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HomeMy WebLinkAbout1989-01-04 Council Minutes• _ T . AGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 4, 1989 - 7:00 P.M. A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval a. Executive Session 4. Consent Agenda *All items listed with an asterisk M are considered to be routine and noncontroversial 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. S. SCHEDULED PUBLIC COMMENT (10 Minutes) C. PUBLIC HEARINGS 1. Ordinance 1301-88: Increasing Rev/Appns by $1,000 Senior Citizens/Borough Special Revenue Fund 2. Resolution 89-01: Adopting 1989-90 Capital Improvement Project Priority List 3. Resolution 89-02: Authorizing Use of Local Service Roads & Trails Funds to Help Pay for Construction of VIP Street Improvements Project 4. Renewal of Liquor License: Larry's Club 5. Renewal of Liquor License: Eadie's Frontier Club Eadie's Frontier Liquors One Stop Liquors Pizza Paradisos Peninsula Moose Lodge #1942 6. Renewal of Liquor License: The Rig Bar D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Economic Development Commission 4. Harbor Commission 5. Library Commission 6. Recreation'Commission 7. Planning & Zoning Commission 8. Misc. Commissions/Committees I fb I KENAI CITY COUNCIL AGENDA JANUARY 4, 1989 Page 2 E. MINUTES I. *Regular Meeting, December 21, 1988 F. CORRESPONDENCE 1. State Economic Recovery Committee G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Games of Chance & Skill: Kenai Lions Club 4. *Games of Chance & Skill: Kenai Elks Lodge #2425 5. *Games of Chance & Skill: Peninsula Oilers Baseball Club I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk S. Finance Director 6. Public Works Director 7. Airport Manager J. DISCUSSION 1. Citizens 2. Council K. ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING JANUARY 40 1989 - 7:00 P.M. COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS PRESIDING A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call Present: Mayor Williams, McComsey, Measles, O'Reilly, Smalley, Swarner Absent: Monfor 3„_AQenda Approval MOTION: Councilwoman O'Reilly moved approval of the agenda with items C-4 & C-5 moved to Consent Agenda, seconded by Councilman Measles VOTE: Motion passed by Unanimous Consent MOTION: Councilwoman O'Reilly moved approval of the Consent Agenda as amended, seconded by Councilman McComsey a. Executive Session Convened at 7:08 P.M. MOTION: Councilman Smalley moved to convene in an executive session of the Council of the City of Kenai, concerning matters the immediate knowledge of which would clearly have an adverse effect upon the finances of the City of Kenai, seconded by Councilwoman O'Reilly VOTE: Motion passed by Unanimous Consent 44-, Consent Aaenda Passed under A-4. B. SCHEDULED PUBLIC COMMENT (10 Minutes) None I KENAI CITY COUNCIL - REGULAR MEETING JANUARY 4, 1989 - 7:00 PM KENAI CITY HALL MAYOR JOHN J. WILLIAMS PRESIDING PARTIAL TRANSLATION A-3a - EXECUTIVE SESSION (After the vote) Councilman Measles reported, Co nci ,gv ewed f.he-, information regarding Inlet Subdivision and W 0040 directed the attorney to meet with their attorney and come back to Council with any new proposals for settling the matter. After the attorney reports back to Council, Council will make a decision as to what their action will be. Janet Ruotsala City Clerk, 0 0 11 KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 2 C. PUBLIC HEARINGS 1. Ordinance 1301-88: increasing Rev/Appns by $1,000 Senior Citizens Borough S ecial Revenue Fund MOTION: Councilman Measles moved for adoption of Ordinance 1301-88, seconded by Councilwoman Swarner VOTE: Mayor Williams called for public comments, there were none. Motion passed unanimously by roll call vote 2. Resolution 89-01: Adopting 1989-90 Capital Improvement Project Priority List MOTION: Councilwoman O'Reilly moved for adoption of Resolution 89-01, seconded by Councilman Measles VOTE: Mayor Williams called for public comments. John Wise spoke, addressing items such as tourism, bicentennial, health and safety. It would appear you aren't going to do anything unless it is state funded. Mayor Williams responded by stating that the City had set aside $90,000 for the bicentennial who will be available for a work session at the January 18th meet-Ing. John Wise asked what the City plans are if the state does not fund. Mayor Williams and Councilman Measles answered that no decision can be made at the present time. Mr. Wise felt that over the years projects were not done unless they were funded by the state. Mayor Williams responded by stating that by using state funding it save the local community money. The City does plan on spending $5.5 million. Mr. Wise asked on what. Mayor Williams responded by naming several projects including the airport terminal renovation. Mr. Wise stated that he felt they were maintenance items and that Soldotna is doing their projects out of their own pocket rather than the way the City of Kenai is funding which is out of state funds. Mayor Williams stated that we should be commended for doing that as we still have the lowest mill rate. Mr. Wise stated that the City of Kenai has