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HomeMy WebLinkAbout1999-01-20 Council MinutesAGENDA KENAI CITY COUNCIL -REGULAR MEETING JANUARY 20, 1999 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. Bob Favretto -- Kenai Chamber of Commerce/Economic Development Committee -- Career Fair. 2. Bill Nelson -- Wm. Nelson & Associates -- Cunningham Park Improvements. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1809-99 -- Amending KMC 14.20.280 to Require Applicants to Post Property Which is the Subject of a Public Hearing Before the Planning 8. Zoning Commission. 2. Resolution No. 99-3 -- Requesting the Alaska Board of Fisheries to Continue Management of the Kenai River Red Salmon for Maximum Sustained Yield. 3. Resolution No. 99-4 -- Transferring Funds to Update the Airport Layout Plan (ALP) Drawings. 4. 1998/99 Continued Operation of Liquor License -- PROTESTS. 5. *1999 Liquor License Renewal -- Oaken Keg Spirit Shop #58/Package Store. -1- -� 6. *Liquor License Transfer -- One Stop Liquor/Package Store From One Stop Liquors to Spur Liquor, Inc. ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8v Recreation Commission 6. Planning 8. 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 1. *Regular Meeting of January 6, 1999. 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. 1810-99 -- Finding That Certain City -Owned Land, Described as Lot 1-B, Block 2, Pavilion Subdivision, Is Not Required for a Public Purpose. 4. Approval -- Office Agreement Renewal/Approximately 1,147 Square Feet of Office Space Located on the First Floor of the Kenai City Hall Building, Lot 11, Block 1, Fidalgo Commercial Center Subdivision -- State of Alaska Department of Health and Social Services. 5. Approval -- Assignment of Lease/Lot 6-A, Block 1, Gusty Subdivision No. 4 From D. Roberts Enterprise Limited Partnership and Dan Roberts to Calvin and Nancy Gourley, d/b/a Groomingdales. -2- 7. ITEM I: 1. 2. 3. 4. 5. 6. 7. ITEM J: Approval -- Special Use Permit/Automated Teller Machine at Kenai Municipal Airport Terminal -- Reean Pitts. Discussion -- Future Economic Outlook Forum/Alaska Conference of Mayors. ADMINISTRATION REPORTS Mayor City Manager Attorney City Clerk Finance Director Public Works Airport Manager DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING JANUARY 20, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http : f f www. ci. kenai. ak. u s Mayor John J. Williams, Presiding ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 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: Williams, Bookey, Swarner, Moore, and Bannock. Absent was: Measles. A-5. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD TO: D-5, Parks & Recreation Commission -- Dick Hultberg letter requesting to miss three Commission meetings, February through April. ADD TO: Clerk's Report, I-4 -- Letter from Peninsula Winter Games requesting budgeted donation of $300 and additional $200. MOTION: Councilwoman Swarner MOVED for approval of the agenda as amended. There were no objections. SO ORDERED. A-6, CONSENT AGENDA Mayor Williams reported he had no changes to the consent agenda. Councilman Bannock MOVED for approval of the consent agenda as presented and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Bob Favretto -- Kenai Chamber of Commerce/Economic Development Committee -- Career Fair. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 2 Favretto stated he lived at 1531 Toyon Way, Kenai. Favretto explained, he is the chair of the Economic Development District Board and President of the Chamber of Commerce. He was speaking to council to request financial support of not -to -exceed $5,000 for the Chambers' Career Fair to be held on March 11, 1999. He added, the Career Fair was organized to provide the local youth with local job opportunities which may or may not require attending college. Councilman Bookey asked if any support had been received from other Peninsula communities or the Borough. Favretto answered, they had not made those contacts at this time. They were requesting financial support to help cover costs of advertising through the paper, radio, etc. Discussion took place as to whether there were funds in the Legislative budget to cover a donation of $5,000. Williams suggested taking the funds from those set aside for the Chamber's Economic Development Committee, however it was noted those funds had lapsed with the 1997-98 budget. Bannock referred to funds set aside in this year's budget for an Economic Outlook Forum and suggested funds be taken from that amount. MOTION: Councilman Bannock MOVED to donate up to not -to -exceed $5,000 to the Chamber Economic Development Committee for that purpose and Councilman Bookey SECONDED the motion. Favretto added, they will be advertising in the local newspapers and on the radios and will also try to get support from all the businesses to fill the booths. Picnic -type food will also be available. Williams noted he was still hoping to hold the Outlook Forum and was hesitant to use funds from those set aside. It was noted there were also funds in Professional Services which had not been used for hiring a lobbyist. Bannock stated the motion was to donate the funds and from where to take the funds could be decided by administration. He noted, he would prefer using funds already in the budget and transfer funds for the Forum when that time comes. Favretto noted he had commitments from private businesses to donate toward the costs of a Forum. He added, the problem is how to channel that money from the Chamber back to the city. He noted, there is a lot of interest in the community for holding another forum. VOTE: Councilman Bannock requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. B-24, Bill Nelson -- Wm. Nelson & Associates -- Cunningham Park Improvements. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 3 Nelson explained he had been retained by the city to put together some preliminary plans for upgrading Cunningham Park with the cost of the improvements to be borne by the Kenai River Sportiishing, Inc. and the City. He added, he met with representatives of Kenai River Sportiishing and city staff and gathered ideas of what they would like to see at the Park, i.e. habitat improvements, fishing access, sightseeing access and river access for boats. Nelson continued, Cunningham Park is on Beaver Loop Road and there are existing facilities there, i.e. a small gravel ramp to the river for launching boats, etc. The plan includes changing the gravel ramp to a paved ramp where boats on trailers can access the river; a grating boardwalk -type ramp around the top of the bluff; handicap access to the river bank; and a steeper trail to the downriver side. The idea is there will be people who will want to go right down the ramp to fish along the beach and others who may want to walk down to the west end. The design gives two means of accessing the river and the handicap ramp. Nelson added, a major portion of the project is to stabilize the bluff (because it is subject to a lot of erosion) , using some bio-engineering techniques instead of placing