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HomeMy WebLinkAbout1992-06-02 Council Minutes• 4- • AGENDA KENAI CITY COUNCIL - REGULAR MELTING JUNE 2, 1992 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. Be BCHEDOLED VVYWC CO (10 Minutes) 1. Stephanie sanders - Marathon Oil Company regarding NPDES Discharges. 2. John Douglas - Regarding CIRCAC. 3. Joann Elson - Regarding junkyards. C. PU9LIC HEART GS i. Ordinance No. 1488-92 - Amending KMC 22.05.080 to Provide for Grant or Donation to Non -Profit Housing Corporations of Foreclosed Property Held by the City for More Than Ten Years. 2. Ordinance No. 1497-92 - Adopting the Annual Budget for the Fiscal Year Commencing July 1, 1992, and Ending June 30, 1993. 3. Ordinance No. 1498-92 - Amending KMC 23.40.020 to . Provide for Monthly Payment of Holiday Pay for Certain City Employees. 4. Ordinance NO. 1300-92 - Amending the Kenai Municipal Code Land Use Table, Central Commercial Zone, Residential Uses, 5. Ordinance No. 1501-92 - Amending Kenai Municipal Code Land Use Table, "Miscellaneous." -1- d 6. Resolution No. 92-36 Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 1992 and Ending June 300 1993. 7. Resolution No. 92-37 Amending the City of Kenai Public Utility Rates and Regulations.' S. Resolution No. 92-38 - Awarding.a Contractfor the Construction of Approximately 506 Lineal Feet of Sidewalk in Leif Hansen:Memorial.Park to Tri-City's Construction for the Total Amount of $14, 674.00. 9. Resolution No. 92-39 - Awarding the 1992 Lease of the Kenai Public Dock Station No. 3 - One Crane, Parking Area, and office to Fishhawk Fisheries for $12,000 or .0375/lb, Whichever is Greater. 10. *1992 Games of Chance and Contests of shill 8ernit Application - Alaska State Elks Association (ASEA). w 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 1. *Regular Meeting of May 19, 1992. F. $• AML Mums 1. Bills to be Paid, Bilis.to be Ratified 2. Purchase Orders Exceeding $1,.000 3. *ordinance No. 1499-92 - Amending the official City of Kenai Zoning may for Certain.Lands Described as Portion of Section 5 & 6, T5N6, R11W, Townsite Historic Zone. . 2- • 0" I. %T. R• • 4. *0rd1nanas No. 1502-92 - Increasing Estimated Revenues and Appropriations by $196,60o in the General Fund to Purchase Land From the Airport for the New Court Facility, 5. *Ordinance Ho. 1503-92 - Increasing Estimated Revenues and Appropriations by $111,740'in the Airport Drainage and Safety Zone Improvements Project, 6. Discussion - Retirement Incentive Program (RIP), 7. Approval - PY92-93 Insurance Program. S. Approval - Consent to Assignment of Lease for Security Purposes - Lot 2, Block 1, Gusty subdivision/Thomas H. & Dorothy C. Wagoner, 9. Approval - Change Order No. 7, Kenai Congregate Housing - Gaston & Associates, Inc./$2,522.00. 10. Approval - Change Order No, 8, Kenai Congregate Housing - Gaston & Associates, Inc./$6,522.00• 11. Approval - Change Directives - Kenai Congregate Housing a. Directive No. 19 - Fire Detection - $1,033.72. b. Directive No. 20 - Security Hardware - $20921.00. 12. Discussion - Boat Launch Fees. AminaTRATION RxR=0— 1. Mayor 2. City Manager 3. Attorney- 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager 1. Citizens 2. Council (five minutes) -3- MAX CITY COUNCIL MEETING MINUTES JOB 2, 1992 PAGE 1 Imm CITY CO=CIL RNOMM !!DOTING KIN9T'89 XNM COONC=L me MAYOR 90= J 9 WILLZU8 0 VREBIDINQ Mayor Williams called the meeting to order at approximately 7:02 p.m, in the council chambers in the Kenai City Hall Building. Mayor Williams led those assembled in the Pledge of Allegiance. A-2 . r.. Roll was taken by the Deputy City Clerk. Council members present were: Williams, Measles, Smalley, Swarner, McComsey and Walker. Monfor was absent due to a trip to South Carolina to represent the'City at the All American Cities Competition, A-5 0 Mayor Williams requested the following changes to the agenda: REMOVE: C-1 Ordinance 1488-92 ADD: C-li, Resolution' No. 92-40 - Opposing the Curtailment,of operations of the Wildwood Correctional Facility, H-20 Purchase Order to HEA for placing.power to Triangle Park at Airport Way - $20000 H-13, setting Board.of Adjustment Hearing Date - Appeal of Bob E. Wortham'regarding Conditional -Use Permit to Leila: Davidson for Development of Cabin Rentals in an RR-1 zone. Information xt." ft : -Kornelin memorandum regarding'1992-93 street budget dust control. A —so V/� amovsI N-3 Ordine:►ce 499-92 requested. by :Smalley. �t If. y ' KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1992 PAGE 2 There were no further changes to the Agenda or Consent Agenda, There were no objections to the amended agendas. SO ORDURD., 1. Stephanie Sanders representing Marathon Oil Company,, spoke to Council regarding regulations for discharges from oil platforms in Cook Inlet. She handed out an informational brochure and offered to come back before council to answer any questions they may have when the new permit comes out. 2. John Douglas representing CIRCAC. Mr. Douglas is a new local appointee to this congressionally appointed watchdog committee of volunteers from the Cook Inlet Region who seek funding from the industry. He advised council that he is available for information and is seeking ideas as well, and encouraged members to contact him. Mayor Williams advised council that he and Mr. Douglas will be meeting with a representative from the U.S. Office of Budget and Management and they will'be looking at the operation of CIRCAC. 3. Joann Bison - requested to speak regarding junk yards. She was not present. Mayor Williams commented on the junk car problem and advised that he will bring the matter to the Kenai Peninsula Caucus this Fall to see what can be jointly done about the disposal problem. Cs-2. Ordinance No. 1497-92 - Adopting the Annual Budget.for the Fiscal Year Commencing July 1, 1992 and ending June 30, 1993. NOTION$ Councilman Measles X0VBD for adoption of Ordinance 1497-92, Councilwoman Swarner SSCONDRD. Vwblio Comment r Paul Turner - a member of the Library Commission, addressed the council regarding the constant need of the citylibrary fo ry r funds. The Library services are invaluable to the community in • 6 • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 3 ways different from the visitor center, public health department or airport, in that it is a place of study and learning to enable persons to become good citizens of this world. His perspective is that the Library services are rated well with respect from the community, and deserves councils continued support. Mayor Williams explained the budget cuts across the board of Of' due to decline in revenue. The Library budget was