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HomeMy WebLinkAbout1997-02-19 Council Minutes• AGENDA XMMI CITY COUNCIL - REGULAR NESTING VESRUARY 196 1997 7100 P*X* ItUMI CITY COUNCIL CMMNRS http=//VW.Icenai.nst/city A. CALL TO aRDA$ 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 Comma (10 Minutes) C. PUBLIC 8EA IR NO8 1. Ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Woments Basketball League. 2. Resolution No. 97-3 - Transferring $2,500 in the General Fund for a City-wide Computer Network Design - Study.. 3. Resolution No. 97-6 - Transferring $1,143.14 in the General Fund for Purchase and Installation of a Water Heater in the City Greenhouse. 4. Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska . Railroad. 5. Resolution No. 97-0 - Awarding a Contract for Fuel Service to Doyle•s.Fuel Service, Inc. at the Unit Prices Listed Below for Furnishing and Delivering Fuel to the City Dock and City Generator Tanks. Page 1 of 1 6. Resolution No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing.and Dispensing Fuel at Their Service Station Located Bridge Access Road and the Kenai Spur Highway. 7. *1996/97 Liquor License Continuance Protest/1ZMPAIIAL - The Upper Deck (delinquencies noted have been resolved) . S. *1997/98 Liquor License Renewal - Peninsula Moose Lodge - Beverage Dispensary. D• COMMI88IONICOMMITT$E RBP9RT8 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission S. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board c. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report s. MMES 1. *Regular Meeting of February 5, 1997. • G• = BOBI� N18A �!-74 ': :1 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai ARFF Project." 4. Approval - Renewal of Department of Health & Social Services Agreement. Page 2 of 3 • 5. Approval - Agreement for Services/Vintage Pointe Manor. 6. Discussion - Confession of Judgment/Katmai Motel, Restaurant & Lounge. 7. Disaussion - Sublease/Lot 3, Block i, GAA, from James A. Munson to Public Radio Station KBBI/KDLL. a. Discussion - ADEC Low Interest Loans (Drinking Water and Alaska Clean Water Funds). ESLCUTZVE,BR88ION - Inlet Woods Litigation. 1. Mayor p 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager �T. DXBCZT88ION • 1. Citizens ( five minutes) 2. Council • • KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 191 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERG bttp://VVW,Kenai.net/city VICE MAYOR RAYMOND MEABLEBa, PRESIDING Vice Mayor Measles called the meeting to order at approximately 7:03 p.m. in the Council Chambers in the Kenai City Hall Building. Vice Mayor Measles led those assembled in the Pledge of Allegiance. A-2. Roll was taken by the City Clerk. Present were: Bannock, Bookey, Swarner and Moore. Absent was: Williams and Smalley. it f :�-� - -i • t L_ Measles, Vice Mayor Measles requested the following change to the agenda: ADD TO C-4, Additional Inforaation in regard to Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska Railroad. There were no other changes. Measles declared the agenda to be approved as amended. A-60 Vice Mayor Measles noted there were no changes to the consent agenda and declared it approved as submitted. None. ITS C: PUBLIC HEARINGS C-1. ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Women's Basketball League. • KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 2 MOTIONS Councilwoman Swarner MOVED for adoption of Ordinance and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTR: Measles: Yes Bannock: Williams: Absent Bookey: Moore: Yes MOTION PASSED UNANIMOUSLY. Yes Yes Smalley: Absent Swarner: Yes C-2, Resolution No. 97-3 - Transferring $2,500 in the General Fund for a City-wide Computer Network Design Study. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 97-3 and Councilman Moore SECONDED the motion. There were no public comments. Councilman Moore asked what administration anticipated to acquire from the document. City Manager Ross answered, the document was to address the needs with an approximate cost for installing a network system in City Hall and phasing in other city buildings over the next few years. -The document would be a foundation for building both a computer network and records management system for the city and aid in making appropriate choices as far as the types of systems, software and equipment. VOTE: There were no objections. SO ORDERED, C-3. Resolution No. 97-6 - Transferring $1,143.14 in the General Fund for Purchase and Installation of a Water Heater in the City Greenhouse. MOTION s Councilwoman Swarner MOVED for approval of Resolution No. 97-6 and requested UNANIMOUS CONSENT. Councilman BookeySECOND motion. the • KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 190 1997 PAGE 3 There were no public comments. It was clarified the funds were being transferred from one account to the appropriate account for the purchase. VOTE: There were no objections. 80 ORDERED. C-4. Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska Railroad. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 97-7 and Councilman Moore BECONDED the motion. Vice Mayor Measles introduced Governor Sheffield and welcomed him to the meeting. •Governor 8bof!i•ld gave a brief summary of the history of the Alaska Railroad, stating it was built in 1923 and the State bought it in 1984 and assumed operation in 1985. The purchase agreement included paying $34 million for the track, rolling stock and 38,000 acres of land. Since then, the Railroad has neither requested nor received any additional state money outside of the 1984 agreement. Sheffield added, the Railroad, in 12 years of state ownership, earned a profit nine times; is self-sustaining; is accountable to the public through the Legislature/Governor; and, is run by railroad managers. Their employees are not state employees, do not receive state benefits, or are a part of the state retirement system. Sheffield explained the Legislature was now wanting to give away half of the Railroad's land which would cripple their operation, their ability to fund their own capital projects, and lose the flexibility to meet their customer's changing needs. Sheffield requested council's support. Councilman Bannock noted it appeared there were two matters: One, the State was taking a more active interest in the Railroad; and, two selling it and privatizing the operation. Sheffield responded, it was the Legislature's intent to prepare the Railroad for privatization by undermining its financial stability and forcing the Railroad to request funds from the Legislature. J& KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 191 1997 PAGE 4 He added, there would be concern that by privatizing the Railroad, problems with the Federal government would arise because the deep -water ports may no longer be served. VOTE: There were no objections. 80 ORDERED. Measles requested a copy of the resolution be forwarded to the members of the State Legislature and Railroad. C-5. Resolution No. 97-8 - Awarding a Contract for Fuel Service to Doyle's Fuel Service, Inc. at the Unit Prices Listed Below for Furnishing and Delivering Fuel to the City Dock and City Generator Tanks. MOTIONS • Councilman Bookey NOVND for approval of Resolution No. 97-8 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. C-6. Resolution -No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing and Dispensing Fuel at Their Service Station Located Bridge Access Road and the Kenai Spur Highway. MOTIONS Councilwoman Swarner MOVED for approval of Resolution No. 97-9 and Councilman Moore SECONDED the motion. There were no public or council comments. City Manager Ross requested council to table action on the resolution as there were serious concerns about ingress and egress to the station for large pieces of equipment. He added, he wanted to have discussions with Mapco personnel prior to action and to compile possible alternatives for council consideration. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 5 MOTION TO TABLES Councilwoman Swarner MOVED to table action on Resolution No. 97-9 until the March 5, 1997 council meeting. Councilman Bookey BECONDED the motion. VOTE ON MOTION TO TABLET Measles: Yes Bannock: No Smalley: Absent Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes MOTION PA88ED. C-7. 1996/97 Liquor License Continuance Protest/WITHDRAWAL - The Upper Deck (delinquencies noted have been resolved). Approved by consent agenda. C-8. 1997 96 Liquor License Renewal - Peninsula Moose Lodge - Beverage Dispensary. Approved by consent agenda. ITRN Dt COHN188I0N/COHNITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reported the minutes of the last meeting were included in the packet. She also announced those interested could get a copy of the survey report from Director Porter. She noted the report included both negative and positive comments. D-2. Airport Commission Airport Manager Ernst reported the Commission met on Thursday, February 13. The minutes of that meeting would be included in the next packet. Ernst stated most of the Commission's discussions were about the car rental agency space remodeling. The car rental agencies will be making recommendations to the Commission (with dollar amounts for the remodeling of the area) and the Commission will be reporting back to council with their recommendations. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 191 1997 PAGE 6 Councilman Measles noted the memorandum which invited council to attend the 3/13 in regard to the Master Plan. D-3. Sarbor Commission included in the packet meeting to hear a report Councilman Bookey reported the minutes of the meeting were included in the packet. The majority of discussion was about the boating facility budget, i.e. dock and crane leases and possibility of leasing ground area for staging boats. Bookey added, he invited the Commission members to attend budget hearings. Bookey noted the CommissionIs request to change their next meeting date from March 10 to March 3. There were no objections by Council. D-4. Library Commission • Councilman Moore reported the next meeting was scheduled for March 4. D-Se Parks & Recreation Commission Parks & Recreation Director Frates reported the meeting was held at the Teen Center due to discussions held in regard to the possibility of developing a skateboard park. Frates added, there were a number of students and parents in attendance. He added, the development of the park would be over the next three to five years. Frates also reported the Commission approved the use of the Center for the KCHS After -Graduation party and waiver of the use fee. D-6. Planning & zoning Commission vice Mayor Measles noted the minutes of the last meeting were included in the packet. City Engineer La Shot also reported there were no agenda items and the meeting was short. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee • Councilwoman Swarner reported the minutes of the meeting were included in the packet. She added, the Committee chose the theme KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 7 "Beautifying Our Highways and Byways" for their summer efforts. She also reported the banners were almost finished and because. there had been several contributions, cost to the city wouldn't be as much as anticipated. D-7b. Historic Dietriat Hoard Councilman Moore reported the next meeting was scheduled for February 24. D-7o. Challenger Board Councilman Bannock reported Pam Peterson from the National Challenger Board visited Kenai and was asked how she thought Kenai was progressing. She stated she was pleased with the accomplishments and that she would be taking its business plan back to Virginia to use as an example. Bannock also reported K. Scott and J. Williams were in Anchorage last week talking with people interested in becoming a member of the Board of Governors. They are looking for eight to ten professional people who would be involved in fund raising efforts. Bannock added he and Councilman Smalley would be attending the "Challenger Experience" in March. Lt. Governor Ulmer would also be attending. D-76. Kenai visitors i Convention Bureau Hoard Councilman Bookey reported the next meeting was scheduled for Monday, February 24 at 8:30 a.m. D-7e. Alaska Municipal League Report • Councilwoman Swarner requested council and administration to contact her with any concerns about bills relating to economic development and land use. Her next teleconference with the Legislative Committee would be held on February 25, 8-1. Regular Meeting of February 5, 1997. • Approved by consent agenda. • RENAI CITY COUNCIL MEETING MINOTBS FEBRUARY 19, 1997 PAGE 8 .0 0 None. IT= 91. None. ITEM g: R-i. MOTION= Bills to be Paid, Bills to be Ratified Councilman Bookey MOVED to pay the bills and Councilwoman Swarner sECONDED the motion. There were no objections. 80 ORDERED. E-29 Purchase Orders Esoseding $2#500 Vice Mayor Measles noted there were no purchase orders for approval. He added, he believed it was the first time this had happened in his tenure on the council. . R-3. Ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai-ARFF Project." Introduced by consent agenda. R-4. Approval - Renewal of Department of Health & Social Services Agreement. MOTION3 Councilwoman Swarner MOVED to approve the City"s entering into a new agreement with the Department of Health & Social Services for the period 2/1/97 through January 310 1998 at the current rental rate. Councilman Bookey SECONDED the motion. Attorney Graves noted this was the same agreement as in the past. The Health Center was looking for new space but wanted to renew this agreement while looking. KENAI CITY COUNCIL MEETING MINUTES r FEBRUARY 19, 1997 PAGE 9 VOTES There were no objections. 80 ORDERED. H-5. Approval - Agreement for Services/Vintage Pointe Manor. MOTIONS Councilwoman Swarner MOVED to accept the change in the Agreement for Services with the Lees. Councilman Bannock 8ECONDED the motion and Councilwoman Swarner requested OHANIMOVB CONOWT, Attorney Graves reported the Lees had requested to change the agreement to reflect their partnership name, however the individuals would remain jointly liable. Graves added, administration had no objections. VOTES . Council had no objections. 80 ORDERED. 8-6. Discussion - Confession of Judgment/Katmai Motel, Restaurant & Lounge. Attorney Graves explained Mr. Singree had requested to enter into a Confession of Judgment similar to one approved by council last year. Swarner asked what was owed in last year.