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HomeMy WebLinkAbout2001-09-19 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 19, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /vwwv.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. Borough Assembly President Tim Navarre -- KPB Ordinance No. 2001- 29, Amending KPB 2.40 Regarding Planning Commission Membership and Apportionment. 2. Bill Coghill, Mikunda Cottrell & Co. -- Audit Presentation 3. Val Ischi and Lisa Gabriel, Kenai Peninsula Hockey Association -- Proposed Concession Stand/Multipurpose Facility. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1931-2001-- Increasing Estimated Revenues and Appropriations by $18,760 in the Council on Aging Title III Fund. 2. Ordinance No. 1932-2001 -- Increasing Estimated Revenues and Appropriations by $204,828 in the 2002 Street Improvement Capital Project Fund. 3. Ordinance No. 1933-2001 -- Amending KMC 14.20.230 (Home Occupations) to Allow Home Occupations in Residences in Commercial Zones. 4. 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. 5. Ordinance No. 1935-2001 -- Increasing Estimated Revenues and Appropriations by $43,727 in the Senior Citizens Borough Grant Fund. 6. Resolution No. 2001-68 -- Awarding a Contract for Professional Design Services to Kluge & Associates for the Project Entitled Kenai Library Improvements for the Total Amount of $18,612. 7. Resolution No. 2001-69 -- Awarding the Bid to Kenai Chrysler Center for a Kenai Senior Center All -Wheel -Drive Mini Van for the Total Amount of $26,357. 8. Resolution No. 2001-70 -- Support the Project Entitled Kenai Municipal Park Trail Development and Site Improvements. 9. Resolution No. 2001-71 -- Supporting the Concept of Building a Private Medium Security Prison of Up to 1,000 Beds Near Kenai on Land Owned by the Kenai Natives Association, Inc. (KNA), Subject to Certain Conditions Mitigating Potential Impacts to the City of Kenai. 10. Resolution No. 2001-72 -- Supporting the United States of America. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8. Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board C. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of September 5, 2001. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. 2. Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 3. Discussion -- Kenai Municipal Airport Terminal Space Request/Hertz Rent a Car. ITEM I• ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 19 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 7:03 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. ROT.T. CAT.T. Roll was taken by the City Clerk. Present were: Porter, Bannock, Williams, Bookey, Swarner and Moore. A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: POSTPONE: ADD AS BACK-UP INFORMATION TO: SUBSTITUTE: MOTION: B-1, Tim Navarre regarding KPB Planning Commission membership. Move to October 3, 2001 agenda. C-1 -- Resolution No. 2001-6 8 (awarding a contract to Kluge & Associates) Kluge's 8 / 20 / 01 proposal letter and breakdown of costs. H-2, Purchase Orders Exceeding $2,500 -- Adding Purchase order to Burlington Phillip Engineering. Councilwoman Swarner MOVED for approval of the agenda as amended and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED, A-4. CONSENT AGENDA There were no changes to the consent agenda. MOTION: KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 2 Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Borough Assembly President Tim Navarre -- KPB Ordinance No. 2001- 29, Amending KPB 2.40 Regarding Planning Commission Membership and Apportionment. Moved to October 3, 2001. B-2. Bill Coghill, Mikunda Cottrell & Co. -- Audit Presentation Coghill briefly reviewed reports received from Mikunda Cottrell and noted: • The results of their tests disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • Internal control over financial reporting and its operation were considered to be material weaknesses. • Recommended continuing efforts in coming into compliance with newly enacted government accounting standards. • Recommended continuing the contaminated soils remediation and complete an updated study to evaluate the cost of the potential cleanup liability. • Recommended discontinuing the 1974 Advance Refunding Debt Service Fund as all related debt had been paid off. B-3. Val Ischi and Lisa Gabriel, Kenai Peninsula Hockey Association -- Proposed Concession Stand/Multipurpose Facility. Rebecca Cronkhite -- Represented the Kenai Peninsula Hockey Association Ice Hawks and explained they and the Kenai High School Hockey Booster Club were requesting the Council's endorsement of their efforts to construct a concession stand to serve the multipurpose facility. She noted the construction of the stand would be at no cost to the City and done through donations from area businesses. She also explained the stand would be available to other users of the facility for a small fee paid to the city to cover utility costs. Cronkhite added, they hoped to have the stand open when the rink opens. MOTION: Councilwoman Porter MOVED to allow the Ice Hawks to go ahead with their plans to construct a concession stand and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 3 ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1931-2001-- Increasing Estimated Revenues and Appropriations by $18,760 in the Council on Aging Title III Fund. MOTION: Councilwoman Porter MOVED for passage of Ordinance No. 1931-2001 and Councilwoman Swarner SECONDED the motion. There were no public comments. Porter noted, this was the first time there had been an increase in this budget for a very long time. VOTE: Porter Yes Bannock Yes Williams Yes Booke Yes Swarner Yes Moore Yes � MOTION PASSED UNANIMOUSLY. C-2. Ordinance No. 1932-2001 -- Increasing Estimated Revenues and Appropriations by $204,828 in the 2002 Street Improvement Capital Project Fund. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1932-2001 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: Porter Yes Bannock Yes Williams Yes Bookey Yes Swarner Yes Moore Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1933-2001 -- Amending KMC 14.20.230 (Home Occupations) to Allow Home Occupations in Residences in Commercial Zones. KENAI CITY COUNCIL MEETING MINUTES 1 SEPTEMBER 19, 2001 PAGE 4 MOTION: Councilman Bannock MOVED for adoption of Ordinance No. 1933-2001 and Councilman Moore SECONDED the motion. There were no public comments. Councilman Bannock explained this portion of the code was recently amended and subsequently a problem arose where a person wanted to have a home occupation in a residence situated in a commercial zone. The new amendment will be consistent with the intent of the code to allow home occupations in residences. He requested council's support of the amendment. VOTE: Porter Yes Bannock Yes Williams Yes Bookey Yes Swarner Yes Moore Yes MOTION PASSED UNANIMOUSLY. C-4. 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. MOTION: Councilman Moore MOVED for adoption of Ordinance No. 1934-2001 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Moore stated an expansion had been needed for a long time. He added, the Friends of the Library had committed $50,000 for the purchase of furnishings for the expansion and improvements to the library. Since council stated they would consider funding an expansion, he urged council's support of the ordinance in order to follow through and see what comes from the plans and drawings. Councilman Bookey stated he understood the costs of the proposed project would not come from the General Fund and he didn't want to anticipate the costs coming from the General Fund in the future. He added, he could support the $20,000 for seed money, but felt the city was at the point to not draw off the General Fund for projects. Bookey suggested an amendment that the money wouldn't be taken from the General Fund, he would support the ordinance. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE S MOTION TO AMEND: Councilman Bookey MOVED to amend the ordinance by adding wording to disallow use of the General Funds for the construction of the project if it is designed with general funds. Councilman Bannock SECONDED the motion. Discussion followed regarding the amendment. Moore stated there had been some discussion of applying for matching grants that may be available and the amendment, if passed, could preclude the acquisition of matching grants from the General mind. Bannock stated he supported the amendment because a $1 million draw down from the General Fund (for the expansion) would be detrimental to the Fund. Swarner stated she would not support the amendment because it could bind future councils and that she felt each project should be considered individually. VOTE ON AMENDMENT: Porter No Bannock Yes Williams No Bookey Yes Swarner No Moore No MOTION FAILED. VOTE ON MAIN MOTION: Porter Yes Bannock No Williams Yes Bookey No Swarner Yes Moore Yes MOTION PASSED, C-5. Ordinance No. 1935-2001 -- Increasing Estimated Revenues and Appropriations by $43,727 in the Senior Citizens Borough Grant Fund. MOTION: Councilwoman Porter MOVED for adoption of Ordinance No. 1935-2001 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 6 Porter Yes Bannock Yes Williams Yes Bookey Yes Swarner Yes Moore Yes MOTION PASSED UNANIMOUSLY. C-6., Resolution No. 2001-68 -- Awarding a Contract for Professional Design Services to Kluge & Associates for the Project Entitled Kenai Library Improvements for the Total Amount of $18,612. MOTION: Councilman Moore MOVED for approval of Resolution No. 2001-68 and requested UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Bookey objected to unanimous consent. VOTE: Porter Yes Bannock Yes Williams Yes Bookey No Swarner Yes Moore Yes ::J MOTION PASSED. C-7. Resolution No. 2001-69 -- Awarding the Bid to Kenai Chrysler Center for a Kenai Senior Center All -Wheel -Drive Mini Van for the Total Amount of $26,357. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2001-69 and requested UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Bannock noted he would abstain from voting due to his relationship with Kenai Chrysler Center and Mayor Williams allowed the abstention. VOTE: Porter Yes Bannock Abstain Williams Yes Booke Yes Swarner Yes Moore Yes KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 7 MOTION PASSED UNANIMOUSLY. C-8. Resolution No. 2001-70 -- Support the Project Entitled Kenai Municipal Park Trail Development and Site Improvements. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2001-70 and Councilwoman Swarner SECONDED the motion. There were no public comments. Swarner stated her support of the resolution and noted the city's match of human labor hours or materials would be addressed at budget time. VOTE: Porter Yes Bannock Yes Williams Yes Bookey Yes Swarner Yes Moore Yes ::::J MOTION PASSED UNANIMOUSLY, BREAK TAKEN: 7:41 P.M. BACK TO ORDER: 8:02 P.M. C-9. Resolution No. 2001-71 -- Supporting the Concept of Building a Private Medium Security Prison of Up to 1,000 Beds Near Kenai on Land Owned by the Kenai Natives Association, Inc. (KNA), Subject to Certain Conditions Mitigating Potential Impacts to the City of Kenai. Williams explained council would allow everyone in the audience who wanted to speak to the resolution, three minutes in which to make their remarks. MOTION: Councilman Bannock MOVED for approval of Resolution No. 2001-71 and Councilman Bookey SECONDED the motion. James Zirul -- Local business owner in the city, however not a city resident. Stated his opposition to the resolution because he felt it was the responsibility of the Legislature and State, in cooperation with the Borough, to care for prisoners and if the proposition passes, there was no guarantee the city would not have to cover the costs of upgrades to water/ sewer utilities to accommodate the prison facility if the prison is moved elsewhere. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 8 Gerald Brookman -- Kenai resident since 1978. Agreed with Zirul and added, there were too many questions unanswered and when a private company into the chain of command, no matter how strictly the contract might be written, it removes accountability to the state. Brookman added, he believed the state should be running the prison if the state is going to arrest, prosecute, etc. Additionally, if Cornell Company gets the benefits, the residents of the borough take the risks. He requested council vote no to the resolution or table it until after the October 2 vote because he felt if the council passed the resolution, in voters' minds, it would be saying the council endorses the project. Robert Peterkin -- President of the Kenai Chamber of Commerce. Reported the Chamber Board of Directors developed a community study on the issue and through their findings, passed a resolution supporting the proposition. Peterkin distributed a copy of the resolution to council. James Price, Box 7043, Nikiski -- Urged council to postpone action on the resolution until after the October 2 vote and if council decided to vote on the resolution, he urged them to vote against the project. Price added, he didn't believe the facts had been stated, i.e. wages, being a good neighbor, and that if there was a feasibility study the people would reject it, etc. Additionally, Price stated council's passing the resolution would influence the voters. Bannock referred to the contingencies included in the resolution and asked Price if he didn't agree that the council would want those contingencies addressed. Williams stated he felt the line of questioning was inappropriate, however council and Price had no objections to it. Price stated he agreed the council should have the contingencies addressed, however he noted his concern was that passing the resolution would lead the voters to believe it is a good project and the council did not have the facts to support that it is a good project. Jack Brown, Nikiski -- Noted he was speaking as an individual, but had served as Assemblyman for a portion of Kenai for five years. Stated his support of the project was due to the volatility of the price of oil, because of the need for sources of stable revenue, the project would bring jobs to the area, and bring kids back to the area. Iola K. Banks, P.O. Box 41, Kenai -- Stated her opposition to the resolution and the prison project noting her concern for the safety of the area children. Mark Osterman, P.O. Box 1027, Kasilof -- Stated he was a candidate for the Borough Assembly. Osterman stated his opposition to the resolution and project, noting it was not a function of a private corporation to house prisoners. He also noted his concerns of Cornell's business performance (suits, fines, etc.) . Osterman added, he believed it is the function of the government to house prisoners, not private industry and requested council to postpone action until after the October 2 election. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 9 Gary Hinkle, Box 322, Soldotna (Chinulna Point Subdivision) -- Stated his support of the resolution, noting the water/ sewer utility being used by more would lower the rate of the utility for everyone and a private prison would run more efficiently and make a profit because it has "hands-on" management. He added, if private management fails in five years, they can be replaced. Williams Phillips, Kenai -- Urged council's non-support of the resolution as he believed the borough had acted in haste; the proposition does not say there has to be a feasibility study; the borough would not have to honor the city's resolution; and the project could cost all the citizens of the borough if the issue ends in litigation. Royce Rock, representing approximately 75 Kenai Peninsula members of the Carpenters Union (Anchorage) -- Supported the resolution. He noted, they were looking forward to the jobs and the 20 months of work for his union members. He added, the jobs would be good pay, the project would be good for the economy, and would be good for the state and everyone included. Linda Reynolds, P.O. Box 763, Soldotna -- Stated her support of the project, noting private management of the prison would enable accountability, will help in rehabilitation of the prisoners by bringing them back to Alaska. Debbie Sonberg, 410 Cinderella Street, Kenai -- Stated she greatly appreciated the conditions included in the resolution and hoped the borough would take them to heart; was concerned there could be a lawsuit and if so, it would affect all the borough and city; believes there is a financial risk, i.e. who pays the revenue bonds if the facility fails; and concerned halfway houses would be introduced to the area if the prison is built. Sonberg stated she believed it appropriate to postpone action until after the October 2 election. Barbara Huff, Teamsters Union (Anchorage) -- Stated her support of the project noting there would be no additional cost to taxpayers within the community; within five years, if the contractor is not successful, the Department of Corrections could determine to replace the contractor or make it a public sector prison; there would be $25 million input into the economy; it would create 200-300 construction jobs for two years; there would be 200 year-round jobs after completion of the facility; and training would be in accordance of requirements of the Department of Corrections. Huff urged support of the resolution. Blaine Gilman, 116 Haida Street, Kenai. Stated he represents the Kenai Natives Association, Inc. Believes the project would have a positive effect to area schools by increasing the school population which would allow for additional teachers and increasing the school population. He noted the resolution was about economic development, jobs, and bringing prison worker families to the community. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 10 Kathy Moore, 1006 Inlet Woods Drive, Kenai -- Stated she lives next to the proposed site. Moore noted, she believed the project would bring more jobs to the community, which would bring more people to the area and keep the schools growing. She stated her support of the resolution and asked it not be tabled and added, the council was elected to help guide the citizens of Kenai. Brad Wilson -- Union representative for the Alaska State Troopers and Correctional Officers. Stated he believed the council's contingencies included in the resolution were good, but was concerned the headlines would be that the council supported the project. He noted the special recall election held in Delta Junction could have been avoided if a financial feasibility study had been done before the vote. Wilson added, two years would not be too long to wait to have a feasibility study done. Joe Malatesta, Sr., Clam Gulch -- Stated his support of the resolution and noted his main reason for supporting the resolution was the jobs that would be brought to the Kenai area. He added, no business does a feasibility study before approval as it would be a waste of money. If the voters say yes, then it would be appropriate to move into a feasibility study. Randy Daly -- Stated he lives and owns a business in Kenai. Daly stated there were no guarantees and the council had to do their best and be willing to take a step forward. He added, the project would be good as it would bring jobs. Grace Merkes -- Stated she would be voting no on the proposition. However, she believed it was a little late for the city to support a resolution at this time and a better time would have been when the borough first passed a resolution in support of it. She had asked for a feasibility study and requested it be included in the question on the ballot. In speaking with the borough attorney she was told a study could still be done even if there is a no vote. If the feasibility study is found to be good, she believed the assembly and council would approve it. Merkes added, she believed the voters were saying no to the proposition because they don't have information the study could give them. She agreed it was time for the voters to make the decision and also suggested council postpone action on the resolution until after the October 2 election. Merkes also stated she believed the voters will see the city's actions, if the resolution is passed, as supporting the prison and they won't read the contingencies on the resolution. Bill Popp -- Borough Assemblyman and lives in VIP Subdivision. Explained there were steps the borough would have to accomplish if the vote is yes, i.e. completion and approval of a feasibility study, negotiate an agreement with the State of Alaska based on the feasibility study input, and make sure all questions are adequately addressed. The borough is in first place to develop the project and support of the council was needed. He requested council to work with the borough with a guarded point of view. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 11 Diana Zirul, 220 Spur View Drive, Kenai -- Stated she was born in the Kenai area and she had thought long and hard about the project, she served in a lot of different capacities in the community and promoted economic development. She appreciated the concerns listed in the resolution by council. Zirul suggested tabling the issue until after the vote on October 2 as she didn't think the council should be used as a pawn to influence the voters; noted she believed it was late for a resolution but understood the city's concerns; and investigated the concept several years ago while she served as the President of the KNA. Zirul stated she believed there were lots of unanswered questions and urged council to table action until after the October 2 vote. Mike Gilliland, Cornell Companies Representative, Albuquerque, NM -- Stated he and his company were committed to the project, his job is to get out accurate information about his company and share his personal experience in the corrections area. He clarified that Cornell Companies had no involvement in the Delta Junction lawsuit. He noted Cornell had signed an agreement with the borough that they would not sue the borough if the vote fails. Gilliland added, public safety is their first concern and their second is the secure, safe and humane institutionalizing and care for the inmates. Bill Kluge, Kenai -- Stated he is participating in the project, but has friends on both sides of the discussion. Kluge stated a lot of the concerns stated are still whether it should be a private or public prison. He added, whether it would be private or public, he hoped the facility would be run in an efficient and business like manner. Kluge stated his support of the resolution because it would be a big economic development for the city. Michael Carpenter, Cetacea Lane, Kenai. -- Stated he believed the private versus public prison question came about because the state was not running the prison systems economically. Carpenter stated his support of the resolution. Elsie Hendryx, 618 Fir, Kenai. -- Hendryx urged council to support the resolution. She noted, KNA had investigated a lot of companies and believed Cornell