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HomeMy WebLinkAbout1995-11-01 Council MinutesAGENDA RENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 1, 1995 7:00 P.M. RENAI 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. Linda Zaugg - Department of Corrections/Halfway Houses C. PUBLIC HEARINGS 1. Ordinance No. 1667-95 - Increasing Estimated Revenues and Appropriations by $1,355 in the Senior Citizens - Borough Special Revenue F»nd for the Purchase of a Sound/PA System. 2. Resolution No. 95-64 - Responding to the Alaska Department of Natural Resources Division of Oil and Gas' Decision of No New Information Regarding Oil and Gas Lease Sales 67-W2, 74W, 76W and 78W Re -offering, Cook Inlet. D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees E. MINUTES 1. *Regular Meeting of October 19, 1995. F. G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. Discussion - 1995 Legislative Priorities and Capital Improvement Projects List. 4. * Liquor License Renewal - Kenai Golf Course Cafe. 5. Approval - Assignment of lease for Lot 9, Block 1, Cook Inlet Industrial Air Park from Rick Vann Profit Sharing Trust to Ronald J. Johnson and Charles Grimm. 6. Appointment of new Finance Director and Approval of moving expenses. EXECUTIVE SESSION Personnel issues. 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. 1. Citizens (five minutes) 2. Council X. KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 1, 1995 7:00 P.M. KENAI CITY COUNCIL CHAMBERS ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 p.m. in the Council Chambers in the Kenai City Hall Building. 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, Moore, Measles, Bannock, Smalley and Williams. A-5. AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: ADD AS: C-3, 1995 Liquor License Transfer - From Si Cha Sin, d/b/a Arirang Restaurant to Spencer Han, d/b/a New Peking (same location). ADD AS: C-4, Restaurant Designation Application - New Peking - Restaurant/Eating Place License. ADD AS: I-1, Mayor's Report - 10/3/95 VFW invitation to attend Veteran's Day memorial service at Leif Hansen Memorial Park. ADD AS: I-1, Mayor's Report - Notice of Governor's Conference on Youth and Justice. ADD AS: I-1, Mayor's Report - Kathy Scott & Associates Proposal regarding Challenger Learning Center. ADD AS: Information Item No. 13 - TM memorandum -- City of Kenai's Water Quality and Quantity/Development Program Status. ADD AS: Information Item No. 14 - 10/31/95 TM Finance Director applicant rejection letter and list. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 2 MOTION: Councilman Smalley MOVED for approval of the amended agenda and requested UNANIMOUS CONSENT. Councilwoman Swarner 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. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENT B-1. Lynda Zaugg - Department of Corrections/Halfway Houses Lynda Zaugg, Director of Community Corrections discussed the use of halfway houses throughout the State and gave an overview of how persons are chosen to be placed in a halfway house. Zaugg distributed copies of Community Residential Center (CRC), 1996 Standards and Instate Inmate count in_fnrma_tinn to council for their review. Zaugg briefly reviewed information included in the handouts. Zaugg stated the higher percentage of success in people integrating back into society is when they can be stabilized within the first six months. Those arrested usually return to the place of arrest after their sentences are completed. Sex offenders will not be furloughed to halfway houses. Discussion continued. Williams noted that the Department of Corrections has put out request for proposals (RFP) for other areas in the State except for Kenai because they are aware of the concerns expressed as to where one would be placed. Zaugg added, they want to give the community a chance to find out more information about halfway houses. Zaugg added that the chance of a person being furloughed to a halfway house varies with the individual and the length of the sentence. When asked about escapes, Zaugg answered there are always walkaways. If there are problems with a person having KENAI CITY NOVEMBER 1, PAGE 3 COUNCIL MEETING MINUTES 1995 been furloughed to a halfway house, they are returned to the institutions. Those persons running halfway houses work closely with the Department of Corrections. Jerry Pfaff - Stated he has a facility (North Star Lodge) which, it has been suggested, could be made into a halfway house. Pfaff reviewed the benefits of the State using his facility for a halfway house, i.e. tax income, located outside the city, etc. Robert Galea - 7229 Foxridge Circle, Anchorage and Director of Akeela Treatment Center in Anchorage. Galea stated he was impressed with the open and healthy discussion which was taking place. Galea also stated he believed a halfway house is needed in the Kenai area. There will be controversy, but the population needs the service. Galea added, people will be released from prison and will come back to this community whether there is a halfway house or not. The city should take a positive approach. Senator Judy Salo - Salo stated she and Representative Navarre's office have discussed halfway houses with the Department of Corrections. Both were concerned with the last discussions of placement of a halfway house in Kenai as there was little opportunity for the public to speak to it. There were many complaints. Salo added, she hoped that this was a preliminary discussion and there w211 he ample time to plane a halfway house the right way, allowing people time to discuss the matter. Hers and Navarre's office will help. She believes the Department of Corrections is being responsive to Kenai's concerns. Salo added, she believed the location of the house is important and does not think placement of it should be rushed. That will be their stance from their offices. Williams stated this discussion was a major exploratory discussion with the understanding that no decision would be made. The concept will be investigated and examined as to where the discussion should progress. Smalley asked if the RFP would come from the State. Williams answered yes, not the city. The city would not be involved in an RFP. The city will be waiting to see what Corrections will want to do next. Swarner suggested discussion with the Borough Planning & zoning Commission and information to the public be made prior to the putting out of an RFP. Williams stated he believed Corrections understood that. Council would not second guess what the borough may say, as far as their zoning laws, etc. Williams added that KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 4 the City Attorney had elected not to investigate financing (discussed in a previous meeting) until council decides it is needed. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1667-95 - Increasing Estimated Revenues and Appropriations by $1,355 in the Senior Citizens - Borough Special Revenue Fund for the Purchase of a Sound/PA System. MOTION: Councilwoman Swarner MOVED for approval of Ordinance No. 1667-95 and Councilman Measles SECONDED the motion. Acting Finance Director Feltman requested the amount in the ordinance be amended to $1,855, an increase of $500. Feltman explained an additional donation was received. It was the request of the donor that the money be used for the purchase of the sound/public address system. IN010*CS) Z a 01W.11141:4 I&M Councilman Smalley MOVED to amend the amount in Ordinance No. 1667-95 to $1,855. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. There were no public or council comments. VOTE ON AMENDED MAIN MOTION: Bookey: Yes Swarner: Yes Moore: Yes Measles: Yes Bannock: Yes Smalley: Yes Williams: Yes MOTION PASSED UNANIMOUSLY. C-2. Resolution No. 95-64 - Responding to the Alaska Department of Natural Resources Division of Oil and Gas' Decision of No New Information Regarding Oil and Gas Lease Sales 67-W2, 74W, 76W and 78W Re -offering, Cook Inlet. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 5 MOTION: Councilman Measles MOVED for adoption of Resolution No. 95-64 and Councilman Smalley SECONDED the motion. There were no public comments. Councilman Moore requested an explanation of the purpose of the resolution. Williams explained the purpose of the resolution was to show support by the city for the oil and gas lease sales to proceed. An identical resolution was also passed by the Borough. VOTE: Councilman Measles requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-3. 1995 Liquor License Transfer - From Si Cha Sin, d/b/a Arirang Restaurant to Spencer Han, d/b/a New Peking (same location). Clerk Freas explained the liquor license transfer has been requested. All Borough taxes are current, as well as city water and sewer charges. An amount was still owed on an escrow payment of approximately $650. Freas requested a motion of non -objection tC the t,... fer of the liquor license contingent tii on the account r becoming current. When asked why the city would be concerned with a late escrow payment, Attorney Graves explained the escrow agreement was with the city. MOTION: Councilman Measles MOVED for approval of the liquor license transfer from Arirang Restaurant to the New Peking upon the monies owed for the land payment being brought current. Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED. C-4. Restaurant Designation Application - New Peking - Restaurant/Eating Place License. Clerk Freas requested a similar motion for the approval of the Restaurant Designation Application as it was based on the transfer of the liquor license and the ability of the restaurant to serve liquor. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 6 MOTION: Councilman Smalley MOVED for approval of the restaurant Designation Application based on when they are current on all of their payments. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. BREAK TAKEN: 7:55 p.m. BACK TO ORDER: 8:13 p.m. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reminded council and people present of the pie sale at the Senior Center. The sale was a money -making project and urged people to take advantage of the opportunity. D-2. Airport Commission Councilman Measles reported there was no meeting due to a lack of quorum. The next meeting is scheduled for November 9. The Commission is short one member. Measles added he would not be able to attend the November 9 m"oeting. Williams reported he discussed the possibility of placing an aircraft fire training center in Kenai with City Manager Manninen, Airport Manager Ernst, Fire Chief Burnett and a representative from Symtron Systems, Inc. There again is interest in developing such a center in conjunction with the Fire Training Center. Approximate cost for the building of the school is $6 million. D-3. Harbor Commission Councilman Bookey reported the next meeting was scheduled for Monday, November 6. D-4. Library Commission Councilman Moore reported the commission did not meet. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 7 D-5. Parks & Recreation Commission Councilman Bannock reported the next meeting was scheduled for October 20. D-6. Planning & Zoning Commission Councilman Smalley reported the minutes of the last meeting of the Planning & Zoning Commission were included in the packet. Smalley reviewed the minutes with Council. A short discussion followed regarding the proposed lease of the Daubenspeck property for the development of senior condominiums (Continuum Corporation). Smalley reported the Commission stated they would prefer a larger commercial area along the Bridge Access Road, but because there was not sufficient space, they recommended not to have a commercial zone there at all. They also recommended the applicant develop the whole piece of property. The Commission was concerned about access and egress of the condominium development and possible isolation of the Church reserved property on the back side. Smalley also reported one of the commissioners was disappointed Council did not approve the travel of Mr. Glick to AML. The commissioner stated she believed it would have been important and of hcncfit to the Commission.. Smalley added, one of the commission members has been absent many times and should be replaced. Williams remarked that it should be explained to the commissioner that there has not been a time when the city has paid for a board, committee or commission member has attended AML. AML is a conference for elected officials. Smalley stated he gave that information to the member. Smalley added, there have been commission members attend in the past, but it was at their own cost. Bookey stated his concern of the remark made by Commissioner Glick that he would attend anyway and not carry the agenda of the City to the meeting. It would be inappropriate for Glick to represent the City's agenda. D-7. Miscellaneous Commissions and Committees Beautification Committee - Swarner reported the greenhouse construction had begun. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 8 Historic District Board - Councilman Moore reported there was no meeting due to a lack of quorum. However, they informally discussed with him what the Board was involved in and brought him up to date with current projects. Williams referred to the request to change the date of the Board's next meeting. Clerk Freas explained the regular meeting date is the fourth Tuesday in the month. The Board had days confused (according to the memorandum included in the packet). After discovery of the mix-up of days, City Engineer La Shot requested the meeting still be changed to the 20th so they would have additional time in which to work on the grant application for the sign project. Council had no objection to the changing of the meeting date for November. ITEM E• MINUTES E-1. Regular Meeting of October 19, 1995. Approved by consent agenda. ITEM F• None. ITEM G: OLD BUSINESS None. ITEM H: NEW BUSINESS H-1. Bills to be Paid, Bills to be Ratified MOTION: Councilman Smalley MOVED to pay the bills and Councilman Measles SECONDED the motion. There were no objections. 80 ORDERED. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 9 H-2. Purchase Orders Exceeding $2,500 MOTION: Councilman Bannock MOVED for approval of the purchase orders exceeding $2,500 and Councilman Smalley SECONDED the motion. Williams asked if the street lights had been installed. Measles noted Council was just approving the purchase order. Kornelis stated he just received a quote from HEA for the ten lights approved by budget. Bannock asked if they were the ten sites approved by Council at budget time. Kornelis answered yes and added he would forward a list of the sites to Councilman Moore for his review. Kornelis added, they may be able to get 15 lights placed for the $30,000. Three of the lights requested for Inlet Woods may have to wait because they are metal posts and there may be an ordering problem with those. VOTE: There were no objections. SO ORDERED. H-3. Discussion - 1995 Legislative Priorities and Capital Improvement Projects List. Williams referred to the letter from the Kenai Peninsula Borough requesting the city's list of capital improvement projects for 1995-1996. Williams requested remarks from City Manager Manninen. Manninen explained this was the annual legislative priority improvements list that the Borough puts out. Their deadline for having the city's capital improvement projects in with their list is December 12, 1995. If council wishes to change anything that the information needs to be sent to them by December 12 and if not, he will take the existing priorities that have been listed and use those. Williams asked if the water well was still at the top. Manninen stated yes. Kornelis referred to last year's list. Williams asked where the animal control shelter was listed. Kornelis stated the list had the water well first, community road development second ($2.4 million), satellite fire station at Beaver Creek ($800,000), Animal Control Shelter ($600,000) and sewer system improvements ($5 million). Under economic development and tourism, the previous list included marine KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 10 industrial development ($1 million), library addition ($1 million) and ADA compliance to public facilities ($1 million). Bannock stated he thought the list would only have one item on it this year. Williams stated that a list is published every year. A letter has been sent to the Governor and legislators that the first priority is $1 million for the water well. In the past, the list is like a road map showing what the city is trying to accomplish with future priorities. Williams stated he was concerned with the position of the fire station and the animal control shelter. He is waiting to see what is received for funding of the water well. If it is funded, he will ask council to go to the General Fund for monies to complete bid -ready documents for the shelter. Then he will go to the Borough and seek assistance in funding. If the city is successful in receiving funding for the water well, he would then like the city to build the shelter with General Fund money next year. Kornelis approximated cost for bid -ready documents to be $60,000 which includes inspection costs. Williams stated he would like to discuss having the bid documents completed after the first of the year. Councilman Smalley stated he did not disagree, but the position of the prnjeats nn the dnn»mant doesnit a_ff—t what the council would choose to do in regard to funding the structure. Williams agreed, adding the list was a guideline. Williams added, one of the promises made to the legislators was that if funding was received for the water well, the city would pay for the development of the shelter. Council consensus was to leave the list as it is. Kornelis stated he would place a copy of the list in the packet for the next meeting. H-4. Liquor License Renewal - Kenai Golf Course Cafe. Approved by consent agenda. H-5. Approval - Assignment of lease for Lot 9, Block 1, Cook Inlet Industrial Air Park from Rick Vann Profit Sharing Trust to Ronald J. Johnson and Charles Grimm. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 11 Councilman Smalley MOVED for approval of the assignment of lease for Lot 9, Block 1, Cook Inlet Industrial Air Park from Rick Vann Profit Sharing Trust to Ronald J. Johnson and Charles Grimm. Councilman Bookey SECONDED the motion. Attorney Graves reported he had no objections or concerns in regard to the assignment. 9103144 There were no objections. SO ORDERED. H-6. Appointment of New Finance Director and Approval of Moving Expenses. Manninen referred to his memorandum included in the packet. He spoke with the Acting Finance Director regarding the budgeting amounts and was told the amounts are there for up to $10,000 if council wants to approve per the ordinance that is cited in his memorandum. With council approval, he will prepare a resolution for action at the next council meeting. .Manninen added, basically, Mr. Sweeney is the present finance director for the city of Sitka. He came highly recommended. He had a team of people interview him, including Robin Feltman, the auditor Bill Coghill and himself. He checked on references personally at the city and borough of Sitka and he is the person he is recommending in that he was the number one applicant, the one he went after and his conditions for coming to Kenai (included in the packet) and he is very excited about the challenge and opportunity to come to Kenai. Manninen added, he believes Sweeney is bringing the right skills in areas that the city may need. He has a double major he got within the last seven years in MIS computer work and accounting. He has also been the finance director at Sitka for the past three years. Manninen requested action from council to ratify the moving expenses and to direct staff to make the appropriate resolution changes and submit them to council for the next meeting. Manninen added, if council wished to ratify the hiring that would be acceptable too. Manninen asked if council had any questions. Councilman Moore asked how big a budget Mr. Sweeney worked within Sitka. Manninen answered the budget was combined city and KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 12 borough. It was substantially larger than the city's, but he did not recall how much it was. It was a matter of factor of two or three times what the city budget is. The bottom line is if you know how to do a budget the city's size or if double the city's size, it's a matter of how well do you take care of investing $40-60 million (the case there) and doing it well. If you can't do $1 million well, you're not going to do $30 million well. Moore asked what type of investing had Mr. Sweeney been involved in. Manninen stated that was part of their extensive interview questions. He has a very conservative philosophy. Something that will fit within the requirements of the Kenai code. Manninen stated he was not sure if Sweeney had seen the Kenai_ code when they talked, but later while he was in Sitka, he talked in detail with him. His philosophy is very consistent with Mr. Brown's and the council's about the protection of the principle and the safety of the corpus of the investment and not getting into the fancy things that only the people try to sell you out of Anchorage or somewhere else and call them derivatives or call them CMO's or call them something real fancy but somebody else is making the money and you're taking the risk, he is very conservative that way and that's the way we like it. Smalley asked if the city had paid moving expenses for other city rlapartmant ha ds moving to the city. Swarner stated sale did not know and deferred to Councilman Measles. Measles stated in a round -about way it has. Technically moving expenses are not paid when relocating an employee from out of state. In -state moves are different. Other than city manager, he was not aware of anyone hired other than locally for department head positions since he has been on the council. Manninen stated he believed the city was involved with Jack La Shot's move and moving expenses. He was told that. He did not check the numbers. That was what he was told. Manninen asked Feltman if she was aware of the city paying any moving expenses for anyone to move to Kenai from out-of-state or in -state. Feltman stated she was not aware of any hires other than local ones. MOTION: Councilman Measles MOVED to approve the moving expenses for the finance director in an amount not to exceed $10,000 and Councilman Bannock SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 13 Councilman Bookey referred to Manninen's statement that Sweeney had three years of experience with the city of Sitka and asked if he was aware of previous records of longevity. Manninen answered Sweeney had 13 years in the US Army. He retired early as a Major and then went to school to do his master's work at the University of Indiana (one of the top 20 schools in the country). Sweeney comes well -recommended. Bookey asked how much money was appropriated for Manninen's move. Williams stated it was a signing bonus instead of moving expenses. Moore stated that it was not uncommon to pay moving expenses in different organizations and there is a provision in the code that would require Sweeney to pay the money back if he would not last a certain amount of time. Manninen stated he will have to sign a two-year transportation agreement and part of the memo distributed to council indicates Attorney Graves will draw that up. Sweeney understands it and has read it and has no problem with that on his part. VOTE: Councilman Bookey called for the question. There were no objections. SO ORDERED, EXECUTIVE SESSION None held. ITEM I: ADMINISTRATION REPORTS I-1. Mayor a. Veteran's Day Service - Williams referred to the invitation to council to attend the VFW Veterans' Day Service on November 11, at 11:00 a.m. at Leif Hansen Memorial Park. b. Method for Accounting of Equipment Reserves - Williams stated he wanted to discuss a method of accounting for equipment reserves with council and pass it on to the new finance director. Williams reminded council set a reserve fund up some years back and then funded it over the years until it leveled at $1 million. Since then council has spent from that reserve. Feltman stated KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 14 this year a lot of the money was being used and then every year more money is placed into the reserve. This year, all of the money was used. $300,000 is placed into the fund each year. Williams stated he would like council to consider rearranging the way the fund is structured and used. Williams suggested the fund be set up like a permanent account. Interest would accumulate within the account as well. Monies from the sale of equipment would be deposited into the account and maybe give strong consideration to setting an accounting principle where each department budgets the value of the equipment purchased into their annual budget. This would allow for the account to be paid back for the equipment purchased from it. It would be an operating account regenerated from the individual department budgets. (If a pick-up truck is purchased for $20,000 and expected to be carried for five years, the department purchasing the truck would pay $4,000 a year from its budget back into the heavy equipment account.) By doing this, council would have a fair idea of the amount of money needed each year to replenish the reserve. Williams stated he did not think council would be disciplined enough to place another $700,000 into the account in order to get it back to $1 million. He added, if it is rearranged to where each department is paying for the equipment the nest egg will always be there. Moore asked if equipment is now replaced out of the General Fund. Williams explained that council set up the fund and the balance reached $1 million. For many years no equipment was purchased. This year there was a real need to replace a lot of equipment. Over $700,000 was spent out of the fund. The balance is at approximately $300,000. Williams added, he thought if each department disciplined itself to put their share of the money back, somewhat like leasing their equipment, it would bring the fund balance back up. Measles stated he did not have a problem with the idea. One of the things done was that council got away from their original definition of "heavy equipment" and other items, like pick-ups and automobiles were paid for with that fund. This was not the original intent. The original intent was for purchasing graders, snow plows, fire engines, etc. The council re -defined the intent somewhere through the budgeting process. A lot of vehicles were purchased last year. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 15 Bannock stated his concern that the city does not have a schedule for purchase of equipment. Bannock referred to HEA's replacement schedule for all their equipment. He would like the city to have a similar long-range plan. The plan could tell what vehicles are to be replaced when, etc. Williams noted that Administration was requested to set up a plan for replacement. Williams added, he was really looking at the mechanics of how to continue to take care of the reserve fund program. Williams continued that if the city were to get into a disciplined program of creating a fund that acts somewhat as a leasing agent to itself and every department buys its own vehicles on a yearly basis by placing so much of its budget into the fund, it can be done. This would save the council the need to place additional funds in the reserve fund each year or having to support the fund by putting replacement costs in it. Councilman Measles stated the replacing of the money would still be done through the General Fund by a line item on the budget. The money would still come from the same place. Measles added, he would like to go back to the original intent and pull automobiles and pick-ups out of fund. Each department would have to justify within their own department budget the purchase of a new vehicle. A cut-off of anything larger than a one ton would fall into the heavy equipment category. Smaller would be justified as a line -item Purchase in the budget Williams agreed that the individual departments be made responsible for each item. Knowing that the equipment will need replacing and each department needing to replace vehicles would be banking so much each year to purchase the new vehicle. Measles stated he would have to give the idea more consideration. Manninen stated he thought the city could set up, with a lot of effort, a program to schedule and fund, rent or lease -back equipment to the General Fund on an hourly basis. It would give some