HomeMy WebLinkAbout2000-01-19 Council MinutesAGENDA
KENAI CITY COUNCIL - REGULAR MEETING
JANUARY 19, 2000
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
htt-p: Z /wvwv.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. Mark Schrag -- Appointments to Commissions, Committees and Boards
ITEM C: PUBLIC HEARINGS
1. 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.
2. Ordinance No. 1846-2000 -- Repealing and Eliminating References to
the City Health Department in KMC 1.50.010-020 and 12.05.010.
3. Ordinance No. 1847-2000 -- Repealing KMC 12.15 Relating to the City's
Inspection and Permitting of Restaurants Within the City.
4. Ordinance No. 1848-2000 -- Increasing Estimated Revenues and
Appropriations by $4,350 in the General Fund for Investigative
Equipment.
5. 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.
a. Remove from table.
b. Consideration of Resolution No. 2000-3.
6. Resolution No. 2000-4 -- Transferring $3,400 in the Water and Sewer
Special Revenue Fund to Replace the Sewer Treatment Plant Deionization
System.
7. *2000 Continued Operation of Liquor Licenses
Kenai Joe's Don Jose's Restaurant & Cantina
Pizza Paradisos The Rainbow Bar
BPO Elks Lodge #2425 Peninsula Moose Lodge # 1942
Oaken Keg Spirit Shop #58 Kmart Liquor
Eadies Frontier Liquor Peninsula Oilers
ITEM D: COMMISSION/ COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks 8. Recreation Commission
6. Planning 8v Zoning Commission
7. Miscellaneous Commissions and Committees
a. Beautification Committee
b. Historic District Board
C. Kenai Visitors 8. Convention Bureau Board
d. Alaska Municipal League Report
ITEM E: MTNTITES
1. *Regular Meeting of January 5, 2000.
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. 1849-2000 -- Finding That Certain City -Owned Lands
Located in Inlet Woods Subdivision, As Shown on the Attached Exhibits
A and B, Are Not Required for a Public Purpose.
4. Approval -- Airport Terminal Car Rental Counter Space
a. Space Remodel
b. Revising Lease Documents
5. Approval -- Amendment to Lease/NW 1/4 of Government Lot 4, Section 3,
TSN, R 11 W, Seward Meridian - Kenai Peninsula Oilers Baseball Club,
Inc.
6. Discussion -- Council Policy/ Work Sessions for Commissions and
Committees.
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
JANUARY 19 2000
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
h-/ /www.ci.kenai.ak.us
MAYOR JOHN J. WILLIAMS, PRESIDING
ITEM A: CALL TO ORDER
Mayor Williams called the meeting to order at approximately 7:02 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: Frazer, Williams, Bookey, Swarner,
Moore, Porter and Bannock.
� A-3.
AGENDA APPROVAL
Mayor Williams requested the following changes to the agenda:
ADD TO: D-2, Christopher G. Copple application for appointment to Airport
Commission.
D-7a, Ficola Wilson application for appointment to the Council on
Aging
SUBSTITUTE: H-2, Purchase Orders Over $2,500 -- (Substitute List includes
Kenai Auto and Honeywell purchase orders.)
Williams also requested to hear C-5 before C-1.
MOTION:
Councilwoman Swarner MOVED for approval of the amended agenda and Councilman
Bookey SECONDED the motion. There were no objections. SO ORDERED,
A-49 CONSENT AGENDA
Mayor Williams noted he had no changes to the consent agenda.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19 2000
PAGE 2
MOTION:
Councilwoman Swarner MOVED to approve the consent agenda as presented and
Councilman Bookey SECONDED the motion. There were no objections. SO
ORDERED,
ITEM B: SCHEDULED PUBLIC COMMENTS
B-1, Mark Schrag -- Appointments to Commissions, Committees and Boards
Schrag stated his address as 312 Princess Lane, Kenai. Schrag explained he was
speaking to council in order to answer a letter from the city asking whether he was
still interested in consideration of an appointment to the Planning & Zoning
Commission. He noted, he understood the letter was a formality, but he was not
interested in being just a formality.
Schrag stated he was not interested in remaining on the list at this time. He added,
over a year ago council told him and five or six others that council was not interested
in having them serve on the Planning 8. Zoning Commission. The seat was left open
for a year which, in essence, told them they were worth less than zero. Schrag noted,
a newspaper article stated they didn't have the right philosophy. He added, the people
who had applied were good people and qualified. Though there were reasons to
appoint or not appoint someone, he added, he felt philosophy was low on the list.
Schrag continued, people who live in the city did not have one philosophy and asked
why only allow people with a certain philosophy represented on an important
commission. He noted, it drained a person's energy to volunteer your services and be
told the council would rather have nobody than fill the position with the applicants.
Schrag stated he recently saw an advertisement requesting volunteers on
commissions, committees, etc. He added, he believed to be fair to the citizens, all
qualifications and restrictions should be advertised as well so people wouldn't waste
their time to become a formality. Schrag requested council give serious thought to his
comments.
ITEM C: PUBLIC HEARINGS
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 3
C-5. 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.
C-5-a. Remove from table.
MOTION:
Councilman Moore MOVED remove Resolution No. 2000-3 from the table and
Councilman Bookey SECONDED the motion. There were no objections. SO
ORDERED.
C-5-b. Consideration of Resolution No. 2000-3.
MOTION:
Councilman Moore MOVED for approval of Resolution No. 2000-3 and Councilman
Bannock SECONDED the motion.
Williams noted there were local realtors as well as representatives from the Alaska
Housing Finance Corporation (AHFC) in the audience to speak to the resolution.
Daniel R. Fauske, CEO/Executive Director of AHFC -- Fauske thanked council for
delaying action on the resolution and distributed some handouts with information
regarding rural lending issues, AHFC loan activity on the Kenai Peninsula (1997
through 1999), and conceptual changes to the Rural Loan Program.
Fauske explained AHFC's Rural Mortgage Loan Program was developed in 1979 and
the loan fund was purchased by AHFC in 1992 as part of legislation merging the
housing functions of DCRA into AHFC. Qualifications and guidelines were established
under state law which, he noted, was different from most loan programs where
qualifications and interest rates were set according to bonds issued to fund the
program.
