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HomeMy WebLinkAbout1998-05-06 Council MinutesAaMDA RNAI CITY COjWCV . R JWAY 6, 1998 ARM 1`INti KEIITAI CITY 7•18• COUNCIL CRRB http: /l�.Reaal.aet/pity O pF Appeal of TOm a' Viold Vsniol� OF A,D�U tie Appeal of Reatausaata Nortl►wea A. ALL TO p 81 t IBurger 1 • Pledge of Allegiance 2• Roll Call �3. Agenda Approval 4• Consent A en da *All items listed with non -controversial b an asterisk (*) are considered There will be no se Y the Council and will be a to be routine and Memberso a separate discussion of these itemr&ved by one motion. Consent Agenda andts, in which case the item unless a Council Agenda and considered in its norms removed from the as part of the General Orders. �luenCe on the agenda B. C DULED PUDLIC C (10 Minutes) 1. Rearq Novak _Cook Wet Council on Alcohol & Dru Abuse C. PUBLIC il' eutsr.�Q _ _ g 1. O4 d� ae No. 1779-98 - .20.150 to Prevent the S ending the Kenai Zotiin Permit Applications From a or Subs 8 Code at KMC Substantially by Similar Conditional Use Commission More Than onceeen Ar y lft Considered by the Plannin Y Nine -Month Period, g 8a Zoning a. Remove from table. b. Consideration and action. 2• Resolu"oa No 98 Master Plan Report. 2S ' Transferring Funds for Purchase of Airport 3• Resolutioa No. 98- . • 26 - Transferring for Airport Lighting Electrical Ts•�.g2,500 in the Airport Lands ds Fund t _c 4. Resolution No. 98-27 - Awarding a Contract to Wilkes Quality Floors for Kenai Public Safety Building Carpet Replacement - 1998 for the Total Amount of $30,734.00 Which Includes the Base Bid and Additive Alternate. D. �oBloM�co"�`.rRTB 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report • • 1. *Regular Meeting of April 15, 1998. 2. *Budget Work Session Notes - April 8, 1998 3. *Budget Work Session Notes - April 22, 1998 H. NEW BVBII 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1780-98 Increasing Estimated Revenues and Appropriations by $1,156 in the Senior Employment Title V Fund. 4. *Ordinance No, 1781.98 - Replacing -the Tables Referred to in the Personnel Regulations (Title 23) to Establish a New Salary Structure by Grade and New Hourly Rates for Part -Time Employees. _2„ 5. *Ordinance No. 1782-98 - Appropriating $600,000 of grant Funds for '98 Water System Improvements. 6. Discussion - Challenger Agreement ?. Discussion - Scheduling Hoard of Adjustment Hearing - Denial of Variance for Off -Premise Sign/Tract A-2, Evergreen Tract A Re - Subdivision - Jerry Stock, Appellant. 8. Approval - Change Order No. 4 - Alaska Regional Fire Training Center/Alvan General, Inc. - $45,643.00. 9. Approval - Special Use Permit Renewal/TSN, R11W, Sec. 9, Lot 3, Patent A-032678, City Dock to Snug Harbor Seafoods. UTIVE $E88ION - None Scheduled. I. M ITM AT 02 REPaRTB 1. Mayor 2. City Manager 3. Attorney 4. City Clerk • 5. Finance Director 6. Public Works Director 7. Airport Manager J. DIU_88m 1. Citizens (five minutes) 2. Council • -3- KENAI CITY COUNCIL - REGfULAR MEETING MAY 6, 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS �tt_n:/ /wvv�v.Keaa�ai.net/city MAYOR JOHN J. WILLIAMS, PRESIDINGI WDARD OF ADJUSTMENT Qr - Appeal of Tom & Vicki Frnichantie BOARD OF ADJUSTMENT [EA►RTRQr - Appeal of Restaurants Northwest (BUSer King) s PTO Mayor Williams called the meeting to order at approximately 7:29 p.m. in the Council Chambers in the Kenai City Hall Building, after hearing the appeals of Tom & Vicki Fruichantie and Restaurants Northwest, Inc. The Pledge was stated at the beginning of the Fruichantie appeal hearing. A-2. ROLL_,CA1.L Roll was taken by the City Clerk. Present were: Measles, Bannock, Smalley, Williams, Bookey, Swarner and Moore. A-S. Mayor Williams requested the following changes to the agenda: ADD AS: Information Item No. 5 - Invitation to KPB/EDD 1998 Economic Outlook Forum. ADD AS: Information Item No. 6 - 5 / 3 / 98 AML Fax Alert MOTION: Councilman Smalley MOVED for approval of the amended agenda and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. A-6. • ; _,.- c LILJ—` -_- Mayor Williams stated he had no changes to the consent agenda. • KENAI CM9l COUNCIL MEETING MAY 6, 1998 PAGE 2 0 MOTION: Councilman Smalley MOVED for approval of the consent agenda as presented. There were no objections. 60 ORDERED. B-1. Henry Novak - Cook Inlet Council on Alcohol & Drug Abuse Mayor Williams reminded council he spoke briefly to them during a budget hearing about the proposed building CICADA is interested in building. The building would be used as a residential treatment facility for the treatment of drug and alcohol abuse. Williams added, he suggested Novak come before coirncil to discuss the matter. Mr. Novak introduced himself as the Director of the Cook Inlet Council on Alcohol & Drug Abuse (CICADA) and his home address as 810 Salmon Run, Kenai. Novak explained, a needs assessment completed by CICADA and the State of Alaska expressed the need for a residential treatment facility brought about by the closure of the Family Recovery Center in Soldotna. He added, the State put out a grant, for which they are applying, however, the grant requires a ten percent community in - kind. He spoke with Williams and asked if the city would consider donating land on which to build the facility. Novak referred to the floor plan which was included in the packet. He noted, a local builder donated his time and designed the building to meet the needs. He added, person® using the facility would be there for 30 to 60 days. While there, the individual makes a commitment to stay substance free. At this time, there is no other place on the Peninsula that offers residential treatment. Novak also explained, the facility would house both male and females. He noted, those needing this type of residential