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HomeMy WebLinkAbout1995-08-02 Council MinutesKENAI CITY COUNCIL - REGULAR MEETING AUGUST 2, 1995 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 7:00 p.m. -- FIELD TRIP TO SPRUCE STREET BEACH [Regular Council Meeting will continue upon return to City Hall (approximately 7:45 p.m.)] 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. John D. Bierdeman - Far North Firewood & Timber - Proposal for Removal of Beetle -Kill Spruce Trees. C. PUBLIC HEARINGS 1. Ordinance No. 1656-95 - Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund for Contribution to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. 2. 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. 3. Ordinance No. 1658-95 - Authorizing the Appropriation of $4,334 in the Congregate Housing Facility Enterprise Fund for a Solarium and Storage Shed. -1- 4. Resolution No. 95-42 - Awarding a Contract for the Construction of the Congregate Housing Greenhouse and Storage Shed to Blazy Construction for the Total Construction Amount of $118,400.00 Which Includes the Basic Bid Only. 5. Resolution No. 95-43 - Formally Accepting FY96 Municipal Matching Grant Number 96/587-4-001 From the State of Alaska, Department of Administration in the Amount of $211,665.00 for a Water Quality/Development Program, and Accepting the Conditions of the Grant Agreement. 6. Resolution No. 95-44 - Transferring $3,479 in the Water and Sewer Fund for Additional Money for a 3/4 Ton Truck. 7. Resolution No. 95-45 - Awarding the Bid for Various Vehicles to Hutchings Chevrolet, Seekins Ford, and Craycroft Chrysler. 8. *1995/96 LIQUOR LICENSE RENEWAL - WITHDRAWAL OF PROTEST - Kenai Joe's - Beverage Dispensary. D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planninq & Zonin4 Commission 7. Miscellaneous Commissions and Committees E. MINUTES 1. *Regular Meeting of July 19, 1995. F. G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified -2- 2. Purchase Orders Exceeding $2,500 3. Discussion - AML Preliminary Position Statement in Support of the Alaska Long Range Financial Plan. 4. Discussion - Daubenspeck Property/Directive to Correspond on Behalf of The Continuum Corporation. 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 1. Citizens (five minutes) 2. Council X. ADJOURNMENT -3- KENAI CITY COUNCIL - REGULAR MEETING AUGUST 2, 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: 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: Bookey, Swarner, Monfor, Measles, Bannock, Smalley and Williams. A-5. AGENDA APPROVAL There were no changes to the regular agenda. MOTION: Councilman Smalley MOVED for approval of the regular agenda as submitted and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-6. CONSENT AGENDA Mayor Williams requested the following change to the Consent Agenda: ADD TO: E-1, Correction to 7/19/95 minutes. MOTION: Councilman Smalley MOVED for approval of the consent agenda as amended with the addition to E-1, Minutes. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. B-1. John D. Bierdeman - Far North Firewood & Timber - Proposal for Removal of Beetle -Kill Spruce Trees. Mr. Bierdeman explained he owns a small business in the Kenai/Nikiski area and uses beetle kill wood to sell as firewood. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 2 He noticed that 500 or more of the spruce trees on the city property depicted on the map (included with his letter proposal in the packet) has been killed by the Spruce Bark Beetle. Bierdeman stated he would like to clear the beetle kill trees out of that area. Bierdeman added, he wanted to know what stipulations the City would have in clearing the trees and whether he would be allowed to do the cutting. Councilman Bookey asked if Bierdeman would have employees doing the work. Bierdeman answered probably not to start with. Bookey asked if he carries liability insurance. Bierdeman answered he would on himself and carries Workers' Compensation if he has employees. Councilwoman Swarner stated she supports the removal of the beetle killed trees and thought the proposal was a good idea. Councilman Smalley stated he supported the proposal and agreed with Swarner, adding there is a potential fire hazard, etc. Smalley also stated he would want Bierdeman to carry the proper insurance coverages, etc. Mayor Williams suggested Council ask Administration to arrange the necessary plan, including requirements for insurance. City Manager Manninen stated, some concerns that staff might have and that council may want to consider before awarding based on first -come -first -serve is whether there is any consideration to someone else, putting out an RFP and having someone else have the same opportunity because the city may be in for some criticism if that is not done. That is a concern, it's a policy issue for the council to be concerned with and he spoke with the City Attorney about it also and that two other things should be done whether the property was acquired through a tax fault within the past ten years. If that is the case, the city will have to declare the property for public purpose by ordinance before doing something with it and if it is past ten years, which has not yet been researched, council could take action without declaring the property for public purpose. The property has to be one or the other, if it's not yet ten years, the council will have to take action to declare it as public use property. If it is past ten years, there wouldn't be a problem because there would be no right for the previous owner to purchase the property back where if it was not yet ten years, the previous owner may say they want to buy it back for back taxes and if the city has removed trees, the previous owner may want to be reimbursed for them. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 3 Williams informed Manninen of the history of Section 36 properties within the State of Alaska (given to the University as Mental Health Lands and then to cities for public disposal). Williams suggested that council sometime review the whole Section 36 process to see who owns what properties, city or private, etc. Bookey asked if anyone else had come to Administration who is interested in cutting the trees. Bookey added he remembered someone coming and asking approximately one year ago and he did not think the city allowed that person to take trees on the right-of-way. Manninen answered he remembered at least one call from another individual who was concerned about beetle kill on city property and what was to be done about it. He did not know if the proposal before them was due to a concern of Bierdeman or someone else. Manninen added, if the city owns it or not, or if something needs to be done, if council wants to clean it up, then they need to determine whether a RFP should