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HomeMy WebLinkAbout2001-09-05 Council MinutesITEM A: AGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 5, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / Z www. ci. kenai. ak. u s 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. Don Gilman, Concerned Citizens for Responsible Economic Development -- Economic Feasibility of Proposed Prison Project. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1926-2001 -- Appropriating a $1,500 Donation From the Kenai Elks Lodge #2425 for Recreational Equipment. 2. Ordinance No. 1927-2001 -- Increasing Estimated Revenues and Appropriations by $6,400 in the General Fund for a Library Grant From the State of Alaska. 3. Ordinance No. 1928-2001 -- Finding That Certain Foreclosed Properties Are Not Needed for Public Purpose and May be Sold. 4. Ordinance No. 1929-2001 -- Amending the Requirements in KMC 9.10 Regarding Collection and Disposal of Garbage/Refuse in the City of Kenai. 5. Ordinance No. 1930-2001 -- Increasing Estimated Revenues and Appropriations by $183,000 in the Bridge Access/Frontage Water Main Capital Project Fund. 6. Resolution No. 2001-62 -- Supporting the State Department of Natural Resources Purchase of Property Identified as Tract 1, Horseshoe End at River Bend Subdivision, Kenai, Alaska For Development of a Boat Launch Access Facility for the Lower Kenai River. 7. Resolution No. 2001-63 Supporting Conveyance of a Conservation Easement on the Kenai River Flats to the State of Alaska for Management by the Alaska Department of Fish and Game; Construction of a Boardwalk and Wildlife Viewing Platform Adjacent to Boat Launch Road; and Construction of a New Access Road to the City of Kenai Boating Facility. 8. Resolution No. 2001-64 -- Awarding the Bid to Best Transit Mix for 8,000 Cubic Yards of Street Maintenance Sand for the Total Amount of $51,920. 9. Resolution No. 2001-65 -- Awarding the Bid to Bob's Service, Inc. for a Street Department Stainless Steel Sander-2001 for the Total Amount of $21)164. 10. Resolution No. 2001-66 -- Approving a Contract to Zubeck, Inc. for the Project Entitled Bridge Access/ Frontage Water Main-2001 for the Total Amount of $137,845.80. 11. Resolution No. 2001-67 -- Designating the Kenai Water Quality & Quantity Development Program Well House No. 4 With Main Line Tie -Ins Phase III Project as the City of Kenai's No. 1 Overall Capital Improvement Project. ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8s Recreation Commission 6. Planning 8s 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. *Regular Meeting of August 15, 2001. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified � 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1931-2001-- Increasing Estimated Revenues and Appropriations by $18,760 in the Council on Aging Title III Fund. 4. *Ordinance No. 1932-2001 -- Increasing Estimated Revenues and Appropriations by $204,828 in the 2002 Street Improvement Capital Project Fund. 5. *Ordinance No. 1933-2001 -- Amending KMC 14.20.230 (Home Occupations) to Allow Home Occupations in Residences in Commercial Zones. 6. *Ordinance No. 1934-2001 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund and Library Improvements Capital Project Fund for Schematic Drawings and Plans. 7. *Ordinance No. 1935-2001 -- Increasing Estimated Revenues and Appropriations by $43,727 in the Senior Citizens Borough Grant Fund. 8. Approval -- Lease Application/Lot 4, Block 5, Cook Inlet Industrial Air Park 8v Adjacent Right-of-Way/James B. Olson, d/b/a Jim's Towing and Autobody. 9. Approval -- Consent to Assignment for Security/ Blue Mountain Ventures, Inc. to First National Bank of Anchorage/Lots 7 8, 8, Block 1, FBO Subdivision. 10. Discussion -- Travel Agency Concession/Request for Five -Year Exclusive Lease. 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 j ITEM K: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 5, 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 7:08 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: Moore, Porter, Bannock, Williams, Bookey and Swarner. A- 3 . AGENDA APPROVAL Mayor Williams noted he had no changes to the agenda. MOTION: Councilwoman Swarner MOVED for approval of the agenda and Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA Mayor Williams noted there were no changes to the Consent Agenda. MOTION: Councilwoman Swarner MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Don Gilman, Concerned Citizens for Responsible Economic Development -- Economic Feasibility of Proposed Prison Project. Don Gilman -- P.O. Box 2941, Kenai; 43029 Morning Circle, Kenai. Gilman explained the following: ') KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 2 Gilman gave a short history of the economic downscales and efforts to find new businesses for the area over the past 30 years, noting after the passage of ANCSA the city, borough and state supported the efforts of the Kenai Natives Association, Inc. to acquire the Wildwood Facility as a portion of their settlement; that there had been discussion of developing a prison at the Wildwood facility since the 70's; due to lack of prison beds, the State had been sending prisoners out of state since 1975; and the Court had directed the State of Alaska to develop facilities in the state in order to bring prisoners now incarcerated in prisons outside of Alaska, back to Alaska. Gilman noted the Borough Assembly had placed a proposition on the October ballot asking if the borough may proceed in the development of and financing for a private prison. Questions of feasibility, costs, etc. had been asked, however the answers were not yet known. He added, a study was requested, but had not yet been done and wouldn't be done if the vote is no. Gilman requested