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HomeMy WebLinkAbout1990-01-17 Council Minutes• AGENDA KENA= CTZ'Y COUNCIL REGULAR MEETSNG J"ANUARY 3.7.. 3.9490 A - CALL Wa 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 prders. $ . SCHEDULED PUSI,2C COMMENT (10 Minutes) 1. Mr. Thomas W. Harris - Cook Inlet Housing Authority C . 1PU333[iYC HEAR2NC S 1. Ordinance 1350-90: Establishing an Ambulance Service Fee - $300 2. Ordinance 1351-90: Increase Estimated Rev/Appns by $1$,000 for Shared Costs of U.S. Customs Service Office 3. Resolution 90-02: Make Application for Making Land Use Plan Amendments to City of Kenai Comprehensive Plan 4. Resolution 90-03: Authorize Participation in Alaska Interim Management Services Program 5. *Renewal of Liquor License - Fraternal Order of Eagles #3525 The Upper Deck D . COMM = S S 2 ON/ COMM = TTE E REPORTS 1• Council on Aging 2. Airport Commission 3. Economic Development Commission 4. Harbor Commission 5. Library Commission 6. Parks & Recreation Commission 7. Planning & Zoning Commission 8. Misc. Commissions/Committees R. mxwwrmns 1• *Regular Meeting, January 3, 1990 • is • �` ,. CORRESPONTJEI�TCE 0. OLI7 SUS=NESS 1. Discussion: Requested Reconsideration of Vacation of $1, of 10' Utility Easement - Lot 2, Block 2, Sungate S/D H. NEW Su S T NE S S 1. Bills to be Paid,. Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1352-90: Finding Lot 6, Block 4, Fidalgo Commercial Center Not Required for Public Use 4. *Ordinance 1353-90: Increase Estimated Rev/Appns by $440,000 in a New Fund - "Senior Center Dining Room Expansion" S. *Ordinance 1354-90: Increase Estimated Rev/Appns by $5400 for Construction of Display Case for Steelhead Platform Model 6. Discussion: Assignment of Lease from Sarks to Doyle, Lot 4, Block 4, CIIAP 7. Discussion: Lease Amendments: Lots 10 & 11, Aleyeska S/D (Former Post Office) S. Discudsion: Willow Street Extension Project 9. Discussion: Airport Commission Recommendations: a. Red Goodwin's "Keen'Eye Productions" b. Bid Recommendations for Industrial Display Case 10. Discussion: Cost Estimates on Various Projects 11. *Games of Chance & Skill: City of Kenai Kenai Bicentennial Visitors & Convention Bureau _ . ADM = N = S TRAT 2 ON RE PORTS 1. Mayor 2, City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager a. 0=SCUS82ON 1. Citizens 2. Council K . ADaaWRNMENT 0 J'ANUA.FiY a„ 7 , 19 9 O C = rMW HAt.L . COUNCIL CHAMDBR8 MAYOR aOHN a. Tn7=I".LXAMS , PRRSXDXNG A - CALL, TO ORDER 1. Pledge of ,Allegiance rrr-n ri-ru��i 2. Roll Call Present: Williams, Measles, Monfor, O'Reilly, Smalley, Swarner, Walker 3. Agenda Approval Mayor Williams asked that the following items be added to the agenda: Item G-1 Add Letter from Mr. & Mrs. Poore Item D-7 Add minutes from Planning & Zoning Commission - January 10, 1990 MOTION: 40 Councilman Smalley moved approval as amended VOTE: Motion passed by Unanimous Consent Councilman Walker asked for some time to review the letter, Item G-1. 4. Consent Agenda Councilwoman Monfor asked that Item H-4 be removed from the Consent Agenda. Councilman Walker moved to amend the agenda by removing Item G-1 from the Consent Agenda Mayor Williams asked if any of the Council members had asked that G-1,be placed on the agenda, answer no. Mayor Williams asked if Council objected to having it removed. Councilman Smalley answered that Mayor Williams had indicated that there was a letter from the Poore's under Item G-1. . Mayor Williams informed the public that Item G-1 will be removed from the agenda and anyone from the public who came to speak on this item can do so later in the evening under Persons Present. It is not a regular agenda item requested by Council. MOTION: Councilman Measles moved to approve the Consent Agenda as amended, seconded by Councilman Smalley 0 • 1 KENAI CITY COUNCIL January 17, 1990 Page 2 VOTE: Motion passed by Unanimous Consent B . SCHEDULED 1ptJBL=C COMMENT (10 Minutes) 1. Mr. Thomas W. Harris - Cook Inlet Housing Authority Mr. Harris: What I would like to do today is explain our request for a cooperation agreement for a mutual help home ownership program that we would like to see come into the City of Kenai. Cook Inlet Housing Authority is a nonprofit organization working within Cook Inlet Region. We have two specific program; an elderly low income project which is Chuda House and, a mutual health program. We presently have 213 homes spread throughout Cook Inlet including Tyonek, Anchorage, Mat -Su and Seldovia. We are hoping to develop this mutual help home ownership program with the City of Kenai and the Borough. We are fully funded by HUD, and our application would be submitted to HUD after we gain approval of a cooperation agreement with the City. We have one that is in existence with the Borough. We would submit that within the next 60 days to HUD and hopefully bring 15 homes into the City of Kenai. I would highlight that those are home ownership opportunities. We buy the homes with monies provided by HUD, Cook Inlet Housing Authority is the bank, we turn around and sell those comes back to American Indians or Alaska Natives. It is geared to a low income ram ro but the speaks for itself. Home ownershipmeans program Program uys the home from us, the home buyer hen is responsible for emaintenance homeowner band • we're looking at doing a scattered sight acquisition throughout the City. That means we would come and look at the existing units that are on the market. Specifically we would look at government related units that have been foreclosed on. We purchase those and then we go through the process of moving our home buyers into those homes. We have presently, 18 people who have been put on our waiting list who qualify and are applying for those homes. The program is new to this area which is why we requested to come down tonight and talk, how to fix the tax structure if you will, the payment in lieu of taxes, what shoulder rent means, and what it means to the community as these homes come into our rolls as they are sold and sold to the individuals I have talked about. Up front, probably, is when those homes come off the tax roll, what does the payment in lieu of taxes mean to the City of Kenai. Had the opportunity today to spend some time with your Mayor. Mayor Williams: Because of my concern regarding the loss of property in sales tax we set up some scenarios that were developed around 15 units of housing being put into this program. What we found, using an average price of the house of $75,000 and using the standard rate of rent that the housing authority would be charging, we find that the loss on 15 units from sales tax on the rents alone to the City and property tax based on 4 mils would be $2,010 per year. We used 4 mils as a higher figure than the 2.7 KENAI CITY COUNCIL January 17, 1990 Page 3 0 mils property tax presently in use. We found that when we used the 2.7 mil tax rate it was practically a wash, there was only a matter of $5 or $6 between the difference in tax and property tax that would normally come to us. We then went ahead and set together a little program in which we examined a $10,000 spendable income, in other words the tenant would be able to spend $10400 into the local economy. Using a figure of .3 for the economic roll factor multiplied by the 15 tenants and we came up with a factor of $10,350 utilizing the 3% sales tax. Considering 15 new families in the area living in 15 homes not paying sales tax on rent or property tax under the present mil rate extended to 4 mils, we would lose $2,000 on one side and gain $10,000 on the other. Councilwoman O'Reilly: These numbers are per unit I'm assuming. Mayor Williams answered no, this is for the entire 15 units. Mr. Harris: I think that's a graphic example that when we ran the numbers today, most communities are so concerned about•aomes coming off the tax rolls and then the payment in lieu of taxes being paid which is 10% of the shelter rent and they see a loss of income. We found that the 2.7 mil levy was almost a wash. If it went to a 4.0 mil levy, there was some negative, about $2,000 for the 15 units but then you take that economic multiplier of those families that come in the community and it was $8,000 to the good. The average sales price of a home when we come in, and this is based off acquisition projects that we've run in the Anchorage area, and some market studies we've done down here, we look at about $75,000 to $80,000 would be the actual price of the homes that we would be acquiring on the local market. We feel there are many advantages to the program, we think it does many things based on the units that are available within Kenai, with the Borough, that helps take some homes, that are presently unoccupied, provides a home ownership opportunity to families that would not have that opportunity under any existing program out there right now, quite simply, because they wouldn't qualify for a loan in Alaska today to buy a house. Under this program, we own the homes, they pay us an administration fee, i.e., shelter rent. And we provide that opportunity back. We don't buy homes in a community and forget those homes. I have a very active counseling program. Mrs. Susie Delgato is my housing manager, she has three tenant service counselors, that are specifically directed to the mutual ownership program, we give free occupancy counseling, we do post - occupancy counseling, by federal regulations, we're required to come back in and recertify income and to inspect. That property agreement that we have with the home buyer is called a mutual help home ownership contract, they sign it and we enforce it. We find the program to be very successful. It continues to build demand once a program is established. What that means to the City of Kenai is that more people would apply for that program and that's where we come to the cooperation agreement amongst us. What that really means. Cook Inlet Housing Authority would like to have 30 units on the cooperation agreement that KENAI CITY COUNCIL January 17, 1990 Page 4 i. we're talking about, i.e., the flexibility to grow. I've already told You that we're going to apply for 15 homes in the area, based on the waiting list that we already have. So we can develop this cooperation agreement, we would urge you, as you see fit for your local community. The initial program would be acquisition but if the market turns around, if