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HomeMy WebLinkAbout1999-02-03 Council MinutesAGENDA KENAI CITY COUNCIL -REGULAR MEETING FEBRUARY 3, 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) ITEM C: PUBLIC HEARINGS 1. 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. 2. Resolution No. 99-5 -- Transferring $35,822.15 to the '98 Water System Improvement Capital Project Fund. 3. Resolution No. 99-6 -- Awarding a Professional Services Contract for Engineering Design and Inspection on the Project Entitled Crow Court Street Improvements to Wm. J. Nelson & Associates for the Not -To - Exceed Amount of $7,900. 4. Resolution No. 99-7 -- Requesting Safe Communities Funding From the Department of Community and Regional Affairs. 5. Resolution No. 99-8 -- Supporting the Establishment of Public Access to State Lands on the West Side of Cook Inlet. -1- - � 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. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors & Convention Bureau Board d. Alaska Municipal League Report 1. *Regular Meeting of January 20, 1999. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS � 1. Discussion -- Appointment of Council Member. 2. Discussion -- Multi -Use Facility Update (Peter Klauder) ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1811-99 -- Deleting the Age Requirement in KMC 23.40.095 for Eligibility for the Supplemental Retirement Program. 4. Discussion -- Council Liaison Assignments (Boards, Commissions and Committees) 5. Discussion -- Airport Terminal Restaurant/Draft Request for Proposals. 6. Discussion -- Sewer Treatment Plan Expansion/Parking Area. -2- -� ITEM I• 1. 2. 3. 4. 5. 6. 7. ITEM J! 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- AGENDA KENAI CITY COUNCIL REGULAR MEETING FEBRUARY 3, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /www.cl.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2, ROLL CALL Roll was taken by the City Clerk. Present were: Moore, Measles, Bannock, Williams, Bookey and Swarner. ) A-3. AGENDA APPROVAL Mayor Williams stated he had no changes to the agenda. MOTION: Councilwoman Swarner MOVED for approval of the agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED, A-4, CONSENT AGENDA Mayor Williams reported he had no changes to the consent agenda. MOTION: Councilman Bannock MOVED for approval of the consent agenda as presented and Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. } ITEM C: PUBLIC HEARINGS 1 KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 2 C-1. 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. MOTION: Councilman Measles MOVED for adoption of Ordinance No. 1810-99 and Councilman Bookey SECONDED the motion. There were no public comments. Mayor Williams explained the property was on Mackey Lake Road and was property the city received through a foreclosure. There had been an offer to purchase the property. VOTE: Moore: Yes Measles: Yes Bannock: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-2. Resolution No. 99-5 -- Transferring $35,822.15 to the '98 Water System Improvement Capital Project Fund. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-5 and Councilman Measles SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-3, Resolution No. 99-6 -- Awarding a Professional Services Contract for Engineering Design and Inspection on the Project Entitled Crow Court Street Improvements to Wm. J. Nelson & Associates for the Not -To - Exceed Amount of $7,900. MOTION: Councilman Bookey MOVED for approval of Resolution No. 99-6 and councilman Measles SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 � PAGE 3 VOTE: There were no objections. SO ORDERED. C-4., Resolution No. 99-7 -- Requesting Safe Communities Funding From the Department of Community and Regional Affairs. MOTION: Councilman Measles MOVED for adoption of Resolution No. 99-7 and requested UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-5., Resolution No. 99-8 -- Supporting the Establishment of Public Access to State Lands on the West Side of Cook Inlet. MOTION: Councilman Measles MOVED for adoption of Resolution No. 99-8 and Councilman Bookey SECONDED the motion. Mayor Williams requested to pass the gavel to Vice Mayor Measles in order to speak to the resolution. John Williams -- Williams referred to the resolution included in the packet and noted, a similar resolution had been circulated throughout the community and state. The resolution was brought about by a major study paid for by the Kenai Peninsula Borough titled, West Side Recreational Use Development Project which has been reviewed by the Department of Natural Resources. Williams continued, the Borough has requested transfer of a large parcel of land above the Forelands, known as the Kustatan Ridge from the State to the Borough. The area is renowned for its extreme beauty, wildlife, habitat, etc., however access is a problem. He noted, there are some pioneer and oil company roads and several airfields. Those people who have been developing the resolution believe it is the time to open that area up because it will begin to position the City of Kenai as the gateway city to the Kustatan and the Lake Clark National Park. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 4 Williams added, because of the state's desire to encourage tourism, this would be an excellent step to take. However, no government agency has brought forward a resolution in support of the effort. Williams noted, resolutions in support would aid in setting in motion a plan by which to assist the Borough, the city and state in recognizing there are many who would like to see this area open up. Williams referred to background information attached to the resolution which noted support from various groups, individuals and organizations in the area. Williams pointed out the Forelands area, noting the areas owned by the Salamatof Native Association, the State of Alaska, Bureau of Indian Affairs, and privately -owned property. He noted the Salamatof land had an existing airport on their property. He pointed out existing roads and noted the Kustatan Ridge was approximately two miles wide and 8-10 miles long. Williams noted the proposal in requesting the State to open the property up and funding it was to develop a port facility, pave the existing airport on Salamatof property, tie the airport to the existing road system, and then open the road system to the center of Kustatan Ridge which would allow the Borough to subdivide the properties and sell them as high -value retreats, lodges and home sites. Williams reported, a value of $3 million had been placed on the project as a start. Williams reported, a similar resolution would be considered by the KVCC Board of Directors at their next meeting and the Economic Development District at an upcoming meeting. Moore asked what would happen with existing or potential oil and gas leases. Williams answered, with the State owning all of the Kustatan Ridge and wildlife habitats, it would be hard to get any leases in that area. He added, any existing leases would flow with the transfer of the land except for the royalties that would stay with the state. Williams noted, the State wants to see access available and in helping to broker a deal between the Salamatof Native Association and the State, access must always exist. The gavel was passed back to Mayor Williams. Tom Wilkinson -- P.O. Box 2598, Soldotna. Wilkinson stated he felt the plan was a very good concept. He noted, this property was only 14 miles from Kenai, it has eleven major rivers where all types of salmon can be enjoyed, and concentration of bears is higher than anywhere else in the world. He added, the primary goal of Fish 8v Game is to increase high -quality recreational areas. Wilkinson discussed the need for deep -water access, noting the extent of the mud flats, etc. He noted, the area offers a great opportunity for economic development. A KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 5 visit to this area is much like the Denali experience. Wilkinson added, most of the property is state lands. Providing access through the area would make the value of the Kustatan Ridge. He noted, with access to the area, the acreage would be valued to from $5,000 to $8,000/acre. Wilkinson stated he supported the effort and knew of several people wanting to start businesses in the area (guides, rental cabins, etc.) . He noted, if dredged a small amount, the dock would only have to be 50 feet even at low tide. Also, it would be a 40 minute boat trip to the area from Kenai. Tom Kruger -- P.O. Box 398, Soldotna. Reported he started a hovercraft business in that area. He noted, the potential is fantastic for the area with hunting, fishing, site - seeing, etc. He added, the area is very unique and the potential to bring money into the Borough is great. Tess Whelan -- Executive Director, Economic Development District. Whelan noted there is a great deal of interest from the private sector to develop the land. However, without a public dock, access would be a serious problem. In order to keep the area from being acquired by private developers, the public needs to be aware of the potential. Whelan urged council's support of the resolution. Fred Braun -- P.O. Box 7148, Nikiski. Braun stated, during the years he has lived in the area, he has hunted in the area and has gone site -seeing. He noted, the area is one of the most beautiful sites as it sits at the base of Mt. Redoubt. He noted, with the downfall of the oil industry, fishing and logging, tourism needs to be promoted. Williams stated he expected a tremendous amount of tourism through the development of this area. He added, he didn't want this project to take years to develop. With public hearings and pressure from local government bodies to the state administration, this project could be brought to fruition in a timely manner. Bannock asked who would be receiving copies of the resolution. Kathy Tarr, Executive Director of the KVCC reported the resolution would be forwarded to the areas' leeislators and then to other state agencies- as well a s th P Rnrn» orb VOTE: Councilman Measles requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- Councilwoman Swarner reported the Council on Aging was scheduled to meet on February 4 at 10:00 a.m. at the Senior Center. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 6 D-2. Airport Commission -- Councilman Measles reported the Airport Commission was scheduled to meet on February 11 at 7:00 p.m. in the council chambers. He noted he would be out of town and unable to attend the meeting. Measles requested another council member attend the meeting in his absence. D-3. Harbor Commission -- Councilman Bookey reported the Harbor Commission was scheduled to meet on Monday, February 8 at 7:00 p.m. in the council chambers. D-4. Library Commission -- Councilman Moore reported he attended the Library Commission's meeting of February 2 at which Bob Peters and Lorene Forbes were reelected as Chair and Vice Chair of the Commission. Also, Librarian DeForest reported the new hire of Eva Jankowska to take her place. City Manager Ross noted, the hire had not come before council because they were still negotiating salary and relocating program. He added, he expected the information to come to council at their next meeting. Moore reminded council of the 50th birthday celebration for the library scheduled for March 7. Also, the Writers' Night would be held at the KVCC on March 4. Moore also reported the Commission reviewed its goals and objectives and was in the process of updating them. The new list will be forwarded to council for their review. D-5. Parks & Recreation Commission -- Councilman Bannock reported the Commission was scheduled to meet on February 5 at 7:00 p.m. in the council chambers. He noted, he would be out of town and Councilman Moore agreed to attend the meeting in his place. D-6. Planning & Zoning Commission -- Councilman Bannock reported the Commission met on January 27 and the minutes of the meeting were included in the packet. Bannock reviewed the actions taken by the Commission which included the approval of a conditional use permit for the Challenger and Multi -Purpose Facility. Bannock also reported: a. A landscape site plan had been approved for a print shop and automobile restoration center; b. A right-of-way and easement in Shaginoff Subdivision had been brought forward. The Commission separated the items. The right-of-way was approved and the easement failed. The Commission felt the ten foot walkway easement should be extended to the Spur Highway. C. The Commission discussed setbacks and gravel pits with the City Manager. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 7 Bannock noted, though he was not the official liaison to the Commission, he had been attending the meetings since the departure of Councilman Smalley. He reported he would not be in town to attend the next Commission meeting and requested another council member attend for him. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the Committee would meet again on Tuesday, February 9, 1999 at 5:30 p.m. in the council chambers. D-7b. Historic District Board -- Moore reported the minutes of the Board's last meeting were included in the packet. The next meeting was scheduled for March 15. D-7c. Kenai Visitors & Convention Bureau Board -- Bookey reported the next meeting was scheduled for February 8 at 5:30 p.m. at the KVCC. D-7d, Alaska Municipal League Report -- Mayor Williams reported he would attend an Alaska Conference of Mayors meeting the week of February 8 in Juneau. He noted, the meeting was requested by the Governor in order to familiarize the mayors and other AML Legislative Committee members with the state's budget concerns. BREAK TAKEN: 7:53 P.M. BACK TO ORDER: 8:06 P.M. ITEM E: MINUTES E-1. Regular Meeting of January 20, 1999. Approved with consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1. Discussion -- Appointment of Council Member. Williams explained the council had given a great deal of thought to how they could fairly select a candidate for appointment to council. He noted, council had been reluctant to go into an executive session and state law forbids executive sessions of a nature that would not be democratic in its process and agreeable by all involved. Williams clarified, in order to go into an executive session, each candidate would KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 l PAGE 8 have to give their permission to enter into an executive session with a clear understanding that only characterizations of the candidate and not personalities would be discussed. Williams explained earlier in the day he, with the City Attorney and City Clerk devised a plan for making a selection. He requested council, after hearing the election plan to offer a motion of approval if the process was found to be acceptable. Williams added, criteria requirements for the process were: A public meeting, a public vote be taken, and all elements of the public vote would clearly be understood and viewed by the general public. Williams explained, each council member would place their name in the space provided on every ballot voted and the ballots would then become a public record and available to the public. Each council member would then rank the candidates by applying six points to their highest choice, five to their second choice, etc. He added, every council member was required to vote for each candidate, not leaving any out and everyone had to vote. Concerns for a tie was unlikely. Williams continued, the two candidates with the highest points would then proceed to Round Two when each council member would then vote for one of the two candidates with the highest points from Round One. He noted, the vote would be a written "yes" beside the candidate's name. MOTION: Councilman Measles MOVED to approve the method outlined by the Mayor for the replacement of the city council seat tonight and Councilman Bookey SECONDED the motion. Bookey asked how were the names chosen for placement on the ballot. Williams answered, there had been some concern and the Clerk (also Director of Elections for the City) and the Deputy Clerk drew the names from a hat, randomly. There were no comments from the public. VOTE ON THE MOTION: Moore: Yes Measles: Yes Bannock: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. The votes were tallied by Clerk Freas and Finance Director Semmens. The findings were: KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 l PAGE 9 Brown: 7 votes Castimore: 15 votes Eldridge: 29 votes Donahue: 28 votes Frazer: 28 votes Schrag: 19 votes Freas noted the standing after the first vote was: Eldridge (first), Donahue and Frazer (tied at second), Schrag (third), Castimore (fourth), and Brown (fifth). Williams noted, council needed four votes to have a clear-cut decision. Leaving three names on the ballot may cause a problem in getting the four votes. Williams suggested either a 3-2-1 vote (highest rank, second, and third) could be taken, or have a "yes" vote. Measles stated, with a 3-2-1 vote, council would still have to do a "yes" vote on the last two, making three rounds of voting either way. Another ballot was distributed to council. They were directed to only rank Eldridge, Donahue and Frazer. The findings of the second vote were: Eldridge: 13 votes Donahue: 10 votes Frazer: 13 votes A third vote was taken with Eldridge and Frazer as the candidates. Council was directed to write "yes" beside one of the candidates on their ballots. The final vote was as follows: Frazer: 4 yes votes Eldridge: two yes votes Williams noted William Frazer was elected to the position. He congratulated all the candidates and thanked them for taking part in the process. He noted Frazer would be sworn in at the February 17, 1999 council meeting. Swarner thanked all the candidates for taking part in the process, answering questions, and taking the time. She added, she appreciated their attending the meetings and was glad they participated. Measles thanked all the candidates for showing an interest. He added, making this selection was one of the toughest decisions council had had to make in a long time. He encouraged all those participating to take out a petition for the October election. Measles added, there were periodically positions on boards, commissions and committees and urged them to get involved and volunteer. It was noted there was one position available on the Planning & Zoning Commission and the remaining candidates were urged to state their interest. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 10 G-2. Discussion -- Multi -Use Facility Update (Peter Klauder) Ross reported Mr. Klauder gave a very good presentation to the Rotary Club. He added, there were several issues brought up at the meeting and he and Klauder had discussed them later. Ross added, Klauder would be representing a Phase Two concept to show what the building can become as there had been some concern stated that "from a shell, where do you go." He added, this design had received limited review as to how space would be utilized, potential uses, etc. Additionally, it is not known for sure this would be what would be planned for the future or when it would occur. Ross noted, there was nothing included in Klauder's contract to cost out what a Phase Two would be. Ross continued, another item discussed at Rotary was operations. He noted, it was not anticipated additional city employees would be needed to maintain the project. The user groups, in their presentation to council a year ago, gave suggestions for alternatives through revenues generated. After the project is underway, the user groups would be meeting with administration to investigate those alternatives further. Klauder distributed copies of the site plan, floor plan, cost estimate, etc. to council and put up larger drawings for the audience to view. Klauder noted, the reason why they did a Master Plan was that it is imperative in such a large building as this, that a fair amount of thought go into what the building could become. He added, there are certain functions and uses that if they are not accommodated in a phased project, won't be able to be done later. As an example, Klauder noted they were proposing an elevated running track. If the loads were not included into the metal framework of the building in the first phase, they could not be easily added later. Additionally, room for mechanical equipment, clearances, exiting, code issues, etc. need to be thought out in advance and then do Phase I. Klauder noted, with the Multi -Use Facility, Challenger and high school, the area would be developed more like a college campus design. In keeping with that idea, they tried to develop a campus theme and in landscaping, site improvements, etc. they tried to complement the existing high school facility. They also were trying to find ways of keeping the overburden to be removed from the site to be incorporated into landscaping schemes. Additionally, Klauder explained, the School District was being very helpful in sharing parking with both facilities in order that not as large a parking lot would need to be developed. Klauder explained, the Phase I building was essentially athree-sided metal shell covering an ice hockey rink. The Phase II concept wraps around the shell and will give it a new look and caliber. He added, the upper level would include a running track and the lower level a walking track. The back two corners of the Phase I building had been designed as rock -climbing areas (to be added sometime after the initial Phase I). KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 '> PAGE 11 Klauder noted, Master Plan also included a number of locker rooms and in designing that, the size of the water lines, plumbing, etc. would be sized to accept those plumbing requirements and future sprinkler system. He added, the upper level would also house exercise equipment, changing rooms, running track/viewing balcony, multi -purpose room, as well as the necessary utility rooms. He noted the multi -purpose room could double as a sleep -over room for hockey teams. Klauder referred to the Phase I portion of the plans and noted it included a cost estimate for Phase I only. He noted the plan left an area north of the building for future expansion. Site utilities (water/sewer) come onto the site from Rogers Road. Due to lire lane requirements, this utility corridor will also be accessed as a fire lane. He added, this fire lane was not included in the cost estimate. The work to turn the area into a fire lane would add $26,000 for both the north and south fire lanes. In reviewing the floor plan, Klauder explained Phase I is an open-air building and unheated. There is no elevated track in this phase, although the structure will be built to support it. He noted, there is no refrigeration or paved floor in the design as it is a bare -bones concept. The initial budget he was given was $600,000 and he noted, the Phase I portion of the building would cost $1.2 million. He noted, the design is constantly changing due to cost adjustments, etc. There had been two additive alternates included, however the landscaping was being reconsidered. Because a room for a Zamboni has to be heated and have hot water accessible (water drain, hot water heater, etc. which is estimated at approximately $73,000). In removing the two additive alternates, the cost is at approximately $ 1 million. He noted, he was not aware of any place the design could be cut down any more and suggested additional funding would be needed to go forward with the project. Klauder continued, discussing the site elevations, landscape berms, proposed climbing areas, etc. Ross asked Klauder, by