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HomeMy WebLinkAbout1999-07-07 Council MinutesAGENDA KENAI CITY COUNCIL -REGULAR MEETING DULY 79 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. 1832-99 -- Increasing Estimated Revenues and Appropriations by $55,000 for Preliminary Design Work on the Kenai Coastal Trail. 2. Ordinance No. 1833-99 -- Extending the Term for Investment Maturities from Two Years to Five Years and Changing Liquidity Requirements. 3. Resolution No. 99-42 -- Awarding a Janitorial Contract for the Kenai Municipal Airport to Todaly Unlimited for the Period July 1, 1999 Through June 30, 2000. 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 -1- b. Historic District Board C. Kenai Visitors & Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES 1. *June 16, 1999 Board of Adjustment Hearing Minutes. 2. *June 16, 1999 Council Meeting Minutes ITEM F: ITEM G: ITEM H: 1. 2. 3. 0 5. 6. 7. ITEM I: 1. 2. 3. 4. CORRESPONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 Approval -- Lease of Ticket Counter Space and Airline Office/Kenai Municipal Airport Terminal -- Yute Air. Approval -- Change Order No. 1 /Automated Flight Service Station/Blazy Construction - $8,402 Discussion -- Potential Training for 16 U.S. Coast Guard Ship Crews -- Possible Resolution and Letter of Support. Discussion -- Daubenspeck Property Use Possibilities Discussion -- Painting of Concrete Pillars/South Spruce Street Parking Lot. Discussion -- Alaska Travel Industry Association Membership Discussion -- Proposed Management/Operation Agreement for the Kenai Multi -Purpose Facility. ADMINISTRATION REPORTS Mayor City Manager Attorney City Clerk WQ 5. Finance Director 6. Public Works 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING JULY ?, 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 7:02 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: Frazer, Williams, Bookey, Swarner, Moore, Measles and Bannock. A-3. AGENDA APPROVAL Mayor Williams noted there were no changes to the agenda. MOTION: Councilman Measles MOVED for approval of the agenda as presented and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA Mayor Williams noted there were no changes to the consent agenda. MOTION: Councilman Measles MOVED for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS -- None. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1832-99 -- Increasing Estimated Revenues and Appropriations by $55,000 for Preliminary Design Work on the Kenai Coastal Trail. MOTION: KENAI CITY COUNCIL MEETING MINUTES JULY 71 1999 PAGE 2 Councilman Bookey MOVED for adoption of Ordinance No. 1832-99 and Councilman Measles SECONDED the motion. Will Jahrig-- Jahrig noted he was Harbor Commission Chair and a member of the Kenai Visitors &Convention Bureau Board of Directors. Jahrig reported those citizens of the area to whom he spoke were all in favor of the project. He added, he was very interested in the project and believed the project would be good for the city and would emphasize what the city has to offer. Councilman Bookey stated he strongly endorsed the project and believed it was long overdue. He added, he believed the project would put Kenai in a position it has not been in before. Bookey added, he wanted council to understand the $55,000 being appropriated by the ordinance would only be a part of the future financial obligation to the city to bring this project to fruition. He noted, other costs would be involved in sending a team of members of the council to Washington, DC to present and promote the project in seeking funding. Bookey stated, he believed it was the responsibility of the council to explain and promote the project and was not in favor of hiring someone to accomplish that work. Councilman Bannock stated he believed the project was a wonderful idea and would probably happen someday, but thought the process to develop the project was wrong. He explained, he would prefer the project be funded through public / private involvement much like the Challenger Project, Cunningham Park improvements, Erik Hansen Park and Multi -purpose Facility. He added, if the last step of the project was to acquire $5 million to fund the project, and if there were no partners at this level of the project, he suggested it may not be a good project. Bannock suggested this would be the wrong way to financially begin the project. VOTE: Frazer Yes Williams Yes Bookey Yes Swarner Yes Moore Yes Measles Yes Bannock No MOTION PASSED. C-2. Ordinance No. 1833-99 -- Extending the Term for Investment Maturities from Two Years to Five Years and Changing Liquidity Requirements. MOTION: Councilman Measles MOVED for adoption of Ordinance No. 1833-99 and Councilman Moore SECONDED the motion. There were no public comments. Acting City Manager Semmens was asked what he foresaw as improvements for the city through passing this ordinance. Semmens KENAI CITY COUNCIL MEETING MINUTES JULY 71 1999 PAGE 3 explained, with the passage of the ordinance, he believed over the next year, as investments matured, he would invest up to $10 million of the $33 million in the city's portfolio in