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HomeMy WebLinkAbout1999-09-15 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 15, 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. 1841-99 -Increasing Estimated Revenues and Appropriations by $100,000 in the Forest/Redoubt Water and Sewer Crossings Capital Project Fund. a. Substitute Ordinance No. 1841-99 -Increasing Estimated Revenues and Appropriations by $140,000 in the Forest/Redoubt Water and Sewer Crossings Capital Project Fund. 2. Ordinance No. 1842-99 - Increasing Estimated Revenues and Appropriations by $6,300 in the General Fund for a Public Library Assistance Grant. 3. Resolution No. 99-54 - Listing the City's Alaska Department of Community and Economic Development FY 2001 Capital Project Matching Grant Program Projects in Priority for a Request in State Funding. 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. *Regular Meeting of September 1, 1999. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Discussion - Property Use Plans/Tract C, Daubenspeck Property; FAA Tract Property; FAA Football Field. 4. Discussion - Ice Rental Fee/Multi-Purpose Ice Facility ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION -Annual Evaluation of City Attorney and City Clerk. If time allows, the evaluation of the City Manager will be held as well. ITEM K: ADJOURNMENT -2- KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 15, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /www.ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 p.m. in the Council Chambers in the Kenai City Hal 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: Bannock, Frazer, Williams, Bookey, Swarner and Moore. A-3, AGENDA APPROVAL Mayor Williams requested the following change to the agenda: ADD AS: B-1 -- Bill Coghill, Mikunda, Cottrell 8v Co./Financial Statement Presentation MOTION: Councilwoman Swarner MOVED for approval of the agenda as amended and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-4, CONSENT AGENDA Mayor Williams noted he had no changes to the Consent Agenda. MOTION: Councilwoman Swarner 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 B-1. Bill Coghill/Mikunda, Cottrell & Co. -- Coghill thanked the council for adding him to the agenda and distributed the City's audited financial statement and KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 2 management letters to the council. Coghill noted distinquishable differences between this year and other years was that their audit included a lot of detailed financial information. He added, the audit covered the financial section, general purpose financial statements and notes to financial statements. In these areas, the auditors expressed opinions. The remaining information in the statement was supplemental on which they performed audit procedures, but didn't express their opinions. Coghill noted, this was important because one of the items on which they audit is a footnote discussing the city's Y2K readiness. He added, the footnote stated the city inventoried its computers systems and determined which systems could be affected by the Y2K issue, conducted an evaluation of those systems, did remediation where necessary, and tested those areas. The footnote also stated the city could not guarantee that something wouldn't go wrong on January 1, 2000 because of the nature of the item. Coghill stated, the Y2K issue was required by the Governmental Accounting Standards Board, however it was an area where auditors don't investigate whether all the systems were checked and their results, etc. Because they couldn't express an opinion and didn't do audit work on the Y2K issue, their opinion was qualified with respect to the information in the footnote. Their opinion stated they conducted an audit and found it to fairly represent the financial condition of Kenai, but was qualified with respect to the information in the footnote (a scope restriction) . Coghill stated this was the first time the city had a qualified opinion since his firm started doing the city's audit. He added, it was his understanding the qualified opinion would not affect any financial markets or wouldn't affect the certificate of achievement from the Governmental Accounting Standards Board. Coghill noted, this was unique to the situation. Coghill continued, stating the city's financial condition was on a steady and healthy course. He noted the fund balance decreased to $9 million from $10 million because of transfers to capital projects. He noted the introductory portion included informative summaries and encouraged council to review the information because it was the most concise overview of the statement. Coghill noted the Boating Facility Enterprise Fund was the only fund with losses and had losses for the past three years. This was also mentioned in their management letter, Coghill added. He noted, an enterprise fund is designed to be supported by the fees of the users. In regard to the Boating Facility, Coghill noted, it lost approximately $100,000 in June 30, 1997, approximately $75,000 last year and approximately $102,000 this year. He added, the Boating Facility currently owed the General Fund some money and the prospect of it paying the General Fund was remote. It would probably be an operating transfer from the General Fund to cure that and this was why the question was raised of whether it should