council to keep an open mind about the project, however he did not know if the council wanted to make a statement, but the city and the community always took the lead in trying to fill a void. He added, that without diversification, the community would remain dependent on the price of oil. Gilman added, with a "no" vote, the borough wouldn't have anything more to do with the project, however the project would be developed by someone else in the State. A lengthy discussion followed where it was noted: • The Department of Corrections stated they will return prisoners to Alaska, however no specific date had been set. • Positive issues of having the prison in the community were stated to be: (1) over the next 25 years, $500 million would come into the area economy through wages, purchases, property taxes, etc.; (2) spin-off of that income would go throughout the Borough; and (3) diversification of the economy. • No study would be done until after the vote to learn what impacts could be expected to area non -profits, i.e. Boys & Girls Club, Food Bank, etc. • Funds to produce a feasibility study were authorized by the borough and a study would be done if the vote is "yes." • The Borough Assembly would, after the October 2001 vote is taken and if the answer is "yes," decide whether another vote would be taken in regard to proceeding with the project. • If an agreement is not signed by the state to proceed with private prison development, the next Legislature could change the direction of what types of prisons would be developed, however the court would still demand the prisoners be brought back to Alaska. • After a feasibility study and engineering is completed and the costs of the project is understood, a change from private to public probably wouldn't be done without a summary review process completed. The management company would be hired by the State but still at the direction of the Department of Corrections, and if after a review, a change could be made of the management company. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5 2001 PAGE 3 Gilman stated he believed it was important the council make a statement in regard to the project. Williams noted his concerns as: • There had been a lack of information in regard to the project. • It is not certain if the facility would be for 800 or 1,000 beds. • What the impacts would be to the City of Kenai if the vote is "yes." • After an impact statement is completed and if the vote is "yes," the voters should have another opportunity to vote on whether to proceed after review of the impact information. • No major meetings had taken place between the city and borough as to impacts to the City, i.e. mechanical, utility services, road services, police department, administration, etc. Bookey stated it was very hard for him to decide on the project because of the points Williams made in regard to lack of impact information. He added, he was aware development of the prison would be good for economic development, but also was aware there would be impacts to the community as well. Bookey stated he thought it was now in the voters' hands and should be left to them. If the voters say yes, he would support them and visa versa. Moore stated he didn't think there was any way the project could be done without the city's cooperation. Gilman agreed there would be impact to the city, i.e. activity at the airport, people on the street, businesses reopened, etc. Gilman added, he couldn't answer the question because he was not aware of what the utility requirements would be, if they could have their own water system and treatment facility, etc., however it wasn't beyond the realm of possibility that a stand-alone facility could be built. Williams stated that even if a stand-alone facility were to be built, the project itself would still have impacts to the city in regard to police, fire, road service, etc. and the question of handling cost impacts to those concerns would still be unanswered. Williams noted the city had similar concerns when the oil companies moved into the area. Williams added, if the vote is "yes," the city could cope, but the city should have the opportunity to know what the impacts would be. Tim Navarre, Assembly President -- Pledged there was never a doubt the Borough would not work with the city and request input. He noted, a citizen petition requested a feasibility study to be done. Navarre stated he didn't want a vote taken at this time because of the lack of information, but the Assembly was put in a position that a vote was needed to be taken. The borough also backed away from a feasibility study because only one proposal was received and they felt it was better to wait. Navarre added, a "yes" vote would allow the Assembly to continue to work toward the development. He added, the Assembly's actions to date protected the borough and the city and the borough would work with the city during the whole project. Navarre KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5 2001 0 PAGE 4 stated, it was imperative for the success of the borough for the cities of the borough to be successful as well. Navarre continued, after the vote it would be up to the Assembly to get the answers, the feasibility study, speak with the cities affected, and make the best decisions for everyone. He added, the borough had been proactive in making sure the project would not end up somewhere else out of the borough. Williams noted the council had not said no. Navarre stated the assembly had said yes to move forward with the project and he felt that was what the council needed to do. Williams noted council had hoped to meet with Department of Corrections Commissioner Pugh prior to the vote being taken to better understand the impacts of the project. Navarre noted