HomeMy WebLinkAbout2001-09-12 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION
} SEPTEMBER 12, 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
MAYOR JOHN J. WILLIAMS, PRESIDING
Council present: Bookey, Porter, Moore, Swarner, Williams and Bannock
Staff present: Freas, Craig, Snow, Semmens, Graves, Kornelis, Morris, Walden
The work session was called to order at approximately 7:00 p.m. by Mayor Williams who
explained there would be no action taken during the evening and public comments would be
held at five minutes. Williams requested the audience to join him and council in the Pledge of
Allegiance and a moment of silence to remember those lives lost and affected by the September
11, 2001 terrorist attacks.
Referring to her Preliminary Assessment of Potential Impacts to City Departments of Proposed
Private Prison, City Manager Snow explained the information was brief and was not in depth as
the group did not have project impact data or other factual information pertaining to project
feasibility or social economic and financial components of the project, impacts to the Kenai
community, etc. She added, the report did not include any recommendations on staff impact
preparedness or mitigation measures.
Williams noted he received copies of the Delta Junction preliminary feasibility study and a copy
of litigation in regard to that proposed project. The work session was opened for public
comments.
Blaine Gilman, 116 Haida, Kenai -- Gilman stated he was in favor of the prison and was
representing the Kenai Natives Association, Inc. (KNA) . Gilman noted the following:
• He reviewed Snow's preliminary assessments and reported they recognized there
were water/ sewer issues that would have to be addressed, including design changes that could
make the project less expensive;
• If the proposition passed and the project moved forward, they planned on
working closely with the city and going to the Legislature to help acquire funding for the utility
costs involved with the project, including other avenues for funding that normally wouldn't be
available (increase of per diem rate to pay for Borough bonding of the project);
• They understand the utility concerns would have to be worked out to the
satisfaction of the city council;
• They know a major perception of the public concerns social/ public safety issues.
These issues have been researched through discussions with schools, prison, Cornell, etc. and
findings indicate less than one percent of families move to be near the member incarcerated
and they did not see this to be an issue.
• The facility, which would be medium security, would house inmates with a four
to seven-year sentence. With classification changes of the prisoners as they near their release
dates, they are moved to minimum security prisons. Those inmates who would be released in
the Kenai area would be those who committed their crimes in the area.
• He personally would not promote a project that would harm, degrade, or
endanger the community and felt the project would be good for the community, improving the
economy, offer jobs, etc.
• Requested council's support of the project.
Bill Popp, 810 Set Net Drive, Kenai -- Noted the following:
COUNCIL WORK SESSION
SEPTEMBER 12, 2001
PAGE 2
• Explained correspondence referenced in Snow's report regarding halfway
houses, was from Commissioner Pugh who expressed there was a need for a halfway house on
the Peninsula, which had been previously discussed in 1995 and 96. Popp added, in order for
a halfway house to be developed in the unincorporated areas of the Borough, the Assembly
must agree to the placement of a halfway house, for which it had not yet been formally applied.
Tom Livingston, Livingston/Slone, Architects -- Offered a brief overview of the design
aspects of the project (he passed out information), noting:
• The facility would be situated on Wildwood property, adjacent to the Wildwood
Facility;
• There was potential of sharing some services and backup security between the
present and proposed prison;
• There is excellent access to the airport; good access to highway transportation;
close to the court system; isolated location with natural buffers; readily developable; soils are
excellent for development; it's a large parcel offering optimum security; close to commercial
services; potential for water/ sewer infrastructure from the city; site size is approximately 60
Acres.
• Maximum capacity would be 800 beds, plus 88 segregation beds and eight
medical segregation cells (448 cells in total) .
• It would be a medium -security, full-time custody facility for Alaskan resident
male adults.
• No halfway house or work -release program anticipated.
• The site meets state requirements for medium -security facilities with same
safety features as a public prison.
• Transportation of inmates outside the facility would be provided by the Troopers.
• The facility was planned to be owned by the Borough and operated by a
professional, private corrections company (Cornell Corrections selected) .
• The Department of Corrections solely determines the sentencing and release of
all prisoners (not the private corrections company) .
• The facility would have a 72-hour diesel emergency power generation for all
security systems.
• Reviewed the floor plan of the facility and security fencing information.
• In regard to utilities, their first option would be to utilize public utilities from the
city; a second option would be to have on -site sewage treatment, water wells, water treatment,
etc.; they anticipate 56,000 per day water usage and sewer slightly less; and for fire
suppression, a 30,000 gallon tank would be on site.
