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HomeMy WebLinkAbout1996-12-18 Council Minutes`J A. Be co AQUDA MAX CITY COVNC DEC IL - Rl"aVLAR MEETINGf Ei�BER AA, 1996 RENAL CITY COVNCZL ERB httpl//W"Oxenai.net/city CALTA TOOK 1. Pledge of Allegiance. 2• Roll Call 3. Agenda Approval 4: Consent Agenda *All items listed with an asterisk to be routine and non -controversial (by the considered and will be approved by one motion. be o and separate discussion of these items unless Ce no Member so requests, in which case the item wilincil removed from the Consent Agenda and considered ine its normal sequence on the agenda as part of the General al M-CREDOLEe puuL=c COMm (10 Minutes) iII 1• Resolution No. 96-89 - Tranferrin 1 Mission street Improvements Capital Project 600 in the Transferring Additional Engineering Design Work. Fund for a• Approval - Engineering Contract Amendment - $14,600. b • Consideration . of . Resolution - No -- g g..8 9 , 2• Resolution No. 96�9Q - Signaturss for WithdraweltFrom®Denosih® Authorized Municipal Funds. P tories of 3• Resolution No. 96- General Fend for Purchaseaoffgraing $4,273 in the p re Computer Parts. 4 • Resolution No. Awarding a Contract Systems, inc. for Propane Fueled ARP`FT' Simulatoto rs the Alaska Regional Fire Training Facility_ rs for Design Assistance for the Total Amount o$130,000.Schedule I 5• Resolution So. _ �000. 96 93 - General Fund to Transferring $1r200 in the Cover Postage Costs Attributed Development of the Alaska Challenger Learnin C n the g enter. -1:. • 6. *Restaurant Designation Application - Old Town Village Restaurant - Restaurant Eating Place, FIVEEFT--7)110. C14 Y..Y _ _ _1 • J _ 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 a. Challenger Steering Committee d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report 1. *Regular Meeting of November 13, 1996. 2. *Regular Meeting of December 4, 1996• H. Un- BII8INB8B 1. Bills to he Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 30 *Ordinance No. 1729-96 - Increasing -Estimated Revenues and Appropriations by $38, 93.4 in the General_ Fund for Police Department overtime and Equipment Financed with a State Grant. 4. *Ordiaanee No. 1730-!66 - Increasing Estimated Revenues and Appropriations by $4,000 in the Council on Aging - Borough Special Revenue Fund for Purchase of a Television/VCR Unit, and a Computer. 5. Approval - Assignment of Lease/Lot 5, Block 5, General Aviation Apron from Dia-Log Company to Robert J• Johnson. 6. Approval - Commission/Committee & Board Term Renewals. • 7. Approval - 1997/98 Capital Improvement Project Brochure. S. Approval - Agreement for Indemnification and Use of.Ski Trails/Kenai Nunicipal Golf Course. 90 Approval - Wash Water Disposal/Kenai Peninsula Borough. 10. Discussion - EDD/Business Innovation Center - City of Kenai -Lien on Tract. C, Tract C -Radar Subdivision, Replat No.. i. 11. Discussion - Airport Restaurant Lease RFP, 12. Discussion'- Work session Scheduling RIMTI9E BSBBiON - None Scheduled t. 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DIBMBSION 1. Citizens (five minutes) 2. Council 1�. A�iTOUR�lM�1T - -3- • r� KENAI CITY COUNCIL - 1tNOUL31R MEETING DECNMSNR i6* 1996 7:00 P.K. KENAI CITY COUNCIL CRRMBNRd httpt//wwwoKenai .aet/city. MAYOR JOHN J. WILLIMS, PRESIDING X= As l�AL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 p.m, in the Council Chambers in the Kenai City Hall Building. ►1� : ; .j Mayor Williams led those assembled in the Pledge of Allegiance. A-2 . Roll was taken by the City Clerk. Present were: Williams, Bookey, Swarner, Moore, Measles, Bannock and Smalley. A -so Mayor Williams requested the following changes to the agenda: ADD: Executive Session - Discussion of Inlet Woods litigation. MOVES. B-l0, Discussion, EDD Innovation Business Center to B- 1. MOTZONS Councilman Smalley MOVED for approval of the agenda as amended and requested UNANIMOUS CONSENT. -Councilman Bookey SaCONDED the motion. There were no objections. SO ORDD. A-6. Mayor Williams requested the following change to the Consent. Agenda:' RZKOVlf: H-4, *Ordinance No. 1790m96 - Increasing Estimated Revenues and Appropriations.by $40000 in.the Council on Aging - Borough Special Revenue Fund for Purchase of a Television/VCR Unit, and a Computer. NOTION: Councilman Smalley MOVED for approval of the amended consent agenda and Councilman Bookey SECONDED the motion. There were no objections. 00 ORDERED. • KENAI CITY COUAiCIL MESPING MINOTES DECEMBER 18, 1996 PADS 2 ZZ JU BC ZDULBD POBLIC 99MINT 2-10 Discussion-- EDD/Business Innovation Center - City of Kenai Lien on Tract C. Tract C Radar Subdivision, Replat No. 1. Jim Elson - Elson explained EDD acquired the property through grants from ARCO, the Kenai Peninsula Borough, City of Kenai and Kachemak City. With the grants, there was a balance of $250,000 for which they received a loan from the bank. The City of Kenai secured its position by taking a lien position. The bank had the first position and the City took second. Elson reported EDD had recently received a $1 million grant from EDA to expand the facilities, pay off the note and renovate the existing building. EDA, in their grant requirements, require they have first position on the property. Also, because their grant is primarily for the purpose of the Business Innovation Center, they were only interested in the improved property. Because of that, EDD was now in the process of subdividing that portion of the property out. EDD was requesting the City reaffirm its position in taking a second position in a lien hold interest and would like to continue the same arrangement. The only question was whether the City wanted to continue its second position on the entire property or just on the improved portion. Councilman Smalley asked Attorney Graves for comments in regard --- to liability to the city. Graves answered, the city was currently in second position. If the item was approved, the city would remain in second position. It is switching who is in first position, i.e. First National Bank to EDA. The City would not lose anything by agreeing. The question to council was whether they wanted the City0s second position to cover both tracts. There would be more security if the second position covered both tracts. Bookey asked if then the City would be in second position with $1 million in front of it instead of $240,000. Graves answered, yes. Bookey stated he had no problem with staying in second on the front tract and did not think it needed to be in second on both tracts. Bannock referred to Part C (the top part) of the information 40 included in the packet and asked if the EDD had any plans for that portion of the tract, i.e. would they build something on it, KENAI CITY COUNCIL MEETING MINUTES • DECEMBER 18, 1996 PAGE 3 • 0 deal it away, etc. Elson answered, they had no plans of using the land at this time. They were focusing on getting the Innovation Center on line.