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HomeMy WebLinkAbout1992-12-16 Council Minutes• AGENDA RENAL CITY COUNCIL - REGULAR K831TINO DECE49ER 16, 1992 7l00 P.M.. KENAI CITY COUNCIL CKAMBERs A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed Vith 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. sCEBDULED PUBLIC COMME (10 Minutes) i. Seth Yerrington, Architect - Personnel Practices - Hiring of Building Inspector. C. PUBLIC HEARINGS 1. Ordinance No. 1323-92 - Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund for Attorney Fees Related to the Inlet'Woods Litigation. 2. Resolution No. 92-79 - Transferring $7,:.500 in the General Fund for Legislative Expenses. 3. Resolution No. 92-90 - Honoring.City Manager WA, J. Brighton. 4. Resolution No. 92-91 - supporting Proposed Rule Part VIIZ, EPA 40 CFR, Part 230, "Exception., From Wetlands Mitigation sequence for Alaska," Commonly Called the "1l; Alaska Rule." 5. Bennett Abatement - Lot is, Block i4, Atiildttoa .. subdivision - Confirmation or Rejectionof Abatement Charges as Being Necessary and Proper. 6. *1993 Liquor License Renewal —Peninsula Moose Lodge #1942 - Club. -1- 4 Do SMI88XONiSMITTAX-21129M I. Council on Aging .2. Airport Commission 3.1 Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and tommitte as *Regular Meeting of December.2,1092, 1. Bills to be Paid, Bills to be Ratified, 2. Purchase Orders Exceeding $1,000 3. *Ordinance No. 1524-92 f" Increasing Estimated Revenues and Appropriations by $421 in the Senior Citizens - Borough Special Revenue Fund.' 4. *Ordinance No, 1525-92 - I I noreasing .1 ..Estimated'Revenues and Appropriations by $447#150.in Two'New Capital, Project Funds for Airport Equipment, 5. Assignments - Councilmembers as commission Representatives. 6. Approval - Assignment of Lease/Lot 3,p -Block 4, Generia-1 Aviation Apron - Erik Barnes d/b/a Barnes -Enterprises to James F. Adolf. 7. Bet Public Rearing - Final Ass'essment'Roll/Set Net Drive and Set Not Court. 8. Discussion Reduction in Rent Requests as Orc& Gifts - Airport Terminal b. Louiels and Terriols, . Ines airport Lounge 9. DiUGUBSiOlk Landscape Review Board Ordinance, 10. Discussion Bed Tax Task Force Recommendations.. 11. Discussion Court Facility Project, ­2- IMMI CITY COUNCIL Rum".x$x'1'IxO DSOMBIIt AGO, 2.992 7800 P•M., ; . 1C�NAh ..CITY COtT�T4�L CS�RB MAYOR JOHN.. J. W116L Mayor VMlliams called the meeting to order, at approxintateiy 7:03 p.m. in the Council Chambers,in the Kenai City1a11 building. �►-�. �o� A�LEarANi�� Mayor Williams led those assembled in the Pledge, of Allegiance. A-2. R.y Roll was taken by the City Clerk. Present were: Bookey, Swarner, Monfor, Measles, Smalley and Williams. Absent was McComsey. A -So Mayor Williams requested the following changes to the agenda: ADDS C-4, Additional Ynfora►ation -- 12/15/92 AnchaaragrQ Ds3iy News article entitled, Wetlands Plan Hung Out, .to Dz7, . , a (b) - 12/15/92 K. Howard memorandum and draft amendments to terminal leases of Orca Gifts and.Louies and Terries, Inc. I-1, R.Ernst memorandum regarding Proposed Aircraft Rescue and Firefighting Training Facility, I-1, 12/9/92 B. Kluge letter regarding PTI Communications/Peninsula District Facilities, Information Item No. 10 - Notice.of Public Meetings regarding Final Reapportionment Flan. ''Information =ten No. yl-.12/15/92 AML memorandum regarding Governor Rickel'a proposed FY94 budget. MOVS8 Information Item 6 to .e-2 vince- , o f Reilly . to weak s regarding the Governor'Economic Summit MOTtON=. KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 2. ►-a �Qmw = Mayor Williams requested the following. change to 'the' Consent Agendas ADDS 0-70, 2993 Liquor License, Romov4j,-' -- One atop -Package Store. NOTION$ Councilman Measles KOVNO for approval of the Consent Agenda as amended and Councilwoman Monfor BSCONDED the motion. There were no objections. 80 ORDERED. 12= B a BCHBDZILZD YMIC _g= 2-10 Beth Yerrington, Architect - Personnel Practices - Hiring of Building Inspector, Yerrington stated his address to be 40855 Seaview Avenue, Romer, Alaska.. Yerrington stated that he is former citizen of Kenai. Yerrington referred to his letter which,was included.in the packet., Yerrington stated he - is concerned that the City's advertisement requesting applications for the position of Building Inspector eliminates architect.and engineers from applying for the position. Yerrington stated the elimination would be from the required ICBO certification. Yerrington stated that architects and,engineersss may not have the certification, but - have been tested for their knowledge.on a larger scale through their. professional certification tents. Yssrringtoxs. stated he was concerned that the advertisement did not require knowledge of laws regarding handicap access, etc. Williams stated that the Council does not involve it elf with personnel matters. Also, the policy of the.city -is.to use J'ob Service to receive the applications. and., screen' them. as well. Council doe' not want to change the procedure. Williams added that the job requirements in' knowledge of ADA regulations. End of discussion. • • • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 3 B-w2 . Information Item 6 to B-S - Vince O'Reilly to speak regarding the Governor's Economic Summit, Vince O'Reilly reported on the Governor's Economic