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HomeMy WebLinkAbout1999-12-15 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 15, 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: Z /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 R ITEM C: SCHEDULED PUBLIC COMMENTS (10 minutes) PUBLIC HEARINGS 1. Resolution No. 99-66 -- Supporting a Charter Agreement Between the State of Alaska and BP/Amoco on the Acquisition of ARCO Alaska. a. Motion to Reconsider (majority vote required) b. If Motion to Reconsider passes, consideration of resolution. 2. *Liquor License Renewal -- American Legion Post #20/Club. ITEM D: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission S. Parks 8. Recreation Commission 6. Planning 8. Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors 8s Convention Bureau Board d. Alaska Municipal League Report -1- ITEM E: MINUTES 1. *Regular Meeting of December 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 -- Proposed Airport Lease/Kenai Flyers 4. Discussion -- Code Revisions: KMC 4 (As -Built Survey Requirements), KMC 14 (Sign Code and Other Issues), and KMC 12 (Restaurant Inspections and Health Officer). 5. Discussion -- Council Liaison Assignments 1999/2000. 6. Discussion -- Continuation of Terms/Boards, Commissions, and Committees. � 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 -None Scheduled ITEM K• ADJOURNMENT -2- KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 15 1999 7:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:04 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: Porter, Bannock, Frazer, Williams, Bookey, Swarner and Moore. A-3. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD TO: H-3, Discussion of Proposed Airport Lease -- 12/ 10/99 letter from Yute Air Alaska Trustee rejecting the contract for counter spaces #32 and 33 at the Kenai Airport and, 12/ 10/99 letter of intent from Trans North Aviation to lease counter spaces #32 and 33. MOTION: Councilwoman Swarner MOVED for approval of the amended agenda and Councilman Frazer SECONDED the motion. There were no objections. SO ORDERED, A-4, CONSENT AGENDA Mayor Williams reported he had no changes for 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 -- None. ITEM C: PUBLIC HEARINGS KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 2 C-1. Resolution No. 99-66 -- Supporting a Charter Agreement Between the State of Alaska and BP/Amoco on the Acquisition of ARCO Alaska. C-1-a. Motion to Reconsider (majority vote required) MOTION: Councilman Bannock MOVED to reconsider Resolution No. 99-66 and Councilwoman SECONDED the motion. VOTE: Porter: Yes Bannock: Yes Frazer: Yes Williams: Yes Booke Yes Swarner: Yes Moore: Yes MOTION PASSED UNANIMOUSLY. C-1-b. If Motion to Reconsider passes, consideration of resolution. There were no public comments. Councilman Moore noted he had no objection in supporting the resolution at this time. He explained he did have hesitation for the resolution at the last council meeting because they had just been informed during the work session prior to the meeting, the Governor and BP/ARCO had struck an agreement and the television news reported the Federal Trade Commission stated it would not support the agreement. Williams noted Senator Stevens was now supporting the agreement. Councilman Frazer stated he wholeheartedly supported the resolution and added, he would like it approved and forwarded as soon as possible. He suggested the resolution include direction to forward a copy of the resolution to the Federal Trade Commission and to Senators Stevens and Murkowski. Other suggested changes to the resolution were: • Fourth whereas, change to "has negotiated" • Fifth whereas, delete "proposed" • Now therefore, delete "a Charter agreement" and replace with "the Charter agreement" and change "is negotiating" to "has negotiated" • Be it further resolved, change "promptly complete the agreement" to "supports the completed agreement" KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 3 MOTION: Councilman Bannock MOVED to amend the resolution as discussed turning everything referencing the State of Alaska, and BP into present tense. Councilwoman Porter SECONDED the motion. There were no obj ections. SO ORDERED. VOTE ON RESOLUTION AS AMENDED: Porter: Yes Bannock: Yes Frazer: Yes Williams: Yes Booke Yes Swarner: Yes Moore: Yes MOTION PASSED UNANIMOUSLY. C-2. Liquor License Renewal -- American Legion Post #20/Club. Approved by consent agenda. ITEM D: - COMMISSION/ COMMITTEE REPORTS D-1. Council on Aging -- Swarner reported an application from Dick Fields was included in the packet for possible placement on the Council on Aging. It was noted there were two seats available. However, because there were other applications on file and may be more to be turned in, appointment to the Council was postponed. Appointments are to be considered at the January 5 council meeting. D-2. Airport Commission -- Bannock reported the minutes of the Airport Commission meeting held on December 9 were included in the packet. He noted the Commission reviewed the latest enplanement report and discussed the development of a contest for an airport logo. Airport Manager Cronkhite added, the Commission requested her to contact the local high school graphic arts teachers for advice and work with the council to designate a prize, i.e. cash prize from Airport funds or donations from airport lessees. She added, the plan was still in development. Bannock also reported the Commission discussed the possible installation of storage boxes for tie -down aircraft at the airport. Williams reported he had been at the restaurant at the airport and used the backdoor to enter the building. He noted he had previously requested the handrail and stairs be repaired. He suggested the door be locked if the repairs were not made, but he would prefer the problems be repaired. Ross explained the issue was a project for repair in the spring/ summer. He added, the repairs would include making the entry ADA compliant. Ross stated it should have been locked and securing the door would be investigated. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 4 D-3, Harbor Commission -- Councilman Bookey reported the Commission met on December 6 and during the meeting it was reported the Cook Inlet Keepers would be providing tide books for the city this coming summer. The books are to include information on the Clean Water Act. The Commission also discussed the Coastal Trail/ Bluff Restoration Project Draft Plan and noted the estimated cost seemed to be low. There also had been suggested changes for the wording in one area. Councilman Moore asked if the Commission or council discussed going north beyond the mouth of the river to the end of the city limits for the trail project. He noted the plan included acquisition of properties and suggested there could be property owners north of the mouth who may want to be involved with the project. He suggested the property owners north of the mouth were having the same types of problems as property owners along Mission Avenue and suggested asking for funding could be the same for $10 million or $20 million. Bookey stated he expected to have property owners ask why their property was not being included. Williams stated he didn't have an answer to that, but comments he received from elected officials were that the country would be bankrupted if every piece of shoreline in America was restored. He added, council would have to pick and choose. Williams requested an additional public hearing since there were people who were to be notified of the last hearing who had not been notified. He asked administration to make arrangements with Petratrovich, Nottingham 8. Drage to set another hearing at their convenience but within the city's timeline; having the plan completed by January 15. He also requested all the Old Town property owners, businesses, Chamber, EDD directors, KVCC, Harbor Commission, Planning 8v Zoning Commission, etc. be invited. He noted, although the hearing had been advertised in the paper and people were aware the hearing was going to be held, he apologized to some who contacted him that they did not get a personal invitation. Bookey agreed and noted he also had some comments from people who signed a paper at the first hearing in order to be notified about the next public hearing. He also wanted another hearing set. Moore asked that the property owners on the bluff north to the city limits also be included on the list of those to be notified. Williams stated he had no objection in notifying those property owners of the hearing, and thought it may be a good time to inform property owners how expensive the project will be and what was included in the plan. Bookey stated the engineer had commented at the last hearing that they had used the funds budgeted for the draft plan. He added, it was his understanding, however, that when council appropriated funds for the draft study they would be receive a completed plan. Bookey noted, there were items included in the plan which he expected to come back to council without additional revenues from council. He asked if that was council's understanding or would the city receive an additional bill for the work. l KENAI CITY COUNCIL MEETING MINUTES 1 DECEMBER 15, 1999 PAGE S Kornelis stated he did not anticipate any additional costs and the engineer planned on doing the report. He added, the engineer wants the city to review the report and comment. The engineer would also be providing multiple copies of the report. Kornelis added, the engineer did state they did not have funds for an additional public hearing. However, since the notification problem for the last hearing was the engineer's error, he believed they should hold another hearing at their cost. Bookey agreed, however was concerned, from comments made by the engineer, that they would not hold another hearing. D-4. . Library Commission -- Moore reported the Commission met on December 7 and during the meeting, the director presented the updated Internet policy for the Library. He noted it was a lengthy and frustrating discussion based on concerns not yet tested in the courts with respect to what a person could or could not do in a library while using the Internet. Moore added, the Commission expressed their confidence in what the director was doing. Moore also reported the children's holiday party was a big success and that the Library received a grant from the National Endowment for the Humanities for the purpose of teaching adults how to read to children. He added, the award was very prestigious as it was a pilot project and the Library would be the only library in Alaska participating in the grant. Moore noted the grant was received through efforts of employee Corey Hall. Moore also reported the Holiday Open House was held on December 9 and was a great success. D-5. Parks & Recreation Commission -- Councilman Frazer reported the minutes of the December 2 Parks 8. Recreation Commission meeting were included in the packet. He noted there was a discussion in regard to building additional public restrooms within the city due to a suggestion from the Beautification Committee and that one -be constructed in the Leif Hansen Memorial Park. He noted, the suggestion was not well -received