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HomeMy WebLinkAbout2000-02-02 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 2, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci*.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Chuck Stauffer, PTI Communications-- Communication Services Available to City of Kenai Residents and Businesses. 2. Finance Director Larry Semmens -- City of Kenai Mid -Year Financial Review. ITEM C: PUBLIC HEARINGS 1. 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. 2. *2000-2001 Liquor License a. Renewal -- Mr. D's/Beverage Dispensary License - Tourism. b. Transfer -- Mr. D's, Inc. to Aurora Lodging Management, Inc., d/b/a Mr. D's. C. Restaurant Designation Permit -- Aurora Lodging Management, Inc., d/b/a King's Inn. ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission -1- 5. Parks & Recreation Commission 6. Planning g & 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 1. *Regular Meeting of January 19, 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. Approval -- Amending Use of Lease/Lot 6A, Block 1 Gusty Subdivision No. 4 -- Calvin and Nancy Gourley, d/b/a Groomingdales. 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 -2- KENAI CITY COUNCIL - REGULAR MEETING � FEBRUARY 2 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z / www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:03 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2., ROLL CALL Roll was taken by the City Clerk. Present were: Williams, Bookey, Swarner, Moore, Bannock and Frazer. Absent was: Porter A-3, AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AT: D-4, Resignation of Vince O'Reilly from Library Commission 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 There were no changes to the consent agenda. MOTION: Councilwoman Swarner MOVED to approve the consent agenda as presented and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) KENAI CITY COUNCIL MEETING MINUTES j FEBRUARY 2, 2000 PAGE 2 B-1. Chuck Stauffer, PTI Communications-- Communication Services Available to City of Kenai Residents and Businesses. Stauffer referred to a list of services provided to the City of Kenai which was included in the council's packet. He noted the most significant changes coming to the city in the next year would be DSL Internet Service, which would be offered to the Soldotna area first and it would be phased into other areas as soon as possible. Stauffer also explained, in the past, rural areas on the Peninsula all had their own switches. With the digital technology, they began a project to combine the rural switches into an urban switch with fiber ring redundancy, i.e. a hub and spoke setup. He noted, currently installed was one fiber optic cable going from Kenai, along the Spur Highway to Soldotna and one going down Bridge Access Road, down Kalifornsky Beach Road to Soldotna. He added, the fiber optic cable would be installed to Nikiski in the near future and through a partnership project with Homer Electric, a fiber ring was created to Ninilchik from Soldotna. Stauffer added, with the urban switch in place, the Kenai Peninsula would be as up-to-date with service technology as Anchorage or other large cities. Stauffer stated, the largest drawback for the area was not having a fiber optic cable to Anchorage. He also noted, they would have the DSL service to the Kenai core area as soon as possible and that it was an ongoing process to keep up with what the customers demand and what technology allowed, especially in a rural area. Stauffer added, the DSL service would be phased in but they would be targeting the business areas first. The last major step to upgrade the entire area as one urban network would be the changing out of the Kenai switch in 2001. Changing out the switch would allow new services and features to be offered immediately. It would also allow one main switch and an upgrade to it would then upgrade services everywhere. Moore thanked Stauffer for attending the meeting and PTI for accommodating the community with the technology. He noted, with Kenai's infrastructure in place, he was surprised the upgrade would first be done in Soldotna. Stauffer noted, it was a geographical issue and would allow the most reliable and economical way to upgrade the system. Moore noted, both commercial and private entities in Kenai needed the technology. He pointed out the Kenai Library was needing upgraded service in order to best serve their patrons. He asked if a resolution to the PTI board of directors to encourage quicker development or implementation of the technology would help. Stauffer answered he didn't think it would help as they were doing the upgrading as fast as the investments could be made to do it. It was clarified the fiber optic service was only in the Kenai/ Soldotna area. A general discussion followed and some points made were: After the fiber optic cable was installed and the interface between the fiber optic and digital microwave was connected, there then would be no difference in ban width and speed between Kenai and Anchorage; the addition of the equipment would increase KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 3 ban width and improve within the next six months; an agreement had been made between PTI and the school