Summit and referred to information placed in the packet at Information item No. 6. O'Reilly thanked the Council for sending him. The conference was very intense and enlightening. O'Reilly stated there was no pre -determined result. There were 120 attendees. O'Reilly suggested that the City Council have available a plan of action and answers for State proposed remedies as they are presented. Also, the City should be cooperative with the State, but to not compromise. And, very importantly, keep a close eye., on Juneau this year through lobbyists, council lobbying, administration lobbying, etc. Monfor agreed and suggested that the citizens of Kenai need to be educated of what will be coming up in regard to the filtering down of responsibilities of the cities to generate funding. Williams suggested a four -tier situation: (1) meet with O'Reilly again regarding setting up a small information summit to educate the population; (2) have the economic summit; (3) Williams send letters to the legislators regarding the AML memorandum discussing the Governor's Capital Budget, Municipal Assistance, and Revenue Sharing; and, (4) direct Administration to prepare.an ordinance for possible introduction and passage to automatically trigger a mill rate increase to cover any loss of funds from Municipal Assistance and Revenue Sharing. Williams requested Council to direct Administration to do the ordinance. MOTIONS Councilman Smalley MOVED for Administration to prepare an ordinance as stated by Mayor Williams. Brown stated that the ordinance would have to be advisory in nature because the Code states that the mill rate is set each year by Council. Williams stated that he wants it in place.so that when Council raises the mill rate, the citizens will know it is because of loss of revenue sources. Monfor stated that more than that should be done. Monfor stated the City needs to be pro -active. If the voice of the public is heard, maybe the legislators will listen. Monfor suggested a plan of attack be set by Council.. The citizens need to be involved. Specific information of how the citizens of the city will be affected needs to be prepared and.disstributed. Smalley agreed and stated that the resolution would be one of many steps. Smalley added that the economic summit is a good idea as well. Ordinance po. 1323-92 - Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund for Attorney Fees Related to the Inlet Woods Litigation. Prior to introduction, Attorney Graves reported to Council that shortly before closing today, a FAX was received from Attorney Maggert regrarding the Inlet Woods litigation. Graves stated that the judged ruled in favor of the City at summary judgment, i.e., the City won.. Graves and Brown have estimated damages to the. City to be approximately $1.3 million, including interest and attorney fees. Graves stated that it is expected that McLane'ss .will appeal. MOTION: Councilman McComsey MOVED for adoption of ordinance No. 1523-•92 and Councilman Smalley SECONDED the motion. There were no Council or public comments. VOTat Bookey: Yes Swarner: Yes Monfort Yes Measles: Yes McComsey: Absent Smalley: Yes Williams: Yes NOTION NABBED =MIMOUBLY. C-2. Resolution No. 92-70 - Transferring $7,500 in the General Fund for Legislative Expenses. MOTIONS • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 5 Williams stated that the Council had not budgeted for expenses to be incurred for winning the All -America City award. VOTE: There were no objections. SO ORDERED. C-3. Resolution No. 92-80 - Honoring City Manager Wm. J. Brighton. Mayor Williams read the resolution into the record. MOTION: Councilman Measles MOVED for adoption of Resolution No. 92-80 and requested UNANIMOUS CONSENT. Councilwoman Monfor SECONDED the motion. There were no objections. 8o ORDERED. C-4. Resolution No. 92-81 - Supporting Proposed Rule Part VIII, EPA 40 CPR, Part 230, "Exception From Wetlands Mitigation Sequence for Alaska," Commonly Called the 011% Alaska Rule." MOTION: Councilman Smalley MOVED for approval of Resolution No. 92-81 and Councilman Measles SECONDED the motion. There were no objections. 80 ORDERED, C-5, Sennett Abatement - Lot IS# Slook 14, Ahletrom Subdivision - Confirmation or Rejection of Abatement Charges as Being Necessary and Proper. MOTION: Councilwoman Swarner MOVED for approval to confirm the charges as being necessary and proper for the abatement of the building, at Lot 181 Block 14, Ahlstrom Subdivision. Councilman Smalley SECONDED the motion. Councilman Bookey stated he would abstain.. from voting due to a conflict of interest. KENAI CITY COUNCIL MEETING -MINUTES DECEMBER 16, 199,a. PAGE � 6 VOTES Bookey Abstain Switroors Yes. Monfor: Yes Measles:., Yes'' Mccomsey: Absent Smalley:. -Yes. Williams: yes NOTION VABSED 1JURNIKOVSLY. a -G o 1993 Liquor License Renowal Peninsula Moose Lodge #1942 - Club. Approved,by Consent Agenda. j qu C7. 1993 Li or'License Renewal - One Stop -Package Store. ! Approved by Consent Agenda. 1�M D: =TIM BARQ a D-i. Council on. Aging. ,. Swarner reported the minutes of the last meeting were included in the packet. There were no questions. D-2. Airport Commission Measles reported there was no meeting. Harbor Commission Kornelis stated there was no meeting. D-e. Library Commission Monfor reported that there was a,correction to the report included.in the packet. "pro were 70$" ch4ok-►outer and renewals,. 