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HomeMy WebLinkAbout1999-06-02 Council MinutesAGENDA KENAI CITY COUNCIL -REGULAR MEETING JUNE 2, 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. Vince Wagner -- Proposed Change to Cunningham Park ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1828-99 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 1999 and Ending June 30, 2000. 2. Resolution No. 99-31 -- Awarding a Janitorial Contract for the Kenai Visitors Center to Todaly Unlimited for the Period July 1, 1999 Through June 30, 2000. 3. Resolution No. 99-32 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 1999 and Ending June 30, 2000. 4. Resolution No. 99-33 -- Transferring $1,100 in the General Fund for Travel to Dynix Training in New Orleans. 5. Resolution No. 99-34 -- Transferring $25,000 in the Kenai ARFF Capital Project mind for Additional Engineering/Inspection Fees. ITEM D: COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission -1- 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. *Budget Work Session of April 26, 1999. 2. *Budget Work Session of May 10, 1999. 3. *Regular Meeting of May 19, 1999. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS 1. Discussion -- Petratrovich, Nottingham 8v Drage Proposal/Kenai Coastal Trail. ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1829-99 -- Increasing Estimated Revenues and Appropriations by $10,000 in the Airport Land System Special Revenue Fund for Utilities at the Alaska Regional Aircraft Fire Fighting Facility (ARFF). 4. *Ordinance No. 1830-99 -- Increasing Estimated Revenues and Appropriations by $424,467 in the '98 Water System Improvements Capital Project Fund. 5. *Ordinance No. 1831-99 -- Increasing Estimated Revenues and Appropriations by $1,782 in the Cunningham Park Capital Project Fund. 6. Approval -- Special Use Permit/Alaska Call Connection, Inc. 7. Approval -- Special Use Permit/Dottie Fischer d/b/a Alaska's Best � Travel. -2- 8. Approval -- Lease Application/Dan Van Zee, d/b/a Hertz Rent-A-Car - Lot 9, Block 2, Cook Inlet Industrial Air Park. 9. Approval -- Amending the Engineering Services Agreement with Morrison Maierle, Inc./Alaska Regional Fire Training Facility -- $25,000. 10. Approval -- Change Order No. 8/Morrison Maierle, Inc./Alaska Regional Fire Training Facility -- $10,864.00 11. Discussion -- Kenai Harbor Rate Schedule 12. ITEM I: 1. 2. 3. 4. 5. 6. 7. Discussion -- Forest Drive/Redoubt Avenue -- Water and Sewer Main Crossings. ADMINISTRATION REPORTS Mayor City Manager Attorney City Clerk Finance Director Public Works Airport Manager DISCUSSION 1. Citizens (live minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL -REGULAR MEETING DUNE 29 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:05 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: Bookey, Moore, Frazer, Williams, Swarner and Bannock. Absent was: Measles. A- 3 . AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-2, Persons Scheduled to be Heard -- Representative Hal Smalley -- Report from the Legislature MOTION: Councilwoman Swarner MOVED for the approval of the amended agenda and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, A-4. CONSENT AGENDA Mayor Williams reported he had no changes to the Consent Agenda. The Consent Agenda was accepted as presented. ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Vince Wagner -- Proposed Change to Cunningham Park Reported he would be meeting with the Parks 8v Recreation Commission at their next meeting to present a small plan (to incorporate apull-out for drift boats). He added, he wanted council to know he and others were continuing to work on a plan and that Councilman Bannock suggested he discuss the plan with the Commission prior to the council. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 2 Mayor Williams reported he went to Cunningham Park with Wagner and others and felt if there was a way to incorporate a pull-out and everyone agreed to the design and location, having a pull-out for drift boats may work. However, the biggest concern would be the cost and funding. Councilwoman Swarner stated her concern adequate parking would be available in the Park. Wagner noted, it would be a pull-out only and they would have someone meet them at the Park and pick them up. Councilman Moore asked if the residents of Beaver Loop Road were involved in the discussion at this point. Williams noted, if any changes were being considered, the residents would have to be included in the discussions. He added, he had already discussed this with Wagner. B-2. Representative Hal Smalley -- Legislative Update Representative Hal Smalley, 105 Linwood Lane, Kenai. Representative Smalley reported on the State budget, Kenai area projects and the State balanced budget plan. He noted, as a Representative, it was interesting being on that side of the table instead of as a council member. He added, he enjoyed it and was looking forward to returning. Smalley stated the Governor presented his budget in January and after the House and its committees reviewed it, they cut approximately $34 million from that budget. The Senate then reviewed the budget and cut $40 million from the budget. A major area of difference between the Senate and House in regard to the budget was the municipal assistance and. revenue sharing funds; the House cut all of that funding and the Senate added back $32 million. The Conference Committee then settled on that figure. Smalley added, he would have liked to see more municipal assistance/revenue sharing added back into the budget, but knew there would have been some cuts. Smalley speculated the Legislature would look to the municipal assistance/revenue sharing as a source of cuts for the future. Smalley also reported approximately 278 General Fund positions in state government would be cut, and other cost -saving mechanisms would be considered (a privatization bill, labor contract review, consolidation of two departments, etc.) . Smalley reported the Capital Budget was $1.12 billion and of that the Peninsula would be receiving approximately $7 million for projects. To the City of Kenai, approximately $250,000 would be received for the design and engineering of the city maintenance facility. Smalley noted when the budget