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HomeMy WebLinkAbout1975-12-17 Council Minutes0 AGENDA REGULAR MP.RTINO - KRNAI CITY COUNCIL DECEMBER 17, 1075 - 8100 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINOS 1. Transfer of Beverage Dispensary License - The Pardo 2. Transfer of Beverage Dispensary License a Change of Name - Sheffield House S. C. PERSONS PRESENT SCHEDULED TO BE HPARD 1. Mr. George Navarre - Merchants Association 2. Mr. Waldo Coyle - Oonerai 4..tNUMr. Bud Lotstedt - Float Plane Basin D • 1-. Flinules of the Re gular Meeting of December 8, 1876 E. CORRESPONDENCE 1. S. F. OLD BUSINESS 1. Council Selection of now Council member 2. Taylor Realty - Revised proposal to purchase City Parcel N177 S. Council approval - appointments to Mayor's Council on Aging 4. 6. 6. 7. a. 0. NEW BUSINESS 1. Bills to be paid - bills to be ratified . Ordinance No. 286-75 - Amending the General Fund Ordinance S. Ordinance No. 200-75 - Amending the Debt Service Fund 4. FAA Planning Grant 6. Appointment of Planning a Zoning Commission member G. Payment to contractor - Kenai Library Project S. Resolution No. 76-04 - Agreement with Rainier National Bank p, Resolution No. 76-86 - Borough Foreclosure Parcels lo. Fire Department Mutual Aid Agreement - Kensi/North Kenai/Soldotna U. 12. St. REPORTS 1. City Manager's Report 2. City Attorney's Report S. Mayor's Report 4. City Clork's Report 6. Finance Director's Report S. Planning a Zoning Commission's Report 7. Kenai Poninsula Borough Assembly's Report 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD 1. a. J v , 1 1 KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 17, 1976 - 8: 00 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A . ROLL CALL Present: Tom Ackerly, Al Hudson, Dick Morgan, Edward Ambarian and James Elson Absent: Walter Sweet AGENDA APPROVAL Mayor Elson advised that the following items had been submitted for addition or deletion for Council approval. Add: C-2; Mr. Waldo Coyle - General C-3: Deleted C-4: Mr. Bud Lofstedt - Float Plane Basin G-0: Resolution No. 75-65 - Borough Foreclosure Parcels -10: Fire Department Mutual Aid Agreement Delete., G-7: Resolution No. 75-63 - CETA Program The above additions and/or deletions were unanimously approved by the Council. B. PUBLIC HEARINGS B-1: Transfer of Beverage Dispensary kLoqoe The Pardo Mr. Lynn advised the Council that after contact with the Borough, it was found that odes taxes wore delinquent for the above subject matter and recommended that Council request the Alcoholic Beverage Control Board to place a hold on the transfer of this license until such time they are notified that all taxes are paid in full. At this time, Mayor Elson opened the meeting for a public hearing on the above. Mr. C. R. Baldwin, attorney for the above, requested that Council recommend approval of the transfer of license contingent upon final payment of delinquent taxes. As there was no further public comment, Mayor Elson returned the matter to the Council table. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, that Council approve the transfer of a beverage dispensary license for The Pardo, subject to payment of the delinquent taxes. J KENAI CITY COUNCIL„ REGULAR MEETING, DE'CEMPER 17, 1075 PAGE 2 (11-1 - continued) Motion passed unanimously by roll call vote. 11-2: Transfer of Beverage Dispensary License and Change of Name - Sheffield House Mr. Lynn recommended to the Council that as the Rorough has advised that the above is delinquent in payment of real property taxes that Council require the ABC Board place a hold on the transfer of their license. Mayor Elson opened the mooting to the public for their comments there being none, the Mayor brought the meeting back to the Council table. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for approval of the transfer of a beverage dispensary license and change of name for the Sheffield House pending payment of all delinquent taxes due. Motion passed unanimously by roll call vote. C. PERSONS PRESENT SCHEDULED TO BE HEARD C-1: Mr. Goortze Navarre - Merchants Association Mr. Navarro came before Council to pass on the thoughts of the local Merchants Association in regard to the recent action of the City concerning annexation. The greatest concern on the part of the merchants was the talk of the North Kenai residents "boycotting" Kenai merchants because of the proposed action by the City. As the proposed annexation matter caused some "rift" between North Kenai and Kenai it was felt by the Merchants that perhaps the City should take some positive action in the matter -- either state the matter is dropped or state the matter will be taken up again in the future. The people of the North Kenai area have expressed that the City of Kenai cannot offer any services to the,;: that would be beneficial and justify the additional tax burden. Perhaps the City of Kenai would "clear the air" by stating that they have no intention of annexing North Kenai at this time? Also, Mr. Navarre stated that the publicity concerning the deficit position of the City and in that the blame is being put on past Administrations (of which he is a part) Mr. Navarra felt that it should be stated exactly how the error was made. Mr. Navarre felt it unjust that the blame be put on someone without