by the commissioners and a motion was passed unanimously by the Commission that no consideration be given to the construction of public restrooms. Parks 8, Recreation Director Frates reported the warming shed being built by the Lions Club should be completed by the weekend. Also, another coat of ice would be added and prepared by the Zamboni. Frates also reported the grand opening celebration was still in the planning stage, although he believed it would take place in January. D-6. Planning & Zoning Commission -- Councilman Bannock reported minutes from the December 8 meeting were included in the packet. He noted there was no business for the Commission however a discussion was held in regard to the KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 6 Commission or other commissions requesting council permission to hold a work session. He noted, it was his opinion that a work session outside of the normal hours of a Planning 8v Zoning meeting or other posted meeting, would need formal council approval for advertising and compliance to the Open Meetings Act, etc. Bannock added, he suggested that if a work session were needing to be held at the end of a meeting, it probably would not be the same issue. He noted, Commissioner Bryson had referred to a request by the Commission to hold a work session and he brought that information to council and recommended he didn't believe it was necessary for the Commission to hold a work session for the particular issue. Council agreed and did not set the work session. Bannock stated the Commission requested clarification whether council approval was required when a commission or committee chooses to have a work session outside the bounds of a normal meeting (an hour prior to the meeting, etc.) Attorney Graves noted the Code did not speak to the question directly. He added, he believed the policy had been that when a commission or committee wanted to change their meetings outside the regular times, they request council's approval. Graves stated, he believed it was a policy council needed to set. Graves asked if Bannock was stating the requirement could be that if a work session was to be set for the same night it would be okay, but if it would be set on a separate evening, it would require council's approval. Bannock stated, specifically prior to 7:00 p.m. as the meetings were advertised and posted as 7:00 p.m. meeting. He added, his suggestion was that if a work session was wanted to be held and if it would be held immediately after the meeting, no council approval would be needed. However, a work session set for prior to a meeting would be a problem and need council approval. Williams asked that since the Planning & Zoning Commission was covered under the APOC, what would the requirement be for the other committees and commissions. Bookey stated he believed the requirement should be the same for all the commissions, committees and boards of the city and prior approval should be required for any changes to the meeting time, etc. Williams requested Graves to review the issue and draft a policy for council review. Graves requested the draft be returned to council by the second meeting of January. There were no objections. Bannock also reported he was notified there was no business for the Commission's December 22, 1999 meeting and requested the meeting be cancelled. There were no objections. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee -- Councilwoman Swarner reported no meeting was held in December. She noted she also read the Parks & Recreation Commission meeting minutes and did not recall a motion being made by the KENAI CITY COUNCIL MEETING MINUTES 1 DECEMBER 15, 1999 PAGE 7 Committee to have a restroom built at Memorial Park, however there were some members wanting a restroom placed there. Swarner noted, she indicated to the Committee, building a restroom at the Park would not happen. D-7b. Historic District Board -- Moore reported the next meeting would be held on January 17, 2000. D-7c. Kenai Visitors & Convention Bureau Board -- Bookey reported the next meeting would beheld on December 16 at 5:30 p.m. at the Visitors Center. D-7d, Alaska Municipal League Report -- No report. TTRM Ro MTWTTTFC E-1. Regular Meeting of December 1, 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: Councilwoman Porter MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, H-2, Purchase Orders Exceeding $2,500 MOTION: Councilwoman Swarner MOVED to approve the purchase orders exceeding $2,500 and requested UNANIMOUS CONSENT. Councilman Moore SECONDED the motion. There were no objections. SO ORDERED, H-3. Discussion -- Proposed Airport Lease/Kenai Flyers KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 8 City Manager Ross reported, Yute Air ceased their operation December 8, 1999 and on December 10, the Bankruptcy Trustee for Yute Air forwarded a letter to the city rejecting the current lease which vacated spaces at the airport (a copy was distributed to council at the beginning of the meeting). Ross noted, a copy of a letter from Stephen Warnke, a former Yute employee, was distributed to council at the beginning of the meeting. Mr. Warnke, representing Trans North Aviation, requested the ticket counter and gate spaces vacated by Yute Air at the Kenai Airport, noting they would be taking over the Yute schedule to some extent. Ross stated, the Airport Manager worked diligently on Friday with the City Attorney to prepare the necessary paperwork to initiate the lease. Ross reported a temporary Special Use Permit was established beginning Saturday, December 11 in order for Trans North Aviation to begin their schedule. He