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HomeMy WebLinkAbout1998-08-19 Council MinutesAGENDA KENAI CITY COUNCIL -REGULAR MEETING AUGUST 19, 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us/ ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: PUBLIC HEARINGS 1. Ordinance No. 1791-98 - Appropriating a $1,500 Donation From the Kenai Elks Lodge #2425 for Recreational Equipment. 2. Resolution No. 98-55 - Formally Accepting ADEC Grant #47546 From the State of Alaska, Department of Environmental Conservation in the Amount of $15 1,000.00 for Wastewater Planning and Design Including Treatment Plant Expansion. 3. Resolution No. 98-56 - Transferring $10,000 from Contingency to Construction in the Animal Shelter Capital Project Fund. 4. 1998-99 Liquor License Renewal - PROTEST - Alaskalanes, Inc. / Recreational Site. 5. *1998-99 Liquor License Renewals - a. Old Town Village Restaurant/Restaurant/Eating Place b. Casino Bar, Inc./Beverage Dispensary -1- ITEM D: COMMISSION / COMMITTEE REPORTS 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. Kenai Visitors & Convention Bureau board d. Alaska Municipal League Report ITEM E: MINUTES 1. *Regular Meeting of August 5, 1998. ITEM F: CORRESPONDENCE ITEM G: OLD BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Approval - Lease Application/ Lot 4, Block 1, Gusty Subdivision, Addition No. 1. - Zecee Crow d/b/a Crow Construction and Development C o . 4. Approval - Change Order/ARFF - Alcan General, Inc. / $14,793. 5. Discussion - Crow Court Assessment District. 6. Discussion - Schedule Appeal Hearing - Appeal of Planning 8. Zoning Commission's Decision on the Variance Amendment for Five Irons Heights Subdivision, Lots 1-6, Block 1. ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager WQ 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION ITEM K: ADJOURNMENT SO KENAI CITY COUNCIL - REGULAR MEETING AUGUST 19 1998 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: I Zwww.ci.kenai.ak.ust Mayor John J. Williams, Presiding ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:04 p.m. in the Council Chambers in the Kenai City Hall Building. A-1, PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Measles, Bannock, Smalley, Williams, Bookey, Swarner and Moore. A-5, AGENDA APPROVAL Mayor Williams requested the following change to the agenda: ADD AS: B-1, Kathyrn Thomas - Western States Coalition MOTION: Councilman Smalley MOVED for approval of the agenda as amended and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. 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 for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS: KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 1 of 29 1, ) B-1. Kathryn Thomas —Western States Coalition Thomas explained the Coalition would be visiting the Kenai Peninsula on August 28. Last year the Coalition took several congressmen and Speaker Gingrich to the west where he viewed several resource development projects in Wyoming and Montana. During that trip he promised Speaker Gail Phillips he would come to Alaska this year. Thomas continued, originally it was thought the delegation would visit for one week but will only be for two days. Speaker Phillips has insisted the delegation visit the Kenai Peninsula for one of those days. Thomas added, when she was asked to be involved in the event she looked at the community and thought it would be important to show that the area has worked very hard to develop its economy. She added, the area is very dependent on resource development and harvesting and they want to show the delegation the extent gone to in order to protect Alaska resources. They plan to show the delegation the industry, what federal issues affect the development and use the Kenai River to tie it all together. Thomas noted, the delegations will first hear presentations from oil and gas at the Kenai Visitors Center (two hours) . They will then be taken across the mouth of the Kenai River to Soldotna where they will lunch along the upper river. Music selections will be offered by Hobo Jim during lunch. After lunch there will be discussions to tie sport fishing, commercial fishing, management of the river, timber, protection of the Kenai watershed together. After that, the delegation will visit the Soldotna boardwalk project with a press opportunity. When flown out, they will view the beetle -kill area. The delegation will visit the area for six hours. Councilwoman Swarner asked if the delegation will visit the ARFF facility which was funded with federal dollars. Thomas answered, the Coalition asked their agenda be followed, i.e. resource development issues. Additionally, industry and agency people will make presentations and answer questions. She added, the Speaker's staff will not allow anything else to be added to the schedule. Swarner asked if the delegation will be able to see the bluff erosion at the mouth of the river. Thomas answered they are finding it hard to do that due to time constraints. However, they would like a lot of background material for the staff. She noted there are seven congressmen with over 20 staff people traveling with the delegation. Thomas stated in her discussions with representatives of commercial/ sport fishing and habitat, they felt it was important to have them visit the upper river as much as possible. Thomas continued, the bus will drive across Bridge Access Road and some narrative will be done when crossing the mouth of the river. Williams noted the Clerk had been asked to send maps (to Speaker Phillips) showing the relationship between the Visitors Center, the Church, bluff and ARFF facility. Earlier today she was told Speaker Phillips stated there would be time to visit the areas, although only drive -by KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 2 of 29 visits. Thomas stated she was unaware of those arrangements but would discuss it with Speaker Phillips. Thomas added, Phillips had final approval of the schedule for the Coalition. It was noted council felt it important the delegation visit the bluff as it is a worthwhile request as the city has worked with the Corps of Engineers and others in regard to the erosion and the bluff loss to the City of Kenai is far greater than lack of the boardwalk in Soldotna can create. Also, the trip through Old Town would include an ISTEA project, the national historic site of the Orthodox Church, the rectory, the bluff erosion and the ARFF facility (a multi -million dollar project developed by state, city, borough and federal government) . This review would take less than one-half hour. Thomas stated she would make note of his comments. Thomas explained it had been suggested the Borough, City of Soldotna, and City of Kenai sponsor a lunch for the delegation with the