treatment are predominantly male, however and. there is some help for women through WRCC. Those using the facility would have to be alcohol free to come into the facility. Novak added, CICADA owns their office building and would also own the residential treatment facility. The grant is for the building only and does not include funding for operations. He requested council to issue a letter stating the city will consider donating land on which to place the facility. At this time, staff from the Central Peninsula Hospital has offered to donate time to train his counseling staff to do the treatment. After the facility is up and running, they will discuss funding for staffing with the State. e KENAi CITY COUNCIL MEETING MAY 6, 1998 PAGE 3 Williams noted, CICADA was trying to meet the grant deadline. He asked council if . they were interested in forming a partnership to donate land for this project and then make a, determination on the location of the property. Moore stated he would be hesitant to commit without further information as there could be some thought the facility would be a half -way house which the public may not want. Novak stated he understood, and that was why he told them they were not particular as to the location of the facility. Bookey stated his concern of where to locate this facility as he was unaware of any city property which he or the community would find acceptable. Williams suggested along Marathon Road and Bookey noted, placing a facility there may not be compatible with the ARFF in the future. Councilman Measles asked Attorney Graves if there would be a way for the city to write a letter showing interest in the project to satisfy the grant requirements, but not bind the city until the grant was accepted. Then council could make a final determination. Graves asked, he thought a letter could be sent stating the city16 interest in considering the donation of land or low -rate lease. That would give additional time for the city to hold public hearings to find out whether the public wants this type of facility in the city and where it might be located. Measles added, this would allow CICADA to submit their grant application, but not bind the city until CICADA receives notification of the grant award. Prior to CICADA accepting the grant, the city would have to make a firm commitment to the project and could hold public hearings, etc. MOTION: Councilman Measles MOVED for Henry Novak to talk with Attorney Graves in writing a letter following the stated guidelines. Councilman Smalley SECONDED the motion. There were no objections. 80 ORDERED. 10 _4J :i::1 :-!�- C-1. O:diaanae No. 1779-98 - Amending the Kenai Zoning Code at KMC 14.20.150 to Prevent the Same or Substantially Similar Conditional Use Permit Applications From Being Considered by the Planning & Zoning Commission More Than Once in Any Nine -Month Period. C-1a. Remove from table 0 • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 4 MOTION: Councilman Smalley MOVED to remove Ordinance No. 1779-98 from the table and Councilwoman Swarner SECONDED the motion. C-1b. Consideration of Ordinance Bookey stated he would support the ordinance as he believes the public should not have to defend their rights every 30 days. He added, he's looking forward to the future and not referring to past hearings. Measles stated he would vote against the ordinance for all the reasons the Planning & Zoning Commission discussed at their meeting. He added, it did not appear such an ordinance would have changed anything that happened to date (with Conditional Use Permits) and sees no need for another ordinance on the books. Williams asked if the nine -month period had been chosen for a particular reason. Attorney Graves answered, it was selected to be consistent with the moratorium for rezones. He noted, through his research, he did not find any other moratoriums on conditional use permits, however there are several with moratoriums on zoning (Anchorage, Soldotna and Kenai). Graves continued, the question of who decides whether an application is for something substantially similar would be initially determined by the Planning & Zoning staff. If an application is turned down because the staff determines (or Planning & Zoning Commission) it as "substantially similar," the person could appeal that administrative decision to the Board of Adjustment. Debbie Sonberg - 410 Cinderella Street, Kenai. Sonberg reported she had done some research in regard to moratoriums on conditional use permits and found the City of Fairbanks has a six-month waiting period on re -application for a "substantially similar" conditional use permit. She added, the City of Palmer does not consider re -application because they have a very strict series of steps their Commission goes through and doesn't have to make a decision before 45 days. Sonberg stated, there seems to be a feeling of urgency by the City of Kenai Planning & Zoning Commission to vote on items that maybe don't need a quick decision. Sonberg suggested reviewing the overall application process and build in time frames that keep the process from being a two -week to thirty -day procedure. Sonberg continued, the City of Palmer feels that if all the steps are taken at the commission and appeal levels, the matter can be appealed to the courts. However, there is no reason to re -apply because the situation would not change. Also, if an application was called something different, but still had the same building, same • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 5 parking, barriers, the same overall purpose, but changed from general commercial to professional offices, it would be considered substantially similar. She added, she believed the situation council just encountered could fit