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HomeMy WebLinkAbout1996-07-17 Council MinutesC • E CITY OF KENAI As 4— 1 0j 4 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7536 FAX 907-283.3014 ME.MORANDUM ' I 1 f• -' 1992 TO: Mayor and Councilmembers FROM: Carol L. Freas, City Clerk City of Kenai DATE: September 23, t996 RE: MINUTES OF JULY 17, 1996 In researching some information, I found an error in the minutes of the July 17, 1996 council meeting. The error was in the motion to table Ordinance No. 1707-96, and read as follows: MOTION: Councilman Bannock MOVED to table Resolution No. 96-55 until the second meeting in November. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. The motion should read, MOTION: pouncilman Bannock MOVED to table Ordinance No. 1707-96 until the second meeting in November. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. Upon your approval to the above, the minutes of the July 17, 1996 council meeting will be corrected. clf "~'1'"IC' � � • _,� � 0 ..A het �•� i��� °�'Y�. C, sU , • AGEMA xx1MI C'.TY COUNCIL - REGULAR MEETING JULY 17v 1996 7100 P*No ZZMAI CITY COUNCIL CSAM8ERa 1. Pledge of Allegiance 2. Roll''Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. H. pCB3DM_PUBLIC CO (10 Minutes) 1. holly Volt - Kenai Peninsula River system Sank Restoration Program (Cducational Work Program for Local Youths). 2. Joe Lee - James Street Project Development. PUBLULAMMMOB 1: Ordinance No. 1705-96 - Increasing Estimated Revenues and. Appropriations by $5,987 in the General Fund as a_ Result of the Rural Community Fire Department Grant Awarded to the Kenai Fire Department, 2. Ordinance No. 1706-96 - Increasing Estimated Revenues and Appropriations by $10,000 in a Now Capital Project Fund for a Phase I Environmental Assessment of the Airport Jet Fuel Facility. 3, Ordinance No. 1707-96 - Increasing Estimated Revenues and Appropriations by $10,000 in an Existing Capital_ Project Fund for Additional Drilling and Environmental Testing at the City Maintenance -Shop, 0 -1 • r� r1 4. Resolution No. 96-56 - Formally Accepting PY97 Municipal Matching Grant Number 97/587-4-0.01 From the State of Alaska, Department of.Administration in the. Amount of $149,947.00 for a Wateaz Quality and Quantity/Development Program, and Accepting the Conditions of the Grant Agreement. Do 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 F. i. *Regular Meeting of July 3, 1996. 1. Discussion - Hakkinen Bluff Property/Proposed Purchase/Trade, 2. Discussion —Kenai River Actress/Dipnet Fishery. 1. Bills to be Paid, Bills.to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinazoo nos 170E-96 - increasing Estimated Revenues and Appropriations by $200 in the General Fund for. Plantings, Shrubbery, and Flowers., 4. Approval - Change Order No. 13/Kenai Spur Highway Project/$3,420.92. -2- 5. Discussion - Placement of safety Fencing on Mission Avenue to Protect the Bluff. 6. DisouBsion - Chamber of Commerce Resolution No. 96-07 Regarding Kenai City Manager. 7. Discussion -.Allocation of City of Kenai Assets for Deposit to Various Banking Institutions. I. AQlt.N=81M=OH RWORTB 1. Mayor, 2. City Manager 3. Attorney 4. City Clerk 5. ,Finance Director 6. Public Works Director 7. Airport Manager .T. pI80DBB=O�i 1. Citizens (five minutes) 2. Council . �1. . 1j.1_ ! a J]f • -3- : KENAI CITY COUNCIL - REGULAR MEETING JULY 17, 1996 7100 P.M. SDI CITY COUNCIL CR M ERs MAYOR JORN J. WILLIAMB, PRNSIDING Mayor Williams called the meeting -to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. Mayor Williams led those assembled in the Pledge of Allegiance. A -a. Roll was taken by the City Clerk. Present were: Measles, Bannock, Smalley, Williams, Bookey, Swarner and Moore. A-S . UJA DA AP M-O- L Mayor Williams requested the following changes to the agenda: ADD Tot B-a, Persons scheduled - Additional information regarding placement of cabins at James Street. ADD Tot 6-1 aad a -a, Joanne Jenckes letter regarding requested purchase of Hakkinen bluff property and access/parking concerns during dipnet season. ADD Tot H-6, Discussion - Kenai Chamber Resolution No. 96-07 - 7/12/96 L. Measles letter with signed resolution. MOTIONS Councilman Smalley MOVED for approval of the agenda and requested UNANIMOUS CONSENT, Councilman Bookey SECONDED the motion. MOTION TO AMEND=• Councilwoman Swarner MOVED to remove Item H-6 (Chamber of Commerce Resolution) until the next meeting because it would be more appropriate with the discussion for the next meeting.. Councilman Smalley SECONDED the motion (for discussion purposes). Williams noted there were three people in the audience who were in attendance, probably for that discussion (one from Anchorage). 0 • RSNAI CITY COUNCIL JULY 17, 1996 PAGE 2 VOTE: MEETING MINUTES Measles: Yes Bannock: No Smalley: Yes Williams: No Bookey: No Swarner: Yes Moore: No MOTION FAILED, VOTE ON MAIN MOTIONt There were no objections. Mayor Williams stated the agenda would stand as approved. Mayor Williams stated he had no changes for the consent agenda. NOTION: • Councilman Smalley MOV$D for approval of the consent agenda as presented and Councilman Bannock SECONDED the motion. There were no objections. 00 ORDffitmn. ' MEDDLED PUBLIC 20MMM X011y Wolf - Kenai Peninsula River System Bank Restoration Program (Educational Work Program for Local Youths ). Mr. Wolf explained he understood the city was planning a bank restoration project for the dunes and a walkway to the beach. He has had some experience with similar projects on the Kenai River and wanted the city to be aware of materials he hr.s used which had been very successful. Wolf referred to the information included in the packet. He added, he had had much success with steel sleeve systeme and galvanized pipe pilings. Wolf further explained he was trying to establish a Youth Restoration Program using Exxon Valdez settlement grant funds. The youth involved would be from ages 16-19. Because they were Exxon Valdez funds, he believed the government fund requirements would not be applicable. Wolf discussed different boardwalk designs and materials. He added, a galvanized grating walkway he placed in 1995 along the River had stayed in place during the flood. KENAI CITY COUNCIL MEETING MINUTES • JULY 17, 1996 PAGE 3 Williams suggested Wolf discuss the youth group and she materials with Kornelis and Bill Nelson to see if some of his ideas could be incorporated with that design, as well as a link between his grant funds and the cityls (the city also applied for Exxon grant funds for the bank restoration project. • There were no objections from council. B-2. Joe Lee - James Street Project Development. Mr. Lee reviewed the events in regard to four cabins being built on one lot along James Street. The cabins being built were on property directly behind some rental homes he owns. During the first part of the construction, he believed there would be a workshop built on the property, however when he returned to the area, he found there were three or four cabins under construction. He telephoned the Building Inspector and found the buildings were being constructed and a building permit was issued. Lee stated he thought cabins were not allowed in an RS zone and was told the buildings were to be tied together like a four-plex. Lee referred to copies of pictures and plans included in the packet. Lee stated he later checked with the Building Inspector on another question and was told there was a hearing coming up at the Planning & Zoning Commission in regard to the cabins. At that meeting, the developer was requesting a conditional use permit to open a bed & breakfast using the cabins. Lee stated he - believed the developer was trying to circumvent the coda and the cabins were a violation to the code. The developer withdrew his application for the conditional use permit, but said he would rent the cabins on a monthly basis. Lee stated he did not think that was allowed by code either. Now, he felt, the developer was planning to get around the land -- use requirement by removing the lot line between the two lots. Lee stated, there would still not be enough room for the four cabins. He understood the developer was instructed to remove one of the cabins and then he would be in compliance. Lee stated he did not understand how that would be acceptable as the Land -Use Table did not allow cabins even with a conditional use permit. He discussed that matter with the city and was told no cabins were allowed in the code. The cabins were single dwellings. KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 4 Lee stated he and other residents were concerned about the kind of tenants renting nightly would bring. The developer told his he would be in compliance and would rent only three of the - cabins. One would stay empty. The Building Inspector said the fourth building must be removed. Lee added, the code stated the neighborhood. He did the developer told his he the cabins next year. An the residence. Lee stated of his property. He felt long before as there was p then to get around the lan going to make a four-plex. make the buildings into or four cabins. buildings should be a compliment to not think the cabins would be. Also, intended to build a residence beside overseer of the cabins would live in he was also concerned about the value the project should have been stopped o building permit to begin with and d-use requirements, the developer was Now, because the developer cannot e four-plex, they are back to having At the P&Z meeting, Lee stated Commissioner Walker asked City Engineer La Shot how cabins could be built in an RS Zone when the • code did not allow a conditional use. La Shot told him that in the past, similar situations had been taken under consideration and allowed. Lee stated he did not think that should be allowed. If the code was worthy, it should be followed. Councilman Bookey asked Building Inspector Springer if the project had been started without a building permit and if the. building plans submitted to him were for a four-plex. Springer answered yes. Bookey stated, in reviewing the plans (included--in- the packet) he could not see how a permit could have been issued_ for a four-plex. Springer explained that the code did not require professionally drawn plans for a building permit. Smalley explained the P&Z Commission discussed with the applicant a way to tie the roofs together like a breezeway. That did not go forward. They then discussed the possibility of placing a common roof over the structures. La Shot had stated, with code requirements, that solution was marginal. After a long discussion, the developer decided to stop the project as far as the present application and come back next year. The developer said he would just rent the cabins. The code was specific about one principal building per lot. Smalley continued, by moving the lot line, only one of the buildings could be rented, unless something was worked out IS between the city and P&Z and he did not think that would happen. KENAI CITY COUNCIL JULY 171 1996 PAGE 5 MEETING MINUTES Bookey asked if the developer was able to go forward with the project. Springer stated, with the buildings to be used as daily rentals, no. The