all the facts presented. Mr. Navarro further stressed that he would like to see the Council change their policy regarding work sessions especially in the case of selection of new Council members as he felt, in his opinion, it was not fair to discuss possible candidates In private wherein they would not be able to "defend." themselves against certain criticism from the Council. I i i I � i' KENAI CITY COUNCIL, REGULAR MEETING, DECEMBER 17, 1975 (C-1 - continued) PAGE 3 Mayor moon thanked Mr. Navarre for coming before the Council and stated he felt Mr. Navarre had made some valid comments. C-2: Mr. Waldo Coyle - General Mr. Coyle presented several subject matters wherein he felt the City should make some adjustments in their policy and practice. One in particular was removal of snow berms that have been pushed into private drives in that the City makes no provisions to clear those which causes undue hardship for several individuals who are unable to clear the snow away. Mr. Coyle further stated he felt that the Council was abusing the use of Executive Sessions or private meetings. Matters discussed in these meetings should be made public or should be made open to the public. With regard to the selection of a now Council member, Mr. Coyle stated he felt that this matter should be aired in public.", Mr. Coyle contacted several Kenai citizens to see if they would be willing to serve on the Council and at this time read a list of those individuals polled and their willingness or non -willingness to serve on Council. C-3: Mr. Gene Kempf - Float Plane Basin i Mr. Kempf came before Council regarding the matter of the City closing the Float Plane Basin. He stated that all operators using the facility realize that when used, it is at the operator's own risk -- Mr. Kempf stated he was concerned as to aZoaes (would keys be provided, etc.) Mr. Kempf further stressed that in that this was the closest basin to the City, it would be very inconvenient if operators had to use other facilities. Mr. Kempf also advised that the Alaska Transportation Commission had granted him a license to work out of the Kenai Airport which would pose another problem if the Float Plane Basin were closed. Mr. Kempf was representing several float plane operators and asked if Council would please advise what typo of restrictive nature the City would place on the Kenai Float Plane Basin. Mr. Lynn advised that the City Attorney was concerned about liability to the City -- the letter sent out merely stressed the City's responsibility and it was not the intent of the City to close the facility down. Access to the basin will continue, however, the City will not assume any liability in the event of accidents, etc. Councilman Ambartan inquired if a fee schedule had been established for individuals using this facility and was advised that there was not since the City did not want to assume liability. C-4: Mrs. Sylvia Johnson Mayor Elson advised that the Council would deviate from the agenda in order that the Council could present a certificate of appreciation to Mrs. Sylvia Johnson. Mayor Elson Introduced Mrs. Johnson and thanked her for all her services rendered to the betterment of the Kenai Senior Citizen's program. D . MINUTES 1 D-1: Minutes of the Regular Meeting of December 3, 1975 KENAI CITY COUNCIL, REGULAR MEETING, DECEMBER 17, 1975 PAGE 4 (D-1 - continued) MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for acceptance of the minutes of the Regular Meeting of December 3, 1975, as distributed. Motion passed unanimously by Council E. CORRESPONDENCE None F. OLD BUSINESS F-1: Council Selection of new Council member Mayor Elson opened the meeting for nomination from the Council table for the selection of a new Council member. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, to place in nomination Mr. Roland Raymond. MOTION: Councilman Aekerly moved, seconded by Councilman Morgan, to nominate Thomas Wagoner. Mayor Elson read a memorandum prepared by City Attorney Janis Williams regarding the procedures to be followed in the selection of a Council replacement. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, to close the nominations. Motion passed unanimously by Council. Mayor Elson instructed the Clerk to prepare the ballots and distribute same. FIRST BALLOT Wagoner - 2 Raymond - 3 As Council did not reach four votes required to elect, the Clerk was instructed to distribute ballots again. SECOND BALLOT Wagoner - 3 Raymond - 2 Mayor Elson instructed the Clerk to distribute ballots for a third vote. ' � J r� i - I KENAI CITY COUNCIL, REGULAR MEETING, DECEMBER 17, 1975 PAGE 5 � continued) THIRD BALLOT Wagoner - 3 Raymond -2 The Clerk was again instructed to distribute ballots. FOURTH BALLOT U I. 4 Wagoner - 3 Raymond - 2 MOTION: Councilman Hudson moved , seconded by Councilman Ambarian, to reopen the nominations. Motion passed unanimously. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for the nomination i of Mrs. Betty Glick in addition to the two names already under consideration. - + MOTION: 11 Councilman Hudson moved, seconded by Councilman Ambarian, to close the nominations. Motion passed unanimously. 