rip -rap or a retaining wall. The bio-engineering would include root wads, root stumps (like used at Centennial Park in Soldotna); placing tree trunks into the bank with the roots sticking outward, build a new bank slope on top, layering dirt and willow branches so the bank will become a living rooted material with the stumps protecting the bank from wave action, wind or high tide. Nelson continued, the ramp wouldn't go all the way out to the water at low tide. He noted, some concern was stated by the city that maybe the ramp should not be there and make the facility available only for bank fishing. He added, council should consider if there is a ramp there, there is always more pressure on the river to get boat access and there may be some movement in the future to make the river drift fishing only, or some portions of it. If that happens, it will be more important to have more boat ramps along the river. Nelson added, if there is an existing ramp, it may be easier to improve the present ramp now than to abandon it and come back in the future to replace it. Also, Nelson reported, regulatory agencies may speak to the gravel path to the bank for handicap access. He noted, the park may be subject to no gravel pathways within 50 feet of the ordinary high water line. He was not aware if the city would be exempt from that requirement or not. If the city is not exempt, the handicap access path may need to be an elevated walkway which would be more expensive. Bookey asked the cost estimate for the project. Nelson answered there was a budget of $100,000 and felt the present design would fall within that budget. Bookey stated the Harbor Commission reviewed the design and he and the Commission felt the park was being taken from a bank fishing area and moving to a boat -launch retrieval station. He added, he didn't believe there was enough parking area to substantiate something of that magnitude. He noted, he liked the majority of the project thus far, but not the boat launch. Bookey added, he felt the park would absorb a lot more KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 4 impact that would be hard for the city to handle. Bookey asked council to take a hard look at the design as he felt the park was a unique system for council, the city residents and for travelers. Moore stated his agreement with Bookey. He added, he uses the park a lot with his family and it is primarily a bank fishery. To improve the boat access, he believed, would congest the area to a degree where the bank fishermen would be moved out. He noted he was also concerned about the parking area as the council previously had received complaints from the Beaver Loop residents because of the parking along the road. Moore added, he would be concerned the playground equipment and multiple boats would not be a good mix. Moore stated he did not think the park should be designated as a boat -launch park as it was more a bank fishery park. Councilman Bannock reported the Parks & Recreation Commission discussed the matter at their last meeting and their consensus was to improve the boat launch. Parks & Recreation Director Frates reported the playground equipment had been removed due to vehicle traffic and safety concerns. Councilwoman Swarner stated she agreed with both Bookey and Moore. She added, she was not expecting to see the launch improved to a paved launch and extended. She noted, she really liked the steel grating, observation deck and handicap - accessible paths. Also, Swarner stated she was concerned about the continual costs. Nelson stated the launch could be dropped out of the design without adversely affecting the remaining portion of the design. Bookey stated the Harbor Commission commented they would feel better about the ramp improvements if the there was a possibility to maintain the ramp as a limited part of the project. If the ramp is upgraded as designed, it would become another access for the dipnet fishery for 30 days and override the use of the park as a bank fishery. He added, the park is not capable of handling that amount of use. Bookey continued, the park could handle the magnitude of a smaller ramp for hand -carrying boats. Nelson asked if he was thinking of a haul -down ramp where the boat could be carried? Bookey answered yes. He added, then it could possibly become handicap - accessible from the ramp. Bookey added, he didn't want the park to become a major retrieval and launching area. Williams noted the bank in the area is mostly peat and asked how Nelson thought the gravel pad could be placed in the peat. Nelson explained, the bank is almost vertical and he is proposing to cut the bank back, digging it out at the base and putting a solid base under it. The material to rebuild the slope will be probably imported topsoil and gravel mixtures. The slope would go about ten feet back into the bank. Williams noted, it was never the intention of Mrs. Cunningham to ever have a boat ramp there and the ramp didn't exist on paper. He added, the reason the city maintains and continues to use the boat ramp portion is because if the ramp is ever closed the regulatory agencies will never allow it to be reopened. William added, how that plays into building a boat ramp and getting it permitted is another problem as KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 5 the city has been told by state and federal agencies that there will never be a city boat harbor or ramp in the river. He added, he questioned whether the city would be able to get a permit for the ramp in the first place. Williams suggested council needed to examine the plan and decide whether there were some issues that could be addressed regarding the boardwalk and handicap - access path. He added, the parking is so intense there now that if the boat ramp is upgraded, it will become more of a hazard. Nelson stated he didn't think Kenai River Sportfishing was real strongly in favor of upgrading the boat ramp and he may have made assumptions that the boat ramp was to be improved. He added, he liked the idea of making the ramp a haul -your - boat ramp. Jim Golden -- Golden stated he was the chairman of the Kenai River Sportfishing Association. He noted, the Association would have no problem with the boat ramp. What they recognized was that the area was seeing higher use and they wanted to make it more user friendly. He added, bank fishery improvement is a major priority as long as it wouldn't abuse habitat and the area and that is all they want. They recognize that if the boat ramp is there, there will be a problem with the parking. They are in favor of improving the park so that it has handicap access and has handicap -access restrooms and it be a more user friendly bank fishery. The boat ramp is secondary. Bookey asked if the organization would have any objections to making the ramp a haul -out type of ramp. Golden answered, as long as it was done to the Corps of Engineers' requirements, they would have no problem. He added, they would really like to see less destruction of the bank and allow better access. Williams noted, all had the best