developer withdrew that application. The minutes were reviewed. Bookey stated he thought the administration erred in their actions. Williams asked Springer if he had any comments to make. Springer referred to his letter to Mr. Richmond (the developer) which was included in the packet. The letter instructed Richmond of what was required of him (with this project) to acquire a certificate of occupancy for the project. Spring continued, as it stood with the city code and the Uniform Building Code, the developer was not in compliance at this time. However, the buildings were not completed. If, when the building was completed, it was not like what the permit was issued for (a four -Alex), a certificate of occupancy would not be issued. Richmond would not be able to rent the buildings either. Moore asked if a building permit had been issued. Springer answered yes, for a four-plex. Swarner noted the plans (included in the packet) had no measurements and asked if plans were always that roughly drawn. Springer answered, he would like to have better plans brought to him, but many times, plans are drawn by the people themselves and not professionally drawn. Swarner stated she believed that if more professional -looking plans were brought in, the project would be more professional looking in the end. Swarner stated she would like a requirement for building permits to include more professional -looking plans. Bookey stated the plans didn't indicate the building would_ be.a four-plex. To him, the building permit should not have been authorized based on the plans. He added, had the developer been told he couldn't build, he would have been before council for that reason. Smalley stated he didn't support the project, but the project could be placed under a common roof. He suggested thb P&Z Commission review the code in regard to requiring professionally - drawn plans. With a common roof, the project would be acceptable by code. Williams noted that through the years, idiosyncrasies had been found in the code and this was one of them -- a loophole the developer was trying to go through. Williams suggested the matter go back to Administration. �J KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 6 Bannock stated the matter would not be returned to P&Z because the application had been withdrawn. The matter would go back to Springer. Smalley added, now the cabins were illegal. Bannock asked if there was a time limit on the permit. Springer answered, if no work was done on the project for a six-month period, the permit would have to be reactivated, i.e. the permit would no longer be valid. Williams asked Attorney Graves if there was any recourse for existing structures. Graves answered, the cabins were not in compliance. They exceeded the lot size. One of the cabins would have to be removed. There was also the question of renting the cabins without a conditional use permit. Those items would need to be reviewed and a determination made by administration. A conditional use permit was required (for rentals) in an RS zone. Graves added, would a conditional use permit allow nightly rental or rental per se? -- He did not know as he had not found an answer to that yet. He needed to review that matter further. Williams asked if the developer could be asked to stop the construction until administration had an answer. Springer stated he thought he could because the developer was not in compliance. Smalley stated the developer would first have to remove the lot line, then, to be in compliance with the building permit, would have to put the buildings under a common roof. That would probably make him legal. However, there could still be a liability problem for him. If the buildings were under a common roof, it wouldn't necessarily mean it would then suffice as a four-plex. Smalley added, he cautioned council to seriously think about shutting the project down. Swarner asked if there was a minimum square foot requirement for an apartment or part of a four-plex. Springer answered no, and there was no definition for a cabin in the code, only a dwelling unit and no square foot definition. Bannock stated he did not suggest stopping the project, but contacting the developer and telling him that it didn't appear he was building what the building permit was issued for. How the developer decided to proceed was not up to the council. If the city stopped him for six months, he would lose the building permit. Moore asked if Richmond's building permit was legal. Springer • answered, Richmond was not in compliance at the time, but could be if he created a four-plex. That was explained in his letter KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 7 to Richmond -- he would not issue a certificate of occupancy until he was in compliance with the building permit. Bookey asked if a conditional use permit was required to rent the buildings. Springer answered yes. In regard to the discussion about the plans, Springer added that many homeowners wanting to build an addition, etc. draw their own plans. It was up to him to decide whether the plans were acceptable. He accepted Richmond's plans to allow him to build the structure. Since he had no direction from the city code or the Uniform Building Code to say what kind of plans were required, he accepted them. Swarner stated there was a difference between professionally drawn plans and professional -looking plans. She added, a child could draw professional -looking plans. Bookey stated he would assume, by looking at the plans, these were to be cabins and not a four-plex. Williams suggested the matter be forwarded back to administration. Swarner stated she had no problem with that, but hoped the wishes of the neighborhood were remembered. The cabins were against the code and the developer was not in compliance. Williams noted the wishes of the neighborhood should be considered. Smalley added, the P&Z meeting minutes were part of the record as well and concurred with Swarner. Jerry Olson - Contractor. Mr. Olson stated he was an acquaintance of Richmond. Richmond couldnOt be at the meeting and asked him to come. Olson agreed with the concerns as the .-- structures looked like cabins. The city was easy to work with and Richmond started without a permit and put himself in jeopardy. That was why he was trying to remove the lot line. Ha was trying to do what he could to be in compliance with the code. Richmond had a lot invested in the project, but if he could, he would enclose them. C-10 Ordinance No. 1705-96 - Increasing Estimated Revenues and Appropriations by $50987 in the General Fund as a Result of the Rural Community Fire Department Grant Awarded to the Kenai Fire Department. 0 • KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 8 MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1705-96 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTES Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes MOTION PASSED UNANIMOUBLY. C-2. Ordinance No. 1706-96 - Increasing Estimated Revenues and Appropriations by $10,000 in a New Capital Project Fund for a Phase I Environmental Assessment of the Airport Jet Fuel Facility. MOTION: Councilman Smalley MOVED for adoption of Ordinance no. 1706-96 and Councilman Bookey SECONDED the motion. There were no public comments. Councilman Bookey stated he thought the project was to be put on hold and not do anything on it now. Engineering Technician Clark stated last winter the matter was put on hold, but discussions had continued with DEC. The matter was again discussed at a budget meeting. There were. no objections during those discussions, and it was brought forward now. DEC was still holding the city responsible to do the work and remove the underground storage tanks, etc. Councilman Measles asked if there was a deadline by which the work had to be completed. Clark stated DEC wanted a plan by the end of June. Measles asked if they had not discussed filling the tanks with sand and forgetting they were there. Clark answered they had pumped the tanks and DEC was told that was all the City wanted to do. DEC wrote and stated a site assessment had to be done. Williams stated that if an assessment would be done, they would have to assume they may have to remove the tanks or do remediation. They would be tearing up the entire parking lot in front of the terminal (airplane tiedowns). Clark stated KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 9 something could be pumped into the tanks to eat at the fuel and plug the ends. Potentially though, the tanks, etc. may have to be pulled. Moore asked if there were any potential fines. Clark answered, DEC had the right to fine the city. She continued, DEC stated in their last letter they would do the work for the city and then charge the city for their costs. Swarner asked what the real potential was for that to happen. Clark answered she didn,'t know. Swarner added, DEC didn"t have funds to do work they were supposed to do, aside from this. Measles asked where they would get the money to do the work up front, Smalley asked if the ordinance were to be tabled, an ordinance would be on the record that the city was reviewing the matter and would act on it in the future. Clark stated a letter could be written stating the matter was being considered. Smalley asked council if they were comfortable with that solution or would they prefer to fail the ordinance. MOTIONS Councilman Smalley MOVED to table the ordinance and Councilman Bannock BECONDED the motion. There were no objections. SO ORDERED. C-3. Ordinaaao No. 1707-96 - Increasing Estimated Revenues and Appropriations by $10,000 in an Existing Capital.._ _.. Project Fund for Additional Drilling and Environmental Testing at the City Maintenance Shop. MOTIONS Councilman Moore MOVED for adoption of Ordinance No. 1707-96 and Councilman Bannock SECONDED the motion. There were no public comments. Councilman Moore asked why additional drilling was warranted. Engineering Technician Clark explained that originally, five wells were done there and in a large area. Two of the wells were on the north property line. They were drilled to try to identify whether the ground water was contaminated coming in. The other wells were drilled to try to further identify particular areas of concern. • KENAI CITY COUNCIL JULY 17, 1996 PAGE 10 MEETING MINUTES Williams explained that where the shops presently were, historical photographs show were once a military storage area. There was reason to believe there was more than one issue in regard to contamination. There could be some military, government, and some city. The potential for liability of contamination could spread over a large group of cwners, operators, etc. The city was dealing with a known contaminated area that at some time, DEC will continue to push for some type of remediation. Moore asked what effect the possible contamination would have on adjoining property. Williams answered, that was a good question. Bookey asked how much money had already been spent drilling. Clark answered, close to $40,000. Bookey asked how much more costs might be involved, but not including clean up. Clark answered this would probably complete the Phase II. If council would then want to move into excavation and remediation, there would be additional costs. Charles Bailie - Asked what the military's liability was for the contamination? Would the city assume the military's liability? Attorney Graves answered, to the extent the city can identify the military's liability, it would be the city's intent to have them pay for it. Ordinarily, when the military was involved, it was easier to get their technical assistance (their physical help to clean a site) than to get actual cash. That may be the involvement the city would get from the military. The city may have to sue them to get them to contribute to pay for it. Williams noted the FAA antenna farm was a well-known site in the city on which council had stopped future development until a site assessment could be completed. Measles asked how many additional wells and testing would the $10,000 get. Clark answered, five additional wells and a round of testing. Measles asked if they thought the five additional wells would identify the extent of the contamination. Clark answered, hopefully they would identify the sources and where it was coming onto the site. They wouldn't identify the entire groundwater plume. Bookey asked if she was indicating this was not necessarily an on -site problem of the City of Kenai and that it could be an -in flow from other property. Clark answered, the test wells could possibly support that. i . RENAI CITY COUNCIL MEETING MINUTES JOLY 17, 1996 PAGE 11 MOTION$ Councilman Bannock MOVED to table Resolution No. 96-55 until the second meeting in November. Councilman Measles SECONDED the motion. There were no objections. 