1 FIFTH BALLOT , , i 4 - Glick 2 ; + 4 Q , Wagoner - 2 Raymond -1 � f The Clerk was instructed to prepare for a sixth ballot. SIXTH BALLOT Glick - 2 Wagoner -1 Raymond - 2 1 MOTION: 1 Councilman Ambarian moved, seconded by Councilman Hudson, to reopen the r- nominations. _t MOTION: i Councilman Morgan moved, seconded by Councilman Ambarian, for the nomination f. of Dr. Jim Hall in addition to the three names under consideration. 1 MOTION: - - ` Councilman Hudson moved, seconded by Councilman Ambarian, to close the nominations. Motion passed unanimously. I i i- ter.. ti KENAI CITY COUNCIL, REGULAR MEETING, UF.Ci MBPR 17, 1975 PAGE 6 (F-1 - continued) SEVENTH BALLOT Glick - 1 Raymond - 2 Hall - 1 Wagoner - 1 Mayor Elson suggested the Council use the declining ballot method - there being no objection, the Clerk was instructed to prepare for the eighth ballot. EIGHTH BALLOT Glick - 1 Wagoner - 2 Raymond - 2 Hall - 0 NINTH BALLOT Glick - 0 Wagoner - 2 Raymond - 3 TENTH BALLOT Wagoner - 3 Raymond - 2 MOTION . Councilman Morgan moved, seconded by Councilman Ackerly, to table the matter of the selection of a new Council member until the next regular meeting - of the city Council. Motion failed by roll call vote. Voting no; Hudson, Ambarian, and Elson. Voting yes; Ackerly and Morgan. Mayor Elson instructed the Clerk to prepare for balloting. ELEVENTH BALLOT Wagoner - 3 Raymond - 2 TWELFTH BALLOT Wagoner - 3 Raymond - 2 Mr. George Navarre requested permission to speak before the Council -- he stated €F - ' that some people perhaps have not been nominated because they were discussed in the Executive Session and could not defend themselves as to the reasons they were not under consideration -- perhaps this could be held in a public meeting. --- Councilman Morgan stated he was voting for Thomas Wagoner because he was the _ next highest vote recipient -- this matter had not been decided in the Executive ' Work Session. Councilman Morgan further stated that those candidates under consideration would all make good Council members. ' f � i k, i;. KENAI CITY COUNCIL, REGULAR MEXTING, AFCFMitt+it 17, 1975 PAGE 7 (F-1 - continued) MOTION: Councilman Aekerly moved, seconded by Councilman Morgan, to table the selection of a new Council member until the first meeting in January, 1976. Motion passed unanimously by roll call vote. F-2: Taylor Realty - Revised proposal to purchase City Parcel #177 Mr. O'Connor, Finance Director, advised the Council that Mr. Murphy of Taylor Realty had revised his proposal and has met the Council requirements for the purchase of the 40 acres of land in Government Lot I (City Parcel 177) . Councilman Hudson asked if the 5 year payment of assessments was in the original advertisement and was advised that in the August 19th advertisement there was a 3 year allowance for payment of the assessments. As it pertained to the matter of the purchase of City Parcel #177, Mayor Rlson read Resolution 75-66, a resolution accepting the proposal of Taylor Realty for the purchase of Government Lot 1, Section 4, TON, R11W, SM, and declaring that the sale is proper. MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for the adoption of Resolution 75-60 with the amendment in the resolution indicating that the purchaser is Dale Murphy not Taylor Realty. Councilman Morgan stated he felt that the original intent of the government lots was that they were to be used for future facilities which would be needed by the City. QUESTION: Motion failed by roll call vote. Voting no; Ackerly, Morgan and Tolson. Voting yes; Hudson and Ambarian Mayor Elson stated that the Administration would like direction concerning the sale of this property . The Mayor further stressed that he was not certain if the proposal was in the best interests to the City and would like to hold the matter and go to bid at another date. Councilman Hudson stated he felt that it was wrong to tie up this particular piece of property awaiting action on other parcels in the area. i I ti I I i .. 0 V KENAI CITY COUNCIL, REGULAR MEETING, DECEMBER 17, 1975 (F 2 - continued) PAGE 8 MOTION: Councilman Ackerly moved, seconded by Councilman Morgan, for reconsideration with a stipulation that a 40 acres block in the same area in question be set aside for recreational purposes. MOTION: Councilman Ambartan moved to amend the motion to state that a 40 acre block as designated by the Planning Commission be set aside for recreational purposes. Motion died for lack of second. Councilman Hudson stated in that the Council has given the Planning Commission the direction to make a study with the setting aside of the 40 acres of land, the Council is directing the Planning Commission with their study and telling them ahead of time what they want. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, to amend the motion from 40 acres to 80 acres to be set aside as approximately one-half of the land to swamp. Motion passed by roil call vote. Voting yes; Ackerly, Hudson and Morgan. Voting no; Ambarian and Elson. MOTION s Motion failed by roll call vote. Voting no; Hudson, Ambarian and Elson. Voting yes; Ackerly and Morgan. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, for reconsideration of Resolution No. 75-66 on the basis of 40 acres being set aside for recreational purposes. Motion for reconsideration passed by roll call vote. Voting yes; Ackerly, Morgan and Elson. Voting no; Hudson and Ambarian. MOTION: Councilman Morgan moved, seconded by Councilman Ackerly, that the Council set aside 40 acres east of Government Lot 1 for recreational purposes. Motion passed by roll call vote. Voting yes; Ackerly, Hudson, Morgan and Elson. Voting no; Ambarian. I � I i f I .r, n . I � 0 =am KENAI CITY COUNCIL, REGULAR MERVING, DECEMBER 17, 1975 PAGE 9 Councilman Ambarian stated he felt that the Planning Commission should review the matter before the exact parcel of land is eat aside. QUESTION - MAIN MOTION Adoption of Resolution No. 76-66 , with 40 acres sot aside for recreational purposes passed unanimously by roll call vote. F-3: Council approval - Council appointments to Mayor's Council on Aging Mayor Elson read the names submitted to the Council for appointment to the Mayor's Council on Aging. Those individuals nominated are: Mr. and Mrs. Roger Meeks, Mr. Wentzel "Bill" Tschoepl, Father Macarius Targonsky, Mrs. Blanche Ryan, Mrs. Jessie Munson, Mrs. Billie Hackney, Mrs. Caroline Kletneick and Mrs. Sylvia Johnson. MOTION: Councilman Ambarian moved, seconded by Councilman Ackerly, for Council concurrence of the list submitted for appointment to the Mayor's Council on Aging. Motion passed unanimously by Council. 0. NEW BUSINESS 0-1: Bills to be paid - bills to be ratified Administration stated that the bills were recommended for payment and ratifification. MOTION: Councilman Ambarian moved, seconded by Councilman Morgan, for approval of the bills to be paid and to be ratified as presented December 17, 1975. Councilman Morgan inquired if the Xerox billing was in line with the budget. Mr. Lynn advised that it was and that the City had taken steps to reduce the costs incurred for use of the Xerox machine. Councilman Hudson asked Administration what budget the Tryck, Nyman a Hayes billing would be charged? Mr. Lynn advised that it would come out of Administration/ Travel. QUESTION: Motion passed unanimously by roll call vote. G-2: Ordinance No. 286-78 - Amending the General Fund Ordinance Mayor Elson stated that with Council approval, both Ordinance No. 285-75 and 286-75 would be acted on at the same time as they are general "housekeeping" matters which tie together. P . J i Ill KLNAI CITY COUNCIL. REGULAR MEETING. DECEMBER 17, 1975 PAGF 10 (G-2 - continued) Mr. O'Connor advised that Ordinance No. 285-75 amended the (leneral Fund by the elimination of interest on investments within the Gonoral Fund Revenues and a corresponding elimination of the (leneral Fund contribution to the Debt Service Fund in the Non -Departmental Department. Also, Ordinance No. 288-75 amends the Debt Service Fund by a lino item transfer within the Revenue section from Interfund Receipts from General Fund to Interest on Investments. MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for introduction of Ordinance No. 285-75. Motion passed unanimously by roll call vote. G-3: Ordinance No. 288-75 - Amendino the Debt Service Fund MOTION: Councilman Ambarian moved, seconded by Councilman Hudson, for introduction of Ordinance No. 288-75. Motion passed unanimously by roll call vote. i G-4: FAA Planning Grant Mr. Lynn advised that in line with the Planning a Zoning Commission proposed study, the City would like to include a study of the airport. Administration ; } recommends that Council authorize the City to proceed to solicit interest from +' Consulting Planning firms so that in the event the funds become available, the City will be in a position to immediately begin a study on the airport. Therefore, Administration requests authorizatimsi from Council to proceed with the Planning Application. Councilman Morgan asked if this would be a 100% grant? Mr. Lynn advised that at the present time the grant is for 50% funding, however, there are two bills before Congress (one for 75% funding and one for 00% funding) . The City has not committed any money, just staff time, Councilman Hudson asked if this would include the Float Plane Basin study and was advised that it would include all the airport lands. MOTION: Councilman Ambarian moved, seconded by Councilman Ackerly, that the Administration shcvld proceed with the Planning Grant application with emphasis on the development -� of a Float Plane Basin. Councilman Hudson stated he felt that all airport lands should be pursued equally as there are other areas which may derive more revenues than the Float Plane Basin. Councilman Morgan agreed with Councilman Hudson. KENAI CITY COUNCIL, REGULAR MEETING, DECEMBER 17, 1975 PAGE 11 (G-4 - continued) Councilman Ambarian amended his motion, with approval of second, to state that the Administration was to proceed with the Planning Grant application and that this development plan was to include the Float Plane Basin. Motion passed unanimously by roll call vote. G-6: Appointment of Plannina a Zoning Commission member Mayor Elson requested Coujncil concurrence that this matter be held unti the first meeting in January in order to give the Mayor adequate time to talk with each of the individuals recommended to serve on the Commission. Council concurred and the matter was tabled until the first meeting in January. G-6: Payment to Contractor - Kenai Library Project Mr. Lynn explained that this was the second cost estimate and most of the costs ; Included on the list were