Fauske continued, under state law, small communities with a population less than
6,500 not connected by road, and communities with less than 1,600 and connected by
road, qualify for the program and the law states the interest rate for the program
would be one percent (1%) below the taxable loan rate. He added, Senate Bill 150 was
introduced last year in an effort to completely repeal the one percent interest rate
differential. He noted, the bill was currently pending in the Senate Finance Committee
and was largely being pushed as an issue of equity. Fauske added, AHFC did not
believe their program was negatively impacting the local market when compared to the
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 4
interest rates of all home loan programs. He noted there were some AHFC program
interest rates lower than the Rural Loan Program was currently. He added, their
information showed there was no more loan activity inside the city than outside the
city.
Fauske stated they believed the best approach would be to expand and not eliminate
the opportunity for housing development. In reviewing Resolution No. 2000-3, they
believed some of the language in the resolution could potentially be used to support
existing legislation that would completely eliminate the program. He continued, the
Rural Loan Program was not bond funded and in order to fund the program with
bonds, some of the parameters of the program would need changing in order for the
bonds to be rated. Also, if a change were to be made in the program, they would like
to base the definition of rural on the USDA definition which classified everything
outside of Anchorage, Juneau and Fairbanks as rural. He added, they didn't want to
be doing anything that would cause harm to the Kenai market. Fauske stated he
didn't want to see SB 150 pass because the elimination of the rural program would be
devastating to rural Alaska as well as the corporation. He added, he wanted to find a
way to make the program more equitable, expand their business base, and eliminate
any concerns that the loan program was disrupting the market in Kenai.
Williams stated it was not council's intention to cause any of the programs to be
eliminated or diminished. He noted, the primary body of the resolution spoke to
eliminate the preferential interest rate between outside and inside municipalities. He
added, in discussions with him, a point was made that it wasn't necessarily the
amortization of the loan that caused people to buy outside a municipality than inside.
However, the amenities to the size of the house or the living comfort made a difference
and it represented a disadvantage to the city if that home could be built outside the
city for less than it could inside the city. Williams added, he wasn't sure that people
who bought homes outside the city clearly understood the ramifications of costs when
factoring in taxes, public services (fire, ambulance, etc.), insurance, etc. Those items,
added to the mortgage, would offset the one percent differential.
Fauske noted he did not mean the resolution was directed at elimination of the
program. He clarified, during the last legislative session, a legislator commented the
loan program was causing harm in communities in Alaska. He added, they supported
the rural and the expanded rural, but there were costs associated with it and they
were willing to discuss those concerns.
Dave Feeken -- Stated his address as 37295 Cetacea Lane, Kenai and that he was
representing the Kenai Peninsula Association of Realtors and Alaska Association of
Realtors. He added, because the Alaska Association of Realtors had taken no action
on the resolve of the one percent issue, he introduced a motion last year at a
legislative meeting at the Alaska Association of Realtors to eliminate the rural
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 5
program. The outcome of the motion was that the Alaska Association of Realtors did
not support SB 150 and was in favor of the rural housing program being expanded to
include the city limits of Kenai, Soldotna, Homer, Kodiak, Sitka and Ketchikan
through the modification of the definition of a rural community. This would be done
by changing the population limits to 8,000 where roads existed and 11,000 where
there were no roads. He added, that was the Association's position at the end of the
last legislative session and continued to be their position. Feeken added, the
Association would be attempting to modify SB 150 to reflect those changes.
Feeken continued, analyzing of markets involved creating a ratio from how many
houses sold in a year and how many were on the market. He discussed concerns of
the markets on the Peninsula and the economy in the areas if the one percent was to
change. Another item to review, he noted, was that 10% to 15% of the current market
represented foreclosed homes. He added, two other lower interest loans included first-
time home buyers and military personnel out of the service for less than 30 years
which had specific criteria. Feeken added, anyone could qualify for a rural housing
loan if they lived outside a city. Feeken stated he supported a lot of the loan programs
of the AHFC, but if the rural loan program caused one of the houses to go into
foreclosure, the owner would be strapped with credit problems for the remainder of his
life.
Fauske stated they were opposed to expanding the program to 8,000 and 12,000 only
because they didn't think the revolving loan fund could absorb it. The discussion
continued, wherein comments and concerns were expressed about the inventory of
homes on the market as well as the amount of lots now available in the city on which
homes could be built. Because there was now an inventory of lots available in the
city, a differential could cause the city not to be able to compete against an area
outside the city's boundaries. Discussion also followed regarding the cash position of
the AHFC.
Frazer asked what the chance was for redefining the population issue and would it fit
to exclude Anchorage, Fairbanks and Juneau. Fauske stated it would, population
wise, but there were still areas that were defined as a distance from Anchorage, etc.
Frazer asked if the redefinition was tied into SB 150. Fauske answered no, and
added, SB 150 would eliminate the program. Frazer asked if it was realistic to think
the definition of rural would be changed. Fauske answered, he believed the board
would agree with it, however the change would have to be approved by the Legislature.
He added, with enough communities gathering on the fact that revenue sharing, etc.
were declining, the idea of expanding and protecting the real estate or tax base was a
compelling argument.
Frazer asked if it would be wiser for the resolution to be specifically directed to the
population portion in order to include Kenai, Soldotna, etc. as a rural area. Fauske
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 6
stated he was concerned that the population would be changed without structuring
the program to successfully enter the bond market so the program can be funded.
Swarner asked if Fauske had any suggested changes for the resolution.
John Bittney -- Legislative Liaison for AHFC. Bittney stated the most concerning
language was the "resolved" paragraph where it supported legislation to create equality
in financing among geographic areas. He added, they were concerned that language
could be used to support the current SB 150 (by repealing the program, it would
create equality) . Swarner noted that was not the council's intent. Additionally,
Swarner noted, council did not want to tie their resolution to any particular legislation
in case other legislation would be introduced.
Dave Feeken -- Stated he spoke with Senator Torgerson and Representative Smalley
and they were in agreement with changing the population limits and they felt getting
the changes through the Senate Finance Committee was a good place to start the
process. Feeken added, he requested the legislators to introduce an amendment to
that effect.
Williams suggested a break be taken after any additional public comments and during
the break Fauske and Bittney could make recommendations for amendments to the
resolution to Swarner. After the recess, amendments to the resolution could then be
considered by council.