things change, under this program we also have the potential to do development by construction. The most recent project being in Seldovia where we built 16 homes. If you look to that as the market would turn, and as this program could grow, that's an economic multiplier that we haven't even talked about. The 18 home buyers that we have, their range of incomes, the bedro requirements are two, three, and four bedroom, nine will come from outsideom the Kenai city area. Some of the others live in the borough and would prefer to be home buyers instead of renters. Mayor Williams: There is one detail we have not discussed, and that is that the payments would amount to an additional loss of about $2700. When we talked about the 10% in lieu of, is that the total amount allowed to both the City and Borough, in other words the over all package. Answer Yes. Mayor Williams: We should recognize then that there would be about a $2700 loss because the Borough takes 60% or more of the tax. That should adjust that figure to around $4700 loss with a $10,000 gain. Councilman Walker: In reading through this agreement, please explain paragraph 3 item b. Mr. Harris answered that if CIHA did not make payments, you cannot come back with a lien against that property because we are a government agency. In all good faith, that's never happened. What it does explain that if for some reason we default there would not be a lien against any government property and these houses are classified as government since they are purchased through HUD funding. Councilman Walker: As I understand, this is a home purchasing program, so at what point in time do the people own this home. Mr. Harris: At the end of 25 years. And then they come back on the tax rolls and it reverts back to normal process. Now they do have an opportunity to purchase that home prior to the 25 year time frame as a persons income accelerates. They do not get a tax break on income taxes like we do for payment of taxes or interest. If they finance that through another institute or pay it off sooner, then they realize a tax break. Councilman Walker: Please explain basically all of It seems to me that the City is being required to provide paragraph andsewersewer and other types of services, if necessary at no cost. Mr. Harris: The homes that we are going to purchase under the acquisition side will be existing homes. The specific requirements under our initial market search will be to get homes that are hooked up to existing utilities. We think that is totally realistic. If that is not realistic, we do have homes that are on septic and well. The portion of that, and I may stand correct geared towards when building on off -sight sewer and water, bringing it to the location. We do not see that as something we would be doing within this acquisition. We have that responsibility for on -sight sewer and s KENAI CITY COUNCIL January 17, 1990 Page 5 water. City Manager Brighton: I think one of Councilman Walker's problems with the paragraph 3 is that even though you have a signed agreement at 10% of the shelter rent would be paid, but if you don't pay there's absolutely no way that the City could enforce it. Mr. Harris: Thatstatement is correct and it goes back to the fact that it is government property. What I have to do is stand here before you and tell you that it has not happened, we don't believe that that would ever happen, but as in any agreement that has to be established when you start looking at government properties, you have to get everything on the table and say "worst case". City Manager Brighton: For myself, I need a definition between rent ... if an individual is buying, is that considered shelter rent. Mr. Harris: Shelter rent is the administrative fee that is charged by the housing. authority and consists specifically, the payment in lieu of taxes payment or the 10%. City Manager Brighton: Okay, could you give me a ballpark figure of what that would be on a $75,000 house. Mr. Harris: We're planning, right now, the administrative fee would be $150 to $180 per month times 12 and then 10% of that. City Manager Brighton: Then under 1-c, does that mean the cost of those utilities would be deducted. Mr. Harris: The utilities specifically in this are not deducted from that shelter rent. The utilities the home buyer pays. Those utilities run from $104 to $136 based on the number of 0 units, btu the home buyer pays those himself. City Manager Brighton: So from the formula you put together, the City realizes approximately $7 to $8 per month from that unit. Mr. Harris: It would be $150 times 10% so it would be $15 per month. City Manager Brighton: And the Borough is going to take twice as much as we are. Mr. Harris: We pay, not to the City but to the taxing entity, 10% of the shelter rent and that is split between the Borough and the City. Mayor Williams: There are several other questions I'm sure and this is a "boiler plate" copy, there would have to be one made specifically for - the City should .... City Manager Brighton: Is that negotiable, this agreement. Mr. Harris: There are portions of it that can be worked. What is not negotiable is the 10% shelter rent. We have various agreements throughout the state. We have a legal firm and passed that information on to your City Attorney. Mayor Williams: Before Council could make a determination to do anything they would have to see an agreement that they could agree to. Mr. Harris: My plan of action is for Mr. Chuck Dunning will be in contact with your City Attorney and we will start through that process, hopefully coming up with that final cooperation agreement that we can enter into. Councilwoman O'Reilly: Are you trying to figure out, $150 per month, obviously Cook inlet Region must be subsidizing this. Mr. Harris: We get no funding from Cook Inlet Region, we are funded 100% from HUD. Councilwoman. O'Reilly: I understand that, but I'm trying to figure. out.. how a house could be paid for in 25 years at $150 per month without a large subsidy. Do you have any percentage on any of that price is paid by the • F."AI CITY COUNCIL January 17, 1990 Page 6 subsidy and how much is for individuals b Paid by the homeowner, minimum Y their income because the administrative Harris: It will vary that can be paid, As income increases dministrative fee o equity account. the home buyer pays s the Councilwoman Monfor. into homes similar � In other home to this and their Income nacc eases as Farm Home and better homes, • people buy is one of What happens to your they move up to bigger home ownership and I program. Mr. Harris: for any reason we receive the house bac staff at CIHA Our program next home buyer. Councilwoman Monfor k, then we resell that housat e to If You. Mr. Harris: In effect So the o the it comes back to us have to sell it back to Mayor Williams; talking in to You might mention the sto of the number of terms limiting this agreement to to the program available, Pilot we Were Program and si9 ht and Mr- Harris; We looked into the existing Borough and speCificall 9 agreement we have w• We would be outside og, how many more units we could with the Kenai capability within the boron h existing go to the max before to renegotiate the g s of tO C°nt continue to a agreement, We have 34 agreement with them, xPand until we would have the demand might be higher than it was. When we first started we and felt that it would su We ended u thought like to have the ca PPort an application to P with 18 on the list once it Pability to a HUD of 15 units. We would gets started we will more expand that Program because we feel that to have 30 units on that Initial agreement People interested. this joint spirit of with We would like to limit it Putting this together and thecity the interest of ,,we can work with that. Y said the Mayor Williams; Y wanted More specifically what units have Mr. Harris: These figures You identified i Properties, single family as of last Friday, n Kenai. units were available on the Y homes and 154 Alaska Housing Finance Co four HUD Of Kenai is from peninsula, What I could not isolate for Corporation driving AHFC is how many of those 154 were within 9 around we think there n the city. he City available, are more than ads Y• From gnats number of homes Mayor Williams: direction from Council to Administration. this dialogue, it nistration. will take some City Manager Brighton suggested a work Are there HUD financed projects in the Cisession. Councilwoman Sw City Manager Brighton answered that he h Y such se Woodridge arner. Williams answered that he was aware of onl had no as sod e g Apartments? 4-plexes financed b Y Private ho 9 of any. Mayor tax• Y HUD. Councilwoman Sly pri . homes and Perhaps some Mayor Williams: Woodridge is financed .b And are the Harris suggested that Y exempt from housing, however, Alaska Housing Finance might they section. not Indian housing• g have some Mr. similar Councilwoman Monfor: I would hope that the to the extent that, even though we may be City would we have 1S families that live in 2 to 4 bed Pursue this at least missing out on some room homes Property tax, they have kids, and KENAI CITY COUNCIL January 17, 1990 Page 7 they're going to spread their money in Kenai. Those aren't the folks that are going to be running to Anchorage every week. That's a lot of money that will be coming back into our sales tax. So with the price of these homes and what the market is right now and what the property taxes are, I think that our loss will be ... well it won't be a loss by the time they spend their money in our community. It seems we're always trying to:ge people to come and live here and here is a perfect opportunity. I think we would be remiss if we let it go tonight. MOTION: Councilwoman Monfor moved to have seconded by Councilman Smalley the City look further into the program, Mayor Williams: I would point out that if we did have a family with three children, the education costs of those three children alone would be $27,000 per year. Councilwoman Monfor: That's not our problem. Councilwoman Swarner: In pursuing this matter, I would like to see some written material given back to Council on the numbers that have been tossed around. I'm not coming up with those same figures and I would like to know how you got them. Mayor Williams: I'll have the Finance Director turn those out for us. Councilwoman Monfor: I also think it