- Singree answered approximately $4,000, close to the same amount the new judgment would be for. Bookey stated he agreed to the judgment last year however, he didn't believe it was the place of the council to be in a lending business. He stated he would not support a similar request next year if it comes before them. Singree explained the term of payment in the last judgment was a six-month progressive pro -rated plan. As he paid the city the current payment, he also made a back payment. He added, he would like the payment plan the same this year, prorated if possible, but if it was necessary to start in April with full payment in arrears and a current payment, he believed they would be solvent and able to do a double payment. He added, it was necessary for him to have the liquor license to be operational. The last judgment was based on a six-month program and they had • KBNAI CITY COUNCIL MISETING MINUTE8 FEBRUARY 19, 1997 PAGE 10 paid it by the end of the summer. Graves added, they made progressive payments the last time, as it was easier to pay it off in the summer. MOTIONS Councilman Bannock MOVED to approve the request for Confession of Judgment and with it, the protest against the liquor license be withdrawn subject to Singree entering into the judgment. Councilman Bookey SECONDED the motion. Councilman Moore requested Mr. Singree be invited to the economic assembly in April. VOTES There were no objections. 80 ORDERED. H-7. Discussion - Sublease/Lot 3, Block 1, GAA, from James IS A. Munson to Public Radio Station KBBI/KDLL. Graves reported the sublease from Munson to the Public Radio Station was subject to approval by FAA. Mr. Munson was offering the space free of charge to the radio station. Administrative Assistant Howard had contacted the FAA but had not yet received a response. Swarner questioned whether the radio station would be considered airport related. Graves stated he didn't know if it could be said it was airport related. Airport Manager Ernst reported he had a conversation with Patty Sullivan of the FAA and she had some reservations about the request. He mentioned to her that FAA had allowed temporary use of facilities up to five years in the past. She was not aware of that. She would be checking that and if the radio frequency would be a problem for the airport. Swarner asked if this would be a long-term lease. Dave Hammock from KDLL answered Munson had offered the use of the building. They would be doing a modest amount of leasehold modifications. They don't believe it would be a long -term -home base for the station. Hammock added, he had also talked with Sullivan. Their transmitter would allow a studio link and would require FAA approval. HEA has offered a free telephone poll to put their antenna on to carry the radio link. The lease would allow both Munson and KDLL to give a notice without cause if there is a higher demand for the building. KENAI CITY COUNCIL MEETING MINUTES • FEBRUARY 19, 1997 PAGE 11 MOTIONS Councilman Bannock MOVED to approve the sublease of Lot 3, Block 1, GAA from James A. Munson to Public Radio Station KBBI/KDLL pending FAA approval. Councilman Bookey SECONDED the motion. councilwoman Swarner requested ONANtMOUS CONSENT. There were no objections. SO ORDERED. E-8. Dieouseion - ADEC Low Interest Loans (Drinking water and Alaska Clean Water Funds). City Manager Ross noted the loans were brought to his attention by Public Works Director Kornelis. If the City applies for the loans, it would not obligate the council but to enter into the loan, would require a vote of the people. Through applying for the loans, the city might acquire ADEC funding points. Council could later decide whether to go to a vote. Ross advised, the due date for the loans was February 28. Kornelis added, the projects to be listed for the loans would be • identical to those applied for for ADEC funds. The city could request 100% or 50% matches. Loan interest rates were now at 4.1% and have been as low as 3.74%. The interest rate would be fixed at the time the loan is approved. He added, the city had never received a loan like this before. He advised, the Drinking Water Fund loan was brand new. Also these are federal loans administered by ADEC. Vice Mayor Measles asked if the match would come out of what would be the grant funds. Kornelis answered, it was his understanding the loan funds would be matched by the Governor and Legislature and separate from the ADEC regular funding. Moore asked if applying for the loans would hurt the city's chance to receive grant funds. Kornelis stated, through his discussiond with DEC, he didn't think so. Also, the letter stated the city would not incur any obligation by responding. Bookey stated he thought the city should apply and then leave it to administration as to whether to follow through in the future. Measles asked if council wanted to direct administration to go ahead with the application at 100%? Council concurred. 0 EBECtTnys SESSION - Inlet Woods Litigation. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 12 MOTION: Councilman Bookey MOVED to convene in an executive session of the council of the City of Kenai concerning matters recognized as attorney/client confidentiality, communication privileges and for the reason of strategy discussions for the Inlet Woods litigation. Councilwoman Swarner BECONDED the motion. There were no objections. 