mayors hosting. The luncheon will be catered by a Kenai caterer at the home of Bob Penny on the river. She noted, Penny's facility will allow service to 80 people and to hold their information session. The river can also be observed. Councilman Moore stated he believed if the Coalition has the courtesy to show some interest in the projects in Kenai, it would be acceptable to participate in sponsoring the luncheon. MOTION: Councilman Moore MOVED to participate in hosting a luncheon for the Western States Coalition contingent upon interest of the Coalition in the City of Kenai. Councilwoman Swarner SECONDED the motion. Williams noted the motion was to co -host the luncheon with the Borough and City of Soldotna and that the amount for each would be approximately $600. Smalley asked for elaboration on what is "express interest." Moore stated, as long as the most recent information the Clerk received is followed through, i.e. the sites agreed upon from Speaker Phillips to the Clerk. Swarner asked what commitment had been received from the other mayors. Thomas answered they are committed and without restriction. Thomas added, the issues to be reviewed and for why the delegation was visiting, i.e. issues affecting the economy, jobs and businesses working in Cook Inlet. Thomas requested council to keep in mind that in the very short time the delegation is on the Peninsula, thirty minutes to visit areas in Kenai would be a consideration. Thomas continued with the list of industries wanting to speak to the delegation: Force Energy, Unocal (air quality issues), CISPRI (response readiness), Marathon Oil (success of 30 years producing on Federal Wildlife Refuge), CIRI (resource development/ANILCA), Phillips (LNG gas line/export licensing), Anadarko (permitting process on 3D seismic on the Kenai Wildlife Range), commercial/sport fishing KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 3 of 29 (ANILCA/federal management of Fish 8ti Game), Kenai Peninsula Fisherman's � Association (hatchery program at Hidden Lake), spruce bark beetle concerns, and biologists from Fish &Game (management). Williams stated the city wanted some recognition from the delegation so that if a city representative is sent to Washington, D.C. on a particular issue, there will be some remembrance of where Kenai is. Councilman Bannock stated he would change his position and support hosting the luncheon. He added, he hoped the delegation will recognize the jewel Kenai is and plan for more time in Kenai the next time they travel to Alaska. VOTE: Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM C: PUBLIC HEARINGS C-14, Ordinance No. 1791-98 - Appropriating a $1,500 Donation From the Kenai Elks Lodge #2425 for Recreational Equipment. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1791-98 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes MOTION PASSED UNANIMOUSLY. C-2, Resolution No. 98-55 - Formally Accepting ADEC Grant #47546 From the State of Alaska, Department of Environmental Conservation in the Amount of $15 1 000.00 for Wastewater Planning and Design Including Treatment Plant Expansion. MOTION: Councilman Smalley MOVED for approval of Resolution No. 98-55 and Councilman Bookey SECONDED the motion. -� KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 4 of 29 There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-3., Resolution No. 98-56 - Transferring $10,000 from Contingency to Construction in the Animal Shelter Capital Project Fund. MOTION: Councilman Measles MOVED for adoption of Resolution No. 98-56 and Councilman Smalley SECONDED the motion. There were no public comments. VOTE: There were no objections. SO ORDERED. Ross reported there was a possibility another resolution will be included in the next packet to address purchase of sound paneling and an alarm system for the shelter (not intentionally built into the project) which would be paid for out of the project contingency. C-4. 1998-99 Liquor License Renewal - PROTEST - Alaskalanes, Inc. / Recreational Site. Clerk Freas explained Alaskalanes was delinquent in sales and real property taxes, as well as water/ sewer and lease payments. She noted, the applicant was working with a bank to secure a loan to pay the amounts owed. However, that would not be able to take place before the 60-day deadline for the city to enter an objection passed. She added, according the city code, an objection must be filled. Williams stated discussions have occurred in the past in regard to applicants who are not able to make their payments due to slow times in their businesses. He noted, the summer months are particularly hard on the bowling alley due to it being more of a winter sport. He asked if there was some way to structure the wording of the protest to show it as a required element of council's discussion but also word it so it doesn't carry a lot of weight. Attorney Graves stated ordinarily a protest is filed and then the city works with the applicant to withdraw the protest when the amounts are paid. He added, he has had several discussions with Alaskalanes and they hope to make a substantial payment or get caught up by the end of September. He confirmed Alaskalanes is trying to get a loan through Small Business Administration and a local bank in order to work out the problem. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 5 of 29 Freas explained the city's 60 days would run out on August 25. The protest going before the ABC Board would depend on when their next meeting is held and whether it is reviewed at that time. There is a possibility the amounts owed will be paid up prior to the Board holding their next meeting. In that case, a letter withdrawing the protest can be filed. Swarner stated she disagreed with Williams as it is a black and white issue: they collected sales tax and did not pay it. MOTION: Councilwoman Swarner MOVED to file a letter of protest because of the accounts owing (water/sewer and lease payments). Councilman Smalley SECONDED the motion. Smalley suggested language be included to say the city would withdraw the protest contingent upon owed amounts being brought current. VOTE: Measles: Yes Bannock: Yes Smalley: Yes Williams: No Bookey: Yes Swarner: Yes Moore: Yes MOTION PASSED. C-5. *1998-99 Liquor License Renewals - a. Old Town Village Restaurant/ Restaurant/ Eating Place b. Casino Bar, Inc./ Beverage Dispensary Approved by consent agenda. ITEM D: COMMISSION/ OMM REPORTS D-1. Council on Aging - Councilwoman Swarner reported the next meeting was scheduled for August 25, 1998. D-29 Airport Commission -- Councilman Measles reported the Commission met on August 13 and spent most of the meeting getting acquainted with Steve Atha, the new airport manager. D-3. Harbor Commission - Councilman Bookey reported a meeting