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HomeMy WebLinkAbout2000-12-06 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 6, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /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) ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1884-2000 -- Amending KMC 14.20.321 Requiring Inspection of Buildings Prior to Issuance of a Bed and Breakfast Conditional Use Permit and Requiring Inspections Every Other Year Thereafter. a. Remove from table. b. Consideration of ordinance. C. Substitute Ordinance No. 1884-2000 -- Amending KMC 14.20.321 Requiring Inspection of Buildings Prior to Issuance of a Bed and Breakfast Conditional Use Permit and Requiring Inspections Every Other Year Thereafter. 2. Ordinance No. 1885-2000 -- Requiring: (1) Home Occupation Day Care Facilities to be Inspected for Compliance with the Fire Code Prior to Issuance of a Permit and Every Other Year Thereafter; and (2) Other Home Occupations to be Inspected for Fire Code Compliance Prior to Issuance of a Permit if Deemed Necessary by the Fire Marshal. a. Remove from table. b. Consideration of ordinance. C. Substitute Ordinance No. 1885-2000 -- Requiring: (1) Home Occupation Day Care Facilities to be Inspected for Compliance with the Fire Code Prior to Issuance of a Permit and Every Other Year Thereafter; and (2) Other Home Occupations to be Inspected for Fire Code Compliance Prior to Issuance of a Permit if Deemed Necessary by the Fire Marshal. 3. Ordinance No. 1889-2000 -- Increasing Estimated Revenue and Appropriations by $2,300 in the Senior Citizen Title III Grant Fund for a Grant From the State of Alaska. 4. Resolution No. 2000-68 -- Transferring $10,000 in the Water and Sewer Special Revenue Find for the Geographic Information System (GIS) Mapping Project. 5. Resolution No. 2000-69 -- Awarding the Bid to Seekins Ford for an Emergency Squad Fire Apparatus for the Total Amount of $148,142 and Authorizing Use of the Equipment Replacement Fund for the Purchase. 6. Resolution No. 2000-70 -- Urging the Kenai Peninsula Borough Assembly's Passage of Their Ordinance No. 2000-59, Authorizing the Borough to Negotiate an Agreement with the State to Operate a Prison Facility and to Publicly Solicit Bids or Proposals for the Land, Design, Construction, and Operation of an 800 to 1,000-Bed Medium -Security Prison Facility to be Financed with Municipal Revenue Bonds. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Kenai Historic Commission 8. Miscellaneous Commissions and Committees a. Beautification Committee b . Kenai Convention & Visitors Bureau Board C. Alaska Municipal League Report ITEM E: 1. ITEM F: MINUTES *Regular Meeting of November 15, 2000. CORRESPONDENCE ITEM G: OLD BUSINESS 1. Discussion -- City Economic Forum 2. Discussion -- Proposed Kenai Peninsula Borough Negotiated Land Exchange/Herman 8v Irene Fandel, Applicants. ITEM H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2 . Purchase Orders Exceeding $2,500 3. *Ordinance No. 1890-2000 -- Increasing Estimated Revenues and Appropriations by $3,000 for a Volunteer Fire Assistance Grant From the State of Alaska. 4. *Ordinance No. 1891-2000 -- Increasing Estimated Revenues and appropriations by $7,946 in the General Fund for Library Computer Equipment. 5. *Ordinance No. 1892-2000 -- Amending KMC 14.05.010 and 14.05.105 to Assigning the Duties of Historic Preservation to the Kenai Planning and zoning Commission. 6. Approval -- Assignments of Shore Fishery Leases -- Tracts A & B, City of Kenai Shore Fishery No. 1/From Thad A. Carlson and Kendall H. Crookston to Ted J. Crookston. 7. Approval -- Special Use Permit/ ERA Helicopter, Inc. -- Helicopter Parking. 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 DECEMBER 6, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt-p: Z /wvvw.ci.kenai.ak.us MTNTTTF..q ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2., ROLL CALL Doll was taken by the City Clerk. Present were: Frazer, Williams, Bookey, Moore and Bannock. Absent were: Swarner and Porter A-3, AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: REPLACE: C-1 , Ordinance No. 1884-2000 (the original version of Ordinance No. 1884-2000 as introduced was inadvertently omitted from the packet) . REPLACE: C-2, Ordinance No. 1885-2000 (the original version of Ordinance No. 1885-2000 as introduced was inadvertently omitted from the packet) . MOTION: Councilman Bannock MOVED to approve the agenda as amended and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA Mayor Williams noted he had no changes to the consent agenda. MOTION: Councilman Bannock MOVED for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 2 ITEM B: SCHEDULED PUBLIC COMMENTS -- None. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1884-2000 -- Amending KMC 14.20.321 Requiring Inspection of Buildings Prior to Issuance of a Bed and Breakfast Conditional Use Permit and Requiring Inspections Every Other Year Thereafter. C-la. Remove from table. MOTION: Councilman Moore MOVED to remove Ordinance No. 1884-2000 from the table and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, C-lb. Consideration of ordinance. MOTION: Councilman Bannock MOVED for approval of Ordinance No. 1884-2000 and Councilman Bookey SECONDED the motion. C-lc. Substitute Ordinance No. 1884-2000 -- Amending KMC 14.20.321 Requiring Inspection of Buildings Prior to Issuance of a Bed and Breakfast Conditional Use Permit and Requiring Inspections Every Other Year Thereafter. MOTION TO SUBSTITUTE: Councilman Bannock MOVED to approve Substitute Ordinance No. 1884-2000 marked as C-1 c and Councilman Frazer SECONDED the motion. Pat Dwinnell -- Noted she obtained a copy of the Soldotna inspection list and asked what the Kenai list involved. She reported she was representing some of the public who could not attend the meeting and who had not received information from the city in regard to the ordinance. She requested action be held until all had time to review the information. It was confirmed letters with the original ordinance and inspection list were mailed to all the bed and breakfasts with current conditional use permits. Of those mailed, four were returned. Acting Fire Chief Walden explained the Fire Marshal created the list which was available to the public and Building Official. Walden reviewed the Soldotna list and noted they were identical except Kenai did not require escape ladders. Williams noted KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 3 the ordinances had been before the Planning & Zoning Commission twice and action had been postponed by council in order to be sure the mailings were sent and the public was aware of the ordinances. He added, there had been newspaper articles in regard to the proposed ordinances as well. Williams stated he did not want to postpone action again. Ms. Reilly -- P.O. Box 324, Kenai. Stated she opposed the ordinances and explained she believed the bed and breakfast and day care owners were business people with objectives to earn money. She added, though she had not read the ordinances, she felt the business owners knew enough to have had the items on the list in place. It was explained traditional commercial businesses have these types of inspections, but private residences do not; commercial business inspections are more stringent; the reason for inspections of bed and breakfasts and/or day cares is because they are businesses in private residences; and, doing the inspections is a basic life and health safety issue. VOTE: Frazer: Yes Williams: Yes Booke Yes Swarner: Absent Moore: Yes Porter: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. C-2. Ordinance No. 1885-2000 -- Requiring: (1) Home Occupation Day Care Facilities to be Inspected for Compliance with the Fire Code Prior to Issuance of a Permit and Every Other Year Thereafter; and (2) Other Home Occupations to be Inspected for Fire Code Compliance Prior to Issuance of a Permit if Deemed Necessary by the Fire Marshal. C-2a. Remove from table. MOTION: Councilman Bannock MOVED to remove Ordinance No. 1885-2000 from the table and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. C-2b. Consideration of ordinance. MOTION: Councilman Bannock MOVED for approval of Ordinance No. 1885-2000 and Councilman Frazer SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 4 C-2c. Substitute Ordinance No. 1885-2000 -- Requiring: (1) Home Occupation Day Care Facilities to be Inspected for Compliance with the Fire Code Prior to Issuance of a Permit and Every Other Year Thereafter; and (2) Other Home Occupations to be Inspected for Fire Code Compliance Prior to Issuance of a Permit if Deemed Necessary by the Fire Marshal. MOTION: Councilman Bannock MOVED to approve Substitute Ordinance No. 1885-2000 marked C-2c and Councilman Frazer SECONDED the motion. There were no public or council comments. VOTE: Frazer: Yes Williams: Yes Booke Yes Swarner: Absent Moore: Yes Porter: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. C-3, Ordinance No. 1889-2000 -- Increasing Estimated Revenue and Appropriations by $2,300 in the Senior Citizen Title III Grant Fund for a Grant From the State of Alaska. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1889-2000 and Councilman Moore SECONDED the motion. There were no public or council comments. VOTE: Frazer: Yes Williams: Yes Booke Yes Swarner: Absent Moore: Yes Porter: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. C-4, Resolution No. 2000-68 -- Transferring $10,000 in the Water and Sewer Special Revenue Fund for the Geographic Information System (GIS) Mapping Project. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 5 MOTION: Councilman Frazer MOVED for approval of Resolution No. 2000-68 and Councilman Bannock SECONDED the motion. There were no public comments. Administrative Assistant Kebschull explained this would hopefully be the last part of the GIS project for water/sewer as-builts. The as- builts were digitized which created a layer of information on the program. The information does not show service lines as that is the property owners' information. She referred to her memorandum included in the packet which outlined the cost savings that would occur using in-house temporary help. She also explained, during this phase, updating of the information would occur and hotlinks would be added to maps to either bring up an as -built or a list telling where to find the as -built. VOTE: There were no objections. SO ORDERED, C-5. Resolution No. 2000-69 -- Awarding the Bid to Seekins Ford for an Emergency Squad Fire Apparatus for the