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HomeMy WebLinkAbout1996-04-17 Council Minutes• A. 8. �J C. C� AGENDA KENAI CITY COUNCIL - REGULAR MEETtNQ APRIL 17v 1996 7100 P.M. KENAI CITY COUNCIL CNAM8ER8 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 itst normal sequence on the agenda as part of the General Orders. B EDULED PUBLIC COMMENT (10 Minutes) 1. Thelda a Cristel Fields - KCHS After -Prom Committee Request. 2. Elton MaGaban - Alaska Circle Track Association/Twin Cities Raceway Request, 1. Ordinance No. 1684-96 - Increasing Estimated Revenues and Appropriations by $3,380 in the General Fund for Repair of a Damaged Police Vehicle. 2. Ordinance No. i688-96 - Amending Title 23,.Sections 23.10.020, 23.10.030, 23.25.060(d), 23.25.060(e), 23.30.0508 23.40.030, of the Kenai Municipal Code to Bring Municipal Personnel Policies Into Compliance with the Provisions of the Fair Labor Standards Act. 3. Ordinance No. 1686-96 - Amending the Kenai Municipal Code by Adding Section 13.30.035 to Codify the City,'s Authority to Establish Pay Parking Lots on City Property and Providing for Towing of Vehicles Which are Improperly Parked at Said Parking Lots. 4. Ordinance No. 1687-96 - Amending the Kenai Municipal Code by Adding Section 13.30.095 to Prohibit Parking on Kenai Avenue. -1- 5. Ordinance No. 1688-96 - Increasing Estimated Revenues and Appropriations by $70,000 in the Soils CIIAP Capital Project Fund for Clean-up of Lots 13 and 148 Cook Inlet Industrial Air Park. 6. 1996/97 Liquor License Renewal Withdrawal of Protest - Casino Bar - Beverage Dispensary. 7. 1996/97 Liquor License Renewal Application - New Peking Restaurant/Eating Place. 8. 1996/97 Liquor License Renewal Application - American Legion Post #20 - Club. D. COMI§J119j"OMMITTES RRPORTB 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 L. MINZtTEB i. *Regular Meeting of April 3, 1996. 00 OLD BUBINEBB a 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1689-96 - Increasing Estimated Revenues and Appropriations by $2,592 in the Senior Citizens - Borough Special Revenue Fund. 9 -2- E E 4. *Ordinance No. 1690-96 - Increasing Estimated Revenues and Appropriations by $2,500 in the Senior Citizens - Borough Special Revenue Fund for Needed Operating Expenditures. 5. Approval - Amendments to Mayor's Council On Aging By - Laws. 6. Discussion - Hotel/Motel Room Tax. EXWUT='VS 82001 N - None scheduled. I • ADMINIB'PRATION ,B31=8 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public works Director 7. Airport Manager J, DIBCIIB ION 1. Citizens ( five minutes) 2. Council K • -3- KENAI CITY COUNCIL - REGULAR MEETING APRIL 17, 1996 7800 B.M. KENAI CITY COUNCIL CIU M8ERB VICE MAYOR H. RAYMOND XBROLB8, BREBIDIHG Vice Mayor Measles called the meeting to order at approximately 7:00 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: Swarner, Moore, Bannock, Smalley and Measles. Absent was Williams. A-s0 Bookey, • Vice Mayor Measles requested the following changes to the agenda: ADD AS B-31 Chief Hurnatt/Airport !tanager Ernst - Alaskan • Regional Aircraft Fire Training Center at Kenai - Video Presentation. ADD A8s I-1, Mayor's Report - DNR letter requesting appointment of city representative to participate in a technical working group to assist DNR staff and KRSMA in updating the state's Kenai River Management Plan. ADD A8s I -as, City Manager's Report - 4%17/96 TM memorandum appointing Pat Porter as Acting City Manager. ADD A8s I-2, City Manager's Report - 4/16/96 TM memorandum regarding meeting with DNR and city representatives on potential land swap. ADD AB: I-2, Citp Kanager#s Report - 4/16/96 Gray Video Productions letter request to use portions of City video and approved by TM. Finding no other changes requested,'Vice Mayor Measles declared. the agenda approved as amended. 0 e �J • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 2 A-6. Finding no changes requested to the consent agenda, Vice Mayor Measles declared the consent agenda approved as presented. 17 OCHEDULED PUB!i= COMMENT B-1. Thelda i Cristel Fields - KCHS After -Prom Committee Request. Thelda i Cristel Fields - Mrs. Fields referred to the letter included in the packet and introduced herself as d member of the KCHS "after prom committee." Fields explained that this year, because there are three proms scheduled for the same evening, it has been difficult to acquire food and financial donations from area businesses for the "after prom" activities. These activities have been offered to students for a number of years in order for the students to have a safe place to go after the prom, to play games and socialize. The idea is to keep the kids off the streets, driving around, etc. Because donations have been very scarce this year, Fields requested council to reduce the cost of the rental fee for the Recreation Center or a waiver from the cost. Fields explained that the committee would like to use the Recreation Center for after prom activities and added that Bob Frates and Jean Goodlife, city employees at the Center, have donated their time for the evening. Councilman Smalley asked McGillivray if there would be a problem allowing employees to volunteer their time. McGillivray stated no. Smalley asked if it would be acceptable to have after -prom committee members clean up the Center at the end of the activities. McGillivray stated it would be acceptable. NOTION: Councilman Smalley MOVED for the City to waive the fees of the facility as requested and that the arrangements be worked out with the committee to take care of the situation. Councilwoman Swarner 88CONDED the motion and requested WANIMOUS CONSENT. There were no objections. 80 ORDERED. B-2. Elton MaOahan - Alaska Circle Track Association/Twin Cities Raceway Request. KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 3 Elton MoGahan - Mr. McGahan introduced himself and referred to his letter included in the packet. McGahan explained that the City may have some surplus fencing available and as a representative of the Alaska Circle Tract Association/Twin Cities Raceway, was requesting the surplus fencing be donated to Twin Cities Raceway to be used as a safety fence. Councilman Bookey asked if the City had surplus fencing. McGillivray answered it was fencing that was donated to the city from the Borough. Some of the fencing was used as back -stops for the ball fields by the Middle School. Not all of that fencing was used for the ball fields. McGillivray added, he did not anticipate the need for the remaining fencing. Councilman Moore asked McGahan how it would be used as a safety fencing. McGahan explained they would be moving their safety area from the center of the track to the back of the field. The fencing would help to separate the area and keep it safer. Moore asked Vice Mayor Measles if there would be any liability to the City for the Raceway