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Home My WebLink About1988-03-16 Council MinutesAGENDA KENAI CITY COUNCIL - REGULAR MEETING MARCH 16, 1988 - 7:00 PM PLEDGE OF ALLEGIANCE „ A. ROLL CALL 1. Agenda approval 2. Consent Agenda *All items listed with an asterisk t*) are considered to be routine and non -controversial by x the Council and will be approved by one -motion. -- - --------- - There will be no separate discussion of these items unless a Council member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General orders. B. PERSONS PRESENT SCHEDULED TO BE HEARD (10 Min.) Clarence Ladd - Senior Center - Keeping Work Shop Open C. PUBLIC HEARINGS - 1. Resolution 88-10 - Transfer of Funds - Economic Development Commission - Commercial Fish Study by D. Coughenower - $5,000 2. Resolution 88-16 - Transfer of Funds - Legislative Misc. & Travel, Clerk Professional Services - $17,000 3. Restaurant Designation, Liquor Permit Merit Inn 4. Renewal of Liquor License The Rig ear 5. Renewal of Liquor License - Runway Lounge Little Ski Mo Drive inn D. COMMISSION/COMMITTEE REPORTS _ 1. Planning & Zoning J "" 2. Harbor Commission 3. Recreation Commission 4. Library Commission 5. Council on Aging 6. Airport Commission,- 7. Economic Development Commission - -- - -- --- ---8-.--- .Kenai Bicentennial -Commission ----------_ __.- -. -_ _-- .-- ---------------------- — 9. Misc. Comm/Comm E. MINUTES 1 F. a, H. I. J. s i 1. *Regular Meeting, March 2, 1988 CORRESPONDENCE 1. *Consulate -General of Japan - Departure of Tckuji Ikeda OLD BUSINESS NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1252-88 - Increasing Rev/Appns - Recreation Center - Donation from Kalifornsky Christian Center - $1,000 4. *dames of Chance & Skill Pioneers of Alaska Auxiliary #16 5. Discussion - Budget for Memorial Park - Dedication Ceremonies - $767 6. Discussion - Ambulance Service Survey 7. Discussion - Alaska Fisheries Business Tax Credit ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager PERSONS PRESENT NOT SCHEDULED TO BE BEARD (5 Min.) ADJOURNMENT .L i all '+ KENAI CITY COUNCIL - REGULAR MEETING - MINUTES MARCH 16, 1908 - 7:00 PM KENAI CITY HALL • VICE MAYOR RAY MEASLES PRESIDING: PLEDGE OF ALLEGIANCE A. ROLL CALL - Presents Chris Monfor, Marj O'Reilly, Linda Swarner, „. Tom Ackerly, Art MaComsey, Ray Measles _ Absents John Williams (excused) - A-1 Agenda Approval a. Vice Mayor Measles asked that item B-2 be added w, (C. Gintoli, Architect - Congregate Housing) b. Vice Mayor Measles asked that item C-1 be deleted till Mr. Coughenower has recovered from his ,. illness. c. Vice Mayor Measles asked that item C-2 be changed - -`" -- to C-1 and Res. 88-17 (Acceptance of State Grant, Road Reconstruction/Repair - $700,000) be added as item C-2. d. Vice Mayor Measles asked that items C-4 and C-5 - ':.;: (Renewal of Liquor Licenses) be postponed to the April 6 meeting. - e. Vice Mayor. Measles asked that the report on the - -- Harbor Industrial Park Cold Storage Facility, "�'.. distributed this date, be discussed under item --•-- - - D-7, Economic Development Commission Report. '. f. Vice Mayor Measles asked that the PO distributed this date (D&L Construction, Snow Removal, $3,645) be added to item H-2 (Requisitions Exceeding g. Vice Mayor Measles asked that item C-3 (Liquor Permit, Merit Inn) be added to the Consent Agenda, as the Borough reported all tax payments are current. Council approved the agenda as amended by unanimous consent. ' A-2 Consent Agenda - ;- Council approved the Consent Agenda as amended by ' unanimous consent. +.: B. PERSONS PRESENT SCHEDULED TO BE HEARD ... --i B-i Clarence Ladd - Senior Center, Keeping Work Shop Open Clarence Ladd, Box 1404, Kenai. There is a rumor that the work shop will be closing. 1-1/2 years ago there was a discussion of making it a smoking room. They should talk to the Fire Dept. regarding windows, smoke alarms, etc. This was not on the agenda for the Council on Aging meeting. There are many people that - approved it when it was built, there are more there now. He wants the seniors to have a say in what is done. He suggested a poll. Councilwoman Monfor noted .� Mr. Ladd shows interest in the Center by coming to ' Council, but he is wasting his time. That is why the + Council on Aging was formed. Mr. Ladd explained, there i:;':.