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HomeMy WebLinkAbout1999-11-03 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 3, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /wvwv.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. OATHS OF OFFICE 4. Agenda Approval 5. 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. Mayor Williams/Larry Semmens -- AML Presentation Preview, "Strategies for Economic Development for Small Communities. ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1843-99 -- Finding That Certain City -Owned Airport Land, Described as Lot 1, Spur Subdivision, Senior Citizen Addition, Is Not Required for a Public Purpose. 2. Resolution No. 99-60 -- Supporting the Development of Natural Gas Resources in the Wolf Lake Area of the Kenai National Wildlife Refuge. ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8v Recreation Commission 6. Planning &Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board l C. Kenai Visitors &Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of October 20, 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. Approval -- Certification of Local Government Approval for Non -Profit Organizations/ Kenai- Soldotna Women's Resource & Crisis Center. 4. Approval -- Zecee Crow Lease Rescission 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 (live minutes) 2. Council EXECUTIVE SESSION -None Scheduled KENAI CITY COUNCIL -REGULAR MEETING NOVEMBER 3, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htt-p://www.cl*.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:00 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, Swarner, Moore, Bannock Frazer, and Williams. A-3, OATHS OF OFFICE Mayor Williams administered the oath of office to Williams R. Frazer, Linda Swarner and Duane Bannock. He congratulated them all for their election to council and noted it was the first time since he was elected mayor that there were four seats up for election at the same time. A-4. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AT: D-3 / D-6, Kathleen Peters' application for appointment to Harbor or Planning 8v Zoning Commission. ADD AS: Information Item No. 4 -- 10/27/99 DOT letter regarding Kenai Spur Highway Unity Trail. Williams requested council to review the DOT letter and if they had any comments to pass to DOT, to contact Clerk Freas who would then forward the comments. Williams noted a memorandum from Borough Clerk Murphy which was on the table for council's information. He noted the Borough was inviting the council members to attend their annual dinner after the City's AML Welcome Reception on Sunday night. Williams also noted a copy of the Juvenile Detention Site Proposal was on the table for council's review. He noted there were two sites being considered; Kenai and Soldotna. He added, a public hearing was scheduled for Thursday, November 4 at 7:00 p.m. He it members end the hearing. suggested counc me be s attend a g. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 2 MOTION: Councilwoman Swarner MOVED for approval of the agenda as amended and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-5. 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 requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM B. SCHEDULED PUBLIC COMMENTS B-1, Mayor Williams/Larry Semmens -- AML Presentation Preview, "Strategies for Economic Development for Small Communities. Williams reported he would be giving a presentation at the AML Conference regarding economic development which he and Finance Director Semmens had developed. Williams requested a break be taken in order to show the presentation for council and audience. He asked council to make suggestions for additional information after the showing. BREAK TAKEN: 7:12 P.M. BACK TO ORDER: 7:32 P.M. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1843-99 -- Finding That Certain City -Owned Airport Land, Described as Lot 1, Spur Subdivision, Senior Citizen Addition, Is Not Required for a Public Purpose. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1843-99 and Councilman Moore SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 3 There were no public comments. Councilman Bannock reported the Planning 8, Zoning Commission unanimously approved their resolution which stated the property was not needed for public use. He added, their major discussion was whether the matter should have the Parks & Recreation Commission's review and comment prior to their action. Richard Hultberg -- Noted he was not speaking as the chairperson of the Parks & Recreation Commission. Hultberg asked if this parcel was the same one previously leased for a senior citizens -type facility. Williams explained the city had been approached by a developer about five years prior who wanted to build an assisted living facility on the property now referred to in the ordinance. The developer was unable to acquire funding for the facility and the property was returned to the city. Williams noted the person interested in purchasing the property was in the audience and asked him what type of building he would be developing. James V. Zirul, M.D. -- Dr. Zirul explained he wanted to build a new clinic and he was interested in using the subject property. He added, his initial plan was to build a clinic of 3,300 