securities with maturities longer than two years. He noted, securities currently allowed by code for investments would yield 6.03% with a two- year maturity and similar investments with a five-year maturity would yield 6.72%. If $10 million was invested, it could earn an increased yield of $50,000 to $80,000 (if it was deemed appropriate and prudent to make the investment at the time) . Semmens noted, it was unknown if it would be appropriate and prudent when it was time to make the investment, but the change in the code would allow flexibility for making the choice. Bookey asked if the $10 million could be used for anything but investment. Semmens answered, all the city funds were co -mingled, however monies in the city's trust fund (approximately $12 million) could not be spent at all. That portion of the portfolio would be available to invest for more than two years (these funds would not be available for cash flow). Williams noted, it had not been too many years prior at which time the city had only $800,000 in the bank and the mill rate was 21. He added, it was a compliment to past administrations and councils who set the city on its current investment program. VOTE: Frazer Yes Williams Yes Bookey Yes Swarner Yes Moore Yes Measles Yes Bannock Yes MOTION PASSED UNANIMOUSLY. C-3. Resolution No. 99-42 -- Awarding a Janitorial Contract for the Kenai Municipal Airport to Todaly Unlimited for the Period July 1, 1999 Through June 30, 2000. MOTION: Councilman Measles MOVED for adoption of Resolution No. 99-42 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, ITEM D: COMMISSION / COMMITTEE REPORTS KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 4 D-1. Council on Aging Councilwoman Swarner stated there had been no meeting of the Council on Aging since the last council meeting. It was noted, the Senior Center received first place for their float entered in the Fourth of July Parade and earned approximately $2,500 at their pie and hot dog sale. D-2. Airport Commission Councilman Measles reported the Commission would meet at 7:00 p.m. on July 8, 1999 in the council chambers. D-3. Harbor Commission Councilman Bookey reported the Commission would meet at 7:00 p.m. on July 12 in the council chambers. D-4. Library Commission Councilman Moore reported there would be no July meeting (cancelled by council) and the next meeting was scheduled for August 3. D-5. Parks & Recreation Commission Councilman Frazer reported the next meeting was scheduled for July 8, 1999. D-6. Planning & Zoning Commission Councilman Bannock reported the minutes of the last Commission meeting were included in the packet. He noted discussion regarding a conditional use permit application on North Forest Drive and suggested council review what had taken place. He added, it was his understanding a request for reconsideration would be made at the next Planning & Zoning Commission meeting. D-7. Miscellaneous Commissions and Committees D-7-a. Beautification Committee Swarner reported the next meeting was scheduled for Tuesday, July 13. D-7-b. Historic District Board Moore reported the next meeting was scheduled for July 19, 1999. D-7-c. Kenai Visitors & Convention Bureau Board Bookey reported a meeting had been held last week. He noted the minutes of the Board's February and April meetings were included in the packet. KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 5 Kathy Tarr, KVCC Executive Director -- Tarr reported the KVCC was awarded a $6,000 grant from the State Division of Museums which would be used to purchase and install track lighting in the facility. She noted, this track lighting would be beneficial for many activities at the facility, but especially for a wildlife artists show the KVCC would be hosting during the summer of 2000 (May, June and July). Tarr also reported the facility had been busy with activities (Project Impact signing, Permanent Fund, welcoming participants of the Kenai Classic, summer informational programs, etc.) She noted, summer visitation started off slow, but the June and July numbers were similar to those for the same time last year. Tarr also reminded council and the audience of the Challenger Project groundbreaking scheduled for July 8 at 3:30 p.m. D-7-e. Alaska Municipal League Report -- No report. ITEM E: MINUTES E-1. June 16, 1999 Board of Adjustment Hearing Minutes. Approved by consent agenda. E-2. June 16, 1999 Council Meeting Minutes Approved by consent agenda. ITEM F: ITEM G: ITEM H: CORRESPONDENCE -- None. OLD BUSINESS -- None. NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Bookey MOVED to pay the bills and Councilman Measles SECONDED the motion. There were no objections. SO ORDERED, H-2. Purchase Orders Exceeding $2,500 MOTION: KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 6 Councilman Bookey MOVED for approval of the purchase orders exceeding $2,500 and Councilman Moore SECONDED the motion. Swarner referred to the purchase order to J&D Painting for staining the Senior Center and asked if it had been done since it was built. City Engineer La Shot answered, he believed it had been but didn't have specific information