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HomeMy WebLinkAbout2001-04-18 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING APRIL 18, 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) 1. Paul Shadura -- Cook Inlet Aquaculture Association/Cook Inlet Community Assistance Through Fisheries Rehabilitation and Enhancement -- Request for Support. ITEM C: PUBLIC HEARINGS 1. 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. 2. Resolution No. 2001-23 -- Awarding an $11,000 Contract for Insurance Broker Services to Brown Agency, Inc. 3. Resolution No. 2001-24 -- Supporting the Recommendations of the Education Funding Task Force and Increased Investments in Alaska's Students and Schools. 4. Resolution No. 2001-25 -- Supporting the State of Alaska DOT/ PF in its Effort to Properly Construct Pedestrian and bike Paths Along State Highways and Describing the City of Kenai's Intent to Provide Seasonal Cleaning of the Paths Along the Bridge Access Road. 5. Resolution No. 2001-26 -- Transferring $16,000 to Personnel Services From Contingency in the Maintenance &Operations Division of the Airport Land System Special Revenue Fund. -1- 6. Resolution No. 2001-27 -- Supporting the Proposed Increase in Funding to Revenue Sharing and Safe Communities by the Alaska Legislature. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention 8v Visitors Bureau Board C. Alaska Municipal League Report 1. *Regular Meeting of April 4, 2001. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS 1. Discussion -- Sale of Block 3, Five Irons Heights Subdivision/Draft Sale Documents ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1907-2001 -- Increasing Estimated Revenues and Appropriations by $16,000 in the Senior Citizens Title III Grant Fund for Operating Supplies. 4. Discussion -- Inlet Woods Subdivision/ 62 Unsold Lots in Front Half of \77��1�71C1/11'1 __ �A/77Ao9- f/1r 0/1cr% 0. 1— P—o rL 0.0 v &%JJL i �va3a ivV a. 1v1 vGAAZYA1 1 1 lt.t. 1 7 <,�V l.1Ql.Vl..l 1JQ1G. ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager -2- \ ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING APRIL 18, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /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: Bookey, Swarner, Moore, Porter, Bannock, Frazer and Williams. A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: C-4b, Substitute Resolution No. 2001-25 (The substitute reaffirms the city's support to provide seasonal cleaning of the paths along Bridge Access Road as a resolution supporting the matter was passed in 1997.) 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 MOTION: Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) B-1. Paul Shadura -- Cook Inlet Aquaculture Association/ Cook Inlet Community Assistance Through Fisheries Rehabilitation and Enhancement -- Request for Support. KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 2 Gary Fandrei, Executive Director of the Cook Inlet Aquaculture Association (CIAA) noted the Kenai Peninsula Borough and the Federal government declared the Cook Inlet fishing community, consisting of native and nonnative subsistence users, commercial, personal use and sport fishers and the businesses supporting the users, an economic disaster. While the economic disaster declarations provide for immediate economic relief, no long-term commitment was made to support the Cook Inlet fishing community. Fandrei gave a presentation explaining CIAA's plan and proposal to continue providing assistance to the Cook Inlet fishing community through existing programs and proposed improvement projects. After reviewing the programs and projects, Fandrei requested a resolution from council supporting the CIAA to secure funding for the programs and projects reviewed. Williams noted the council supported the fishing community for many years and requested Fandrei forward information to the City Clerk to be included in a resolution and placed on the May 2 council meeting agenda. There were no objections from council. B-2. Leo Oberts -- Noted council's interest in the Old Town bluff and brought 1950 and 1969 plats of the bluff area. Council requested Public Works Manager Kornelis to get copies of the plats for the city's use. ITEM C: PUBLIC HEARINGS C-1. 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. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1906-2001 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: Booke Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes Frazer: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 3 C-2., Resolution No. 2001-23 -- Awarding an $11,000 Contract for Insurance Broker Services to Brown Agency, Inc. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2001-23 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-3, Resolution No. 2001-24 -- Supporting the Recommendations of the Education Funding Task Force and Increased Investments in Alaska's Students and Schools. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-24 and requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-4. Resolution No. 2001-25 -- Supporting the State of Alaska DOT/ PF in its Effort to Properly Construct Pedestrian and bike Paths Along State Highways and Describing the City of Kenai's Intent to Provide Seasonal Cleaning of the Paths Along the Bridge Access Road. MOTION: Councilman Moore MOVED for approval of Resolution No. 2001-25 as substituted and Councilwoman Swarner SECONDED the motion. There were no public comments. Moore stated his concern the new bike paths along Spur Highway were already damaged. Ross noted the city approved seasonally sweeping the paths along Spur Highway because it is aware of how they were built. He added, the city hoped to have more input on the Unity Trail paths. Ross stated he didn't think the city should agree to anything more than sweeping the paths at the beginning of the year. KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 4 Kornelis reported DOT would be holding a meeting with the agencies on May 15 at 1:30 p.m. in the council chambers in regard to the coastal trail/bluff restoration project. During the meeting, they will discuss design of the pathway. Then, at 7:00 p.m., there will be an open house for the public to review designs, etc. The open house will also be held at city hall. Councilman Bannock also stated his concern of the condition of bike paths in the city. He noted, he observed those paths adjacent to the highway seemed to be in much better shape than those situated several feet off the highway. He added, he believed bike paths, when built away from the roads, were financially unfeasible. Bannock stated he would support the resolution. VOTE: There were no objections. SO ORDERED, C-5. Resolution No. 2001-26 -- Transferring $16,000 to Personnel Services From Contingency in the Maintenance 8. Operations Division of the Airport Land System Special Revenue Fund. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-26 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-6. Resolution No. 2001-27 -- Supporting the Proposed Increase in Funding to Revenue Sharing and Safe Communities by the Alaska Legislature. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-27 and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 5 ITEM D. COMMISSION/ COMMITTEE REPORTS D-1. Council on Aging -- No report. D-2. Airport Commission -- Swarner reported a meeting of the airport terminal tenants would be held. Airport Manager Cronkhite reported the Collings Foundation (historic airplanes) would be coming to Kenai again, but no definite date had yet been set. Discussion followed regarding the possibility of an air show being held in Kenai. Cronkhite explained the Commission had discussed the possibility and are interested in developing an annual event. A "poker run" has also been discussed to coincide with the Collings visit in order to attract Anchorage pilots to the area. D-3. Harbor Commission -- Bookey reported a meeting was held on April 9 and Mr. Oberts brought the plats discussed earlier with council. Bookey also reported the Commission further discussed goals and objectives; it was noted the dock would be opened by the middle of May; and he gave an update on the meeting with the Corps in regard to the bluff erosion/coastal trail project. D-4. Library Commission -- Moore reported the next meeting was scheduled for May 1. D-5. Parks & Recreation Commission -- Frazer reported the last scheduled meeting had no quorum. Williams suggested the Commission consider whether a subcommittee be formed when the refrigerated ice comes on line at the multipurpose facility. He suggested members of the committee could include those who had been supporting the project in the past. D-6. Planning & Zoning Commission -- Bannock reported he did not attend the meeting. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the meeting agenda was included in the packet and there was no quorum for the meeting. D-7b. Kenai Convention & Visitors Bureau Board -- Bookey reported no meeting had been held and reminded those present of the grand opening for "Fish Odyssey: 2001" scheduled for May 4. D-7c. Alaska Municipal League Report -- Williams stated he had no report and requested City Clerk Freas to contact the legislative delegation for an anticipated end -of -session date. l KENAI CITY COUNCIL MEETING MINUTES � APRIL 18, 2001 PAGE 6 Ross reported he spoke with Paul Fuhs in regard to the bluff erosion project and learned the Borough Planning Director sent a letter of support for CARA funding for the city. Ross was asked what the capital budget position was for the city and Ross answered it was unknown, but he would check into it. Williams reported he spoke with Congressman Young about CARA funding and he felt he would be able to acquire more funding for Alaska with his chairmanship positions. Williams reported he received word the youth detention facility bill was moving along and funding was expected to be included. ITEM E: MINUTES E-1. Regular Meeting of April 4, 2001. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1. Discussion -- Sale of Block 3, Five Irons Heights Subdivision/ Draft Sale Documents Ross referred to the draft documents included in the packet and noted they included a prohibition for any commercial activity but did not reflect a development schedule and plan requirement. He noted, council discussed a reversionary clause being included with the documents, however the city attorney advised against doing so because it would preclude the city's ability to take the property back (if necessary) through judicial foreclosure. Instead the city would have to take the property back with all liens on it. Ross also reported the appraisal should be received by the next council meeting. He added, if the council wanted to add language to the documents that would require the bidder to submit a development plan and schedule with their bid, it could be done at that time. When council receives the high bid from administration, the development plan and schedule would be submitted as part of the package to council so it can be discussed with the high bidder. Also, there would be a possibility at that point that there may be other options to discuss with council that could satisfy their concern regarding an enforcement tool being included in the documents. Ross added, the options could develop from issues that may be raised from the appraisal when the values assigned to certain parts of the project are known, i.e. water line, road, etc. However, at this time, other than to state the bidder must submit a development plan and schedule, there was nothing more administration would propose to be included in KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 7 the documents. Ross noted, council would have more time to decide if there were more requirements to be added as they would review the appraisal before approving the sale. Williams noted a clause was included that no subsurface interest will be conveyed to the buyer and asked if subsurface rights are required for the installation of utility lines. Graves answered no. There were no changes to the draft documents. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and Councilman Bookey 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 requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, H-3., Ordinance No. 1907-2001 -- Increasing Estimated Revenues and Appropriations by $16,000 in the Senior Citizens Title III Grant Fund for Operating Supplies. Introduced by consent agenda. H-4. Discussion -- Inlet Woods Subdivision/62 Unsold Lots in Front Half of Subdivision -- Request for Cash Price Negotiated Sale. Ross reported a request was received for a cash price negotiated sale on Inlet Woods properties which had previously been offered in public sale. Administration required an appraisal done of the 62 lots for council to review and then determine whether they wanted to proceed with the sale. He noted, council directed some of the lots in the subdivision be replatted from two lots into one. However, the appraiser indicated that if the combination of the lots was done prior to the appraisal, it would result in considerably diminished value to the city in the sale. Ross added, he discussed the appraiser's comments with the person requesting the purchase who would also like some of the lots combined but understood and agreed it was something the buyer KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 8 should do. Ross noted, administration's proposal to council was to put the joining of the lots on hold and proceed with the appraisal of the lots as they are for a cash sale if council approves the appraisal. Bookey asked if selling of the lots would give the buyer the majority of the lots in the subdivision and then allow the buyer to change the covenants. Ross answered, if the same individual purchases the rear lots and front lots, he would own the majority of the lots. If the rear lots were not sold, the city would continue to be the majority owner. Bookey stated his concern that the subdivision's covenants could be changed by one person. Attorney Graves stated there were some potential mechanisms used to prevent covenants being changed and would investigate the issue and include that information with the appraisal information. Bookey suggested a building schedule requirement be included for this subdivision as well as the Five Irons property if all the lots are sold to one person to insure the lots are developed and not held. Porter agreed with Bookey and noted the council discussed the issue extensively with the interested purchaser of Five Irons (Anderson), but not with Hall, the requesting purchaser for Inlet Woods properties. Ross noted there were some distinctions with the projects, i.e. there is no potential for the city to install infrastructure on the Inlet Woods lots and if Five Irons is sold at appraisal price "as is" and it was developed within a few years, the city could greatly enhance the property because of projects the city has in mind. He added, there would be a significant motivator for the purchaser of Inlet Woods properties as they would not realize an appreciable gain by holding the property. However, the buyer of Five Irons properties could realize a considerable gain by holding the properties