left the Senate, this project was not listed and when the budget left the House, it was in the budget. Smalley also reported $1.7 million was re -appropriated for the development of the Public Health Facility; the Forest Drive/Redoubt Avenue rehabilitation project received $2.5 million which would added to another $3.5 million which had already been set aside; KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1999 PAGE 3 the North Kenai Spur Highway rehabilitation would receive $95,000 this year to clean up right-of-way problems; and the Sterling Highway/ Soldotna bridge project received $14.3 million for its rehabilitation. Smalley reported the TRAK program received $1.4 million for the Unity Bike Path/Trail; municipal street improvements matching grant would receive $149,911; and Kenai Peninsula Borough -wide road projects would receive approximately $500,000. Smalley noted, other than the funds for the maintenance facility, the other funds and projects had been in "the works" for some time and came to fruition during his tenure in the Legislature. Smalley also reported the largest discussion taking place in the Legislature was the fiscal gap and what to do. He reviewed discussions which took place and noted there were several plans suggested. The plan settled on by the Legislature incorporated ideas from several of the suggested plans and to use the earnings reserve of the Permanent Fund. What they wanted was a plan that was sustainable, long-term, protected dividend checks, protected the Permanent Fund and resolve the gap. The plan settled on is called the "Balanced Budget Plan of Alaska" and would be voted on as an advisory vote by the voters of Alaska in a special election to be held on September 14, 1999. Smalley explained the structure of the plan. He added, he supported this plan because it included items which were concerns of constituents and others that had contacted him, i.e. high -dividend yield, protect the Permanent Fund, bring a closure to the gap and the right to vote on the matter. He added, what sold him on the Balanced Budget Plan of Alaska was that it would protect the Permanent Fund, allowed it to continue to grow, and took into consideration future budget cuts, including $30 to $40 million for the next two years. Smalley stated, the ballot question would say, "After paying annual dividends to residents and inflation -proofing the Alaska Permanent Fund, should a portion of the Permanent Fund Investment Earnings be used to help balance the State budget? Yes or No." Smalley added, he would be traveling the Peninsula to talk with residents about the Plan so they will be informed when they go to vote. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1828-99 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 1999 and Ending June 30, 2000. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1828-99 and Councilwoman Swarner SECONDED the motion. There were no public comments. Williams noted the total budget was approximately $12 million of which $7.5 million affected the General Fund. Williams thanked the KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1999 PAGE 4 administration. for their efforts in preparing the budget. Bookey agreed and added, he had been concerned the mill rate would need adjusting but was pleased it was able to be held. He added, he believed the public would be grateful, as well as council. VOTE: Measles Absent Bannock No Frazer Yes Williams Yes Bookey Yes Swarner Yes Moore Yes MOTION PASSED. C-2. Resolution No. 99-31 -- Awarding a Janitorial Contract for the Kenai Visitors Center to Todaly Unlimited for the Period July 1, 1999 Through June 30, 2000. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-31 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED, C-3. Resolution No. 99-32 -- Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 1999 and Ending June 30, 2000. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 99-32 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. It was noted, the mill rate had been maintained at 3.5 for approximately seven years. Williams noted, council had studied the budget issue and believed a mill rate increase would be required and slated it for 2002. However, due to the revenue decreases, he wanted the public to be aware the increase may come in 2001. He added, the residents needed to recognize the cost attributed to the services they now enjoy. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 5 C-4., Resolution No. 99-33 -- Transferring $1,100 in the General Fund for Travel to Dynix Training in New Orleans. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-33 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-5. Resolution No. 99-34 -- Transferring $25,000 in the Kenai ARFF Capital Project Fund for Additional Engineering/ Inspection Fees. MOTION: Councilman Bannock MOVED for approval of Resolution No. 99-34 and Councilman Moore SECONDED the motion. There were public comments. It was apparent there was some hesitation in proceeding with discussion on the resolution and it was suggested the resolution be heard immediately after discussion of Item H-9, a request to amend the engineering services agreement with Morrison Maierle, Inc. Bannock withdrew his motion. Council agreed to hearing the resolution after discussion of H-9. ITEM D: COMMISSION / COMMITTEE REPORTS D-1. Council on Aging -- Swarner reported there had not been a meeting since council's last meeting. D-2. Airport Commission -- Bannock reported the minutes of the May meeting were included in the packet. D-3. Harbor Commission -- Bookey reported the next meeting would be held on June 7, 1999. D-4, Library Commission -- Moore reported a meeting was held on June at which a report from the Friends was given and the Commission unanimously approved amending to the lending policy for the library. Moore also reported the Commission recommended the July 4th weekend be "amnesty days" for returning overdue books to the library; fines will be waived. Also, the Friends of Library book sale would be held June 4-6. KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1999 PAGE 6 Moore noted, because there would be no quorum available for the July meeting, a request was made to cancel the Commission's July