reduced by $100 and will run this year at $272,905. The actual 0 cut would have been approximately $1,900, but council chose not to do that. In comparison, the Council did eliminate the purchase of two squad cars at about $40,000. This budget shows an increase of taxes by .8 mill or $80 on a $100,000 house. Previously Kenai residents have been paying $270 on $100,000 and this year it will increase to $350 on a $100,000 house. Disouesion: Councilman Smalley stated that his son is employed in summer employment with the City of Kenai, although his income does not directly contribute to the family budget. He does not see this as a conflict of interest and he will be voting. Councilwoman Swarner also has a child employed for the summer by the City and does not see this as a conflict and will be voting. The Mayor stated that he reserves the right to rule on allowing these council members to vote on the budget without the appearance of a conflict of interest under Municipal Code 1.85.060(d), and so ruled that they are entitled and should vote on this budget without fear of conflict. Councilman Walker stated that he does not agree that the whole entire budget has been cut 6% across the board. He will not support this budget, and as previously stated in work sessions, we need to cut further. VOTE: Swarner: Yes Measles: Yes McComsey: No Smalley: Yes Williams: Yes Walker: No. MOTION VA88ED. The 1992-93 Hudgot in adopted. C-3• Ordinance No. 1498-92 - Amending KMC 23.40.020 provide for Monthly Payment of Holiday Pay for City Employees. to Certain • • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 4 MOTION: Councilman Smalley ROVED for adoption of Ordinance No. 1498-92. Councilwoman Swarner SECONDED the motion. No public comment. VOTES Swarner: Yes Measles:* Yes McComsey: Yes Smalley: Yes Williams: Yes Walker: Yes MOTION PABBED. C-4, OCdLUauco No. 1500-92 - Amending the Kenai Municipal Code Land Use Table, Central Commercial Zone, Residential Uses. Councilman Smalley MOVED for the adoption of Ordinance No. 1500- 92. Councilwoman Swarner SECONDED. No public comment. VOTE: Swarner: Yes Smalley: Yes MOTION PASSED* Measles: Yes McComsey: Yes Williams: Yes Walker: Yes C-5, OrdinancO No. 1501-92 - Amending Kenai Municipal Code Land Use Table, "Miscellaneous". Councilman Smalley MOVED for adoption of Ordinance No. 1501-92. Councilman Measles SECONDED. No public comment. DSBCUBBION: Councilman Walker stated that the Planning & Zoning Commission minutes indicated passage of Resolution PZ 92-15 that would.make this particular ordinance not necessary, and suggested tabling., this ordinance until we look at their next ordinance coming up.' If we choose not to pass it, then make a decision for one or the other, because it would basically eliminate the need to put each item, or list each item in the land use table. Councilman Smalley stated there is no debate on tabling a motion, Councilman Walker replied that he did not make a motion. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 5 Mayor Williams requested discussion surroundin the appropriateness of this ordinance as compared o the other. Councilman Smalley stated that his personal opinion is that Item 155inis more appropriate. The difference between this and PZ 92- ot great. It's a time reference situation. This particular ordinance will allow, for instance, a current application for rental cabins to be built within the city, There is nowhere in the code that allows for this, clinance will allow the applicant to begin the operation Tor®coonstruction or 3 weeks or maybe even 6 weeks prior to PZ 92-15. 2 Councilman Measles stated that those things hanging out there or requested before P&Z would move ahead a lot faster if we the ordinance in. Were looking at probably a weeks minimbrought um before that could be effective, and that would do away with an hope they would have of doing anything this summer. y Mayor Williams asked for clarification of PZ 92-15. Councilman Measles explained it is a P&Z Resolution requesting an ordinance be brought to council. if PZ 92-15 were to ,pass,. then passing this ordinance reallydoesnI t do overrides and does away with he need to makeindividual it • amendments to the Land Use Table, al amendments made to the Land Use Tableeand hheesees neen o many making one more, so these people can move on with their projects. Councilman McComsey stated that this is a conditional use permit so anytime someone wants a cabin rental they still do have to come before P&Z, and they can't just start building in Rural Residential, Councilman Walker stated it was not his intention to delay anyone from putting their business into effect, and based on that, he doesn't have any great objections to this and supports Item C-5. Particular ordinance Mayor Williams stated that this matter does relate to item H-13 to be addressed later on. VOTH= • �7_ KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1992 PAGE 6 C-6. Resolution No. 92-36 - Fixing the Rate of Le Property Tax for the Fiscal Year Commencing Levy of 1992 and Ending June 30, 1993. LOTION$ Councilman Measles MOVED for adoption of Resolution 92-36. Councilman Smalley SECONDED, No Public Comment. VOTE: Swarner: Yes Measles: McComsey: No : yes Yes Smalley: Williams: Yes Walker: No MOTION PARSED. Mayor Williams stated that the mill rate for City of Kenai for the 92-93 annual budget will be 3.5 mills, an adjustment of Sight -tenths of one mill and will result in $80 per $100,000 increase. C-7* Resolution No, 92-37 Amending City of Kenai Public Utility Rates and Regulations. MOTION: Councilwoman Swarner MOVED for adoption of Resolution of 92-37 and asked for unanimous consent. Councilman Smalley SECONDED. No public comment. DISCURSIONI Councilman Measles stated there is no kind of guidance in the Resolution as to how a determination would be made whether to require a meter or not. Attorney Graves replied that it would be a decision by the City Administrator upon getting input. A discussion followed regarding metered usage by commercial.useks and fire hydrant usage by private contractors. Councilman Measles MOVED TO TABLE this ordinance. Councilwoman Swarner SECONDED. Measles indicated this is not tabled to a time certain. 0 • • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGN 7 C-86 R•valution We 92-38 Awarding a Contract for the Construction of Approximately 506 Lineal Feet of Sidewalk in Leif Hansen Memorial Park to Tri-City Construction for the Total Amount of $141,674. I[OT=ON: Councilman Measles MOV= for adoption of Resolution No. 92-38 and asked for unanimous consent. Councilman Smalley 8ECONDBD. PUBLIC COMMENT: Kayo.McGillivray, Parks and Recreation Director addressed the council to explain that the bid last Fall came in at $32,000. The original bid came in above funds available. it is recommended that a section of sidewalk approx. 