interest of Cunningham Park in mind without going into a major expansion of the Park and without increasing the traffic and parking. Bookey stated he would like the design to return to Nelson to redesign the ramp. He added, he believed with the redesign of the ramp to a haul -out and the other improvements, the park would be enhanced and made into a real show place. Swarner and Moore agreed. Bannock stated he told the Parks 8. Recreation Commission he did not have a lot of concern whether the ramp was included or removed. However, he felt there was a lot of merit to the fact that if the ramp is eliminated, it probably would never be replaced. He said he would call the Commissioners and discuss the matter with them to see if they would want to change their opinion on the design of the ramp. Williams noted the organization was anxious to have the improvements done in the spring and wondered if Nelson saw any problems in the permitting that would preclude the project from going ahead. Nelson answered, he thought it would be best if he met with the permitting agencies in person, show them the plan, discuss the gravel path and get direction. Then rework the plans and bring them back to the city, getting a general concurrence before going to the next stage. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 6 Council directed that Nelson and administration proceed along the lines council discussed, making the boat ramp less a part of the overall project, work with the permitting agencies and bring the design back to council as soon as possible. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1809-99 -- Amending KMC 14.20.280 to Require Applicants to Post Property Which is the Subject of a Public Hearing Before the Planning 8v Zoning Commission. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1809-99 and Councilman Bookey SECONDED the motion. There were no public comments. Williams explained, the ordinance had been written at the request of the public. It was explained proof of posting would be the responsibility of the applicant who will complete a form stating the date and time the sign was posted. Moore asked what would happen if the sign was removed from the applicant's yard by someone other than the applicant. Attorney Graves answered that someone from Public Works would have to check and make sure the sign was up during the posting period and if it was taken down early, the public hearing could be continued until the necessary posting time passed. Swarner stated her concern about the size of the sign and felt the sign should be as large as possible. Graves stated, in investigating what other communities' codes required, none discussed the size of the sign, only that the zoning office would provide the sign. He noted, there are two sizes of signs available from the company contacted; 22" x 14" and 22" x 28". Williams noted a realty sign is usually 22" x 24". He added, he believed the smaller sign would be best as peoples' attention would be drawn to the sign and it would be readable as well. Swarner suggested the sign be larger than the 22 x 28 size. Bookey noted, a variance would then be needed for placing the sign. He added, he believed a larger sign would be overkill and that the smaller standard sign would be sufficient. Moore agreed and asked what information the sign would give. Williams noted, the sign would state the public hearing date, who to contact if there are questions, etc. Also, the ordinance requires the sign to be "...visible from each improved street adjacent to the property." He added, if the sign is not properly placed, it could be grounds for denial. Bannock reported the Planning & Zoning Commission discussed the ordinance at great length and most felt it was an excellent idea. He added, he personally had no opinion about the size of the sign, however suggested the ordinance be adopted with a year's sunset date on it in order to review the success of the ordinance. Then, if there are problems with the ordinance, it could be reviewed by council. Bookey KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 7 stated he had no problem with reviewing the ordinance in a year, but would prefer not putting a sunset date on it. He added, if council wants to review it in a year, they could just bring it back up for discussion. Williams asked if property is posted for only variances or conditional use permits or for any public hearing coming before the Planning & Zoning Commission. Graves answered, for anything requiring a public hearing. Swarner requested to direct administration to use as large a sign as possible within the current code. Bannock noted, the code exempts the city from size of signs it places. Swarner requested the signs be 22" x 28". Bookey stated his concern that signs that large would be blown away by the wind. Moore suggested using the 14" x 22" signs. Bookey agreed. VOTE: Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. C-2, Resolution No. 99-3 -- Requesting the Alaska Board of Fisheries to Continue Management of the Kenai River Red Salmon for Maximum Sustained Yield. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-3 and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. Williams requested he be able to speak to the resolution and offer several amendments. Chris Garcia -- P.O. Box 203, 2528 Beaver Loop Road, Kenai. Garcia asked if the resolution was proposing to keep the system in place and not start using a new system. Williams answered yes. Williams noted, there are two issues in regard to the resolution: The sustained yield system (which is used now) and the optimum yield system (which is being proposed) and, others who want to enhance the Susitna River fishing through controlling activity on the Kenai River. He added, he believed if the optimum system becomes law, it would further decimate an already drastically reduced commercial fishery in the Cook Inlet. At the same time, if that situation occurs, it would return the Kenai River to a cycle of big years and small years and there would not be leveling the highs and lows to have a more sustained fishery, which is what the state has been doing for the last years. Williams added, he believed the original thought when establishing the Board of Fisheries was to take the control of fisheries out of the KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 8 hands of politics and place in it hands of biologists. With the optimum system, he believed, it would take the control from the biologists and put it back in the hands of the politicians. Garcia agreed with Williams and added, the new proposals were basically to attack commercial fishermen, which in turn attacks the Kenai community. He requested the council support the resolution. Garcia added, he understood the optimum yield system would affect fishing in Cordova if the Susitna River count was low. Williams requested the following amendments (underline =add, bracketed and capitalized =remove]: 1. First "Whereas": "... past interpreted to mean maximum sustained yield on major stocks..." 