the phase described, what would be lost from Phase I as far as cost. Klauder answered, he wasn't aware of anything that would have to be removed in order to go from Phase I on to Phase II. Klauder noted, when first putting together the budget analysis, he included a contingency of 15%. Since then he met with the Fire Marshall and he required service drives be added which added $26,000 which was not in his budget. He added, the building contingency may be a little high. Ross asked La Shot if, when putting out the bid for site work for both the ice facility and Challenger building, could it be put out as a separate bid from the buildings. La Shot answered, they had discussed this at length and felt it would be the cleanest and best way to go in doing the site work bid first. He added, the shared cost mostly come from the site work. In order to control those costs, he added, they felt it would be best to go out with a separate contract, split the cost at a decided ratio based on KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 12 quantities and then carry forward with the buildings. He noted, they felt there was time this summer to do it that way if an August 1 completion date on the site work was required. Soon after that, go to bid for the building contracts which would give the contractors one to two months to order materials for the buildings and be able to begin the buildings August 1. La Shot added, separating the site work bid would be a nice package for local earthwork contractors and get away from a general contractor mark up. Moore noted, one of the reasons his company was chosen to do the design was due to the cost savings that could be involved with doing the Challenger and ice rink projects together. He asked, in his estimate, what would those cost savings be because Challenger is on the same site. Klauder noted: a. There would be one access for both buildings (both projects would pay for widening of the road); b. With both buildings the parking lots could be downsized because of the shared area and being adjacent to the high school, the paving costs will be reduced; C. Site utilities (water/sewer) may be split 50 / 50 depending on the quantities; d. Excavation, i.e. back fill for the parking lot, clearing on the site, entry points, etc. If a single -site contract can be developed, the mark-up and bonding associated with a general contractor can be eliminated and the site work bids should come down because the excavation contractors will like to work direct; e. They are proposing to bid the Challenger and ice facility as linked but separate bids which will enable the Challenger to act independently if they want. However, they will also request the contractor bid it as a lump sum amount as well. This will simplify the process and hopefully the unit costs would then decrease. Moore asked if the Challenger would only be sharing the cost of the sewer/water main line. Klauder indicated at this time they were wanting to split the cost. Also, the Challenger is now including a sprinkler system to their design and they are in the process of deciding what portion of the water Challenger will pay. Klauder noted, the cost estimate is evolving and has been more complicated due to the relationship of the two buildings and the phasing of the buildings. Swarner stated she was glad to see the tree buffer as she has had comments from citizens who want a tree buffer to remain. She asked why the fire access lane was needed off of Rogers Road instead of using the access road. Klauder answered, the fire code requires access from all around the back of the building, so there has to be a way to allow a fire truck to get behind the building. He added, that land will require being cleared for the utility lines, it will meet the fire code, is the least disruptive on the residential neighborhoods, and least expensive way to provide the KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 l PAGE 13 necessary access. Swarner questioned costs for asphalt paving and Klauder noted, it was to patch Rogers Road where a cut will need to be made to place the utilities. Swarner stated she was concerned the cost of the building was above the amount given to Klauder as a budget figure. Measles asked if the ice facility is required to have a sprinkler system. Klauder answered, only for Phase 2. He explained, the Phase I design was just below the square footage requiring a water sprinkler. Ross explained the $600,000 amount had been proposed by the user group. It was anticipated $650,000 to $680,000 would be raised on the sale of the lands. The numbers not given to Klauder, but council had seen, were between $800,000 and $900,000. He added, he believed council had discussed the possibility of having to add an amount to the money raised from the land sale. Ross noted, the cost exceeding $ 1 million was a surprise, but with removing additive alternates and possible lowering of the contingency, costs will decrease. Ross stated he was confused with the idea of bidding the buildings as a lump sum. La Shot explained, the details would have to be worked out, however they would like to bid the buildings so that each party could select their own contractor. He noted, the city is somewhat tied to the low bid and Challenger may have a different way to do it. However, they would like to link the buildings, but have a figure in case one contractor gets both jobs, a savings could be shown. La Shot added, deductive alternates could be worked in so there would be a bottom -line figure. Ross asked if it would be an option for either party and the council would have the option of making their decision on their own bid. La Shot answered, yes and if the site work is completed first, there would be a clearer picture of the costs. If the site work is done and for some reason neither party funds their buildings, he didn't think anything would be lost later. Williams stated he liked the