continue as an enterprise fund. He suggested other choices for the fund would be a special revenue fund or a department KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 4 ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1841-99 - Increasing Estimated Revenues and Appropriations by $100,000 in the Forest/Redoubt Water and Sewer Crossings Capital Proj ect Fund. MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1841-99 and Councilman Bannock SECONDED the motion. There were no public or council comments. C-1-a. Substitute Ordinance No. 1841-99 - Increasing Estimated Revenues and Appropriations by $140,000 in the Forest/Redoubt Water and Sewer Crossings Capital Project Fund. MOTION TO AMEND: Councilwoman Swarner MOVED to substitute Ordinance No. 1841-99, increasing the appropriation to $140,000. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. There were no public comments. Councilwoman Swarner noted Item 608(3) on Page 2 of the Engineers' Estimate (included with the substitute ordinance) and asked why asphalt sidewalks were listed when it had been stated they would be concrete sidewalks. Public Works Manager Kornelis answered, the project was designed with concrete sidewalks along Forest Drive and at Redoubt the sidewalk would change to asphalt. He explained, the Engineers' Estimate listed items to coincide with DOT'S project manual which had additional description on each item and helps the contractors know what is involved with each item of the project. Councilman Bookey asked if all the major water/ sewer crossings were included for the $140,000 (and 15% contingency) . Kornelis answered yes, and noted the 15% was actually the construction engineering and statement of charges. He added, contingency would not be very much and the reason why the amount went from $100,000 to $140,000 was because of the State's charge for the pipe. Kornelis stated, he believed the suggested amount was high. Mayor Williams stated he would not support the project. He explained, constituents came to him and stated they wanted the upgrade of the road and its amenities which increased the cost of the work from $2.5 million to $6.3 million. The outcome of the special election regarding the Permanent Fund Dividend told him 83% of the State's KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 5 voters didn't want the State to spend money on projects such as this. Williams continued, he was puzzled by the "want it/don't want it" attitude of the voters. He added, in order to balance the picture and suit everyone, he would not support the ordinance and urged the council to issue a resolution to the State to tell them thank you, but the city did not want the money. Moore asked if the money was appropriated some time ago. Williams stated the money had not been appropriated by the city and the resolution could request the funds be returned. VOTE: Bannock: Yes Frazer: Yes Williams: No Booke Yes Swarner: Yes Moore: Yes MOTION PASSED. C-2, Ordinance No. 1842-99 - Increasing Estimated Revenues and Appropriations by $6,300 in the General Fund for a Public Library Assistance Grant. MOTION: Councilman Moore MOVED for approval of Ordinance No. 1842-99 and Councilwoman Swarner SECONDED the motion. There were no public comments. Williams stated he would not support the ordinance since it was a State library grant and could be cut from the State's budget. Swarner noted, 83% of Williams' constituents don't use the library, but those who do use the library, use it often and spend money in the city. Bookey asked if Williams was setting a precedent and suggested Williams should not lobby for the city in Juneau. VOTE: Bannock: Yes Frazer: Yes Williams: No Booke Yes Swarner: Yes Moore: Yes MOTION PASSED, C-3. Resolution No. 99-54 - Listing the City's Alaska Department of Community and Economic Development FY 2001 Capital Project Matching Grant Program Projects in Priority for a Request in State Funding. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 6 MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 99-54 and Councilman Bookey SECONDED the motion. Debbie Sonberg, 410 Cinderella Street, Kenai. Sonberg noted Williams had made the comment at the last council meeting that he would be voting yes (on the Permanent Fund Dividend special election question) because yes was defined and no was not defined. She added, Williams was now clearly defining the "no." Sonberg added, she voted no, but was making public that she did not hold the views that Williams said the 83% held. Sonberg continued, she thought the question was poorly worded and advertised on both sides, and didn't think Williams spoke for the 83%. Williams stated he spoke for himself and not the council. He added, during a debate with Senator Ward on the local radio he explained it was his right to think in that term and those on the radio who say they supported the First Amendment were the first ones to say he shouldn't be thinking like that, etc. Williams added, as a citizen and elected official, he should be doing that. VOTE: Bannock: Yes Frazer: Yes Williams: No Booke Yes I Swarner: Yes Moore: Yes MOTION PASSED, ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging -- Councilwoman Swarner noted there was no meeting since her last report. D-2. Airport Commission -- Councilman Bannock reported the Commission met on September 9, at which there was a good discussion about proposed changes to the Airport Regulations. He noted, the Commission would be reviewing the landing fee structure, subleasing of airport properties and language for off -airport rental parking. Bannock added, he was looking forward to seeing the three topics come back to council and that he urged the Commission to be sure to forward their recommendations with the items. Bannock stated he expected the information to be forwarded next month. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 7 Bannock noted the Commission also requested council change their November meeting date from November 11 (Veterans' Day/a city holiday) to November 18. Council had no objections to the date change. D-3. Harbor Commission -- Councilman Bookey reported a meeting was held on September 13, however he was unable to attend. Kornelis reported, the Commission discussed a suggestion by Snug Harbor Seafoods that the city may want to purchase the fencing and lighting they placed on the property they formerly leased from the city for a boat storage. The price suggested by Snug Harbor was $10,000. Kornelis reported the Commission asked him to contact Snug Harbor and ask if they would donate the fencing and lighting to the city. Williams asked if the equipment purchase would benefit the city more or Snug Harbor. Kornelis answered, the fencing was installed by Snug Harbor. If the equipment is removed, the property would be a vacant parking lot. If someone else would want to rent the area for a boat storage area, new lights and fencing would have to be installed. D-4. Library Commission -- Swarner reported she attended the Library Commission meeting for Councilman Moore. She noted, the unapproved minutes of the meeting were included in the packet. Swarner reminded council and the audience of the "Meet the Librarian" reception scheduled for September 16, 1999 from 4:00 to 7:00 p.m. at the Library. D-5. Parks & Recreation Commission -- Swarner reported she attended the Commission meeting for Councilman Frazer and the unapproved minutes of the meeting were included in the packet. Swarner suggested all the council members consider chaperoning at the Recreation Center dances. It was noted the next dance was scheduled for September 24. D-6. Planning & Zoning Commission -- Councilman Bannock reported the minutes of the September 8 Commission meeting were included in the packet. He pointed out it was one of the first times a Home Occupation Permit was approved under Consent Agenda. He noted, the applicant moved their operation to a new residence and a new permit was required. Bannock also reported a rear yard setback was approved. Bannock also reported Administrative Assistant Kebschull demonstrated the new GIS System for reviewing data for properties within the City of Kenai at the end of the meeting. He noted the program was very impressive and encouraged the council to contact Kebschull for a demonstration. � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 8 D-7, Miscellaneous Commissions and Committees D-7-a. Beautification Committee -- Swarner reported the Committee met on September 14 for a short meeting and after held a reception for volunteers at the Leif Hansen Memorial Park. D-7-b. Historic District Board -- Councilman Moore reported the next meeting was scheduled for October 19. D-7-c. Kenai Visitors & Convention Bureau Board-- Councilman Bookey reported the next meeting was scheduled for September 16 at 5:30 p.m. at the Visitors Center. D-7-d, Alaska Municipal League Report -- Clerk Freas noted she was making plans for the Welcoming Reception of the AML Conference and asked if council wanted to include a no -host bar for the reception or offer only sodas, tea, coffee, and punch. Council agreed to offer only tea, coffee, punch, and sodas. ITEM R! MI1 UTIM E-1, Regular Meeting of September 1, 1999. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. BREAK TAKEN: 8:05 P.M. BACK TO ORDER: 8:23 P.M. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 9 MOTION: Councilwoman Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-3. Discussion - Property Use Plans/Tract C, Daubenspeck Property; FAA Tract Property; FAA Football Field. Ross referred to the report included in the packet. He noted Public Works Manager La Shot included in the report a history of the property and proposal for conceptual uses of the property. The report also included the present zoning and proposed zoning for the properties. Ross added, a lot of the property has sloughed off. He noted, if conservation zoning would be considered for a portion of the properties, the Russian Orthodox Church would be notified and asked for input of whether they would want their portion of the property included in a Conservation Zone. Ross noted, the main issue administration wanted council to review (other than the zoning issues, which would come to council after recommendation by the Planning 8� Zoning Commission) was the Daubenspeck and other properties which may require exploration. He added, if the city would be opening the FAA Tract for potential use (after deeding it to the city), administration felt a consultant should be hired and some exploration done to determine what potential exposures and problems there may be on the Daubenspeck and adjoining properties. Ross referred to a diagram of the un-subdivided remainder of the property and noted this was the