was held on August 10 and the minutes were included in the packet. He added, the KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 6 of 29 Commission discussed a proposal from Petratrovich, Nottingham &Drage in regard � to bluff erosion. The study proposed by the company will cost $5,000. The Commission felt it would be a worthwhile program. Clerk Freas noted the Commission was requesting council to change their September meeting date from September 7 (Labor Day) to the following Monday, September 14. Council had no objections. D-4. Library Commission - Councilman Moore reported he had not attended the meeting, but the minutes were included in the packet. The next meeting is scheduled for September 1, 1998. D-5. Parks & Recreation Commission - Councilman Bannock reported the Commission had no quorum. He also reported a new student representative will be needed as Alicia Brewer had resigned and will be attending college out of state. Councilman Smalley suggested Clerk Freas contact Leanna Bigham or Nate Kiel at KCHS. Williams thanked Director Frates for his coordination of the Industry Appreciation Picnic. D-6. Planning & Zoning Commission - Councilman Smalley reported the action agenda was included in the packet. The minutes will be available in the next meeting's packet. Smalley reviewed the agenda and actions taken. He noted the variance request for Five Irons Heights Subdivision brought a lot of discussion. He noted there was opposition to the variance to reduce the lot size as well as more than single-family dwellings. The Commission amended the resolution and made all lots single-family units. The resolution was passed. Smalley also noted the Commission discussed some code enforcement situations and conditional use permits in general. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee - Councilwoman Swarner reported the unapproved minutes of the Committee's last meeting were included in the packet. D-7b. Historic District Board - Councilman Moore noted the August meeting of the Board had been cancelled. It was also clarified the council would meet in a joint work session with the Board and Planning & Zoning Commission members on September 21 at 7:00 p.m. Moore also reported an article regarding the walking tour in Old Town was included in the latest issue of The Dispatch. D-7c. Kenai Visitors & Convention Bureau Board - Councilman Bookey reported the next meeting was scheduled for September 9, 1998. D-7d. Alaska Municipal League Report - Councilman Smalley reported he would be attending the AML Board of Directors meeting, August 27 and 28 in Sitka. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 7 of 29 Mayor Williams added, he too would be in Sitka for the Alaska Conference of Mayors meeting August 26 and 27. Williams noted, he would return early in order to meet the Western State Coalition delegation, but has asked Vice Mayor Measles to attend as well because he would not be able to attend the full day's event. BREAK TAKEN: 7:50 P.M. BACK TO ORDER: 8:00 P.M. ITEM E: MINUTES E-1, Regular Meeting of August 5, 1998. - Approved by consent agenda. ITEM F: CORRESPONDENCE - None. ITEM G. OLD BUSINESS - None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bills. 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 and Councilman Bookey SECONDED the motion. Finance Director Semmens explained the purchase order to Windstar is for the installation of the new finance department IBM computer system. He added, Windstar is who installed the new equipment for the Police Department and were recommended by the software firm to do the installation. Semmens added the firm was chosen for their professional expertise. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 8 of 29 H-3. Approval -Lease Application/Lot 4, Block 1, Gusty Subdivision, Addition No. 1. - Zecee Crow d/b/a Crow Construction and Development Co. City Manager Ross explained the lease is astraight-forward lease with a plan for construction of a facility. MOTION: Councilman Smalley MOVED for approval of lease application Lot 4, Block 1, Gusty Subdivision, Addition No. 1 and Councilman Bookey SECONDED the motion. Smalley reported there was some discussion at Planning &Zoning in regard to the restoration business to be included in the building. Questions asked were whether there would be pieces of cars all over the lot, etc. The comment given was the business would only coat frames there and there would only be frames on site. Bookey asked if this would not be a full body shop and there would be no car bodies on site. Answer given (from the audience) was no. Bookey noted the application stated the building would either be steel or wood construction. He asked for clarification. Joanne Farmer - The construction will be a metal building with wood framing on the outside. Bookey asked if the building would be a garage -type building. Farmer stated no, the building would be very nice. Bookey stated he did not want a garage - type style building in the main thoroughfare of Kenai. Farmer also explained, the restoration business would mainly be for restoration of classics. She also noted, a print shop will be in the front of the building and will take up the majority of the building. A small area in the back of the building will be used for the restoration business. Bookey asked if there will be a drawing of the proposed building submitted to Planning 8s Zoning or administration. Farmer stated she would submit one if requested. Moore asked if Farmer is the applicant. Farmer explained she is the business manager of Crow Construction and they will be submitting a landscape/ site plan. They plan to plant evergreens in front of the building and lava rock, or grass in the front of the building. Smalley explained the building plan and landscape/site plan will come back to Planning 8v Zoning for review and consideration. VOTE: There were no objections. SO ORDERED. H-4. Approval -Change Order/ARFF - Alcan General, Inc./$14,793. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 9 of 29 Ross explained the change order was for street lighting on the road going into the ARFF facility and was requested by ESI. The possible lessee for the upper floor would also make the same request. He added, this would be the best time to place the requested lighting. MOTION: Councilman Smalley MOVED for approval of the Change Order/ARFF to Alcan General, Inc. in the amount of $14,793. Councilwoman Swarner SECONDED the motion. City Engineer indicated two lights will be added: one located at the entrance of Marathon Road and one at the corner to the right. A third light, included in the plan for the building, will serve the entrance to the facility. . VOTE: There were no objections. SO ORDERED. H-5. Discussion - Crow Court Assessment District. Ross explained the code directs the information in regard to the request for paving at Crow Court be brought to council for review and consideration. If council wishes to proceed with the assessment district paving project, administration should be directed to prepare a resolution which will set a public hearing date in regard to the requested work. Bookey asked for comments from administration in regard to the $60,000 cost for the project. He added, that amount seemed low for doing the project. Ross explained, he reviewed the amounts when they were submitted. They are ten percent above the amounts actually generated ($52,000) which was received from the private .sector. Ross added, the area to be paved is small and the price of asphalt is very competitive at this time. Also, the curbs and gutters costs for the project were relatively low. MOTION: Councilman Bannock MOVED to direct administration prepare a resolution calling for a public hearing to form an assessment district for Crow Court paving project. Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED. H-6. Discussion - Schedule Appeal Hearing - Appeal of Planning 8. Zoning Commission's Decision on the Variance Amendment for Five Irons Heights Subdivision, Lots 1-6, Block 1. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 10 of 29 Ross explained, Planning & Zoning granted the variance conditioned on all lots being single-family dwellings. Because each lot can only be used for a single-family dwelling, which was not within the instructions received from council, the appeal was filed. Presently, if the Commission decision is upheld, single-family dwellings could be built as well as townhouses, with a conditional use permit and a variance for lot size (a code procedure would allow two townhouses being built on the same lot with a zero lot line and common wall) . The Commission's decision will not allow duplexes as directed by council to be allowed in Block 1. Ross continued, if council takes no action at this meeting, he will continue the appeal and make a presentation before the Board of Adjustment. If townhouses (considered a single-family dwelling by code) fits the plan council has in mind, he will withdraw the appeal. Bookey stated he would like to continue with the project and not go through the appeal process. Direction was given and the Commission turned it down. He added, he wants the lots up for sale and on the market so construction can begin this fall or next spring. Bookey added, he hated to see the process delayed any further. Williams asked Attorney Graves, since council gave direction to the Commission as to what they wanted to do with the property and they amended the directions to the opposite of what council wanted, does council have recourse without going through an appeal process. Graves answered, no. He added, the Commission has the authority to grant or deny variances. They did so and the procedure is to go through the Board of Adjustment. Graves noted, if council wants to overturn the Commission's decision it would have to be the appellant and the city manager administration. Smalley agreed with Bookey as he didn't want to see further delays in the development. He encouraged council to review the Commission minutes because the public and Commission testimony was pretty adamant about single-family units. Smalley added, there could be another potential protest from individuals who felt the lots need to be 20,000 sq. ft. There was a suggestion the city replat. Bookey noted, when council discussed the design of the lots, etc. and sent the information on to the Commission, some council felt there would be individuals wanting to build a multi -family dwelling. The zero lot line/ condominium on the lots would be acceptable. The property owner could go through a conditional use permit process and if it is denied, could still appeal it to the council. He added, in reality he thought council could get what they wanted done and not delay the project. Williams asked Ross, if a person buys a lot and then makes an appearance before the Commission and asks for a conditional use permit and denied, he can come before council on appeal. He added, he felt there would be a problem if philosophies change on the council and he didn't know if that would be the proper way to solve the problem. Bannock stated his concern the council was in some serious unchartered waters because council seems to be in a philosophical contest with one of its appointed KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 11 of 29 commissions. He added, he didn't know if this would be the way to solve the problem. Bannock continued, in speaking with a realtor and Ross, some of his concerns he shared with council can be addressed. He added, there are differences between duplex, zero lot line, townhouse and condominium, although his concerns can be addressed through the conditional use permit process. Bannock stated he would prefer allowing the matter to stand as it is. He added, he preferred the appeal be withdrawn and the lots be marketed as soon as possible. Smalley referred to the minutes of the August 5 council meeting when discussing this matter. He added, he too believed the appeal should be withdrawn and go forward with the sales. Williams stated he would want some assurances the constituency be given fair notice and full disclosure (maybe by including information in the bid documents, advertisements, etc.) that these are single-family dwelling lots with the opportunity to apply for a conditional use permit. Measles stated the conditional use permit could then be used on either Block 1 or Block 2 and that was not the intent of council when it last discussed the matter. He added, he was not comfortable with this and would prefer not putting the properties out to sale until the matter is settled. He added, he would not want any confusion for the people submitting bids that might come back later. Ross stated, if council chose to go forward, it could direct administration to do restrictions on the deed for Block 2 lots, single-family residents only and advertised that way. The same restrictions could be stated on Block 1 lots and indicate they could be available for conditional use permits for townhouse. Since council is the developer, it can make those types of restrictions. Graves explained he and Administrative Assistant Howard have worked on the proposed deeds and pamphlet. They had planned to include a deed covenant restriction on the one block prohibiting townhouses (as a covenant) . They will be allowed by conditional use under the code, but as the subdivider, it can be prohibited by covenant. The other block would be allowable. Additionally, Howard had included a notice in the bid documents that