Debbie Sonberg -- 410 Cinderella, Kenai. Sonberg noted, Williams had stated in the
past that he believed the population of Kenai was more than noted in the state's
revenue sharing population and asked when Williams thought the city population
would exceed 8,000. She noted, Kenai could be back in the same situation it was now
in if the rural definition was changed to 8,000. Williams stated he believed Senator
Torgerson would prefer the number be set at 10,000.
Dave Keating -- Broker/ Owner of Freedom Realty and Freedom Mortgage. Keating
stated he had been a realtor in the area for 30 years and this year served as president
of the Kenai Realtors Board. He noted another area of concern was the Legislature's
desire to get back in control of Alaska Housing. Keating stated, in the 1970's he and
others worked very hard to get Alaska Housing developed in order for the people of
Alaska to have adequate financing for sale and purchase of homes. He cautioned
council to keep an eye on the Legislature and not let them get control back of AHFC.
BREAK TAKEN: 8:00 P.M.
BACK TO ORDER: 8:16 P.M.
MOTION TO AMEND:
KENAI CITY COUNCIL MEETING MINUTES
� JANUARY 19, 2000
PAGE 7
Councilwoman Swarner MOVED to amend Resolution No. 2000-3 in the second
whereas, changing "existing legislation" to "state law"; the third whereas, changing
"this discrimination and type of regulation" to "this program"; and in the Now
Therefore paragraph, inserting "by redefining the definition of small communities to
mirror USDA/ Rural Development's definition." Councilman Moore SECONDED the
motion.
VOTE ON AMENDMENT:
Councilwoman Swarner requested UNANIMOUS CONSENT on the amendment. There
were no objections. SO ORDERED.
VOTE ON MAIN AMENDED MOTION:
Councilwoman Swarner requested UNANIMOUS CONSENT on the main amended
motion. There were no objections. SO ORDERED.
C-1. 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.
MOTION:
Councilwoman Swarner MOVED for adoption of Ordinance No. 1845-2000 and
Councilman Moore SECONDED the motion.
City Manager Ross explained the ordinance was one of those to come forward to
council in an effort to update portions of the city code. He noted, in his history with
the city, weekly staff meetings were never held. Currently, Ross added, the staff meets
twice monthly prior to council meetings in order to review the packets, etc. Ross
supported the amendment of the ordinance.
There were no public comments.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
No
MOTION PASSED.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19 2000
PAGE 8
C-2., Ordinance No. 1846-2000 -- Repealing and Eliminating References to
the City Health Department in KMC 1.50.010-020 and 12.05.010.
MOTION:
Councilwoman Swarner MOVED for adoption of Ordinance No. 1846-2000 and
Councilwoman Porter SECONDED the motion.
There were no public comments. Williams stated, amending the ordinance would put
everyone on notice that the city was not in the health department business and didn't
intend to be in it. Ross added, the ordinance was also one of those brought forward to
update the code. He added, this section had been included in the code for 30 years,
though there had never been utilized.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
Yes
MOTION PASSED UNANIMOUSLY.
C-3, Ordinance No. 1847-2000 -- Repealing KMC 12.15 Relating to the City's
Inspection and Permitting of Restaurants Within the City.
MOTION:
Councilwoman Porter MOVED to adoption Ordinance No. 1847-2000 and
Councilwoman Swarner SECONDED the motion.
Amy Jackman -- Jackman noted her address as 1505 Fathom Drive, Kenai.
Jackman asked who would be inspecting and permitting restaurants to keep residents
of the city safe. Williams explained, the responsibility of the public health rested with
the State of Alaska. He added, most municipalities were trying to shed issues
rightfully belonging to the state because the state, due to budget issues, had been
transferring responsibilities to municipalities. Williams stated, if the city eliminated
reference to this service from the code, it would not be able to take on the
responsibility if the state tried to push it off to the city.
Jackman asked what would be the procedure if there was a problem, would the city go
to the state on its own. Williams answered, the Department of Environmental
Conservation had the responsibility for over 30 years, but would be making fewer
inspections, etc. due to budget constraints. He added, he was not aware of how the
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 9
program would be handled, but citizens needed to learn about restaurants before
going to them and if there were a problem, they should report it to the DEC.
Bannock stated he spoke with a representative from DEC who did the inspections and
was told the city's eliminating the section of the code was a good idea as the state
would be looking for these types of areas in municipalities' codes in order to turn over
some of their responsibilities. If the code did not speak to the task, the responsibility
would have to stay with the state.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
Yes
MOTION PASSED UNANIMOUSLY.
C-4, Ordinance No. 1848-2000 -- Increasing Estimated Revenues and
Appropriations by $4,350 in the General Fund for Investigative
Equipment.
Williams explained the increase was being made from funds seized in an investigation.
It was noted, the Police Department recently seized a pick-up truck as well.
MOTION:
Councilman Bookey MOVED for adoption of Ordinance No. 1848-2000 and
Councilwoman Swarner SECONDED the motion.
There were no public or council comments.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
Yes
MOTION PASSED UNANIMOUSLY.
C-6. Resolution No. 2000-4 -- Transferring $3,400 in the Water and Sewer
Special Revenue Fund to Replace the Sewer Treatment Plant Deionization
System.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19 2000
PAGE 10
MOTION:
Councilwoman Swarner MOVED for approval of Resolution No. 2000-4 and requested
UNANIMOUS CONSENT. Councilman Frazer SECONDED the motion.
There were no public or council comments.
VOTE:
There were no objections. SO ORDERED,
C-7, 2000 Continued Operation of Liquor Licenses
Kenai Joe's Don Jose's Restaurant & Cantina
Pizza Paradisos The Rainbow Bar
BPO Elks Lodge #2425 Peninsula Moose Lodge # 1942
Oaken Keg Spirit Shop #58 Kmart Liquor
Eadies Frontier Liquor Peninsula Oilers
Approved by consent agenda.
ITEM D: COMMISSION/ COMMITTEE REPORTS
D-1. Council on Aging -- Porter reported no meeting had been held recently.
She noted there were two vacancies on the Council on Aging and that there were
several applications included in the packet from which appointments could be made.
Porter recommended Dick Fields and Fiocla Wilson as both had been participants of
the senior programs for years, Wilson was a member of the Council in the past, and
Fields lived at Vintage Pointe.