district to get direct fiber optic links from 16 schools through their switching centers and to the HEA backbone fiber for internet access and redistribution to the schools; and, if there was a service requirement and within an economical distance from the fiber cable, a business could tap into the HEA fiber, i.e. schools, Challenger Learning Center, government body, etc. B-2. Finance Director Larry Semmens -- City of Kenai Mid -Year Financial Review. Semmens gave a general overview of the mid -year financial status of the city. Some of the information included: • assessment values increased; • motor vehicles taxes increased; • from sales tax information received, the tax was up about two percent; • revenue sharing was down substantially, but came in as budgeted; revenues were down from last year, mainly due to revenue sharing; • ambulance fee collections were fairly constant since the initiation of the credit collection efforts; • several appropriations had been made to the budget and another was expected in regard to the Inlet Woods properties; • an ordinance would be brought forward to transfer cash from the General Fund to the Dock Fund; • a deficit of $409,000 was projected, but this would be impacted by interest, sales tax, etc.; • the Boating Facility budget was projected to be down due to the change in the dock lease and a negative contribution was expected; • there was no significant change in the congregate housing budget; • car rental commissions were expected to increase in the Airport Terminal Budget and there was a small increase on investments, but not significant to the Fund; • landing fees were expected to come in less than budgeted in the Airport Special Revenue Fund and there was a gain in interest revenue to the Airport Land Trust Fund; • airport expenditures were up due to funds set aside for the airport fire station; • a slight adjustment was made to the projections in the Water/Sewer Fund. BREAK TAKEN: 8:15 P.M. BACK TO ORDER: 8:20 P.M. ITEM C: PUBLIC HEARINGS KENAI CITY COUNCIL MEETING MINUTES � FEBRUARY 2, 2000 PAGE 4 C-1. 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. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1849-2000 and Councilman Frazer SECONDED the motion. There were no public comments. Mayor Williams noted the availability of these properties was a culmination of ten years of work by councils and administrations. He added, he was glad it was coming to a conclusion. City Manager Ross explained Exhibit B of the information included in the packet with the ordinance noted the properties being found not needed for public use and those being held for further review, which were in the area of the small pond at the back of the subdivision. Councilman Bannock reported the .Parks & Recreation Commission first identified the corner lots for possible use as a future park. He added, the Planning 8v Zoning Commission passed a resolution identifying the same lots as were identified in the ordinance as not needed for public use. Ross also noted a line marked on the map along Wedgewood to Equinox identified to where the utilities were fully in place. Information was being gathered from Homer Electric Association, Inc. (HEA) to know more about the utility placements. Ross added, the public sale documents would not be completed until the utility placements were verified by HEA. There were no requests to withdraw or add in any other of the lots. VOTE: Williams: Yes Booke Yes Swarner: Yes Moore: Yes Porter: Absent Bannock: Yes Frazer: Yes MOTION PASSED UNANIMOUSLY. C-2. 2000-2001 Liquor License C-2a. Renewal -- Mr. D's/Beverage Dispensary License - Tourism. C-2b. Transfer -- Mr. D's, Inc. to Aurora Lodging Management, Inc., d/b/a Mr. D's. C-2c. Restaurant Designation Permit -- Aurora Lodging Management, Inc., d/b/a King's Inn. Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 5 ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- No report. D-2. Airport Commission -- Swarner reported the carpet committee met on February 1 at 7:30 a.m. The committee walked through the airport terminal to review the condition of the carpet and matting by the airport manager's office. She added, the committee would be meeting again on Tuesday, February 8 at the terminal building by the cafe. Williams referred to the minutes of the January 13, 2000 commission meeting and noted the discussion of Mr. Copple regarding airplane tie -down fees. He asked if his comments included discussion of his personal property tax and whether he understood the tax was 3.5 mils and not 3.5%. Swarner reported Copple stated he didn't believe the personal property tax should be on airplanes and he now understood the difference in the amount of tax. Councilman Bookey stated he had a long conversation with Copple prior to the commission meeting. He added, Copple had thought the tax was 3.5% and he explained it was 3.5 mils and believed Copple now understood the program. Airport Manager Cronkhite reported Finance Director Semmens would be making a presentation to the Commission at their next meeting in regard to the tax and to answer questions of the Commission to this regard. D-3. Harbor Commission -- Bookey reported the regular meeting of the Commission was scheduled for Monday, February 7, however he was