would be good for Council to see the track record of this program and see if its been in another area. It's really ironic that they've got an agreement with the Borough and sometimes its very hard to get anything by and see, if in truth, what success they've had in the Borough. Mr. Harris: If the Council would like, I could highlight some of the success in the Borough. There are 27 homes in Tyonek, 16 in Seldovia, an 18 unit elderly project in Seldovia, a 10 unit elderly project in Ninilchik, and a 24 unit elderly project which is Chuda House. We have other projects scattered throughout the rest. We don't do a fix and forget type thing. Mr. Harris offered to come back at any time for further discussions. Councilman Walker: I would request of Administration, when this comes back, perhaps the less palatable items in this agreement could be worked out and we have fairly concrete agreement before us so we don't have to work it back and forth. City Attorney Rogers: One reason you don't have such an agreement is number one, the time constraints between the time we first had contact with the organization. Secondly, we didn't know what direction we would get from Council at that juncture. But yes, when it comes back before you we will have a tentative agreement worked out for your perusal. VOTE: Motion passed by Unanimous Consent KENAI CITY COUNCIL January 17, 1990 Page 8 C . PLTBL=C HEPiR:ENG.3 1. Ordinance 1350-90: Establishing an Ambulance Service Fee $32.0 MOTION: Councilwoman Monfor moved for adoption of Ordinance 1350-90, seconded by Councilwoman O'Reilly Mayor Williams called for comments from the public. a. Clarence Ladd: Do I understand that you've already passed .it tonight? Answer no, it is up for passage now. Mr. Ladd stated that he had been speaking with some of the seniors about this. "I would speak against it because it is a pretty stiff fee. I would call it a penalty. Even $100. The City of Kenai has done a lot for the seniors and we.all appreciate it, but if you' re going to give it to us with one hand and reach out and charge us for the ambulance, and I don't use, and we don't know who will, but to me it's high." Mayor Williams: Do you have any idea what Medicare or Medicaid pays for ambulance service for seniors. Mr. Ladd answered no. "I was thinking though that those elected officials here could consider ..... Perhaps the City of Kenai could pick up the bill for us." b. Barbara Waters: I live on Kulila. I would like to speak against the ordinance. Should City Council pass this measure it would seem that it would be another item of government subsidizing insurance. The reason why I say this is that insurance companies that do cover ambulance fees would then have a reason to raise their rates because all of a sudden that is being used. Those insurance companies that do not utilize ... do not cover this could possibly then jump on to the bandwagon and cover ambulance rides and then their cost in turn would be to people that have insurance. Those of you who know me know that my husband and I own a small business. As such, we can not afford health insurance. We have no health insurance. We pray ourselves well. We don't run to the doctor for every little skinned knee and every ingrown toe nail. However, I have an asthmatic daughter, should she need medical help we pay for that out of pocket. I have not found any doctors that would lower our fees because of the fact that we do not have insurance. We pay the same thing that we all 'pay except a lot of you possibly have insurance that covers that. I did do some checking this week, I called around to some insurance companies and was able to get one quote. One company has Blue Cross coverage, very minimal coverage, and they pay on ambulance carriage. a. maximum of $500 per year. Now if I pay out $134 per month for my family to have this health insurance, first of all I have $1,000 deductible per, person so that's $3,000 per year out of pocket. Then $1,064 per year for the insurance coverage at $134 per month. They will pay $500 per year total for ambulance carriage. That's 1 2/3 rides. Two thirds of the, way to the hospital I would have to say stop, I can't afford it. a • • KENAI CITY COUNCIL January 17, 1990 Page 9 My other point is how many users of the ride, if they can't afford it. what are you going to do. Is this then going to be turned over to Roger down the street and then is he going to hound us. That's his business, but than he has the privilege of hounding us forever to come at us and collect this money. What are you going to do for the indigent. Are you going to leave them alongside the road if they have a car accident. Mayor Williams: Before you go any further I will answer some of your questions. First of all, the City does all of its own collection. Secondly, in the statistics we're using we're writing off 40% as uncollectible of fees we anticipate as you say. I might ask of you, do you have automobile insurance? Answer yes. Do you have homeowners insurance? Answer yes. I believe if you check your policy they both have additions of ambulance fee service. c. Dr. Pete Hansen: I am a family physician practicing in the City of Kenai and I'm here to make a few comments. For a number of years, I have been selected by the City to sponsor the Kenai Emergency Medical Services program, the EMS technicians. A good share of the ambulance runs that are made within the City of Kenai are made for people that don't live within the City. Something like 35%to 40% are made for people who live outside of the City of Kenai. As taxpayers, all of us here are paying for this service. Many of the people that utilize this service aren't paying anything at all. By charging for the service, then those individuals that are utilizing it would be paying for it. Today, most insurance companies, including Medicare and Medicaid pay for ambulance services. Right now, our City is not able to utilize any of those funds because we don't have a charge for the service. Right now the taxpayers in our City are paying for the entire support of the department. Most communities the size of Kenai, many smaller, and almost all larger communities around the state and across the United States today, charge for the services that they provide by the ambulance. Ambulance services run anywhere from $200 to $900 depending on the level of care that is given and depending on how far the ambulance has to go to pick up the injured. - By a level of care that is given I mean an injured ankle from a motorcycle accident, doesn't nearly require the level of care as a patient who has had a cardiac arrest. I believe that the City of Kenai could make good use of these funds to help further and upgrade the training of individuals that are working within our fire department. I mean the firefighters and Emergency Medical people that we have. Also, we could utilize these funds for upgrading equipment as time goes on, thus relieving the taxpayers of a good part of this burden. We're all interested in keeping our tax rate down and our Council has done a tremendous job, we've got the lowest tax rate of any community in the state, and this is one of those means of helping to keep the tax rate down. Councilwoman O'Reilly: Do you happen to know what Medicare or Medicaid pays? Dr. Hansen answered that he believed it was about $200. I believe they just had an upgrade this year which raised it to about $249 but I'm not sure. KENAI CITY COUNCIL January 17, 1990 page 10 Councilman Smalley: is this,something brand new because my grandparents had ambulance service up to about two years and they go. nothing. This is in the State of Oregon. Dr. Hansen: The State of Alaska does pay something. Mayor Williams stated that he has a letter dated January 17, 1990 from Mrs. Susan Smalley and read the letter into the record. The letter was in opposition to the charge. Mayor Williams: You should be aware that the City of Kenai, has the. lowest mil rate for services in the State of Alaska. What that means is that if your house is worth $100,000.you pay the City $270 per year taxes. For that $270 per year, the City gives you fire protection, police protection, animal control, recreational services, free library,'ambulance, and street maintenance. In my opinion, the City is going to be severely 'strained in order to continue that high level of service for the present mil rate. You should also be aware that the property tax you pay accounts for only 16% of the entire City budget, it comes in at about $S00,000 and our budget runs in excess of $6 million. d. Jim Doyle: I am against the charge. I think the amount of damage you're going to do to the people that can't pay these bills are going to far offset the few bucks that you're going to get in. It's going to be a darned sight ... there's going to be a lot -of hard feelings I believe. We don't want it, we don't need it. And its got along all these years without it, I think, personally I'd rather pay a little bit more tax than I would to have a $300 bill put on the ambulance for some people that can't pay it. Mayor Williams closed the public hearing and returned the issue to the Council. Councilwoman O'Reilly: I plan on voting against this ordinance. I am not necessarily opposed to a service fee for use of the City -ambulance per se, but I'm troubled by some things that.I read in the newspaper today. I'm troubled by more than one thing, I'm troubled by the coupling of this fee with the plans for expanding the public safety department. I have a real problem with the program the way it's been proposed.. I don't think at this point it's necessary to institute a fee. Councilman Smalley: I also plan on voting against this measure based on what Councilwoman O'Reilly mentioned. Also, I visited with 14 different city residents of which 10 flat.out.said no. Three said,..if its necessary perhaps, why $300, why not $500 or $125. One. of them said sure, I'qe got insurance. Hearing tonight that we have perhaps 40% of it that would be most likely uncollectible I think it may end up being more'of a burden. • • KRNAI CITY COUNCIL January 17, 1990 Page 11 your sports program carry insurance. Council answered no. I think the City may be burdening itself with some real potential legal programs.,.'I, as a coach, if I have an injured athlete that I cannot treat, I have no problems with picking up that phone and calling an