There were no objections to the appointment of Fields and Wilson to the Council on
Aging. It was noted, a letter would be sent to the other applicants to tell them their
applications would be kept on file for future consideration.
D-2. Airport Commission -- Swarner reported a meeting was held on
January 13 at which the Commission discussed the personal property tax on
airplanes and the airport terminal carpet replacement. Swarner added, a committee
was requested to review carpet costs, samples, colors, etc. and make a
recommendation to the Commission. Members of the committee would be Swarner
(chair), Dan Van Zee (Airport Commission representative), Dottie Fischer (Alaska Best
Travel), Judy Erickson (ERA Airlines), Gary Schnelting (Wings Cafe) and one other
council member. There were no objections to the setting a committee.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 11
Swarner also reported there were two vacancies on the Commission; one seat
designated as CAP and one designated as FAA. She noted, a suggestion would be to
change Commissioner Knackstedt's seat designation as the CAP representative and
leave the openings as FAA and at -large.
There were several applications included in the packet from which to choose. It was
noted two of the applicants were in attendance at the meeting; Christopher Copple and
Doug Haralson. It was noted the Airport Commission did not have residency
requirements for any of its seats.
Christopher Copple -- Stated he wanted to hopefully bring fresh ideas to the airport
in order to bring the airport back to how it had originally been envisioned. He added,
he was a private pilot, leased a tie -down at the airport and had been a resident of the
city since 1980.
Doug Haralson -- Stated his address as P.O. Box 2881, Kenai. He explained he was
interested in filling the FAA seat. He noted, he was not a city resident, but his
involvement on the Commission would allow him to be involved in the city with FAA
background. Haralson noted, his background was extensively in relation to aviation,
governmental accounting, etc.
Porter commended both applicants for taking an interest and attending the council
meeting. It was noted, the other applicants were not present. When asked for
comments or recommendations from council, Councilman Moore stated he believed
the applicants attending the meeting were well -qualified and showed interest in the
work of the Commission and recommended their appointments.
Williams clarified that Knackstedt's seat designation would be changed to the CAP
representative, Christopher Copple to the at -large seat, and Doug Haralson as the FAA
representative. There were no objections from council.
Swarner also reported the Commission discussed the automobile rental spaces
remodeling plan and Mr. Chord from the tower attended the meeting. Williams noted
he had heard comments about developing an airport authority which would then
operate the state's airports. He added, the city had no interest in divesting itself of the
airport.
D-3. Harbor Commission -- Bookey reported the Commission met on
January 10 and discussed the Kenai Coastal Trail/ Bluff Erosion Project. He noted,
the Commission felt the project appeared to be a public -accepted project as they had
not heard objections at any of the hearings. He added, the Commission was looking
forward to the funding of the project.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19 2000
PAGE 12
Williams reported he made a presentation about the project at the Chamber luncheon
and heard no negative comments. Moore reported a comment made at the last
hearing was a concern that the project would be "messing with Mother Nature."
Another comment was "as long as we don't have to pay for it."
D-4. Library Commission -- Moore reported the minutes of the last meeting
were included in the packet. He noted, the next meeting was scheduled for February
1.
D-5. Parks & Recreation Commission -- Frazer reported the minutes of the
meeting were included in the packet. He added, a lengthy discussion about the Inlet
Woods lots was held. A motion was unanimously passed to reserve lots for a future
neighborhood park.
Parks & Recreation Director Frates reported the ice rink dedication was scheduled for
February 5, beginning at 11:00 a.m. He noted, the AmVets would present the flags
and the KCHS choir would be singing the National Anthem. Other activities would
include a hockey game, figure skating presentation, and a broomball game between
the Kenai Lions and Rotary Clubs.
Williams referred to the application from Chuck Rogers which was included in the
packet. It was noted there were no vacancies currently on the Commission and the
application would be kept on file for future reference. Williams reported he was
approached by Ryan (Huss) Green regarding replacement of fencing between the park
and the new construction. He suggested he speak with Frates about the suggestion.
D-6. Planning & Zoning Commission -- Bannock reported the Commission
met on January 12 at which the Commission discussed and made a recommendation
about the Inlet Woods lots. He added, the minutes from that meeting would be
included in the next council packet.
D-7. Miscellaneous Commissions and Committees
D-7-a. Beautification Committee -- Swarner reported the Committee met on
January 11 and reviewed new banner designs which would be brought to the next
Parks & Recreation Commission meeting for their review. She added, the Committee
also discussed developing a flower bed in front of the cemetery and a yard -of -the -week
program.
It was noted a letter of resignation from Barb Nord was included in the packet.
D-7-b. Historic District Board -- Moore reported there was no quorum for the
January 17 meeting and Chairman Huhndorf requested Moore to ask council to set
another meeting for January 24 at 6:00 p.m. in the council chambers.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 13
Moore referred to applications included in the packet and it was noted there were two
vacancies on the Board. Porter stated it seemed the Board had difficulties making
quorums for meetings and asked if the responsibilities of the Board could be
transferred to the Planning & Zoning Commission. A brief discussion followed
regarding the original organization of the Board, changes made to meeting dates and
times in order to help the Board be successful, etc. It was noted, the Board currently
met quarterly. Williams stated he would leave it to the council as to how to proceed
with the Board. Williams added, he remembered the Board was put in place in order
to be eligible for a particular grant. Bookey stated he had made a recommendation
two years prior to sunset the Board. He added, he believed if council wanted to
maintain a Townsite Historic District, it would be necessary to maintain a Historic
District Board.
Bookey stated, he agreed with Williams that the city's history was very important, but
the Board had never been successful. Porter requested the issue be placed on the
February 16 meeting and invite the board members to the meeting to defend whether
or not the Board should be sunsetted. Bookey requested administration research why
the Historic District Board was developed and refresh their memories of what was and
wasn't. Ross noted, approximately two years prior research in regard to meeting
requirements, responsibilities, etc. of the board was discussed in a memorandum from
Marilyn Kebschull. He stated he would have Kebschull review the memorandum to be
sure the information was current and send it out to the council again to review prior
to the February 16 council meeting.
