HomeMy WebLinkAbout1997-01-08 Council Minutes• AGENDA
KENAI CITY COUNCIL - REGULAR MEETING
JANUARY 8, 1997
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://WWr.Kenai.not/oity
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.
Be SCHEDULED PUBLIC CMEMT (10 Minutes)
1. Leo Grasso - Assisted Living Facility Funding
. C. PUBLIC HEARINGS
i. Ordinanoe No. 1729-96 - Increasing Estimated Revenues and
Appropriations by $38,934 in the General Fund for Police
Department Overtime and Equipment Financed with a State
Grant.
2. *1997/98 Liquor Lioenee ReneKai - Eadiel's Frontier Liquor
Store - Package Store.
D. COMMIOSMON/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. Challenger Steering Committee
d. Kenai Visitors & Convention Bureau Board
e. Alaska Municipal League Report
is
Page 1 of 2
E. KINOTEB
1. *Regular Meeting of December 18, 1996.
F. CORRESPONDENCE
Q. OLD BUSINESS
H. If= BUSINESS
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $2,500
3. *Ordinance No. 1731-97 - Amending Kenai Municipal Code
3.05.030 and 3.25.080(c)(2) to Reflect the Change in
Administration of the Animal Control Department from
Public Works to the Police Department.
4. *Ordinance No. 1732-97 - Increasing Estimated Revenues
and Appropriations by $28,000 in the General Fund for
Contracted Services of the Interim City Manager.
0 5. Discussion - Airport Commission Recommendation for Rental
Car Spaces at Airport.
1.
Mayor
2.
City Manager
3.
Attorney
4.
City Clerk
5.
Finance Director
6.
Public Works Director
7.
Airport Manager
J. '1'lISCV881ON
1. Citizens
2. Council
K. ADJOURNMENT
•
(five minutes)
Page 2 of 2
KENAI CITY COUNCIL - REGULAR MEETING
JANUARY 8, 1997
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: / /VWG Kemal, met/city
MAYOR JOHN J. WILLIANS, PRESIDING
,ITEM
A: CALL TO ORDER
Mayor Williams called the meeting. to order at approximately
7:02 p.m. in the Council Chambers in the Kenai City Hall
Building.
A-1.
PLEDGE O!' ALLEGIANCE
Mayor
Williams led those assembled in the Pledge of Allegiance.
A-2.
MOLL CALL
Roll was taken by the City Clerk. Present were: Williams, Bookey,
Swarner, Moore, Measles, Bannock and Smalley.
A-3.
AGENDA AppjLaygL
Mayor
Williams requested the following changes to the agenda:
ADD:
B-i, eharon Anderson, Division Vice President of Columbia
Health
Network. Topic: Columbia Health Network's
involvement with Central Peninsula Hospital.
ADD:
B-2, Leo Grasso. Topic: Assisted Living Facility
Funding.
MOTION:
Councilman Smalley MOVED for approval of the agenda as amended and
requested UNANIMOUS CON88NT. Councilman Bookey SECONDED the
motion. There were no objections. 80 ORDERED.
A-4 .
Mayor Williams introduced a letter to from Commissioner Perkins of
DOT establishing the state's position on the ARFF training center.
He felt it would benefit the city in their negotiations process.
MOTIONi
Councilman Smalley MOVED for approval of the amended consent agenda
and Councilman Bookey objections. 80 ORDERED. SECONDED the motion. There were no
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 81 1997
PAGE 2
,T OCHEDULED PIIBLIC COWEN'f
Sharon Johnson, Division Vice President of Columbia
Health Network Topic: Columbia Health Network's
involvement with Central Peninsula General Hospital.
Sharon Johnson - Introduced herself and provided an overview of
Columbia Health Network.
AT EASE 7:07 to watch presentation.
READJOURN 7:450
B-29 Leo Grasso Topic: Assisted Living Facility Funding.
Leo Grasso - Introduced himself and asked for questions from
Council.