-.. , . =.'- : ; .;•- -. is only one man on the Council on Aging. He could not . ' , get the minutes of the last meeting, it was not on the agenda. Clerk Whelan explained, the minutes of that been brought to City Hall yet, they meeting have not fr were taken b the contract secretary. City Manager Y E' i KENAI CITY COUNCIL r, s MARCH 16, 1968 PAGE 2 Brighton asked Mr. Ladd if he had spoken to the Council on Aging. Mr. Ladd replied he had talked to Pres. ' Sylvia Johnson and Program Director Pat Porter. . Brighton asked, if the majority voted to close the work /i ..:. ...... ;.. ....... shop, what would he do? Mr. Ladd replied they said - there would be a petition for one week, that is not enough. Some of the seniors are on vacation. He ,J... . ......:.. ::..; ,:": -60 days. Mr. Brighton suggested giving them 40 y explained, if the Council on Aging took a measure of that substance they would have to go to Council, they have not. B-2 Carmen Gintoli, Architect - congregate Housing r;;• _° •; Mr. Gintoli said Dennis Murray, Lutheran Homes, was o speak, he has not arrived yet. He requested the item be postponed till Mr. Murray was here. Council :- approved the request. ,. C. PUBLIC HEARINGS - - C-1 Res. 88-16 - Transf. of Funds - Legislative Misa. & Travel, Clerk Professional Services - $17,000 MOTION: °. ,. Councilman A moved, seconded by Councilwoman - "{ � Monfor, to adopt the resolution. There was no public comment. !2..` 21 i= Council asked Clerk Whelan to prepare a breakdown of a travel expenses for the April 6 meeting. Motion passed by unanimous consent. C-2 Res. 88-17 - Accepting State Grant -Road _ Reconstruction/Repair - 8700,000 MOTION: Councilman Ackerly moved, seconded by Councilman -_- - McComsey, to adopt the resolution. - - There was no public comment. ' Motion passed by unanimous consent. C-3... Restaurant - Designation -Liquor Permit -Merit Inn r:z Approved by Consent Agenda. D. COMMISSION/COMMITTEE REPORTS , D-1 Planning & Zoning , Councilwoman Monfor reported on the work session with Council on March 9. Recreation Director McGillivray is , f preparing a report on costs to enlarge the Municipal Park. Regarding Lawton Acres, a previous Council had t made this a green strip area. The Council and P&Z -' recommended keeping it as is. The Municipal Park will have 50 camp sites, improvements in the water & in », ' toilets. We will have seven motor home caravans , Kenai next year. _. D-2 Harbor Commission 1. r . _ I ' L� KENAI CITY COUNCIL MUCH 16, 1988 PAGE 3 Chairman Quesnel reported Mr. Coughenower should be back in his office by April I. D-3 Recreation Commission None D-4 Library Commission None D-5 Council on Aging Program Director Porter reviewed the work shop at the Center. They have more people at the Center than they can handle. Congregate meals have increased 17% over last year. The work shop has always been an area they have been concerned about, if it was the right decision. She was asked by the Council on Aging to keep track of the use. There is high powered and expensive equipment there, people take the safety guards off the machines. 4-5 people have used it in the last few months. They have had a visitor recently that uses it every day, he is leaving in 1-1/2 weeks. The Council on Aging suggested the 2nd week in April be used for an election for one week. The reason for April is so it could be in the newsletter. They will not ask the City for funds to change the area. D-6 Airport Commission None D-7 Economic Development Commission Chairman O'Reilly reported on the March it meeting with the Harbor Commission. They reviewed the proposed cold storage facility. The Commission felt it was a viable proposal. There are others that may be faster and more economical. The main points in favor of the proposal are: a) 2 to 3 new jobs b) It shows the City as pro -development c) A $1 Million investment would be a $2.1 Million asset The unfavorable points are: - - -- --a) A_ -limited .number- of - jobs- realized b) No major tax revenue c)_Seafoods from Alaska may lack the needed, financial strength- and expertise - - -- - - - - - - _ _ — -- - - - --- - s� Councilwoman Monfor asked, if it is such a great deal why hasn't it been done