a substantially similar situation. Sonberg added, she was told it is a judgement call by staff as to whether a project is substantially the same or different. If it was found to be different, re- application could be made the next day and there would be no time limit. Sonberg suggested several things that could be considered along with the time limit as she feels it is just a piece of the problem. Because there is very little information provided (on the application) and the burden of proof is on the applicant, she believes they should be given more guidance as to what kind of information is needed. She noted, Palmer view zoning changes and conditional use permits somewhat the same and require a list of 16 questions be addressed by the commission. But because the commission do not have time to research the questions, they depend on the applicant and the public hearing to provide that information. They also reserve the right to delay a decision until additional information is received, if required. She suggested more of that be worked into the overall process so that there are not as many appeals. Sonberg continued, it has also been suggested the 300' radius be increased and suggested all be reviewed as a unit rather than piecemeal. Councilman Bannock stated as an example, a person owning a home in a neighborhood applied to the state to use the house as a halfway house and the conditional use permit was denied. The person returned 30 days later and applied for a conditional use permit for a bed and breakfast (which also requires a conditional use permit). Bannock asked Sonberg if she saw a substantial difference between a half -way house and bed and breakfast. Sonberg answered yes. Bannock noted, in his exarrple, both permit applications would be for the same building at the same location. Sonberg stated, those were not the only items she had pointed out and she _ didn't suggest a comprehensive idea. Bannock added, his comment was stated to note who will make the decision of what is substantial and what is not, and what is the fear. Colleen Ward - 708 Magic Avenue, Kenai. Ward stated, she was aware this is a complex issue, but shared and echoed some of the thoughts Sonberg had stated. Based on the experiences her neighborhood had just dealt with (referring to the Chumley appeals), they were very much in favor of a nine -month waiting period. She added, though a "substantially similar" concern may not have happened in the past, their neighborhood's issue could be one that could be readdressed within a 30-day span. Ward added, she approved the waiting period, however requested the issue be reviewed and expanded to include the entire application process. She suggested • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 6 major improvements could be made i.e. burden of proof, a more extensive application, so the council, commission and public will better understand what is being addressed. Ward noted, she understood Measles, comment that a e ret ec "substantially sibnilar" project had not happened before, but knows the negative impact th-application process had on her neighborhood. She added, the public process at this time for conditional use permit and the present land use table do not work together systemically and is not a healthy situation for people to deal with if it is done repeatedly. It was not in the best interest of the city as their neighborhood put in 300 to 400 hours a and it had a very negative impact on people's lives. research She requested council to consider clearly. a waiting period as a temporary solution until the She issue can be addressed more Glen McCollum Sr. - McCollum stated he believed Ward was very conservative about '+ the hours his neighbors put into the appeals with which they had been involved. He stated his approval of the nine -month waiting was not good. He asked council to "have a he artnod because repeating the process Measles stated he understood the public's comments, however the ordinance, had it been in place, would not have changed the appeals that had just taken aplace whiche made that determination their neighborhood. He added, he would vote against the ordinance. Moore asked Measles if he was determining the second application (referring the Chumley Mo appeals) to be substantially different. Measles answered, he and believed the staff and the Planning & Zoning Commission made that determination. Smalley stated he made a determination they were more_ similar than dissimilar. However, he believed Measles could be correct because an �' if the nine -month period is effect, and an application is denied anything person peed and appeal the decision. He added, he still supportedP can still the ordinance. Williams stated, diligence is the protector of democracy and with that comes a rice. He added, the system seems to have worked very well with the applications and subsequent Chumley appeals. Opinions were voiced and democracy worked. He added, council as elected officials and the Planning & Zoning Commission who are appointed by council, were there to do diligence with respect to how the communityr wants to see itself grow and operate. Williams added, he (and Measleh do not believe adding another law (without teeth and direction) can solve the problem d not democracy and would vote to leave the ordinance as it is. g Mark Schmg - 212 princess Lane, Kenai. Sehrag stated, he was comfortable about how the council treated their neighborhood during the Chumley application appeals, als , • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 9 but was not coYni'ortable with how they were treated by the Commission due to the action taken on the last Chumley application when several of the Commission were absent. Jo An Buz ell - 1:103 A1iak, Kenai. Buzzell stated she agreed with the previous public statements and added, their neighborhood group participated heavily when gathering information for their presentations. She added, council should appreciate that work. VOTE: Measles: No Bannock: No Smalley: Yes Williams: No . Bookey: Yes Swarner: Yes Moore: Yes MOTION PASSED* • six Tom: 8:12 P.M. SACK TO ORDER: 8:29 P.. C-20 Resolution No. 98-25 - Transferring Funds for Purchase of Airport Master Plan Report. MOTION: Councilman Measles MOVED for adoption of Resolution No. 98-25 and Councilman Bookey 8-2 ' 0 - D the motion. There were no public or council comments. VOTE: Councilman Measles requested There were no objections. SO ORDERED. C-3. Resolution No. 98-26 - Transferring $2,500 in the Airport Lands Fund for Airport lighting Electrical Training. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 98-26 and Councilwoman Swarner SECONDED the motion. • KENtll CITY COUNCIL MEETINQ MAY 6, 1998 PAGE 8 • There were no public or council comments. VOTE: Councilman Bookey requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-4. Resolution No. 98-27 - Awarding a Contract to Wilkes Quality Floors for Kenai Public Safety Building Carpet Replacement - 1998 for the Total Amount of $30,734.00 Which Includes the Base Bid and Additive Alternate. MOTION: Councilman Smalley MOVED for approval of Resolution No. 98-27 and Councilman Bannock 8ECONDED the motion. There were no public comments or comments from administration. City Manager Ross was asked where the low bidder's company was located. Ross noted, the three low bidders were all from Anchorage. Swarner asked if there had been any recommendations (regardir.g the company) or references requested. City Engineer La Shot answered, the city specified the carpet and included a sample of the carpet wanted. Wilkes Quality Floors stated they could supply that particular carpet. La Shot added, they did not require references to find out what their quality of work is, however, the bidder is a bonded contractor in the State. The city doesn't generally ask for verification of quality of work. Swarner - stated she was uneasy with. voting on the matter without job references. La Shot added, the bidder's licenses were in order as well. VOTE: There were no objections. 80 ORDERED. Williams noted a memorandum included in the packet which was mailed to all commission, committee and board members, informing them of a position on the Planning & Zoning Commission and an at -large seat on the Airport Commission., Williams urged council, when making appointments, to consider citizens who are pro- active and pro -development on behalf of the entire community. He added, in regard to the Airport Commission, he would like to appoint someone who feels strongly about • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 9 development of the airport to take it into the future. He requested those interested to submit applications to the Clerk or notify her of interest to be considered for transfer from another board, committee or commission. D-1. Council on Aging - Swarner reported the Council on Aging would meet Tuesday morning at 10:00 a.m. D-2. Airport Commission - Measles reported the Commission would meet on May 14, however he would not be attendance. He requested another council member to attend in his absence if possible. Williams noted the application of Lucy Lorensen in the packet which was submitted for the available FAA designated seat on the Airport Commission. It was noted the application was several years old, however Ms. Lorensen had recently been contacted and she restated her interest to be considered for placement on the Commission. There were no objections to the appointment of Lucy Lorensen on the Airport Commission. D-3. Harbor Commission - Bookey reported the minutes of the April 13 meeting were included in the packet. The next meeting is scheduled for Monday, May 11. He noted, he would be out of town and unable to attend. He asked another council member attend in his place. D-4. Library Commission - Moore reported the Commission met May 5 and a presentation was made by Sue Carter on fund raising techniques from her experience raising funds -for the construction of the KVCC. The next meeting is scheduled for June 2 for which the conferencf, room in the Library would be unavailable. Moore requested the Commission meet in the council chambers (if available). There were no objections from council. Clerk Freas will check the room schedule. D.S. Parks & Recreation Commission - Bannock noted the Commission was scheduled to meet May 7. D-6. Planning & Zoning Commission - Smalley reported he was not at the April 22 meeting due to his attendance at a budget hearing. However, the minutes of the meeting were included in the packet. He noted an encroachment permit for side yard setbacks (Bill Bryant on Ames Street) had been passed, the Commission reviewed and discussed Ordinance No. 1779-98 (passed earlier by council), and set a public hearing on amending XMC 14.20.230 to require permits for home occupations` permits. Smalley also noted Commissioner Christian had submitted his resignation, effective May 14. isKENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 10 D-7. Misaelisaeous Commissions and Coaum3ttees D-7a. BeautiScation Committe0 Swarner reported the Committee was scheduled to meet on May 12 at 5:30, however a planning session was set for 4:00 p.m. She also reported a volunteer orientation was held at Leif Hansen Memorial Park and flower beds were cleaned up. D-7b. Historic District Board - Moore reported the minutes of the Board's April 20 meeting were included in the packet. He noted, the Board participated in two review processes for development within the TSH Zone. Both