over $20 million in the kank and it is not being used for health and welfare projects. Motion passed by Unanimous Consent KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 3 3. Resolution 89-02: Authorizing Use of Local Service Roads & Trails Funds to Help Pay for Construction of VIP Street Improvements Project MOTION: Councilman Measles moved for adoption of Resolution 89-020 seconded By Councilman McComsey Mayor Williams called for public comments, there were none. VOTE: Motion passed by unanimous consent *4. Renewal of Liquor License: Larry's _Club Consent Agenda Item *5. Renewal of Liquor License: Eadie's Frontier Club Eadie's Frontier Liquors One Stop Liquors Pizza Paradisos Peninsula Moose Lodge #1942 Consent Agenda Item :.Y. 6. Renewal of Liquor License: The Rig Bar Council agreed to review this application at the next meeting. D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging Councilwoman Swarner reported that the next meeting will be Monday at 1:00 P.M. 2�Airuort Commission Councilwoman O'Reilly reported that the Commission will meet next Thursday. There is still one vacancy 3. Economic Development Commission Mayor Williams reported that the next meeting will be January 19th. Chris Gates & Harry Gieseler of Seward have been invited to meet with the Commission on Marketing. Mayor Williams informed the Council that two new members are needed for the Commission and read a list of interested persons. He will be confirming new members at a later date. 4. Harbor Com_mi_ ssion Mayor Williams asked the status of the grant, PW Director Kornelis KENAI CITY COUNCI& JANUARY 4, 1989 PAGE 4 responded that the grant was finished and in Seattle and would be continuing on to Washington D.C. 5. Library Commission Librarian DeForest reported on a film study just completed. Mayor Williams commended the library on.the reception held recently. 6. -Recreation Commission No report 7. -.,Plannigl & Zoning Comomission Commission Smalley reported that the Commission will be holding further work sessions on the RV and guide service ordinance the second meeting in January. 8. Misc. CommissionsiCommittees None E. MINUTES 1. *Regular Meeting, December 21, 1988 The minutes were approved with corrections. F. CORRESPONDENCE 1. State Economic Recovery Committee G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified r MOTION: Councilman Measles moved for approval, seconded by Councilwoman O'Reilly. VOTE: Motion passed by Unanimous Consent 2. Regisi.tions §xceedino $1.000 MOTION: Councilman Macomsey moved for approval, seconded by Councilwoman Swarner VOTE:. Motion passed by Unanimous Consent Y 0 i KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 5 3. *Games of Chance & Skill: Kenai Lions Club Consent Agenda Item 4. *Games ,of Chance & Skill: Kenai Elks Lodge #2425 Consent Agenda Item Consent Agenda Item x. ADMINISTRATION REPORTS 1. Mayor a. Mayor Williams reported that there will be a full page ad in the Northwest Strategies publication as approved at the last meeting. PW Director Kornelis stated that he had sent the material to Anchorage and more information will be coming in soon regarding costs. b. We have not yet held the annual meeting with Council and commissions and committees. Terms expire January 1, 1989 and with permission of Council I would li I to ratify uthe terms of the members until that meeting whichwill set MOTION: Councilman Smalley moved to ratifycommission or committee,seconded f members currently serving on by Councilman Measles. VOTE: Motion passed by Unanimous Consent c. Reminder that there willbe work session meetingoni/18/89 with Visitors and Convention Bureau before regular d. The Koreans have postponed their visit to the area. Before they will allow their corporMatornWilliams will report back asto come they will send a �oon who will spend six weeks. Y as he has more information. e. A letter and schedule is presented for your information regarding the Ala¢ka Conference of Mayors. f. There will be a meeting wit8Ashley will be in Juneau9onoreview 2/2/89W strategy. Councilwoman Swarner 2. City Manager a. City Manager Brighton discussed the letter from Mayor Dolly Farnsworth which was in the packet regarding pursuingbike itpath. and asked City of Soldotna is extremely interested in if the City of Kenai had put it on their priority list. KENAI CITY COUNCIL JANUARY 4, 1989. PAGE 6 b. The attorney has been working on an RFP for the Dairy Queen. For several reasons the process has become very cumbersome. City Manager Brighton referred the Council to section 21.10.120 regarding bidding procedures. City Attorney Rogers:' The procedure would open it to lease property and should broaden the appeal as a commercial establishment. City Manager Brighton: Should you not accept going with this procedure we had hoped to ask you not to restrict it to a fast food place in order to provide a bigger, better, more open market for the property. Mayor Williams asked if there had been inquiries from other than fast food people? City Manager Brighton answered that there had been an inquiry from the owner of . the postal center who was extremely interested in it and