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HomeMy WebLinkAbout1998-07-15 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING JULY 159 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http : / Zwww. Kenai. net /city 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. B. SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Michelle Brown, Nature Conservancy - Draft Plan Update C. PUBLIC HEARINGS 1. Ordinance No. 1789-98 - Amending KM 13.05.010 to Authorize Collection of a Surcharge for Violation of a Municipal Ordinance. 2. Resolution No. 98-46 - Designating the Kenai Municipal Airport Terminal as a Smoke -Free Facility. 3. Resolution No. 98-47 - Designating a Particular Area in the Kenai Municipal Airport Terminal as a Designated Smoking Area. 4. Resolution No. 98-48 - Awarding a Five -Year Contract to Homer Electric Association, Inc. for Electric Service. 5. Resolution No. 98-49 - Formally Accepting FY99 Municipal Matching Grant Number 99 / 587-8-001 From the State of Alaska, Department of Administration, in the Amount of $214,248.00 for a Street Improvement Program. M } 6. Resolution No. 98-50 - Awarding a Contract for Accounting System Software to Systems 8v Computer Technology Corporation (SCT). 7. *1998/99 Liquor License Renewals a. Pizza Hut #9 -Restaurant/Eating Place b. Uptown Motel Annex/Back Door Lounge -Beverage Dispensary/Tourism C. Louie's/Uptown Motel/VIP Lounge -Beverage Dispensary/Tourism D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks &Recreation Commission 6. Planning 8v Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board C. Kenai Visitors &Convention Bureau board d. Alaska Municipal League Report E. MINUTES 1. *Regular Meeting of July 1, 1998. F. CORRESPONDENCE G. OLD BUSINESS 1. Cunningham Park - Redevelopment with Kenai Classic Assistance 2. Approval - Consent to Collateral Assignment of Lease - Jim C. & Erika E. Singree/ Lots 1 and 1-A, Aleyeska Subdivision, Part 3. H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 -2- 3. *Ordinance No. 1790-98 -Amending KMC 1.80.010 Increasing Mayor's Sal to $1 000 Per Month and Council ' Y �'Y � Members Salaries to $500 Per Month. 4. Approval -Special Use Permit/John Bierdeman, Far North Firewood and Timber -Logging Section 36 5. Discussion - Elks Club Sign Potential Location I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works 7. Airport Manager J. DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None scheduled. K. ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING JULY 159 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http- Z Z www. ci. kenai. ak. u s � Mayor John J. Williams, Presiding ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:33 p.m. in the Council Chambers in the Kenai City Hall Building. Williams apologized for the delay in starting the meeting, explaining council had attended the rededication of the Oilers baseball field. He noted, the field was renamed and would now be called the "Coral Seymour Memorial Field." Williams also presented an Award of Excellence of Financial Reporting to Finance Director Semmens. When accepting the award, Semmens stated the preparation and administering the budget was a team effort. 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: Moore, Measles, Bannock, Smalley, Williams, Bookey and Swarner. A-5. AGENDA APPROVAL Mayor Williams reported there were no changes to the agenda. MOTION: Councilman Smalley MOVED for approval of the agenda as presented and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. A-6, CONSENT AGENDA Mayor Williams reported he had no changes to the consent agenda. MOTION: Councilman Smalley MOVED to approve the consent agenda as presented and there were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 2 B-1, Michelle Brown, Nature Conservancy - Draft Plan Update Brown referred to the copy of the Framework for Water Quality Monitoring of the Kenai River which was included in the council packet. She explained, during the fall of 1997, a work group was formed to discuss water quality issues and develop an approach for coordinating water quality monitoring activities on the Kenai River. The Work Group included representatives from local governments, state and federal agencies, tribes, citizen groups, a university, the community college and concerned citizens. Brown also distributed a copy of an article from the Peninsula Clarion which also discussed the process and involvement in developing the plan. Brown continued, soon an article will appear in the Anchorage Daily News which will request citizens to review the plan and offer comments to the Group. She requested council and administration also review the report and forward their comments to her. Brown stated she was glad the city was involved in developing the plan. She also reported a forum would be held in the future and would be sure to let the city know the date in order for representatives to attend. Brown also announced the Work Group would now be a subcommittee of the Kenai River Special Management Advisory Board and would act as a water quality coalition and would report to the KRSMA directly. Broom also distributed a copy of Living & Playing in the Kenai River Watershed which discusses natural history, cultural information, hiking, land protection, conservation, etc. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1789-98 - Amending KM 13.05.010 to Authorize Collection of a Surcharge for Violation of a Municipal Ordinance. Williams reported a change in the State law mandates municipalities to place a surcharge on citations. Those funds will flow into the Alaska Police Training Fund and Police Standards Council. MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1789-98 and Councilman Measles SECONDED the motion. There were no public or council comments. VOTE: Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 3 MOTION PASSED UNANIMOUSLY. C-2, Resolution No. 98-46 - Designating the Kenai Municipal Airport Terminal as a Smoke -Free Facility. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 98-46 and Councilman Bannock SECONDED the motion. Pamela Hansen, 305 Riverside Drive, Soldotna. Hansen stated she spoke to council in 1993 in regard to smoking in the airport terminal. She stated she was pleased to see the attention to the matter. Hansen stated the State of Alaska passed a smoking law in 1990 which said areas of public conveyance would be smoke free if no reasonable accommodation could be made for a smoking area. She added, she believed the City of Kenai has been in violation of the law since 1990. She has always been for the airport terminal to be a no smoking area due to health concerns of her family as well as others'. Hansen continued, there is still concern regarding second hand smoke and referred to information regarding those concerns. She stated, ventilation systems cannot circulate and clean air well enough to deter health hazards from second-hand smoke. Hansen added, she believed making the airport terminal a no -smoking area would have benefits for the city, i.e. less insurance and cleaning costs, employee lawsuits, etc. Hansen stated she would also like. to see all entrances and exits kept smoke free. She noted, she was not against a separate building or area being available for a smoking area. Hansen added, she was glad