to 3,500 square feet with the possibility of expansion in the future. The expected cost for the building was $500,000. Williams noted, council needed to consider the tax base development of the property would bring and asked if the Planning & Zoning Commission had discussed that concept. Bannock answered no. Bookey stated he believed the property to be very valuable and didn't think the assisted living project would ever develop. He added, he believed the council should go forward with the ordinance and let Zirul develop the property. Moore asked why it was thought Parks 8v Recreation should comment on the use of the property. Hultberg stated he was not speaking for the Commission and did not think the use of the property had anything to do with the Commission. Swarner noted one of the Beautification Committee members thought the property should be held from development and used as a park area. Swarner added, she told the Committee she did not think council would support the purchase of the lot by the General Fund from the Airport Fund. Councilman Frazer questioned the viability of developing a park on the property when Memorial Park was just across the street. Bannock noted the Planning &, Zoning Commission's debate centered on the fact it was city property and whether the highest and best use of the property would be gained by keeping it in city ownership or deciding it was not needed for public use. He added, the Commission did not see a compelling reason or anything in the near future that would better serve the public � and recommended it be put into private hands. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 4 Ross explained, council first needed to decide whether the property would be needed for public use. After that determination, the code would be followed as to the public process involved in the purchase of the property. He noted, the value noted in the ordinance was the Borough assessed value. An appraisal would be made to determine the fair market price. He added, after review of the appraisal, Zirul would have the option of proceeding with his application. At the time of the sale, Zirul would have the ability to meet or beat the highest bid received. Bob Peters -- Old Town, Kenai. Peters noted his son, Mathew is a member of the Parks & Recreation Commission. His son received a letter from the City soliciting a comment from him as a member of the Commission. Peters added, his son was reluctant in making a comment, but forwarded one (attached to the ordinance and included in the packet) . Peters stated his son was concerned whether there would be land available for public use for the future. Bannock explained, he requested the Commission receive information on the matter and be asked for their comments because there would not be a Commission meeting prior to the council meeting when the ordinance would be at public hearing. VOTE: Booke Yes Swarner: Yes Moore: Yes Bannock: Yes Frazer: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-2, Resolution No. 99-60 -- Supporting the Development of Natural Gas Resources in the Wolf Lake Area of the Kenai National Wildlife Refuge. MOTION: Councilman Moore MOVED for approval of Resolution No. 99-60 and Councilwoman Swarner SECONDED the motion. Williams explained Marathon Oil Company was in the process of further developing property in Nikiski and had applied for gas line permits to enhance other lines in the area. They requested a resolution in support of their efforts from the council. Because the federal hearing was delayed in regard to the permits, Williams stated, the resolution's release to the appropriate agencies would be held until after the hearings. VOTE: Councilman Bannock requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 5 ITEM D: COMMISSION/ COMMITTEE REPORTS D-1. Council on Aging -- Councilwoman Swarner reported a meeting would be held on November 17, at 10:00 a.m., at the Senior Center. She noted the new wheelchair van and coordinated transportation were among the topics to be discussed. D-2. Airport Commission -- Councilman Bannock reported the minutes of the last Commission meeting were included in the packet. D-3. Harbor Commission -- Councilman Bookey reported the next meeting was scheduled for Monday, November 8 at 7:00 p.m. D-4. Library Commission -- Councilman Moore reported the Commission met on the prior evening. He reminded council and audience of the Friends of the Library Book Sale scheduled for the week. He also reported a storage area at the Senior Center was found for the Peninsula Clarion collection. The Commission, when noting the Clarions would be stored out of the library building, there was obsolete equipment being stored in the library building. The Commission asked if they could offer these items for sale instead of holding them for a future auction. Moore noted the Library's annual holiday party had been scheduled for December 9 and a children's holiday party was scheduled for December 5. MOTION: Councilman Moore MOVED to donate $500 for the Library Open House to be held on December 9. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. Moore also reported the Commission's student liaison developed a school survey regarding students' use of the library. The survey, he noted, would be distributed to the local schools. D-5. Parks & Recreation Commission -- Councilman Frazer reported the next meeting was scheduled for November 4 at 7:00 p.m. and would be held in council chambers. D-6. Planning & Zoning Commission -- Councilman Bannock reported there was no business on the agenda and there was no quorum for the meeting. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Swarner reported the next meeting would be held on November 9, beginning at 5:30 p.m. in the council chambers. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 6 D-7b. Historic District Board -- Moore reported the next meeting was scheduled for December 20. He noted, he hoped to hear responses from council in time for the meeting in regard to the Board's suggestion of the purchase of the old Fish & Wildlife property from whomever purchased the property from the Kenai Natives Association (KNA) and the development of a video of Old Town by high school students. He noted, the suggestion was the schools produce the videos at their own cost, but a prize of $1,000 would be donated by the city. Williams requested Diana Zirul, a past director of the KNA, to speak to the question regarding the purchase of the Old Town property. Zirul noted, KNA acquired the property through a land exchange with the federal government and she was unaware of any sale of the property. Williams noted, it took years for KNA to acquire the property from the federal government and he was also unaware of their desire to sell it. Bookey stated he did some research on the subject and found the property was still owned by KNA. Williams noted there were three lots for. sale in Old Town in that general vicinity. He suggested those could be investigated if the city wants to acquire additional property. Bookey stated he believed the land in Old Town should stay in private hands. He added, if the Historic District Board wanted to purchase property in Old Town, they should investigate a way to raise funds in order to make the purchase. Moore asked if council was interested in the video development proposal. Williams stated he believed it was a good idea, but the prize money would have to be discussed. He suggested including the item on the next meeting agenda and request Board members to attend and address the proposed project. Swarner suggested the matter be held to the December 1 meeting since Government Day was scheduled for the next council meeting. There were no objections. D-?c. Kenai Visitors & Convention Bureau Board -- Bookey noted minutes of the Board's last two meetings were included in the packet for council review. D-7d. Alaska Municipal League Report -- Williams reported the conference preparations were coming along. Williams referred to applications for possible appointment to the Harbor and Planning & Zoning Commissions from Katie Peters and Amy Jackman, which were included in the packet (Peters' application was added to the agenda at the beginning of the meeting). Williams stated he would support the appointment of Jackman to the Planning 8s Zoning Commission as the Commission needed new blood and Jackman stated her interest in doing the work and serving. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 7 It was noted Jackman was in the audience. Councilman Moore asked Jackman how she would have handled the question of city property not needed for public use discussed in Ordinance No. 1843-99. Jackman answered, she thought that if the city did not think there was a need for the property for public use, it should be sold. Bookey noted there was another application that came before council for review from Don Gough who also ran for council in the last election. He added, it was his understanding no appointments would be made until the full council was seated. Williams noted, he was informed another seat may be available in the near future. Frazer stated he didn't have a problem in making an appointment at this time. Moore stated he agreed with Bookey. Williams appointed Amy Jackman to the Planning & Zoning Commission. Jackman thanked council for the appointment. Williams stated Gough's application would be held for consideration at a future date. Williams noted Katie Peters' application for appointment to the Harbor Commission. It was noted Peters was a junior at KCHS and under the age of 18. Moore noted council had decided that if a position was open and an application was available, a person under age 18 could be considered. Williams appointed Katie Peters to the Harbor Commission. ITEM E: MINUTES E-1, Regular Meeting of October 20, 1999. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 8 Councilwoman Swarner MOVED to pay the bills over $2,500 and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED for approval of the purchase orders exceeding $2,500 and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. H-3. Approval -- Certification of Local Government Approval for Non -Profit Organizations/ Kenai- Soldotna Women's Resource & Crisis Center. Ross referred to the letter of request included in the packet and explained the WRCC was applying for a grant. He added, council would not normally see these requests, however this one required the city to approve the grant. He noted, although the grant had not been finalized, he was requesting council's approval so that when the grant was ready, he would have the authorization to sign the certification statement. Ross added, he requested a synopsis of the grant request which was included in the WRCC cover letter. Swarner explained she was employed by the WRCC, but did not think any of the funds from the grant would be used toward her salary. Moore asked if the procedure would incur difficulties in the city's audit if the WRCC was not in compliance with the grant. Finance Director Semmens answered, he did not think so as the city was only stating they liked the project. Swarner noted WRCC had received like grants in previous years. Williams suggested council approve the certification. There were no objections from council. H-4. Approval -- Zecee Crow Lease Rescission City Attorney Graves explained Crow was behind in the lease payments and wanted to enter into a lease payment plan. He noted, the issue for council was whether they wanted to consider someone current in a lease if they were current in a lease payment plan. He added, council had not dealt with this question before and asked if they want to rescind the lease. Bookey asked if this was allowed for liquor license renewals/transfers and Graves answered yes. Bookey suggested the city should take the property back and start over. Moore asked if Crow had vacated the property and Graves explained, nothing KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 9 had been done with the property and Crow had no plan to do anything with the property. Frazer stated he was familiar with the matter and urged council to rescind the lease as outlined in Graves' memorandum included in the packet. MOTION: Councilman Frazer MOVED to approve the termination of the Zecee Crow lease as outlined by the city attorney and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. ITEM I: I-1. Mayor ADMINISTRATION REPORTS a. Village of Lights -- Williams thanked staff who placed the lights on the buildings, at the parks, etc. for the Village of Lights celebration. b. AML Conference -- Williams requested as many council members as possible attend the awards banquet on Monday. He thanked the senior citizens, ARFF, airport, finance, fire department staffs who helped in preparation for the conference. C. Juvenile Detention Facility -- Williams noted a public hearing would be held on the site for the facility at the Borough building on Thursday evening. He urged council's participation. d. Economic Development District -- Williams reported the EDD was considering two applicants for the EDD director position. He noted both applicants were very well-equipped in background and education. He added, they would be interviewing for the position in the next several days. I-2. City Manager a. Kenai Municipal Code Update -- Ross reported he had received most of the suggested changes to the code from department heads. He, City Attorney Graves and the department head involved would be reviewing the submittals during the next week. Ross added, he hoped to have some of the suggestions to council at the December 1 council meeting. He noted, some of the changes would first be reviewed and considered by the Planning 8s Zoning Commission. Ross added, the process would be ongoing through the winter months. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 10 b. Kenai River Special Management Area Board -- Ross reported the final plan had been published and he was surprised and pleased to see the city's suggested language changes were included in the document. He noted, the Board wanted the cities to approve the document, however he believed council should not do this because there were items included in the document that affected areas over which the City of Kenai had no jurisdiction. He recommended council address the parts of the document that affect the city when they review the Comprehensive Plan. Ross added, that would be the position he would take with the Board unless council objected. He noted, the Comprehensive Plan would be reviewed next winter. There were no objections. C. Juvenile Detention Facility -- Ross reported the state was looking for a site for the facility and council expressed an interest several years ago. Since then, the state decided they wanted ten acres for the facility and room to expand which narrowed the city's available property to that along Marathon Road. He noted, as previously mentioned by the Mayor, a public hearing would be held at the Borough building on Thursday evening. Ross stated, at the hearing, the State wanted testimony from neighbors who might be concerned about the site selected, including elected officials. He added, Lt. Kohler was representing the city on the selection committee. Ross noted, a copy of the site selection document was distributed to council. for their review and indicated the discussion of the Marathon Road site was included on Page 9. He also stated it was unknown at this time whether funding would be available for the facility. Ross added, if the city's ten acres was chosen as the site, the General Fund would have to purchase the property from the Airport Fund. d. Airport Car Rental Leases RFP -- Ross noted the draft RFP was included in the packet as Information Item No. 1. He explained, currently there were three car