80 ORDERED, C-4. Resolution No. 96-56 - Formally Accepting FY97 Municipal Matching Grant Number 97/587-4-001 From the State of Alaska, Department of Administration in the Amount of $149,947.00 for a Water Quality and Quantity/Development Program, and Accepting the Conditions of the Grant Agreement, MOTION: Councilman Smalley MOVED for approval of Resolution No. 96-56 and Councilman Measles SECONDED the Yr_otion. There were no public comments. Williams asked if the monies were from the Governor's grant program. Acting Finance Director Feltman answered yes. The city's match was 30%. Williams asked if all the monies were received from the State during the last session. Feltmaq answered yes. VOTE$ Councilman Smalley requested UNANIMOUS CoNs=T. There were no objections. 80 ORDERED. BREAK TAKEN: 8t05 P.M. BACK TO ORDER: 8t16 P.M. ITEM Dt 90—HRIBBIONICOMMITTEE RERMSr D-1. Council on Aging Councilwoman Swarner reported there bad not been a meeting since the last council meeting. Senior Center Director Porter reported Angeles Poage had decided to retire and a party would be given during the Center's lunch on August 2. Assisted Living Facility - Williams reported the developer was waiting to start the project. He secured a $6 million loan from GMAC who required a HUD guarantee certificate. HUD denied the certificate. The developer contacted Alaska's congressional delegation, as well as HUD but were not successful in acquiring • KENAI CITY COUNCIL DULY 17, 1996 PAGE 12 MEETING MINUTES the certificate. The developer has stated they will move forward with the project with private financing. They intend to hold the ground breaking in approximately 45 days. D-2. Airport Commission Councilman Measles reported the Commission met last week and the minutes were included in the packet. There was not much business on the agenda. They had people in the audience who wanted to discuss their proposed airport buffer zone (which was not on the agenda). Measles referred to applications included in the packet for appointment to the Commission. It was noted the position available, by code, was required to be a representative from FAA. Neither of the applicants were representatives of FAA. Ernst stated he would talk again with FAA and request a representative. It was also stated council may want to consider amending the code 40 to remove the requirement of having an FAA representative on the commission. D-3. Harbor Commission Public Works Director Kornelis reported the minutes of the last Commission meeting were included in the packet. They discussed the dunes and council's actions. D-4. Library Commission Councilman Moore reported the minutes of the last meeting were__ included in the packet. He reported on that meeting during the last council meeting. Moore added, the Commission would hold their August meeting on July 30 (council approved at 7/3/96 meeting) in order to complete their discussions, review the proposed proposition, etc., in regard to the proposed addition. Librarian DeForest referred to a report included in the packet with book rental data for two days, time (Monday, 488 books check out). DeForest noted, those books, when brought back have to be placed back on the shelves. A time-consuming job. D-S. Parks i Recreation Commission Councilman Bannock reported the meeting was lengthy. The Commission discussed goals and objectives for the Leif Hansen • Memorial Park. The Commission continues to feel activities like the Kenai River Festival should not take place in the Park. KENAI CITY COUNCIL MEETING MINUTES qW JULY 17, 1996 PAGE 13 There was a lot of discussion about how to regulate uses, i.e. use of volunteers, etc. The Commission will be working on a definition for the Park. Bannock continued, the Commission also discussed the deposit for the use of the park. At this time there was no fee for the use of the park and a token deposit, considering the value of the plaques and plantings. Administration was asked to investigate some of the items and come back with suggestions. Bannock added, the Kenai Cemetery was also discussed as there had been some vandalism concerns reported. Rules, in regard to fences around graves, above -ground headstones, etc. had been ignored in some cases. Commissioner Wisniewski offered some suggestions on how to make the cemetery a source of pride. The Commission also discussed the Little League fields in regard to fencing and defining some walkways through it. Parks & IS Recreation Director reported the Commission also discussed setting a maximum time limit at the Leif Hansen Park (approximately four hours) in conjunction with raising the deposit to $300-$400. Williams asked how that would affect the Kenai River Festival, etc. Frates answered, the Festival would not fit within that criteria. Williams asked if the Commission wanted to move the Festival from the Park altogether. Bannock answered that was clearly the intent of the Parks & Recreation Commission. Bannock assured council- that it was a not a case of the Commission not- liking -the Festival.. The Commission felt the Festival was one of two. activities that were misplaced by allowing them to be held there last year. The City invested a large amount of funds to develop the greenstrip for activities like the Festival. Bookey added, the Festival had grown since last year and had overgrown the Memorial Park. For their own benefit, he thought they should consider using the greenstrip area. Williams stated he wanted to clarify the council was moving in the direction of using the greenstrip area for like activities and not Memorial Park. Frates added, a question would be whether the city wanted to set a precedent allowing use of the Park for. such activities. It would probably be bettet to stop using Memorial Park for these activities now than to wait for a few more years when it would be more complicated to make that change. KENAI CITY COUN CIL MEETING 14INME8 JLY 17, 1996 pAGE 14 to council rward a foriaa 1 Memorandum Frates stated he would to Commission's discussions• upon completion of the Wing Boning conoission for D•6. Plan meeting re orted he attended the wherein the councilman Bannock po was a short Me' Cossission also Co Smalley• Covaissioner Councilman took action on two repla there was only one iss ion d Habitat Acres wherein ifn Cow the p would apply discussed ruleBoof an LID askedo er .he deve P Committees D_7 * Mince la.aneous Commissions and 8eautif ication cossittee along with ether D-7a• Committees She added, the reported the ,Councilwoman Swarner ing in the flower beds • Coun had been wo volunteers was working out well. greenho Ristoric District Soria meet again on July 30• D-7b' ted the Board would m Councilman Moore repor co�mittee challenger steering Attorney Graves to D-7a' committee met with order to the and by-laws in ittee Mayor Williams reported oration papers report the next comet w Propose 'fit incorpBannock rep.00 .m� in the Salamatof reels P _ rof it status. obtain nwould be held on August i at 4• meeting - Board Room. s � convention Bureau Boar Renal Visitor included -in D-769 ted there were no minutes orted they Booth report She also r the center. GCB Director B beer► on vacation• a dayat the packet as she had 500-600 visitors TV who were having approxat imately n Alaska for veral discussions With Fox that she had se August' They will Booth reported the area in Augu Kenai and Anchorages will be vial doing a show from on Kenai, a week and will be eceived iota of compliments they haVe r of the town, etc - At the center,curb appeal to the i.e. flowers# received any cvmraents in regard she had r lot. Booth answered no. Swarner ageed bumps in their Parking lack of aP KENAI CITY COUNCIL MEETING MINUTES • JULY 170 1996 PAGE 15 Swarner stated she had requested Administration to increase the size of the speed bumps. Booth agreed,, 'the parking lot was being used as a through -street. Swarner stated council needed a -report back soon. Williams added, Administratioi, had been directed to increase the size of the speed bumps. Kornelis stated he could get a cost estimate. Williams added, Administration had already been directed to do it. Bookey added, the job should be done right this time. Swarner stated she thought there needed to be a plan and requested Kornelis to come back with a plan. Moore suggested movable speed bumps which he had observed in another area. Moore added, they may be removed during the winter so they would not be in the way of graders. E-1. Regular Meeting of July 3, 1996. Approved by consent agenda. None, ITOL as OLD. BII8INE88 Discussion - Hakkinen _Bluff_PropertyJProposed Purchase/Trade. Williams referred to the discussion during the last council meeting in regard to the Vozar/Hakkinen proposed purchase/trade of bluff property in Old.Town. Williams also referred to information included in the packet from Administrative Assistant Howard in which it was noted the Borough assessed value of the Hakkinen property was $50,400. Williams noted, the asking price from Hakkinen was $80,000 (a mix of -property and money. Williams requested council to review the J. Jenckes letter which was added to the agenda at the beginning of the meeting. Councilman Moore reported he.looked at the property and found it to be in good shape. There was vegetation and trees. There were real problems in regard to the properties to the east. Moore stated he thought that before the.city thought about buying property, it should first take care of the bluff problems. KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 16 Councilman Smalley stated he thought it was a