Companies would be the best to work with on the project. She added, they also believed the project would have the economic boost needed for the community and Kenai would be a safe place for families to reside. She urged council's support. Susan Wells, Cetacea Lane, Kenai -- Is a member of the KNA Board and noted they had investigated the prison industry since 1994 and had been working with the borough and Cornell. She added, they have a sound plan and they had a lot of confidence and believed it is one of the best projects for sustainable jobs for the area,: construction, prison industry and others. l KENAI CITY COUNCIL MEETING MINUTES 1 SEPTEMBER 19, 2001 PAGE 12 Wells urged support of the resolution and added, community members look to the council for assurance. She added, council's support of the resolution would not be telling people how to vote, but that that the city will work with the borough, KNA and Cornell. Denise O'Connell, 607 Maple Drive, Kenai -- Stated she is a member of KNA and is a guard at Wildwood Correctional Facility. O'Connell noted her opposition to the private prison and stated she didn't want her children to work there and didn't want to see the inmates brought here. Jerry Ward, Nikiski-- Stated his support of the resolution, noting a private prison can stop repeat offenders through their programs and public employees are afraid of competition. He stated he wanted to see the construction jobs, the post -construction jobs, and requested consideration to give a chance to KNA to put programs in the facility to help rehabilitate the inmates. Discussion followed in which Williams asked if the state would be paying the bond or would the cost of the bond come from the $25 million that had been stated would come to the community in economic development. Ward answered the debt payment would come out of the per -bed cost (from the $25 million) . He added, whether the vote was yes or no, the state would be paying a private prison in Alaska or Arizona and the Legislature would continue to fund a private prison because it will be cheaper. Williams asked Ward who would be responsible for the cost to expand the city's water and sewer utilities and facilities. Ward stated that when the legislation was passed, he asked Assemblyman Navarre to discuss an amount with the city in order to write the amount into the legislation. It was not done. Tim Navarre, Borough Assemblyman, Kenai -- Stated his support of the resolution and added, if the proposition is passed, he would work diligently representing the city to insure the contingencies included in the resolution would be honored and done, and the assembly would work with Kenai to get the information out. Navarre added, the project was too big an opportunity to pass up as it would be a major project for the borough and an economic opportunity for everybody. Dee Hubbard, P.O. Box 88, Sterling. -- Stated her concern the voters' rights were waived in December in regard to the bonding and if the Assembly had done its homework, there wouldn't be this discussion now. She added, the citizens of the borough were being asked to trust the Assembly that they write a contract to protect its citizens. There is no information of what a private prison will or will not do and it is not known what will be in the contract and she believed that was a key issue. The public hearing was closed and comments were heard from council. , KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 13 Bannock questioned the feasibility study contingency included in the resolution and requested an explanation of the request for the approval of the feasibility study by the council meant. Williams explained it would allow the council to review it and agree with it or not. Moore noted, that if council disapproved of the findings, it could pull out. Williams added, that if the city would pull out, it wouldn't stop the prison from being built. Moore stated, if council did not pass the resolution, he believed it would be a detriment to the overall proposition. He wanted to pass the resolution so the project could move forward. He requested the contingencies would be included in the headlines. He added, there were many businesses in Kenai closing down and a stable industry would be important to the community. Moore added, he was troubled the resolution could influence voters, but he believed it important the council take a stand. Porter stated she would support the resolution as she thought it was council's obligation to protect the interests of the citizens no matter how they choose to vote. If the vote on the proposition is yes, it would indicate the city is willing to protect the interests and if the vote is no, they would know council is still there to support them. Porter also noted that during the economic forum earlier in the year, there had been many comments that economic development was the highest priority. Swarner stated, philosophically she couldn't support the resolution because she believed their support would be interpreted by the voters that council supports the proposition and, understanding the timeframe and reasons why, because there is no feasibility study to justify council's supporting the project. Bookey stated he echoed all the thoughts mentioned except Swarner's and he would support the resolution. He added, when the Wildwood prison was being discussed he was opposed to it and found he was wrong. Bookey stated he believed the project would be an economic benefit to Kenai. Williams stated he would not support the resolution as it was not a city project; council shouldn't have been put in the position in regard to the project this late in the game; there are too many unanswered questions; the voters had been given the opportunity to make the