11.081 regular check -ins, and a door count of '476 during November.. Monfor remanded everyone of : the Library Open', House . scheduled , for December 22, 1992. WaS larks 6 Re6ze4tion tommissssrioa : McGillivray . reported that a ;meeting was; held last . night, The minute: will be in the next packetw i . RENAI CITY COUNCIL MEETING MINpTEB DECBNIHSR 16, 1992 PAGE 7 D-6o planning i Saning Cohesion Smalley reported that - the agenda was included in the, .packet.. Smalley stated there were four members in attendance. They could not vote On two items. Those items have been postponed until their next meeting. Carl Glick, Vice Chair of the P&Z Commission was-present-and., as present and reported that the sign ordinance was discussed. Glick stated it. looks like action will be denial of the sign enlargement,request. D-7. Miscellaneous Commissions and Comittees All-AaOriOa City - Monfor presented the official All -America City Award to Mayor Williams. Kenai visitors & Cultural Center - Monfor reported that there ` have been 503 people through the counter in December, and 150 mail inquiries. Year to date there have been 46,684 persons,. through the counter, 4,059 mail inquiries, and.658 student visitors. Beautification Committee - Swarner stated they are.having a problem getting quorums for meetings. The Committee is working on the "Year of Beauty" theme for this summer. Townsite Historic Task Force - Smalley stated that the Task Force will not meet again until January 7, 1993. National Civic League - MOTION$ Councilwoman Monfor MOVED to pay the National -Civic League membership fee for 1903 and Councilman Smalley BECONDED the motion. There were no objections. BO ORDERSD. sister -City - Williams referred to a letter included.in the packet regarding grants .that may come available,.fobhigh,school student exchanges to Okha. Councilman.Smalley,stated he would.. pursue the issue at school. BREAKS 8:23 p.m. BACK TO ORDERS 8:36 p.m. s I r c : 1 J : _ bills to be Raid, Sills to be' Ratified . 1tOTIQN s Councilman Smalley MOVED to pay the bills and Councilman Measles BECONDOD the motion. There were no objections. So ORDERED. Rya. purchase Orders Exaseding $1#000 NOTIONS - Councilman Measles MOVED for approval .of the purchase orders exceeding $1,000,and requested WWXXOVS, CON88WT There were no objections4 80 ORDERED. . g-3. Ordinaikes No. 1524-92 -increasing Estimated Revenues and Appropriations by ,$421 in the -Senior .Citizens.. barough Special Revenue Fund. Approved bY Conse t -Agenda. 8-04*' OtAiasace No, i52s-92 - Increasing Estimated Revenges and •Appropriationis by $4.4T,154' in. Two. New Capital: Project yunds 'for Airport Equipment. Approved by Consent. Agenda. • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 9 N-S. Assignments - Councilmembers as Commission Representatives. The following Council representative assignments were made: Airport Commission - Measles Library Commission.- Monfo3r` Parks & Recreation - McComsey Planning & Zoning - Smalley Beautification - Swarner Council on Aging - swarner Townsite Historic - Bookey Bed Tax - Bookey Harbor Commission - Bookey Bicentennial Board - Monfor Williams stated he will attend the EDD and Peninsula Caucus meetings and any necessary appearances before the Kenai Peninsula Assembly. Williams requested Council to find interested citizens to be involved in commissions and committees. Contact the Clerk for applications. N-6. Approval - Assignment of Lease/Lot 3, Block 4, General Aviation Apron - Erik Barnes d/b/a Barnes Enterprises to James F. Adolf. MOTIONt Councilman Measles MOVED for approval of the Assignment of Lease, Lot 31 Block 4, General Aviation Apron from Erik Barnes, d/b/a' Barnes Enterprises to James F. Adolf. Councilwoman Swarner SECONDED the motion. Smalley asked Attorney Graves if it would be a conflict to vote - on the matter if in the past he worked for the man and received a pay check from him. Graves stated no. VOTES There were no objections to the motions. 00 ORDERED. N-7. sot ftblio Hoaring - Final Assessment Roli/Set Net Drive and Set Net Court. MOTION$ Councilman Measles MOVED to set the date for public hearing on the final assessment roll of Set Net Drive and Set Net Court for the regular Council Meeting at City Hall of January 20, 19923. Councilman Smalley SECONDED the motion. There were no objections. 60 ORDERED. • KENAI CITY COUNCIL MEETING MIIMTES DECEMBER 16, 1992 PAGE 10 x-e• Disauesioa Reduction in Rent Requests a"8(a)• Orca Gifts - Airport Terminal included fitht request by Dana Wackler, owner o f Orca beginning of hthepmeetin Also, distributed to Council Gatts was approval. 0 Lion A-- g ere copies of two options for c� cil p 1 allowed the gift shop to be closed from. January 1 through April 30, 1993 and charged a of $50.00. The rent for May 1 through December monthly lease rate remain at $500.00 per month. 