the meeting with the Commissioner had been canceled but would be held in the next week and he would make sure the city would be invited. Navarre noted there were others on the Peninsula who wanted the council to determine their opinion of the project in order to better determine how they would want to vote. City Manager Snow reported that during a staff meeting earlier in the week, a roundtable discussion was held in regard to feelings of impacts to the city. She noted she could prepare a written report for council for their review. Williams suggested council meet for a work session on September 12 for the sole purpose of discussing the prison and whether or not the council should entertain the writing of a resolution of any sort for consideration at the regular council meeting on September 19. Prior to the meeting, the city administration was asked to meet with members of the borough staff, Cornell representatives, etc. and then prepare a report of what would be considered as impacts to the city for review by council. Swarner requested the council's work session be coordinated with the borough's meeting with Commissioner Pugh and Navarre stated he would try to arrange it. Snow stated she would meet with the representatives and prepare a report of what the staff think would be the impacts to the city. Council set a work session for 7:00 p.m., Wednesday, September 12 in the council chambers. BREAK TAKEN: 8:20 P.M. BACK TO ORDER: 8:40 P.M. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1926-2001 -- Appropriating a $1,500 Donation From the Kenai Elks Lodge #2425 for Recreational Equipment. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5 2001 PAGE 5 MOTION: Councilwoman Porter MOVED for approval of Ordinance No. 1926-2001 and Councilman Moore SECONDED the motion. There were no public or council comments. VOTE: Moore: Yes Porter: Yes Bannock: Yes Williams: Yes 1 Booke Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-2. Ordinance No. 1927-2001 -- Increasing Estimated Revenues and Appropriations by $6,400 in the General Fund for a Library Grant From the State of Alaska. MOTION: Councilman Moore MOVED for adoption of Ordinance No. 1927-2001 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: Moore: Yes Porter: Yes Bannock: Yes Williams: Yes 1 Booke Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-3, Ordinance No. 1928-2001 -- Finding That Certain Foreclosed Properties Are Not Needed for Public Purpose and May be Sold. Councilwoman Swarner MOVED for adoption of Ordinance No. 1927-2001 and Councilwoman Porter SECONDED the motion. Debbie Sonberg -- 410 Cinderella Lane, Kenai. Referred to her letter included in the packet and noted there were a number of people who signed the letter (and another which was turned into the Clerk prior to the meeting), and were requesting council to withhold three parcels for future development of neighborhood parks (Lot 1, Block 1, Sprucewood Glen, Lot 6, Block 2, Sprucewood Glen and Lot 2, Block 1, Kaknu Korners) . She requested council remove the parcels and allow her time to pursue KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 6 ideas they had for park development. The letter noted the properties were not large enough for playground equipment and parking, but could be used for a playground recreational area to serve 15-30 families in their immediate areas. Bookey stated he had concerns with the two parcels in Sprucewood Glen due to their being corner lots and because traffic on the road could be a danger to children who would be using the park. He added, he would prefer those lots be sold and put back into the private sector. He had no objection to withholding the Kaknu Korners Subdivision property. Williams noted he spoke with many owners of property in the vicinity of the Kaknu Korners property and they all agreed they would like to reserve the property for a park He noted, he suggested the property owners could take on neighborhood participation with maintenance and development of a park and fence in the area. It was decided to review the properties individually. Lot 2, Block 17, Old Town Kenai, 807 Peninsula Avenue Porter requested this property be removed from the list because both the Parks & Recreation and Planning 8. Zoning Commissions recommended its removal in order to enlarge the existing park adjacent to the property. It was noted there was a burned out trailer on the property and if the property were removed from the list, the city would have to abate the property at an estimated cost of $5,000. City Manager Snow noted borough taxes of $1,800 would also have to be paid by the city. Finance Director Semmens added, the assessed value of the lot was set at $16,000. Snow also referred to a letter included in the packet from George Nyce. Mark Schrag -- Reported he is the manager of the apartments next door to the property. He noted the owner of the apartments (Nyce) was interested in purchasing the property to use it for a place to push their snow in the winter as well as a buffer zone between the properties. He suggested the property could be split between the city and Nyce and they would be willing to do some of the abatement. Bookey stated he believed the park was large enough and he preferred the property be put back into the private sector for development. Referring to Schrag's suggestion of splitting the property, Williams suggested that could be viable, as well as vacating the right-of-way easement along the property, and then join the city's portion of the property to the current park. Graves explained, under the Statutes, the city could retain the property for public purpose, but not keep it and sell it to someone else without it going to public sale. Bannock stated he would support the sale. Swarner suggested withholding