Smalley asked if Kenai would be in a position of cosigner on the
bonds. Grasso responded, "No. Absulotely not. There is no
. obligation whatsoever monetarily to the city council at all."
Grasso stated that his organization would be liable for the bonds,
even in the event of a default.
Attorney Graves felt there were circumstances where the city could
be responsible for the bonds. He stated that if the organization
was not structured to meet the IRS code at the time the bonds were
issued, and the organization is not tax exempt, then the city could
be liable, since the city represented to the bondholders that they
are tax exempt.
Moore asked why they were hampered by lack of support by FHA and
Alaska Housing. Grasso responded that they have had private
financing and that they submitted a preliminary report to HUD and
were denied a hearing. HUD had several concerns, one of them the
Homer project not being filled and is currently in foreclosure. HUD
also wanted to redesign the project and is more than willing to
take "our money" but they won't approve our project. He stated
Alaska Housing feels the same way, and also has concerns about the
facility in Homer.
Swarner asked who is responsible for the bonds. Grasso responded
that Progressive Capital felt the city wasn't responsible. He
stated he was unaware the problem brought up by the city attorney.
He stated that to his knowledge his firm was responsible for
getting the letters of credit and collateral. He stated that
Continuum Corp. would be responsible for the bonds.
•
•
KENAI CITY
JANUARY 8,
PAGE 3
COUNCIL MEETING MINUTES
1997
Swarner asked what would happen if the corporation declared
bankruptcy. Grasso responded that they have to put up collateral
and letters of credit and Continuum Corp. would be the ones to
lose.
Bookey asked if they have available financing why don't they just
go with private funding. Grasso responded that they can't get
market rates and make the project feasible. The cost would be so
high for the residents that they could't afford it. He stated that
even approaching HUD on a political level it was very difficult to
get funds out of them.
Moore asked if Continuum Corporation is a qualified organization to
receive tax exempt bonds. Graves responded that Klinkner's response
was that his role would be to represent the city and he would not
make representation that Continuum Corporation was organized to
qualify as tax exempt. He would have to rely on Continuum Corp's
council to make that representation. Klinker indicated that the
city's only security would be to hold sufficient collateral
guarantees.
Bookey asked if Klinkner was their bond counsel. Grasso responded
that they just consulted with him for advise.
Swarner asked what the City Manager thought. Ross responded that
he did not think they had addressed conduit financing in the past.
At best they were hoping of a bond rate of A. That is lower than GO
bonds. He stated that the bonds are a lesser grade than the city
would issue themselves. On the face of it the city of Kenai has- put
their reputation on the bonds. He asked if the council members
would buy the bonds individually, and if not, then maybe the city
shouldn't either. If the council decides to continue with the
process there will still be quite a bit of work to be done by
Continuum Corp. and the administration.
Mayor Williams felt the reason the Continuum Corp was before the
counsel was due to the cost of money. He felt that they have shown
that they can get market money. He stated that HUD and the federal
government are trying to get out of the housing business. He felt
Continuum Corp is trying to take on some of that responsibility. He
felt it needs to be looked at on the basis of economic development
and felt it could be a successful project. He was not entirely
satisfied with either sides explanation of conduit financing. He
urged Council to give it some consideration and felt it worth
spending a little money and time to investigate it further.
KENAI CITY
JANUARY 8,
PAGE 4
COUNCIL MEETING MINUTES
1997
Smalley asked how much it would cost to investigate the issue.
Graves stated that they already consulted with Klinkner and did not
think there would be a different opinion. He did not know how much
it would cost but probably a few thousand dollars to get a formal
written opinion.
Measles asked if there is a way to determine that the Corporation
is organized properly under the IRS code as tax exempt. Graves
asked Klinkner and he stated that he would rely on the Continuum
Corp's bond lawyers opinion and the only security the city would
have would be to rely on the Continuum Corp's financial guarantees.
Bannock asked who would be the one to verify tax exempt status. If
it wasn't the city, the bond counsel, or the bank who would it be.