way to calculate the use of equipment which is depreciated annually or have actual hours. Some way to document it in industry, department, water and sewer, etc. where you have the vehicles. You don't depreciate them out on every hour in the year but on actual use of the vehicle and charge it to an account, water, sewer, etc. and set it aside in the equipment replacement reserve. That is something the department heads should be talking to the finance director and should be putting together some type of equipment replacement schedule so that every department would be effectively renting use of their equipment to that equipment fund, city wide. In theory it sounds KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 16 easy, but it would complicated. He would like to get the new finance person involved in it if it is something council wants to do. The bottom line is that it must be charged off somewhere, either an enterprise fund, water and sewer, or the general fund. Now it is simple and straight forward, i.e. taking $300,000 out of the General Fund and come up with a list and draw the priorities and buy what is urgent and needs replacing. A lot of work and effort can be gone through to say a certain piece of equipment has so many hours, which may not mean anything because in the end it may be decided not to replace that equipment anyway no matter how much money it earned for the department from its use (snowplowing, water department work, etc.), but that $300,000 would be taken from the General Fund and distributed for something different. The flexibility would still be needed at council level making policy when the budget is adopted no matter how much detail you get. If council wants the detail, a plan can be developed to get it on rental hours, cost of projects, etc. A policy decision is needed on how much monies is going to be spent. Williams stated he did not think a lot of detail would be needed. His concern is that there was $1 million and now there is $300,000. $700,000 was spent and it was not replaced. It will be a long time before it is replaced. The reason for the use of the money was because a lot of equipment was bought at one time. Williams again reviewed his plan, using a five-year replacement plan. This would save on maintenance, etc. and then get rid of it. With a replacement schedule this can be done. This would not be useful for graders and fire trucks because of the longevity of their life. Bookey stated it was not administration's problem, it was the council's decision to purchase the vehicles, etc. He agreed with Measles that his suggestion may make it more complicated than what is needed. Council needs to show restraint. Also, the purchases of pick-ups and cars should not be from the heavy equipment reserve. Bookey added, he felt then the fund could stay and maintain as planned. Council let the expenditures from the reserve fund get away instead of saying the purchase needed to come out of the individual department's budget. Kornelis stated he does have an equipment replacement schedule and has purchased pick-ups, etc. based on that schedule. However, the money was not there in years past. The money going into operating budgets for that equipment comes from the fund and goes into the machinery and equipment fund. The money would KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 17 still come from the General Fund. Williams agreed and added, it would give each department incentive to watch and control their budget better. Williams stated he would provide a documented plan at a later date. Bookey added he did not think the equipment fund budget was as depleted as it looked because a grader was purchased this year when it was not needed because it was a good price and luckily the city had the funds. C. Continuum Corporation - Williams reported he spoke with John Verdugo of the Continuum Corporation in regard to the proposed development of senior condominiums. Williams added, he was glad to see the Planning & Zoning Commission came to a decision on the commercial property on that side of the highway. Williams added, he thought council could agree that commercial development on that side of the highway was not that important. Williams urged administration to continue working closely with the Corporation on that project. Smalley stated Planning & Zoning didn't say that commercial development along that corridor was not important. They believe it is very important. They would like to see more land available. However, if more land is not available, then Continuum Corporation should utilize the whole space. Plannina & Zoning does perceive commercial development as important. Williams stated he understood the minutes to say the Commission perceived it to be that way and had then come to an understanding that it was not what was asked. Williams added, he disagreed with Planning & Zoning in that they should not be concerned about more commercial development along that property. Smalley stated the Comprehensive Plan shows it. Williams added he did not think that area was conducive to commercial development with the changes in the highway, grade, etc. d. State Parks - Williams reported he met with the new director of State Parks while in Anchorage. They discussed the boardwalk project and the director thought it worthwhile and will review the plan. He also discussed the golf course property. It appears to be very positive as far as the city regaining control of the property in order to develop it. That information has been sent to the federal government to review and an answer should come back in the near future. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 18 e. Challenger Learning Center - Williams reported he met with Mr. Ladner of the Alaska Aerospace Development Corporation in regard to preparation of the feasibility study discussed at the last council meeting. Williams added, he also met with EDD in regard to preparation of the feasibility study. Because of time constraints, EDD would not be able to do the study. He thought it may be advantageous to go to a private contractor to have the study completed. He spoke with Kathy Scott of Kathy Scott & Associates. She prepared the proposal which was distributed to council at the beginning of the meeting. Williams also reported he met with School District representatives Bromenshenckel and Dalgren, Dennis and Ginger Steffy, etc. in regard to setting up a steering committee. Others proposed for placement on the committee would be Kim Booth and Suzanne Little and two past employees of NASA. There seems to be a lot of enthusiasm for the project. Williams requested council approval of the Scott proposal. Cost to be a not -to -exceed amount of $10,000. Council briefly reviewed the proposal. Measles noted council had requested the study be completed and ready to present by mid -December. The proposal suggested January or February. Williams explained that because EDD did not begin the work, and it was now two weeks later, he requested a proposal for Po-tent-tal funders be presentable by January 1. Williams added, the completed feasibility report would come later on. He spoke with some of the city's legislators and they thought it would be good to have it in January and which will give them time to put it on their agenda at the beginning of the session. Before the capital budgets are arranged, the final study will be to them. Williams explained Scott was willing and planning a trip to the Challenger Learning Center in Seattle. Dennis Steffy plans on going also, but on his budget. Williams asked if another council member would like to act as a liaison to the steering committee and go through the Center as well. Councilman Smalley asked from where the $10,000 would come. Williams stated council decided at the last meeting that it would be appropriated from the money coming from the dissolutionment of the Kenai Development Corporation. However, it was reported by the City Attorney it could not be taken from that money because that money must be placed in the Airport Fund. Smalley noted, no KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 19 formal action was taken at the last meeting to appropriate funding for the study. Measles stated a resolution would have to be passed to appropriate the money. Williams stated he would ask Scott to begin immediately if council approved the concept. The resolution could be brought forward for approval at the next council meeting. Swarner asked what happened with Steadman (EDD) calling the Department of Commerce & Economic Development. Manninen answered that he was told they would not be funding or matching any funds for a grant for this project. They said they felt uncomfortable doing it. Manninen added, he felt uncomfortable about having EDD asking for the money. He didn't think that was what the city was asking for. He thought the city was asking for a product. That was his frustration and he told that to Steadman. He will tell it to him at the board meeting tomorrow. This or another consultant was really the only way to go and he was really disappointed with the EDD on this one. Not with the staff, but that they didn't get the direction from the people leading to do the work and he will talk with the board members and make sure that someone has the authority to do it or that they aren't tied up in other things or doing things for other cities that he doesn't think and the rest of the board hasn't voted on as being a high priority item. Doing stuff for Seward for listing property for sale and thinking that is a big priority project when nobody voted on it on the board level and saying that they can't delegate any time or any staff time for doing this which he thought was a higher priority for both EDD and definitely a higher priority for the city. Williams stated he had spent the last two weeks trying to get a study started. He was uncomfortable with turning the project over to EDD and thought, through the discussions at the last council meeting, that he could move on with it. Measles stated he assumed there would be a resolution in the packet for consideration at this meeting in order to get the project started. Even if council would give an indication they are willing to spend the $10,000, no funds could be spent until the resolution is passed and according to the agreement, $2,500 is payable upon signing of the contract. The contract won't be signed and nothing will be done until after the next council meeting. Williams agreed and if council was willing to entertain a resolution toward the proposal, they should request a resolution be prepared for the next meeting. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 20 Acting Finance Director Feltman questioned making payments in steps. Adding, progress payments have been made, but usually payment is only made when there is something in hand. Measles stated he did not have a problem with the proposal, but there appeared to be a conflict between the compensation paragraph and the payment provision paragraph of the contract. If it's based on an hourly rate of $55/hour, it should be billed on an hourly rate at regular intervals rather than in lump sums. Measles added, the $10,000 is a not -to -exceed amount, but when adding the payments together, it totals $10,000. Smalley suggested the Compensation paragraph be better defined with regard to support staffing. Williams stated it would basically entail postage for mailings and copying costs. MOTION: Councilman Measles MOVED to have Administration prepare a resolution necessary to fund the project for the next council meeting and have the City Attorney and Administration review the agreement, and if necessary, rewrite it to make it fit normal city practices for contracts and meet with Ms. Scott to get a final version of the contract with the resolution for consideration at the next meeting. Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED• e. Anchorage Governor's Office - Williams reported he visited the Governor's Anchorage office and renewed some acquaintances there with staff, etc. f. Legislative Lunch - Williams also reported that while he was in Anchorage, he visited with Senators Pearce and Leman and Representatives Masek and Green during lunch, along with a delegation from Sakhalin Island. They discussed a bit of city business. g. Russian Delegations - Williams reported he visited with two Russian delegations. One took classes at the Fire Training School. It was very well received. Williams stated he anticipates there will be more training of Russian groups in the future. He also attended a Sakhalin/Alaska Working Group which had been set up by Governor Hickel and continued by Governor Knowles. Approximately 40 people attended. There were subcommittees assigned for transportation, training, cultural events, etc. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 21 I-2. City Manager a. FEMA Reimbursement - Manninen reported he and department heads met with FEMA personnel last week regarding reimbursement of funds due to the recent flood. Reimbursements were: Fire Department removing debris from the dock area, $14,688.19; storm drainage repairs and replacement, personnel and equipment, $29,642; and beluga parking area, $13,050. A total reimbursable costs from either the Borough Director or FEMA indirectly $57,380.19. b. Job Descriptions - Manninen reported on the progress of the job description study which council directed staff to work on. The work group will be starting the interview process. They will begin this week. Based on the number of people to talk to, they will need to move the schedule to mid January. If that changes he will advise council. C. AML - Manninen reported he spoke with Kevin Ritchie of AML. Ritchie will be asking Manninen to serve as a Legislative Committee Co -Chair. Manninen asked if council wanted him to serve in that position during the next legislative session. Smalley stated he thought it a good idea for him to serve in that capacity. I-3. Attorney No report. I-4. City Clerk No report. I-5. Finance Director Acting Finance Director Feltman stated she would continue in the "acting" position until December 4 when the new Finance Director would start. She thanked council and department heads for their support. 1-6. Public Works Director No report. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 22 I-7. Airport Manager Airport Manager Ernst reported he will travel to Anchorage on November 7 and 8 to attend a conference with DOT and FAA. They will be discussing PFC possibilities and whether they would be the appropriate thing to do in Kenai. While there, he will also talk with FAA personnel and the State about an aircraft fire training facility. ITEM J: DISCUSSION J-1. Citizens None. J-2. Council Bookey - Asked how much money was made at the auction. Feltman answered approximately $40,000. Swarner - a. Noted that some of the signs at the airport advertised businesses no longer in business and that maybe they should be changed in order to be current. Ernst explained the city A --id not Pax fnr the restaurant This particular Sign l r...l iy^^^. ai p' g advertises the restaurant as well asthebar and was purchased by the bar owner. It is not a kiosk sign. b. Swarner also noted the amount of cigarette butts on the sidewalk in front of the airport terminal. Ernst stated he would have the cleaners remove them and would speak with the taxi drivers and ask them not to dump their ashtrays on the ground. Ernst added, it is an ongoing problem. C. Swarner reported the street light at Paula and Lawton was in need of repair and requested Kornelis to make sure it was on the repair list. d. Swarner reported she would travel to Valdez to attend the AML Conference. Moore - a. Moore asked if council was interested in discussing the bed tax issue again. He explained, he has been approached by business owners who would like the matter discussed again. Smalley suggested a work session in January would be a good time to discuss the matter. KENAI CITY COUNCIL MEETING MINUTES NOVEMBER 1, 1995 PAGE 23 b. Moore reported the street light in front of 1006 Inlet Woods was needing repair. Measles - No report. Bannock - Referred back to the discussion about the equipment reserve. Bannock asked Kornelis if he had another comment to make. Kornelis stated he wanted to report the road grader should be arriving soon with the forks. Kornelis added, he also has a six -year capital improvement equipment list which he refers to in budgeting for equipment. The grader was on the list for next year, but because they could get a good price, council purchased it this year. Smalley - Smalley requested Kornelis talk with DOT in regard to the signs at Tinker. There are two signs and are confusing to a driver who wants to turn down Tinker to the Middle School. Also the road sign at Linwood is far back from the next turn. Smalley suggested the sign be moved out to the stop sign. Williams suggested the transition area by Tern Street be moved further down as there is a large amount of traffic using that intersection. It makes it rather dangerous. Swarner suggested more gravel be added there as well. ITEM K• The meeting adjourned at approximately 9:45 p.m. Minutes transcribed and submitted by: Carol L. Fr as, City Clerk