HomeMy WebLinkAbout1993-04-12 Council Minutes - Work SessionKENAI CITY COUNCIL
WORK 88881ON
APRIL 12, 1993
6100 P.N.
KENAI CITY COUNCIL CREMERB
Swarner, Monfor, Bookey, Williams, and Smalley (Smalley arrived
at 6:50 p.m.). McComsey and Measles were absent.
Kornelis, Freas, Ernst, Brown, Graves, Morris, Porter,
McGillivray, Howard, Burnett and DeForest.
The work session began at approximately 6:05 p.m. Council
discussed the city administrator search first and then discussed
the 1993-94 budget.
Administrative Assistant Howard stated that the six finalists
were all contacted and all stated their interest and availability
for the position. waivers were received from all the finalists,
however Mr. Graper's original had not yet been received. Graper
had stated to No. Howard that he did not want to have the waiver
notarized in Dillingham as it is a small town and everyone will
know what he's doing if he has it notarized there.
Williams suggested Council decide to set the criteria and with
whom to start. Swarner stated she believed they should start
with telephone interviews with all the finalists, except Graper
if the notarized waiver is not received. Williams suggested.
Graper could come to Kenai City Hall at his expense if he did not
feel comfortable doing a telephone interview from Dillingham.
Williams referred to a work sheet provided by Administration.
Williams suggested council determine how many of the applicant
finalists they wished to interview. Williams added they could
interview two or three and see how it goes and then maybe the
other two or three.
Council worked on criteria.
Criteria for Neat Rovuds
a. Years of experience directly related to city manager
experience.
b. Direct experience with economic development.
KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 3
2. Operation of airport.
3. operation of a harbor.
4. Knowledge of water and sewer plants.
5. Knowledge of EPA regulations.
6. Knowledge of planning and zoning.
7. What is there experience in the past in regard to ambulance
service, i.e. city operated v. contracted.
8. Knowledge and experience in regard to senior citizen
programs.
9. Anything contracted out in other areas.
i4 10. ISTEA program experience.
Monfor stated that the answers to the "experience" questions
should tell the council everything they need to know to determine
whether the applicant should be invited here for a personal
interview. Williams stated they can do all the scoring they want
and it will still be determined on how council feels about the
person.
Swarner asked Ms. Howard her reaction of the applicants during
her conversations with them. Howard stated they were all
pleasant with which to talk. Howard added Graper sounded a
little tense at the time, but he told her he had just finished a
budget work session. Howard stated that Manninen calls a lot.
Manninen has not ever been to Alaska. Howard stated Zenor is
interested as well.
Williams stated he has been told by a couple of people council
may have made a mistake by rejecting Scott.
Background Checker
Attorney Graves stated the city will not be able to use the
Police computer for background checks. Federal regulations do
not allow such use. Graves added if council still sends someone
to the community, there is nothing to keep from asking.
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KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 2
c. Personnel/human resource management experience.
d. Experience in budget matters or direct preparation of
budgets.
e. Direct community involvement.
f. Direct experience with federal governmental agencies (state
and federal), i.e. FAA, Department of the Interior, EPA,
etc.
g. Actual legislative experience.
Williams suggested that prior to interviewing the applicant, the
applicant be told Council will be asking a lot of direct
questions and perhaps the applicant would like to elaborate on
his answers by submitting written answers later.
Bookey suggested sending by FAX a preparation list of questions.
Council decided no, they want to the applicant to think on his
feet.
scoring Method:
Williams referred to the work sheet wherein it stated at the last
work session, Councilman Measles suggested one
point be
for each year the applicant was a city manager, and one-half dad
Point for other municipal experience.
Monfor stated it will be difficult to score this round and the
applicant should be scored on the overall picture, i.e. score if
the applicant has experience with airports, harbors, what they
have done in economic development. Bookey added that in economic
development, one could do a big project and another could be
working hard to get a little pit done.
Williams suggested a set of
ask each candidate the same
stated that it might happen
and council may find they do
further with that applicant.