Graves responded that the window of liability is only if they are
out of compliance at issuance. If they are in compliance at
issuance and later become out of compliance, then the city is not
on the hook.
Bannock asked if there is another organization that makes that
is determination of compliance other than the bond counsel. Graves
responded that he did not feel the IRS would write us a letter
informing us that they were in compliance. He felt they would make
the determination later on if they were out of compliance
Bannock asked if Klinkner were given a fee to issue a letter
stating that they were in compliance would that get the city off
the hook. Graves responded that Klinkner stated that was not his
role to issue that opinion and he would rely on the Continuum
Corp's lawyers to structure his opinion.
Swarner asked if Ross had a question since he had his hand up. Ross
stated that he may have missunderstood the question and thought the
question was about the cost of doing an exploration.
He stated that the costs not only involves the bond counsel cost,
but Title 7 of our bity ordinances. These would fall in place after
the letter of credit. He felt that if the council decided to pursue
it, he suggested making a copy of that ordinance on the next agenda
as a discussion item under Old Business and give a copy to Mr.
Grasso's group and let them see what they are going to have to go
through, since it can be quite a lengthy process.
Mayor Williams stated that if Council needs to determine if it is
worth $20-25,000 of the Council's money to study it.
. Smalley liked the City Managers idea of having the Continuum group
look at the city's Title 7 so they understand what the process is.
• RENAI CITY
JANUARY 8,
PAGE 5
COUNCIL MEETING MINUTES
1997
P. Porter - Comments
As a concerned citizen of Kenai encouraged the Council to explore
the proposal presented by Continuum Corp. Did not understand the
complex issue of bonding but felt it is important to locate a
facility such as this within the community. Felt doing business
with retirees is an excellent opportunity for the city and business
community. Felt we must offer the whole spectrum of care to attract
the older resident from independent living to assisted living.
Encouraged the council to explore the avenues available to complete
the levels of care needed to assure elders they can remain in our
community.
Mayor Williams urged the council to continue to look at the
concerns of senior housing as the problem is only going to get
worse as the population ages.
Grasso thanked the council for taking
proposal and felt that the council has
• the counc i 1' s concerns. He does not want
and would like to start on the project
0
Joanna 8ollier - Comments
the time to look at their
been fair and is aware of
the city to be responsible
as soon as possible.
Felt it is important to have this type of facility in Kenai. She
was concerned about seniors having to leave the area to receive
extended care. She reported that two individuals have had to move
from Vintage Point to other care facilities. She felt the assisted
living complex is greatly needed and urged the city to support the
project as much as possible.
Mayor Williams asked if Council wished to explore the issue
further.
Smalley felt that a copy of Title 7 needs to go to Grasso and the
Continuum Corporation.
Swarner asked to have it continued as a discussion item. Graves
stated that the information would need to be looked at by the
financial advisors of Continuum. Grasso agreed that the February
5th meeting would give enough time.
Bookey asked if it would include a business plan. Ross stated that
it would be just a review and a chance for Continuum Corp to
respond to the requirements of the city's code.
KENAI CITY COUNCIL MEETING MINUTES
• JANUARY 8, 1997
PAGE 6
TTBM CS RMIC HBAR=NOs
C-1. Ordinance No. 17-29-96 - Increasing Estimated Revenues
and Appropriations by $38,934 in the General Fund for
Police Department Overtime and Equipment Financed with a
State Grant.
MOTION:
•
•
Councilman Measles MOVED to approve Ordinance No. 17-29-96.
CouncilwomanY Swarner SECONDED. There were no objections. 80
ORDERED.
VOTE:
Bookey: Yes Measles: Yes
Swarner: Yes Bannock: Yes
Moore: Yes
MOTION PASSED UNANIMOUSLY.
BREAK TAINT: 8:30 P.M.
HACK TO ORDER: 8:44 P.M.
IT� CONMI88IONJCOKMITTEE _RBP013T8
D-1. Council on Aging
Smalley: Yes
Williams: Yes
Councilwoman Swarner reported the minutes of the last meeting -are
in the packet. She stated that there would be a meeting on the 18th
at the Senior Center from noon until 2:00. All seniors are invited.