Livingston added, they understood by using the city system, they would have demands on the
utilities and because the facility would be outside the city limits, it was the city's decision
whether to provide the utilities and they would work with the city to secure funding to mitigate
the improvements needed. However, he believed the costs suggested were debatable and would
have to be worked out and they would want to be treated fairly like other industries.
Councilman Moore noted a large discrepancy between proposed water usage for the new facility
compared to the present prison facility at Wildwood, which was definitely a concern of the city.
Livingston noted their sources for estimating the usage. Livingston was also asked where the
funds would come from for the construction.
Jeff Sinz, Kenai Peninsula Borough Finance Director -- The Borough would finance the
facility, following a model used by the Municipality of Anchorage, and would involve the sale of
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SEPTEMBER 12, 2001
PAGE 3
lease revenue bonds, financed through the long-term intergovernmental agreement between the
Borough and State. The agreement would reflect the pledge of the lease payments and would
be additionally secured by the facility itself. The facility would be built to state regulations atd
Davis/ Bacon wages and the contractual costs of parts, labor, etc. would be the same to build it
privately as it would by the state government. However, savings could occur through the
design phase of the project because of the team of companies and the borough that would be
involved in the process.
Sinz added it would not cost more to finance it through the Borough because of the use of
lease -revenue bonds and the intergovernmental agreement between the Borough and the State,
as well as the credit worthiness of the State to make the payments. There is no pledge of full
faith and credit by the borough and the investors will be purchasing the future now of revenues
from the State. There would be no legal obligation to the Borough to step in if the State fails to
provide the future flow of revenues.
Livingston was asked if there would be quads of cells and he answered yes, there would be four
for industrial art, etc. He was also asked where the new facility would be in relation to Chuda
House and he answered, Chuda House would be between the two prison facilities.
Councilwoman Porter asked if KNA had plans to move or change the location of the Chuda
House and Gilman answered, KNA would choose a new location for the facility and build a new
one.
Gary Donley, VECO/Neezer Jt. Venture -- Donley was asked if they would be hiring locally
and he answered it was always in their best interest to hire from within the community and
they would first hire from the local community. The joint venture will control the hiring,
however he estimated over 600 carpenters and other trades would be hired for construction.
The project should be completed within approximately 20 months.
Bill Kluge, Architect -- Stated he had a personal interest because he and his four employees
would obtain employment through the project. In the 20 years he has lived in the community,
he said he had not seen a project that would offer as much economic impact to the city and he
felt strongly of the potential benefits to the community with not many negative impacts.
Mike Gillilian, Cornell Industries -- Reported he works for Cornell Industries and is a
resident of Albuquerque and has been in the area since July and would like the project to go
forward and is interested in being warden of the facility. Gillilian reviewed his work experience
and qualifications, background, etc. of Cornell Industries.
• The facility will be state -of -art from ground up and operated efficiently. All their
facilities are ACA accredited or pursuing the accreditation.
• They will offer viable vocational and education programs for inmates, working
with local training programs.
• Historically, not many families of inmates move into the community where the
facilities are located.
• In studies of Cornell it has been found they have a less likeliness to have
escapes.
• Wage packages to start for guards is $35,000/year with health/dental flex
spending plans and wage increases are based on performance. Also have 401 K and stock
options.
• Their employees are urged to take an active role in the community.
• They are committed to hiring locally, will offer training, partnering with the
university and employees will be paid a stipend while going to training.
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SEPTEMBER 12, 2001
PAGE 4
• If Cornell lost its contract, another contractor could be hired or the state could
change the facility to a public facility.
Harold Dale -- Has been getting involved with the program and a point was brought to him the
doors are open for the community to work with inmates with rehabilitation efforts.
Gary Donley -- Community involvement is very important to them and they want to make a
difference to the lives of the inmates and their families. He suggested a community advisory
council be developed to help in the effort.
John Walters, Pastor/ Church of New Covenant -- Asked if there would be family counseling
or mental health benefits in the benefit package and was told yes.
Terrence Smith, Ninilchik -- Stated concern about what would happen with the inmates in
the system. He stated he felt Cornell and the state share duplicity that is not fair to the
uninformed public and believed compromise would be very useful when discussing training,
education, work programs, etc. for non-violent inmates.
Mark Schrag -- Questioned how the list of five cities was developed that were included in the
Snow report. Police Chief Morris explained he compiled the list and some of the cities were
where Cornell was a vendor for a prison and contacted others close to where Alaska prisoners
were currently housed. He added, he looked for cities that were small and that had a
significant prison population.
