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HomeMy WebLinkAbout2000-01-05 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 5, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / Z www. ci. kenai. ak. u s 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) ITEM C. PUBLIC HEARINGS 1. Resolution No. 2000-1 -- Transferring $1,875 in the General Fund for Parks Department Water Service. 2. Resolution No. 2000-2 -- Adopting the City of Kenai, Alaska 2000-2001 Capital Improvement Project (CIP) Priority List for Request of State Grants. 3. Resolution No. 2000-3 -- Supporting Legislation for Mortgage Loans Covered Under the Alaska Housing Finance Corporation Housing Assistance Program to be Equal Among All Geographic Areas of Alaska Within the Specifications of the Funding Program. 4. *Applications for Renewal of Liquor License -- a. Kenai Golf Course Cafe -- Restaurant/Eating Place -Seasonal b. Fraternal Order of Eagles #3525 ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission -1- 4. Library Commission 5. Parks &Recreation Commission 6. Planning &Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors &Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of December 15, 1999. ITEM F: ITEM G: CORRESPONDENCE OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1845-2000 -- Amending KMC 1.05.010 to Delete the Requirement for the City Manager to Hold Weekly Staff Meetings with Department Heads. 4. *Ordinance No. 1846-2000 -- Repealing and Eliminating References to the City Health Department in KMC 1.50.010-020 and 12.05.010. 5. *Ordinance No. 1847-2000 -- Repealing KMC 12.15 Relating to the City's Inspection and Permitting of Restaurants Within the City. 6. *Ordinance No. 1848-2000 -- Increasing Estimated Revenues and Appropriations by $4,350 in the General Fund for Investigative Equipment. 7. Approval -- Lease Agreement Between City of Kenai and the Department of Health &Social Services for Approximately 1,147 Square Feet of Office Space Located on the First Floor of the Kenai City Hall Building/ February 1, 2000 Through January 31, 2001/$776.70. 8. Discussion -- Emergency Operations Center/Possible Funding Grant from Federal Emergency Management Agency. -2- a ITEM I: 1. 2. 3. 4. 5. 6. 7. ITEM J: Discussion -- "Millennium Square" (FAA properties) ADMINISTRATION REPORTS Mayor City Manager Attorney City Clerk Finance Director Public Works Managers Airport Manager DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING JANUARY 5, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z f www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:00 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: Bannock, Frazer, Williams, Bookey, Swarner, Moore and Porter. A- 3 . AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: 1 SUBSTITUTE: H-2, Purchase Orders Over $2,500 -- Vendor for catering employee Appreciation Dinner now included. MOTION: 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 Mayor Williams noted he had no changes to the consent agenda. MOTION: Councilwoman Swarner MOVED for approval of the consent agenda as presented and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. � ITEM C: PUBLIC HEARINGS KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 2 C-1. Resolution No. 2000-1 -- Transferring $1,875 in the General Fund for Parks Department Water Service. MOTION: Councilman Bookey MOVED for approval of Resolution No. 2000-1 and Councilwoman Swarner SECONDED the motion. There were no public comments. Ross explained the funds being transferred would pay for January -June water service for watering parks based on the line sizes serving the various parks. He added, the amount represented one-half of a year's costs. He also noted the city's restrooms were already being billed to the General Fund, along with the greenhouse. Councilman Bannock asked if this represented one-half year of water use, would their be a $3,750 line item at budget time for the upcoming fiscal year. Ross answered a line item already was included in the Parks budget for utilities and approximately $3,750 would be added to it. Bannock asked, how could everything the city have be watered for $3,700 when the Peninsula Oilers were asked to pay $1,200 for the same amount of time. Ross stated, he had met with representatives of the Oilers several times. He added, if the Oilers isolate their restroom from their other watering (now they have a two-inch line serving everything), their annual bill would be $480. The restroom could be isolated through a meter and then they would pay on the restroom only during the months it was in service. Ross added, this was the same as the city's softball parks which the city pays approximately $1,000 based on line sizes and charge to the lines. He added, the city was charging itself $480 for its two-inch lines as well. Bannock stated he was not comfortable with the comparison and would not support the resolution as he felt it was "voodoo economics" by moving money from one fund to another. He added, he understood the perceived benefit, but not the real benefit in charging one