D-2. Airport commission
Councilman Measles reports the commission meets tomorrow night.
D-3. xarbor Commission
Councilman Bookey reports the commission meets on Monday night.
D-4. Library Commission
Councilman Moore reported the commission met last night. The
Friends of Library has a membership tea on Feb. 16th from 1-4. They
adopted a library internet use policy and are looking forward to
the joint meeting with council in February. They also adopted a new
library fines and fees schedule.
KENAI CITY
. JANUARY 8,
PAGE 7
D-5.
•
COUNCIL MEETING MINUTES
1997
Parke i Recreation Commission
Councilman Bannock reported that the commission will meet tomorrow
night. Reported that the ski trails are up and good. Kenai High
School will be having a race there this Saturday. Mayor Williams
reported that he will be attending the next meeting with ideas and
suggestions he would like to implement.
D-6. Planning 6 Zoning Commission
Councilman Smalley reported that they are meeting tonight.
D-7. Miscellaneous Commissions and Committees
D-7a. Beautification Committee
Councilwoman Swarner reported their meeting is scheduled for next
Tuesday. She reported that she will be unable to attend and asked
if anyone else could attend in her place.
D-7b. Historic District Board
Councilman Moore reported the last minutes are in the packet. The
next meeting is scheduled for January loth.
D-70. Challenger steering Committee
Councilman Bannock reported yesterdays agenda is in the packet.
Discussed the plans are to remove the board from the city of Kenai.
Once the funds are transferred to the board they should become
self-supporting. Accepted a $7500 grant from the Teacher In Space
program. They will have a booth at the Village Fair again this
year. Also included Info 6 in the packet.
Mayor Williams reported that the Challenger committee members will
be on the KSRM radio next week.
D-76. Kenai visitors i Convention Bureau Board
Councilman Bookey reported they meet on Monday.
D-7e. Alaska Municipal League Report
Councilwoman Swarner reported there will be teleconferences on
• Monday the 13th and Tuesday the 14th to discuss priorities of the
Municipal League.
• KFNAI CITY
JAN[JARY 8,
PAGE 8
ITEr 83
E
MOTION:
COUNCIL MEETING MINUTES
1997
Regular Meeting of December 18, 1996.
Councilman Smalley MOVED to accept the minutes with the requested
change on page 25, Item I-6b. Third sentence should read, "The
people on Haida [KIANA] Street were upset with the wooden poles and
wanted a metal pole." Councilman Bookey SECONDED. There were no
objections. 80 ORDERED.
None.
None.
mill ans-luS88
Bills to be Paid, Hills to be Ratified
MOTION:
Councilman Smalley MOVED to pay the bills and Councilman Bookey
SECONDED the motion. There were no objections. 80 ORDERED.
Z-2. Purchase Orders Exceeding $20,500
MOTION:
Councilman Smalley MOVED for approval of the purchase orders
exceeding $2, 500 and Councilman Swarner SECONDED the motion. There
were no objections. BO ORDERED.
s
Mayor Williams asked if any other organization other than Kitchen
Express was asked to do the catering. It was handled by Carol and
there was something from Don Joses.
*Ordinance No. 1731-97 - Amending Kenai Municipal Code
3.05.030 and 3.25.080(c)(2) to Reflect the Change in
Administration of the Animal Control Department from
Public works to the Police Department.
•
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 81 1997
PAGE 9
Approved by consent agenda.
N-4. *Ordinance No. 1732-97 (Incorrectly listed on agenda as
Ordinance No. 1731-97) - Increasing Estimated Revenues
and Appropriations by $28,000 in the General Fund for
Contracted Services of the Interim City Manager.
Approved by consent agenda.
N-se Discussion - Airport Commission Recommendation for Rental
Car Spaces at Airport.
Moore reported that he has a client who is currently a lessee at
the airport.