meeting. Council had no objections to the cancellation. He added, he was interested in learning the library was the only possessor of past paper editions of local newspapers. D-5. Parks & Recreation Commission -- Frazer reported the Commission would be meeting next on June 3, 1999 at 7:00 p.m. in the council chambers. D-6. Planning &. Zoning Commission -- Bannock reported the Commission last met on May 28. He reviewed actions taken by the Commission: • Old Business: A final re -plat and encroachment permit were approved. • New Business: Landscape Site plane reviews were approved for the Dairy Queen property, Church of God and Creative Child Care; a lease application for Lot 9, Block 2 of the CIIAP Subdivision was approved with amendments from administration. • Further review of Ordinance No. 1818-99 and 1817-99 allowing for administrative exemptions for encroachments and variances. Bannock noted, he informed the Commission the ordinances would be before council again at their June 16 meeting and invited the Commission members to attend the meeting. Bannock also noted the encroachment requested for one of the Commission's agenda items would not have had to go before the Commission had Ordinances No. 1817-99 and 1818-99 been in place. Bannock added, he wanted to assure council the Commission was confident administration would handle such items fairly and would not abuse their authorization. Moore asked if neighbors of the applicants commented on the encroachment request. Bannock answered no and added he would be bringing Ordinance No. 1809-99 (requiring applicants to post variance or encroachment requests) up for review in the near future. He passed out a memorandum which had been distributed to the Commission from administration regarding the posting ordinance. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the Committee would meet next on June 8. She noted, the Committee members and volunteers had been planting and were in need of fresh cut grass for use in the flower beds. D-7b. Historic District Board -- Moore reported the next meeting would be held on July 19. D-7c. Kenai Visitors & Convention Bureau Board -- Bookey reported there was no meeting scheduled for the immediate future. He reminded council the Alaska Permanent Fund Board of Trustees would be holding their meeting at the KVCC on June 16. He noted a reception was scheduled for June 15 from 4:45 to 6:00 p.m. at the ARFF. D-7d. Alaska Municipal League Report -- No report. KENAI CITY COUNCIL MEETING MINUTES JUNE 211999 PAGE 7 ITEM E. MINUTES E-1. Budget Work Session of April 26, 1999. Approved by consent agenda. E-2. Budget Work Session of May 10, 1999. Approved by consent agenda. E-3. Regular Meeting of May 19, 1999. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1. Discussion -- Petratrovich, Nottingham & Drage Proposal/ Kenai Coastal Trail. Williams noted, council entered into an agreement with Petratrovich, Nottingham & Drage (PND) for $5,000 in order for them to do a preliminary study for bluff erosion. He noted the information included in the packet from Kornelis indicating the Harbor Commission's recommendation to proceed with the project proposal as well as the proposal letter from PND. Williams suggested council ask administration what they thought would be the total amount to have bid -ready documents prepared. Ross explained, the $53,200 would purchase a pre -engineering design and would give the city a package which could be used to market the project. He also recommended council appropriate the funds from the fund balance in order to have the work done. Ross added, the Coastal Trail Plan, with the current views on Outer Continental Shelf (OCS) funding was probably council's best bet to procure funds to do this type of project, i.e. addressing of erosion in combination with the coastal trail fits under the OCS legislation now before Congress. He continued, getting Corps of Engineers funding was very doubtful. Ross stated, the pre -engineering design would develop a package which could be marketed, presented to Senator Murkowski and others, and after receiving OCS impact money or federal funds, the project could go to actual design engineering. He added, this portion of the project would help delineate the overall cost of the project. Bookey stated he believed, with the congressional leverage Alaska, now was the time for this project to proceed. He added, if this opportunity was missed, he didn't believe another one would come. Through bank stabilization, the project offered KENAI CITY COUNCIL MEETING MINUTES JUNE 211999 PAGE 8 more potential and new direction for Old Town than ever before. He added, he was not comfortable with the cost ($53,200), but would support proceeding with the project. Bannock suggested an additional sponsor of this portion of the project be located because the city had co-sponsors of projects in the past (ARFF, Cunningham Park, Challenger, etc.). He added, he believed now would be the easiest time to take on a co-sponsor, but as the cost escalates for the actual work, it would be harder for an organization to get involved. Bannock added, he believed the project (at this point) was doable and the $53,200 was not an overwhelming amount of money, and would be very comfortable in going forward with the project if a co-sponsor could be found. Ross proposed to go forward with the $53,200 to get a product to sell. After that, funds would be necessary for lobbying the congressional delegation in order to acquire the funds. He added, without spending the $53,200, the city wouldn't have anything to sell and suggested to bring in sponsors after receiving something to show them. Bannock stated he disagreed with that philosophy and added, if the project failed because no one was willing to get involved as a co-sponsor, it could be deemed as an unworthy project from the beginning. Bannock suggested other state departments may be interested in co -sponsoring the project. He added, he wanted the funds to come from somewhere other than the General Fund. Frazer stated he agreed with the partnership idea between the public and private sector. However, he didn't believe this portion of the project fit that idea; there needed to be something in the project for the partner. He added, this