property from which BOR restrictions were needing to be removed. He added, the last page of the report was an aerial photograph of the properties in 1960 and indicated the location of the Daubenspeck property (above the Quonset huts) . He also indicated where overburden was removed and where the areas of research were indicated. Bookey asked if there had been conversation with FAA regarding participation in doing research on the properties. Ross answered, the last conversation was concerning the UST tank and FAA indicated it had been given back to Daubenspeck and he to the � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 10 city. He added, the tank would need to be removed and if contamination is found, the city would target FAA as they were the user. After the environmental assessment is received, the pressure to bring FAA into the project versus holding them responsible for what is found, was unknown. Bookey asked Attorney Graves if there was an access to FAA, how many years of litigation would it include? Graves answered, if FAA was named as a Potentially Responsible Party (PRP) as a former landowner, it could be a long battle. He added, generally what the Corps of Engineers and federal agencies like doing is to participate in -kind instead of giving money. Graves stated, it would be easier to get FAA involved in the cleanup once contamination is found. He added, after finding contamination, he felt the city should go to FAA (maybe with congressional help) and tell them the city needs their help in cleaning the property and ask how they would be willing to participate. He added, he believed this would be the most productive track and the quickest (instead of immediately suing) . Bookey asked if Daubenspeck would be involved in the cleanup since they donated the property to the City of Kenai and which had been under lease to the FAA. Graves answered, that would be a policy decision of council as the city could or could not name him in a lawsuit. However, if the city sued others, those others could name Daubenspeck as a PRP. Bookey stated he believed there was much more at stake than a clean-up issue and added, he would like the city to progress, but wanted council to understand all the ramifications of the project prior to making a final decision. He added, he did not want to make a decision at the present meeting. Williams asked if there were any other known participants in the issue other than the city, FAA and Daubenspecks. Graves answered, those were the prime participants, however there could be a long list of subtenants, people who may have dumped material on the site, fuel suppliers, transportation suppliers, etc. Bookey stated he felt cost was a serious question, but the other side was that litigation could take longer than any of councils' tenure. Williams suggested the matter be held over to the next council meeting in order for everyone to digest the content of the report, but also to speak individually with administration on the matter. Williams stated, he believed it would be acceptable to move ahead with the BOR matter and transfer in order for that portion of the property to get the title cleaned up. He added, it could be the Daubenspeck property may be best served by other uses ancillary to and complementary of the improvements to be built on the other acreage (approximately ten acres) . Bookey asked if Williams was referring to the un-subdivided properties. Williams answered, he understood the city would have to make final decisions as to cleanup and the use of the land with FAA. Ross answered, that was correct but when the 1 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 11 transfer would take place was unknown. He added, he was very uncomfortable recommending the disposal or sale of the FAA tract (after coming into the city's ownership) to council unless there is a reason to believe there is no contamination problem on the Daubenspeck property (water table or otherwise) . Ross stated, it was a "catch 22" for council in their decision making and concurred a decision should not be reached at this meeting. Bookey stated he wanted to hold off on any decisions, even the un-subdivided remainder, until the next council meeting. He added, he wanted to do some additional research on the matter himself in order to have educated dialog, etc. Moore asked Bookey if he wanted to hold off on any environmental assessment on the properties as well. Bookey answered, yes and each council member review the information and discuss the matter further at the October 6 council meeting. Bookey stated he wanted to take a walk on the properties, discuss the matters with both administration and the city attorney as he felt the matter would eventually have to be cleaned up. He added, he believed the properties were a key potentially developable tract in Kenai, but thought progress should go slowly. Bookey stated, he didn't want to open "Pandora's box" until he felt more comfortable with the matter. Moore stated he appreciated Bookey's expertise in the matter, but felt it was important to determine what problems existed. Bookey confirmed he wanted to determine that information as well, but wanted to delay until the next meeting. Frazer stated he felt the city should make an effort to resolve the matter without litigation and he thought an assessment of what was there would be needed in order to