until the city installs water lines in that area. Frazer asked whether the covenants were a part of the sale documents for Inlet Woods and Ross explained the covenants are made a part of all the Inlet Woods sale documents. However, the majority owner of properties in a subdivision can form a homeowners' association and change the covenants. It was noted there is no active homeowner association in Inlet Woods. Frazer asked if a development schedule was included with the Inlet Woods properties, how would undeveloped lots now being held by owners be handled or if only a portion of the lots are purchased by the requestor, would the same development standards be attached to future buyers of one lot or more. Bookey stated he wasn't trying to stop the development and wanted it to continue, but was concerned about a subdivision that had sat undeveloped for over ten years and didn't want to see it continue to sit there, though he didn't think the interested developer would do that. Bookey stated he believed someone purchasing single lots would be handled differently. Bannock stated, if any one person was to purchase all the unsold lots in Inlet Woods and did nothing with them, the city would still be ahead with taxable properties. He l KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 9 believed the worst case scenario would be anything better than what the situation is currently. Williams stated noted the problems in the past with developers purchasing city property and then holding it, which retarded the growth of the city. He added, he was more concerned with the Five Iron Heights property because it was part of the payoff for the ice rink. Moore noted the Five Irons property was not included in the BOR negotiations. Ross explained that it was not part of the BOR negotiations, but was figured into the original investment. Williams noted, reasons for development of the Five Irons Heights property was more than just property taxes. Bookey stated he wanted to be fair to the people in the Inlet Woods Subdivision who had already built there and protect the covenants. Graves explained covenants are controlled by one lot, one vote and thought there could be other options to restrict changing the covenants. Frazer suggested that information be included in the sales documents because when the lot is developed and purchased, the restriction to the `developer would disappear for that lot. Bannock stated he didn't know if it was the seller of the properties to determine what the covenants could or could not be, but felt it was the buyers prerogative. If the city wanted to protect current property owners from changes in covenants, etc., the city's ability to make zoning changes would disappear. He added, if a single lot is sold, the city doesn't say the covenants must remain the same and didn't think it should be different if all 62 of the lots were sold to one person. Williams stated he didn't know how to protect the existing owners or what position the council should take. Bannock noted the city does not normally involve itself in protecting covenants. The city has a code, personnel, etc. to take care of those protections. Williams asked Moore if there had been any comments from those in his residential area (Inlet Woods) regarding this issue. Moore answered yes. Bookey stated the covenants should stay in place or be compatible with the current ones. Porter stated she understood from the beginning that when those lots were sold, either individually or as a group, the covenants would remain with them. She felt it was the city council's obligation to the current residents to make sure the covenants stay in place, but also felt it was the responsibility of the current residents of the subdivision to have an active home owners association to enforce the current covenants. Bookey stated he sympathized with Bannock's position, but because it is a municipal issue and because it took ten years to get to the point where the lots could be sold, it presented a different issue. He added, he believed the city needed to protect the citizenry currently living there. Frazer stated he would like to see what Graves would bring to them and hoped the covenants could be maintained. Bannock stated he believed the city has the right to add a restriction to the documents, but didn't agree with doing it. He added, with -`\ KENAI CITY COUNCIL MEETING MINUTES � APRIL 18, 2001 PAGE 10 future sales of developed lots from individual owners, changes in the composition of what the new property owners would want to allow in their subdivision could be changed and they could amend the covenants. Graves noted, the sale documents could include a restriction that the developer would not be able to make changes to the covenants, but when the property is resold, the right to change the covenants would reattach. He added, it would be a one-time deed restriction to the. developer. Ross advised he was advising council their directions to proceed with the combination of some of the lots was being delayed until the appraisal is received and council decides whether they want