before? Why should the government do it instead of private enterprise? We were going to get a list of assets and liabilities before we committed $1 Million. How much will we put into water & sewer to do this? What will this do to the mill rate if it takes 10 years? Can we explain this to the taxpayers if it increases the mill rate? Chairman O'Reilly replied, they asked EDA about similar facilities that have been built in western Alaska and Southeast Alaska. He cannot find any experience that a bonded cold storage plant, funded by EDA, has changed the fishing productivity and growth. { Joe Nord, Allied Processing. He would like to have a cold storage but it is a big expense. $1 Million will : KENAI CITY -COUNCIL - — MARCH 16o 1988 PAGE 4 I �- just open the door. There is not much space to work with. The City will have to buy the 30 acres. The land is valued at $190,000, the owner is asking $6000000. That will increase his value. if there is storage for a large amount of fish, the van companies may not want to bring up their vans. The fish will fill up the plants. He wondered if it would generate that much money and if there are that many packers that can keep their fish. Councilwoman Monfor said the forecast for this year is that it will be exceptional and the next 3 will be dreary. We should be able to utilize it year round. Councilman.Ackerly_noted-some-things have to happen before this will proceed. There are too many negatives. Councilwoman Swarner asked if the fish cooperatives could have bonded warehouses. City Manager Brighton suggested Administration proceed till EDA does not come up with $1 Million, or we cannot buy the land, or the users refuse to sign a hold harmless contract. Prior to submittal we have to prove ownership of the land. Councilwoman Monfor asked about a permit for fill. Mr. Brighton replied, that does not relate. 6 of the 30 acres are wetlands. Councilwoman O'Reilly asked if the proposer is aware of this. Mr. Brighton replied yes, in the absence of Council and EDC action, the City has been pursuing engineering and filling out the application. EDC said if we acquire the 30 acres, other businesses could spring up • dry dock, boat repair, etc. Vice Mayor Measles said at the work session EDA said if they put up $1 Million with City match, the rental rates could not be designated to cover their costs. To be approved by EDA it would have to be fair rent rates based on a similar situation. How would you cover that? Chairman O'Reilly replied, EDC figures 2 cents per lb. going in, 2 cents per lb. during, and 2 cents per lb. coming out. EDA was concerned the municipalities would put up the money, get matching funds and have rental that would return the investment in 2-3 years. The Citv is entitled over a period of time to recover their investment. Also, rental revenue would have to stay in the harbor industrial park area. Mr. Brighton noted, if we had an industrial park, any additional revenue could be used for additional development of the industrial park. Vice Mayor Measles said the letter from Seafoods from Alaska (Info 10) indicates this may just be the starting point. They want $300,000 for the building. MOTION: Councilwoman Monfor moved; seconded ay Councilman - -- McComsey, that Council accept EDC recommendation to move ahead and at this time pursue the plan given to us for a cold storage facility. Motion passed by unanimous consent. D-8 Kenai Bicentennial Commission Councilwoman Monfor reported there will be a meeting March 21. The Goals & objectives will be submitted to Council in April. D-9 Misc. Comm/Comm a. Memorial Park Committee. Councilwoman Monfor asked if the City had done anything about ordering cards to send to families telling them a memorial 1, 1 ,1 k KENAI CITY COUNCIL MARCH 16, 1988 PAGE 5 had been established. Council agreed to discuss this under item H-5. B-a (Conte) Carmen Gintoli introduced Dennis Murray, Lutheran Hospice and Homes, to discuss congregate housing. Mr. Murray distributed and reviewed a report on the 5 financial models for the project. Councilman Ackerly asked, when we submit a proposal, is this in concrete? Mr. Murray replied no, this is to show what you can anticipate. The State would require a management plan. After that, the State participation