was not upset over the possible lease rate. Mayor Williams stated that the question was more are we interested in doing anything at all with the property of a commercial nature regardless of what the nature of the commercial venture might be, with review. City Attorney Rogers: It will also lessen the stewardship that would otherwise be required by the City. If it is a restaurant we have got to look at specific things. This would make it much more akin to our other leases. Councilwoman O'Reilly: I think the broader aspect would appeal and have a better chance. City Attorney Rogers: I think we from the administration standpoint are recommending to go with this. Councilman McComsey agreed with the bidding procedure. Mayor Williams asked for the appraised.value on the land, Administrative Assistant Howard answered that the monthly rental rate was $1500 per month. Councilwoman Swarner asked if a current appraisal were necessary. City Manager Brighton answered yes. Mayor Williams stated that that makes the value of the property almost half of what the City has in it. The appraised value was $3000000 then we bailed out $225,000 worth of mortgages making a total of $525,000. Councilwoman Swarner asked how City Attorney Rogers detailed t advertising could start as soon oon this could be advertised. e procedures and felt that the as the latter part of next week. MOTION: Councilman McComsey moved to move ahead with the lease situation, seconded by Councilman Measles 1 KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 7 VOTE: a Motion passed by Unanimous Consent c. Mayor Williams noted the second notice for dues from the Kenai Caucus and asked if Council wanted to move ahead and,direct administration to pay the dues of $1309. City Manager Brighton noted another letter regarding this matter from Assemblywoman Glick. Councilwoman Swarner: At the last meeting we voted not to pay the dues. City Manager Brighton: You voted to table it. City Manager Brighton: If no further action is taken yes,. that's what you would be doing. Councilman Smalley asked what the City benefits from it. Mayor Williams answered that it is another lobbying effort. The congregate housing is our main thrust before the Caucus at this time. I spent an evening with our legislators and the Central Labor Council. When this question came up I discussed it with both bodies. The Central Labor Council appears to back the program. Councilman McComsey stated that at the last meeting there was no quorum, however, there was stiff opposition. I would suggest the dues question tabled until the Caucus meeting. Council agreed. d. Mayor Williams asked what the next step would be for the bike trail. City Manager Brighton answered, a resolution in support, then someone from administration call DOT, Murph O'Brien and indicate the city's strong desire to have this as part of the project. Mayor Williams stated that many members of the community have indicated an interest in getting involved. I have suggested perhaps a committee with Marion Nelson heading the Kenai end and a lady from Soldotna who has also expressed an interest, be involved from the Soldotna end. I informed them that I would bring it to Council. Councilwoman O'Reilly agreed that the bike trail is a wonderful idea, but in light of the fiscal situation statewide this particular item is poor timing. Mayor Williams pointed out that it would be in four years. City Manager Brighton felt that technically, we are putting in $150,000 in engineering and design at this point of the project so that it runs in tandem with the highway. Councilman McComsey asked if it would be taken from other monies. I like the bike trail but not at the expense of paving and water & sewer. Mayor Williams: I might point out that the money won't be appropriated until the year of construction. Councilman McComsey: I like the committee idea. Councilman . Measles: .$1.5 million for a strip of asphalt 7 miles' by 3' wide beginning at.Swires. They already plan a bike path from downtown Kenai down to Swires and from Soldotna to S ort Lake Road. This $1.5 million that they're talking about is awfully expensive. 3. Attorney a. City Attorney Rogers reported that the City will be filing suit tomorrow relevant to the airport -bar and cafe. KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 8 4. City Clerk None S. Finance Director None 6. Public Works Director None 7. Airport Manaaer Airport Manager Ernst reported that following discussions with Vic Tyler, he is ordering a hot beverage machine for the terminal which would include soup and coffee. The only functional problem will be getting water to it. The machines will be where the candy machines are now and the water line will have to get to that wall. It will probably be run through the ceiling so as not to damage the wall. After construction, they will be moved to the arcade area. J. DISCUSSION 1. Citizens None 2. Council a. Councilwoman Swarner: I would like administration to proceed with the road improvements in Inlet V4aw.since I don't believe t,,j 10)a that road is being paved and it was supposed to be paved by December 31st. i b. Councilwoman