to go forward with a negotiated sale. Unless council disagrees with the delay of the combination of the lots, he would proceed. Moore requested Ross to forward a notice to the same owners of property in the subdivision regarding the hold on the combining of the lots as were originally noticed about the combining of the lots. Ross stated he would if council had no objections. He added, the city would live up to the combining of two lots that were recently sold with that understanding prior to this discussion. Ross added, up until the date of sale, the 62 lots would be available for sale to anyone. Frazer noted, Ross' question was whether council had any objections to the hold on combining the lots in order to have them be more valuable in regard to the appraisal. Ross stated he was not asking for action unless council wanted to go forward with the combining of lots. No action was taken. ITEM I: ADMINISTRATION REPORTS Mayor -- Williams reported the following: • A letter of invitation to the Annual Industrial Days picnic was included as an information item scheduled for. August 25. • Noted Representative Chenault's thank -you letter for the airport picture. • Noted the Kenai Alternative School's thank -you letter for the donation to their graduation ceremony. • Noted the letter from the City of Delta Junction included as Information Item No. 4 in regard to the proposed private prison and costs per prisoner. • Noted the invitation to Officer Dave Vroman's retirement luncheon scheduled for April 27. I-2. City Manager -- Ross reported the following: • The recent reduction in interest rates could further complicate the city budget situation. He added, when the budget comes back before council, it would reflect another, review of interest earnings and could reflect a downward adjustment, possibly in the 50,000-$80,000 range. • Attended a meeting in Anchorage regarding the conservation easement request that would tie the bird viewing area on the dock road proposal with the KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 11 boardwalk into Unity Trail. Information he received from the state was being reviewed by Public Works as to how and what should be set aside to be sure the city will always have future corridors. If it is decided to proceed with the easement, it would allow the city to place infrastructure across the river if desired. He noted, if language can be agreed upon, the document would be referred to council for review and consideration. He added, this would involve the state buying a conservation easement from the city and the state adding more funding into the boardwalk area and giving the city an easement across the property formerly owned by Cone which would allow a second entrance into the dock area. Ross stated he didn't think the matter would be before council before July but he hoped a draft would be before council prior to his leaving the city s employment. I-3. Attorney -- Attorney Graves reported he hoped to have an agreement with the court system whereby the city would take over the collection of municipal traffic fines and be able to collect them by electronically attaching Permanent Fund allotments. He added, he and Chief Morris had been working on the issue for some time which included a lot of paperwork in preparation but would dramatically step up the fine collection for municipal funds. I-4. City Clerk -- Freas reminded council of the volunteer reception scheduled for April 27 at the Senior Center and noted she would be attending a seminar in Anchorage on April 19, but would be back in the office on Friday. I-5. Finance Director -- Finance Director Semmens referred to the quarterly investment report included in the packet and invited council to call him if they had questions. I-6. Public Works Managers -- No reports. I-7. Airport Manager -- No report. ITEM J: DISCUSSION J-1. Citizens -- None. J-20, Council Frazer -- No comments. Bannock -- No comments. Porter -- • Asked how many council members would be attending the volunteer reception and noted she and Bannock would be in touch in regard to assignments. • Asked Ross if any progress was being made in regard to the occupancy of the ARFF building. Ross stated he would check and report back. l KENAI CITY COUNCIL MEETING MINUTES APRIL 18, 2001 PAGE 12 • Requested La Shot to investigate a junk vehicle at Jim's towing. La Shot reported it had been noticed and Administrative Assistant Kebschull was investigating it. • Requested the sign advertising a restaurant at the King's Inn be checked to see if it was up to code requirements. Moore -- No comments. Swarner -- • Stated she was contacted about a burned out house on Lilac and junk car and whether it had been investigated. • Reported a house on Haller Street with similar problems. Bookey -- No comments. Williams -- Requested council to further consider the budget in regard to funds to be used for the refrigeration of the ice rink in light of the interest rate decrease. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 9:02 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk ppplQll� 6Y �Ja/pL