Mayor Williams read from a memorandum to the City Manger where the
Airport Commission voted to recommend to Council at their December
12 meeting that car rental spaces at the airport be reduced from
five spaces to three. The commission noted that two of the
remaining three agencies expressed an interest in the remaining
space. Airport commission asked that they be allowed to meet with
the remaining leasees to discuss how to redistribute the remaining
rental car spaces.
Tom Thibodeau - Reported that the airport commission has noticed
that in the last few years there have been numerous turnarounds in
leasees of the car rental spaces. There are currently three
leasees who pay on a square footage basis and 10$ of sales, which
averages out to about $ 2 , 000 per year for square foot rental space.
The commission felt that there wasn't any difference whether there
were three agencies or five agencies, there will only be so many
cars rented per flight. They felt with three companies there is
still competition. Hertz and Budget have approached the commission
about renting the additional two spaces. This would leave Avis in
the middle with a small space, which could be acceptable. They
would like permission from Council to meet with all three agencies
to determine if they would like to convert the space into three
equal spaces. Hertz and Budget have offered to pay the expenses to
expand the two remaining spaces.
Mayor Williams reported that Moore's conflict is not such that he
should be precluded from discussions and asked for questions from
Council.
Bannock was concerned that the commission was asking not only to
• change the physical aspect of the spaces but to make a rule that
there would only be three agencies. Thibodeau felt that there were
•
•
•
KENAI CITY
JANUARY 8,
PAGE 10
COUNCIL MEETING MINUTES
1997
spaces that have remained vacant for periods of time and that if
there were only three spaces they would remain filled. He did not
ask for a hard and fast rule, but felt that when expansion was
discussed in the future the number of car rental agencies could
addressed again at that time. He felt another one could come in at
a later date by guaranteeing a higher amount of sales per year and
guaranteeing money to the city.
Bannock felt that was the problem he had. He reported that at one
time there were four airlines. Today there are only two airlines
and three counters. He asked if two more airlines approached the
Council would they then be turned down. He did not have a problem
with the agencies modifying the available space that is there now,
but would have a problem with Council taking a position of
determining how many would be allowed to be there. He did not feel
Council should be making marketing decisions.
Graves noted that there are other rental car agencies available
outside of the airport area.
Thibodeau did not feel that they would be limiting availability to
rent cars since anyone can rent space outside of the airport.
Bannock was concerned that no agencies be turned away by policy
b6cause the decision was made to only allow three. Thibodeau felt
that the space would all be utilized and the city would be getting
more square footage rent by allowing the remaining agencies to
occupy the existing available space.
Bookey did not support the idea of limiting the number of agencies
either. He felt if they were viable they would be there, if not,
they won • t . This year they may only support three but next year it
could be four and did not want to limit ourselves.
Thibodeau responded that the ability is still there, but felt this
would make use of what is currently there. He felt they are trying
to avoid what happened last year.
Mayor Williams reported that the administration will in all
probability be involved in making claims to the bankruptcy court.
He felt there might be more information the council might want
before making a final decision.
Ross stated that it is a question of whether to allow the three
vendors to take up the existing space, realizing the revenue to the
KENAI CITY COUNCIL MEETING MINUTES
• JANUARY S. 1997
PAGE it
r�
u
0
city is no different whether you have five or three. Without
making a policy statement, do they have a legitimate need to
reallocate the space?
Swarner stated that the rent would increase by reallocating the
existing two empty spaces. She asked if there was anyone else
interested in the empty spaces.
Thibodeau responded that the current square footage rents bring in
about $2000 per year. If the square footage were increased the
rents would increase to about $3500 if it were divided into three.
Swarner felt that as long as the space is available and the
agencies were willing to rent the space there should be no problem.
Bannock was concerned that architecturally set the policy by
remanufacturing the counter space to three. He asked "If Joe's Car
Rental comes to the city of Kenai and says I'd like to rent cars in
Kenai, what would be the administration's position there?"