decision; and to have the council lend credibility to the project is wrong. Bannock stated there were mistruths in information being sent out to voters from one of the "vote no" campaigns. He stated a no vote on the resolution would mean one didn't care what voters do on October 2 with Proposition 1; if the proposition passes, one didn't want to be involved in the project; vote no and it would mean one didn't want anything to do with partnering with the borough for infrastructure and services; vote no and it would say, we don't know and we don't care. Voting yes would say you KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 14 are trusting the voters and if. the proposition passes, the city and council is ready, willing, able and the door is open to do business. Swarner responded to Gilman's comments regarding families of workers moving to Kenai, noting when the city built the flight service station they were told 90 families would move into the city and research showed that many purchased homes in the borough or in Soldotna. In regard to Bannock's comments, Swarner stated she was no on the resolution but not because of the reasons he stated. She stated she was willing to work with the borough and supported economic development, but did not think the council should be voting on the issue. Moore called for the question. VOTE: Porter Yes Bannock Yes Williams No Bookey Yes Swarner No Moore Yes MOTION PASSED, C-10. Resolution No. 2001-72 -- Supporting the United States of America. Williams explained the resolution was written in response to the September 11, 2001 terrorist attacks through the hijacking and destroying of four civilian aircraft by crashing them into the World Trade Center towers, the Pentagon, and a field in Pennsylvania. He read the last paragraph of the resolution: NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, and representing the men, women and children of the Kenai community, that we support the President of the United States and our national security team in protecting and defending the United States of America against cowardly and deadly terrorist actions. "A single twig breaks, but the bundle of twigs is strong." Tecumseh, Shawnee Nation. We are strong. We are One. We will survive. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-72 and requested UNANIMOUS CONSENT on behalf of the Council present and former Council Member Frazer. Councilwoman Porter SECONDED the motion. l KENAI CITY COUNCIL MEETING MINUTES 1 SEPTEMBER 19, 2001 PAGE 15 Jack Brown -- Stated he hoped everyone's thoughts and prayers would be with the American men and women who would be going into battle. Diana Zirul -- Commended the council for the resolution and added, she thought the last week had been a trial for everyone. She added, knowing how difficult it was for everyone to speak to the previous resolution, it was a reminder of what the United States government offered: the democratic process, everyone has a vote, and the citizens needed to get out and voice it. Councilwoman Swarner requested administration to develop appropriate wording for a plaque and planting to be placed at Memorial Park on behalf of the council and be paid for from the Legislative budget. VOTE: There were no objections. SO ORDERED, ITEM D: COMMISSION/ COMMITTEE REPORTS D-1. Council on Aging -- Porter reported a meeting was held on September 6 at which time a new policy was determined to allow other than seniors to ride on the senior bus/van for extra curricular activities if space is available. Also, a fee schedule would be developed for non -seniors who want to participate in line dancing. D-2. Airport Commission -- Swarner reported the following: • A meeting was held on September 13. • A special use permit was approved for Hertz Rent -a -Car to use terminal space previously rented by Alaska's Best Travel. • Discussed the simultaneous advertising of the restaurant and gift shop areas since the current restaurant lessee had submitted a notice to quit. • Discussed the initial updating of the airport regulations which would be forwarded to council for final review in the future. • Discussed the condition of some of the equipment in the restaurant which is owned by the city and may need replacing. • A group would be meeting to consider art for the airport on September 20. Airport Manager Cronkhite also reported: • Administration was working on more information in regard to the wording of a request for proposal for the restaurant and gift shop. The draft form would be before council for review at the October 3 meeting • Seven slips had been leased at the float plane basin. j• The faulty tiles were being replaced in the terminal. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 16 When asked about the Mt. View quilt being hung at the airport, Clerk Freas reported a case was being fabricated to hold the quilt and when it was ready to be hung, the school children would be informed. D-3. Harbor Commission -- Councilman Bookey reported a meeting was held on September 10 at which the Commission discussed the following: • The permit application had been submitted for the coastal trail and several letters of concern had been received. • They recommended changing the 50' easement referred to in Resolution No. 2001-63 to 100' (conservation easement) for future water/sewer needs. • Restrooms were being renovated at the dock. • Revenue of $30,000 was received from the dip net fishery. • R&,J Seafoods were storing boats and installed fence on the property they are renting from the city. Williams referred to the application of Kathleen Graves submitted for appointment to the Harbor Commission. He noted, the acquisition of funding and permits would be a formidable job for the city and he suggested a team of