ambulance. If I can't treat that athlete and they need an ambulance and I know its going to Come out of my pocket if I call for it, I'll probably be reluctant to call for it. Councilwoman Monfor: I'm going to vote against it. When we brought this up I have to tell you that I went in to it with an open mind, but today at my place of employment I had nine negative phone calls plus I've had some over the last week. However, I think it should be made clear that the paramedic program that the City is looking at is good. I guess this. just isn't the way that we need to go into it. Maybe we should look at our job hiring qualifications, I don't know. I've got to tell you, to a man or woman, nobody was willing to pay $300 and they're paying taxes and they feel this is another tax on their tax. I' m one of these people that feels that user fees are def initely an up and coming thing, but perhaps what we need to do is look at the over all city and see where user fees are appropriate and not singling out the ambulance service. And who's to say that in the next five yeare this will not be a reality and we all know costs are escalating all the time and the City can't foot the bill forever. But this isn't the time. Mayor Williams: It's very obvious that the community is not willing or ready to accept an ambulance fee at this time, I would like to point out, however, that you do have a new ambulance. The City paid $85,000 toward that new ambulance paying for it from federal revenue sharing program. It should also be stated that that revenue sharing program is no longer available to us, there are no more federal funds and consistently over the last three years we've had difficulties in maintaining a level of municipal assistance from the State of Alaska. The time is drawing nigh, very rapidly, that the funding that has been coming to the City of Kenai from the State is drying up and the City residents are going to have to do one of two things; either assume a higher tax rate in order to maintain the service, or take less services for the tax rate that they're paying. So while I will move with the City Council to vote against this ordinance tonight, I take that as a sign from the City Council that they will not oppose potential need for increase in taxes to cover these costs when we get ready to work the budget. Councilwoman Monfor: What you say is very true because I was quite amazed at the number of people who were not against the fact that their taxes might go up to keep the services to the standards that they have come to enjoy. Even a couple of times, the number of people that were calling me, my mouth almost fell open. Maybe they are more aware that for 2.7 mils they're getting a lot of stuff for their dollar. Councilwoman O'Reilly: I agree with Councilwoman Monfor and I also would not be adverse to looking at something like this again, but I think we were looking at it through a very narrow scope. I think if we are going to look . KENAI CITY COUNCIL January 17, 1990 Page 12 VOTE: at this we should look at other fees that the City has and examine the whole fee structure. Motion failed unanimously Mayor Williams thanked the Council and the public for the worthwhile debate. 2. Ordinance 1351-90: Increase Estimated Rev/Appns by $15,000 for Shared Costs of U.S. Customs Service Office MOTION: Councilwoman O'Reilly moved for adoption of Ordinance 1351-90, seconded. by Councilwoman Swarner Mayor Williams called for comments from the public, there were none. Councilwoman Monfor: Will this happen soon? City Manager Brighton: It is my understanding from the Economic Development District, who is showboating this whole thing, is it is possible that this individual could be on board as early as April. VOTE: 0 Motion passed unanimously by roll call vote 3. Resolution 90-02: Make Application for Making Land Use Plan Amendments to City of Kenai Comprehensive Plan MOTION: Councilwoman Monfor moved for approval of Resolution 90-02, seconded by Councilwoman Swarner City Manager Brighton informed Mayor Williams and Council that Mr. Dick Troeger from the Borough is available for comments. Mr. Troeger: I am here to perhaps guide you on this action rather than provide a pro or con. The resolution is not going to affect what you'd like to do. Unfortunately, the enabling legislation that the Borough put in place requires this to be an ordinance, so that's the first thing you need to do. As a background, the Assembly passed this enabling ordinance in March, 1989 and it did amend the Borough Code under the Comprehensive Plan. The City of Seward and Soldotna have each accepted this transfer of authority. I have some sample copies of the type of ordinance if you would like to examine that. I hope you understand that when you take on that authority, it just allows you to make amendments to the Land Use Plan portion of your Comprehensive. Plan. The Borough still has the authority to adopt your Comprehensive Plan. You may wish to address the updating of your Plan as I encourage you to do. If your plan is a little out of date, which I frankly think KENAI CITY COUNCIL pageJanu13 ry 170 1990 It Is, there it before yousget much Point in deman The Borough has serious about making amen. maybe you dust Alf You can Identify funds to assist dments, better update istr8t3on get in toucneed to gety jnte doing these P councilwith me and well that Plan updates s woman Motif Program o this, is that °r: What I find ver d some mone I encourage planning & Zoning re Y interesting is Y over, Councilwoman Monfor guests remove that an ordinance be page d her re drafted. MaY°r Williams quest for unanifiOu COmPrehelllla Am naive I Corr s consent. In Join Plan. ect in stating tit• tomorrow night right now•Planning Zoning C that we are r is available t. Councilman Smalls mmissiOn is piY inns the applied f for d doing t illiams: And h y• There des volt' will °r it and are hat is fort °Ping that whatevers a Work se8siod check °n it. we goin he a ha fro funds n g to iffunding that m the Borough and City Man$ have t, Finance Director have we Mr' TrOegerr Brighton; I beawn :r although answered believe that he application c e have had nothave asked for for an be been many disc received anything a financial he a specific done °n a work fo�n°ns by phone and 9 on paper as P' Impression thatamount °f suggested Yet money• A proposal that an our Planning a cOuPle City Manager that would be & Zoning peoP from Your ger Brighton, to ask Mr. Troeger felt g Co is$ion department I was under come °ver and that there was for the Pu have been the fine, but spoke on the not, hoWever rpose of update meeting with a Plan reall Borough Co people from the g the Plan. to is amendment o Y needs to come from the rislve plan. Borough did cal level YOU are disc PeOPle of the COni are transfer to where I bel ussing torsi the cities, I do t re gel transfers ty' VOTE: all I � belongs more authorit • The more aut y to the Motionan to support that hOrity we can failed unanimouslyaction, llaYor W1113am8 d1re °rdinance. ed Completed before r Williamaskedi8t3on mmissio Pursuin d if the Co Preps the night, n is Working on 9 this mPrehensive appmprlate Janet has amendment. Councian Plan should be far as I know wh mentl6nedt thhat there is a work Smalley: �linance there session o Y• The now• at has transpired. Aga funds availab n it tomorrow 4. Reso further that le but that's lution 90 as Marra ement -03: Authoriaa You ask for the NOTION. Services pr Partici am Petion in Alaska Interim Councilman Sma11eY mo Councilwoman O,Reii1 ved for adopts ...�~`` Y on °f Resolution 90- 03. seconded by KENAI CITY COUNCIL January 17, 1990 Page 14 VOTE: Mayor Williams called for comments from the public, there were none. Motion passed by Unanimous Consent 5. *Renewal of Liquor License - Fraternal Order of Eagles #3525 The UP r Deckr,_,_;�_ No comments Council Recess MOTION: Councilman Measles: Pursuant to Alaska Statute 44.16.310 in KMC 1.15.030 I move for Executive Session to consider matters the immediate knowledge of which would clearly have an adverse affect upon the finances of the City, seconded by Councilman Smalley Council adjourned into Executive Session at 8:45 F.M. Council reconvened at 9:15 P.M. MOTION: Councilman Measles moved to direct the City Attorney to proceed with the finalization of the Amotto lease litigation on the terms discussed in Executive session this date, seconded by Councilwoman:'Monfor VOTE: Motion passed by Unanimous Consent MOTION: Councilman Measles moved to direct the City Attorney to draft a document for indemnification of police officers Harrison and Rouse as to current litigation as discussed in Executive Session this date, seconded by - Councilwoman Monfor VOTE: Motion passed by Unanimous Consent L7. COMM=SSSON/COMM=TT2�E 1t��01�.T5 1. Council on Aging a. Councilwoman. Swarner reported that there was no quorum at the last meeting. b. Work is proceeding on the Congregate Housing project. I will be bringing the cookies to the legislators. C. When I go to Juneau, is it the wish of the Council. that I do any dinner lobbying with the legislators, is Council willing to pay for any dinners. KENAI CITY COUNCIL January 17, 1990 Page 15 Mayor Williams: Along those lines, I set up a dinner appointment for the attorney and I to meet with Rep. Swackhammer on another matter. Council agreed. Mayor Williams reported on a conference held the prior. day on HB218 dealing with modifications to AHFC rules in which they . were proposing to allow financing of low income and congregate housing through AHFC at a rate l% below standard rate. Their recommendation is that AHFC get out of that type of financing altogether. As I see it the:legislature is attempting to manipulate the system so as to put the responsibility of financing,of housing back on to either public entities or none -profit groups. d. Councilwoman Swarner noted.a letter she had received from the Governor regarding Congregate Housing. The Governor mentioned the Christmas tree to other folks around the state. 2. Airport Commission Councilman Measles reported that he missed the last meeting, however, there are discussion items under H-9. 3. Economic Development Commission No meeting until January 18th. 4. Harbor Commission Councilman Walker reported that the meeting scheduled for 1/8/90 was cancelled due to volcano activity. It has been rescheduled for 1/15/90. 