HomeMy WebLinkAbout2001-10-17 Council MinutesAGENDA
KENAI CITY COUNCIL -REGULAR MEETING
OCTOBER 17, 2001
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: Z Z www. ci. kenai. ak. u s
FOUNCIL STAFF MEETING: 6:00 P.M., Council Chambers
ITEM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3, CERTIFICATION OF ELECTION
4. OATHS OF OFFICE
5, ELECTION OF VICE MAYOR
6. Agenda Approval
7. 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. Mary Warrington/Brain Injury Support Group -- Skateboard Park
2. Borough Assembly President Tim Navarre -- KPB Ordinance No. 2001-
29, Amending KPB 2.40 Regarding Planning Commission Membership
and Apportionment.
ITEM C: PUBLIC HEARINGS
1. Ordinance No. 1936-2001-- Finding that Certain City -Owned Airport
Land, Identified as 'Tract A, Baron Park Kenai Youth Facility Addition,
Located at the Marathon Road and I-IEA Access Road Intersection in
Kenai, Is Not Required for a City Public Purpose But Is Needed for a
Public Purpose for the State of Alaska.
2. Ordinance No. 1937-2001 -- Increasing Estimated Revenues and
Appropriations in the General Fund Land Department by $325,000 for
Purchase of the Youth Detention Facility Property From the Airport Land
System Special Revenue Fund.
-1-
3. Ordinance No. 1938-2001 -- Amendingthe Land Use Table and
Footnotes at KMC 14.22.010 to Provide Residential Uses in the Central
Commercial Zones and to Allow Dormitories and Boarding Houses in
Commercial Zones.
ITEM D: COMMISSION/ COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks 8v Recreation Commission
6. Planning & Zoning Commission
7. Miscellaneous Commissions and Committees
a. Beautification Committee
b. Kenai Convention 8s Visitors Bureau Board
C. Alaska Municipal League Report
1. *Regular Meeting of October 3, 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. 1939-2001- Finding Certain City -Owned Foreclosed
Land, Identified as Lot 2, Block 1, Kaknu Korners, is Needed for a Public
Purpose.
4. *Ordinance No. 1940-2001-- Increasing Estimated Revenues &
Appropriations by $45,500 in the General Fund for Ice Maintenance.
5. *Ordinance No. 1941-2001 -- Increasing Estimated Revenue and
Appropriations by $12,000 in the Water and Sewer Fund for a Water
Rate Study.
6. Discussion -- Assignments of Council Liaisons
7. Discussion -- Personal Property Tax Exemption on Airplanes
-2-
ITEM I:
1.
2.
3.
tl .
5.
6.
7.
ITEM J
ADMINISTRATION REPORTS
Mayor
City Manager
Attorney
City Clerk
Finance Director
Public Works Managers
Airport Manager
DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION - Matters, the immediate knowledge of which would clearly
have an adverse effect upon the finances of the City of Kenai.
ITEM K: ADJOURNMENT
� -3-
KENAI CITY COUNCIL - REGULAR MEETING
OCTOBER 1 ? 2001
?:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: / Zwww.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. ROLL CALL
Roll was taken by the City Clerk. Present were: Williams, Bookey, Swarner, Moore,
Porter and Bannock.
A-3. CERTIFICATION OF ELECTION
Clerk Freas read the following into the record:
CITY OF KENAI
REGULAR ELECTION OF OCTOBER 2, 2001
WE, the members of the Kenai City Council, do hereby certify the results of a canvass
of the ballots for the Regular Election of October 2, 2001.
MAYOR/THREE-YEAR SEAT:
CANDIDATE
VOTES
RECEIVED
Bannock, Duane
593
Williams, John J.
11346
Write -Ins
10
COUNCIL MEMBER/TWO-YEAR SEAT:
CANDIDATE
VOTES
RECEIVED
Jackman, Amy
541
Eldridge, Barry
452
Daly., Rand
367
Osborne, John "Ozzie"
392
Write -Ins
14
l KENAI CITY COUNCIL MEETING
1 OCTOBER 17, 2001
PAGE 2
CITY COUNCIL / THREE-YEAR SEATS:
CANDIDATE
VOTES
RECEIVED
Moore, Joe
1,162
Booke , James C., III
11087
write -Ins
73
ABSENTEE/ QUESTIONED BALLOTS CAST (in -
person, personal representative, by-mail,questioned)
256
ABSENTEE/ QUESTIONED BALLOTS COUNTED
192
BALLOTS CAST/ REGULAR VOTERS
1, 79 5
TOTAL BALLOTS CAST / TOTAL VOTER TURN OUT
22051
NUMBER OF KENAI REGISTERED VOTERS
41762
VOTER TURN OUT
4 3 %
MOTION:
Councilwoman Swarner MOVED to certify the election of October 2, 2001 and
requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion.