passed unanimously. Moore noted the next meeting was scheduled for May 18 and that Mike Huhndorf had submitted his resignation from the Board. Moore requested a thank you letter be sent in appreciation of his service. D-7e. Challenger Board - Bannock reported the Board was scheduled to meet on May 8 at 4:00 p.m. and would discuss the agreement between the city and the Challenger group. He noted, the request for proposals were opened today and seven architectural firms submitted proposals. D-7d Kenai Visitors & Convention Bureau Board - Bookey reported a meeting of the Board was in progress. He added, he had been unformed by Director Tarr that May 5-9 was National Tourism Week; Tom d to Alaska Division of summer Tourism visited Kenai and was greatly impressed; an the hours will be, beginning May 21, 9:00 a.m. to 8:00 p.m., Saturdays, 10:00 a.m. to 7:00 p.m. and beginning May 24, Sunday Hours will be from noon to 7:00 p.m. Bookey encouraged everyone to visit the Natalie Holmes photographic exhibit which is scheduled to be at the Center in June and is being sponsored by Brenda Schoops and Paul Dale of Snug Harbor Seafoods. D-7e. Alaska Municipal League Report - Smalley reported, a two percent cut to the Safe Communities funding was made by the Legislature. A cut was also made to capital municipal grants. Smalley also noted, SB36, the education bill was being revised and would hopefully be passed. Williams reported he would be leaving for Juneau on Sunday evening as the Legislature was scheduled for closure on Tuesday night. g mere were several issues tioned, there: may be an early closure, however he would still travel to Juneau of interest to which he could address. r� . KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE11 B-3. ITZKO: • 8.1• �[OTIOlf: 0 Russ Meeting of April 159 1998 - Approved by consent agenda. Budget Work Session Notes - April 8, 1998 Approved by consent agenda. Budget Work Session Notes, - April 38, 1998 - Approved by consent agenda. • Bille to be Paid, Bills to be Ratified Councilman Smalley MOVED for approval of ItemH- I and ORDERED. an Bookey SINANDED the motion. There were no objections R-8. purchase Orden Exceeding $3,500 1110�`ION: Councilman Smalley MOVED to pay the purchase orders over $2,5009 Item H-2. There were no objections. SO 0 g-3, prance No. 1790.98 - Increasing Estimated Revenues and Appropriations by $1,156 in the Senior Employment Title V Fund. Introduced by consent agenda. H-40 Ordi:tsuce No. 1781-98 • Replacing the Tables Referred to in the Personnel Regulations (Title 23) to Establish a New Salary Structure by Grade and New Hourly Rates for part -Tune Employees. Introduced by consent agenda. • KENAI CITY COUNCIL MEETING MAY 69 1998 PAGE 12 H-6. Ordinance No. 1782-98 - Appropriating $600,000 of grant Funds for `98 Water System Improvements. Introduced by consent agenda. H-6. Discussion - Challenger Agreement Ross referred to the memorandum included in the packet and stated, it poses an alternative for a change in relationship between Challenger Non-profit and the City of Kenai. It is an alternative which was not available under the original criteria of the grant, but is now available to both groups as they understand the grant language will be written. Ross continued, originally they believed the agreement would have been similar to that of the Visitors Center where the city owns the facility and a program and contracts it out to a non-profit to run the program. The alternative that can be considered is Challenger Non-profit can be the owner of the facility. The city could secure its interest through a reversionary clause on the deed as well as restrictions on the deed on the donation of the land to protect the ci 's interests. Ross asked, as policy, which alternative council wished to follow. Discussion -opened with Bannock stating, originally he was adamant the city maintain ownership of the program, the building, assets, etc. The majority of his reasoning was because he understood that part of the grant would require the city to do that. However, since that has changed, so has his opinion of the Challenger program. Bannock continued, his plan worked on a time line. Openinj day could be scheduled at year 2000, remembering council made commitments of what it can do between now - and the opening and also made commitments through the business plan after.2000. Until opening day, there would be an arrangement similar to what there is now. After opening day, and to a future (unnamed) time, there will be a point where the city will no longer have a vested interest in the Challenger Learning Center. He repeated, there will be a time when the city, as a group, will release its obligation, in whole, to the Board of Directors of the Challenger Learning Center. This would make it a "sink or swim" type of operation. Bannock added, the subsidy would be decreased (whether it is financial, maintenance, snowplowing, etc.), to where the facility stands on its own. Bannock, referring to Ross' memorandum (second page, second paragraph) and stated his wholehearted support "...the City could protect its property interest through a reversionary clause on the deed that the property and all facilities reverted to the City of Kenai if no longer used for Challenger program." However, he had a small concern about "The City could further protect its interests by placing a restriction on the deed • KENAI CITY COUNCIL MEETING MAY 69 1998 PAGE 13 prohibiting mortgaging of the property..." because, at that stage, if there is a bank willing to lend money on it, he would like that bank to be able to make the call if the Board of Directors is able to secure a mortgage. He added, this would force the Challenger Learning Center Board to become accountable for their