good.idea, but if the city was going to try to purchase the property for a viewing area, he believed they would -want to purchase more than one lot. He added, the proposal sounded good, but he could not support it at this time. He also concurred with Moore, stating there were other areas needing work. Kim Booth - Referred to the amount of visitors coming to the Center and discussed the attraction of a viewing area for whale watching. Until Mission Avenue was closed, people watched from the bluff. Now they send them to the beach (Spruce Street) and Forest Drive. She stated she personally felt the city had other issues to be concerned about in regard to purchase of bluff property, but wanted some ideas of where to send the multitude of people who want to whale watch. Swarner stated the visitors may still walk to Beluga Point and added, there was an area by the Senior Center where large RV's could turn around. Booth stated some people couldn't walk to Beluga Point and parking was an issue there. They did not want to impact private property owners in the area. At the Senior Center area there were no signs and people go to the edge to look out. Williams suggested postponing the discussion on purchase/trade of the lot until later in the fall prior to budget time. He added, he would like to do more than purchase the property (seaman's memorial, etc.) and consider reviewing the overall issue as it would be a major -budget item. He -also suggested -the item be discussed during a work session in the fall.. Bob Paters - Stated he was happy with the comments made on this issue. He added, though the road had been closed, people still use it. He would like to see the Hakkinen bluff property used for a viewing area with telescopes, etc. He pointed out that less than 100 yards away the city owned two lots. He suggested developing those lots (however those lots were at the bottom of the bluff now). Peters stated he would like the property purchased, but would like the city to.use the Mt. Redoubt lookout. He also urged . council to fix the bluff, i.e. place gravel, place drain tiles, grass clippings, etc. Just fix the bluff.. • • KENAI CITY COUNCIL JULY 17j 1996 PAGE 17 • • MEETING MINUTES Charles Bailie - Bailie stated he had an office in that area for approximately 20 years and the property had been sloughing off for years. His recommendation was to not purchase the property as it would probably slough off too. 0-2. Disoussioa - Kenai River Access/Dipnet Fishery. Williams noted that there have been many comments made in response to the council's actions to close Kenai Avenue and limit access to the south side of the Kenai River during dipnet season. The comments were made through radio, television and newspapers. City Hall received a number of telephone calls, as well as he. Williams reminded the audience the City asked the Board of Fisheries not to lengthen the dipnet season, etc. Closure of Kenai Avenue had compelled people to access the beach by private property, through destruction of the private property, by climbing over the bluff, repelling down the bluff, etc. Both he and Mr. Peters had taken pictures of some of these actions, talked with people and informed them of the destruction they were causing, etc. The people didn't listen and continued on. Mr. Peters passed around pictures he had taken of people accessing the beach over the bluff. Williams asked what power the city has and how can they exercise their power in regard to trespassing, etc. Williams reported signs placed by the city on the south side of the river had been destroyed. Members of the public refuse to recognize the problem the city has. Beth Thompson - Thompson stated she had been trying to get personal use gill net fishing back to residents of Alaska. She asked why council had chosen this time of year to decide to close access to the beach. Williams answered, the council had discussed the matter for over a year. Thompson stated some of her concerns were there were no places for people to park, day or overnight, no signs for people to know where they could park, and the only way to get to the mouth of the river was by foot, having to carry gear, etc. Thompson suggested the gate be opened and a shuttle system be set up. Thompson also stated she was told not to come to council as her comments would not be taken into consideration. She also requested council and people in the audience to write to Larry Jones, the Director of the Board of Fisheries and ask that KENAI CITY COUNCIL JULY 17, 1996 PAGE IS MEETING MINUTES personal use gill net fishery be opened as she felt that would alleviate some of the pressure complicating the dipnet fishery. Williams stated the council shared Thompson's frustrations in regard to being heard by a governing body. He made comments twice (with video) to the Board of Fisheries and was ignored. Williams added, another concern was the issue of access to the river. The city operated two boat ramps, one for input and one for output. The city applied for permits to place additional ramps to the river for personal use access and were denied the permits time after time. Thompson suggested some access be built to the mouth as she was concerned there were some safety problems and that chances were the city would get sued. Providing access would allow dipnetters and tourists to enjoy the area. She urged people of the area to attend Board of Fisheries meetings, etc. Swarner thanked Thompson for speaking to council and assured her the council did listen to anyone who comes before them. . Williams asked what power the city had to direct administration to cite for trespassing, etc. Bannock stated he believed one method of control would be pay parking. The access problem was not a year-round program. A temporary employee could be placed to manage the parking system. Either the volume of people would go down or the revenue would go up. Councilman Moore passed out a copy of the State's rules and regulations for dipnet fishing which included a map of the boundaries where dipnet fishing was allowed (between 1'h miles.. north and 1h miles south of the mouth). There was a lot of room for fishing and all the fishing did not need to be done at the mouth of the river. People could drive north on the beach. Thompson noted signs were placed in front of a private individual's house on the south side of the river. Smalley ` stated they were city signs. Thompson stated the signs did not allow access to the river unless it was a low tide. stove Perrino - Perrizo explained access was limited to below mean high tide (17.6 ft.). Perrizo reported the dunes were being destroyed because of dipnetting. People ran over the signs that were placed at 21 ft., which was 50 ft. above mean high tide. People don't understand that when they drive over the dunes, the sand settles out and changes the pitch of the beach. The next • big tide (during the fall) will wipe out the dunes. Last year he lost 75 ft. His property had been in his family since 1930 and KENAI CITY COUNCIL MEETING MINUTES JW JULY 17, 1996 PAGE 19 no dunes were lost until the dipnet fishery was started. Because people won't stay below the signs he would be placing pilings to mean high tide. Williams noted Perrizo wanted to speak to council in regard to the destruction of his property and the lack of enforcement of the city signs. Perrizo stated he wanted to know what the city's intention was to place the signs*if people were allowed to drive over them. Why did the taxpayers pay for the signs to be made and placed if they were being allowed to be destroyed. Perrizo asked if city laws coincided with the state trespass laws? Williams asked again what council should tell administration to do after directing the signs be placed. Moore stated he was impressed with the presence of the Police Department on the north side. Police Chief Morris stated part of the problem, covering the south side access, was the distance. More calls were received • from the north side than the south side, although officers and the seasonal enforcement officer patrol the south side. Access for the Police Department was also a problem as the seasonal officer's vehicle getting stuck. To deal with the trespass problem, first there must be something there to indicate it is a private property* once the public knows it is a private property area, the department wouldn't take any enforcement action unless there was a complaint from the private property owner. If it was clear to the department it was private property, and the owner had ordered-eomeone off the -property, then it -would be a misdemeanor. committed in their presence and they.could Make an_ arrest. Perrizo asked if he placed a lot of private property signs and called with license numbers of vehicles trespassing, an officer would come. Morris stated his call would be prioritized with other calls. then asked about citizen's arrest, Morris stated the problem would be that if someone would not want to cooperate with the citizen, enough force could not be used to physically contain the trespasser. That would put the citizen at risk, physically and legally. In order to make a case to take to court, the license number, description of the person, information about discussions with the person and video, would be really* good evidence. A summons could then be issued to the trespasser. Kim Booth - Booth stated council had identified that the dipnet fishery was not tourism. At the Visitors Center they had been faced with the frustration with people trying to access the KENAI CITY COUNCIL JULY 171 1996 PAGE 20 MEETING MINUTES river, as with private landowners. Dipnet fishery users were not revenue generators either. Because people cannot park along Kenai Avenue, they have received more requests for tent camping areas. If the dipnet problem was to continue, she suggested a' small amount of revenue may be received through tent camping. Swarner asked Kornelis if he had placed any signs stating how to get to the mouth of the river. Kornelis answered no. grates reviewed how many tent camping reservations he had received in the last few days. It was agreed there were plenty of tent camping areas for the use at this time. Peters stated he did not believe it was the city"s obligation to have camping, etc. for the dipnetters and tourists. Private business perhaps. He would like to see the items discussed, i.e. paid parking lot, camping area, RV park, etc. pay for itself or pay for a vehicle for the enforcement officer, pay for the cost of outhouses, picking up trash, etc. He suggested it was the State's responsibility to have amenities for the dipnetters (or repay the city). -. Smalley stated another problem created was the brown bear visiting the beach where the dipnetters have gutted their fish on the dunes. He was concerned there could be a problem in the making with the bear, children and other users of the beach. Swarner stated she was at the dock earlier in the week and commended the city employees at the dock who were collecting money, directing the users, etc. She thought they did an outstanding job visiting with the users. She was concerned about the condition of the bathrooms and asked if they were checked because they had been in bad shape (no toilet paper and dirty). IT��. j BQ8INE8B Bills to be paid, Hills to be Ratified Councilman Smalley MOVED to pay the bills and Councilman Bookey SECONDED the motion. There were no objections. 