Bookey stated he believed if the Board were to be sunsetted some regulations may
have to be amended or reevaluated. He added, nothing could take place in the
Townsite Historic District without the Board. Moore disagreed and reminded council
one of the past issues was that a matter could go before Planning & Zoning without
the Board reviewing it because of scheduling. The Board didn't want that to happen,
but council disagreed because of their concern that development in Old Town, etc.
could be slowed. He added, the Board is to be notified about an issue, but no special
meeting would be scheduled to discuss or take action on the matter.
Moore asked if council had objections to rescheduling the meeting. Council had no
objections.
D-7-c. Kenai Visitors & Convention Bureau Board -- No report.
D-7-de Alaska Municipal League Report -- Williams reported he would be
traveling to Juneau on January 24 to attend AML/Alaska Conference of Mayors
meetings during that week. He invited other members of council to go too if they
� desired to do so.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 14
ITEM E: MINUTES
E-1. Regular Meeting of January 5, 2000.
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 Frazer SECONDED
the motion. There were no objections. SO ORDERED.
Frates was asked if he had a cost estimate for electricity use at the ice rink. Frates
stated he did not, but that he and Public Works Manager La Shot were working on a
solution on the issue.
H-2. Purchase Orders Exceeding $2,500
MOTION:
Councilwoman Swarner MOVED for approval of the purchase orders exceeding $2,500
substitute. Councilman Moore SECONDED the motion. There were no objections.
SO ORDERED,
H-3. Ordinance No. 1849-2000 -- Finding That Certain City -Owned Lands
Located in Inlet Woods Subdivision, As Shown on the Attached Exhibits
A and B, Are Not Required for a Public Purpose.
Introduced by consent agenda.
H-4. Approval -- Airport Terminal Car Rental Counter Space
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 15
H-4-a. Space Remodel -- Ross explained, the bidders of the car rental counter
space in the airport terminal requested to speak to the Airport Commission and the
council regarding issues of space and declining enplanements versus the number of
concessionaires. Airport Manager Cronkhite researched other airports in this regard
and that information was provided to the bidders. He added, the bidders spoke to the
Airport Commission who unanimously supported their request that the counter space
area at the terminal be reconfigured to four spaces. Ross noted, council had debated
this subject in past years.
Dan Van Zee -- Van Zee reported his address as 325 Airport Way, Kenai and noted he
was representing Hertz Rent-A-Car and the Kenai Airport Commission as its vice -
chair. Van Zee referred to research information included in their packets in regard to
the car rental concessions and lease bid process. He noted, a two-part request was
being submitted to council for their approval: remodeling and revision of lease.
Van Zee noted (referring to packet information) the airport's floor plan, compared to
the rest of the state's airports, was the smallest and especially when compared to
Fairbanks and Juneau counter space which had back offices. He noted Anchorage's
spaces were similar size, but their market was large enough that the agencies had
offices and garages elsewhere on the airport property.
Van Zee stated the current 100' layout was not adequate to accommodate the current
tenants' needs. He added, if council chose not to approve the plan, there would be one
empty space and dissimilar -sized counters for the existing tenants. Van Zee stated,
the approval of the remodeling plan would give Kenai a better presentation to the
traveling public than an empty space or unequal counter space. Van Zee requested
the proposal be approved by council.
H-4-b. Revising Lease Documents -- Van Zee explained the second part of
request was to limit the number of rental car agencies for the life of the five-year lease.
He noted, council had been reluctant to do this in the past. Van Zee stated he would
address this portion of the request as a member of the Airport Commission.
Van Zee explained the Kenai Airport was mandated by the FAA to operate as a for -
profit enterprise and make the best and highest valued use of the resource, to help
support itself, etc. through income from rents and concessions. In order to
accomplish this, the airport was bound by the rules of free enterprise, controlled by
supply and demand. He added, the supply and demand would control the value of the
product in the marketplace, including rental counter space.
He noted, the rental car concessions represented the supply side and enplanements
represented the demand side. He referred to the information included in the packet
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 16
and noted, Kenai's supply side of the equation was too large and that lowered the
value of the concessions at the airport. He noted, this was evident by the recent bid
process only producing four bidders for the five available spaces. Van Zee noted, there
were more than four bidders who showed interest, but the others decided the demand
side of the equation was too low for them to be profitable in Kenai and they didn't
submit bids. He continued, four concessionaires still left Kenai heavy on the supply
side in comparison to the other airports included in the research information and that
was why they were requesting the limiting of concession spaces at the airport.
Van Zee noted, the demand in Kenai had been dropping and because nothing on the
horizon would create a drastic change in the forecast, he believed the high would be
similar to 1995 with a high number of enplanements at 130,000. He added, at the
end of the five-year lease, the question would be brought to council again to decide
what the current market would dictate to be best for Kenai at that time.
Van Zee added, if the number of enplanements were divided by the number of
concessionaires, it would show Kenai with 26,668 enplanements for each
concessionaire; Anchorage would show 303,696 enplanements; Fairbanks 67,249;
Juneau 127,706; Spokane 245,368; Missoula 50,569 enplanements for each
concessionaire. Noting Ketchikan as closest to Kenai's enplanements, Kenai had a
supply side imbalance of a factor of two.
Van Zee asked, why the City of Kenai should care how many concessionaires there
were at the airport if those concessionaires were willing to take the risk and pay the
price. He added, he believed it was in the best interest of the city to have healthy
businesses with current model cars for the customers. Van Zee noted, healthy
businesses help support many community efforts, buy real estate off the airport, build
offices, employ more people. He added, weak businesses would not. Van Zee stated,
healthy rental car agencies at the airport raise the value of the rental concessions at
the next lease term. He also noted a question could be, would limiting the number of
car rental agencies at the airport be contrary to the concepts of free enterprise. He
explained, the commonly held understanding of free enterprise was that government
should not stand in the way of someone operating business.
Van Zee added, there were more people renting cars from off -airport businesses than
on -airport businesses. If another car rental business wanted to open in Kenai in the
next five years, he believed they would be welcome to do it. If the proposal of limiting
the number of car rental businesses at the airport, they just wouldn't be able to do it
at the airport.
Van Zee requested council to accept the Airport Commission's recommendation to
approve both the proposals.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 17
Porter asked for Ross' comments. Ross explained, a bid was advertised for five spaces.