to see the city was coming into compliance with Alaska law. Councilman Bannock asked if it was administration's intent to exclude the upstairs bar from the no smoking prohibition. City Manager Ross answered yes. Bannock asked if that should be delineated in the resolution. Acting Airport Manager Holland added, it was the intent to exclude the lounge because it is on its own heating system and there is no inter -tie between the lounge and rest of the terminal. He noted, if the bar was closed, there would not be enough room in the hallway outside the bar to be used as a smoking area as there is no circulation system in that hallway. Bookey stated he was under the impression this resolution, if passed, would make the entire building no -smoking. Holland added, the memorandum included in the last council packet explained the bar would be excluded from the intent of the resolution as it would be up to the lessee to determine whether or not smoking would be allowed in the bar or according to State law. KENAI CITY COUNCIL MEETING MINUTES JULY 151 1998 PAGE 4 MOTION: Councilman Bannock MOVED to add in the third whereas, "excluding upstairs lounge." Councilman Smalley SECONDED the motion. Bannock noted "excluding upstairs lounge" may be needed in the fourth whereas as well. Bannock added, he felt the exclusion of the upstairs lounge from the non- smoking regulation needs to be included in the resolution so there is no question in the future. Attorney Graves stated the resolution could be amended as Bannock had suggested or by placing (terminal) in the third, fourth and fifth whereas to define the terminal as excluding the airport lounge. Moore noted if this resolution is passed, Resolution No. 98-47 (designating a specific area as a smoking area in the terminal) would be moot. Williams stated he would vote against the resolution for philosophical reasons. He added, he felt the carpet needed to be cleaned before worrying about smoking in the building. Williams added, he did have a suggestion for Resolution No. 98-47 if action is taken on it. VOTE ON AMENDMENT: Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. Moore stated he does not support the use of tobacco, but has not received any complaints from family, friends or visitors regarding smoking in the airport terminal. He added, he didn't think smoking is good for a person's health, but also didn't think smokers should be sent outside to smoke. Moore continued, he would like to have an area in or out of the terminal designated for smoking. Bookey agreed and added, he is not comfortable sending smokers outside in the cold to smoke without some type of protection. He added, he would vote no on this resolution. Smalley stated he would support the resolution. He noted he received eight telephone calls on the issue, seven were in support of this resolution, the other in support of Resolution No. 98-47. He added, he would like to investigate putting a wind break on the outside the glass door of the building and thought this could be done with another motion after action is taken on this resolution. Swarner stated she supports the resolution as she had been contacted by numerous people over the years regarding the smoking in the terminal. She added, she believed the city needs to be in compliance and cognizant of people's health and for the KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 5 general clean-up of the airport. Swarner added, there have been cigarette butts outside the doors of the building before with smoking allowed in the airport and didn't see that as a problem. Moore asked if he could add an amendment to exclude smoking in the terminal, excluding the upstairs lounge, but with another whereas to designate an area outside the terminal. Smalley stated he understood that if Resolution No. 98-46 passes, Resolution No. 98-47 is moot. However, another motion could be passed or request administration to bring forward a cost estimate for putting up a barrier on the outside for a windbreak. Williams stated he believed Resolution No. 98-47 would remain an agenda item even if Resolution No. 98-46 passed. Smalley disagreed. MOTION TO AMEND: Moore MOVED to amend the resolution to include a whereas stating the city intends to construct or designate an area outside the terminal for smoking and equip it to protect the users from the elements. Councilman Smalley SECONDED the motion. Smalley stated his intent was to offer a motion if Resolution No. 98-46 passes to have administration investigate the possibility of building a windbreak and make a recommendation to council. Ross stated it will be brought back to council because nothing could be built for under $2,500. Bookey stated he was concerned there are seven different thoughts on the subject and didn't feel comfortable about voting either for or against the resolution. He added, he was not sure if they were voting on an enclosed area, whether it is to be inside or outside, screened, etc. He stated he would like something wherein people would be comfortable. He added, he didn't think constructing such an area would make or break the airport and would like whatever is built to be aesthetically pleasing and accommodate the rest of the public, whether they smoke or not. WITHDRAWAL OF MOTION TO AMEND: Councilman Moore requested to withdraw his amendment and there were no objections from council. Swarner asked Senior Director Porter if there was much concern from users of the Senior Center when it was designated a non-smoking facility. Porter stated it was a big issue but their board decided it would be a non-smoking facility. There were approximately two people who decided not to come to the facility anymore, but the rest of the smokers go outside to smoke, even in the cold weather. She added, they also clean up the cigarette butts too. At this time it is no longer an issue and they no longer have cigarette burns in the carpet either. Bannock stated he would support the resolution and thought council maybe too concerned about something that may or may not come. He asked what the policy is KENAI CITY COUNCIL MEETING MINUTES JULY 151 1998 PAGE 6 of other city buildings in regard to smoking. He was told City Hall is a non-smoking area and there is no designated area for smoking; the Library is non-smoking and people smoke outside; the Recreation Center is a non-smoking building and there is no designated area; in the Public Safety Building, the police side uses the garage with the outside door open and the fire side has a designated smoking area in the building. VOTE ON MAIN AMENDED MOTION: Moore: Yes Smalley: Yes Swarner: Yes MOTION PASSED, MOTION: Measles: No Williams: No Bannock: Yes Bookey: No Councilman Smalley MOVED for the airport officials and city administration to review the concept of some type of comfortable wind -break facility outside the building to accommodate the smoking public. Councilman Moore SECONDED the motion. Smalley stated he agreed with Bookey's comments that the smokers are part of the public as well and are part of the transportation system users. He added, he is pleased to see smoking out of the facility, but there is a lot of revenue available to build a comfortable windbreak. Williams requested administration also investigate the cost and possibility of installing a separate ventilation