notified earlier there were no matters to place on the agenda. Bookey requested the meeting be cancelled. There were no objections from council. D-4. Library Commission -- Councilman Moore reported the Commission met on February 1. He noted the members were saddened by the resignation of Vince O'Reilly but were happy to hear O'Reilly planned to keep involved through the activities of the Friends of the Library and attendance of commission meetings as a member of the public. Moore added, it had been announced the Third Annual Writers' Night was scheduled for March 9 and would be held at the Kenai Visitors Center and co -sponsored by the Friends of the Library. The Commission also discussed the school library survey and learned the findings of the survey would be presented to the Commission at their March meeting. Moore also reported Director Jankowska gave an excellent presentation of the state � database online resource of magazines and newspapers accessible through SLED. He noted there was concern the cost to offer the database to all Alaskans, through KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 6 libraries or individually, may be eliminated from the University of Alaska budget which would reflect an increase in costs in local library budgets. The Commission requested a resolution be brought forward to the council for consideration at their February 16 meeting in support of continued funding for the database. Moore stated he would bring that resolution forward. There were no comments or objections from council. Moore explained the Commission discussed the resignation of Commissioner O'Reilly and unanimously supported the appointment of Melinda Haring to fill the vacant seat. He noted Haring was currently and actively serving as the student representative to the Commission and he hoped council would name Haring as the replacement. Bookey stated he had no objections in the appointment of Haring and requested a letter of thanks from Mayor Williams be forwarded to O'Reilly. It was also suggested a plaque be given to O'Reilly in appreciation of his service to the city. Council agreed. Williams recommended Melinda Haring be appointed to the Library Commission as a full voting member in accordance to council's previous discussions and directives to get younger people to participate. There were no objections. D-5. Parks & Recreation Commission -- Councilman Frazer noted the next meeting was scheduled for February 3 at 7:00 p.m. in the council chambers. D-6. Planning & Zoning Commission -- Councilman Bannock noted the minutes of the January 12, 2000 meeting were included in the packet and that he had reported on that meeting previously. Bannock also reported there were several new items of business at the January 26 meeting and explained the approval of the replat of the Thompson Park One -Stop included the staff comments and suggestions. He also explained there were two public hearings in regard to property in Inlet Woods Subdivision. One of the public hearings concerned an encroachment permit for the property at 1110 Channel Way, involving the side and rear yard setbacks. He noted the encroachment was into the adjoining property owned by the City of Kenai. The City opposed the encroachment permit, but it was approved by the Commission on a four -to -two vote. Bannock noted the other public hearing for property at 1110 Channel Way was for a conditional use permit to allow a gun shop. He added, there was a lot of discussion and several letters of opposition were read into the record. One member of the neighborhood spoke in favor of the permit. Bannock reported, the city was going to oppose the approval of the permit, however after some modifications were made to the original application, the city withdrew its opposition. He noted, the conditional use permit failed with a three -to -three vote. It was noted no letters of appeal were received for either matter. Ross explained the issues were rather complicated in that if the applicant appealed his conditional use KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 7 permit to council for a gun shop to be in that area where the Commission permitted an encroachment, it would be a violation of city code and the council could not grant it if it followed the requirements of the code. Ross continued, a meeting with the applicant would be held to examine how he might modify his proposal and if there could be a possibility the applicant could obtain a home occupation permit instead. If that were the case, Ross added, it would go back to the Commission in that form, as a regular discussion item and advertised in the neighborhood to allow input from the neighbors. In regard to the encroachment, Ross explained, the building was on the property line. He added, he would be reviewing the information presented to the Commission, transcripts of the discussion, and past records of Board of Adjustment findings in regard to encroachments. After that, he would decide whether the city should appeal and would report that to the council at their next meeting. At that time, as his employers, he could be directed not to appeal. Moore asked if there had been a case where the city was the property owner next to the property with the encroachment. Ross answered, he would be