- They would, however, be -open to. other proposals, but at this time, they had no plans. He added, some of the Board members felt that the EDD should always maintain the ownership of the property and use it as a mini -land trust to support the organization. others feel it is prime property for development for other uses. However, no consensus had been reached. Bannock stated he would prefer the City secure both parcels. Williams noted, from his perspective, the only reason the City originally took second was in the event of the collapse or failure of EDD to insure the City got its money back if there was a liquidation of the property. . Williams added, he would be willing to place the lien against the improved properties and not against the subdivided tract in order to free up the subdivided tract allowing the EDD Board to be more free to make determinations of what they want to do with the tract. He hoped EDD would do it under long-term lease rather than sales. If the lien was to cover only the improved property, the trust note would have to be rewritten. Graves stated,, -the City has a lien on the whole parcel at this time. EDD could subdivide the property as many times as they wanted, but the lien would stay the same until the note was modified. The note would have to be changed if the City reduced its security by not including the unimproved portion. LOTION$ Councilman Smalley XOVRD for the City of Kenai to maintain its second position on the entire piece as it is presently set. Councilman Measles BECONDED the motion. There were no objections. 00 ORDRRBD. C+l. Resolution No. 96-89 - Transferring $14,600 in the Mission Street Improvements Capital Project Fund for Additional Engineering Design Work. • KENAI CITY COUNCIL MBETING MINUTES D8CffiQBBR 181 1996 PAGE 4 C-la. Approval - Engineering Contract Amendment - $140,600. Public Works Director Kornelis referred to his memorandum included in the packet which explained there were three additive alternates (decorative street lighting, Alaska Avenue paving, Mission Street water and sewer mains) being considered to be included'in the project. The City had originally financed the project construction -wise but since then, ISTEA funds had been received. The construction account had $149,479 unappropriated funds in it. Because of the ISTEA funds received, the $149,479 probably would not be needed for the construction of the project. Kornelis added, the City was providing the design engineering funds for the project. The engineer, Mike Tauriainen, forwarded to him a proposal to provide additional services in regard to the additive alternates. The proposed amount for the additional services was $14,600. Kornelis reviewed the additive alternates: (a) Decorative 18 lighting -- not a necessity, but there was a desire to place more historical type street lights in that area than what are there now; (b) Alaska Avenue -- Mr. Cherrier had requested that portion of the road paved in exchange of the right-of-way by his apartments. Council approved that agreement. The engineer's additional services would include the engineering design of that portion of Alaska Avenue; (c) Water/Sewer mains -- The City0s policy has been when paving a road, if there are service lines under the road, a main linn be placed to replace the service lines. This was also something Mr. Arness was requesting -as -part - of the project. The additional engineering funds would zover the engineering design for this as well. 0 Kornelis reported Mr. Cherrier had signed the plat and the right- of-way, based on the City�s agreement i-rith Cherrier, had been finalized. The Russian Orthodox Priest had signed the plat as well. Mr. Arness would be in to sign the plat in the next few days. The resolution (to be acted on) would transfer money from construction to engineering. Kornelis stated he did not know if any of the construction funds would be needed as it would depend on whether the federal government would find the additive alternates grant eligible for construction funds. Kornelis added, he was trying to work with the State to pick up the construction funds. KENAI CITY.COUNCIL MEETING MINUTES • DECEMBER 18, 1996 PAGE 6 Bannock stated he was concerned about using $14j600 of fcthe who $149,479 and having unanswered questions would pay for it and how it would be paid for. Williams noted the city originally anticipated spending $149#479 on the construction of the project. Now, the city was fairly sure the $149,479 would not need to be spent 1on00 at it. expethis wed to spend it on and may canof have spend w$4y or may not have to There would be a balan S135,000hichma be spent on water/sewer at a later date. Bannock asked if this would be an engineering project to be done in the wintertime. Knackstedt answered yes. Moore asked if the city was looked into ifthe the citypaving was committed Avenue. Answer was yes. Moore asked in some way to placing the water/sewer mains on Mission. Kornelis stated the city was not locked into it, but Mr. Arness was concerned about water/sewer and really wanted it lacedstateand was under the impression it would be in he would support having the study done. Bookey agreed with Moore and added Alaska Avenue had to be done and he felt the water/sewer needed to be done as the pipe there now was 25-30 years old. He was concerned they may fallshort oing fothe rward and wanted council to be aware of it. He supp going with the $14,600. MOTIONS Councilman Smalley MOVED to approve the engineeringact amendment to Mike Tethenthe motion,amount not xc eed councilman Bookey SECONDED VOTB: Williams: Yes Bookey: Yes Swarner: Yes Moore: dies Measles: Yes Bannock: Yes Smalley: Yes MOTION BAssBD UNANIMOUSLY. C-ib. Consideration of Resolution No. 96-89. 0 • KENAI CITY COUNCIL MEETING MINUTES DECEMHER 18, 1996 PAGE S Bookey asked if Kornelis had a general idea of the construction costs (if the State would not pick up the cost for the additive alternates). Kornelis referred to Henry Knackstedt (engineer for the project) and Knackstedt answered no preliminary estimate had been done on the construction. Kornelis stated the City had done one for Alaska Avenue, but he was not sure what the cost was. Bookey stated he was concerned about the cost for the water/sewer costs. Bookey asked if the $149,479 would cover the cost to move the water/sewer lines. Knackstedt added, when the original design was prepared in 1992, the water/sewer was not included. Kornelis stated, the water/sewer would run between the Church and Fort Kenay, down the right-of-way and around to about the Arness driveway. Bookey asked if the water line would be taken to overland and extended in. Kornelis stated that was the original thought. He added, they did not know what condition of the pipe would be. 40 Bookey stated he did not think the $149,479 would cover the cost of laying water/sewer that distance. Discussion of the sewer/water lines continued. William suggested the design could be done and then see what happens. Bannock asked if the additional $14,600 would be approved and then additional funds are not received from the State and the $149,479 won't cover the costs, what will need to be done? Kornelis stated, the three items were additive alternates and would not have to be awarded. They would be taken one at a time. Kornelis added, the State did tell his they might be able- to get additional funds from the federal government if he writes a letter explaining it is the city's policy to replace water/sewer lines (not up to standard) when paving is done. Bannock asked if it would hurt the city to not have the engineering done until after they find out if the federal government would cover those costs. Kornelis stated there was not a problem except for the time involved. Bannock added, he was not real favorable in doing the decorative lighting and didn't want to spend $6,700 for something he was not liking especially if there was a chance the city would not be funded. Williams added, the engineering firm was probably wanting to do the engineering as a package and not as a piecemeal project and he was not sure all council was not interested in placing the decorative lighting. 0 • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE '7 110TIONS Councilwoman Swarner MOVED for approval of Resolution No. 96-89 and requested MWIMOUB CONSBWT. Councilman Smalley SECONDED the motion. There were no public or council comments. VOTES There were no objections. 80 ORDERED C-2. Resolution No. 96-90 - Establishing the Authorized Signatures.for Withdrawal From Depositories of Municipal Funds. MOTIONS. Councilman Measles MOVED for adoption of Resolution No. 96-90 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. Resolution No. 96-91 - Transferring $4,273 in the General Fund --for Purchase of -Spare- Computer Parts-. XOTIONS Councilwoman Swarner MOVED for approval of Resolution No. 96-91 and requested MWINOUS CONSENT. Councilman Moore SECONDED the motion. There were no public or council comments. VOTES There were no objections. so ORDERED. C-6. Resolution No. 96"92 - Awarding a.Contract to Symtron. Systems, Inc. for.Propane Fueled ARFFT Simulators for the Alaska Regional Fire Training Facility - Schedule I - Design Assistance for the Total Amount.of $130,000. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE 8 ' NOTIONS Councilman Smalley MOVED for approval of Resolution No. 96-92 and Councilman Bookey SECONDED the motion. There were no public comments. Councilman Moore noted the information included in the packet compared other facilities around the United States with the type of facility to be placed in Kenai. He asked if the deductive alternates were contingencies to remove from the project if it was over budget. Williams answered yes. Williams explained the project was designed with nine fireplaces. Deductive alternate fireplaces were the galley, lavatory and baggage fire compartments. Moore asked if the deductive alternates would diminish the city's capacity to accomplish the type of facility. Chief Burnett stated the galley and lavatory fireplaces would be an enticement for ERA/Alaska Airlines to have their personnel trained here. He added, if the city's desire was to cater to these airlines, they would be important fireplaces to be included. Burnett added, 40 these fireplaces could also be added later. Williams noted, the inclusion of the items was contingent upon how much funds were received to do the project. Moore added, these were deductive alternates which were included in the plan but could be taken out. VOTBt Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes LOTION PASSED UNANIMOUSLY. C-5. Resolution No. 96-93 - Transferring $1,200 in the General Fund to Cover Postage Costs Attributed to the Development of the Alaska Challenger Learning Center. MOTION: , Councilman Bannock MOVED for approval of Resolution No. 96-93 and Councilman Smalley SECONDED the motion. There were no public comments. Councilwoman Swarner asked how much money the City had spent on the project thus far. City Manager Ross answered, administration was beginning to track • RENAI CITY COUNCIL MEETING MINUTB$ DECEMBBR 18, 1996 PAGE 9 costs spent for duplication, postage, etc. The resolution would aid in specifically identifying costs to the Challenger program. Other than the $15,000 grant, they were not aware of how much was spent in -increments. Swarner asked what costs were expected in the future. Ross answered, there was a $7,500 grant coming. He had been discussing with the finance Director the possibility of setting up a pass -through grant system. Depending on how the grant is worded, it may require a match. They would be checking into the possibility of the grant contract being the city�s match. If it is acceptable, they will set the grant up as a pass -through so they will be running their own books. Swarner asked if then funds as included in the resolution would not come before council. Ross answered, that would be up to the council. Moore asked if the resolution was related to the pull-out of Northwest Strategies. Ross answered no. Bookey asked if there was anything on the horizon that would lead to believing the city would be successful in constructing the facility, other than the city being chosen for the location. Bannock reported the. Challenger Committee had a private audience with Senator Stevens about the project. Stevens' first question, after their presentation, was why the facility should be built in Kenai. The Board's first answer was because Kenai was the organization that put forth the money, time and effort to seek the project. The Board asked Stevens for $2.5 million. Bannock added, Stevens' explained funds could come through a request -from NASA on the city's behalf from -the federal government and . Stevenst requested his aide to contact NASA to get that worked out. Bannock stated he was very encouraged. Bannock added, Stevens does not want to get involved with a project that would require continuous funding. Bannock added, the Board met last week and are involved in setting up a Board of Governors (a group of high -profile individuals who will have a goal of raising capital) . Swarner asked.why Northwest Strategies withdrew their proposal for fund raising. Williams answered, it was mutually agreed. The Board found that, after the trip to the conference in Pittsburgh, they could do better by setting a Board of Governors. At the same time, Northwest Strategies had also volunteered to drop the contract as they had other commitments. Williams added, at this time they had not made any official appointments to the Board of Governors, but they had contacted Don Gilman and the • KENAI CITY COUNCIL MEETING MINUT83 DECSMBSR 181 1996 PALL 10 �J State Director.of FAA, who had volunteered to be involved. They had also requested Senator Stevens and Mr. Ladner (Alaska Aerospace) to identify people who they thought would participate. Swarner stated she would support the resolution, but wanted budgets, etc. put together in order to know how much was spent, or being spent, etc. Williams stated there could be other requests for seed money for the project. Ross