to be using the fencing as a safety fence. Measles answered, the city would not be installing it. The city would be giving the fencing to the Raceway. Councilman Bannock asked McGillivray what fencing if it would not be donated to the answered, nothing. It would remain in a area. MOTION: would happen to the Raceway. McGillivray pile in the storage Councilman Bannock MOVED, pursuant to the request of Twin Cities Raceway, to donate to them the excess fencing which was donated to the City of Kenai. Councilman Bookey SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. s0 ORDERED. B-3. Chief Burnett/Airport Manager Ernst - Alaskan Regional Aircraft Fire Training Center at Kenai - Video Presentation, Fire Chief Burnett and Airport Manager Ernst showed a video presentation of the Alaskan Regional Aircraft Fire Training Center at Kenai which was recently developed. Burnett referred to the course catalog information which was distributed to council at the beginning of the meeting. Burnett noted there • would be some modification to the title page, removing the city's e KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 4 log and putting a crash car on it. The video and catalog information was developed for promotion presentations for the facility. There is a 60-day window in which to make the necessary presentations to FAA, etc. They are now preparing a business plan for the facility. He, Airport Manager Ernst and Mayor Williams will be traveling around the state to make presentations to five municipally owned airports, including Anchorage and Fairbanks. They will also be meeting with representatives from DOT in Juneau. With their approval, they will be able to finance the business plan and submit it to FAA this year. By October, they should have allocation of funding from the federal government and construction should then being by•April, 1997. Burnett added, after last week's presentation, the Alaska Fire Chiefs Association has offered their support and will be helping to write the business plan. If DOT signs off on the project, they should not have any problem getting funding from FAA. • Bookey asked how many people, a year, would be going through the facility. Burnett answered, they approximate 200 Alaska students. The facility will also be marketed to this side of the Continental Divide as well as Russia, Canada and Japan. The training can be two-day programs to two -week courses, depending on the course requested. Burnett added, the facility will be available to all fire departments, not just municipalities with airports, which would include mutual aid groups as well. Additionally, required fire training classes may increase from one a year to four. Councilwoman Swarner asked who would run the facility and be responsible for it. Burnett answered, the city would be responsible for the facility, however the University of Alaska may be responsible for operations. This is to be worked out. The next closest facility of this type is under construction in Salt Lake City. Burnett added, there had been discussion of some military users as well. The facility would be a twelve-month operation. It would be a clean -burning facility. • • KENAI CITY COUNCIL HIEETING MINUTES APRIL 171 1996 PAGE 5 ITEX _CI PMMIC HEARINOB C-1. ordinance No. 1684-96 - Increasing Estimated Revenues and Appropriations by $3,380 in the General Fund for Repair of a Damaged Police Vehicle. MOTION: Councilman Smalley NOTED for adoption of Ordinance No. 1684-96 and Councilman Bookey SECONDED the motion. There were no public or council comments. VOTE: Bannock: Yes Smalley: Yes Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes • MOTION TABBED UNANIMOUSLY. C-a. Ordinance No. 1685-96 - Amending Title 23, Sections 23.10.020, 23.10.0300 23.25.060(d), 23.25.060(e), 23.30.050, 23.40.0308 of the Kenai Municipal Code to Bring Municipal Personnel Policies Into Compliance with the Provisions of the Fair Labor Standards Act. MOTION: Councilman Bookey MOVED for approval of Ordinance No. 1685-96 and Councilman Smalley BECONDED the motion. There were no public or council comments. VOTE: Bannock: Yes Smalley: Yes Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes MOTION TABBED UNANIMOUSLY. C-3. Ordinance No. 1686-96 - Amending the Kenai Municipal Code by Adding Section 13.30.035 to Codify the Cityls Authority to Establish Pay Parking Lots on City Property and Providing for Towing of Vehicles Which are Improperly Parked at Said Parking Lots. KENAI CITY COUNCIL MEETING MINUTES • APRIL 17, 1996 PAGE 6 F,,-,`,E Councilman Bannock MOVED for adoption of Ordinance No. 1686-96 and Councilwoman Swarner BECONDED the motion. There were no public or council comments. VOT2s Bannock: Yes Smalley: Yes Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes (LOTION PASSED UNANIMOUSLY. C-6. Ordinance No. 1687-96 - Amending the Kenai Municipal Code by Adding Section 13.30.095 to Prohibit Parking on Kenai Avenue. NOTIONS Councilman Bannock MOVED for adoption of Ordinance no. 1687-96 and Councilman Smalley SECONDED the motion. Jobe Elta - Stated he supported the ordinance and felt it should be given stronger language by adding KMC 13.30.095. There were no other public comments. Councilman Moore asked if this was councils answer to the problem as he was not convinced that it was. Smalley stated he agreed, but felt it was part of the problem that needs to be remedied. Bookey stated he agreed also but asked Kornelis if it meant that there would be no parking along Kenai Avenue and only a loading and unloading area? Would it eliminate all parking on the Avenue? Kornelis answered that he understood that parking would be only in an designated area. There are only three or four areas where parking would be available. Moore stated he was not convinced that would work as the Avenue is very narrow and it is doubtful that two RVs could pass. There is room for a turnaround, however it would be difficult for a 301 RV to be able to turnaround there. Signs alone wouldn't work either. • Bookey asked Chief Morris if he felt this would be enforceable. Morris stated it would be difficult to enforce as there will be a • • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 7 24-hour a day dipnet fishing opening. Their seasonal enforcer will be working 40 hours a week. If an enforcer is present early on and vehicles are towed during the day and over the weekends, it may deter people from parking there. Swarner stated the council has addressed the dunes many times before. She believed the ordinance will be a beginning. She supported the ordinance. Bannock stated he supported the ordinance because without it, there would be no rule. However, if fishers can't find a reasonable parking spot, they will find an unreasonable one, if towing can be done at the airport, it can be done along the beach. . Smalley stated he agreed with