5. Library Commis a. Councilwoman Monfor reported that she was unable to attend the last meeting on 1/9/90. b. Mayor Williams reported on the data in the packet and the bell curve. 6. Parks & Recreation Commmission a. Councilwoman O'Reilly reported that the meeting that was to be held last night was postponed to 1/23/90. b. Councilwoman Swarner reported that Director McGillivray will be a speaker at a conference to be held in Soldotna in two weeks. 7. Planning & Zoning Commission a. Councilman Smalley reported that there was discussion and a motion to have Council reconsider the vacation request.in Sungate Park which failed at the Council level. KENAI CITY COUNCIL January 170 1990 Page 16 b. There was a proposal for a bed & breakfast in a 4-plex unit in VIP. it will be coming back as a conditional use permit. c. There was an application for 21 mooring buoys in the Kenai River near Wards Cove Packing. Apparently 18 already exist. d. The work session on the Comprehensive Plan will be February 15th. e. DCRA sent out information regarding training sessions forthcoming for Planning Commissions. Since there are no funds for travel they may be coming back to Council to request considering sending at least two City Manager Brighton: We have made the request on the application for them to provide one of those seminars in Kenai. f. Mayor Williams indicated the letter from Margaret Gilman who is resigning. There are several applications in the packet. Mayor Williams recommended Mr. Harbaugh. Councilwoman Monfor noted that Mr. Miller's application had been in since October 1988, therefore recommending this person. Mayor Williams noted that Mr. Harbaugh's application came in September 1988. Councilwoman Swarner stated that it was her understanding that he was not a continuous resident since 1979. Councilwoman Monfor: I don't have a problem with either one, but when Mrs. Gilman leaves, there are no women on the Commission. Women are a good balance. I feel that when the next appointment comes around we need to seriously consider that balance. Councilman Smalley: Just a statement in reference to Mr. Miller, he has been on the Commission for two terms in years past, he has been involved with different development projects that have taken place within the City and with the Comprehensive Plan coming up for review having prior experience could provide some positive input. In the eight years that.I served on the Commission, he did provide some positive input. Mayor Williams advised Council that there may be another opening within the next 30 days. We need to be rather careful here, to ensure a line of continuity. We have a couple members that have been on the Commission for a very long time. Mayor Williams suggested Mr. Harbaugh as first choice and Mr. Miller as second choice. Councilman Walker: I am very much in agreement with your suggestion. I know a number of these applicants and I believe too that Mr. Miller will do an excellent job and has done an excellent job in the past, however, he has been on the Commission for a fairly long time and I would like to see a few different people have a chance. Knowing Mr. Harbaugh I would definitely go along with that recommendation, one reason being that he would have a different input than we've had in the past. The people of the City of Kenai are enjoying some of the newer input we seem to have, I've had a lot of calls about the recent decisions the Commission is coming out with are very much appreciated. : • KENAI CITY COUNCIL January 17, 1990 Page 17 Mayor Williams stated that one of the reasons he would like to hold on the Miller application is that he has not had contact with him in several months regarding his availability. Councilwoman Monfor suggested that since the applications are dated, we could again solicit in the media. Council agreed to Mr. Harbaugh being appointee to the Planning C==J esion. 8. Misc. Commissions/Committees a. Mayor Williams stated that the Beautification Committee minutes indicate a new chair and vice chair. b. Mayor Williams reported that he attended the meeting and updated the Committee on the capital projects the City is undertaking and the sign situation. c. The Committee will be meeting with Mr. Fred Braun regarding the locations, there will possibly be three, and then coming up with some designs and cost figures. Mayor Williams requested that the cost of the signs not exceed $3,000 each. d. Councilman Smalley brought up an item from the Planning Commission which dealt with the new Recreation zone and the sign code portion of it. It was their discussion that they are going to let it set as it is and take no action and as they come in, treat them on an individual basis. Mayor Williams: That makes sense. 0. MINUTES 1. *Regular Meeting of January 3, 1990 F . CORRE S PONDENGE None a. OLD SUS = NE S S 1. Discussion: Requested Reconsideration of Vacation of 5' of 10' Utility Easement -Lot 2, Block 2, Sunoate S/D Item set aside. H . NEW SUS=NESS 1. Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Monfor moved to pay the bills over $1,000, seconded by Councilwoman Swarner VOTE: KENAI CITY COUNCIL January 17, 1990 Page 18 VOTE: Motion passed by Unanimous Consent 2.Requisitions Exceedina $1 000 MOTION: Councilwoman O'Reilly moved to pay the requisitions over $1,000, seconded by Councilman Smalley VOTE: Councilwoman O'Reilly asked about the last item, flooring for the craft room, where is the craft room. Mayor Williams answered that it was in the Senior Center. Director Porter stated that the linoleum there now is cracking and is in bad shape and needs to be replaced. Motion passed by Unanimous Consent 3. *Ordinance 1352-90: Finding Lot 6, Block 4, Fidalgo Commercial Center Not Required for Public Use Consent Agenda Item 4. Ordinance 1353-90. Increase Estimated RevJAppns by $440,000 in a New Fund - "Senior Center Dinina Room E ansion" This item was removed from the Consent Agenda. MOTION: Councilwoman Monfor moved to introduce Ordinance 1353-90, seconded by Councilwoman Swarner Councilwoman Monfor stated that she wished to speak on this item because of the price. We're asking for an addition of approximately 2700 square feet including three walls and nothing else. The cost at $440,000 comes to about $130 per sq. ft. Included in this cost besides the inspection is $35,000 architect fees. I realize this is public money, it is a public building, and I think we can do a lot better in a lot of ways. The Public Works Director and the Senior Director can sit down with Mr. Kluge and f igure out ways to make it cheaper or cut the square footage down. They've already taken everything else out. What we're looking at is more room. If we have to I think we'll have to go out to bid for an architect or go out to bid to the contractors and not say we're going to appropriate $440,000. I have felt for a number of years, sorry but the airport is just a real good example, but when a contractor knows it's public money the sky is the limit. If we were private money I don't think this would be happening. Before it comes back to the next meeting when it is open for public input, I would hope that administration can come back to us with either a more reasonable price or another alternative on how to handle this. This is ! a KENAI CITY COUNCIL January 17, 1990 Page 19 almost the cost of the whole building when it was built in 1982 and that' s crazy., PW Director Kornelis stated that the letter from the architect is in the packet which explains how the cost estimate was arrived at. We did go back and look at the original bid and the low bid came in at $131.36 per sq. ft. basic bid. Councilwoman Monfor asked if that included everything such as the kitchen and bathroom, answer yes. Bill Kluge: We drew up contract documents for the City of Soldotna Senior Center and had an estimate done by Clark -Graves in Anchorage and that project. came in at $144 per sq. ft. Realizing that the addition we're proposing for the Senior Center has no restrooms or kitchens, it is an addition and it will take demolition. of walls and temporary walls to keep the dining room and kitchen warm during construction. Currently there is an exhaust fan in the kitchen that will be moved 481. That added length of pipe could require that it be replaced. This addition will have a stand-alone mechanical system so you will have to have a heating and ventilation system for the addition. It has some features that make it similar to a separate facility. With the cost that we had on the Senior Center, I didn't want to come in here and tell the Council that we could build this addition at $120 per sq. ft. and be put in the position of coming back because we underestimated. Concerning my fee, I haven't received quotes from consultants which will be 40% of my fee. The consultants will be structural, mechanical, electrical engineering, etc. I might mention that the next low bid in 1982 was $137 per sq. ft. The roofing system that is on the existing building. is a standing roof and has a complicated overhang. Councilwoman Monfor: I realize that $150,000 was unrealistic and when I mentioned this at the last meeting,. I was looking in the area of $225,000 to $250,000 and felt that was realistic. Are we expecting a major lean year next year? Mr. Kluge: The estimators at Clark -Graves did mention that they were also doing their estimates a little higher because in the last few years contractors have folded and they were in the process of estimating ten major school projects across the state when they did the Soldotna Senior Center. They are predicting that this summer the larger firms that can afford bonding for public works projects are going to have their hands full. Councilwoman Monfor: I don't know where they're going to build tennew schools,. it certainly isn't the Kenai Borough, or Mat -Su. Mayor Williams stated that they will replacing some schools that have burned down. Councilwoman Monfor: Well that's in the bush community and the costs are much higher there. I would like the administration to work on it and on our next meeting, hold the public hearing, and they can came back, somehow with an amount that is more plausible. KENAI CITY COUNCIL January 17, 1990 Page 20 Mayor Williams: My comment is in regard to the size. I was looking at more of an expansion in the 1,000 sq. ft. to 1,200 sq. ft. range. That would easily accommodate eight tables with eight people