There were no objections. SO ORDERED,
A-4. OATHS OF OFFICE
Oaths of office were taken by John J. Williams for the office of Mayor, Amy Jackman
(two-year term), Jim Bookey (three-year term), and Joe Moore (three-year term) for
council.
A-5. ELECTION OF VICE MAYOR
The floor was opened for nominations for Vice Mayor.
MOTION:
Councilman Moore MOVED to nominate Linda Swarner for Vice Mayor and
Councilman Bookey SECONDED the motion.
There were no further nominations and the nominations were closed.
VOTE:
There were no objections. SO ORDERED.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 3
BREAK TAKEN: 7:15 P.M.
BACK TO ORDER: 7:34 P.M.
A-6., AGENDA APPROVAL
Mayor Williams requested the following changes to the agenda:
ADDITIONAL INFO
FOR: B-2, Tim Navarre -- Borough Planning Commission
Membership
•(T.Navarre 8/23/01 memo
• 8/ 13/O1 KPB Planning Commission minutes
• 9/25/01 City of Seward letter regarding membership
• 9/4/01 KPB Assembly Meeting Summary
• 10/4/01 Kachemak Bay Advisory Planning
Commission meeting minutes
SUBSTITUTE: H-2, Purchase Orders Exceeding $2,500 -- Addition of
purchase order to Air Tek.
MOTION.
Councilwoman Swarner MOVED for approval of the agenda as amended and requested
UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no
objections. SO ORDERED,
A-7.
CONSENT AGENDA
There were no changes to the consent agenda.
MOTION:
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, Mary Warrington/Brain Injury Support Group -- Skateboard Park
Presented the City of Kenai and the Parks 8v Recreation Department with four helmets
to be available for those users of the skateboard park who do not have helmets.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 4
B-2. Borough Assembly President Tim Navarre -- KPB Ordinance No. 2001-
29, Amending KPB 2.40 Regarding Planning Commission Membership
and Apportionment.
Assembly President, Tim Navarre -- Navarre reviewed his reasons for Borough
Ordinance No. 2001-29, amending the Borough code regarding Planning Commission
membership and apportionment. He explained, since the decennial census figures
were published, it was determined the Planning Commission membership had to be
adjusted to comply with statutory requirements that the number of members from
home -rule and first-class cities reflect the proportion of borough population residing in
home -rule and first-class cities. He noted, he introduced the ordinance in order to
provide a mechanism for the assembly to address the issue, i.e. either amend the
borough's code to remove the requirement for representation from each city and leave
the number of commissioners at eleven, or increase the membership to thirteen or
fourteen to cover representation of outlying areas of the borough, continuing
representation from each city with populations over 1,000, and appointments to the
commission made by the borough mayor from recommendations of the city.
Navarre stated he had no objection to increasing the membership to thirteen or
fourteen which would allow more representation from the outlying areas and keep the
cities represented as before.
Bannock stated the city's Planning & Zoning Commission reviewed the information
brought forward by Commissioner Bryson. He noted, currently the borough's
Planning Commission has the authority to approve plats for the city. He suggested
that if the city traded the authority for platting within its boundary, there would be no
need for the borough Planning Commission (for the city) . Navarre stated he was
investigating the issue.
Phil Bryson, Kenai Planning & Zoning Commission/City Representative to the
Borough Planning Commission -- Stated planning and zoning is a duty and
obligation of the borough and state law was modified to allow the duties to be
delegated, i.e. zoning was delegated to the city, but basic power lies with the borough;
planning remained the duty of the borough. Bryson stated he was concerned a city
representative on the Planning Commission come from the city and not be diluted
through districting that would force in adjacent unincorporated areas. He added, he
believed council should try to maintain the ability to nominate their own
representative. He noted, the draft ordinance would preclude that ability.