council and added, an educational program, i.e. signs, towing, etc., along with the ordinance will help educate the fishers. He believes it is an initial step to take. That area needs attention. Moore suggested the south side of the river should have a similar ordinance to protect it as well. It is not fair to the residents on that side of the river. VOTE: Bannock: Yes Smalley: Yes Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes MOTION PASSED UNANIMOUSLY. C-5, Ordinance No. 1688-96 - Increasing Estimated Revenues and Appropriations by $70,000 in the Soils CIIAP Capital Project Fund for Clean-up of Lots 13 and 14, Cook Inlet Industrial Air Park. MOTION: Councilman Bookey MOVED for adoption and Councilman Smalley SECONDED the motion. There were no public comments. comfortable wih the amounts includedyandktheKdirecti if he was Kornelis answered, he was not comfortable, but it was probably the best that could be done. Engineering Technician stated th amounts were based on the consultant's findings. the KENAI CITY COUNCIL MEETING MINUTES • APRIL 17, 1996 PAGE 8 VOTBt Bannock: Yes Smalley: Yes Willian Bookey: Yes Swarner: Yes Moore: Measles: Yes LOTION PASSED VN11IiiXX0V8LY. C-6. 1996/97 Liquor McOns* R*n4w41 Withdrawal Casino Bar - Beverage Dispensary, Clerk Freas explained the city•s letter of protest was based on amounts owed to the Borough. A letter from the Borough was received which stated those amounts were paid and the accounts were now current. The Borough withdrew their protest. MOTIONt Councilman Smalley MOVED to withdraw the City of Kenai protest • for the liquor license renewal for the Casino Bar. Councilwoman Swarner BECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED, C-7. 1996/97-Liquor Linens* Rsn"pal application - New Peking Restaurant/Eating Place, Clerk Freas explained the New Peking was current with amounts owed to the city, however was not current with sales tax and missing filings with the Borough. Freas requested a motion from council to approve the liquor license renewal contingent upon the New Peking coming current by April 26, MOTION= Councilman Smalley MOVED to protest the 1996/97 liquor license renewal application for the New Peking unless amounts owed were brought current by April 26. Councilman Bookey BECONDED the motion. There wer11, e no public or council comments. r� KENAI CITY COUNCIL MEETING MINUTES APRIL 171 1996 PAGE 9 VOTES There were no objections. 80 ORDERED. C-s. 1996/97 Liquor License Renewal Application - American Legion Post 020 - Club. Clerk Freas explained the American Legion Post #20 was current with amounts to the City of Kenai, however were owing sales tax amounts and missing filings with the Borough. Freas requested a similar motion from council as was given for the New Peking. MOTIONS Councilman Smalley MOVED to approve the 1996/97 renewal for American Legion Post #20 contingent bringing accounts current. Councilwoman Swarner motion. There were no public or council comments. VOTES There were no objections. 80 ORDERED. ITEM DS C0=I80ION/C0MMITTEE REPORTS D-1. Council on Aging liquor license upon their SECONDED the senior Center Director Porter reported she had received notification that the grant monies for 1995/96 had been decreased by foi,r percent. They are dealing with that right now. They had expected a five percent decrease so they had been very careful with their funds. The four percent decrease comes from their fund budget. D-2. Airport Commission Vice Mayor Measles reported the Commission minutes from their last week's meeting were included in the packet. D-3. Harbor Commission Councilman Bookey reported the Commission met on April 8 and the minutes were included in the packet. Most of the meeting discussion was in regard to the dunes and the proposed parking • • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 10 ordinance. The Commission supported the ordinance. Councilman Moore was also at the meeting and discussed concerns he had. Bookey added, he believed there will be other issues in the future. D-4. Library Commission Councilman Moore reported the next meeting was scheduled for May 4. The last meeting's minutes were included in the packet. The library will be open on Sundays during April. Sunday openings will be staffed by volunteers. D-5. Parke i Recreation Commission Councilman Bannock reported at the Commission's last meeting, they discussed budget items and the Rotary Club's proposed matching grant for old Towne Park improvements. The grant has been approved by the Rotary Club. McGillivray will be meeting with Rotary representatives to work out the details. Bannock also reported the Commission suggested that if council was contemplating the building of an ice rink, one similar to the Nikiski rink be considered. Also, the Commission requested that discussion in regard to the ice rink be brought to the Commission for review, etc. Bannock reported Director McGillivray also announced his retirement at the meeting. Smalley agreed the Commission should be kept apprised of ice rink plans as last year the Commission was omitted from the discussions and want to be included in any future discussions. D-6. Planning i zoning Commission Councilman Smalley reported he was not at the meeting, but reviewed the minutes with council. Smalley reported a conditional use permit applied for by Marathon Oil was approved. Action on a conditional use permit for a guiding business at Angler's Acres was postponed until the amount of boats operating from that dock could be determined. Action on the main motion for the proposed halfway house failed. There was also a long discussion in regard to the sign code and the opinion of the Historic District Board that the code did not speak to historic correctness for the Townsite Historic Zone. No action was taken. KENAI CITY APRIL 17, PAGE 11 COUNCIL MEETING MINUTES 1996 Smalley reported there was a long discussion about the proposed residential zone. The matter will come to public hearing in the near future. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Councilwoman Swarner reported the minutes of the last committee meeting were included in the packet. There will be a volunteer orientation meeting in the council chambers on April 30 at 7:00 p.m. Swarner encouraged any interested persons to attend. D-7b. Historic District Board No meeting since the last council meeting. D-7a. Challenger Steering Committee Councilman Bannock reported the committee met the day before. They were making plans to make a public announcement if Kenai is awarded the site location. D-74. Kenai Visitors i Convention Bureau Board Councilman Bookey reported there were no minutes included in the packet, however at the last meeting Rita Smagge (Kenaitze Indian Tribe) and Will Jahrig were appointed to the board. Kim Booth reported they were gearing up for the. summer. They will be using the volunteer program again as it was successful last year having volunteers available to show people around and answer questions. They are considering a second visitors, desk at the airport which would include more city-wide information instead of Borough -wide. Councilman Smalley, referring to visitor information Booth distributed to council at the beginning of the meeting, asked Booth how accurate the numbers were and how they are impacted by the counter. Booth answered the visitor count was taken on a daily basis at the front door. July and August is when they have the most new visitors using the facility. They have a real good, feel for how many people come in, go out, and come in again.. Smalley asked if the Board would consider charging a $1.00 fee to visitors using the facility in June, July and August. Booth answered they have discussed this at committee and board • • • KENAI CITY COUNCIL MEETING MINUTES APRIL 171 1996 PAGE 12 meetings. Their feeling is there may be more harm than good if they charge an entrance fee. They have found, at other visitor centers, that unless it is.a very large facility, charging a fee would more likely cause a loss of visitation. They probably will discuss the matter again in the future. They are still trying to get the fullest use of the building and a charge would be a disadvantage at this time. Vice Mayor Measles added, charging a fee is not allowed because of the federal funding and the Lake Clark display. Bookey stated they found that if the Lake Clark display is open to the public at no charge, they could charge for the other area of the facility. Booth added, through her travels to other centers, she has learned that having a donation area and a greeter at the door is very helpful. They will be doing some things to try to increase donations. BREAK TAKEN= 8:oo B.M. BACK TO ORDER: Silo P.M. E-1, Regular Meeting of April 3, 1996. Approved by consent agenda. None. ITZK O: OLD B9SXNZ88 None. H-1. Sills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. KENAI CITY APRIL 17, PAGE 13 COUNCIL MEETING MINUTES 1996 Councilman Moore asked what the "exchange difference" was on the Payment to Utility Supply of America. Kornelis answered he believed they.exchanged a pump and the price on the new pump was higher than the purchase order was originally. Sweeney stated the invoice sent by the manufacturer exceeded the purchase order amount which was previously approved by council. Because the amount was higher, the purchase order needed to be brought back to council. There were no objections. S0 ORDERED, 8-2• Purchase Orders 939000ding $2,500 NOTION: Councilman Smalley MOVED for approval of the purchase orders exceeding $2,500 and Councilman Bookey SECONDED the motion. There were no objections. 80 ORDERED. 8-3• Ordinanoe No. 1689-96 - Increasing Estimated Revenues and Appropriations by $2,592 in the Senior Citizens - Borough Special Revenue Fund. Introduced by consent agenda. 8-4. OrdivanGS No. 1690-96 - Increasing Estimated Revenues and Appropriations -by $2150C in the Senior Citizens - Borough_Special Revenue Fund for Needed Operating Expenditures. Introduced by consent agenda. 8-5. Approval - Amendments to Mayoras Council on Aging By - Laws, Councilwoman Swarner asked if the amendments had not already been approved. Acting City Manager Porter explained that they had come to council -one time. Council suggested the board member amount be changed from seven to nine. The by-laws were sent back to the Council on Aging for their approval and, inadvertently, they were not sent back to the City Council for their final approval. C7 i KENAI CITY COUNCIL MEETING MINUTES • APRIL 17, 1996 PAGE 14 MOTIONS Councilwoman Swarner MOVED to approve the amendments to the Mayor's Council on Aging By -Laws as presented. Councilman Bookey SECONDED the motion. There were no objections. 80 ORDERED, M-6• Discussion - Hotel/Motel Room Tax. Councilman Bookey explained he requested this topic be placed on this agenda because the council stated, at the time of passage of the ordinance, that they would re-evaluate the ordinance after one year. It has been two years and he wanted to discuss the matter with hotel/motel owners. Don Aase, King's Inn - Mr. Aase explained that ld the King's Inn and in 1989 he had to take itback. 19Between 86 he o1986 and 1989, there was no Visitors' Center and now there is. The revenue that comes from the motel industry is way down. Soldotna is doing much better than the City of Kenai. He has invited council and their accountant to look at his books to see what the revenue has been. Some have reviewed the books. Aase added, council should realize the King Salmon Motel (in Soldotna) was built at the same time as the King's Inn. The King Salmon is doing two times more business it used to and the Kenai motels are doing half as much. Aase also stated that truckers (Lynden Distributors, Snap -on Tools, etc.) are staying in Soldotna because of the lower room rate. The Visitors Center may be doing good, but the hotel/motel- tax is harming the motel industry because their customers are fighting with them at the desk. The Visitors' Center forwarded customers to him. He dropped his membership to the Center because he was not in favor of the bed tax. Aase added, he would Fell the motel to anybody for $1 million less than what he sold it for in 1989. That is how bad, in comparison, the business is. If the bed tax was helping them, he would be in favor of it. Also, Kenai's hotel/motel business with a bed tax and another town nine miles away that doesn't have a bed tax cannot be compared to Anchorage and other areas where there is a bed tax. Joe Arness, Renai Merit Inn - Mr. Arness stated he was seen as IS the most positive motel owner in regard to the bed tax. Four years ago he got involved with the Merit Inn and it was a foolish thing to do. He sees the hotel/motel tax as simply another • KSNAI CITY APRIL 17, PAGE 15 COUNCIL MEETING MINUTES 1996 obligation. If Kenai were a tourist destination and their motel rooms were full, it would be fine. His operation has lost money for four years. The bed tax is a business expense. If he could rent 10,000 rooms here at $66.00 a night he could give the city $33,000. The bed tax was money directly out of his pocket. The bed tax is a direct obligation to him. It has nothing to do with an add -on. Arness continued, stating that people do not come to Kenai to go to the Visitors' Center. He believed Kim Booth was trying to help the operators, but to him, help would not be to pay more out, it was to bring more in. He was not sure a bed tax is the answer to funding the Visitors' Center. He asked for council's reconsideration of the ordinance. Arness added, three of the four main hotels in Kenai are actively looking for buyers at this time. Councilwoman Swarner referred