with him. Swarner requested information of when it was last stained, who did the work, and why the staining didn't last. Swarner also questioned the painting to be done on the exterior of the Library building and asked if the trim work would be included in the work. La Shot answered, he was not aware and would check and forward that information to Swarner. Moore questioned the purchase order for overages for dust control. Public Works Manager Kornelis explained the truck arrived with a load of product (which was not expected) and it was used when training the drivers. The purchase order previously approved was to cover product purchased from Doyles. VOTE: There were no objections. SO ORDERED. H-3. Approval -- Lease of Ticket Counter Space and Airline Office/Kenai Municipal Airport Terminal -- Yute Air. Acting Airport Manager Holland referred to the letter of request from Yute Air which was included in the packet. He noted, a representative from Yute Air contacted him on Friday and there was no time to prepare the draft lease to include in the packet. He noted, the lease would be standard and that Yute Air were current in payments when they curtailed their last operation in the City. Holland also explained there were two counter space areas available in the terminal. MOTION: Councilman Measles MOVED to direct administration to proceed with the lease agreement for the ticket counter space for Yute Air. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-4. Approval -- Change Order No. 1 /Automated Flight Service Station/Blazy Construction - $8,402 Semmens noted, at the June 16 council meeting, City Manager Ross explained this change order would be coming to council at this meeting. Semmens added, the contractor found electrical conduits in the ceiling which were not on the drawings. It was a situation where the work had to be done in order for the contractor to proceed with the work. KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 7 MOTION: Councilman Measles MOVED for approval of Change Order No. 1 at the Automated Flight Service Station to Blazy Construction in the amount of $8,402. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-5. Discussion -- Potential Training for 16 U.S. Coast Guard Ship Crews -- Possible Resolution and Letter of Support. Mayor Williams suggested council hold a work session to redevelop its five-year plan and strategies to be held prior to the AML Conference in November. He noted, there had already been changes in the area and many changes were on the horizon. He urged council to consider a work session. Williams reported there was a plan being formulated to train 16 U.S. Coast Guard ship crews at the Fire Training Center in Kenai. He requested council send a letter of support and a resolution asking the city to be joined as a partner in the training when the plan is formulated. Williams requested permission from council to also speak to the Kenai Chamber of Commerce, Economic Development District and Borough Assembly in this regard and to request letters and resolutions in support of the plan. He noted, he had already discussed the potential for marine fire fighting training in Kenai with Senator Stevens and he indicated his support. Williams reported he met with the President of United Industries, the parent corporation of Engineering Services, Inc. and interest was expressed in the training opportunity. There were no comments or objections from council. H-6. Discussion -- Daubenspeck Property Use Possibilities Williams explained, there had been discussions over time in regard to the Daubenspeck properties and future uses for the properties. He noted, in the past the city requested a letter from Mr. Daubenspeck asking if there were any limitations to the uses of the properties they donated to the city (which was handed out to council at the beginning of the meeting) . Williams noted, Daubenspeck answered and- a copy of his August 28, 1995 letter was distributed to council. Williams noted the letter stated, Ito .. you may consider this letter to be a notice to the City of Kenai that I place no restrictions of their use of the property involved in my gift. You are free to make whatever use is best for the City of Kenai." Williams noted, there had been some discussion of using the property for the development of a hotel/ convention center, etc. and thought the timing maybe was ripe for something of that nature. He noted, he had discussions with two groups who expressed interest in such a development. Williams requested council's permission to draft a generic letter of interest to groups who may be interested in developing the Daubenspeck property. He added, the letter would not be for a specific project but would state the city had available sufficient lands and was interested in discussing the possibilities of construction of a facility. KENAI CITY COUNCIL MEETING MINUTES JULY ?, 1999 PAGE 8 He noted, the letter would not obligate the city in any way. He hoped to follow-up the letter with a package of information about the city, including the developments made to the city in the last ten years, etc. and use