reading the records provided by the city attorney in regard to past decisions on encroachments by the council. He noted, he didn't believe any of those involved an appeal by the city, however. Attorney Graves reported he would be providing the city manager a notebook with a backlog of Board of Adjustment decisions from the time of his hire forward. He added, he didn't recall any case similar to this going to the Board of Adjustment when the city was an adjoining property owner to an encroachment. The map of the properties in Inlet Woods were reviewed and the lot with the encroachment was identified. Bannock requested a copy of the minutes of the January 26 Commission meeting be forwarded to council for their review prior to the next council meeting and noted, from the information and discussion at the meeting, he didn't think there was a reason to object to the encroachment. Williams noted care had to be given in discussing the matter because of the possibility of an appeal and the possibility of comments that could be misunderstood. Bannock requested the minutes of the meeting be forwarded to the council for their review prior to Ross making his. decision whether to file an appeal because council may want to direct him not to file an appeal. Bannock noted the resignation of Robert Newbry from the Commission. Williams reported there was one vacancy on the Commission and there were three applications included in the packet (Don Gough, Mike Morse, and Barbara Waters) . It was also noted, Gough and Waters were in the audience. Williams asked if council wanted to delay the appointment and if so, indicate so. Bookey stated he wanted the appointment to be made immediately. He noted, he knew all the applicants and was in support of Gough the last time an appointment was made because he ran for council election and he continued to support Gough. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 8 Moore stated he would want an appointment made as well and had no problems with any of the applicants and would go with the wishes of the council. Swarner stated she also wanted the appointment made and recognized any one of the applicants would do a good job. She requested the Commission be more gender balanced now or in the future, as with all commissions and committees. Frazer stated he believed there were three well -qualified applicants and had no reason why the appointment shouldn't be made as soon as possible. Williams noted Gough was recommended for appointment and asked for comments from council. Bookey stated it took a special type of person to run for office and Gough did run for council. He added, Gough did fairly well in the election process and he believed it showed Gough's dedication to the Commission and the process. Don Gough -- 3740 Wildrose, Kenai. Gough stated his desire to be appointed to the Commission was directly tied to his running for council in the fall. He added, he intended to run for council again during the fall of 2000 and would continue to run for council. Gough continued, he believed he had something to contribute to the city and though inexperienced with procedures, he felt the Commission had the same parameters the council followed and would be an enhancement to him in running for and participation on the council. He added, he wanted to give back to the community and felt this would be a level at which he could do that.. Williams noted Gough would have to complete and submit a Conflict of Interest Form required by state law and due by March 15. Moore asked Gough his opinion of the encroachment and conditional use permit applications and actions in Inlet Woods. Gough noted he didn't feel knowledgeable enough of the issues to speak to them. Barbara Waters -- 311 Kulila Place, Kenai. Waters explained she had resided in Kenai since 1978 and had the best of Kenai at heart. She added, she appreciated the other applicant and being notified of the possibility of appointment at this meeting as she had not been notified in the past of commission appointment considerations. Waters stated she had read the minutes of the Commission meetings provided on the Internet and heard what had been discussed earlier in the meeting. It was her understanding the city owned the lots surrounding the applicant's property and asked what would happen when the city sold the other lots. She noted, the ones purchasing the lots would be faced with an encroachment. Waters stated she would have reviewed that carefully and believed it should be investigated closely to see how the encroachment could affect a future sale. Waters stated she was excited the seat wouldn't be left open for a year and hoped the city would make appointments promptly in the future as well. She added, if Gough was to be appointed and he then ran for council and won, she would want to be considered to fill his vacancy. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 9 Bannock referred to Waters' comment that she had not been contacted in the past of vacancies on the Commission and noted he had contacted her personally by telephone and told her of openings approximately a year ago. Bannock stated her comment bothered him because she promoted it and it was not true. Discussion followed and Waters apologized if she was incorrect, but didn't remember the conversation which could have been around the time of a grandchild's birth who had some medical problems. Williams responded to some letters to the editors in the Peninsula Clarion in regard to the issue of the city running out of balance. He suggested the writer of the letter look to see how balanced the city actually was and referred to the city's financial stability, low mil rate, state and national awards received, etc. Williams added, the taxpayers had not been asked to pay any costs to the $70 million of improvements made over the years other than matching monies to federal grants. He continued, he was very proud of the city's record and the councils' and their administrations' efforts. Williams offered Don Gough to be appointed to the Planning & Zoning Commission. There were no objections from council. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported she and some members of the Beautification Committee would attend the Parks 8. Recreation Commission meeting to present street banner designs and to receive a recommendation from the Commission as to which of the banners to have produced for placement in the summer. Swarner noted the application of Joan Hett was included. in the packet and recommended she be appointed to the Beautification Committee. She added, Hett had been volunteering with the Committee and would be a major asset to the Committee. There were no objections to Joan Hett's appointment to the Beautification Committee. Williams requested a letter be sent to Judy Buffington, the other applicant and thank her for her application and note it would be held for future consideration. He suggested the letter encourage her volunteering with the Committee or indicate another commussion/committee to which she would be interested in appointment. It was noted her application did not specifically request appointment to any particular commission/committee as that question had been left blank. It was noted there was another seat available on the Committee. Swarner stated she was aware there were other applications to be submitted and wanted to review them prior to making the other appointment. D-7b. Historic District Board -- Moore reported the rescheduled meeting was held on January 24 at which there was a quorum. An election was held and Mike Huhndorf was elected chair and Bill Kluge was elected vice -chair. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 10 Moore continued, the Board reviewed the annual survey as far as requirements and found there were no known changes to require an update. He also reported the Board chose one goal for this year and that was to locate property within the Old Town area to use as a display for the donkey engine and other old mechanical equipment now stored. Once able to identify property, they would then seek funding to move the items from storage and display the items. Moore noted, the Board had once discussed the property behind the preschool. Moore also reported the Board discussed the development of an Old Town video and decided to drop the idea and hoped the city would include information about Old Town in the development of its new video. Moore stated he informed the board members of the council's decision to include the future of the Historic District Board on their agenda for the February 16 meeting and invited the members to attend the meeting and offer their comments. Ross stated he told council at their last meeting that he would have Marilyn Kebschull review the memorandum she wrote about two years ago in regard to the requirements in having a Historic District Board to acquire grants for preservation issues, etc. He noted, a copy of the memorandum would be included in the packet for the February 16 meeting. A brief discussion followed regarding council's previous discussions of developing an area with a concrete slab on which to place the donkey engine and other antique equipment. It was noted, placing a slab on the property behind the preschool/ day care had been discussed previously. It was also noted there were lots for sale situated across from the Fish 8. Wildlife buildings. Williams stated he was not wanting to build a full museum but something for summertime use. He added, at one time council considered including $25,000 in their budget to build the concrete pad and asked if it should be included in the Legislative budget draft for further discussion. Moore suggested it could be one of the issues discussed when the future of the Historic District Board would be included on the agenda. Bannock didn't think the $25,000 should be included in the draft budget. D-?c. Kenai Visitors & Convention Bureau Board -- Bookey reported the next meeting was scheduled for February 24. He noted Executive Director Kathy Tarr was in the audience and wanted to make a presentation to council. Kathy Tarr -- Tarr reported the following information: • She will forward unapproved minutes of the Board's last two meetings to be included in their next council packet. • Rebecca Cronkhite, Joe Arness, Dan Van Zee and Charlotte Legg were elected to the Board of Directors. • Third Annual Writers' Night, a fundraiser for the Friends of the Library and KVCC, was scheduled for March 9 at the Visitors Center. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 11 • Over 1,000 people visited the Center in January of which were 110 school children. • Alaska 2000 Celebration of Wildlife Art will be held at the Center from May 1 through July. This would be the largest wildlife art show ever held in Alaska and exclusively at the Center. She noted, over 28 nationally renown original paintings would be on display. Tarr noted the event was a partnership effort between the Center and the Kenai Peninsula College. She introduced Dr. David Wartinbee who was instrumental in organizing the event. Dr. Wartinbee noted Artist Robert Bateman provided an original painting especially for the show and posters of the painting would be available for sale during the event. He and Tarr distributed complimentary copies of the poster to council. Tarr added, they expected a huge influx of tourists and residents of Alaska to travel to Kenai for this event. A reception was planned for the grand opening which the Chamber would co -host with the Center and admission would be free on Mothers' Day. Tarr thanked Dr. Wartinbee and Ginger Steffy for their cooperation and involvement in the event. D-7d. Alaska Municipal League Report a. AML/Alaska Conference of Mayors Meetings -- Williams reported he traveled to Juneau to attend the AML/Alaska Conference of Mayors meetings during the week of January 24. He noted, the AML was developing a plan hoping to save municipal assistance and revenue sharing as much as possible. He added, the Governor and Lt. Governor both visited with the group of mayors. Williams stated, it was not known at this time how much money would be available for the state's budget. b. Kenai Coastal Trail/Bluff Erosion -- Williams reported he visited with both the Commissioner of Transportation and his assistant and talked at length about the proposed coastal trail project. He noted, he learned DOT would not be able to fund the engineering money because of federal guidelines. He also learned of a guideline that requires federal or state funding to be returned if the project is not built within ten years. Williams added, there could be funding available in the $350 million bond package suggested by the Governor for fast -tracking transportation programs throughout the state. He noted, it was a good possibility only funding for the trails portion of the project would be available. Williams reported DOT would continue to investigate whether there would be other funding available for the project, however if funds were found to design the project and federal monies were received for the construction of the project, the federal monies would have to be matched on a 93% - 7% basis (approximately $700,000 as the city's share). KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 12 C. Fire Standards Council -- Williams reported he met with the Commissioner of the Department of Public Safety to discuss development of funding for the Fire Standards Council which would be tied together with the fire training center in Kenai. d. Marine Fire Training -- Williams stated he discussed with the Coast Guard Admiral Bennett the possibility of acquiring a surplus buoy tender to use at the fire training facility for a marine fire. training program. He noted, the tender would have to be brought to the Nikiski dock and portions of it removed, then hauled to the fire training facility. He noted, they discussed the possibility of this project with representatives from Natchiq who were very interested in doing a project of that nature. Some funding and technical expertise could probably be received from the Coast Guard. Williams added, the Admiral informed him he wanted to develop a full - service training program for the Coast Guard in one area. The program would include fire safety, hazardous material training, incident management, chef training, quarters maintenance training, etc. Swarner asked what such a program might cost the city. Williams answered he didn't know, but expected it to include some city land (now leased to the University) . He added, it was suggested the cost could be $3 million which would probably be borne by the Coast Guard and the manufacturer of the computer systems to drive the fires. Williams stated he would continue investigating the project unless council objected. Swarner suggested the council should choose its priorities and didn't want to spread the city too thin. Williams agreed and noted the source for funding the coastal project would be entirely different than the marine project. No objections were stated. e. Senator Elton Letter -- Williams referred to a letter he received regarding the ten mil tax cap and alcohol consumption tax. He noted, the letter stated he submitted a bill to require the state to share 40% of the alcohol tax revenues with local communities. Williams noted the bill regarding the tax cap would only take affect if the tax cap limitation initiative passed. The bill would return the authority to the municipalities to set their own property tax rate above the ten mil cap. ITEM E_ MINUTES E-14, Regular Meeting of January 19, 2000. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 13 H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Swarner MOVED to pay the bills and Councilman Bookey SECONDED the motion. Frazer asked if there was a way to determine the cost of the electricity used at the skating rink. Ross explained the only bill received to date included the construction period, which wouldn't accurately illustrate the rink only or since the rink was completed. Public Works Manager La Shot reported it cost approximately $41.26 and hour for the lights to be on, including the warm-up shacks and Zamboni room. They were investigating placing a dial -up timer at the rink for people to turn on lights while the facility would be in use. The timer would allow from 15 minutes to a two-hour period for use of the lights. Discussion followed with suggestions of how to leave the lights on, but cut the costs, i.e. have only half the bank of lights on unless there was a game, have photocell lighting for when someone is using the facility and there is no game, etc. La Shot noted a purchase order would be processed reflecting the council discussion. He added, he had difficulty in getting electricians to look at the problem. La Shot explained the timer now at the facility would allow five hours of lighting. The new timer would be a dial up for up to two hours. He noted, consideration had also been given to placing a switch which would cut the lights to 50%, however it was felt that might not be best. La Shot added, two night lights had been connected to the light circuit that would be on all the time, even when the lights go out. VOTE: There were no objections to paying the bills. SO ORDERED. H-29 Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED for approval of the purchase orders exceeding $2,500 and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. H-3. Approval -- Amending Use of Lease/Lot 6A, Block 1, Gusty Subdivision No. 4 -- Calvin and Nancy Gourley, d/b/a Groomingdales. Ross explained the lease limited the use of the building for retail businesses or � professional offices. The lessees wanted to amend the lease to allow any uses for the property within the zoning code for that zone. Bookey asked if the lease recently KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 14 rescinded with Crow had been open to general commercial. Answer was yes. Bookey stated he believed it would be good to change the lease and allow anything within the code. Bannock agreed and added, it would use the code how it should be used. Bannock stated he would support the amendment. MOTION: Councilman Bookey MOVED to accept administration's proposal to amend the lease for Lot 6A, Block 1, Gusty Subdivision No. 4 from retail businesses and professional offices to general commercial. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. ITEM I: I-1. Mayor ADMINISTRATION REPORTS a. Manchester Craftsmen Guild -- Williams requested Tarr to report on this art and humanities program. Tarr reported she and others from her KVCC staff attended a forum in Anchorage where the keynote speaker was William Strickland, Jr. a nationally recognized entrepreneur. Tarr noted, Strickland took disadvantaged at - risk children and began a program, originally concentrating on the arts and developed it into a program including ceramics, print making, culinary arts, music recording studio, small theatre, etc. In reviewing the purpose of the program, Tarr stated she learned that all facets of the arts and education, exhibits, programming, performing arts, etc. together enrich the lives of the people in the community and at the same time provide an economic benefit. Williams explained, in learning about this program, it gave some weight to the possibility of developing a facility in Kenai which could house a little theatre, classroom and library, connecting them through genealogy classes, acting classes, story hours and other programs. He urged the council to keep an open mind as a proposal may come before council to develop such a facility. He hoped a beneficial piece of property could be found for such a project and suggested the FAA property or by the Challenger Center. Williams added, he would continue working on such a project, looking for funding, etc. unless council objected. There were no objections stated. I-2. City Manager a. Juvenile Detention Center -- Ross referred to his memorandum included in the packet regarding the recent request for a second review of the site selection of the juvenile detention center to be placed in Kenai. He noted, the process of choosing a site was the same one used in the Mat -Su Valley, i.e. local committee KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 15 was formed, sites available were reviewed and narrowed to two, and then the Division of Corrections hired an outside firm to score the sites. He noted, this procedure was meant to be a neutral selection of the site. Ross discouraged the city to get into involved in the challenge of the selection. He was, however, concerned that some of the same parties interested in cutting state government were dismissing the expenses that would be incurred by the state if the facility were separated by distance from Health and Social Services, Public Defenders' Office, etc. Ross added, some of the issues in the challenge regarding Homer and Seward were smoke screens because juveniles were seldom transported to Kenai, but held in their own communities. Ross continued, he had some