to Arness' statement that it was a business expense for him, and asked, if he was charging the additional bed tax. Arness answered yes, and when it was time to pay the payroll and utilities, it felt the same as paying the electric bill, etc. Arness added, it is not a perfect world and banks don't like to talk to motel owners in Kenai because there is not enough business to support them. They find financing where they can to keep their doors open. In that respect, the bed tax becomes nothing more than another expense. But, you have to do what -you have to do. Then you come to fists with the city. He added, he knows Cary Graves much better than he would like. He doesn't want to have to deal with Cary Graves. Swarner asked the operators in the room if they were catering. Mr. Arness stated he was. Louis 8ohilling, uptown Motel - Mr. Schilling stated he had been through the whole circuit and seen how it affected his business. The bed tax was presented three years ago. The theory was that the city was doing so much good for the industry that the industry should pay. However, occupancy rates fall each year and last year was the worst. 65% occupancy is typically the break even amount. He paid more bed tax than the others in Kenai and using that figure, he had a 41% occupancy rate. Schilling added, he called operators in Seward to find out what their rates were going to be for the summer. In theory, bed tax KENAI CITY APRIL 17, PAGE 16 COUNCIL MEETING MINUTES 1996 is an add -on. Seward now has a bed tax and they will be charging $168 a room. Seward operators were sold out 50 days last year. He sold out only seven days last year. Because he has no occupancy rate, he has tried to sell rooms at whatever rate he can to get the business. Schilling stated he believes in Kenai, but at this time, he can't sell his business for what he owes. None of the Kenai operators can. His business is family operated. Without them working, the business wouldn't work. They tried to take the profit they didn't have and put it back into the business. Because it is family operated they can do that. Other operators can't do it if there is no business to support it. The Uptown Motel is the only motel in Kenai that has not gone broke. The industry does not survive in Kenai. You can't justify spending on a negative cash flow. He's borrowed money to put in it. If push comes to shove, he believes he can survive it, but thinks all business people in Kenai should have a fighting chance. The . Mom -and -Pop businesses can't compete anymore. He doesn't blame the bed tax, it's their own trouble, but the bed tax worsened it. Schilling added, the bed tax collected $140,000 for the city last year. The bed tax collected was profit out of the operators' pockets. Swarner asked if the restaurant and lounge profits decreased. Schilling answered they were holding up. He added, during the winter months he went to Anchorage and stayed at the Captain Cook. They had two rooms left and it was their May through October season. If the Kenai operators could fill their motel rooms in June, July and August, they would be glad to pay the bed tax. Schilling also stated that the bed and breakfasts and fishing guides are offering lodging with their packages. They are taking the hotel/motel summer business and close during the winter. He used as an example the small lodging facility being built by the Elks Club. The owner is from Oregon and lives in the area and runs his business during June, July and August, then leaves at the end of the season. It is very frustrating. He, like others, has made a long-term investment, but when they want to sell, they can't because there is no market. He can't show on paper how it Will flow and it all goes back to revenues. Swarner asked if salespeople stayed at his motel during the winter. Schilling answered yes, usually nine to ten a night. He rents less than half of his rooms on a year -around basis. • KBNAI CITY APRIL 17,9 PAGE 17 COUNCIL MEETING MINUTES 1996 Jim Biugree, Katmai Motel - Mr. Singree thanked council for approving the payment plan at a recent meeting. He added, -it has been a knock -down, drag -out fight for business. 1993, 1994 and 1995 were very bad years for business. He thinks the RV parks have hurt the motel business. Something needs to be done .to get people to come back to Kenai. Only some of the businesses have a place for Rvs to park. He feels the bed tax is another bill that needs to be paid. He added, he appreciated the discussion. Councilman Bannock thanked the people that spoke to the topic. He added, he didn't think people were coming to Kenai to go fishing. Kenai is a great place, but doesn't think the City of Kenai is doing anything to bring people to Kenai. He believes the bed tax is a punishing thing -- anytime there is a tax without a direct benefit to it, it is a terrible thing. He would like to do something about it. Councilman Smalley reminded council they said they would readdress the discussion to look at other avenues. One thing they talked about was equity. They need to do something that is • fair and equal to all who gain from tourism. The bed tax singled out four major business and bed & breakfasts. They are a small part of the community. He would like something that is more all - encompassing. Smalley added, he would like council to consider sunsetting the bed tax so that it would not be in effect for a time to allow review of a sales tax that everybody pays. Homer added an additional one cent. The sunsetting-would--allow-time to seewhat would happen with if there is a one-half cent or one cent addition to the sales tax for a year. The Center is a wonderful facility and he would probably visit it if he was a visitor coming to Kenai. Most people come for the fishing. It is a building that is supposed to be promating the business the bed tax is on. He added, he thought the council could remedy the situation and should give careful consideration of it. Finance Director Sweeney stated an extra one percent a year would add a $1.1 Million to the city's revenue. NOTION$ Councilman Smalley MOVED that the City of Kenai sunset the bed tax issue, effective May 1, 1996. Councilman Bannock SECONDED the motion. 