fund to offset another fund unless as a result of the money going into the Water/Sewer Fund, an equal decrease would be shared among the 3,500 users. Williams stated he voiced his opinion earlier that he hoped there would be a way the Oilers issue ,could be worked out without having to charge them. He added, he didn't realize funds would be transferred to pay for city park utilities which, in forty years of operation, had not been done. Williams asked if an amended contract could be drawn up between the Oilers with the city precluding their need to pay for water. Ross answered their contract could be amended so that the city is the landlord and provide the lessee with utilities. He added, for budgeting purposes, there would still be a charge to it which would probably show up in the Parks Department utilities. Ross continued, all that would be done would be an increase to that line item to transfer KENAI CITY COUNCIL MEETING MINUTES } JANUARY 5, 2000 PAGE 3 the funds. If as a matter of policy, council determined that was how it should be handled, they would install a meter in the spring on the Oilers restroom in order to isolate the system and bill accordingly. Williams asked why the city would bill itself, even though he understood the difference between the two funds, and why start now after 40 years not billing itself. Ross answered, he didn't know why it had not been billed before. He noted, the city charges itself for the restrooms at its parks, the greenhouse, etc. The city pays the Water/ Sewer Fund approximately $35,000-$40,000 for water/ sewer services. He added, $1, 000 could be isolated out here and there and say it would make no difference to the ratepayer, but looking at all the funds paying for water/ sewer services and say government shouldn't pay for services to the other fund because it's a transfer, would raise the water/ sewer bill rate more significantly. Bookey stated he didn't want that to happen because it would put an unfair burden on the people using the water/ sewer services. Williams asked of what law or accounting procedure had the city been in violation over the last 40 years. Semmens answered, the accounting procedure was that each individual fund was a separate entity of itself. He added, it was separate people, separate revenue sources, and separate services being provided. In review of the question, he wondered why the city would pay for the restrooms and not for the water, etc. Williams stated he thought one of the reasons the city had greenstrips and parks was to have a cleaner community. He added, he asked council to table C-1 until they decide to bring it back, and at the sane time develop a new lease for the Oilers Park to see how it would apply to the resolution. Bookey stated, these were two different issues. He noted, in earlier conversations with the Oilers, he said an agreement could be made between them and the city. However, this was a different issue, bringing the procedures up-to-date with the ordinance. He added, the city had paid water/ sewer bills over the last 40 years (parks, airport, fire station, city hall, etc.) , however this was a glitch found that needed to be managed. Bookey stated he did not want the matter tabled. He added, the Oilers could come back to council for further discussion on their issue, but this was a separate issue. Councilman Frazer stated he felt the issue came to attention over the Oilers Park, i.e. transferring funds since it was found the Oilers had not been charged for the water/ sewer use at their Park. He asked if the Water/ Sewer Fund was reimbursed from another fund for the water used at the soccer fields and Middle School property. Councilwoman Swarner stated she would not support tabling the resolution as she felt the Water/Sewer Fund was a standalone entity and the city needed to pay for the services. Porter stated she was not in favor of tabling the resolution. She added, the Oilers was a private entity and the city was public. All the other departments had been paying and though it came to light over the Oilers issue, it was a mistake and was before council for correction. KENAI CITY COUNCIL MEETING MINUTES } JANUARY 5, 2000 PAGE 4 Bannock asked if the Water/ Sewer Fund was projected to balance for Fiscal Year 2000. Ross answered no as there would be a deficit. He added, within that budget there was a contingency budgeted and if it were spent, it would result in the deficit. Ross added the deficit was not significant. Bannock asked from where the deficit would come and Ross answered, from the Water/Sewer Fund. He added, it had its own fund balance that it carried. Bannock stated he would support the resolution if it could be shown to him there would be a readjustment from the transfer from one fund to the other. He stated, in summary, he understood that administration didn't want to overcharge a user paying $42.00 a month for water/ sewer for something for which the entire population of the city was receiving a benefit. He asked if there would be an equal offset to a user's water bill. Ross stated, the city does not try