be put out or just award the project. These were concerns staff came up with and the others that council mentioned, i.e. Workers' Compensation, liability insurance, etc. Williams suggested giving Administration a directive to allow Bierdeman to do the work, with a plan worked out with Administration or p„t nut a PFP to the puhlir to see if there would be some responder that may have a different plan. Manninen stated that based on the fact that this has been happening over a period of time, and because nothing would be done for a few months, council may want to consider a RFP to see if there is other interest. This would lessen the criticism that the city and council would take in the future if someone else would come to the city and ask why did you do it; like we put out an RFP; nobody else responded; these individuals were there; they came up with the insurance; it was something that had to be done. It would be a totally different thing if it were an urgent matter, but he did not think that it was. It is a council decision. Councilman Bannock stated he thought it was a good idea and the city should go ahead with Bierdeman doing the work. If there are complaints, there will be other wood to cut. Monfor agreed with Bannock. Monfor added, she did not think it should be such a hardship to have Bierdeman come in and work out details with Administration. There were no other calls. If there is a KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 4 problem, council can deal with it then. The city is full of beetle kill trees. Councilman Measles agreed and added if there is a problem, they will deal with it at that time. Williams stated Bierdeman should work out the details with Administration in regard to insurance requirements, etc. but the cutting should only be done within that part of Section 36. FIELD TRIP TO SPRUCE STREET BEACH Council traveled to the beach and bluff areas to see what effect the dipnetters have had on the beach and dunes, as well as an overview of the properties and what may be able to be done to better accommodate the dipnetters and protect the beach, etc. Also, council traveled to Mission Street and discussed the bluff erosion and possibilities for dealing with the erosion. BACK TO ORDER: 8:26 P.M. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1656-95 - Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund for Contribution to the Economic Development District, Inc. (EDD) for the Acquisition of the ARCO Warehouse and Office Complex in Kenai. Councilwoman Monfor MOVED for approval of Ordinance No. 1656-95 and Councilman Measles SECONDED the motion. There were no public comments. Councilwoman Monfor noted in the Planning & Zoning Commission minutes it was stated one of the commissioners was upset with the donation as he felt it was a conflict for small businesses in the community. Monfor pointed out there were no unfavorable comments made at the council meeting. If people have objections, they need to voice them. It does no good to state objections after the meeting. Councilman Smalley stated those points were noted to the commissioner. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 5 Manninen reported Kachemak City has requested EDD representatives to make a presentation to their council. Kachemak City is considering a $10,000 donation to EDD. VOTE: Bookey: Yes Measles: Yes Williams: Yes MOTION PASSED. Swarner: Yes Bannock: No Monfor: Yes Smalley: Yes C-2. 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. MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1657-95 and Councilman Measles SECONDED the motion. There were no public comments. Councilman Bannock stated he .ahpleheartedly supported the ordinance- Bannock added, any law is as good as its enforcement. Williams asked if the code contains what the fine would be. Attorney Graves answered that the City would seek costs for removal of the signs. The person who places the sign would have to reimburse the city for that cost. There is no punitive fine. VOTE: Bookey: Yes Swarner: Yes Monfor: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-3. Ordinance No. 1658-95 - Authorizing the Appropriation of $4,334 in the Congregate Housing Facility Enterprise Fund for a Solarium and Storage Shed. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 6 Councilwoman Swarner MOVED for adoption of Ordinance No. 1658-95 and Councilwoman Monfor SECONDED the motion. There were no public comments. Public Works Director Kornelis reported the resolution awarding construction did not include Additive Alternate No. 1. Kornelis added, there were not enough funds to include the extension of the garden room out an additional four feet. He discussed the matter with Senior Center Director Porter and they decided the extension of the garden room could be omitted. The basic bid price is a good price. Williams noted that if council wanted to include the Additive Alternate No. 1, an amendment would be needed adding $4,480 to the appropriation. Williams asked Finance Director Brown if all the funds were available in the construction fund. Brown answered no, that was the purpose of the ordinance. Williams stated all the other funds would be taken from the Congregate Housing Enterprise Fund. Councilwoman Swarner asked how much money was left in the Congregate Housing Fund. Brown answered the Congregate Housing Fund has no retained earnings. It does have money set aside in a reserve account for repair and replacements. 73nythinn spent would be added as an asset. The addition would be treated as an asset, placed in an asset account, and depreciated. It will reduce the cash balance. Williams stated he understood that when council created the cash balance fund that it would not be touched until there was $.5 million in the fund. Smalley stated he did not think that was acted upon by council. Swarner asked if the $116,066 was money left in the construction grant fund. Brown answered yes. Swarner asked if the $4,480 would come from the General Fund. Brown answered no and explained the way it would work. Brown continued, in the Congregate Housing Enterprise Fund (operating fund), the excess money will be spent out of that fund, cash would be used, and would be charged to an asset account in the Congregate Housing Fund. None of those monies have to do with the General Fund. Brown stated there was sufficient cash in the operating fund to cover the cost. KENAI CITY COUNCIL AUGUST 2, 1995 PAGE 7 MOTION TO AMEND: MEETING MINUTES Councilman Measles MOVED to amend Ordinance No. 1658-95 to change the amount of the appropriation to $8,814. Councilwoman Swarner SECONDED the motion. Smalley asked if an explanation would be needed to include Alternate No. 1. Williams answered that would come with Resolution No. 95-42. VOTE: There were no objections to the