31, 1993 would Option A-2 would allow the gift shop to be closed through April 30, 1993 with a monthly lease rate from January 1 month for those four months. _ to of $50.00 per lease rate from May i through December 31woigd also reduce the January 1, 1994, the lease rate would revert tc to $300.Op. month, subject to renegotiation of theparties,On $500.00 per MOTION: Councilwoman Swarner MOVED for a pprova Councilman Measles BLCONDRD the motion• of Option A-1 and Ms- Wackler was in attendance and spoke to Council. stated that she was in attendance at the Mondaywork Wackier which time the requested reduction was discussed. session at she is unaware of what will ha ed• Wackler stated that sales have diminished each next year. Wackler stated Wackler stated that she thought maybesae Qar�Been in business. would help. Wackler added that she is trying to sell of rent business and both buyers are also concerned a sell the amount. Wackler stated she has received a down the rent sale. payment on the Williams stated he has a and a food and beverage bosinag8ph Aar Problem between the gifts gift shop would be in competition withelocal nt reduction rate for the, Williams stated he will su 1 businesses. that he is aware there will betsome hardship, Williams added .: see the business operate. hip• but would like to KENAI CITY COUNCIL MEETING MINUTES DECE14BER 16, 1992. PAGE 11 VOTES Bookey: Yes Swarner: Yes Monfor: No Measles: Yes McComsey: Absent Smalley: No Williams: Yes • LOTION PASSED. N-s(b). Louis's and Torrioes, Inc. - Airport Lounge The request from Louie Schilling, lessee of the airport bar was included in the packet. In addition, a draft copy of B-1 amendment to his lease was distributed to Council at the beginning of the meeting. The amendment would reduce the lease rate for the airport lounge to $1,750, beginning January 1, 1993 and terminate upon the expiration of the lease on December 1, 1994. NOTIONS Councilman Smalley MOVED for approval of Option B-1 and Councilwoman Swarner SECONDED the motion. There was no discussion. VOTE: Bookey: Yes Swarner: Yes Monfor: Ye10 Measles: Yes McComsey: Absent Smalley: Yes Williams: Yes MOTION PASSED tMANIMOUSLY. 8-9• Discussion - Landscape Review Board ordinance Planning & Zoning Commission Vice Chair Glick stated to Council... that this discussion had come before the Commission several weeks ago. Glick reported that the general consensus of the Commission,:-, was that there is no need for a full-blown Landscape Review Board and that the duties could be forwarded to the Planning & Zoning' Commission. Also, the Planning & Zoning Commission are receptive of the responsibilities. 9 KENAI CITY COUNCIL, MEETING MINUTES DECEMBER 16, 1992 PAGE 12 NOTZONI Councilman Smalley MOVED that the Planning assume the responsibilities of the Landscape Review Commission Councilwoman Monfor SECONDED the motion. Hoard. Smalley and Williams stated their support stated that she definitely wants the previewf the motion. Monfor responsibilities to continue and recommends blacd responsibilities with the planning & Zoning ommiss the VoTB: ion. There were no objections to the motion. So O RDD Measles requested that the ordinance make it clear that the responsibilities rest with planning & Zonin Administration would clean up the wordingn Graves stated that responsibilities with Planning & Zoning. and place the. u-1o. Dieaussion - Hed Tax Task Force Recommends*,. on Council reviewed the memorandum include s. Acting City Manager/Finance Director d in the own packet from recommendations made by the Task Force and his which mment Assembl s' Ymentber Betty .Glick was in attendance and reported Task Forcees discussion. p d on the Force. Glick is also the chair Of.the Task Glick -stated the Task Force, decided that a SOW of revenue is needed and that the wan n additional that benefit from tourism to be involved and t all businesses share. pay their , fair . Glick stated they discussed an incre Percent) which would be incorporateease of sales tax (2/10 of one tax now in effect; an increase in tourism tax the (to Include R sales parks, restaurants, grocery stores (to include RV businesse® making money from the touristsshoas, eta.-*toother, now. The Task Force found that much of the earths bed texas it returning businerss�gen and they made no re ings . are from the tax. They .agree that they need epm presentation tQ repeal be included in having to pay it. a tax, but others need to Smalley asked if there was repre other tourism. entities that may come ands 8entation on the Task Force from tax. Glick answered yes, Councilman.Hooke the potential:tourism y• Glick added that 0 • C� • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 13 there was representation from hotel/motel people, restaurant and bars, guiding service, and RV parks. There was no representation from car rental agencies. Ron Rainey was the representative from the guiding services and he made the motion of prioritization. Williams stated that the biggest problem is having people -in the City administration to collect the tax. Another person would have to be hired to administer the tax. Monfor stated she really liked what Glick said about the tax needing to be equitable for all. Monfor added that this needed to be pursued. Monfor added that the bed tax is for more than funding the Cultural Center. Williams asked Council if they wanted to change the present course of action. Measles stated he personally would not want to at this time. Measles stated he agreed with Monfor that they need to continue to review the issue. The ordinance can be modified when a better solution is found. Smalley stated he agreed with most of the discussion. Smalley added that he would like to make the discussion a priority item for January. Smalley