Questioner
questions be formulated in order to
questions. Monfor agreed. Monfor
an applicant be asked three questions
not like the answers and not go any
1. Ask all the "experience" questions listed under criteria
above.
lip
KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 4
Williams suggested finding a clipping service to look through
newspapers from the community. Graves stated council could
probably find someone to do that. Williams suggested the last
two years should be reviewed in newspapers. Graves added
Councilman Measles suggested there are services who will provide
information and will do that.
Monfor stated phone interviews should be done first.
spouse Travel 11XpensQ93
Council decided not to pay expenses for spouses to travel to
Kenai. If spouses would like to accompany the applicant, they
are welcome to come. However, the City will not pay the cost.
Telephone interviews$
Ms. Howard stated Manninen has said he will not be available for
a telephone interview on April 27 and 28. Williams said he would
be unavailable on April 22, 23, 24, 26, 27, and 28.
Graves stated to council the phone interviews must be public.
Only when personalities are being discussed, can council meet
privately. Freas stated Council Chambers would not be available
Saturday, April 17, 1993. Freas is to check the availability of
the conference room of the Bicentennial Building.
Council decided to hold a work session on Saturday morning, April
17, 1993, beginning at 9:00 a.m. Ms. Howard is to schedule the
telephone calls with the applicants allowing an hour between each
call. Three applicants will be interviewed. on Saturday and three
on Monday, April 19, 1993, beginning at 6:00 p.m., in the Council
Chambers of City Hall. Manninen, Rudd, and Pefferman to be
scheduled on Saturday. Zenor, Graper, and Weitzel on Monday.
Williams suggested to staff if they have any questions in regard
to their department, please forward them to Ms. Howard or Freas.
End of city administrator discussion.
13-ma T DlBcussION$_
Williams thanked Acting City Manager/Finance Director Brown for
putting the budget together and stated he appreciated the hard
work. Williams suggested they discuss the memorandum included
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KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 5
with the draft budget. Williams stated he liked the way Brown
(on page 6) stated council needed to decide how much money should
be taken from the fund balance. Brown suggested $300,000, but
that $500,000 should be the maximum.
Williams stated he did not want to raise the mill rate either.
Williams suggested first cutting items out of the budget and then
go back over and add items back in. Williams suggested cutting
the draft budget by a "considerable" amount.
imal Control Shelter --
Swarner asked for justification from Administration. Williams
stated he is not willing to put $350,000 into a new animal
control shelter. Williams stated he did not care if it appears
to be falling down. There may be lots of things that may need
rebuilding or reworking. Williams added the officers work hard
and do an admirable job to keep the shelter clean. Williams
stated he would personally support doing a conceptual or full-
blown design this year, but does not think the city should pay
the whole cost because the shelter is used regionally. Williams
suggested asking the legislature next year for funding. Williams
stated the shelter is used from all around. Williams stated he
believed this item should be removed from the budget, but put
some money into design costs.
Smalley added, and repair. Williams suggested Administration
give them a list of what is absolutely necessary to keep the
building going for another two years, i.e. the bare minimum of
cost of repairs. Williams stated he did not want to see a new
fence and euthanasia chamber. Williams added if there is
overcrowding, maybe a few kennels could be added onto the
building.
Monfor suggested the legislature be asked this session for
funding. Monfor added this is one of those little items that get
funded by the legislature. Williams stated the city can ask.
Swarner asked Brown why a new shelter was included in the budget.
Brown answered because it is needed. The building is in very bad
shape and is overcrowded. Brown added the wood is rotting. It
is a terrible structure. The building inspector said he should
have condemned the building. Brown added it does not mean it is
needed to do this year, but he is not saying money will be saved
by waiting either.
KENAI CITY COUNCIL WORK SESSION
APRIL 121 1993
PAGE 6
Williams stated if the city builds it today, it will cost more
than it would have last year. Williams added they need to
determine what kind of building to build, i.e. wood framed.
Brown stated that was one of the mistakes in the original
structure and that is why administration suggested using concrete
block for the structure. Kornelis distributed a copy of an
outline discussing the proposed new building which was written by
the animal control officers.
