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HomeMy WebLinkAbout1997-10-15 Council MinutesAOENDA KENAI CITY INEN, OCTOBER 18f 1997 7:00 P.Me KENAI CITY COUNCIL CiIABElts3 http: / /arara.Renai.net/city ITINIff s__ . . - l _ 1. Pledge of Allegiance 2. Roll Cell 3. CERTIFICATION OF OCTOBER 79 1997 ELECTION 4. Agenda Approval S. 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. 8. 8C-- &W MLW. COS (10 Minutes) 1. Sill Coghill - Mikunda, Cottrell & Co/Financial Statement Presentation Co gUBLIC IW1R" 1. Resolution No. 97-74 - Transferring $4,000 in the Airport Land System Special Revenue Fund for Utilities for the Dairy Queen Building Effective October 19, 1997. 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission S. Parks 8s Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board 0 -1- r� u • B. F. 0. H. C. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report 1. *Regular Meeting of September 17, 1997. 2, *Regular Meeting of October 1, 1997. 1. Bills to be Paid,.Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Approval - Change Order # 1 /Alaska Regional Fire Training Center/$36,987.23 4. Discussion/Approval - Changes in Senior Housing Lease 5. Discussion - Setting of Council Work Session/ CIP List and City Manager Search Process 6. Discussion - Water Service Hook-up/Mysing and Arness/Mission Street Upgrade Project FJtHC_TffJM QFBBION - None Scheduled. I. 1. Mayor 2. City Manager 3. Attorney 4. City Clerk S. Finance Director 6. Public Works Director 7. Airport Manager -2- • • • IMAI CITY COUNCIL - REGULAR 11 FM OCTORNR 16. 1997 7:00 P.M. KENAI CITY COUNCIL 1141BER8 httP://www.Kenai.not/city CALL To ottDER Mayor Williams called the meeting to order at approximately 7; Chambers in the Kenai City Hall Building. Mayor Williams led those assembled in the Pledge of Allegiance A-20 Roll was taken by the City Clerk. Present were: Bannock, Smalley, Williams, Bookey, Moore, Swarner (arriving at 7:18 p.m.) and Measles (arriving at 8:05 p.m.) Clerk Freas read into the record the following certification: CITY OF KENAI REGULAR ELECTION OF OCTOBER 79 1997' WE, the members of the Kenai City Council, do hereby certify the results of a canvass Of the ballots for the Regular Election of October 7, 1997. $ AL 1 t 0UK"" MC CLOUD, DONALD L. MEA8LE8, H. RAYMOND 390 Write-Ine 314 333 9 SPOILED BALLOTS: 5 ABSENTEE BALLOTS ABSENTEE BALLOTS COUNTED: 61 RECEIVED: (In person, QUESTIONED BALLOTS Personal Representative, COUNTED: 2 Mailed) 63 POLL VOTER TURNOUT: 626 E 0 KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 2 QUESTIONED BALLOTS TOTAL VOTER TURNOUT: 693 . RECEIVED: 4 REGISTERED VOTERS: 4,556 % VOTER TURNOUT: 15% There were no comments or questions. MOTION: Councilman Bookey MOVED to accept the results of the Regular Election of October 7, 1997 and Councilman Banndck SECONDED the motion. There were no objections. SO ORDERED. A-4. There were no objections to the agenda as presented. A-5. There were no objections to the consent agenda as presented. F 8• 13 -milm ED P'IML-M COUNT 8-1. Bill Coghill - Mikunda, Cottrell & Co/Financial Statement Presentation Coghill reviewed the management letter which Finance Director Semmene distributed to council at the meeting. Coghill explained the letter was. their .opinion of the City's .. annual financial statement. He continued, the city continues to be very stable; revenues are about level and sales tax amounts remain about the same. Also, they found no problems with internal control. Coghill noted, there are problems with the finance computer system which will have to be attended to during the coming budget year to evaluate the alternatives, i.e. new software, modifying current software, etc. Also, the Governmental Accounting Standard Board issued a statement that directs investments to be valued at market value, which is not a big problem for the city as there is not a lot of difference between its carrying value and marketing value of its investments. - The statement also directs how earnings from that are allocated to different funds which have equity in the central treasury. He noted, that may require some different budgeting for the. next year, or resolution or ordinance changes for the current year. • KENA1 CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 3 Coghill noted, in the past, the city submitted its financial statement to the Governmental Finance Officers Association for certification that it meets all their objectives. It hasn't been done for a number of years. Coghill thought it is advantageous to have the review as it is more precise and demanding than generally accepted accounting principles and those Coghill audits. He added, Semmens planned to submit the city's statement to the Association this year for review. Coghill also reported the GASB 31 Reporting may have an impact on the financial statements and they are calling their clients attention to the standard. Semmens stated there are two land sale trust funds that the interest revenue from investments is currently recorded either in the General Fund or the Airport Land System Special Revenue Fund. His understanding is those funds will be required to have the interest revenue reported and the council will need to pass qn ordinance