40 feet from the existing sidewalk to the new Merchant Marine Memorial be done, and to delete the section of sidewalk going over to Ryan's Drive CT,00p C shown on diagram). This would be within the budgeted monies. The Mayor asked Keith Kornelis if he is satisfied that the bidding contractor understands the soil conditions in that area and is prepared to excavate sufficiently to allow for proper installation without failure of the cement? Kornelis indicated yes. The Mayor called for unanimous consent. by Councilman Walker. VOTL: Swarner: Yes Smalley: Yes MOTION PASOMD. Measles: Yes Williams: Yes Objection was indicated McComsey: Yes Walker: No C-9. kesolutioa No. 92-39 Awarding the 1992 Lease of the Kenai Public Dock Station No. 3 - One Crane, Parking Area, and Office to Fishhawk Fisheries for $12,000 or .0375/lb.0 Whichever is Greater. �[OTIOH: Councilman Walker MOVXD for adoption of Resolution No. 92-39. Councilwoman Swarner SWONDED, No Public Comment. Keith Kornelis explained that this lease was negotiated after there were no bids. The proposal from Fishhawk was per Specifications in the City's bid package. The bid packages for Station 3 had an option to allow for a second year. Fishhawk wants that option. Due to cancellation of last years leases, we are starting with both dock stations for lease this year. 16 No objection to unanimous consent. 8o ORDERED. Councilman Measles MOVED that council direct the city administration to write up the lease for one year with no option on the second year. Councilman Walker 88COMD8D. No objection. 80 ORDERED. C-Z0. 1992 Games of Chance and Contests of Skill, Permit Application - Alaska State Elks Association (ASEA). Approved by Consent Agenda. Resolution No. 92-e0 Opposing the Curtailment of Operations of the Wildwood Correctional Facility. MOTION: Councilman Smalley MOVED for approval of Resolution No. 92-40 and asked for unanimous consent. Councilwoman Swarner 88COMD8D. No Public Comment. No objection to unanimous consent. 80 ORDERED. Council members were requested to sign the Resolution. RECESS at approx. 7:55 p.m. The Mayor called the meeting back to order at 8:13 p.m. D• COMMISSION/COMMITTEE REPORTS D-1• Council on Aging. Councilwoman Swarner reported the inside work on the Congregate .,Housing Project is proceeding. A representative of the Commission on Older Alaskans visited the Senior Center. Mayor Williams mentioned that the publication "Senior. Voice$$1 h statewide senior citizens newspaper, carried a full color.large picture of the housing.project on the front page this month. D-Z. Airport Comission, Councilman Measles reported there has been no meeting since the last council meeting, but the minutes of May 14, 1992 are in the packet. D-3. No report. D-4. No report. D-s. Harbor comoissioa. Library Commission. Parks i Rocroation comission. Kayo McGillivray reported there will be a meeting next week, 44 probably on Thursday, June lath. They will be looking at bias on playground equipment. Councilman Smalley asked about seeding of the play areas in the Forest Drive Park. McGillivray said that seeding will be done even if the playground equipment is not there. Keith Kornelis stated that some kind of a fence should be put up to keep traffic out. Possibly post and chain .or'a chain.link fence. The crews are getting close to finishing the excavating. Telephone poles will be brought in to separate sand and topsoil for playground. Councilman Smalley asked if campers will.be charged for the use of, the park. Kayo McGillivray stated there is no charge, at this point. Nothing has been set. Councilman Smalley asked if there will be crews going through the park checking the rest rooms, because they are'. in. need, if we charged a camping fee, part of that revenue.could help offset costs incurred. Kayo McGillivray said the pumping will.be done.in the next week or two, when it is no longer frozen. Then. the crew will go ..n and clean them. Mayor Williams inquired how far away are we from seedingthe ball park next to the Junior High School. Keith Kornelis said there • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 10 is still some grading to finish before it's turned over to Parks for seeding. Mayor Williams said we're getting a lot of complaints about 3 & 4-wheelers causing dust in there. Kayo said it's in the Borough's ball park right now. They're going to fence the perimeter. Basically, we won't do anything until the fence is up. It's going to be done anytime. Mayor Williams also asked about topsoil on the Lawton Drive strip. Keith Kornelis said it's difficult right now to find. topsoil. The airport project will have some when it starts up.' Mayor Williams asked if Zubeck could drop a few loads. Kornelis said we'll probably have to pay them because their dump sites are all quite a bit closer. An option would be for us to do the hauling. Kornelis will bring it up at the pre -construction conference this Thursday. Councilman McComsey asked about the old dump site where we were going to put some ball fields. Could topsoil be taken there also. Kornelis said that's a long haul. We'd have to pay the contractor. 16 D-6. Planning and zoning commieeion. Councilman Smalley reported on the commission's last meeting. One matter was on amending the Code -- Conditional Use Permit - to allow rental cabins. Another issue that came up was Resolution 92-8, the Davidson Conditional Use Permit on Rental cabins for reconsideration. We talked about a potential code violation off of Portlock where there appears to be a year-round garage sale that's in violation. And, I believe the City was directed to send a letter explaining that they are not in compliance and to come in to compliance._ We have a letter that was presented to us tonight, which we're going to be dealing with at Item H-3. That's one of the reasons why I wanted it pulled, concerning Townsite Historic. This body had sent a request that Planning and Zoning reopen hearings on the Townsite Historic concern. P&Z felt that they had held.the appropriate number of public hearings, that people had been, contacted; those interested parties came to the meetings; it was felt there was adequate input; there were adequate numbers of meetings and advertisements for the meetings; and they felt and I personally feel this way too, that the existing Townsite Historic that was passed in 1986 deals with a very very large area of land with a somewhat restrictive ordinance. It was felt by