discuss cleanup processes with FAA. He added, he felt it was important to keep the matter out of litigation, keep other parties out of the matter (if possible), and get FAA's involvement in the cleanup. Frazer noted, he believed that would be the most expedient and the least expensive to correct any problems that may exist. Ross stated he concurred with Bookey and Frazer and added, depending on what is determined by council in the following two weeks, a different approach may be to see how much congressional leverage could be brought to bear on FAA to get involved from the beginning. He added, that would be a slower approach than the city having the assessment done first. It would bring a lot of attention to the matter and if this approach would not be successful, the city could then do the assessment. It would, however, lay a good solid background to the city's objective, but it would be a slower approach. Ross stated, how to approach the matter would depend on how council felt about the situation. Frazer noted, he felt the matter should be tabled until the next council meeting in order to discuss the matter with administration, etc. He added, he did not feel he had 1 an understanding of the potential problems of the properties at this time. � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 12 Williams noted, the points of question on the un-subdivided remainder were different. He noted, administration had done a great deal of groundwork in the matter. He added, he did not want to send a signal to administration that council wanted to stop the progress on that portion of the property. Bookey stated he didn't object to Ross continuing in that direction, but didn't want to get into exploratory or remediation discussions for at least two weeks. Frazer agreed. Williams noted, council's direction would be for administration to move ahead on the un-subdivided remainder and put the rest of the discussions on hold. Williams suggested council make a joint field trip to the properties in order to get the perspective of the land first hand which would give council a better idea of how the properties could be utilized. He added, if something happened that the city would be interested in joining with another group to develop the un-subdivided property, there would be the possibility of setting aside the Daubenspeck property and continuing the inspections, etc. to another time. Council agreed to meet at the property on Monday, September 20 at 6:00 p.m. H-4. Discussion -Ice Rental Fee/Multi-Purpose Ice Facility City Manager Ross referred to a memorandum included in the packet from Parks & Recreation Director Frates. He noted, administration supported the $65.00 per hour fee rate the Commission recommended. Councilman Frazer stated he reviewed the minutes of the Commission meeting and had no reason to not agree with the Commission's recommendation. Councilwoman Swarner noted there were no restrooms included in the design for the portion of the facility to be built. A long discussion followed and it was noted that presently the plan was to use port -a -potties at the facility, unless the High School would be open for people to use their facilities. It was also noted the preliminary ground work including bringing water/ sewer lines to the facility, but the facility was not being plumbed for this phase of the facility. The Zamboni room was the only area there would be water available. MOTION: Councilman Frazer MOVED to accept the recommendation for the ice rental rate of $65.00 per hour and Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. Ross noted, there were no restrooms planned for this phase of the building and to make a change in the plans at this time would be major. He added, he thought � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 13 council was well aware there were no restrooms in the design for this phase of the building and the plan was to use port -a -potties which would be paid for out of the Parks &Recreation Department budget. Swarner stated she thought that if the facility was to be rented for $65.00 per hour, it would need restrooms for users and spectators. Ross continued, the other phases of the building included plans for restrooms. Bannock noted, the facility's design was the best that could be done for the least amount of money. Moore remembered the conversation with Architect Klauder in which it was said the water/sewer utilities would be placed now for future expansion. Ross explained, the major lines were being put in but the portion of the facility now under construction was not designed for underground and water/ sewer in that location. He noted, he thought council was aware port -a -potties would be used to meet the needs. Swarner apologized for not noting the lack of restrooms earlier in the discussions. Bannock noted, adding restrooms at this time would be a major addition to the project because it would be changing the scope of the first phase of the project. Ross added, a change order would be required to add the restrooms at this time. To better explain, Public Works Manager La Shot drew a diagram of where the utility lines were laid for future expansion. La Shot noted, the next phase would include the addition of permanent restrooms. He added, to place permanent restrooms now would be expensive and suggested an Atco-type trailer if heated non -permanent restrooms were to be included with the facility at this time. Moore asked if the FAA trailer was already removed by FAA, suggesting it could be used for a trailer -type restroom area. Williams asked to have administration check the surplus lists to see if any Atco trailers are available and at what cost. He added, he believed it would be advantageous to the city to have heated restrooms at the facility. There were no council objections to the request. ITEM I: ADMINISTRATION REPORTS I-1. Mayor -- No report. I-2. City Manager a. Water/Sewer Feasibility Study -- Ross reported Public Manager Kornelis was working with the possibility of submitting a grant with EDA and DEC for 100% funding to do a feasibility study to place water and sewer utilities along Bridge � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 14 Access Road. The report would review the work involved, the benefits to present and future operators, etc. He added, EDA and DEC seemed to be interested in funding the study. b. Dip Net Fishery Report -- Ross referred to the report included as an information item in the packet. He complimented Lt. Kohler, -Parks & Recreation Director Frates and Public Works Manager Kornelis for their cooperation in collecting the information and preparing the report. He added, he believed the group did a very good job and gave some sense of the progress of the fishery and future needs. c. Golf Course Lots-- Ross reported there was only one lot remaining to be sold. d. Airport Landing Fees -- Ross noted, the Airport Manager would be writing to air carriers requesting comments on suggested new landing fees at the airport. He added, investigating the present fees, it was found the city's fee structure was way below other airports within the state. Ross added, he anticipated receiving written comments from the carriers by the new year and the information being forwarded to the Commission and council at budget time. Ross noted, the present landing fees were low compared to other areas of the state and the Airport's operating expenses had increased over the years. The responses from the air carriers, etc. would be brought back to the Commission and then to council with their recommendations as well as administration's recommendations. Swarner thanked Ross for the dip net fishery report. She added, she understood problems were continuing on the south beach and requested discussion of this item at the next council meeting. I-3, Attorney -- No report. I-4, City Clerk -- Freas referred to information in the packet regarding the scheduling of Student Government Day and asked whether council wanted to hold a Student Government Day and if so, when. It was noted November 17, 1999 would be the meeting where the new council members would be sworn in as required by the Kenai Charter. Council chose November 17, 1999 for the day. Plans are to include lunch for the students and teachers at the Senior Center. Freas also requested council inform her if they planned to attend the AML Conference and noted application information was included in their packets. It was noted, the election would be certified prior to the AML Conference and though the new members would not yet be sworn in, they would still be able to attend the conference if they wished. � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 15 I-5. Finance Director -- Acting Finance Director Feltman noted the Finance Director was on vacation. I-6. Public Works Manager Kornelis -- a. Public Works Manager Kornelis reported he was applying for the following grants: • DEC 50% Matching Grant/Wellhouse No. 4 -- He explained the grant would be to reimburse the portion of the Wellhouse No. 4 grant previously received which was used for the water/ sewer improvement construction project. • DEC, 50% Matching Grant -- This grant would be for relocating water/ sewer main lines at Mission Street where the lines were nearing the bluff due to sloughing of the ground. • EDA/DEC 50/50 Grant -- Kornelis reported this grant was what Ross had reported on earlier in the meeting. The grant would fund a feasibility study for placing water/ sewer lines along Bridge Access Road. • Phase II Construction -- This would be the Phase II construction of the water/ sewer lines along Bridge Access Road. Kornelis explained, he didn't expect to be awarded any funding, but applying would place the city on the State's list if the feasibility study determined the project was possible. • Alaska Municipal Grant Program -- Kornelis referred to Item C-3, which listed the city's projects requesting state funding for the FY2001 Capital Project Matching Grant Program. b. Wellhouse No. 1 and 2 -- Kornelis reported this project was about 50% complete. He noted, the old Wellhouse No. 1 was removed and the new building erected. He added, since Wellhouse No. 1 was no longer in operation, about 20% of the water was coming from Wellhouse No. 2. Kornelis noted, because Wellhouse No. 2 had some tannins, etc. some complaints had been received regarding the color in the water. He added, this well also had some seasonal problems and had more color at this time of the year. Kornelis noted, Wellhouse No. 3 was doing better, but the city was only pulling about 80% of the water supply from this well. C. Pumphouse -- Kornelis reported a new pumphouse was being erected by the storage tank. He noted, the underground pumphouse was being left in