portion would be a limited part of the project and when comparing $53,200 to $5 million, he didn't believe the $53,200 a large amount of money. Frazer added, he supported the project and felt council should go forward with it. Bookey stated, he believed there would be business people or groups willing to support the project after this level (lobbying, etc. in conjunction with the council). He added, he agreed with Frazer that this was not the appropriate time to find co- sponsors. Bookey added, he agreed with Bannock that at some time it would be worthwhile for the city to explore co -sponsoring the project with the State Department of Parks or others. Ross reported Kornelis gave a presentation on the project to the Kenai River Special Management Advisory Board (KRSMA) and it was well received. He added, once the documents are in hand, he believed the Board would invite him back and would increase their involvement with the project. As far as putting the project out before agencies, it was a case of which would come first. Ross added, he believed the project should proceed. Swarner suggested administration contact the Kenai Watershed Forum as she thought they would also be interested in the project. Moore noted PND's letter proposed to do the work at their time and material rate and asked if the city was KENAI CITY COUNCIL MEETING MINUTES JUNE 22 1999 PAGE 9 getting into more than the $53,200. Kornelis answered, when he discussed the project with PND, it was decided to go with a not -to -exceed amount, based on hourly rates, but not going over $53,200 which is the normal way the city does a lot of engineering work. Frazer clarified his earlier statement regarding a partnership in doing the project and stated, he thought it was something to be pursued. However, this portion of the project should be done, in order to pursue a partnership. Bookey stated, he would want the firm to have an understanding the amount would not go to more than the $53,200 and a document would be required at that amount to be used for marketing and not have any surprises in the costs. Kornelis referred to his letter included in the packet which explained to PND's what the city wanted as a project presentation package to include a detailed preliminary schematic design, a good survey and detailed cost estimate with quantities, prices and cost for right-of-ways. He added, also requested were two public hearings. Noted also in the letter was that the city usually works with consultants on a rate -fee schedule with a not -to -exceed amount. Kornelis added, during his meeting with PND, it was also stated they could work to the $53,200 amount and anything over would have to be requested in writing and approved by council. The not -to -exceed wording would also be included in the contract with PND. Bookey stated he wanted to be sure a complete document would be developed to present to the congressional delegation and use for a marketing tool. Ross explained, if council directed, an appropriation ordinance would be prepared and included in the next meeting packet for council consideration. Then, documents would be prepared and the engineer involved would make a presentation to council at the time of the contract approval and award. Williams stated he believed this would be a tremendous project for the city and agreed with the possible development of a partnership in the future. He suggested the partners could include groups who would benefit from the project other than the property owners, i.e. visitor groups, KRSMA, Exxon Valdez, etc. Williams suggested a group be formed to lobby the project in the future. Williams noted, the project would be an off -budget item and come from the General Fund. He added, he believed council was directing administration to bring back a budget ordinance, have a public hearing, and representatives from the engineering firm would be present. Ross noted, it would be company representatives being present at the time the contract was brought forward for consideration. Williams agreed and there were no objections from council. BREAK TAKEN: 8:22 P.M. BACK TO ORDER: 8:35 P.M. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 10 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: Councilman Bookey MOVED to approve the purchase orders exceeding $2,500 and Councilman Moore SECONDED the motion. Bannock noted the purchase order for paving repair work needed at First and Float Plane Basin Road and asked why the pavement was cut. Kornelis answered, it was cut because of a storm drain problem as well as large dip in the roadway. He noted, the work to take out the dip included digging out bad material in that area. He added, there had been a number of complaints about the dip and there were some who felt a deadly accident happened along that road because of the dip (it was noted the driver was also speeding) . Bannock stated he was disappointed the work to take the dip away was now causing the city an additional $10,500 to patch. He added, he would support the purchase order because the cut in the pavement was unacceptable. Bookey questioned whether the price for asphalt was a negotiated price. Kornelis explained, he requested prices from three companies. Of the three prices received, this was the lowest. Also, the asphalt work would include the cut at First and Float Plane Road (curb/sidewalk and paving), Cohoe Circle and Granite Pointe. Kornelis added, Davis - Bacon wages were being paid for amounts over $2,000. Swarner stated her concern the work should be done during the summer. Kornelis stated the contractor would be notified when the purchase order was approved and a completion date noted. VOTE: There were no objections. SO ORDERED, H-3. Ordinance No. 1829-99 -- Increasing Estimated Revenues and Appropriations by $10,000 in the Airport Land System Special Revenue Fund for Utilities at the Alaska Regional Aircraft Fire Fighting Facility (ARFF). Introduced by consent agenda. H-4. Ordinance No. 1830-99 -- Increasing Estimated Revenues and Appropriations by $424,467 in the '98 Water System Improvements Capital Project Fund. KENAI CITY COUNCIL MEETING MINUTES JUNE 22 1999 PAGE 11 Introduced by consent agenda. H-5. Ordinance No. 1831-99 -- Increasing Estimated Revenues and Appropriations