Commission, administration, council be formed to be involved in the lobbying effort that will be required. Bookey recommended the appointment of Kathleen Graves to the Harbor Commission. There were no objections. D-4. Library Commission -- Councilman Moore reported the minutes of their September meeting were included in the packet. D-5. Parks & Recreation Commission -- Porter reported a meeting was held on September 6 at which time the Commission discussed the following: • Placing of memorial rocks at Memorial Park and requested administration to formulate language and policy to this regard for their review at their next meeting. • Recommended raising the ice fee at the multipurpose facility to $95.00/hour. • Requested a sign be placed at the multipurpose facility. • Recommended another grand opening upon completion of the refrigeration of the multipurpose facility. • Hydro -axing in the Bernie Huss Park was being investigated and the Commission requested the quote also include work to be done in Municipal Park. • The skateboard park was open and the users and their parents were very appreciative. A brief discussion took place regarding the skateboard park. Swarner requested the issue of liability and the impact on police calls, etc. be reviewed after a year. Members of council also suggested the hours of the park be expanded and it was explained the Commission had considered it closely and wanted to begin with the current hours and l KENAI CITY COUNCIL MEETING MINUTES 1 SEPTEMBER 19, 2001 PAGE 17 reconsider at a later time. It was also suggested the grassy area be removed and the park area be expanded in the future. Moore stated his objection to raising the price for ice and asked to keep it at $85 for the current year and then reevaluate in the spring. It was noted, the raise in cost was suggested in order to aid in covering utility costs and that other rates in the area were also reviewed. MOTION: Councilman Moore MOVED to maintain the ice rental fee at $85-00 an hour for the 2001 / 2002 year and Councilman Bookey SECONDED the motion. BY SHOW OF HANDS, THE MOTION PASSED (4 to 2). D-6. Planning & Zoning Commission -- Bannock reported the minutes of the meeting were included in the packet and reviewed them with council, noting the encroachment permit requested was approved. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the minutes of the September 11 meeting were included in the packet. Director Frates reported significant discussion took place in regard to banners for placement along Willow and Airport Way. He noted, the Art Guild would no longer be supplying banners for the city and the Committee was investigating purchasing them from another source. D-7b. Kenai Convention & Visitors Bureau Board -- Airport Manager Cronkhite reported the Board would be holding their election in the near future and anyone interested in serving on the Board should contact the KCVB. D-7c. Alaska Municipal League Report -- Williams noted the AML Conference would be held in Anchorage and the National League of Cities in Atlanta, GA. ITEM E: MINUTES E-1. Regular Meeting of September 5, 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 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19 2001 PAGE 18 MOTION: Councilwoman Swarner MOVED to pay the bills and Councilman Moore SECONDED the motion. There were no obj ections. SO ORDERED, H-2, Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED for approval of the purchase orders exceeding $2,500, using H-2 Substitute. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-3. Discussion -- Kenai Municipal Airport Terminal Space Request/ Hertz Rent a Car. Swarner reported the Airport Commission recommended the approval of the request for space by Hertz. MOTION: Councilwoman Swarner MOVED to lease terminal office space to Hertz Rent A Car as proposed and Councilman Bookey SECONDED the motion. Discussion followed regarding the length of lease and rate for the space. It was noted • The space would be rented through a Special Use Permit that would be reviewed after one year. • Renting the space would not prevent renting space to another airline. • The lease rate would be $1.65/square foot. • Non -airport businesses could request rental of space if they fit into the "exclusive use" requirements. Councilman Moore reported Hertz Rent A Car was a client of his, but he would vote to support the request. VOTE: Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, ITEM I: ADMINISTRATION REPORTS Mayor -- Mayor Williams reported the following: � • He met with a representative of NASA at the Challenger Center. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 19 • Suggested a joint sign for the Challenger Center and the Multipurpose Facility be fabricated. • His team for the Mayor's Golf Tournament received third place and $3) 100 was raised for Habitat for Humanity. Kenai's Mayor would be hosting the event next year. • An open house for the new Public Health Clinic would be held on October 19, 2001. • A meeting would be held on October 16 at the Challenger Center with representatives of the USDA and their statewide management team. USDA could be a funding source for the coastal trail. I-2. City Manager -- City Manager Snow reported the following: • She forwarded council's comments and suggestions regarding the development of the boat launch at the bridge in conjunction with the development of the parking area turnoff instead of the purchase of the Horseshoe End at River Bend 10-acre property individually to five resource agencies, staff and reviewers as well as DOT right-of-way agent. None were accepting of the idea. However, the issue would also be discussed at the Kenai River Special Management Area board meeting scheduled for September 20 where she would be