per table,.would- be 64 people. The intention was to expand the dining room facility to accommodate a few more people. One had to also question the expansion of the dining facility to accommodate more people using City funds when. in fact a lot of the people that go there would not in fact be from the City. of Kenai. While that may not be a major concern, we still have to look at the overall well being of the City in the development spending. of $440,000 for the general welfare of the City versus a limited group of people. It would seem to me a smaller addition to accommodate 50 to 60 more people would be more in line with our thinking and that in turn would cut the cost. Councilwoman Monfor: The whole idea behind this is because of the congregate housing. We'll have to expand the dining room anyway when we • get the money for the congregate housing. Mayor Williams: Well then we go back to the congregate housing package. If the package flies I believe we'll address .... Councilwoman Monfor: No, we're addressing this now to show our good faith to these guys down in Juneau that we're willing to do our share. That was the whole idea. Never the fact that it was going to be $440,000. Believe me the people that come to the Senior Center, it may be that a great number of them are from out of the area but they go there all the time and go there for specific reasons. Those seniors seem to be carrying their own weight in a lot of areas in that Center so don't say that it is a small population. Mayor Williams: I still say that a smaller addition at less cost would be more appropriate situation. Councilwoman Monfor: So that next year we can go bash another wall down. Mr. Kluge; You know if you could cut $20 off the $130 per sq. ft. and you took 1,000 sq. ft. off this addition, you would save $120,000. That's almost 1/3 of the total square footage. Councilwoman Monfor: We're not the ones that know what the need is. The Center and the people that work there know. If we can't listen to them then why do we want to do this. If it's not going to be beneficial ... maybe they don't need 2700 sq. ft. Maybe they can get away with less. Mayor Williams: By the accounts, they are serving 100 people now, those 100 people are utilizing that square footage. If they serve 160 people by adding 1,000 sq. ft. are we looking at serving 280 people per meal? I have some difficulty with that. I also have some difficulty with spending $440,000 of City money when it comes to the overall benefit,:to the numbers of people being served. For $440,000 the interest alone on that at 7% comes to $28,000 per year. For $28,000 per year we could hire more staff and expand the lunch hour. There's nothing sacrosanct about having to eat from noon to 1 P.M. for 100 people. KENAI CITY COUNCIL January 17, 1990 Page 21 Councilwoman Monfor: I can see the City Manager saying okay you can hire more people. Mayor Williams: The City Manager doesn't have anything to do with saying whether you appropriate the money or not. Mayor Williams: Regarding your remark concerning good faith before our legislative delegation, I think its time they showed good faith to. us. Its not our position to show good faith to them. We've put our request in to the State, we've begged, lobbied, everything possible. I think we need to find out where they're coming from first. Councilwoman Monfor: Does this mean you're not willing to do a dining room addition. Mayor Williams: Not when it comes to $440,000. Councilwoman. Monfor: That's why I brought it off consent agenda tonight, because I think $440,000 is too much also. But there must be a way for them to have that addition and not cost the City that much money. Councilwoman O'Reilly: What is the current square footage of the dining facility. Mr. Kluge answered that the addition would double the size. Actually $20 per sq. ft. times $1,000 is $20,000. Mayor Williams: Yes but 1,000 sq. ft. times $120 per sq. ft. is $120,000. Councilman Measles.: If you take 1,000 feet off at $130 per sq. ft. is $130,000 off the $440,000. Then if you take $20 per sq. ft. off, then that's another $34,000. If you've got $164,000 off the $440,000 if you cut it back to 1700 sq. ft., you reduce the cost. Mr. Kluge: $54,000 for the total project if you bring it down $20,000 per sq. ft. Mr. Kluge: One thing I should mention too is there is an existing transformer that will have to be relocated. Mayor Williams: At this point in time we will direct administration to work with Mr. Kluge to cut the size down or something to get the cost down to an acceptable range of $250,000. Council agreed. PW Director Kornelis asked about the structure, if Council wanted to keep the same tile, roofing, etc. Councilwoman Swarner answered yes, but it is part of the problem. PW Director Kornelis agreed, it is very expensive but it will look like an add -on if you use anything else. So the best way to cut costs is to cut size. Councilman Smalley: Where did this 2700 sq. ft. figure come in. Did it come in because of discussion of the congregate housing and the current existing need or what. Councilwoman Swarner: It came from the housing committee made up of myself, Director Porter, and Hill Kluge. Councilman Smalley: In other words Its a figure the committee looked into. Mr. Kluge: Originally, the committee was going to expand the lounge, but that was dropped. They wanted dressing areas for performing and the dining room, and those were dropped. What this plan would boil down to is dining, storage, and mechanical space. The storage that they outlined here is for the kitchen. Councilman Smalley: The reason why I asked is if its a square footage figure that the committee came up with as being essential., if you build something smaller for less money which we obviously decidede. then maybe down the road you're looking at another expansion when the congregate housing goes. 0 • KENAI CITY COUNCIL January 17, 1990 Page 22 premature. We need to plan . and I think what our intention was, was to plan an addition that we would fund in .the event the congregate housing didn't go. Should the congregate housing go, whatever we're deciding now, may, be without merit. We may have'to change. VOTE: Councilwoman Monfor: , I know , . that . the Cit . has a lot of • things that .are going to cost money and we have debts and things that need to be taken care of, but on the other hand, we do have some money and we have to do things besides depend on money from the state all the time. We have to do some things for our own selves. I just think that,we need to start thinking about that and this is one of the things plus a .couple more in the packet. We can't just sit and o nothing. Mayor Williams agreed. We must keep our eye on the expenditure of money and the value of that money to benefit the whole population. We have 6500 people in the whole area and we need to be sure to serve them. The Council has taken the attitude recently that yes, we are going to spend some of our reserve money for projects we hope will bring a return to the City. Motion failed unanimously 5. *Ordinance 1354-90: Increase Estimated Rev/Appns by $5400 for Construction of Display Case for S� teelhead Platform Model Consent Agenda Item 6. Discussion: Assignment of Lease from Sarks to Doyle, Lot 4, Block 4,CIIAP r �_.r�r♦r�rr���._ _.��rr�rr-.r. r.._�.rr_r�ri irr..� i_ir�i_i i irr_r ir---irr�r�irr�iri.� MOTION: Councilman Measles moved for approval of assignment of lease for Lot 4, Block 4, CIIAP from Sarks to Doyle, seconded by Councilman Walker VOTE: City Attorney Rogers:_ I have prepared _a surety document to be'signed by the individual in his individual capacity because the lease being taken in the corporate capacity. Mr. Doyle did not object. For the Council's edification we will have that individual. surety agreement signed as well. Councilman Smalley: Does this take care of the question that Kim raised on the bottom of the memo, City Attorney Rogers answered yes.. Motion passed by Unanimous Consent 7. Discussion: Lease Amendments: Lots 10 & 11, Aleyeska S/D (Former Post Office) ... .r...._ ...,.._--,- Councilwoman Monfor asked what was. needed. City Attorney Rogers answered: All we need is direction from Council to allow the amendment of that lease to permit a restaurant facility. MOTION: KENAI CITY COUNCIL January 17, 1990 Page 23 MOTION: Councilwoman Monfor moved that we amend the lease to state that this allow a restaurant and lounge, seconded by Councilwoman Swarner VOTE: Motion passed by Unanimous Consent S. Discussion: Willow Street Extension Project Mayor Williams: In looking over the master plan of the airport, it appears the Plan calls for an alignment that appears as the alternate on the back page of the letter from the City Engineer. I thought I had better bring it back to Council and ask if you want to follow the airport plan or go ahead and short cut it the way that we now have. If there are some mitigating factors here that will cost considerably more by about $97,000. Councilman Smalley: On the new alignment, was that not due to the fact that we could possibly consider putting some schools in that area. Mayor Williams answered that the school would go on the east side of the road. it shouldn't make a lot of difference. I think the question is do we want to spend the extra money to stay in line with the plan. MOTION: Councilman Walker moved that we direct the City Engineer and administration to stay with the original alignment, seconded by Councilman Smalley Councilman Walker: I cannot see that the small portion of road would be worth virtually doubling the cost of the project. With Marathon extending beyond, most of that property could be utilized in an as -is type of position. We're talking about a lot more money just to be sure the roads are pretty. Mayor Williams: As I understand it we are going to have to relocate that FAA communications cable under the present plan but we won't under the.. proposed plan. Answer yes. Mayor Williams asked if there are any problems foreseen from the FAA in cutting into the cable for any period of time. Airport Manager Ernst: I talked with the City Engineer about asking them what that cable is and I am assuming it is to the RVC. It would present a problem as far as reporting of the weather at the airport so I don't know what type of time frame we're talking about. VOTE: Motion passed by Unanimous Consent 