idea of joint -venturing the site work, regardless of the outcome of the decision to build either buildings. He noted the Challenger had put off their proposed completion date to April based on the concern for construction and costs. He added, the shared site work would be an excellent way to begin the project. Williams continued, whether to bid the buildings together, etc., could be worked out based on the negotiations between the city and Challenger. He added, he believed there would be a great deal of savings in doing it that way. However, there was still concern for both sides of funding both projects. Williams stated the $1,278,000 was way beyond the anticipated costs. Council and administration would have to determine where to find the additional funds. He added, he spoke with administration and Klauder about a wrap -around figure to build all the building. Williams added, he was hesitant to start a building that would only be half there. He would like to see the whole building completed, however that 1 cost could be approximately $2.5 to $3 million. In order to do that would re uire q KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 14 borrowing money, a vote of the people, and an increase in the mill rate. Williams stated, he would like to move ahead with the finalization of the costs and be prepared in the spring to break ground and do the clearing. But, until he sees better cost breakouts, he would be reluctant to say go ahead. In regard to the whole building, Williams stated he would like to see the plans developed over the years and administration develop a plan for what the cost of bonding would be and the mill rate to fully cover the cost of bonding the building itself. He added, he would like the receipts from rental of the building to cover the operation of the entire facility, but the debt service be paid by a bond issue. Williams noted, there were extremely low interest rates and it could be possible to bond the project. However, he did not believe it was in the best interest of the city to present to the citizens, user groups, etc. as a show -place piece, a half -finished building. Bookey stated, council had acknowledged to the user groups the council would do the best it could to get them a facility and they asked for a bare -bones facility. He added, due to the economic position of the entire state, he didn't think a bond issue would pass for this facility. Bookey added, he would like to press ahead as planned. He noted, he didn't look at the building as half a building, but one built the way the citizenry wanted it. Additionally, he stated, he believed if a bond issue was proposed, the project would die and did not think that would be fair to the people. Moore stated he agreed with Bookey. He added, he believed the original designed building would say, "here I am, finish me." Then, perhaps the citizens and users would want to finish the building. Ross recommended to proceed with the recommendation of putting the site work out as one package for both facilities at the same time. He added, he believed there would be significant cost savings over trying to do the sites individually. Doing the site work bid separate from the building bid would also give an opportunity for local contractors and reduce the costs. MOTION: Councilman Measles MOVED for administration to proceed (as recommended by administration) and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 1 PAGE 15 MOTION: Councilman Bookey MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED for approval of the purchase orders exceeding $2,500 and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. H-3, Ordinance No. 1811-99 -- Deleting the Age Requirement in KMC 23.40.095 for Eligibility for the Supplemental Retirement Program. Approved by consent agenda. H-4. Discussion -- Council Liaison Assignments (Boards, Commissions and Committees) Swarner stated she believed in order for council members to learn more about the business of the commissions, committees and boards, the liaison positions should be randomly drawn. Bookey disagreed as some of the commissions take more time than others. After a brief discussion, the following assignments were made: Planning & Zoning Commission -- Councilman Bannock Harbor Commission -- Councilman Bookey KVCC Board of Directors -- Councilman Bookey Library Commission -- Councilman Moore Historic District Board -- Councilman Moore Airport Commission -- Councilman Measles (Frazer as alternate) Beautification Committee -- Councilwoman Swarner Council on Aging -- Councilwoman Swarner Parks & Recreation Commission -- Councilman Frazer Kenai River Special Management Advisory Board -- City Manager Ross Alaska Municipal League -- Mayor Williams Economic Development District -- Mayor Williams Challenger Board -- Mayor Williams/ Councilman Bannock (Frazer was assigned as Bannock's alternate to the Board.) Councilman Moore explained the Kenai River Special Management Advisory Board (KRSMA) discusses mostly boat wakes, land use plans, etc. and avoids political issues of the River. He suggested the representative attend only when there is an KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 16 issue that directly affects the city and the River. Ross offered to be the city's representative to KRSMA as he believed it important to protect the interests of the city. Williams suggested consideration of hiring a person as a City Planner who would then be able to attend meetings of the Challenger Board, KRSMA, Hospital Board, etc. Swarner suggested the job responsibilities could also include human resources, assistant city manager as well as the planner. Frazer offered his assistance as alternate to any of the commissions, etc. as needed. He noted, he intended to visit the various meetings in order to better acquaint himself with them. H-5. Discussion -- Airport Terminal Restaurant/Draft Request for Proposals. Ross explained, the draft