Williams stated at the absolute minimum, the present shelter
needs to be used another two years.
The refurbishing of the 1970 fire truck was discussed and whether
the aerial truck should be purchased. Chief Burnett stated the
1970 fire truck could be sold for approximately $10,000. Burnett
added refurbishing of the truck would cost approximately
$120,000. Williams stated he is not in favor of paying all of
the $425,000 for the aerial truck if another method of purchase
could be used. Williams suggested purchasing the truck on time.
Brown stated that could be done if one of the clauses is a non -
appropriation clause in the lease/purchase agreement. Williams
suggested the old truck be sold and purchase the aerial truck on
a lease/purchase basis for a period of time longer than one year
(two or three). Williams added then $300,000 can be put in the
equipment fund. Other pieces of equipment will be needed, i.e.
grader, street sweeper, etc.
Williams stated if the old truck is refurbished, it will be
needing housing. Williams asked if another firehouse would need
to be built. Williams stated more will be needed to be taken
from the General Fund Reserve to balance.
Brown explained the reserve accounts v. the unreserved accounts.
Williams stated he was suggesting this is one way to handle the
purchase of the truck. Williams stated $500,000 will still need
to be taken from unreserved. Brown stated $480,000. Williams
stated there is nothing that says if they can take the $300,000
they were going to put in reserve equipment and put it back into
reserve. Brown stated if you're not going to save it, don't
spend it. The maximum that should be taken from the unreserved
account is $500,000. Williams asked how much is in the account. '
Brown stated $6,119,000. Williams asked how much was in the
heavy equipment account. Answer $900,000.
• KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 7
Williams suggested putting $100,000 in and keep $200,000 back.
Cap the account at $1 million. Brown reiterated, if you don't
save it, don't spend it. Williams asked if $300,000 is put in
the Capital Equipment Reserve, it is part of the overall budget.
Answer yes. More discussion followed regarding reserve accounts.
Brown stated the council has set money aside where money would
come from to build an animal shelter. It was not added to this
year. By not building the animal shelter, it did not change
anything with regard to the appropriation of unreserved fund
balance. Brown added, the amount that can be safely taken out is
$500,000. If the contribution is changed from $300,000 to
$100,000 in the equipment reserve, then $300,000 should be the
amount to be taken from the general fund unreserved fund balance.
Williams stated he wanted to out that amount lower. Williams
stated he would like to take nothing from the general fund.
Brown stated then cuts would have to be made in operating
expenses.
Parke i Recreations
Smalley asked if the $17,000 discussed on page 4 is from the
Daubenspeck fund. Answer, yes. McGillivray stated Parks &
Recreation will not be allowed to use the airport tractor because
of FAA rules. That is why he has requested the purchase of a new
tractor. Airport Manager Ernst stated the airport tractor (Ford)
was purchase with airport money, not FAA money and therefore can
be used in other areas of the city.
Williams asked if that negates needing a new tractor.
McGillivray stated yes, at this time.
TAKE OUT $176,000 FROM PARX8 & RECREATION. McGillivray stated if
the airport tractor is available and they can use it, this will
be okay.
Williams stated his reasons for being cautious was (1) money
needed in other areas, and (2) income is unknown. Williams added
that if the city can get through this year conservatively, they
may have a better idea of what the income stream will be for next
year based on Kmart, bed tax, etc. Williams stated he wants to
be cautious this year. Williams added that it does not look like
there will be as bad a cut from municipal assistance as first
expected.
KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 8
It was agreed to remove the $17,000 from Parke & Recreation
budget.
Publia ealetp Generators
Williams stated he has not discussed this item with anybody.
Kornelis read a memorandum from Shop Foreman Reetz in regard to
the generator. The memorandum stated the problems which have
been had with the generator, etc.
Williams asked Burnett how many times the generator has been
needed this year. Burnett stated approximately 20. Burnett
explained that if they get many power fluctuations, they need to
switch over to the generator to protect the communications
equipment. Also, it is required to have a working generator in
case of disasters. Burnett they have had ongoing problems with
the generator for a few years.