9. Discussion: Airport Commission Recommendations: a. Red Goodwin's "Keen'EYe Productions" City Attorney Rogers: Basically there are two ways to accommodate this facility. One would be an RFP procedure. We've discussed this administratively and we feel the fastest, easiest, cleanest way to go is with straight ground lease rather than go through all the 0 • to KENAI CITY COUNCIL January 17, 1990 Page 24 Protection that an RFP would afford because we're not going to give an exclusive use if we do a lease. I can't imagine someone wanting to It put ald be a similar nonexclusive lease, Of operation in there. It would be for a three he same type we're looking at and we would have to negotiate w th theterm individual relevant to the rental rate. Mayor Williams: When you talk about a to talk in terms of lease rate, and location. City ground lease, are you going No, that wasn't what we were alking about, but there's ue other things I would just as soon not get into the negotiation process at this point, We've got some other things such as how much footage will the City of Kenai have on the display, footage finalize anything, we will be bringing the final document back to the Council for execution. MOTION: Councilman Smalley moved that the City develop a ground lease with K eye Productions for the airport facility for their proposal, and return t 's, seconded by Councilwoman Monfor. o us, VOTE: Motion passed by Unanimous Consent The ordinance appropriating the money is up for introduction uncle item H-5, r a• Softball Control Center Councilwoman Monfor noted that this is on the Council CIF list as part of the economic development grant. Mayor Williams asked Council If we should go ahead with getting plans ready to bid regardless the outcome of the session. of Director McGillivray: In talking about the control center and the figures that are shown, the Anchorage facility is described as the center of a four field complex. It is two story, the lower level has a snack bar, storage, restrooms and the upper level is te control center for all four fields. Our set up here is considerabl different. We have two fields close to the home plate, then t y fields further north. two What I would recommend is, because the restrooms are cle south end of the softball complex,he ar to tresentend we look at to the north e additional restrooms and a snack bar. The p . old building we moved in from the old little snack bar is an around $3500 several years ago to get them a leagueable. fields. We spent shape now. We could cut this figureIt is not in good $100,000 rather than $200,000 plusconsiderably, to more like KENAI CITY COUNCIL January 17, 1990 Page 25 Mayor Williams asked Director McGillivray to work with the public works people to can® up With a design that would be adequate. Mayor Williams: Regarding the pavilions themselves, this particular pavilion is 20' x 20' and I wonder if that is large enough. If we get a substantial savings on the building itself, perhaps we could look at two buildings. Director McGillivray: In talking with Bill Musson, we're looking at this for the area of the green strip and possibly enclosing one end and having a grill or fireplace area. It could be used by larger groups. By enclosing one end it would cut down on the wind a lot and create a cooking facility for picnics. Councilman Smalley asked if during the summer is the prevailing wind from the south off the inlet. Director McGillivray answered that the problem is usually the north wind. Councilwoman Swarner: I would also like to see them look at the use of Porta-potties as an alternative. Director McGillivray answered that before we had restrooms and had the Porta-potties we had to empty them every other day. It was a real problem in that area, people were dumping them over. They are expensive and is not cost effective. Water and sewer is in. 11. *Games of Chance & Skill: City of Kenai Kenai Bicentennial Visitors & Convention Bureau Consent Agenda Item _ . ALCM = N = S TRAT 2 ON RE PORTS 1. Mayor a. Mayor Williams asked for indulgence to have Mr. Floyd Heimbuch, of the Cook Inlet AquaCulture speak regarding the proposed boat launch. He will be available for the public hearing on February 7th. Floyd Heimbuch: Under the same legislation that made Cook Inlet Aquaculture, there is a provision that allows for "mom and pop" hatcheries. One can obtain the permit from the Department of Fish and Game for the rearing of salmon. Should any profits be made from that other than waged, they would have to go back into the regional corporation which is CIA. I believe you've heard quite a bit from the Foster Brothers about their recreation site, the location of this project would be in the Foster Brothers, Beaver Creek RV park or current gravel pit. When I made up this brochure, I put in a page on species and capacities, and it is not operative now. if you wanted to write in what is in the permit that we are after, it would be four units, self contained, sheeted a capacity water, sockeye, 500,000 capacity each unit. The total g9 would be 2 million. All of these fish would be rear in self contained 500,000 i r.. KENAI CITY COUNCIL January 17, 1990 Page 26 The permitting process is very complex. At this point we are writing up a hatchery permit to be submitted to the Department of Fish and Game and then all the other permits and reviews. The idea started about two years ago when Steve Foster suggested that fish could be put in the Kenai River and I said "not in your and my lifetime" and then I woke up in the middle of the night I wondered why I was negative and as a result of many discussions with many qualified persons, we thought that there was a possibility that this project could actually happen. The biggest deterrent to this project is the fact that enhancement in the Kenai River is not looked at by large groups of people as something that. they want. The other big weakness is that the fish we are proposing to put in would be early return sockeye so there would be only dip netters, sport fishermen, and subsistence fishermen, no commercial people would be interested. Councilman Smalley asked if they were dealing with fry or eggs that are indigenous to this area. Mr. Heimbuch answered that we would take eggs from the early Russian River run. Councilman Smalley noted that Southeast Alaska had some problems. Mr. Heimbuch stated that he came in with the CIA from the very beginning. Mayor Williams noted that the City of Kenai will be asked for an easement for this fish passage. Mr. Heimbuch answered that there is an easement to the river where the water runs out f rom the lake which is where the f ish would come out. Mayor Williams stated that this is the easement that the City has had so much discussion over. It is proposed to be used for a fish ladder approach. Councilman Smalley stated that this is the easement the state said not to get rid off. Mayor Williams said we would not get rid of it but work something out. Mr. Heimbuch stated that they would probably have a culvert or something. Councilwoman Monfor: I personally feel that while there are a lot of hurdles, I think it would be great. When we have this public hearing, could we have more information on filling up this land to make it more usable. Mayor Williams asked if that were the boat ramp proposal, answer yes. That was included in the total cost of the project. Councilwoman Monfor asked for a breakdown. IfP Director will provide the information. b. The public hearing on the fire training ground was cancelled for the third time last week. In discussion with DEC and DNR, they are now working with the UAA to speed up the process since we have lost four weeks. Unless . we can come to some agreement we may have to postpone the construction to next year. c. Regarding the helicopter school, its almost time to start that program up again. We will be making a larger proposal, $5 million this year based on the fact that we have had new user requests from the U.S. C.G'. and Shell Oil. Senator Stevens will be putting together a different package. KENAI CITY COUNCIL January 17, 1990 Page 27 d. Regarding Porta-potties, this was brought to my attention by one'of the local service groups. It seems as though we do have a considerable. need for these facilities from June lot for three months and an additional three during July. Their concern is that too many people were dumping their trash in the bushes. is this something we want to take care of.. Councilwoman Monfor felt it was a good idea. Councilwoman Swarner asked Director McGillivray if this would be the same problem as down at the mouth of the river. Mayor Williams stated that we always have problems with these things regardless if you build them out of concrete block or not. We do have restrooms at the foot of the hill but they are far removed from where the fishermen are. City Manager Brighton felt that budget time is a good time for inclusion. Mayor ViIIiams-, If there are no objections, I would director Mr. McGillivray place it in his budget. Council agreed. Councilman Measles asked if it could go in the docks budget. Council felt it was used more for recreation. Councilman Walker noted that the letter was addressed to the public works director and the Mayor directed it to parks. Council agreed it would remain with the beautification budget. PW Director Kornelis stated that at the dock, when it gets very populated, we got so bad we couldn't keep the restrooms going so we leased out one. Mayor Williams stated that the point is it has never been done before. Director McGillivray agreed that, especially during dip netting season they certainly would be needed. Councilman Smalley asked if the parks crew could deal with it along with the other chores. Director McGillivray answered that if they are dumped over then the servicing company has to do the clean up. e. Regarding the Job Corps Training Program in Mat -Su. The legislators from Mat -Su are reluctant to turn over their new closed high school for this program. Gottstien has tried to sell them the old grocery store/mall complex across the highway from the fairgrounds for $2 million and the Borough has another $1 million appropriated from the legislature they want to spend to remodel it, however, there is discrepancy over whether the fads want to do that. The Governor was supposed to release them from their obligation so they could go