other information coming but was not available for the meeting. After receiving responses from the Division of Juvenile Justice, he would make them available to council. He noted, he included some alternatives for council if they chose to pursue them, but he urged them to wait to talk to the area legislators until the response was received. b. Foreign Trade Zone -- Ross reported administration was preparing the local site information for the application which would be developed by a consultant hired by the Borough. He noted, at the present time the potential sites did not need to be identified as the application could be amended later. Ross added, because the process would take several years, he proposed properties in the uplands area between the airport and Marathon Road north of Willow Street which would put it in the path of future development, but not restrict any properties. He added, the consultant would review the information and there would be plenty of time for the council, etc. to comment. Ross continued, because Airport Manager Cronkhite had experience with the Fairbanks Foreign Trade Zone, she would be involved with the site description, etc., along with Planning 8s Zoning Administrative Assistant Kebschull. Williams added, there would be alternative methods of financing available, i.e. if the budgeting could include operational costs but not construction costs, council may want to consider partnering with the state. C. Gas Pipeline/Port Authority -- Williams noted, expanding the funding to develop a port authority was being considered because of Internal Revenue Service comments that the port authority proposed by the Fairbanks, North Slope Borough and Valdez was legal and could be used for financing portions of the pipeline. Williams explained this was good news as it would open the doors for any municipality to create a port authority for the purpose of financing a pipeline. Williams noted the discussion of the gas pipeline proposals would continue and could get more tense. He added, he hoped to make a presentation to council at a future council meeting. KENAI CITY COUNCIL MEETING MINUTES � FEBRUARY 2, 2000 PAGE 16 Bookey asked if there were any restrictions on the property. Ross answered, not so much that the property couldn't be pulled out, but if a site was named as a Foreign Trade Zone, securing the site separately would be required. He noted, the area he described earlier had been chosen because that would be possible and because it was north of the immediate area of progress. Ross confirmed it had nothing to do with land -use restrictions and that it would be a centralized trade zone with sub -zones. I-3. Attorney -- No report. I-4. City Clerk -- No report. I-5. Finance Director -- No report. I-6. Public Works Managers -- No reports. I-7. Airport Manager -- No report. ITEM J: DISCUSSION J-1. Citizens Debby Sonberg -- Referring to Williams' earlier comments about the city being balanced, Sonberg stated it was her impression the comments were regarding balance in philosophy and not based on the city's accomplishments. She added, she would review the newspaper letter to see if she misinterpreted the letter. J-2. Council Bookey -- No comments. Swarner -- • Forest Drive: Swarner questioned whether the Forest Drive contract had been let. Kornelis answered no. • South Side Dip Net Season Plan: Swarner requested administration to give council their plan for the south side of the river for dip net fishing and wanted to see it before budget time to have some idea of the costs that may be involved. • Additional Access / Inlet Salmon: Swarner requested an update of costs and challenges for permits for additional access to the beach, i.e. by Inlet Salmon. • Commission Committee Applications: Swarner reported she was told a constituent did not apply for appointment to a commission, committee or board because of the recent newspaper article indicating political clout was needed to be appointed. She stated she didn't believe the article was fair to the council in that it lead residents to believe something that wasn't true regarding commission/committee applications. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 2, 2000 PAGE 17 Moore -- No comments. Bannock -- • Street Maintenance: Congratulated the road crews on their very good work during the recent snow storms. • Personal Property Tax: Noted the disparity between the personal property tax for an airplane and new vehicle. • Out of Balance Comments: Stated his interpretation of balance was measured during the local elections each year. He noted, only he had promoted an agenda in Kenai like he had. Bannock added, he didn't think there was and out of balance, and that he would continue to promote his ideas keeping in mind that he was only one of seven votes. Frazer -- No comments. Williams -- Asked for an update on the Public Health Facility planning. La Shot reported they were getting to the final stages of the schematics and didn't anticipate the plans being late in completion. He added, he was not aware of any problems that would prevent the facility to be constructed during the summer. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10 : 37 p.m. Minutes transcribed and repared by: Carol L. Freas, City Clerk �s ,�,..���'.1`,�. .�. .