2. Third "Whereas": "...attempts to prevent [OVER -ESCAPEMENT] brood -year interaction and the resultant..." 3. Add Fifth "Whereas": Whereas, when conservation concerns for other stocks have arisen in season, Alaska Department of Fish & Game has foregone Kenai maximum sustained yield management to ensure the health of those stocks. 4. "Now, Therefore": "...continue the maximum sustained yield management..." Bannock requested an explanation of "brood -year interaction." David Martin -- Explained "brood -year interaction" was a new word to use instead of over -escapement. He continued, over -escapement of one year trickles down to all the other classes and affects the fry and smolt in various numbers of ways. Paul Dale -- Stated he supported the resolution and appreciated the support the council and city has shown the commercial fishing industry in the area. He added, his view of the proposals before the Board of Fisheries is that it is a thinly -veiled attempt to remove the commercial priority on sockeye salmon. In doing that, it would increase the value of both the commercial sport fishery and recreational sport fishery. Dale noted, the loss of the sockeye salmon would not make up for the marginal increase in value on the other end. He added, he was aware some of the council members were hesitant to involve themselves and the city in allocation disputes, etc. and understood it, but wished the State had a more reliable system in place to handle the complexities of allocation. Dale noted, other municipalities that have a financial stake in these issues are and have been involving themselves politically in the processes of allocation. He added, he believed that left the council in a difficult position, but the reality was that it is a battleground in the industry. The Matanuska- Susitna Borough, Governor, Anchorage, and others have made themselves a part of the battleground and he appreciated council's help in effecting a balance. Dale noted, he believed the fish businesses and recreational users will come to a balance and is probably closer than they think. Drew Sparlin-- Sparlin explained he has been a commercial fisherman for 32 years. He felt it needed to be pointed out that many of the proposals that the Board of KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 9 Fisheries is considering are requesting to take the upper limit of the escapement goals off the Kenai River. He added, the city's resolution will send a very good message to the Board to say it is necessary to manage the fisheries biologically and remove the politics as much as possible. Sparlin continued, there is no history in the nation where fisheries have survived through political management. Sparlin encouraged passage of the resolution and supported the amendments requested. He added, he did question removing the term "over escapement" and replacing it with "brood -year interaction" because most people understand the term "over escapement." MOTION TO AMEND: Councilwoman Swarner MOVED for the amendments to be added and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. VOTE ON AMENDED MOTION: Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. BREAK TAKEN: 8:12 P.M. BACK TO ORDER: 8:24 P.M. C-3, Resolution No. 99-4 -- Transferring finds to Update the Airport Layout Plan (ALP) Drawings. MOTION: Councilman Bookey MOVED for approval of Resolution No. 99-4 and Councilwoman Swarner SECONDED the motion. There were no public comments. Ross explained, La Shot included a memorandum with the resolution for council's information. He added, the resolution requests transfer of funds due to a request change in the Airport Layout Plan (ALP) drawings by the FAA. The change came about during the formation of the ALP. The change is a direct result of the addition of the north taxiway and FAA feels the use of the excess funds from the taxiway grant is appropriate. Ross added, FAA will be paying for the project. Williams asked what Change 5 criteria was and La Shot explained a lot of it had to do with the coverage of the ALP. He continued, there would have to be some field surveying done to pick up more on both ends of the runway and show it on the plans. Atha explained, the FAA updates their standards, redefining criteria for instrument landing systems. In the future there will probably be additional changes. He added, KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 10 the city got caught in between the changes. The items requiring new instruments and criteria don't apply to what was being done. He added, this would bring the city's airport layout plan up to the latest standards. Williams asked if it was incorporating a change in boundaries to certain elements of the airport (runway versus taxiway or approaches) . Atha answered, as it applied to the city, it was simply redrawing some of the already drawn elements on the ALP. He added, the changes that area required by FAA are applied to all airports and all ALPs. The city got caught between technical requirements. La Shot added, the ALP would not expand the airport proper, but would expand the Plan area, i.e. approach zones, showing of obstacles in the approach zones, etc. that weren't required before. He added, a development grant is being used to do the work, adding it to a planning grant (no funds can be added to the planning grant) . La Shot noted, as other projects are done on the airport in the future, the ALP will be updated using that project money at the end. It was noted the bulk of the work had been subcontracted to Wince-Corthell-Bryson and they would be doing the work. La Shot noted, he had spoken with representatives at FAA and they agreed this would be an appropriate way to do the work and they will fund it. Bannock suggested an amendment be made to the fifth "whereas" and strike "is contingent upon FAA approval" and replace it with "has been approved by FAA." La Shot explained, the "whereas" had been written in that way because to this point it had been verbal. He added, FAA had suggested the work be done and that they fund the work. Bannock asked what would happen if FAA decides not to fund the work. Ross answered, if FAA doesn't agree to paying the cost of the work, the city won't have the work done. The issue will be returned to council. He added, the appropriation is contingent upon being paid for with FAA funds. Williams stated he would like to have a clearer understanding of exactly what work is required. He added, that, coupled with the fact this will be the third time the city has paid Aries Consultants money for their work. VOTE: Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Absent Bannock: Yes MOTION PASSED UNANIMOUSLY. C-4, 1998/99 Continued Operation of Liquor License -- PROTESTS. Clerk Freas explained, the City of Kenai is required by the Alcoholic Control Board to file letters protesting the continued operation of liquor licenses out of compliance in the city by January 31 of each year. Referring to her memorandum included in the packet, Freas reported The New Peking had come current and should not be protested. However, Old Town Village Restaurant was owing business and real property