Kornelis added they have been having mechanical problems (power
and electric) with the generator. Kornelis added the shop
requested the new generator because they maintain it. Kornelis
added the power has been out and the generator did not switch on
and shop has had to work on it to get it to work.
Williams asked if it is something absolutely needed. Williams
added a new one could be received in ten days if necessary. .
Burnett stated if there is a disaster, the public safety building
will be the hub of activities. Kornelis stated the funding would
come from the equipment reserve.
Williams stated he was looking at holding off on the $88,000 for
the new generator. Smalley stated to put a temporary hold on the
$88,000. Bookey stated that would be okay with him.
At Williams' request, Brown referred to large expenditures made
in the 1992-93 General Fund balance, i.e. $1 million to visitors
center, cost of land for congregate housing, and approximately
$200,000 for the courthouse land. Williams stated some of those
costs disappeared into the airport trust fund and were not within
the operating budget. Brown stated no, not to use the airport
fund as an excuse. Williams stated assets for the city had been
created through these expenditures. Brown stated the money was
spent, and added he was not differentiating whether the
expenditures were good or bad. Williams stated these
expenditures will probably not occur again and they may not
diminish by the same rate.
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eKENAI CITY COUNCIL WORK SESSION
APRIL 121 1993
PAGE 9
Brown referred to Page 5 of his memorandum. Brown stated about
$250,000 really will not get spent, but accounts for only about
3.5% of the budget. Council must decide how much money they want
to draw from savings to use in the FY 94 budget if they want to
continue financing operations from savings. Brown stated there
are some big capital items council is discussing in this yearts
budget.
Fire Marshal Position:
Brown stated the position has been on the books for many years.
Chief Burnett stated when he was appointed, changes were made
with personnel in areas to cover their greatest need. However,
with the amount of calls, etc., the need is there for the Fire
Marshall position. Discussion followed regarding paid v. free
ambulance service.
Burnett stated their overtime budget this year will be in excess
of $88,000. If all overtime were paid, the amount would be over
$124,000. The personnel have volunteered much of their time.
Burnett stated he was suggesting putting on a fire marshall to
use for shift coverage. This will cut back about $24,000.
Swarner stated she would agree to the position if the overtime
was cut.
City Hall Telephone ystem:
Swarner referred back to the proposed rental of a new phone
system for city hall. Brown explained the system would be rented
like the one for the public safety building. Brown added 50% of
the rent paid can be used to buy the system. While the system is
rented, the maintenance is paid by the company from which it is
rented. Brown stated he has discussed the rental of the public
safety building's system with those working there, and it is
working well.
Williams asked why a new system is needed as it works fine for
him. Freas stated it is no longer possible to get repair parts
for the telephones. Howard added some of the intercoms do not
work properly in some of the phones.
Monfor stated she did not have a problem with the new telephone
system. Williams stated to leave the new telephone system in.
• KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 10
Williams stated to temporarily keep the now phone system and lire
device and to keep the fire marshal.
Communications: Okay.
Animal CQgtrol: Okay.
Public Works Administration: Okay.
hB op:
Williams stated the $88,000 for the generator was on hold.
Williams questioned the cost of the software. Kornelis stated
this was a price they received from IISCO for customized
software. It is possible they could get software which is not
customized. This was an estimate. Kornelis explained the
software is for the employees to use to keep track of maintenance
records of all vehicles and parts. They were using an old
computer, but it just doesn't work well.
Williams stated he did not have a problem with the shop having a
computer, but is concerned in regard to the software costs.
Kornelis restated this is an estimate/quote. IISCO went to the
shop and looked at their operation.
8tree s:
Kornelis stated there will be enough money to purchase one dust
control treatment for the current (FY93) budget year.
Williams questioned whether it was necessary to purchase a grader
at this time. Kornelis gave council background on the grader.
Kornelis stated it is not reliable and would cost a large amount
to repair it. Kornelis stated he did not believe it is worth
putting extra money into it. Kornelis speculated they may be
able to get through the winter with it.