the property, abate it and then lease it back to Nyce for his use of snow storage. Graves noted there could be a problem in withholding it with the intent of leasing. Williams KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 7 stated he would like the fence moved, if necessary, to its proper location, vacate the right-of-way, and sell the property. This property was not withheld. Government Lot 128, 1207 Second Avenue and Lot 120B, American Subdivision, 1309 Kaknu These properties were not withheld. Lot 2, Block 1, Kaknu Korners Subdivision, 306 Kulila Place MOTION TO AMEND: Councilwoman Swarner MOVED to pull Parcel 4513025 from the sale parcel list and hold it for public use. Councilman Bookey SECONDED the motion. Semmens reported $1,500 in back taxes owed on the property and the assessed value was $9,700. VOTE ON THE AMENDMENT: There were no objections. SO ORDERED. Lot 1, Block 1, Sprucewood Glen Subdivision and Lot 6, block 2, Sprucewood Glen Suhdivi.ginn It was noted the assessed value of the properties was $13,000 each. Bookey stated he wanted the property to be remain on the list for sale. He added, he agreed with the concept of neighborhood recreational areas discussed by Sonberg, but because they are corner lots, they were highly developable. Swarner noted, developing the lots as parks would enlarge the Parks & Recreation budget for care and maintenance and did not want the properties to be removed. Sonberg noted she had learned of a state matching grant for parks in which in -kind contributions could be materials and labor and the lots were chosen because of the neighbors' desire for a park. It was noted that if the property is not sold, the properties would be re -offered in future sales until the properties are sold. They could not be negotiated sales because they were foreclosed properties. Bannock suggested that if the properties are not sold, there was the possibility they could be seeded and maintained without the city's involvement. Semmens noted there were outstanding assessments on the properties as well. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 8 These properties were not withheld. Lot 35, Redoubt Terrace, Addition #4, 1531 Stellar Drive This property was not withheld. Lot 1, Lot 2, and Lot 3, Russel Subdivision, 411, 409 and 407 Eadie's Way Discussion followed in which it was noted the assessed value of the properties was $11,200 each and taxes and assessments were owed on the properties. Williams suggested the properties could be donated to Habitat for Humanities, however the assessments owed were $16,600, $12, 400 and $12,400 respectively. Semmens stated the city had the ability to set a minimum bid at less than what is owed and it was administration's plan to set the minimum bid at 40-50% of the assessed value and then use what is received for paying back taxes and assessments. There was council consensus to leave the lots on the sale list and if there is no purchase, then consider donating the properties to Habitat for Humanity. Lots 21 and 23, Block 3, VIP Ranch Estates, Part 5, 930 and 950 Baleen Avenue These properties were not withheld. Lot 34, Block 7, Valhalla Heights Sub., Part 3, 4210 Dogwood This property was not withheld. Lot 2, Block 15, Arl F. Ahlstrom Subdivision, 1111 Gerdine Way This property was not withheld. VOTE ON MAIN AMENDED MOTION: Moore: Yes Porter: Yes Bannock: Yes Williams: IYes Booke Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-4, Ordinance No. 1929-2001 -- Amending the Requirements in KMC 9.10 Regarding Collection and Disposal of Garbage /Refuse in the City of Kenai. MOTION: KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 9 Councilwoman Swarner MOVED for adoption of Ordinance No. 1929-2001 and Councilwoman Porter SECONDED the motion. There were no public comments. Attorney Graves explained the amendment of this portion of the code was being done as a continuation of the policy to update portions of the code. As written, the code requires residents of the city to use commercial garbage/refuse services, and because many residents deposit their garbage at the local transfer site, the ordinance couldn't be enforced. It was noted administration would be increasing enforcement efforts and though most of the code is complaint driven and there are never enough resources to enforce every area of the code, if administration sees violations, enforcement will be applied. VOTE: Moore: Yes Porter: Yes Bannock: Yes Williams: Yes I Booke Yes I Swarner: Yes MOTION PASSED UNANIMOUSLY. C-5. Ordinance No. 1930-2001 -- Increasing Estimated Revenues and Appropriations by $183,000 in the Bridge Access/Frontage Water Main Capital Project Fund. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance no. 1930-2001 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: Moore: Yes Porter: Yes Bannock: Yes Williams: 1 Yes Booke Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-6., Resolution No. 2001-62 -- Supporting the State Department of Natural Resources Purchase of Property Identified as Tract 1, Horseshoe End at River Bend Subdivision, Kenai, Alaska For Development of a Boat Launch Access Facility for the Lower Kenai River. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 10 MOTION: Councilwoman Swarner MOVED for adoption of Resolution No. 2001-62 and Councilwoman Porter SECONDED the motion. There were no public comments. Williams reported that during the week he had discussions with state legislators and agencies regarding the development of a boat ramp. Although the Legislature appropriated $350,000 for the purchase of the property referred to in the resolution, the sale price of the property would be much more and it was doubtful additional funding would be received from the Legislature. He added, the agencies would prefer using the Wild Rose properties and was informed the Legislator suggesting the appropriation would support changing the designation of the property. He also noted council heard from citizens of the community those properties would not be appropriate for a ramp. It was also suggested to him that a ramp could be built in conjunction with the new turnout and viewing area downstream of the bridge and that property is owned by the state and there was the possibility the city could team with them and have the funding re -appropriated for development of the ramp. Williams stated it was his very strong feeling that if the properties indicated on the resolution (Tract 1, Horseshoe End at River Bend Subdivision), it could not be purchased, it won't be approved for use by the agencies, and the property would end in state ownership and undeveloped. He recommended dropping the resolution and request administration to meet with agency representatives and discuss the potential of building the ramp in conjunction with the development of the parking area/ turnout downriver of the bridge and request reassignment of the funds for the development of the boat ramp (instead of purchase of property) . Bookey agreed the lower portion of the river was the logical place for the ramp and hoped the funding could be re -appropriated. He noted his concern of losing the project completely and asked Williams if there was some support of making this change. Williams answered there was no indication from state agencies the change would work. Williams suggested the funding could remain available until it is called back, generally two years. He added, he thought it would remain for a year and in the meantime, a request could be made to re -appropriate the funds during the next session if the agencies agreed it would be a good idea to make it a part of the Birch Island project (redevelopment of the parking lot/ turnout and wildlife platform) . Swarner stated she had been approached by the owner of the private boat launch in the city who was concerned about the development of another boat launch in the city. She requested those owners be notified of the city's plans. \ KENAI CITY COUNCIL MEETING MINUTES � SEPTEMBER 5, 2001 PAGE 11 MOTION TO TABLE: Councilwoman Porter MOVED to table Resolution No. 2001-62 and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. C-7. Resolution No. 2001-63 -- Supporting Conveyance of a Conservation Easement on the Kenai River Flats to the State of Alaska for Management by the Alaska Department of Fish and Game; Construction of a Boardwalk and Wildlife Viewing Platform Adjacent to Boat Launch Road; and Construction of a New Access Road to the City of Kenai Boating Facility. MOTION: Councilman Bookey MOVED for approval of Resolution No. 2001-63 and Councilwoman Swarner SECONDED the motion. BREAK TAKEN: 9:40 P.M. BACK TO ORDER: 9:50 P.M. Snow reviewed the resolution with council, noting the three parts to the resolution: 1. The conveyance of the conservation easement on the Kenai River Flats and purchased by the State of Alaska at fair market value. 2. Once purchased, there would then be a boardwalk and wildlife viewing platform constructed adjacent to Boat Launch Road (built with grant funds from the Exxon Valdez Trust Fund). 3. Construction of a new access road to the city's boating facility. She noted the State of Alaska needed some evidence of support for the conveyance and the boardwalk/wildlife viewing platform construction. Council reviewed maps included in the packet indicating the properties to be traded, areas where the platform and road would be constructed, etc. Concerns discussed were: 1. Whether consideration had been given to the 700 lb. gas line that crosses the proposed easement. Snow answered yes and it was included in the resolution. 2. That the city would be giving the state total control of the property and whether consideration was given to a reversionary clause if the property changed in future and was no longer considered wetlands (through an earthquake, etc.) . Snow noted, a clause to that effect could be included in the proposed easement. 3. Could the boat ramp be combined with the trade involving Birch Island. Snow indicated they were two different issues and agencies, i.e. Birch Island \� KENAI CITY COUNCIL MEETING MINUTES } SEPTEMBER 5, 2001 PAGE 12 properties were being used as replacement lands for the BOR restriction removal working with the DNR, Parks Division, and the conservation easement was being worked through Fish 8s Game. Concern was stated the city may be giving away too much property and directed administration to discuss the possibility of combining the efforts of the three projects, i.e. Birch Island, Conservation Easement (with wildlife viewing platform and dock access road) and Boat Ramp in order that less of the city's property would be traded away. Barry Eldridge, Harbor Commission Member -- 2679 Bowpicker Lane. Eldridge gave background of the Commission's past discussions in regard to their interest in developing the described land for several different projects, i.e. boardwalks for bird viewing on the flats, boat ramp on the lower river, and need for an additional road to the dock to alleviate traffic during dip net season. Swarner noted wildlife viewing is considered eco-tourism and economic development and should be considered as well. Bookey stated he would like Administration to discuss widening the 50 foot easement on the west side of the highway to 100 feet. He noted, when the easement is granted, the city would never get the property back. Porter suggested the possibility of using only the lower portion (the flats) for trading and the city hold on to the other properties (Parcel Nos. 04945004 and 0494005) . It was also suggested to have a boat launch ramp in the area of the existing turn-off, viewing area just off the Warren Ames Bridge. Snow was requested to discuss the concepts as mentioned with DNR and Fish & Game and then take the matter to the Harbor Commission and then back to council. MOTION TO TABLE: Councilwoman Swarner MOVED to table the motion to a time uncertain and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. C-8. Resolution No. 2001-64 -- Awarding the Bid to Best Transit Mix for 8,000 Cubic Yards of Street Maintenance Sand for the Total Amount of $51,920. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-64 and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. \ KENAI CITY COUNCIL MEETING MINUTES � SEPTEMBER 5, 2001 PAGE 13 There were no public comments. Public Works Manager Kornelis reported this was the first year the city purchased sand and it was anticipated the amount to be purchased would be used. VOTE: There were no objections. SO ORDERED, C-9. Resolution No. 2001-65 -- Awarding the Bid to Bob's Service, Inc. for a Street Department Stainless Steel Sander-2001 for the Total Amount of $21)164. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-65 and requested UNANIMOUS CONSENT. There were no public comments. Kornelis explained they were purchasing a stainless steel sander because the sand now using has urea in it, which is corrosive. VOTE: There were no objections. SO ORDERED. C-10, Resolution No. 2001-66 -- Approving a Contract to Zubeck, Inc. for the Project Entitled Bridge Access/Frontage Water Main-2001 for the Total Amount of $137,845.80. MOTION: Councilman Bookey MOVED for approval of Resolution No. 2001-66 and Councilman Bannock SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-11, Resolution No. 2001-67 -- Designating the Kenai Water Quality & Quantity Development Program Well House No. 4 With Main Line Tie -Ins Phase III Project as the City of Kenai's No. 1 Overall Capital Improvement Project. MOTION: l KENAI CITY COUNCIL MEETING MINUTES � SEPTEMBER 5, 2001 PAGE 14 MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-67 and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. There were no public comments. Williams requested the wording be amended to specify the water program as the number one overall capital improvement project from the State of Alaska (the city's coastal trail/bluff restoration is another project for which $10 million in federal funding is being requested) . Snow suggested amending the resolution by adding ADEC before "number one overall..." throughout the resolution. MOTION TO AMEND: Councilman Bookey MOVED to amend the resolution as suggested by City Manager Snow and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, VOTE ON MAIN AMENDED MOTION: � There were no objections. SO ORDERED, ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- Councilwoman Porter reported a meeting would be held at 10:00 a.m. on September 6 at the Senior Center. She also noted the Council on Aging was a member short due to the resignation of Roger Meeks. Of the applications included in the packet, Porter recommended the appointment of Bill Osborn. There were no objections from council and Mayor Williams made the appointment. D-2. Airport Commission -- Councilwoman Swarner reported the next meeting was scheduled for September 13. When asked about the replacement of the faulty tiles in the terminal, Public Works Manager La Shot stated they would be replaced very soon and would contact the contractor. D-3. Harbor Commission -- Councilman Bookey reported the next meeting was scheduled for September 10. D-4. Library Commission -- Councilman Moore reported a meeting was held on September 4 at which time the members reviewed the Kluge proposal for design and schematic drawings for a library expansion. An ordinance appropriating funds for payment would be before council for consideration at their September 19 meeting. La Shot noted a resolution awarding the contract would also be before council. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 15 Moore also reported the Friends of the Library had designated $50,000 for purchase of furniture for the expansion. D-5. Parks & Recreation Commission -- Councilwoman Porter reported the next meeting was scheduled for September 6. D-6. Planning & Zoning Commission -- Councilman Bannock reported a copy of the minutes of the August 22 meeting were included in the packet. He reviewed actions taken on Home Occupation Permit code amendments and the approval of a Conditional Use Permit for the Youth Detention Facility to be constructed along Marathon Road. D-7, Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Councilwoman Swarner reported the minutes of the August 14 meeting were included in the packet and that the Commission would meet again on September 11. D-7b. Kenai Convention & Visitors Bureau Board -- No report. D-7c. Alaska Municipal League Report -- Mayor Williams reported he would be working with the Clerk to prepare the entry forms for an AML award and would use the partnering of the borough, city, and state to build the new public health facility as its topic. ITEM E: MINUTES E-1. Regular Meeting of August 15, 2001. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. 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. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 16 Finance Director Semmens reported he received notification of the Phase I LLC's final accounting and would be preparing payment to them which would be slightly less than $18,000. VOTE: 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. It was noted the purchase order to Eagle Eye Helicopter was for taking photographs of the entire bluff and its erosion problems for use during presentations for funding requests. � VOTE: There were no objections. SO ORDERED, H-3. Ordinance No. 1931-2001-- Increasing Estimated Revenues and Appropriations by $18,760 in the Council on Aging Title III Fund. Introduced by consent agenda. H-4. Ordinance No. 1932-2001 -- Increasing Estimated Revenues and Appropriations by $204,828 in the 2002 Street Improvement Capital Project Fund. Introduced by consent agenda. H-5. Ordinance No. 1933-2001 -- Amending KMC 14.20.230 (Home Occupations) to Allow Home Occupations in Residences in Commercial Zones. Introduced by consent agenda. H-6. Ordinance No. 1934-2001 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund and Library Improvements Capital Project Fund for Schematic Drawings and Plans. Introduced by consent agenda. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 17 H-7. Ordinance No. 1935-2001 -- Increasing Estimated Revenues and Appropriations by $43,727 in the Senior Citizens Borough Grant Fund. Introduced by consent agenda. H-8. Approval -- Lease Application/ Lot 4, Block 5, Cook Inlet Industrial Air Park & Adjacent Right-of-Way/James B. Olson, d/ b / a Jim's Towing and Autobody. Snow referred to a memorandum included in the packet which explained the location of the property and the applicant, James B. Olson, would be using it to store vehicles, the property's prior use. Snow also reported it was important to note the city would be doing some cleanup on the property which predated the prior lessee. It was also noted the Planning & Zoning Commission reviewed the lease and had no obj ections. Snow explained the code requires an eight -foot fence to screen the use however the current fence was less than eight feet. She continued, if the current fence would become in disrepair and a building permit were required to replace it, the city would not be able to issue one because the fence is situated in the right of way. Attorney Graves explained the gate of the fence was on the right of way and blocks it if closed. He added, a permanent part of the fence would not be built across the right of way. The right of way is used by the city to enter into the city shop and had been part of the usage of the yard for a very long time. Williams stated his concern that if the property is ever returned to the city, who would be required to clean the property. Graves explained, because there had not been many users of the property, the chain of possession would lead back to the city and the Air Force. MOTION: Councilman Bookey MOVED to approve the application as presented and Councilman Bannock SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. H-9. Approval -- Consent to Assignment for Security/ Blue Mountain Ventures, Inc. to First National Bank of Anchorage/Lots 7 8, 8, Block 1, FBO Subdivision. Snow referred to the memorandum included in the packet and noted that during the review of the application, it was learned the applicant had been unaware they were required to register with the borough in regard to collecting sales tax. They are now working with the borough to correct this issue. She requested council's motion to reflect the applicant coming into compliance. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 18 MOTION: Councilwoman Swarner MOVED to approve the Consent to Assignment for Security/ Blue Mountain Ventures, Inc. to First National Bank of Anchorage/Lots 7 8v 8, Block 1, FBO Subdivision providing Blue Mountain Ventures, Inc. is in compliance with the Borough with sales taxes. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-10. Discussion -- Travel Agency Concession/Request for Five -Year Exclusive Lease. Snow requested council to give direction as to whether an Invitation to Bid should be issued for a travel agency concession in the airport and whether to change the current 12-month Special Use Permit to a five-year exclusive lease. During their discussion, council learned the restaurant, bar and car rentals are on five-year exclusive leases. However, there had been some past discussion about taking the restaurant out of an "exclusive" arena. Bookey stated he preferred the airport leases to be similar, as far as the exclusive issue and Porter stated she was not in favor of giving an exclusive lease, leaving the space available to anyone. Snow explained, the opportunity to bid would be available to all travel agencies. Bannock stated he did not object to a five-year lease, however he did object to the exclusive lease portion of the issue. MOTION: Councilwoman Swarner MOVED to direct Administration to issue the Invitation to Bid as requested by Ms. Fischer and continue with an exclusive use. Councilman Moore SECONDED the motion. VOTE: Moore: Yes Porter: Yes Bannock: No Williams: Yes Booke No Swarner: Yes MOTION PASSED, ITEM I: ADMINISTRATION REPORTS Mayor -- Referring to a letter included in the packet, Williams reported the Kenai Peninsula Tourism Marketing Council were requesting a donation toward their fall fundraiser. Swarner noted the fundraiser would be held in the city on November 2 in conjunction with a planned economic forum. Clerk Freas confirmed funds were KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 19 donated last year for a welcome reception for the Regional Tourism Conference, however no funds were included in the current budget. Bookey stated he would not support the donation since no funds were included in the budget for this purpose. MOTION: Councilman Bannock MOVED to give $100 and Councilman Moore SECONDED the motion. VOTE: Moore: Yes Porter: Yes Bannock: Yes Williams: I Yes 1 Booke No Swarner: Yes MOTION PASSED. • Referred to letters of support for Kenai Peninsula Borough Proposition No. 1 included in the packet and added, he received notification the Public Employees Union did not support the proposition. • Reported he had been discussing the