by $1,782 in the Cunningham Park Capital Project Fund. Introduced by consent agenda. H-6. Approval -- Special Use Permit/Alaska Call Connection, Inc. Ross explained, action would continue the present Special Use Permit to Alaska Call Connection, Inc. He added, administration recommended approval. Bookey asked how much revenue was received from the permit. Acting Airport Manager Holland reported, revenue generated last year was $524 which was 15% of the permittee's revenue. MOTION: Councilman Bannock MOVED for approval of the Special Use Permit to Alaska Call Connection, Inc. as indicated and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-7. Approval -- Special Use Permit/Dottie Fischer d/b/a Alaska's Best Travel. MOTION: Councilman Bookey MOVED for approval of the Special Use Permit to Dottie Fischer, d/b/a Alaska's Best Travel and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED, H-8. Approval -- Lease Application/Dan Van Zee, d/b/a Hertz Rent-A-Car - Lot 9, Block 2, Cook Inlet Industrial Air Park. MOTION: Councilwoman Swarner MOVED to approve the lease application submitted by Dan Van Zee as presented and to include the Planning & Zoning Commission's recommendation for minimal landscaping to match the adjacent lot. Councilman Bookey SECONDED the motion. Ross explained, administration recommended the approval of the lease agreement in order to proceed with the leasing process. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES JUNE 211999 PAGE 12 H-9 9 Approval -- Amending the Engineering Services Agreement with Morrison Maierle, Inc. /Alaska Regional Fire Training Facility -- $25,000. Ross referred to a report and request from Morrison Maierle, Inc. included in the council's packet. He noted, City Engineer La Shot instructed Morrison Maierle to document their request. He added, the report/ request was also forwarded to the FAA and they consented to participate in all of the change orders. The level of their participation would vary. Ross added, an additional $53,000 had been received from FAA for the project and would be applied to the project. He noted, the justification for many of the change orders were as a result of increased inspection activities as a result of earlier approved change orders. Ross suggested council discuss the matter further with Architect Bill Kluge, La Shot, or Semmens. Williams referred to Page 2, Paragraph 3 where it discussed $3,000 for sub - consultant fees and $1,900 for a final trip to Kenai to close out the project (if requested by city staf fl . Williams asked La Shot if he believed the trip would be needed and La Shot answered it was likely it would not be necessary. La Shot added, over the course of the project, Morrison Maierle had deferred some of the inspections to the local firms and that could be done in finishing the project. He added, he believed the amounts were included in the budget in case it was necessary for final project closeout. Bill Kluge -- Stated he was the point -man in the absence of Morrison Maierle's on - site representative. He noted, for the majority of the project, they had a full-time inspector on site however there were several times when Nelson & Associates and he had filled in for inspections. Kluge added, the project had an extremely exorbitant amount of paperwork [approximately 300 Design Clarification Requests (DCR)]. He noted, the majority of the requests for information from the contractor were included in the work and if they had not been, there would have been an increase in change orders for the project. Kluge added, the letter indicated the percentage of change orders compared to the total of the project; the building was eight -tens of one percent, which was extremely low. He noted, to accomplish that, they defended their documents against claims a number of times. Kluge added, with having several inspections requested and were rescheduled and defending claims, etc., extended the length of the project. He noted he had approximately $2,500 in outstanding invoices. Williams asked if council approved the request for payment, would part of the money go to Kluge and could he arrange to do the final inspection in order to negate the need for a Morrison Maierle representative to travel to Kenai. Kluge answered, he thought that could be done because only topsoil, seeding, and miscellaneous items were remaining to be done. He added, he requested the lessee of the facility, ESI, to keep a list of defective items in order to be included in warranty work. Kluge suggested to hold an inspection just prior to the end of the year warranty date and have the contractor take care of those items. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 13 Williams noted council is always concerned about change orders and added, there were 42 change orders were requested but many were denied. He noted, there were 230 DCR's and he thought that was a high number. Kluge stated, when it can't be pointed out in the documents where an item is required, it ends up as a change order before council. Bannock referred to the letter and noted Morrison Maierle was asking for $25,000, however delineated in the letter were other amounts ($17,800 for the well design, $19,224 for labor costs, and $3,000 for sub -consultant fees). He asked if they were asking for those amounts, but were willing to settle at $25,000. La Shot explained the $25,000 would be the total requested amendment. The letter explained the various reasons they arrived at that figure. He noted, one of the important items to note was they overpaid their sub -consultants by approximately $28,000. This had been noted by Morrison Maierle in previous discussions. At that time it had been agreed they would try to absorb as much of that cost as possible. In summary, the letter was requesting $25,000 to cover the difference in their original contract and what they believe it would take to close the project. La Shot added, he assumed half of the money would go to the subcontractors and the rest to project closeout and preparation of as-builts. La Shot noted, that would be the last request for additional payments from Morrison Maierle. Bannock referred to the second paragraph of Paragraph 1 of the letter where it was noted "Normally you could expect a