Williams suggested purchasing the grader and paying for it on
time. Brown stated it did not make sense to earn three percent
interest on an investment and pay out six or eight percent on
time payments. Why set the money aside when the cash is
available.
0 Kornelis stated the 1978 grader will be needing to be replaced .in
two or three years.
• RENAI CITY COUNCIL WORK 8888ION
APRIL 12, 1993
PAGE 11
It was determined to leave the purchase of the grader in.
Stet_ Lighting=
Swarner referred back to buildings and asked•Kornelis when will
the City.have a new building inspector. Kornelis stated the
person he offered the job to was to call him today if he wants
the job. Kornelis added two persons have been to Kenai for an
interview.
Street lighting was okay.
Okay.
Roareation s
Williams referred to the pay range increase discussed in Brown's
memorandum. The history of the position was discussed with
McGillivray. Williams referred to Brown's memorandum wherein it
discussed no pay range changes for any employees. Williams
warned if a pay range is changed for one, other positions may
request increases. Monfor asked how many other positions were
asking for a pay range increase. Brown stated none; asked for no
such requests because he did not want to open that discussion.
Brown stated he did not agree with what happened in this case.
Step A of all ranges is -for new hires to that range. Williams
asked if Frates should have started the position at the same
range. Brown stated absolutely. This position.is no different
than hiring an officer for the police department and starting the
hire at a Range 7 instead of a Range 14.
McGillivray •stated he would take a cut in order to make money
available for this employee to be raised to a Range 9. Monfor
stated he should have been hired at a Range 9. Smalley asked if
he could be fired and rehired as a Range.9. Swarner stated the
position should be a Range 9. Williams added hiring was not the
council's job. Brown stated it is council's job to determine
what pay ranges positions should be given. Williams stated they
did that and it is now up to administration to correct the
situation. Brown stated there is no money in the budget at this
time or next year to raise this position's range.
KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 12
Council discussed the situation and decided to raise this
position to a Range 6 as a stand-alone case and will revisit the
situation. The tractor purchase is out.
Reautif ication:
Williams requested this item be discussed later.
Loigment Replaoement:
Williams suggested placing $100,000 in the equipment reserve
instead of the usual $300,000. The balance would then be
$800,000 instead of $1 million.
Williams discussed the EPA regulations and the potential costs of
treating the city water. Williams suggested drilling a test well
to find another aquifer. Cost for the well would be
approximately $20,000 instead of the potential cost of $500,000.
Williams suggested doing a test well or having a plan by the end
of the IS -month grace period. Williams recommended putting the
money back in the water and sewer fund. Williams suggested
appropriating the money from the General Fund.
Brown stated that would be asking taxpayers who
sewer service to contribute money to the water
They will subsidizing a project from which they
Williams stated this will be discussed later.
RoatiaQ Facility:
Okay.
Okay,
Congregate Housiaa:
have no water and
and sewer system.
reap no benefit.
Monfor stated her concern that rent monies received would be used
to repay the general fund for the land on which the congregate
housing project was built. Monfor stated the land was a
contribution. Monfor stated she felt some of the money received
from the rents should go into the Senior Center program for
utilities, etc., because many of the residents of the housing
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KENAI CITY COUNCIL WORK SESSION
APRIL 121 1993
PAGE 13
project eat meals, use craft rooms, etc. at the Center. Monfor
added, she did not have a problem with that placement of money as
long as it does not pay for the land.
Brown stated the money would not be paying for the land. Brown
stated there had been arguments about that when the ordinance was
passed setting how the rent money would be used. Brown stated
there is nothing in the ordinance about paying for the land.
Brown stated there is a Borough Fund Grant to pay for operating
expenses.
Williams asked where the money would come from if the borough
fund money was not there. Swarner stated from the General Fund.
Monfor stated that even though the money is going back to the
General Fund, there is nothing that says money could not be taken
out from the General Fund to pay for the utilities at the Center.