Unidentified Person from Audience -- Stated in her research on the borough prison, she was
assured by Mayor Bagley that even if the prison was built and was never used to house
prisoners, the state had guaranteed it would pay the bonds. Although she never found that
written, she found a May 14, 2001 letter from Commissioner Pugh to the Borough Mayor
indicating "the state of Alaska is willing to negotiate a transaction in which the state's lease
agreement with the borough provides sufficient payment to cover the capital costs of the
project. The state, however, will only pay for those beds that it uses, as is the state's current
practice with the private prison beds it uses in Arizona. It would be irresponsible to do
otherwise. It will be left to the negotiating phase of the project to determine what the
minimum, if any, number of beds should be; what price break should be afforded at different
levels of occupancy; and what the per diem rate should be for those beds used over the
minimum number."
She questioned the pay for usage information in the letter and was concerned that if no
prisoners were housed in the facility, the borough would have to pay the difference.
Jeff Sinz -- Stated the borough would finance the facility with lease revenue bonds; the lease
revenue would come from a long-term intergovernmental agreement between the borough and
state; and the intergovernmental agreement had not yet been negotiated but would be of
sufficient term and contain commitments to support the issuance of the bonds and the
construction of the facility. If the agreement does not contain sufficient provisions, the project
won't go forward because the borough would be unable to sell the bonds due to no bond buyers
who would be willing to invest in a flow of revenues that is not sufficiently supported. He
added, it was important to remember there were a number of key events needing to occur the
project would become a reality, i.e. HB 149 passage; vote on the proposition; and, negotiation of
the intergovernmental agreement.
COUNCIL WORK SESSION
SEPTEMBER 12, 2001
PAGE 5
Joe Malatesta, Sr., Clam Gulch -- Stated his support of the proposition and noted he
researched Cornell Industries and found them to be a very good corporate citizen. He also
noted the current unemployment in Kenai; the construction would offer 650 jobs paid Davis -
Bacon wages and would be an economic boost during construction; and the 211 jobs after
construction as reasons why he supported the project.
Malatesta also noted there were many myths and propaganda about the project and that a
citizen advisory group would be developed to run the facility. He requested council to consider
the good of the community when considering the project.
BREAK TAKEN: 8:50 P.M.
BACK TO ORDER: 9:06 P.M.
James Price, Nikiski -- Stated he questioned how a privately funded facility could be run
better than a public facility and how could it be feasible for a private corporation to do what it
promises to do. He added, he hoped council would review all the information it had been given
Price added he tried to get answers to his questions but was unable to and thinks there is a lot
of promotional hype and no substance. He didn't think it was good to have an extra layer
between the state and what the Constitution mandates as it would be state money going into
the hands of the private corporation who say they will do wonderful things. He added, he
believed it would be better for the state to do the wonderful things.
Elsie Hendryx, KNA Vice President -- Stated she supports the project and that KNA had put
a lot of time and effort into the project and urged council to put a resolution of support
forward. She added, one reason to have the prison in the area would be because of the
number of Alaska Native people in Arizona in the correctional system and she would like to see
them here, close to their families. Hendryx noted, she believed those inmates being closer to
family would help stop the cycle.
Unidentified Woman from Audience -- Stated she believed it was wonderful that KNA was
working toward trying to help the inmates, however she questioned why it was only now they
were wanting to do something for the Native prisoners after Wildwood had been located in
Kenai for 15 years. Hendryx stated it was because they have limited access to Wildwood and
their programs.
Tom Stroman -- Stroman added, it was not until the last few years that they (KNA) had been
able to settle the land issue which took a lot of resources and time. It was asked why KNA
would think they would be good at offering programs for inmates if they have had no
background in this type of program. Stroman answered, the outreach programs would not be
confined to the prisoners as the Native associations have many programs throughout the local
and regional corporations. They had been investigating the issues for a long time.
When asked who owns Chuda House, Stroman answered it is owned by KNA but leased to
Cook Inlet Housing Authority.
Malatesta -- Read a statement from Richard Segura, President of KNA, supporting the project.
Unidentified Man from Audience -- Stated he has lived in Kenai for over 20 years and was
concerned by the information on page 5 of Snow's report in regard to funding for upgrades to
the utility system. Public Works Manager Kornelis explained the current water quantity
COUNCIL, WORK SESSION
SEPTEMBER 12, 2001
PAGE 6
problem and the anticipated demand from a new prison; difficulties in finding other water
sources, especially at that end of town; grant application submittals and matches; current and
future capacities of the sewer treatment plant and a wastewater facility management plan now
being done which would help answer questions in regard to current and future needs, but
would not be completed for another year.