is out. That is the advantage of a State grant. He felt the 2 centers should work together because the services are linked. None of the models -assume depreciation expense, it is not a business enterprise. But Council should be concerned with replacement costs. The State does not provide for this. Councilwoman Monfor asked if all the proposals are for the City to run it. Mr. Murray replied the first 2 are, N3 is contract. N3 is a higher cost. Councilwoman O'Rettly asked about food arrangements in the first and second model. Mr. Murray replied congregate housing assumes one meal a day by HOD definition. The citizens will utilize the center 115 days, the balance is considered holidays and week ends. He explained, N4 is non-profit, it has merit. By establishing a new structure you will not use the strong cooperationyou have with the senior center now. #5 is a suggested design to meet residency requirements for 12 with resident care. Mr. Gintoli said they felt we should do 38, it costs the same as 28. He added, they have begun the schematic designs. it would be a 44,000 sq. ft. center. They had a meeting this date. Lutheran Homes suggested eight 2-bedroom units, the group said no. The group asked that the room size be reduced. The building will face south, 1/2 will overlook the City. He suggested communal space facing south for all residents to use. The spaces could be for a library, music room, meeting room, etc. If we build 38 units, move the Forget -Me -Not group (3,000 sq. ft.), contingency & architect fees, the total cost would be $7 Million. 18 units_ would be $3-1/2 Million, 28 units would be $4-1/2 Million. There would be a dining room addition at the present center. He had shown balconies, but the group felt they were excessive and not good for security. Also, people could lock themselves out or fall over. Program Director Porter said the frail and handicapped would be on the first - floor. Mr. Gintoli- -said --the - plans will -be- ready- next -- week to go to Juneau. They thought it should not be - -- - ---- -too -f-ancr,--it- would -have--a- better -_chance fox _funding. - Councilman Ackerly said when they compare $7 Million to what they pay now in pioneer homes, it is good. City Manager Brighton asked if $7 Million is a refined figure. Mr. Gintoli replied, it is a schematic design figure for $125 per sq. ft. Mr. Brighton noted this is $185,000 per unit. Mr. ointoli replied, this is with Davis/Bacon requirements. Mr. Brighton noted this is excluding land costs. Mr. Gintoli said water & sewer are included, also the addition to the senior center and additional day care. They will need a variance from P&Z for parking. E. MINUTES E-1 Regular Meeting, March 2, 1988 Approved by Consent Agenda. KENAI CITY COUNCIL MARCH 16, 1988 PAGE 6 F. CORRESPONDENCE F-1 Consulate -General of Japan - Departure of Tokuji Ikeda Approved by Consent Agenda. G. OLD BUSINESS None H. NEW BUSINESS H-1 Bills to be Paid, Bills to be Ratified MOTION: Councilman Ackerly moved, seconded by Councilman McComsey, to approve the bills as submitted. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 MOTION: Councilman Ackerly moved, seconded by Councilman McComsey, to approve the requisitions with the addition of $3,645 to D&L for snow removal. Motion passed by unanimous consent. H-3 Ord. 1252-88 - Increas. Rev/Appns - Recreation Center - Donation from Kalifornsky Christian Center - $1,000 H-4 Games of Chance & Skill - Pioneers of Alaska Auxiliary $16 Approved by Consent Agenda. H-5 Disc. - Budget for Memorial Park - Dedication Ceremonies - $76i City Manager Brighton asked if they were adding $300 for certificates. Councilwoman O'Reilly asked, if - - --- there was more than one donation, could there be a generic form for all. Mr. Brighton said he had a sample certificate he gave to the Mayor for review. Recreation Director McGillivray explained, the certificates are to go to people who had a memorial in -. the. park* -The Beautification Committee put together the type they wanted. The cost would be -about $300-,'the---- high was $600, the low was $150. Councilwoman O'Reilly suggested; when someone -passes away, - it -would- be- an --- - -- - - - -„ -- - ----- - - —=- acknowledgement that the families would get. It would