the Commission and even in the hearings that we had, that it would, be better off to reduce the size of the land in Townsite Historic, and then, if need be, to deal with the ordinance itself. And so, basically, that is what was the result of the commission's public KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 11 hearings and what they sent back to us was a recommendation to reduce the land size of Townsite Historic and then, if we would make that request to them, would have public hearings on the ordinance itself. So, that's kind of what H-3 is going.to be dealing with. Mayor Williams asked Commissioner Bannock to address the Council on that issue. Mr. Bannock addressed the council thanking them for the opportunity to speak. He stated that there are two names that are missing on the letter from P&Z in the council's packet. One is Kathy Scott who was unable to attend the last meeting. The other is Carl Glick who did not get his name on the letter, but I did speak with him on the telephone from Prudoe Bay. He had a copy of the letter and he asked that his name be penciled in there as well. The letter is the feelings of the Planning & Zoning Commission, and should you choose to not act on it, or should you choose to send it back to the Planning & Zoning Commission, obviously we'd be disappointed, but we would need some serious direction as to what the City Council exactly wants. It is not our belief that we will be able to solve the problem and convince all of the affected property owners that are in there right now. That one ordinance will fill all of their needs, rather, if it be the needs of the church, the needs of the native community, needs of the businesses that are in there, I don't feel that there would be an ordinance or a zone that would really make all of them happy. So, it was proposed at an earlier work session that the first thing we do is cut down on the size. I think we've done a pretty good job of cutting down the size on that. There is one applicant that still wanted to be excluded from the boundaries - Mr. Cherrier. I was hoping Mr. Cherrier would be here tonight, but he's not. And, we've come up with. those boundaries. We think that they're good boundaries. We would like to see the City Council adopt those boundaries. And then, if it be the Council's wishes that we reopen up the TSH ordinance, we'd be more than happy to do that. And, with adequate public input just on that smaller portion of Kenai. Mr. Bannock read the letter into the record. (copy is included in packet.) Mayor Williams stated: I think some of our concern came about because some of us were contacted by members and land owners over in that area who felt as though they had not been properly heard or had not had time to put in to input, you know, proper information and one thing and another. I do notice in going. through your minutes of your meeting that there seems to have been a great number of people there relative to the number of,. people that generally attend, that seemed to have an interest and KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1992 PAGE 12 did voice their opinions. I notice here that some of them -did.. seem to feel as though it was kind of ambiguous and didn't understand it, and some had questions regarding the ordinance. And I agree that the ordinance could be taken up at a different time. I guess the question that I would pose to you is, how comfortable do you feel with the whole process? Obviously youlve sent a letter through and signed it. Do you feel there were sufficient numbers of property owners in those immediate areas affected to allow for what would be considered good pulglic input? BANNOCK: I'm not qualified to answer that question, because. there was a question as a matter of point specific on that, loll defer that to Councilman Smalley, SMALLEY: Actually, the property owners were all notified of the meeting. Hut, the Code actually doesn't require that they be notified. One of the concerns that came up was the notification went to Kodiak for the church, out to the, I want to say the Archdiocese, rather than the local church. Where in the past, notifications had come to the local church. But, what we found out afterwards at the meeting, is that the Code does not require that the property owners be notified. But, they were all notified. MAYOR: It appears that we had quite a few of the property owners there - Cowan, Cherrier, Trombley, Schmidt, Targonsky were all there. They seem to be the largest property owners. Cherrier and I'm not sure how much property Schmidt has in there, if any. But, they seem to be the ones that are most concerned with the Townsite Historical. And, Arness was there. SMALLEY: Yes, and I think that most of the concern was over the actual ordinance itself. I think that many of those people that spoke wanted the ordinance dealt with, then the land dealt with. And the Commission feels that the restrictive ordinance as it is, is intended for a more sensitive area, and felt very uncomfortable having such a large area affected by that restrictive ordinance. The Commission is not unwilling to hold public hearings and look into the ordinance itself that effects Townsite Historic. That will be my recommendation this evening. MAYOR: The amended motion was 4 to 2 against, and the main motion passed unanimously. So. I think that we should first.of all commend the Planning & Zoning Commission for taking this project on. And, if in fact it's the wishes of the Planning A Zon ng Commission by unanimous consent to handle it in this manner, I think Council should recognize that and proceed. We put a great deal of faith in their work and time that they spend, so I think we should just move ahead with it. • K$NAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 13 D-7. MI8CELLANEOUS COHMISSION/COMNITTEE REPORTS Mayor Williams reported that the All -American Cities Committee's Presenting Team is departing for Charlotte, North Carolina. The Presentation is Friday and they will be returning, by Sunday evening- Watch the Peninsula Clarion for an announce Monday morning's edition. went in s• XXNUTU The Minutes of the Regular Meeting of May j,9, 1992 were approved by,consent agenda. pp F• CORRESPONDENCS - none a• OLD BUSINESS - none g• NEW BUSINESS E-10 Bills to be paid, Bills to be Ratified KOTION1 Councilman Smalley NoVgD to pay the bills and Councilwoman Swarner SECONDED. There were no objections. so ORDERED. M-R* Purchase orders EYosedin g $l,000. XOTION= Councilman Smalley awn to pay the bills over $1,000, to include item 8-E in the amount of $2,600 to Homer Electric associati for running power to the Triangle at Airport Way. n Measles SECONDED, Councilman VOTEt Swarner: Smalley: No Yes Measles: Williams: Yea Yes Yes Walker: Walker: Yes Councilwoman Swarner stated she objected to spending $2rfi00 for electricity. XOTION PASSED. 