Only four bids were received. Based on current enplanements research (which was
given to the bidders for their review as it supported their arguments) and comments of
the Airport Manager, having an empty space at the airport was not esthetically
pleasing. He noted, the number of spaces was a council decision. Ross added, he
agreed with Van Zee that he was not aware of an event that would bring a large
upswing in enplanements because as the highway is improved to Anchorage and
airfares rise, the number of enplanements decrease. He added, even with a major
event in the next three or four years, the enplanement figure would probably only get
back to where it was. Ross continued, he believed the concessionaires had a strong
argument and the Airport Commission supported their request.
MOTION:
Councilwoman Porter MOVED to accept the recommendation of the Airport
Commission to make it four spaces for the remodeling project. Councilwoman
Swarner SECONDED the motion.
There were no other public comments. Councilman Moore reported one of the
successful bidders was one of his clients. However, he would vote if there were no
objections from council. Council had no objections.
Bannock stated he saw two questions. The first question he supported. However, he
strongly objected to limiting businesses in the city. He noted, the current lease
proposal to the rental car companies limited the number to five, however the council
was being asked to limit the number to four for the next five years based on the
memorandum's information that the companies were absorbing the remodeling costs
and requested the guarantee for the next five years to make their costs more feasible
to amortize the costs.
Bannock continued to say that if the limiting business was expanded throughout the
city, it would be practicing isolationism and bordering on socialism. He noted that
owning and operating a business was a huge risk and their failing or succeeding was
affected by markets, economy, natural disasters, etc. Bannock stated he didn't believe
the city should shelter or cap potential development in order to recover costs.
Bannock reminded council they discussed the matter several years ago and decided
they didn't want to limit business at the airport and encouraged council to say no to
the request to limit the businesses in order for the competitive market to do its job.
He noted a request came to council approximately one year prior from a person who
wanted to have counter space at the airport and council approved including his
business. Bannock added, that person was one of the successful bidders.
Bannock requested council to support the first item and defeat item two.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 18
Porter noted the present council was not the same one from a year ago. Swarner
noted the Airport Commission voted unanimously to recommend the remodeling
proposal and that the bid process was open and only four companies chose to bid.
Porter suggested the issues be separated. Williams stated he thought the items were
tied to each other because the limiting the number of concessions was tied to the
remodeling proposal. Williams suggested more information from the bidders in order
to separate the issues. Frazer suggested the two issues be voted on as one issue
because if the first issue was approved and the second issue not approved, he doubted
the first issue would happen.
Bannock noted the same issue was discussed in prior years wherein the first issue
was approved and the second issue was not approved. Further, the lessees were
informed there could be additional car rental companies moving in.
Williams stated when the city had the opportunity to guide its economic development,
it should look at what serves the city's interests and those helping to serve the city's
interest. He referred to the information included in the packet where the individual
rental agencies served approximately 25,000 (per car rental agency) in a year, which
seemed to be the lowest of the other airports listed in the information. He added, he
didn't fault the car rental agencies for asking to limit the number of agencies in the
airport to four based on that information. Williams noted, he was not aware of any
major change in the city's economy before 2004 or 2005.
Swarner asked if the lease bid was for a five-year lease. Answer was yes. Swarner
noted, the city did not limit concessionaires because only four people bid for five
spaces and were interested in a five-year term. Williams noted, council also directed
administration to accept all offers. Ross added, all respondents would have been
accepted, but the proposal limited it to five concessionaires of which only four bid for
the five spaces.
Swarner called of for the question. Williams noted the items would be separated. He
noted, the first question was, "Does the council wish to approve the remodeling
proposal?"
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
Yes*
__:::J
I I
MOTION PASSED UNANIMOUSLY.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 19
*Bannock voted no and then explained he thought the question was not being split
and requested to change his vote. Williams allowed the change of vote by Bannock
due to the misunderstanding of the question.
Williams noted the second part of the question would be, "Does the council wish to
revise the lease documents to limit the number of automobile concessions for the
length of the lease to four."
MOTION:
Councilwoman Swarner MOVED to revise the lease documents to limit the number of
automobile concessions for the length of the lease to four. Councilman Bookey
SECONDED them motion.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
Yes
Swarner:
Yes
Moore:
Yes
Porter:
Yes
Bannock:
No
MOTION PASSED.
Williams noted, council had changed policies for the next five-year period, anticipating
there would be four spaces for car rental agencies. The four spaces would be
remodeled and the cost for the remodel would be borne by the lessees. Airport
Manager Cronkhite added, the remodeling would be done to the standards of the
airport and the city.
H-5. Approval -- Amendment to Lease/NW 1/4 of Government Lot 4, Section 3,
T5N, R 11 W, Seward Meridian - Kenai Peninsula Oilers Baseball Club,
Inc.
Bannock reported he was a member of the Oilers' organization and requested he be
allowed to participate in the discussion. Williams stated he had no conflict.
Ross explained, the amendment to lease was one of two options council had if it chose
to have the General Fund make the Oilers' water and sewer service; put in the lease
agreement ($1.00 a year lease) or in the Legislative budget as a donation. He added, if
put in the lease, it would be a donation, but it would be removed from further perusal
by the present or future councils). If it was included in the Legislative budget
donations on an annual basis, it would be evaluated yearly along with other
donations. Ross added, either one could be done by the council and was their option.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 20
Mike Baxter -- Baxter stated his address as 619 Fir Drive, Kenai. He explained, the
organization had worked quite a bit with administration and council and they
appreciated their cooperation. Baxter added, as lessees of the land over the years,
they assumed the city, as part of the lease, was paying for their water. As an
organization trying to build a quality ballpark, which eventually would revert back to
the city, he requested council continue paying for the water/ sewer. He noted, over a
long period of time, the amount was not large. However, when looking at it over the
±26 days of the year the field is used, it became quite costly.
Porter noted Baxter mentioned the land on which the ballpark was situated would, in
time, be turned back to the city. She asked how long before that would happen.
Baxter answered, he believed the lease expired in 2035.
Bookey asked Ross if there was an actual cost for the services. Ross answered, he met
with the Oilers and discussed their installing a meter to isolate their restroom. If that
would be done, he noted, it would be a $40 per month charge a year for a two-inch
line and then, a meter on the restroom only during the months of operation. Ross
added, he believed the meter would be $56 a month and in use approximately four
months a year. Ross noted, he believed the total yearly cost, with the metering, would
be between $750 and $850 a year based on projected use.