Porter stated she requested the General Fund to pay for utilities
at the Senior Center because of the continued shrinking of their
budgets. Porter stated she personally feels the city is
supplying utilities for other buildings that they own and should
be paying for the Center's utilities as well.
Williams suggesting leaving it as it is now until the grant
budgets come in June. In July an appropriation could be made.
Swarner stated grant money does not pay for utilities. Porter
stated grant monies are used to pay for employee costs. Porter
stated if the city pays for the utilities, it will not cost the
taxpayers anything.
Williams suggested setting the discussion of utilities aside
until the next work session.
Brown said there is an ordinance on the books that the $58,000
must be placed in the General Fund. Monfor stated she is now
wondering if this was a good ordinance. Monfor stated she wants
to be able to say that the congregate housing project is totally
self-supporting.
Brown stated what they are asking to do is take monies from one
fund and use somewhere else, i.e. Congregate Housing Enterprise
Fund, transferring to the General Fund, and then transferring to
the Senior Center.
KENAI CITY COUNCIL WORK SESSION
APRIL 12, 1993
PAGE 14
Williams suggested they amend the ordinance to say the utilities
would be paid by the city's share of excess proceeds. This year
they could increase the Senior Center budget and then amend the
ordinance.
Water. a 8eyre_r s
Williams suggested having the Thompson Park bid ready by July 1
and by that time we will know if we have grants with which to pay
for the costs. Williams stated if the money is depleted from the
water and sewer fund, water and sewer costs will have to be
raised. Williams asked Brown how much of a rate increase would
be needed to raise an additional $300,000-$400,000 a year. Brown
stated a 10% increase would raise about $100,000. Williams
suggested a 10% rate water and sewer rate increase be made this
year.
-' sewer cleaning Trucks
Kornelis stated he has looked at lots of different ways to repair
the truck. Swarner asked why Kornelis purchased a truck with
this type of design. Kornelis stated at the time, it was the
best design made. Kornelis stated the shop personnel suggest
trading this truck in and buying a new one with modular tanks.
They believe it will take approximately $50,000 to repair the
truck. This is one of the most used trucks.
Truck stays in,
Monitor system:
Williams suggested waiting until the system is put in Thompson
Park. Kornelis stated he would want to bid the lift station with
the new telemetry system in it. Williams stated to build the
lift station with nothing in it until the Thompson Park project
is bid. Kornelis stated the telemetry system is ten years old.
They are having a lot of problems with it. The system prevents
flooding of basements, etc. and chlorine leaks.
Williams asked if they could do without it this year. Kornelis
stated the biggest danger is if there is a chlorine leak.
Williams suggested to do it next year when the bid is let for
Thompson Park. Kornelis stated he understands what Williams was
saying. Kornelis stated the system is okay if there is no
problem. However, if a basement floods and there is a chlorine
KENAI CITY COUNCIL WORK SESSION
APRIL 12,
1993
PAGE 15
The system
leak at the same time• the leak would bwill dbe taking a gamble
needs to be upgraded for safety. They
it is not.
Kornelis
Willi
ams asked how many times it failed thigryear. there have been.
stated twice. Kornelis added on
doneall until this year*
quite a few. No damage has
than l�sopark.
' stated they have requested $1,350,000 from DEC. Another
Williams rant from the legislature.
$1,350,000 is needed as a matching g
Williams st
ated he does not want to set the project
until
the legislative session is over. Discussion wen
telemetry system.
This item will be revisited.
Im 8rovoea
with Bernie Murray at 3:00
Williams reported he heltelleephoneiproject. A letter of
p.m. with regard to t
The letter
commitment should be received wiohdo then aeproje t• they Will
will state that if they decide t Williams added if AST
reimburse the city for survey costs, etc.
comes in, they will take a lot of long diahead. bPTlnwill abe
form Alascom and Pig while theland is
PTI sto ebeing appraised, etc.
working on the des sign
Their planner is on a 0-hour notice to meet with PTI.
The work session ended at 9:10 p.m•
Minutes prepared and submitted by:
Carol L. Fr as, C ty Clerk
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