0 • KENAI CITY COUNCIL MEETING MINUTES APRIL 171 1996 PAGE 18 Councilman Moore asked for how long the bed tax would be sunsetted. Smalley answered, until someone brings it back. The reason he suggested sunsetting it was because it is a lot of effort to bring it back if it were repealed. Sunsetting would make it easier to bring it back if there is a need for it. Council probably wouldn't be as concerned if other communities had one and when elements of the industry say they aren't paying it for whatever reason, it is not real fair. Sweeney referred to Chapter 7 of the code and stated he believed an ordinance would be needed. Smalley suggested administratively sunsetting the ordinance and then Administration would have to bring forth an ordinance to amend KMC 7.12. Vice Mayor Measles advised the earliest effective date of an ordinance would be June 15. Smalley stated he could make that adjustment as he thought it was something that needed to be done. MOTION TO AMEND: Councilman Smalley MOVED to amend his motion to make the effective date as early as June 15, depending upon 30 days after the ordinance is enacted. NO SECOND. Swarner stated it would be an accounting nightmare because of the end of the quarter (June 30). Measles suggested to Smalley to change the motion to direct administration to bring an ordinance to the next council meeting which would sunset the bed tax ordinance as soon as it would be legally possible. NOTION TO AMEND: Councilman Smalley MOVED to amend his motion to direct administration bring an ordinance to the next council meeting which would sunset the bed tax ordinance as soon as it would be legally possible. Councilman Bannock SECONDED the motion. VOTE ON AMENDMENT: There were no objections. 80 ORDERED. Smalley suggested a motion to have Administration bring information to council as to what they should do to review an increase in sales tax. Measles suggested since the sunsetting of the bed tax was to be considered by ordinance in the near future, KENAI CITY COUNCIL MEETING MINUTES • APRIL 17, 1996 PAGE 19 council would be discussing a raise in sales tax during their next budget work session. Removal of the bed tax would eliminate approximately $140a, out of the budget revenues. Smalley noted that the budget information included in the packet showed the General Fund Sales Tax revenue from the hotel/motel tax was shown as $1028500 and not $140,000 as recommended by the city manager. The actual amounts through March 1 were listed as $60,000. He did not think the $140,000 would be an accurate amount, but it was still a concern. $82,839 was last year's actual amount. BugcuTivs 886819N - None scheduled. I-Z• Mayor Vice Mayor Measles o n ted there were several items included in the Packet for council's review. The letter distributed at the beginning of the meeting from the Department of Natural Resources needed action as it requested the appointment of a City of Kenai representative to their technical working which be working with the Kenai River Advisory Boad to update thelKenai River Management Plan. Swarner noted Engineering Technician Clark had stated her - interest. Measles suggested it would be better to have Attorney Graves represent the city as he has been involved with the Kenai Peninsula river ordinance discussions. There were no objections to the appointment of Attorney Graves to the working group. =•a• City Manager Acting City Manager Porter noted there were three items added to the agenda from the city manager for council to review. I-3 . Attorney Absent. 0 • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 20 _m4 • City Clerk a• XCR8 Alter Graduation Donation - Clerk Freas refer to the letter included in the packet which was red KCHS "After Graduation" Committee in which the received from the donation for the after Y requested a council budgeted $300 in their Freas noted asked for direction to have the check prepared forpOBi Freas MOTION= r this purpose. Councilman Smalley MOVED to make the $300 donatio "After Graduation" Committee. n to the KCHS an motion. There were no objections. gO ORDEREkey BECOHDBD the D. b. Alcoholic Beverage Control Board Meetin reported she had attended a g - Freas Anchorage that morning. ShePortion of the ABC board meeting in represented the city in regard to its protest of the renewal of the Kenai Merit Freas explained the city and the Borough had proIn liquor license. p renewal of the liquor license in March 1995. tested the subsequently withdrew their protest when amounts owed Borough Borough were brought current. owed to the protested the renewal of the license sreferrin to letter amounts the Boroughs letter g to the same city's protest. Protested, the ABC disregarded the Freas added she had inadvertently omitted the bed tax and water/sewer charges which were owe was part of the councils protest, d to the city and The ABC Board, at that morning's meeting, reco erred in disregarding the city•s protest and Freas h that they not including the bed tax and water/sewer charges had erred in protest letter. The renewal g in the city�s disregarded because both ABC question cityMerre' 1995 was did recognize the cityis letter of January 31, d' However, ABC subsequent letters which delineated amounts owed and withdrawal of the Borough's since the operation. ABC denied the renewaltofstheprotest of continued city's protest of continued operation. license based on the X-5. Finance Director a• Conference Attendance - Sweeney reported he and Feltman would be attending the Alaska Finance Off Robin in Sitka next week. icers Conference • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 21 b. Budget Work session - Sweeney reminded council there was a budget work session scheduled for Wednesday, April 24. Because he will be at the conference, City Manager Manninen would represent the Finance Department at the work session. c. Upcoming Personnel Ordinances - Sweeney reported that budget -related personnel ordinances requiring 30 days after passage for enactment must be introduced in May. To that end there will be ordinances in the next packet for introduction. Councilman Smalley asked if a packet for the work session would be made available at the Police Department prior on Friday. Clerk Freas answered yes. Councilman Moore noted that in the budget, taxes were budgeted at 100% collection. Moore asked if that should be reduced for what can be anticipated to be collected and not to overstate the revenues? Sweeney answered they wouldn't overstate the revenues, as far as the financial statements. Moore clarified it was the budget he was referring to. Sweeney stated it was a forecasted figure which was based on an analysis of what had happened in the past, especially in terms of property taxes. He tried to forecast the best he could. If council wanted to allow a 95% factor, he could work that in. He requested guidance from council as to whether to do that. Sweeney continued, the amount of extra revenues which would be adjusted would be pretty minimal, but if council wanted that type of accuracy, he could include it. Sweeney stated the amount would be approximately $10,000. Moore stated the revenues were already short, he didn't want to be overly optimistic. Measles noted that revenues couldn't be estimated any closer than $10,000. No direction given. Public Works Director Kornelis referred to Information items 3 and 4 which was information council requested regarding the fish tax and what the City of Homer was doing, i.e. trying