to appropriate the money in that fund and transfer it to the appropriate funds. He added, probably any fund that has cash will have investment interest earnings in it. Coghill noted, his firm had not yet included the Federal and State Single Audit Compliance Reports because the federal government made changes in their letter and they have not yet received them. They will be issued in the near future. Coghill reported they found one item which involved the reporting on the state's grant for the water improvement/well project. The grant required monthly reporting and some of the reports had not been filed on time. The timeliness of reporting will be included in their report. Semmens noted, the city's response will be that it will endeavor to file the reports in a timely manner. Coghill added, though it will be a finding, it is not a significant issue. Coghill expressed his thanks for the city allowing his firm to do the audit and added, it was a pleasure working with Semmens and are happy to have him as the city's finance director. It was noted, Councilwoman Swarner arrived at approximately 7:18 p.m. Williams noted the council's appreciation of Semmens and his entire department in regard to the work involved with audit and financial statement. Coghill and Semmens answered some general questions in regard to the financial statement. Councilman Moore complimented Semmens on the excellent report and Coghill on the timely report. Swarner agreed. Semmens thanked his staff who did an excellent job and specifically Robin Feltman. Semmens pointed out this year's statement is a multi -year statement which should help when comparing information. He also pointed out a correction needing made on Page 8, in the second paragraph - $986,966 should be replaced by $366,522. • KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 4 • LJ •7ILC 1:�-. C-1. Resolution No. 97-74 - Transferring $4,000 in the Airport Land System Special Revenue Fund for Utilities for the Dairy Queen Building Effective October 19, 1997. MOTION: Councilman Smalley MOVED for adoption of Resolution No. 97-74 and Councilman Bookey SECONDED the motion. There were no public comments. Councilman Moore asked how long it was anticipated the $4,000 would last. City Manager Ross answered, the use history indicated the $4,000 would last three months. However, the power usage will be much less and the amount should cover a longer period of time. There was also discussion about whether the parking lot around the building would be kept clear from snow. Ross noted, it would be kept plowed for safety reasons, as well as to allow the building to be shown by realtors. VOTE: There were no objections. 60 ORDERED. ME D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner noted there was an opening on the Council on Aging and referred to the applications included in the packet for council review and consideration. Swarner recommended Nancy Burton, noting she already volunteered at the Center and had not served on the Council on Aging in the past. Council had no objections to Ms. Burton's appointment to the Council on Aging. D-2. Airport Commission Airport Manager Ernst reported there was no quorum for the scheduled October 9 meeting. The next meeting was scheduled for November 13. D-3. Harbor Commission Councilman Bookey reported the Commission met on October 6 at which Finance Director Semmens discussed the Dock Enterprise Fund and how it functioned. The • KENAI CITY COUNCIL MEETING MINUTE$ OCTOBER 15, 1997 PAGE 5 discussion was well received and should be helpful in the future budgeting efforts. Bookey added, he requested the Commission to seek out someone to apply for the open position on the Commission. D-4. Library Commission Councilman Moore reported the Commission met on October 7. The Director reported there would be a guest storyteller visiting the library on October 17 and that there were still Friends of the Library raffle tickets available for purchase. Moore added, a Personal Relations Committee was formed and held their first meeting. D-5. Parks & Recreation Commission Councilman Bannock reported the minutes of their October 2 meeting were included in the packet. At the meeting, Dr. Peter Hansen presented a proposal to create a park in Old Towne on bluff property he owns. Hansen gave a detailed plan for the park and what he would like the city to do. Hansen will present his plan to council at their November 5 meeting. Bannock pointed out the Parks & Recreation Commission wants the matter to be referred back to them when the design of the park begins in order for them to be involved in the planning and implementation. Parks Director Frates noted, the Commission's reason for the request is because they are concerned about the additional work load on the department. With the Commission's involvement in the planning, they can better dictate what the level of maintenance will be on the department. Councilwoman Swarner referred to Page 1 of the minutes where Hansen stated the _ owners of the adjoining lot were contacted in regard to selling or donating the lot for additional parking. Swarner stated, it was her understanding the adjoining lot would not be sold or donated. Bannock noted, the Commission had a