Total Amount of $148,142 and Authorizing Use of the Equipment Replacement Fund for the Purchase. MOTION: Councilman Moore MOVED for approval of Resolution No. 200-69 and Councilman Bannock SECONDED the motion. There were no public comments. Acting Fire Chief Walden explained the vehicle would allow the ability for additional lighting, better access for beach and bluff rescues and the city's insurance rating would be better because the vehicle would be used as a back-up vehicle to a fire engine. He also noted that although the bid packages were forwarded to several suppliers, only one bid was received. VOTE: There were no objections. SO ORDERED, C-6, Resolution No. 2000-70 -- Urging the Kenai Peninsula Borough Assembly's Passage of Their Ordinance No. 2000-59, Authorizing the Borough to Negotiate an Agreement with the State to Operate a Prison Facility and to Publicly Solicit Bids or Proposals for the Land, Design, Construction, and Operation of an 800 to 1,000-Bed Medium -Security Prison Facility to be Financed with Municipal Revenue Bonds. KENAI CITY COUNCIL MEETING MINUTES i DECEMBER 6, 2000 PAGE 6 MOTION: Councilman Bannock MOVED for approval of Resolution No. 2000-70 and Councilman Bookey SECONDED the motion. Richard Sitbon -- 118 Haida, Kenai. While distributing information handouts, Sitbon reported he is employed as a guard at the Wildwood Prison and is a local business owner. Stated he had no concerns with privately -owned prison, but was concerned with public safety, council's quick decision to support the building of a prison, additional families of prisoners moving into the area in regard to quality housing, etc. He suggested building a casino as an alternative. Richard Dominick -- P.O. Box 1634, Kenai. Explained he also is employed as a correctional officer at Wildwood and is a local business owner. Stated he opposed the city's resolution as well as the Borough's ordinance. He believed it was time for an additional prison, but not a privately -owned prison. He noted guards that would be hired at a privately -owned prison would be transient workers and that the corporation who would run the prison would be out to make a profit. Steve Richard -- Correctional officer at Wildwood. Referred to information which had been reported by the Kenai Natives Association and stated some of it was not accurate and misleading, noting the types of prisoners that would be housed; prisoners could be released into this community; prisoners would be allowed to go out into the community to visit family; and inadequate training. He also distributed information. George Avila -- Public Safety Employee Association representative. While distributing information, Avila explained his opposition to the proposed development as safety concerns for the community; guards who will be transient workers and whose certification will not be recognized by the State; impact on the area school populations; costs per prisoner; profits earned by the privately -owned prison will go out of state; and a private prison will fill the beds by bringing in out-of-state prisoners (other than Alaska prisoners) . BREAK TAKEN: 8:06 P.M. BACK TO ORDER: 8:17 P.M. Blaine Gilman -- 150 North Willow Street, Attorney representing Kenai Natives Association, Inc. (KNA) explained that because the state's initial proposal to build a prison at Greely would probably not go forward, KNA developed a concept to build a privately -owned prison next to the Wildwood Correctional Facility. As the project progressed, it was now envisioned that if the Borough issues revenue bonds, a private prison facility could be built somewhere on the Kenai Peninsula Borough. The Borough would then develop a Request for Proposals and KNA and their team could participate in that effort. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 7 Gilman added, a small window of opportunity was available for the Borough to take the project from the Greely area and move it to the Peninsula. The Legislature appropriated funding and passage of the Borough's ordinance would be the first step. If the borough ordinance passes, the borough agrees to issue revenue bonds and the RFP is awarded to KNA, it would mean 250-300 permanent jobs in the area and a capital construction project of $80-90 million. He noted, because it would be a significant project for the area, he thought council should support it. Gilman noted representatives from KNA were in the audience, as well as a Cornell Corrections representative. He added, it was hoped that with passage of the Borough ordinance the state funds could be appropriated to the Borough during the first part of the upcoming legislative session. Gilman added, the state was not funding publicly -owned prison facilities at this time. He also stated that if council did not support building a private facility in the area, they would be ignoring a large economic opportunity. Williams noted he did not believe the Borough held police powers or correctional facility/jail powers, and asked if they would have the authority to go forward with an RFP, etc. Gilman answered he did not know and felt the borough attorney would have researched that question. He noted, a special statute allowing a government- to - government relationship in regard to prisons for municipalities