it as a sales tool for the city. Williams suggested the Daubenspeck property and unsubdivided city properties in that area and available for development involved approximately 21 1/2acres (the most valuable piece city property in Kenai). There were no comments or objections from council. H-7. Discussion -- Painting of Concrete Pillars/South Spruce Street, Parking Lot. Williams explained, last year he had a request from a group of local artists interested in painting fish scenes on the pillars used at the parking lot. They were interested in doing the painting if the city would purchase the paint. They would be using volunteer labor to do the painting. He noted, the Public Works Department indicated they could hydro -wash the pillars in order for them to be painted. He noted, if council had no objections, he would contact the painters to have the work done. Bookey stated he had no objection if the pillars were to be painted with a theme, but didn't want the pillars to be painted all one color, etc. Moore stated he had no objection, but thought the time for painting would have to be dictated by the amount of people involved in the dip net fishery. Williams stated, he understood the painting would be more of a border much like what had been painted at the airport terminal. There were no objections from council. Bannock referred to the map of the Daubenspeck property included in the packet and noted he saw no reference to Tract D of that specific property. Discussion followed in regard to identification of the properties. Williams asked Attorney Graves to research the correspondence from Daubenspeck to determine what was intended by adding "Tract D" to the letter. Graves stated he would include that information in the next council packet. Williams noted the major projects ongoing in the city presently were the Challenger Center, Coastal Zone project, and interest in extending the development of Cunningham Park. He referred to Councilman Bookey's earlier remark regarding a team lobbying effort for the Coastal Zone project and wholeheartedly agreed. Williams suggested some funds could be made available through the Denali Fund (created by Senator Stevens to be used for health and safety issues in the villages) to develop a long-term endowment for a training program through the Fire Training Facility. The planned program would include three levels; funding to train 25 students the first year, 50. students the second year and a $ 1 million endowment for the third year. Williams noted, when he discussed the idea with the director of the Denali Fund, the plan was brought together when he explained one of the training units was using equipment which could convert 30 gallons of water into 600 gallons of foam which could be pulled behind a four -wheeler. KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 9 Williams also reported he took James Lee Witt, Director of the Federal Emergency Management Agency on a tour through the ARFF facility. Witt stated there may be some federal funding available to increase the amount of communications gear, etc. at the facility and was very interested in continuing contacts on that issue. Williams suggested a team effort would be needed to make all the necessary contacts in Washington, DC in regard to funding for the Coastal Zone Trail funds. He noted, federal and state agencies would have to be contacted but he wasn't sure who would be included in the team making the contacts. Williams added, he believed there were a lot of federal dollars available and who would be awarded the money, would be those who aggressively sought the money. He noted, he believed the city was in a good position to acquire funding. Williams requested council to consider the items he discussed and give thought to how to approach lobbying and future projects. H-8. Discussion -- Alaska Travel Industry Association Membership Williams reported the Alaska Visitors Association was being restructured and a new trade organization created; Alaska Travel Industry Association. He invited Kathy Tarr to discuss the matter future. Kathy Tarr -- Tarr noted the industry came forward with a new plan to use private sector funds to match core funding at the State level. She added, legislation was passed during the past session to restructure tourism marketing. The statewide trade industry association, Alaska Visitors Association, would be dismantled and the new organization was being formed at the grassroots level. Tarr continued, in the first year they were asking people to join at a $25.00 level and then the following years the cost would be increased. She noted, it was important to join the new organization now as they would be electing a new statewide board of directors. Tarr added, on July 1, 2000 the State of Alaska would let out a contract to a private organization to handle most of the tourism marketing (Alaska Travel Industry Association) . She noted, the Division of Tourism would remain in place and the State would continue to fund some tourism activities (from $4 to 5 minion). Over the next three or four years, the industry would then put more money in the