lengthy conversation in regard to whether they were wanting to expand the amount of parks within the city, making sure each portion of town had a park. He explained, if the park system was to expand, with budgeting concerns, it makes more work and spreads the park crews thinner and thinner. Councilman Moore stated he had a conversation with two of the Commissioners in regard to the multi -use ice facility. He reported the commissioners were frustrated they have not received more information and had not been involved in discussions in regard to the facility. They want to see the topic on their next agenda to discuss the matter more thoroughly. Frates stated, the matter has been on hold until a response • KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 6 is received in regard to the trading of the golf course lots for property adjacent to the Kenai High School. Williams added, he thought when a determination is made as to potential funding, the whole project would be reviewed to know whether the scope of the project is sufficient, if it should be increased, and how it should be funded. Moore asked if there was not potential funding available. Ross reported, he had sent off the property proposal draft to the State for their review prior to forwarding it to the federal agency. Ross added, it had been the city's position that only a portion of the golf course properties were under BOR restrictions — the State and Federal agencies say they all are under those restrictions. In the draft f hey have recognized all the properties are involved as part of the exchange. Ross continued, to make the exchange work, council will have to use the appraised value of Blocks 1 and 2 (Block 3 is not restricted), which may mean the General Pund will have to front money based on money coming from sales. Ross stated, he met with Mayor Navarre and he feels very comfortable with the site selection. The user group has been furnished a copy of the draft proposal as well. Ross noted, the proposal would be brought forward to council for review prior to its being submitted to the federal agency. He suggested that would be a good time for the user groups to discuss the facility with the Commission. Ross added, he had sent a copy of the draft to Rick Baldwin for the user groups to review and also had talked with the school district representatives in regard to a cooperative agreement for using access roads, the school parking lot, etc. to keep the costs down. Ross was told the school district had no problem with using the parking lot as they believe the facility will be an enhancement to the school. D-6. Planning & Zoning Commission Councilman Smalley reported a copy of the minutes were in the packet. The meeting was very short and after the meeting, the Commission met in a joint work session with council in regard to the updated Land Use Table. Councilwoman Swarner requested that maps be included with the PW minutes delineating what areas are affected by plat applications, conditional use permits, etc. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Councilwoman Swarner reported a meeting had been held on October 14 at which Frates gave a slide presentation of the city's gardens from the past summer. They discussed placing netting around the plantings at Memorial Park. . KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 7 • 0 Swarner added, the Committee also discussed the banner project and problems that occurred and wind damage to the banners. It was reported the Art Guild will replace all 30 of the banners purchased by the city in the spring, plus two new ones. However, they will be using different fabric for the banners. Frates added, they were considering placing the Art Guild banners only along Airport Way and Willow Street where the wind is not as strong and placing the older banners along Spur Highway. D-7b. Historic District Board Councilman Moore reported a meeting had been held on October 13 at which Attorney Graves attended to discuss the Historic District Board ordinance. Graves reported, the basic point made by Board Members Kluge and Gray was they want more authority in decision making, in particular items they now review in an adyisory capacity which go to Planning & Zoning for final decision. They would like the Board to make the final decision on those items rather than Planning & Zoning, i.e. architectural changes and signage within the Townsite Historic Zone. They are primarily interested in having final authority over building permits, instead of Planning & Zoning and review of sign permits, which are now reviewed by the building official. Moore added, board members alluded that because of their lack of authority, was perhaps a reason for their attendance problems. They feel they have no purpose as a board. The Board would like to have a park established around the site of the Shk'ituk't sign, Moore added, and wanted to know what progress had been made with FAA and the contamination in that area. Moore also reported the sign grant had been completed and pictures were passed to the Council for their review. Williams explained council had directed Administration to put a moratorium on all development in the area where the Shk ituk't sign had been placed