able to discuss the matter with all of them at one time. Williams noted that he and Councilwoman Swarner discussed the matter with Representative Lancaster. He believes the city should continue to explore possibilities and if council has to fall back to the Wildrose properties, an artist's concept should be acquired and available for the council and public to better indicate what is being proposed. Snow added, the agencies indicated there was virtually no potential for constructing a boat launch ramp in that area because there is less likelihood of permitting that area than there would be for the ten -acre parcel because of the wetlands issue, i.e. estuary protection, the amount of fill needing to be used, etc. Bookey asked how they planned to develop the walkway to Birch Island without disturbing the wetlands and Snow explained the Birch Island development would include kiosks and interpretative trails which would be of less impact. This project is still being planned and had been supported by the KRSMA Board and agencies. The boat launch is not thought to be a compatible use as it would displace current users of that area and then future users for the interpretative sites, etc. after Birch Island is developed. Bookey stated his concern of relinquishing the conservation easement because when it is relinquished, it would be gone forever. He noted, he would want to review the issue again when the conservation easement issue comes back to council as it is a valuable bargaining chip. He added, he didn't want to lose the ability to negotiate. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 20 • She discussed the appraisal for the property to be used as the site for the detention facility with Derry 8s Associates. They discussed why the PRISM property was not used as a comparable and reasons were stated as: PRISM has low exposure; the property wasn't be sold to a third party; the lack of utilities; and the two acres of wetlands on the property. The appraiser offered to come and speak to council. Discussion followed and council considered purchasing a second appraisal. It was noted the improvement planned for the property would still add enough value to the property to compensate for the appraised value. MOTION: Councilman Moore MOVED to purchase another appraisal and Councilwoman Porter SECONDED the motion. A show of hands showed no support of the motion. MOTION FAILED. • Received notification from Alaska's Best Travel that the lessee no longer wanted to put the extension of lease request, discussed at the September 5 meeting, on hold due to the recent terrorist attack on September 11, 2001. Council had no objections. I-3. Attorney -- Attorney Graves reported the allowed time for RPM's to answer the city complaint had expired and he was preparing the paperwork to apply for a default judgment. I-4. City Clerk -- Clerk Freas noted the following: • The second regularly scheduled council meeting of November would fall on Thanksgiving Eve. She asked if council wanted to change the meeting date. No change was made. • Referred to the application for appointment to the Personnel Arbitration Board received from Len Janson and included in the packet. Council had no objections to the appointment of Mr. Janson. I-5. Finance Director -- No report. I-6. Public Works Managers -- No report. I-7. Airport Manager -- Airport Manager Cronkhite reported impacts to the airport, due to the terrorist attacks, were: • No vehicles were allowed to be parked in front of the terminal building. • ERA was randomly screening people and bags. • The screening point would probably be set to be more sensitive because the airport is a diversionary airport. • Grant funding would be severely impacted and focus will mainly be on safety precautions. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 21 • Safety measures, etc. will become more restrictive. ITEM J: DISCUSSION J-1. Citizens Jay Barrett, Peninsula Clarion -- Barrett noted there had been several suggestions of how the headlines could read in regard to the lengthy discussion on the prison resolution. He noted, he suggests headlines, but what is used is often determined by the size of the store, etc. J-2. Council -- Bookey -- • Asked when the street lights would be turned on on Forest Drive and was told they had been turned on earlier in the day and would stay on 24 hours a day for five days. • Asked when the road work was to be completed on the Spur Highway and was told possibly the middle of October. Swarner -- •Noted the pavement doesn't meet at the corner of the Spur Highway and Forest Drive. • Concerned comments stated on the radio that five years ago the City of Kenai was interested in developing a convention center with the City of Soldotna. • Received a copy of a senior house and assisted living study for the Kenai Peninsula from AHFC and offered it for other council members to review. Williams suggested a task force be formed to discuss the possibility of developing an assisted living facility and/or senior housing and Swarner suggested consideration needed to be given to whether the city would want to be involved in low income housing for seniors as well. Moore -- No comments. Porter -- Stated her concern that many of the public attending this night's meeting had to stand in the hallway due to the lack of seating in the Chambers. She suggested additional seating be added to the chambers and requested administration investigate the possibility. Clerk Freas noted the Fire Marshall's Certificate allowed 60 in the room. Bannock -- No comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 12:05 a.m., September 20, 2001. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 19, 2001 PAGE 22 Minutes transcribed and prepared by: Carol L. Freas, City Clerk