8"3• DISCUSSION. ORDINANCE NO. 1499-.92 Amending the Official City of Kenai Zoning Map for Certain Lands Described as portion of Section 5 & 6, T5N, R11W, Townsite Historic Zone. 17 KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 14 NOTION $ Councilman Smalley Mom for introduction of Ordinance 1499-►92 amending the official City of Kenai Zoning Map for certain lands described as Portion of Section 5 & 6, T5N, R11W, TOWNSITE HISTORIC ZONE. Councilman McComsey SECONDED, No objections from Council. Councilman Measles asked for unanimous consent. No objections from the public. Ordinance 1499-92 In introduced. Councilman Smalley requested that this body request Planning & Zoning to begin opening hearings on the TSH Ordinance itself. Mayor Williams said, it's been requested that the Planning & Zoning open these hearings to the general public. The Clerk will see that a letter is written to Planning & Zoning from the Council requesting that they do so as we've discussed. With council's permission, I would ask that in my absence that the Vice -Mayor can sign the letter if necessary or the Clerk may use my signature with her initials. 8-4, Ordinaaoo No. 1302-92 and Appropriations by Purchase Land from the Facility. Approved by Consent Agenda. - Increasing Estimated Revenues $196,600 in the General Fund to Airport for the New Court 8-5. Ordinance No. 1503-92 - Increasing Estimated Revenues and Appropriations by $11,740 in the Airport Drainage and Safety Zone Improvements Project. Approved by Consent Agenda. H-6. Discussion - Retirement Incentive Program (RIP) The Packet contains a memorandum from Charles Brown, Finance Director, to City Manager Brighton. Brighton indicated that there may be some employees in the police and fire departments interested in this program. Councilman Walker MOVED to direct the City Manager to have performed a savings or loss analysis on this latest RIP and have it brought back to council so we at least have an idea of the numbers. NO 8ECOND. Councilman Measles MOVED that the administration be directed to notify the employees that the City will not in t participate his retirement incentive program. Councilman McComsey SECONDED. Mayor Williams said he felt that council should take a look at information from the State and whether there are some significant savings - looking forward , to next year I s budget, to be ahead of time. g • prepared' Councilwoman Swarner asked when information would be received. Charles Brown replied that the Sill is not signed bInformation.*, the Governor. Ths PERS - Retirement Section - has the a],ready calculated and indicated they can get it out quickly.t may take a month. Councilman Smalley said he cannot support this motion and would like to take a look at the analysis first. Councilman Measles said we looked.at the last one and deemed it beneficial to the City and he still does not th ink it was. VOTZI Swarner: No Measles: Yes McComsey: Yes Smalley: No Williams: No Walker, No XOTION VAZL3W O Mayor Williams stated we will look at the information at a later date to determine if it is worthwhile. B-70 Approval - PY92-93 Insurance Program. councilwoman Swarner asked, what's the total premium with each agency -Walters 6.01son, and Last -Frontier, even though the coverage is a little different? Charles Brown said it's pretty hard to do that with Workers# Comp. You're dealing with a price based on an array of losses:. If .we add up Waitdre� & Oleon�s premium, its $236,370, Y believe. And, it.ls212,89G for Last Frontier. Councilwoman Swarner asked about Lloyds not being admitted in Alaska. Mr. Brown replied that there is a group of companies' that are..'in the Alaska Guaranty Association and. they pay art of the premium as an 'ass*ssment into a p those: companies fails and Boa» # t guarantee fund. If one of tom pay the claims, then the other panies-have pledged to�chip-in. So, you have a lot more admitted claims being covered. Whereas,. if you have a non- admitted company that is not in the guaranteed fu .� have that extra assur ance,'' nd, you doBlt KENAI CI Ty COUNCIL MEETING 14INUTSO DUNE 2, 1992 PAGE 16 (Lloyds) have a business Councilwoman Swarner asked in Al sk � ? Mr. Brown replisdthey can license to sell policies onsibility to make sure through brokers, itto their resp i ies is C� purchase pol c do some of Williamsstated both companies and we neicate ed to have a Mayor Lloyds of London their business throughfar reaching the business of Lloyds little clarification o are allowed, since it is not admitted, whatever that means, in of London is in Alaska and whether they admitted stated here that they are ust because they are not Alaska. Mr• Brown saidt hat that they can't do business here* is not necessarily a s just said. I don't know anymore than what I uld have a clarification of that Mayor Williams hainsurancepeople? e from One of te h broker using Lloyds is licensedd►_ Mr. Olson said as long as t e policy we used of Lloy they can transact business. Theonethe State of Alaska sAirportecurity or the excess airport - is tied up airport Th operated roved by a Program for all that particular olicy has been apP underwriter on tha itchcock who is risk manager for State of gentleman ThateisAthe only Lloyds policy we quoted. Alaska. Mayor Willuhaerst ndingasked . that your Gregor of Last Frontier Ir►anaurwculd the commentY too, would that be make? any we're using Mr. Gregor said thDivision Lloyds Comproves to at basically any tom antes i business in Alaskan. is called the white list that half Oftha app on what Lloyds reinsures aren't admitted, which means the Guaranty the world, so, o out of business, but isn't going to back them if they g o out of business. Fund think we ll all g they go out of business, I is do if Williams said, that is an interesting statement. There Mayor titles and rumors to the effect hat havexas have been some news articles been having some difficulties hergdlogflenough that 'their has b or have they lay significant meaning, companies, it wouldn't probably haVe muthe ch insurance on the othersaid Lloyds has been reorganizing but of an effect. Mr. Gregor have h , couple of years due to some dtfthe lareBwteaker or anything last p I don't know if it can be said tha like that. Mayor Williams asked is the policy due date July i? . KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 17 Councilwoman Swarner asked Charles Brown - your memo said you make no specific