added that equity will be brought about through more discussion. Smalley stated he felt this Task Force did an outstanding job and they need to continue to work with the Council. Bookey stated that another revenue source needs to be found. Bookey added that he agrees that they need to review the issue. Bookey stated that he feels he should and anyone else involved should help to pay for the Cultural Center. Bookey stated he would like to put the bed tax at 2.5 or 3% for six months. Swarner stated that the businesses are collecting the tax from their customers. The business itself is not paying the tax. Bookey stated he agrees to a point, however it is still figured... through the business. The customer will pay only so much. Williams stated that Council will be starting to work on the budget in the near future. This can be discussed at that time.. Monfor suggested that the bed tax could be set at 3% in the winter and 5% in the summer or perhaps a flat rate. Williams reminded Council that to change the rate it will take.. two months. The ordinance that was passed becomes effective. . KBNAI CITY COONCIL MBETING MINUTES DECEMBER 16l 1992 PAGE 14 • • January 10 1993. Smalley asked if an ordinance can be fast tracked. Brown explained that an ordinance can be introduced at a regular meeting and then have a special meeting in which to. pass it. However, it still takes thirty days to become effective. Only two weeks would be saved. Smalley stated that he hopes the Council will work diligently to discuss and make changes in order that equity will be found so that everyone reaping benefits from the facility will pay for the facility. Monfor stated that the bed tax would benefit more than the Cultural Center. The City of Kenai is promoting tourism which benefits more than the Cultural Center. Monfor stated she is personally not looking at the Cultural Center to receive the funds to be reaped from the bed tax. Monfor added that they are trying to bring tourism to the community and offset costs the citizens have to pay for the services they receive. The Cultural. Center is not the reason for this tax. The Cultural Center is an offshoot from the Bicentennial celebration. Williams stated that if the Borough adds a one percent increase to sales tax, that will be above what the City might add. There were no modifications to the bed tax ordinance. Monfor asked Glick if she would be willing to continue on the Task Force. Glick stated yes, if the City would like her.to. Glick added is a great supporter of the tourism industry. 3-11. Discussion - Court Facility Project. Moved to after Administrative Reports. XT„= 1.1 ADNINISTRATIO RRPQRTB I-1. Mayor Williams reported: (a) National League of Cities Conference memorandum included in the packet. (b) Airline Firefighting school - stated Henri and he has assured Williams that he will MAPTS to find a way to finance the addition of etc. - referred to his he spoke with Jog get to work with the classrooms, 1,7 1� • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 161 1992 PAGE 15 (c) Check -writing Center - memorandum in the packet. (d) EDD - Williams will attend meetings until a new city manager is hired. (a) City Manager search - Brown distributed a memorandum which discussed costs for advertisements, a job description and. area description. Brown stated that the advertisements, running, some more than others, will cost approximately $2,500. Brown will bring firm quotes to the January 6, 1993 meeting. Brown stated that the tentative schedule discussed by Council at the 12/14/92 work session is: February 20, 1993 - work session to discuss job description, goals, direction of the City, etc. March 15, 1993 - final date to receive applications. March 16-April 9, 1993 - Council reviews all resumes, reference checks, evaluations, and selection of three to seven for interviews. April 12-30, 1993 - interview finalists. May 1, 1993 - final selection. Williams stated he spoke with Bob Rubadeau to work with the Council during the work session on February 20 for setting goals and objectives, etc. of the City. Williams added that the work session will now be held at City Hall. Lunch will be brought in. Brown stated the advertisement and descriptions were the same except he changed the salary information and the population as Council had requested. Brown stated if Council was happy with. the information as presented tonight, he will begin distribution tomorrow. MOTIONi Councilwoman Swarner MOVED to direct Administration to proceed. along the lines presented in the memorandum distributed this evening and Councilman Smalley SECONDED the motion. There were no objections. 00 ORDERED. (f) National League of Cities - Williams discussed the. parental leave program which was discussed at the conference. Williams stated he would like Council to direct Administration to do a cost analysis as it would apply to the City of Kenai. Smalley stated that this is a big step industry has been taking. Some offer child care centers at work. Smalley stated he does not have a problem in looking at the potential costs. However, KENBI CITY COUNCIL M88TING MIN[1T8B DECBMBBR 160, 1992 PAGE 16 before implementing something like thiso.smalley feels it needs to be aeriously.reviewed. Williams stated.it would be a. benefit for the employees. Measles stated he did not think it is something the City needs to .look at this time. Administration does not heed to waste tine . ox► it. There already is sick leave and vacation leave policies now in effect. MOTIONS Councilman Smalley MOVED for administration to review,and make a report to Council on the potential expenses which the City might incur. MOTION nim 80R zacz Or BECOND. (g) PTI - Williams passed the gavel to Measles. Williams discussed the 12/9/92 letter from Architect Kluge which included cost estimates and site plans regarding the proposed PTI ,facility which was distributed to Council at the beginning of the meeting. Williams first referred Council to Part III which discusses the investment of the facility by PTI. This estimated amount is $3,144,855. Williams stated this facility would include the warehouse area, office area, all of the paving, the wire yard, the heated storage area, the facility that all the material is in. On the beautification side, the perimeter has been maintained to -include trees -and things of -that -nature.- Williams stated he wanted that figure to see what kind of investment the company is going to make. Williams referred to Part I which includes the .incremental improvements to the area if the City decides to'be.involved in the development of the project. Williams stated..that the incremental improvements include road improvements for Baron Park Lane and HEA Access from Airport Way to Marathon Road. Williams .stated .if it is decided that: it. will° be beneficial to, have water and sewer along this area and . loop back.. in and. if it is installed prior to paving, the estimated cost of the water., 'loop will be $89,775, the sewer line $77,489, and the new paved.. road work on Baron Lane would be $314,6.63, Williams stated that the City may decide..that water and sewer will not be put along that area, and only pave lt. Access, will. still be available to all the Iproperty with, existing water and, sewer. Williams added that this would not be a bad idea if the I r� • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 17 property is subdivided. The only reason to have water and sewer, along Baron Park Lane would be if the properties there would be.,-:,.. subdivided in order to allow access in that area. Williams stated that if the water and sewer portion of the project is not done, then the paving of the road is only $314,663, plus $18,900 for the paving of the HEA Access Road, which accesses more than the HEA property. Williams stated that the total estimated construction costs for the City would be $640,900, less whatever the costs are associated with the water and sewer lines, if they are not built. Williams.referred to the Part II section. Williams stated that an appraisal was received for the proposed PTI property which set the value at $120,000. The site preparation for that property is $274,700. Williams stated that is why, when he spoke to Council previously about this proposed property, he was looking for an inducement to PTI to do this project. Williams stated that it. will cost more than twice the value of the property to prepare it for construction. Williams stated he needed Council direction as to what inducement the City should offer PTI. Williams added that PTI has a copy of Kluge's letter and plans with the estimated costs. Williams stated he has spoke with PTI and they are all trying to come to some conclusion of how this project can be successfully completed. Williams asked what the Council would like to do with Part I and Part II. In referring to Part II, Williams asked if Council wants to tell PTI that the whole cost of $274,000 is theirs, the City is willing to buy the property for them, or does he have that much latitude. Monfor stated that they have heard this information from Williams, but have not heard anything from PTI and what they are willing to do. Williams stated that PTI is willing to bring A,! facility into the City worth $3,144,000. Monfor asked how much. is PTI spending and will they build the facility. Williams answered the facility would be built by a local contractor and that PTI will finance the building of the facility on their own, either through their own corporate monies or borrowed monies. The estimated cost is $3,144,855 and has nothing to do with the finances of the City of Kenai. Monfor suggested that PTI come to the Council and state that they are really interested. Monfor added that it be someone other • E C� KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE.18 than Williams. Monfor added that PTI put their mouth where the City's money might be. Williams stated that he wants to go. to. PTI's corporate headquarters and wants to be able to state the Council is interested in helping in some manner. Williams.added that he would like PTI and he to be able to put together a package to bring back to the council. Monfor asked if this. information has been presented to their Board of Directors. Williams stated he did not know. Williams stated he is aware that it is before their Facilities Manager in Anchorage and also that the local director is aware of the estimated costs. Williams, the local director, and Kluge met to put together the costs. Williams stated that is why he is trying to move to the next step. Williams added that all along he has been moving this project a step at a time. Williams suggested as a "for instance," if everything works out, is the Council willing to develop the roadway system (Baron Park Lane), with or without sewer. Williams stated he believes the City can use airport monies for that portion of the project. Williams asked Brown if that was correct. Brown stated he was not sure that will be possible. Brown stated that the policy has been that airport monies have to be used for the benefit of the airport maintenance and operation. Brown. stated that the City has stretched that to say that if water, sewer and roads are run into the airport properties and it.opens._.. up new land available for lease or sale, that those lands when they are leased or sold, will generate revenue and the airport.: - would get its money back. In effect, it is airport use. Brown continued that one would always have to ask the question,,.;.. "is the expenditure going to benefit the airport?" Browri.stated that it is possible that a person could argue that spending $640,000, and then if all the land Williams is talking about is sold, the estimated value of the land would then be approximately,. $258,000. Brown added that it is hard for him to see how`, spending $640,000 of airport money and at a maximum return of $258,000 benefits the airport. Especially, when the City just. spent $758,000 using the same arguments to pave Marathon Road,.. which has also opened up the very same lots. In other words'.,. the .. same argument is being used to lay roads on both sides of the lot. Brown stated he is not convinced. Williams stated that it depends on how the property is subdivided. Williams added that once again, when monies of this...., 1� KENAI CITY COUNCIL MEETING MINUTES DECEMBER 161 1992 PAGE 19 magnitude are invested (for water, sewer, and paving), comparing it in value'to lands. that can be received, the property has beeRn appraised at. value of.$120,000. .Williams stated the City would never get its money. Williams added that it will cost $275,.000 to get.a..$120,000 piece of land ready for construction. Williams added that the City spent $800,..000 in that area and gave the land. away`(HEA building), because the City was looking at a.$3 to $8' million..longterm development. Williams stated that he is looking for long-term development. By bringing in PTI, there will be a concentration of PTI, HEAP Carr's, etc. People will come to Kenai to pay their bills, access: the airport, etc. Williams suggested the gas company be encouraged to move into the city after PTI development has been completed. Williams stated that the price would come down if water and sewer was not: placed. Williams added that after speaking with Brown this afternoon, he in not convinced that water and sewer is necessary there. Williams added that paving the road for access would be plenty. Williams again stated that he will be going to PTI's corporate. office and will be asking them to put their thoughts in writing and needs direction from Council as to what the City is willing to do.and then ask PTI what they are willing to do. Measles suggested for this discussion or for Williams' next discussion with-PTI, either at their- corporate office or wherever., that the Council is willing to consider, (extra emphasis) fronting the cost for the road improvements, water: and sewer, if necessary, and that the City would lease them (PTI) the land at the standard city lease rate for 50 or 99 years (however long they watt it) ..The site preparation and building.is PTV s cost. Measles added that this.is an initial offer and that i,f -, they do not. like it, :they can counter offer. . Measles stated. that is as far as he wants to go at this time.: Measles stated'.again that the Council is willing to considor (extra emphasis) this offer, not that it is.a done deal. Smalley added that the Council would like to see some written commitment from PTI as to their intentions. This will help clarify the . City l s commitment. • 0 • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 20 I-2 . No report. City Manager 1-3. Attorney a. Open Meetings lot - Graves reported that there was a lot of interest in filing amicus briefs regarding the Fairbanks Open Meetings litigation. The supreme Court has appointed Kenai and the AML.to represent all the municipalities. The brief is due December 24, 1992. b. SEA regulations - Graves referred to the November 11, 1992 letter from HEA General Manager regarding proposed changes, to their Rules and Regulations. one change will allow for municipality reimbursement of costs involved in relocating HEA facilities from municipal rights -of -way. Another change will mandate municipalities to pay HEA for any disturbances of HEA's facilities by a third party acting with permission of the municipality. Graves has met with the City of Soldotna and the Borough Attorney. They agree this change is outrageous. Graves requested permission from Council to intervene and oppose these changes. The Borough Attorney has requested to intervene and oppose as well. The City of Soldotna will not intervene, but will enter a strong opposition. Graves stated that he understands HEA wants to modify the changes, but Graves still wants to oppose. Graves added that comments need to be made by December 22, 1992. Council stated their agreement and stated their permission. City Clerk a. Christmas Party - Freas