to make an adjustment in the water bill based on new houses coming on line, a business burning down, etc. He added, to try to adjust a fee schedule based on $3,700 in income would not work. Bannock stated, the core argument was the patented unfairness of the 3,500 users paying for something from which 7,000 receive benefit. He added, he believed administration's argument was poorly based if it was going to leverage the General Fund in principle, against the Water/ Sewer Fund, but as a one-way leverage. Ross stated if that comment was extended and it was decided government wouldn't need to pay for water/ sewer service, it would distribute a $40,000 difference. Ross continued, the ordinance states if you are hooked up to the system, you will receive a water/ sewer bill. By oversight, which Bannock pointed out, the city had not been paying for the watering of its fields. The resolution addressed that issue. It did not address the Oiler issue and they would receive a bill. If council then chooses to amend the Oilers' lease and have the landlord pay the water/ sewer costs, it was a separate issue. Bannock stated, simply put there could be a greater problem. He added, the problem of not paying water/ sewer charges over the last 40 years or in the next 40 years probably would not be able to be solved by the resolution. Until a grip could be placed on the entire issue, he would not support the resolution. MOTION: Councilman Bannock MOVED to table Resolution No. 2000-1 and Councilman Frazer SECONDED the motion. There were objections from four council members and the motion failed. Councilman Bookey called for the question on the original motion. VOTE ON THE ORIGINAL MOTION: KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 5 Bannock: No Frazer: No Williams: No Bookey: Yes Swarner: Yes Moore: Yes Porter: Yes MOTION PASSED. C-2. Resolution No. 2000-2 -- Adopting the City of Kenai, Alaska 2000-2001 Capital Improvement Project (CIP) Priority List for Request of State Grants. MOTION: Councilwoman Porter MOVED for approval of Resolution No. 2000-2 and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. Swarner suggested removal of "Remodel City Hall" from the list because if the state was in financial straights, she didn't think it was appropriate to request funds to remodel the building. Ross explained, the list from last year was used and the only change was placing the water/ sewer projects at the top of the list. He noted, extra points would be received from DEC if those projects were given the highest priority. MOTION TO AMEND: Councilwoman Swarner MOVED to delete Remodel of City Hall from the list and Councilman Bookey SECONDED the motion. Bookey asked if taking the item from the list would make a difference. Ross answered, no. He noted, the list had to be forwarded to the Borough the next day. VOTE ON AMENDMENT: There were no objections. SO ORDERED. VOTE ON MAIN AMENDED MOTION: There were no objections. SO ORDERED. C-3. Resolution No. 2000-3 -- Supporting Legislation for Mortgage Loans Covered Under the Alaska Housing Finance Corporation Housing Assistance Program to be Equal Among All Geographic Areas of Alaska Within the Specifications of the Funding Program. KENAI CITY COUNCIL MEETING MINUTES I JANUARY 5, 2000 PAGE 6 MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 200-3 and Councilman Moore SECONDED the motion. Williams stated he would open the floor to public hearing, but would ask council to table the resolution until the January 19, 2000 meeting. He noted, he spoke with the director of the Alaska Housing Finance Corporation who was unable to attend this meeting, but would like to speak to council on the matter at the January 19 meeting. Williams added, he believed the director would have some suggestions for wording in the resolution, especially about the differential rate. He noted, additional public comments would be taken at the January 19 meeting. Jill Lipka -- 1802 Miranda, Kenai. Lipka explained, when she and her family were buying their home in October, they looked both inside and outside the city. They chose a home inside the city, although their house payment was approximately $91 a month higher because of the 1% interest rate differential. She added, over the life of the loan, the difference was about $32,000. Lipka added, the one percent was very important. Swarner requested Lipka to speak to the resolution at the next council meeting when the director was present. She noted, in her discussion with the director, he stated the one percent was not an issue. Lipka stated the one percent was a huge factor and a great deal of money to some. She asked why the different rate was established. Williams reviewed the wording of the bills and minutes of the legislative committee and suggested it could have been because no one objected on the committee level. Williams added, he believed the council was on the right track to say the one percent difference in interest rate was unfair. MOTION TO TABLE: Councilwoman Porter MOVED to table the resolution until the next council meeting and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. C-4. Applications for Renewal of Liquor License -- C-4-a. Kenai Golf Course Cafe -- Restaurant/ Eating Place - Seasonal C-4-b. Fraternal Order of Eagles #3525 Approved by consent agenda. BREAK TAKEN: 7:44 P.M. BACK TO ORDER: 8:05 P.M. � (During the break, council reviewed a video submitted by McMurren 8v Goodman, Inc. about Peak Oilfield Service. The submission was to inform council of McMurren & - KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 7 Goodman's expertise in developing videos. Williams noted, the video was submitted in regard to the possibility of the city updating and developing a new city video. He added, any other company wanting videos reviewed would be given the same opportunity.) ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- No report. D-2. Airport Commission -- Councilman Frazer reported the next meeting was scheduled for January 13 at 7:00 p.m. in the council chambers. D-3. Harbor Commission -- Councilman Bookey reported the next meeting would be held on Monday, January 10 at 7:00 p.m. in the council chambers. D-4. Library Commission -- Councilman Moore reported a brief meeting was held on January 4 at which it was reported the Library Open House was a success and a report on the school library survey was given. He noted, good responses were being received. Moore also reported Bob Peters and Lorene Forbes were elected chair and vice chair. D-5. Parks & Recreation Commission -- Councilman Frazer reported the next meeting was scheduled for January 6 at 7 p.m. in the council chambers. Williams questioned why the Parks &. Recreation Department was advertising for part- time summer hires in January. Ross explained, the summer -hire positions were advertised during the holidays to allow college and high school students to apply. D-6. Planning & Zoning Commission -- Councilman Bannock reported no meeting had been held since council's last meeting. He noted, the next meeting was scheduled for January 12 and the Commission would be reviewing suggested changes to the code which were referred to them by council. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the next meeting would be held January 11 at 5:30 p.m. in the council chambers. D-7b. Historic District Board -- Moore reported the next meeting was scheduled for January 17 at 7:00 p.m. in the council chambers. D-7c. Kenai Visitors & Convention Bureau Board -- Bookey reported a meeting was held on December 16 at which a new employee handbook was approved. He noted, the handbook was much like the city's and he was disappointed with what was done because he believed it would put their budgets in a position where there KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 8 could be problems in the future. Bookey also reported an election for new members of the board was held. The new members were Joe Arness, Dan Van Zee, and Rebecca Cronkhite (Kenai Airport Manager) . D-7d. Alaska Municipal League Report -- Williams reported he would be attending meetings of the Alaska Conference of Mayors and the AML Legislative Committee during the week of January 24. TTFM F- MTNTTTrq E-1, Regular Meeting of December 15, 1999. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED, H-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Bookey MOVED to approve the Substitute Purchase Orders Exceeding $2,500 and Councilwoman Porter SECONDED the motion. There were no objections. SO ORDERED. H-3, Ordinance No. 1845-2000 -- Amending KMC 1.05.010 to Delete the Requirement for the City Manager to Hold Weekly Staff Meetings with Department Heads. Introduced by consent agenda. H-4. Ordinance No. 1846-2000 -- Repealing and Eliminating References to the City Health Department in KMC 1.50.010-020 and 12.05.010. KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 9 Introduced by consent agenda. H-5. Ordinance No. 1847-2000 -- Repealing KMC 12.15 Relating to the City's Inspection and Permitting of Restaurants Within the City. Introduced by consent agenda. H-6. Ordinance No. 1848-2000 -- Increasing Estimated Revenues and Appropriations by $4,350 in the General Fund for Investigative Equipment. Introduced by consent agenda. H-7. Approval -- Lease Agreement Between City of Kenai and the Department of Health Social Services for Approximately 1,147 Square Feet of Office Space Located on the First Floor of the Kenai City Hall Building/ February 1, 2000 Through January 31, 2001 / $776.70 . Ross referred to the information included in the packet and noted, the city would be working with Health 8. Social Services on an annual basis until the new health facility was on line. He added, this lease would cover until they move out of the city hall building. MOTION: Councilwoman Swarner MOVED to approve the City of Kenai entering into a new agreement for the period February 1, 2000 through January 31, 2001 at the current rate of $776.70 a month. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-8. Discussion -- Emergency Operations Center/Possible Funding Grant from Federal Emergency Management Agency. Ross referred to the information included in the packet. He explained, when FEMA Director James Lee Witt was in Kenai in July, he toured the ARFF and discussed its use as an Emergency Operations Center (EOC) and potential training site. He requested a letter be forwarded to him with letters of support if the city was interested in pursuing the potential use of the facility. Ross noted, the draft letter and letters of support were included in the packet and they would be forwarded to Witt to see what he may have in mind, what level of funding may be available and what local in -kind funding would be required. Swarner asked why the letter had not been forwarded earlier and Ross explained the Fire Department personnel had been gathering accurate cost information of what KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 10 would be needed to fully equip the facility and letters of support. Williams added, Witt's budget preparation for the next fiscal year was just beginning and he believed forwarding the information now was good timing. Council had no objections to sending the letters. H-9. Discussion -- "Millennium Square" (FAA properties) Williams referred to the copy of the new plat of FAA/ City properties along the bluff. He noted, the 20-acre tract of land was the most valuable piece of property left in the city and suggested a plan be developed to define how the property will be used. He suggested the name for the property could be "Millennium Square." Williams suggested some interest had been stated to place a hotel/ convention center there, as well as a Little Theatre. He also suggested smaller lots could be planned for individual businesses. Williams requested a joint meeting be held between the council, Planning & Zoning Commission, Kenai Chamber, and KVCC to develop a list of suggested uses for the property. He suggested some costs may be involved in developing the plan for the property and that grant monies may be available. Williams added, he believed the time was right to plan the property use and council should move ahead with the program. Bookey stated he didn't object to developing a plan but would object to subdividing the property. He added, he agreed it was the last major parcel of property in the city and major input from the community should be gathered for its development and believed it would take some time to create the plan. Williams agreed the property wouldn't be subdivided at this time. He noted, there were concerns about contamination and the issue of cost for clean-up was still being studied. He suggested the plan could be drafted but not recorded until it was seen what interest would be received from those considering purchase of portions of the property for development. It was noted one piece of the property was owned by the Orthodox Church and the other was still owned by the FAA. Ross added, the FAA property was in the process of being transferred to the city and at this time the property was in three specific parcels. There were no objections from council to begin measures to plan the future use of the properties. ITEM I: ADMINISTRATION REPORTS I-1. Mayor KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 11 a. Juvenile Detention Center -- Williams noted a letter from the HSS Division of Juvenile Justice was included in the packet. The letter referred to his letter sent upon the notification that Kenai was chosen as the site for the new Juvenile Youth Detention Facility. b. AML/JIA Insurance Donation -- Williams referred to a letter received from AML/JIA to the Kenai Fire Training Center, forwarding a check for $5,000 to be used toward training and enrollment costs for continuing education of municipal fire fighters around the state. c. Economic Development District -- Williams reported it appeared another candidate for the director position of the EDD had been found and he hoped it would work out. d. Gas Pipeline Project -- Williams reported he attended another meeting in regard to the project. Preliminary guidelines under which they would operate were worked out. Administration was directed to begin developing the Power Point presentation to be used. He added, he believed a hard -copy log would be developed as presentations are made, as well as brochures and CD roms. Williams noted, their deadline for development of the presentation was in time for the oil and gas construction conference in Anchorage, February 15 and 16. He added, at the conference, the presentation would be made and a round -table discussion would follow. Williams reported they were working closely with the BP/ARCO, Phillips Petroleum, Marathon Oil, Foothills Pipeline and Marabini. He noted, the other group vying for the pipeline owned no gas, owned no ships, had no experience, had no clients to purchase, etc. The Peninsula's involvement included the ownership of gas, ships, experience, LNG facilities, pipelines and were experienced in marketing the Southeast Asia market. Williams also reported there could be two projects developed with a spur going through Canada, tying into the Trans -Canada line and delivering