recommendation. Have you changed that? Mr. Brown said no, I haven't changed my mind about anything that we've said here. Mayor Williams stated that since this is a very major decision.. involving a full mill of property tax to the city, and involving the health and future of the city. Should we have a catastrophic failure in any one area requiring adequate insurance and perhaps not having adequate insurance to cover it, it's probably the most important decision for the future of the city that we make. If there's no catastrophe, we win. If we make the wrong decision, and there is a catastrophe and we lose, we're in real trouble. With that in mind, I would like to hear from both companies this evening, and I think counsel would benefit from the edification by both, too. So, I will ask them to come forward. STEVE GREGOR of LAST FRONTIER INSURANCE addressed the council. He thanked the City of Kenai for the opportunity to bid on their insurance, and secondly, thanks to Charlie Brown and Cary Graves for conducting a fair and enjoyable bidding process. This is the first time Last Frontier has had a chance to bid on the city's insurance. We were asked to equal or better the current coverages in place. We raised the public officials liability limit from $500,000 to $4 million dollars, matched the other limits, and cut last year's premiums by $66,000. Three years ago I told the council that I thought they were paying up to $500,000 too much for their insurance. And, I think I'm here tonight to say that I proved it. Charlie and Cary both recommended that Walters & Olson be the brokers on the airport liability and the Workers' Compensation, and I have to disagree. First of all, on the airport liability, I wasn't quoting the $50 million, I was .___ quoting $25 million which is already in place. And, when I asked our underwriter what he would charge for the extra $50 million, he basically said the same as $25 million, because there wasn't anymore exposure. On the Workers' Compensation quote, Last Frontier's proposal is better for lower claims from the City and even if the claims went over $70,000 in a year, the maximum price difference is still only $2400000, which is the difference in our.. package quotes. Also, the more premium I can put with Alaska National for the City, the better of it is for future negotiations with them. My final point is that Last Frontier has proved that it can handle the City's insurance and a recommendation from Walters & Olson is a recommendation to spend $24,000 more than it has to. I would also ask that Last Frontier be appointed the City's broker for the next three years, just like Walters & Olson has had for the last six years. That's all I have. RENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 18 KURT OLSON of WALTERS & OLSON INSURANCE addressed the council. He stated: Our firm has had the insurance on the City of Kenai for 10 years now. I would like to thank them for the past business and the opportunity to bid on it again for the next, three years. I'd like to clarify a few things. Starting with.. the airport - we quoted limits of $25 and $50 million. I believe the insurance committee only used $50 million because it was lower than $25 million from Last Frontier. But, there is a $25 million quote that is about $4,000 lower than the $2,500. On Workers' Comp - we presented five different plans, all of which I think exceeded Alaska National. One guaranteed cost, two retros and two dividend plans. The City has averaged $25,000 to $50,004 the last two years and if you run those two numbers by the losses on the back page, you'll see where we lined up on two of the quotes. The main difference between ours and Last Frontier's is that we have no penalty if you start having major losses. On one of their's you can pay $155,000 and another $175,000, as opposed to $128,000 maximum on the highest of ours. On the question of security - we have always used the same one that the City of Kenai has used in the past, which was A-10 or better. This year the City dropped it to best rating of A. We kept ours at A-10 or better. All of our companies are at least A-11 and when rated by Best. We've got an A -plus rating on all of our companies except the airport excess. I think that's considerably higher, than our competition. In ten years we've had no serious problems - no insolvencies. When we picked up the coverage ten years ago, you had two companies at that time that were insolvent. We take our job seriously on that - company qualifications. On the 1952 RFP you asked for three things. Coverage, Forms and Admitted Companies. We've given you all three. We've gotten into some gray areas on inverse condemnation, discrimination - hiring and firing. All toll, I think you've had close to $800,00o in activity in inverse condemnations. On public officials - maybe $200,000. I guess the only other point I would really like to make at this point in time is that numbers can be manipulated. If you add up all of our coverages; use $25 million for the airport; use our best Workers' Comp plan - the two quotes are a. couple thousand dollars apart. You have a lot of coverage under what we're presenting. Late this afternoon, we checked with the Division of Insurance on the status of all the companies we used in this, to be sure there weren't any changes. At that time, we checked on our brokers and Steve's brokers. We found that the broker on two of the companies they are proposing are not licensed in Alaska and as such won't be able to supply the coverage. I'm open for questions. Questions followed regarding the differences in quotes. It was estimated that Walters & Olson's quote is approx. $20,000 higher than Last Frontiers. Mr. Brown was asked if there would be problem in working with two brokers. Mr. Brown indicated not if • El • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 19 the core coverage - the package and the umbrella stay with one, and then the Airport, and Workers' Comp - those three units are kept separate. MOTION= Councilman Measles ISOvBD that the package and umbrella policies be given to Last Frontier; Contractors Equipment, Airport and Workmans' Comp to Walters & Olson. Councilman McComsey 6ECOXDBD. DISCUSSION: Councilman Measles asked Mr. Brown if he saw any problems with that split. Mr. Brown replied, no. Mr. Measles asked do we need to make a decision on which Workmans' Comp Package to take. Mr. Brown said you can leave that up to us - we've done that on our own in the past. I would prefer that a set number of years not be included. We aren't necessarily looking for a three year deal. I'd like to see what the prices are on