60 ORDRRRD. 8-2. purchase orders Exceeding $2#SOO 0 KENAI CITY COUNCIL MEETING MINUTES • JULY 17, 1996 PAGE 21 • • MOTION$ Councilman Smalley MOVED to pay the purchase orders exceeding $2,500 and Councilwoman Swarner SECONDED the motion. There were no objections. 80 ORDERED. 8-3. Ordinance no. 1708-96 - Increasing Estimated Revenues and Appropriations by $200 in the General Fund for Plantings, Shrubbery, and Flowers. Introduced by consent agenda. 8-4. Approval - Change Order No. 13/Kenai Spur Highway Project/$3,420.92. Kornelis explained originally there was an asbestos cement T and the state made the tie-in with ductile iron going under the Spur Highway. They felt it was best to replace the T with ductile iron. The City would pay for it regardless. MOTION$ Councilman Smalley MOVED for approval of Change Order No. 13, Kenai Spur Highway in the amount of $3,420.92. Councilman Bookey SECONDED the motion. There were no objections. 80 ORDERED., H-5. Discussion - Placement of Safety Fencing on Mission Avenue to Protect the Bluff. Williams explained some of the property being used for accessing the beach, and sloughing away was on private property. The fencing being proposed to be placed would go from the corner of the Louisa Miller house property along the bluff to just beyond the Mt. Redoubt sign. The purpose of the fence would be to prevent people to access the beach from over the bluff and to protect citizens from the bluff giving way while someone might be standing there. The bluff line was now encroaching on the street and some of the pipe already had given way. Kornelis referred to his memorandum on page 5, and stated the cost of orange safety barrier fence would be approximately $700. Kornelis added that Mr. Peters had suggested using a wood -slat - snow fence which would be approximately $1,226. Those costs would not include the labor. The city would install it. The orange fencing could be purchased from AIH. U • KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 22 Bannock passed out a map of the bluff area to show where the fencing would be placed. He stated he thought it was a good idea and would rather see the wood fencing. A lot of people walk -in the bluff area. A two -foot high fence would not deter people from stepping over it. The higher fence may slow the sloughing down and keep people off the bluff. Williams added, the fencing needed to be done now. Smalley stated he didn't like the orange fencing either, but because the bluff was severely eroding, the orange fencing may help to keep people away as a "warning." Bookey asked if the property owners there would be offended by the orange fencing. Bob Peters - Peters stated the snow fence would be 3/4" wide stained slats and 4' high. It would have a Cape Cod look. He checked with Acme Fence and found that a 50 ft. roll would cost $65. He estimated the total cost with T-bars and fencing would be $832.50. Peters urged council to please put up the fence. Peters added, he thought aesthetically, he preferred the wooden fence. Williams asked what the concerns would be by placing fencing on private property. Peters stated he spoke with a representative from the Kenai Bible Church and they wanted the fence. He also spoke with Mr. Webber and he told him he wanted to do what is right and would send a letter of authority if required. MOTION$ Councilwoman Swarner MOVED that the city purchase the Cape Cod_- like stained fencing and install it as soon as possible. Councilman Moore BECONDED the motion. There were no objections. 80 ORDERED. Kornelis stated he already spoke with Acme and Carlisle and would do the purchase order. 8-6. Discussion - Chamber of Commerce Resolution No. 96-07 Regarding Kenai City Manager. and H-7. Discussion - Allocation of City of Kenai Assets for Deposit to Various Banking Institutions. KENAI CITY COUNCIL MEETING MINUTES • JULY 171 1996 PAGE 23 • Williams: The Chamber has sent a letter along enclosing the resolution and asking for our "consideration of the attached resolution is greatly appreciated. If you need additional information, please do not hesitate to contact..." So, who'd like to open the discussion? Thank you, I will. Let me have the code. Needless to say, members of the council, you're all aware of the fact that I was somewhat chagrined and deeply disturbed by this resolution. Primarily because it contains, I think, innuendo and incorrect fact. Incorrect statements, if you will. Now, if you'll bear with me for just a moment, I'll turn to the Charter of the City of Kenai. Take a reading on Government 101 if you will. Now, for those of you who are here this evening, this book contains the ordinances and the Charter of the City of Kenai. The Charter of the City of Kenai is the constitution. Each of us here are sworn to uphold the constitution and the Charter and the ordinances of this city. Now. I'm going to quote from you, the Charter with regard, to the City Council. Just a moment...It says, Council Powers. 1°Except as otherwise provided in this chapter, all powers of the city, including the determination of all matters of policy shall be vested in the council." Now,--I-don't think I need to repeat that. "Without the limitation of the foregoing, the Council shall have power to appoint and remove the city manager as provided in this chapter when the city is operating under the council-manager form of government. And by ordinance to enact legislation relating to any or all subjects and matters not prohibited by law. To adopt the budget. To raise revenue. To make appropriations and regulate salaries and wages" and so forth. "And to inquire into the conduct of any office, department or agency of the city government and investigate municipal affairs. Now, "we also may appoint or elect or remove the city attorney or any other personnel in the Department of Law" and so forth. And we can also "create change and abolish all offices, departments and agencies of the city government other than the offices, departments and agencies created by this Charter." Now, this constitution of the City of Kenai clearly states what this council has the power to do. Now there are those within • KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 24 this city who choose by whatever means they would like to offer to alter the fact that this council has the power to do that. Now, I take exception to that. I have sworn to uphold this constitution, this Charter and these sets of ordinances. And in taking the actions that this council has taken over the last few weeks, we have done just that. Now, I take exception, great exception to this resolution and several of the statements that were made here. One of them, states that "Whereas, under the direction of the current city manager, the City of Kenai's financial stability has remained intact and prospered." It has not prospered and in fact, by this year's budget alone, we see that we are going seven hundred and seven -some thousand dollars in the hole. That is not prosperity. Another one states that, "Whereas, there are numerous important projects that the current city manager's expertise has been instrumental in developing, additional opportunities for community, our community." I ask the question, "What important projects?" There isn't one project in this city that's been developed by this city mai,ager that wasn't already in the mill before he got here. Now, name me one. Bring forth one, those of you who drafted this resolution. There's some concern about the potential liability to Kenai residents. What liability? Five members of this council have decided that this city manager is not going to stay. That rule, that bible, that constitution right there gives us the right to do it and we're going to do it. So I take exception to that. Now, it says here the Kenai City Manager's been a vital liaison between the Kenai City Council and the Kenai community. I made the statement at your board meeting the other day that sentiment was running five to one against this city manager. I stand by that statement. So, it doesn't look to me like the man has been a liaison between this Kenai City Council and this community. I am going to ask this council tonight to unilaterally reject this resolution for what it's worth. Thank you. Mr. Smalley, Smalley: I think Mr. Measles had his hand up first. Williams: Councilman Measles. Measles: There is nothing in that Charter or that bible that says everybody has to agree with what this council does. There's nothing wrong with any individual, organization, or anything else KENAI CITY COUNCIL MEETING MINUTES JW JULY 17, 1996 PAGE 25 in this city from disagreeing and expressing their opinions to. what this council does. Now, should I pound the table like you did? Williams: if you would like to, yes. Measles: (Pounded the table.) Williams: Now, I ask this council to unilaterally reject this resolution and there's nothing wrong with me asking for that either. Measles: That's right. Williams: Councilman Bannock. Bannock: Thank you. The way I looked at this resolution, it's certainly been discussed at my work. It's been discussed with my friends and the people that I deal with. Is it something the Chamber should do? Is it something they belong with doing? Absolutely and I think someone will tell you exactly why although I'm a little chagrined that we have a resolution from an organization as an agenda item. I voted for it to stay on the agenda purely out of curiosity to see what could possibly be the problem with reading someone else's idea. And here's the way I look at it. Unlike any other organization within the City of Kenai where the "boss" can hire and fire whomever he pleases, however he pleases-, I said to the gentleman.I was having a discussion today, "you ____.. certainly wouldn't want me to go into your business and tell you to hire or more -or -less who to fire." And he said "absolutely not.11 And I said, "Well then, who is the Kenai City Manager's boss?" and he said, "Well, it's the council." And that is absolutely correct because as.you've correctly pointed out. But, Mr. Mayor, since you quoted Government 101, 1 subscribe to Government 101 where this council, as a group, is nothing but a voice, representative government if you will, of the Kenai Chamber of Commerce and everybody else in the City of Kenai who chooses to do business here. This is not a god -given seat for me and I could be gone in just a couple of months if my representation is not consistent with those people out there. That's what I've maintained that this issue has always been about. We are a medium and we are KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 26 representatives. I won't be bang on the table, but I feel that this is an exact example of what good representative government has done. - Now, to carry it just one step farther, we have written resolutions here which will go to the State of Alaska, .which have gone to the United States Senate. Now, if a good senator was.to say, "Who in the world is