actions and take responsibility and do whatever they have to do to maintain their program. Williams noted, there had been a clause that if the Challenger went out of business, there would have to be a governmental agency ready to receive ownership of the building. He asked if that was still in place. Bannock noted, that was part of the Challenger's non-profit status. Williams stated, the problem he had with Bannock's plan is that he would hesitate to dissolve the city's relationship (with Challenger) to a point that if Challenger would leave, the city could end up with a building that may not be properly maintained, etc. Smalley stated, he understood the statement in Ross' memorandum to be that it would come to a point where the city would not be responsible for maintenance, etc. if the facility is turned over to Challenger and it's their facility. Bannock stated, he believed that would be specifically addressed in both the Challenger by-laws: the 4 building would still be an asset and would automatically revert. Williams asked if there was any language that specifically says that the facility, if returned to the city, would come back in the same condition as it was received. Ross stated, that type of detail had not been worked out. The restriction on the deed was solely so the city would not receive the property back, mortgaged to the hilt and money taken out of the city. Ross noted, the second paragraph of his memorandum attempted to cover that concern: council could enter into any type of a relationship under this agreement, i.e. "other services" could be any type of maintenance. Bookey stated his concern of Bannock's plan is what would happen if the Challenger had total control of the building, mortgaged it, and then it malfunctioned and they couldn't pay the mortgage. The city would have to step in and there may be a time when the city couldn't take over the mortgage. What would happen then? Bannock answered, it couldn't happen in that scenario because the mortgage restriction would be there until day zero. The city could choose not to buy them out, and then it would be up to the bank to do it. That way, the city would not lose anything because it would be Challenger's building. if they finance it and don't make the payments, it wouldn't come back to the city, it would go back to the bank who loaned the money: Bookey stated, there could, in the future, be a group that would go out and mortgage the Challenger program and walk away from it. The city would have a building that 0 • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 14 would be non -function to anything and that's not what the city's or Challenger Program has been. The plan has been to propagate the program into a successful role. Williams noted, with any 501(3)(c) or corporation, there is a lot of liabilityin the decision -making process. If the bank chooses to allow a loan based on te reputability of the board of directors, that would be the bank's decision. He added the board is backed by a no-fault policy, but all are bound by a fiduci� ' responsibility and there may be room to experiment to ensure the bondin b the board is sufficient to cover unforeseen difficulties of that nature. g Y Ross asked Bannock if he was suggesting the restrictions on the deed not be place on it, but the reversionary clause be in it? Bannock answered, if the city is in a fird Position, then the bank could say the city would have to pay it off. If the city w st in the first position, it would not be difficult to get around that so the cityis o in a not mortgage position. If there is a bill against the loan the city could offer o bu it but wouldn't be forced to buy it. Y Williams stated, he thought some fine-tuning could be done to primarilyprotect interests of the city. Moore asked, other than P t the develop and build the project, and three years off subsidies, h t is the to involvement? He asked, if that is all there is, why is the city involved an city's Challenger take on the project itself. Ross answered, in the business Plan theredoesn't discussion on maintenance of the facili P was maintenance on major structural and mechanical functionsmance, snow removal, and g of the responsibilities were based on the original idea that the facility would remain°se city's. Now, the responsibilities are up to council. the Moore stated his concern that when the board is forced to take on the responsibility and they can't, they will be gone and so will the Challenger program. The i may left with the building. He believed this a big risk. city Y be bring the Challenger to Kenai was what it ould bring o Kenai,not the reasons to Kenai. Williams stated, Just to keep it in this is the question from the beginning there: whether the city should own the building or not.mg and felt it was still Williams suggested administration take what council discussed and propose a clean answer as to how the matter can be handled. P can particular time in the future when there would be a zero obligation council if they saw a Challenger Learning Center? Bookey answered, he thought otthte the city for the city would have a three-year subsidy on the program. He added, he is still' willinge live with that program. However, the other side is if the city is going to give u g to . � P • • KENAI CITY COUNCIL MEETING MAY 6, 1998 PACE 15 LJ obligation to the building, he would want to give up the obligation to all of the building, i.e. excluding itself completely from building maintenance, snow removal, structural maintenance, beautification, etc. Measles stated he agreed with Bookey that there was a time limit on the subsidy the city would provide to the operation. That in three years, which is what was in the plan, the subsidy would stop. Unless there is a