Cherie Brewer, Chamber of Commerce Vice President -- Asked why the city didn't go to the
borough for information if, as noted earlier by Mayor Williams, the borough didn't come to the
city. Williams answered, the city had been asking for information; the facility would be located
outside of the city limits; and it was not in the purview of the city to go to the borough and ask
them what they are doing.
COUNCIL COMMENTS:
Bannock -- Bannock thanked those who were in attendance for coming and Administration for
putting together the report in a short amount of time with the large amount of information
included. Bannock questioned the comments made on the last page of the report from Parks &
Recreation about the increase of high -risk families moving into the community and asked what
that Department knew that everyone else did not know.
Swarner -- Swarner asked Kornelis if the city had already received any of the grant funds for
an addition to the sewer treatment plan and Kornelis answered no. He noted, they had made
several applications, however the Legislature makes the decision to offer funding and there had
not been any indication of when funding would be approved.
Porter -- Porter echoed Bannock's comments in regard to the Parks & Recreation comments in
the report. She stated she had asked people in the grocery store about the project and found
the biggest question people were asking was what the impacts would be to the community,
school system, etc. if families of the inmates move to the community and if inmates choose to
stay in the community after release. She noted the report answered some of the questions.
She thanked the borough for their help in formulating the information.
Moore -- Noted the council was developing a resolution for consideration and added, he hoped
council would pass a resolution in support of the project contingent upon the satisfaction of
the city that utilities will be met and a socio-economic review study to be done by the borough
be reviewed by the city.
Bookey -- Noted this project had been on the forefront for a long time and agreed with
Bannock's comments. He thanked Administration for getting the information together, but was
disappointed by comments made by the Parks Department in the report. Stated he changed
his mind over the years from his original concerns about the Wildwood Facility being opened
and believes this prison project would be a good community partner, the community will
benefit 100% with having the prison, and would support the request for a resolution.
Williams -- Thanked administration for the information collected in a very short amount of
time. Williams suggested a memorandum of understanding be mentioned in the resolution
which would be between the city and borough in regard to future issues that may arise
(city/ borough, city/ state issues, etc.), i.e. road maintenance, plowing, etc. He suggested the
state take over the maintenance of the road to the prison (Borgen Avenue) . Williams also noted
the city has a grant to furnish library services to Wildwood and thought that would continue,
but was not sure whether such an arrangement would developed with Cornell. He noted his
COUNCIL WORK SESSION
SEPTEMBER 12, 2001
PAGE 7
disappointment those items were not discussed or worked into the agreement prior to now.
Williams added, in drafting the resolution, he wanted an open door to give the city the right to
step in and negotiate a variety of issues that will come up. Swarner noted that Borgen Avenue
is borough -maintained.
Bannock -- Stated he would like to see a resolution show clearly that the administration and
council is displaying a willingness to answer the issues, if the proposition prevails. Bannock
added, he was hesitant to pass a resolution of the council telling voters how to vote, however he
felt it was council's obligation to say, if the proposition prevails, the city will be a willing
partner.
Porter -- Stated she wanted a resolution brought forward and requested a recap of the
information to be included in the resolution. They were:
• Support of the resolution be contingent upon the city's satisfaction that utilities
issues are resolved satisfactorily to the city and the socio-economic review study is reviewed by
the city.
• Refer to a memorandum of understanding giving the city the right to negotiate
issues that may arise .(road maintenance, library services) .
• The borough continue maintenance of Borgen Avenue.
Moore -- Stated it wasn't his intention to tell the voters how to vote, but wanted the council to
show support of the project contingent upon the issues listed above and wording could be the
city supports the concept of a prison.
Williams -- Suggested Councilmen Moore and Bannock be assigned to a committee to develop
the resolution, but after discussion it was decided administration would draft the resolution,
according to the information received, and then circulate the resolution to council for their
review and individual comment back to administration. Williams also cautioned all the council
not to assemble for the purpose of discussing the resolution prior to the council meeting.
It was noted the resolution would be up for public hearing at the September 19, 2001 council
meeting.
ADJOURNMENT:
The work session adjourned at approximately 9:44 p.m.
Notes transcribed and prepared by:
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Carol L. Freas, City Clerk
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