townhouses will have to be approved by conditional use permit and by variance so that any bidder has firm notice of the process necessary to construct a townhouse. Bookey stated if that can be stipulated, he would want to go forward. If that cannot be stipulated, then he agrees with Measles they should continue on with the appeal process. Bannock noted he was concerned (during the last meeting) with placing a deed restriction is included in Block 1, however council agreed to release the deed restriction after the lots are developed. He added, he doesn't particularly agree that is a good idea, but because council does believe one of the blocks should be deed restricted from the possibility of having townhouses on them, and if the language discussed at the last meeting is used in the deed restriction, it will be removed as soon as more than 50% of the lots are developed. He agreed, this would solve the problem and accomplish what council wants to do. Graves stated, it was his understanding when he was drafting the preliminary deed, the deed restriction dealt with enforcement of covenants and the city would only KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 12 of 29 enforce covenants until all the lots are sold and developed and/or a homeowners association is formed. He added, the restriction of townhouses on the one block would continue in perpetuity. Graves noted, that was done because when they were reviewing council's goals after the last meeting, they realized townhouses are single- family dwellings under the code and a covenant was needed in the one block to accomplish what council wants to do. He added, they believed this would be consistent with council's goals on the one block. Measles asked what the process would be if the lots are all sold, no development has taken place, and the lot owners petition to remove the deed restriction. Graves stated he knew there is a process, but would have to review Alaska law. Williams asked how much time the appeal will take, i.e. hearing, decision, etc. Measles answered 60 days. Williams asked if they would have to take the full amount of time to make a decision. Bookey stated there was nothing in the code that directs the decision had to wait 30 days - it gives 30 days in which to make the decision. Smalley cautioned taking less than the 30 days to render the decision. He added, if council could approve deed restrictions on Block 1, Lots 1-6 (single-family units and townhouses permissible through conditional use permit) and Block 2, Lots 7-13 (single-family units only excluding townhouses), he would be happy and believed it would meet the city's needs. Swarner stated she disagreed with taking the 30 days to render a decision as in the past members of council have given their individual decisions within a week. Graves suggested, if removal of the townhouse covenants on the one block is council's concern, as an option, he could write language in the deed that removal of the covenants cannot occur without permission of the City of Kenai. Williams noted, the city cannot develop airport properties without permission of FAA and saw no reason why the same condition couldn't be included on properties the city owns. He hoped progress could be made on the sale of the lots, circumventing the issue of the appeal. Swarner asked if the sale of the lots in the other block could begin or do both blocks have to be sold at the same time. Ross answered, as a matter of equity and advertising, the people buying in Block 2 should know what is being done with the lots in Block 1. He added, he thought it important to resolve the issue before any lots go on sale, especially when they are adjoining and in the same section of street. Measles stated he agreed with Ross and it was still part of his concern that if the lots are put on the market as the lots are now and the deed restrictions and covenants are included, the bidders in Block 1 will not know what they can build on the lot they are bidding on until after they buy the lot and then request a conditional use permit from the Commission. Measles added, he would not bid on an unknown at the minimum value being placed on the lots. Ross stated it was his understanding that even if the lots didn't require the variance, if sold, townhouses would still be a conditional use in that zone. The issue of whether or not a duplex would be allowed is a different issue and would be a reason to continue the appeal if that is what KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 13 of 29 council wants. However, if a person buys a lot based on being able to build a townhouse, the zone will require a conditional use and a zone change to give the buyer that assurance. Bannock stated he believed he was the only one concerned about the ability to place a duplex in the block and that could be changed. He added, with a conditional use permit, the buyer still knows what is allowable to be built automatically. What the buyer doesn't know is what could potentially be built after a conditional use permit is granted. That is why conditional use permits require public hearings, etc. Measles added, the only thing automatic in buying one of the lots now is that only a single- family dwelling can be built on the lot. Bannock added, the buyer would have the ability to ask for permission to build a townhouse. Williams stated he was not willing to accept a possibility of a sale to a resident who thinks he might be able to get a conditional use permit and then find out he can't. He added, he didn't know if a sale could be held and necessary permits received, design, and construction, etc. until spring. Williams asked Ross how much of a delay it would take if they continued with the appeal. Ross answered, once the appeal is resolved, it would be his intent to recommend to put the lots to sale at the minimum advertised this year. If all the lots are not sold, the minimum would be held and another public offering would be made in the spring. Smalley asked if council would have a concern with offering a motion to approve Block 1, Lots 1 through 6, single-family unit with a conditional use permit for townhouse development and Block 2, Lots 7 through 13 as single-family units (with the appropriate legal covenant language included) . Williams asked if a motion of that nature could supercede the Commission's authority and decision in regard to their limiting the use of Block 1 to single-family residences. Graves stated the code defines townhouses as a single-family dwelling. Williams asked how the code treats townhouses in regard to this property in this zone. Graves answered, townhouses under the Land Use Table in the Recreational Zone, are allowed by conditional use permit. He added, unless the code is changed, a conditional use permit is required to build a townhouse. Williams asked how long would the sale be delayed if they go through the appeal process. Ross answered, after setting the date, the City Clerk advertises the hearing (ten days), the hearing is held and the time to render a decision. Once the decision is announced, the documents can be modified and be to sale within the next week. He added, that would be absent further appeal by other parties of that decision (which could be a possibility). Smalley stated, once there is a decision rendered, the only appeal is through the superior court. Williams asked what the planned date of the sale was and Ross answered the date of the sale has always been contingent upon how it is to be advertised in the documents. Williams asked if the documents have to be advertised for a particular amount of time prior to the sale. Ross answered, when going to sale, they would probably give 30 days from the advertisement to the bid opening. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 14 of 29 Measles asked if the appeal was not pursued, when would the documents be advertised (considering the time it will take to write the deed restrictions, covenants, bid documents, etc.) . Graves answered, the preliminary draft of the bid documents are complete as well as the preliminary draft of the deed covenants. He added, both could be done by the end of the week. Ross added, he believed it was realistic to say the advertisements could be out by the middle of next week. The sales document has been before council in draft form. The only modifications were those council made regarding single-family dwellings and the deed restrictions the attorney has in draft form. Measles stated, it would still be the end of September before the bids would be opened if the documents were out next week. Technically, only one week and one- half would be lost by going through with the appeal and settling the issue. He added, in either case, he didn't think any homes would be built this winter. Williams asked what the vote was by the Commission to amend to single-family dwellings. Smalley answered, he believed it was one person against the rest in favor. Smalley stated the main concern came from the public in regard to increased traffic from multiple living units on lots, loss of wind break from trees being cut down (not a valid argument), public safety and speed on the street. Lot size was also discussed with only one lot meeting the 20,000 square footage. Smalley added, five people testified in the same vane and all live across from the proposed development. Smalley stated there were several comments made after the Commission's decision that "they could live with that (single-family dwellings) ." Williams asked if they meant single-family dwellings or townhouses. Smalley answered, by definition, a townhouse is a single-family dwelling. Williams asked if they understood that. Smalley answered, single-family dwelling was what was said. Bookey suggested setting the appeal hearing as soon as possible if council wanted to continue with the appeal process. Williams suggested September 2 as the hearing date. Smalley stated, the Commission made the lots single-family. By code, townhouse is a single-family dwelling. Council spoke mostly in opposition of duplexes but favored townhouses. He asked, what purpose would council be serving by appealing the matter. Ross answered, as the appellant, it is his understanding based on council's decision at their last meeting, that would be the argument he will make, i.e. to allow two- family dwelling which will allow duplexes. Williams stated, council's appeal would be to allow unconditionally single-family dwellings where the code allows townhouses with a conditional use permit. Bannock stated, he believed the consensus of the council did not want duplexes. Measles noted, the motion was to allow up to two- family dwellings in Block 1 and single-family in Block 2. Graves noted, the main difference between townhouses and duplexes was that townhouses are considered single-family dwellings and are on their own lot. He KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 15 of 29 added, if someone was to build a townhouse on a lot, they would have to subdivide it by variance and get a conditional use permit for a townhouse. A townhouse in the Recreation Zone always requires a conditional use permit (by code). Bannock added, a duplex is on one lot and a townhouse is on a single lot - the difference is the legal description of the land. Bannock asked if council had a problem with the building being there, but allowing it to be called a townhouse, it would require a change to the lot. Williams answered he had a big problem with that. Williams added, then one would have to get a conditional use permit and a variance as well (plat change, etc.). Bannock stated he would return to his original opinion that the Recreation Zone is just wrong for Five Irons Heights Subdivision because it will be carved up and changed. Swarner noted, her home is considered a duplex because it has a mother- in-law apartment, though it is in a different zone and area. She added, her point was her home is a non-traditional duplex. Ross stated, if the lots were replatted, the conditional use permit is required for a townhouse in any zone and a duplex is not. He added, in the appeal, he would ask for a two-family dwelling (which a duplex fits by definition) . Measles asked, if it had been approved as council submitted, it would have allowed up to two-family dwellings in Block 1 and an owner of a lot in Block 1 would still have the option to go through the process to build a townhouse. Graves stated yes, had it gone through as council requested. He continued, a person could go through the process of a conditional use permit and variance to build a townhouse. They wouldn't have to do that if they wanted to build a duplex as that is a permitted use. Graves reviewed the code's townhouse definition, noting the difference between duplex and townhouse is the party wall going through the two buildings and the separate lots. Graves read the code definition for zero lot line and noted it is allowed by conditional use permit as provided by the Land Use Table and may be permitted according to conditions and lot size restrictions. Smalley explained what puzzled him at the meeting, was the discussion of what council had intended as far as development in this area. They spoke specifically about what could be built on recreational property (up to a triplex). That was not the intention and they wanted to eliminate that. Williams asked again if council had the right to deny the Commission's amendment limiting the use of the properties to single-family residences. Graves answered, a public hearing