Bookey stated he was not in favor of amending the lease, but was intrigued with
placing it as a donation on a line -item budget. He added, he did have concerns with
binding a future council and thought it should be left open. Bookey stated, bottom
line it was a cash outlay from the General Fund to the Water/ Sewer Fund and thought
that should be decided by the individual Oilers' board members make presentations to
council budget work sessions.
Moore stated he appreciated Bookey's comments in regard to binding future councils.
He asked if the amendment could include a clause to allow for a council to amend the
lease or revert back to a donation, should council make that type of a future decision.
City Attorney Graves stated, if the Oilers agreed to a modification of the lease, the
clause could be made in the lease contract revocable at the determination of the
council. He added, it would be unusual, but it could be done. Moore stated he would
support that amendment to the lease, noting the park would revert to the city in the
future.
Frazer stated the original lease had been in place since 1982 and many councils had
dealt with paying the Oilers water/sewer. He added, the Oilers was one of the many
groups in town using recreational facilities. He noted, the Little League used city
property which was maintained and watered by the city and they paid no fee for use of
the facilities. Frazer also noted the softball organizations probably used the city
KENAI CITY COUNCIL MEETING MINUTES
} JANUARY 19, 2000
PAGE 21
facilities more than what the Oilers used their facilities. Additionally, over $800,000
had been spent on skating groups and probably more would be spent over the next
four or five years. Historically, the Oilers developed the property and spent their
money to improve the land which would revert to the city. Frazer added, that was an
improvement and added value to the city. He added, he believed the amendment, as
written, should be approved.
Bannock noted, all leases bound the council from year to year. Porter stated she was
in favor of the Oilers and most other non-profit groups. She added, the city was
currently paying for water/ sewer on the Visitors Center; not paying for water/ sewer
for the Women's Resource Center (also city -owned land) ; not paying for water/ sewer to
the Art Council (situated in a city building); and not paying for water/ sewer for the
Historical Society (situated in a city building) . She added, the only way she could
support this type of donation was if all the other groups were treated equally either by
them all having to pay water/ sewer or the city pay it for them. Porter added, she
thought all the groups using city property should be treated the same or other
agencies would be coming before council at the next budget session presenting the
same argument. She noted, she was aware the Oilers, as well as the other groups she
named were non -profits, however, they were in fact, businesses because they could
not continue to function if they did not operate as a business.
Williams stated he disagreed with discussing the issue as a donation because it would
be hard to separate out a donation for the Oilers water/ sewer if another worthy
organization with a deep financial need made a request. He added, he preferred
approving the amendment to the lease. Williams noted, a former president of the
Oilers signed a lease document indicating they agreed to pay the water/ sewer.
However, the city never billed them which made it as much the city's fault as the
Oilers. Williams stated, the council should not be concerned about that part of the
lease, since it was abrogated many years before and the present council could
determine an amendment. Williams stated he would support the amendment
directing the water/ sewer charges be paid by the city.
Swarner stated she felt badly about the city's lack of responsibility for billing the
Oilers over the years. She added, she had heard from a number of constituents who
asked why the Oilers would not have to pay for water/ sewer when other non -profits
did have to pay. Swarner stated she would support a line item in the budget every
year instead of an amendment to the lease.
Mike Baxter -- Baxter stated, he didn't think comparing the Oilers to the Arts or other
non -profits was accurate as they did something totally different (although the Arts and
others were fine organizations). He added, the Oilers spent approximately $30,000
building a restroom at the park in the fall, which would eventually revert to the city.
He noted, the Municipality of Anchorage includes funding in their budgets every year
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 22
for their ballpark and their park was available for only select groups. Baxter stated,
the Oilers park was made available to any organization, as long as the game schedule
allowed. He added, they were only asking for "business as usual."
Porter stated she believed the city allowed the other organizations to operate on its
property and they should all be treated equally. Frazer noted the lease amendment to
which Williams referred was for use of a city ballpark (prior to the development of
Oilers park). Baxter noted, the Oilers had also been notified of owing some
assessments in the past, but never notified they owed water and sewer.
Williams clarified the present lease did not state the lessee would pay water/ sewer to
the city. Ross noted, the lease was a standard lease form and none of the city's
standard lease forms stated who would pay for the water/ sewer. He added, the lease
forms assumed the lessee to be responsible for all maintenance expenses. Ross noted,
the words "water/ sewer fees" would not be found in any city leases with commercial or
non-commercial non-profit properties and city ordinances rule on whether a body
signs up for water/ sewer.
MOTION:
Councilman Frazer MOVED to approve the amendment of lease between the City of
Kenai and the Oilers Baseball Club. Councilman Bannock SECONDED the motion.
VOTE:
Frazer:
Yes
Williams:
Yes
Booke
No
Swarner:
No
Moore:
Yes
Porter:
Yes
Bannock:
Yes
MOTION PASSED,
H-6. Discussion -- Council Policy/Work Sessions for Commissions and
Committees.
Attorney Graves reviewed the draft policy as it was presented in the council packet.
He noted the question arose in a December council meeting at which time he was
requested to draft a policy. He reviewed the minutes of that meeting and tried to
follow the points of the discussion in drafting the policy.
Bannock explained the issue arose from a discussion during a Planning & Zoning
Commission meeting. At that meeting, he stated a meeting outside the normal
meeting time would require council permission for posting and advertising, etc. He
added, the desire to set a work session prior to a regularly scheduled 7:00 p.m.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 23
meeting would require council permission as well as a meeting on a date outside the
normal meeting schedule. The council had no obj ection to the policy.
ITEM I:
I-11 Mayor
ADMINISTRATION REPORTS
a. Challenger Project -- Williams reported he and Councilman Bannock
traveled to Anchorage in regard to the Challenger project. While there, he spoke with
Governor Hickel as well as others in regard to the trans -Alaska gas line. Also, during
his visit to Anchorage, he spoke with some developers in regard to a hotel/ convention
center (Dave Pruhs and Bill Gee, Hickel Investments) .
b. Pipeline Committee -- Williams reported the committee had met and
made tentative approval of the computer -generated program which would be used
during presentations when the pipeline be built in Nikiski instead of Valdez. Williams
added, the committee had been invited to make their presentation before the Oil & Gas
Committee in Juneau, which he would be doing the week of January 24.