out for something similar to an RFP on a statewide basis to see if there is anywhere else this JTPA might fit. . Mayor Gilman, City Manager Brighton, and People Count people have been discussing the old elementary school and whether we might be able to accommodate them. It appears we might be able to. When they get ready to go for the RFP we will only have 45 days to put it together. I need some direction from Council on whether to move on it and secondly, if we do move on it it may require an additional $1 million. The requirements are that there be a major dining facility associated with this program. The housing will be appropriated by the federal government and the dormitories for up to 250 students will be built by them on land that the City could put up. The school has enough square footage for the educational and administrative needs and part of the recreational needs, KENAI CITY COUNCIL January 17, 1990 Page 28 but there are no dining facilities there. This is dining and kitchen. If it costs more than $1 million the City may have to look at helping to finance it. It would bring in 40 to 50 in employment and 250 students and enhancement of the education facilities, Councilman Smalley: Just looking at the small amount of asbestos abatement at the airport, I shudder to think about what is in that building. Mayor Williams: It has been said to us that if its used for the same purpose, we don't have to abate the asbestos and go through a major renovation. Councilwoman O'Reilly: What happens if you go in there with an addition, a new construction. Mayor Williams: The building would go out the back. There might be some asbestos containment rather than abatement in this case. That can be considered within that 45 day.poriod when we put the package together. Councilman Smalley: I come from a job corps community in Oregon. The facility is an old naval base in Astoria and it does pump a great deal of money into the economy, no question., And it provides a much needed service from an educational standpoint. I am reluctant to say tonight to potentially obligate the City to $2 million. City Manager Brighton: I think what the Mayor is doing is trying to familiarize yoq with what possibilities might be, not that he's trying to get anyone committed, but in that 15 days from now telling, us to put a program together, it won't be a surprise to -Council.. I would personally suggest, $1 million spent in that area would probably be about as good a way as you could spend money for economic development. The Seward.skill center has been an on -going, year round producer for that community. Mayor Williams: There are a lot of hurdles to cross before we can even begin to complete the RFP. We need some kind of understanding from the school board whether or not they would surplus that building for this type of building. I've been hearing rumors that they don't want to surplus it but rather retain it and reopen it. -. Councilwoman Swarner: I would suggest that you proceed as if we're very interested. Mayor Williams: We will probably know in about 15 days. Councilman Smalley: I think its a worthwhile venture to look at. Council agreed that Mayor Williams will proceed with the RFP. Councilwoman O'Reilly: At the same time, have you had any discussion with the school district about surplusing that property. Mayor Williams answered that it was rumor at this point. 2. City Manacer a. City Manager Brighton reported that Mayor Gilman had -called wanting to know what had to be done in order to permit a transfer site at the present dump site. Obviously we would have to rezone it to bight industrial to permit a transfer site. To take that one step further, his purpose in talking about a transfer site out. there is that negotiating with KENAI CITY COUNCIL January 17, 1990 Page 29 Peninsula Sanitation to lease them the real estate and lot them operate the transfer site. It would not be free, for anyone that wants to take their garbage out there because it is leased. The.point is direction is needed from'the Council, whether you would like us to proceed and see how much acreage they need for a transfer site and proceed with a zoning change that would permit that kind of situation should they conclude an agreement with Peninsula Sanitation. Councilman Measles asked the current zoning, answer rural residential. Councilwoman Monfor: It galls me that our people would have to pay for it, but it would be better to give.them an option,of taking their trash inside the city than to drive clear to Soldotna. I feel," just from talking to people on this issue earlier, most of .them are willing to pay something to keep their traffic from going , so far. City Manager Brighton: The simplest thing would be to ask the Borough Mayor how much space he thinks he needs. if he needs five acres, then draw out f ive acres around that gate entrance and submit it to Planning & Zoning for rezoning. If you would rather go further with rezoning that area then we can. Councilman Measles: I think they're going to have to rezone that whole area there something besides residential. They're never going to be able to build a residential home on top of that. City Manager Brighton: I'm not sure they're ever going to be able to put anything on top of it. Councilman Smalley: The original site of the'dmp was a school site, that portion of Section 36. it was set aside for a school. Mayor Williams: All Section 36 were set aside for mental health lands not necessarily for schools. City Manager Brighton: If there are no objections, I will pursue that with the Borough Mayor. 3. Attorney a. City Attorney Rogers: You have a memorandum regarding Kenai Korners. b. The other thing has to do with the motion for issuance of a tax deed as to some 64 parcels that we are going to proceed to acquire and it will become part of our land base and will be available for resale. Many of you will recall for many years, Crown Developers, Inc. We got a delete from the stay in bankruptcy court and we will finally be acquiring those properties.. Those are primarily in Mommsen S/D. c. Councilwoman Swarner: About the Treet building, is there any word about when it will be down. City Attorney Rogers: The last I was there I talked to the individual and he was straddling a beam with an acetylene cutting,torch and..he had two uprights to go., 4. City Clerk Clerk Ruotsala: Thanks for the flowers, gifts, etc. while I wasill. KENAI CITY COUNCIL January 17, 1990 Page 30 5. Finance Director None 6. Public Works Director a. The CIP brochures were passed -out, there are over 1,000. b. The letter has been written to the state which was instructed by the Council at the last meeting. A copy is in your packet. Mayor Williams: I will bring to your attention that last night -the. City worked overtime to unplug the state's drains. Councilwoman Monfor:' I certainly hope we're sending them a bill. c. PW Director and Mayor Williams will be going to Anchorage 1/25/90 to present our Kenai River Mouth Viewing area project to the Governor's Outdoor Recreation Committee. It looks good from what we hear from the administrative people. They have $600,000 this year which a lot more than the $150,000 that they normally have. d. Councilman Smalley: I know you've had many phone calls on this but I need to ask who is responsible for clearing the sidewalks on the Spur Highway through downtown, answer state. They can clean them in the neighboring towns but they can't clean them here.. And the picture in the Clarion today doesn't tell the real story. There's women, children, and men walking on that road at night when its dark. That is dangerous. What about the side streets. PW Director Kornelis: I mentioned that to the state and have no answer. As for Willow Street and some of the others, we do those when we are finished with the streets and airport. Councilman Smalley: When the crews go out again, whenever that might be are they going to use their extra wide angle blade to push the stuff farther in the ditch? Many residents are running out of places to put.the snow and the recent warming the wet stuff is solid. It isn't going to move unless you have a heavy grader to move it. Answer yes. For our area I think the crews have done a good job. PW Director Kornelis: We worked until 11 P.M. last night and started at 4.40M. today so they are working 15 hours per day just keeping the. roads open. Councilman Smalley: The next letter to the state shouldn't be so friendly. 7. Airport Manager a. Mt. Redoubt is causing the problems it does, at the airport it will be causing a lot more problems with the amount of ash. There isn't much we can do during the winter or as the borough suggests, wetting it down, because it causes a whole different problem with required braking for aircraft. I just want to make you aware of the problem because this last time ERA didn't meet their schedule and Southcentral was able.to run at least their piston driven planes which, did help, but if you do get complaints, you will know. Even off the runway we had problems with wind blowing it. • • KENAI CITY COUNCIL January 17, 1990 Page 31 b. January 30 and 31st, the state is holding a statewide leasing seminar to which Kim and myself will be going. I will be a panelist with the other three municipally owned airport managers. We will be discussing the various leasing programs. I think the state needs to get as much input. as they can, they have a real problem with their leased lands on the airport. The City will be reimbursed $150 for my fees for attending. a. mmscuSS=C?N 1. Citizens None 2. Council a. Councilwoman Swarner: I passed out a letter I received today and it seems kind of confusing. I am on a subcommittee for AML. Do you want to write a letter in response? b. Councilwoman Swarner: Regarding Info 5, I really think that we need to do something about contacting our local legislators. Do you want me to contact them while I'm in Juneau, perhaps dinner, Council agreed. C. Councilwoman Monfor: I'm sure everyone is aware, but former Councilman Ackerly now works for Representative. Navarre. The man is very, accessible and welcomes input from his hometown. d. Councilwoman O'Reilly: These green folders are wonderful and thank yod. K . AI7.7'OURNMENT There being no further business, the meeting was adjourned at 11:00 P.M. I Y Janet A. Loper Planning Specialist (Transcribed from Tape) /�_ OVND ®Y COUIVOL