pool to match the state's funding in order to return to a level of $10 million in tourism marketing funding in the future. Tarr reported the KVCC had already joined, as well as several other members in the area. She added, the more Kenai businesses who join would increase the chances for a local person to be elected to the new board and it would show the Peninsula had a strong tourism component as part of its economy. Swarner asked what Tarr expected the dues to be next year. Tarr answered, she believed they would begin at about $300 a year, but would be determined on how KENAI CITY COUNCIL MEETING MINUTES JULY 7, 1999 PAGE 10 many businesses join. She added, the state would be hesitant to go forward with the plan if there were not enough memberships to the new organization. Tarr added, throughout the state other funding proposals were being discussed, i.e. seasonal sales taxes, bed tax increases, etc. At this time, Tarr stated, the industry was opposed to those proposals because the taxes invade the local municipalities' positions in trying to get funds on the local level as well as because those funds would not be used for tourism marketing, but go into the State's General Fund. Bookey stated, because Kenai Visitors Convention Bureau, Inc. was an arm of the city's and was a member, he didn't think the council or city needed to be a member. He added, if in the future the council wanted to help the KVCC, they could increase their funding to cover their dues. Tarr also noted, part of the restructuring would include the convention and visitor bureaus in different regions throughout the state and funding to the organization would have an impact on the KVCC, as well as other entities on the Peninsula. Williams stated he believed it would be worth the city joining the Alaska Travel Industry Association to improve the numbers to the overall organization. He added, .approximately one-half the city's budget was generated from sales tax and he thought more than half of the city's sales tax was generated during the summer months when tourism is busiest. Williams suggested the city join the organization to show support and the city's active position. Measles stated he agreed with Williams and added, he believed the city should join the organization. MOTION: Councilman Measles MOVED to direct administration to join the Alaska Travel Industry Association. Councilman Frazer SECONDED the motion. VOTE: Frazer Yes Williams Yes Bookey No Swarner Yes Moore Yes Measles Yes Bannock Yes MOTION PASSED. H-9. Discussion -- Proposed Management/Operation Agreement for the Kenai Multi -Purpose Facility. Semmens reported administration was continuing to work on the operating agreement for the multipurpose facility and the draft agreement was included in the KENAI CITY COUNCIL MEETING MINUTES JULY 71 1999 PAGE 11 packet for council's review. He added, he believed by the July 21 meeting, the agreement should be in final form for council's consideration. Semmens noted, there were some issues with the project being investigated; the timeline and additional costs involved with adding the Zamboni room, utilities and contingency. He explained, administration contacted the general contractor who submitted the low bid and asked him if the project could be completed by November 1. The contractor was unable to answer the question as the completion date would depend on whether the steel building could be delivered in time for erection and completion by November 1. Semmens also explained, the original construction bids came in higher than the estimate. He noted, an additional $150,000 needed to be added to the estimate to include the Zamboni room (which was included in the operating agreement), $30,000 for utilities, and $30,000 for contingency. Semmens added, the bottom line was that after the contribution of $275,000 from the LLC, the council would need to come up with $187,000 from the General Fund fund balance. He noted, they were in discussions with the general contractor on some issues where costs may be able to be reduced by approximately $30,000. Semmens requested comments from council regarding the use of $187,000 from the General Fund fund balance. He added, if the project could be completed close to or at the original time frame and if the operating agreement was completed, he planned to have an ordinance to appropriate the additional $462,000 needed for the project for council's consideration at the July 21 council meeting. Semmens added, if the ordinance was brought forward, both readings of the ordinance would take place at that meeting. He noted, if that wasn't done, he doubted the project could be completed by November 1. Semmens continued, he had discussed a line of credit with the LLC or a commitment from a bank prior to signing a contract with the general contractor. Swarner asked if the contractor indicated when he could give an answer on the completion date. Semmens answered, the contractor had been out of town and was expected back in the morning; he would speak with him then. He added, the supplier of the building had not made any positive statements as to the