noted, Trans North Aviation met all the requirements of a carrier, i.e. insurance, operating certificates, etc. and were operating their schedule for the past week. Ross asked council to approve the entering into a standard carrier lease of the spaces with Trans North Aviation and noted Mr. Spisak of Trans North Aviation was present to discuss the services to be offered and answer questions of council. Mike Spisak -- Spisak explained Trans North Aviation began in 1995 in Talkeetna doing tours around Mt. McKinley. Since then they added three airplanes, hauling 2,000-3,000 tourists around the mountain last year and expected 5,000 tourists during the coming year. He added, with Yute going out of business, they saw a market in Kenai -Anchorage -Kenai and they had the aircraft to serve it. When Yute ceased their operation, they decided to take on the market. Spisak added, they would be using a Caravan for the Kenai -Anchorage -Kenai route. He noted, they also contracted an air ambulance service out of Kotzebue; they had three King Airs used for air ambulance serving the state; they (and another company) have operated since 1985 in Alaska; and currently they had a 401 certified carrier for their Bel -Aire company in Kotzebue and Fairbanks. He noted they were merging the two certificates together to make one larger company. Spisak also reported they planned to expand, offering service from Kenai to Homer and were working on the acquisition of a UPS contract. Boakey asked if they planned on continuing their use of Caravans for their service on the Peninsula. Spisak answered yes, but discussed other aircraft as well (Palatus PC- 12's) for the Kenai -Anchorage -Homer route (to be offered three times a day) and other aircraft for a Kenai- Homer- Kodiak route. Williams welcomed Spisak/Trans North Aviation to the community and wished them the best of luck in serving the community. Moore asked what their walk-in counter roundtrip price was for Anchorage/Kenai. Spisak answered $98. Williams requested a motion to accept the agreements entered into by the administration and Trans Northern Aviation. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 9 MOTION: Councilwoman Porter MOVED to accept the agreements entered into by the administration and Trans Northern Aviation and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED, H-4. Discussion -- Code Revisions: KMC 4 (As -Built Survey Requirements), KMC 14 (Sign Code and Other Issues), and KMC 12 (Restaurant Inspections and Health Officer). Ross explained, this was the first of several submittals to be made over the next several months. Referring to the information included in the packet, he noted administration worked up the proposed changes to the code and requested council to refer them to the January Planning 8v Zoning Commission meeting (KMC 4 and 14) and Attorney Graves (KMC 12). He added, Attorney Graves would be forwarding an ordinance to make the necessary amendments to KMC 12 in January. Williams asked Graves what he was planning to submit in regard to KMC 12, restaurant inspections and health officer. Graves referred to the memorandum included in the packet which explained the suggested changes. He noted, in his eleven years with the city, this portion of the code dealing with a health department, health officer and restaurant inspections, had never been used. Graves added, his position was that if the city was not going to do inspections, etc., it should be removed from the code. Moore asked if these could be some state -provided services which would be handed over to municipalities in the future. Graves answered, it was currently a DEC function and could be transferred to municipalities in the future as the DEC budget shrinks. He noted, he believed this to be a motivation to remove the information from the code so that the duties could not transferred to the city. Porter noted, restaurants seeking health inspections have had to pay for the inspections for the past five years. Williams stated he believed these responsibilities would be pushed off to communities in the future and agreed with Graves it should be removed. Bookey agreed and added an ordinance was also included in the code that required the police chief to review registers of every hotel/motel in Kenai every thirty days. Graves stated that portion of the code would come forward to council in the future months. Bookey stated he thought these items would come to council first for input. He asked if that would happen. Ross answered, as areas of the code were addressed (which would be given to council in advance), council would have time to address their concerns. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 10 MOTION: Councilman Bannock MOVED to send the items on to the Planning & Zoning Commission and other commissions for review. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-5. Discussion -- Council Liaison Assignments 1999 / 2000. Williams referred to a letter from the Cook Inlet RCAC which was included in the packet and noted the term of John Douglas' as the city's representative to their board of directors would end. Reappointment of Douglas was requested by Williams. There were no objections from council. Council reviewed the list of liaison positions which were included in the packet. Williams suggested choices of appointments be determined by seniority of the council members. The appointments were decided as follows: Swarner -- Airport Commission, Beautification Committee Bookey -- Harbor Commission and Kenai Visitors 8- Cultural Center Board Bannock— Planning & Zoning Commission and Challenger Board Moore -- Library Commission and Historic District Board Frazer— Parks & Recreation Commission Porter -- Council on Aging Williams -- Economic Development District Board, Challenger Board, Kenai Peninsula Borough Assembly representative It was noted City Manager Ross would continue as the city's representative to the. Kenai River Special Management Area Board of Directors. Williams stated he did not have any objections to the choices made, however changes to the appointments could be made in the future since the selection was done in a different manner. There were no objections to the appointments. H-6. Discussion -- Continuation of Terms/Boards, Commissions, and Committees. Clerk Freas reviewed the information included in the packet which noted those commission/committee and board members whose terms ended in January 2000. She noted those who contacted her and agreed to continue with their representation on their respective board, commission or committee. She .also noted several persons wishing not to continue were Billings and Arness on Council on Aging, Sylvia Johnson on Beautification and Dorothy Gray on the Historic District Board. Freas also noted she received no response from Thibodeau and Lorenzen on the Airport Commission prior to preparation of the memorandum. However, since preparation of the KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 11 memorandum, Lorenzen contacted her and reported her work schedule would be changing and requested she be replaced on the Airport Commission after the January meeting. She added, interested persons from the Flight Service Station and Tower would be forwarding their applications in January. Williams suggested waiting until the second meeting in January to make appointments and advertise the positions available. Also contact those with applications on file to determine if they remain interested in appointments. Porter noted there were several members to who had missed more meetings than the code allowed and asked if they were sent letters noting the absences. Williams noted the difficulties in finding persons to be involved on the commissions, etc. and filling openings. He added, unless there were blatant reasons or note by the absences the person no longer intended to participate, council had delayed action according to the code. Porter stated her concern of code enforcement in one instance and not in others. A lengthy discussion followed in regard to the amount of absences of some members and problems enforcing the code requirements for meeting absences. It was noted Thibodeau had been absent for a number of meetings and was out of the country and according to a member of the public (in the audience), he was not due back for some time. It was suggested that since his term was ending and he did not respond to the letter asking whether he wanted to continue his term, he be sent a letter thanking him for his service and Commissioner Knackstedt asked whether he would continue as chair of the Commission instead of vice -chair. It was noted there were other members of the Airport Commission who had also missed a number of meetings as well as members of the Beautification Committee, Library Commission and Council on Aging. It was noted Library Commissioner O'Reilly had missed a number of meetings due to health problems, but it was also noted, O'Reilly had been in touch with other commission members and stayed active with the Commission issues, but was not able to attend meetings. It was suggested the student representative be given voting powers on the Library Commission temporarily in O'Reilly's place, however it was noted the code did not allow for making a temporary appointment. Council had determined in a prior meeting that when a position became vacant on a commission, a student could be eligible for appointment as a voting member. It was noted, these were volunteer positions and it was difficult to remove members due to circumstances beyond their control because of the difficulty to find others interested in the appointments and in some of the cases, action had been delayed. Porter asked if it would be possible for a member to attend meetings via teleconference ,and it was pointed out the code did not allow for teleconferencing. Council did not make any changes on the Library Commission, Council on Aging, or Beautification. Swarner suggested teleconferencing be tried for a year. Freas asked if they were KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 12 suggesting teleconference attendance be included in the code for council members as well. Answer was no. Bookey stated he had no objections to teleconferencing as it was something done throughout the country. Bannock stated his opposition to teleconferencing as he was not aware of any worthwhile projects which were delayed through absences on any commission, committee or board. It was noted changes had been made for the Historic District Board in the amount of members and the amount of meetings. It was also suggested the code be revised to allow excused absences for more flexibility for the membership or change the number of meetings required for each commission, etc. It was noted it would be difficult to determine what would be a good reason for an excused absence and who would make that determination. Additionally, that was the problem before when the excused absences was removed from the code and it was revised to mirror the council's requirement for absences. Bannock added, he saw no difference in whether a person had an excused absence or just didn't attend if it ended in a no quorum situation and business was unable to take place. The impact on citizens due to delays in