Williams asked if the borough mayor could appoint someone other than the person
recommended by a city for its representative to the Planning Commission. Navarre
stated he was investigating the issue as currently, if the appointments are not
confirmed by the Assembly, the seat would become vacant until another appointment
is made. Navarre added, it would be his intent to amend the borough ordinance to
ensure the city representative continue in the seat until the appointment is made.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 5
Navarre stated amendments would be made to the draft ordinance and final action
would be taken November 20. Navarre stated he would forward the amended
ordinance with any background information for the council's November 7 meeting and
be present to answer questions.
Navarre stated it had not been his intent, with the first draft of the ordinance, to
indicate the cities would lose their representative to the Commission. He added, even
if some of the platting authority would be transferred to the city, he hoped the city
would still have a representative on the Commission.
ITEM C: PUBLIC HEARINGS
C-1. Ordinance No. 1936-2001-- Finding that Certain City -Owned Airport
Land, Identified as Tract A, Baron Park Kenai Youth Facility Addition,
Located at the Marathon Road and HEA Access Road Intersection in
Kenai, Is Not Required for a City Public Purpose But Is Needed for a
Public Purpose for the State of Alaska.
MOTION:
� Councilman Bookey MOVED to adopt Ordinance No. 1936-2001 and Councilwoman
Swarner SECONDED the motion.
Assemblyman Pete Sprague, 188 Farnsworth, Soldotna -- Reported he was a
member of the Detention Facility Project Committee and thanked the city for its
participation. Sprague explained the responsibility of the committee was to select a
site, design and promote public awareness for the facility. All three of their
responsibilities had been completed and the passage of Ordinance No. 1936 and 1937
were the final steps needing to be taken.
A brief discussion took place in which Sprague noted the facility was first designed as
a four -bed facility, but was enlarged to a ten -bed facility. Funding for the design,
engineering, and construction of the facility had been appropriated by the Legislature,
however funding for the operation of the facility had not yet been designated and was
beyond the committee's purview.
VOTE:
Williams
Yes
Booke
Yes
Swarner
Yes
Moore
Yes
Porter
Yes
Bannock
Yes
Jackman
Yes
MOTION PASSED UNANIMOUSLY.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 6
C-2. Ordinance No. 1937-2001 -- Increasing Estimated Revenues and
Appropriations in the General Fund Land Department by $325,000 for
Purchase of the Youth Detention Facility Property From the Airport Land
System Special Revenue Fund.
MOTION:
Councilwoman Porter MOVED for approval of Ordinance No. 1937-2001 and
Councilman Bookey SECONDED the motion.
There were no public or council comments.
VOTE:
Williams
Yes
Bookey
Yes
Swarner
Yes
Moore
Yes
Porter
Yes
Bannock
Yes
Jackman
Yes
MOTION PASSED UNANIMOUSLY,
C-3. Ordinance No. 1938-2001 -- Amending the Land Use Table and
Footnotes at KMC 14.22.010 to Provide Residential Uses in the Central
Commercial Zones and to Allow Dormitories and Boarding Houses in
Commercial Zones.
MOTION:
Councilman Bannock MOVED to adopt Ordinance No. 1938-2001 and Councilwoman
Porter SECONDED the motion.
Dustin Aaronson -- Questioned why the change was being made. Councilman
Bannock explained a problem was discovered when a person living in an apartment
complex situated in a Central Commercial Zone requested a Conditional Use Permit
for a day care and because the code did not allow a residence inside a Central
Commercial Zone, the permit could not be granted. The ordinance would amend those
issues.
VOTE:
Williams
Yes
Bookey
Yes
Swarner
Yes
Moore
Yes
Porter
Yes
Bannock
Yes
Jackman
Yes
MOTION PASSED UNANIMOUSLY.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 7
ITEM D: COMMISSION/COMMITTEE REPORTS
D-1. Council on Aging -- No report.
D-2. Airport Commission -- Swarner referred to the minutes of the October
11 meeting which were included in the packet. She noted the Commission discussed
the Borough's $100,000 personal property tax exemption and passed a motion
requesting council to consider including a similar ordinance in the Kenai Municipal
Code on aircraft. She noted the discussion came forward at Councilwoman Porter's
request due to concerns of pilots using other airports and affecting the city's tie -down
income as well as other subsidiary businesses.