rental agency lessees in the airport terminal. In the past, the Airport Commission recommended not going beyond three vendors. He added, five spaces were going to be for a five-year lease period. Because of the need to bid on the amount of rentals based on enplanements, the bidders needed to have some idea if they would be bidding against five or more, etc. Ross stated they checked at other airports for the number of spaces being leased. Airport Manager Cronkhite noted they learned the philosophy was to have fewer spaces than interested vendors. She added, to their knowledge, enough spaces were being offered to satisfy all the interested parties. Williams asked if "enough spaces" meant five or the three, plus the small booth, currently being used. Cronkhite answered, there was a potential for five bidders and they were offering five spaces. This was based on contacts made to them. Ross added, the bidders would be expected to bid an annual minimum and the high -bid minimum would be how the slots are selected. The revenues would still be based on space rent plus ten percent gross. The lessees would be paying a monthly space rent, KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 11 plus 1 / 12 of the annual minimum or ten percent of the gross, whichever was higher. Once a vendor reaches the annual minimum, then it would be ten percent of the gross for the remainder of the year. Ross noted, that was an attempt to not end up with the lessee paying more than ten percent because the minimum could be beyond that for some of the slow months in the winter. Ross added, the advertising document would state that if a vendor leaves because of lack of business (which has happened in the past), the city would not necessarily automatically fill the space. Administration would make a recommendation and the Airport Commission and council would then address the matter. He added, if a vendor left due to lack of revenues, there could be discussion by council to cut the rate, expand the vacant spaces, etc. He noted, the city was also in business and rate - cutting was detrimental to revenue received by the airport. He noted, the options of cutting the rate or filling any returned spaces were included in the document. Ross stated they hoped to have an opening in February. Bookey asked if there was a preference to the existing lessees as to location. Ross answered, the bidders would bid a minimum guarantee. The high minimum bidder would select their spot. The current lessees could be moving to another space. Bannock stated he appreciated the document being included in the packet and noted he had some requests. He noted some changes had been made between when the Airport Commission reviewed the document and this council meeting. One of the matters that arose from the Commission's discussion had already been changed in the document. Referring to Page 2, Section "Or" (b) and (c) and 1-4, he noted the document discussed for what the city would be collecting the ten percent. He referred to (4) which read, "Sales or fees for automobile liability insurance and personal accident insurance." Bannock stated he believed that item should not be included with those items the city would collect a commission. He suggested (4) be placed at (d) "No deductions from gross sales, other than those specifically identified below shall be allowed:" Ross stated Bannock was correct in that some of the items were changed after the Commission's review and because of their input. He noted the "lost damage and waiver insurance" was moved to where it would not be considered as part of the gross. As a result of that, Cronkhite reviewed what other Alaska airports were doing. Bannock asked for Councilman Frazer's comments as he was a member of the insurance profession. Frazer noted he was not sure how public entities were involved in this, but to share in insurance commissions, earnings, etc. would not be allowed without the person receiving the commission having a license to sell insurance. He suggested this be investigated prior to including it in the lease. Ross noted, the city would be taking ten percent of the gross revenues as a portion of rent and was not putting itself in the insurance business. He noted, this was not new KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 12 to the document as it had been done the same in the past ten years or more. He added, the city considers the insurance as part of gross and was done elsewhere. Williams noted, as a municipality didn't have to adhere to the rules and regulations of the state regarding various businesses, i.e. real estate, because the law allows the city's attorney to do the work. In the matter of insurance, he believed it would be seen that the city was not selling insurance and because under Title 29 it was allowed. Cronkhite reported they reviewed contracts nationwide within the industry. She added, they coordinated extensively with the current car rental agencies in the terminal and made many changes in the document based on those conversations. Cronkhite added, the document was not changed from the previous contract and the current lessees pay a ten percent commission on insurance sales. She noted, they had questioned the loss/damage waiver and it was moved to "no deductions..." as it