80 ORDERED. Vice Mayor Measles requested Attorney Graves, City Manager Ross and Finance Director Larry Semmens attend the session. EXECUTIVE SEBSION SEDAN= 7:51 P.M. RETURN TO ORDER: 8:36 P.M. Councilwoman Swarner reported during the executive session, council discussed the Inlet Woods litigation with the Finance Director, City Attorney and City Manager. They instructed the administration to proceed as directed. ITEM I : • ADMINISTRATION REPORT$ I -I* Mayor Vice Mayor referred to the letters included under I-1 in the packet. one discussed proposed DEC plan to transfer some of their functions to local governments. The second letter discussed the proposed taxation on tourism. 1-2. City Manager a. Kenai Visitors i Cultural Center - Ross reported he had received a letter from the KVCC requesting to meet with council about budget matters. Ross stated he would advise them of the budget date at which the KVCC budget would be discussed. b. Peninsula Coalition Meeting - Ross reported he attended the Coalition meeting held today, along with Finance Director Semmens. Of several issues discussed, he was very concerned with the proposed property tax revisions. The matter would be before the Assembly in the near future. They are hoping to pass the ordinance by April 1 in order to meet the deadline for vehicle taxation through DMV. There were eight different scenarios presented at the meeting. Ross added, the scenarios all designed a way to redistribute tax load on motor vehicles from addressing inequities they see in commercial boats and airplanes. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 13 c. Bales Tax Cap - Ross reported he would include for discussion on the next council agenda the Borough's ordinance (which has been introduced) to change the sales tax cap from $500 to $1,000. Both the Assembly's ordinance and a proposed resolution for council's consideration would be included in the March 5 packet. Councilman regard to stated, it autoutobi le boats and wrong and of a fe w • Ross added, the plans that had been presented to them, he did not believe could be put into a final draft for the time frame in which they want to do it. Additionally, the whole property tax issue is at the State Supreme Court for a decision and he felt the Borough was very premature in changing the personal property tax ordinance until the decision is made by the court. Ross reported the next Coalition meeting would be held on March 19. I-30 No report. I-4. Attorney City Clerk Reminded council of the work session set for March 6 at 7:00 p.m. in regard to the city manager search. I -so Finance Director No report. 1-6. Public Works Director 0 No report. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 14 1-7. Airport Manager Ernst reported he had received a call, from FAA regarding the taxiway extension. They had estimated the 1997 allocation of funds at $500,000. The entitlements came to $714#000 and FAA wanted to change the application to that amount because of the ticket tax delays for discretionary money. Ernst added, any discretionary fund projects could also be delayed. They had estimated $377, 000 for discretionary funds. They feel it will be a doable project. Ernst reported he told FAA to go ahead with the change as the entitlement funds were not earmarked for any other use. Councilman Moore asked what the status was tax in Anchorage. Ebnst answered, he had but would investigate the matter. IT.. DXBCUBs=oN • J-1. Citizens None. J-1. council on the $3.00 landing not heard anything new, Bookey - No report. swarner - Reported she had attended a dinner with area physicians in regard to the hospital. She -stated, she thought the council should take more interest in the medical community. She also reported she planned to attend the meeting in regard to the Community Health Center (information included in the packet). Moore - Referred to the letter from Fish & Game which was included as Information No. 2. Kornelis stated it looked like there wouldn't be any change for now. He added, the city sent letters to the property owners, but received no responses. Moore suggested, for lack of any response from private property owners, they should consider it a go ahead. Ross stated, once the grant was closed the situation could be revisited. Kornelis noted, the grant had to be closed in May, however, he believed it would be completed in March. Bannock wherein the saw only tw he believed Referred to paragraph 3 of the Fish & Game letter writer, Kuwada, stated he had visited the area and o vehicles using the turnaround. Kuwada also stated, the design (of the turnaround) did accommodate small . RENAI CITY C011NCIL MBETING MINUTES FEBRUARY 19, 1997 PAGE 15 vehicles and an expansion into the wetlands would not be justified. Bannock suggested a response bewritten to uwada sent with which photographs of the area during peak along. Bannock requested council permission to travel to Seattle in March to attend the "Experience Challenger program. Council had no objections. Measles - No report. The meeting adjourned at approximately 8:52 p.m. Minutes transcribed and submitted by: is CaroL. Freas, C ty Clerk s 0 Im