amendment. VOTE ON AMENDED ORDINANCE: Bookey: Yes Swarner: Yes Monfor: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-4. Resolution No. 95-42 - Awarding a Contract for the Construction of the Congregate Housing Greenhouse and Storage Shed to Blazy Construction for the Total Construction Amount of $118,400.00 Which Includes the Basic Bid Only. MOTION: Councilman Measles MOVED for adoption of Resolution No. 95-42 and Councilwoman Monfor SECONDED the motion. There were no public comments. MOTION TO AMEND: Councilman Measles MOVED to amend Resolution No. 95-42, changing the amount in all places where the $118,400 appears to $122,880 and at the end of the sentence in the heading stating "which includes the basic bid only" change it to "which includes the basic bid and Additive Alternate No. 1; and the same addition to the last sentence in the "Now, Therefore" paragraph; in the fourth "Whereas," the last sentence "basic bid..." add to read "basic bid and Additive Alternate No. 111; and the fifth "Whereas," change "for the basic bid is the lowest...11 change to KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 8 read, "for the basic bid and Additive Alternate No. 1 is the lowest..." Councilwoman Swarner SECONDED the motion. VOTE ON AMENDMENT: There were no objections to the amendment. There were no comments from the public on the resolution as amended. VOTE ON AMENDED MOTION: Bookey: Yes Swarner: Yes Monfor: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-5. Resolution No. 95-43 - Formally Accepting FY96 Municipal Matching Grant Number 96/587-4-001 From the State of Alaska, Department of Administration in the Amount of $211,665.00 for a Water Quality/Development Program, and Accepting the Conditions of the Grant Agreement. MOTION: Councilman Smalley MOVED for approval of Resolution No. 95-43 and requested UNANIMOUS CONSENT. Councilman Measles SECONDED the motion. There were no public or council comments. VOTE: There were no objections to the motion and request for unanimous consent. SO ORDERED. C-6. Resolution No. 95-44 - Transferring $3,479 in the Water and Sewer Fund for Additional Money for a 3/4 Ton Truck. I41i300to)* Councilman Smalley MOVED for approval of Resolution No. 95-44 and Councilwoman Monfor SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 9 There were no public or council comments. VOTE: Councilwoman Monfor requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-7. Resolution No. 95-45 - Awarding the Bid for Various Vehicles to Hutchings Chevrolet, Seekins Ford, and Craycroft Chrysler. Councilman Bannock requested to abstain from discussion and voting on Resolution No. 95-45. Williams asked him if he would receive some financial gain from the action on the resolution. Bannock stated his employer would and therefore, he would. Williams asked Attorney Graves if Bannock should abstain. Graves stated he should abstain. MOTION: Councilman Smalley MOVED for approval of Resolution No. 95-45 and Councilwoman Swarner SECONDED the motion. Councilman Measles noted $22,500 was budgeted for the 3/4 ton truck, however the cost is $25,979. Measles also noted the one ton pickup was cheaper than the 3/4 ton. Public Works Director Kornelis explained there were extra costs for the 3/4 ton, i.e. utility box, etc. There was a miscommunication between the shop foreman of what he wanted and what was budgeted. Kornelis added, the 3/4 ton has a service body. Vehicle No. 3 is a regular pickup. Councilwoman Monfor noted that some of the vehicles are 1995 models and others are 1996. Kornelis explained the specifications allowed the bidder to bid one 1995 model, but additional bids from that dealer needed to be 1996 models or current production. The bid specifications were reviewed by the dealers at a pre -bid conference. Williams asked who would be using the four -door Cherokee. Kornelis answered, the City Engineer. The Cherokee will replace his truck. Williams asked for public comment. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 10 Jerie Best - P.O. Box 426, Soldotna, AK. Best stated she had a problem with the purchase of the Senior Center van and not making it (wheelchair) accessible. Best added, she realized the City has one van that is accessible. She did research into the matter with some attorneys. If the current wheelchair accessible van goes down, the Center will not be in compliance with ADA requirements. The van would not have to have a lift, but could have a ramp or portable ramp. Best passed out some information to council regarding lift/ramp availability and publicly funded transportation. Best continued, there are two programs, by Ford and GMC, which offer a rebate for making a van accessible. Best stated she planned on coming back to council at a later date at public comment to discuss the availability and usage of the van. That is a separate issue. Best added, she felt it important that council realize that if the current van is not in service, the city would be liable for non-compliance of the ADA. Her research was done with the Disability Law Center and the Human Rights Commission. There were no council questions of Ms. Best. Pat Porter - Senior Center Director/City of Kenai. Porter stated that as far as being in non-compliance with ADA due to the van not being in use, they have not had a problem with the van being down before because the city's maintenance department is very good at keeping the vehicles up and in good shape. The van has regular maintenance, etc. If the van was down, an arrangement could be made with the Soldotna Senior Center who also transports the type of individuals the Senior Center does. On an emergency basis, they could go and take care of the needs to transport an elderly person in the wheelchair lift. Porter added, an arrangement could be worked with Soldotna also that if their wheelchair van went down, Kenai could assist them. They have not shared transportation before, but she did not think that would be a problem if the van was broken. There were no other comments. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 11 VOTE: Bookey: Yes Swarner: Yes Measles: Yes Bannock: Abstain Williams: Yes MOTION PASSED UNANIMOUSLY. Monfor: Yes Smalley: Yes C-8. 1995/96 LIQUOR LICENSE RENEWAL - WITHDRAWAL OF PROTEST - Kenai Joe's - Beverage Dispensary. Approved by consent agenda. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reported the Senior Center newsletter was before council for their review. The Center is to host a group of seniors from Wasilla on August 10. D-2. Airport Commission Councilman Measles renortPd there was no meeting since the last council meeting. The next meeting is scheduled for August 10. D-3. Harbor Commission Councilman Bookey reported the next scheduled meeting would be on August 7. D-4. Library Commission Councilwoman Monfor reported the Commission will meet on August 15. The Library calendar was before council for their review. D-5. Parks & Recreation Commission Councilman Bannock reported there was no meeting since the last council meeting. The next meeting date was changed, with council approval, and set for August 10. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 12 D-6. Planning & Zoning commission Councilman Smalley reported the minutes of the last meeting were included in the packet. Smalley reviewed actions taken during the meeting. In reference to PZ Resolution No. 95-39, the Vozar plan for 15 log buildings for renting to small businesses was first reviewed by the Historic District Board. Water will be available. One of the buildings will be a restroom facility. The idea is to bring business to Old Town. A proposal was presented of what the cabins could look like. The parking on the plat was not in scale and additional parking will be needed. A plan will need to be presented in scale with the criteria. Since it is a project in Old Town, close attention will be paid to what is going on and the development is accurate. Councilman Bookey stated he was concerned that the activity was happening without the permit. Smalley answered the permit was not to be issued until the plan was accurate. If this does not happen, the project should be stopped. Councilman Smalley also reported PZ Resolution 95-37, a conditional use permit for Beavercreek Lodge, failed. The building is a triplex which is being rented. It appeared there was a guiding business being run from there as well. No guide boats had been approved by the Commission. The city was requested to review the businesses operating in Anglers Acres as there is concern there are a number of guiding boats operating without permits. There were a number of public comments made. The neighboring public did not want the business there. The Commission discussed rezoning the area to a Recreational Zone. Smalley also reported one of the commissioners stated concern about the donating of $40,000 to the EDD, i.e. taxpayers' money used for competition to his business. Smalley stated he reminded the Commission that a public hearing was held and asked the commissioner whether he telephoned any of the Councilmembers, etc. Smalley stated he told the commissioner the donation was an investment for the city. Councilwoman Monfor referred to the Historic District Board minutes in which they discussed the size of the lot. Monfor stated she was concerned that there would be one large lot instead of small ones. Smalley stated the Commission felt comfortable with the large lot. All the buildings are to be placed in a manner that they will coincide with the Code in regard to property lines. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 13 Monfor also stated she was concerned that the names were to be after local pioneers instead of Kenaitze Monfor added, care needed to be taken that no one is D-7. Miscellaneous Commissions and Committees of the cabins families. offended. Beautification Committee - Councilwoman Monfor suggested the city supply beverages for the Committee's reception at the Leif Hansen Park. Monfor reminded council that there are 40+ volunteers who have worked to beautify the city. The least they could do is supply the beverages. MOTION: Councilwoman Monfor MOVED for the city to supply beverages for the Beautification Committee's volunteer reception. Councilman Smalley SECONDED the motion. There were no objections. so ORDERED. Councilwoman Swarner invited council to attend the reception at 6:00 p.m. at Leif Hansen Memorial Park on August 8. Councilwoman Swarner also reported the minutes of the last Committee meeting were included in the packet. Beautification awards will be given out at the August 9 Chamber luncheon. Historic District Board - Williams referred to the memorandum included in the packet asking council if they would authorize the Historic District Board to pursue a PEP Grant to develop the original village of Shki'tuk. Williams asked Manninen to brief council. Manninen stated it looked like it was a grant for up to $5,000. Williams noted it was a matching grant. Williams added, the question was whether council wanted to match up to $5,000 for the grant. Manninen stated, with the original grant the city is going through, it would cost about $12,000 and there was the issue of $2,000-3,000 for insurance. When they researched it, they found that Homer did theirs for almost volunteer situation for only a few thousand dollars. It looks as though Kenai is looking at maybe $15,000 for its. $12,000 for sure. Sometimes you wonder if going for the grants is worth it, especially when the amounts are $5,000 and you have to match $5,000 and then you don't know what you're committing to get the $5,000 and then have the KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 14 contractor come back and say it's going to cost $3,000 and they need more money so you end up putting $8,000 for $5,000 and on and on you go. Williams stated there is a lot of good criteria involved with this grant, i.e. public land, private lands designated for public use, etc. Smalley suggested the Board pursue it and then consider whether the city wants to match it. Bannock stated, to apply for it implies that you are willing to match the amount. Consensus of council was not to pursue the grant. ITEM E: MINUTES E-1. Regular Meeting of July 19, 1995. Approved by consent agenda. ITEM F: CORRESPONDENCE 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 KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 15 IvColo lbto]Z F3 Councilman Bannock MOVED to pay the purchase orders over $2,500 and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. BREAK TAKEN: 9:15 P.M. BACK TO ORDER: 9:26 P.M. H-3. Discussion - AML Preliminary Position Statement in Support of the Alaska Long Range Financial Plan. Manninen reported the AML is pursuing items that are not very popular, including sales tax, use of Permanent Fund earnings for municipal support; personal income tax. Manninen read from the information included in the packet in regard to sales tax and property tax. Manninen added, former Governor Hammond suggested, in a newspaper article, that he was in support of re -instituting the state income tax which he had removed when he was governor. There would be a condition that the Permanent Fund checks would be increased, sales tax would be added and credit would be given to people for sales tax and property tax. Basically, most of it would be coming out of non-resident employees working in Alaska. Manninen also reported the fuel tax proposal would be to support municipal and state transportation systems. Alaska's tax is lower than that in other states. Manninen read from the AML Policy Statement, page 44, which discussed the proposal to dedicate a fuel tax to support state and municipal transportation systems. Another point stated was that sales and property taxes are the primary sources of revenue and AML does not support the enactment of state sales tax or property taxes in organized municipalities that depend on sales or property taxes. AML does not want the state tapping into those sources of funds to municipalities. Williams noted that there had been some support for a dedicated fuel tax fund. Williams asked if AML was including a constitutional amendment in their discussions of fuel taxes. Manninen stated they were not saying dedicated funds as much as saying, if you want us to take over services such as docks, harbors, etc., provide an increase in the tax rate and give it to the cities and have the cities take over the docks, harbors, etc. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 16 Williams stated he did not think that would work. A dedicated fund would make sure the funds would go to maintaining, etc. the highways. Councilwoman Swarner stated the dedicated fund proposal was taken out because unless the AML Legislative Committee was willing to go around with petitions, it wasn't relevant. Williams stated he thought that if AML got others to lobby the legislature for the ballot measure, it would be feasible. Williams added, he believed a dedicated fund would work to garner additional funds and set up a self-supporting system. Discussion followed. Councilwoman Swarner suggested council send a resolution to AML supporting a dedicated fuel tax fund. Swarner explained, AML requested the AML Legislative Committees (at their meeting) to focus on matters that were attainable. Williams asked council if they wanted to consider a resolution supporting a dedicated fuel tax. Bannock and Smalley stated they supported such a resolution. Williams stated he would like to take a resolution to AML in support of a dedicated fuel tax. Councilwoman Swarner stated she also would like a resolution being brought forward in regard to the gaming permitting problem as well. Swarner suggested these resolutions be brought forward for the next council meetina in order that Williams and Bookey could take them to the AML Board meeting in Barrow. Williams, speaking to Manninen, requested Administration to bring a resolution forward at the next council meeting in support of a dedicated fuel tax fund. Williams added, if Manninen had any questions, he could call the Legislative Affairs Office, who has a lot of information on the subject. Williams added, speaking to Manninen, the other resolution to be brought forward is one on the gaming permitting. Measles and Swarner explained, the city's actions make no difference in the decision of the state to approve or disapprove a gaming permit. Monfor asked if there had been any discussion about the old school tax being revamped and revised for every person who works in Alaska, no matter what type of job, to pay, out of the first paycheck a set amount of money. The amount used to be $10. Swarner answered, it was not discussed by her committee this year, but in other years it had been. Monfor added, there has to be a better way to tax those persons coming into the state to work and then leave. Monfor stated she felt it is a penalty to the people who live in Alaska. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 17 Swarner suggested another resolution be prepared in regard to a school tax also. Swarner asked Manninen if his committee discussed a school tax. Manninen answered, no. Williams suggested a tax of $50. Swarner suggested $100. Smalley suggested taxing the fishing industry because they pay very little in taxes. Council directed Manninen to bring forward a school tax resolution, gaming permitting resolution, and dedicated fuel tax resolutions for the August 16 council meeting. These resolutions would then be taken to AML for review and consideration to pursue with the legislature. H-4. Discussion - Daubenspeck Property/Directive to Correspond on Behalf of The Continuum Corporation. Williams reported he reviewed the Daubenspeck file in order to get a clear understanding of the transfer of Daubenspeck property to the city. Williams added, Attorney Graves suggested it would probably be proper to write to Mr. and Mrs. Daubenspeck and request them to clarify the meaning and the intent of the sale and use of the funds. Graves stated, it appeared the Daubenspecks meant, when they granted the city the oil and gas rights, the city could sell them, lease them, etc., but the money must go to recreation. With the land, they said it must be held for public purpose. There were two different grants. Graves added, if the city at some point wants to sell or lease the property, or do something other than public purpose, then the appropriate thing would be to write the Daubenspecks and ask them if it is all right. Graves stated he was not suggesting the city do something different with the property, that is a council decision. Williams reported that the reason the matter was being discussed was that the Continuum Corporation would like to build senior condominiums and they felt that area may be a good place on which to place the condominiums. The property is large enough to place condominiums and a convention center both. However, it is not known for sure what can be done with the property. In writing Daubenspecks, this could be clarified. Bookey stated he thought the Daubenspecks wanted the land held in trust by the city. Williams stated it was not clear. The trust was put together as a tax purpose deal. Bookey stated he had done some work for the Daubenspecks at the time the grant took KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 18 place and the way it was described to him, he thought that was Daubenspecks' intent. Williams stated it was not clear in the document. Williams added, he spoke with their attorney in Seattle. Williams thought that while the Daubenspecks were still alive, it would be a good time to have them clarify their intent. Smalley stated he did not think it would hurt to write to the Daubenspecks. Graves stated, if it was the Daubenspecks' intent, they can say this is what they meant and the city can do that. Councilwoman Monfor requested that while investigating the transfer of land from the Daubenspecks, could Administration find out who owns the different lots across Ryan Creek and if it would suitable to place the condominiums there. Monfor added, there is a portion of those properties that are the city's that may be able to be used. Williams asked if Monfor wanted a clear delineation of the ownership of property on the north side of Ryan Creek. Monfor stated yes. Williams asked council if they had any objections to have Attorney Graves contact Daubenspecks. Council