the City of Kenai to tell us that unfunded mandates is a bad idea" and do what you've been suggesting, why would anyone waste their time to ever make a resolution of support of anything. Williams: Thank you. My contention is that this is a ill - thought -out resolution and it does not contain factual statements. Bannock: Sir, I am sure there are senators from your party's persuasion that would suggest that the resolution we made in regards to unfunded mandates was nothing but garbage and . completely full of untruths. You and I have had a discussion about a draft letter that was on the table last week that there was very little discussion about that I think has some innuendo and some untruths in it as well and that's exactly what we're here to do tonight is to debate those things. This is clearly the Kenai Chamber of Commerce's resolution and they're going to stand by it. I'll commend them for doing it and if you choose to disregard it, that's okay, but do not think that as a Chamber they did something wrong to you or the City of Kenai or this count 1. - Williams: Thank you. Councilman Smalley. Smalley: Mr. Mayor, I don't object to the Chamber voicing their concern and -if they wish to do it in a resolution format, that's their prerogative. I. I an concerned and, and I think it's unfortunate, it's not an unfortunate concern, I think it's unfortunate that some of the information within this document, they're definitely not aware of the same information this body is aware of and by the election policies when we took this office, it was to make decisions in the best interest of this city.. In our discussions and sessions, the bill of particulars, there are some grievous concerns that this body, I don't think is addressing. I'm looking at one you spoke about earlier and it says, "The Chamber of Commerce is concerned about the potential liability of the Kenai residents as well as public appearance of . bad faith and unfair dealing and handling." In my other life, I work for 703 school teachers. It's my duty and responsibility to KENAI CITY COUNCIL MEETING MINUTES . JULY 17, 1996 PAGE 27 make sure that in representing those teachers, that they are provided due process and that just cause must be shown, And in dealing with -Mr. Manninen and this issue, that's one of the - things that I, I will fight to my death to make damn sure that he is given due process and just cause. He is an employee and he is entitled to that and this suggestion here is, is totally erroneous. It's an opinion. I think it's unfortunate that a body such as the Chamber would have opinionated statements if they're going to make them again. I don't object to their making a statement, but some of these are Just flat untrue and I find that unfortunate because what it does is it continues to protract this into potentially an even uglier situation that it doesn't need to be. I'll leave it at that. Williams: Thank you. Further comment. Councilman Bookey. Bookey: Well, I would like to just basically echo the same thing that Councilman Smalley just said. I really don't take offense . to the fact that the Chamber has sent a resolution to the council. I think that's your prerogative. That's the way of democracy. You know, it's not saying that I agree with it, but I do accept it and I'm willing to let it stand. Williams: Even with all of the... Bookey: I, Mr. Mayor, to me... Williams: Are you willing to accept the resolution? Bookey: In this present form, that's not going to say that-1 agree with it in any way, shape or form, because I do not. But, if this is how the Chamber feels, then that's fine. This is their opinion to me. I accept that. Williams: All right. Any further comment. Measles: Yeah. I think Mr. Baldwin would like to make a statement to the council in regards to the resolution. Williams: All right. Mr. Baldwin? Baldwin: Thank you Mr. Measles.- Mr. Mayor, City Council, my name's Rick Baldwin. I'll try to make it brief. I'd like to address this issue and the one following on the agenda just in the interest of saving time because I think they're all It KENAI CITY COUNCIL JULY 17, 1996 PAGE 28 MEETING MINUTES intertwined and I think it's a larger issue and a greater principle really than perhaps is being debated at the council. This is been over twenty years since I was the city attorney and I have addressed this body on several times, but I've never addressed this body just on my own and not as a representative as somebody else and I guess I was so incensed by what I see developing right now, that I felt like it was just, it was time to come speak my peace. We're talking about a constitution and when we talk about a constitution, there's a greater constitution that transcends the City Charter. Its the Constitution of the 7nited States. The primary part of that Constitution we're all familiar with is the Bill of Rights and particularly the first one...the First Amendment which guarantees to all citizens the right to freedom of speech without retaliation or threat of retaliation by public bodies. Now, I guess I came tonight because I heard that perhaps retaliation was being considered against the Chamber. I don't hear that and so I guess I'm gratified that I haven't seen that. But following it, appears to be retaliation against the drafter of the resolution by going directly to his employer and that's outrageous. If that's the case, it's totally outrageous and if it's not the case, then it's a very poor political timing to be bringing up the issue of funds located in a bank, perhaps being moved or being reassessed because the drafter the resolution happens to be work for that bank. That shouldn't be. That shouldn't be anywhere in the United States. Where a person,_.who chooses to speak out, even if he's wrong on an issue of public importance, finds that he is being retaliated against through his employer. That shouldn't even be on the agenda tonight. The council shouldn't even allow that to stand. Even to discuss it because even to discuss it tells people in this town, "you better not take us on because we'll get you." This is to going on t Williams: All right. the table, o Thank you Mr. Baldwin. Further discussion of council. Since I'm the one that brought all these issues to I will try to end the discussion. KENAI CITY COUNCIL MEETING MINUTES . JULY 171 1996 PAGE 29 u • First of all, I stand by the original statement that I make that I reject, personally I reject this entire resolution as being out of place, inappropriate and unacceptable to me as a human being, to me as mayor of this city and I'll have nothing to do with it (tore up the resolution) whether it's your opinion or not. Now second, we come to the discussion of the allocation of City of Kenai assets for deposit to various banking institutions. I will speak to that matter. I'll speak to the matter as an issue as a matter of policy if nothing else with the City of Kenai. This issue has been before the City of Kenai on other occasions. on several other occasions. Now, it may be unfortunate and I may have timed the placipg of this item on the agenda inappropriately. The City of Kenai has been banking with the National Bank of Alaska for many, many, many years. I said to one of the members of the Board of Directors tonight, today. I said, "There is absolutely nothing wrong with the relationship between the City of Kenai and its banking policies of the NBA." The NBA has always served as a good bank. They've always worked well with the City of Kenai. Probably more so than any other bank would have and in fact, have on many occasions, told other bankers that there is no way in the world that they'll ever get this city to change it's banking from NBA to any other bank because, first of all, NBA flat, I guess gives us money to have the money. They give, they pay us to keep our money in their bank. Obviously because it costs them to run the accounts and they don't charge us anything. So, I have no complaints in that regard. However, it has been brought to my attention on more than one - occasion and recently again, that proper procedures for an institution like the City of Kenai would be to go out on the street with an RFP and ask for proposals from other banks within the community as to what they could or could not do for the city and I have been urged to do that on many occasions and I refused to do that. This council has refused to do that. The University of Alaska has a policy and they deal with a lot_ more money than the City of Kenai does of going out for an RFP, with an RFP, every three years asking banks, "what can you do for our money, with our money." Now, the City of Kenai doesn't keep all it's money in the NBA. We do have some money scattered - around, I think the AML Pool and I'm not sure if we have some in other specific institutions, but they're in a lot of instruments other than instruments of cash and money market with the NBA. We do hold a mortgage paper ... the NBA holds mortgage paper on behalf 0 • KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 30 of the City and the State of Alaska. So we do a lot of business with them. I think it's good policy and I will come back to -this council at some date in the not -too -distant future when we do have a full-time finance director on board, and I will ask this council to consider hitting the street with an RFP to look at the possibility of rearranging the allocation of our assets if it so benefits this council. And, if this council chooses to do so, they will do so with the best financial interests of this community and state. We do have 27.617 million plus in one bank. That is not good banking procedure. I doubt that any one of you, given that much cash, would put it all in one institution. I certainly wouldn't and I think it's something that bears looking into. So, it*was not intended to be a violation of the Constitution of the United States with regard to threatened arrest against someone because of something they said. I didn't intend it to be meant so. I did intend it to be meant as good policy for this city. Thank you. Councilman Bannock. Bannock: Thank you. For starters, we'll, I want to come back to this in just a minute, but ah, in an RFP situation, what does the city have to gain? What does the city have to loose? Williams: I don't know and neither do you until the RFP is completed and brought back. Bannock: When an RFP goes out and we find out how good that we may have have had it, just to humor me for a minute and pretend that we've had it good, when we see how good we may have had - it, by going out for an RFP, aren't we jeopardizing how good we have actually had it? Williams: Let me ask you a question. When you finance your house, your automobile, take care of your IRA, your savings account, your checking account, do you do it all through the same institution? Bannock: A lot of people do. Duane doesn't. A lot of people do. As a matter of fact, as a matter of fact, I will speak to that because I deal with a little bit of loans every now and then,•I have several clients who are endeared to some particular lending institutions that wouldn't ever dream of negotiating any of their financial instruments with anyone other than, whether it be