gas to Chicago. He added, they had been assured that should that proceed, there would be room for both projects. As a side note, they discussed a separate program called the GTL project in which gas molecules are rearranged and made into white crude is then transported as a liquid. He added, BP planned to put a pilot plant on the North Slope, producing about 300 barrels a day of GTLs. The pipeline group suggested to BP the pilot plant be placed in Nikiski since they were assuming all of the responsibility of ARCOs holdings in the Inlet. Reasons to put it in this area would be it wouldn't be as expensive to run as it would be in Prudhoe Bay and because sufficient gas supplies would be available to feed a pilot plant. He noted, having the pilot plant in Nikiski would give BP another reason to have a presence in the community and desire to bring the pipeline to Nikiski. KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 12 Williams reported, decisions would be made in August or September as to whether to put another $20 million into the project for studies. He noted, there would be a lot of adverse comments about permitting, i.e. the other group doesn't have permits and cost of permitting in Nikiski would be as viable as the cost of permitting for the other group, and the distance from Prudhoe Bay and Kenai or Valdez were comparable. e. Time Capsules -- Williams referred to a conversation he had recently regarding time capsules and what he would put in one. He asked council if they would be interested in putting together a time capsule that could be opened in 50 years. A general discussion followed. It was decided council, employees and citizens, could bring some ideas to the next council meeting of what could be placed in a time capsule. I-2. City Manager a. Kenai Coastal Trail/Bluff Erosion Project -- Ross reported he would not be attending the workshop scheduled for January 11 due to a strategic planning committee meeting for the hospital regarding the new health center. b. Inlet Woods -- Ross reported, information would be forwarded to the Planning & Zoning Commission to consider whether the lots were needed for public purpose, as well as the Parks & Recreation Commission as there could be area for a park. He noted, after those considerations were made, the question would come to council, with a recommendation from administration as to how to dispose of the lots. He added, the direction now being considered would be to get an appraisal of selective lots which would get a maximum return, protect the values of current homeowners in the subdivision, and not flood the market with cheap lots and hurt the market. Ross added, administration was considering using the same process as used in the sale of lots previously, i.e. going to public sale of lots with public utilities and sell those that do not sell at the initial sale, over the years at their appraised value. He noted, a plan had not been formulated for the sale of the lots in the back of the subdivision that did not have full utilities. He added, those could be more amenable by going out to a developer. Porter asked if the covenants now in place in that subdivision would continue to be in place. Ross answered yes. He added, it was administration's intention to carry the current covenants over as part of the sale. Ross explained, in checking with Attorney Graves, they agreed the Inlet Woods lots were not a part of the lands of the city and the revenues generated from the sale would not have to go to the Land Trust System. He added, because the General Fund supported the Inlet Woods situation for the past ten years, revenues received would be KENAI CITY COUNCIL MEETING MINUTES 1 JANUARY 5, 2000 PAGE 13 recorded as revenues in the year received to assist the General Fund taxpayers. Ross noted, the issue was the settlement of a lawsuit and that would be how the revenues would be handled. c. Y2K Issue -- Ross reported there were no problems other than a small problem with the ambulance report software. Swarner noted she saw the Coastal Trail workshop advertisement in the paper and asked if postcard notices had been mailed and/or received. Public Works Manager Kornelis reported he spoke with the engineer and was told 240 postcards had been sent out on January 3. He noted, the city sent notices to the property owners north of the mouth of the river. One was sent to the city and it was received. Swarner stated, radio public service announcements should start immediately. I-3, Attorney -- No report. I-4. City Clerk -- No report. I-5, Finance Director -- No report. Williams noted he received a mill rate comparison from Finance Director Semmens. He added, he wanted the information available for the banking and real estate community. Williams added, the upcoming proposition on the state ballot would be asking for the mill rate to be capped at ten. Several points being argued in that regard was whether the cost of bonding would be included in the cap. He continued, the cap would severely interfere with some communities. Williams reported, in his review of the