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HomeMy WebLinkAbout1995-06-21 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING JUNE 21, 1995 7:00 P.M. KENAI CITY COUNCIL CHAMBERS A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENT (10 Minutes) 1. Stan Steadman, EDD - Offer to Sell/Grant ARCO's Kenai Warehouse. C. PUBLIC HEARINGS 1. Resolution No. 95-37 - Expressing the City's Intent, Subject to Appropriation of Money, to Contribute $100,000 to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. 2. Resolution No. 95-34 - Transferring $3,000 in the General Fund for Parks Management Software. 3. Resolution No. 95-35 - Transferring $6,200 in the Congregate Housing Fund for Repair and Maintenance, and Repair and Maintenance Supplies. 4. Resolution No. 95-36 - Awarding a Contract for a Project Entitled Kenai Dock Float Access Ramp and Float Reconstruction at the Kenai Municipal Dock to for the Total Amount of $ 5. Ordinance No. 1652-95 - Amending Kenai Municipal Code, Title 6, Entitled "Elections." D. COMMISSION/COMMITTEE REPORTS 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 E. MINUTES 1. *Regular Meeting of June 7, 1995. F. CORRESPONDENCE G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1654-95 - Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund as a Result of a Donation from ARCO. 4. Approval - Lease application by Craig R. Lofstedt d/b/a Kenai Air Alaska, Inc.; Lot 3, Block 2, General Aviation Apron. 5. Approval - Cancellation of Coast Guard Lease, DGPS Site and Discussion of replacement Site for Coast Guard. 6. Discussion - Set date for Board of Adjustment hearing on appeal of DeWayne Benton regarding denial of rezoning permit on Lots 3 and 4, Block 8 Shaginoff Subdivision. I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney a. Robson Bankruptcy 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager 1. Citizens (five minutes) 2. Council KENAI CITY COUNCIL - REGULAR MEETING JUNE 21, 1995 7:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS, PRESIDING ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:02 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Bannock, Smalley, Williams, Bookey, Swarner, Monfor and Measles. A-5. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD TO: B-1, Persons Scheduled to be Heard - EDD presentation/additional handout information. REMOVE: C-4, Resolution No. 95-36 (Bid Came in over the budget. A new resolution will be brought forward in July to appropriate new funds.) ADD TO: H-5. Coast Guard Lease - Additional handout information. ADD: H-7, Discussion - 1996 AML Dues ADD: Information Item No. 12 - 6/15/95 letter from The Continuum Corporation regarding Kenai Assisted Living land lease. MOTION: Councilman Smalley MOVED for approval of the agenda as amended. There were no objections. SO ORDERED. A-6. CONSENT AGENDA Mayor Williams reported he had no changes for the consent agenda and it would stand as presented. There were no objections from Council. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 2 ITEM Be SCHEDULED PUBLIC COMMENT B-1. Stan Steadman, EDD - Offer to Sell/Grant ARCO's Kenai Warehouse. Stan Steadman, Executive Director of the Economic Development District (EDD) spoke to Council in regard to Resolution No. 95- 37. Steadman noted Bill Root, Tim Navarre and Jim Elson were in the audience and available for comments as well. Steadman stated questions were raised since the Council's last meeting whether the City could purchase the building and lease it back to the EDD. The purchase price of the ARCO building has been set at $462,000, which includes an ARCO donation of a portion of the appraised value of the facility ($308,000). Steadman explained there is a difficulty in the City's purchasing the building as it is not a 501(3)(c) (IRS non-profit status). The price for the City would probably be the full appraised value of the building. The EDD intends to get a bridge loan, after receiving support of the City and Borough, to be paid off on a 15-year term. In the meantime, they would get a non -interest loan from the federal government. For cash flow for the EDD, it would be advantageous for EDD to get the no -interest loan. They are working with the EDA. They would like a building with 20,000 sf and this building has 12,000 sf. They could pursue a grant with the 12,000 sf for more space without getting additional matches from other sources. EDD believes this will be a very good year for them in terms of upcoming and continued projects. Last year they were hoping to find larger office space in order to add staff. However, they are concerned they will not be as efficient and effective if staff is not added. This proposed new facility would allow better