Alaska USA Credit Union, the First National Bank of Alaska, KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 31 etc. You know, if there are, there's a lot of employee credit unions people are endeared to, so yes, that's not completely obscene. But, answering my question, if we do that and there's a tremendously good chance that where the levels of expense with other banks maybe greater than what we're paying right now, then we're just going to walk away from the RFP? Williams: You don't know what will occur. Now I have Mr. Dan Cuddy, Senior, Mr. Dan Cuddy say to me one time, "you don't know how much NBA is making off of your money and is not paying you until you match it against somebody else's account." Bannock: Sure. Williams: And we don't, no one knows that. We wouldn't have money right now in the AML Pool if it wasn't for the fact that we were making more with them than we are with NBA. All right? Bannock: Then if I can backwards to where I started, the note that I wrote when you started...Are you sticking with the fact that H-70, Allocation of City of Kenai Assets for Deposit to Various Banking Institutions, has nothing to do with Item H-6? Williams: Let's say that it was politically ill-timed to bring the two before the council at the same time. Bannock: -It does, it'-s just a coincidence? - Williams: Did I say to you that I will bring this issue back again and again before this council. Bannock: Mr. Mayor, then I would like to read into the record the minutes of the board meeting of last July 11th.6. Williams: In which I said ... read the minutes for the record. Bannock: These are the una, these are the, I might add the draft minutes, they're, but I'm going to read them as they stand. "Mayor William stated he wondered how many resolutions the Chamber plans to do in support of individuals whose jobs ar6k in jeopardy. He stated the author of this resolution has a conflict of interest as there is currently $27 million on deposit with his bank. He inquired as to whether the Chamber plans to do a resolution in support of him if his job becomes jeopardized." KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 32 That sure smacks to me... Williams: is there further minutes there? Can you continue to read the minutes with regard to what was said about other members of the community and their employment? Bannock: I will read the whole paragraph if you'd like to. "Mayor Williams also stated the evidence has been in the local newspaper and that five council members have... Williams: All right. Stop right there. Obviously, there are parts of the minutes that were not put in or else they haven't been read yet. For any of you who were there, you will recall I asked very specifically if any of you from this community, whether you be in the petroleum industry or the tourism industry or other industries, had your job on the line, would this Chamber come before you, or would this Chamber be willing to offer a letter of support on your behalf. I did not single out the banker per se as the only one. Now, can anyone here set there and call me a liar to that effect? Or does anyone remember: it the way I do? 0 Mr. Banker, you were there. Did I no bring that fact up? Banker (from the audience): Yes... Williams: All right. The Banker: Since you asked me, I will say that you did specifically single out me as an example of it. Williams: Did I not specifically state other members as well? Did I not say that other members of the community, would you be looking for a resolution before this body if your job was in jeopardy? The Banker: It was just interesting that you used me for the example of (inaudible)... Bannock: I. I'm sorry. I think read, I think I did read that sentence first. He wondered how many resolutions the Chamber plans to do in support of individuals whose jobs are in jeopardy. Yeah, I think I read that.. • KENAI CITY COUNCIL S JULY 17, 1996 PAGE 33 • LJ MEETING MINUTES Williams: All right. It's there. I would ask that question. Councilwoman Swarner and then we're going to close this discussion... Swarner: Well, I wasn't going to say anything with this, but on-, I do remember Mr. Mayor, that you did keep bringing up, over my tenure, that, going out for RFP's and going after other banks. So this is not a new situation. Williams: I have, I have. Councilman Smalley. Smalley: Yeah, Mr. Mayor. I appreciate your comment about suggesting this was not necessarily the proper timing for item seven and I. I also can remember this council, I think prior to, well no, it was in your first term, we had a discussion about the potential of an RFP. And I think Charlie Brown was the city manager, or the city finance director at the time, and convinced us that at that point of time, things were going okay and we should not do it. And I think it's come up at one other time. So it has, it has been an issue. But, but the timing in this particular case, probably was not appropriate. I appreciate your comment to that fact. Williams: Thank you. Councilman Measles. Measles: Just one comment and I think the reason it hasn't gone anywhere before, especially when Charlie was here, I think the Charter is pretty clear in laying that responsibility totally on the finance director because the financial decisions for the -city should be made by the people that are expert in that field and not by a political body. I don't think this council's has any business getting involved in how the finances of the city are handled. If we have a finance director that's doing the job. He knows what he's doing and we certainly don't. Williams: Thank you for that comment. As I mentioned earlier, when we do have a finance officer on board, I will bring the matter up again and ask that the council direct the finance director to prepare an RFP. And if council so chooses to do that, fine, if they choose not to, that also is fine. But again, not to belabor the fact. But ah, you talked about the powers of the council... Council powers shall include the determination of all matters of policy. They shall be vested in the council without limitation. Matters of policy with regard to where we bank can be made • RENAI CITY COU[dCIL M88TING MINUTES DULY 17, 1996 PAGE 34 directives to the financial director, the finance chairman. All matters of policy shall be vested in the council. Bannock: Sir, I'm sorry, I would take exception that where the money is a policy matter. Policy would be that it be in a... Williams: Our policy is to direct the city manager to do what's best for this city. And have the city finance director, through the city manager, to do what's best for this city. All powers are vested in this council. Now, I'm absolutely surprised and chagrined that there are some people who don't care to read the Charter or learn from it. Measles: I think that I've probably read that Charter as much or more than you have John... Williams: Well, I'm surprised then that you haven't looked at it more closely and understand these things... Measles: We just interpret things a little differently sometimes. Williams: We certainly do. All right. Does anyone wish to continue this discussion? Yes, Mrs. Bailie. Bailie: Could I please speak before this, I had not planned on it, but, the old hormones must be running because, here I come. I would like to know, first off John, it's like that old axiom, "if it ain't broke, why fix it." Another one is, "donut throw the baby out with the bath water." There's, there's hundreds of them. I'm standing here, as a former council person, such as you are. None of us were on council because we were going to.make big bucks. You've done a good job. Most of you are business for yourselves or at least involved. You're businessmen. Thank you for taking the time to volunteer your time to make this probably one of the finest communities in the State of Alaska. And, we've done a lot of travelling within the last two years, and let me say, 1 would put Kenai up against many, many communities outside the State of Alaska. I think one of the reasons we are so great is because there are people within this community that are willing to get up and volunteer. Such as the banker, who's not afraid to stand up and KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 35 say what he thinks is right. I think one thing we all need .to remember, and I've mentioned to one or two this evening, we've all got to learn to agree to disagree. On more than one occasion John, you and I were at each other's throats how many times and I like to think that you're a friend now. We always did not agree on things. Goodness sakes, in fact, probably during my tenure there wasn't a lot of times we did agree. But, at least we are willing to listen to one another. Now tonight, that's what that resolution was. It was a suggestion on the part of the Chamber of Commerce and God knows where we would be without the Chamber of Commerce. We just were part of, you work, we work; a wonderful parade, what a great day we had on our Independence Day. It involved little kids. It involved senior citizens. I'm sure it was wonderful for the economy of this town. Not only that, but the camaraderie was wonderful and that was because primarily, the Chamber of Commerce spent many hours and a lot of work to make this a fine celebration for all of us. • I just think there's too many things to be concerned about folks. NB of A right now, has probably got one of the finest reputation of banks within the country. It's scary when you look around and read the paper and see banks that once thought were very viable are going down the tube. And you certainly don't want to do anything that's going to jeopardize the money of all of us who live within this community. I just think you've done too good a job. We've got to, if something we don't agree with, that let's look at it and see if there's something within there and then maybe we can look, and maybe when it comes to the city manager. I don't know that much about it so I'm not going to speak as an expert. But maybe there would be a method by which it would help you to come to an easier decision in this matter. I don't know. But don't ever, ever get to a point where you fail to at least take a suggestion from fellow businessmen within this community who have expertise in their lives just as you do. Anyway, I appreciate the time. You are all doing a fine job and keep up the good work. Williams: Thank you. Well, let's wrap the conversation up by saying that this... KENAI CITY COUNCIL MEETING MINUTES i JULY 17, 1996 PAGE 36 Williams: Yes, yes. Necessary: This centered Around an organization I belong to so...my name's Mark Necessary and I'm representing the Chamber of Commerce and ah, I'm ashamed of what's going on in this community and I don't think that any one of us question the authority that you folks have. You know, that's your responsibility. But this community is screaming out to you $ado something.11 If you're going to make a decision, go ahead and make it. But give us some slack here. If you make a bad decision, you have to live with that, but help this community. Thank you. Williams: Thank you very much. I will say, let's try to wrap this up. I will say that this particular issue is the