D-3. Harbor Commission -- Bookey reported the follwoing:
• Minutes of the October 8 meeting were included in the packet and the
Commission discussed the coastal trail project at length. Bookey referred to copies of
the letters of comment in regard to the Corps permit which were distributed to council
prior to the meeting and requested a work session be scheduled with council, the
Harbor Commission and members of the other city commissions. A joint work session
was scheduled for October 25 at 7:00 p.m. in the council chambers.
Williams noted inconsistencies in a letter from Ken Tarbox to Senator Stevens and
suggested a letter be drafted to Senator Stevens to correct the information after the
work session.
• The Commission discussed the preliminary drawing supplied by the
Department of Natural Resources for the Wild Rose properties adjacent to
Cunningham Park. He noted the Commission preferred the upper property previously
discussed, however in order to have a chance of constructing the boat launch, the
Commission understood the Wild Rose property would be more apt to be approved for
the construction. Consensus of the Commission was to support the Wild Rose
property, although they had some concerns with the placement of the entrance on the
preliminary drawing.
• The Commission requested the November 12 (Veteran's Day) meeting be
changed to November 5. Council had no objections.
Snow asked if council wanted the resolution supporting the Wild Rose property to be
brought forward to the November 7 meeting and Council stated yes. Moore requested
all the property owners in that area be notified of the public hearing.
D-4. Library Commission -- Moore reported the Commission would meet next
on November 6 and raffle tickets were still on sale for the Friends' fundraiser.
D-5. Parks & Recreation Commission -- Porter reported the following:
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 9
D-7b, Kenai Convention & Visitors Bureau Board -- Bookey reported a
meeting was held earlier in the evening and would be meeting again in the near future
as there will be many challenges for tourism for the community. He noted Kathy Tarr
had submitted her resignation as executive director and that anyone interested in
running for their board of directors should submit their application.
D-7c. Alaska Municipal League Report -- Williams reminded the AML
Conference was scheduled for November 28-30.
ITEM E: MINUTES
E-1, Regular Meeting of October 3, 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 Moore SECONDED
the motion. There were no objections. SO ORDERED.
H-2. Purchase Orders Exceeding $2,500
MOTION.
Councilwoman Swarner MOVED for approval of the purchase orders exceeding
$2,500, the substitute and Councilwoman Porter SECONDED the motion. There were
no objections. SO ORDERED,
H-3. Ordinance No. 1939-2001-- Finding Certain City -Owned Foreclosed
Land, Identified as Lot 2, Block 1, Kaknu Korners, is Needed for a Public
Purpose.
Introduced by consent agenda.
H-4. Ordinance No. 1940-2001-- Increasing Estimated Revenues &
Appropriations by $45,500 in the General Fund for Ice Maintenance.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 8
• At their October 4 meeting, the Commission heard a presentation in
regard to the development of a BMX bicycle track/ park for young adults. Porter noted
Brett McDonald, the presenter, stated his willingness to work with the city; that there
would be minimal cost to the city; and suggested the old fire training area along the
Spur Highway as a site. Parks & Recreation Director Frates stated he is working with
McDonald for an alternative site for the park; that McDonald would like to speak to
the council in regard to the park; and they were asking for council direction of whether
to move forward with the proposal.
Williams suggested a site be found that could accommodate both the bike track and
skateboard park as comments he had received regarding the skateboard park were
that it is too small. Frates noted suggested alternative sites as Section 36 and
Marathon Road. Administration was requested to investigate sites for a bike track.
• The Commission revised the policies and procedures of the Memorial
Park which would be brought to council in the near future for review and
consideration.
• Discussed the preliminary design for the boat launch on the Wild Rose
properties adjacent to Cunningham Park. The Commission had no objections to the
site, but suggested a buoy system be placed in the river to keep boats away from the
bank fishers.
D-6. Planning & Zoning Commission -- Bannock reported the following:
• The Commission met on October 10.
• A variance permit was approved for 1511 Stellar Drive.
• The Commission reviewed an application and attached information for a
conditional use permit for a gravel pit and were asked to determine if the application
met the code requirements or if additional information was necessary. The
Commission found additional information was necessary prior to their being able to
take action.
• Reminded council of the strategic planning meeting at the Kenai Senior
Citizens Center on October 27. Information gathered will be used in the updating the
City's Comprehensive Plan.
Williams noted the Planning & Zoning Commission was one member short due to the
election of Amy Jackman to the city council. He noted Dustin Aaronson was present
and had submitted an application for placement on the Commission in the past. He
offered Aaronson's name for placement on the Commission. Council had no
objections.
D-7. Miscellaneous Commissions and Committees
D-7a. Beautification Committee -- Swarner reported the minutes of the
October 9 meeting were included in the packet. She noted the Committee requested
their December meeting be cancelled. Council had no objections.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 10
Introduced by consent agenda.
H-5. Ordinance No. 1941-2001 -- Increasing Estimated Revenue and
Appropriations by $12,000 in the Water and Sewer Fund for a Water
Rate Study.
Introduced by consent agenda.
H-6. Discussion -- Assignments of Council Liaisons
After discussion and a short break from 9:00 p.m. to 9:08 p.m., council approved the
following assignments:
CITY BOARDS, COMMISSIONS & COMMITTEES
COUNCIL LIAISON
Council on Aging
Councilwoman Swarner
Airport Commission
Councilwoman Jackman
Harbor Commission
Councilman Booke
Library Commission
Councilman Moore
Parks & Recreation Commission
Councilman Porter
Planning 8, Zoning Commission
Councilman Bannock
Beautification Committee
Councilwoman Swarner
OTHERS:
Kenai River Special Management Advisory Board KRSMA
City Manager Snow
Economic Development District EDD
Mayor Williams
Cook Inlet Regional Citizens Advisory Council CIRCAC
John Douglas
Kenai Visitors & Convention Bureau Board
Councilman Booke
Challenger Center of Alaska Board
Mayor Williams
Councilman Bannock
H-7. Discussion -- Personal Property Tax Exemption on Airplanes
Porter explained she requested the Airport Commission discuss the personal property
tax exemption because approximately 30 small aircraft had moved from the Kenai
Airport and were parking at other locations. She added, the loss of the airplanes from
the Kenai site would affect the Airport budget, and would affects service businesses to
the airport, i.e. fuel, mechanical repairs, etc. Porter added, the Commission
recommended the council address the issue and consider eliminating the tax, and at
the same time they also wanted council to work with the Borough to change the way
airplanes are taxed (standard fee per propeller) .
Finance Director Semmens noted the Kenai Peninsula Borough exempts the first
$100,000 of any personal property except boats which are taxed on a flat tax based on
the length of the boat. The city taxes everything in the City based on value. Swarner
noted, since 1998, the city had been collecting more tie -down fees.
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 11
Airport Manager Cronkhite explained the Commission had investigated the issue
several years ago and at that time the airport had lost some tenants who explained
they were leaving due to the tax. Because of Porter's concerns, she contacted tenants
and some of those people who complained previously and learned they felt they were
losing tenants due to the tax. Cronkhite added, concern of the airport and the
Commission is that if the tenants feel they are losing business to another airport,
those businesses may want to move to that site.
Semmens stated, if all aircraft is exempted, the city would lose taxes paid by
commuter airline(s). He added, if one type of personal property is exempted, there are
others that have similar values, type or use, and it may be felt those should have
equal treatment. Semmens added, if the city were to adopt the $100,000 exemption
for all property, including boats, he approximated the city's loss of tax at $65,000.
However, the city benefited from the borough's motor tax by about $25,000, which
would leave the net tax loss to the city at approximately $45,000.
Semmens stated options were available for the city to do in regard to personal property
tax Bookey stated some of the loss of aircraft parking at the airport could be
attributed to the controlled air space, radios, restrictions, etc. He suggested
reevaluating the Kenai Airport regulations, etc.
Council requested the following:
• Administration investigate alternatives, reviewing and making
comparisons.
• Survey the leaseholders, aircraft owners, etc. as to why they are leaving
the airport, with the Commission designing the questions and have the answers to use
during the updating process of the Comprehensive Plan.
It was also noted a decision on amending the tax code would be required prior to the
end of the 2002 calendar year.
ITEM I:
ADMINISTRATION REPORTS
Mayor -- Williams discussed the following items:
• Suggested a joint meeting be held in the near future between the Kenai
City Council and the Soldotna City Council to discuss common issues, i.e. airport,
transportation, etc. There were no oblections from council to schedule a meeting.
• Requested administration investigate whether property is available close
to the oval race track for drag racing.
• Noted a power line route study was available in the Clerk's office for
counci 's review.
• Reported he and Vice Mayor Swarner met with KPB Mayor Bagley and he
met with Soldotna City Manager Boedeker in regard to a possible joint venture to build
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 12
a maintenance facility. He explained, an independent group would be used to do the
work and $50,000 may be needed to do a feasibility study, however the cost of the
building would be shared three ways. He asked council if the matter would be
something they would want to pursue. Council discussed the idea and concerns
included the lack of economic feasibility for equipment and drivers to travel between
the facility and the work area; identities of the cities/borough would be lost; and a
separate facility is needed for the City of Kenai. Williams noted consensus was there
was no interest in pursuing the joint facility.
• Reported federal budget bills had not been moving forward due to the
terrorist concerns and repercussions. He was continuing to track the funding for the
coastal trail.
• After the strategic planning for the Comprehensive Plan, he wants to
identify some areas of work that could receive EDA funding.
I-2. City Manager -- City Manager Snow reported the following:
• Reviewed the memorandum included in the packet regarding combining
an espresso / newsstand, gift shop and restaurant lease at the airport terminal to
hopefully encourage more bid activity. Discussion followed regarding the smaller area
and a former discussion of using that area for small businesses to showcase their
wares through the Chamber and EDD.
Airport Manager Cronkhite explained the biggest draw of interest was the placement of
an espresso bar in the airport in the smaller space and the bidding process. Williams
stated his desire to offer the space to the Chamber/EDD first and Bannock stated he
wanted to try the invitation to bid because of the espresso interests.
Bookey asked if the exclusiveness would be given up through this process and
Cronkhite explained, the request for bids was written for one bidder (which could be a
joint venture, partnership, etc.) to have an exclusive right for both spaces
(espresso/gift shop and restaurant) . However, if the successful bidder does not utilize
the espresso bar/ gift shop space within four months, the exclusive right would be lost
and the space would return to the city and at that time could be re -bid or used
however the city wants to use it.
Swarner stated she preferred having the bid process begin and still leave the option
open for the Chamber to use the space or build a case for displaying area business
products. There were no objections from council as to the process described in the
packet information, however there were concerns as to how successful the bidders
would be due to past disappointments.
• Reported the Remodel Committee met in September and developed a
concept for the area formerly used by the nurses. It is believed enough funds were in
the current budget for the demolition and changes, without furnishings and
equipment. If council had no objections, Snow stated she would have a concept
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 13
drawing and estimate for costs, including furniture and equipment, prepared for the
November 7 meeting. No objections were noted.
Snow also reported the upstairs remodel would be a larger project and could effect the
building's mechanical and ventilation systems. She will bring more information
forward in the near future.
• New tie -down fees were reviewed by the Airport Commission which were
developed by Airport Manager Cronkhite. The new fees would give a break for annual
permits and would charge for electrical service plug -ins. According to the Kenai
Municipal Code, Snow stated she approved the fees and would forward them for
council review at the November 5 meeting.
• Noted she would be out of town from October 18-21 and Finance Director
Semmens would be available in her place.
Attorney -- Attorney Graves reported the following:
• Approximately $17,229 had been received to date from the returns on
the attachments for unpaid fines made to the year's Permanent Fund Dividend.
• He recently attended an Airport Law Workshop in San Francisco at
which the main issues discussed were pending security bills in Congress in regard to
airport security.
I-4. City Clerk -- Clerk Freas requested council's preference for the date on
which to hold the annual Employee Appreciation Dinner, whether the event should be
held at the Senior Center, and if one of the council would like to volunteer as a
member of the planning committee. Council agreed the event should be held on
January 19, 2002 at the Senior Center and Councilwoman Porter volunteered to help
in the planning.
I-5. Finance Director -- Finance Director Semmens reviewed the Investment
Report (included in the packet) with council and noted the current portfolio yield was
down because the federal reserve had continued to cut the discount rate, which
impacts other short term interest rates and would in turn, significantly lessen the
budget's projected interest revenue.
I-6. Public Works Managers
Kornelis -- No report.
La Shot -- Reported the refrigeration project should be completed and ice
available before Thanksgiving.
I-7. Airport Manager -- No report.
ITEM J: DISCUSSION
J-1. Citizens --
KENAI CITY COUNCIL MEETING
OCTOBER 17, 2001
PAGE 15
Upon reconvening of council, Councilwoman Swarner reported the council met in
executive session and discussed items of financial interested to the city and no action
was taken.
ITEM K: ADJOURNMENT
The meeting adjourned at approximately 11:25 p.m.
Minutes transcribed and prepared by:
Carol L. Freas, City Clerk
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