until FAA's involvement in contamination and remediation of contamination was more fully understood. There is to be no development east of FAA Road, except for the sign. Smalley stated, in regard to the Board wanting more authority, the city already had the Planning & Zoning Commission, city administration and council for processing conditional use permits, building permits, ordinances and zoning concerns. He did not want to see development of another layer to the process. Bookey agreed and noted, there has always been a problem with the Board's attendance (noting the attendance record was included in the packet). One member had not attended a meeting for over a year. The Board was set to have nine members. With the continued absence of the one member, they are down to five members. Bookey added, he didn't think the Board should be making any major decisions when they couldn't make the necessary quorums for meetings. • KENA[ CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 8 Williams stated he would draft a letter to the Board and indicate council's concerns and thoughts. He added, he would include information relating to their attendance and lack of membership and point out their committee was set up at their request and they should be fostering their future. Bookey agreed, adding his concern the Board never follows through with the obligations they set for themselves. He noted, council discussed their concerns (with the Board attendance) three or four months prior and it was suggested then that if their attendance did not improve, the Board should be sunsetted. Bookey added, he thought the responsibilities of the Board could be handed over to the Planning & Zoning Commission and maintain the status of what is needed to be done with a historic board. How long was council going to play with the problem, Bookey asked. Williams stated, well give them one more letter. Williams noted, the Board was also developed in order for the City to be in compliance with historic grant programs. Williams added, the city�would have to research how far the Board had involved themselves in the historical subject and see if it was necessary for the Board to stay in place. Whether their responsibilities could be handed over to the city would need to be researched. • Swarner asked if the sign grant was the only grant for which the Board applied. Ross answered, the sign grant was the only outstanding grant. Bannock added, their first grant project was a site survey, prior to the sign grant. The site survey had been completed and a good document was produced. He added, the Rotary should take half of the credit for the sign project as their donation of time, etc. was of substantial importance in its completion. Bannock added, there had not been a lot of interest in people attending the meetings, applying for an appointment to the Board, and no one was missing the work the Board was not getting done. Smalley pointed out other grants may be applied for in the future through the Board. It may be a requirement of a prospective grant to have a historic board in place and added, he thought that should be explored. Also, there may be benefits to having the Board, but whether the Planning & Zoning Commission could take over those responsibilities, would need to be explored as well. Ross stated he would research whether the Board's responsibilities could be met through a committee of the Planning & Zoning Commission. Councilman Moore added, the Board was considering asking council to downsize their membership in order to better meet quorum requirements. However, they were concerned a downsizing of membership would inhibit their ability to acquire grants. Bannock noted, that could be a problem as the ordinance was set up to allow a certain percentage of the Board to be from out of the city or have specific backgrounds. It had been decided it would behoove the Board to have over seven members in order to fill those slots. • KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 9 Williams noted he and Clerk Freas would compose a letter to the Board. It was noted Councilman Measles arrived at 8:05 p.m. D-7a. Challenger Board Councilman Bannock reported the Board met last week and had an interesting and spirited discussion. They also received a draft of the first Challenger newsletter. They were awaiting acknowledgment of the President signing a bill which includes a $2.5 million grant for the Challenger project. Ross reported he met with representatives from the Challenger Board in a work session in which they discussed issues which will result in the drafting of a memorandum of understanding and then a management agreement. The issues discussed, Ross stated, he had brought to council previously, and were what he understood as past council actions and feasibility study findings. The memorandum will come back to council and the Challenger Board for review. He added, the memorandum sets out responsibilities of the city and the Board's corporate responsibilities. Ross noted they also discussed the formation of a construction committee for the development and evaluation of an RFp which should include a council member, as well as professionals for evaluating the technical portions of the