Swarner: I would like to see an ordinance come before us to eliminate the situation that occurred where the contractor gave us two lots as collateral. Such. as the contractor would have to pave the streets before they starved selling or building to the general public. PW Director Kornelis: What you're asking is a code change? Right now our code'allows them to do that. Councilwoman Swarner: Then yes a code chango. PW Director Kornelis: You would not allow them.to put up collateral in the form of escrow or bonds to guarantee the improvements are in. That's going to make it hard. The problem that we had.with that subdivision is that the alue of those lots was down so much that the cost was too high. j Councilwoman Swarner: I don't think the City needs to Win the real estate business, having to sell lots to pay for paving. PW Director Kornelis: So you want to amend the code to dliminate the use of lots to ensure the paving. i 4f KENAI CITY JANUARY 4, PAGE 9 COUNCIL 1989 Mayor Williams: I'm not sure that's a workable situation we have 139 lots already. Councilwoman Swarner: What would you recommend. PW Director Kornelis: This is different than an LID. Mayor Williams: If we get into any kind of an LID district you've got to tie the assessment to the lot. PW Director Kornelis explained the current situation and why the developer uses the lots. A developer cannot file his plat until he has agreed with the City and the City submits a letter to the Borough stating that the City guarantees that the improvements are going to be In. City Attorney Rogers: There is a great deal of flexibility built into it now. We can tighten it up, we can require a multiple such as lots equivalent to five times the value of the improvement instead of two times. The problem is if you do away with the flexibility of taking lots as security for completion of the improvements you are then requiring him to go out and borrow additional funds to escrow. It is a wet blanket on development and I think, even in this economic climate where property values are down it will probably not fall by half again. We can protect ourselves withiut placing an additional burden on someone in this climate. This has been especially beneficial to some small developers with 2.5 to 5 acres. But for the aberration in the economy it has worked well. Perhaps we should have taken more lots as collateral but we're taking twice the lot value. Councilwoman Swarner: As a compromise I would agree to the lots, but I want to eliminate the situation that happened where we didn't have enough collateral to pay for it. City Attorney Rogers: It was never our intention to take the lots, it happened. But what I think you will find is if there is another one of those situations, we'll be bringing it in front of Council for approval of the collateral and the multiplier and the Council may be saying we want five times or perhaps that this is too big a risk. I think you need to think about keeping the flexibility that you do have over the long range. Mayor Williams asked about the value of the lots and if it was time to move to take those lots. PW Director Kornelis answered that the public works department will move ahead per the agreement, however, he will need more information and will return and report at the next meeting. c. Councilman McComsey asked about the cold storage project. Mayor Williams answered that he has been in discussion with Stan Stedman and the only thing he could tell me was that they were "mulling it around." Councilman McComsey stated that he remembered discussion concerning a talk with Gary Irwin about perhaps having a spot at the airport as well as the harbor location. PW Director Kornelis answered that he is interestod, however more information is needed before bringing to Council. d. Councilman Smalley reported that he had a visit of City facilities and was very impressed. 9. i KENAI CITY COUNCIL JANUARY 4, 1989 PAGE 10 e. Councilman Smalley reminded the Council that at the last. meeting he had brought up a proposal that might be coming before the Council in January to look into a separate apportionment of money to upgrade the Kenai schools equipment -wise. Before that takes place the Council will be receiving phone calls from school teachers to contact school board members since the Kenai schools are community schools. i .8 f. Mayor Williams asked for permission of Council to dissolve the Roads Task Force. Councilman Measles stated that the Task Force was for a single purpose and that purpose is gone so it should sunset automatically. Mayor Williams agreed and stated he would officially sunset it. g. Mayor Williams asked if Council wanted to set up a work session relative to the cab companies. Seeing no support we will not move forward. h. Mayor Williams asked if Council wanted to set up a work session with Dr. Hansen relative to the EMT program. City Manager Brighton asked to restate Dr. Hansen's request which was to appear at a work session Council might set regarding the budget. K. ADJOURNMENT There being no further business, the Council adjourned the meeting at 9:20 P.M. R Janet A. Loper Deputy City Clerk