process is required by code. MOTION: Councilman Bookey MOVED to set the date for appeal as soon as possible (September 2), go through the appeal process. Councilman Smalley SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 16 of 29 Ross explained, as the appellant, he would argue for two-family dwellings, which includes duplex, for Block 1 only. Williams set the hearing date for September 2, 1998, to begin at 7:00 p.m. in the council chambers prior to the regular council meeting. VOTE: There were no objections. SO ORDERED. Smalley asked if this would prevent the city from posting the properties with "for sale" signs. Ross stated he would prefer not placing the signs until after it is known how to answer questions that may arise. Measles asked if administration can continue to develop the other documents (deed restrictions, covenants, etc.) already discussed. Graves answered yes, everything will be ready. Williams noted he has a scheduled meeting in Seward on September 2 which is to begin at 9:00 a.m. He asked if he is delayed to attend the council meeting, would Vice Mayor Measles take the meeting. There were no objections. ITEM I: ADMINISTRATION REPORTS I-1. Mayor a. SouthCentral Air - Williams asked, since the closing of SouthCentral Air, would they have any difficulty in paying the city what is owed. b. Telephone Call/Sales Tax -Williams stated some residents of Nikiski brought to his attention they are being charged City of Kenai sales tax by GCI. He added, he has requested administration to check into the matter. C. Dairy Queen -Williams asked the status of the sale of the building. Ross stated the building has been shown several times recently. There is still interest being shown and one very active interest. Ross added, he has talked with Mr. Norville briefly about it and will again in the near future. I-2. City Manager a. Cunningham Park - Ross reported he met with Norville regarding Cunningham Park. Norville will be out of state for a few weeks and will contact Ross upon his return. In the interim, Ross will correspond with Chairman Gilman of Kenai Sportfishing, Inc. and indicate the council's interest. Directors Frates and Kornelis will be working within the existing property boundaries in putting together development ideas. Ross added, he told Norville the project they have proposed (like their project in Soldotna) is probably not acceptable for Cunningham Park based on the higher tides and ice situation there. � KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 17 of 29 b. Charter School - Ross reported the charter school has not yet made their formal letter of request to the Borough for use of the Kenai Elementary School. When they do, he will send the letter of endorsement council requested be sent. C. Softball Tournament - Ross reported 31 teams will be involved in the tournament scheduled for Kenai this weekend. At the same time, the Industry Appreciation Picnic will be held. Based on the tent camping facilities available and the number of people involved in the tournament, he authorized the use of the FAA grounds for any overflow. d. Gas Line/Five Irons Heights Subdivision -Ross reported the gas line placement was reviewed (amount for road boring) and that will technique will be required to service the lots for gas. The cost will be approximately $17,000. e. SouthCentral Air -Ross reported SouthCentral Air has requested a rescission of their lease effective August 21. They presently are on a payment schedule for funds owed the city. f. City Manager Absence - Ross reported he would be out of the office for a few days in order to finish his house and closing, etc. Smalley stated it was brought to his attention the gas company has a main line sitting at the golf course building on that side of the road. He asked if that would provide assistance and not have to bore under the road. Ross answered, when reviewing the distances and the charges, this is the route recommended by their engineering department. I-3. Attorney - No report. I-4. City Clerk - No report. I-5. Finance Director -- Semmens referred to the quarterly investment report included in the packet. He noted there has been a change in accounting rules which required government to record their investment earnings at market value instead of amortized costs. He explained, as interest rates move in the bond market, the city's portfolio will be worth more or less than for what it was paid and recognition of that fact will be required in the city's financial statement. A short discussion followed in regard to the loss of sales tax earnings for the second quarter of 1998. Bookey stated he was concerned a larger setback will be noted in the third quarter and asked if any major changes will be needed in the budget. Semmens stated, because of the disappointing fishing season, etc. it may get worse. Bookey stated he was concerned because the city was the only area on the Peninsula that had no gain. He added, he hoped this would not be a trend for the city and its retail industry. Williams stated he could see in his personal business there should KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 18 of 29 be concern. Ross reported the city's building permits are significantly higher than in the past and in the matter of issuance of building permits, the city is well ahead in new residences over Soldotna. Williams stated when the Outlook Forum was held, the participants all agreed the largest single factor affecting the future of the city was retail sales. He suggested the city has gone far enough in developing infrastructure (except water/ sewer development) and it is now time to take a direction to assist, helping, asking and planning for private businesses, commercial retail, etc. to move into the city. He added, that wouldn't preclude the city from involving itself in a capital project if funding is available, etc. Williams added, he believes finding out how the city can assist retail/commercial businesses in the city as its first priority. Bookey stated he agreed. I-6, Public Works - No report. I-?. Airport Manager - Airport Manager Director Atha reported he traveled to Anchorage and met with FAA representatives and will be working with them in the future. They discussed use of airport funds by the city and was told it can use airport funds for airport purposes. Both short term and long-term use. That information will be applied to the proposal received from Jim Carter to do some baseline studies and preliminary information development for the future aviation system of Kenai. Atha added, Carter's proposal was reviewed and comments added. It now has been forwarded to the attorney and will before council by the next meeting for its consideration (unless there are problems with difficult