fan in the now -designated smoking area and build a glass wall between the designated smoking area to the baggage area and end it at the corner of the gift shop wall (by the door) and to the far end as well. Williams added, he believed it a double jeopardy system when it is mandated people cannot smoke in the terminal, but make them go outside in the weather. Smalley stated he believed Resolution No. 98-46 designated the terminal building as non-smoking and he would not support administration investigating costs for what Williams suggested. Swarner agreed. Bookey stated Resolution No. 98-46 was passed, is now law, and specifically states there will be no smoking in the municipal airport (excluding the lounge) . Bannock stated he agreed with Smalley. He added, Williams' suggestion for a smoking area would be more aptly placed on Resolution No. 98-47, designating a smoking area in the terminal. Smalley asked for interpretation from Graves. He asked, if Resolution No. 98-46 passed, what would happen to Resolution No. 98-47. Graves answered, it would remain an agenda item. He added, the concern would be if both passed, they would KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 7 conflict with each other. Graves continued, presumably, if there were four votes to pass the one resolution, there won't be four votes to pass a conflicting resolution. He added, passing 98-46 would not automatically remove 98-47 from the agenda. Smalley asked if the motion to investigate construction of an outside windbreak would conflict with Resolution No. 98-46. Graves answered, no. VOTE: Moore: Yes Measles: No Bannock: Yes Smalley: Yes Williams: No Bookey: Yes Swarner: Yes MOTION PASSED, C-3, Resolution No. 98-47 - Designating a Particular Area in the Kenai Municipal Airport Terminal as a Designated Smoking Area. No action taken. C-4. Resolution No. 98-48 - Awarding a Five -Year Contract to Homer Electric Association, Inc. for Electric Service. MOTION: Councilman Smalley MOVED for adoption of Resolution No. 98-48 and Councilman Bookey SECONDED the motion. Finance Director Semmens explained HEA approached the city with an offer to decrease costs of the city's annual utilization by five percent in return for a five-year contract with HEA. The decrease will amount to approximately $26,000 as an accelerated refund of the city's capital credits. Semmens added, HEA will send the city a check by July 20 of every year and at the end of the year adjustments will be made as to the exact utilization. Williams stated, this has been offered by HEA if the city will guarantee to use HEA electrical service for the next five years. Williams asked if there would be an alternative on the horizon. Semmens answered, yes this would protect HEA from that possibility. He added, it is administration's opinion that it is a good thing for the city to get the $26,000 a year while it is not known if there will be any competition. Semmens added, the $26,000 is an amount the city will get sooner than normal. The city would still get whatever capital credits any other customer would get based on HEA's board decision. The payment of the capital credits will be paid every year instead of 15 years in the future. Williams asked if electrical utilities, after constructing a transmission line, must allow all generators of electricity to flow on that line. Answer was yes. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 8 Ross explained administration looked into the future competition of electrical service. He added, there is an attempt for a trial project (in Anchorage) where a group is going to attempt to get the Legislature and APUC to force the cooperative to sell electricity to their group at the rate of production. The new company would then try to negotiate with the major consumers and broker electricity to them. Ross added, this is different that with the natural gas as it is a cooperative. They estimate the five- year contract with HEA will be more successful to the city than to wait for another company to convince the Legislature to allow them to broker out the top users and the rest of the small rate payers pick up the difference. Sandra Ghormley - Homer Electric Association. Ghormley stated how pleased they are to have the opportunity to make this offer to the city. She added, the offer clearly demonstrates how serious HEA is about keeping the City of Kenai's business and how important it is to the city and their residents. Ghormley added, the city is a key account customer and the offer is being made to their key account customers. It is a guaranteed five percent cost reduction of electric bills over a five-year period. This is being achieved through the accelerated capital credit program in return HEA wants to be the city's electric utility of choice. Bookey asked if the city gets a five percent decrease, does it mean it's coming off the backs of his constituents and general public. Ghormley answered, unique to a cooperative, they obtain their equity through their rates. Also capital credits are essentially the excess of the revenues over expenses. Since it is a non-profit organization, those are banked to the members and returned later (approximately 15 years) . When the company is in an equity position this is done if it can be done without harming the cooperative. Ghormley stated, HEA is now in that position and is able to make the offer without affecting rates. This is outside of rates altogether and any decrease in rates HEA is able to achieve will still be passed to its members. Williams asked if the city is given a five percent rate, what is happening to the rest of the customers. Will they get any kind of a break as a result of this. Ghormley stated, this is an offer to key account customers. The reason for this is if HEA should lose their key account customers, it could harm the rest of their customers through the rates. This offer is strictly for key account customers, but will not affect the rates of the general membership or the routine capital credit return. Bookey asked if the city would be losing the protection of APUC if these other companies will be able to use HEA's lines. Ghormley stated the answer at this time is no. She noted, APUC ruled to essentially protect the integrity of service territories in the State of Alaska. She added, this idea welled up as a result of a resolution in the last legislative session to form a blue ribbon committee to study deregulation or the impact of competition to the electric utility in Alaska. At this time it is not known what will happen as a result of the study but they want to be talking with the key account customers and do what they can to keep the key account customers HEA members. KENAI CITY COUNCIL MEETING MINUTES JULY 151 1998 PAGE 9 VOTE: Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. Williams noted the city did an exclusive contract with a telephone company to furnish telephones in city buildings and they now have the highest rates of pay phones on the Peninsula in City Hall. C-5. Resolution No. 98-49 - Formally Accepting FY99 Municipal Matching Grant Number 99 / 587-8-001 From the State of Alaska, Department of Administration, in the Amount of $214,248.00 for a Street Improvement Program. MOTION: Councilman Bookey MOVED for approval of Resolution No. 98-49 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED, C-6, Resolution No. 98-50 - Awarding a Contract for Accounting System Software to Systems 8v Computer Technology Corporation (SCT). MOTION: Councilman Moore MOVED for approval of Resolution No. 98-50 and Councilman Bookey SECONDED the motion. There were no public comments. Semmens explained the software should be good for three to five years if SCT continues to develop their software (which they have stated they will) . He added, there would be upgrade costs over the years however. He also noted, this cost was significantly lower than buying new software. He added, in using this software, there would be reduced training and conversion costs. Moore asked if this was the software Semmens discussed at budget time and stated he had reservations about choosing. Semmens answered yes, however SCT was now willing to develop upgrades, etc. He added, there will be other costs for installation and equipment, however it should not exceed the budgeted $60,000. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 10 VOTE: There were no objections. SO ORDERED. C-T, 1998/99 Liquor License Renewals a. Pizza Hut #9 -Restaurant/Eating Place b. Uptown Motel Annex/Back Door Lounge -Beverage Dispensary/Tourism C. Louie's/Uptown Motel/VIP Lounge -Beverage Dispensary/Tourism Approved by consent agenda. BREAK TAKEN: 8: 3 4 P.M. BACK TO ORDER: 8:59 P.M. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging - No report. D-2. Airport Commission Councilman Measles reported a meeting was held on July 9 and the minutes of that meeting were included in the packet. Williams reported he received a complaint from a local business person in regard to the high costs of advertising at the airport. He requested administration investigate the contract and note whether there is a way to break the ten-year contract. Williams continued, he believed the advertising at the Kenai airport to be the highest in the nation and felt it diabolic that money was being taken from small businesses here and sent to South Carolina. Moore asked if the contractor had an exclusive right for advertising and whether there were restrictions to materials. Acting Airport Manager Holland explained, all materials and the display have to be approved by the airport manager. Ross stated he would look into the matter. Moore stated he had a member of an organization complain to him they asked to advertise in the building and were told they could not. Holland stated that was not what they were told. Bannock noted, there was an RFP for the contract. The businesses have the ability to choose whether to advertise at the airport and he did not think the cost involved, etc. was a reflection on public policy. Williams stated he felt it was a reflection on the council to make a decision that allows a company to come into the City of Kenai KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 11 and disregard the request of the council in setting the rates. Bannock stated, the council was aware of the contractor's rates. D-3. Harbor Commission Bookey reported a meeting was scheduled for July 6, however there was no quorum He added, the Commission was short two members and urged people who may be interested to apply for the positions. D-4. Library Commission Moore reported the minutes of the July 7 meeting were included in the packet. He noted, the library had their first official regular Sunday opening. Librarian DeForest reported 93 people had been into the library during that Sunday opening. D-5. Parks & Recreation Commission Councilman Bannock reported a meeting was held on July 2 at which there was held an excellent discussion about the Kenai Municipal Park. The Commission and people who spoke at the meeting are not pleased with what is going on in the park. Bannock noted a motion was made to close the park to all vehicular traffic. Bannock asked if anything had come of that. Ross answered, discussions had been held in regard to getting handicapped access to the picnic area prior to closing the park to vehicular traffic. Councilwoman Swarner noted the correct spelling of Erik Hansen and requested a correction be made on the Parks & Recreation Commission agenda. Williams reported he had another discussion with members of the Kenai River Classic group and discussed that conversation with Ross. Williams added, the question for the potential $250,000 grant for development of Cunningham Park was discussed. Ross indicated he would send a letter to the group saying the city will participate. Ross stated he did not remember that conversation. However he did state during a council meeting engineering would need to wait until October because of summer work responsibilities. Williams stated he remembered a conversation in which Ross stated he would write a letter stating the city would do the engineering, but it would have to be done at a later date. Ross stated he would write a letter if council requests him to do so. He added, at the next council meeting he intends to present a list of commitments (to date) to the fund balance for council to review. He suggested, this grant may be something council will want to discuss at that time. Ross asked if there would be a match to the grant. Williams answered no. The group wants to find out from the city if it wants to participate in a project but to what KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 12 extent neither the group or the city has said. The group is investigating putting in $250,000 into the redevelopment of Cunningham Park and it may or may not be necessary for the city to put in cash. It may be the city will have to put in engineering services. The group would like the city engineering staff to develop a design for them to review. Williams stated he did not want to lose the opportunity if it is there and that is why it would be good to send a letter. Bookey stated he agreed with Williams and didn't have a problem going forward in that direction as long as, at this time, the city does not make a cash contribution or commitment. Williams said the only commitment would be to develop some sketches of what might be done and begin discussions. D-6. Planning & Zoning Commission Councilman Smalley reported the minutes of the June 24 and July 8 meetings were included in the packet. He noted a landscape/ site plan review was approved for Lot 4, Shaginoff Subdivision. Smalley also reported there would be some corrections to the minutes as to reference to the Seward Highway and the Challenger Center. Smalley also reported the Commission will be reviewing conditional use permit language in the city code and may consider making some changes to it. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Swarner reported the Committee met on the 14th everything is moving along well. The volunteers are busy weeding. Brochures were distributed which lists the flowers used in all the city flower beds. Swarner also noted some of the bark used in flower beds is from those trees taken down by city crews and chipped. D-7b. Historic District Board Moore reported the next meeting was scheduled for July 20 and thought he would not be attending due to fishing. Williams stated he and Ross discussed Old Town development with a representative from Congressman Young's office. They asked whether there would be funding available through the new superhighway fund to continue development of Old Town with street lights, etc. The indication was the money would come through the state and the city would have to apply to the state to obtain funding. Williams stated he would like the city to approach the state for funding to add street lighting to the bus turnout to the Chamber (and perhaps on to the American Legion building) and place an old-fashioned clock. Swarner stated she thought that a great idea and after listening to a presentation from John Horne at DOT, suggested a resolution be developed for the STIP program. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 13 Public Works Director Kornelis explained the STIP program and noted a large portion of the funding is federal. He added, every third year they review the requests for funding from municipalities. Swarner noted, extra points can be received and the resolution needs to be included in the packet for the first August meeting. Ross noted, on the STIP list is already the Forest Drive/ Redoubt project which already has a resolution and points. Ross added, the mayor was referring to a new program called VESTEA and the actual distribution of those monies and rules are not yet known. It is a new program. Williams asked if there was money left in the STIP funding could the city get a request in for additional lighting in Old Town on that list. Ross explained, the STIP list is for state roads and is not part of the Old Town project. That was a federal program different from the STIP list. Swarner asked that administration contact DOT and request information as to applying for the funds. D-7c. Kenai Visitors & Convention Bureau Board Bookey reported the minutes of the Board's last meeting were included in the packet. They have no meeting scheduled for July. D-7d, Alaska Municipal League Report Smalley reported he was unable to participate in the last teleconference however it was quite short. He referred to the July 7, 1998 AML memorandum regarding joint insurance for council to review. ITEM E: MTNITTRS E- 1. Regular Meeting of July 1, 1998. Approved by consent agenda. ITEM F: CORRESPONDENCE -- None. ITEM G: OLD BUSINESS G-1, Cunningham Park - Redevelopment with Kenai Classic Assistance Discussed earlier at Parks & Recreation Commission report. G-2. Approval - Consent to Collateral Assignment of Lease - Jim C. & Erika E. Singree/Lots 1 and 1-A, Aleyeska Subdivision, Part 3. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 14 Ross reported a memorandum was included in the packet for council information. He noted, at their last meeting, council approved a normal assignment of lease. This document is an additional requirement. Attorney Graves stated this is a form required by SBA (the loan guarantor). Some of the terms were changed to reflect the city code. It is the city's intent that all lease payment delinquencies, water/sewer and sales taxes be paid prior to the closing and will be current before the city formally signs off on the collateral assignment. MOTION: Councilman Bannock MOVED for the council to approve the Collateral Assignment of Lease as outlined in the memorandum. Councilman Bookey SECONDED the motion. VOTE: Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley 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: Councilman Smalley MOVED to approve the purchase orders exceeding $2,500. There were no objections. SO ORDERED. H-3. Ordinance No. 1790-98 - Amending KMC 1.80.010 Increasing Mayor's Salary to $1,000 Per Month and Council Members' Salaries to $500 Per Month. Introduced by consent agenda. H-4. Approval - Special Use Permit/John Bierdeman, Far North Firewood and Timber - Logging Section 36. KENAI CITY COUNCIL MEETING MINUTES JULY 152 1998 PAGE 15 Williams referred to the memorandum included in the packet in regard to the request for the special use permit. Ross stated administration recommends council approve the new special use permit. He added, it appears Bierdeman has worked closely with State Forestry and has done a very good job. MOTION: Councilman Smalley MOVED to approve the special use permit with John Bierdeman, Far North Firewood and Timber, Logging Section 36, as drafted. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. H-5. Discussion - Elks Club Sign Potential Location Williams reported he had been requested to petition the city on the behalf of the Elks Club to allow them to locate a sign along the highway which would direct visitors to the Elks Club facility. Williams indicated to them if the sign would be located on state property, they would need DOT's approval. Williams referred to information included in the packet which showed two parcels owned by the city, i.e. Ryan's Creek (conservation zone) and property between the Katmai and Ryan's Creek. Williams added, if allowed to use the property, the sign would still have to comply with the city's sign ordinance and any regulations covered by the State. Bookey stated he had no problem with the request, but asked if the Elks Club had investigated using the blue state informational signs which he thought would be more effective for them than this. Williams stated he discussed that with them, but was unsure of the size sign they want to place. Swarner asked if they were wanting to leave the sign there permanently. Williams answered, he thought so or until the city decided to use the land for something else. Swarner referred to council's approval of placing a sign on city property by a local builder, however it was for a temporary sign. She added, she objected to allowing organizations / companies placing signs permanently on city property. Williams suggested they could have a $1 /year lease to place the sign. Bookey stated he would like them to explore the possibility of having blue state sign placed first before making a commitment. He stated he was concerned the council would be setting a precedent for future requests. Williams stated he would take with the Elks Club about the type of sign and size ITEM I: ADMINISTRATION REPORTS KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 16 I-11 Mayor a. Artist Request - Williams reported he had received a request from a group of several local artists who would like to paint fish and other sea life on the pillars along the beach (those protecting the dunes) . Swarner stated she would like to have them submit a plan. Williams asked, if council approved a plan, would council consider furnishing the paint, etc. Council agreed the artists should first submit a plan before making any other determinations. b. Senator Murkowski Visit - Williams noted Senator Murkowski would be visiting the area on August 21 and 22 to attend Spruce Bark Beetle hearings and the Industry Appreciation Picnic. Williams asked if council would like to invite him to meet with council prior to the picnic. Williams added, he would like to talk to the Senator regarding the proposed airport development. Clerk Freas was asked to check on the Senator's availability for either day. C. Airport Base Line Study - Williams reported, in discussing the future development of the airport with Congressman Young's representative, it was indicated the city should continue to correspond with them and send them all copies of letters to FAA, etc. In addition, it was brought to