added, if a pass - through program was set up, and if future services were provided, a resolution be brought forward for a direct transfer so that funds would not be run through city books. Then council, as a policy, can approve or disapprove. Williams noted the funds included in the resolution were to cover postage costs to send the feasibility study to legislators, etc. Council had agreed to cover postage for this as a separate item from the contract. Bannock agreed, the postage costs were not part of the contract with K. Scott. & Associates, but were to be covered by the city. VOTES There were no objections. BO ORDERED. C-6. Restaurant Designation Application - Old Town Village Restaurant - Restaurant Eating Place. Approved by consent agenda. BREAK TAKENS 7151 P.M. BACK TO ORDERS 6105 P.X. D-1. Council on Aging Councilwoman Swarner reported a meeting was held on December 17. Also, on January 18 a town meeting would be held at the Senior Center. A survey was being taken as to what seniors wanted to have offered at the Center. Swarner added, there were two openings on the Board. D-Z. Airport Commission Councilman Measles reported the Commission met last Thursday. Minutes of the past two meetings were included in the packet. . KBNAI CITY COUAICIL MEETING MINUTES DECEMBBR 181 1996 PAGE 11 Moore asked what the Commission's overall attitude was in regard to the car rental space discussion. Measles answered, there would be a recommendation from the Commission in January. He added, at this time, they seemed to be leaning toward leaving it at three rental car operators instead of four. D-3. . Harbor Commission Councilman Bookey reported a meeting was scheduled for December 9 but there was no quorum. He found the packets had not been received by most of the Commission due to the postal service delays. It was determined no absences would be accounted to the Commission members because of the mail delay. D-4. Library commission Councilman Moore reported the minutes of the last meeting were included in the packet. He also reminded council and administration of the Library Open House scheduled for December 19 from 5-7:30 p.m. 0-50 parks & Recreation Commission Councilman Bannock reported the minutes were included in the packet. During the meeting, the Commission selected 24 patterns for banners. The chosen banner designs would be on display at the Art Center and other buildings in town. Bannock also reported the Commission requested the:x January 2, 1997 meeting be postponed until January 9. Council had no objections. Williams stated there would be some discussion during the January 9 meeting about the cemetery and the possibility of a Cemetery Committee being set up. Membership of the Committee would include Parks & Recreation members, Beautification Committee members, area pastors who have expressed some concern in regard to the cemetery. Williams stated he would attend the meeting and requested council members to attend as well. D-6. Planning s Boning commission Councilman Smalley reported the minutes of the November 13 and December 11 meetings were included in the packet. Smalley reviewed actions taken by the commission. Smalley added, the Commissionts January 8 meeting would be held in the library. VLC CITY 18 COUNCIL UNCIL MEETING MINUTES GE 12 . 1996 Smalley also r notification ofported the Commission which has applied owners withindiscussed the request that per'mittin pplied Por a home occu feet of a administra process. on s rev Smallpatios permit be property occupation review and b cuse reported the Commission in the permits here mmissiori felt, with unless and with changing ter notificatiori was no fee for Council he code to costs, the home directed them include the notifiationriot D-7. to do so. D0,740 MieoellaneOus Comeissions eiautifioation coaxittee cad Committees Councilwoman Councilw Swarner reported The next Meetingno meeting was scheduled for Hi D-7b. was scheduled for January 14 storic riles*..� _ Councilman Moore reported were included in the the minutes of the Nov December 16 which packet. Also ember 18 historical buildlnwas lengthy due tea meeting was held onmeeting a debate City decals should be isshould be • as to how big the discussed the included Also whether Rotary Alacement of the Shl;;e ktukbuilding signs. They also D-7o. Challenger Big.. y also q r 8teeriAg comittee Councilman Bannock re C Also, the ported the last was -elected President, -its meeting was held on first meeting at which Gin December as a member at large ofpat Ladner; Vice Pre all the b the executive silent. gar Steffy card members would be committee• ' and the Mayor included in A listing of D"7d• Kenai visitor, ; the next packet. Councilman Booke Couveutiou sureau Board held it December y reported a strategic well and a ii angles s o the Princess Lo lot of chapmeeting oP the Board was ad ed# the Director would be°uld be seen in the It went really reporting to council at thecOme• next He D•7e. Alaska Municipal t, Councilwoman swarne u9ue Report teleconference r reported she Of the legislativecallcommi the legislative In teleconferences gislativ® subcom�gi a ences instead committees They plan t ttee and chairs Planned for the middle of Ha to o meet via ch• g t° Juneau. She requested council trip is forward- • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 181 1996 PAGE 13 priorities, etc. to her. Swarner also reported Councilman Smalley was appointed as a board member to ARL. MINUTES 2-1. Regular Meeting of November 13, 1996. Approved by consent agenda. 8-2. Regular Meeting of December 40 1994* Approved by consent agenda. CORRESPOliWIMZ None. ITEX O,3, OLD BUSINESS None. H-1. Bills to be Paid, Bills to be Ratified MOTZON= Councilman Smalley MOVED to pay the bills and Councilman Bannock BECtOND20 the motion. There were no objections.. 80 ORD D0 H-2. Purchase Orders Exceeding $2,800 Councilman Measles MOVED for approval of the purchase orders exceeding $2,,500 and Councilman Bookey DECOMORD the motion. There were no objections. 80 ORDERED. H-30 Ordinance No. 1929-96 - Increasing Estimated Revenues and Appropriations by $38,934 in the General Fund for Police Department Overtime and Equipment Financed with. a State Grant. • RENAI CITY COUNCIL AdEBTING MINUTES DECEMBER 18, 1996 PAGE 14 Approved by consent agenda. H-49 Ordinance No. 1730-96 - Increasing Estimated Revenues and Appropriations by $40000 in the Council on Aging - Borough Special Revenue Fund for Purchase of a Television/VCR Unit, and a Computer. Removed from the agenda. H-5. Approval - Assignment of Lease/Lot 5, Block 5, General Aviation Apron from Dia-Log Company to Robert J. Johnson. MOTION! Councilman Smalley MOVED for approval of the assignment of lease of Lot 5, Block 5, General Aviation Apron from Dia-Log Company to Robert J. Johnson. Councilwoman Swarner SECONDED the motion. A& Bookey stated he thought use of these properties was to pertain to aviation businesses. City Manager Ross stated he had discussed the matter with Kim Howard and found that it would be a preference of FAA for a new lease to have the business be aviation related. This is a sublease and as a sublease Howard did not think it would be a problem with FAA. Bookey stated he thought the properties should be opened to general commercial. some concern about the location and this paints which are highly flammable. It w been a similar business on the other sid close neighbor buildings. VOTE$ along Willow Street Williams stated he sublease due to the as pointed out there e of the street with had had There were no objections. 