C. Economic Development District -- Williams reported the EDD hired a
new director.
d. Alaska Fire Chiefs Association -- Williams reported he would meet with
representatives of the Department of Transportation while in Juneau to discuss the
continuation of development of the fire standards program, devising a method by a
which a fiscal note could be developed.
e. Kenai Coastal Trail/Bluff Erosion Project -- Williams stated he would
also discuss the Kenai Coastal Trail/ Bluff Erosion Project with representatives of the
Department of Transportation asking them to allow the city to assist them by
designing the trail. He added, there was a tremendous amount of grant money
available through the state. Because the state would not be able to develop the
engineering for the trail in a timely manner to use the funding, he would suggest they
grant $500,000 to the city for development of the design. The work would then be
turned over to Petratrovich, Nottingham and Drage.
f. Snowplowing at City -Owned Buildings -- Williams questioned why the
city plowed the snow in front of the Visitors Center, Arts Center, wellhouses, city hall,
etc., but not in front of the building leased to the Kenai Historical Society who in -turn
leases the building to the oldest preschool non-profit in the city. Ross stated, to the
best of knowledge, the only snow plowed by the city was in front of the buildings
owned and directly related to the city. He noted, the Visitors Center was a city
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19, 2000
PAGE 24
building. Williams suggested the parking lot in front of the Kenai Historical Society
building could be plowed easily at the same time the street is plowed. Ross noted, he
was not aware there had been a request.
Porter suggested a work session be held in regard to buildings and properties leased to
non-profit groups and determine what the city wanted to do and did not want to do.
She noted, the Historical Society paid for its water/ sewer. Williams suggested he
would review the lease and noted it would take very little time to plow the parking area
at the Historical Society building. Williams also stated his concern that the Historical
Society leased the building from the city for $1.00 a year, and in turn leased the
building to the Kenai Cooperative Preschool with the city maintaining the building, etc.
I-2. City Manager
a. Property Appraisal -- Ross referred to his memorandum included in the
packet notifying council the appraisal on Lot 1, Spur Subdivision, Senior Citizen
Addition, had been received and administration would be proceeding with the public
sale process. He noted, FAA reviewed the appraisal and concurred with the value.
Revenues from the sale would be deposited in the Airport Land Trust Fund.
b. Congregate Housing Bond Question -- Ross referred to his
memorandum and attachment included in the packet regarding the possibility of
financing an addition to the congregate housing through AHFC financing.
C. Multi -Purpose Facility -- Ross reported Mactel had entered into
discussions with the LLC in regard to their sponsoring a $9,000 electronic scoreboard
for the multi -purpose facility. He noted, the Mactel and LLC agreement was that
Mactel's advertising logo would remain on the scoreboard for the next five years. The
city's agreement with the LLC indicated the city could, at any time, abrogate their
relationship with the LLC. The LLC requested that an agreement between the city and
the LLC be formulated to state that if the relationship with the LLC was discontinued,
Mactel's logo would be allowed to remain on the scoreboard for the five years. Ross
continued, if the documents came to him as he represented, he intended to sign off on
them on behalf of the city.
d. Airport Bar Invitation to Bid -- Ross reported administration would be
proceeding with an invitation to bid on the airport bar. He noted, he did not anticipate
any changes from the present lease and the present lease rate would be indicated as
the minimum acceptable bid.
I-3, Attorney -- No report.
I-4. City Clerk -- No report.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 19 2000
PAGE 25
I-5, Finance Director -- Finance Director Semmens stated he had planned to
include a mid -year financial report at this meeting, but because of the issues on the
agenda, the report was held and would be presented at the next council meeting.
I-6. Public Works Managers -- Public Works Manager Kornelis reported he
received the preliminary drawings from the Department of Transportation on the Kenai
Spur Highway Milepost 10.6 to 22. He referred to his letter to the Department of
Transportation which was included in the packet. Kornelis explained the letter noted
items he wanted them to consider in the project. Since the date of his letter,
additional items came up, i.e. slope cutback needed at the intersection of South
Spruce and the Spur Highway and a reminder to replace informational signs in that
area. Kornelis stated he would be attending their meeting on January 25 to
emphasize those items.
La Shot had no report. Bookey asked if there was an update of information on the
Forest Drive project. Kornelis reported he understood the utility relocation
agreements were being finalized. Also, he received information on a lift station that
would be installed. No specific date had been set for the bid, however the state
planned on bidding it and having it ready for construction in the spring.
I-7. Airport Manager -- Williams referred to the enplanement report included
in the packet. Airport Manager Cronkhite stated she had no report.
Semmens thanked the council for their support of the Aurora Borealis Charter School
which moved into the Kenai Elementary School. He noted an open house would be
held in the next month and would be sure to have invitations sent to the council.
ITEM J: DISCUSSION
J-1. Citizens -- None.
J-2, Council
Bookey -- No comments.
Swarner -- Stated she looked forward to working on the carpet problem at the
airport terminal.
Moore -- Stated that whatever mechanism was used for automatically turning
lights off at the multi -purpose facility, it was important to have information posted for
users to know how much time there would be before the lights turned off so they
wouldn't turn off while there were skaters using the ice.
Porter -- Reminded council of the employee appreciation dinner scheduled for
Saturday, January 22. Porter also offered her assistance on the carpet committee as a
KENAI CITY COUNCIL MEETING MINUTES
} JANUARY 19, 2000
PAGE 26
member of council. She noted she would not be present at the next council meeting.
Porter also reported she requested Clerk Freas to investigate whether teleconferencing
council and/or commission/committee meetings is used in other municipalities. She
noted, she planned to bring that information forward in February. Bookey stated, in
reviewing the Charter, he understood it to say council members needed to be
physically present at meetings and in order to change the Charter, a vote of the people
was required. Williams stated he believed allowing teleconferencing meetings would
need the input from the community as well as the council.
Bannock -- No comments.
Frazer -- He was looking forward to attending his first employee appreciation
inner.
EXECUTIVE SESSION - None Scheduled
ITEM K: ADJOURNMENT
The meeting adjourned at approximately 10:21 p.m.
Minutes transcribed and prepared by:
Carol L. Freas, City Clerk Arn.OVED BY COUNCIL
Of
��W-CLERK