for materials which are stored at the building site. Mr. Lynn also advised that the contractor will begin work on the Library as soon E, as the weather warms up. MOTION: z� Councilman Ambarian moved, seconded by Councilman Morgan, for approval of payment to Coastal -Gamble in the amount of $20,602.80. Motion passed unanimously by roil call vote. ; G-7: Deleted G-8: Resolution No. 75-64, Agreement with Rainier National Bank Mr. O'Connor advised that the City had received notification from the National Bank of Alaska that they would no longer act as paying agent on bond issues. The Rainier National Bank has been doing the "back office" work on our bond issue for several years and has offered to provide the service of paying agent j at a fair and equitable cost. MOTION: Councilman Morgan moved, seconded by Councilman Ambarian, for adoption of Resolution No. 75-64, entering into an Agreement with Rainier National Bank for said bank to act as the "prime paying agent" for the City of Kenai. Motion passed unanimously by roll call vote. KENAI CITY COUNCIL, REGULAR MEETING, DI;CEMBER 17, 1976 PAGE 12 Q-9: Resolution No. 76-66 - Borough Foreclosure Parcels City Attorney, Janis Williams, indicated that in accordance with the Borough Ordinance Ahese parcels must be presented to the City of Kenai to determine whether or not there is an immediate use. None of the parcels listed are in the City of Kenai. MOTION: Councilman Ambartan ,roved, seconded by Councilman Morgan, for adoption of Resolution No. 78-86, declaring that certain parcels of real property are not needed for immediate public use by the City of Kenai. Motion passed unanimously by roll call vote. 0-10: Fire Department Mutual Aid Agreement - Kenai/North Kenai/Soldotna i Mr. Lynn advised the Council that there was an agreement between the City and North Kenai and one between the City and Soldotna. This agreement expired in ; 1973 and the proposed agreement will formalize a combined mutual agreement between North Kenai, Soldotna and Kenai. Mr. Lynn recommended that this matter be tabled until further research has been accomplished. r „ MOTION: Councilman Hudson moved, seconded by Councilman Morgan, that the matter of the Mutual Aid Agreement between the City of Soldotna, Soldotna Ambulance Volunteers, the City of Kenai and the North Kenai Fire Service Area be tabled until the next regular meeting of the Council. , Motion passed unanimously by roll call vote. i H. REPORTS r H-1: City Manager's Report (a) Mr. Lynn advised that the Administration was in the process of preparing a CETA application whereby an employee would be working part time in the Communications Center and part time in the Revenue Department. This would mean a Ravings of approximately $7-8,000 and would also eliminate having to pay overtime to dispatchers and hiring part time help in the summer to assist in the Revenue Department. i ' (b) Volunteer Firemen - there have been 18 applicants signed up with five or six ; taking an active part. This organization to called the Public Safety Auxiliary and the consensus is that they are rapidly becoming a very viable organization . i a, 60J W KENAI CITY COUNCIL, REGULAR MEETING, DFCEMBER 17, 1976 PA013 13 (a) Capital Improvement Program Budget - Administration proceeding with preparation and should present it to Council for review prior to getting into the regular operating budget review work sessions. (d) Councilman Morgan asked Administration in regard to the Mutual Aid Agreement, where does Wildwood fit into the plan? Mr. Lynn advised that they would fall under the North Kenai jurisdiction. (e) CETA -- Council asked if this position would be in addition to the present position funded and was advised that the DEEP position would end the last day of December. Mayor Elson stated he always discouraged the use of CETA positions because of the City's experience with the PEP program and the requirements of these types of programs. However, at the present time we need the manpower so very much that there is a tendency to use the CETA program. If the City of Kenai uses CETA, Mayor Elson further stated, the City must follow the guidelines as set out in the program very strictly. (f) Councilman Morgan asked the status of the telephone system in City Hall and was advised that the Telephone Company had not changed the system as yet but the Telephone Company to charging the City a comparable rate at present as we will be paying with the new system. (g) Councilman Ackerly inquired as to the status of the Warm Storage Facility and was advised that the sides were not on at this point in time. H-2: City Attorney's Report City Attorney Janis Williams reported that her office would be mailing a report to the Council at the end of the week advising the status of all on -going projects. The Council inquired as to the copy of a letter Mr. James Fisher had sent to his client regarding Ft. Kenay rates and to how Mr. Fisher reached the conclusion as stated in his letter. Miss Williams advised that this had been decided upon by both she and the Finance Director in the absence of the City Manager in that the rate had been established for the rental of Ft. Kenay and they had paid in advance and would not be required to pay the new rate until after the first of the year. H-3: Mayor's