most volatile issue that's been before this council in the ten years that I've been mayor anal probably in the, well going back a long ways. We've had some major issues here. I'm looking at some of those pictures of some of those mayors and they had some major issues before them. But this particular issue's the most volatile issue that's been here since I've been here. Let me also say that in 36 years of living in the State of Alaska, and being a student of government and watching government during ali those years, I have never seen an activity involving the council and city manager handled in the manner and the fashion that this one has been handled. And that's because there are two very diverse opinions about what should and should not be done here. Two people, two, two divisions of this house that are diametrically opposed to each other's thinking and it's very apparent. And it's going to remain that way. It won't straighten itself out. I will say in defense of the council, with regard to how it's been handled, there have been times that matters that would very well have eased a lot of these things had they have been brought to the public, would have been well -served probably to have been brought to the public, but could not have been brought to the public because of matters involving personnel. Matters involving personalities. Matters involving litigation. A good lawyer would dearly love to sue this city if they could trap us into a situation where we violated the city manager's civil rights in some matter. I know that. This council knows that. We have strived to go by the code. We have strived to try to . keep this thing on an even basis. Now Mr. Measles and I have probably been the two gentlemen that have been at each other's • KBNAI CITY COUNCIL MBETING MINUTES JULY 17, 1996 PAGE 37 throats the most over that and I don't know if our friendship will ever come back to where it was. I'm hoping it will when . this is all over, but I don't know that it will. Raymond, I want to say to you though that at one point, because you've said to me, you know, about this secrecy thing, at one point when you called me from Anchorage, before you were leaving to go out of state, I said to you I'm going to be out of state. We're going to away from each other for four or five weeks and a lot of this was going on at that time. I said to you, call me. Stay in touch and i'il let you know what's going on. I never heard from you. We never talked to each other for five, six weeks and that probably is the basis for part of this problem because we didn't communicate, we didn't talk to each other about how things were going. Nonetheless, when it finally got down to the point where it was quite obvious that this council was going to move in a specific direction, then we had to invoke the code...the Charter, not the code, but the Charter because of the city manager's actions with • regard to demanding the public hearing on this issue. But when you invoke the Charter, it's specifically says that you will have thirty days, you will produce charges, and you will have a public hearing. That's this protracted thirty days that we're in again. Allowing the community to bleed some more over what's going to happen and how it's gong to happen and when it's going to happen. I think -it goes without saying that we've -all tried to follow the - Charter. We've all tried to make the best out of a bad deal. Now this council was deeply divided and its going to stay deeply divided. I don't expect the vote to change. I do expect the vote to prevail in the manner in which it's going now. I do expect to see it at the next meeting. When it's over, I'm hoping that someone can be brought in, at least on a temporary basis, to try to pull this organization back together. Now, there are wounds between this council and the Chamber of Commerce and they're deep and they may be there for a while and they may, you know, not be healed for awhile, but eventually they, will be. I don't know when. I too, am very unhappy over the way this whole thing has been run. But it isn't my fault. It isn't Raymond's fault. It isn't any one member of this council's fault. We do have diametrically opposing positions on this. If anyone would like to rebut or say anything in return, I'll be glad to chair it. Yes. U • • KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 38 Measles: Not, not a rebuttal John, but the friendship issue between you and I have nothing to do with it. That should not have.been affected just because we disagree... - Williams: Well, you know... Measles: ...that's, that has been a problem. You have taken this personally. Everything that I have said. Everything that anyone else has said that has not agreed with your opinion. We're all entitled to a different opinion... Williams: And I'll go along... Measles: ...and that should have nothing to do with friendships... Williams: Well, it's... Measles: Duane and I agree on very little... Williams: Let me say that our relationship has been extremely strained over this entire issue. All right. Measles: We should be able to disagree and not affect the friendship. If the friendship (end of tape) Williams: (beginning of tape) ...before we go on. Bannock: I'll just, I-'11 add that Mr. Manninen-is-not-gone yet - and I would encourage ... I say that with--all.-seriousness..,I would encourage each and every person, although I thank each and every member of the Chamber of Commerce and others from the community that came out tonight, I would encourage you to target your favorite councilmember if you think - that Mr. Measles and myself have even an inkling of common sense in this.matter. And ah,.Mr. Bookey has told me, at our last meeting in regards to Mr. Manninen's letter of proposed termination, that should the items in that letter prove to be untrue or there are conclusions that are, the conclusions that are, the conclusions that are led, that we are led to believe are.reversed, that -he would reverse his position and I'm working on doing that and.= would hope that each and every member in the community that thinks -anywhere like that, works on this council because -I do believe.in a representative form of government. And I'll end with that. Williams: Thank you. We're having a council discussion. Is there anyone else? Councilman Smalley. KENAI CITY COUNCIL e JULY 17, 1996 PAGE 39 U MEETING MINUTES Smalley: My position where I'm coming from, having been elected by the citizens of Kenai to best represent them and make the best decisions in the best interest of the city, where I'm coming from is I have lost confidence in Tours ability to direct the city The bill of particulars and other issues have placed me in this position. I still consider Tom Manninen a friend. I had a talk with him yesterday. I visited with him. I just am not comfortable with him being the city manager anymore. It's not necessarily philosophical differences or anything like that. It's just that over the past three years, situations and things have occurred. They've been identified and I'm uncomfortable with it. Ah, if he chooses to seek other employment within this community, I think that's wonderful and perhaps that one of the things that I might recommend that other citizens of the community do if they know of any other positions for which Tom might be interested in, ah, I would encourage them to pass that on to him. And that's where I'm coming from. I just... Williams: Any other comments? All right. We're coming pretty well to the close of the meeting. Normally, about this time, we'd go through some administration reports. Are there any that are really necessary this evening? RZKO TIME 8E881ON - None scheduled. I-1* reports none. I-2. I-3. _-4. I-7. Mayor - Williams asked if the department heads had no they would forego the administration reports. There were City Manager - No report. Attorney - No report. City Clerk - No report. Finance Director - No report. Public works Director - No report. Airport Manager - No report. KENAI CITY COUNCIL MEETING MINUTES JULY 17, 1996 PAGE 40 Ila is Rzoeffeezol J-10 Citisens Tim Navarre - a. Reported he would try to attend the Parks & Recreation Commission meeting to discuss the goals and objectives of Leif Hansen Memorial Park. He felt the Commission needed a broader scope in regard to size of user groups, length of time for activities in the Park, etc. b. Navarre reported he attended the NACO Conference in Houston. He stated he thought copies of AML and NACO reports should be included on public agendas so the public would know what information was received and policies made on a national level that could affect Kenai. Navarre aAlso reported he was again assigned as cc -chair of the National Coastal Watershed Committee which he thought was making some great impaut around the country in regard to the government working with coastal management. Also, during his trip to Houston, he visited the Houston Space Center. C. Navarre reported there was a draft ordinance prepared by the Borough Attorney ir, regard to animal powers within the borough. The ordinance would be introduced on August 6. Rick Baldwin - Baldwin stated the council should never create the perception that it was retaliating against individuals for exercising their -rights.. He felt that was done during the- - --- meeting by the whole council because the issue was debated__.. __. (regarding allocation of -city funds). The council shouldn't even debate an issue like that. Because to debate an issue like that, lends it some creditability and viability. Now he was wondering, whose name would appear on the agenda next? Or, whose job would appear on the agenda next so they have to come and defend themselves because they took the city on. People shouldn't have to come. The council should have the kind of policy that it wouldn't talk about it and that was the point he had tried to make in his earlier remarks. He felt the point was. lost because it was debated. The issue was alive now and for only one reason and that was because a man took a principle stand along with a group of other individuals. He cautioned the council should be real sensitive to that because it was very important the council encourage open debate in Kenai and not squelch it and specifically, not use their power to step on people that do. C7 i KENAI CITY COUNCIL MEETING MINUTES JULY 171 1996 PAGE 41 J-2* counail sntalley - Reported the third manhole out on Lawton extended (by the iron gate past the golf course) had real severe erosion around it. It was approximately six to eight inches away from the main. It appeared it would need some fill due to continuing erosion. Smalley again spoke about the complex being built on James Street. He read from KMC 14.20.190, Principal Structures. "Erection of more than one principal structure on a lot in any zone more than one principal structure housing a permitted use may be erected on a single lot." Smalley explained, the developer could have three structures and they could be rented by the month. That information was included in the packet information, however it had not been highlighted. T12E--1fl The meeting adjourned at approximately 10:33 p.m. Car submitted APMOVED DY COUMCK