had no objections. Rookey suggested that when a clarification is made, it he made formally in order that there will be no questions in the future. EXECUTIVE SESSION None. ITEM I: ADMINISTRATION REPORTS I-1. Mayor a. Alaska/Sakhalin Working Group - Williams reported he attended a meeting in Anchorage in regard to the Working Group. There was a report on the relief flight, taking medical supplies, etc. to Sakhalin after the earthquake. He and Mayor Lancaster are planning to send a hockey team to Russian in the winter. b. Joy Bryant-Dolsby - Williams reported he met with Ms. Bryant-Dolsby in regard to the BOR land transfer to the city. He requested the State Parks Department review the transfer and KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 19 perhaps renegotiate lands transferred to the city. Williams added, they will meet in a few weeks after a federal audit is completed in regard to BOR lands. Williams plans on taking staff members with him for the meeting. His intent is to regain the right to transfer ownership of the lots along the golf course. C. Russian visitors - Williams reported he will be touring a group of Russian visitors through some of the city departments on Thursday afternoon. d. CAP Taxiway Ribbon -Cutting Ceremony - Williams invited council to attend a ribbon -cutting ceremony at the newly paved CAP taxiway on Saturday morning at 10:00 a.m. I-2. City Manager a. Haller Concern - Manninen referred to the discussion held at the last council meeting in regard to Carl Haller's sewer and water bill. Manninen reported, the staff reviewed the matter and determined the property was razed by the city fire department on June 22, 1988 and if the city council decided that it would be proper to pay water and sewer bills back to the date the city fire department destroyed the house, it would be the equivalent of $1,347 that he could credit toward the special assessments. Manninen added he had a stack of information if council wanted to get into more detail. However, this was the bottom line of what happened and how much money it would cost if council would want to give any benefit of the doubt that he paid his assessments, even though he paid for property (not hooked up). Manninen added it was pretty tough to follow his argument. But if council followed it and agreed with his argument and wanted to do anything, that would be the only logical thing they could think council could do other than just keep the payment the way it is. There would be some rationale to crediting something after the house was destroyed on 6/22/88 and crediting $1,347. Other than that, water and sewer bills were paid for the house. The ordinance was repealed in October, 1986. Haller contends he did not know the property he was paying for was a warehouse or wasn't a warehouse until about a year ago. Manninen stated it is confusing, but if there is any logic to be followed to credit anything, that would be the only reason to credit it. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 20 Councilman Bannock asked what the $1,347 represented. Manninen answered it represented water and sewer bills paid between the time the house was razed and February, 1992 (when the bills stopped). Bannock asked, Haller didn't know he was paying a water and sewer bill from June 1988 to February 1992 and then realized he was paying a water and sewer bill for something that didn't exist. Attorney Graves answered, he thought he was paying it for the warehouse, but in reality he was paying for a house that didn't exist. Bookey asked if he had access to water and sewer at the warehouse. Kornelis answered that the warehouse was far enough back that it didn't need or have any facilities for water and sewer. There was water and sewer stubouts to the house, even though they weren't used. The warehouse sits back far enough it didn't need water and sewer. Bannock stated he didn't want to debate the $1,347, but whatever the outcome of that was, he would not recommend tieing it in with another assessment that Haller has. Bannock added, his position is that Haller owes the assessment on the paving. If the city owes him a credit or has overcharged him, then that should be a separate transaction. He did not want to confuse the two transactions because there is no question that he owes for the assessment on the paving. Manninen stated he thought the question would be, if council wants to credit anything on the overpayment on the water and sewer, would it be issued as a credit against the special assessment. Manninen suggested that Bannock was saying no. Manninen added, if that was the feeling of the council, then it could be done either way. Councilwoman Swarner stated the only other instance she could think of was the Roy & Peg's Laundry matter. Swarner asked if the city refunded their money when they weren't hooked up. Finance Director Brown answered he did not think so. Brown stated that was a different situation. Attorney Graves stated the city did not refund their money. The essential difference between the Laundry and Haller was that Haller paid for a house that didn't exist. The house was physically gone. This is a different situation that was never dealt with before. Before it was a house that wasn't connected that should have been connected. The ordinance stated a building must be hooked up if it is within 200 feet. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 21 Measles asked if he continued to pay electric and gas to the house that didn't exist. Measles added, how could a house not be there and someone keep paying bills on it. Monfor asked why the bill continued to be sent. Graves answered, because Haller thought he was paying for the warehouse which had no hook-up. Graves added, it is a confusing story and to the extent they understand Haller's story, it's that he thought he was paying for the warehouse that wasn't hooked up, but he thought he was paying anyway and in actuality, the bill he was paying was for the house that was destroyed. Smalley added that he probably thought he had to pay it because of the fact that when you first came in, you paid whether you hooked up or not. He knew he wasn't hooked up. Finance Director Brown stated they couldn't figure out why, if Haller believed he was paying for the warehouse, why he ever would have paid his bill because the warehouse had no plumbing. It (the warehouse) was never considered for a billing. He was not required to hook the warehouse up. Only dwellings that are susceptible to using water and sewer have to hook up. Warehouses without plumbing, no matter how close they are to the water/sewer lines, do not have to hook up. Brown added, it is hard to understand why he thought he was being billed for the warehouse, but it's the only explanation they could think of that would explain why he didn't stop paying when the house was burned down. Brown added, it all kind of made sense, but really never seems to gel. Councilwoman Monfor asked why did the city continue to bill Haller. Brown answered, because they didn't know the house was burned down. Monfor stated "we" burned it down. Brown answered, no "we" didn't, the fire department did. Monfor stated they are part of the city and whoever works for what department, it is the city and is one entity. Monfor added, she felt there is a problem when the city is billing a house that the city has burned down. Monfor stated, no one can pass the buck. There is a problem. It would be different if it was the first time something like this happened, but it wasn't. Councilman Smalley stated he agreed with Councilman Bannock in that he didn't think both matters should be tied together. If the council is wanting to do something, they should be treated separately. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 22 MOTION: Councilman Smalley MOVED to reimburse Mr. Haller the amount of money equalling to $1,347 for water and sewer assessments for a building that did not exist. Councilman Measles stated that technically, the city cannot discontinue the utility service to a customer unless the customer asks that it be discontinued or he refuses to pay his bill. Kornelis added, it should be remembered that there were no utilities hooked to that building. There was no water and sewer to the house either. Measles agreed and added, Haller was paying it because the ordinance said that he had to pay it because the house was situated within a certain distance from the lines. He had to pay it whether he used it or not. Monfor stated her point was that the City of Kenai burned it down. It was in the paper. Perhaps a letter should have been written to Haller and ask him whether he wanted the service continued. Councilman Bannock SECONDED the motion. Bannock asked what ordinance was repealed in 1986? Kornelis answered, it started with DEC when they said that the city would not receive any funds for water and sewer unless there was an ordinance that said that people would have to pay for it. The city did the ordinance which said, even though the building is not hooked up, the owner would have to pay a water and sewer bill. It was then found that they do have to physically hook up to the lines. Haller really did owe the money because he should have hooked up. Bannock stated that Haller got away with only paying the penalty and not having to pay to be hooked up because he should have hooked up. Kornelis stated he paid his monthly bills until the building was burned down. Bannock corrected him saying he paid the bill for four years after the building was burned down. Williams stated the motion was to reimburse Haller for the amount paid from the time the building was burned until 1992. Measles asked if, by reimbursing Haller, would council be starting something. Graves answered, he thought there would be a lot more claims like this one. Graves added, the city's position has always been that it is the ratepayers' responsibility to KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 23 notify the city when they move or when a building has been destroyed. In this instance, the mitigating circumstance is that the city burned the building, but there are a lot of times when a building or trailer has been removed. If a trailer has been hooked to water and sewer and the trailer is moved, the city is not always informed. When they come in and say that the trailer has been moved some time before, the city's response has been why did they not inform the city. Bannock added, in this matter, there is nothing to say that the day after June 22, Haller could have started building a replacement. Williams stated that was beside the point. Bannock answered, he knew that, but just because the city knows the house is no longer there, the Public Works Department should not be shutting off the utilities. The other utilities will not shut off, i.e. HEA, Prime Cable, Enstar, telephone company, unless they are requested by the owner to shut them off. Otherwise, a bill will be sent. Williams referred to the circumstance that Haller thought he was paying for water and sewer on the warehouse. Bannock asked if anyone at the city of Kenai lead him to believe that was what he was doing. Williams noted problems he has had with water and sewer billings over the years. Bannock stated that if they are Paid attention to as they come up, there is a difference between r-�- dealing with it and writing a check. Williams stated he thought Haller should be reimbursed since the city took his money for four years after the city burned down the house. Bannock asked if the house was burned down because of a mistake? Williams stated no. Bannock stated it should not be said that the city owes him something because the city burned his house down because it had nothing to do with him allegedly being overcharged. Bookey called for the question. VOTE: Bookey: Yes Measles: No Williams: Yes MOTION PASSED. Swarner: Yes Monfor: Yes Bannock: No Smalley: Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 24 Monfor stated she did not disagree with Councilman Measles in that they would be setting a precedent, but this is really a unique situation. 1-3. Attorney No report. I-4. City Clerk Freas requested council choose a date on which to hold the Christmas party. A number of dates in December and January were presented on which the Senior Center was still available. Council chose Friday, January 12, 1996 as the party date. Freas also reminded council and members of the audience that the nomination petitions for mayor and council positions were available in her office from August 1-15. I-5. Finance Director No report. I-6. Public Works Director No report. I-7. Airport Manager No report. ITEM J• J-1. Citizens Clarence Ladd - Mr. Ladd stated he attended both the Historic District Board and Planning & Zoning Commission meetings at which the Vozar plan for placing log buildings for small businesses was discussed. Ladd added he heard Vozars had purchased a lot of land on Mission Street. He owns a part of a lot on Mission Street. They said everybody has had a chance to buy the other lot. Nobody has, because he was trying to purchase it. Ladd stated he wanted to go on record saying that he owns a lot right beside Fort Kenay. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 25 Ladd also thanked council for looking at the bluff problems and stated he hoped, in the near future, the city will outsmart Mother Nature and do something on Mission Street and put bridges down below to go across. Ladd stated he believed something could be done to outsmart Mother Nature on Mission Street and Ryan Creek. Williams reported Kornelis received some information from the Corps of Engineers with different ideas of what could be done. The city is definitely looking into the situation. J-2. Council Bookey - No report. Swarner - a. Cooperative Extension Open House - Swarner reported an open house would be held at the Warren Larson Experimental Plant Site area on Thursday, from 3-8 p.m. b. Employee Resignations - Swarner requested council be made aware when employees resign from their jobs (retirement, change of jobs, moving from the area, etc.) Swarner noted that Loretta Harvey moved away and Ray Rogers retired and council was not notified. There was nothing in the packet about it. Clerk Freas was requested to write letters to Harvey and Rogers for council. Williams suggested a standard be set to have letters sent. Monfor - a. Float Plane Basin/Fuel System - Monfor asked Airport Manager Ernst asked for an update in regard to gasoline service to the float planes. Ernst reported he had talked with US Bank in Dallas. The last time was two days ago. The bank said they were waiting for some paperwork to be processed, i.e. site assessment and pictures. They did not ask him to do the assessment or take the pictures or he would have had it done. They told him they would do it on their own. Ernst added, he asked the bank representative when they thought they would have the paperwork completed and the account set up. He was told by the end of the year. Ernst stated he told them the season for use of the basin ends when the water freezes. Ernst reported he then spoke with Dale Johnson, a representative of Petrovend. He told Johnson what the bank told him. Johnson said he would check into the problem. Petrovend chose US Bank to handle their accounts. Monfor asked why they did not use a local KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 26 bank. Ernst answered, because the account needs to be with the bank with whom Petrovend has their accounts. Ernst added, he believed the Tesoro station at Airport Way and Willow has their account with Harris bank, which could have been changed to US Bank. It's the same system. Ernst apologized for the matter to take so long to get worked out and added, he was as frustrated by the problems as council. Ernst added, he has 1,000 gallons of gasoline in the tank. Ernst asked if council thought it would be a good advertising gimmick to give the gasoline away, as first -come -first -served until it's gone and then start over next year. Monfor answered she believed something had to be done. It's been two summers there has not be fuel available for patrons. Ernst stated it would be like an advertising gimmick. The city would get rid of the 1,000 gallons of gasoline. Smalley stated Ernst, as the Airport Manager, could make that decision. Smalley added, he thought the giving away of the fuel sounded fine. Ernst stated he would want council's concurrence before giving away 1,000 gallons of gas. Williams suggested council could direct the Airport Manager to make a decision regarding the fuel and the whole matter. Ernst stated he made a decision to have an automated fuel system at the basin and to give the gas away, starting tomorrow. Council made no objections. b. Airport Carpeting - Monfor asked Ernst about the spots on the new carpeting at the terminal. Ernst stated the janitorial service clean and maintain the carpeting. They do clean the spots. The spots change from hour to hour. However, it was not in their contract to keep up the new color of carpet, Monfor asked about cleaning the cigarette butts from the parking area. Ernst stated the janitorial service cleans those up as well. However, the butts reappear in different areas when people drop them. Ernst added, the service really does try to keep up with the problems. They sweep in the morning and at night. Ernst added he would ask them to sweep more. C. Field Trip - Monfor stated she enjoyed the field trip and thought council should try to take field trips on a quarterly basis. Monfor suggested council recommend that department heads review the areas and discuss problems as well. Measles - No report. KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 27 Bannock - Bannock reported he received a complaint from a gentleman who uses the city dock. He was concerned about the amount of silt that builds up. Bannock asked if there was a schedule for cleaning silt from the ramp area, etc. at high and low tides. Kornelis stated there was no real solution other than by dredging. Bannock stated the man thought the silt could be taken out monthly. Kornelis stated they take out silt two to three times a year. Smalley - No report. Swarner - Asked to have the sand and weeds removed from the street in front of Paradisos and other streets and sidewalks. Kornelis stated they did sweep in that area. Williams - a. Privatization of Government - Reported he attended a meeting about privatization of government. There were many interesting discussions. Williams suggested the city consider privatizing the street sweeping. b. Transportation Grant Programs - Williams referred to Information Item No. 6 regarding funding available for transportation upgrades, etc. Some funding maybe could be used for a beach project, making it accessible, etc. C. Information Item No. 7 - Williams referred to the letter from DOT and requested the city not let the chances for funding slip by. d. Bank of America - Williams reported he has heard the Bank of America will be placing a branch office at the new mall. e. Conversation with Tom Kizzia - Williams reported he received a telephone call from reporter Tom Kizzia. Kizzia reported to him there was smelt in the river at the city dock and asked for Williams' comments. Williams stated he referred to the projects and steps the city has taken to insure that the river survives. f. Street Light Request - Williams referred to Information Item No. 10, requesting street lights on Haida Street. Williams asked why street lights weren't a requirement for development of the subdivision. Kornelis stated it was not a requirement. Smalley suggested the request be added to the list formulated at KENAI CITY COUNCIL MEETING MINUTES AUGUST 2, 1995 PAGE 28 budget time. Measles clarified, the request should be placed at the bottom of the list and work its way up as other requests have. Williams stated the city should consider subdividing requirements include installation of street lights, curbs and paving. g. Ice Rink Information - Williams requested council review the ice rink information which was included in the packet. The resolution for placing the matter on the ballot as a proposition will be before council at their August 16 meeting. ITEM K: The meeting adjourned at approximately 10:37 p.m. Minutes transcribed and submitted by: Carol L. Frea , City Clerk APPROVED By Cori➢NCmd DATE