design and construction management fee of about 12%-15% of the Total cost of a construction project..." Bannock asked if the project was done on a percentage basis or a flat fee and if something was done abnormally. La Shot answered, he believed the writer was trying to relate the actual cost to the percentage basis of construction. It was a negotiated fee at the beginning of the project as the project was known at that time. La Shot noted, the city's share of the $25,000 would be $781.25 (FAA paying the remainder) . MOTION: Councilman Moore MOVED to amend the engineering services contract with Morrison Maierle in the amount of $25,000 and Councilman Frazer SECONDED the motion. Bookey asked, out of the $25,000 what was the city's share. Ross answered the city's share was $781 and the balance would be paid by the federal government. VOTE: There were no objections. SO ORDERED. C-5. Resolution No. 99-34 -- Transferring $25,000 in the Kenai ARFF Capital Project Fund for Additional Engineering/ Inspection Fees. � MOTION: KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 14 Councilwoman Swarner MOVED for approval of Resolution No. 99-34 and Councilman Bookey SECONDED the motion. There were no public comments. Semmens reported, before this transfer there was $37,847 remaining in the contingency budget. Semmens explained, money came to the city through amendments to the grant which were not appropriated and the project had not exceeded its original budget. Ross noted, in addition to the $210,000 which had been received in revenue, $135,000 would be coming. Semmens also stated, he estimated $300,000 (the amount of the contingency) in unappropriated revenue would be returned to the Airport Fund after the project closed. VOTE: Measles Absent Bannock Yes Frazer Yes Williams Yes Bookey Yes Swarner Yes Moore Yes MOTION PASSED UNANIMOUSLY. H-10. Approval -- Change Order No. 8/Morrison Maierle, Inc./Alaska Regional Fire Training Facility -- $10,864.00 Williams noted the change order dealt with one of the subcontractors for ventilation revisions and snow -melt system valves. La Shot noted a portion of the change order would take care of the problem with the air movement in the upper level of the building from opening and closing the doors; a portion having to do with the snow melt system; and deletion of an exhaust system in the apparatus bay. La Shot added, representatives from the companies in regard to these items were in the audience. La Shot reported the percentage of participation by FAA on Item 1 would be 68% (instead of the 80/20 split) because the improvement would be specific to the administration area of the building and didn't have an effect on the apparatus bay. The cost to the city would be approximately $2,600. The split of cost for Items 2 and 3 would be the normal 3.125% to the city, however Item 3 was a credit item. The cost to the city for Item 2 would be approximately $117. Semmens reported the funds to cover the change order amounts would be covered from the construction account. No changes would be made from the budget. Swarner asked how much of the work had been completed. La Shot answered, Item 2. Swarner stated she would not support the change order because she did not support change orders that are completed prior to notification to the council. Williams noted there was a policy in regard to payments and asked if there was a mitigating reason for the snow -melt system valves done prior to the authorization of the change order. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 15 Terry Kaas, Norm's Plumbing -- Kaas explained the valves were for isolation purposes for repair and maintenance and were not part of the original design. He added, normally the valves would be considered as balancing valves but balancing valves were not needed on that system because it was a self -balancing system. In discussions with the designers, it was agreed with them valves would be a good idea and they put the valves on and shipped the manifolds to them in that condition. They were pre -constructed at the designers' request. Bannock noted the change order was coming from Radiant Engineering and he appreciated them stating in their letter that the addition of the valves was meant to save time and money in the future on service work. Bannock added, he had no objection to the $117 (city's portion) for this portion of the change order. Bannock suggested Item 2 be separated from the other items due to Swarner's objection to the work having been done. Williams suggested the items not be separated and the vote taken. VOTE: Measles Absent Williams Yes Moore Yes Bannock Yes Bookey Yes MOTION PASSED, H-11, Discussion -- Kenai Harbor Rate Schedule Frazer Yes Swarner No Bookey explained he was not able to attend the meeting at which the Commission made their recommendations for amendments to the rate schedule. He added, he believed administration's recommendations were more realistic and more appropriate than those suggested by the Commission. Bookey added, he didn't think the private sector should be put at a disadvantage and the city's rates should be more in line with the private sector. Also, if it was desired to keep the dock in operation, revenue needed to be raised. Bannock asked if the money collected at the dock was placed into the Harbor Enterprise Fund. Semmens answered, yes and noted the deficit in the Fund was approximately $85,000. Williams asked where the funds collected from parking fees at the beach would be placed. Ross explained, the fee would be $5.00 for 12-hour parking. An iron maiden and envelope system would be used to collect the money. The fees collected would be placed in the General Fund. The fees would be collected only during the dip net season to cover costs for personnel, dumpsters and port -a -potties needed during that time period. KENAI CITY COUNCIL MEETING MINUTES JUNE 22 1999 PAGE 16 Swarner recommended the dock fees be raised as Ross had suggested and possibly a sign be placed at the dock defining why the fees are collected, etc. in order to educate the public why the prices were raised. MOTION: Councilman Bookey MOVED to maintain administration's recommendation for dock fees at $10, $100, $100, and $7. 00. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, H-12. Discussion -- Forest Drive/Redoubt Avenue -- Water and Sewer Main Crossings. Kornelis explained the crossings were mainline crossings for possible future extensions of roads. Ross reported, the work would prevent problems to occur and put the road be in the shape it currently was in. He added, Kornelis would be reviewing the list to see if there could be some reductions in the amount of crossings and then submit it to DOT. He added, once the road was reconstructed, they didn't want cuts made for future development along the road. Based on the crossings listed, the city's exposure would be $92,000. Bookey asked if the estimates were DOT's and Kornelis answered yes. Bookey added, because of the depths of the present mains, he thought the $92,000 wasn't a realistic number for the amount of crossings needing to be made. He added, he was concerned the cost could come back at $150,000-$200,000 and asked if the Water/ Sewer Fund could sustain that cost. Kornelis suggested the city have an agreement with DOT that the city would decide whether to go forward with the crossings after the bids are received (an additive alternate to the specifications) . Ross added, these were extensions Public Works suggested would be or could be needed in the future based on the properties. Kornelis would review them again to see if reductions could be made, but those listed were what he thought were potential future cuts necessary to service properties and get mainline across the street. Frazer asked if the list could be prioritized and brought back to a reasonable funding level. Ross stated that could be done and noted, they also discussed possibilities of cost recovery against properties. He added, he would hate to cut back the number of crossings past what was projected for future need in order to not cut the road. Williams suggested administration keep council informed of the project when the agreements are ready. Swarner asked if concrete sidewalks were still planned for the project. Kornelis answered, for Forest Drive reconstruction would also include two driving lanes; six-foot paved shoulders; curb and gutters; storm drains; and four -foot concrete sidewalks on both sides of the road. He added, Redoubt Avenue reconstruction would include an eight to ten -foot asphalt bike path on one side which would be excavated first. Williams noted this project began at a $2 million level and was now to $6 million which was one of the reasons the project had been stalled. Administration was KENAI CITY COUNCIL MEETING MINUTES JUNE 22 1999 PAGE 17 requested to keep council informed and .bring back information as it became available. ITEM I: I-11 Mayor ADMINISTRATION REPORTS a. State Gas Pipeline -- Williams reported he attended a meeting with several mayors from across the state regarding the development of a plan to build astate-owned or partnership gas line. He noted, meetings had been held with the CSX Corporation (extremely interested in joining with the mayors) who hold the only in -place permits for building such a pipeline. Two concerns for developing the pipeline would be the cost (approximately $12 billion) and the abundance of gas on the world market. Williams added, the window of opportunity to accumulate long-term partners was only two to three years. He noted, the plan would be to finance as much of the pipeline through state revenue bonding (the revenue from the pipeline would retire the state bonds) . Also, the plan suggested as much non-taxable or tax -reduced funding as possible to be used for the purposes of lowering the overall amortization. He noted, there were people who believe that if the state is able to run the Permanent Fund Corporation, it should be able to run this type of partnership business. Also, the mayors decided the discussions with CSX should continue and with other possible partners, as well as with the Department of Natural Resources and the Legislature and encourage them to strongly consider the construction of a state-owned pipeline. Williams added, the indicated profits to the state had been estimated at $12 billion. b. Economic Development District -- Williams reported the EDD Board of Directors voted to terminate the executive director on the basis of mutual understanding and difference in philosophy. He noted, in his opinion there was a great amount of politics involved from both sides. The main concern was the EDD budget, which he reported, had been approved at $533,000 by the Borough Assembly at their last meeting. I-2. City Manager a. Project Impact Grant/FEMA -- Ross reported the Borough received a Project Impact Grant from FEMA for disaster mitigation programming in the area of education. One of the major targets is the potential for wild land fires from the Spruce Bark Beetle -killed trees. He noted Fire Chief Elson had been working with the Borough and developed a proposal for Kenai to participate in -kind by providing the Impact Program office KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 18 space at the ARFF free of charge. The Program would pay for their telephone costs. Ross added, he had reviewed the documentation and believed it a good program for the city's participation and good for the program to be administered from within the City of Kenai. He noted, the Program was for one year and because there were subdivisions within the City for which there was concern due to the beetle -killed trees, it would be good to be involved in the program. Ross stated, unless council had objections, the space would be made available for the program. There were no objections from council. b. City Hall Telephone System -- Ross explained that during the review of the phone system for Y2K compliance, discussions took place in regard to call -handling problems in City Hall, i.e. multiple people handling the same call, call load, etc. He continued, in the next two weeks investigation would take place to install a voice -mail system from the present budget. Ross requested council to listen to systems they access, noting what they liked and disliked in order to speak to the proposal. c. Tree removal/City Hall -- Ross reported some of the raggedy trees would be felled at the corner of the City Hall property (most of the trees will