/ sewer mains upgrades, etc. He added, they outlined the system and made them aware of the problems the city anticipates. Williams noted a statement was made by a Livingston -Slone representative that there were 400,000 gallons extra capacity at the sewer plant and water was not a problem. He added, his comment back was that there was no extra capacity in the summer and the city absolutely would not sacrifice the 400,000 gallons in favor of the prison without an addition to it. Williams continued, if the reserves are sacrificed, it would sacrifice the ability for the community to grow without major expansions to the water/ sewer plant. He added, he wanted to insure that if the city becomes involved with the prison in some way, the city seek out the absolute best deal it can in regard to utility expansion. Council agreed. Kornelis also noted other concerns he discussed with them were lift stations and the road into Wildwood as it would be used as access to the prison. • Kornelis reported he requested the state consider replacing the AC water main along Forest Drive in October. An estimate of $300,000 was given for the work and the state wanted the city to pay for it. Because there was a break in the pipe, they were able to investigate the pipe and found it to be in good shape. He then requested the state to hire a professional leak detecting company to determine whether there are other problems in the line. If there are, at the time the pipe is uncovered, it would be determined whether the damage was done by the upgrade project or wear. If the damage is determined to have been done during the road project, the state would pay for the repair/ replacement. I-7. Airport Manager -- No report. ITEM J: DISCUSSION J-1. Citizens -- None. J-2. Council Bookey -- Stated he really liked having information available on the city's website and felt the investment into the city's GIS system was money well spent. Swarner -- • Reported she had the opportunity to see the rented street sweeper the city uses and found it to be very efficient. She encouraged Ross to put things like that in the budget more often. • Saw the new police car and was pleased to see some of the police equipment from the damaged car was able to be used and placed in the new car. -KENAI CITY COUNCIL MEETING MINUTES APRIL 4, 2001 PAGE 21 • She received requests from constituents to have trash cans placed intermittently on the bike trail along the Spur Highway and suggested there may be service organizations who may consider purchasing them. • Asked if a breakfast with other industry -oriented groups had been scheduled and Williams answered not at this time. • Suggested the state should be requested to place curbs and gutters when upgrading the road into Wildwood. Moore -- No comments. Porter -- No comments. Bannock -- No comments. Frazer -- No comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10:30 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk i �s