taxes as well as sales taxes; Alaskalanes, Inc. is owing lease and KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 11 water/sewer payments and are not current on their payment plan (late on their past due amount and late on the January lease payment); and Eaglechief, Inc. is owing lease payments, water/sewer payments. Freas stated she wanted to hold the letter of objection until noon on January 29, 1999 in order for the letter to be forwarded to the ABC Board by closing of that day and requested council's motion to reflect that information. Williams stated he was uncomfortable with the magnitude of the protests and how it will affect the business community if part of the businesses' operations would have to cease. He suggested delaying action until the special council meeting scheduled for January 28. Freas was asked for amounts owed. She noted Old Town Village was owing approximately $30,000, Alaskalanes was owing approximately $3,000, and Eagle Chief owed approximately $10,000. Freas continued, if the motion is to wait until noon on the 29th that would do what Mayor Williams was suggesting. She added, if, after the protest is made, the entity comes current, the information is brought to council and they can withdraw the protest. MOTION: Councilwoman Swarner MOVED to protest the continued operation of the liquor licenses noted and the letter of protest be held until noon on January 29, 1999 in order to offer more time for the accounts to come current. Bannock asked if an applicant entered into a payment plan by noon on January 29, 1999, would that be considered current by council. Williams stated they could, but would have to set up payment plans with the borough for property and sales taxes. Freas noted, the applicants have had the opportunity to set up payment plans but had not done so. Williams noted, the letter of protest would be held until noon on January 29, but that council will review the matter again at their special meeting on January 28. Swarner stated she did not think council needed to review the matter on the 28thas the code required the letter of protests be filed. Williams suggested, if there was an opportunity to delay the actions through a tabling motion, etc., he thought it should be done. Swarner noted, the code required letters of objection. Williams stated, to him it didn't matter what the code required if it would allow an opportunity for a business to come current. Swarner stated, the code required the letters of protest be submitted and thought council was obligated to follow the code. VOTE: There were no objections. SO ORDERED, C-5, 1999 Liquor License Renewal -- Oaken Keg Spirit Shop #58/Package Store. Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 12 C-6. Liquor License Transfer -- One Stop Liquor/ Package Store From One Stop Liquors to Spur Liquor, Inc. Approved by consent agenda. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- Swarner reported the next meeting would be held on February 4 at 10:00 a.m. at the Senior Center. D-2, Airport Commission -- Atha reported the commission met and the minutes were included in the packet. He noted, the only action item was recommending the placing of an ATM machine at the airport which was on council's agenda for consideration. Moore asked the status of Airline Support, Inc. Atha reported Airline Support was to attend a meeting in San Antonio to acquire an aircraft lease. He had not heard back from them but will monitor the situation. Swarner asked the progress on the restaurant lease. Atha reported Mr. Middleton was interested in entertaining a sublease. There is one person who had expressed an interest, but was concerned of whether or not it might be better to have the city bid the lease again rather than assume a shorter term lease. After reviewing the existing lease arrangement, the person was not sure the costs could be amortized. He will continue to discuss the matter. Ross noted, it would be an assignment of lease at this time and the person would be in a situation of having to negotiate and buy out the present lessee for the years left on the lease. After the lease expires, the person would be in a place of competitive bidding with the city and wouldn't have to go through third -party negotiations. Bannock asked what the lease requires as hours of operation, i.e. if they are out of compliance with the lease, what is the city doing about it. Ross noted, the lease had no requirements for hours of operation. That matter had been addressed by council and was deleted from the lease. He added, the lessee had given notice under the 90- day clause to quit the premises. During January or early February the lessee will remove his equipment. In the interim, the lessee was attempting to negotiate an assignment. Ross added, the city would be taking the leased property back. The lessee is current on the lease payments. D-3. Harbor Commission -- Bookey reported a meeting was held on January 11 and the minutes were included in the packet. He noted, the main discussion was the Cunningham Park matter which was discussed earlier in the council meeting. The Commission also reviewed preliminary plans for the Kenai River Bluff Erosion Study prepared by Nottingham, Petratrovich & Drage. He noted, Kornelis had the drawings available for council to review. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 13 Bookey added, the Commission recommended going forward and finish the plan with cost estimates to be forwarded by Nottingham. After the Commission's review of the estimates, he believed they would make a recommendation to council of what they would like to do. Williams asked if the city had any responsibility in the stockpiling of snow on the bluff at the end of Willow Street. Kornelis answered, none. Williams continued, a private contractor had piled snow on the edge of the bluff. Williams stated he was concerned the snow melting in the spring could influence more erosion. Williams requested administration review the situation. Kornelis noted, he received a phone call in regard to the snow piling on the property. One of the street crew spoke to the person doing the plowing and he requested the contractor stop. Freas referred to her memorandum included in the packet which noted Kornelis had spoken to Mike McCune in regard to renewing his appointment to the Harbor Commission. McCune would like to continue his appointment. There were no objections from council to continue McCune's term. D-4. Library Commission -- Moore reported the next meeting would be held on February 2, 1999. D-5. Parks & Recreation Commission -- Bannock reported the Commission met on January 7 and the minutes of that meeting were included in the packet. He noted, a presentation was made by representatives of Kenai Little League who discussed some concerns and suggestions for repairs and enhancements to the field. Bannock requested council review the minutes of the meeting as the item will return at budget discussions. Bannock reported the Commission also discussed Cunningham Park. Bannock referred to a letter from Commissioner Hultberg requesting