operation. When the piping in the pumphouse is completed, the tank would be switched over to � KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 16 the new pumphouse and the old underground portion of the pumphouse would be demolished. Kornelis added, the completion date was set for December 6, however the contractor believed he would have it completed earlier in November. I-6, Public Works Manager/La Shot a. Airport/Fire Station/Warm Storage Project -- La Shot reported Requests for Proposals for design services on this project were being distributed. If the selection process goes as planned, council would have the opportunity to award a contract at their November 17, 1999 meeting. b. Laundromat Water/Sewer Connection -- La Shot reported he had been asked if the laundromat was hooked to city water/ sewer services and if they are paying the bills. He noted, it was verified the business was hooked to the utilities and bills were being paid. Williams referred to the Project Status Report included in the packet as Information Item No. 2. He noted, the majority of the projects on the list were funded through state and federal dollars. I-7, Airport Manager Airport Manager Cronkhite noted there had been a question at the last council meeting regarding the beacon on the city property adjoining the property where the new health center would be constructed. She reported she contacted FAA and learned in 1998 the equipment at the site had been upgraded or replaced and FAA had no future plans to relocate the beacon or decommission the site. ITEM J: DISCUSSION J-10 Citizens Jay Barrett -- Reported he recently left his position at KDLL and was now employed as a reporter for the Peninsula Clarion. He added, he would now be covering the City of Kenai. J-2. Council Bookey -- No comments. Swarner -- Invited the audience to the kick-off of the United Way campaign on Thursday, September 16 at the Kenai Senior Center from 5:30-7:00 p.m. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 17 Moore -- He referred to the earlier discussion of investigating the placement of a modular building at the new multi -purpose facility for the purpose of restrooms and noted representatives of the Little League came to council and suggested using an FAA trailer for restrooms at the fields. He noted, there had been an estimate for preparing the building for that use. He suggested it would be fair to consider the trailer along with other possibilities. Moore also noted the recommendations in areas of concern noted in the Dip Net Fishery Report were to increase manpower. He suggested the fee structure for parking at the beach parking facilities to cover costs of additional manpower. A discussion of whether it would be possible to include the South Spruce parking lot as part of the Dock Enterprise Fund took place. Ross explained the boat launch fees were included in the Dock Enterprise Fund, but the parking lot fees were not. He added, since the parking lot was a funded item between the Water/Sewer Fund and the General Fund, it should not be included in the dock fund. Bannock asked if there were revenues from the parking lot, should not they be returned to the fund which capitalized it. Ross explained administration held that debate, but because a portion of the land was extended for future expansion of the Sewer Treatment Plant (a portion of it) and because the dip net fishery was being supported by the General Fund (personnel, etc.), it was cleaner to call it a General Fund operation. Ross added, administration was not trying to capitalize the investment being made for future expansion in saying revenues were being raised from that capital investment for the Water/ Sewer Fund. Bannock stated his concern was that in the future, a report wouldn't be received from the auditors stating revenues had been incorrectly deposited to the General Fund and reimbursement would have to be made the Water/ Sewer Fund. Ross noted, that point was discussed and it was decided that if the plant was not expanded in two years and a General Fund event was taking place on the property, would the General Fund have to pay the Water/ Sewer Fund, the answer would be no. Ross added, the city was not using a facility of the Water/ Sewer Fund, per se. However, when the plant is expanded and the fence is moved over, it would become Water/ Sewer land. Bookey asked if this would be anything like the BOR property exchanges twenty years in the future. Ross answered no. He added, there was no dedication of the land. Bannock -- Reported an idea had come to him from the Economic Development Committee (through the Chamber of Commerce) to consider purchase of a portion of the Old Carrs Mall to renovate into a convention center. He noted, the financing of the project would be done much like the public/private agreement with the LLC in constructing the multi -purpose facility. Bannock stated he believed it a very good idea and requested administration discuss the matter more thoroughly to see if a plan KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 18 could be developed to enhance or mimic the LLC structure being used for the ice facility. He added, he didn't support the city's involvement in the development of a convention center which would be connected to a business, but this would be a re - subdivision of an existing building that was an eyesore and underutilized. He