RFP's. Ross continued, during the work session, they also discussed a site for the facility and consideration was given to property adjacent to the Kenai Central High School (placed alongside the planned multi -purpose facility) as well as Mental Health lands along Rogers Road. The Dust Bowl property was discussed, but it was not felt placement of the Challenger facility there would be the highest and best use of that particular property. D-7d. Kenai Visitors & Convention Bureau Board Councilman Bookey reported a meeting was held on October 9 at which Ron Rainey made a presentation about silver salmon enhancement. A subcommittee was formed which will be working on a plan. Bookey distributed their new membership directory and reported visitation of the facility from May through September totaled 57,565. Through their $2.00 fee for the museum, $6,000 was raised. Bookey also reported the Board received a $3,000 grant from the Lake Clark National Park to staff their nature room. Also, the new director was doing an excellent job. 0 D-7e. Alaska Municipal League Report - No report. • KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAQE 10 E-1. Regular Meeting of September 179 1997. Approved by consent agenda. E-1. Regular Meeting of October 1, 1997. Approved by consent agenda. ITEM : -- None I -TEN a., OLD BUSINESS - None BREAK TAKEN: 8:15 P.M. if TO ORDER: 8:25 P.M. UA M H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bill& and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $20500 MOTION-. Councilman Smalley MOVED to approve the purchase orders exceeding $2,500 and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-3. Approval -Change Order #1/Alaskka Regional Fire Training Center/$36,987.23 Ross explained the change order would allow the extension of the utilities to the ESI property site and includes the hydrant assemblies. He added, he didn't think the total cost would exceed $45,000. . KENA[ CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 11 MOTION: Councilman Smalley MOVED to approve Change Order No. 1, Alaska Regional Fire Training Center in the amount of $36,987.23. Councilman Bannock BECONDED the motion. There were no objections. 80 ORDERED. 11-4. Discussion/Approval • Changes in Senior Housing Lease Attorney Graves reviewed his memorandum, included in the packet, which delineated the proposed changes to the senior housing lease. Graves suggested the wording for "no animals are allowed on the premises (except seeing eye dogs)" [page 9, paragraph 10(U)) be changed to allow other animals in the facility other than seeing eye dogs which are used in aiding people. The wording administration wished to use was "...except those dogs specifically trained to aid handicapped individuals." MOTION: Councilwoman Swarner MOVED for approval of the changes proposed in the S amendment. Councilman Smalley SECONDED the motion. Discussion followed in regard to several areas of the lease agreement. Councilman Moore referred to pages 3 and 4, paragraph 10(A) and (B) regarding security deposits.. Moore noted the deposit for smokers was proposed to be made "...an amount equal to twice the monthly rental rate..." Moore asked what that rental rate was. Senior Director Porter explained it depended on the size of the apartment and whether the apartment was situated on the Inlet side or parking lot side of the building. The most expensive rent was approximately xpe pproxumately $600, plus tax. - Moore noted, the damage done to the apartment, which brought the amendment forward, was about $5,000 and the deposit would not cover those repair costs, other than the inclusion of paragraph 11 on page 11, "...Tenant will be held strictly responsible for any loss, damage, or cleaning costs to this or other Dwelling Units resulting from smoking in the Dwelling Unit." Moore asked if this inclusion would allow the city to pursue collection of the damages. Answer was yes. Moore asked, what if the damage was due to something other than smoking. Areas of the lease noted were, Page 2, paragraph 8 and Page 4, paragraph 10(E)(7). Porter noted, previously the lease agreement did not include damage from smoking as it was not visual like a hole in the wall, etc. She added, over five years of time, there had been very little damage done to any of the units. The facility is in excellent condition, although this type of damage should be included in the lease in order for the city to protect_ itself. • KENAI CITY COUNCIL MEETING MINUTE3 OCTOBER 15, 1997 PAGE 12 Bannock noted Page 4, paragraph E only discussed how a tenant can get their security damage returned. He asked if there was a specific area of the lease to cover damage costs other than smoking damage. Measles suggested, Page 6, paragraph G would cover the costs. Bannock suggested they may not want to specify how damage. is done. Graves stated, the reason administration wanted to include damage from smokers was because it was not a broken window or hole in the wall, but an odor. Traditionally, there has been debate of whether it was something for which one could be sued. It was felt it should be specified in the lease agreement so there is no dispute that it is damage. Measles noted, Page 6, paragraph G talked about damages