00 ORDERED. H-60 Approval - Commission/Committee & Board Term Renewals, Councilman Bookey stated he was concerned with Historic District Board Member Boraas' absences (eight out of 11). If he doesn't participate he doesn't do the Board any good. Moore reported the absences were discussed at the Board's meeting. Moore added, Boraas' schedule kept him from attending the meetings, however he would like to remain on the Board. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 181 1996 PAGE 15 swarner reported both Gene Seay and Lucille Billings had resigned from the Council on Aging (both moved out of the area). Clerk Freas-was requested to send thank -you letters to them. Smalley stated he was also concerned about the missed meetings and suggested council review the code requirements again. If there were members who continue to miss meetings, the code should either'be changed or enforced. The boards, commissions and committees cannot work effectively if the members don't attend. Bookey agreed and added, council changed the code to encourage better attendance. At the same time, the positions are volunteer. He added, if council was not going to enforce the code, it needed to be changed. MOTION$ Councilman Smalley MOVED to approve the board, commission and committee renewals, with the exception of Lucille Billings. Councilman Measles SECONDED the motion. There were no objections. 80 ORDERED. H-7. Approval - 1997/98 Capital improvement Project Brochure, MOTION$ Councilwoman Swarner NOVED to approve the proposed CIP mail -out brochure but requested the print on -the front side (projects and amounts) - be enlarged. Councilman Smalley_ SECONDED the motion. There were no objections. So ORDERED. N-8. Approval - Agreement for Indemnification and Use of Ski Trails/Kenai Municipal Golf Course. NOTION $ Councilman Bannock NOVED for approval of the agreement marked H-8 and entitled, Agreement for Snd6malfication and Use of Ski Trails, Councilwoman Swarner SECONDED the motion and requested MQUIMOUB CONSENT 0 Councilman Bannock reminded council this was a project which the city had spent some funds, i.e. new snow machine, etc. The snow machine had arrived. Parks & Recreation Director Prates added, KENAI CITY COUNCIL MEETING MINUTES DECEMBER 181 1996 PAGE 16 because of the snow machine traffic and State's snow removal along the highway, it was not practical to groom ski trails in front of KCHS. VOTES There were no objections. BD ORDERED. B-90 Approval - Wash Water Disposal/Kenai Peninsula Borough. City Manager Ross reported council's approval was needed to allow the Borough to dump wash water at a location approved by the city, within the city. Kornelis explained, at this time, the city was not ready to go into a long-standing agreement with the Borough because the consultant was just finishing up the mixing zone study. The study included working with DEC and EPA in determining an area where quality affluent would not be as strict (having to do with copper). After completion of the study the 41 city would be in a position to decide whether the city could accept the was water on a long-term basis. The study was to be completed by the end of the year or the first part of January. The last time wash water was received was in June. The Code requires approval from council to accept the wash water. Swarner referred to the memorandum (included in the packet) from Gerry Allen and asked what other location had been discussed. Kornelis answered, they had discussed a lift station on Marathon Road as a location. No exact location had been decided as yet. They wanted to try something different than the transfer site: Bookey asked what quantities were being discussed. Kornelis stated he didnft know exactly, a fairly good-sized truck. Bookey stated he was still hesitant of the process. Smalley asked if this was done annually. Kornelis stated it was more like twice a year, if it was continued. Kornelis added, he was suggesting the city allow the dumping one more time and then, more dialogue would happen between the city, EPA and DEC. Then a decision could be made after the study was completed. Ross noted, the ordinance required the dumping to be a one-time deal until an agreement is approved by council. Councilman Moore asked if any place the wash water was dumped would be out of the way, not in a subdivision, etc. Kornelis answered, yes, it would be dumped out of the way. • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE 17 NOTIONt Councilman Smalley MOVED to approve the wash water disposal with the Kenai Peninsula Borough and the city and leave it up to the city administration to work out the specifics of the dump site. Swarner asked what would happen if the city did not allow the Borough to dump the wash water. Williams asked if there were any adverse effects on the city from the last dump. Kornelis answered no, there were not. Williams asked if it was anticipated there would be any adverse effects on the plant. Kornelis answered no, there would not be. Bookey.stated he thought the problem was the city did not know, at this time, whether it would have a mixing zone or not. Smalley stated, he did not think the city was impacted by that at this time. Kornelis answered that was correct. He added, the city's new permit would be much more restrictive. The new permit would be so restrictive the city would have a difficult time with the present effluent. Williams asked how long it would take the residuals of the dump to go through the plant. Kornelis answered, three days. Williams asked if the city would have to review the dumping each time the Borough wanted to bring wash water to be dumped. Ross answered, until the city and borough enters into an agreement. Williams suggested the Borough be advised of council's reluctant actions to allow the dumping and its concerns in regard to the future permit. Measles asked what other options were available to the Borough - for dumping. Kornelis answered he believed the Borough had convinced the City of Palmer to take some at one time. Soldotna would not take it. Kornelis noted, the Borough had been rather strict on the City in taking tests and getting test results for the sludge which the city places in the Borough's landfill. They ask to allow the dumping, but at the same time ask the city for more up-to-date test results for what's being placed in the landfill. Moore asked where Soldotna bailing facility take their water. Measles answered, this is it. Moore asked if anything washed down generated in Kenai. Kornelis answered no. Bookey asked if the Borough was charged at a rate normally charged to others. Kornelis stated no, and the Borough doesn't charge the city for its sludge. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE 18 Measles asked if the Borough provides the city with a complete analysis of what they are dumping. Kornelis answered, yes. Measles asked what the biggest contaminant seen in the water. Kornelis answered, he believed it was one of the heavy metals, but it is really not that bad. Voss: Councilman Bannock SECONDND the motion. Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes MOTION PABBED t MMIMOUGLY. Williams stated he would like administration to address the Borough about its reluctance to allow the dumping without some major assurances and because of permitting requirements, the city • may have to refuse their requests. Measles stated it was more likely the heavy metals would be recovered in the sludge which would be transported back to the landfill than what would be recovered in the water. Measles asked, if there was a point where the metals could reach a level in our sludge that the Borough could refuse to accept it in the landfill. Kornelis stated he didn't know the answer. Kornelis added, the biggest problem in the effluent for the future is copper and they are looking at ways to -drop -the copper off:: There is no problem with the copper in the drinking water, but is in the marine life in the Inlet. 8-10. Discussion - EDD/Business innovation Center -- City of Kenai Lien on Tract C, Tract C Radar Subdivision, Replat No. 1. See B-1. R-11. Discussion - Airport Restaurant Lease RFP. Williams noted the RFP and memorandum from the city manager were included in the packet. Councilman Bannock suggested the word "exclusive" could be removed from the RFP and stated his reason was that it would lend to better competition. There have been many people interested in selling a product in the airport, but couldn't because of the exclusive lease. He noted the Airport Commission minutes stated there was concern that the airlines KENAI CITY COUNCIL MEETING MINUTES • DECEMBER 18, 1996 PAGE 19 were not allowed to put coffee out on the counters for their customers because of the exclusive right. Williams asked if there was anything in the federal rules which required the word "exclusive." Bannock added, eliminating the term "exclusive right" from the document would solve all of his problems with the process. Williams noted the restaurant has never been a money -making proposition and council has said they want food service available to the general public. If they want to change the policy, it could cause a small food catering service to be profitable. Swarner noted there was a problem with the current operation because food is not available to the general public. She added, she had been at the airport on a Sunday night and heard more than one person say they were hungry and wanted to get something to eat. There was no place to get something to eat except the vending machine. • Swarner added, she realized the airport was not a place where people sat a lot, but because planes were late, there were a lot of people in the airport that evening. She added, she thought 4here needgd to be some creativity. Bookey stated there has never been a profitable situation there. He stated he was not in favor of eliminating the word "exclusive" because he believed only one operator could survive in the airport. If it goes to an open program, he was not against not having a full -service restaurant in the airport. He suggested -it could be a hot dog/espresso stand, as long as there was some service there. He added, he believed the general public needed to look at the RFP and ask what they could do in the airport to make it successful. Measles stated he agreed with Bookey, but didn't think anything in the lease that would bind the lessee to a full -menu food service. That would be up to the bidder. He also agreed with Swarner, because he too didn't know what the answer was. He added, he knows traffic goes through the airport facility, but doesn,'t know how the present lessee could make a profit with the hours he is in operation. He also had been in the airport and wanted to get something to eat and could not because the restaurant was closed. He also observed others wanting to go into the restaurant and couldn't. He suggested adjusting the Open hours which would not increase overhead, but still have the • facility open to some extent every day. He added, he thought that could be negotiated with the successful bidder. • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE 20 Williams suggested that, even though the city put a lot of money into the design and equipping the restaurant, a smaller facility in a different area of the airport, selling coffee, papers, hot dogs, etc. may work better. However, in doing that, something would have to be done with the restaurant space, as well as putting to another water/sewer line. Bannock stated council all agree that what is now operating is not in the city's best interest. He suggested that council, rather than making a policy decision of what to do and how to do it, they should remove "exclusive" would make the policy market oriented. The market should dictate what is in there, not council dictating the market. Measles stated he did not necessarily agree with Bannock. Taking out "exclusive" would take out the value. The drawback to placing a hot dog stand would be the garbage that would probably be left around the airport. Bannock stated he totally agreed removal of "exclusive" would devalue the lease, but there was no value there now. Bookey stated he wanted the next lessee to live with whatever the bid comes in at and did not want them to come later and request a reduction in the lease rate. MOTION$ Councilman Bannock MOVED to accept the draft RFP striking the word "exdlusive" from the top line. No second, motion died. The discussion continued in regard to advertising lunch specials, publishing fliers, etc. Swarner asked Acting Airport Manager Keith Holland if there had been any suggested changes in regard to management, etc. from potential bidders. Holland answered that one potential bidder had mentioned changing a few things, but not structural changes. Williams suggested the car rental area could be renovated to house a coffee/paper stand. However, that would have to wait until a decision is made in regard to the car rental agency. Bannock also suggested requesting a minimum bid that was not anywhere near what the rent was now. He explained he believed by having a high minimum bid, it would force the operator to keep the doors open as much as possible in order to bring in more revenue to pay the rent and make a profit. Bannock suggested $2,500 as a minimum bid. Williams stated he believed that had. been done before and it would be an exercise in futility. • R1SNAI CITY COUNCIL MEETING MINUTES DSCEMBBR 18t 1996 PAGE 21 MOTION: Councilman Measles LOVED to approve the RFP as recommended by the Airport Commission and Councilman Bookey 8ECONDOD the motion. VOTE: Williams: Yes Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: No Smalley: Yes (with major concerns) MOTION PARSED. Williams noted the council always has the prerogative to turn down bids. . 8-12. Discussion - Work Session Scheduling Ross reviewed his memorandum to council which was included in the • packet. The memorandum suggested dates to hold a work session in regard to the city manager search and revenue projections for 19997. Ross also requested council to review the binder of city manager applicants, who did not meet the minimum requirements, by December 30 in case there were some council wanted to consider. Ross reported there were 66 applications received. Ross added, if council wanted to add some applicants back in, a letter would be sent to them requesting follow-up information. He was planning to meet with council in a February work session to evaluate the resumes and consider background check processes, etc. Council approved January 13, 1997 at 7:00 p.m. in the council chambers for a work session to discuss the city manager search and budget projections. Ross asked council if they understood that after December 30 those applications not added into the "minimum requirements met group" would be considered not qualified. Council answered yes. Williams asked council if they had any suggestions in regard to the upcoming budget for the Finance Director. Semmens stated he wanted the process to go smoothly and noted he hadreviewed the budget session notes from the past two years. He felt.council had some concerns with the format of the budget last year and asked if they had any suggestions for the new budget format. • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 181 1996 PAGE 22 Smalley stated he preferred the budget documents prior to last year's document and would prefer the old format. Bannock stated he appreciated the narrative that accompanied last year's budget. Swarner suggested some department categories be broken down more, i.e. parts for the shop, street repairs, etc. She would like more detail in that area. Semmens reported he would be forwarding the budget packet to department heads at the end of the week. He explained, in those department head budget documents there would be more detail included by the department heads, but those details do not always go forward into the final document. Semmens stated he understood council wanted to use the former budget format, with an expanded narrative and a moderate amount of detail. Councilman Measles noted the present city manager contract would expire prior to the next council meeting. MOTION: Councilman Measles MOVED that council extend the city manager present contract for six months or until 30 days after the hiring of a new city manager, whichever comes first. Councilwoman Swarner SECONDED the motion and requested UNANINOUS CONSENT. There were no objections. 80 ORDERED. Williams noted he thought it important there will be a 30-day transition for the new hire. Ross agreed it is important, depending on who is hired. He added, it would be an issue council would want to discuss with the new hire and reserve judgment until then. MOTION: Councilman Smalley the council of the immediate knowledg upon the finances council to meet al City Manager Ross j Director*Semmens a Bannock SECONDED t ORDERED. at e o MOVED to convene in an executive session of City of Kenai concerning matters, the of which would clearly have an adverse effect of the City of Kenai. Smalley requested ne first and then have Attorney Graves and oin them. Attorney Graves requested Finance as well. Smalley agreed. Councilman he motion. There were no objections. 80 KENAI CITY COUNCIL MEETING MINUTES • DECEMBER 18, 1996 PAGE 23 • • EXECUTIVE SESSION BEGAN: 914E P.M. BACR TO ORDER: 10:54 P.M* Councilman Measles resorted during the executive session council discussed issues and developments in regard to the Inlet Woods litigation and directed the city attorney on a strategy course for the future of that litigation. ON REPORTS I-10 Mayor a. Fish Board Letter of Request - Mayor Williams referred to a letter included in the packet from the Central Peninsula Advisory Commission requesting a letter be sent to the Board of Fish and request the next Board of Fisheries meeting be held in the Kenai/Soldotna axea. Council had no objections to the city sending a similar letter. b. Emergency EEO Center - Williams reported there had been some preliminary meetings in regard to moving the Borough EEO center into the new ARFF facility. A full report would be given at the January 15 meeting. v. MAPTB Facility - Williams reported he would be meeting with British Petroleum representatives regarding a contribution to the MAPTS training facility. d. Natioual League of Cities - Williams gave a short report on the National League of Cities Conference which he had recently attended in San Antonio. Much of the actions taken were to rewrite the policies of the NLC as a result of directions taken by the federal government. Major concerns of the conference were cut backs in each area the federal government is involved, welfare reform, Section 8 housing, etc. I-2. City Manager a. PAR Antenna Farm - Ross reported he had been in contact with representatives from FAA who informed him funds were found in their budget to move the antenna farm. The farm should be moved in the spring. b. City Manager search - Ross reported 66 applications were received. The application period was now closed. Of the 66 KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1.996 PAGE 24 applications, 35 were on thequalified list. 25 were Alaska applicants, many of whom were not on the qualified list. a. Public Orks Department - Ross reported some organizational and physical changes -were being made in the Public Works Department. Their conference room would be made into an office for the city engineer. One of the biggest changes would be moving Animal.Control.to the Police Department because it is a safety department. Ross also reported there would be ordinances coming forward in January and February to clean up language in the code. d. Christmas avo Closing - Ross stated, unless there were objections from council, some city offices would be closing around 2:00 p.m. on Christmas Eve. There were no objections. =-3• Attornoy No report. I-4. Citye Clark Clerk Freas noted the invitations to the Holiday Party were in front of council and to RSVP to Kathy Lawyer or herself as well as a memorandum noting the packet and meeting dates for January. =-5. Finsnae Director Finance Director .-Semmens-reported he-attended--a-finance committee meeting of the Borough Assembly at which was discussed changing the way personal -property is taxed.