strong argument to change his mind, he would not be in favor of the city giving up ownership of the building or the land. Williams noted, endowment plans do kick in eventually and become well -enough funded to preserve programs and facilities. He added, the Challenger group is to create an endowment plan to have monies available for the future. Williams stated, he believed the city should adhere to their original three-year agreement. Bannock added, even though the business plan does not address a cash subsidy, the way it stands at this time, in ten years and a new parking lot is needed, the city could decide whether to develop the parking lot. At this time, the plan says the city will maintain ownership of the facility and all that entails, and that is what he doesn't want. Measles stated, the downside of that is if Challenger fails, at least if the city owns the building, it has control of the maintenance that has gone into the building and knows the condition of the building that will be returned back to the city. If all control is released from the building, the city could get back a shell. Measles added, referring to the removing the restriction on the mortgage, if it got to the point where Challenger had to mortgage the building for operational expenses, they won't make it. Bookey agreed. Williams added, if the city retains a certain legitimate control, the council can appoint - an overseeing group who can create a new non-profit organization to manage the program. However, there has to be a responsible party to create the next group. Williams noted, council has asked administration to massage all the points discussed and prepare a document. Ross requested clarification of what council wanted, i.e. continue ownership, a point in time where ownership passes. Williams, suggested Ross prepare documents for each side, taking all the pros and cons for each and include them into each document. Ross noted the Challenger Board would be addressing the same issue during their meeting tomorrow. He suggested he would listen to comments made by the Board and then prepare a document(s). Bill Popp - Popp stated he would represent all the comments made by council to his board during their meeting and provide as much feedback as possible for Ross to prepare the necessary documents. • KENAI CITY COUNCIL MEETING MAY 69 1998 PAGE 16 H-71 Discussion - Scheduling Board of Adjustment Hearing - Denial of Variance for Off -Premise Sign/Tract A-2, Evergreen Tract A Re - Subdivision - Jerry Stock, Appellant. Clerk Freas noted, from her memorandum included in the packet, that the letter of appeal was received on April 17 but not signed until Aprd 20. Upon advice from City Attorney Graves, the 30-day period was counted, starting from April 20. The last day to hold the hearing would be May 20. Council set the hearing for 7:00 p.m. on May 20 immediately prior to the council meeting. H-8. Approval - Change Order No. 4 - Alaska Regional Fire Training Center/Alcan General, Inc. - $450643.00. Ross explained, Item 1 of the change order would add to the construction cost of the Alcon contract. FAA participation is expected - the local share would be Mapproximately $1,300. Items 2 through 7 and 14 are items within the $2,500 allowance that council previously stated administration could make. 'Those items were completed, and were listed to advise council of the change orders and the credits. He noted, the city is slightly ahead in regard to credits to change orders. Ross continued, Item 1 of the change order was due to a mis-communication, i.e. La Shot indicated to him he requested pricing and this was communicated as construction and approximately $10,000 of the work was completed prior to cchange order approval. La Shot stated, the major part of the change order is to place a thermalbarrier under the two spill areas, which are fairly large areas where the bulk of the training_ exercises will take place. He -added, -it was not part of the project to begin with, however it was discussed during design. The people who designed the snow -melt system for the spill areas were not real comfortable with putting insulation under a large slab where there would be heavy equipment, etc. There was some question of whether that should be done. However, they felt it was a valuable item. . Continuing, La Shot noted, during construction there has been a large amount of conversation about the snow -melt system and whether it would work through the colder parts of the winter and be capable of shutting down for any periods of time. It was felt the best thing to do is to keep it running constantly. If there's any down periods and the proper temperature is not maintained to get the proper drainage off the facilities (it takes a good length of time to get the system up and running), there could be a problem. He added, the cost would be offset by the utility bills in the future. If there is an operator that is trying to make a profit, they will be looking to 0 KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 1'7 reduce utility bills and possibly shut down the system at certain tunes. La Shot added, he felt if this is installed, it could give a savings in utilities and a shorter start- up period for the snow -melt system. Bookey asked if the city would receive FAA participation on this item. La Shot answered, he spoke with an FAA representative, but he had not been able to review the matter completely. Off hand, however he didn't think there would be a problem. Bookey asked, what percentage would be paid by FAA. Ross answered, 93% from FAA and 3% from the State. Ross continued, the city would pay approximately $1,300 plus the cost of utilities. MOTION: Councilman Measles MOVED for approval and Councilman Bookey SECONDED the motion. Williams questioned the change in the gauge of the roof coping and flashing, moving it from a 22-gauge to a 24-gauge. Williams asked why it wasn't moved to a 20-gauge 0 instead. Architect Bill Kluge answered, normally on buildings he designs he specifies 22 gauge. for roof coping and fleshings. It's is a bit heavier than normally seen on a project, but he looks for the durability. However, in this instance, 22-gauge material couldn't be acquired that would match the siding. The only alternative. was to add coping that will come down over the siding and match the siding,. using a 24-gauge material. Kluge added, none was available in either 20 or 22-gauge. 