Report Mayor Elson read a statement to the public concerning the annexation as proposed by the City of Kenai. Copy of the Mayor's report is attached in complete form. H-4: City Clerk's Report None I ' KENAI CITY COUNCIL, REGULAR MXVTING. I)ECHMI310i 17.1978 PAM 14 iT-5: Finance Diroctor's Report Mr. O'Connor apologized for not getting the financial statements out in advance of the meeting, but there had been illness plus one employee had resigned which created manpower shortage in the Finance Department. Mr. O'Connor also stated that because of the passing of the Snow Removal Ordinance, the City will have expenditures of approximately $5,000 for signs. Public Works will have money available but will have to prepare a resolution for the transferring of funds. In the meantime, Administration needs Council approval to proceed with the preparation of the signs. Councilman Ambarian inquired if the City would not have to go to bid on this type of expenditure and was advised by Mr. Lynn that at the moment there appeared to be only one source of supply. MOTION: Councilman Morgan moved, seconded by Councilman Hudson, for council authorization that the City issue a purchase order for the preparation of necessary signs for snow removal based on the transfer between line items within the budget. Motion passed unanimously by roll call vote. H-0; Planning a Zoning Commission's Report Councilman Ambarian reported that the Commission accepted the resignation of Mrs. Beverly P11110 from the Planning Commission and also Councilman Ambarian explained the Council action on the proposed annexation of North Kenai. The Commission also recommended Mrs. Betty Glick to serve as Kenai's representative to the Borough Planning Commission. H-7: Kenai Peninsula Borough Assembly's Report ' Councilman Hudson reported that the Assembly seated Tommy Corr but did not seat the second assembly person. Several ordinances were re -scheduled for hearing -- 75-53 was recommended that the Assembly rescind its action, however, rescinding action failed and sale of land for $1 is proceeding. The Assembly will ..� hold another meet , �S Thursday evening at 700 p.m. to complete their business. Councilman Morgan asked if opposition to the seating of Jean Douglas was because of her suit regarding sales tax and was advised by Councilman Hudson that the opposition was mainly because of some of her statements. t I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD -= I-i: Mr. George Navarre Mr. Navarre apologized to the City Attorney and also stated that he would like to 11 )I W I "e' . n KENAI CITY COUNCIL, REGULAR MEETING, 1)FCRMfiFR 17, 1976 PAGE 16 see the City bring their constitution within the State constitution so that Executive Sessions fall under the State constitution. Mr. Navarre would like to see these changes included in the next election. Mr. Navarro further stated that he did not think that the Mayor's speech regarding annexation accomplished anything other than adding more "fuel to the fire". Mr. Navarre stated that he still thought that Council should take some action to "smother" all talk concerning annexation. The merchants have shown a willingness to cooperate with the City with regard to increase in sales taxes, property taxes and loss services and requests from the Chamber of Commerce have made have been ignored by Council. Councilman Ambarian stated that after the Council attended meetings with the Hoard of Directors for the Chamber of Commerce and meetings with the North Kenai people, the City representatives left with the feeling that the people understood the situation better, Councilman Hudson stated that he did not roach the some conclusions as the Mayor but did agree with some conclusions reached by Mr. Navarre. Though he had arrived at the conclusion that the project was dead in the foreseeable future, Councilman Hudson stated he had agreed not to do any verbal campaigning against it. Councilman Councilman Morgan asked the City Manager what was his interpretation of Council action and the direction he was to take with regard to annexation. Mr. Lynn replied that it was his understanding that no staff time will be put into the matter until so directed from Council. MOTION: Councilman Hudson moved that the City Council make official any instructions given at a work session and discontinue all efforts for annexation. Motion died for lack of a second. I-2: Mr. John Williams Mr. Williams stated that as the City is about to enter another year of expansion he would like to know if the City has looked into getting better air service in and out of the Kenai Terminal. Administration advised that they had been contacting several air carriers to determine if there is an interest to service this area and thus far there has been no indication of interest in passenger traffic. I-3: Appointment of new Council member MOTION: Councilman Hudson moved, seconded by Councilman Ambarian, for immediate _ -f�.t`T.J I.. r�i' u--'11�...i. � �.4�x- _ _ _ _ _ -rr+ '..-•--T — _ _ KENAI CITY COUNCIL BEGULAR MEETING, DECEMBER 17, 1975 PAGE 16 (I-3 - continued) reconsideration for seating a new member to the Kenai City Council. Motion failed unanimously by roll call vote. There being no further business brought before the Council, Mayor Elson adjourned the meeting at 10: 38 p.m. Respectfully submitted, S e C . Peter, City Clerk sop/ N }`jam kl - l)c ,-i r r . 