was not considered a profitable insurance sale that didn't qualify. Cronkhite continued, the loss/damage waiver placement in the contract varied throughout the state and nationally, however it was very common and accepted by airport commissions, municipalities and other entities running airports as a business. Bannock noted he still believed it should be removed. Bannock also referred to page 3, Section 5, Revenue Diversion. He noted, the paragraph had been changed substantially since the Commission review. He noted, he believed it an "anti -cheating" paragraph, i.e. if an organization was a "concessionaire in the airport while at the same time established, owned or operated another rental business within five miles of the airport, it agreed to make all books, records, and other pertinent documents available, etc." He asked, what was the standard and what would be looked at and how could it be determined what diversion was or was not, i.e. if the car rental company at the airport also was affiliated with a car rental agency within a five -mile radius of it, what, in the event of an audit, could the city use to establish that rental business had been diverted from the airport to the off -site location to escape the ten percent commission. Ross stated administration struggled with the same question and was aware that it is known when it is seen, but sometimes hard to describe. He noted, the easiest would be if there was a concessionaire at the airport who was running a van, picking up people and taking them to the off -premises location to rent cars. He added, a tape recording could be attached to their 800 number, etc. In investigating this item, Ross noted, Cronkhite spoke with representatives from other airports and learned this was an evolving area in which all the criteria, problems, and loopholes had not yet been developed. The best advice that was given was to stay with this statement (from the FAA guidelines) and if it is thought it is taking place, let people know it is believed it is happening and be ready to look at all the new an innovative ways it could happen. Cronkhite added, this wording was much the same as the FAA Revenue Diversion paragraph, however, they did not define it or give examples. Bannock stated he KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 13 appreciated the work involved in trying to define the paragraph, but it created a bit of "gray area" for interpretation. Bannock referred to page 1, paragraph A, Purpose. He stated he absolutely despised the idea of the city limiting the number of car rental lessees and would not support that type of a program. He added, he thought council had reviewed the matter some time prior and believed the council made the decision that it would not limit the number of potential clients that would come to. the airport to "sell their wares." Bannock noted, he appreciated the architecture of the building and that it was structured for five lessees. Ross noted, administration had struggled with this item as well, but the terminal was designed for five lessees. He added, it was not an attempt to be anti -competitive. A proposal would be developed during the year for access charges to allow other organizations to come in and compete in the airport business through transporting to off -premises businesses. Ross noted, the lease comes open every five years and based on demand, the council could say there would be six spaces available. Ross stated, he believed five spaces was a reasonable number and that a bidder would be able to know how to bid. If the number was unlimited, it would be very hard for a bidder to figure out what a minimum bid would be over the next five years or whether they could determine if their business could survive. Ross recommended the five -space structuring remain. V. Juvenile Detention Facility -- Swarner referred back to the juvenile detention facility discussion and noted she would not be able to attend the public hearing. She asked that whoever attended, they should stress the airport was open 24 hours a day and the proposed site was close to the airport. Ross noted, they had heard from administration and were now wanting to hear from the public,. council, etc. It was determined Mayor Williams would be attending the hearing and would mention Swarner's comment. Car Rental Document -- Williams asked if the little space at the end of the counters would be included in the bidding. Airport Manager Cronkhite answered, they intended to lease the spaces as they were originally designed, i.e. five spaces. She added, the booth was normally used for other purposes. They wanted to have council be aware the language in the contract limited the spaces to five. Williams noted that if a convention center/hotel is built, additional spaces may be needed and the terminal may need to be reconfigured. He agreed with the document as it was presented. Bannock explained he agreed with the logic administration used in developing the RFP, however he asked how many airlines the terminal was configured for at present. Williams answered, any number; even ten if they offered the funding. Bannock noted, the airlines could not be limited and added, if there was a market, the city would make space available for the market. He suggested council use