- They -are proposing a $50,000 exemption to personal property tax (first $50,000) and the revenue for the Borough would be made up by increasing the tax on motor vehicles. The ordinance was postponed to February 3. .Semmens encouraged council to keep watch on this ordinance as it was his understanding there were a number of proposals being considered from changing the sales tax to changing the whole program. =-6• Public Works.Director a. =nlet Roods Btr"t Lights — Public Works Director Kornelis reported the.street:lights in inlet Woods were installed. However,:there were only two of the seven that worked. Some lines were broken, which,have since been repaired. Now five were working.. They believe.the other two were shot out and is the cause of the problem. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 18, 1996 PAGE 25 Williams requested DOT be notified of the problems with the lights at the corner of Main and Spur. b. Additional Street Lights - Kornelis reported all the new street lights had been installed. The lights are normally placed on wooden poles. The people on Kiana Street were upset with the wooden poles and wanted a metal pole. They would like to pay the difference between the wooden and metal pole. Kornelis stated $2,200 was allocated for that location. Kornelis stated he discussed the matter with the city manager. The installation of the light was stopped as many residents called. Kornelis stated he would discuss the matter with council. The residents are to get together and come back to hint with a proposal. Kornelis was asked what the difference would be. He did not know and it was noted, the residents don't know that either. Bookey stated he believed the difference would be extensive and the residents may change their minds. o. NSA street Light Agreement - Kornelis reported he met with HEA in regard to the street light agreement. They changed • the method of billing on the street lights because the city had been being billed per light for a meter reading. Instead of a $2.00 meter charge, plus $25.00 per pole, they changed it to a cost per pole and one meter for a number of poles. That was done during the summer, but the billing method had not been changed. HEA reimbursed the city for the difference. d. Christmas Decoration Lights - Kornelis reported he had received some questions in regard to the lights. He explained he talked with Air Tech and found the vendor sent the wrong transformers. They were much too small. New transformers were ordered and should be replaced in the next few days. These transformers would be installed on the outside of the pole. e. Project Status Report - Kornelis noted Information No. 17 was the report requested by the Mayor. Kornelis added as updates: Dunes project: 68 concrete piles had been moved to a storage area at the bottom of South Spruce. The road will -be graded and setting of the piles would begin the next day. Fish & Game representatives would be there to watch the process.. Welihouse Projects Kornelis reported tests were being run during the week. There had been some color, odor and turbidity initially, but has cleared up quite a bit. They believe that 40 when the sodium hydrochloride is added, the odor should clear up more. There were some problems with the computer and electrical controls, but they were being worked out. There was a problem • RBNAI CITY COUNCIL MBETIN6 MINUTES DSCffisBER 18, 1996 PAGE 26 with the generator, however the repairman would be checking it. during the week. They plan to have the wellhouse fully operational and in the system before the end of the.month. Bookey thanked Kornelis for the project report as it would keep council up to date. Ross stated the report would be received each month for the second meeting. Moore. asked Kornelis if he was not sure there. would not be clean, non -odorous water from -the well. Kornelis stated he couldn"t say there wouldn,'t be any smell, however, it was getting less as the well is developed. The new well is still much better than Wellhouse No. 2. 1-7. Airport Manager No report. ����, �IBCi�B8I0li • J-10 Citisons Bob Peters - Stated he had heard several dates for when the new welihouse would be on line. He asked if -the water would flow by the end of the year. Answer was yes. Peters wished all a happy holiday season. J-zcouncil aookey_�-_Reported he would be out of town from December 26 through January 6, although he would be attending the January 8 council meeting. Bookey also stated his concern of the amount of careless drivers in the area who don"t seem to care: about stop signs, etc. Bookey added, he had noticed there was a lack of patrol cars on the road: Police Chief Morris explained they were short on manpower which has reduced the amount.of time for road patrol. Morris added, an ordinance had been introduced at this meeting which to appropriate grant funds for overtime, eta. which will help the situation. Mmrner - Thanked the seniors for .the poinsettia and wished all happy holidays.. Noore - Also thanked the seniors for the poinsettia. Moore asked if the person who was to speak at Persons Scheduled to be • KENAI CITY COUNCIL MRETING MINUTES DECEMBER 18, 1996 PAGE 27 Heard at the last meeting had come to the meeting. Freas reported the gentleman was not at the meeting. She added, he did not provide a telephone number in order to call him. Moore asked if a letter was written to Senator -elect Ward in regard to the Forest Drive upgrade. Ross explained, after meeting with Hodgins, he discussed with Mayor Williams, how the letter would be written. Because it is hard to communicate the history of Forest Drive, he would prefer discussing the matter with Ward in person. Ross added, he did discuss the matter fully with Senator Torgerson along with other issues because Senator Ward had not been available. Williams noted he had been to lunch with Ross which was work related and Ross bought his own lunch. Williams stated he did not think council expected to have Ross buy meals on official business. Council agreed Ross should be reimbursed from the city for meals eaten while conducting official business of the city. Measles - Reported he would be out of town from December 2.3 through the night of January 7. He would be attendance for the January 8 meeting. Bannock - Asked if the illegal use of snow machines on the bike paths (along the Spur) had been minimized. Chief Morris explained, officers had made contact with some. Bannock stated he was concerned the law recently passed by council would not be enforceable. Bannock added, he believed the bike paths area was an area of most concern for council. He added, he was concerned - the law would have no practical effect. Smalley - Thanked the seniors for the poinsettia and noted the Mayor had participated in a Christmas program at Sears Elementary School the night before. He welcomed Mr. Semmens and wished all happy holidays. Smalley added, he believed the city streets were in great shape and looked great with the lights and banners. Smalley also reported he would be out of town from December 23 through January 2. The meeting adjourned at approximately 11:32 p.m. Minu s tran!q;pibecLand submitted by: Caro L. Frea , ty Clerk