his attention Congress is now in the Appropriations Committee period. Williams stated, he believed it important he write a letter to Congressman Young and request $5 million be appropriated to do geo- technical engineering design studies of a new international airport. Williams continued, the Appropriations Committee makes the appropriation, but no funding will come until it is authorized. However, by getting the request into the appropriations bill it may make the funding available in the future. Williams requested council's permission for him to write a letter to Congressman Young asking to be placed on the appropriations bill for $5 million. Bookey stated he had no objection, as long as there is no match from the city. Williams stated at this point there is no money and won't be until it is authorized. However, at some point there may be a match but it would come when the authorization is requested. The amount of a match is not known at this time, but in the past matches have been 3.12 5% for the city, 3.12 5% for the state, and 7.5 and remaining on the federal government. There were no obj ections for Williams to write the letter. KENAI CITY COUNCIL MEETING MINUTES JULY 152 1998 PAGE 17 d. Cold Water Recovery School -Williams stated he had revived the concept of developing a Cold Water Recovery School in Kenai. He noted, there is another opportunity through the Department of Transportation to again request funding on behalf of the statewide Cold Water Recovery School to be built in conjunction with the ARFF. He suggested the cost would be approximately $5 million (without a classroom). Williams requested permission from council to write a letter and request $5 million be included on the appropriations bill for this project. There were no objections from council. e. ARFF Video Equipment -Williams reported he was able to review the new audio visual equipment being placed at the ARFF building. He added, it is state of the art and very fine. f. Annuity Information - Williams referred to information distributed to council in regard to his request for annuity payments to him. He reviewed the information with council and stated he would bring the information back to council. Council had no objections to bringing the information to discuss further in the future. I-2. City Manager a. Mental Health Administration - Ross reported he met with representatives of the Mental Health Administration subsequent to council's comments and concerns stated at the last council meeting. The representatives stated they are aware they have community education awareness to do. They discussed monitoring client issues in some of the subdivisions. They are reviewing some of the areas. The primary issue is Sterling Court and the proximity of residences there. They are going to rethink the use of that facility and in the meantime it will not be used until they rethink the clientele for that type of facility. b. Juvenile Facility Site Selection - Ross reported the Site Selection Committee is making tentative selections in August and September. They have determined Wildwood is not an option which is one the city was supporting since there is a lot of infrastructure already available to them there. Ross continued, one site they are very interested in is a seven -acre site next to the Alaska State Troopers facility on Kalifornski Beach Road. A site in Kenai, Ross suggested, is five acres along Marathon Road which is part of a ten -acre parcel which was addressed by a prior resolution of council setting it aside for educational purposes. Ross added, unless KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 18 council objects, this would be the site the city will offer as a proposed site for the facility in Kenai. He added, they are looking for an area of five to ten acres and this is the only area where city lands are located that would meet the size requirements and not be near residential areas. Ross noted, he included a copy of the resolution which set the property aside, as well as a plat map and minutes of the 10/3/90 meeting where the property was discussed. Williams noted the subject property is part of an overall tract of property the city has control over for the airport. He added, he was not sure the parcel is platted and subdivided in this manner. Williams added, there is other land along the road that could also be developed. Ross stated he wanted council to be thinking about this and other projects that will have a claim on the fund balance. He noted, this is one of the claims as the land would have to be purchased from the Airport Land System by the General Fund and given to the State of Alaska. He added, the reason they didn't look further down the road was because it is about as far as the water/ sewer and utilities are in place. Looking further down Marathon Road for useable property will increase costs. Ross added, Homer, Soldotna and Seward have representatives on the committee and are advocating the site by the Troopers' facility because in having a facility there, it will involve less travel time to drop off than going to Seward or Homer. Moore asked Chief Morris if this was the same facility he described before as a ten to twelve -bed facility. Morris answered, it has been suggested the facility have three secure beds and up to a maximum of 12. He added, that has not yet been determined. Another committee is working on what programs will be available at the facility. They have also discussed how many secure beds will be needed and non -secure beds. Williams noted the cost is estimated to be as high as $500,000 per bed ($5 million facility). It was explained the cost was so high due to the security issue and cost of land. Bookey stated he didn't object to administration continuing with this project, but thought it better to look for another site. He added, he didn't think this facility on this particular piece of property would be the best use for the property with the new ARFF facility, etc. in that area. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 19 Williams suggested further back Marathon Road would be a better place for this facility. The costs involved in placing water/ sewer, utilities and pave would be borne by the Airport Fund. Swarner asked if the property by the Trooper facility was state-owned. Ross stated he did not know. He added, it was made clear to him the state was not wanting to purchase any property. Swarner asked how many employees will be there. Ross answered about three. Ross added, in long term planning, he believed the state was looking at a regional facility for the Peninsula and will want room to expand for program needs. Ross stated, he would indicate the city would pick a parcel on Marathon Road and costs can be reviewed at the time the property is considered a potential site by the state. C. U.S. Department of Justice Grant - Ross reported he authorized the Police Chief to apply for a grant through the U.S. Department of Justice. He explained, the filing date came before this council meeting. He noted, if awarded, the city could begin planning for it in the FY2000 budget. If council decides to accept the grant it will pick up one-half the cost of a police officer and is a grant over a three-year period. d. Hospital Extension of Services - Ross reported he was involved in a