language areas) . He added, FAA was comfortable with the proposal and it gives the council the ability to move forward with their aviation system. Atha also reported they discussed the loss of air service to Kenai. FAA was very supportive and enthusiastic and will open their files to develop some connection mixes and data with all the carriers that could potentially serve the community. Atha noted, added service does not always mean the addition of a carrier. It could include air fares, scheduling changes, service points, etc. Those subjects will be reviewed in order to attract and improve service to the community. Also he visited Merrill Field and Lake Hood to get some ideas for developing general aviation service in this area as well. Swarner asked if ERA has increased their late -night flights. Atha answered no, but they are discussing the matter with them. He added, in order to fill the voids, you have to be careful in a community when you get into a monopolistic situation. Swarner noted she has already heard concerns from returning college students regarding late night flights at Christmas. Atha stated he will be watching this area of concern and will keep council informed. Williams asked if Yute Air is planning to return to the area. Atha answered, they have talked with them, but no decisions have been made at this time. He added, they will look at any carrier that can supplement service in Kenai. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 19 of 29 ITEM J: DISCUSSION J-10 Citizens - None. J-2, Council Bookey - Bookey reported he read an advertisement in the Clarion Sunday paper regarding the ARFF facility. He was initially pleased to see the advertisement. However, he was concerned to find limited housing for students is being offered. Bookey added, it was his understanding the facility was being built for economic development of the city. His concern is the organization hired to run the facility is arranging housing for students to stay at the fire station. Ross stated he concurred with the Bookey that housing people through the whole of the course had not been intended. Fire Chief Elson explained it was unfortunate the advertisement came out in that manner. He added, it is not the Fire Department's intention to openly house students during the eight -week course of the Firefighter I school. However, they want to reserve the option to assist them in having some of the students as they progress through the eight -week course to ride along with the professional firefighters from the local stations. In discussing the matter with other chiefs, they are not going to actively solicit housing students at their stations. It is more a complimentary program for the Firefighter I course. Ross added, as part of the course, the Fire Department was planning to house some students on a rotational basis, however it would not be more than two or three nights per student as part of the program. The idea is to give in-house and night -call experience, etc. Elson added, the housing would take part in the latter part of the course and the students will be rotated through all the stations. Elson noted, they do not have the facilities to house them on an eight -week basis. Smalley asked if ESI was aware of this. Elson answered, when this was first discussed with the local area chiefs, it was termed loosely that students would be housed in the stations. He added, it could have been a misunderstanding on their part. Smalley stated he concurred with Bookey and thought it acceptable to house students for a portion of time (48 hours) , but not for the overall school program. Elson stated, he has discussed with them options for housing students in the community. Generally, that particular market is younger students coming out of college or high school. They would not be spending eight weeks in a hotel. They have forwarded them to local realtors to find other opportunities for housing. Smalley and Bookey stated they had no problem with that as a part of the program. Bookey added, the advertisement did not read that way and he discussed his concern at the beginning that the facility was being developed for the private sector and there would not be a cafeteria or bunkhouse program included in the facility. Bookey KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 20 of 29 noted, the management agreement had not yet been signed with ESI and he requested it be specifically stated to ESI at this time that this will not be acceptable to do in the future. The project is to benefit the economic development of the City of Kenai. Swarner - a. Booster Club Advertisement Purchase -- Swarner referred to an advertisement request from the KCHS Football/Basketball Boosters included in the packet. Swarner asked if there were funds included in the budget for this purpose. Clerk Freas answered yes, $200. MOTION: Councilwoman Swarner MOVED to place an ad in the Kenai Football and Basketball Booster Club ad program for the upcoming season of 1998-1999 in the amount of $200. Councilman Smalley SECONDED the motion. Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. b. Municipal Park - Swarner asked if the beetle -kill trees had been cut out of the park. Parks Director Frates answered the cutting has been done for this year. Additional cutting may be done next spring. He added, 50% of the trees are still there, but individuals are coming to get the downed trees and is open to residents to take. Frates also noted the remaining downed trees will be removed and stored at the yard and used for firewood. C. Street Map - Swarner thanked the summer employees for the street map. It is very nice and Beautification members used it for judging for the city. Moore - No comments. Measles - No comments. Bannock - No comments. Smalley - a. Western States Coalition Smalley apologized for not speaking out during the earlier presentation. Smalley continued, he personally had a problem having a luncheon in Mr. Penny's home and financed by the city which could give the impression the city is more supportive of the sportfishing industry. He added, he believed there are a number of neutral facilities in Kenai or Soldotna that would have been more appropriate to hold the luncheon. Smalley continued, the many groups that will be making presentations to the delegation are important to the community, however, what he heard and wasn't said was that they didn't have time for Kenai. Smalley added, concerned him. EXECUTIVE SESSION - None scheduled. KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 21 of 29 ITEM K: i ADJOURNMENT The meeting adjourned at approximately 9 : 41 p.m. Minutes transcribed and prepared by: L' Carol L. Freas, City Clerk DATE TY CLERK KENAI CITY COUNCIL MEETING MINUTES AUGUST 19, 1998 Page 22 of 29