reminded Council of the Employee Christmas party on Saturday, December 19, 19921 beginning at 7:00 p.m. b. Vessel Tax - Freas referred to Information No. 3, the. letter Council requested to be written to the Borough Assembly requesting that action on their Ordinance No. 92-56 be postponed. until the Tax Task Force appointed by Borough Assembly President has time to review the item and discuss it. Freas stated she spoke with the Borough Clerk's office and was told that action had been postponed. Freas stated that the Tax Task Force will meet on January 12, 1993 at which time they will review the ordinance. Assembly • KENAI CITY COUNCIL MEETING MINUTES DECENIBER 161 1992 PAGE 21 President Glick, present in the audience, stated that they, will review the ordinance as to how it. will specifically apply to cities. Measles requested a copy of the ordinance and the letter of objection.sent last year to the Borough regarding a similar ordinance, be included in the next packet as a discussion item (the January 6, 1993 meeting). I-s. Finance Director No report. I-6, Public Works Director a. Congregate Rousing Project - Kornelis stated he is holding the final pay estimate for the project until the punch list work is completed. b. Information No, 7 - Kornelis referred to information he received while attending the Natural Gas Vehicle Conference. c. Bower Treatment Plant - Kornelis reported that the engineer says the plant is state-of-the-art. The STP has'the only scrubber in Alaska. The engineer is designing the same .sort of facility for Unalaska. The DEC.final approval will take place next week. Williams. stated that while attending the National League of,'- . . Cities, he found that the City may have put in the wrong system for this area. The engineer is not up-to-date on the types.of scrubbers available as the type that is in the STP is not allowable in California. Kornelis stated it is the only scrubbier in* Alaska and the Code now used requires it. Measles stated that .iti many cases there are things that engineering firms and contractors will not and cannot recommend in California which may, be used in other parts of the United States. t-70 Airport Manager. No report. NOTION Councilman Smalls MOVHD for to convene i n e y n a xecutive s0 Sion of the Council of the City�of Kenai concerning matters the • KENAI CITY COUNCIL MEETING MINUTES D&CffiMBER 16v 1992 PAGE 22 immediate knowledge of which will clearly have an adverse , eeftect upon the finances of the City of Kenai. Smalley reque'ted that Kornelis, Brown and Graves be in attendance. There were no objections. 00 ORDERED. Council was instructed to take Item H-11 from the packet -.to the executive session. EXECUTIVE SESSION BEGAN: 10:06 p.m. BACK TO ORDERS 10:45 p.m. H-11. Discussion - Court Facility Project. Councilman Measles reported that Council discussed items pertaining to the courthouse project during the executive session. MOTION: Councilman Measles MOVED that Administration be directed. -and. authorized to sign both the draft letters included in the packet and that Attorney Graves and Acting City Manager/Finance.Director Brown draft a letter in response to the state's funding request. Councilman Smalley SECONDED the motion. There were no objections. SO ORDERED, ITE J= DIBCOBBtON J-1, Citizens Betty Glick - Reported the following: a. The Borough Assembly enacted their Ordinance No.-92-55 which will place on the October ballot to set term limite'of assembly members and the Borough mayor. Glick added that the effective date will be January 1, 1994. Glick added that a letter will be sent from the Borough requesting a representative be appointed from the City to be included on the Tax Task Force. Glick suggested Brown or*-bis designee. Glick stated they will be discussing all tax structures in the Borough. The first meeting of the Tax Task Force is scheduled for 7:00 p.m., January 12, 1993 in the Borough Assembly Chambers. • • • KENAI CITY COUNCIL MEETING MINUTES DECEMBER 16, 1992 PAGE 23 J-z. Council Monfor - Monfor reported that she was called by several people who live in the VIP subdivision. Their concern was the request for approval of a liquor license transfer by the Borough for a bar in the same vicinity as Opal's and the Vagabond alp»g:.: Kalifornsky Beach Road. These citizens requested the City write a letter of objection in regard to this transfer request, even though the bar is situated outside of the City. Glick reported that approval of a temporary transfer was requested to be added to the agenda for the Assembly's last meeting. Glick stated that the Borough Code does not address temporary transfers. Glick stated that they received many calls. The Assembly did not add the transfer to the agenda. However, they received a lot of information. The permanent transfer has been submitted to the ABC. The transfer's public hearing will be. on their January 5 meeting agenda. MOTIONt Councilwoman Monfor MOVED to write a letter of objection the Alcoholic Beverage Control Board regarding this liquor license transfer. Councilwoman Swarner SECONDED the motion. There were no objections. 60 ORDBRED. Swarner - Thanked the Senior Connection for the poinsettias. There were no other Council comments. The meeting adjourned at approximately 11:05 p.m. Minutes transcribed and submitted by: rAPPROVED 8Y COUNCIL` 100 WE