Strategic Planning Session in regard to the new facility. The committee voted unanimously to recommend to the Hospital Board it should continue to proceed with the development of a plan with the state for a health facility in Kenai. He added, the new operators of the hospital have hired a planner to work with the local administration to put together a program. Needs are being identified that can be met in the new facility. Ross added, there is a strong interest, support and direction to work with the state in regard to the new facility. At this time, Ross added, he felt it would be a misuse of time for the city to draw up alternative RFPs. Ross continued, the hospital board is well aware that if the development of the facility is bogged down, the city will look at the opportunity to work with the state for an alternative RFP. Ross added, they plan to meet the September 15 planning deadline to begin design. There will be several meetings before then. e. Crow Court LID Request - Ross reported a citizens' petition for an assessment district at Crow Court has been submitted and will be brought to council during their second meeting in August. At this time the only viable source of funds would come from the Municipal Capital KENAI CITY COUNCIL MEETING MINUTES JULY 151 1998 PAGE 20 Matching Grants with a local assessment going toward the match on the grant because the funds were set up for street improvements. f. General Fund Deficit - Ross noted, administration projected a deficit in the operating budget of $150,000 with a top figure of $500,000 based on the full expenditure of the budget. At council's next meeting, a memorandum will be before council to show the progress of various known projects so that when council begins capital planning in October they will have knowledge of how far down they could be drawing the General Fund balance in meeting some of the projects. g. New Airport Manager - Ross reported the new airport manager would be meeting with FAA in August to work on the fund issue for the proposed airport development contract. He added, he will meet with the airport manager and Jim Carter and will make some revisions to the contract proposed by Carter. He added, he intends to have Carter report to the airport manager to keep things on tract. Ross requested council forward their comments to him in regard to the draft contract with Carter so they can be reviewed and incorporated into the agreement. Ross added, he hoped to have the contract back before council by their first meeting in September. h. Golf Course Lots/Multi-Use Recreational Facility - Ross reported all the state hurdles have been gone through as known at this time. He had hoped to have a sale package before council for approval at this meeting, contingent upon federal approval and still go out for sale in July. However, that didn't happen, but will be before council at the first meeting in August. Ross continued, the sales plan is to place a price of $32,000 as a minimum bid on the lots. Those that don't sell this year will be held through the winter on the minimum and go back out for public sale on that minimum in the spring. He noted, signs are being prepared to place on the lots as soon as permission is received to do the sale. Ross stated the most recent problem is there is gas in the area, but not in front of the lots. He noted, it's best the city go ahead and have the gas installed in front of the lots. Costs to do this will be returned to the city once houses are built and hooked up. Ross added, at the next meeting he will be bringing an ordinance forward to have read twice that night which will authorize a resolution to be prepared to have Enstar put in the gas this year. The cost for placing the lines is estimated between $10,000 and $15,000. i. Multi -Use Facility Meeting - Ross reported a meeting with the users was held with members of administration, as well as Parks & KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 21 Recreation Commission members. The consensus of the group was (in agreement with administration) to design the facility for phases and build next year. He added, the users are reviewing what they consider first phase essentials and what are alternatives. They will work with City Engineer La Shot in reviewing the previous plan and determine whether that is what is still desired. Ross added, unless otherwise directed, he would have La Shot negotiate with the same firm of architects and engineers that are doing the Challenger facility because the multi -use facility will be located on the same site and it is hoped some of the same infrastructure can be used by both facilities (parking lots, soils engineering, etc.) Williams asked if they were still considering just a covered facility. Ross answered, they are still considering a three -sided facility that is engineered and designed for acceptance of refrigeration in the future. The facility, in the future, could also be an enclosed facility. Ross added, this group wants the project, if possible, to come in the range of $600,000 to $700,000. The goal is to try not to reach into General Fund for more than $150,000 to augment the program. There were no objections stated. I-3, Attorney - No report. I-4, City Clerk Clerk Freas reported the petitions for candidacy for the October 6, 1998 election will be available in her office from August 1 through the 17 (because 15thfalls on a Saturday) . She added two council seats and one mayoral seat are up for election this year. Freas noted, if council wanted to have any propositions on the ballot, action would need to be completed by their August 19 meeting. I-5, Finance Director - No report. I-6, Public Works - No report. I-7, Airport Manager Acting Airport Manager Holland noted the enplanement and parking reports were included in the packet. ITEM J: DISCUSSION J-10 Citizens KENAI CITY COUNCIL MEETING MINUTES JULY 151 1998 PAGE 22 Jim Carter - Carter reported he had an opportunity to meet with Congressman Young's representative when he was in Kenai. He discussed the proposed development of the airport with him. Carter added, he thought the representative went away somewhat cooperative in his efforts. Carter also reported he received a telephone call from another of Congressman Young's representatives who handles airports. He requested Carter forward various information and data to him. Since then he was asked for additional information and a letter from the mayor supporting this project. Carter noted, he was asked if he would travel to Washington, DC if they felt it necessary to help do a position paper for the subcommittee. Carter stated he took the liberty to say yes. He added, he wants to get a couple airline executives to travel there as well to promote the project. Though his contract is still being negotiated, Carter asked council if they would consider reimbursing him for costs if he is requested to travel to Washington in regard to this project. He asked if council would agree to $10,000 to $15,000 for expenses. He added, he would like some leeway or liberty to know he could do this. Williams stated he didn't know how long the window of opportunity would last for getting the request for the $5 million into the appropriations bill. However, he believed the city should prepare to do that based on the assumption and