actions because of lack of quorums (especially for Planning & Zoning and Historic District Board) was also noted as a concern. Williams stated he would delay action in regard to excused absences, teleconferencing, etc. until the matter could be better reviewed. BREAK TAKEN: 8:27 P.M. BACK TO ORDER: 8:37 P.M. ITEM I: I-1. Mayor ADMINISTRATION REPORTS Williams noted items included in the packet: • Letter of Support -- Kenai Chamber of Commerce letter supporting the Conservation and Reinvestment Act of 1999 • Northern Stragegy Bill -- Representative Allen Kemplen letter proposing a bill to develop a northern strategy and the creation of Alaskan benchmarks (Williams requested council to review the letter and indicate whether to bring the matter back for council action, supporting his proposed bill. • Anchorage Convention Center -- Williams referred to a newspaper article regarding the construction of another convention center in Anchorage which was distributed to council with their packet. Williams noted he received additional information about the number of theatre events from. October through April and packages developed for tickets and hotel accommodations. He added, he believed Kenai should get involved in that market. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 13 • Senator Stevens -- Williams referred to a newspaper article distributed to council with their packet which showcased Senator Ted Stevens and his work for the State of Alaska. • AML Touchstone article referring to legislative priorities. • AML/JIA Insurance Pool -- AML/JIA memorandum regarding the city's name on their insurance list. Williams noted stated he felt all should understand issues in the insurance were susceptible to change at all times. He suggested council may want to review the issue at the appropriate time. Finance Director Semmens noted the city has a three-year contract with a broker, but the city purchases insurance annually. He added, the AML/JIA pool was reviewed each year and up to now, the pool had not competed favorably with other companies. Semmens added, the broker had notified the city Cigna Insurance was purchased by Ace USA Insurance who did not like small customers like the city and the market would be reviewed and there would be a major change in the city's insurance. He added, AML/JIA would be considered. Frazer noted Ace USA was then purchased by Wassau Insurance Company who purchased it on a pay -if -they -renew basis. He added, the size of the city's policies would qualify for Wassau, but understood they chose not to renew the city's policies. Semmens agreed and noted, that was the news he had heard from the broker. • Workers' Compensation Review Board -- Williams reported he was asked by the Commissioner of Labor to serve as a member of the Workers' Compensation Review Board. After reviewing the legislation which set up the board, he would be accepting the position. Williams noted the Board would be meeting four times a year and there would be no charge to the city for his participation. • Theatre Committee -- Williams stated he wanted to set up a special committee to investigate developing theatre in Kenai through grants from the John F. Kennedy Center for the Performing Arts and Arts and Humanities Forum. He added, persons involved in theatre in the community told him they had access to grant funds and believed they could acquire enough funding to build a small theatre (200-250 seats) . Williams suggested those persons who would probably be appointed to the committee would be Kathy Schwartz, Marj O'Reilly, Pat Malone, Lance Peterson, etc. He added, the group already were designated a 501(C) (3) non-profit and the federal government was supporting activities of these types of non -profits. There were no objections from council. • Nikiski Gas Pipeline Committee -- Williams reported, during the council meeting, a public hearing was being held in Soldotna in regard to the Marathon Pipeline issue and because he was unable to attend, Bill Stamps of Peak Oilfield Construction to attend for him and present a letter and the city's resolution in support of the pipeline. Williams reported he had been appointed to the Borough's pipeline committee. He noted, $100,000 had been appropriated for the issue and $20,000 was included to 4 KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 14 hire an assistant director. Williams added, the committee would probably be work through the EDD and they would be presenting its justification for the pipeline to be built to the Nikiski area to the State of Alaska. • National League of Cities Conference -- Williams reported he attended the conference in Los Angeles where much of the discussions involved the Internet, how the Y2K issue affects the Internet and the taxation of the Internet. Williams also discussed the concern of lost sales tax from purchases off the Internet and the long- term effects to the city tax base. City Manager • Birch Island -- Ross reported the BOR restrictions on FAA land/Birch Island issue was progressing slowly. He noted, the deeds, plats and as-builts had been forwarded to the State and Federal representatives. Ross added, the survey on the properties had been completed and the documents to initiate environmental had been drafted and they were expected to be available in January. • Capital Improvement List -- Ross reported he received a letter from the Borough requesting the city's CIP request list. He noted, the Governor's budget had been published and the funding for Wellhouse No. 4 was included in that budget. Ross stated he would have a resolution before council for the first meeting January adopting