that create a hazard to life, health or safety. He noted there could a lot of damage done in an apartment that does not necessarily have to do with the life, health and safety problems. He asked if there was something in the lease that covered damages in general. Graves referred to "...the City shall repair the unit within a reasonable time" in paragraph G of Page 6. Williams ams suggested the lease should also include a statement the tenant is required to purchase an insurance to cover the value of their own personal contents, i.e. renter's • insurance. Porter suggested the item could be added under "Tenant Responsibilities" in order to advise them it is their prerogative to purchase renter's insurance. Graves referred to Page 10, paragraph DD, "...The Tenant will quit and surrender the Dwelling Unit at the expiration of this Lease in a clean condition and in good order and repair." He noted, he felt that would cover general damages and allow the city to retain all or a portion of the deposit or sue to cover additional costs. Bannock suggested a "hold harmless" be included -in regard to renter's insurance. - Graves noted, under the Landlord Tenant Act, he was not sure the city could make a tenant hold the city harmless for its negligence. He added, the city may be able to require the renter to purchase renter's insurance which would cover the value of the tenant's property even if a fire was the city's fault. Williams added, he would like to have a paragraph included in the lease which alerts tenants that their personal belongings are not covered by City of Kenai insurance and advise them to purchase renter's insurance. Smalley referred back to Page 6, paragraph G and suggested it be written, "...In the event that the premises are damaged to the extent that conditions created are hazardous, the city shall repair the unit within a reasonable time." and delete "to life, health, or safety of the occupants" and take out "are" and "which." Smalley also suggested the same paragraph could be amended to read, "In the event that the premises are damaged, the City shall repair the unit within a reasonable time." Smalley asked if there was a specific reason why the paragraph included "hazardous to life, health, or safety of other occupants." Graves stated, he recalled the section • KENAI CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 13 was included to correspond with a section of the Landlord Tenant Act which requires the landlord to fix broken pipes, etc. as soon as possible. He added, its the city's obligation because it is state law. Measles suggested a paragraph be included addressing general damage being the responsibility of the tenant - damage outside the normal wear and tear of the facility. Bannock agreed and suggested Page 11, paragraph II be written, "Tenant will be held strictly responsible for any loss, damage, or cleaning costs to this or other Dwelling Units." removing "...resulting from smoking in the Dwelling Unit." Bannock added, Page 6, paragraph G, outlines the city's responsibility to the apartment, but not the tenant's responsibility to the city. Porter suggested paragraph II be written "...Tenant will be held strictly responsible for any loss, damage, or cleaning costs to this or other Dwelling Units, including damage resulting from smoking in the Dwelling Unit." Bannock stated, if someone wrote on the walls, this section would not cover the damage costs. Bannock suggested adding, "...including, but not limited to damage result from smoking..." Williams asked if council wanted the lease brought back for review with the suggested changes. MOTION: Councilwoman Swarmr MOVED to send the lease agreement back to administration for repairs. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. R-fi. Discussion - Setting of Council Work Session/CIP List and City Manager Search Process Williams stated he wanted to set a work session to discuss the CIP list and to continue developing a realistic five-year plan to set specific goals for specific years. Ross added, he hoped council would set two work sessions. The first to discuss and develop the CIP list and discuss the city manager search process. The second, to meet with the area legislators to review the CIP list and specifics of the items on the list. He noted, the first work session should be prior to the first week in November and the second no later than the third week of November. Work sessions were set for October 22, 1997, 7:00 p.m. in the conference room of the Library and November 19, 1997, 6:00 p.m. in the council chambers (prior to the regular council meeting). Direction was given to provide a light food snack. • KENAi CITY COUNCIL MEETING MINUTES OCTOBER 15, 1949 PAGE 14 • H-6. Discussion - Water Service Hook-up/Mysing and Arness/Mission Street Upgrade Project Ross referred council to his memorandum which was included in the packet. The memorandum explained that as a part of the Mission Street project, the city was abandoning the water main the Mysing and Arness buildings are hooked into for water service. Mysing requested new lines to serve the buildings should be installed at city expense, since it is a result of city action that the present service connections are being abandoned. Ross recommended the city pay the costs. Ross noted, there were funds in the construction fund to cover the costs. MOTION: Councilwoman Swarner MOVED to pay the costs of the service connections outlined in the memorandum from Rick Ross (included in the packet). Councilman Bookey SECONDED the motion. There were no objections. 