to change the allocation from the point of processing to the point of landing. Kornelis added, he did not think that would be good for the city. Councilman Smalley asked if Mr. McCubbins called Kornelis in regard to the welcome sign. Kornelis answered no. Smalley added, McCubbins told him the sign was ready. He is waiting for the ground to thaw. Smalley told him he needed to contact • KENAI CITY COUNCIL MEETING MINUTES APRIL 17, 1996 PAGE 22 Kornelis in order to schedule help from the city to place the sign. He would ask McCubbins again to contact Kornelis. Airport Manager a. Rental Car Spaces - Airport Manager Ernst reported he talked with Budget Car Rental (as requested by council) to see if she was interested in moving from her space down one space, or stay in her present space and allow space for the Visitors Center. Budget would prefer to stay in the present space. Ernst added, he told her that at some other date she may be required to move. b. Airport Walls - Ernst reported there are three walls at the airport that are covered with vinyl and it needs to be replaced or covered. He would like to cover those areas with a gray carpet, similar to the red carpet, used for contrast, now in the airport. The wails include the north wall in the waiting area, the south wall where the telephone bank is situated, and• the short small wall where the Kangas booking agency will be. Ernst added, they tried painting the walls, but it didn't turn out very good and the vinyl couldn't be removed without doing extensive damage. Removing the vinyl could entail re -sheet rocking. The carpet can be placed over the vinyl and would meet or exceed the fire code. The approximate cost would be $2,300 and he had that money in his budget. There were no objections to cover the three walls with carpet. c. ARFF Promotions - Ernst reported he and Chief Burnett would travel to Washington, DC and meet with the congressional delegation on April 30 and FAA, bringing them up to date with the progress of the ARFF proposal. They will be taking the video presented at the beginning of the meeting and other information. They will be traveling with the Vice President of Symtron. They will be attending a dinner which is given for the fire fighting comrunity at which legislators will be attending. They will return on May 1. Beginning May 5 they will begin the in -state traveling in regard to the ARFF. ITS DI89988ION KENAI CITY COUNCIL MEETING MINUTES . APRIL 17, 1996 PAGE 23 J-i. citizens Bob Peters - Mr. Peters asked if he understood that council had abandoned closing Kenai Avenue altogether. Measles stated council had taken a first step in passing an ordinance to not allow parking on Kenai Avenue. It is unknown at this time if they will close the road altogether. Moore asked if the city always had the option of closing the road. Bookey stated he thought so, however the private property along there should be considered. Peters suggested they could contact the gate keeper to get to their property. Peters added, he did not think closing the road to parking would protect the dunes, as people would still walk over them to get to the loading area. Bookey stated there was still the proposed building of boardwalks with grant monies from the Exxon Valdez settlement. Kornelis stated it looked positive for funding to be given to the city for boardwalks, however he did not think the funding would 0 come this year before the fishing season. Perhaps after the fishing season. Kornelis added, they would be placing logs or concrete pilings along the road to prevent people from walking over the dunes. At this time they have huge logs on the beach that will be moved and placed alongside the road until other things can be done. There are only a few small areas for parking. A lot of signs would have to be placed giving instructions regarding parking, no parking, loading and unloading. An area would have to be made for loading and unloading between the dunes. It would be well marked. Moore stated he would like to have administration bring an ordinance to the next meeting to assist the south side river as well as the north side of the river for dune protection. Moore added, he was not sure if there was an ordinance on the books already, but it was suggested to him that council should consider prohibiting parking or vehicular traffic above the mean high tide line within the city limits of the City of Kenai in the areas where there are dunes. It would help the south side parking problem and private property owners' concerns. Moore added, it could also help to limit the camping there because of the tides. Councilman Bannock stated he did not agree with that and Smalley stated he didn't necessarily disagree, but thought it was premature. He added, he thought at the last meeting when council discussed the matter with the resident, that administration would • • KENAI CITY COUNCIL MEETING MINUTES APRIL 171 1996 PAGE 24 investigate avenues of use over there but didn't know if anyone was working on the problem. Smalley stated he agreed, it is a problem. Swarner suggested a better way would have administration come back with what their plan is as far as the last discussion was. Moore reported Mr. Perrizc has had his attorney contact City Attorney Graves and is very serious about something being done on the north side Ito protect the dunes) and not on the south side. Smalley stated he would support Swarner's suggestion directing administration to bring a plan to the next council meeting. Bannock stated he saw a difference in that council was addressing a road on thw north side. Mr. Perrizo•s problem is a limited problem for which council suggested an alternative. Whether the alternative works needs to be seen. However, because of any action taken on the south side, the only vehicles on the south side are four-wheel drives because fishing is better over there. The people that will not be allowed to park on the north side will not be able to park on the south side either. He added, he didn't think any action taken to address concerns on the north side of the river would have any immediate impact on the south side of the river. Swarner stated she disagreed. like to see a plan of action. J-a. council Hookey - No report. Swarner added, she would still swarner - a. vacant Airport signs - Swarner asked Ernst if there were vacant signs at the airport and if so, were they notified that there were vacant sign spaces. Ernst answered yes, and added people have paid for signs and not put them up. Nothing precludes them from doing this. In the future, there would be a clause in the rental contract that would state the sign must be in place within 50 days. Swarner asked if the Terries Restaurant sign was still up. Ernst answered yes and it has been paid for by the people who lease the bar. The Terrie's sign was one of