ability to deliver the steel building in the near future. Semmens noted, he believed the LLC would be very interested in knowing when the building could be delivered as it would be important to the maintenance agreement as far as collecting revenues from the rink. Swarner stated she would be very disappointed if the building was not erected this winter and was also aware there would be many disappointed children and parents in the community. She added, she would like to proceed as Semmens suggested. Semmens indicated $737,000 had been appropriated for the project, of which $700,000 was identified for construction and $37,000 for administration and - inspection. Of the $1,162,000, $187,000 was needed to complete the construction. KENAI CITY COUNCIL MEETING MINUTES JULY 71 1999 PAGE 12 Frazer stated he was 100% in support of the project and agreed with Swarner the project should proceed in order to be in use this winter. He added, he reviewed the draft agreement and asked if the revenues from the skating portion of the year would go to the LLC. Semmens answered yes. He continued, the operating costs, labor, etc. would be footed by the city. Semmens answered yes, except for the maintenance of the ice surface. Frazer asked if the year's maintenance costs, including labor, etc., would be an additional cost. He noted, if the city were collecting the ice maintenance fees, those funds would come to the city. He asked Semmens if there was an estimate of what the operating costs of the facility might be. Semmens answered, he knew of no estimate but noted the city would supply snowplowing, water and electricity. He added, it was not anticipated those costs would be high. Frazer noted there was no mention of the boards for the hockey rink identified in the draft contract and knew they were not included in the bid. Semmens noted that was correct and added his understanding was the LLC would be handling that concern. Frazer stated he still believed council should do what was needed to push the project forward and completed by the fall. Moore asked what the contractor's concern was in regard to his inability to produce as he understood the bid was good for 60 days. Semmens answered, the bid would be good for 60 days and, in fact, the contractor stated his bid would be good for more than 60 days. However, the ability to procure the materials for the project would move forward as the construction season progressed. He added, he was told there could be difficulties in getting the materials from the suppliers and because the bid was not awarded (because of the lack of funds), the materials could not be ordered. Moore also stated there were boards available. Swarner noted the city would not be covering the LLC volunteers under its Workers' Compensation policy. Semmens noted Swarner was correct and the LLC would have to procure its own Workers' Compensation Insurance or in some other way take care of the Workers' Compensation question as the city's policy would not cover those volunteers taking care of the ice surface. Bookey stated he supported the project up to $ 1 million but after hearing an amount of $187,000 would still need to be funded, he was hesitant. He noted, if the building wasn't delivered, it could be winter construction which would raise the costs again. Bookey stated he wouldn't support proceeding with the project until hard core numbers were determined. Rick Baldwin -- Thanked administration for their devout efforts in working with the LLC in putting the package together. He noted there had been some hard issues to address and they were moving forward together very well. Baldwin continued, he had received nothing but positive support from the community for their group and had others ask if they could join the group. He noted, as far as the LLC group, the commitment was there and stronger. Baldwin added, they received positive signals from the local bank interested in providing the funding. Referring to the question about the boards, Baldwin noted there was no KENAI CITY COUNCIL MEETING MINUTES JULY 72 1999 PAGE 13 money in the city's budget for the boards and the LLC may have to cover those costs. He added, they were hoping they may be able to acquire the boards from other public sources. Baldwin added, he felt they were close to a firm agreement and after the outstanding issues raised during the meeting were resolved, he felt they had a deal. Baldwin added, in talking with his banker, the banker stated, with the city's approval and city's interest in the project and with the individual signatures of the LLC, he would be able to provide the package to the Anchorage office from which he had already received favorable response. MOTION: Councilman Moore MOVED for administration to continue to work with the LLC toward a management/ operation agreement for the Kenai Multipurpose Facility. Councilman Frazer SECONDED the motion. Williams stated he would support the motion but would still discuss a possible partnership in the project with the Anchorage developer. VOTE: Frazer Yes Swarner Yes Bannock Yes MOTION PASSED. BREAK TAKEN: 8:20 P.M. BACK TO ORDER: 8:35 