Mayor Williams responded that it would probably be the same if
there were five spaces and a sixth one came in looking to rent
space. He stated that there is other space available. He stated
he would not be in favor of setting a policy saying there would
only be three in the airport. But he felt the airport commission
had justified that the present vendors want the space and are
willing to pay for it. They would like to deal with the vendors and
come back with a plan for the reallocation of space.
Bannock stated that was fine, as long as it was made clear that if
another car rental agency showed up they would not be turned away
because there are now three there.
Swarner asked if the car rental agencies would pay for the
renovation costs. Thibodeau stated that the two agencies that have
expressed an interest in the spaces have also indicated that they
would cover the costs. It could only be a matter of removing an
existing wall, leaving Avis in the center. If Avis is also
included, then that would change the cost and the structure a
little bit.
Bannock felt it should be referred back to the airport commission
to bring back a plan that they would like to see.
0
•
KENAI CITY COUNCIL MEETING MINUTES
JANUARY 8, 1997
PAGE 12
Graves stated that the airport commission is seeking permission to
discuss this with the agencies and it is appropriate for the
commission to bring it back to council once they have that
information.
Mayor Williams advised Thibodeau based on the consensus of the
council to go ahead and have the discussions with the agencies and
to bring back the reports.
ITEM I s ADMINISTRATION RBV=8
I -I* Mayor
Reported he will be going to Anchorage tomorrow to discuss FAA
firefighting school. He submitted a letter received from Joe
Perkins written at the governor indicating their support for the
project.
I-2. City Manager
No report except the holiday party is Saturday night. Wanted to
confirm if there will be liquor at the party. Response was yes.
I-3. Attorney
No report.
I-4. City Clerk
No report.
8inanoe Director
No report.
t-6. Public Works Director
11
W611hou8e Projects Kornelis received a phone call from DOT Planning
inviting the cities to a meeting on January 16 at the Kenai
Peninsula Borough Meeting Room C to discuss the program. Contacted
the DOT about the flashing lights at Main Street and Spur Highway.
The Dunes project has hauled 68 of the concrete piles. Fish and
Game showed the contractor and city where to place the piles. The
road is now lined with the piles. There are still 9 broken tiles at
Dragnet these will be hauled over to the boating facility.
KENAI CITY
M JANUARY 8,
PAGE 13
COUNCIL MEETING MINUTES
1997
Contractor is now working on the stairs and boardwalks. Wellhouse
#3 ran for about 20 hours last month. About the 21st it shut
itself down. There were some electrical problems. Wellhouse is now
up. There are still some problems, but it is now running.
Mayor Williams asked about the road project around the church yard.
Kornelis responded that the f inal plat has been recorded. The water
and sewer work is being done. There will be a public hearing soon
with Planning and Zoning, Historic board, and the property owners
so they can look at the drawings and where the lights, curbs,
driveways and such will be located. They will be inviting the DOT.
The end of this month for having the public hearing.
Mayor Williams stated the turnaround at the end of the beach
project is not acceptable. It needs to be changed in order to
work. Kornelis agreed 100%. The Fish and Game people are the ones
who laved out the turnaround.
Mayor Williams felt the circumfrance needs to be enlarged because
even a small pickup cannot turn around as it is now. Kornelis
stated he could ask them to come back down and walk around it
again.
1-7. Airport Manager
No report.
J-1, Citizens
Assemblyman Popp mentioned that on Monday, February 5 the Borough
Assembly will be having an all day work session in the Assembly
Chambers regarding the hospital issue. It is the stated goal to
have this issue resolved by March. He urged all council members to
attend and get in their input. He also mentioned the personal
property tax issue that has been proposed will be coming up for
public hearing. They expect that to take some time to resolve.
Mayor Williams asked if the property tax issue involves the
changing of licensing fees on automobiles. Popp responded that was
correct.
Mayor
•
Williams stated
that he was not
in
favor of
the ordinance as
it is
now written or
the direction it
is
going.