added, the capital needed to purchase and remodel the building would need to be raised. However, he believed it would be a good project to discuss with both the council and administration in conjunction with the EDD . Bookey clarified this Economic Development Committee was not a committee of the city. Bannock noted, he saw it as an opportunity to join forces with local government and local funding which would benefit all the city. Williams suggested Bannock contact Bill Kluge to review blueprints developed several years ago for a similar remodeling of the old mall, which included an ice arena. He added, the city had taken time and money in reviewing the issue at that time, but at that time Carr-Gottstein wanted approximately $4 million for the facility. Bannock stated, Carr-Gottstein was now trying to market the facility more actively. He added, the single largest cost would be to develop a kitchen facility ($100,000) and the purchase of a portion of the building, much like a condominium. Bannock stated, he believed the idea deserved some merit. Frazer -- Reported he attended the Project Impact Workshop and noted it was well attended. Williams a. FYO1 State Revenue Sharing/ Safe Communities Program Population Determination. Williams referred to the September 3, 1999 letter which was included in the packet. He noted the population determination was set by the State at 7,005, 53 less than last year's determination. Williams stated he disagreed with the determination and hoped the 2000 Census would give a more accurate determination. b. Convention Center/Old Cams Mall -- Williams explained he recalled the EDD and others saying the city should not get involved in developing a convention center as it was a matter of private industry. He noted, he had been pursuing private enterprise to build a hotel/ convention center in Kenai and now the same group who before stated the city shouldn't get involved, was asking for the city to consider a private/public partnership for a convention center. He asked Bannock if he was speaking for the group. Bannock stated he believed the opposition that came forward didn't have anything to do with a convention center, but subsidizing a specific private industry over another. He added, he believed this project would be unique as it was only about a convention center. Bannock stated he was not endorsing the project, but felt it had merit for discussion. He also noted it was his opinion there was never p any objection from the 1 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 19 Chamber in regard to a convention center. He explained, his prior objection was the proposal to grant an industry a gift in order to land a convention center. Williams stated he was trying to prevent confusion of council and administration as to whether or not to proceed to pursue a hotel/convention center project or give way to another project which could be of less magnitude. Bannock asked if it was possible to do both simultaneously. Williams stated, if the city involved itself in any way, financially, he would not support it. The discussion continued. Bookey stated he had no objection to discussing the mall project, but was opposed to any municipal funding of such a project. He added, he believed the local hotel industry was dead against the city involving itself in any type of hotel/ convention center previously proposed. Bookey explained, he would not want the city to be a part of developing a hotel/ convention center, but believed the city could make land available for a project. Swarner stated Bannock was correct that the city had heard for years that something needed to be done with the Old Carrs Mall. However, for many years, the residents have stated they didn't want any municipal funds used for development of a convention center. She added, at this time, she would have to see a really good business plan for any municipal involvement in development of a convention center. Swarner noted, if the city were involved in development of a convention center in the old mall, it would take that property off the tax rolls, however strongly encouraging a new hotel/convention center would increase tax dollars into the community. Moore stated he agreed with Swarner and Bookey, but didn't have an objection for any organization coming to the council and make a proposal. EXECUTIVE SESSION - Annual Evaluation of City Attorney and City Clerk. If time allows, the evaluation of the City Manager will be held as well. MOTION: Councilman Bannock MOVED to convene in an executive session of the council of the City of Kenai concerning matters that tend to prejudice the reputation and character of another, specifically the annual evaluation of the city manager. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. Williams requested City Manager Ross to join the council in his conference room upstairs. BREAK FOR EXECUTIVE SESSION: 9:42 P.M. 1 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 15, 1999 PAGE 20 BACK TO ORDER: 10:50 P.M. Councilwoman Swarner reported the council met with the city manager and he received a favorable evaluation. ITEM K: ADJOURNMENT MOTION: Councilman Bannock MOVED to adjourn the meeting and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 10 : 51 p.m. Minutes transcribed and prepared by: / x2y. C"". z1f Carol L. Freas, City Clerk � �. �:;i'CsplY]adtl. rly A IE i r` r R i%