legislation creating the funding authority for the Alaska Housing Finance Corporation, he found information which allowed the corporation to issue bonds not to exceed $30 million to fund senior housing loans. He added, this opened up a possible funding source for an addition to the city's senior housing. He noted plans were already drawn. Williams requested Semmens and Ross to investigate the issue more, checking out the amortization schedule based on the interest rate they would allow, determine whether it would be feasible to add 20 units to the current project, and what the city's obligations would be. It was noted there were several vacancies at the housing project and authorization had been requested to advertise the vacancies in the paper because those on the waiting list were not filling the vacancies. Williams noted, he was aware there was a large amount of vacancies in the rental community, but it was something to look toward for the future. Ross agreed it may not be the best time to make an effort to increase the number of housing with the high occupancy rates for rentals in the area. Williams explained the reason he brought it up was that in the past the city had been told it could not support the amortization of a loan and cash would be needed to build an addition. He added, he wanted to find out what the interest rate would be and if KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 14 the city was yet in a position to support the amortization of a long-term loan. Porter noted, there could be something attached to the funding available that would allow some of the units to be assisted living which was very much needed in the community and that need would not go away. She added, investigation of the possibilities was an excellent idea. I-6, Public Works Managers -- No reports. I-7, Airport Manager -- No report. Bookey explained he had a constituent come to him upset because he thought there was a new three percent tax placed on airplanes parked at the airport. He added, he told the person that was not so, but the person was referring to the personal property tax on airplanes which was not being charged in other areas of the borough. The person told him approximately 15 airplanes left their tie -downs at the airport. Bookey asked if that was accurate. Airport Manager Cronkhite explained there had been approximately five or six tenants complain. In reviewing the records, it was found four tenants who stated they left because of the tax and two of those returned. She added, administration believed there were approximately four or five who pulled out of their tie -down spaces. No new tax was added. Ross reported there had been an ad in the newspaper of someone who was concerned there was a three percent tax and some thought it was a new tax and others thought it was a current tax. He noted, they were really paying 3 / 10 of a percent. Ross added, there are those who move their planes off the airport during the winter due to the wind. Another moved his plane, but brought it back again because of security availability. ITEM J: DISCUSSION J-11 Citizens -- None. J-2, Council Bookey -- Reported he visited the multi -purpose facility late one night and was concerned all the lights were on in the facility and no one was there. He asked if there was some plan to modify the lighting with a motion sensor, so all the lights wouldn't be on when the facility was not being used. Public Works Manager La Shot explained they were investigating that issue and a purchase order. approved earlier would place two photocell night lights at the facility. Bookey stated the rink looked nice and the ice looked good. Williams noted the other warm-up shed was ready to place at the facility as well. KENAI CITY COUNCIL MEETING MINUTES JANUARY 5, 2000 PAGE 15 Swarner -- Reported she also visited the rink when all the lights were on and the ice looked good. It was also reported the ice had been marked. Swarner requested plants be sent to the area legislators in Juneau for the beginning of the session. There were no objections. Moore -- No report. Porter -- Reported she had been attending the Employee Appreciation Dinner Committee planning sessions. She noted the committee members had some concerns they needed addressed by council. She distributed a flyer to the council members addressing the issues and asked if there were questions to see her or the Clerk. Porter also noted that traditionally council had approved a door prize giving a day off with pay compliments of the city. She requested council to approve the prize if they had no obj ections. MOTION: Councilwoman Swarner MOVED to approve a day off with pay as a door prize for the Employee Appreciation Dinner and requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. Bannock -- Thanked the road crews for the last several weeks' work as they did an outstanding job in removing the large amount of snow. Frazer -- No comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 9 :10 p.m. Minutes transcribed and prepared by: e-'e�x, "6; ",/ Carol L. Freas, City Clerk aMovS By HtK e��