use. Their owning the building would expand the tax base and the program to be housed in the building would contribute to the community through jobs and progress to the area. Councilman Bookey asked Finance Director Brown if the City would not be able to purchase the building and still allow ARCO to make their donation. Brown answered the City is not a 501(3)(C). Graves added he and Brown discussed the matter and believe ARCO KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 3 could make the donation and write it off, even though the City is not a 501(3)(C). Brown added, people do make donations to government. Bookey stated he was not comfortable with Steadman's comments about a 501(3)(C). Steadman stated he would stand corrected. He added, he was told by ARCO that they would have to be a 501(3)(C) to receive the donation. Mayor Williams requested Assemblyman Navarre to review the actions of the Borough Assembly in regard to their support of the purchase of the building by EDD. Navarre stated the topic was discussed at their meeting of June 20. The Assembly had only about ten minutes in which to discuss the matter after receiving public testimony. The Assembly voted on the issue and it passed by majority vote. However, there was some confusion as to what they voted on. It was explained to him that the Assembly would vote on the matter again at their next meeting. Navarre added he did not expect a change in the vote. If there is any objection, it would be whether they are creating a grant for the EDD. The Assembly does believe in the project. ITEM C: PUBLIC HEARINGS C-1. Resolution No. 95-37 - Expressing the City's Intent, Subject to Appropriation of Money, to Contribute $100,000 to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. MOTION: Councilman Measles MOVED for adoption of Resolution No. 95-37 and Councilwoman Monfor SECONDED the motion. Mayor Williams opened the floor for public comment. Barbara Waters - 311 Kulila, Kenai, AK. Ms. Waters stated the Council's decision on the resolution will affect her as a Borough taxpayer and City of Kenai taxpayer. Waters added she has some concerns. She did not feel certain property taxes would be paid on the property as the EDD would not have to pay them as a non- profit organization and the City would not as a governmental agency. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 4 Waters reminded Council she came before them a few months ago in regard to the City's possible development of a park in her neighborhood. It was suggested that it be a volunteer effort due to cost involved. The EDD's request is for $100,000. Waters requested that, if the Council's vote is contingent on the Assembly's decision on the matter, Council postpone their action. Waters added, her concern is the property taxes would go down because the valuation (of the property) would go down. However, Mr. Steadman stated improvements will be made to the building, which would increase the value. Waters stated she does not like taking the property off the tax roles and putting it into government hands. There are holes to get out of paying taxes. Waters again requested Council postpone their action until after the Borough takes action on July 11. Mayor Williams reviewed the resolution with Council. Williams noted the resolution "expresses Council's intention." The matter would return to Council prior to distributing any funds. Williams added he has had some discussions in regard to the City purchasing the building. One concern is the no -interest loan the EDD may be able to obtain with EDD purchasing the building. Williams added he supports the efforts of the EDD program. The program has been good for the community and has fostered new businesses. Purchase of the building will keep the EDD in the City of Kenai, however the EDD program belongs to the Peninsula. Councilman Measles stated he would like to pursue the City purchasing the building, along with the ARCO donation concept. The City is not locked into the 6% fair market value on leases. The City has other leases which are at a lower rate. The building would be taken off the tax roles if the owner is EDD or the City. Bookey agreed with Measles. The City's resolution is contingent on what the Borough does and at this time, the Borough has not acted. fL1i11b to) �nI ili#3.14W Councilman Bookey MOVED to table Resolution No. 95-37 and Councilman Smalley SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 5 VOTE ON THE MOTION TO TABLE: Bannock: No Smalley: Yes Bookey: Yes Swarner: Yes Measles: No MOTION PASSED. RESOLUTION NO. 95-37 WAS TABLED. Williams: No Monfor: Yes Williams suggested to EDD they discuss the matter with the City Manager and watch the intent of the Borough at their July 11 meeting. Steadman stated Council may want staff to review the $1 million grant they have submitted. Williams stated the City would not apply for the $1 million grant. It is not known if the City could offer the building for the grant. Smalley stated he assumed the resolution would come before Council again on July 19 after the Borough Assembly has considered their resolution at their meeting of July 11. Measles asked if EDD could use the property for a matching grant if they have signed a 20-year lease. Steadman stated he was not sure. He would have to see how it would affect the grant application. Monfor noted the Citv has not always been a part of the EDD's plan. The EDD would be continuing their efforts if the City would not be involved. Steadman stated they had been pursuing a different building at approximately the same cost. They are more concerned about their cash flow because of the smaller building. They have been told by bankers they are willing to deal with this if the City's or Borough's donations come through for them. Steadman continued, ARCO has challenged them to come up with $50,000 earnest money by July 1. They want to complete the deal by September as they want to be out of the building by the end of September. Williams noted the resolution had been tabled and suggested EDD discuss the matter with Administration and explore the Council's suggestions of the City purchasing the property. The City Council will consider a resolution on July 19, either to purchase the property with the donation of ARCO or with the intention for the City to contribute $100,000, based on the Borough's action on July 11. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 6 C-2. Resolution No. 95-34 - Transferring $3,000 in the General Fund for Parks Management Software. MOTION: Councilman Bannock MOVED to approve Resolution No. 95-34 and Councilman Smalley SECONDED the motion. There were no public or council comments. VOTE: Councilman Measles requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-3. Resolution No. 95-35 - Transferring $6,200 in the Congregate Housing Fund for Repair and Maintenance, and Repair and Maintenance Supplies. MOTION: Councilwoman Swarner MOVED for adoption of Resolution No. 95-35 and Councilman Smalley SECONDED the motion. There were no public or council comments. VOTE: Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-4. Resolution No. 95-36 - Awarding a Contract for a Project Entitled Kenai Dock Float Access Ramp and Float Reconstruction at the Kenai Municipal Dock to for the Total Amount of $ Removed from agenda. C-5. Ordinance No. 1652-95 - Amending Kenai Municipal Code, Title 6, Entitled "Elections." MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1652-95 and Councilman Bookey SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 7 There were no public or council comments. VOTE: Bannock: Yes Smalley: Yes Bookey: Yes Swarner: Yes Measles: Yes MOTION PASSED UNANIMOUSLY. Williams: Yes Monfor: Yes Mayor Williams requested Item H-5, Discussion/Coast Guard Lease be heard at this time. There were no objections. H-5. Approval - Cancellation of Coast Guard Lease, DGPS Site and Discussion of replacement Site for Coast Guard. Acting City Manager Howard stated the City entered into a lease with the Coast Guard on May 1. Prior to approving the lease, she contacted FAA and they stated they had no problem with the lease. Council approved the lease. Since that time, the Coast Guard was contacted by another FAA office and were told there was a problem with the site selected. The Coast Guard would like to cancel the May 1 lease. The Coast Guard has reviewed other sites available in the City as well as out of the City. The out -of -the -city sites may affect the accuracy of the tracking facility, but would not be a big problem. Howard introduced Lt. Lou Frey. Lt. Frey - Frey gave an abbreviated definition of the system and added that accuracy of the system suffers as the site moves away from the center. Frey also stated the problem with the previous site was found by another FAA group. The site was too close to the runway of the airport. Frey reviewed sites within the City, designated as Sites #1, #2, #3 and #4 and indicated on a drawing distributed to Council. These sites were located along Willow Street and Marathon Road. A lengthy discussion followed in which all the sites' advantages or disadvantages were reviewed. Problems were found with the location of the system on those sites. Williams asked if they had looked at City property along Redoubt Avenue. Lt. Frey answered there were two sites in that area of which they would be interested. One site, foreclosed property KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 