notify the family of a donation in the deceased name. Councilwoman Swarner noted the library has a form they use for books donated in the name of a deceased person. Librarian DeForest added, one copy goes to the family, one to the donor. Councilman Ackerly suggested an ad in the papers and invitations be sent for the - dedication ceremony. Also, we need to get the plaques and trees for the the memorials for the plane crash victims. City Manager Brighton replied, there is a committee for this. Recreation Director McGillivray said they have ordered about 24 plaques, they are not doing the tree planting. People will go to landscape businesses and get the trees. Mr. Brighton said we will have to allocate funds for the plaques and trees. Recreation Director McGillivray -said it will -be about $300 to $325 a piece for the plaque, trees, be KENAI CITY COUNCIL MARCH 16, 1988 PAGE 7 and lettering. Councilwoman Monfor asked if a plaque was planned for Leif Hansen. Clerk Whelan replied there is nothing in the Committee or Council minutes referring to that. Vine Mayor Measles noted the dedication is separate from the plane crash memorials and the certificates. Councilwoman Monfor asked that money be allocated for the certificates, 2 plaques and 2 trees at the April 6 meeting'. MOTION t Councilwoman Monfor-moved, seconded by Councilman McComsey, to approve $767 for the dedication ceremony. Motion passed by unanimous consent. H-6 Disc. - Ambulance Service Survey City Manager Brighton explained, this could be discussed at a work session. He noted the budget will be at the April 6 meeting. Councilwoman Monfor asked, how many runs do we have in one year? Fire Chief lvanoff replied, about 400. Council agreed to schedule this for a work session. H-7 Disc. - Alaska Fisheries Business Tax Credit City Manager Brighton explained, this is the same as we received from Salamatof Seafoods and Columbia Ward. In the first 2, Council agreed that if they participate in the program, it would be 12% of the fish tax. They can make the same request of the State, the other 2 have. The date the fish tax is amended, if we get 50%, we will participate with the fish processors. They can apply for 50% of the State tax. He suggested indicating to them that till the law is amended so the City can get 50%, the City will not participate. MOTION: Councilman Ackerly moved, seconded by Councilman McComsey, to ask Administration to relay by letter to Dragnet Fisheries, of the city's past position and the reasons. Mr. Brighton explained, if the City gets $200,000 fish tax, the State got $400,000, the Borough got $400,000. They are dipping into the State's $400,000. it is not coming from the City share. Motion passed by unanimous consent. ADDED ITEM: EXECUTIVE SESSION: MOTION: Councilman McComsey moved, seconded by Councilwoman O'Reilly, that pursuant to AS 44.62.310b and KMC 1.15.030, they adjourn to executive session to discuss matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the City. Councilman Ackerly requested abstaining from the vote, as he was the party being discussed. VOTE: 71 I n a KENAI CITY COUNCIL { MARCH 16, 1988 PAGE 8 Yes: Monfor, O'Reilly, Swarner, McComsey, Measles Not None Abstain: Ackerly ! Vice Mayor Measles stated Atty. Dolifka would be attending and asked Atty. Dolifka to state who he would request to attend. Atty. Dolifka replied, Council, City Manager Brighton and Atty. Rogers. COUNCIL ADJOURNED TO EXECUTIVE SESSION: 9:15 PM. COUNCILMAN ACKERLY LEFT THE CHAMBERS: 9:20 PM. - COUNCIL RECONVENED THE MEETING;: 9:55 PM. -- --- ------=-----`=-.= MOTION: Councilwoman Monfor moved, seconded by Councilman McComsey, that, based on information provided and advice given by retained attorney, Dale Dolifka in executive session which information and advice included, but was not limited to: 1. Sworn financial data of debtors 2. Comparison of remedies As Judicial foreclosure b. Non judicial foreclosure c. Suit on debt It is moved that retained attorney Dale Dolifka proceed with a non judicial foreclosure as to the Dairy Queen realty. VOTE: Yes: Monfor, O'Reilly, Swarner, McComsey, Measles No: None I. ADMINISTRATION REPORTS I-1 City Manager -a City Manager Brighton spoke. - -" a. The $700,000 road money received this date (Res. 