the signs council allowed to have placed. It is paid for but not accurate. • KENAI CITY APRIL 17, PAGE 25 COUNCIL MEETING MINUTES 1996 Swarner stated she was concerned that people want signs but there are no signs available. Ernst stated that hopefully the RFP for advertising will be advertised by May i and the name of the company that will be doing the airport advertising will be decided shortly after. The sign contracts run out on June 30. b. Bernie Huss Trail sign - Swarner brought to McGillivray's attention that the sign on the Bernie Huss Trail needed to be repaired. McGillivray stated the sign was repaired twice last summer. c. Water/Bever Deposit Concern - Swarner stated that one of her neighbors built a new house and were without water and sewer services for several months. When they went to city hall to apply for water/sewer service, they were told what the monthly rate was, but not that there was a deposit. They since have received a letter stating there was a deposit due. Swarner stated she was concerned the person was not told there was a deposit when they signed up and of customer service from the city departments (not only in the Finance Department, but thought customer service was lacking in all the departments, however sometimes service was really great). Swarner added, this person had been a resident for a very long time and was current with his water/sewer bills for approximately ten years. She stated she had a problem with asking f'or a deposit after the person had been current for a long time. It wasn't her neighbor's fault the house was not completed until eight months later. Swarner asked how the other councilmembers felt about the matter. Vice Mayor Measles asked Sweeney what the policy was. Sweeney stated he took personal responsibility for customer service in his department. The responsibility was on his shoulders and he would review the matter and see how his department could do better. The mistake was brought to his attention and before he made any decision about the customer's situation, he asked what the policy was and thought it did make sense that if there was a customer who had paid bills and was a customer in good standing, the customer shouldn't be required to pay a deposit again unless the situation changed. Certainly, if someone left the City of Kenai and moved back years later it would be different. The issue to him was to decide what would be an appropriate period of time for a break in payments for a customer for a good- KENAI CITY • APRIL 17, PAGE 26 COUNCIL MEETING MINUTES 1996 standing situation. He thought that in most cases this would happen with someone who is building a new house. They would probably sell their old house and move into temporary housing and when the new house was completed, they would move back in. He thought it would take about six months for that to transpire. Without looking at what the specifics were in this situation, he changed the policy to say that anyone who was in good stead, left and then re -instituted their service within six months would not have to pay a deposit. Outside of six months, they would have to pay it. After he made this determination, he briefed the city manager about the policy and he approved it as being the policy. Sweeney added, he thought it seemed to be a good policy to him. It was made in the abstract rather than based on the situation of a specific customer. He thought that was the way the policy should be made. If there was a problem, he would request guidance from council as to a change. Measles asked if council wished to change anythin18 g. There were no comments from council. Measles added, to him, if the policy applied the same to everybody, there was no problem. If exceptions are made on individual bases, there would be problems. Swarner stated her first concern was the person was not told they had to pay another deposit when they first came in to re -apply for service. That could be the error of the employee and if the employee doesn't do it again and if there is a written policy to hand out, then that is what is needed to be done. Sweeney stated that was his responsibility and he would look at what could be done to improve customer service. d. Mobile Food Vendors Licenses - Swarner stated it had been brought to her attention that there have been vendors in the summer and asked if there were any that came in for the Fourth of July festivities and softball tournaments. Freas explained there were probably five or six licenses issued last year. Freas reviewed the steps involved in getting a license for a mobile food vendor and added, she does not drive around the city looking for vendors who are without licenses. The Police Department has notified some, whey they were aware of them, that licenses were required. Through the discussion it was noted that Councilwoman Swarner was more interested in whether licenses should be or are issued to 16 sandwich stands on the Fourth of July. Acting City Manager Porter stated that the Chamber sends out applications and the vendor pays a small fee for booth space. KENAI CITY • APRIL 17, PAGE 27 • COUNCIL MEETING MINUTES 1996 Freas was requested to check with AttorneyGraves licenses are required for sandwich stands n a n as to whether (like Fourth of July festivities, one -day basis been .•snow removal Plan Plan - Swarner asked Kornelis if t p n issued in response to council's request• Kornel.is answered there was one in the packet s prior which discussed use of snow everal meetings was brought to her attention that ittwouldlhel Swarner stated it along Frontage Road, Willow Street and an other the businesses in the downtown areas to have the snow piles r commercialthroad areas knocked down so that building addresses, visibility. the road visibility. Kornelis stated that in some areascould have better Swarner requested it be done when it would work that would work. Moore - No report. Bannock - No report. Smalley - a. street Cieaain Pleased with the clean streets and to keeSmallethe aooa he was p good work b. Burn Permits - Smalleup. Department have some free advertisements also su9gested the Fire get burn permits before burning tree limbsdp ett° remind people to they would look into it. c• Burnett stated c. Conflict of Int4r08t etat�m�nts - administration research what the Smalley requested to have to file conflict of interest for department heads think it was a state issue nor was it beneficial.He added, he dfdn�t have been hired who have been informed, after the Individuals are required. The City should exercise care there. that they e. Moaales - Reminded council of the volunteer re scheduled for Monday6;00 , April 22, 1996, from caption the Visitors Center. to 8:00 P.M. at The meeting adjourned at approximately 9:30 p.m. Minutes transcr • Ca - rol L. Freas, and submitted by: ail COUNIC.1. DATE `:l cz as