80 ORDERED. �V M 8EB8ION - None Scheduled. ITEM I: I-1. Mayor - Mayor Williams reported the following: a. Akita, Japan Visitors - Williams reminded council visitors from Akita, Japan (one of the Borough's sister -cities) would be visiting the area on Monday, October 20. The group is in the country to visit small cities and learn about operations compared to theirs. Williams added, a lunch had been arranged for the delegation at the Senior Center and he . requested council and department heads attend, if possible. He noted, he would be inviting several area business people to attend as well. The delegation would pay for their lunches and it was agreed the costs incurred for city employees, council and area business people lunches would be covered by the legislative account. b. ARFF Psoject - Williams noted the construction of the facility was progressing well. C. Walmart Presentation - Williams reported the City of Kenai had been recognized by the Walmart Foundation as an efficient city government: Williams had been requested to travel to Anchorage to receive the award. • KENAI CITY COUNCIL MEETING MINUTE$ OC1'OBER 15, 1997 PAGE 15 d. Smalley asked if there was a possibility the city and Walmart could again discuss the placement of a store in Kenai. Williams stated, that was already in the works. Measles reported Walmart was planning to build 254 new stores in the United States in the next two years and they planned to be the largest grocery store chain in the United States by 2005. Williams added, he had been told Walmart had not yet decided the locations for the new stores, but monies were in reserve. I-�!• City Manager - Ross reported the following: a. City Auction - The Oshkosh was removed from the city auction list because the item had never been titled and there was no manufacturer's certificate of origin. Efforts are being made to get the necessary paperwork in order for its sale. Ross added, there is interest to purchase the item and as soon as the proper paperwork is received, the atictioneer will include the item in the next appropriate sale. b. Airport Vendor Search - Airport Manager Ernst has been inventorying Anchorage airport vendors, getting names and contacts. A ma rket plan is being developed and he is working with the Airport Commission as to who to target, whether the business would be appropriate for Kenai, and if there is interest in moving their operations to Kenai. C. American Heritage Rivers Initiative - Ross reported Ben Ellis would be Present at the November 5 meeting to discuss the Initiative and referred to a copy of the overview and outline included in the packet as Information Item No. 3. After Ellis makes his presentation, Ross added, he would attempt to have someone representing the opposition (to the - Initiative) at the following meeting. d. Forest Drive Rehabilitation Project - Rose referred to Information Item No. 7, his letter to area legislators stating the city's concern that this project had been set back another year. He added, Public Works Director Kornelis had spoken with State officials noting the city's concerns as well. Ross suggested council discuss the matter at the November 19 work session with area legislators. e. Daisy Queen Building - The appraisal for the building/property will be brought to council for review in November. Ross added, he recommended selling the property by sealed bid with a minimum bid being the appraised value. If there is no interest through a sealed bid, then continue the effort of sale through posting the property and by 0 realtors. If there is still no interest, then consider an RFP lease • KENAI CITY COUNCIL MEETING MINUTE8 OCTOHER 15, 1997 PAGE 16 arrangement in the spring. There have been verbal inquiries for leasing the property and to purchase it (a realtor and an individual). Councilman Moore asked if the city would keep the parking lot clear of snow and regular checks of the building for damage through the winter (broken pipes, etc.). Ross answered, an inspection of the property would be taken before accepting the keys. Also, the parking lot would be kept open so the building does not appear to be abandoned, as well as for fire protection and to show the building. Councilman Bannock asked if there had been any correspondence with the parent company letting them know their signs are on a vacant building. Ross answered, not recently, but that the correspondence in the file advised the city that any attempt to market the building in any way that makes it look like a Dairy Queen, would cause them a problem. Also, any condition of lease or sale to anyone other than a franchisee involves the removal of anything identifying the building as a Dairy Queen. Bannock asked if the signs should be removed prior to the sale of the building. Ross answered, he didn't think so as it may be possible a purchaser could be a francihee. Bannock suggested that contacting the parent company about the availability of the building may encourage. them to help find a buyer for the building. He added, he believes Dairy Queen owns the signs, but the city owns the building. if the city orders the signs be removed, it may encourage the parent company to find a - buyer. Ross stated he would review the correspondence. 