0 VOTE: There were no objections. 80 ORDERED• R-9, Approval - Special Use Permit Renewal/TSN, R11W, Sec. 9, Lot 3, Patent A-0326789 City Dock to Snag Harbor Seafoods. Ross reported, the Harbor Commission reviewed this permit and recommended, the rate be increased and no people were to reside on the premises. Rose confirmed those were the only two changes to this permit from the previous permit. MOTION: Councilman Bookey MOVED for approval of the Special Use Permit Renewal/T5N, R 11 W, Sec. 9, Lot 3, Patent A-032678, City Dock to Snug Harbor Seafoods and Councilman Smalley SECONDED the motion. There were no objections. 80 ORDERED. • KENAI CITY COUNCIL MEETING MAX 69 1998 PAGE 18 P ECUTIVE SESSION -None Scheduled. ITEM I• ADSTRATION REPORTS I-l. Mayor a. Russian Visit - Williams reported he would be involved with a visit from a group of Russians from Sakhalin Island who will visit the ARFF, KVCC and City Hall on May 7. The group's visit has been organized through the University of Alaska Anchorage. Another group will visit the area on May 18. The latter group will also be from Sakhalin Island and will include its governor. b. Fish Waste Processing Plant Discussion - Williams reported approximately 15 people attended the meeting he facilitated. From this point, the discussions will be promulgated through the EDD who will work with the Kenai Chamber and its economic development committee. C. Preservation Week - Williams reminded council of the first walking tour (which was developed by the Historic District Hoard) and reception starting from the KVCC on Saturday, May 9. I-2. City Manager - No report. I-3. Attorney - Graves informed council he would be attending an out-of- state conference and would miss the May 20 council meeting. I-4. City Clerk a. I1KC Conference - Clerk Freas informed council she also would be absent from the May 20 meeting in order to attend the IIMC Conference in Mobile, Alabama. b. ALPAR Donation - Freas referred to the letter requesting a donation from the ALPAR Litter Control Crews from Suzanne Little, Director of the Boys & Girls Club (who administers the program). Freas noted the letter requested a $500 donation. However, there had been $800 included in the Legislative 97/98 budget for this donation. MOTION: • KENAI CITY COUNCIL MEETING MAY 6, 1998 PAGE 19 Councilman Bookey MOVED too approve the $800 donation which had been budgeted. Councilman Smalley the motion. There were no objections. so ol�nEl�ED. I-6• Finance Director - No report. I-6. Public Works Direalor - No report. I-7• Airport Manager - Acting Airport Manager Holland reported the April enplanement report was included in the acket. p He also reported the taxdway extension project was begun today; some construction will be done at the airport through May 11. There will be a brief pause and continued again on May 21. Iin DIBCV88I01� J-1. Citizens Debby sonberg - 410 Cinderella, Kenai. Sonberg stated she now reviewed Ordinance No. 1779-98 and noted the ordinance .back-up information did not include information she discussed at the Planning & Zoning Commission.meeting which she received from other cities, or a fax she read from Colleen Ward. She added, during that meeting, she also spoke at Persons Not Scheduled to be Heard and felt the information she discussed at that time should have been included with the ordinance. Smalley noted, council did have the information. J-a• . _ - Council Sookey - No commentsi Swarner - a. Portable 4ps - Swarner reported it was brought to her attention there were businesses in the city using portable signs. She toted the Thai House was using a folding sign in the right -of -wary. She requested administration look around town for other possible violations. b. Dairy Queen -- Swarner noted there had been a lot of garbage that has blown into the ditch in front of the Dairy Queen and needs to be cleaned up. V. Public Health Center- Swarner asked Williams the progress.of the requested funds for the proposed new Public Health Center. Williams reported the funding. had been included in the bond issue, which wont require a vote of the - people, but approval by the Legislature. Moore. - No comments. C , r� 0 KENA1 CITY COUNCIL MEETING MAY 69 1998 PAGE 20 Measles -- No comments. Bannock -- No comments. smauey - a.. Evaluatioa4 - Smalley requested evaluations be scheduled for the city manager, city clerk and city attorney. Williams suggested the matter be placed on the May 20 agenda for scheduling. Smalley requested evaluation forms be made available for council members. b. Graffiti • Smalley noted a can was made to the Public Works Department and the Police Department in regard to some offensive graffiti painted on Lawton Drive. He asked if it had been removed. Kornelis answered, an effort had been made to remove the paint, but they had not been able to and they then painted black over it. Swarner noted, a portion of the black paint was removed. Kornelis stated, they will be trying a solvent to remove the paint. The meeting adjourned at approximately 9:35 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk