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HomeMy WebLinkAbout1995-09-06 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 6, 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. Max Best - Shore Fishery Leases/Kendall & Thad Carlson. 2. Lynne Johnson - United Way Presentation/Video. 3. Gene Huff - Use of Off -Road Vehicles Along Highway and City Streets. 4. Jim Crocket - Dragnet Fisheries/Water/Sewer Line Request. 5. Arthur S. Robinson - Special Use Permit/Kenai City Dock. 6. Clint Hall - Inlet Woods Lots C. PUBLIC HEARINGS 1. Ordinance No. 1659-95 - Creating KMC 7.15.110 to Provide that the City May Offset Amounts Owed to Contractors by the City Against Amounts Owed by the Contractors for Delinquent City Taxes. 2. Ordinance No. 1660-95 - Amending the Official City of Kenai Zoning Map for Certain lands Described as Lots 3 and 4, Block 8, Shaginoff Subdivision and Within the City of Kenai. no 3. Ordinance No. 1661-95 - Increasing Estimated Revenues and Appropriations by $36,800 in the S.T.P. - Disinfection/Safety Program Capital Project Fund. 4. Ordinance No. 1665-95 - Authorizing the Appropriation of $2,320 in the Congregate Housing Facility Enterprise Fund for Inspection Services for the Solarium, Greenhouse, and Storage Shed Construction Project. a. Motion for Introduction b. Motion for Second Reading (Requires a Unanimous Vote) C. Motion for Adoption 5. Resolution No. 95-49 - Supporting an Amendment to the State Constitution to Allow Establishment of a Dedicated Motor Vehicle Fuel Tax to Support the State's Transportation Systems. a. Remove from table. b. Consideration of the resolution. 6. Resolution No. 95-50 - Supporting Local Control Over Gaming/Gambling in the City Limits of the City of Kenai. a. Remove from table. b. Consideration of the resolution. 7. Resolution No. 95-51 - Transferring $3,000 in the General Fund for an Electrical Connection at the Library. 8. Resolution No. 95-52 - Transferring $7,484 in the Airport Land Fund for Additional Monev for Construction of a Pole Garage Building. 9. Resolution No. 95-53 - Awarding a Contract for the Construction of a Pole Garage Building for the Total Amount of $27,484 to Alaska Building Systems. 10. Resolution No. 95-54 - Transferring $13,600 in the General Fund for Costs to Assemble a Greenhouse. 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 CWIC E. MINUTES 1. *Regular Meeting of August 16, 1995. En G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1662-95 - Increasing Estimated Revenues and Appropriations by $50,000 in a New Capital Project Fund for Phase I and II Environmental Assessments of the Airport Jet Fuel Facility. 4. *Ordinance No. 1663-95 - Increasing Estimated Revenues and Appropriations by $13,890 in the General Fund as a Result of Receiving Two Library Grants. 5. *Ordinance No. 1664-95 - Increasing Estimated Revenues and Appropriations by $3,990 in the General Fund for an Instructor -Trainer to Provide Exercise Classes at the Recreation Center. 6. Approval - Historic Preservation Grant Application 7. Approval - Amendment of Airport Regulation 6.05.010(c)/ Airport Terminal Loading Zone Parking. 8. Approval - Preliminary Plat Approval/5.77 Acres M/L Situated in the NE 1/4 NE 1/4, Section 3, T5N R11W, Seward Meridian - Approval to Plat City Land. 9. Approval - Special Use Permit/Fund in the Midnight Sun Reservation Central - Airport Terminal. 10. Discussion - Land Swap/Borough, City, BOR Lands. 11. Discussion - Goals & Objectives Update. EXECUTIVE SESSION -3- 1. Mayor 2. City Manager 3. Attorney a. Courthouse Contaminated Soils Dispute Settlement 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DISCUSSION 1. Citizens (five minutes) 2. Council K. KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 6, 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 7:00 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: Monfor, Bannock, Smalley, Williams, Bookey and Swarner. Absent was Measles. A-5. AGENDA APPROVAL Mayor Williams requested the following change to the agenda: ADD TO: I-2, City Manager Report - 9/1/95 memo re: 1995 ICMA Conference. 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 stated he had no changes to the consent agenda. MOTION: Councilman Smalley MOVED for approval of the consent agenda as presented and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 2 ITEM B: SCHEDULED PUBLIC COMMENT B-1. Max Best - Shore Fishery Leases/Kendall & Thad Carlson. Best introduced himself and stated he resides at 304 Diane Lane, Soldotna and was appearing before council representing Kendall and Thad Carlson. Best referred to information included in the packet and stated the Carlsons agreed with the recommendations suggested by Manninen in his memorandum of August 23. Best added, the Carlson application would come before council at a later date, after advertising, etc. would be completed. Councilwoman Monfor suggested directing Administration to proceed with the process of advertising the availability of leases. Attorney Graves clarified the procedure, i.e. advertise the availability, P&Z Commission, Harbor Commission and Council consideration. Williams questioned the information in the Kim Howard memo (in the packet) regarding the re -lease of shore fishery leases. Finance Director Brown suggested the present leases have a right to re -lease, but this one (Carlsons) has not yet been leased. Attorney Graves reviewed the code and the past requirement for a six percent market value to determine the lease rate. rn„ncil concurred to proceed with the advertising, etc. in order to go forward with the shore fishery leases. B-2. Lynne Johnson - United Way Presentation/Video. Council and audience first watched a short video which discussed the United Way roll in the community. Johnson explained the Kenai Peninsula United Way has a local board of directors that decide where and how the money raised is divided. Johnson referred to the information included in the packet which listed those agencies on the Peninsula supported by United Way. Johnson requested council consider, as an employee incentive, the City of Kenai matching donations by city employees, fifty cents on a dollar with a cap of not -to -exceed $2,000. Johnson added, the money raised stays within the community. Councilwoman Monfor asked if the city had a payroll deduction program. Finance Director Brown answered yes. Councilman asked if other municipalities in the Borough have agreed to a similar KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 3 matching program. Johnson answered she will be making similar presentations to them. Johnson added, the 1993 campaign brought in $139,000 through matching gifts. Councilman Smalley asked if there would be any difficulties in the city making a lump sum contribution to an organization. Brown answered he did not know of any problems. The city's contribution could be taken out through the payroll system or if proof is shown the contribution was paid individually, the matching contribution could be credited. Councilwoman Swarner asked if there were other organizations the city donates to in lump sum amounts. Brown answered the Boy Scouts, ALPAR, KCHS and the Alternative School. Swarner stated she had a problem with using tax money for matching the donations. Williams stated the city has acted as a pass -through for many of the agencies receiving the funds. They will not be setting a new precedent. They are looking for a matching incentive and choosing who receives donations, etc. is up to the council on an individual basis. Councilman Bannock stated he originally had the same concerns as Swarner in renard to using puhlic money for the match, but r_.ame to the conclusion that it is the same as donating to other non- profits. Bannock added, he would support the match program. He also noted he is involved with United Way as a volunteer, however he did not think that would be a conflict. Councilwoman Monfor asked if Johnson would be speaking to the Borough about this program. Johnson answered Mayor Gilman is the 1995 chairperson for the United Way campaign. An in-house campaign will take place at the Borough also. Monfor, referring to the list of agencies receiving funds, noted eight of the agencies touched some area of the Borough population. She felt strongly that the Borough Assembly should receive the same presentation and opportunity to contribute. The people receiving the funds are all Borough citizens. The Borough should be treated like the municipalities. Monfor added she would support the match program in a spirit of partnership, much like the EDD donation of several weeks ago. She hoped the match program would entice employees to contribute. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 4 MOTION: Councilman Bannock MOVED to enter into a program where the City of Kenai matches fifty cents on the dollar of contributions made by the City of Kenai employees to the United Way for a sum not - to -exceed $2,000 for this fiscal year. Monfor requested "in a spirit of partnership with other municipal entities" be added. Bannock had no objection. Councilman Bookey SECONDED the motion. VOTE: Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: No MOTION PASSED. B-3. Gene Huff - Use of Off -Road Vehicles Along Highway and City Streets. Mr. Huff introduced himself, stating he resides At lln Wooded Glen Court in Kenai. Huff referred to his letter which was included in the packet. He stated he was very impressed with the Sterling Highway road upgrade project, but appalled by the destruction along the rights -of -way due to the use of off -road vehicles and motorcycles driving on them. He called DOT and stated his concerns and was told they never received a complaint before. Huff stated his concern that the same may happen to the rights - of -way in Kenai after the highway project is completed and has happened along city streets. Huff reported he has called the Kenai Police a few times. They told him the use of off -road vehicles were not allowed on city streets and where it is semi - legal is the ditches. Huff added, he guessed the police turn their heads when they see off -road vehicles used along the ditches. Huff requested the city elevate the enforcement of its ordinance, including (d) of the ordinance, which states off -road vehicle operation is unlawful "on any city or state road right-of-way that has been landscaped, seeded, or otherwise improved.10 Huff's KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 5 concern is that the newly seeded rights -of -way along the highway upgrade in Kenai will be destroyed like that of the Sterling Highway area. Councilman Smalley stated Huff was not alone in his concerns. The council and Assembly have dealt with similar concerns. The City of Soldotna prohibits the operation of off -road vehicles in the city limits. Smalley stated he doesn't disagree with more effort in enforcing the ordinance, but it is a problem to put a patrolman on enforcing the whole area. Smalley suggested the ordinance be amended to prohibit the use of off -road vehicles in the city. Huff stated the ordinance spoke to the areas of his concern and suggested signs be placed so that the public is aware of the ordinance. Students at the high school have told him they can use the rights -of -way and when they see a patrolman, they drive slower. If they are not wearing a helmet, the police turn their heads or if they stop them, they tell them they shouldn't be driving without a helmet. He is concerned the kids have the message that it is okay to drive off -road vehicles off the streets. Lt. Kohler stated it is allowable to operate an off -road vehicle on the right-of-way as long as the operation of the vehicle is not on a seeded area. Williams stated the council would pledge to support the ordinance and inform the public. Smalley and Bookey agreed. Bookey added he felt strongly about the use of the vehicles and the destruction they cause. Bookey requested DOT be contacted and ask that signs be placed in the city core area. If DOT cannot, have the city sign the area. Williams suggested the code be strengthened and outlaw the use of these types of vehicles in the city if the destruction continues. Smalley agreed to request DOT to sign the area and if they are not willing to do it, the city should. Williams directed Kornelis to contact DOT and request signage along the new area. Williams added, it is council's intent to eliminate the use of off -road vehicles along the improved shoulders of the new road. Huff asked if signs would be placed along the bike path also. Manninen stated he was not certain that it is obvious that the bike trail would not be able to be used by bikes, pedestrians, KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 6 three-wheelers, four -wheelers. He was not sure what the state requirements are. Williams stated under the city code, they are not allowed to. Sometimes a deterrent can be added, i.e. gates blocking the path, that will allow bikes to pass through, but not three-wheelers. Councilwoman Monfor stated after listening to the discussion, she wondered why the operation of the off -road vehicles are allowed in the city. Huff added, banning the use of the vehicles in the city would remove any loopholes of the ordinance. Smalley suggested in areas such as Beaver Loop, they could remain legal. Williams suggested an advertisement could be placed in the paper stating the council is seriously considering the outlawing of the vehicles' use in the city and request written comments from the public. Bannock stated he thought banning the use of the vehicles would be dangerous over all. The problem is enforcing the ordinance. Bookey stated he partly agreed with Bannock. He wouldn't have a problem with allowing them in the Beaver Loop area, but does not want them used in the core area. He would like receiving comments from the public. Williams concluded by stating the council is well aware of the problem. They will be watchful, will request DOT to sign the areas, request_ the police to enforce the ordinance to the fullest extent and modify the ordinance if needed. Monfor suggested Huff write to the legislators and request that drivers of off -road vehicles, etc. must be licensed. B-4. Jim Crocket - Dragnet Fisheries/Water/Sewer Line Request. Mr. Crocket introduced himself and also Milton Hancock who also works for Dragnet Fisheries. Crocket stated they wanted to bring the idea of extending the sewer line along Bridge Access Road forward. They are not looking for immediate relief. They will be discussing the matter with their neighbors along Bridge Access Road and submit a more concrete proposal in the next two to three months. Crocket added, Dragnet Fisheries has been in operation for 17 years. Over that period of time they have employed thousands and paid millions of dollars in payroll. Recently they have had a lot of operational difficulties from the state and federal KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 7 regulatory bodies. It is getting increasingly difficult to operate their business without a sewer system. Williams asked if engineering was done for that water and sewer line. Kornelis answered he believed there was one for water, but not for sewer. Williams asked Crockett with the new regulations and concerns of protection of the river, how he sees the future of the now existing program of elimination of waste from the plants? Does he see in the future a situation where the state will require them to handle waste fish products in another manner than how they handle them now. Hancock stated he had not heard anything yet. Crockett added, they feel they will be more highly regulated, but have not heard anything for sure. Williams stated he has been concerned about this. The City of Kodiak had arranged to have a fish meal processing facility. Williams asked if that is something that may happen here and if the processors have discussed the matter. Williams added there are some in the area who have asked the EDD to investigate the cost of such a facility for in this area. Crockett answered they would like to have such a feasibility study done also. R-5, Arthur S. Robinson - Special Use Permit/Kenai City Dock. Mr. Robinson introduced himself and stated his address to be Box 3519, Soldotna. Robinson stated he requested and was granted a special use permit to operate his Ship -to -Shore Tour business for the summer. The permit is to end September 30, 1995. Because of the lack of business, they closed the operation on August 31. Robinson requested to be released from the special use permit from September 1 to 30, 1995. Bookey asked if he intended to come back next year. Robinson answered at this time he does. Robinson added they learned a lot from the operation of the business. They are considering starting earlier next year. Williams stated he was pleased the operation of the business took place and had no reservations in the requested release. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 8 MOTION: Councilman Smalley MOVED that the City of Kenai terminate the lease with Ship to Shore and take the necessary and appropriate steps for the balance of the payment at approximately $287.88 which is stated in Mr. Kornelis' memorandum dated August 31. Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. B-6. Clint Hall - Inlet Woods Lots Hall explained he owns five lots in Inlet Woods which he acquired through a sale. He purchased 50 of the lots. They have pre -sold five of the lots. The secondary closing never took place and they never committed to build houses on the lots. Now they would like to build five houses in the subdivision, however the lots are a distance away from the main power transformers. They received an estimate that it would cost $7,500 to service electricity to the lots. They did not investigate the costs of telephone and cable to the lots. Instead of letting the lots be idle, they would like to build on them. They are requesting that three of the five lots be deeded back to the developer and take three of the developer's lots /mhirh arc ,i_n between his lots), They would then be able to qet a discount for placing the power to the lots. In the proposed swap, they would have to pay back taxes of approximately $1,800 a lot. This would be more feasible than paying the $7,500 to get the electricity to the lots, plus the telephone and cable. Adding those costs to the lots would make them too expensive. Hall stated he spoke with Attorney Graves about his proposal and is not aware of any consequences it may have to the city. He is asking to do a warranty deed, deeding three of their lots back to the developer and another warranty deed from the developer to him for three of his lots. The city would need to sign a release of interest on the new three lots. His old three lots, which are clear of any liens or liabilities, would be recorded back to the developer. If there are any judgments or anything in that subdivision, they would be automatically attached. This should keep the city in a neutral position. It would give him the opportunity to build on the five lots. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 9 Williams stated the city has struggled with this problem for almost nine years; six in litigation. Every time the city has tried to work out a deal which would help the situation, the city has found itself in a deeper quagmire than it was previously. Williams added he attended a bankruptcy hearing in regard to that litigation. He found it to be quite obvious that the situation is not close to being solved. Williams added, he thought it premature for the city to enter into any kind of a transaction that would upset the balance of ownership in any direction for fear that it might drag the city into further litigation between the parties. It was astounding to him the things that can be pulled up and argued about in court. He is afraid that if council would approve a transaction such as Hall proposes, the developer would find some reason to come back and say that the proposed policy should occur to all other lots within the case. Williams stated he was not sure the council could help at this time. A resolution to the litigation may be found by next building season, but it is hard to tell. Because the matter is in litigation, he is very touchy about going into any kind of transaction (in regard to Inlet Woods lots) at this time. Councilman Smalley asked, should the lots in question be lots the city may end up with again, are there other assessments against them that the city would be interested in regaining (approximately $16,000 per lot)? Finance Director Brown answered yes, probably higher. Williams added, if and when the situation is settled to the degree that both parties can agree and if the city does come into ownership of the properties, at that time, the city would have to assess the entire issue of value of property. A value of property may have to be set based on fair market appraisal regardless of what the actual owing of debt is against the lots in order to market them. Now it is only speculation. It could be three months to three years before the matter is resolved. He didn't think there was any logical way to go ahead with Hall's proposal at this time. Hall stated they were looking for an opportunity to get rid of their lots. The lots are valued at about $15,000, but their real value is about $5,000 with the cost of the power needing to be brought to them. They are paying property tax on the lots and they would like to relieve themselves of paying the property KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 10 taxes. Hall added he understood the question the city has. He had not thought of that side of it. If it doesn't make good sense for the city, he would have to agree with the city. Williams stated he did not think the council could help him. Hall stated he appreciated the input. BREAK TAKEN: 8:00 P.M. BACK TO ORDER: 8:15 P.M. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1659-95 - Creating KMC 7.15.110 to Provide that the City May Offset Amounts Owed to Contractors by the City Against Amounts Owed by the Contractors for Delinquent City Taxes. MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1659-95 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilwoman Swarner stated she requested the ordinance be offered. She added, she felt when the city is owed money by a contractor, it should try to get the money. The ordinance is mirrored after the Borough ordinance. Swarner asked support from other members of the council. VOTE: Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-2. Ordinance No. 1660-95 - Amending the Official City of Kenai Zoning Map for Certain lands Described as Lots 3 and 4, Block 8, Shaginoff Subdivision and Within the City of Kenai. MOTION: Councilwoman Monfor MOVED for adoption of Ordinance No. 1660-95 and Councilman Bannock SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 11 There were no public or council comments. Williams stated he would not support the ordinance. He voted against the Board of Adjustment decision. He feels it is premature to change the zoning at this time. VOTE: Monfor: Yes Smalley: No Swarner: Yes MOTION PASSED. Measles: Absent Bannock: Yes Williams: No Bookey: Yes C-3. Ordinance No. 1661-95 - Increasing Estimated Revenues and Appropriations by $36,800 in the S.T.P. - Disinfection/Safety Program Capital Project Fund. MOTION: Councilman Bookey MOVED for adoption of Ordinance no. 1661-95 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-4. Ordinance No. 1665-95 - Authorizing the Appropriation of $2,320 in the Congregate Housing Facility Enterprise Fund for Inspection Services for the Solarium, Greenhouse, and Storage Shed Construction Project. C-4a. Motion for Introduction MOTION: Councilwoman Monfor MOVED for introduction of Ordinance No. 1665- 95 and Councilwoman Swarner SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 12 VOTE: Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. C-4b. Motion for Second Reading (Requires a Unanimous Vote) MOTION: Councilman Smalley MOVED for the second reading of Ordinance No. 1665-95 and Councilwoman Swarner SECONDED the motion. Councilman Smalley requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-4c. Motion for Adoption MOTION: Councilman Smalley MOVED for adoption of Ordinance No. 1665-95 and Councilwoman Monfor SECONDED the motion. There were no public comments. Councilwoman Monfor suggested another process could be found for introduction and passage of an ordinance in one meeting as it is very confusing. Williams stated under the rules of order, this was the appropriate procedure. Monfor asked if a purchase order could have been done. Finance Director Brown answered the problem was there was less than $2,000 in the building account. An appropriation ordinance was necessary. Monfor asked why the work could not be inspected in-house. Kornelis answered it was a possibility, however the building inspector did not have the time due to other projects. Architect Kluge designed the project and knows what has been specified. It will be more efficient to have Kluge do the work. Monfor added, she thought it would be better to use a city employee who is licensed to do the work. Williams stated outside contractors will be used to do the construction and an outside architect has been used for the design. It is state money funding the project. There are probably many reasons why the city should have an outside view of the work. It is like $2,300 worth of insurance. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 13 Brown corrected Williams; the project is funded by enterprise money, not state money. Kornelis added, the contractor has been given the notice to proceed. Swarner suggested the work be done in-house. Bannock stated he thought this was something that could not be done in-house. Bannock asked if there have been other times that the inspection work could have been done in- house. He added he thought the city should capitalize on its in- house assets whenever possible. Kornelis answered there is very little that cannot be done in- house, but the problem with this is time constraints. There are many other buildings in town which need to be inspected. Kluge is familiar with the project, etc. There are liability considerations as well. Williams stated the cost is like an insurance policy to insure the design requirements are done the way the architect specifies. He wants someone out there to go back to if the construction is not done correctly. VOTE: Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: Yes Bookey: Yes Swarner: VPs MOTION PASSED UNANIMOUSLY. C-5. Resolution No. 95-49 - Supporting an Amendment to the State Constitution to Allow Establishment of a Dedicated Motor Vehicle Fuel Tax to Support the State's Transportation Systems. C-5a. Remove from table. MOTION: Councilman Smalley MOVED to remove Resolution No. 95-49 from the table. Councilwoman Swarner SECONDED the motion. Williams reported there was a broad discussion about the establishment of a dedicated fuel tax at the Alaska Conference of Mayors. There does not appear to be a lot of support for one because state funding already received for highways and transportation may be more than a motor fuel tax could collect. This could cause a shortfall. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 14 Councilman Bookey reported the AML Board of Directors had a similar discussion. He does not think a fuel tax would go anywhere stateside. Williams suggested voting it down will send a message to the legislator that the city is not in favor of a fuel tax. VOTE ON THE MOTION TO REMOVE FROM THE TABLE: There were no objections to remove the resolution from the table. C-5b. Consideration of the resolution. Councilwoman Monfor called for the question on the resolution. VOTE ON THE RESOLUTION: Monfor: No Measles: Absent Bannock: No Smalley: No Williams: No Bookey: No Swarner: No MOTION FAILED UNANIMOUSLY. C-6. Resolution No. 95-50 - Supporting Local Control Over Gaming/Gambling in the City Limits of the City of Kenai. C-6a. Remove from table. MOTION: Councilman Smalley MOVED to remove Resolution No. 95-50 from the table. Councilwoman Swarner SECONDED the motion. Smalley asked, in discussion of the ordinance at the last meeting, were the points at issue clarified as far as multiple beneficiary, singles, etc. He added, in his reading the resolution it appears to be clarified, but wanted to be sure. Attorney Graves answered he believes they had been. VOTE TO REMOVE FROM TABLE: Councilman Smalley requested UNANIMOUS CONSENT for removing the resolution from the table. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 15 Williams reported he will send a copy of the resolution to from Commissioner Condon. C-6b. Consideration of the resolution. Iv Colo0colz Councilman Smalley MOVED for approval of Resolution No. 95-50 and requested UNANIMOUS CONSENT. Councilman Bannock SECONDED the motion. There were no objections. SO ORDERED. C-7. Resolution No. 95-51 - Transferring $3,000 in the General Fund for an Electrical Connection at the Library. fM(03*to)�F Councilwoman Monfor MOVED for approval of Resolution No. 95-51 and requested UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-8. Resolution No. 95-52 - Transferring $7,484 in the Airport Land Fund for Additional Money for Construction of a Pole Garage Building. MOTION: Councilman Bookey MOVED for approval of Resolution No. 95-52 and Councilwoman Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. Acting Airport Manager Holland explained the pole garage will house the Airport Manager and Assistant Airport Manager vehicles and tractor. It will be placed on the north end of the airport terminal. VOTE: There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 16 A short discussion followed regarding the new airport terminal carpet and the disappointment of the placement of the carpet and its performance. C-9. Resolution No. 95-53 - Awarding a Contract for the Construction of a Pole Garage Building for the Total Amount of $27,484 to Alaska Building Systems. MOTION: Councilman Bookey MOVED for approval of Resolution No. 95-53 and Councilwoman Swarner SECONDED the motion. Councilman Bookey requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. SO ORDERED. C-30. Resolution No. 95-54 - Transferring $13,600 in the General Fund for Costs to Assemble a Greenhouse. MOTION: Councilwoman Swarner MOVED for adoption of Resolution No. 95-54 and Councilwoman Monfor SECONDED the motion. There were no public comments. Bookey stated he thought they were told there would be no problem having the greenhouse assembled in-house. Parks & Recreation Director McGillivray answered, the parts arrived late and now the Street Department is gearing up for the winter. Also, he and the engineer reviewed the directions and found they were more complex than what they anticipated. McGillivray added, the greenhouse will have water lines, electricity and gas included. Bookey stated he thought this was a lot of money to assemble the greenhouse. Bannock stated he would not support more money to have the greenhouse assembled. He objected to unanimous consent. Bookey added, during budget sessions, the cost of the greenhouse was stated to be $10,000. Now council was being asked to appropriate another $13,600. If the cost for assembling the greenhouse had been included during budget discussions, he would have said no to ordering it. He was not comfortable to spend KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 17 that much for the greenhouse. $10,000 has been invested in it. He was not comfortable about letting it lay either as parts get lost, etc. In the future things need to come to council as a complete package and not piece -meal. Williams suggested the assembling could be done in-house, but it wouldn't get done until next spring and then the greenhouse would not be available for use for the spring planting season. Williams added he had received many compliments in regard to the flowers and landscaping program of the city from the public. He agreed that the total package should have been represented, but now they should probably go ahead with the assemblage. Williams asked Brown how much money had been taken from contingency in the present budget year. Brown answered the contingency fund started with $75,000. There were two resolutions appropriating money from the fund which used $3,000. The new balance of contingency, after subtracting the 13,600, would be $59,000. Brown added, he was concerned that this is only the third month of the fiscal year. Councilman Smalley stated his agreement with Bookey. If $26,000 was requested for a greenhouse during the budget sessions, he would have said no. Since it was represented the assembling could have been done in-house, he didn't have a problem with the $10,000 cost for the greenhouse. He believes the greenhouse is needed to take care of the city plantings. He agreed that letting it sit around all winter was not advisable. Smalley added he would support the resolution, but if a similar request occurs again, he will vote no. Councilwoman Monfor stated she did not want any department to think she was against them, however, this was the second time during the meeting, because of other commitments, the city had to go into other funds because the work couldn't be done in-house. Monfor advised, when budgeting, council needs to look at the time involved in assembling, etc. and manpower hours required and plan for it. She added, she would support the resolution because she believed money would be saved in the long run. Bookey stated, it was presented to council that the work could be done in-house. He added, he gets uncomfortable when administration comes back for more money. The cost of the assembling is more than the cost of the building. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 18 Williams asked where the greenhouse would be located. McGillivray answered by the cold storage area on a gravel pad. Williams added, if a new shop would be constructed in the future, he would not want the greenhouse to have to be moved. C'�443 Monfor: Yes Measles: Absent Bannock: No Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reported the next meeting will be held on September 19. D-2. Airport Commission No report. D-3. Harbor Commission Councilman Bookey reported the next meeting would be held on Monday, September 11. D-4. Library Commission Councilwoman Monfor reported a meeting had been held last night. There was a good discussion regarding the expansion plans and how to get people to go out to vote. Monfor added, the Commission is in need of a student representative also. Williams asked Mr. Bob Peters (Commissioner who was in the audience) for comments in regard to the Commission's discussion and choice of $3 million for the expansion. Peters answered the Commission based their findings on the estimate given to them by the architect. They believe the actual construction, etc. will come well under the $3 million figure. A short discussion followed regarding the mil rate increases that may be caused by the passage of the propositions. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 19 Councilman Bannock requested review of a statement made in the Commission's meeting minutes at page 3, paragraph 3. Councilwoman Monfor stated she would bring it to the Commission's attention at their next meeting. D-5. Parks & Recreation commission Councilman Bannock reported the next meeting would be held September 7. Williams referred to the application of Michele Fahnholz (for student representative to the Commission), included in the packet. Councilman Smalley added, he requested Ms. Bingham at KCHS to find student interested in applying. He understood there would be more applications forthcoming, however this applicant would be a good as a student representative. There were no objections to the appointment of Michele Fahnholz as the student representative to the Parks & Recreation Commission. D-6. Planning & Zoning Commission Councilman Smalley reported a plat and utility easement vacation (Thompson Park), subdivision plat and landscaping/site plan review were approved or amended and approved at their 8/23/95 meeting. There was also a Townsite Historic zone continuation of review (addition of a second story to a building). Also a variance request was voted down after much discussion and a lot of voiced opposition to the project. Smalley added, there was comment by a commissioner in regard to the old Fire Department tanker truck's use after being condemned because of the water tank being dangerous, etc. The council purchased a new one. The commissioner brought it to his attention that the truck was being operated again with the tank on it. Council was told it would be modified. Smalley added, the commissioner's comment, of which he would have to agree, was that the truck was being operated on the roads, with the tank on it and water in the tank. He was told the truck had been modified. It was represented to council the truck was not safe if it was operated with a load of water. If it was represented that it was not safe to be operated on the roads with the tank on it and water in the tank, then it should not be used. Smalley asked if it could be confirmed that the truck was being used. Williams asked Manninen if he could respond to the matter. Manninen stated he could respond that the tanker truck had been KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 20 used during the summer, but not by the Fire Department. He was not aware of any other use of the truck other than Public Works. Smalley added, part of the discussion held was what would happen if the truck was driven down the road with a load of water in it and, it being unsafe with that kind of weight and ratio, etc., it hit another car. If it's out there again we should not be having it on the road. Smalley added, he thought that the truck could be utilized again if the tank were removed and used for some other type of project because it is the tank that is the problem. Manninen stated that he thought it was the tank and was also the Fire Department's use and the use as an emergency -type vehicle. It was used for watering flowers or watering the roads for oiling. Kornelis stated it was used one time of which he was aware. That use was for compacting the ground after the sewer repair done at the corner of Fidalgo. The tank was not filled with water. It was slowly brought down the road. He didn't think it was unsafe to drive it at slow speeds. Modifications can be made to make it safer. They are looking into that possibility. Manninen stated the tank was not full of water or used for an emergency at an unsafe or fast rate of speed as you would necessarily need if using the vehicle in an emergency situation. If they are going to respond, they need to know thev have something to respond with on a full tank of water and that you're going to get there in time to do something. If watering flowers or compacting roads, it wouldn't make a difference if you're using a full tank there as long as you get there and do the job. Manninen added, he was not aware of the truck being used for anything else. Kornelis stated it is not an unsafe operation. Smalley replied, he believed that was part of the discussion when council decided to purchase another tanker truck; that it was not safe on the roads and what made it unsafe was the tank. Councilwoman Monfor stated the tanker truck has been a bone of contention from the beginning. The council voted to replace the truck because the Fire Chief informed them it was not safe when it was full of water. Council replaced it and the city is still using it. If the truck can't be used with a tank full of water, why can't the tank be removed and use the truck body. It was her understanding the body was still in good shape. Monfor added, the tank could be used for oiling, but don't put any more water on it. Williams added, he remembered one of the reasons the KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 21 truck was not given to the Circle Track Association was because it was represented that the truck was not safe. Bookey stated the issue had been taken to whether the truck is driven fast or slow. Monfor replied, the issue was, the truck was not safe. Bookey added he thought it was unsafe as an emergency vehicle, but if it is a constituent's issue he thought it better to get rid of the truck or remove the tank, make the truck into something else and sell the tank. Williams suggested, if the truck is usable and the tank could be modified to the point that the truck and the tank on the truck could be used safely, maybe Public Works should come back with a design to make it safe to be used on the roads. Bannock stated he discussed the matter with a department head and was told there was a way to do it. The truck would not make a very good fire truck, but could be used for watering flowers. Kornelis stated, the Fire Department said there was a problem when there was too much weight on the back axle. Part of the tank could be removed to make it not as heavy. They didn't put as much water in it. Bannock added, the discussion was, however, the truck was not safe if it was not full of water. Kornelis mentioned there are baffles in it too. Bannock stated, the council was told that the truck was not safe in the present use and capacity. Council voted to buy a new tanker truck because of that and because of that, there is an appearance of evil. Williams suggested administration come back with an answer as to how it could be used safely or how it could be modified to use it safely and economically. Chief Burnett stated there were two concerns: (1) it was not baffled correctly, so they went from 5,000 gallons to 3,000 gallons of water in it. (2) Their drivers did not have the capability for driving it safely. All the fire trucks are automatic. With an experienced driver and better baffling, maybe it could be used. Councilman Smalley asked who in the Parks & Recreation Department was driving it. McGillivray answered they did not use it. Kornelis added, the only time he knew of anyone driving it was an equipment operator who used it on Fidalgo Street for compacting dirt. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 22 Williams suggested administration review the situation, i.e. if the truck can be used safely in the city or can be modified, and if it can be modified, can it be used safely and properly. If it is determined it cannot be used safely and properly, it should be put up for auction. Swarner stated it sounded like no one could drive it. Kornelis stated one person from the shop can. Smalley stated he did not have a problem with it or Commissioner Goecke discussing it, but if the information given to council (when they replaced it) was to remove the tank or reduce the size of the tank, then the city is obliged to do that. Williams requested administration bring back a recommendation in regard to the tanker truck. D-7. Miscellaneous Commissions and Committees Historic District Board - Williams referred to the update information in regard to the Board's membership which was included in the packet. Williams noted there needs to be three members from the professions of history, architecture or architectural history and archeology. Smalley stated he knows of someone with an architectural history background who may be interested in an appointment. He will pursue an application. Bookey requested a letter be sent to Mr. Malanaphy and thank him for his participation on the Board. Bookey, referring to Malanaphy's letter included in the packet, said he did not think Malanaphy could represent the city as a member of the Board while living out of state, even though he will travel to the area once a month. Freas was requested to send a thank you letter to Malanaphy for his participation and add the city will welcome his input in the future. ITEM E° MINUTES E-1. Regular Meeting of August 16, 1995. Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 23 ITEM F: None. ITEM G: OLD BUSINESS None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Monfor MOVED to pay the bills over $2,500 and Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 MOTION: Councilwoman Monfor MOVED to pay the purchase orders over $2,500 and Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED. H-3. Ordinance No. 1662-95 - Increasing Estimated Revenues and Appropriations by $50,000 in a New Capital Project Fund for Phase I and II Environmental Assessments of the Airport Jet Fuel Facility. Introduced by consent agenda. H-4. Ordinance No. 1663-95 - Increasing Estimated Revenues and Appropriations by $13,890 in the General Fund as a Result of Receiving Two Library Grants. Introduced by consent agenda. H-5. Ordinance No. 1664-95 - Increasing Estimated Revenues and Appropriations by $3,990 in the General Fund for an Instructor -Trainer to Provide Exercise Classes at the Recreation Center. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 24 Introduced by consent agenda. H-6. Approval - Historic Preservation Grant Application MOTION: Councilwoman Monfor MOVED to allow the Historic District Board to apply for the grant and Councilman Smalley SECONDED the motion. Councilwoman Monfor stated the signage is very important. Monfor asked if the city would have to match the $6,000 grant. Answer given was at least 40% of the amount. Williams asked if there was a guarantee the city would get the 60% back. Brown answered after the grant is received, the contractor doing the work bills for the work. The city pays the contractor. With the grant award, there is a guarantee that the 60% money is paid back. Monfor suggested that if the motion is not passed at this meeting, that the signage project be presented to Kim Booth for review by the Visitors and Cultural Center Boards. There is a possibility they could undertake the project. Bookey stated he did not think signage would be a viable project, according to the grant information included in the packet. Monfor suggested to table the motion and give the Visitors & Cultural Center boards time to review and discuss the project. Monfor added, if they are willing to take on the project, they would work in conjunction with the Townsite Historic Board. Bannock questioned the wording of the grant information wherein it states after spending money, the grantee can request reimbursement. He was concerned that there could be a chance that the grantor could decide not to reimburse the costs spent. Brown explained he thought the sentence was written poorly. There is a grant agreement which directs that reimbursement is made. Manninen added, on a reimbursement grant, the city would get the grant first and to get the $6,000 maximum match, the city would have to spend, after getting the grant, spend $10,000 and apply for reimbursement and get the $6,000 after applying for the reimbursement and the work is finished. Williams added, the project would not move ahead until the grant is awarded. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 25 WITHDRAWAL OF MOTION% Councilwoman Monfor withdrew her motion with approval of the second. Councilman Smalley, the second, had no objection. Monfor suggested that if the Historic District Board wants to apply for the grant, more specifics are needed. She added, she believes the signage is a very good idea, but there may be other options for financing the project through the Kenaitze Tribe or the Visitors Center. Councilman Bookey agreed with Monfor but requested more specific information be presented to council from the Historic District Board, i.e. what the money would be used for; what would the signs look like; where would they be placed; what other funding options have they discussed. H-7. Approval - Amendment of Airport Regulation 6.05.010(c)% Airport Terminal Loading Zone Parking. Councilman Smalley MOVED for approval of Item H-7, amending the Airport Regulations as submitted. Councilwoman Monfor SECONDED the motion. Williams asked for comments from Manninen. Manninen answered that he reviewed it and signed it. He added, it meets the requirement discussed at the last meeting. Bookey stated he did not have any objections to the amendment, but he hoped airport personnel would be sympathetic. Williams stated he had the same concerns. Smalley stated the issued is that the existing ordinance meant you could not leave a vehicle unattended and the amendment allows that to take place. Smalley added he thought the amendment cleaned the regulation up. Bookey stated he understood that, but there have been problems before of how regulations have been enforced. Is the 20-minute allowance a hard and fast rule. He understands there would be a problem if a car was parked for an hour. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 26 Bannock stated when he first reviewed the amendment and spoke with Airport Manager Ernst, he liked the amendment. Now he is not comfortable with the new wording. Is the 20-minute allowance for anything you want to do in the airport or only for purchase of tickets, dropping off or picking up a passenger or luggage? Ernst put the wording in so people wouldn't be parked there and talking on the phone. Bannock suggested eliminating the portion that defines what a person has to be doing to be allowed to park there. Smalley stated he believed the intent for parking in front of the airport termination is to enhance the traveling public. If airport personnel are looking for vehicles who have parked for 26-28 minutes, then there is a problem. Smalley added, he thought the amendment cleaned up a problem. Williams asked what a reasonable time was. Monfor stated the ordinance doesn't say 20 minutes, the signs in front of the terminal do. Monfor added her concern that there are sometimes extenuating circumstances that may keep people in the terminal longer than 20 minutes, i.e. long ticket lines in the summer and winter. She added, it would not be serving the public to tow a car of someone while they are waiting in a ticket line. She believes the intent of council is to serve the public, not towing cars. Bookey stated he hoped management is realistic on how the regulation is enforced. VOTE: There were no objections to the motion. SO ORDERED. Monfor added, the message is that reasonable people deal in a reasonable manner. Do it in the spirit of partnership with the traveling public. Williams added, if it is troublesome as written, it can be amended. H-8. Approval - Preliminary Plat Approval/5.77 Acres M/L Situated in the NE 1/4 NE 1/4, Section 3, T5N R11W, Seward Meridian - Approval to Plat City Land. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 27 yrol • } Councilman Smalley MOVED for approval of Item H-8, preliminary plat approval as described. Councilwoman Monfor SECONDED the motion. Smalley explained, the approval of the plat will clear up the situation of access to the property behind the golf course. The matter was reviewed by the Planning & Zoning Commission and approved. Attorney Graves added, the access to the property is a requirement of the Jones lawsuit settlement. The right-of-way will give access. Because the city is the property owner, it must approve the plat. The P&Z approval was contingent upon the signing of an installation agreement by the developer, which would cover street, drainage and miscellaneous. It is thought that if the council did not approve the plat, the developer could still build a road. In the long term, approval of the plat and building of the road will provide development of lots and houses behind the golf course. Graves added, it is his understanding Mr. Morgan has reviewed the matter and has stated the road would not interfere with the use of the golf course. Discussion followed as to the width of the right of way, etc. Williams asked if there would be enough ground to put in the road and not ao into the wetlands. Kornelis answered it is the developer's responsibility. They feel it would be better to give the right-of-way instead of building the road on the section line. The developer will have to acquire Corps permits, etc. Williams suggested that it be made a part of the approval that if and when the road is built, it is built to city standards. Graves state the installation agreement will do that. Bookey asked if it would absolutely forbid the developer to build the road unless done to specific requirements? Smalley answered, the installation agreement is a mandate. Williams stated he was concerned that there is recommendation, but it is broad and doesn't say to what extent the road must be built. He would like the road built to city standards. Kornelis explained that when the right-of-way becomes a dedicated right- of-way (with plat approval), then there is an installation agreement. Swarner pointed out there have been a lot of roads in Kenai that were not built with installation agreement. Smalley stated the Planning & Zoning Commission discussed the matter with City Engineer La Shot. Some of the same questions KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 28 came up. La Shot said what Kornelis said. The installation agreement says the developer won't be able to anything without it being done right. In approving the plat, this will occur, however if the plat is not approved, and the developer doesn't build the road, the city will have to at its expense. The development of road is a result of a lawsuit the city lost. This will remedy the situation. Williams suggested the question could be cleaned up by adding in No. 1 of the recommendations on the staff report, "An installation agreement to construct to city standards Swires Drive from Lawton south...." MOTION: Councilwoman Swarner MOVED to have "to city standards" added to the recommendations of the installation agreement. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-9. Approval - Special Use Permit/Fund in the Midnight Sun Reservation Central - Airport Terminal. Councilwoman Monfor stated she would like to postpone the approval of the permit until the information can ha forwarded to the Visitors' Center board for their review. She believed their input should be reviewed prior to a vote by council as their function is similar to what this reservation business would be doing. Smalley reminded council that they directed the airport manager (at their last meeting) to discuss with Kangas the possibility of leasing the space for the whole year instead of three months. Kangas (the applicant) has agreed to lease the space for the year. The hoop put up by council has been taken care of and was concerned the council was adding more hoops. Monfor stated she believed that was her fault. She stated she believed the Center's input is important. Some of the people who are members of the Center are bed tax people in the community. They should have a chance to discuss and review the proposal. It would affect a lot of businesses in the community who are members of the Center. They should have a chance to discuss the matter. Councilman Bookey stated the matter came before council at their last meeting. Since then, he thought about the situation for KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 29 some time. He is a firm believer in private enterprise, but has a problem with this situation. He believed the reservation business would be a direct conflict to the Visitors Center and could hamper city constituents by developing businesses out of the city. Bookey added, the lease price maybe should be determined by fair market value. Bookey stated he would oppose the permit as he believed the hotels and bed & breakfasts would go into an uproar when hotels out of Kenai are propagated. The hotels and bed & breakfasts fund the Center by paying bed tax. Williams recognized Barbara Kangas and requested she speak with council. Williams explained the council's concern as the city passed a bed tax to support the Center to entice more tourism into the city. Approximately $95,000 a year is generated by bed tax. This plus additional funds goes toward supporting the Center. He is concerned that there will be businesses outside the city receiving the bookings. He is concerned that there will be damage to city businesses. How much will be offered to businesses other than the city of Kenai. What will the hotel owners (in the city) say if council allows businesses outside of the city to be booked. Bannock stated that Kangas (in her proposal) said she would be booking people in the same hotels. Williams replied that if ten percent of her bookings go to another hotel, it is ten percent too much. Hotels out of the city are not contributing to the support of the Center. Monfor pointed out that there are a lot of Soldotna businesses, i.e. bed & breakfasts, fishing guides, etc. are members of the Visitor Center. That is why she thought the matter should be reviewed by the Visitors Center board. She didn't necessarily have a problem with Kangas' business. Monfor added, the Center has members from all over the Peninsula. It makes sense for them to review the proposal. Williams suggested that the Visitors Center extend there services to this area, specifically to the businesses in the city of Kenai. Williams again stated his concern that any rooms rented outside the city would deter the bed tax to go the Center. Council's allowing this business there could destroy its credibility to the businesses in the city. Smalley suggested then the bed & breakfast advertisements, etc. at the terminal which are businesses outside the city, should be removed from the kiosks. Williams stated there was a difference in advertising and booking the rooms. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 30 Barbara Kangas - Owner of Fun in the Midnight Sun Reservation Central. Kangas stated she took exception to the comments made that a business she developed is going to be lent over to someone else to develop. She is a taxpayer, business owner and member of the Visitors Center, she was taking exception to a concept she developed being offered to someone else. Bookey stated that was not the case, but that she was asking council to subsidize her business at the airport through a low rental rate. Kangas stated she did not set the rate and was willing to pay the same amount as other counterspace rentals. Williams stated to set the amount aside. What they were discussing was the concept of allowing someone to use the airport to book rooms outside of the city. Kangas explained she would have an equal amount of space open for bookings in each area. She would be bringing sales into the terminal. With her experience in sales, etc. she believes her business will keep business in the concentrated area. Her reservation business will be available to any businesses who chooses to contract with her. Williams explained that between 80 and 90% of the bed tax comes from four Kenai hotels. 100% of the bed tax or equivalent amount from the General Fund is aiven to the Visitors Center. The hotel owners have felt they have been unjustly taxed. If her service books hotels out of the city, it would concern them even more. Kangas stated those hotels would have the option to come on board with her service for her to book rooms from there. It is free enterprise. Williams stated no, that at some point the council has to protect the city of Kenai from businesses outside the city. It is not appropriate to support businesses in other communities. This will be more clear later on. Councilman Bannock stated he wholeheartedly disagreed with that theory. The four hotels have the opportunity to contract with Kangas. As Councilman Smalley pointed out, any venture in the airport has the ability to send people to other towns instead of Kenai, i.e. car rentals, airlines, etc. If council has built it as a fund raising activity with the bed tax, and with a brilliant idea, it is creating a problem, that's the problem that needs to be reviewed. Don't punish Kangas for having a good idea. Bannock added, that was what it appeared Williams wanted to do; protect, at any cost, the city of Kenai. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 31 Williams stated the revenue for the rental rate suggested would be a pittance. Williams stated if Kangas could guarantee 90% of the bookings would be to the four Kenai hotels and bed & breakfasts in Kenai, he wouldn't have a problem. Bannock answered, that couldn't be done. It would be like telling the car rental dealers they could only rent vehicles to persons who will stay in Kenai. Monfor stated she could not see a problem with the Visitors Board reviewing the matter and forwarding their input to council. They are not talking about a lot of money. However, when it is something that affects the visitor industry, it makes sense to send it to their board for review. Williams stated he didn't object to the Center's boards to review the matter. However, he did not want to promote businesses in other communities. Monfor replied, then the courtesy phones rentals should be reviewed as well. Kangas asked how one could be judged over the other. She would be working with a variety of businesses (canoe rental, boat rentals, RV rentals, etc.) and it would enhance the terminal operation. She will be able to distribute information to people. Kangas reminded council she was hoping to have a decision in order to order advertisina in the Milepost, Alaska Magazine, etc. Those orders need to be to the magazines by the end of the month. Her business would bring more business into the terminal. Bookey stated he did not have problem with taking the matter to the Visitors Center for review, but this is a council problem. They need to decide if they want to promote businesses within the city. He added, he believes Kangas' business will be detrimental to the city. There will be a loss of room rentals, sales tax and bed tax. Bannock stated he believed it is a council problem to put business in the airport. Bannock requested council discuss the rate. He believed the rate was where the problem was. Kangas asked if they were concerned about the rate, are they expecting her business to make up the difference on what a Soldotna bookings? Bannock stated no. She did not suggest the $50 rate. It was suggested Airport Manager Erst and because he was not sure of how it would work. It would be on a trial basis. Kangas added she did not have a problem with an increase, although she would have to consider it. She rotates the rentals KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 32 to businesses by the need of the customer. She doesn't place them, it is up to the customer where they want to be placed. Councilman Smalley recognized Kim Booth, Executive Director of the Visitors Center who was in the audience. Smalley asked Booth if the Visitors Center sends tourists out of the city to parks, etc. Booth answered, the Center has members who are out of the city. Smalley asked if visitors are advised to check other communities if they have a specific need not available in Kenai. Booth answered yes, if the question is asked of them. Smalley added that based on those answers and based on the fact that Kangas passed the hoops in regard to a year rental of the space, he would support the approval of the permit. Williams stated his deepest concern was that four businesses are responsible for 80-90% of the bed tax which goes to support the Center. Smalley stated he and Monfor suggested at one time that a bed tax was only one area of revenue that was being reviewed in regard to tourism which could be used to assist in the payments. The council has not done anything about that yet. Williams agreed. Bookey asked Kangas if she discussed her business with any of the hotels. Kangas answered she has had a brochure stand at Fred Meyer and rented out spots on the stand. She offered her services first to those customers. She is working with a limited space. She has not talked with city hotels, other than her mailings. Swarner asked how much car rental spaces are charged. Brown answered, a ten percent commission of their sales. They also pay a small amount for the counterspace (approximately $1,000 a year plus the commission). Acting Airport Manager Holland stated the $50 rate was suggested by the Airport Commission. Swarner stated she thought the suggested rental rate is a problem. Williams asked administration where are the revenues from the airport placed in the budget. Answer was the Airport Terminal Fund. Williams asked where the rent, etc. received from Kangas' business be placed in the budget. Answer was the airport budget. MOTION: Councilman Bannock MOVED to approve the lease between Fun in the Midnight Sun Reservation Central at the Kenai Airport at a rate KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 33 consistent with the ongoing square footage and commissions. Councilman Smalley SECONDED the motion. Discussion continued regarding the percentage of commission and how it is calculated. Bannock explained that if Kangas rents a room for $100 the city would collect $10. Williams disagreed stating that is the amount Kangas would receive. Smalley stated, the city would get 10% of her 10% commission. Williams added, the fallacy was the money goes to the airport fund. It won't go to support the Visitors Center. Monfor stated she would vote against the motion because she firmly believed the Visitors Center should review the proposal as some of their members are who pay the bed tax. Bannock asked, what if the Center's boards say no. Monfor stated that was their right. Bannock replied, the Airport Commission recommended to allow the rental. Monfor questioned what the Commission knew about the visitor industry. Kangas stated she told the Airport Commission she would be willing to work with non -profits to help display community information. She added she did not think it made sense to have the Visitors Center make decisions on who rents at the airport. Monfor stated they wouldn't make a decision. They would give input. Kangas asked if they aave input on other businesses at the airport. Monfor answered, the other businesses don't affect their membership. Monfor explained, members of the Visitors Center bring business to the area to rent rooms, etc., which in turn helps to support the Center from the bed tax collected. The Center brings tourism into the city. Kangas stated, her being at the airport would probably bring more people into the city. If someone picks up a brochure from the Visitors Center of a member who is outside the city, is there a guarantee the visitor will stay in the city. Monfor answered no. Monfor added, she hoped Kangas could go to the Board and present her concept and receive their input. Kangas replied, she hoped she could do that as a member, but not as a private enterprise. Kangas asked if the hotel owners, etc. have a choice to buy into the Center. Monfor answered, they had 18 months to buy into it. She didn't think the Center's board will care, but thinks they should have a chance to review the proposal. Monfor added, she thought it would be better to go to the Visitors' board instead of the Airport Commission. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 34 Williams requested a roll call vote be taken. Clerk called for Monfor's vote. Swarner requested to speak. Williams requested that one more comment be made by Swarner. MOTION: Councilwoman Swarner MOVED to table the discussion until the next meeting so the Visitors Center board of directors can review the matter. Councilman Smalley objected to the motion as there was a motion on the floor and the Mayor called for the vote. Attorney Graves advised council had to vote on the first motion as the vote was called for. Williams stated he called for the vote but does not have that responsibility. A member of the council should call for the vote. Smalley stated he called for the question. Graves agreed. Williams asked for the vote. VOTE: Monfor: Yes Smalley: Yes Swarner: No MOTION FAILED. Measles: Absent Bannock: Yes Williams: No Bookey: No Swarner stated she thought the concern was with the lease rate. Kangas had stated that she didn't set the rate at $50.00. Swarner stated she thought the rental amount was a problem. The Airport Commission suggested the amount. It is misinformation council receives from department heads and commissions that create problems. Swarner added, she thought council should receive better information. Williams stated the motion was for delaying it. Bannock corrected Williams and stated his motion was to approve it and the motion was defeated. MOTION FOR RECONSIDERATION: Councilwoman Swarner MOVED to reconsider the matter at the next council meeting and Councilman Smalley SECONDED the motion. Councilman Bannock objected. Williams stated that Kangas is under a tight time frame. Bannock asked Kangas if the matter was put off to September 20, would it KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 35 be a problem with her advertising deadlines? Kangas answered it would not be a problem with her advertising deadlines, but would be with people she has been working with. Kangas stated she was under the impression, through discussions with Mr. Ernst, that he was under the assumption there wouldn't be much of a problem. Williams stated that Mr. Ernst is wrong most of the time. Kangas added, her proposal has been influencing most of what she has been doing. Bannock asked Kangas if she would be opposed to a lease with a sunset date of 14 months? Kangas answered she had originally asked for a three-month lease. Council had suggested the one-year lease. Bannock asked if the Chair would be willing to review the proposal with an end date and at that time, evaluate it, showing the city's losses or her success. Bannock added, he thought most of council's concerns were based on speculation and fear. Williams stated he would leave that up to the council because he would still vote no. Bannock asked Swarner how she would feel about that. Swarner answered, but it could not be heard for the record. Monfor stated she felt council was making it hard on the public. She personally felt the Visitor Center should review the proposal and the lease was horrid because it did not set out any payments, etc. The lease was rushed through because of the advertising time line. Williams cautioned council that the funding received from this business would end up in the Airport Fund. Smalley stated that is the purpose of the business at the airport. He added, he believed Bannock's motion clarified the concern about the lease rate by making it equal to other lease rates at the airport. Monfor said it did not give the length of the lease. Smalley stated it was drawn to comments made earlier. Williams noted council needed to vote on the motion for reconsideration. Williams asked who made the second to the motion for reconsideration. Smalley replied, he did. Bannock asked if it fails, can a person on the prevailing side of the first issue request a reconsideration at this meeting. Graves advised there can only be one motion for reconsideration which may be made on any issue. If the reconsideration fails, it's KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 36 over. Bannock stated the questions were then, whether they want to discuss the matter at the next meeting or never again. Williams advised another motion for reconsideration could be made in a different form at another time on a matter that hasn't been reconsidered. Graves advised the vote on the reconsideration would not preclude council to consider the matter again. VOTE ON RECONSIDERATION: Councilwoman Monfor called for the vote on reconsideration. Monfor: Yes Measles: Absent Bannock: Yes Smalley: Yes Williams: No Bookey: No Swarner: Yes MOTION PASSED. Councilman Smalley stated to Kangas that the issue of the concept and length of the lease will be considered at the next council meeting. If she would like to talk with the Visitors Center about her proposal she could. Williams added, if there was any way to allay his and Bookey's concerns (loss of income to the city's businesses), please present them at that time. Williams added, he felt the council's lob is to ensure the health of businesses within the city of Kenai. Bannock replied, Kangas would be a business in the city that the council would be trying to protect. Bookey stated if Kangas' business was in the private sector instead of the airport, he wouldn't have a problem. Kangas asked if one of the hotels wanted to rent space in the airport, would it be a problem because the other hotels couldn't (because of lack of space). Bookey answered, if it would be a business from inside the city of Kenai and it would be promoting that business. Kangas asked if there were no other brochures from other businesses inside the city hotels. Monfor added, that some of the hotels use guides from Soldotna. In the airport, there are advertisements for businesses that are outside of the city as well as courtesy phones for businesses outside the city. Monfor stated she did not think Kangas should be emphasized. If her business is to be reviewed, then other businesses need to reviewed as well. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 37 Williams requested council to do a broad round of review and discussions before their September 20 meeting. He also stated to Kangas that he appreciated her patience and his concerns should not be taken personally. H-10. Discussion - Land Swap/Borough, City, BOR Lands. Manninen referred to his memorandum included in the packet which would update council about the property the city is trying to acquire for the city's water well on the Kenai Spur Highway for the purposes of the water well, satellite fire station and cross- country ski area for Parks & Recreation programs or transfer to the BOR for other land within the city, near the golf course. Manninen added he spoke with Roy Dudley and Lisa Parker and they expect the Borough will act on it in September. Manninen referred to the map included in the packet. Manninen reported the map showed the 12.3 acres bordering the Kenai Spur Highway for the satellite fire station and where the well will be that is in the process of being drilled. The area behind it would be the property to be used for a cross-country skiing, parks and recreation or swapping. BREAK: Councilman Smalley requested a break be taken. Williams concurred. Break was taken at 10:44 p.m. BACK TO ORDER: 10:55 P.M. H-11. Discussion - Goals & Objectives Update. Council referred to the short and long-term goals and objectives they previously approved and ratified on 11/23/94. Changes were as follows: SHORT-TERM GOALS Priority Protect 1. After new well testing okayed, develop cost estimate for a wellhouse facility and pipeline/hook-up construction to get water from the well to the existing system and control system. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 38 2. Development a complete inventory of water and sewer system to be built -- center core, inner core and outer core of City. Prepare cost estimate for work needed in present dollar value. DELETE 3. Develop a wellness program policy for all city employees. 4. Purchase new car radios (Police Department). 5. Assist appropriate agencies in relocation of Public Health Clinic. DELETE 6. Ambulance fee proposal - prepare plan to present to council. 7. Save Mission Avenue. LONG-TERM GOALS 1995 PROJECT Library Commission to continue working on floor plan and schematic for library addition. Record retention computer/Clerk's department. DELETE Budget Discussion: Additional personnel for Public Safety. Develop a two-way system (with Fire Training School) for use of two fire trucks. 1996 PROJECT Budget Discussion: Personnel Director/Assistant City Manager DELETE: Finance Department computer replacement/upgrade. Feasibility/cost analysis to design a new clarifier system. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 39 REVIEW: An analysis of the city's street light program. REVIEW: Addition to Congregate Housing. ADD: Animal Control Shelter - Full budget discussion 1996/97. ADD: Acquisition of Old Towne Properties - 1996/97 budget discussions. ADD: Additional Picnic Pavilion at ballfield (by new restrooms) - 1996/97 budget discussions. Satellite fire stations - ems. Budget discussion/1996-1997. Additional boat ramp facilities - Design. 1997 PROJECT ON -GOING• Library computer. New shop equipment repair building - Design. Expand utilization of City Hall. Erosion problem. EXECUTIVE SESSION None. ITEM I: ADMINISTRATION REPORTS Mayor a. Bankruptcy Court Hearing - Williams reported he attended a bankruptcy court hearing in regard to the McLane litigation. It was very enlightening. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 40 b. Alaska Conference of Mayors - Williams reported he attend the Conference meeting in Barrow. They discussed the on- going fiscal gap problem. They made recommendations to the Blue Ribbon Committee. Their biggest concern is if anything will be done by the Committee. 1-2. City Manager a. EDD Building - Manninen referred to a letter included in the packet in regard to the EDD's acquisition of the ARCO building. EDD is in the process of moving into the building. They plan to hold an open house in October. b. Carpeting - Manninen reported there is some concern in regard to the possible replacement of carpeting at the old library building. The preschool received a $2,000 donation to purchase the carpet. Council may want to visit or give some direction as to whether to replace the carpeting. It is a city building and they operate under a lease of the city. If it's a concern, he wants to talk with people renting and those not wanting to replace the carpet. Bookey asked why people were objecting as it is free money. Manninen replied the carpet is ten years old or more. People working there feel it should be replaced and they are willing to pay for it. Consensus of council was to replace the carpet. C. Boat Ramp Fee - Manninen reported he received a complaint about the $5.00 boat ramp fee. An individual has threatened he will come back in three or four months with a petition. He's a commercial fisherman. The individual is leaving to go outside. He believes the city should remove the $5.00 sign. The individual also stated he will not buy insurance or groceries in Kenai and is moving to Kasilof so the city won't get the fish tax and will petition 75 other fishermen to abolish the $5.00 fee. The individual's name is Fred Struman and says he has been fishing in the area since September 1, 1965. Manninen added, Struman's request is to remove the $5.00 fee. Williams stated he asked Struman if he owned property in Kenai and he was told yes. Manninen reported he told Struman that it was his business decision and he was sorry he made it over a $10.00 fee. The harbor doesn't make money. The dock does not make money even with the $5.00 fee. Should we have the person in KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 41 any subdivision paying general fund money or making, somehow the harbor's going in the red and if we get rid of the little revenue we get there it wouldn't help the harbor commission or harbor fund, enterprise get in the black. Somehow it's being subsidized. We either have to raise fees or it won't get better by itself especially be removing the funds that help spurt it. I-3. Attorney I-3a. Courthouse Contaminated Soils Dispute Settlement Attorney Graves reported he attended a meeting in regard to the courthouse contaminated soils dispute settlement. After two days of discussions in Anchorage, a tentative settlement was reached. The city will get $240,000 cash in about 30-45 days, once everyone signs it; about $18,000 a year for about 3-1/2 years, until the $400,000 level is reached; that will leave about $93,000-94,000 of payments due which can be used to clean up Lot 13. It's expected that Lot 13 will take approximately $50,000 to $80,000 to clean it up. Essentially, the city will get all its money back for the courthouse problem and to clean Lot 13. Council congratulated Graves on his success. Graves requested a directive to authorize Manninen to sign settlement documents when they are finalized and are received. MOTION: Councilman Smalley MOVED to authorize City Manager Manninen to sign the settlement documents for the courthouse contaminated soils dispute when finalized and received. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. 4. City Clerk a. Election Judges - Freas requested council's approval of the list of persons (included in the packet) who have agreed to work as election judges for the October 3, 1995 municipal/borough election. MOTION: Councilwoman Swarner MOVED for approval of the list of names and Councilwoman Monfor SECONDED the motion. There were no objections. SO ORDERED. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 42 b. Personnel Arbitration Board - Freas referred to her memorandum included in the packet in which she requested direction as to who to contact for possible placement on the board. It was noted that applications were also in the packet from Eileen Bryson and Lloyd Johnson. Council had no objections to the appointment of Eileen Bryson as a member of the Board. Council requested other applications be sought from females as the list of members were predominantly male. Those persons suggested to contact were Roberta Beauchamp and Margaret Steinbeck. Council requested the application of Lloyd Johnson be brought back to them at a later date for additional review. I-5. Finance Director No report. Public Works Director a. Administrative Assistant - Kornelis reported Marilyn Kepschull was hired to replace Loretta Harvey. She will be taking minutes at for several commissions, the Beautification Committee and the Townsite Historic Board. b. Information Item No. 3 - Kornelis referred to his letter to Representative Navarre and Senator Salo requesting assistance in obtaining state funding for water system improvements. C. Information Item No. 5 - Kornelis reported he has spoken with Steve Miles of Glacier Environmental. Miles is waiting on Clean Soils for work on approximately 100 cubic yards of soil. They have been given five different dates by Clean Soils as to when they will do the work. d. Highway Expansion - Williams requested Kornelis remind the contractor to grade the driveway from where they are hauling dirt as was agreed upon. I-7. Airport Manager Acting Airport Manager Keith Holland brought council up to date on projects at the airport, i.e. upgrading of the overflow parking area, hot mopping of terminal roof, and replacement of the steps at the south end of the terminal. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 6, 1995 PAGE 43 ITEM Je DISCUSSION Citizens None. J-2. Council Bookey - Requested the light bulb above his seat be replaced and requested the curb cuts at the old KUSCO building be investigated. Swarner - Thanked Kornelis for the information regarding the new employee. Requested a plant be sent to Rachel Clark. Monfor - a. Tent Camping Area - Monfor asked if the area was used and to what extent. McGillivray answered it was used some prior to the road expansion project starting. The pay box was broken into one time. He had not tallied the figures but believed it compared to last year's profit. b. Handicapped Access Van - Monfor reported that while she was visiting in Washington she passed a handicapped access van for the Pierce/King counties. Clerk Freas contacted the company and found that it is a county operation on a per ride fee. She will get more information if requested. Monfor added, she did not think the city deserved the knock they received from the article in the Peninsula Clarion. It was not accurate information. The only person the city heard from was from outside the city. Monfor stated she thought if the city would get involved in offering this type of transportation, it would be a nightmare waiting to happen. Council has discussed the physically challenged, but there are other disabilities too. Would the city have to include others in the transportation system as well? Monfor suggested the more appropriate venue would be United Way as the city is not always the source. There are other ways for support besides government. Councilman Smalley suggested those needing the transportation contact the area legislators and assembly members as well. C. Complaint - Monfor reported she had received some complaints in regard to service at city hall. The persons stated that when they came in, people were on the phone, etc. and they KENAI CITY SEPTEMBER PAGE 44 COUNCIL MEETING MINUTES 6, 1995 did not know where to go. Clerk Freas stated she thought it would be better as the open position has been filled and that position is more easily seen and can see the public. Bannock - a. Barbecue - Bannock reported he attended a barbecue in the city. There were lots of people attending. He heard major comments on how nice the parked looked. b. Vehicles - Requested City Engineer La Shot investigate a number of vehicles parked behind the loan shop in Old Towne. He added, the number appears to be growing. Smalley - Restrooms - Smalley asked if it would be possible to close up the restrooms at Bridge Access and at Cunningham Park with plywood and banned for the winter. He believes they will be a target for destruction during the winter. McGillivray stated it would be possible. - Williams - Information Item No. 2 - Williams noted that the letter from the Department of Community and Regional Affairs has set the city's FY97 state revenue sharing and municipal assistance population determination at 7,006. b. AML Conference - Williams suggested council contact Clerk Freas in regard to making reservations for the AML Conference in Valdez. Freas was requested to block rooms for councilmembers. ITEM K• The meeting adjourned at approximately 11:40 p.m. Minutes transcribed and submitted by: Carol L. Freas, City Clerk 13a1N t .:n