the CIP list. He added, last year roads was council's first priority, the maintenance shop was second, and dipnet issues were third. Since then, the maintenance shop was funded. Because the replacement of water/ sewer lines in the Mission Street area did not score well, he suggested council consider it be set as the first priority (more likelihood of getting DEC funding with a legislative push) and place roads in second or third position. He requested council contact him if they have other items they believe should be included on the list. He noted, the list needed to be forwarded to the Borough by January 6. • Wellhouse No. 4 -- Ross reported Public Works Manager Kornelis was working with the Borough in regard to the donation of the parcel of land on which to place it at the end of Lawton (behind Mountain View Elementary) . Ross added, he spoke with the Borough Mayor in regard to the issue and found there was no evidence of a problem with the donation. Also, the Borough Mayor stated he would be continuing with the plan for land development behind the vocational high school building. • Inlet Woods -- Ross reported he spoke with the Borough Mayor in regard to the waiving of fees and interest on the properties when the properties are returned to the city. • Health Center Project -- Ross reported he discussed the health center project with the Borough Mayor and the project was progressing. He noted, in the past the city had waived building fees on government structures built in the city. Ross suggested that policy be continued with this project. • Juvenile Detention Site Selection -- Ross reported the City of Kenai was selected for the site and complimented Lt. Kohler for his participation on the KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 15 selection committee. He added, it appeared the project would be a FY-02 construction project. • Y2K Issues -- Ross reported the departments had completed their review of Y2K issues and believed everything would be fine. He noted, Public Works would have personnel monitoring the wellhouses and the Sewer Treatment Plant at midnight; Police and Fire would have stand-by contingency plans; and building maintenance would have personnel working January 1 to check that heating systems, etc. were working appropriately. • Kenai River Special Management Area Board -- Ross noted he would be attending the December 16 meeting. I-3. Attorney -- Graves reported he would be out of the office from December 29 through January 9. I-4. City Clerk • Commission / Committee / Board Appointment Clarification -- Freas requested clarification of direction from council in regard to their previous discussion. She asked if council wanted her to send letters of renewal to those persons requesting to be renewed, send thank -you letters to those who requested to be removed, and send a thank -you letter to Thibodeau for his tenure on the Airport Commission. MOTION: Councilwoman Swarner MOVED for the letters to be sent as stated. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. • Employee Appreciation Dinner -- Freas referred to her memorandum included in the packet which discussed suggestions from the Employee Appreciation Dinner Committee that letters requesting catering proposals be sent to restaurants, caterers and non -profits in the city. She noted the committee had also discussed holding the dinner at another site other than the Senior Center and suggested January 22, February 12, 19, or 26 for the event date. Council chose January 22 as the event date. There was a brief discussion about the event site and it was decided council preferred holding the event at the Senior Center. Discussion also took place regarding the involvement of non -profits as the caterer and it was pointed out commercial businesses could not compete with non -profits and council requested the letters of request be forwarded only to caterers and restaurants within the city. Freas noted council's past policy had been to only offer beer and wine through a no - host bar at the event and asked if council wanted to change the policy to include offering other alcoholic beverages as well. Council chose to allow only beer and wine. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 15, 1999 PAGE 16 • Clerk Leave -- Freas reported she would be out of the office from December 20-24 and wished all a happy holiday. I-5. Finance Director -- Semmens noted he would be presenting a mid -year budget review during the second meeting in January if council had no objections. There were no objections. I-6, Public Works Managers -- No reports. I-?. Airport Manager -- Airport Manager Cronkhite thanked Attorney Graves and City Manager Ross for their efforts in regard to the airport lease for Trans North Aviation on behalf of the former Yute Air employees who were now Trans North Aviation employees. ITEM J: DISCUSSION J-1. Citizens -- None. J-2, Council Bookey -- Wished all happy holidays. Swarner -- Wished all happy holidays and invited all to her annual open house. Moore -- Wished all a Merry Christmas. Porter -- Wished all a Merry Christmas and Happy New Year. Bannock -- Noted it was good to have a full council once again and wished all happy holidays. Frazer -- No comments. Williams -- Referred to an article in the Election News included in the packet which discussed Internet voting and how Alaska would be the testing ground. Williams also wished all a Merry Christmas and Happy New Year. EXECUTIVE SESSION - None Scheduled ITEM K: ADJOURNMENT The meeting adjourned at approximately 9:23 p.m. Minutes transcribed and epared by: L44t-&_ 1 0ZUI-1�01 Carol L. Freas, ditClerk 0 sy Ar, ROW