was in place. He added, he was aware the state was only interested in developing a prison with a government -to -government agreement. Williams stated he agreed placement of the facility would be an economic benefit, but was concerned about other economic costs that would impact the city. Ross asked if after the RFP is developed, would it be a public document which the council and administration would have the opportunity to review and comment as well as the RFP award when it could be seen what will be proposed by KNA. Gilman answered, it was his understanding that any RFP and response would be public information. Ross asked if Gilman was aware of any discussions between the state and borough, etc. that would make the facility anything more than medium security, i.e. would there be minimum in the facility. If there would be minimum, what would be the community infrastructure needed to support a minimum facility, i.e. half -way houses, work release, furlough, etc. Gilman answered it was his understanding it was a medium. However, he believed that would be up to the state. Ross noted, the RFP would indicate the custody grade that would be held there. Gilman answered, he believed that would be specified between the state and the borough in the intergovernmental agreement. The RFP would be general in nature. Frank Pruitt -- 8500 Upper Huffman Road, Anchorage. Explained he was under contract with Cornell Corrections to team with KNA to develop a proposal for a privately -owned prison at Wildwood. Pruitt offered information in regard to the state's decision to support private prisons instead of building more public facilities and noted declining revenue challenged the Department of Corrections to develop other ways of doing business, i.e. introduction of halfway houses, substance abuse programs, electronic monitoring, etc. He also noted, the people in key positions with the KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 8 Legislature will not support building or operating state -run facility and would probably rather send prisoners out of state instead. Councilman Bannock explained he requested the resolution be brought forward and noted he believed Kenai was in a better position since the development of the Wildwood Correctional Facility and believed this a great opportunity for the community. He noted, comments from previous speakers regarding private versus public facilities was not a good argument as the state had already made that decision. He noted he opposed halfway houses and believed more bricks and mortar were needed. Bannock also noted the resolution supported the borough efforts to get the funding transferred in order to build a facility in the borough. He urged passage of the resolution. Williams stated he believed there should be a very full and complete public hearing in regard to the prison industry in or near the city should be held in order for the community to have an opportunity to speak to the issue. Several people he spoke to regarding the issue prior to the meeting, were all opposed. Some questions he felt needed to be asked were: Who would pay for the additional services that will be required of the city if a prison be built near the community (Wildwood), i.e. utilities, water/sewer, etc.? A 800-1,000 bed facility is a lot of people and minimum/medium security would mean they would be there -only for awhile and because of that type of security, family members will move into the area. Who will handle the services supporting those who do not purchase homes, etc.? Who will pay for the additional school rooms and teachers needed? Who will pay for additional police and fire services? He added, he did not know the answers to the questions he asked and is not sure the citizens of Kenai were interested in taking on the commitment. Williams added, consideration should be given to what type of economy is wanted for Kenai and is there another way to create an economy within the community; is a prison economy the one wanted for the community; or, would a hotel/convention center economy be better as it would bring in similar paying jobs, etc. Williams stated, it wasn't that he didn't support a prison economy, but rather he questioned if there was a better way and who would take care of the other issues he discussed. In regard to halfway houses, he noted the issue had not been explored and with a 800-1,000 bed facility, there would be halfway houses and the question would be where will they be placed. He added, he wasn't sure the community wanted to address halfway houses again as they were opposed in the past. The question of whether the borough had authorization to develop a prison remained unanswered. Williams stated he was reluctant to support the resolution and preferred setting the issue aside for the council and let the borough take up the issue at their level and bring it back to the city later in a broad public forum. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 9 Councilman Bookey stated he had the same concerns Williams stated. He added, he didn't oppose the Wildwood Facility and believed it a good economic base for the area. Referring to the issues of additional police, fire, schools, etc., Bookey agreed they would have a major impact to the city. He stated he was not ready to support the resolution. Councilman Moore asked administration their feelings of what leverage the city would have if the borough ordinance would pass in regard to development of a prison outside the city limits, but in close proximity. Ross answered, without having the RFP to review and the ability to look at the proposal that might be submitted by KNA, his question could not be answered. He added, at this time, the specifications were not known; it was not know what the RFP would require of the contractor; and what the contractor proposes is not known. Ross stated, he would hope the RFP and RFP response could be reviewed by council and administration, but without them, the impact to utilities, schools, infrastructure requirements, etc. could not be calculated. Moore stated he understood that and wanted to know if the city would have the opportunity to review and comment. Ross answered, he believed Gilman indicated the city would have the opportunity to comment at each level. Councilman Frazer stated he agreed the public vs. private issue should be debated in a different forum, but knew there would be a lot of debate at different levels. He added, any major project within close proximity of Kenai would have an impact on city facilities, infrastructure, etc. whether it would be a major hotel, prison facility, gas pipeline terminus in Nikiski, etc. However, he believed a general amount of sales tax would be generated by having a facility developed in close proximity to the city which would offset some of the costs that may impact the city. In referring to the resolution, he believed it would be better to set it aside rather than send a negative message. If the borough ordinance passes, and negotiations take place between the borough and state, the city could then give input. He added, he didn't believe he was qualified to criticize or support a private facility based on the information given, however his inclination would be to support the resolution with the idea that the city would have the opportunity to give input later. MOTION TO TABLE: Councilman Moore MOVED to table the resolution until such time more information is known from the borough. Councilman Bookey SECONDED the motion. VOTE: Frazer: Yes Williams: Yes Booke Yes Swarner: Absent Moore: Yes Porter: Absent Bannock: No MOTION PASSED. KENAI CITY COUNCIL MEETING MINUTES � DECEMBER 6, 2000 PAGE 10 Williams noted, tabling the resolution did not mean that comments and discussion which took place were not relevant to the issue. He thanked all those who spoke to the issue and felt the council and administration learned a lot from them. The tabling of the resolution was not a failure or win for either side. ITEM D: COMMISSION/ COMMITTEE REPORTS D-1. Council on Aging -- Director Kelso noted the minutes of the last meeting were included in the packet and that Councilwoman Porter reported on the meeting at an earlier meeting. D-2. Airport Commission -- Director Cronkhite reported the minutes of the last meeting were included in the packet. The next meeting was scheduled for December 14. D-3., Harbor Commission -- Councilman Bookey reported the next meeting was scheduled for December 11. D-4. Library Commission -- Councilman Moore reported on the meeting held on December 5. He noted there was a recent new hire; there are problems with available space which the staff is trying to resolve; there were several new links on the library's website; and the holiday open house was scheduled for December 14 from 4 to 7 p.m. D-5. Parks & Recreation Commission -- Councilman Frazer reported the next meeting was scheduled for December 7. D-6. Planning & Zoning Commission -- No report. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- No report. D-7b. Kenai Convention & Visitors Bureau Board -- Bookey reported the next meeting was scheduled for December 11 at 5:00 p.m.; the "2001 Fish Odyssey" will have approximately 84 exhibits and could be bigger than the 2000 art show; a winter open house was scheduled for December 27; and the new board members are to be announced on January 11. D-7c. Alaska Municipal League Report -- Williams reported he and Vice Mayor Swarner attended the AML Conference in Juneau and Swarner was now attending the NLC Conference in Boston. ITEM E: MINUTES KENAI CITY COUNCIL MEETING MINUTES . DECEMBER 6, 2000 PAGE 11 E-1, Regular Meeting of November 15, 2000 -- Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1. Discussion -- City Economic Forum Williams reported he was working with the finance director and fire marshal to develop a short report which he would be giving at the Peninsula -wide forum on December 8. He urged council members to attend. He noted there had not yet been a lot planned for the city's forum scheduled for February. He expected more to be done after the borough -wide forum. Bookey stated his desire that the city forum focus exclusively on the City of Kenai; his concern that time was passing quickly and plans were not being formulated; and that he wanted council to be involved in planning the agenda and who would be invited to make presentations. Discussion followed and it was decided to hold a work session on December 20 beginning at 6:00 p.m. The director of the EDD would be invited to attend to discuss the forum with