an exemption be made for him because he would be missing the Commission meetings in February, March and April due to an extended vacation. Williams suggested sending a letter thanking Hultberg for his services and suggest he reapply when an opening is available. Moore stated he was not in favor of doing that as other persons missing meetings were sent letters informing them of the attendance requirements, but were not removed from the commission. Williams noted, he had no problem allowing Hultberg to continue, but the code was clear. Bannock suggested taking Hultberg's letter under advisement and wait until he misses the three meetings. There were no objections. D-6. Planning & Zoning Commission -- Bannock reported the minutes of the January 13 meeting were included in the packet. He noted a landscape / review plan was reviewed and approved and the Commission found Lot 1-B, Block 2, Pavilion Subdivision No. 4 not needed for public purpose and recommended it be sold. D-7. Miscellaneous Commissions and Committees KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 14 D-7a. Beautification Committee-- Swarner reported the meeting minutes were included in the packet. She noted, the Committee heard a presentation from the Fire Department who plan to build a new flower bed. The Committee also picked out flowers to be used during the summer in the city beds. Swarner noted the application of Dorothy Jung for appointment to the Beautification Committee was included in the packet. She recommended the appointment. There were no objections from council. Swarner also requested council to remember the work of the Beautification Committee when they discussed changes to the Little League field during budget talks. D-7b. Historic District Board -- Moore reported a meeting was held on January 18 at which Mike Huhndorf was elected Chair and Dorothy Gray was elected Vice -Chair. Moore continued, the Board reviewed the annual survey and made no changes. They also adopted their goals and objectives. He added, the Committee also reviewed the walking tour information and talked about budgeting for this summer's printing costs. Also, the Committee will work with the Visitors Center on an Old Town Exhibit. D-7c. Kenai Visitors & Convention Bureau Board -- Bookey reported the Board would meet again on February 8. Williams reported a resolution will be brought forward for council consideration on February 3 regarding Kenai being the gateway city for the Lake Clark National Park. He noted, he had been working with the Visitors Center in preparing the resolution. D-7d. Alaska Municipal League Report -- No report. ITEM E: MINUTES E-1. Regular Meeting of January 6, 1999. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 15 MOTION: Councilwoman Swarner MOVED to pay the bills exceeding $2,500 and Councilman Moore SECONDED the motion. Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. H-2, Purchase Orders Exceeding $2,500 MOTION: Councilman Bannock MOVED for approval of the purchase orders exceeding $2,500 and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. Ross noted administration had included on the purchase order list an area to notify council of purchase order revisions. He noted, this area would be where purchase orders originally approved by council would be listed to show any additional costs to the purchase order (freight, etc.) Ross added, doing this would allow council to know any additional costs but would not require another purchase order to be processed and would not stop any work in progress. He noted, to be on the list, would mean the purchase order had originally been approved by council and the extra cost would be under $500. Council had no objections. H-3. Ordinance No. 1810-99 -- Finding That Certain City -Owned Land, Described as Lot 1-B, Block 2, Pavilion Subdivision, Is Not Required for a Public Purpose. Introduced by consent agenda. H-4. Approval -- Office Agreement Renewal/Approximately 1,147 Square Feet of Office Space Located on the First Floor of the Kenai City Hall Building, Lot 11, Block 1, Fidalgo Commercial Center Subdivision -- State of Alaska Department of Health and Social Services. MOTION: Councilwoman Swarner MOVED the City of Kenai enter into a new agreement for the period of February 1, 1999 through January 31, 2000 at the current rate. Councilman Bookey SECONDED the motion. VOTE: There were no objections. SO ORDERED. Williams questioned the progress of new center. Ross reported he received the authority from the FAA to purchase the property for the new health center from the Airport Land System and transfer the land to the Kenai Peninsula Borough for purposes of a health center. He added, he would not go forward with that process until approximately 30 days before the transfer is needed to keep drawing interest on KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 16 the money in the fund. Ross continued, the Borough and State are investigating making some technical re -appropriating of the funds to better manage and would go before the Legislature this session. He added, Mayor Navarre was comfortable with the language in the construction agreements. H-5. Approval -- Assignment of Lease/Lot 6-A, Block 1, Gusty Subdivision No. 4 From D. Roberts Enterprise Limited Partnership and Dan Roberts to Calvin and Nancy Gourley, d/b/a Groomingdales. Ross noted, administration was requesting council to approve both the Assignment of Lease and Security Assignment of lease by their motion. Williams asked if the consent to assignment for security purposes would take anything away from the city in regard to the change of ownership. Graves answered, no, the only security is the new owners' interest in the lease and it wouldn't affect the city's ownership. MOTION: Councilman Bannock MOVED for approval of the Assignment of Lease and Security Assignment of Lease for Lot 6-A, Block 1, Gusty Subdivision No. 4 From D. Roberts Enterprise Limited Partnership and Dan Roberts to Calvin and Nancy Gourley, d/b/a Groomingdales. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, H-6. Approval -- Special Use Permit/Automated Teller Machine at Kenai Municipal Airport Terminal -- Reean Pitts. Swarner asked if anyone else had shown interest in placing an ATM machine in the airport. Atha answered, a survey was taken a few years ago where all the financial institutions in the area were asked if they would be interested in placing one there. No one was interested. MOTION: Councilman Moore MOVED for approval of the Special Use Permit for the automated teller machine to Reean Pitts. Councilman Bannock SECONDED the motion. Ross stated the dates on the agreement included in the packet were draft dates for occupancy and term of the lease. These dates of the agreement will be modified based on the date of signature, approval date and preparation of the final document. Williams noted the lease would be a one-year lease instead of the normal five-year lease and asked what the city's economic interest would be. Atha answered, a percentage of the transaction fee would be received by the city, representing approximately a quarter a transaction for the city. He added, there was no way of knowing what the use of the machine will be. The one-year lease will be an advantage for both the city and Pitts as after a year, the amount of use, etc. can be reviewed to know if it is worthwhile having it placed at the airport. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999. Page 17 VOTE: There were objections. SO ORDERED. H-7. Discussion -- Future Economic Outlook Forum/Alaska Conference of Mayors. Williams reminded council they had placed funds in their budget to conduct a second economic forum. He noted, he would like to use the same criteria in putting the next forum together and wanted to be sure to invite the general public. Approximately 135 people were invited to the last forum which targeted large businesses. Williams added, this time he would like to invite representatives from the Office of Management 8v Budget to discuss the state budget and what its overall effect will have on local projects. A lengthy discussion followed in which council discussed how the smaller businesses might be targeted and helped. Ross noted, many of the comments coming back on the city's survey note the distress of small businesses in the community. He added, the last forum gave businesses an opportunity to relate to government what they felt were problems. Ross suggested, as part of the facilitation, the small businesses in the community be invited so they can discuss within themselves what their concerns and needs are and not be looking to government for the solutions. Also, the Chamber could be involved in discussing why they are not relevant to the small businesses in the community. Williams suggested planning of the forum get started and suggested a contractor be hired to start the process and suggested Colleen Ward be contacted. Also, that the Chamber, banks, and private sector help sponsor the forum, as well as applying to the Department of Commerce for another mini -grant. Williams asked Ross to pursue with the Chamber the gathering of funds with which to hold the forum. Swarner stated she would want to take proposals from others in the community who would be interested in conducting the forum. It was noted, without advertising for a request for proposals, there was no way to know who in the community may be interested in conducting the forum. Council discussed dates and decided on April 17 at the Senior Center. Freas was asked to check whether there were any other major events going on in the community on that day. ITEM I: I-1. Mayor ADMINISTRATION REPORTS a. Fire Truck Donation -- Williams referred to Information Item No. 2, a letter from the Chitina Volunteer Fire Department stating their interest in receiving the 1971 Seagraves Fire Truck. Williams noted, if he had been present at the December 3 meeting (when the resolution to donate the truck had come forward) , he would have spoken in opposition to advertising the unit to other fire departments in KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 18 the state. The truck, if donated to the ESI, would be used to train fire fighters for the city and other departments in the state. He added, the city has a partnership with ESI, who manages ARFF, of which the city needs to maintain a strong relationship. Williams suggested the council reconsider donating the truck to another department and administratively transfer the truck to ESI. Bookey stated he was not comfortable with donating the truck out of the area and thought a department on the Peninsula would be able to use it. He added, if the truck is to become part of the ESI program (instructional fire fighting because the truck will not be used in the ARFF training center), the truck should go to auction and let ESI purchase it. Bookey added, the city already set an agreement with ESI and it did not include a fire truck. Moore stated he voted for delaying the donation of the truck in order to advertise it to other departments in hopes that someone closer to Kenai would have a use for it. He added, he was not ready to send it to Chitina. Moore stated, he would like to wait through the 90 days for which it was tabled and if no local department can use it, the matter be discussed again at that point. Williams noted, the ARFF and structural and industrial training schools are a product of the city. The equipment being used has other departments' names on it. If this truck were used there, it would have the city's name on it. He added, there will be more equipment being inventoried there from the state fire training service. The potential of a warehouse being built there has been discussed by him and administration. The city may use some of that warehouse and he would like to build the warehouse large enough to contain all the equipment including the Seagraves. Williams added, the Seagraves should not be sent to a junior or volunteer fire department because it is not in good enough shape to be dependable for general service. Using it for training is a perfect situation. Bannock stated, after learning more about the relationship between ARFF and ESI, he did not see the truck as being given to ESI. He sees it as an administrative transfer to the assets of the whole facility of which the city already owns and ESI manages and fire fighters use. He suggested it could be a debatable point that transferring it to ESI was the best use for the truck, however he thought the truck would be taken out of daily service and giving it a home where it can still be used in the city for the city and the benefit of others. Swarner stated she agreed with Moore that council should wait through the 90-day period as she had hoped the truck would go to a Peninsula community. If there is no community on the Peninsula who wants the truck, then revisit the matter. Bannock asked the difference between donating it to a Peninsula town or Chitina. Swarner answered, it's closer to home. Williams noted, he believed a report of the condition of the truck would show the truck is in poor condition. Bookey stated, if the truck is unsafe, he wanted to get rid of it. He added, he believed the truck has some problems with the brake air system which is a small problem. Bookey continued, council replaced the truck when it was KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 19 a first -responding unit and used daily. It was then obsolete for the city, but has a major impact for the rural area of the Peninsula. He added, he looked at the truck. Ross explained, those departments stating an interest are being referred to the city shop. He added, the problems with the truck include the brakes, the transfer lock system (it cannot be replaced and therefore could not be used for an off -road vehicle), the radiator will need to be replaced and the transmission is not reliable. Ross continued, administration does not want to administratively transfer the truck to anyone because it doesn't want the city to be responsible for the truck, the liability of the truck or the maintenance of the truck, which is why the city replaced it. The proposal