renewal. Let's give the option to renew, but I'm not convinced that we should necessarily say three years until I get a chance to see what renewal prices are. City Manager Brighton asked Mr. Brown - will their prices change if the whole package is not accepted? Mr. Brown said that it was bid with the understanding that we can pick and choose. You may want to direct that question to the brokers - if they'll honor these prices split up in this fashion - I think they will. Mayor Williams asked the brokers - will there be a difference -in the quoted prices if the package is split as discussed? Mr. Olson stated: The City's RFP requested identification on each of the responses on the policies if they would stand alone. The three you mentioned would stand alone. The one of ours that would not was one where we had one package price for five lines. But, I may have been unclear on something else and that's on the fact that two of the quotes will probably be withdrawn in the next few days. Two of the Lloyds policies are through a broker that cannot transact business... Mayor: Does this effect both companies? Mr. Olson: Not ours. Mr. Gregor stated: I discussed this with Charlie. if we went With Lloyds, it would be denied if we went through anybody, so anybody that I got a quote from Lloyds would be unacceptable. We're just knit -picking here. KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 20 e two estions. On the Contractors Equipment, we have a lowwerer pram I ium and a lower deductible - I don't see why that wouldn't be given to our agency. The estion is - as it is split out here, would it Mayor: . � effect any of your quoted numbers? e or: That package number would remain the d probablyin giveMr. Gr g Policy would p Y fact being that the 8ut$1no,000 it would be t e same. you more clout- Mayor. • Do You have any comment with regard to Mr. Olson's comments regarding PENCO? Mr. Gregor: The broker on this - your policy is not PENCO, it's Sullivan and Associates. Mayor: is that correct Mr. Brown - have you studied it? Mr. Brown: No, I haven't - not that angle oft- insurance uote, Steve listed Lloyd through P�sOeasily putds ithe Lloyds. PENCO is like _ company. He could have just I felt if he was quoting a middle broker in this transaction.of the through anybody. He met the qualification bid out otice Lloyds to throw of Intent to Quote and I wasn't snt Lloyds is the company. because he was another intermediary. I don't have a problem Lloyds was the one listed as the quote - with that. Councilman Smalley asked: With the Contractors Equipment coverage any comments from you? Mr. Brown it's rarely ed that Contractors Equipment is an ixp9tufge Policy- my choice - and used. It covers heavy equipment I'm not going to make a big deal of it - it would make some sense to have your Contractors Equipment with the e.same as the auto break policy; and the auto is par rcontract t of the equipment with the auto it nice and clean, I d p And, frankly, his was a because they are similar coverage. It's hardly ever little cheaper and hada lower about big heavyiequipment... ble used - you're talking Co uncilwoman Swarner asked Mr. Brown: Can I assume thatt they check out the compaou nies that are listed to make No, I do not can sell insurance in Alaska? is aBhi hlyown eregulated industry do that. The insurance business g in Alaska and everywhere else. I'm not competent to regulate the brokers. They should be professionals, following ®nt. re lations, and I'm not really competent to make that judgX d d check to see if they're rated by Best like they say they are. I made some • I preliminary checks of the comps r • KENAI CITY 92 COUNCIL JUNE 2• pAGE 21 MEETING MINUTES nothing to verify if the brokers environment that they should be. Are they current in their check. Brown replied: Ii are operating in the regulatory Councilwoman Swarner asked' tax and property tax? Xro VOTS= Yes Measles: Yes McComsey: Swarner: Yes Walker: Yes Smalley: Yes Williams: Yes MOTION pABBED• - Consent to Assignment of Lease mas H.for c&rity 8-e. Approval Block 1, Gusty Subd./Tho Purposes Lot ner. Dorothy C. Wago MOTION: se MOVED for the consent of assignment f f Lease Councilman McCom y Gusty SubdivisionCouncilman for Security Purposes - Lot 2, Block 1, DorothyWagoner and asked for unanimoouussER$p�ent' and leySZONDED. No objections. 80 Smalley Change Order NO. 7, Kenai Congregate M-9. Approval & Associates, Inc. $2p522•00. Housing - Gaston explaining the need for A discussion was held with Mr- KarraBdBtha it should be Put it the requested changes. It g to pay and put up on the board to Bee ho beforeng It was asked through later, just like the others that have stem. Mr. Korn said if Arc Electric designed this alarm a the contractore if just the sprinkler system was designed will have to pay for it. ivingston sloan is the designer, they it wasn't elis said we should get an explanation of why 14r. Korn in the original drawings* MOTIONS ales MOVED for approval of Change ordcer iNo * 7 # Councilman Mea _ Gaston & Associates, Kenai Congregate Housing BECONDSD. amount of $2,522.00. Councilman Smalley VOTSI swarner: Yes Smalley: Yes 0 MOTION DABBED. Measles: Yes Williams: Yes McComsey: Yes Walker: Yes • • KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 22 K-10. approval - Change order No. 8, Kenai congregate, Housing - Gaston & Associates, Ina. for $6,552.004 NOTIONS Councilwoman Swarner KovED for approval of Change Order Ito s. regarding carpeting in the amount of $6,552.000 Councilman McComsey SECONDED. DISCUSSION: Councilwoman Swarner stated this item was asked for by the Congregate Housing Committee. Pat Porter said this was part of the new color selections approved by council. VOTR: Swarner: Smalley: Yes Yes Measles: Yes Williams: McComsey: Yes Yes Walker: No M0TION PASSED. M'3i• Approval - Change Directives Housing. - Kenai Congregate a. No. b. 19 - Fire Detection - $10033.72. No. 20 - security Hardware - $2,921.00 MOTION s Councilman Smalley MOVED for approval of Change Directives No. 19 and No. 20. Councilwoman Swarner SECOMED, DISCUSSION: Mr. Kornelis explained it was -the Cit s-re these change directives and stated that Howard (city building eSt for inspector) checked the Uniform -Building Code on the fire detection requirements. Kornelis also explained that when the automatic front doors wee requested, we (City) deleted the securityhardwa r outside door and did not add it to the inside doors,r We were given credit for the deletion. This amount is the difference on' the change.. The security doors are set up so that tenants may view visitors on their television monitors and.then electronically admit them from their rooms. VOTE: Swarner: Smalley: M0TX0N PASSED. Yes Measles: Yes Yes. Williams: Yes McComsey: Walker: Yes Yes KENAI CITY COUNCIL MEETING MINUTES JUNE 2, 1992 PAGE 23 Discussion - Boat Launch Fees. It was decided to pursue this matter next year. B-13 . Betting Hearing of Board o!'adjustment - appeal of Bob E. Wortbam, on the Conditional Use permit to Leila R. Davidson. It was noted that the appeal is on a conditional use permit for development of cabin rentals and fox a Bad an Hreakfa t. A Bed and Breakfast was requested and allowed by.P&Z. But the appeal is only on the cabin rentals. The hearing is set for 7:00 p.m. on June 17, 1992 immediately prior to the Council Meeting, Information Item 0, Memorandum from Keith Rorngis regarding 1992-93 street budget/dust control. Regarding an addition of $15,000 to R&M Supplies. Councilwoman Monfor had requested this information. NOTIONS Councilman MCComsey MOVED to add.