request for proposals (RFP) included in the packet was the same as was used the last time. He noted, from time to time council made suggestions as to what they felt the RFP should include (hours of operation, etc.). He requested council give some parameters to what should be included in the RFP. Bookey asked if there had been any comments of interest in the restaurant. Airport Manager Atha reported he spoke with the present lessee. The lessee reported he had been contacted by a person who was interested in assuming the lease. Atha added, he understood details could be worked out in the next few days. Bookey stated, until a determination was made in regard to the possible assumption of the lease, the RFP would have to wait. Ross explained, there was no way of knowing how long the negotiations between the lessee and interested party would go on. The. restaurant would be closed until there was an agreement for assumption of the lease or the RFP is advertised. He requested council give some suggestions for what they wanted in the RFP in order to be ready to advertise. Swarner suggested hours of operation be included in the RFP. Attorney Graves explained, the last time the RFP was developed, council dropped the hours of operation from the document because there was no way the city could hold the lessee to the hours. Bookey suggested the matter be placed on hold until the next meeting and bring it back if no agreement for the lease assumption is worked out. Measles noted, if the lease is paid through March and an assumption was being negotiated, the council couldn't do anything anyway. Ross noted there were two issues: At their last meeting, council stated they wanted to proceed and without council's direction during this meeting, it would delay the matter a month and then the matter wouldn't be able to go before the Airport Commission until March. Measles suggested the matter go to the Commission first. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 17 Ross explained, he was hoping council could give suggestions of parameters for the restaurant lease and those ideas could then be taken to the Commission for review. Ross noted, in the past, council had stated they wanted hours of operation addressed and if the restaurant should be in its current space. Bannock recommended the matter be forwarded to the Airport Commission for their review and by that time a lease assumption might be negotiated. Bannock added, if the Commission reviews it, it could then be returned to council in March. Council agreed to send the draft RFP to the Airport Commission for their next meeting for review and comments. H-6. Discussion -- Sewer Treatment Plan Expansion/Parking Area. Ross explained, this project had been discussed and determined to be needed several years ago prior to any discussions with EVOS for grant funding (in regard to the dip net fishery concerns) . Ross added, there would be no funding from EVOS. The city had permits for the project, however those permits were due to expire in November. New permits would be hard to acquire. Ross noted, the project was expected to cost $150,000 which could be divided between the General and Water/ Sewer Funds as future expansion of the Sewer Treatment Plant would require fill work to be done anyway. Ross added, if council decides to go forward with the project, he would have Public Works Manager Kornelis and Parks & Recreation Director Frates discuss with him the possibility and mechanics of charging a parking fee during dip net fishery season. He noted, a parking charge would be a means of recovering the interest the city would be loosing on the investment on the funds with which to do the work. Williams suggested administration consider creative financing and factor in the percentage of the flow into the sewer Treatment Plant from Airport Fund -owned city buildings in order to charge some of the cost of a future expansion of the STP to the Airport Fund. Measles noted, that could be considered for every city building which would then affect the General Fund. Ross stated, administration believed the cost of the project would break out very closely at a 50% split. He noted, the only reason to expand the parking area is to accommodate the dip net fishery. Consensus of council was to move ahead with the plan to develop additional parking space this spring and a plan be brought back to them. It was noted, the design, etc. would go to bid. Moore asked if there was any possibility of tying the excavation costs in with the multi -use facility site work. Answer was no. Bookey asked if bore tests would be taken of the site. Kornelis stated no borings had been taken, however they had taken into consideration the excavation in the area close to the STP. They plan to use filter fabric in developing the parking lot. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 18 ITEM I: ADMINISTRATION REPORTS I-10 Mayor -- a. Planning & Zoning Commission Opening-- Williams requested the other council candidates be contacted as to whether they would be interested in being appointed to the Planning & Zoning Commission. b. Northern Edge 99 -- William noted he had been invited to attend Northern Edge 99, a joint field training exercise to be held in Seward on March 8. He added, he would be out of town during this training and invited council to attend. C. Sears Roebuck -- Williams reported he had not received any comments back from correspondence he sent to Sears and asked council if they wanted him to stop in Chicago on his way back from Washington, DC. He added, he believed Kenai needed to be aggressive in encouraging Sears (and Walmart) to move operations to Kenai. Measles suggested Williams stop in Chicago. Williams stated he would try to contact them for an appointment. He added, while in Juneau, he would find out how many shares of Sears stock the Permanent Fund owns and how many shares Alaska residents own. d. Old Library Building/Kenai