make some adjustments to the contract afterwards. Williams added, council did put an extra $25,000 in the Legislative budget for other things. What those other things are, was not known. However, if it becomes necessary to address the appropriations budget, he believed using some of those funds is worth their consideration. Bookey stated he was not comfortable in going in any direction until the contract is signed and it is known where they are going with the project and from where the funds are coming. Bookey added, he said from the very beginning he was not interested in taking any money out of the General Fund for this project. He stated he would not support this. Williams suggested council consider limiting it to expenses out of pocket. He added, this is a visionary project which may not happen in their lifetime. However, as Ross stated, there is no better time than now to plan for the total movement of the airport. Williams continued, to not begin the process now, he believed is worse rather than putting up some front money. He added, not getting started now could delay the review of the project for ten years. He added, council needs to consider the future. Swarner asked when Carter thought he might have to travel to Washington. Carter stated he couldn't say when it would be, but knew the data would be going before the subcommittee. Swarner asked how much money would be needed to cover expenses. Carter answered hopefully $2,500. Swarner asked Ross if, during his discussions with FAA, if he had an idea of their feeling for the development of the airport. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 23 Ross stated, he answered their questions with exception of discussing a site plan. He added, during the second week of August, the new airport manager will be meeting with FAA and they will discuss the aspect that this is not necessarily the building of an additional airport, but the future planning necessary for the Kenai Municipal Airport. In structuring the discussion that way, they hope FAA will agree to release these municipal airport funds for this project. He added, they are not looking for an additional runway somewhere else, but looking for the future of what will need to be done with this airport. Swarner asked if an immediate answer would be received from FAA. Ross stated he believed an immediate answer would be received and hopefully be favorable. Swarner asked if the answer is favorable, did Ross think the city could pay the expenses before that date. Ross answered, he believed if council was going to authorize the expenditures now from General Fund, he advised council they would be spending General Fund money. Williams asked if the occasion presents itself for Carter to travel to Washington, DC on behalf of the council in the near immediate future, is council willing to reimburse out-of-pocket expenses and travel costs. Smalley stated he has concerns in spending General Fund money, but also has concerns about the planning the council and administration does for the future direction of the city. Smalley added, there are funds set aside which have been used for other purposes. It is possible the opportunity will be there and would like council to consider expenditure of some of those funds to offset costs that will be incurred to have representation at this meeting if it is necessary. He added, he hopes it will be called for and hopes someone representing the city can go and present the city's side, purpose and direction. MOTION: Councilman Smalley MOVED to use General Fund monies of the $25,000 set aside in the Legislative Miscellaneous account. Carter stated he would defer the consulting fee and just request whatever costs it takes to get there, converse, travel, whatever. He added, he could pay the amounts from his own pocket but didn't feel that was professional or the thing to do. CONTINUING WITH THE MOTION: Smalley added, cost reimbursement not to exceed $5,000 to begin with. Councilman Bannock SECONDED the motion. Williams stated the motion was for cost reimbursement not to exceed $5,000 and those costs would be documented. Moore asked Carter if he was going to waive his consulting fee. Carter answered, he could as $5,000 helps and noted the costs would be documented. Carter stated he would waive the consulting fees. KENAI CITY COUNCIL MEETING MINUTES JULY 15, 1998 PAGE 24 VOTE: Councilman Measles requested UNANIMOUS CONSENT. Bookey objected. Moore: Yes Smalley: Yes Swarner: Yes MOTION PASSED. J-2, Council Measles: Yes Bannock: Yes Williams: Yes Bookey: No Bookey - a. Dip Net Fishery -- Asked if the city was ready for the dip netting fishery. Ross stated yes and that Bob Frates would be taking a lot of pictures. He added, administration is attempting to control and manage the program and thinks the staff has done a good job. He noted, with the onslaught, sometimes you do the best you can. Bookey stated he went down to the beach in the morning and noted the dunes have looked the best they have in years. He added, the concrete borders have been significant in helping the problems. Bookey stated there is a major erosion problem happening at the point on the outside edge. He added, this is something that needs to be watched. Bookey continued, he also thought lots of pictures needed to be taken and everything documented so that the city has a direction to take to the state. b. Kenai Elementary School -- Bookey requested administration write to the Borough and request they paint the school building as it is peeling and looking fairly unattractive. Swarner - a. Tent Camping Revenue - Swarner asked how much revenue was being brought in from tent camping. Frates answered, approximately $300 since opening this year. Swarner stated she would like larger signs placed to advertise tent camping and a larger sign advertising Municipal Park on the Spur Highway. b . Old Town - Swarner noted the new street lights in Old Town are very nice as well as the landscaping. C. Fire Training Center - Swarner reported she visited the ARFF and noted some warping of sound boards in the main classroom building. La Shot reported the manufacturer is coming to look at it and will decide whether it needs to be replaced. Swarner added the sidewalks forms are crooked in the back of the building. La Shot stated there was a meeting about that and there will be a few things done. He added, he believed the landscaping should take care of the concerns. Swarner asked what KENAI CITY COUNCIL MEETING MINUTES JULY 152 1998 PAGE 25 landscaping would be done at the facility, i.e. flowers, shrubs, etc. La Shot answered there was not much in the way of shrubs in the plans. Grass will be planted. Swarner suggested shrubs be placed along the sidewalk. d. Swarner thanked Ross for his written report and stated she was anxious to hear if FAA will fund the contract for Carter as she believes it is an exciting project. Moore - Commended the Police and Fire Departments for this assistance in the search for Mr. Copple. He noted the family really appreciated the help. Measles - Nothing. Bannock - Nothing. Smalley - Congratulations to Semmens for his award. EXECUTIVE SESSION - None scheduled. ADJOURNMENT Meeting adjourned at approximately 10:45 p.m. Minutes transcribed and pr pared by: pppRpdED By COUNCIL Carol L. Freas, City Clerk pA7E