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HomeMy WebLinkAbout2001-11-21 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 21, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Representatives from Kenai Boy Scout Troop 357 and Nikiski Boy Scout Troop 669 -- Citizenship in the Community Merit Badge. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1940-2001-- Increasing Estimated Revenues 8s Appropriations by $45,500 in the General Fund for Ice Maintenance. a. Remove from table. b. Consideration of ordinance. 2. Resolution No. 2001-81 -- Awarding the Bid to Dr. Ice for Ice Maintenance and Refrigeration Technician Services - 2001 for the Total Amount of $15,357.75 Per Month. a. Remove from table b. Consideration of resolution. 3. Ordinance No. 1942-2001-- Amending KMC 14.20.280(c) to Remove the Requirement that Notification of Public Hearings be Sent Via Certified Mail. 4. Ordinance No. 1943-2001-- Amending KMC 14.05.020 to Increase the Fee for Applications for Variances, Encroachments, Conditional Use Permits, and Amendments to the Kenai Zoning Code or the Official Map from $100 to $200. Various Other Sections of Title 14 are Also Amended to Reflect This Change. 5. Ordinance No. 1944-2001 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund and Kenai Coastal Trail Capital Project Fund for Additional Environmental and Permitting Work. 6. Resolution No. 2001-86 - Donating Certain City -Owned Land Identified as Tract A, Baron Park Kenai Youth Addition, Located at the Marathon Road and HEA Access Road Intersection in Kenai, to the State of Alaska for the Location of a Youth Detention Facility. 7. Resolution No. 2001-87 - Supporting the "Alaska's Children, Alaska's Future" Statewide Campaign to Achieve Proper Funding for Alaska's Schools and Adequate Funding for Every Alaskan Student. 8. Resolution No. 2001-88 - Adopting a Street Name Change from 81 st Avenue SE to North Strawberry Road. 9. Resolution No. 2001-89 -Supporting Highway Improvements to the Sterling Highway (MP42-60) to Reduce Safety Hazards that Create Undue Risk of Injury and Road Closures on a Vital Link for the Western Part of the Kenai Peninsula. 10. Resolution No. 2001-90 - Transferring $20,000 in the General Fund for Abatement of Dangerous Buildings. 11. *Liquor License Renewal - Kenai Golf Course Cafe -Restaurant/ Eating Place - Seasonal 12. *Liquor License Renewal -Eagles #3525/Club ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & 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. *Work Session of October 25 2001. 2. *Regular Meeting of November 7, 2001. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS 1. Discussion -Kenai Coastal Trail/Bluff Restoration Project 2. Approval -Aircraft Tie -Down Fees ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Discussion -- Request for FAA Funding -- Hotel/ Convention Center Funding in Conjunction with Economic Development for the City. 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 NOVEMBER 21, 2001 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / Z www. ci. kenai. ak. u s MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:04 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 Deputy City Clerk. Present were: Bookey, Swarner, Moore, Bannock, and Williams. Porter and Jackman were absent. A- 3 . AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: MOVE: C-7, Resolution No. 2001-87 - Supporting the "Alaska's Children, Alaska's Future" Statewide Campaign to Achieve Proper Funding for Alaska's Schools and Adequate Funding for Every Alaskan Student - to C-1A SUBSTITUTE: C-1, Ordinance 1940-01 with SUBSTITUTE C-1 Ordinance 1940-01. An ordinance of the Council of the City of Kenai, Alaska increasing estimated revenues and appropriations by $25,539 in the general fund for ice maintenance. SUBSTITUTE: C-2, Resolution 2001-81 with SUBSTITUTE C-2 Resolution 2001-81. A resolution of the council of the city of Kenai, Alaska, awarding the bid to DR Ice for ice maintenance & refrigeration technician services - 2001 for the total amount of $65,539. MOTION: Councilwoman Swarner MOVED to approve the agenda as amended and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. l A-4. CONSENT AGENDA l - KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 2 MOTION: Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS B-1, Rocky Ward, Sr. Patrol Leader, Troop #357. Ward introduced himself and explained that he and the two other Scouts with him, Tony Bannock and Bryan Percival, were attending this meeting as a step toward earning their citizenship merit badges for Eagle Scouts. He said each of them would do a report about the meeting as part of obtaining those merit badges. Ward introduced Ozzie Osborne of Troop #659 who was attending this meeting because the leader of Troop #357 was unable to attend. Council told the Scouts they might find the website and the City Charter useful in writing their reports. Council also offered to answer any questions the scouts might have. ITEM C: PUBLIC HEARINGS C-7. Resolution No. 2001-87 - Supporting the "Alaska's Children, Alaska's Future" Statewide Campaign to Achieve Proper Funding for Alaska's Schools and Adequate Funding for Every Alaskan Student. MOTION: Councilman Bannock MOVED for adoption of Resolution 2001-87 and Councilman Bookey SECONDED the motion. David McCard introduced himself and said he taught sixth grade at Sterling Elementary and was a member of the Kenai Peninsula Education Association. McCard asked Council for their support of this resolution. He said the funding was not just for the Union but also for the Superintendents' Association, the Principals' Association and the State Board of the PTA. "We are seeking funding for our children," McCard stated. Mayor Williams asked McCard how much increased funding the educational system will be requesting from the Legislature this year. McCard answered that last year they asked for $14 million and, with inflation, it could be more this time. He said this was part of the Governor's A+ Schools Program. / Councilman Moore stated his support and there were no further public comments. KENAI CITY COUNCIL MEETING 1 NOVEMBER 21, 2001 PAGE 3 VOTE: Councilman Moore requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, C-1. Ordinance No. 1940-2001-- Increasing Estimated Revenues & Appropriations by $45,500 in the General Fund for Ice Maintenance. C- la. Remove from table. MOTION: Councilman Moore MOVED to remove from the table Ordinance No. 1940-2001 and Councilwoman Swarner SECONDED the motion. No objections. SO ORDERED. C- lb. Consideration of ordinance. MOTION: Councilman Moore MOVED to adopt Ordinance No. 1940-2001 SUBSTITUTE and Councilwoman Swarner SECONDED the motion. No comments from the public. City Manager Linda Snow explained the substitute ordinance was put together by Administration and included a spreadsheet with details about the alternatives. She said Administration was recommending alternative number two on the spreadsheet. The amount of the appropriation had been reduced to $25,539, Snow said. Councilwoman Swarner asked if the shop employees had looked at the Zamboni. Snow answered that they had looked at it and compared it to the list provided by DR Ice. Councilman Moore suggested that this ordinance be passed so the accompanying resolution could be discussed. VOTE: Swarner Yes Moore Yes Porter Absent Bannock Yes Jackman Absent Williams Yes Bookey Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 4 C-2. Resolution No. 2001-81 -- Awarding the Bid to Dr. Ice for Ice Maintenance and Refrigeration Technician Services - 2001 for the Total Amount of $15,357.75 Per Month. C-2a. Remove from table MOTION: Councilman Moore MOVED to remove from the table Resolution No. 2001-81 and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. C-2b. Consideration of resolution. MOTION: Councilman Moore MOVED to approve Resolution No. 2001-81 SUBSTITUTE and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Bannock asked what the difference was in the content of the original and the substitute resolutions. Snow answered the original proposal total was for $15,357.75 per month; however, the new proposal totals $65,539.00. Also, the original proposal was for 126 hours per week; but that amount has been decreased to 92 hours per week, which accounts for the difference in the original and the substitute resolutions, Snow stated. Mayor Williams reminded Council that at some point in the future the City would probably need a full-time employee to take care of the ice rink. Swarner asked what had been the original date was for the ice to be available. Parks & Recreation Director Frates answered December, and that it is now scheduled for December 6. Moore stated the facility must now be well maintained in order to get people to use it. VOTE: Swarner Yes Moore Yes Porter Absent Bannock Yes Jackman Absent Williams Yes Bookey Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1942-2001-- Amending KMC 14.20.280(c) to Remove the 1 Requirement that Notification of Public Hearings Be Sent Via Certified � Mail. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 5 MOTION: Councilman Bannock MOVED to adopt Ordinance No. 1942-2001 and Councilwoman Swarner SECONDED the motion. There were no public comments. Bannock stated this ordinance came from Planning • Zoning Commission on the advice of the Administration. It was passed by Planning • Zoning unanimously, he said. There were no public comments at the public hearing regarding this ordinance. Councilman Bookey stated his concern that in the past Council had asked Administration to use certified mailings to notice people about meetings of major concern to be sure everyone was notified. He said he didn't feel the amount of money being spent was enough to make a difference. Snow reported Administration has had complaints from the public about having to stand in line at the post office to get these mailings. She also said that certified mailings are no longer required by state law and other cities on the Peninsula no longer use them. City Planner Kebschull stated she gets complaints from people about having to stand in line to get these mailings. She said she has checked with many Peninsula cities and in the Mat -Su and has learned that they don't use the certified mailings anymore. Bookey said he didn't think those were good reasons. He said if a person was upset about getting a certified mailing, they would be even more upset if they didn't get a notice at all about an issue important to them. Bannock wanted to make the point clear the ordinance was not to stop notifying people at all only about notifying them by certified mail. He also said the State of Alaska rarely uses certified mailings any longer. Instead, the State certifies the document was mailed. VOTE: Swarner Yes Moore No Porter Absent Bannock Yes Jackman Absent Williams Yes .Bookey No MOTION FAILED. C-4. Ordinance No. 1943-2001-- Amending KMC 14.05.020 to Increase the Fee for Applications for Variances, Encroachments, Conditional Use Permits, and Amendments to the Kenai Zoning Code or the Official Map from $100 to $200. Various Other Sections of Title 14 are Also Amended to Reflect This Change. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 6 MOTION: Councilman Bannock MOVED to adopt Ordinance No. 1943-2001 and Councilwoman Swarner SECONDED the motion. -There were no public comments. Bannock reported the Planning & Zoning Commission passed this ordinance along with the previous one. He said the spreadsheet in the packet was one he requested and noted it details one -year's costs. Bannock stated, even though the previous ordinance had just failed, the numbers on the spreadsheet indicate there are still higher costs involved in the processing of applications for variances, encroachments, etc., so this ordinance could still be justified. Bookey said the costs involved in the processing should be absorbed by the City as a service to the citizens. He stated that the citizens who are forced to apply for these things are often people trying to go into a business, which could bring revenue to the City of Kenai. No further comment. VOTE: Swarner Yes Moore No Porter Absent Bannock No Jackman Absent Williams No Bookey No MOTION FAILED. C-5. Ordinance No. 1944-2001 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund and Kenai Coastal Trail Capital Project Fund for Additional Environmental and Permitting Work. MOTION: Councilman Bookey MOVED to adopt Ordinance No. 1944-2001 and Councilwoman Swarner SECONDED the motion. No public comments. Bookey asked if some of the $500,000 from the federal government could be used for other parts of the project or would the money be dedicated to the engineering. Williams said the original amount of $450,000 would be spent on engineering and the additional $50,000 could be spent as needed for this project and that once the money was appropriated for a project it could be spent as needed on that project. KENAI CITY COUNCIL MEETING 1 NOVEMBER 21, 2001 PAGE 7 VOTE: Swarner Yes Moore Yes Porter Absent Bannock Yes Jackman Absent Williams Yes Bookey Yes I _T i MOTION PASSED UNANIMOUSLY. C-6. Resolution No. 2001-86 - Donating Certain City -Owned Land Identified as Tract A, Baron Park Kenai Youth Addition, Located at the Marathon Road and HEA Access Road Intersection in Kenai, to the State of Alaska for the Location of a Youth Detention Facility. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-86 and asked for unanimous consent. Councilman Bookey SECONDED the motion. No public comments. Williams said the bids to the State are due on the project on December 6, 2001. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED, C-7. Resolution No. 2001-87 - Supporting the "Alaska's Children, Alaska's Future" Statewide Campaign to Achieve Proper Funding for Alaska's Schools and Adequate Funding for Every Alaskan Student. Discussed at the beginning of the meeting. C-8. Resolution No. 2001-88 - Adopting a Street Name Change from 81 st Avenue SE to North Strawberry Road. MOTION: Councilman Bannock MOVED to approval of Resolution No. 2001-88. Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 8 C-9. Resolution No. 2001-89 -Supporting Highway Improvements to the Sterling Highway (MP42-60) to Reduce Safety Hazards that Create Undue Risk of Injury and Road Closures on a Vital Link for the Western Part of the Kenai Peninsula. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-89 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no public comments. Bookey said he noted the resolution was brought forward by Mayor Williams, and he wondered why. Williams said that Representative Lancaster asked him to bring it to Council. Lancaster is pressing hard, Williams said, to get the safety items taken care of because it is unknown when the new road might be built. He said it was felt that some of the dangerous curves might be removed with this to make the highway safer for now. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED. Council directed Administration to send a copy of the resolution to the State Department of Highways, the Peninsula's legislative delegation and the Commissioner of Highways. C-10. Resolution No. 2001-90 - Transferring $20,000 in the General Fund for Abatement of Dangerous Buildings. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 2001-90 and asked for unanimous consent. Councilman Moore SECONDED the motion. There were no public comments. Williams asked if these buildings would be burned down by the fire department. Public Works Manager La Shot said it was planned to just remove the buildings. Fire Chief Scott Walden said there is too much to go through to be allowed to burn the buildings down. He said some of the requirements include removing asphalt shingles, removing the wiring, testing for asbestos and lead paint. Snow pointed out that the City owns two of the properties. La Shot said there were actually three buildings on one of the City -owned properties and a foundation on another. The other two properties, he said, have a burned -out house and a building that was going to be a mill. l KENAI CITY COUNCIL MEETING 1 NOVEMBER 21, 2001 PAGE 9 VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED, C-11. Liquor License Renewal - Kenai Golf Course Cafe Restaurant/Eating Place - Seasonal Approved by consent agenda. C-12. Liquor License Renewal -Eagles #3525/Club Approved by consent agenda. BREAK: 8:00 p.m. BACK TO ORDER: 8:12 p.m. ITEM D: COMMISSION / COMMITTEE REPORTS D-1. Council on Aging -- No report. D-2. Airport Commission -- Airport Manager Rebecca Cronkhite reported that most of Council was at the last meeting. Administration had been directed to bring some items to the next meeting, she said. The next meeting will follow the same format as the last meeting, according to her understanding. D-3. Harbor Commission -- Councilman Bookey said the minutes of the last meeting were in the packet. D-4. Library Commission -- Councilman Moore said the minutes of the last meeting were in the packet and the next meeting was scheduled for December 4. Moore also reminded everyone about the Library's Open House on December 13 from 4:00 to 7:00. D-5. Parks & Recreation Commission -- No report. D-6. Planning & Zoning Commission -- Bannock reported the agenda was in the packet. He also stated that Commissioner Mike Morse had resigned, and three applications were in the packet. He asked that Council appoint a new Commissioner to P&,Z. Mr. Osborne, who was in the audience, stated he had been on the P&Z Commission in the early 1980's, and he would like to offer his services again. He said he has lived in Kenai for 25 to 26 years. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 10 Swarner asked the Mayor if it wasn't customary for the Clerk to ask Commissioners from other Commissions if they were interested in moving to P&,Z. No one was sure, but Williams said if there were no objections he would like to appointment Osborne. There were no objections to Osborne's appointment. The Clerk was directed to write a letter of appointment to Mr. Osborne. La Shot stated the Commission was also requesting Council to cancel their December 26 meeting. Council had no objections. SO ORDERED. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported there was no quorum at the last meeting and the December meeting had been cancelled by Council. The next meeting was scheduled in January, she said. D-7b. Kenai Convention & Visitors Bureau Board -- Bookey reported there was a meeting the prior week. He said it was the last meeting for Director Kathy Tarr. Bookey said Ms. Tarr brought forth a tentative budget for consideration. Bookey reported the Board had made the decision to purchase "board insurance," and they will appoint the new director at their December 10 meeting. D-7c. Alaska Municipal League Report -- Williams stated the upcoming conference would begin on Monday, November 25, with the mayors' meeting being on Tuesday. He said he would be staying all week in Anchorage and had meetings planned with General Oates, head of the Kenai National Guard, to discuss once again the issue of moving the armory. Williams stated with increased military spending for homeland security "... we might just as well see if we can petition to move the armory." His idea, he said, was to put the armory at the other end of the airport, get it out of the residential neighborhood and then use the old building for other things such by the Fine Arts group. Some Kennedy funds are coming available, Williams said, so this might be a good time to move in that direction. Mayor Williams said he would also be meeting with the head of Spenard Builders Supply (SBS). Williams reviewed the history of SBS buying out Kenai Supply, and then closing down the SBS Kenai operation, as well as Kenai Supply. Both facilities had been great producers of revenue to the City, he said, and now the SBS operation was just outside the city limit of the City of Kenai. Williams stated he had spoken with the City Attorney and learned there are three ways a property can be annexed: 1. By legislation; 2. By petition of the city government through the Boundaries Commission; and 3. By request of the owner of the property. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 11 Annexing by request of the owner of the property is very simple, Williams said. He continued by saying that property taxes for SBS would be basically the same when the service areas and fire protection services are combined. The only reason for being outside the City is the 3% sales tax, Williams stated; however, the sales tax applied only to individual sales and not to contractors, he said. Williams said he was not generally in favor of annexing large areas, but in this instance "... the City of Kenai was dealt a tremendous financial blow and disservice by both stores being removed from our tax base at the same time." He said it would be worth asking. ITEM E: MINUTES E-1. Work Session of October 25, 2001. Approved by consent agenda. E-2. Regular Meeting of November 7, 2001. Approved by consent agenda. ITEM G: OLD BUSINESS G-1. Discussion -Kenai Coastal Trail/Bluff Restoration Project Snow stated Council had asked Administration to request draft letters from Peratrovich, Nottingham 8s Drage, Inc. (PND) on two matters: 1) a list of items that consolidated all of the concerns expressed by the agencies during the initial permitting phase; and 2) a letter addressing how PND thinks the City should proceed on this project. These items were in the packet for Council's review and discussion, Snow said. Snow continued that she and Public Works Director Kornelis thought PND did a really good job particularly in consolidating the issues and putting everything in a form that could be talked about. She said the letters would be helpful in dealing with the agencies through this process and that she felt the process PND was recommending was good, too. Moore stated he didn't feel comfortable assessing the details about sand bars, etc. He said he wasn't qualified to do that, but he was willing to move forward if others are. Williams said he thought PND had done an excellent job of "pulling together" all of the arguments that have come out so far regarding why this project shouldn't be built. What needed to happen now, he said, was to assess the arguments and consolidate them into singular arguments with a basis to each and then answer those questions. This report was far from being an environmental impact statement, Williams said; but KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 12 it is more thorough than it could have been. It would help the City approach the agencies with specifics, Williams stated. Bookey said he talked with EPA and learned that many of the questions / issues could be talked over in meetings without having long, expensive studies. Possibly, the City could get through this project without a full environmental impact study, he said. Bookey also said he didn't want the City to be "threatening" in any way in dealing the with agencies. Council directed Administration to proceed with PND and prepare for correspondence with the agencies. Williams remembered studies had been completed earlier and the City may already have the answers to many of the questions. Bookey stated the agencies would be in a position of having to prove the City wrong. G-2. Approval - Aircraft Tie -Down Fees MOTION: Councilwoman Swarner MOVED to approve the proposed aircraft tie -down fees as outlined in the memo from the Airport Manager dated November 1, 2001, and she asked for unanimous consent. Councilman Bookey SECONDED the motion. Bookey asked what the change in rates was and Airport Manager Cronkhite explained all the rates either went down or were newly added. She said she had concentrated on making the yearly rates lower to encourage long-term commitment to the Kenai airport. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED, ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills. Councilman Bookey SECONDED the motion. Williams asked Finance Director Semmens if he had compared the electric rates to � those of a year ago and asked him to do so. He said the utility companies seemed to KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 13 lag the curve of the market by about a year; and he said he wanted to see if the drop in energy prices was being accompanied by a rise in domestic utility prices. VOTE: There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED for approval of purchase orders over $2,500 and asked for unanimous consent. Councilman Bookey SECONDED the motion. Snow interjected information that did not appear on the list of purchase orders to be approved. She stated, a transformer needed to be replaced on the refrigeration unit at the Multi -Purpose Facility at a cost of about $5,000 in order to get it working and have ice by the date requested. La Shot said HEA determined the week prior that the transformer needed to be upgraded. He said the cost was only an estimate but should be about $5,000. La Shot stated the City had a commitment from the electrical contractor to do the work; they can do it more quickly than HEA and save some money, he said, but it must be done next week to get the compressors on-line in time. He said the City would get a new transformer and would also get credit for the old one. Bookey asked about snow gate parts and what the City is buying for $2,900. La Shot answered, the money was for buying replacement parts because the stand-by parts had been used. VOTE: There were no objections. SO ORDERED, H-3. Discussion -- Request for FAA Funding -- Hotel/Convention Center Funding in Conjunction with Economic Development for the City. Williams stated the time was near for the City to consider once again constructing a hotel/ convention center. Williams said the issue was voted down 15 years ago by a ratio of 8:1 just as the state was headed into a recession, but recently even the state had been moving in the direction of hotels and convention centers. However, he said, the matter should be approached in a different manner than before. Williams said he believed the City should hire a "partner," someone with the qualifications and expertise to carry the project through. The property was close to being available, Williams said; the FAA owns most of the 19 acres all but the six -acre Daubens eck parcel. Because the FAA owns the property, p p p p y, KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 14 the City must ask permission to use the property anyway and the City could also ask the FAA for funds to help with a feasibility study. He said he believed the hotel/ convention center might have a positive economic .impact on the Kenai Airport. We can assess that impact in a feasibility study, Williams said what would it do to the economics of the Airport overall? What would it do to rental cars? What about the City's ability to lease facilities at the Airport? He stated all of these things could be affected. The first phase of the study would cost approximately $25,000, Williams reported, and the second phase would cost another $25,000. After that would come the schematics, plans, and so forth, he said. Williams reported he had recently met with the owner of a major construction company (who has done business in Kenai before) who was tied directly to two Native corporations who was, in turn, tied directly to a hotel operator in Alaska. The suggestion from that company, Williams said, was that Kenai get the economic and feasibility studies done on its own before trying to bring in investors. Williams referred Council to the document at H-3 of the packet, a "Statement of Qualification" from Jinneman, Kennedy & Mohn, P.S., Hospitality Investment Advisors. He said he was introduced to Mr. Mohn about 18 months ago when he was doing the feasibility study for Western Steele for the new facility in Soldotna. He stated Mr. Mohn's Seattle -based company was highly respected and the document in the packet shows the kind of projects the company did. Williams pointed out they have done work in Anchorage, Fairbanks, Denali, and other Alaska communities. The document also lists specific projects worked on by this company, he said. The next meeting of the Airport Commission is on December 13, and Williams stated he would like this issue to be brought before them, after which Administration would be directed to present the plan to the FAA for their approval of the expenditure of the funds. Bookey said he agreed with the plan as long as it wouldn't ever end up coming back to the General Fund. He also asked Williams if the plan was to sole source to the Seattle firm or would it go to an RFP. Williams said he picked this company as a sole source because of their association with communities and businesses in Alaska. The question, he said, might come up because of having to get approval for the funds from the FAA who may require an RFP. Cronkhite clarified the project would be using Airport funds rather than applying for grant funds. Grant funds have more stringent requirements, she said. Council directed Administration to place this issue on the next Planning 8, Zoning i Commission meeting, including copies of the documents at H-3 in this packet. KENAI CITY COUNCIL MEETING � NOVEMBER 21, 2001 PAGE 15 ITEM I: ADMINISTRATION REPORTS I-1. Mayor -- A copy of the letter prepared by Administration to Senator Stevens was in the packet, requesting $500,000 to fully equip and implement the Emergency Operations Center in Kenai. With Council's permission, Administration will send the letter. No objections. I-2. City Manager -- Snow reported the following: • Referencing the letter to prospective bidders for the airport restaurant bid, Snow explained that the letter was written to explain a change being made in the bid documents. Also, she said, a bidder had requested a change in the bid opening date so the new date is November 26, 2001. The awarding of the bid will be before Council at one of the December meetings. Swarner asked when the current tenants would be vacating the airport restaurant. Cronkhite explained that the tenants had notified her they would be vacating the Airport space December 11; therefore, the restaurant would be closed until approximately January 1, 2002. If the successful bidder can start before that, the City would be willing to work with them to do that, said Cronkhite. Moore suggested the possibility of allowing a coffee cart with snacks to be put in during the holidays until the restaurant opened. Again, Cronkhite said that if the successful bidder can do anything like that, she would work with them to do it. Bookey said he thought this was just an unfortunate situation and the City shouldn't try to push a new bidder in too quickly. • Snow announced she planned to close the non -essential City offices at 1:00 p.m. on Christmas Eve and New Year's Eve. Signs will be posted and the phone recordings would reflect the closures. • Snow reported that she would be in Anchorage for AML on Monday and Tuesday. I-3. Attorney -- No report. I-4. City Clerk -- No report. I-5. Finance Director -- Semmens reported the State of Alaska settled their claim with the Bank of America and the City had received its portion of that claim in the amount of $16,000. I-6. Public Works Managers Kornelis -- No report. La Shot had no report, however when asked about the City Hall remodel work, he stated most of the demolition work had been done. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 16 I-7. Airport Manager -- Cronkhite reported the Anchorage International Airport was in the early stages of a Master Plan update and the subject of sending some of the heavy cargo traffic and other traffic to the Kenai Airport was brought up. She said the City of Kenai had been invited to send a representative to the next meeting on November 29 at the West Coast International Inn at 7:00 p.m. Cronkhite stated this is an important opportunity for the City to show its interest in developing the Kenai Airport. She recommended that the City send an elected official who can demonstrate to these people Kenai was very interested in developing the Airport. She said the Airport would supply a roundtrip airline ticket and cab fare to the person who went. Williams stated to "let the record show" it was not the Council's intention to have 747's landing at the Kenai Airport. The plan would be to build a new runway in a new, more appropriate location. Council decided to send the City Manager and two or three Airport Commission members and directed Administration to proceed. ITEM J: DISCUSSION J-1. Citizens (five minutes) Jay Barrett -- Wished everyone a Happy Thanksgiving and thanked them for making his job "so easy." J-2. Council Bookey -- No comments. Swarner -- Swarner noted the following: • Noticed in the minutes of the Kenai River Special Management Area Advisory Board the City Manager had not been in attendance. She asked that in the future a representative be sent from the City. • The Kenai River Council on the Arts (formerly Kenai Humanities Council) met on October 15. She asked Council to endorse a facility of some sort that could be used for the arts and that would be within walking distance of the City. Buildings such as the old Dragnet building or the SBS building on the Spur Highway had been mentioned, she said. The Council on the Arts would be open to ideas. Williams asked Swarner if this was the time for a Mayor's committee or a resolution of support. She responded, the Council on the Arts needed to know the Council supported their endeavors or a facility within the City, and that the Council did recognize the economic possibilities of an arts community. Williams mentioned the armory building as a possibility if a new one is built. Council directed the Clerk to work with Swarner to write the resolution. • Expressed concerns about the environmental impact of economic development by the oil companies in Cook Inlet. KENAI CITY COUNCIL MEETING NOVEMBER 21, 2001 PAGE 17 Moore -- Thanked Council for the continued support for the multipurpose facility. Suggested a grand opening/ open house for the whole Peninsula to promote the use of the ice. Bannock -- No comments. Williams -- Noted the following: • ANWR may pass this time. • The major gas companies had been carrying a debt of $4.5 billion that would have been part of the price tag of the new pipeline. Said an important event happened last week those companies agreed to "write down" that debt. Those companies are now meeting with the three primary companies Exxon, Phillips and BP for the first time about actually getting the gas. • Referred to the front page of Election News (Info item 5 in packet) , saying there will be six ballots at the polls at the primary. That means each person will have to choose one party ballot only. EXECUTIVE SESSION -- None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 9 : 34 p.m. Minutes transcribed d prepared by: Shery f. Padilla, Deputy City Clerk