88-17) must be used by Oct. 30. b. There was a teleconference this date with some Alaska mayors and city managers. They discussed an -agreement regarding -an- plan --of. approach for-___- -- . _.. _ bringing State money back to municipalities. They want _unicipalities_ and _boroughs to agree to a 3-pronged approach. a) The single -most important - - - — -- - ---- -- ---- ---- priority is school -funding. b) Municipal Assistance and Revenue Sharing would be based on 1986. c) Block grant funding to help municipalities. There was almost unanimous consent. The Mat -Su mayor was reluctant till the school funding was signed by the Governor. Mayor Gilman objected, he said not any plan till 100% school funding was adopted. The Fairbanks mayor is in trouble but has no connection with schools. Mat -Su was concerned about schools and did not want to get Municipal Assistance and Revenue Sharing till school funding was made. If they override, nothing else may come down. Anchorage does not have the school bond indebtedness we have. For them to agree was good. Mat -Su and the.:. Kenai Borough were the 2 in trouble with schools. The only way we can accomplish anything is for all KENAI CITY COUNCIL - - - - - -- MARCH 16, 1988 `,t� PAGE 9 to go together with this. The legislative votes are there. If $1 is vetoed, all are to work 1 w together for $2. Full school funding will be to u -"' the disadvantage of municipalities that do not t have problems, debts or responsibilities. It is - the nearest he has ever seen this whole group come to an agreement. They are requesting the Legislature adopt by resolution. He will bring a resolution to the April 6 meeting. The #1 priority is on the Governor's desk, he has 7-8 days to veto. They will make an effort to override if he vetoes. If he vetoes and they override, any other funding is in some jeopardy. Municipal Assistance and Revenue Sharing at 1986 - -__- -- level would increase us at 22% or 1-1/2 mill. - -- ---------------' ----.- .-- a. Mayor Williams called this date from Juneau. He - - will meet with Comm. Malone (Dept. of Revenue regarding industrial park funds from the State. He will meet with the Governor March 17. d. The Finance Director and the Public Works Director ..; e. are both ill. Councilman McComsey asked about the Railbelt - money. Mr. Brighton replied, interest from the - _ Railbelt Energy fund to be distributed in the railbelt area is in the Governor's operating budget, but the Legislature has not appropriated ' »:y it to his budget. He has the intent to use it for general fund operations. b. (contd) Councilwoman O'Reilly noted HB-330 is on the Governor's desk - does he have line item control? Mr, Brighton replied, that is full " school funding, foundation formula, 80$ of the bonds funded. Councilwoman O'Reilly asked, if he - cuts this to 70%, what happens to the coalition? Mr. Brighton replied, he thought they will have ;:.. made their best effort on the first choice. They will try to get the second choice. The Legislature can override if he lines it out. r' Fairbanks will have to lay off 180 municipal people. Anchorage has their schools paid for. We have a bonded indebtedness. Municipal Assistance "1 and Revenue Sharing are more important to other areas, school funding is important to Kenai and Mat -Su boroughs. 1-2 Attorney Atty. Rogers spoke. He --referred- to item -Info--#-13 (Taking -of ..Property),.- Info #14 & #16 (Request for Payment), Info $15 —.--=-==---�.------------- --- F ll (Intent -to i le C vi-ActiOnL,-- - -- --- -- - ---- -- --- - ---------------------- b. A reply brief was received from APUC. a. She referred to her memo in the packet (item I-4) regarding elections. The Council chambers will be used for State-wide absentee elections for 2 weeks before the Primary and General elections. She f' will be doing registrar training for the }` - Kenai/Nikiski area. KENAI CITY -COUNCIL MARCH 16, 1988 PAGE 10 1-5 Finance Director None t-6 Public Works Director None 1-7 Airport Manager None J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a* councilman McCOMSeY. The Softball -League spent $60 for insurance liability while the ASA was playing here. AD.7oURNMENT: Meeting adjourned at 1Osl5 PM. Janet Whelan City Clerk P. U'lled, ffnaova) V1 Cr,