possibility of a large industrial park being situated in the area. He would be continuing discussions and noted, there were types of industries other than the correctional industry that could be good economic neighbors and partners for the city. • Referred to some applications he reviewed for the National League of Cities James Houland Award for innovative projects. • Reported he was working on an AML Award application draft, using the new public health center as its topic. I-2. City Manager -- City Manager Snow referred to a report included in the packet as follows: • Youth Detention Center property -- the appraisal had been received which estimated the market value of the parcel at $325,000. The Planning & Zoning Commission confirmed the property was not needed for a City of Kenai public use but needed for the State's public use. • Land Sales Update -- Two land sales bid on earlier in the year were conditioned upon the execution of installation agreements. Due to difficulties encountered in obtaining cost estimates for receiving electrical service by both developers and because there were no other bidders, administration waived the 14-day time period for closing the sale and indicated a willingness to reduce the amount of the bond for both developers by the amount of the costs pre -paid by them to HEA for electrical service. She added, unless otherwise directed by Council, she would continue to extend the waiver. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 20 Snow noted, at some point in time it would become necessary to close the deal. Bookey stated he would want to take an alternative direction if the difficulties were not worked out by the first of the year. Swarner noted she sympathized with the developers but agreed with Bookey that January 1, 2002 would be an acceptable deadline. Snow stated she would report back to council if the situations changed or by January 1. Discussion followed regarding the Youth Detention Center property appraisal. Williams and Bookey stated they felt the values of city property were low when the city was selling them and high if the city wanted to purchase properties. It was suggested a second appraisal be acquired. Snow suggested council members review the appraisal and she was asked to discuss the matter with the appraiser, learning the method used for the evaluation and appraisal prior to council's deciding whether to acquire a new appraisal. Snow stated she would have another member of staff review the appraisal as well. • City Hall Remodel -- The remodel committee met in March and made several renovation alternatives for use of the downstairs space formerly occupied by Public Health. In August, the committee met again and decided to identify the impact the renovations might have on the mechanical/ventilation study of City Hall. She added, the committee will meet again in September. • Received word the Kenai Fire Department received a ten percent matching grant from FEMA for personal protective breathing equipment. Williams requested Snow to contact HEA to inquire if they are moving some of their equipment, personnel and activities to Homer and if so, how much. I-3. Attorney -- City Attorney Graves reported the city entered into an agreement with the court system to prosecute overdue fines through attachment of Permanent Fund Dividends. I-4. City Clerk -- Clerk Freas reported the following: • Election Board Membership -- Requested council approval of those persons who volunteered to act as election judges for the Kenai Precincts for the October 2, 2001 City of Kenai/ Kenai Peninsula Borough Election. MOTION: Councilwoman Swarner MOVED to appoint the list of people as election board members for the October 2, 2001 City of Kenai/Kenai Peninsula Borough election as presented and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. • 8/24/01 Telephone Poll -- Freas read into the record the following telephone poll results: \ KENAI CITY COUNCIL MEETING MINUTES � SEPTEMBER 5, 2001 PAGE 21 Administration is requesting Council to approve a purchase order to Aurora Refrigeration in the amount of $3,000 to repair and replace the compressor for the Senior Center walk-in freezer. The purchase will be made from the Buildings Repair and Maintenance budget. The poll was authorized by Linda L. Snow, City Manager; signed by Robin G. Feltman, Finance Department; attested by Sheryl A. Padilla, Deputy City Clerk. The vote was: Williams Yes Porter Yes Bookey Yes Swarner Yes Bannock Yes Moore Yes The poll was taken by Sheryl A. Padilla. I-5. Finance Director -- No report. I-6. Public Works Managers Kornelis: Noted a memorandum included in the packet regarding ADEC Municipal Matching and DCED Matching grants he would submit unless otherwise directed. There were no objections stated. La Shot: No report. I-?. Airport Manager -- No report. ITEM J. DISCUSSION J-1. Citizens -- None. J-24, Council Bannock -- No report Porter -- No report Moore -- No report Swarner: • Requested "one-way" signs be placed at Airport Way. • Received a question from a constituent who questioned who could acquire police reports. Chief Morris indicated it depended on the type of crime and the relationship to the person cited who was requesting it. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 5, 2001 PAGE 22 Discussion followed regarding a recent crime waive in the city at which time Morris was asked if he believed additional personnel were needed in the city. Morris stated he was aware there was less visibility of the Kenai force due to unfilled positions and some officers away at training, but did not feel additional personnel was required at this time. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at 11:45 p.m. Minutes transcribed anprepared by: Carol L. Freas, City Clerk -