$15,000 to the Street'R&M Supplies so that we can do one dust control next year. Councilman Smalley BECONDED, DISCUSSION: It would be better to wait until next fiscal year and transfer funds. Councilman Smalley WITHDREW THE BECOND-TO TRB MOTION. RECESS: BACK TO ORDER: approx. 9:55 p.m. t-1. Mayor A. Russian Visitors. The cost to the City is a budget of about $8,000 and fortunately it wag necessary to take very little money from the budget, but so far wehaven't spent more than $200-300 out of city money. Thee luncsheon at the Senior Centex will be about 25 people at around $125. Thanks to those who volunteered to house and interpret, and especially thanks to Marathon oil for all they have contributed. Please come.to the Bicentennial Building for the 10:00 a.m. - June eth Reception.. r • KLNAI CITY COUNCIL MEETING MINUTES JUNE 21 1992 PAGE 24 Also, the barbecue at Mayor Gilman's house on Saturday, June 13. They will be singing at the Miss Alaska Contest on Saturday evening. B. The Hockey Committee is meeting this evening and it looks like they are going to put together a building that will come in under $i million. 1501x2501 in size. it will be a weather -type rink - no refrigeration. Regarding the land next door to the high school - it still is under ownership of the State Dept. of Natural Resources and not in the Mental Health Lands. There is a new opening for Borough selection of lands and a fast track change of ownership is possible if it non-profit or public use. I will be bringing to counciloas into resolution requesting that the Borough apply for transfer of that land into their ownership. Assemblywoman Glick will then offer a Resolution to have the Borough do that. We could have ownership in the Boroughs hands within a year. Mayor Gilman indicated he will support the issue and allow the use for a hockey rink. And the only question will be financing of the hockey rink. I suggested they go for lobbying efforts to raise as much monies as possible. A building of that size can be of great benefit in the summer months as well. r-2. I-3. A. Superior August. City Manager - No report. City Attorney We had oral argument on the HEA Remand Appeal in Court last week. Judge Link will probably rule in B. There is a Memorandum from Carol Freas regarding sales tax and taxi companies. There will be a meeting on June 18th - With the taxi companies, the Mayor and attorney to straighten.out the problem on sales tax and taxi companies to see if we can come up with a solution. 1-4, City Clerk - No report. =-g• FinAnoe Director - No report. Councilwoman Swarner questioned Mr. Brown about the Inlet Woods case. He advised the court has set a date for December 28, 1992 and there will be depositions in July. I -Go Public V0rk8 Director A. Bicentennial Visitor Center-.. Final Inspection was June 1st and some minor items on the punch list will be handled as warranty items. The flowers are being finished. • KENAI CITY COUNCIL MEETING MINUTES JUNE 21 1992 PAGE 2 S B. New Courthouse M- Plan Availability is June loth. .Sid Opening is July loth and will go to council for approval on July 15th. We will not need .a special meeting. C. Sewer Treatment Plant - The contractor is finishing up the punch list items for the final. D. Alaska Road Builders are back working on Trading Bay.and it is close to completion. E. set Net Court - there's an addendum out on that. F. On Thursday we're having the Airport Reconstruction conference with Zubeck. He'll be starting on the Sth. G. Fire Bay Addition - We had the pre -construction conference on June lot. They started right away and they're working. It is a 100 day project - they should beat that date. H. Congregate Housing - is going along very well as far as the actual construction portion of it. They will be paving shortly - they're working on a parking lot. And the conduit for the phone is coming in. They are still planning on beating the schedule of August 26th. t-7. Airport Manager A. Drainage safety Zone Project - cost overrun will be taken from the second AIP project that we had, so we'll be cutting that project back somewhat to accommodate the overage on the drainage program. B. The Fire Chief and Airport Manager did the inspection.of the new Fire Truck. We went through 32 pages of specs item by item and they're doing the final punch list now. We should take delivery by the end of the month. is J-1 J-1. citiaons - None council oung.Uman_ Walker: - None • �! = i7 T-71 A. RPM's collection of stuff behind the building - has it been addressed? • CAI CITY COUNCIL MEETING MINVTSS. jjM 2, 1992 pacE 26 Isnof been addressed Since tehewith Iwtanag asked where er Brighton saCounc man it ha. Smalley SWarner asked was orie City ail westing• Councilwoman last coup 30 day notiG®• Brighton saidhwhat regard to the t erect a barrier around t the letter we saw old d Ago it tomorrow• He's son thing he said he w every stored* I can pay him season. v s he's got ,.,g to cooperate within r been willing there. Lot .. There are vane setting a. Louie'e parking don't at situation and I id he has not addressed stated, = don't think . Brighton said Counciloman know if Howard has. - u needs to be addressed• will that is in the cod Pruitt - DeputY CominiBsioner of Corrections C. Frank on June 3.7th• A be speaking at Chamber of Commerce p, Will miss the July 15th council meeting* Co • for congregate Housing? Asked how many are signed up around 20• Charlie Brown said we haven't Kim Howard answereds • received any or wee�s ���� � mao�� c SY a�a�Y h 16 and will miss the July 15th Will be out-of-town July 2 throng council meeting so The meeting was adjourned at 10:22 p•m• TghNSCRIBED AND SUBMITTED BY: D ane E. Cra g► Deput C ty Clerk o,o sr cam oA"