council. G-2. Discussion -- Proposed Kenai Peninsula Borough Negotiated Land Exchange/Herman & Irene Fandel, Applicants. Ross referred to information included in the packet which included minutes of the Borough Planning Commission's meeting. He noted Borough representatives were in the audience to speak to the issue. Ross explained there were two issues of which council should be aware and perhaps address: (1) the non-public offered sale to cure a trespass situation; and (2) a piece of borough land used in a noncompliant zoning situation (if the land is replatted and transferred to Fandel, it would not be able to be used in conjunction with Fandel's current home -use occupation permit) . Ross noted, the first concern is something the Borough's Planning Commission would have to address and the second, the city's Planning & Zoning Commission would need to address prior to it coming to council for consideration. Roy Dudley -- Kenai Peninsula Borough representative. Dudley distributed vicinity maps and aerial photos of the properties. Dudley explained Fandel had been occupying the borough property since 1985 and the matter was brought to the borough's attention about a year ago. He noted, their process when finding a trespass is to (1) determine who is trespassing; (2) is the trespass on borough land; and (3) will the trespass be authorized or ejected. Dudley stated the current borough administration chose to eject the trespass. He added, they were proceeding under the KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 12 KPB Code 17.10.100(i) and 17.10.220(c) by noticing other property owners within the area of their decision to negotiate a sale. Dudley reviewed the properties to be exchanged and their values, explaining the Fandel property to be exchanged was valued at $7,000 for a ten -acre parcel and the borough parcel on which Fandel's are trespassing was valued at $35,200. He noted Fandel's would have to make up the difference in value. Ross noted the borough code allowed for "the smallest practicable parcel" to alleviate the trespass and suggested that would indicate an encroachment of a fence, footing, etc. and is alleviated. Ross asked how it was decided to offer the size of the parcel under the section of their code used, noting it was an undeveloped piece of property. Dudley answered, the application offers the property to be exchanged, however borough administration had not ruled whether the application met the code and the decision to go forward with the process was Mayor Bagley's. Williams noted the assessed value on the three city lots was $29,600 each and the appraised value on the piece being trespassed upon was valued at $35,000 even though it was the size of the other three lots combined. He asked why there was such a disparity. Dudley answered the main detriment to the property on which the trespass was occurring is a storm drain easement and was calculated into the determination. Williams noted the Nikiski property to be exchanged had flaws that would render the property somewhat useless and would decrease the value of the land. He added, his opinion of a procedure to clear a long-standing trespass and get the property on the tax rolls would be to have the Fandels purchase the property at market value instead of the borough acquiring additional lands in Nikiski. Dudley noted the Nikiski property did not have developed access and it would be difficult to develop access to the property, although the property was contiguous to other borough land. Bannock noted the city's Planning & Zoning Commission dealt with the issue and it was their position it was not a city issue, but was the borough's. He agreed with Williams' thoughts that the Fandels should be asked to purchase the property in order to cure the trespass as he didn't think the land exchange was in the borough's best benefit. However, that would be a borough prerogative. Williams noted, if the transaction takes place, the city will have to deal with the home occupation permit for the questioned property. Frazer asked if a home occupation permit could be issued if there's no house on the property. Ross answered, that would be for the Planning & Zoning Commission to consider and suggested there could be alternatives, i.e. replat. Bookey asked if it was a gray area if there's a permit for the house, but the other property is used for a picnic and storage area. Ross answered, the only issue administration wanted to bring forward was that the home occupation permit would not extend to the adjacent property. At this time, there would not be a KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 13 problem, however if the property is transferred to Fandel, it would have to be reviewed and Fandel made aware of restrictions involved. There were no further comments or action taken. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Bookey MOVED to pay the bills and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, H-2., Purchase Orders Exceeding $2,500 MOTION: Councilman Bookey MOVED to approve the purchase orders exceeding $2,500 and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, H-3. Ordinance No. 1890-2000 -- Increasing Estimated Revenues and Appropriations by $3,000 for a Volunteer Fire Assistance Grant From the State of Alaska. Introduced by consent agenda. H-4. Ordinance No. 1891-2000 -- Increasing Estimated Revenues and Appropriations by $7,946 in the General Fund for Library Computer Equipment. Introduced by consent agenda. H-5. Ordinance No. 1892-2000 -- Amending KMC 14.05.010 and 14.05.105 to Assigning the Duties of Historic Preservation to the Kenai Planning and Zoning Commission. Introduced by consent agenda. H-6. Approval -- Assignments of Shore Fishery Leases -- Tracts A & B, City of Kenai Shore Fishery No. 1 /From Thad A. Carlson and Kendall H. Crookston to Ted J. Crookston. Ross noted Kendall H. Crookston should be changed to Kendall H. Carlson and that administration recommended approval of the assignment. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 14 MOTION: Councilman Bookey MOVED to approve the Assignments of Shore Fishery Leases -- Tracts A & B, City of Kenai Shore Fishery No. 1 /From Thad A. Carlson and Kendall H. Carlson to Ted J. Crookston and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED, H-7. Approval -- Special Use Permit/ ERA Helicopter, Inc. -- Helicopter Parking. Cronkhite explained the city could not deny the request by ERA to use the airport to park their helicopters, but research was necessary in order to set a permit lease rate. Administration recommended the lease rate noted in the special use permit included in the packet ($ 100 /month). Bookey noted his objection to charging only $100 a month for a multimillion- dollar operation. Frazer stated his objection to charging a lease rate based on the ability to pay. MOTION: Councilman Frazer MOVED to approve the Special Use Permit to ERA Helicopter, Inc. and Councilman Moore SECONDED the motion. VOTE: Frazer: Yes Williams: Yes Booke No Swarner: Absent Moore: Yes Porter: Absent Bannock: Yes MOTION PASSED, ITEM I: ADMINISTRATION REPORTS Mayor -- Williams reported the following: • He would be traveling to Fairbanks on 12 / 11-12 / 00 in regard to the gas pipeline issue for the Borough. He noted the port authority mayors were getting into the discussion and that he would be supporting the borough's position that part of the line should come to Nikiski. • He was requested by the borough to coordinate a Challenger flight between the Assembly and Council. The Assembly will then fly a mission at the Center for their members and members of the Fairbanks Assembly. Williams added, he was very interested in the Fairbanks Assembly coming to Kenai to see Nikiski in regard to the gas pipeline and GTL plant. The borough/Fairbanks flight will be paid KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6, 2000 PAGE 15 by them. The Kenai Council/Assembly flight would take place after the first of the year and the cost will be split with each paying $400. There were no objections. Williams also noted he received suggestions for other flights, i.e. inter -department training and he was working with Representative Gail Phillips in arranging a flight with 24 legislators which would be sponsored by BP. I-2. City Manager -- Ross reported the following: • The borough's Foreign Trade Zone application was on hold because the application now requires economic feasibility studies being included with applications. The Peninsula city managers met and agreed the borough would hold seminars to educate Peninsula businesses on Foreign Trade Zones and then an economic development study could be done identifying potentials and decide whether qualifications would be met to go forward with the application. • Some city offices will be closed on December 22 and December 29 at 2:00 p.m. if council had no objections. There were no objections stated. • Referring to his memorandum included in the packet, he requested council to set a work session during their December 20 meeting to discuss a process for hiring a new city manager. Information will be included which was used during the last search. He noted, he had enjoyed working for the city as its city manager, but felt the time was right to make a change and wanted this council to make a decision on the next manager. I-3. Attorney -- No report. I-4. City Clerk -- No report. I-5. Finance Director -- No report. I-6. Public Works Managers Korn elis-- • Attended a meeting in regard to the Kenai Coastal Trail/Bluff Restoration Project along with representatives of Petratrovich, Nottingham 8v Drage (PND) and borough agencies. He noted, PND had hired an expert from the University of Alaska to study sedimentation in regard to the city's sand dunes. • He met with Phil Bryson in regard to the pedestrian/bike path on Bridge Access Road and their thoughts were to keep the trail under and near the bridge on the west side in order to tie in with the existing boardwalk. Williams suggested a narrative of the coastal work done on the highway along the Turnagain Arm be included with the project proposal. � La Shot: Reported the owner of the recreational vehicle on Redoubt (discussed at a prior meeting) was now in compliance with the Kenai Municipal Code. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 6 2000 PAGE 16 I-?. Airport Manager -- No report. ITEM J: DISCUSSION J-1. Citizens -- None. J-2. Council -- None. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10 : 2 5 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk