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HomeMy WebLinkAbout1995-07-19 Council MinutesTO: Mayor and Councilmembers FROM: Carol L. Freas, City Clerk City of Kenai DATE: July 31, 1995 RE: JULY 19, 1995 COUNCIL MEETING MINUTES The vote on Ordinance No. 1655-95 was inadvertently omitted from the minutes. Attached is the revised discussion for Ordinance No. 1655-95 which includes the vote on the ordinance. cif cm t fir;; a all OWN KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 3 added, the two matters have nothing to do with each other. They are different funds. One cannot offset the other. More research needs to be done. Williams asked Haller if any provisions were made to connect him when the water and sewer were put in the area. Haller answered no. Kornelis stated he was not sure if the services lines were put in. Many times they were not placed if there was no paving put in. Kornelis continued, originally the ordinance required the property owner, regardless of whether he was hooked up or not, to pay. That ordinance was changed to require property owners to hook up and pay if the property is within 200 feet of water/sewer lines. Councilman Measles suggested Administration research the matter and bring it back to council for review. Williams added, they should make a determination of whether there are service stubs. Williams told Haller, they did not know if the payments could be manipulated. Perhaps payment could be delayed long enough to let him get in financial condition to pay it. Williams requested Administration to review the matter. Councilman Smalley requested Administration find out what the code required at the time as well. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1655-95 - Authorizing the Appropriation of $76,000 in the Boating Facility Enterprise Fund for a Dock Access Ramp. MOTION: Councilman Bookey MOVED for approval of Ordinance No. 1655-95 and Councilman Smalley SECONDED the motion. There were no public comments. Councilman Measles asked if they were reappropriating monies because they were not used in 1995 budget year and now are to be used in the 1996 budget year? Public Works Director Kornelis answered there was $60,000 in last year's budget. The bid came KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 4 in higher and the money lapsed (end of budget year). The resolution is to reappropriate the money, adding $15,000. Kornelis added, he plans to award the contract during this meeting and installation will be done after the fishing season has ended. The dock will be ready for use next year. Kornelis also reported the Harbor Commission discussed the matter and suggested the placement. They felt it was a safety issue. Persons using the dock will have better accessibility. The placement of the dock was listed on the Harbor Commission's goals and objectives list. VOTE: Williams: Yes Bookey: Yes Monfor: Yes Measles: Yes Smalley: Yes MOTION PASSED UNANIMOUSLY. Swarner: Absent Bannock: Yes C-2. Resolution No. 95-37 - The City Council Expresses Its Intention, 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. C-2a. Remove from table. MOTION: Councilman Smalley MOVED to remove Resolution No. 95-37 (C-2a) from the table and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. C-2b. Motion to substitute. MOTION: Councilman Smalley MOVED for the substitution of Resolution No. 95-37 (identified as C-2a) with Resolution No. 95-37 (identified as C-2b). Councilman Measles SECONDED the motion. AGENDA KENAI CITY COUNCIL - REGULAR MEETING JULY 19, 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. Leo Grasso, Vice Pres., The Continuum Corporation John Verdugo, CEO The Continuum Corporation Lynn Robbins, President, Robbins Retirement Communities - Assisted Living Complex Update. C. PUBLIC HEARINGS 1. Ordinance No. 1655-95 - Authorizing the Appropriation of $76,000 in the Boating Facility Enterprise Fund for a Dock Access Ramp. 2. Resolution No. 95-37 - The City Council Expresses Its Intention, 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. a. Remove from table. b. Motion to substitute. C. Consideration of substitute resolution. 3. Resolution No. 95-39 - Supporting the Efforts of Randy Chalawsky to Produce a Film Documenting the Cook Inlet Commercial Salmon Industry and Exploring the History of Kenai. -I- 4. Resolution No. 95-40 - Accepting a Grant from the State of Alaska, Department of Transportation and Public Facilities for the Airport Master Plan Project. 5. Resolution No. 95-41 - Awarding a Contract for a Project Entitled, "Kenai Dock Float Access Ramp and Float Reconstruction" at the Kenai Municipal Dock to Blazy Construction for the Total Amount of $73,330.00 Which Includes the Basic Bid and Additive Alternate No. 1. 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. *July 5, 1995 Board of Adjustment Hearing/Appeal of DeWayne J. Benton. 2. *Regular Meeting of July 5, 1995. 3. *Amendment to Regular Meeting of January 18, 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. 1656-95 - Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund for a Contribution to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. 4. *Ordinance No. 1657-95 - Amending KMC 14.20.220(c)(2) to Require that Candidates, Individuals, or Organizations Responsible for the Placing of Political Campaign Signs to be Responsible for Their Removal Within Two Weeks of the Date of the Relevant Election. -2- 5. *Ordinance No. 1658-95 - Authorizing the Appropriation of $4,334 in the Congregate Housing Facility Enterprise Fund for a Solarium and Storage Shed. 6. Approval - Consent to Assignments/From Richard I. Morgan to Shirley Morgan; and from Richard & Shirley Morgan to Morgan Family Limited Partnership (Kenai Municipal Golf Course and Recreation Area). 7. Approval - Inspection Services/Production Well No. 3 - Not -to -Exceed $7,600.00. 8. Discussion - Kenai River Beaches 9. Discussion - Proposed Bond Issues. a. Addition to Kenai Municipal Library. b. Construction of an Ice Hockey/Skating Rink Facility. 10. Discussion - Glacier Environmental/Proposal for On -Site Disposal of Fines. EXECUTIVE SESSION I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DISCUSSION K. 1. Citizens (five minutes) 2. Council -3- KENAI CITY COUNCIL - REGULAR MEETING JULY 19, 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 6:55 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: Williams, Bookey, Monfor, Measles, Bannock and Smalley. Absent was Swarner. A-5. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: B-2, Persons Scheduled to Heard - Carl Haller, Sewer/Water/Assessment Concerns. ADD TO: I-1, Mayor's Report a. 7/14/95 JJW memorandum regarding Kenai Peninsula Caucus. b. 7/14/95 DNR letter regarding appointments to Kenai River Special Management Area Advisory Board. C. 6/21/95 Kenai Peninsula Tourism Marketing Council, Inc. request for membership. ADD TO: I-2, City Manager's Report - Historic District Board Preservation Survey. MOTION: Councilman Smalley MOVED for approval of the agenda as amended and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-6. CONSENT AGENDA Mayor Williams reported he had no changes for the consent agenda. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 2 Councilman Smalley MOVED for approval of the consent agenda as presented. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENT B-1. Leo Grasso, Vice Pres., The Continuum Corporation John Verdugo, CEO The Continuum Corporation Lynn Robbins, President, Robbins Retirement Communities - Assisted Living Complex Update. Moved to after Public Hearings. B-2. Carl Haller - Sewer/Water/Assessment Concerns. Mr. Haller reported when the sewer/water was placed in his area, he was not hooked up, although he paid for the service for approximately ten years. His ex-wife was building a new dance studio and a hole was left for her to hook up. Building Office Hackney came to him one time regarding the removal of a trailer from his property. While there, Haller asked him where his water/sewer hook-up was. They found he was not hooked up, however he was paying the fees. Haller has discussed the matter with "the powers that be." He was told he could not be reimbursed for the payments he made for water/sewer he was not hooked up to. He is hoping those amounts could be traded for the paving assessments he owes as he is having trouble making those payments. Finance Director Brown explained he did not know much about the situation. He is aware of a dispute from many years ago. when that situation was brought to their attention, and Haller should not have been charged, they stopped charging. There has been correspondence. Haller has been unsuccessful in being reimbursed for back payments made. Brown referred to the ordinance mandating all within 200 feet of water/sewer to be hooked up. Now Haller has paving assessments also. Instead of being reimbursed for payments made, Haller would like to apply that money to his paving assessments. Brown KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 3 added, the two matters have nothing to do with each other. They are different funds. One cannot offset the other. More research needs to be done. Williams asked Haller if any provisions were made to connect him when the water and sewer were put in the area. Haller answered no. Kornelis stated he was not sure if the services lines were put in. Many times they were not placed if there was no paving put in. Kornelis continued, originally the ordinance required the property owner, regardless of whether he was hooked up or not, to pay. That ordinance was changed to require property owners to hook up and pay if the property is within 200 feet of water/sewer lines. Councilman Measles suggested Administration research the matter and bring it back to council for review. Williams added, they should make a determination of whether there are service stubs. Williams told Haller, they did not know if the payments could be manipulated. Perhaps payment could be delayed long enough to let him get in financial condition to pay it. Williams requested Administration to review the matter. Councilman Smalley requested Administration find out what the code required at the time as well. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1655-95 - Authorizing the Appropriation of $76,000 in the Boating Facility Enterprise Fund for a Dock Access Ramp. IV(00Ki) F Councilman Bookey MOVED for approval of Ordinance No. 1655-95 and Councilman Smalley SECONDED the motion. There were no public comments. Councilman Measles asked if they were reappropriating monies because they were not used in 1995 budget year and now are to be used in the 1996 budget year? Public Works Director Kornelis answered there was $60,000 in last year's budget. The bid came KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 4 in higher and the money lapsed (end of budget year). The resolution is to reappropriate the money, adding $15,000. Kornelis added, he plans to award the contract during this meeting and installation will be done after the fishing season has ended. The dock will be ready for use next year. Kornelis also reported the Harbor Commission discussed the matter and suggested the placement. They felt it was a safety issue. Persons using the dock will have better accessibility. The placement of the dock was listed on the Harbor Commission's goals and objectives list. VOTE: Williams: Yes Bookey: Yes Swarner: Absent Monfor: Yes Measles: Yes Bannock: Yes Smalley: Yes MOTION PASSED UNANIMOUSLY. C-2. Resolution No. 95-37 - The City Council Expresses Its Intention, 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. C-2a. Remove from table. MOTION: Councilman Smalley MOVED to remove Resolution No. 95-37 (C-2a) from the table and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. C-2b. Motion to substitute. MOTION: Councilman Smalley MOVED for the substitution of Resolution No. 95-37 (identified as C-2a) with Resolution No. 95-37 (identified as C-2b). Councilman Measles SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 5 C-2c. consideration of substitute resolution. Councilman Measles asked what the difference was between the two resolutions, other than the date. It was explained the second "whereas" was different, stating 1°... the Kenai Peninsula Borough Assembly, at their July 11, 1995 meeting, appropriated $100,000... Measles noted the paragraph still stated, "...pending approval by the assembly authorizing the Mayor..." Williams stated the Assembly had authorized the agreement to disperse the funds. Measles also noted the "Now, therefore" paragraph stated the exact same information as in C-2a. Smalley added it sounded that the Borough approved the money, but it is still pending. Williams stated he understood what Smalley and Measles were saying, that the resolution is pending approval by the Assembly, authorizing the mayor to execute the agreement. It would appear that the Borough Assembly appropriated the money at the previous meeting. Once they have appropriated it, did they need to approve authorization for the mayor to distribute the funds? Measles stated he thought it was the way it was rewritten because c-2a also said "Kenai Peninsula Borough has appropriated $100,000 pending approval by the Assembly." So, it's saying the exact same thing, except the date and "at their July 11, 1995 meeting" was typed in. Williams asked Assemblymember Tim Navarre (present in the audience) to speak to the matter as to the direction the Assembly took. Navarre reviewed the resolution and stated he was not sure he understood the question. However, Navarre added, the Assembly did pass a budget ordinance in which $100,000 was placed in the budget. A rider was attached to it which was contingent upon the Assembly's approval before the $100,000 could be spent. The $250,000 which they normally give to the EDD was not tied to that. When the ordinance was passed, the money could be dispersed as of July 1, 1995. The additional $100,000 was per Assembly approval, which did happen on July 11. Navarre added, as far as how the City has the whereas written, it is not the Borough's ordinance. In their documents there is no misunderstanding. The original ordinance document at budget time was the June 6 meeting, passed the budget by ordinance which included the $100,000 for the EDD building but it was contingent KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 6 upon a resolution coming back before the Assembly for approval because there was some question and some discussion as to payment in lieu of taxes and other concerns. All of those were either addressed or voiced and then the item did pass at the July 11 meeting with no stipulations to the $100,000. It is not in the City's regulations, but they have community exemption. Williams asked if that cleared up the questions for Council. Councilman Measles stated he understood, but the resolution required some amendment. MOTION: Councilman Measles MOVED to amend Resolution No. 95-37 in the second whereas, by deleting "pending approval by the assembly" and inserting "and," change "authorizing" to "authorized." The whereas would then read, Whereas, the Kenai Peninsula Borough Assembly, at their July 11, 1995 meeting appropriated $100,000 as a matching grant to the EDD for the purpose of acquiring the ARCO office complex in Kenai and authorized the mayor to execute an agreement and disburse funds. Councilman Smalley SECONDED the motion. There were no objections to the amendment. SO ORDERED. Mayor Williams asked if there was any public comment on the resolution. James A. Elson - 1530 Kittiwake, Kenai. Elson introduced himself as the chairman of the Economic Development District and a long- time resident of the City of Kenai. Elson first commended the Council and Administration (in recent years) for their excellent stewardship of the city. Elson requested the Council and Administration to look at the donation of the $100,000 (for the Business Innovation Center JBIC}) as an investment instead of a donation. They hope the BIC will have many years of service to the city. They expect it will produce clients which will diversify the tax base, continue to broaden the tax base and bring a return to the city. He added he did not know what return would come to the city as they don't KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 7 know for sure where those businesses will locate, but they feel the majority will locate within the Kenai market area. Elson added, the city, through its stewardship has maintained a beautiful city and a healthy reserve fund. He believes this project should not be considered in lieu of other projects. It shouldn't be placed in competition with other priorities of the city. He believes the project should stand on its own merits, i.e. as an investment to the city, bringing a return back to the city and benefit all the taxpayers of the city. Barbara Waters - Resides at 311 Kulila, Kenai. Waters called council's attention to the letter, included in the packet, written to Mayor Williams from Mr. Elson. Waters referred to the final paragraph which read, "Also, the Board (EDD) asks the City Council not to rule out creative alternatives should the EDD's current approach to purchase not prove successful." Waters stated she was concerned with that statement. She asked, if the EDD's purchase was not successful,,what would happen to the city's $100,000 donation? Would it go back into city coffers or would it become the donation they have asked not to look at it as? Is it an investment for a certain thing? If the purchase does not go through, what will the city council do about the $inn nnn donation_? -•- Williams answered, if the resolution passes as written, the resolution is for the acquisition of the warehouse and office complex. Should that project not take place and the purchase not be completed, the City of Kenai would expect the money to be returned to it. The authorization is strictly for the acquisition of the building. Tim Navarre - Reported that when the Assembly was discussing the matter, he spoke with Borough Finance Director Ross Kinney. Because the EDD is a non-areawide service, the monies for the building will come from non-areawide funds. Those funds are received through revenue sharing and fish tax. The monies are not from areawide tax monies. Also, the Assembly has had to defend the EDD during budget sessions, etc. and have appropriated $250,000 to them for the last five years. In all, approximately $1.2 million. He believes they have demonstrated that the EDD is an investment. He feels the city will receive an investment back from their work as well. The EDD has and will continue to help all the communities as well. Navarre added he hoped the city will become a partner with EDD. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 8 Stan Steadman - Steadman stated that when he last appeared before council in regard to the donation, he reported to council that he was going to Washington, D.C. to make a presentation as a finalist for the Youth Enterprise Development Project (a partnership with Boys & Girls Club and other organizations). They were selected as one of six national winners by the Ford Foundation Award. Steadman added he hoped the council would get in the spirit of partnership and go forward and get involved in this BIC project. Also, it has been a question of whether it would be appropriate for the city to get involved in a borough -wide project with this investment. They recognize that the primary benefit of the project will occur to the City of Kenai. They plan to have satellite offices (incubators) into other Peninsula communities as well. Seward has already donated space and provided support services to establish an office there. Councilwoman Monfor congratulated Steadman on their award and added that she appreciated his comments about the "spirit of partnership." Monfor added, before the meeting, she was not going to support the donation. She could not support $100,000 and still could not. But, in the spirit of partnership, she could support $30,000 in hopes that the other cities, who will nlsn reap benefits from the project, and have already reaped benefits (Homer, Seward and Soldotna), could also get into the '°spirit of partnership" and donate to the project as well. Monfor explained she suggested $30,000 because Kenai is the largest city on the Peninsula. Monfor added, they could see what could be done with all those cities working together for the betterment of the whole Peninsula. Monfor referred to Elson's remarks regarding priorities. one of her concerns with this project is that she feels the city has some priorities which the council has not funded. Before they fund the EDD project, council needs to look at their own priorities. Monfor stated she had no problem with the EDD and supports the incubator program 100%. Councilman Bookey agreed with Monfor's comments. Bookey added, he also came to the meeting thinking he would vote no on the project as he believes the purchase should be a partnership. He believes the other communities should be involved and the cost should not be just the city of Kenai's. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 9 Councilman Bannock stated he agreed with Mr. Elson and hopes that his goals are realized in the EDD and incubator center. However, he did not feel the use of public funds should be used to help purchase the building, i.e. using public money for private use. Bannock stated he would vote against the resolution. Councilman Measles asked representatives of EDD if failure to receive the $100,000 would seriously jeopardize the financing for the acquisition of the building. Assemblyman Navarre stated the purchase would go through with the present $100,000 pledge from the Borough. Navarre added, a donation from the City would show community support. With the City's money, they can match federal dollars. Also, with a partnership, they could go forward to the other cities and continue to get their support as well. Navarre added, not receiving the $100,000 will not kill the purchase. Mayor Williams stated the EDD is an organization the City of Kenai helped to form. He believed the city could well -afford to donate the $100,000 and should be able to donate the money and not, in any way, interfere with anything else the city is doing. It is not that the City cannot afford the donation but whether council believes in future economic development to the city. Because of the downturn in State funding, the city needs to diversify or there may be massive taxation. The 5100,000 is an investment in the future for the city and the Peninsula. Williams asked the council to consider the entire $100,000 investment. Williams suggested if council is concerned about what would happen with the $100,000 should the EDD dissolve, the city could tie a blind second to the deal to insure that the $100,000 would be returned. He spoke with a bank about this and found it could be done and could be worked out between the attorneys. Williams requested council consider very strongly the economic future of the city and the economic benefits that will come from the BIC. VOTE ON AMENDED RESOLUTION: Williams: Yes Bookey: No Swarner: Absent Monfor: No Measles: No Bannock: No Smalley: Yes MOTION FAILED. KENAI CITY COUNCIL JULY 19, 1995 PAGE 10 COUNCILMAN MEASLES RESOLUTION 95-37. ORDERED. MOTION TO AMEND: MEETING MINUTES REQUESTED IMMEDIATE RECONSIDERATION OF THERE WERE NO OBJECTIONS FROM COUNCIL. SO Councilwoman Monfor MOVED to amend the resolution (in the opening paragraph) to state "...to contribute $40,000 to the Economic Development District..." and in the "Now, therefore" paragraph, to read, .that the City Council expresses its intention, subject to appropriation of money, to contribute $40,000 to the Economic Development District, Inc. for the acquisition of the ARCO warehouse and office complex in Kenai, and in the spirit of partnership with the EDD, we hope to encourage our sister cities of Soldotna, Homer and Seward to share in this acquisition at $20,000 each. Williams asked Attorney Graves if the resolution had to be re- introduced because it was reconsidered. Attorney Graves answered no, the reconsideration was approved by unanimous consent and would be voting on the reconsideration as amended. Votes on the amendments must take place first. Measles asked to add to the amendment another whereas that points out the benefits of the other cities derive from EDD. Measles noted he had no concern of what would happen to the $100,000 if the deal does not go through. He felt it was covered well enough in the resolution, but it could also be covered in the appropriation ordinance. If the sale does not go through, the money is earmarked for a specific purpose. Measles added, he really did not have a concern about the $100,000, but did have concerns that the other communities derive a benefit from EDD and no one else is offering to put money into the project. Councilman Measles SECONDED the motion to amend. Councilman Smalley asked where the blind second verbiage would be included? Graves answered that if that is what council wants, when the money is appropriated, etc. it could be done then. He would have to talk with the bank to see how amenable they are to KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 11 doing a blind second and work out the details. Graves stated he would speak with the banker if council wants to do it that way. Smalley stated he believed it was worthy of investigating because it is public money. Williams stated he spoke with the banker about it and was told they would have no objections. VOTE ON THE AMENDED RESOLUTION: Williams: Yes Bookey: Yes Swarner: Absent Monfor: Yes Measles: Yes Bannock: Yes Smalley: Yes MOTION TO AMEND PASSED UNANIMOUSLY. VOTE ON MAIN AMENDED MOTION: Councilman Measles requested UNANIMOUS CONSENT. Councilman Bannock stated his objection. ROLL CALL VOTE ON THE AMENDED MOTION: Williams: Yes Bookey: Yes Swarner: Absent Monfor: Yes Measles: Yes Bannock: No Smalley: Yes MOTION PASSED. Councilman Measles stated he did not have a big objection to the $100,000. However, the intent of his amendment was to hopefully get some interest from the other communities who are and will continue to derive benefits from this activity. The city will have other opportunities to help EDD. C-3. Resolution No. 95-39 - Supporting the Efforts of Randy Chalawsky to Produce a Film Documenting the Cook Inlet Commercial Salmon Industry and Exploring the History of Kenai. MOTION: Councilman Smalley MOVED for approval of Resolution No. 95-39 and requested UNANIMOUS CONSENT. Councilman Measles SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 12 There were no council or public comments. VOTE: There were no objections. SO ORDERED. C-4. Resolution No. 95-40 - Accepting a Grant from the State of Alaska, Department of Transportation and Public Facilities for the Airport Master Plan Project. MOTION: Councilman Measles MOVED for adoption of Resolution No. 95-40 and requested UNANIMOUS CONSENT. Councilman Smalley SECONDED the motion. There were no public or council comments.' VOTE: There were no objections. SO ORDERED. C-5. Resolution No. 95-41 - Awarding a Contract for a Project Entitled, "Kenai Dock Float Access Ramp and Float Reconstruction" at the Kenai Municipal Dock to Blazy Construction for the Total Amount of $73,330.00 Which Includes the Basic Bid and Additive Alternate No. 1. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 95-41 and Councilman Smalley SECONDED the motion. Councilman Measles requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. SO ORDERED. BREAK TAKEN: 7:55 p.m. BACK TO ORDER: 8:15 p.m. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 13 B-1. Leo Grasso, Vice Pres., The Continuum Corporation John Verdugo, CEO The Continuum Corporation Lynn Robbins, President, Robbins Retirement Communities - Assisted Living Complex Update. Leo Grasso introduced John Verdugo, the CEO of The Continuum Corporation and Lynn Robbins, who made a presentation about the Assisted Living Center to be built in Kenai. Lynn Robbins - Ms. Robbins explained her company, Robbins Retirement Communities, is a franchise that helps communities develop retirement communities. They have a variety of retirement communities they assist to build and have a professional staff that develops the blueprints, works with the design, works with the city and state planning and zoning, etc. They will bring their professional staff to Kenai to hire local community residents. All the people running the facility will be from the Kenai area. Robbins presented slides of facilities now in operation. Robbins stated they emphasize a home -like, comfortable look for their facilities. A slide depicting a model of the Kenai facility was part of the presentation. Their initial plan was for a single - story facility. However, in developing a market and feasibility study, they found the Kenai facility could be a two-story building, offering 60 units. They want the facility to complement the congregate housing and the Kenai Senior Center. They want to keep the residential nature of the community and complex. They do not want it to look commercial or industrial in any way. The exterior of the facility will be wood like the Senior Center. They hope to start construction as early in the spring as possible. This facility will be a life -care community, designed to allow people to age in place regardless of how they age, the types of services, required, etc. Staff would include 25 full-time employees, 15 part-time employees. Local community residents would be hired. An intensive training program would be required to be taken. They also hope to add to the facility by developing a condominium complex on the back area of the property. Those purchasing a condominium would have all the services offered through the central care facility. It would then be a total care community KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 14 with the congregate housing, Senior Center (and their support services), along with the individual condominiums and the assisted living facility. ITEM Dc COMMISSION/COMMITTEE REPORTS C-1. Council on Aging No report. D-2. Airport Commission Councilman Measles reported the Commission had a scheduled meeting, however there was no quorum. D-3. Harbor Commission Councilman Bookey reported the Commission met, however he could not be at the meeting. Bookey reported the minutes were included in the packet. Public Works Director Kornelis was at the meeting and could answer questions if Council had any. There were no questions or comments. n-d_ TA brary Commission j Councilwoman Monfor reported the Commission did not meet in July. The regular meeting date was on the Fourth. Council approved the cancellation of the meeting. Their next meeting will be in August. D-5. Parks & Recreation Commission Councilman Bannock reported the minutes of the last meeting were included in the packet. He was not able to attend the meeting, however Parks & Recreation Director McGillivray was and could answer any questions of council. McGillivray requested the rescheduling of the next Commission meeting. The regular meeting date is during the time McGillivray will be out-of-state. McGillivray explained the Commission would like change the meeting date from August 3 to August 10. There were no objections from council. Public Works Director Kornelis added the Harbor Commission requested an advertisement be placed in the paper asking if KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 15 anyone is interested in leasing space at the dock. Feedback would give them some help in planning for future use of the dock. Williams asked Airport Manager Ernst if there was an increase in fish -hauling from the airport. Ernst answered, not noticeably. Councilman Measles added he thought there may be an increase in the next week or so. Ernst added, he has been told there are more off -shore processors. D-6. Planning & Zoning Commission Councilman Bannock reported the minutes of the meeting were included in the packet. Councilman Smalley was out of town and Bannock attended the meeting for him. Bannock also reported the livestock resolution, brought to the Commission by request of council, failed. Bannock added, the Commission had concerns about the enforcement of the ordinance and that instead of the size of animals allowed being determined by the zone, it should be by the parcel size, and list the animals allowed or not allowed. Councilman Smalley noted he brought the resolution forward due to requests of constituents. The Commission had discussed the matter in the past and talked about different lot sizes or allowing livestock by conditional. use. Smalley added, he believes the matter will come back again in the very near future. Those animals of concern were pigs, horses, cows and llamas. D-7. Miscellaneous Commissions and Committees Beautification - There was no report. However, Councilwoman Monfor requested the City make sure the State reseeds the green areas they have had to tear up during the work. Williams referred to the memorandum included in the packet in which the Committee requested the scheduling of a special meeting. There were no objections. Williams referred to the memorandum, included in the packet, in regard to membership of the Committee. There was no discussion and no changes made. Historic District Board - Williams referred to the memorandum included in the packet in which it discussed James Malanaphy's resignation from the Board. Attached to the KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 16 memorandum were copies of membership applications from Michael Huhndorf and Marion Nelson. (The seat left open by Malanaphy's resignation is an non-resident seat. Both Huhndorf and Nelson are non-residents.) Council appointed Huhndorf as a non-resident member of the Historic District Board. Nelson was in the audience. Williams asked her if she would like to be an ad hoc member, having no voting rights. Nelson stated she would. ITEM E: MINUTES E-1. July 5, 1995 Board of Adjustment Hearing/Appeal of DeWayne J. Benton. Approved by consent agenda. E-2. Regular Meeting of July 5, 1995. Approved by consent agenda. E-3. Amendment to Regular Meeting of January 18, 1995. Approved by consent agenda. 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 Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 17 H-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Smalley MOVED to pay the purchase orders over $2,500 and Councilman Bookey SECONDED the motion. Councilman Bookey referred to the purchase order to Superstructures for constructing a compressor room at the Shop. Bookey stated because the building is antiquated, does the work absolutely need to be done. Kornelis answered yes. They have a new compressor which they will move outside (due to the noise level) into this new area behind the back door. The area will be insulated. VOTE: There were no objections. SO ORDERED. H-3. Ordinance No. 1656-95 - Increasing Estimated Revenues and Appropriations by $100,000 in the General Fund for a Contribution to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. MOTION: Councilman Measles MOVED to introduce Ordinance No. 1656-95 and Councilman Smalley SECONDED the motion. MOTION TO AMEND: Councilman Measles MOVED to amend Ordinance No. 1656-95 to change, in the heading of the ordinance, the $100,000 figure to $40,000 and in the "Now, therefore" paragraph, the increased estimated revenues, changed from $100,000 to $40,000 and increase appropriations changed from $100,000 to $40,000. Councilwoman Monfor SECONDED the motion. VOTE: There were no objections to the amendment. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 18 VOTE ON MAIN AMENDED MOTION: Williams: Yes Bookey: Yes Swarner: Absent Monfor: Yes Measles: Yes Bannock: No Smalley: Yes MOTION PASSED Finance Director Brown suggested council consider placing the $40,000 on H-1, Bills to be Paid, in the next packet. Council agreed. H-4. Ordinance No. 1657-95 - Amending KMC 14.20.220(c)(2) to Require that Candidates, Individuals, or Organizations Responsible for the Placing of Political Campaign Signs to be Responsible for Their Removal Within Two Weeks of the Date of the Relevant Election. Introduced by consent agenda. H-5. Ordinance No. 1658-95 - Authorizing the Appropriation of $4,334 in the Congregate Housing Facility Enterprise Fund for a Solarium and Storage Shed. Tntroduced by consent agenda. H-6. Approval - Consent to Assignments/From Richard I. Morgan to Shirley Morgan; and from Richard & Shirley Morgan to Morgan Family Limited Partnership (Kenai Municipal Golf Course and Recreation Area). Mayor Williams asked City Manager Manninen for comments regarding the assignments. Manninen answered he only had the information before council and the attorney reviewed it. There were no comments or questions the staff had. Manninen added, it would be a council decision whether they want to approve the assignment or not. Williams asked Attorney Graves his opinion of an assignment to a family limited partnership, and who will be the general partners. Graves stated he understood that Dick Morgan would be the general partner. The documents are estate planning devices wherein Dick Morgan transfers the leasehold interest to himself, dividing that equally between he and his wife. Both those undivided halves are then transferred to the limited partnership for estate planning. Graves noted also that Dick Morgan is signing individually. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 19 Williams asked if Dick Morgan would then continue to be the principle responsible partner. Graves answered yes, and added, that was not part of the original proposal, but Kim Howard and he wanted him to sign individually. They agreed. Williams asked, in the event of the demise of Dick Morgan, how does the general partnership pass? Graves answered he did not know. He did not review Morgan's will. That information is not included in the assignment documents. Graves added, there would have to be a general partner in the limited partnership, who would be liable for partnership debt. Graves stated he did not know who that would be, however he assumes it would be Mrs. Morgan or Don Morgan. They did not ask to look at the testamentary devices as they did not feel it was relevant and they did not want to pry. Williams stated he just wanted to make sure someone would be responsible in the event of Dick Morgan's demise. Graves stated he had no objections to the assignments. MOTION: Councilman Smalley MOVED for consent of assignment lease, Richard I. Morgan to Shirley Morgan and from Richard & Shirley Morgan, etc. Councilwoman Monfor SECONDED the motion. There were no objections. SO ORDERED. H-7. Approval - Inspection Services/Production Well No. 3 - Not -to -Exceed $7,600.00. Williams asked what the inspection services would include. Kornelis answered taking samples, analyzing samples, placing the pipe. Manninen added, assuring the screens are the right size and placed in the right spot. If the screen is in the wrong spot, you don't get water or it silts up. It's worth the investment. It's a very small part of the well -drilling cost. You want to make sure you put the screen in and you're pumping from the right level and you have the right size screen and the right materials. Williams stated it was his first time drilling a well for the city. Usually when you have the well -driller drill a well, he takes care of all the items discussed that the inspector will be doing. Bookey agreed, adding he believed Kraxberger knows more about drilling the well than the inspector knows about inspecting it. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 20 f 7VC014 CONE Councilman Smalley MOVED for approval of the award to Wm. Nelson & Associates for a construction inspection contract for the Water Production Well No. 3 in the amount not -to -exceed $7,600. Councilman Bannock SECONDED the motion. Councilman Bannock asked what happens if the inspection contract is not awarded? Was the money, approved during the last meeting, only for drilling the well and not for any inspection? Manninen answered the city could get advice from the well driller, however the advice is free and what you pay for. Manninen agreed the person most familiar with drilling wells should have quite a bit of knowledge, but he did not think that is the sole source of knowledge and he wouldn't be responsible for the sizing of the screen. An engineer, with experience in that, would have that experience. Manninen added, he had dealt with well -drillers before and they are usually very reliable, but it is good to have someone double check and say whether it is right and that's the right size screen, right placement, right level, geology, etc. It's insurance on what the city has done so far. Williams stated that there will be a gathering of information as the well is drilled. This knowledge will benefit the city and the engineer. Williams added, Mr. Kraxberaer has probably drilled more wells than the engineer has ever seen. Manninen asked, if the inspector is not hired, would it be a good risk to have the well -driller tell where to set it. Manninen stated he thought it would be fifty-fifty. Bookey suggested City Engineer La Shot do the inspection work if what is needed is a professional engineer. Councilman Measles asked how much the engineer (Nelson) knows about well drilling. If there's a concern that the driller will not perform correctly, then perhaps the city should hire a hydrogeologist to do the inspection. Kornelis stated that about every ten feet, the engineering technician (Nelson's) will take a soil sample and other data. Nelson will work with the expert from Homer that did work on the study. The soil samples will be analyzed. A decision will then need to be made as to when to stop drilling and then what size screen, the length of the screen, the size of the openings, etc. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 21 The contract for the screen is $30,000. The screen is an integral part of the well. Someone should be there during the drilling. Measles stated, by law, the well driller is required to log the well as he drills it. Kornelis stated soil samples will be taken as well. Measles stated it is not the amount of money requested, but what are they getting for the money. Bookey noted the proposal, included in the packet, states the engineer will be billed out at $95/hour. Bookey added, the 80 hour estimate on the proposal, works out to be $95/hour. Kornelis mentioned that it would be an engineering technician observing the drilling, etc. Bookey asked if the technician would be observing the drilling or Nelson. Kornelis answered, Nelson reduced his proposal after La Shot spoke with him in regard to the use of a technician and not Nelson. Kornelis added, the not -to -exceed figure was based on the $7,600, not the hours. La Shot had stated to Nelson that the city did not need someone at $95/hour to be taking samples. Manninen stated they expect it will take more than 80 hours, but the cost will not exceed $7,600. Williams noted it seemed that 60 days in which to drill the well was a long time. Kornelis stated the contract to do the drilling and testing is 60 days. Kornelis added, they will drill, determine the materials, screen lengths, order the screen, after receipt of the screen, install the screen, etc. VOTE: There were no objections to the motion. SO ORDERED. A-S. Discussion - Kenai River Beaches Councilwoman Monfor explained she asked for this discussion to be placed on the agenda. Monfor stated the beach is full of dipnetters (on Fridays and Wednesdays). There was a work session with Council, P&Z and Parks & Recreation and a plan was going to be devised to better accommodate the dipnetters, protect the dunes, etc. The only thing that has been done is placement of the dumpsters. The new toilets will be installed soon. The road was not blocked off, no interpretative signs were placed, a bigger parking lot was not made, no room was left along the road for emergency vehicle use. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 22 Monfor added, she will not be on council next year and does not want to have to come before them as a concerned citizen and say nothing has happened on the Kenai beach. Monfor added, she believes the city is doing a disservice to the other side of the River because it is also within the city limits. She does not disagree with citing the State of Alaska for using an open toilet along the river, but also thinks the city is not one to throw stones when nothing is done to take better care of the other side of the river. Monfor added, she knows there are garbage cans placed, etc., however, either the city should get something to them or make a policy about fishing on that side of the river. Something has to be done. Monfor added, the city owes it to the city and to the citizens to protect what it has. The city is a leader in everything else, however she doesn't know why the city can't be a leader in this too. She hopes the plan that was being developed will be done this winter because it is too late for this summer. Manninen answered the new outhouses are in and being installed; the port -a -potties are there; trash receptacles are on both sides of the River; they discussed putting receptacles on the other side and either couldn't get them out there or couldn't get them back; they were not able to get port -a -potties (on the other side of the river) placed and if they had been able to have them placed, they would not be able to have them serviced. The option, was leaving them at the end of the road which was so far away and would not have been utilized or they would have had to be placed on the beach in front of a private home. They couldn't do anything but put barrels down on the other side of the river. Manninen added it is the staff's understanding no direction was made by council to block the road off or build a parking area this year. He raised the same question at a staff meeting and was provided the information that no direction was taken. If the parking lot needs to be built for next year and the road blocked off, some direction will be needed from council to do so. Monfor stated it is not the administration or staff's fault because council did not follow through with directives after the planning session. Her point was that another year cannot go on if dipnetting will continue. The sand dunes are a concern as they protect that area of the city from erosion. There is a lot of things to look at and if the council doesn't take a hard stand and do something positive, then there will be more trouble down the road. In some cases it is too late. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 23 Williams agreed that the city has time to do some planning and Public Works has begun some designs (parking lot, road, etc.). They are waiting also on the new restrooms. Monfor referred to the picture in the morning's Peninsula Clarion of the Ninilchik beach and the problems they are having because they don't have proper facilities. Monfor stated she brought the topic up because it needs to be carried on with what was planned with Parks & Recreation and P&Z. It should be a priority to have more of the work done next year. They discussed a three-year plan. Williams suggested investigating the possibility of sacrificing some of the wetland to the left of the road by the installation of a major culvert system to allow continued drainage of that area and allow recovering land to increase the carrying capacity of the land for people. Williams added the city will do more work on that area. H-9. Discussion - Proposed Bond Issues. a. Addition to Kenai Municipal Library. b. Construction of an Ice Hockey/Skating Rink Facility. Williams referred to information included in the packet, i.e. memorandum from city manager, draft resolutions for the library and an ice facility. Williams stated, in referring to the city manager's memorandum, the council recognizes there is a lot of potential debt from things needing to be done within the city. Williams asked if the buried tank found was on the Daubenspeck property or FAA property? Has the tank been discussed with FAA yet? Rachel Clark, Engineering Technician answered the tank had been located on the Daubenspeck property. She has not spoken with FAA. Williams stated the city needs to determine when Daubenspeck actually got the property and whether the FAA originally placed the tank. Williams added the FAA housing was along that bluff and the tank may have been the main fuel supply for the housing. Attorney Graves stated the city has retained John Parker to do an investigative site search to find out who placed the tank, when it was placed, etc. After receiving a report from Parker, they will decide whether to contact FAA, etc. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 24 Resolution Discussion - Monfor asked when the resolutions needed to be approved. Clerk Freas answered, the Borough likes to send the ballot information to the printer as soon after August 15 as possible. Monfor asked if council was going to ask for $1 million for the library or wait until after the architect's schematics were ready. Attorney Graves stated he spoke with the bond counsel (Klinkner) regarding the bond deadlines. Klinkner said in order for him to have time to process the resolutions, etc., council should look at the initial resolution at this meeting. Klinkner has reviewed the resolutions and thinks they are fine except they need amounts included. Klinkner requested the final resolutions be passed, with amounts, at the August 16 meeting in order that he has time to prepare the report saying it is an appropriate bond issue, etc. Amounts will be needed by the middle of August. Monfor asked if the bond question could be more specific, i.e. what the work will include so that the voters will know what they are getting for the money. The same for the ice rink. Graves stated one problem he had in drawing up the resolution on the ice rink was that he did not know what kind of ice rink council wants to build. nnnkey asked if the petition was circulated under the assumption that it was a $200,000 ice rink or a $2.5 million ice rink. Williams stated that question had not yet been answered. Several councilmembers have different ideas as to what the ice rink should include, i.e. open sheet of ice, open sheet of ice with a roof with refrigeration, or an enclosed rink with all the amenities. Bookey stated before he could support a bond issue on anything, he wants to know what direction will be taken. Williams added he believed the EDD office needs to come in with that information as soon as possible. Williams referred to Lovelyn from EDD who was in the audience. Lovelyn stated the reason why the information was presented to council in a vague form was because EDD was investigating the possibility of developing the ice rink as an industry throughout the Borough. The Sports Arena has leased ice time to the Anchorage Aces for the entire season which has prompted people to panic. The schools, community leagues, etc. won't have ice time except for very early in the morning. Lovelyn added, if council needs two or three scenarios with different kinds of ice rinks and their costs, she would furnish KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 25 them with the information. Lovelyn noted asked when council needed that information. Lovelyn noted they had about 100 signatures on the petitions (Williams noted 69 of whom are registered voters). Many of those people who are involved in the ice activities were out of town. Williams stated the information for council to study should be included in the next packet to review and discussion/action at the second August meeting. Williams added, he agreed with Councilman Measles in that if a rink is built, it should include refrigeration. Williams added, the area where a rink could be built would allow room for expansion. Users of the rink could go forward to raise money to enlarge the rink with heated change rooms, etc. Williams stated that area would be over by the high school, using the parking lot and change rooms at the high school. Monfor asked if council could review the CIP list at the next meeting to see if there is some other item on the list that could be bonded, i.e. the fire station at Beaver Loop, etc. Williams stated he felt it was too early for placing a fire station at Beaver Loop. Monfor noted, the city would be building the Animal Shelter by itself. Williams stated he would consider placing the Animal Shelter on the ballot. If it is not voted for, the city could shut the present shelter down and turn the animals loose. Bookey and Smalley agreed the shelter is a health safety issue. Williams stated the people should be told the shelter will be a cost to them, either paying for it long-term or not. Also, if the vote is relatively close (within 5%) and fails, council would probably feel more comfortable with building a new shelter out- of-pocket, than they would if it went to vote and failed by a wide margin. Bannock stated if it is decided the shelter is needed, he would not want to take the chance of a vote failing at a big margin. He would rather pay for it and build it. The political ramifications would be councilmembers being voted out, but a shelter would be built. If the bond issue would fail at a wide margin, what would they do? Williams answered, turn them loose. Bannock commented that would not be practical. Bookey noted, council approved a purchase order for $6,300 (for the compressor) to protect workers' ears at the shop and the shelter is in worse condition. William agreed. Williams added, KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 26 there have been newspaper articles, pictures, etc. presented to the public. Now, the public should be asked if they want to build a new shelter or not. Williams stated he believed council should hold the bond issue at two this year. Monfor added she would like to have something done about the shelter as they have had it before them for two years. Bookey stated if they are going to bond (for a new shelter) they need to investigate the possibilities thoroughly. Williams stated the shelter is mostly designed and could be included in the next budget and plans ready by spring. It could be under construction by August. It's too late to do anything on the shelter this year. Bookey added, council can make a decision and get the project going. Williams agreed. Monfor reminded council that as they had discussed before the city should request funding from the Borough due to the city's shelter handling animals from out of the city as well. Manninen stated he thought council should consider investigating a three -five year paving plan as a bond issue -- doing $.5 million new paving a year for the next five years. Have staff bring estimates of what the costs might be and council decide if they want to bond or decide if they just want to pave as the needs arise, Monfor stated if it means pavina the cul-de-sacs and little pieces of road, she believed it should be done. Smalley agreed. Williams noted, council had proposed $2.4 for community road development on the CIP list. Measles stated within a five-year program, there are a lot of existing paved streets which will need maintenance. It would be more than paving new streets. Williams stated, maintenance of paving will need to keep up from out-of-pocket. Measles stated he wasn't saying to bond for it, but there is an expense the city will incur and has not been doing maintenance work. Some kind of maintenance program, on existing paved streets, needs to be developed so that in ten years' time, they won't have millions of dollars of paving needing to be done. Bookey noted First and Second Avenue, at Wildwood is like that now. Williams stated they are state roads. Bookey added, the city maintains them though. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 27 Williams stated council should continue to think about those things until the first meeting in August. There will be more information available the other projects and can discuss paving as well. H-10. Discussion - Glacier Environmental/Proposal for On -Site Disposal of Fines. Manninen stated the opinion is written and included in the packet. The engineering technician has negotiated with Glacier Environmental. Glacier is requesting to spread some of the fines, less than 1,000 yards, on the lots and pay the city $10,000. The staff does not think that is appropriate, but is a decision which was requested to come to council. Manninen added, staff thinks they have been given one extension. The city has been very generous. If it creates a problem for them, fine, but they still have a September 1 deadline. Staff doesn't think the city should take on any added liability to accommodate an inconvenience for them. It may be a long-term liability for the city (cleaning the property or lowering of sale price). Councilman Smalley agreed. Also, the city when out of its way to do this and they should be held to their contract. Monfor, Bannock and Bookey agreed. Bookey added, the contractor came before council and stated they could do the project. EXECUTIVE SESSION None. ITEM I: ADMINISTRATION REPORTS I-1. Mayor a. Kenai Peninsula Caucus - Mayor Williams reported the Kenai Peninsula Caucus dissolved at their last meeting. Caucus treasury funds are to be divided and $4,686.87 will be returned to the City of Kenai. Williams also explained the Borough repealed an earlier ordinance which would have continued paying Peninsula cities' AML dues within a phase -in program. Now Peninsula cities will have to pay KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 28 their own dues at a higher rate. Williams suggested council consider whether they want to continue participation in AML after receiving the next membership dues bill. b. Kenai River special Management Area Board - Williams referred to the July 14, 1995 DNR letter included in the packet. The letter notified the city that Governor Knowles is "revitalizing the advisory board with new appointments and the direction to prepare a new river management plan." The city was requested to submit a name of a person to.represent the city on the Board. Council requested City Engineer Jack La Shot be requested to continue as the city's representative on the board. C. Kenai Peninsula Tourism Marketing Council, Inc. - Williams referred to the letter, included in the packet, from the Kenai Peninsula Tourism Marketing Council (KPTMC) which requested the city become a member to the organization. Councilman Bookey stated he believed the Visitors Center handled tourism matters for the city and it was not necessary to become a member of the KPTMC. Council concurred. d. Kenai Peninsula Borough Planning Commission - Williams reported Philip Bryson was reappointed to the KPB Planning Commission. I-2. City Manager a. AML Legislative Meeting - City Manager Manninen reported he attended the AML Legislative meeting on Monday and Tuesday. The meeting was held in Kotzebue. Manninen added it was a very interesting meeting. They compared the state budget and the Municipal Revenue Sharing in 1996 to that of the 1977 state budget -- approximately 2.6% of the state budget. Manninen added, all committees met for a couple of days and legislation is being revised. They discussed retirement, senior citizen property tax, unfunded mandates, pulling PERS, education, regulatory takings, fish tax, marine tax, etc. AML is taking positions on all of those matters. They are developing their policies now and he will forward copies of the new draft of the Policy Statement when it becomes available. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 29 b. Exxon Valdez Oil spill Trustee Council - Manninen referred council to his letter to the Trustee Council which was included in the packet as Information Item No. 9. Manninen explained his letter stated the city wants them to acquire the city's 2100 acres as it would provide an absolute guarantee for habitat protection that is in concert with the spill response plan and also within the funding that they need and have available. The city is asking them to place the city's plan on their FY90 revised plan for this fall. Manninen added if council wants something different from what he wrote to the Trustee Council, let him know. Manninen added that during the AML meeting, he spoke with Ron Drathman and he said he will be going to bring up his ordinance to the Borough Assembly this fall. C. Preservation North Contract/Historic District Board - Manninen referred to the July 17, 1995 L. Harvey memorandum which was distributed at the beginning of the meeting. Manninen reported the liability insurance costs would add approximately 25% to the cost of the whole project. It really doesn't seem that (1) there would be that much exposure and (2) if it's going to add 25% to the cost of the project with very little exposure, does the city want to require them to have the insurance? Manninen added, Administrative Assistant Howard called Valdez to verify some of the things in the memo and they do not require insurance or did not require insurance from Preservation North to do the work in Valdez. If they found any other information, other than the purchase order, they would fax it to us. They also stated they have used Donna Lane's professional services and said they are very conscientious. The concern of Preservation North is that it would add $3,000, $3,100 or about 25% to the cost of their contract and they said they wouldn't be able to afford to do it and maintain they wouldn't have much exposure. The job isn't like an intrusive thing -- they won't be going into peoples' houses and buildings. It is more of an exterior survey thing. They don't feel liability is warranted or needed in this case. However, it is one of the city's requirements. If council wants to stay with it, but there is some precedence for overriding it for what the city wants to do. Manninen stated he needs council to make that decision and not unilaterally by staff. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 30 Bookey asked if it was a requirement in the request for proposals? Williams stated the requirement was that they have insurance. The requirement went to all the bidders. Manninen stated it is in the contract at Page 5. Manninen asked if it was a part of the RFP. Finance Director Brown referred to Page 5 of the contract. Brown added the RFP stated what insurance policies were required, plus another for professional liability requirements. A representative from Preservation North came to City Hall and discussed the matter with Brown and City Engineer La Shot (she was the only bidder). La Shot and Brown agreed to remove the professional liability requirement out. She was objecting to the professional liability. That requirement does not appear on Page 5. Now Preservation North is objecting to general liability, which is required and as a reason for rejecting is the cost of $3,000. She sent a quote from her insurance company, but it is for professional liability insurance, which is not required. Brown stated he personally didn't care, although it was in the RFP. Her objection was based on the cost of professional liability which is not a requirement. Bookey asked if Preservation North has the general liability? Brown stated he did not think so. Williams stated it appeared Preservation North was lacking some credibility in their ability to determine what insurance was required. Bookey stated he could understand Preservation North not wanting professional liability, but the general liability should be a general course of business. Brown stated he did not believe she had any general liability. Brown added he believed the proposal was a joint venture effort of expertise. He did not believe it would be a full-time, on- going enterprise. Bookey asked if that was the case, what credibility would the report have behind it? Brown stated he didn't know. He only was dealing with the award. Brown added, according to Kim, Valdez stated they did fine work for them. Brown stated the representative never objected to Brown or La Shot in regard to the requirement of general liability in the RFP. Councilman Smalley suggested the city send a letter suggesting not to worry about the $3,000 for the professional coverage because it was deleted from the RFP, but that the general liability is required. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 31 Williams asked what liability could they have? Bookey stated it didn't make a difference. Smalley stated he did not want to start a precedent by dropping liability insurance. Councilman Bannock stated he believed the person received incorrect information from the insurance company. General liability insurance is rather inexpensive. Bannock added he did not want to waive the requirement either. The requirement was in the contract. Williams noted, Valdez approached the requirement that if it does not include hands-on work, such as structural or technical evaluations, it is not needed. They will only be taking notes. Bannock stated that is why it is called general liability and it is not very expensive. Directive to administration was for Preservation North to bring a binder for general liability. Bannock added, whatever the minimum requirement stipulates. I-3. Attorney a. Board of Adjustment Hearing/Findings of Fact - Attorney Graves requested council to call him and let him know what direction thev want to ao with the determination so he can compose the decision. b. River Board Meetings - Graves reported he had been attending River Board meetings for the last two days. The next and probably last meeting, prior to rendering a draft ordinance, would be tomorrow. Generally, the members (a) felt there was a need for river protection, and (b) uniformly felt that KPB Ordinance 94-52 was a disaster. Graves added, his feeling from talking with Assembly members is that Drathman may be the only member who has the idea of submitting the 94-52 for action. Graves stated the river board is developing a "bare bones" ordinance which is what most people felt should have been done originally. The processors in the city are for the direction they are going. The Anchorage landowners are also in agreement and the King Salmon Fund has also signed on. Most have signed on with the general direction with the "bare bones" ordinance. They still have a lot of decisions to make at their meeting tomorrow. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 32 When they asked what the city's basic goal was, he answered to protect the river while preserving local autonomy. Some members have a concern that if exempting people begins, they will not be able to get a consensus on any ordinance. Graves stated he somewhat agreed with that. Graves suggested, a way around that would be if the ordinance is drafted as it is developing, it would not appear that it will be too onerous for the City of Kenai. Allow the city the option to adopt it and it will be its ordinance within the city. The city would enforce and control it and the Borough would stay out of it. If the city does not like the ordinance, then they could go back to suing each other as was going to be done with 94-52. Graves stated there was no objection from the group to maintain local control of the ordinance within the city. They understood Kenai's concerns. The new ordinance will be a completely different proposal than 94-52. He has not heard any property or cannery owner say that it will be too burdensome for them to do. Graves stated they intend to have the concept completed at their meeting tomorrow. There will then be an ad hoc staff to write up the recommendations. The tributaries and Kenai Lake will not be included in the ordinance. They felt they should take care of the river stem, do minimums, a bare -bones ordinance and see how it works. Williams asked what the feeling was for the lower five miles. Graves answered, to the rules to be applied, there is a uniform understanding that the area on the mouth of the river is an industrial area and will continue to be an industrial area. They absolutely agree that non -conforming use is not to be used in the document. The ordinance is to be designed to allow canneries be there 100 years from now. There is no objection to that by anyone, of which he is aware, in the group. The canneries are fully on -board at this time. They all like the direction of the ordinance. The ordinance is not designed to control use, but to simply protect that narrow band of fish habitat right along the river. Bookey asked if they were suggesting a high water mark, 100 year flood plain, etc.? Graves answered the 100 year flood plain was discussed. His feeling was they would not deal with the flood plain at all in this ordinance. The group does not feel it should be dealt with at this time. Maybe in two years. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 33 Bookey asked about 15 ft. setback from the bank. Graves stated there had been a lot of discussion about what was done in British Columbia, i.e. a 15 meter buffered area from the ordinary high water mark. There would still be a lot of things to do in that area, but they would be things not destructive to the vegetation. Graves stated the Anchorage landowners' proposal was 25 feet. If that area is to be developed, measures will need to be taken to protect the fish habitat. Certain activities would not be regulated at all. Other things needing to be done are measures to protect the bank and the vegetation. Graves added, one could probably not build within the buffer unless there are areas the zone that needs to be protected could be five feet wide. In those areas it doesn't matter if you build ten feet off the shore. It is really the five feet which really needs to be protected to protect the habitat. Graves stated they have gotten away from regulating use and protecting the fish habitat. Councilman Measles added, there would then not be arguments as to how wide the buffer zone is. Graves stated that is one of the proposals. Measles noted, that is a problem with regulating because the river bank changes often. To set a rule of a constant buffer zone, is not always true for protecting the river. One buffer will not work for the entire length and both sides of the river. Measles stated he would prefer there was not one setback width for the whole river. Make it more site -specific as to the habitat that is being protected. Measles stated he would think there would still be some permitting process for any construction within the ordinance. Graves answered, no necessarily if it is not within the buffer. Williams reminded council that the city has rules in motion that would protect the properties. Williams added, the Borough is wanting to develop an ordinance that would give control to the State to enforce the ordinance. Bookey asked if all the canneries were represented. Graves answered that Vince Goddard was the representative for the canneries. Their official position was that the ordinance should be very, very inclusive. Close to 94-52. Bookey stated he was concerned that all this work would be done and the canneries would not agree to the ordinance. Graves stated Goddard had indicated support of the ordinance as it has been developed thus far. They have compromised. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 34 Bookey asked if there was discussion as to the exemption of the lower five miles. Graves answered they discussed it. The canneries said they did not want to be exempt. They were very clear. They do not want to take the political heat to be exempted. They feel that the direction this ordinance is taking, they can live with it. It will not interfere with their operations. Williams requested a copy of the draft ordinance as soon as it is received for their review. I-4. City Clerk a. Rescheduling Council Meeting - Clerk Freas referred to her memorandum included in the packet, which notified council the second meeting in October falls on Alaska Day. Alaska Day is a holiday for city workers. Freas asked if council wished to reschedule the meeting. Councilman Bannock stated he did not want to reschedule the meeting. The remainder of the council had no objection to rescheduling the meeting. The meeting was rescheduled for Thursday, October 19, 1995, at 7:00 p.m. b. Telephone Poll - Freas reported a telephone poll was conducted on July 14, 1995. The Public Works Department requested council approval for a purchase order to Sterchi Construction for labor only, to install two (2) Romtec Restrooms with city help at Kenai Beach and Cunningham Park for a total of $8,400. Freas reported the poll was authorized by City Manager Manninen. Finance Director Brown noted, along with his signature, "but, ck for prevailing wages and need w/c form." Clerk Freas attested the poll and it was written by the Public.Works Department. Vote on the question was: Williams, yes; Measles, yes; Swarner, yes and Bannock, yes. The poll was conducted by Loretta Harvey. Councilmembers Monfor and Bookey stated they called and voted on the matter. Both stated they voted yes. Bookey also noted his name did not appear on the vote sheet. Freas stated she would include that information in the minutes. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 35 1-5. Finance Director Williams asked Director Brown if budget be made available for the public. Brown to send them out with the audit report. changes made by the Government Standards tax. The change will show a substantial Fund. 1-6. Public Works Director information sheets would stated yes, he was going Brown explained some Board in regard to sales increase in the General a. Spruce Bark Beetle Kill - Director Kornelis reported he had the amount of beetle killed trees in Section 36 and Inlet Woods checked as council requested. A rough estimate was 30% of kill in Section 36 and 50% or more in Inlet Woods. Kornelis also reported he was approached by a person who has a commercial firewood harvesting business. Kornelis suggested he submit a proposal for review. b. Pavement - Kornelis reported the hole in the pavement by Arby's has been paved over by the State road work being done. C. Earth Piles/Woodland Subdivision - Kornelis reported he contacted HEA in regard to the piles of dirt left in the street, etc, in Woodland Subdivision. Thav apningi?ed for the inconvenience and stated they would contact the subcontractor. d. Restrooms - Kornelis reported the restrooms are being placed at the beach. The city crews are working with the contractor. The contractor is doing carpentry work. e. Slope Protection - Kornelis reported he has contacted the Corps for information on slope protection. They will be forwarding some brochures. f. CAP Taxiway - Kornelis reported the final pay estimate for the paving of the CAP taxiway was included in the packet. g. Thompson Park Water/sewer Project - Kornelis reported the work is close to being completed. There is a culvert to be installed and more seeding to be done. Williams stated he was disappointed in the paving of the CAP taxiway. Williams explained he thought the crown looked inverted and there were pieces of wood in the pavement. Kornelis stated the paver was to go back and try and fix the slope. KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 36 I-7. Airport Manager Airport Manager Ernst referred to his monthly report which was included in the packet. Councilman Bannock stated he really appreciated the project update which was on the last page of the report. Bannock also stated he did not want the towing amounts received and number of tows reported on the front. Consensus of council was to keep it in the report. Williams added, the information tracks statistics of whether the population is responding to the overnight parking regulations, etc. ITEM J: DISCUSSION Citizens Marion Nelson - P.O. Box 3612, Kenai. Nelson stated she supports the development of an ice rink. There is a potential to bring revenue into the community. With the dramatic change in regard to access to the Sports Arena, an ice rink is needed. Nelson also reported the Nikiski rink will be enclosed on three sides. J-2. Council Bookey - Bookey reported he will include the AML policy statement information in the next packet. Bookey requested council review it and pass on any comments they may have. He will be attending a board meeting in Barrow on August 25 and 26. They may also discuss the voting structure of the organization. There is a concern that more governments are dropping out. Monfor - Complimented the Borough dump site. It has been nicely landscaped, etc. However, the hours need to be extended. Measles - No report. Bannock - Thanked McGillivray, Bob Frates and the Parks crew for their work on the lawns, etc. Williams requested the garbage can lids at the pavilion be removed from the roof and placed back on the cans. Smalley - Complimented the city beautification efforts. Smalley asked if the tanker truck would be included in the next city auction. Kornelis stated they may remove the tank from the KENAI CITY COUNCIL MEETING MINUTES JULY 19, 1995 PAGE 37 truck and use the chassis for another use. Williams asked what would be done with the tank. Williams suggested using it for confined space entry at the Fire Training Facility. ITEM K: The meeting adjourned at approximately 11:04 p.m. Minutes transcribed and submitted by: Carol L. Freas, City Clerk APPROVED �'aY COUNCIL DATE CLEPr.