8 along Redoubt Avenue (beside Parson's Homestead No. 3) and the other site, close to the Kenai Spur Highway (beside the Ballfield Subdivision and overlapping onto Evergreen Subdivision lots). Howard explained assessments and taxes are owed on the foreclosed property. Sale could not take place for ten years. Williams added, the City could arrange to sell or lease property in that area. Williams suggested the City could lease the property for five years and some legal manipulation could be made in order to sell the property after five years. Lt. Savatgy noted there is a problem for the federal government to pay taxes to the City. If the system is to be placed this year, there would not be time to go through the leasing/sale negotiations. Their legal staff would have to review the question of whether they would be paying taxes. Acting City Manager Howard informed Council the site by the Ballfield Subdivision and overlapping onto Evergreen Subdivision included two zones, Rural Residential and Suburban Residential. A zone change would be needed. Mayor Williams, after conferring with Attorney Graves and Acting Public Works Director La Shot, stated that he would declare the Coast Guard DGPS Site an essential service, thereby needing no zone change for placement of the site between the Ballfield and Evergreen Subdivisions. Howard stated, then a lease could be ready by July 5. Howard asked Frey if a survey would be done. Frey answered yes, at their cost. Frey was asked if the site could be moved to the left, moving it out of the Evergreen Subdivision lots and.into the Ballfield Subdivision. Frey answered yes. Attorney Graves was asked if the same lease could be used, just changing the property description. Graves advised regular actions should be taken and a new lease required. Williams, after conferring with Attorney Graves, stated the City could give a Special Use Permit to the Coast Guard in order for them to occupy the ground before the lease takes effect. This would allow the Coast Guard to begin placement of the site. Williams added, the lease could be ready for review/approval of Council for their meeting of July 5. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 9 Councilman Bookey requested that a green belt be left of natural trees between the site and the Evergreen lots of at least 30 to 50 feet. Williams stated Administration could work that out with the Coast Guard. Howard asked if the Coast Guard could complete and submit a lease application tomorrow for this property in order that the application go before the Planning & Zoning Commission at their meeting of June 28. Frey stated that could be done. Mr. Savatgy added, the Coast Guard would hold an environmental assessment hearing for public input. Adding a buffer zone will help with alleviating public concerns. Mr. Savatgy asked the cost for the lease. Councilman Smalley stated he had no problem keeping the lease amount the same as the prior lease -- at no cost, due to the services they are providing. Williams added the details of the lease would be worked out by Administration. MOTION: Councilman Bookey MOVED to cancel the present lease, effective immediately. Councilwoman Swarner SECONDED the motion. Councilman Measles asked if there was any reason why the Coast Guard was asking for the present lease to be canceled, effective September 15. Savatgy answered no, they were only exercising their 90-day revocation clause included in the lease. VOTE: There were no objections. SO ORDERED. BREAK TAKEN: 8:25 P.M. BACK TO ORDER: 8:37 P.M. Mayor Williams requested Item I-5 be brought forward and discussed at this time. There were no objections from Council. I-5. Finance Director/Administrative Report - Finance Director Brown referred to his memorandum included in the packet which listed the different insurance packages and costs which the Brown Agency reviewed and analyzed for the City of Kenai. Brown stated, after reviewing the proposals with representatives of the Brown Agency, it was staff's feeling that better policies, KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 10 companies and coverages have been represented. There will be a savings of $50,000 in this year's insurance costs, and $100,000 in next year's budget. Brown added, representatives from the Brown Agency were present in the audience if Council had questions for them. Councilman Smalley stated he had no questions and assumed what was represented in the memorandum would be done. Williams thanked the Brown Agency and staff for their efforts. Councilwoman Monfor thanked the Brown Agency and staff on behalf of the citizens of Kenai. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reported the pies that were placed in front of the Council were from the Senior Center. Please return the pie tins to the Center. Swarner reported a meeting was held on Monday. The Center was inspected by the State Council on Aging Services and received a perfect score. Also reported, the OSHA inspector found the large mixer at the Center did not have a guard on it and needed to be removed. This particular model, when purchased, was not equipped with a guard. The Senior Connection has decided to purchase a new mixer (with a guard) which will cost $2,500. There will be no cost to the City for replacing the mixer. D-2. Airport Commission Councilman Measles reported no meeting was held because there would have been no quorum. The next scheduled meeting is July 15. D-3. Harbor Commission Councilman Bookey reported no meeting was held because there would have been no quorum. D-4. Library Commission Councilwoman Monfor referred to a memorandum included in the packet which requested Council's permission for the Commission to KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 11 not hold a July meeting and reschedule their August meeting from August 1 to August 15. Council had no objections. Monfor also reported the Friends of the Library held their annual book sale and earned approximately $1,700 in sales. Acting Librarian Linda McNair reported Librarian DeForest was in Chicago at a library conference. McNair also reported the summer reading program was underway. The Library has ongoing special programs on Wednesdays (4), Thursday mornings and evenings; the summer Recreation program uses the library and two private day cares use the library as well. The library has lots of summer visitors and has issued lots of temporary library cards. McNair added, they have requests for information of the different City departments. If the departments have information they want set out, please bring it to them and they will make it available to their patrons. D-S. Parks & Recreation Commission Councilman Bannock reported there was no meeting since their last month's meeting. a. Summer Recreation Program - Parks & Recreation Director reported the summer recreation program was underway. At last report, they had 126 participants registered. They expect more by the end of the summer. b. Kenai Parks & Recreation/ARCO Summer Games - July 8 has been set for the Kenai Parks & Recreation Summer Games. An ordinance has been introduced to appropriate monies donated by ARCO for the program. That donation will be used for purchase of medals, hot dogs and drinks for the participants. ARCO has indicated that if the program is successful this year, they will consider continuing the program in the future. There may be arrangements for winners of events in Kenai to travel to Anchorage and compete with Anchorage participants. c. Recreation Center Instructor/Trainer RFP - McGillivray also reported the RFP for an instructor/trainer at the Recreation Center is being written. There are some problems with the insurance requirements. It will be difficult to find someone to teach classes with the requirements for insurance. If Council concurs, he could arrange for the instructor/trainer on a rental basis instead of a contract. Insurance requirements are $500,000 KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 12 for liability, $500,000 comprehensive and $500,000 for errors and omissions. McGillivray stated he preferred renting the facility and the renter do the program. Bookey asked if the RFP has been advertised and any interest shown? McGillivray answered not yet. Bookey stated he would like the RFP to go out first. Smalley agreed and added there may not be a problem. Williams stated McGillivray should go ahead with the RFP. d. Airport Sign - McGillivray also explained why the Airport sign had not been planted as yet. There were not enough of the flowers grown and they are now needing to purchase additional plants for the sign. The sign should be planted in the next few days. With the City's greenhouse, this should not be a problem for next year. D-6. Planning & Zoning Commission Councilman Smalley explained he was out-of-town and did not attend the meeting. Smalley reviewed the minutes with Council. The minutes were included in the packet. D-7. Miscellaneous Commissions and Committees a. Beautification Committee - Councilwoman Swarner reported the unapproved minutes were included in the packet. The volunteers are busy planting and weeding the flower beds. The Committee needs additional grass clippings. Councilwoman Monfor remarked she is still hearing compliments from persons who attended the Kenai River celebration at Memorial Park in early June. The compliments included how good the park looked, the flowers, etc., and the location of the festivities at the park. The representatives of the Kenai River group want to use the park again next year. The festivities brought a lot of people into the community and they cleaned the area up after it was over. ITEM E° MINUTES Regular Meeting of June 7, 1995. Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 13 ITEM F` None. ITEM G: OLD BUSINESS None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 Iv(*10*01_ZF Councilman Smalley MOVED to approve the purchase orders exceedina $2,500 and Councilman Measles SECONDED the motion. Councilman Bannock asked the hours of the guard system at the airport. Airport Manager Ernst answered they are there between 1:00 a.m. and 4:00 a.m. Councilman Bookey referred to the purchase order for heat exchangers and asked if they would be using natural water or glycol. Building Official Springer answered glycol is very corrosive. The city's systems are checked monthly. The maintenance person recently attended a seminar with Great Western Chemical. The information received at the seminar confirmed what they already felt and that was the glycol is more a detriment to the systems than advantageous. Most of the City's buildings are water systems. The only fully glycol systems are at the congregate housing and the Visitors Center. They would like to eliminate it from those buildings. Bookey stated he had some concerns and hoped Administration was going in the right direction in this matter. Springer added the KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 14 outside slab at the Visitors Center will continue with glycol. A heat exchanger can be added to separate the outside slab system from the building system. VOTE: There were no objections to the approval of the purchase orders over $2,500. H-3. Ordinance No. 1654-95 - Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund as a Result of a Donation from ARCO. Introduced by consent agenda. H-4. Approval - Lease application by Craig R. Lofstedt d/b/a Kenai Air Alaska, Inc.; Lot 3, Block 2, General Aviation Apron. MOTION: Councilman Smalley MOVED to approve the lease application Craig R. Lofstedt d/b/a Kenai Air Alaska, Inc.; Lot 3, Block 2, General Aviation Apron. Councilwoman Swarner SECONDED the motion. There were no objections or concerns from Acting City Manager Howard or Attorney Graves. VOTE: There were no objections. SO ORDERED. H-5. Approval - Cancellation of Coast Guard Lease, DGPS Site and Discussion of replacement Site for Coast Guard. Discussed earlier in the meeting. H-6. Discussion - Set date for Board of Adjustment hearing on appeal of DeWayne Benton regarding denial of rezoning permit on Lots 3 and 4, Block 8 Shaginoff Subdivision. The Board of Adjustment hearing was set for July 5, 1995 at 7:00 p.m., immediately prior to the council meeting. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 15 H-7. Discussion - AML Dues Mayor Williams noted he requested this information be brought before Council for their review. Williams referred to a letter from Assembly President Scalzi informing the City that the Assembly did not include monies in their budget to pay a portion of the Peninsula municipalities' AML dues. The decrease of funds in the Borough budget was based on the AML Board of Directors restructuring the dues format to a "self -pay" program. This means the cities within the borough would no longer pay only a service fee, but would be paying "full" dues based on population. The City of Kenai's AML dues will go from $1,379 to $6,566. Williams asked for input from Council. Councilman Bannock suggested telling them, "thanks, but no thanks." Bookey stated he is an AML Board of Director and has a problem with the City having to pay the $6,566, but also, the City needs to participate to reap the benefits of the AML. Williams agreed, adding the City has been involved with AML for many years. AML has been active for approximately 50 years. Councilwoman Swarner noted the AML received a letter from the Department of Revenue asking them to review the gaming regulations. AML has been involved in statewide matters as well as local matters. Swarner added she would prefer the $6,500 go to AML than to the Peninsula Caucus. Williams suggested the attendance of councilmembers to the meeting in Kotzebue in July and the meeting in Barrow in August and discuss the issue during those meetings. Also, observe what other Peninsula municipalities do and review the matter again in three months. Councilman Measles stated he had hoped AML would restructure. The dues is a small part of what the City spends in attending meetings, etc. He has a problem with that. Also, the one vote for each municipality regardless of the population is a problem. As the City grows, the City gets less impact from the AML for the cost because of the one vote. Measles suggested the new Peninsula group and Caucus should merge and deal with only Peninsula concerns and keep everything on the Peninsula. If something of this sort were done, Measles stated he would be in favor of dropping out of AML. Councilwoman Swarner reminded Council the AML Legislative Committee would be reviewing the policy statement in July. If KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 16 Council has any suggestions for changes, additions, please forward them to her prior to the meeting. Mayor Williams referred to the letter regarding gaming permits which was included in the packet as Information Item No. 3. Williams asked Council if they wanted the Clerk to continue with the permits as they previously directed. Council concurrence was yes, continue with the letters, etc. as directed previously. ITEM Is ADMINISTRATION REPORTS I-1. Mayor a. Visit with Governor Knowles - Williams reported he visited with Governor Knowles on Friday during a reception. Approximately 80 people attended. The Governor got to know some of the local people and the Kenai/Soldotna area better. b. Commissioner Perkins/DOT - Williams reported he met with the new commissioner and discussed highway problems and maintenance of the lesser roads. There is a low amount of money for maintenance and an increasing amount of roads. The Commissioner stated he will be reviewing construction of roads. No new roads will be developed without a maximum amount of need. The road to Whittier will be developed. There is no federal money for maintenance. The commissioner also indicated he supported the dedication of a gas tax for the road maintenance. The engineering work is being done on the upgrade of Forest Drive. C. Okha Relief Fund - Williams reported he is working with Mayor Gilman in putting together medical supplies to be flown directly to Okha. d. Family Physicians - Williams reported he will be welcoming the Family Physician conference to Kenai. e. Cannery Equipment - Williams reported he and others will be moving dismantled equipment to the City yards. a f. Fish Festival - Williams reported he attend the festival and enjoyed it very much. He also attended Nikiski Days. There many people visiting both festivities. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 17 I-2. City Manager Acting City Manager Howard reported that a couple meetings prior, Council requested the Daubenspeck property be cleaned up. Approximately six truckloads of junk was removed from the property, costing $500 in dump fees. During the clean-up, what seems to be an underground fuel tank was found. This is being further investigated. DEC has been notified and Howard has done a chain of title of the property. Howard added, Council will be kept up-to-date on the matter. I-3. Attorney a, Robson Bankruptcy - Attorney Graves requested permission to take the two lots in regard to the matter. Council had no objections. b. Bond Counsel - Graves reported he has discussed possible bond matters with Tom Klinkner, the City's bond counsel. In order to include bond questions in the October election, Klinkner will need a rough draft of bond requests by mid -July for mid -August Council action. Graves stated he would have a rough draft available for Council review at their July 19 meeting. Graves stated it was his understanding Council wanted to bond for the library expansion and development of an ice hockey rink. They would be two different issues. Council agreed. Clerk Freas was requested to send petition requirements to the president of the hockey association. Council requested input from the citizens as to the interest for the development of an ice hockey rink. C. Open Toilet - Graves reported he spoke with Suzanne Fisler regarding the toilet seen on the KSKA televised video. Fisler stated the toilet was there. She and other State Parks officials were not happy with Fish & Game.for having it there. She is starting to cite people not using the Parks restroom facilities along the River. Williams suggested Fish & Game be encouraged to clean up that area. Measles stated they should be told to clean it up. Smalley suggested a letter be sent. Council consensus was for administration was requested to get a copy of the tape from KSKA. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 18 d. Kenai River Working Group - Graves reported the Group will be meeting July 19, 20, and 21. He welcomed Council's input. He has communicated to the Group that the City is not willing to be included in an ordinance, but will participate in the meetings. I-4. City Clerk Clerk Freas reported she attended a seminar in Portland in regard to records management. It was very interesting and she has a lot of materials received at the seminar available for review in her office. Freas also reported that during her trip to Pennsylvania, she showed the City video to family and friends. All were impressed. One person, who has never visited the area, asked if the City cleaned everything up for the making of the video or was it always clean. A nice compliment for the City. I-5. Finance Director No additional report. Insurance discussion was held earlier in the meeting. 1-6. Public Works Director Acting Public Works Director La Shot reported the resolution removed from the agenda will be brought forward again in the new fiscal year. There was $47,000 available and the basic bid was under $54,000, plus another $19,400 as an alternate bid. The resolution will be brought forward for Council consideration at the July 5 meeting. La Shot also reported the new well bids will be brought for consideration at the July 5 meeting as well. Williams asked if the new well could be tied into the system by fall. La Shot stated it would be contingent on receiving the $1 million, but did not think there would be enough time. Perhaps it would be tied in by Spring. I-7. Airport Manager a. Enplanements - Airport Manager Ernst reported there were over 9,500 passenger enplanements. Well over last year's amounts. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 19 b. Master Plan - Dynatest has begun work on the update of the Master Plan. They have begun accumulating information such as the strength of the runway and compiling asphalt information, etc. C. CAP Taxiway - Ernst reported the new taxiway is almost completed. d. Fueling Service/Float Plane Basin - Ernst reported the fueling facility was still not on line. They are working with the bank to get a credit line set up. The fuel is ready to go. They are waiting for the program chip to activate the system. e. Airport Update - Ernst reported the carpeting work is almost completed. Work in the bathrooms, etc. will be completed soon. The automatic faucets will be placed next fiscal year. Councilman Smalley asked Ernst if he was happy with the seaming job on the new carpet. Ernst stated he was not, however he did not know if anything could be done about it. The design of the carpet was hard to line up (the tick marks). Ernst added, the contractor will be responsible for the carpeting for one year. He will be there to get any bubbles taken care of, etc. Councilman Bannock asked if runners could be placed in the offices at the airport so that there will be minimal wear and tear on the carpet there. Ernst stated he has already ordered some runners and they are on their way. The runners will go from door to door. Ernst was asked why the gift shop was not re -carpeted. Ernst answered he considered the area, like the restaurant and lounge, as the lessee's responsibility. Ernst added there is enough carpet to do that area if Council wants him to have it done. Councilwoman Swarner asked if there were informational signs explaining about the oil display. Ernst answered there is one on the display itself. Swarner stated she believed some signage is needed there to promote it. Swarner asked if the welcome signs on the doors were changed. Ernst stated yes. KENAI CITY COUNCIL MEETING MINUTES JUNE 21, 1995 PAGE 20 ITEM J: DISCUSSION Citizens Bob Peters - Reported he saw Councilwoman Swarner working in the gardens at Memorial Park. Peters added he appreciated her efforts. Swarner sets a good example for the community and the children. J-2. Council Bookey - Thanked the Senior Center for the pie. No report. Swarner - Suggested designated crosswalks be placed in Kenai. Acting Public Works Director La Shot reported he has developed a list for crosswalks. He will be getting prices for the painting. The costs will come from the next budget. Monfor - Thanked the Senior Center for the pie. No report. Measles - No report. Bannock - Thanked the Senior Center for the pie. Bannock referred to page 2 of the minutes of the Kenai Peninsula Coalition where they discussed removing the lid on sales tax. Bannock said he thought that would be a bad idea. Smalley - Thanked the Senior Center for the pie. Smalley asked La Shot to investigate camp trailers which are situated across from Chief Morris' house. He believes there are persons living in the trailers full time. Smalley reported he will miss the first P&Z meeting in July and requested his packet be sent to Councilman Bannock. Williams - Thanked the Senior Center for the pie. No report. ITEM K: ADJOURNMENT The meeting adjourned at approximately 9:55 p.m. Minutes transcribed and submitted by: Carol L. Fre s, City Clerk A€ PR0VEU 5y CO�UNCI'L DATE 0Y CmE K