3 Y o� .wants-�.tmr.r- •� - +:icar_�=�1--rim ! . -' T.., - _. _ � 1 i I r K t I 0 MMaxw•rtUN FROM THE MAYOR'S CHAIR For the past two to three weeks, local emotion has run high concerning the possible annexation by the City of Kenai of the North Kenai Industrial area. Needless - to -say, in the past weeks I have talked to many people, and a preponderance of my time both night and day has been in analyzing the proposal, reviewing the actions presented by Council and administration, and the alternatives and, yes, even threats, posed by those who felt that annexation would adversely affect them. Many times I nearly took the initiative to make public statements, and with counciling, decided that any statement at that time would only add fuel to fires already running rampant and that though a statement might be valid as to a particular point, it would not fairly present the total picture as I have experienced and understand it. It is my hopes that what I am about to say will present a full and complete panorama of events and that the public will evaluate the actions of the past weeks calmly and with reason. During the past year, the Federal Government initiated a new program called Emergenoy Medical Service and the concept of this program was for rural areas to form regions and jointly provide service for ambulance, communications, fire and eventually police. The State expected to receive 2 million dollars to implement phase one which dealt mainly with communications. This program made sense to us. Right now, sub City, the State, and the fire service districts. all maintain separate manpower and aommunloation centers or contracts. There were local differences but I believe they could have been worked out but what killed it was that the State only received $450,000 and all but $24,000 of it was already used by State administration. The State reapplied e , 2- and hopes to get additional monies. What has this to do with annexation? Two things: This program would have made significant changes in our manpower requirements thus lowering taxes and that a dialogue was initiated between all the local cities and service boards. At the time this fell through, we were in the midst of budget preparation. You are all aware of the results of that. A big increase in property tax and an increase of I s81es tax from 1% to 3%. Not very popular. But I believe responsible. N became apparent j to Council at that time that the City was providing facilities and services which the City could not afford. Administration was advised to restrict or eliminate or at least correct Me situation. Lease rates were modified and some leases are being re -negotiated because the C is not receiving City wing value. The Council cut animal control and eliminated recreation , operations. Again, not very popular. But I felt that our priorities fwr this next year were to be on the basic services. Water, sewer, tire, police and the airport. I also requested the Planning Commission to evaluate our lands for sale and/or lease. The first � f phase of this has been implemented. I felt that N we addressed ourselves to the basic service and corrected them that then in the next few years we would be in a good position to provide solid programs that the City should be providing in the way of recreation, animal control, and begin up -grading streets, harbors, etc. Following approval of the budget, the City Manager and myself had many discussions - evaluating what the outcome would be for this year and what our position may be as we enter into next year's budget. The Administration's contention has been that H the same revenues or taxes are maintained that increases in costs will put us in a worse condition for delivery ct services than we are now. Frankly, I am more optimistic. But I do not have facts for the basis of my optimism -- only a feeling that the corrective notions taken by Council this . last year will have a significant impact on our financial status. However, it is apparent - - -A 3 Ii that aside from past management problems the City has had that the main impact on the City is that of services that to generated out of industrial development which is not on our tax roles. Our only mechanism to benefit from that growth is through the sales tax which is levied on the local consumer and not so much the industry. In lieu of any mechanism in order to have industry share in the cost of services we were and are still delivering and in lieu of Federal programs like the EMS program, which I look at with a jaundiced eye, the subject of annexation was discussed many times since last July. I conceded to the City Manager that the economics of annexation made sense but that politically it just j wasn't feasible and would create a situation just short of a shooting war. For several months, the Administration and I continued to discuss annexation. And, it was not taken to Council. After the City Council meeting of November 19th, a work session for Council was scheduled for the following week. Since the last election, audit, etc. this was the first i chance for the new Council :: 4c some advance planning. The City Manager presented the Counoil with a list of about a