P.M. ITEM I: I-1. Mayor Williams Yes Moore Yes ADMINISTRATION REPORTS Bookey No Measles Yes Williams noted, during the earlier discussion regarding upcoming projects, he neglected to mention the Health Nurse Facility which was planned for next year. I-2. City Manager Acting City Manager Semmens noted the dip net season would begin on July 10 and through the efforts of the Kenai Police, Public Works and Parks &Recreation Departments, he felt the city was prepared to handle the participants. I-& Attorney -- No report. I-4. City Clerk -- No report. KENAI CITY COUNCIL MEETING MINUTES JULY 71 1999 PAGE 14 I-5, Finance Director -- No report. I-6. Public Works -- No report. I-?. Airport Manager -- Holland reported the city received notification there would be an electrical outage at the Flight Service Station while the new heating units were being installed (July 8, 11:30 p.m.-5:30 a.m.). He added, the outage would not affect the operations of the airport. Holland was asked if Yute Air would be in business and flying out of Kenai on Friday. Holland answered. it would depend on whether the paperwork was completed. Williams noted Joanna Cole was attending the meeting for Parks & Recreation Director Frates. Cole noted she had nothing to report from the Department. ITEM J: DISCUSSION J-1. Citizens-- None J-2. Council Bookey -- Stated concerns there was no watering being done on frontage grass from the Visitors Center to Arbys. Bookey noted, he discussed the matter last year with City Manager Ross and Ross assured him the lack of watering would not happen this year. He requested watering be done through the middle of town, as well as Main Street extended. He noted, it would need a coordinated effort of departments to get the watering done. Semmens stated, the watering would be done. Swarner asked when Rogers Road would be open again to traffic. La Shot answered the de -watering operation was mostly complete. When it was suggested the water being pumped out of the area be used for watering the grass, La Shot explained the permit would not allow for that to be done. Swarner -- Stated the airport terminal carpet was very badly stained and asked what was to be done. Holland explained a new janitorial contract had been approved earlier in the evening and this janitor would be using a new cleaning program on the carpet. It was hoped this program could salvage the carpet, but if not, the carpet would be replaced in the fall. Williams suggested that before selecting new carpet, those involved in choosing the carpet should visit other airports for examples of what carpet they are using and whether it has worn well, etc. � Moore -- Requested the grass be watered and the dandelions be eliminated. Measles -- KENAI CITY COUNCIL MEETING MINUTES JULY ?, 1999 PAGE 15 a. Reported he returned to Kenai the other day and found a vehicle parked in the Airport Manager's parking space with a sign in the window which was offensive to the City of Kenai and its citizens. He requested the person be contacted and told not to use that parking space and be requested to remove the sign. b. Measles explained, due to his job responsibilities, he was tendering his resignation from his position as city council member effective the end of July. Mayor Williams thanked Measles on behalf of the council and administration adding, he would be missed. Williams continued, Measles had been a part of the community for many, many, many years and that everything that happened in the city for the last 20 years, Measles had a part in it. Williams added, personally, he would miss Measles' good judgement and management style. He wished Measles good luck in the future and added, he knew Measles would always consider Kenai home. Bannock -- Offered Measles best wishes. Bannock also reported he had a discussion with a visitor to the area who suggested that since the fire truck had to be out on the tarmac for arrival of planes, a sign be placed on the side of the truck saying "Welcome to Kenai" which would take the attention off the fire truck. It was suggested administration check with FAA and if they had no objections, then proceed. Council had no objections. Frazer -- Offered best wishes to Vice Mayor Measles. Frazer also reported the paving job at Crow Court was completed and looked very nice. Williams -- a. Requested Parks & Recreation to raise the water level on the water fountain at the Park Strip. b. Noted that during the last remodel of the airport terminal, a sign at the side door entrance stating "Restricted Area" had not been removed. He requested the sign be removed. Williams also noted the stairway at the side entrance was deteriorated and the handrail was loose. He requested those items be corrected. C. Williams requested council allow him to pass the gavel to Vice Mayor Measles during the meeting of July 21, 1999 so that Measles could chair the meeting. Council had no objections. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 8:53 p.m. KENAI CITY COUNCIL MEETING MINUTES JULY 7) 1999 PAGE 16 Minutes transcribed and prepared by: Carol L. Freas, dity Clerk ApPiROVE-D BY COUNCIL DATE CA4 CLEW