the same mentality in considering restaurant, car rental, gift shop businesses, etc. Williams noted, if ten KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 14 airlines wanted space in the terminal, the carriers would have a tremendous input as to who builds what, how it's built, etc. He added, that was not the case with car rental agencies. Bannock stated, with the draft document, it needed to be asked if the city limits enterprise. He added, the document says "yes," enterprise would be limited in regard to car rental agencies. Bannock asked council to treat the rental of the spaces as if they were airlines. Cronkhite noted, free enterprise would not be limited with the document. The bidders were being given a set time on which to bid. She added, they could not ask for competitive bids as it was necessary to let the bidders know on what they were bidding. (Cronkhite also noted this was the first time the spaces were being let through a competitive bid. This was because there was now demand to do so.) She added, she could not tell the bidders to make a five-year financial commitment to whatever the city wanted to do; they needed to know on what they were bidding. Cronkhite added, they were not limiting spaces for the future, etc. It was only for the life of the contract (five years) . I-3. Attorney -- Graves reported he would be attending Alaska Municipal Attorneys meetings on Friday and Saturday and would join the Borough Attorney in a presentation regarding municipal protests of liquor licenses for non-payment of off -site taxes. He explained, the city and borough had been dealing with this matter for some time. I-4. City Clerk -- No report. I-5, Finance Director -- No report. I-6, Public Works Managers Kornelis a. Forest Drive Upgrade Project -- Kornelis reported he inquired about the bid opening for the Forest Drive upgrade and learned the state was still working on the utility agreements. The project would be going to bid in the spring. b. Street Light Placement'— Kornelis noted the street light for East Aliak (requested several weeks prior) had been installed and it cost $25 because there was a secondary power and pole available. Bookey noted he read where the Forest Drive project was to go to bid on November 20. Kornelis stated he spoke with the project manager and was who told him they were still working on the utility agreement with Enstar. Bookey noted he had seen the advertisement in the Alaska Journal of Commerce. La Shot -- No report. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 3, 1999 PAGE 15 I-7, Airport Manager -- Airport Manager Cronkhite reported the banner was purchased and would be hung in the airport terminal to welcome AML Conference attendees. A welcome table would also be placed where information would be disseminated. It was noted, the table would be staffed by volunteering senior citizens. ITEM J: DISCUSSION J-10 Citizens Bob Peters -- Referring to the car rental lease areas, Peters asked if the current lessees pay more for the 11/2 spaces rented. Ross answered, approximately one year prior, two of the operators asked to increase their spaces into vacant spaces and council approved. The lessees agreed to pay the additional space floor rental fee and continued their ten percent. Those lessees would be giving up the extra space. J-2. Council Bookey -- No comments. Swarner -- Noted the council chamber was cold during the meeting. Swarner also noted the Senior Center directional sign which was situated at the Leif Hansen Park was down. Swarner also thanked Bob Peters for his children's willingness to serve the city. Moore -- No comments. Bannock a. Challenger Board Renewals -- Noted he would not be in attendance at the November 17 council meeting. He requested council make renewal assignments for himself and Williams as Challenger board members at the November 17 meeting. b. AML Presentation -- Bannock referred to the presentation Williams and Semmens made at the beginning of the meeting and suggested the planned new maintenance facility should be added at "Planned Future Developments." C. Peninsula Oilers Water/ Sewer Issue -- Bannock noted approximately three meetings prior, Ross brought the water/ sewer issue at Oilers Park to the council. Bannock asked for an update to the issue. Ross noted, discussions had been held with Mike Baxter, Director of the Peninsula Oilers and he told him the city would be seeking a regulation change to better fit outdoor recreational parks that have primary summer uses and very little use of a sewer system. Ross added, the proposed regulation would be drafted and probably come before council at their November 17 KENAI CITY COUNCIL MEETING MINUTES � NOVEMBER 3, 1999 PAGE 16 meeting. He noted, the regulation would require these types of facilities to have a two- inch line during the summer and it would also establish a year-round rate. Bannock requested the matter be held until the December 1 meeting since he would not be present at the November 17 meeting. Ross stated administration had no objection to hold the item to the December 1 meeting. Frazer -- No comments. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adj ourned at approximately 9 :11 p . m. Minutes transcribed and prepared by: 'APPROVED BY F Carol L. Freas, City Clerk