1.3. Attorney Attorney Graves referred to the Senior Housing Agreement, Page 8, Paragraph N and noted, "...Tenant will pay when billed, or within 30 days after receipt of a billing, the cost of damages caused by Tenant, Tenant's family and/or guest(s) of Tenant when such damages are beyond normal wear and tear..." He felt that would cover the concerns council had as to damage above and beyond normal wear and tear, although he would review the agreement again and make the adjustments council requested. 1-4. City Cleric a. Disposal of Records - Clerk Freas referred to her memorandum which listed records to be destroyed in accordance with Code requirements. . KENA1 CITY COUNCIL MEETING MINUTES OCTOBER 15, 1997 PAGE 17 • 0 b. Continuation of Terms - Clerk Freas referred to information included in the packet which listed those commission, committee and rd members whose terms will end in January. Freas noted, if there were no objections, she would write to those listed to inquire of their interest to continue and added, those wanting to continue would be referred back to council for reappointment. There were no objections. C. Student Government Day - Freas reported on d be best for her tten to the government teacher at KCHS and asked hat ate w students to take part in the city's Student Government Day and council meeting. She added, as yet, there had been no reply. d. Student Representatives/City Commissions - Freas reported she had sent a letter to KCHS requesting students who may be interested in being appointed as a student representative to a city commission be directed to apply to the City Clerk. Again, there had been no reply. I.S. Finance Director Finance Director Semmens reviewed his investment report memorandum which was included in the packet. He requested council to call him if they had any questions of him in regard to the investments and his strategy. I-6. Public Works Director a. Public Works Director Kornelis reported he met with representatives of DOT in regard to STIP projects. They requested the city consider a resolution supporting a bike path to be placed along the Bridge -Access Road in order for the project to acquire points for priorities. DOT will be upgrading the Bridge Access Road, but he had not seen plans as to where the path would be placed along the road. Swarner stated she had no objection to a bike path along the Bridge Access Road, but only if the path would be s iaced alonside t is the one along the so the city will be able to maintain the path (a Spur). , Discussion followed regarding W' 'ams' concern that the Spur Highway at the Willow Street intersection was in terrible repair and that the city should turn DOT's attention to its repair in addition to the poorly designed turning lanes, etc. of the Bridge Access Road onto Tern Avenue and the Spur Highway. It was noted funds to repair the highway comes • KENAI CITY COUNCIL MEETING MIINUTE3 QCTOBER 15, 1997 PAGE 18 • 0 from another source. Williams suggested the city strongly inform DOT of the concerns at least to get the concerns on record. Ross agreed with the concerns of the intersections, but noted, the funds for those repairs come from a different source than the bike path. He added, the wording of the resolution would be like the one approved previously by council - sweeping surface debris removal only. The resolution would give the message the city will cooperate to some extent and to help acquire points for DOT for the development of the path. Smalley stated he had no objection to consideration of a like resolution. He also is very concerned about the lack of care to the intersections as discussed by Williams. Kornelis reported, the concerns as to Tern Avenue were brought to DOT's attention during the design phase of the road upgrade. Ross stated he would have Kornelis send a letter to DOT regarding the city's concerns and include accident statistics, etc. I-7. Airport Manager Airport Manager Ernst reported paving of the new taxiway was not able to be completed prior to the cold weather. That portion of the taxiway has been blocked off for the winter, although the ski strip will be opened. He added, they hoped to be able to pave in May. • tTEm J. D, BCV-SION - - J-1. Citizens - None. J•2. Council Bookey - No comments. Swarner - No comments. Moore - Reported he would be attending his first Kenai River Special Management Area meeting as the city's representative on October 16. Measles - No comments. Bannock - No comments. Smalley - Reported the Borough Assembly has requested a 30-day extension to comment on the KRSMA Plan. Williams - Introduced Jay Barrett, the new reporter for the local public radio station, KDLL. KENAI CITY COUNCIL MEETING MINUTES OCfOB1:R 15, 1997 PAGE 19 ITZtou r The meeting adjourned at approximately 9:25 p.m. Minutes transcribed and prepared by: 4��9� Ir Carol L. Freas, City Clerk • 0 ,f.i'�,,V.•IED ©Y CWNCIL