remain standing). Swarner asked how much square footage at the ARFF would be used for the Impact Program. Chief Elson answered, they would be using one of the smaller offices and use of the conference room from time -to -time. Swarner stated she thought it a great idea to have the Borough involved with using the ARFF. Swarner added, she also thought it a very good idea to upgrade the phone system and use voice mail. She requested the system include the ability to place a recorded message on the phone while a person was on hold. She noted, the message could have information about the city which could be changed occasionally, i.e. information regarding municipal assistance / revenue sharing cuts, etc. Williams asked if the company supplying the phone system was a local company. Ross answered, it would be an upgrade to the present system through PTI. He noted, the anticipated cost was $8,000. The telephone system would not be replaced. Ross added, the administrative assistants who dealt with the phone problems, had been working with the local PTI representatives on a solution. Ross added, if council wished, a system change could be made at the time of the City Hall remodeling. He noted, what would be added to the system now would not be lost. One of the criteria was that if a major KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1999 PAGE 19 upgrade was done in the future (tying other departments together), money wouldn't be lost in the upgrade. PTI assured administration that would not happen. I-39 Attorney -- No report. I-4. City Clerk -- No report. I-50 Finance Director -- Director Semmens reported the auditors were working on the city audit. The interim review would be finished during the week and they would return for the final work the first two weeks of August. I-6, Public Works -- No report. I-79 Airport Manager -- Acting Airport Manager Holland referred to the minutes of the last Airport Commission meeting and noted there were some issues discussed regarding space lease rates, etc. He added, those concerns would be discussed with the Commission and council at a later date. ITEM J: DISCUSSION J-1. Citizens a. Linda McNair -- McNair introduced herself as a city employee working at the library. McNair requested council consider the hiring of an employee to handle computer systems/ software problems. She noted, a lot of time was spent hiring various consultants to help with software problems, as well as employees trying to patch problems, etc. McNair added, if an in-house person was available, there wouldn't be so much duplication of effort and a lot less frustration with programs. Williams stated he wasn't sure council was ready to consider a full-time employee as a computer system administrator. He asked Ross if there had been some consideration in regard to contracting this type of work out locally. Ross answered, presently administration was investigating the contracting with a local consultant to provide that type of service. He added, a purchase order had been issued and the departments had been advised to use the individual. Ross stated, he did not support adding an additional person to staff when the private sector could be used. b. Bob Peters -- Peters asked if there would be a charge for using the existing parking area at South Spruce. Ross answered, consideration was being given to setting aside an area for limited time parking which would not be charged during July. This area would be for people to park and eat their lunch, etc. He added, the bulk of the parking would KENAI CITY COUNCIL MEETING MINUTES JUNE 22 1999 PAGE 20 be 12 hours and charged. Also, the road would be posted for no parking on either side of Spruce from the top of the hill down to the parking lot. Peters stated he supported charging a parking rate and questioned the enforcement of the parking, i.e. would there be 24-hour supervision. He noted, previously people came with their campers at 8:00 p.m. and stay all night. When the attendant comes to work the next morning, the camper is noticed and given another 12 hours. Ross answered, there would not be 24-hour supervision of the parking area. He added, 12-hour supervision was fairly successful last year. The same level of enforcement was planned for the coming season as used last year, i.e. one full-time person, use of part-time personnel and possibly Parks & Recreation employee help. Peters suggested the Youth Court community service sentences could e help with that work. J-2. Council Bookey -- a. Burned Buildings -- Bookey asked what the procedure was for disposing of burned buildings in town. Bookey noted a burned trailer in Old Town. Elson answered, he was aware of the building and the Building Official was working toward condemning he building. Bookey stated he was aware they were private property, but was concerned they were a nuisance and a danger to the community. He noted, he had observed two children playing in the trailer. Elson noted there were several buildings in town that were a nuisance concern and they were investigating having them razed. b. KVCC Request -- Bookey requested the parking lot at the KVCC be swept prior to the Permanent Fund Board of Trustees Meeting and other visitors coming to town. Swarner -- Requested sand at sidewalk/bike trail intersections and wheelchair access areas be swept as well. Moore -- No comments. Bannock -- No comments. Frazer -- No comments. Williams -- Noted the DOT letter included at I-1 in the packet which noted the reconstruction to take place during the summer along the Sterling Highway between the Seward "Y" and Kenai Lake. He noted, during meetings with KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1999 PAGE 21 Commissioner Perkins and Assistant Commissioner Parken, they agreed that anytime there was to be substantial work going in areas of the Seward and Sterling Highways, they would make sure signs would be placed noting the number of miles to Kenai. Williams requested administration correspond with DOT and remind them of the promises made by Perkins and note the city would appreciate placement of more mileage signs to Kenai. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 10:09 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk APPROVED BY COUNCIL �OrG DATA C