dozen items dealing with problems he anticipated in the nett year and possible solutions. He asked the Council for direction so that staff time would not be wasted pursuing possible solutions that would not meet Council approval. Annexation of the North Kenai Industrial area was one solution. It was explained if the r City was to explore this avenue that there was a very short time frame involved if it were to be pursued all the way, and U successful, have a benefit in the next fiscal year. The ` Council discussed the pros and cons. I supported the City Manager on the economics f and also made my comment about reaction of situation that would be just short of a shooting o- -: war• Councilmen Sweet, Ackerly and Ambarian felt that it should be pursued. Councilman Morgan and myself felt that data should be gathered but Council would have to make a decision based on that information, and Councilman Hudson stated he would not oppose it at this time but "would provide bandages". C: 1 , 0 -4- I then asked the Council it the consensus was that the staff was to go ahead and gather data for annexation but that the Administration had no authority to proceed any further. Council concurred. In the following week, there was much gathering of data and dialogue with Borough officials for the purpose of gathering information and the status of the Service Districts in North Kenai. Nothing was done in secret. At the following regular Council meeting, a work session was called and this topic was discussed and explained to the public and press which made the newspaper deadlines first available since the topic was initiated. The next day the Administration, Councilman Morgan and myself attended a meeting with the Borough Mayor and his staff. Ways were explored as to how annexation could be Implemented and maintain the viability of the Service Districts in North Kenai. No solid concepts were developed. That night, the City Council again met in a work session. It was my recommendation to Council that the time frame, and the information needed in order to meet the requirements to apply for annexation were not adequate and that Administration should cease its efforts. Council concurred in that annexation should not be attempted this year and should be given a lower priority but that it was a concept which should be further explored in the year to come. Most of the rest is history that has been adequately publicized. I have some comments which I feel should be said. Possibly they will add fuel to the fire but I fees they are truths which have been overlooked or ignored. First. the Council allowed the Aeration to gather data in order to make a decision as to whether or not annexation was feasible. No decision to annex was made. Second, the area considered was as small as possible in order to involve as few people as possible. Third, the Council was concerned about maintaining the viability of service n W -6- now provided by the North Kenai Service Districts. Annexation would provide the property tax base to a level where there could be a lower sales tax -- benefiting all the residents of this region and our City merchants. Fourth, if annexation were proven feasible then would it not benefit the 8, 000 people in the City? It would likely increase property taxes in the newly annexed area but also there should be an increase in the level of service. That is a total of 6,000 people being affected directly and most of them beneficially and even more people than 6, 000 if a reduction in sales tax would be forthcoming. I do not feel the City Council has done anything irresponsible. We have assessed the City's position at this time, realized many of the problems that face the City, and are in the process of determining what are feasible solutions that will benefit the residents of this City. Should the Council ignore possible solutions because of public opinion developed by people outside our jurisdication? I can understand the concern of our local merchants because of the economic pressures being placed on them. I hope that many will continue to contribute their input to Council H this issue comes to the forefront again and make their analysis on the long range benefit. Ask yourself "will this proposal reduce sales and property tax and create a better economic climate In which I will be more competitive?" If the answer is no, then object. If it is yes, then give the Council support. I believe the Council acted responsibly and openly in allowing the Administration to explore feasibility of annexation. When after the few days of effort and it became apparent that adequate information could not be gathered within the required time frame, I believe the Counoit was wise in directing the Administration to no longer make an effort to meet this year's schedule. For all practical purposes the issue is dead for this year. However, t f { - -1 r- .d it is a concept which I believe should be further explored on the basis providing the City with an industrial tax base in order that industry helps pay for services that are required of the City when industrial expansion occurs. Only after a concept of annexation is fully developed and all the necessary data is gathered can it be determined if it is feasible and in the interest of the City. J ,l1 r' i v ' 1 I