Assemblyman Popp
. KENAI CITY COUNCIL MEETING MINUTES
JANUARY 8, 1997
PAGE 14
•
•
responded that there is general agreement that this is not going to
be the final product. It is stictly an opening ordinance. He also
did not feel it is the right move and felt that something
substantially different will come out in the end.
Mayor Williams asked if the assembly discussed in any manner the
issue of the removal of junk cars. Assemblyman Popp responded that
this has not been dealt with at this point.
Mayor Williams responded that even the state recognized the need
for the removal of abandoned vehicles. Even though there was no
money brought forth. Assemblyman Popp stated he would bring these
concerns to the Assembly.
Bannock stated that not only is the borough looking at raising the
vehicle registration tax, but it is being done to offset another
tax. He felt that since it is virtually the same state-wide, if
there was a need for it to be increased, it would be increased
state-wide. Assemblyman Popp stated the intent was to deal with an
issue in the courts where there is a general flight of commercial
boats out of Seldovia, Seward, Kodiak, Homer harbors based on the
taxation level under the personal property tax code. We are in the
upper two percent of the statewide property tax level on boats.
When those boats leave our harbors, they take jobs with them and
they don't bring*the fish into our ports to be processed in the
canneries. That was one of the intents of this legislation. He
would take these concerns back to the other Assembly members.
Bannock stated that certainly deserved merit, but didn't feel it
fair to punish the people who own cars, but don't own boats.
Mayor Williams stated the thought was with the junk cars that there
could be a f lat tax added to the registration of every vehicle that
could be pooled and then used to remove abandoned vehicles.
Swarner asked if there was going to be any money for animal
control. Assemblyman Popp responded that Assemblyman Navarre would
respond to that issue.
Assemblyman Navarre responded that if the city puts in the money to
remove the junk cars, but its one of those things that if the city
puts the money in, then the city is accepting the burden and will
never receive any money from the state. He stated that it will be
addressed. In response to Bannocks comments about the flat tax, he
stated that in some instances the tax actually went down. There
were some benefits of shifting then, but there were some people
that got left out. The difference between the tax on a $100, 000
• KENAI CITY
JANUARY 8,
PAGE 15
COUNCIL MEETING MINUTES
1997
home was unbalanced compared to $100,000 boat or airplane. He
doesn't agree totally in the comparisons, but there are a lot of
other issues, and they are trying to do a tax shift.
Assemblyman Navarre also drove down to the beach and felt that
there should maybe two turnarounds down there, but agreed that
something needs to be done down there. He stated that at the last
borough assembly meeting there was standing room only and the
animal control issue was tabled indefinitely. He felt that at
budget time there might be a one-time only fund to the cities,
though it is in an early stage. He stated he would look at it
before budget time and would try to pursue some avenues of
compensation to the four cities.
Navarre invited the council members to attend the assembly meetings
on the 1st and 3rd Tuesdays, to give their input. He felt the
cities will be a big factor in the tax.
Kathy 800tt introduced herself and wanted to recognize the
. emergency service teams who responded to a small fire at the
Salamantof Native Associations building. She was impressed with
the training and efficiency of the team to secure the scene and
react with a minimal amount of damage to the facility.
Emily DeForest reminded everyone of the Friends of the Library
Membership Tea on February 16th from 1-4 at the library.
J-2. Council
Bookey - none
Swarner - none
Moore - none
Measles - none
Bannock - none
Smalley mentioned an article in the Anchorage paper about a private
company that is in a project to design and build an ice facility in
Anchorage. They want to build two additional facilities. He asked
the City Manager to approach this company to see if they would be
interested in doing something in the city of Kenai. Mayor Williams
asked the City Manager to send a copy of the proposed plans to
them.
KENAI CITY COUNCIL MEETING MINUTES
JANUARY S. 1997
PAGE 16
Mayor Williams asked everyone to look over the survey included in
the packet on voters versus the opinion leaders.
��.�. ADJOt1Rli11�[ENT
The meeting adjourned at approximately 9:55 p.m.
Minutes transcribed and submitted by:
Debby Fahn olz, Contract Secretary
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