Arts 8a Humanities Lease -- Williams requested to look at the lease for the building. I-2, City Manager -- a. Seagraves Fire Truck -- Ross referred to his memorandum included in the packet in regard to the Seagraves fire engine. He added, along with the memorandum was information regarding the mechanical condition of the engine, etc. which is being sent out to anyone interested in the engine. Ross also noted, his memorandum discussed the rationale used in the city's negotiations with ESI in regard to their acquiring the engine. b. Fire Department/Airport Response -- Ross reported he would trammel to Anchorage on February 18 with Atha and Elson to talk with FAA regarding the Fire Department's response time to the airport and how to address concerns. C. Emergency Management Relocation -- Ross reported a decision of whether the Emergency Management Office is moved to the ARFF will be decided by the end of February. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 19 d. Gravel Pits -- Ross reported he discussed the history of gravel pits with the Planning 8v Zoning Commission and asked if there had been concerns regarding gravel pits in the past as well as if they would have any objections to consideration of placing side buffers of pits and providing rear buffers on pits bordering city land. Ross added, the Commission did not send up any hurdles so he would be discussing the matter with Attorney Graves. He planned to meet with the gravel pit owners as well. If it is determined an ordinance should go forward, Ross reported, he will bring the information back to council. e. Librarian Hire -- Ross reported an offer had been made to fill the librarian position. He noted, Librarian DeForest was extremely helpful in screening applications. Ross added, he anticipated making an announcement at the next council meeting. DeForest will continue working through April. f. Miscellaneous -- Ross reported he would be out of the office on Friday. He noted, the Seagraves resolution would be back before council on March 3. I-3. Attorney -- No report. I-4. City Clerk -- No report. I-5. Finance Director -- Semmens referred to a commercial fishing report of information distributed to council before the meeting. He noted, the information was compiled from Borough property tax rolls. I-6. Public Works -- Kornelis reported he and Bill Nelson met with permit agencies in regard to the draft plan for improvements to Cunningham Park. He noted, the tentative plans were to remove the gravel path (as it is now) and move it more in the area of where the boat ramp is. Also, the plans will be changed to make the ramp a haul -your -own and have the handicap access path come up in the same area. Kornelis added, all the agencies recognized there is an existing boat ramp and seemed pleased the plan did not include a power boat launch ramp. He noted, Nelson was working on the updated plans which should be back before council at their next meeting. I-?. Airport Manager -- Atha reported he was still trying to contact Airline Support, Inc. in regard to adding another commuter service to Kenai. ITEM J: DISCUSSION J-1. Citizens KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 20 Jill Lipka -- 1606 Salmo Circle, Kenai. Lipka asked why AT&T were wanting to move their operation to Soldotna. Williams answered they felt they would get more traffic in Soldotna from which to draw. Lipka stated she was in favor of the multi -purpose ice facility. She asked at what point would the facility begin to pay for its own construction and whether that was taken into consideration. Williams answered, numerous studies had been done over the years in regard to cost allocation, proposed charges, etc. He added, the cost of operation of the bare -bones facility should be less than $70/hour. If a full facility is built through a bond issue/mill increase, the operational costs would run close to $100/hour. However, if a bond issue were used to fund the building, Williams added, he thought it would take most of the revenues to retire the bond and didn't believe that to be feasible. Ross added, it is probably very rare with most ice facilities that revenues cover operations and amortization. Lipka asked what types of fees were being considered, i.e. track, ice, exercise room, climbing wall, etc. Williams answered, they would have to be considered on an individual basis, similar to the Recreation Center. Mark Schrag -- 312 Princess, Kenai. Schrag stated he had not been happy with the process of choosing Planning 8. Zoning Commission appointments, but was with the choosing of the council position appointment. He added, he commended council in regard to the appointment process and the time and energy taken in making the decision. Bill Frazer -- Stated he appreciated council's appointing him to the council position. He noted, this would be a new venture for him but he would try to become an effective council member. Frazer added, he was happy to serve. J-2. Council -- Bookey -- Congratulated Frazer on his appointment and added, he appreciated the other candidates' interest as well. He hoped to see more people involved and running for council positions. Swarner -- Congratulated Frazer and thanked Schrag for staying and attending meetings. She noted, she planned to attend a portion of the Kenai Water shed Forum on Saturday at the KVCC. Swarner also reported Susan Hett received her plant and thanked council for it. Moore -- Congratulated Frazer and thanked Schrag for staying through the process. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 3, 1999 PAGE 21 Measles -- Congratulated Frazer and urged the other candidates and attendees to keep coming back to meetings. Bannock -- Echoed the other council members' comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURN�T The meeting adjourned at approximately 10:20 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk flier- WED BY COUNCIL DATE 1TY CLERK