before council was not to administratively transfer it, but to donate it to the Fire Chiefs' Association. He added, if council waits the 90 days or not, administration does not want the City of Kenai to have title to the truck when it transfers because they don't want the responsibility of repairing it. Williams stated he understood administration's concerns and added, he wouldn't want the truck transferred to an unwitting fire department in the state if it would inherit major mechanical problems. He added, he had heard it would cost upwards of $15,000 to correct the problems it has. Bookey stated, that was even more reason to take it out of the system and allow ESI to buy it if they want it. Williams suggested waiting the 90 days and discuss it again at the first March meeting. b. Information Item No. 3 -- Williams referred to Information Item No. 3, the summary of 1998 building permit activity. He noted, it was interesting to see that residential garages, additions and remodels amounted to nearly the same building valuation as the entire commercial new construction within the city. He added, that says the citizens of the city are pleased enough with the community and have enough faith in it that they built 45 new homes and remodeled 33 garages in comparison to 18 commercial buildings. C. Historic District Board Information -- Williams noted, there is a lot of emphasis being put on the new millennium for the preservation of the historic areas of communities and creation of new educational opportunities and infrastructure. Also, a lot of emphasis is being placed on working with Native American communities within communities. Williams continued, he believed Congress will make available funding to communities to implement those items. William reminded council of the breakfast meeting scheduled for Monday, January 25 with the area Native groups at which time they will discuss some of these ideas and how they will affect the city. Also, Williams added, council should be thinking of what can be done to enhance the historic district (lighting, etc.) I-2. City Manager a. Cunningham Park Project -- Ross noted, some funds are being held that the Cunningham heirs requested be dedicated to something in the park. He added, administration intended to incorporate those funds into the park development but the items purchased with the funds may not be itemized unless council wants a KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 20 specific item purchased. Ross added, at the end of the project, administration will notify the heirs for what their funds were used. He continued, unless council directs otherwise, he intended to use the funds in this manner. Delora Garcia -- Garcia explained, at this time the fence is not on the property line and is real close to the gravel pad. She noted, Mrs. Cunningham wanted the park for the people and children on Beaver Loop. Garcia suggested inserting a gate in the existing fence and fence in the area and place playground equipment there for residents and visitors. She noted, placing playground equipment within the fenced area would be safe and away from the parking area. Williams suggested administration investigate the possibility of implementing Garcia's suggestion. Chris Garcia-- Strongly suggested playground equipment be put back in the park. He added, he agreed with council comments that the boat launch should not be enlarged, as it will create a maintenance problem, traffic problem, and in general a headache for the city. Garcia added, he had some concerns in regard to how the wheelchair access will be possible because the tide will tear it out in the winter. He noted, he was in favor of doing something for the access, but was not sure how it could be accomplished unless the grating is removed every year. He suggested, the design be given thought for winter wear and tear. Williams suggested administration discuss the concerns with the engineer and discuss the matter again at the next council meeting. I-3. Attorney -- No report. I-4. City Clerk -- Freas referred to a letter from Peninsula Winter Games which was added to the agenda at the beginning of the meeting. She explained, the letter requested the $300 council had budgeted as a donation to the Games and an additional $200. The $500 would then be used to sponsor a child with physical mobility problems to ride with a musher at the ceremonial start of the Tzstumena 200 dog race. MOTION: Councilman Bannock MOVED for the additional $200 and total of $500 be donated to the Peninsula Winter Games. Councilman Moore SECONDED the motion. Bannock stated he had attended the ceremonial start before and enjoyed seeing the children participate last year. He supported the donation whole-heartedly. Moore noted he has been involved with the Games board and their goal is to provide as many activities as they can for children on the Peninsula for free. He added, he supported the donation as well. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 21 VOTE: There were no objections. SO ORDERED. I-5. Finance Director -- Semmens reported the first automated payment of the water/ sewer payment plan began and there were approximately 100 people participating. I-6. Public Works -- No report. I-7. Airport Manager -- No report. ITEM J: DISCUSSION J-1. Citizens -- None. J-2, Council Bookey -- No report. Swarner -- Requested something be done about the heating system for the council chambers. Swarner also referred to a letter council received from Mrs. Brown who had concerns about the snowplowing, i.e. some streets better plowed than others and one side of the street is better plowed than the other. Swarner asked if the plants had been sent to the Peninsula legislators. Freas answered no, but that she just received the room assignments for the legislators and would have the plants sent. Moore -- Stated he was alarmed at the number of businesses that were delinquent with taxes and noted they were all for liquor license renewals. He asked how many other businesses in the city were delinquent (other than liquor licenses) . Graves answered he wouldn't know because the Borough collects the taxes. The city only gets information in regard to liquor license renewals, transfers, lease renewals, etc. Graves noted, he gets involved with payment plans if the entity leases city property or liquor licenses. Bannock -- Referred to the building permit activity summary and noted there was information at the bottom regarding sales tax collected on permit fees. He asked if every dollar collected by the city is subject to sales taxation. Semmens answered, he was not aware of anything that would be exempted. It was noted, income to the city is taxed. i Williams -- Reminded council of the Employee Appreciation Dinner scheduled for January 23, 1999; the breakfast meeting on Monday, January 25; and the special council meetings scheduled for January 26 and 28. KENAI CITY COUNCIL MEETING MINUTES January 20, 1999 Page 22 EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10:10 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk AT CJ44 Zv COUNCIL CLERK